Question 1

Creative boutiques work for advertisers and occasionally subcontract to ad agencies.

Accepted Answer

A) True 
 B)False

Question 2

Some advertisers ask for or imply that they want to see what the agency will do before they sign on.The agencies thus must create a:

Accepted Answer

A)  speculative presentation.
B)  provisional showing.
C)  portfolio of previous ad campaigns.
D)  storyboard.
E)  three-dimensional advertising plan.F) None of the above
G) B) and D)

Question 3

Which of the following statements is true about account planning?

Accepted Answer

A)  It is a method used to benchmark competitors.
B)  It is a hybrid discipline that bridges the gap between the traditional agency research,account management and creative departments.
C)  It does not include any consumer research.
D)  It is the reorganization of an advertiser for the purpose of improving its image.
E)  It is a service provided by creative boutiques,which allow the advertiser to choose generic ads that can be customized.F) All of the above
G) C) and D)

Question 4

Advertising agencies work for the media.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following designs Web pages and ads which are both effective and efficient?

Accepted Answer

A)  Production house
B)  Art house
C)  Internet boutique
D)  Art agency
E)  Web design houseF) B) and D)
G) A) and D)

Question 6

Cooperative advertising serves two key purposes.One of those purposes is to help a manufacturer's distributors,dealers or retailers make more sales.The second purpose is to:

Accepted Answer

A)  reduce the probability that distributors,dealers or retailers will do no advertising at all.
B)  decrease the probability that distributors,dealers or retailers will present poor advertising to a manufacturer's customers.
C)  build the manufacturer's brand image.
D)  save the manufacturer money by reducing its variable costs.
E)  reduce dependence on institutional advertising.F) A) and C)
G) B) and D)

Question 7

Local advertising is sometimes called cooperative advertising.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an example of product advertising?

Accepted Answer

A)  An ad for Circuit City explaining how to help the environment by recycling printer cartridges.
B)  An ad for American Express explaining how important small businesses are to national economic health.
C)  An ad describing why you should buy Glen Muir organic coups.
D)  An ad announcing Westinghouse provides appliances for homes built by Habitat for Humanity.
E)  An ad for Avon cosmetics announcing that it will donate $100,000 to breast cancer research.F) A) and D)
G) B) and D)

Question 9

DDB Needham,one of the world's largest ad agencies,formed a company with director Spike Lee called Spike DDB.The purpose of the new company is to develop ways to tap into urban trends and to increase minorities' use of its client's brands.The company is relying on the creative abilities of director Spike Lee to produce fresh,distinctive advertising messages.Spike DDB would be categorized as a(n) :

Accepted Answer

A)  promotional facilitator.
B)  interactive agency.
C)  entrepreneurial agency.
D)  creative boutique.
E)  IMC agency.F) B) and D)
G) A) and B)

Question 10

Multinational companies that use a customized approach to marketing and advertising in all countries are considered global marketers.

Accepted Answer

A) True 
 B)False

Question 11

List the three basic ways that national advertising differs from local.(Do not include the area coverage of the advertising).

Accepted Answer

National advertisers take a strategic fo...

Question 12

The primary reason that some advertisers set up a wholly owned in-house ad agency is to:

Accepted Answer

A)  increase their overhead.
B)  save money and tighten control over their advertising.
C)  stimulate external creative efforts on the part of the marketing staff.
D)  meet the challenge of ad agencies and mass media with respect to creative incentives.
E)  increase the size of the markup they pay.F) D) and E)
G) C) and D)

Question 13

Advertisers use _____ advertising in the newspaper to locate and recruit new employees,to offer services or to sell or lease new and used merchandise.

Accepted Answer

A)  classified
B)  product
C)  generic
D)  relationship
E)  mediaF) All of the above
G) A) and B)

Question 14

What are the two most common client based classification of the full service agency? Discuss in brief,the characteristics of such agencies.

Accepted Answer

Full-service agencies may specialize in ...

Question 15

One of the distinct groups in the advertising business is the suppliers who act as the communications vehicles paid to present an advertisement to their target audience.

Accepted Answer

A) True 
 B)False

Question 16

Examine the validity of the following sentence: "Local advertising is synonymous with retail advertising".

Accepted Answer

Local advertising is sometimes called re...

Question 17

What is probably the greatest disadvantage associated with in-house ad agencies?

Accepted Answer

A)  Loss of revenues
B)  Adherence to the organizational mission
C)  Reluctant acknowledgement by the mass media
D)  Loss of objectivity
E)  Staff-line relationshipsF) B) and D)
G) B) and C)

Question 18

Which of the following statements about local advertising is true?

Accepted Answer

A)  Retail advertising is always local.
B)  Local advertising refers to advertising done by stores like Pets Mart,J C Penney and Dollar General.
C)  Because most consumer sales are made or lost locally,local advertising is critically important.
D)  There are only two categories of local advertisers.
E)  Ninety percent of the money advertisers spend each year is spent on local advertising.F) B) and E)
G) A) and B)

Question 19

Because few agencies have the capability to produce television ads in-house,most rely on independent:

Accepted Answer

A)  production houses.
B)  ad intermediaries.
C)  art agencies.
D)  Internet boutiques.
E)  art studios.F) None of the above
G) D) and E)

Question 20

What are the various pricing methods the agencies and the clients use in a fee system?

Accepted Answer

There are two pricing methods ...

Exam 3: The Business of Advertising

What are the various pricing methods the agencies and the clients use in a fee system?

Correct Answer
verified
There are two pricing methods ...
View Answer

The primary reason that some advertisers set up a wholly owned in-house ad agency is to:

Correct Answer
verified

Advertising agencies work for the media.

Correct Answer
verified

Which of the following statements about local advertising is true?

Correct Answer
verified

Correct Answer
verified

Which of the following is an example of product advertising?

Correct Answer
verified

One of the distinct groups in the advertising business is the suppliers who act as the communications vehicles paid to present an advertisement to their target audience.

Correct Answer
verified

Multinational companies that use a customized approach to marketing and advertising in all countries are considered global marketers.

Correct Answer
verified

Which of the following statements is true about account planning?

Correct Answer
verified

Advertisers use _____ advertising in the newspaper to locate and recruit new employees,to offer services or to sell or lease new and used merchandise.

Correct Answer
verified

Cooperative advertising serves two key purposes.One of those purposes is to help a manufacturer's distributors,dealers or retailers make more sales.The second purpose is to:

Correct Answer
verified

Because few agencies have the capability to produce television ads in-house,most rely on independent:

Correct Answer
verified

Some advertisers ask for or imply that they want to see what the agency will do before they sign on.The agencies thus must create a:

Correct Answer
verified

Local advertising is sometimes called cooperative advertising.

Correct Answer
verified

What is probably the greatest disadvantage associated with in-house ad agencies?

Correct Answer
verified

Examine the validity of the following sentence: "Local advertising is synonymous with retail advertising".

Correct Answer
verified
Local advertising is sometimes called re...
View Answer

What are the two most common client based classification of the full service agency? Discuss in brief,the characteristics of such agencies.

Correct Answer
verified
Full-service agencies may specialize in ...
View Answer

List the three basic ways that national advertising differs from local.(Do not include the area coverage of the advertising).

Correct Answer
verified
National advertisers take a strategic fo...
View Answer

Creative boutiques work for advertisers and occasionally subcontract to ad agencies.

Correct Answer
verified

Which of the following designs Web pages and ads which are both effective and efficient?

Correct Answer
verified

Exam 3: The Business of Advertising

What are the various pricing methods the agencies and the clients use in a fee system?

Correct AnswerverifiedThere are two pricing methods ...View AnswerShow Answer

The primary reason that some advertisers set up a wholly owned in-house ad agency is to:

Correct AnswerverifiedShow Answer

Advertising agencies work for the media.

Correct AnswerverifiedShow Answer

Which of the following statements about local advertising is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an example of product advertising?

Correct AnswerverifiedShow Answer

One of the distinct groups in the advertising business is the suppliers who act as the communications vehicles paid to present an advertisement to their target audience.

Correct AnswerverifiedShow Answer

Multinational companies that use a customized approach to marketing and advertising in all countries are considered global marketers.

Correct AnswerverifiedShow Answer

Which of the following statements is true about account planning?

Correct AnswerverifiedShow Answer

Advertisers use _____ advertising in the newspaper to locate and recruit new employees,to offer services or to sell or lease new and used merchandise.

Correct AnswerverifiedShow Answer

Cooperative advertising serves two key purposes.One of those purposes is to help a manufacturer's distributors,dealers or retailers make more sales.The second purpose is to:

Correct AnswerverifiedShow Answer

Because few agencies have the capability to produce television ads in-house,most rely on independent:

Correct AnswerverifiedShow Answer

Some advertisers ask for or imply that they want to see what the agency will do before they sign on.The agencies thus must create a:

Correct AnswerverifiedShow Answer

Local advertising is sometimes called cooperative advertising.

Correct AnswerverifiedShow Answer

What is probably the greatest disadvantage associated with in-house ad agencies?

Correct AnswerverifiedShow Answer

Examine the validity of the following sentence: "Local advertising is synonymous with retail advertising".

Correct AnswerverifiedLocal advertising is sometimes called re...View AnswerShow Answer

What are the two most common client based classification of the full service agency? Discuss in brief,the characteristics of such agencies.

Correct AnswerverifiedFull-service agencies may specialize in ...View AnswerShow Answer

List the three basic ways that national advertising differs from local.(Do not include the area coverage of the advertising).

Correct AnswerverifiedNational advertisers take a strategic fo...View AnswerShow Answer

Creative boutiques work for advertisers and occasionally subcontract to ad agencies.

Correct AnswerverifiedShow Answer

Which of the following designs Web pages and ads which are both effective and efficient?

Correct AnswerverifiedShow Answer

Correct Answer
verified
There are two pricing methods ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Local advertising is sometimes called re...
View Answer

Correct Answer
verified
Full-service agencies may specialize in ...
View Answer

Correct Answer
verified
National advertisers take a strategic fo...
View Answer

Correct Answer
verified

Correct Answer
verified