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Exam 3: The Business of Advertising

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Question 1

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What is the departmental system in an agency structure?

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Medium and large agencies are usually structured in a departmental or group system. In the departmental system, the agency organizes its various functions-account services, creative services, marketing services, and administration-into separate departments.

Question 2

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Which of the following is an example of product advertising?

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 for Toyota announcing that new car buyers can receive $3,000 off any new model
D) An ad announcing GE 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) All of the above
G) A) and B)

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Question 3

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Which of the following is a function of cooperative advertising?

Ericsson, an international telecommunications supplier, manufactures radio communication systems, defense systems, components, and cable and network television systems. If a media representative wants to sell ad space to the company, he or she must meet with representatives from each of the product lines. Ericsson's ad department is organized by:

An advertiser who uses international media most likely:

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.

Effective advertising copy should contain all the information intended to be communicated in a few pertinent, succinct points.

Local advertising is sometimes called cooperative advertising.

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

At one time Parker Pens were advertised in 30 different countries with 30 different ad themes in 30 different languages. At that time, Parker Pens would have been a user of:

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.

Advertising agencies work for the media.

What are the two pricing methods uses in a fee system?

Local advertisers and national advertisers most likely differ in terms of:

Which of the following creates online ads?

Differentiate between a general consumer agency and a business-to-business agency.

One of the ways to organize a centralized advertising department is by the sub-function of advertising.

What are the disadvantages of establishing an in-house ad agency?

Hudson Pool and Spa, owned by Jill and Joel Hudson, sells and installs above-ground swimming pools and Beachcomber brand hot tubs. The manufacturer of the Beachcomber hot tub has sent the Hudsons a letter in which it offers to pay 50 percent of the advertising cost if the Hudsons will run a newspaper ad featuring the Beachcomber hot tubs. What type of advertising is the Beachcomber manufacturer suggesting they use?

Why is local advertising sometimes called retail advertising?