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Q:
In choosing an advertising agency, Lycra's marketing managers asked three different agencies to make a presentation about how each would enhance the unique position of the Lycra brand. What d is this process called?
A) Unique selling proposition presentation
B) A shootout
C) Creative exposure
D) Creative presentation
Q:
A creative pitch by an advertising agency seeking a new client should:
A) reveal how the agency would deal with specific issues in preparing a campaign.
B) nearly always be presented by top ad executives.
C) be refused because the client company has not clarified its selection criteria.
D) be the first step in the selection process.
Q:
In terms of an advertising agency selection process, a shootout includes:
A) goal setting processes.
B) developing selection criteria.
C) obtaining references.
D) evaluating creative pitches.
Q:
Asking two or more advertising companies to make a creative pitch is sometimes called:
A) studying past media purchases.
B) conducting a shootout.
C) studying the firm's client retention rate.
D) switching the contract.
Q:
In selecting an advertising agency, the request for a creative pitch should occur after the:
A) goals have been set.
B) initial list of applicants have been screened.
C) list has been reduced to only two or three viable candidates.
D) selection process to be used and the criteria for selection have been decided.
Q:
One simple method used to judge an advertising agency's creative reputation is to:
A) contact the company's competition.
B) ask for a list of awards the company has won.
C) conduct a shootout.
D) review the most recent media buys the agency has made.
Q:
A conflict of interest would be present if the:
A) client company's leaders cannot decide which ad agency to select.
B) ad agency already represents a similar product.
C) client company employs several former members of the ad agency.
D) ad agency employs several former members of the client company.
Q:
Which of the following situations would be considered as a conflict of interest in the selection of an advertising agency?
A) The advertising agency is owned by a larger company.
B) The advertising agency already represents a similar product or company.
C) The advertising agency outsources creative work.
D) The creative works for more than one client.
Q:
An agency representing convenience stores that has previously created ads for grocery stores would have:
A) relevant experience.
B) a conflict of interest.
C) interpersonal chemistry.
D) company complexity.
Q:
All of the following are evaluation criteria that should be considered in selecting an advertising agency except:
A) creative reputation and capabilities.
B) industry regulations.
C) production capabilities.
D) media purchasing capabilities.
Q:
All of the following are important evaluation criteria that should be considered in selecting an advertising agency except:
A) size of the agency.
B) relevant experience of the agency.
C) governmental regulations.
D) conflicts of interest.
Q:
In terms of selecting an advertising agency, company leaders at Atco Electronics do not have a clear idea of what they want to accomplish and therefore disagree as to what type of agency should be hired. This situation occurred because the company failed to:
A) develop selection criteria to be used in the ad selection process.
B) set goals before starting their search for an agency.
C) solicit client references before discussing what type of agency they want.
D) ask for a creative pitch.
Q:
In selecting an advertising agency, after corporate goals are set, the next step in the process is to:
A) request a creative pitch.
B) screen an initial list of applicants.
C) request client references.
D) select the process to be used and the criteria for selection.
Q:
The first step in selecting an advertising agency is to:
A) set goals.
B) screen an initial list of applicants.
C) request client references.
D) select the process to be used and the criteria for selection.
Q:
Name and describe other types of agencies that serve client firms, besides advertising agencies.
Q:
Contrast the advantages of using an in-house advertising or marketing department to hiring an external advertising agency.
Q:
Consumer-generated advertising works best for customers with a low level of brand loyalty.
Q:
Crowdsourcing is the process of outsourcing the production aspect of an advertisement to the public.
Q:
To be effective in terms of using an external agency, at least 75 percent of the advertising budget should be spent on media buys.
Q:
In terms of the 75-15-10 rule, the 10 represents the amount of money that is spent on creating or designing the ads.
Q:
In terms of the 75-15-10 rule, the 15 represents the amount of money that is spent on producing the actual advertisement or campaign.
Q:
In terms of the 75-15-10 rule, 75 percent of the money spent on advertising should be spent for media buys.
Q:
When the majority of a company's advertising budget is spent on media buys, rather than producing the advertisement, the marketing team should be inclined to complete the work in-house.
Q:
A boutique agency provides a full range of advertising services.
Q:
A media service company negotiates and purchases media packages, which are also known as media buys.
Q:
An external advertising agency may actually cost less than doing advertising work in-house.
Q:
An in-house advertising department is likely to be more objective than an external advertising agency and also have a better understanding of consumers and trends.
Q:
One of the advantages of an external advertising agency over an in-house marketing group is that the external agency offers greater expertise and has access to top creative talent.
Q:
Part of the reasoning for using an in-house advertising department is that internal organizational members have a better sense of the company's mission and message.
Q:
One important decision in advertising management is the choice between an in-house advertising group and an external advertising agency.
Q:
Using crowdsourcing to develop advertisements includes all of the following advantages except:
A) creating buzz surrounding a contest or the consumer-generated ad.
B) getting consumers involved.
C) lower costs.
D) getting ideas from individuals who purchase and use the product.
Q:
Crowdsourcing is the process of:
A) outsourcing the creative aspect of an advertisement to the public.
B) outsourcing the production aspect of an advertisement to the public.
C) outsourcing both the creative and production aspect of an advertisement to the public.
D) selecting creatives from the public domain rather than from an advertising agency.
Q:
In terms of money spent on developing an advertising campaign, a company should spend at least what percent of the money on buying media time or space?
A) 25
B) 40
C) 50
D) 75
Q:
If a company's media budget numbers are 85-10-5 and uses an external ad agency, this means the company:
A) is spending too much money on creative work.
B) should continue using an external advertising agency.
C) should discontinue using an external agency and perform the work in-house.
D) is spending too much money on media buys.
Q:
In terms of the 75-15-10 rule, the 10 percent represents the:
A) money spent on media time or space.
B) money spent on ad production.
C) money spent for the creative work.
D) fee for the media buyer.
Q:
In terms of the 75-15-10 rule, the 15 percent represents the:
A) money spent on media time or space.
B) money spent on ad production.
C) money spent for the creative work.
D) fee for the media planner.
Q:
In terms of the 75-15-10 rule, the 75 percent represents the:
A) money spent on media time or space.
B) money spent on ad production.
C) money spent for the creative work.
D) percentage of the work that must be completed before the client can be billed.
Q:
With regard to the account size in determining whether to use an external agency or perform the work in-house, all of the following statements are true except:
A) a small account is not usually attractive to a large agency.
B) if 75 percent of the advertising budget cannot be used to buy media time and space, it is better to perform the work in-house.
C) if the agency charges more than 25 percent of the money to design and create the ads, then the account is too small to use an external agency.
D) a small agency is not a viable choice, even for a small account, because the agency will lack the necessary resources to do the work.
Q:
If company leaders wanted to make sure an integrated approach is used in marketing communications, the best approach would be to:
A) hire a full-service agency.
B) use a boutique agency.
C) use a media service company to buy media time, but do the creative with freelancers.
D) utilize different companies for each aspect of the advertising campaign.
Q:
If a company received negative press, the marketing department may hire a:
A) boutique specialty agency.
B) media service company.
C) public relations firm.
D) direct-marketing agency.
Q:
If a company's managers want to use a boutique agency for developing a special contest or sweepstakes event, who should be contacted?
A) Media service agency
B) Consumer promotion agency
C) Direct marketing agency
D) Trade promotion agency
Q:
Media buys are normally made by the:
A) creative.
B) account executive.
C) traffic manager.
D) media service company.
Q:
A media service company:
A) negotiates contract rates between the agency and the client.
B) negotiates pay rates for creatives and advertising performers.
C) negotiates and purchases media packages.
D) handles direct marketing efforts.
Q:
A boutique-type advertising agency:
A) offers a wide array of services.
B) is designed to handle smaller accounts.
C) serves in-house clients.
D) offers one or a few specialized service or works with one type of client.
Q:
Advertising agencies offer all of the following advantages except:
A) potentially lower costs due to efficiency.
B) better understanding of the product and how it is used by consumers.
C) greater expertise and access to top creative talent.
D) perspective of an outsider.
Q:
All of the following are advantages of using an in-house advertising department except:
A) a better understanding of the product and mission of the company.
B) produce ads faster.
C) a better understanding of consumers and consumer trends.
D) greater consistency in ads because of lower turnover among the creative team.
Q:
Advantages of an in-house advertising department include all of the following except:
A) greater expertise and talent on creating ads.
B) lower costs.
C) the message can be aligned with the brand and other company communications.
D) the CEO and upper management can work closely with the marketing team.
Q:
Decay effects occur when a company's advertisements have become old or boring.
Q:
A threshold effect means that an ad has been shown often enough so that the consumer will remember the company or brand when it is time to buy the product.
Q:
A marginal analysis is used to portray how returns on additional advertising expenditures are related to incremental increases in sales.
Q:
A sales-response function curve shows when diminishing returns on advertising expenditures are present.
Q:
When a company introduces a new product under a strongly established brand name, the length of time to reach the threshold point where advertising becomes effective is normally longer.
Q:
A threshold effect occurs when repeated exposures to a message cause consumers to lose interest in the company.
Q:
Recent studies have revealed that a 10 percent increase in advertising leads to about a 5 percent increase in sales, although results vary widely.
Q:
It is an unrealistic assumption to believe that a direct relationship exists between expenditures on advertising communications and subsequent sales revenues.
Q:
When consumers begin to forget a brand name because advertising messages have stopped, it is a sign of:
A) a sales-response curve.
B) wear out effects.
C) decay effects.
D) carryover effects.
Q:
Which is present when consumers begin to think of an advertisement as old or stale?
A) A sales-response curve
B) Wear out effects
C) Decay effects
D) Carryover effects
Q:
Manufacturers of appliances, such as GE and Whirlpool, advertise on a continuous basis because appliances are purchased infrequently and only when they are needed. To ensure the brand name is more likely remembered when the need arises, these manufacturers rely on:
A) threshold effects.
B) sales-response function curve.
C) wear out effects.
D) carryover effects.
Q:
Sandra recalls seeing an advertisement for Philadelphia Cream Cheese highlighting that the brand produces a chocolate version, which illustrates the:
A) carryover effects of previous ads.
B) wear out effects of ads of competitors.
C) threshold effects of former ads.
D) decay effects of former ads.
Q:
Which concept explains that consumers may recall an ad from the past and make a purchase because they have seen the ad several times?
A) A sales-response curve
B) A marginal analysis
C) Decay effects
D) Carryover effects
Q:
Which suggests that further advertising and promotion expenditures may result in adverse effects on profits?
A) A sales-response function
B) A marginal analysis
C) Average return on investment curve
D) Promotions opportunity curve
Q:
When a concave downward function is present, increasing advertising expenditures result in:
A) greater sales.
B) diminishing returns.
C) average returns.
D) further advertising expenditures.
Q:
Pepsi and Coke both have reached the point that investing more dollars in advertising yields smaller increases in sales. Which is present?
A) Decay effects
B) Threshold effects
C) Concave downward function
D) Carryover effect
Q:
The sales-response function curve models the ________ of advertising.
A) diminishing returns
B) threshold effects
C) carryover effects
D) decay effects
Q:
When BMW motorcycle advertisements began targeting females, the initial impact was minimal, but after some time passed the ads began to have an impact on inquiries by females and later on sales revenues. This illustrates:
A) the impact of communication goals on sales revenues.
B) threshold effects.
C) sales-response function curve.
D) carryover effects.
Q:
The early effects of an advertising campaign may be minimal, but over time gain momentum. This phenomenon is:
A) diminishing returns.
B) threshold effects.
C) the sales-response curve.
D) carryover effect.
Q:
As consumers see advertisements over time they become more likely to recall a message and purchase a product. This demonstrates:
A) diminishing returns.
B) decay effects.
C) threshold effects.
D) purchase simulation.
Q:
In terms of the relationship between expenditures on advertising communications and subsequent sales revenues, too many marketing managers assume that there is a(n):
A) direct relationship.
B) indirect relationship.
C) inverted U-shaped relationship.
D) inverse relationship.
Q:
Explain the relationship between verbal and visual elements of an ad and how these elements are encoded in the brain.
Q:
Explain the concept of the means-end chain.
Q:
The "Got milk?" campaign emerged after consumers were deprived of milk for a week. What forms of communication research was used to discover the impact of doing without milk?
A) Product-specific and consumer-oriented research
B) Target-market and product-specific research
C) Consumer and business-to-business research
D) Sociological and anthropological research
Q:
The three primary approaches used in communications research include:
A) consumer-oriented, business-to-business research and market-based research.
B) product-specific research, consumer-oriented research and target-market research.
C) competitive analysis, industry research and consumer research.
D) consumer-specific research, brand equity research and business-specific research.
Q:
The first step in the IMC planning process is:
A) communications research.
B) defining the firm's target market.
C) an analysis of the product positioning.
D) developing communications objective.
Q:
In terms of global ad spending by media, the largest category is:
A) television.
B) magazines.
C) digital.
D) newspapers.
Q:
While a market communication analysis is beneficial in international markets, successful marketing programs are usually built without the analysis as long as the company's marketers understand the local culture.
Q:
A key to a successful global integrated marketing communications campaign is developing local partnerships that are familiar with the local language and customs.
Q:
A successful GIMC program utilizes market segmentation adapted to countries and cultures.
Q:
In terms of marketing communication expenditures, the fastest growing media outlet is the internet.
Q:
Consumer product manufacturers spend more money on trade promotions directed toward retailers while service companies spend more money on media advertising.
Q:
Successful global integrated marketing communication campaigns include all of the following tactics except:
A) a standardization approach.
B) understand the international market.
C) create a borderless marketing plan.
D) think globally, but act locally.