Advertising And Promotion Global Edition by Belch -Test Bank
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Sample Test
Chapter 03
Organizing for Advertising and Promotion: The Role of Ad
Agencies and Other Marketing Communication Organizations
True / False Questions
|
1. |
From the perspective of the promotional
planner, the purpose of media is to provide information or entertainment to
their subscribers. True False |
|
2. |
Digital/interactive agencies and public
relations firms are examples of organizations that provide specialized
marketing communication services. True False |
|
3. |
While many people both inside and
outside the organization have some input into the advertising and promotion
process, direct responsibility for administering the program must be assumed
by someone within the firm. True False |
|
4. |
While the advertising department
develops the promotional budget, the final decision on allocating funds is
usually made by the overall marketing department. True False |
|
5. |
A decentralized organizational system
is often used when companies do not have many different divisions, product or
service lines, or brands to advertise. True False |
|
6. |
A disadvantage of the decentralized
system is that each brand does not receive concentrated managerial attention,
resulting in slower response to both problems and opportunities. True False |
|
7. |
In-house agencies are preferred by some
companies because they keep the marketing communications function more
closely tied to top management. True False |
|
8. |
Superagencies were formed when large
advertising organizations disintegrated to form separate, more specialized
individual agencies. True False |
|
9. |
The role of account representatives is
likely to disappear as agencies and their clients are beginning to liaise
directly with each other. True False |
|
10. |
Account planners work with the client
as well as other agency personnel including the account executives and media
specialists. True False |
|
11. |
The layout of a print ad is known as a
storyboard. True False |
|
12. |
Media buying services have been
experiencing strong growth in recent years as clients seek alternatives to
full-service agency relationships. True False |
|
13. |
Proponents of the commission system
argue that the system is more flexible than it appears as agencies often
perform other services for large clients at no extra charge. True False |
|
14. |
A cost-plus system requires that the
agency keep detailed records of the costs it incurs in working on a client’s
account. True False |
|
15. |
The agency evaluation is often done on
a subjective, informal basis, particularly in smaller companies where ad
budgets are low. True False |
|
16. |
Loyalty to a single agency is becoming
more common as marketers seek new ways of connecting with consumers. True False |
|
17. |
A typical direct-response agency does
not include a creative department. True False |
|
18. |
One of the more widely used collateral
service organizations is the marketing research firm. True False |
|
19. |
An agency with integrated marketing
capabilities can create a single image for the product or service and address
everyone, from wholesalers to consumers, with one voice. True False |
|
20. |
According to marketing executives, the
biggest obstacle to implementing integrated marketing communications (IMC) is
the lack of people with the broad perspective and skills to make it work. True False |
Multiple Choice Questions
|
21. |
_____ are the major participants in the
integrated marketing communications process who pay for advertising campaigns
and promotions.
|
|
22. |
Momentum Automobiles, an automobile
manufacturer, hires Dreams Inc. to cater to its advertising needs. Momentum
is only required to provide the necessary finances and does not take part in
any decision making. In the given scenario, Momentum Automobiles would be classified
as a(n):
|
|
23. |
In the ad agency industry, clients
refer to:
|
|
24. |
A(n) _____ is an outside firm that
specializes in the creation, production and/or placement of the
communications message and that may provide other marketing and promotions
related services.
|
|
25. |
From the perspective of a promotional
planner, the primary purpose of media is to:
|
|
26. |
The primary function of most media is
to:
|
|
27. |
Creative Networks is a major
participant in the advertising and promotion process. It attracts various
companies to buy space and time with them by providing the same at discounted
rates. Creative Networks helps these companies reach their target market
effectively by communicating their message. In this scenario, Creative
Networks is a(n):
|
|
28. |
With respect to the major participants
in the advertising and promotions process, which of the following
participants include sales promotion agencies, digital/interactive agencies,
and public relations firms?
|
|
29. |
In companies which follow a centralized
organizational system, who among the following is likely to be given the
title “marketing communications manager”?
|
|
30. |
Which of the following statements is
true about the role of top management in the advertising and promotion decision
making process?
|
|
31. |
Under a centralized organizational
system, the responsibility for planning and controlling the advertising and
promotional functions lies with the:
|
|
32. |
Which of the following is true of the
role of an advertising manager, under a centralized management system?
|
|
33. |
Which of the following is true about
the functions of the advertising manager in a centralized system?
|
|
34. |
In a centralized organizational
structure, the _____ department is responsible for developing promotional
plans that will be approved by management and recommending a promotions
program based on the overall marketing plan, objectives, and budget.
|
|
35. |
A company often uses a centralized
organizational system when:
|
|
36. |
Which of the following differentiates a
centralized organization from a decentralized organization?
|
|
37. |
Which of the following is true of the
problems associated with the centralized organizational structure?
|
|
38. |
In a decentralized system, a(n) _____
is responsible for the total management of the brand, including planning,
budgeting, sales, and profit performance.
|
|
39. |
Under a decentralized system, the
advertising department is generally a part of _____.
|
|
40. |
Jim, an employee of CL Inc., is
responsible for planning, marketing, budgeting, sales, and profit performance
of a specific brand. He has two assistants who help in planning,
implementing, and controlling the marketing program. In this scenario, Jim is
an example of a(n) _____.
|
|
41. |
In a decentralized system, individuals
who oversee management of the entire product category and focus on the
strategic role of the various brands in order to build profits and market
share are known as:
|
|
42. |
A company often uses a decentralized
organizational system when:
|
|
43. |
Which of the following describes a
limitation associated with the decentralized organizational structure for
advertising?
|
|
44. |
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?
|
|
45. |
Which of the following is true of an
in-house advertising agency?
|
|
46. |
A major reason why some companies
choose to use an in-house agency is to:
|
|
47. |
Which of the following is a potential
benefit of an in-house advertising agency?
|
|
48. |
A company that uses an in-house agency
might turn its advertising and promotion tasks over to an outside agency in
order to:
|
|
49. |
Which of the following is a disadvantage
of using a centralized organizational system?
|
|
50. |
Which of the following is an advantage
of a decentralized organizational system?
|
|
51. |
Which of the following is a
disadvantage of a decentralized organizational system?
|
|
52. |
Lack of long-term objectivity,
flexibility, and creativity are a few of the reasons why a company might move
away from:
|
|
53. |
Which of the following is a
disadvantage of using an in-house advertising agency?
|
|
54. |
Which of the following refers to the
amount of client money that agencies spend on media purchases and other equivalent
activities?
|
|
55. |
Superagencies were formed:
|
|
56. |
Which of the following statements is
true about superagencies?
|
|
57. |
Which of the following statements
explain why an organization would want to use an external advertising agency?
|
|
58. |
Which of the following statements is
true about outside advertising agencies?
|
|
59. |
Which type of ad agency is most likely
to offer its clients an extensive range of marketing, communications, and
promotions services, including planning, creating, and producing the
advertising; performing research; and selecting media?
|
|
60. |
An ad agency that offers its clients a
complete range of marketing, communication, and promotion services is known
as a(n):
|
|
61. |
Mars Inc., a San Diego based
advertising agency, offers various services, such as sales promotion, marketing
research, package design, direct marketing, publicity as well as planning,
creation, and advertising production. In this scenario, Mars is an example of
a(n):
|
|
62. |
Which of the following statements is
true about account services?
|
|
63. |
A(n) _____ is responsible for
understanding the advertiser’s marketing and promotional needs and
interpreting them to agency personnel.
|
|
64. |
Which of the following is true of the
role of an account executive?
|
|
65. |
In a full-service agency, the function
of gathering, analyzing, and interpreting information that is useful in
developing advertising is the responsibility of the _____ department.
|
|
66. |
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):
|
|
67. |
The _____ is a document that the
agency’s creative department uses to guide the development of advertising
ideas and concepts.
|
|
68. |
Account planning has become a very
important and demanding function in many agencies because:
|
|
69. |
Which of the following departments of a
full-service agency, analyzes, selects, and contracts for space or time to
publish or broadcast the client’s advertising message?
|
|
70. |
Which of the following statements is
true of media departments?
|
|
71. |
_____ are the individuals in the
creative services department of an ad agency who conceive the ideas for the
ads and compose the advertising message.
|
|
72. |
In the creative services department of
an ad agency, the _____ department is responsible for creating the visual
portion of an ad, such as layouts and commercial storyboards.
|
|
73. |
_____ are drawings that show what the
print ad will look like and from which the final artwork will be produced.
|
|
74. |
Which department within an advertising
agency supervises the casting of people to appear in the ad and the setting
for the scenes?
|
|
75. |
The _____ department coordinates all
phases of production to see that the ads are completed on time and that all
deadlines for submitting the ads to the media are met.
|
|
76. |
With respect to the creative services
department of a full-service agency, the layout for TV commercials is known
as a(n):
|
|
77. |
Which of the following is true of the
traffic department in a full-service agency?
|
|
78. |
Which of the following departments in a
full-service agency is responsible for the development and execution of
advertisements?
|
|
79. |
Within the creative services department
of a full-service agency, once the copy, layout, illustrations, and
mechanical specifications of the ad have been completed and approved, the ad
is turned over to the _____ department.
|
|
80. |
A sequence of frames or panels that
depict a TV commercial in still form is called a(n) _____.
|
|
81. |
The majority of an advertising agency’s
expenses are in the area of:
|
|
82. |
J&J is an advertising agency that
handles each of its clients by assigning individuals from various departments
to work together as a team on their accounts. With respect to the
organizational structures employed by a full-function advertising agency,
J&J is using a _____ organizational system.
|
|
83. |
With respect to the types of
organizational structures, some advertising agencies prefer the departmental
system because:
|
|
84. |
With respect to the types of
organizational structures, many advertising agencies prefer the group system because:
|
|
85. |
Which of the following is true of a
creative boutique?
|
|
86. |
Pluto Inc. is a small agency that
employs writers, artists, other innovative personnel. Mars is a specialized
agency and does not deal with research, account planning, or television and
radio space buying. In this scenario, Mars is an illustration of a(n) _____.
|
|
87. |
Which of the following statements is
true about creative boutiques?
|
|
88. |
Independent companies that exclusively
help in purchase of radio and television time are known as:
|
|
89. |
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?
|
|
90. |
Defenders of the commission system
argue that:
|
|
91. |
CL Ads, an ad agency, provides media
services for its clients. It prepares and places ads in local and national
magazines at a specified cost. However, the agency bills its clients a flat
15 percent of the ad cost as revenue. In this scenario, the agency is using
a(n) _____ system.
|
|
92. |
_____ is a system whereby the
commissions average from 8 to 10 percent or are based on a sliding scale that
becomes lower as the clients’ media expenditures increase.
|
|
93. |
Which of the following statements is
true about agency commissions?
|
|
94. |
Negotiated commission rates for
advertising agencies:
|
|
95. |
A(n) _____ is a type of compensation
arrangement where an agency charges a client a basic monthly amount for all
of its services and credits to the client any media commissions earned.
|
|
96. |
Fixed-fee method of compensation is
also called:
|
|
97. |
Under the _____ system of compensation,
the client agrees to pay the agency a fee based on the price of its work
along with some agreed-on profit margin.
|
|
98. |
Under which of the following
compensation systems is the agency compensation tied to performance?
|
|
99. |
Dynamic Inc., an advertising agency in
Manhattan, receives compensation from its clients based on Dynamic’s sales
and market share performance. This is an example of a(n) _____ compensation
system.
|
|
100. |
Which of the following is the reason
why companies are increasingly choosing to opt for an incentive-based system?
|
|
101. |
As more companies adopt the integrated
marketing communications approach to their advertising and promotions:
|
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