Question 1

A manufacturer of _____ would be most likely to use a business-to-business agency.

Accepted Answer

A)   greeting cards
B)   X-ray machines
C)   personal laptops
D)   designer apparel
E)   monogrammed towelsF) A) and C)
G) C) and D)

Question 2

International media that serve several countries are limited to newspapers and magazines.

Accepted Answer

A) True 
 B)False

Question 3

A(n) _____ performs all the administrative,planning,budgeting,and coordinating functions at a small,local business.

Accepted Answer

A)   account executive
B)   copywriter
C)   traffic manager
D)   advertising manager
E)   creative directorF) B) and D)
G) C) and E)

Question 4

The primary reason that some advertisers set up a wholly owned in-house ad agency is to

Accepted Answer

A)   attract the best photographers and graphic artists.
B)   save money and tighten control over their advertising.
C)   stimulate external creative efforts on the part of the marketing staff.
D)   meet the challenges of mass media with respect to creative incentives.
E)   utilize inexpensive social media tools in their online advertising efforts.F) C) and E)
G) A) and B)

Question 5

An agency that earns a _____ charges a basic monthly fee for all of its services to the client and retains any media commissions earned.

Accepted Answer

A)   retainer
B)   salary-plus-commission
C)   media markup
D)   fee-commission combination
E)   negotiated feeF) B) and E)
G) None of the above

Question 6

Contrast the role of the account planner with those of the creative team and the account executives.

Accepted Answer

The account planner uses research to rep...

Question 7

Most agencies prefer giving a speculative presentation to potential clients than highlighting past accomplishments because speculative presentations are quick and inexpensive.

Accepted Answer

A) True 
 B)False

Question 8

If Tomlinson Inc.,an ad agency,were to buy an ad in Western Horseman magazine for the manufacturer of Reins saddles,the ad would cost $3 ,000.How much money would the advertising agency bill the saddle manufacturer?

Accepted Answer

A)   $2,250
B)   $2,850
C)   $3,000
D)   $3,150
E)   $3,750F) A) and B)
G) None of the above

Question 9

When the advertising agency of Lopez and White purchased several hours of television time for its customers' commercials from KLOX-TV,the agency received 15 percent of the gross amount charged by the station.The 15 percent is known as a

Accepted Answer

A)   spiff.
B)   retainer.
C)   markup.
D)   slotting allowance.
E)   media commission.F) All of the above
G) B) and D)

Question 10

What is the function of creative boutiques?

Accepted Answer

They work for advertisers and ...

Question 11

How do advertising agencies attract new clients?

Accepted Answer

New clients come from personal contact w...

Question 12

The traffic department coordinates all phases of production and makes sure everything is completed before deadlines.

Accepted Answer

A) True 
 B)False

Question 13

In advertising,what are television,radio,newspapers,magazines,billboards,direct mail,coffee mugs,and digital entertainment,commonly described as?

Accepted Answer

A)   clients
B)   media
C)   suppliers
D)   creative boutiques
E)   communication networksF) B) and E)
G) C) and D)

Question 14

Creative boutiques work for advertisers and occasionally subcontract to ad agencies.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   production houses.
B)   ad intermediaries.
C)   art agencies.
D)   Internet boutiques.
E)   art studios.F) A) and E)
G) B) and E)

Question 16

The basic principles of advertising are the same for both local and national advertising.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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 19

Why is local advertising sometimes called retail advertising?

Accepted Answer

Local advertising is sometimes called re...

Question 20

Interactive agencies

Accepted Answer

A)   use customer relationship marketing to work with customers.
B)   create ads for nontraditional media like shopping carts.
C)   design Web pages and ads for the Internet.
D)   purchase media time and space in bulk.
E)   facilitate refunds and rebate offers.F) A) and B)
G) B) and C)

Exam 3: The Business of Advertising

An agency that earns a _____ charges a basic monthly fee for all of its services to the client and retains any media commissions earned.

Correct AnswerverifiedShow Answer

What is the function of creative boutiques?

Correct AnswerverifiedThey work for advertisers and ...View AnswerShow Answer

The primary reason that some advertisers set up a wholly owned in-house ad agency is to

Correct AnswerverifiedShow Answer

The basic principles of advertising are the same for both local and national advertising.

Correct AnswerverifiedShow Answer

In advertising,what are television,radio,newspapers,magazines,billboards,direct mail,coffee mugs,and digital entertainment,commonly described as?

Correct AnswerverifiedShow Answer

When the advertising agency of Lopez and White purchased several hours of television time for its customers' commercials from KLOX-TV,the agency received 15 percent of the gross amount charged by the station.The 15 percent is known as a

Correct AnswerverifiedShow Answer

Contrast the role of the account planner with those of the creative team and the account executives.

Correct AnswerverifiedThe account planner uses research to rep...View AnswerShow Answer

Creative boutiques work for advertisers and occasionally subcontract to ad agencies.

Correct AnswerverifiedShow Answer

If Tomlinson Inc.,an ad agency,were to buy an ad in Western Horseman magazine for the manufacturer of Reins saddles,the ad would cost $3 ,000.How much money would the advertising agency bill the saddle manufacturer?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Most agencies prefer giving a speculative presentation to potential clients than highlighting past accomplishments because speculative presentations are quick and inexpensive.

Correct AnswerverifiedShow Answer

A manufacturer of _____ would be most likely to use a business-to-business agency.

Correct AnswerverifiedShow Answer

A(n) _____ performs all the administrative,planning,budgeting,and coordinating functions at a small,local business.

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

How do advertising agencies attract new clients?

Correct AnswerverifiedNew clients come from personal contact w...View AnswerShow 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

The traffic department coordinates all phases of production and makes sure everything is completed before deadlines.

Correct AnswerverifiedShow Answer

Why is local advertising sometimes called retail advertising?

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

International media that serve several countries are limited to newspapers and magazines.

Correct AnswerverifiedShow Answer

Interactive agencies

Correct AnswerverifiedShow Answer

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They work for advertisers and ...
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The account planner uses research to rep...
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New clients come from personal contact w...
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Local advertising is sometimes called re...
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Correct Answer
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