Question 1

Which of the following statements about local advertising is true?

Accepted Answer

A)   Local advertising and retail advertising are synonymous.
B)   Franchisees of national companies do not engage in local advertising.
C)   Local advertising is critically important because most consumer sales are made or lost locally.
D)   There are only two categories of local advertisers.
E)   Ninety percent of the money advertisers spend each year is spent on local advertising.

Question 2

A speculative presentation:

Accepted Answer

A)   is a method used to ensure the media commission is the full 15 percent.
B)   refers to the trend of charging for agency services that were once free.
C)   is a presentation prepared by an agency to demonstrate its capabilities to a prospect.
D)   is a generic presentation that can be used by local advertisers in different geographical regions.
E)   is a presentation developed to prevent missed deadlines.

Question 3

In a decentralized advertising system,the company sets up separate ad departments for different divisions,subsidiaries,regions,brands,or other categories that suit the company's needs.

Accepted Answer

A) True 
 B)False

Question 4

Why is local advertising often referred to as retail advertising? Is all retail advertising local advertising?

Accepted Answer

Local advertising is sometimes called re...

Question 5

What are the two categories of media available to the international advertiser?

Accepted Answer

The media available to the int...

Question 6

A company manufactures rivets used on heavily loaded conveyor belts which carry ore in underground and surface mining operations.This company would most likely hire a(n) _____ agency to create the company's advertising.

Accepted Answer

A)   general consumer
B)   intermediary
C)   institutional
D)   non-commissioned
E)   business-to-business

Question 7

Account executives are:

Accepted Answer

A)   brokers of advertising services to small companies that have limited advertising budgets.
B)   the liaisons between the agency and the client.
C)   typically employed by non-profit organizations as fund raisers.
D)   agents that handle multiple small noncompeting advertising accounts.
E)   the sole media buyers at most large agencies.

Question 8

Some of the nonadvertising services performed by full-service agencies are performing research,selecting media,designing packages,and producing sales promotions.

Accepted Answer

A) True 
 B)False

Question 9

Advertising agencies work for the media.

Accepted Answer

A) True 
 B)False

Question 10

One of the advantages that a company has when it uses a decentralized advertising department is:

Accepted Answer

A)   exceptionally good organizational communications flow.
B)   lack of measurable responses.
C)   less rivalry among brand managers.
D)   increased divisional flexibility.
E)   increased uniformity of ads.

Question 11

A small Georgia agency buys a quarter-page ad in a golfing magazine for a travel agency that specializes in preparing all-inclusive,hassle-free golf travel packages,on a 15 percent commission basis.The ad cost them $300.How much money would the Georgia agency send to the publication?

Accepted Answer

A)   $255
B)   $285
C)   $300
D)   $315
E)   $345

Question 12

General consumer agencies:

Accepted Answer

A)   provide advertising for products that are used in the manufacture of consumer products.
B)   concentrate on institutional advertising accounts.
C)   concentrate on consumer accounts.
D)   derive much of their income from nonadvertising functions.
E)   do not operate internationally.

Question 13

A golf company has developed a golf club that has a wider shaft and is 40 grams lighter than other clubs currently on the market.It has hired an agency to develop an advertising campaign for this new club.The golf company has offered to pay the agency 3 percent of its profits if it sells more than 30,000 clubs during its first full year of production.This bonus is an example of a(n) :

Accepted Answer

A)   incentive system.
B)   entrepreneurial allowance.
C)   production-oriented plan.
D)   retainer system.
E)   market-oriented plan.

Question 14

During the first week of November,local pharmacies ran ads to announce they were selling all of their Halloween candy and decorations at half their original prices.How should you classify this ad?

Accepted Answer

A)   As a regular price-line ad
B)   As a classified ad
C)   As an institutional ad
D)   As a clearance ad
E)   As a product ad

Question 15

All of the following are the examples of specialized service agencies EXCEPT:

Accepted Answer

A)   media agency.
B)   direct-response agency.
C)   telemarketing agency.
D)   creative boutique.
E)   direct mail.

Question 16

List the four stages in the agency/client relationship.

Accepted Answer

In the advertising business,th...

Question 17

A design company is a(n) _____ that designs Web pages and creates fun,involving,and informational online advertising.

Accepted Answer

A)   interactive agency
B)   entrepreneurial agency
C)   creative boutique
D)   promotional facilitator
E)   public relation agency

Question 18

The account planner defends the consumer's point of view and the creative strategy in the debate between the agency's creative team and the client.

Accepted Answer

A) True 
 B)False

Question 19

An advertising agency in Mexico City that represents a wide-range of consumer accounts.It distinguishes itself from other agencies because it depicts real Mexicans enjoying everyday life.It does not advertise in trade publications.From this information,you can surmise that the agency is a _____ agency.

Accepted Answer

A)   business-to-business
B)   specialized
C)   general consumer
D)   high-tech
E)   creative boutique

Question 20

At one time a pen company was advertised in 30 different countries with 30 different ad themes in 30 different languages.At that time,the company would have been a user of:

Accepted Answer

A)   multitasking advertising.
B)   foreign media.
C)   global advertising.
D)   standardized advertising.
E)   international media.

Exam 4: The Scope of Advertising

Advertising agencies work for the media.

Correct Answer
verified

A small Georgia agency buys a quarter-page ad in a golfing magazine for a travel agency that specializes in preparing all-inclusive,hassle-free golf travel packages,on a 15 percent commission basis.The ad cost them $300.How much money would the Georgia agency send to the publication?

Correct Answer
verified

One of the advantages that a company has when it uses a decentralized advertising department is:

Correct Answer
verified

List the four stages in the agency/client relationship.

Correct Answer
verified
In the advertising business,th...
View Answer

During the first week of November,local pharmacies ran ads to announce they were selling all of their Halloween candy and decorations at half their original prices.How should you classify this ad?

Correct Answer
verified

The account planner defends the consumer's point of view and the creative strategy in the debate between the agency's creative team and the client.

Correct Answer
verified

Correct Answer
verified

A speculative presentation:

Correct Answer
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Which of the following statements about local advertising is true?

Correct Answer
verified

What are the two categories of media available to the international advertiser?

Correct Answer
verified
The media available to the int...
View Answer

All of the following are the examples of specialized service agencies EXCEPT:

Correct Answer
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Account executives are:

Correct Answer
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General consumer agencies:

Correct Answer
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Some of the nonadvertising services performed by full-service agencies are performing research,selecting media,designing packages,and producing sales promotions.

Correct Answer
verified

At one time a pen company was advertised in 30 different countries with 30 different ad themes in 30 different languages.At that time,the company would have been a user of:

Correct Answer
verified

Why is local advertising often referred to as retail advertising? Is all retail advertising local advertising?

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

Correct Answer
verified

A company manufactures rivets used on heavily loaded conveyor belts which carry ore in underground and surface mining operations.This company would most likely hire a(n) _____ agency to create the company's advertising.

Correct Answer
verified

In a decentralized advertising system,the company sets up separate ad departments for different divisions,subsidiaries,regions,brands,or other categories that suit the company's needs.

Correct Answer
verified

A design company is a(n) _____ that designs Web pages and creates fun,involving,and informational online advertising.

Correct Answer
verified

Exam 4: The Scope of Advertising

Advertising agencies work for the media.

Correct AnswerverifiedShow Answer

A small Georgia agency buys a quarter-page ad in a golfing magazine for a travel agency that specializes in preparing all-inclusive,hassle-free golf travel packages,on a 15 percent commission basis.The ad cost them $300.How much money would the Georgia agency send to the publication?

Correct AnswerverifiedShow Answer

One of the advantages that a company has when it uses a decentralized advertising department is:

Correct AnswerverifiedShow Answer

List the four stages in the agency/client relationship.

Correct AnswerverifiedIn the advertising business,th...View AnswerShow Answer

During the first week of November,local pharmacies ran ads to announce they were selling all of their Halloween candy and decorations at half their original prices.How should you classify this ad?

Correct AnswerverifiedShow Answer

The account planner defends the consumer's point of view and the creative strategy in the debate between the agency's creative team and the client.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A speculative presentation:

Correct AnswerverifiedShow Answer

Which of the following statements about local advertising is true?

Correct AnswerverifiedShow Answer

What are the two categories of media available to the international advertiser?

Correct AnswerverifiedThe media available to the int...View AnswerShow Answer

All of the following are the examples of specialized service agencies EXCEPT:

Correct AnswerverifiedShow Answer

Account executives are:

Correct AnswerverifiedShow Answer

General consumer agencies:

Correct AnswerverifiedShow Answer

Some of the nonadvertising services performed by full-service agencies are performing research,selecting media,designing packages,and producing sales promotions.

Correct AnswerverifiedShow Answer

At one time a pen company was advertised in 30 different countries with 30 different ad themes in 30 different languages.At that time,the company would have been a user of:

Correct AnswerverifiedShow Answer

Why is local advertising often referred to as retail advertising? Is all retail advertising local advertising?

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

Correct AnswerverifiedShow Answer

A company manufactures rivets used on heavily loaded conveyor belts which carry ore in underground and surface mining operations.This company would most likely hire a(n) _____ agency to create the company's advertising.

Correct AnswerverifiedShow Answer

In a decentralized advertising system,the company sets up separate ad departments for different divisions,subsidiaries,regions,brands,or other categories that suit the company's needs.

Correct AnswerverifiedShow Answer

A design company is a(n) _____ that designs Web pages and creates fun,involving,and informational online advertising.

Correct AnswerverifiedShow Answer

Correct Answer
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In the advertising business,th...
View Answer

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The media available to the int...
View Answer

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

Correct Answer
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Correct Answer
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