Question 1

What is the most critical factor in the agency-client relationship?

Accepted Answer

A)   The competitive relationship between the in-house and the independent agencies.
B)   The level and type of communication between the client and the agency.
C)   The ethical conduct of the agency.
D)   The dynamic nature of the environment in which the client operates.
E)   The personal chemistry between the client's employees and the agency's staff.F) A) and B)
G) C) and D)

Question 2

Nonprofit organizations like charities and arts organizations are types of local advertisers.

Accepted Answer

A) True 
 B)False

Question 3

An ad agency may need to purchase photographs and illustrations from an outside supplier for its client.The agency pays the outside supplier a fee and adds a(n) _____,usually 17.65 percent,to the client's bill.

Accepted Answer

A)   commission
B)   markup
C)   service charge
D)   incentive
E)   profitF) B) and E)
G) A) and E)

Question 4

According to the text,local advertisers and national advertisers differ in terms of:

Accepted Answer

A)   credibility, autonomy, and sources.
B)   ad penetration, focus, and resources.
C)   focus, time orientation, and resources.
D)   focus, promotional themes, and advertising vehicles.
E)   credibility, relationships, and focus.F) A) and E)
G) B) and E)

Question 5

Retailers use television,catalogs,the Internet,and magazines to transmit their advertising message to consumers.In terms of the four distinct groups around which advertising is organized,retailers use:

Accepted Answer

A)   nonpersuasive method.
B)   media.
C)   message handlers.
D)   personal selling.
E)   advertisers.F) C) and D)
G) B) and E)

Question 6

A hardware store mails an advertising flyer to all the residents in the its community.This is an example of _____ advertising.

Accepted Answer

A)   local
B)   institutional
C)   interactive
D)   interregional
E)   dealerF) A) and C)
G) All of the above

Question 7

A speculative presentation allows an advertiser to see what the agency can do for it before signing any contractual agreement.

Accepted Answer

A) True 
 B)False

Question 8

In the advertising agency business,_____ are people and organizations that provide specialized services.

Accepted Answer

A)   ad distributors
B)   media agencies
C)   advertising brokers
D)   suppliers
E)   ad intermediariesF) A) and D)
G) A) and C)

Question 9

The modern _____ advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion for its clients.

Accepted Answer

A)   entrepreneurial
B)   institutional
C)   organizational
D)   full-service
E)   multi-taskingF) A) and D)
G) A) and E)

Question 10

Some advertisers ask for or imply that they want to see what the agency will do before they sign on.The agencies 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) B) and C)
G) B) and E)

Question 11

The three types of local advertising are clearance,product,and classified.

Accepted Answer

A) True 
 B)False

Question 12

Local newspapers typically allow all advertisers a commission.

Accepted Answer

A) True 
 B)False

Question 13

Medium and large advertising agencies are usually structured according to the:

Accepted Answer

A)   account manager.
B)   group or departmental system.
C)   media availability.
D)   designers and illustrators.
E)   suppliers.F) All of the above
G) B) and C)

Question 14

In advertising,a retainer is:

Accepted Answer

A)   the same as a straight fee.
B)   a commission that is paid on a monthly rate.
C)   a form of markup paid by nonprofit organizations.
D)   the cost for reserving TV and radio time.
E)   the commission paid to media-buying services.F) B) and D)
G) A) and B)

Question 15

An ad agency's _____ coordinates all phases of production and makes sure everything is completed before the client and/or media deadlines.

Accepted Answer

A)   media department
B)   coordination specialist
C)   traffic department
D)   communications manager
E)   art directorF) C) and D)
G) B) and C)

Question 16

What is 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)   Poor staff-line relationshipsF) B) and D)
G) A) and B)

Exam 4: The Scope of Advertising

Medium and large advertising agencies are usually structured according to the:

Correct Answer
verified

An ad agency's _____ coordinates all phases of production and makes sure everything is completed before the client and/or media deadlines.

Correct Answer
verified

A speculative presentation allows an advertiser to see what the agency can do for it before signing any contractual agreement.

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 must create a:

Correct Answer
verified

According to the text,local advertisers and national advertisers differ in terms of:

Correct Answer
verified

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

Correct Answer
verified

What is the most critical factor in the agency-client relationship?

Correct Answer
verified

Retailers use television,catalogs,the Internet,and magazines to transmit their advertising message to consumers.In terms of the four distinct groups around which advertising is organized,retailers use:

Correct Answer
verified

In the advertising agency business,_____ are people and organizations that provide specialized services.

Correct Answer
verified

An ad agency may need to purchase photographs and illustrations from an outside supplier for its client.The agency pays the outside supplier a fee and adds a(n) _____,usually 17.65 percent,to the client's bill.

Correct Answer
verified

Local newspapers typically allow all advertisers a commission.

Correct Answer
verified

The three types of local advertising are clearance,product,and classified.

Correct Answer
verified

Nonprofit organizations like charities and arts organizations are types of local advertisers.

Correct Answer
verified

In advertising,a retainer is:

Correct Answer
verified

A hardware store mails an advertising flyer to all the residents in the its community.This is an example of _____ advertising.

Correct Answer
verified

The modern _____ advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion for its clients.

Correct Answer
verified

Exam 4: The Scope of Advertising

Medium and large advertising agencies are usually structured according to the:

Correct AnswerverifiedShow Answer

An ad agency's _____ coordinates all phases of production and makes sure everything is completed before the client and/or media deadlines.

Correct AnswerverifiedShow Answer

A speculative presentation allows an advertiser to see what the agency can do for it before signing any contractual agreement.

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 must create a:

Correct AnswerverifiedShow Answer

According to the text,local advertisers and national advertisers differ in terms of:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the most critical factor in the agency-client relationship?

Correct AnswerverifiedShow Answer

Retailers use television,catalogs,the Internet,and magazines to transmit their advertising message to consumers.In terms of the four distinct groups around which advertising is organized,retailers use:

Correct AnswerverifiedShow Answer

In the advertising agency business,_____ are people and organizations that provide specialized services.

Correct AnswerverifiedShow Answer

An ad agency may need to purchase photographs and illustrations from an outside supplier for its client.The agency pays the outside supplier a fee and adds a(n) _____,usually 17.65 percent,to the client's bill.

Correct AnswerverifiedShow Answer

Local newspapers typically allow all advertisers a commission.

Correct AnswerverifiedShow Answer

The three types of local advertising are clearance,product,and classified.

Correct AnswerverifiedShow Answer

Nonprofit organizations like charities and arts organizations are types of local advertisers.

Correct AnswerverifiedShow Answer

In advertising,a retainer is:

Correct AnswerverifiedShow Answer

A hardware store mails an advertising flyer to all the residents in the its community.This is an example of _____ advertising.

Correct AnswerverifiedShow Answer

The modern _____ advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion for its clients.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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