Question 1

Which department within an advertising agency supervises the casting of people to appear in the ad and the setting for the scenes?

Accepted Answer

A)  Account services department
B)  Art department
C)  Traffic department
D)  Media department
E)  Production department

Question 2

A _____ is the type of firm an organization would hire to develop and implement programs to manage the organization's image and affairs with consumers and other relevant audience.

Accepted Answer

A)  PR agency
B)  sales promotion agency
C)  media mix organization
D)  creative boutique
E)  direct-response agency

Question 3

_____ are agencies that specialize in offering services, such as database management, and the ability to create, produce, and disseminate different types of communications that go straight to target customers.

Accepted Answer

A)  Digital-Interactive agencies
B)  Sales promotion agencies
C)  Direct-marketing agencies
D)  Public relations firms
E)  Creative boutiques

Question 4

A(n)  _____ audit of an agency is designed to verify costs, expenses, and payments to outside suppliers.

Accepted Answer

A)  financial
B)  operational
C)  departmental
D)  qualitative
E)  grant and contract

Question 5

Diva Boutique, located in Manhattan, relies on external advertising agencies for its advertising needs, but due to its growing global presence, it is now worried that using external agencies may lead to inconsistency in delivery of its brand image. It also wants to maintain tighter control over its advertising and promotional activities. Which of the following advertising agencies should it adopt?

Accepted Answer

A)  Collateral service agency
B)  Buzz marketing agency
C)  In-house agency
D)  Centralized agency
E)  Creative boutique

Question 6

A(n)  _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel.

Accepted Answer

A)  account executive
B)  database manager
C)  media specialist
D)  copywriter
E)  art director

Question 7

Under which type of compensation system might an agency be more inclined to recommend expensive media such as network television and national magazines to its clients?

Accepted Answer

A)  Commission system
B)  Fee arrangement system
C)  Cost-plus system
D)  Incentive-based compensation system
E)  Objective-and-task compensation system

Question 8

Which of the following statements is true about superagencies?

Accepted Answer

A)  They were formed when large advertisement agencies were broken down into smaller, more specialized agencies.
B)  Advertisers who became disenchanted with the superagencies, moved to smaller agencies that were flexible and more responsive.
C)  They were formed so that agencies could provide clients with effective supply chain management.
D)  Advertisers who generally worked with superagencies converted them into in-house agencies to gain greater flexibility and objectivity.
E)  They were formed so that agencies could provide clients with just-in-time inventory management systems.

Question 9

Greg is hired into the marketing services department of a full-service advertising agency. His job profile includes gathering information relating to the client's product and service that can be used in the development of the creative strategy. He has to collect information from various other departments in the firm to gain a better understanding of the client's target audience. In this scenario, Greg has been hired as a(n) :

Accepted Answer

A)  art director.
B)  account planner.
C)  illustrator.
D)  media specialist.
E)  account executivE.In the above scenario, Greg has been hired as an account planner.Account planners are individuals who gather information that is relevant to the client's product or service and can be used in the development of the creative strategy as well as other aspects of the integrated marketing communication (IM
C)   campaign.Account planners work with the client as well as other agency personnel to collect information that can be helpful in gaining a better understanding of the client's target audience and the best ways to communicate with them.

Question 10

The agency evaluation is often done on a subjective, informal basis, particularly in smaller companies where ad budgets are low.

Accepted Answer

A) True 
 B)False

Question 11

The most effective way for an agency to acquire new business is through:

Accepted Answer

A)  its image and reputation.
B)  solicitation.
C)  a qualitative audit.
D)  presentations.
E)  its pricing strategy.

Question 12

Which of the following statements is true about account services?

Accepted Answer

A)  It is an in-house service for the advertisement agency which is independent of its clients' obligations.
B)  It is an advertisement agency which solely provides media space and time.
C)  It provides the creative team with in-depth storyboards.
D)  It is a research department in the advertisement agency which assists in creating the advertising message for the client.
E)  It is the link between the advertisement agency and its clients.

Question 13

With respect to the types of organizational structures, some advertising agencies prefer the departmental system because:

Accepted Answer

A)  it completely avoids the usage of a commission system to compensate ad agencies.
B)  it gives employees opportunity to develop expertise in servicing a variety of accounts.
C)  it converts a full-function advertising agency into a creative boutique.
D)  it avoids the involvement of the top management in the decision making processes.
E)  it allows the creative team and the media team to work together as a group.

Question 14

Superagencies were formed:

Accepted Answer

A)  because advertisers were disenchanted with large agencies.
B)  because advertisers wanted agencies to be more flexible and responsive than traditional agencies.
C)  to save money for clients.
D)  so that agencies could provide their clients with integrated marketing communications services worldwide.
E)  to lessen the need for competitive pricing.

Question 15

Which of the following is true of the traffic department in a full-service agency?

Accepted Answer

A)  It is headed either by an art director or a graphic designer who produce the final artwork for the ad.
B)  It can be located only within the research department and is used to gather information through primary or secondary sources.
C)  It gathers, analyzes, and interprets information that will be useful in developing advertising for the agency's clients.
D)  It may be located in the creative services area of the agency or be a part of media or account management.
E)  It is headed either by a copywriter or a media planner who selects and contracts for space and time in media.

Question 16

Which of the following is true of a creative boutique?

Accepted Answer

A)  They lack media, research, and account planning capabilities.
B)  They lack creative personnel such as copywriters and artists.
C)  They are headed by a media buying director.
D)  They have an inherent disadvantage of being cumbersome and time-consuming.
E)  They have lesser access to creative talent.

Question 17

Independent companies that exclusively help in purchase of radio and television time are known as:

Accepted Answer

A)  creative boutiques.
B)  SMM organizations.
C)  macro-marketing agencies.
D)  media specialist companies.
E)  storyboard specialists.

Question 18

Which of the following is considered to be a collateral services provider?

Accepted Answer

A)  Public relation firms
B)  Sales promotion agencies
C)  Digital marketing agencies
D)  Full-service interactive agencies
E)  Market research firms

Question 19

Negotiated commission rates for advertising agencies:

Accepted Answer

A)  average between 8 to 10 percent.
B)  are usually set between 15 to 25 percent.
C)  are typically not based on a sliding scale.
D)  are rarely used by consumer-products advertisers.
E)  are designed primarily to benefit agencies.

Question 20

Digital/interactive agencies and public relations firms are examples of organizations that provide specialized marketing communication services.

Accepted Answer

A) True 
 B)False

Exam 3: Organizing for Advertising and Promotion: The Role of AD Agencies and Other Marketing Communication Organizations

Which of the following is true of a creative boutique?

Correct Answer
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Which of the following is considered to be a collateral services provider?

Correct Answer
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A(n) _____ audit of an agency is designed to verify costs, expenses, and payments to outside suppliers.

Correct Answer
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A _____ is the type of firm an organization would hire to develop and implement programs to manage the organization's image and affairs with consumers and other relevant audience.

Correct Answer
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Correct Answer
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Which of the following statements is true about account services?

Correct Answer
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Which of the following statements is true about superagencies?

Correct Answer
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Independent companies that exclusively help in purchase of radio and television time are known as:

Correct Answer
verified

Under which type of compensation system might an agency be more inclined to recommend expensive media such as network television and national magazines to its clients?

Correct Answer
verified

Negotiated commission rates for advertising agencies:

Correct Answer
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Correct Answer
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Which department within an advertising agency supervises the casting of people to appear in the ad and the setting for the scenes?

Correct Answer
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Superagencies were formed:

Correct Answer
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With respect to the types of organizational structures, some advertising agencies prefer the departmental system because:

Correct Answer
verified

A(n) _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel.

Correct Answer
verified

_____ are agencies that specialize in offering services, such as database management, and the ability to create, produce, and disseminate different types of communications that go straight to target customers.

Correct Answer
verified

Digital/interactive agencies and public relations firms are examples of organizations that provide specialized marketing communication services.

Correct Answer
verified

The agency evaluation is often done on a subjective, informal basis, particularly in smaller companies where ad budgets are low.

Correct Answer
verified

Which of the following is true of the traffic department in a full-service agency?

Correct Answer
verified

The most effective way for an agency to acquire new business is through:

Correct Answer
verified

Exam 3: Organizing for Advertising and Promotion: The Role of AD Agencies and Other Marketing Communication Organizations

Which of the following is true of a creative boutique?

Correct AnswerverifiedShow Answer

Which of the following is considered to be a collateral services provider?

Correct AnswerverifiedShow Answer

A(n) _____ audit of an agency is designed to verify costs, expenses, and payments to outside suppliers.

Correct AnswerverifiedShow Answer

A _____ is the type of firm an organization would hire to develop and implement programs to manage the organization's image and affairs with consumers and other relevant audience.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is true about account services?

Correct AnswerverifiedShow Answer

Which of the following statements is true about superagencies?

Correct AnswerverifiedShow Answer

Independent companies that exclusively help in purchase of radio and television time are known as:

Correct AnswerverifiedShow Answer

Under which type of compensation system might an agency be more inclined to recommend expensive media such as network television and national magazines to its clients?

Correct AnswerverifiedShow Answer

Negotiated commission rates for advertising agencies:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which department within an advertising agency supervises the casting of people to appear in the ad and the setting for the scenes?

Correct AnswerverifiedShow Answer

Superagencies were formed:

Correct AnswerverifiedShow Answer

With respect to the types of organizational structures, some advertising agencies prefer the departmental system because:

Correct AnswerverifiedShow Answer

A(n) _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel.

Correct AnswerverifiedShow Answer

_____ are agencies that specialize in offering services, such as database management, and the ability to create, produce, and disseminate different types of communications that go straight to target customers.

Correct AnswerverifiedShow Answer

Digital/interactive agencies and public relations firms are examples of organizations that provide specialized marketing communication services.

Correct AnswerverifiedShow Answer

The agency evaluation is often done on a subjective, informal basis, particularly in smaller companies where ad budgets are low.

Correct AnswerverifiedShow Answer

Which of the following is true of the traffic department in a full-service agency?

Correct AnswerverifiedShow Answer

The most effective way for an agency to acquire new business is through:

Correct AnswerverifiedShow Answer

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