Q&A Hero

Q: (p.71-72)What are the two most common client based classification of the full service agency? Discuss in brief, the characteristics of such agencies.

Q: (p.70)Advertising agencies work for the media.

Q: (p.83)Research is closely allied to advertising and an important tool for marketing professionals. Most firms do not maintain a fully staffed research department. Instead, they use independent: A.Web data agencies. B.research production houses. C.research suppliers. D.research intermediaries. E.data boutiques.

Q: (p.84-85)Which of the following is a current trend in advertising? A.Increased use of commissions by large advertisers. B.The development of small specialty advertising agencies. C.The combining of the small agencies into a few large agencies. D.A decline in viable media options. E.Decreased of audience empowerment.

Q: (p.59)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.

Q: (p.60)Local advertising is sometimes called cooperative advertising.

Q: (p.60)The most common types of local ads are sales, clearance, product and classified.

Q: (p.62)One of the primary purposes of co-op advertising is to build the manufacturer's brand image.

Q: (p.64)The basic principles of advertising are the same for both local and national advertising.

Q: (p.64)One of the primary differences between national and local advertisers is that national advertisers plan strategically and local advertisers think tactically.

Q: (p.66)One of the ways to organize a centralized advertising department is by the sub-function of advertising.

Q: (p.67)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.

Q: (p.68)Multinational companies that use a customized approach to marketing and advertising in all countries are considered global marketers.

Q: (p.70)The majority of countries do not have strong national newspapers for conducting national advertising campaigns.

Q: (p.82)In the advertising agency business, _____ are people and organizations that provide specialized services. A.ad distributors B.media agencies C.advertising brokers D.suppliers E.ad intermediaries

Q: (p.82)_____ supply agencies with artwork and illustrations for advertisements. A.Ad intermediaries B.Art studios C.Art agencies D.Production houses E.Art directors

Q: (p.83)Which of the following designs Web pages and ads which are both effective and efficient? A.Production house B.Art house C.Internet boutique D.Art agency E.Web design house

Q: (p.83)Because few agencies have the capability to produce television ads in-house, most rely on independent: A.production houses. B.ad intermediaries. C.art agencies. D.Internet boutiques. E.art studios.

Q: (p.76-77)In medium- and large-sized advertising agencies, the organization is generally formal and is structured according to the: A.industry served. B.group or departmental system. C.media availability. D.size of client companies served. E.geographical location.

Q: (p.77)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: A.is a form of payment called a spiff. B.should have been paid to the advertiser as a negotiated fee. C.is not illegal but is believed to be unethical by most individuals in the advertising industry. D.is called a slotting allowance. E.is called a media commission.

Q: (p.77)If the Tomlinson Agency were to buy an ad in Western Horseman magazine for the manufacturer of Reins man saddles, the ad would cost $3,000. How much money would the advertising agency bill the saddle manufacturer? A.$2,250 B.$2,850 C.$3,000 D.$3,150 E.$3,750

Q: (p.77)JWT Agency has designed a quarter-page magazine ad for Promise vegetable-oil spray. The job required the services of a photographer to produce photographs of various foods that will "taste better with Promise". The invoice for the artwork from the photographer was for $200. If JWT uses the traditional markup, how much did the advertising agency bill Promise vegetable-oil spray company? A.$170 B.$200 C.$230 D.$235 E.$250

Q: (p.77)An agency that earns a _____ charges a basic monthly fee for all of its services to the client and retains any media commissions earned. A.retainer B.salary-plus-commission C.media markup D.fee-commission combination E.negotiated fee

Q: (p.77-78)In advertising, a retainer is: 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.

Q: (p.78)The primary reason that some advertisers set up a wholly owned in-house ad agency is to: A.increase their overhead. B.save money and tighten control over their advertising. C.stimulate external creative efforts on the part of the marketing staff. D.meet the challenge of ad agencies and mass media with respect to creative incentives. E.increase the size of the markup they pay.

Q: (p.79)What is probably the greatest disadvantage associated with in-house ad agencies? A.Loss of revenues B.Adherence to the organizational mission C.Reluctant acknowledgement by the mass media D.Loss of objectivity E.Staff-line relationships

Q: (p.80)Some advertisers ask for or imply that they want to see what the agency will do before they sign on. The agencies thus must create a: A.speculative presentation. B.provisional showing. C.portfolio of previous ad campaigns. D.storyboard. E.three-dimensional advertising plan.

Q: (p.80)Which of the following statements about the speculative presentation is true? A.Agencies often ask prospective customers if they would like to see a speculative presentation. B.The speculative presentation is the preferred method for acquiring new clients. C.The speculative presentation process allows the agency and the advertiser to get to know each other they agree to work together. D.Agencies never spend more than $100,000 on creating speculative presentations. E.Speculative presentations are required by law in three states of U.S.

Q: (p.81)What is the most critical factor in the agency-client relationship? A.The competitive relationship between the in-house and the outside 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.

Q: (p.81)The most commonly cited reason for changing agencies is: A.internal environmental changes. B.poor communication. C.loss of subjectivity. D.dissatisfaction with agency performance. E.a static competitive environment.

Q: (p.73)Which of the following statements is true about account planning? A.It is a method used to benchmark competitors. B.It is a hybrid discipline that bridges the gap between the traditional agency research, account management and creative departments. C.It does not include any consumer research. D.It is the reorganization of an advertiser for the purpose of improving its image. E.It is a service provided by creative boutiques, which allow the advertiser to choose generic ads that can be customized.

Q: (p.74)_____ must have the skill to condense all that can be said about a product into a few salient and pertinent points. A.Account directors B.Advertising supervisors C.Copywriters D.Communication specialists E.Advertising planners

Q: (p.69)An advertiser who uses international media: A.typically uses a highly decentralized advertising department. B.has a flat organizational structure. C.serves several countries, usually without any change in the advertising. D.develops a different ad for the local media of each country. E.typically produces its ads in the language of each country in which it advertises.

Q: (p.74)An ad for Calvin Klein's Eternity fragrance for men and women contains a black-and-white full-size photograph of an attractive, young couple in a romantic embrace. Who is in charge of the photograph portion of the ad, its placement on the page and the location and appearance of the product and product name in the ad? A.Ad illustrator B.Advertising planner C.Media specialist D.Art director E.Communication specialist

Q: (p.69)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: A.multitask advertising. B.foreign media. C.global advertising. D.standardized advertising. E.international media.

Q: (p.74)An ad agency's traffic department: A.maintains the agency's position as a facilitating intermediary. B.develops of the client's channel of distribution. C.coordinates all phases of ad production. D.negotiates media deals. E.makes sure there is no unplanned replication of the advertising effort.

Q: (p.70)As defined by the American Association of Advertising Agencies, the _____ is an independent organization of creative people and business people that specialize in developing and preparing advertising plans, advertising and other promotional tools. A.creative boutique B.promotional facilitator C.facilitating intermediary D.advertising agency E.advertising supplier

Q: (p.70)When compared to an in-house agency an independent advertising agency offers the advantage of a: A.better defined strategic plans. B.stronger organizational mission statement. C.more complete control over all channels of distribution. D.more objective viewpoint to the advertiser's business. E.lower variable expenses.

Q: (p.71)The modern _____ advertising agency supplies both advertising and non-advertising services in all areas of communications and promotion for its clients. A.entrepreneurial B.institutional C.organizational D.full-service E.multi-tasking

Q: (p.71)A full-service advertising agency: A.supplies both advertising and non-advertising services in all areas of communications and promotion. B.should not be expected to produce annual reports, trade show exhibits or sales-training material. C.is normally classified as one of three basic typesgeneric, specialist, or entrepreneurial. D.works on a contractual basis and does not accept commissions. E.supplies advertising and non-advertising services in certain, not all, areas of communications and promotion.

Q: (p.71)General consumer agencies: A.provide advertising for products that are used in the manufacture of consumer products. B.concentrate on institutional advertising accounts. C.represent the widest variety of accounts. D.are not paid on a commission basis. E.do not operate internationally.

Q: (p.72)A manufacturer of _____ would be most likely to use a business-to-business agency. A.greeting cards B.hydrocracker machinery used in an oil refinery C.personal laptops D.designer apparel E.monogrammed towels

Q: (p.72)Flexco manufactures rivets used on heavily loaded conveyor belts which carry ore in underground and surface mining operations. Flexco would most likely hire a(n) _____ agency to create the company's advertising. A.general consumer B.intermediary C.institutional D.non-commissioned E.business-to-business

Q: (p.72)A(n) _____ is an organization of creative specialists who works for advertisers and occasionally subcontracts to advertising agencies. Its mission is to develop exciting creative concepts and to produce fresh, distinctive advertising messages. A.promotional facilitator B.interactive agency C.entrepreneurial agency D.creative boutique E.IMC agency

Q: (p.72)DDB Needham, one of the world's largest ad agencies, formed a company with director Spike Lee called Spike DDB. The purpose of the new company is to develop ways to tap into urban trends and to increase minorities' use of its client's brands. The company is relying on the creative abilities of director Spike Lee to produce fresh, distinctive advertising messages. Spike DDB would be categorized as a(n): A.promotional facilitator. B.interactive agency. C.entrepreneurial agency. D.creative boutique. E.IMC agency.

Q: (p.72)Western International Media buys unsold television and radio media and resells the time and space to advertisers and agencies. Western International Media is an example of a(n): A.entrepreneurial agency. B.promotional facilitator. C.creative boutique. D.media-buying service. E.promotional broker.

Q: (p.72)Interactive agencies: A.use customer relationship marketing to work with customers. B.create ads for nontraditional media like car bodies, supermarket carts and the back of airplane tickets. C.design Web pages and ads for the Internet. D.acts as a broker of advertising services to small companies that have limited advertising budgets. E.include among their services a fulfillment center for refunds and rebate offers.

Q: (p.73)Account executives are: A.brokers of advertising services to small companies that have limited advertising budgets. B.the liaisons between the agency and the client. C.typically employed by non-profit organizations as fund raisers. D.agents that handle multiple small non-competing advertising accounts. E.the sole media buyers at most large agencies.

Q: (p.67)A company that uses a(n) ____, sets up separate ad departments for different divisions, subsidiaries, regions, brands or other categories that suit the company's needs. A.centralized system B.pyramid system C.organizational development scheme D.decentralized system E.managerial hierarchy

Q: (p.53)The National Advertising Division (NAD) of the National Advertising Review Council (NARC): A.promotes the benefits of advertising to its critics. B.serves as the appeal board for decisions made by the National Advertising Review Board. C.is a monitoring and investigative body. D.protect consumers from unfair and deceptive advertising. E.guides new businesses in the development of ethical advertising codes.

Q: (p.68)Organizations that use a standardized approach to marketing and advertising in all countries in which they do business are called: A.foreign marketers. B.multinational corporations. C.global marketers. D.international exporters. E.transnational corporations.

Q: (p.53)Good Housekeeping magazine places its "Seal of Approval" on all the products advertised in it. If any of the products are later found to be defective, Good Housekeeping promises to refund the money paid for the products. This kind of careful screening: A.is required by the Federal Trade Commission. B.is a way for a medium to monitor its advertisements. C.was required by legislation passed during the Great Depression and Good Housekeeping has continued the practice. D.is used by most print media, including the tabloids. E.is redundant given the watchfulness of federal regulatory agencies.

Q: (p.54)_____ is defined as social action designed to dramatize the rights of the buying public. A.De-marketing B.Consumerism C.Social responsibility D.Socialization E.Consumer lobbying

Q: (p.54)Consumer advocate groups: A.substantiate ads. B.sponsor competitor boycotts. C.create communications barriers that make it difficult for advertisers to reach consumers. D.submit complaints about ads to appropriate government agencies.

Q: (p.54)The ____, an association of the largest ad agencies in the United States, monitors industry-wide advertising practices. A.American Advertising Federation B.Association of National Advertisers C.Consumer Federation of America D.American Association of Advertising Agencies E.National Advertising Review Council

Q: (p.61-62)Advertisers use _____ advertising in the newspaper to locate and recruit new employees, to offer services or to sell or lease new and used merchandise. A.classified B.product C.generic D.relationship E.media

Q: (p.62)Cooperative advertising serves two key purposes. One of those purposes is to help a manufacturer's distributors, dealers or retailers make more sales. The second purpose is to: A.reduce the probability that distributors, dealers or retailers will do no advertising at all. B.decrease the probability that distributors, dealers or retailers will present poor advertising to a manufacturer's customers. C.build the manufacturer's brand image. D.save the manufacturer money by reducing its variable costs. E.reduce dependence on institutional advertising.

Q: (p.62)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? A.Cooperative advertising B.Horizontal advertising C.Vertical advertising D.A franchise promotion E.A strategic promotion

Q: (p.63)Pathmark Stores operate 142 supermarkets in the New York-New Jersey and Philadelphia metropolitan areas. Pathmark Stores only advertises in those states where it has stores. The form of advertising that best describes Pathmark's approach to advertising is: A.institutional. B.adjacency. C.regional. D.national. E.local.

Q: (p.64)According to the text, local advertisers and national advertisers differ in terms of: 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, resources and focus.

Q: (p.64)Many experts believe the biggest difference between local advertisers and national advertisers is their: A.focus on sales. B.use of cooperative advertising. C.ability to act proactively. D.emphasis on feedback. E.relationships with customers.

Q: (p.64)Helen Jackson operates a retail store that specializes in children's clothing in a local strip mall. She faces many promotional and advertising decisions on a daily basis. For example, what kind of a sale should she conduct after the Christmas holidays? For how many days should the sale be held? What kind of items should be placed on sale? Jackson's advertising focus is on _____ because of its short-term nature. A.strategy B.tactics C.narrowcasting D.broadcasting E.relationships

Q: (p.66)Toys 'R' U.S. has divided its advertising department into two sections: Toys 'R' U.S. United States and Toys 'R' U.S. International. Toys 'R' U.S. International is further divided into individual overseas locations including Italy, Germany, France, Hong Kong, Singapore and Canada. Given these facts, it would appear that the Toys 'R' U.S. ad department is organized by: A.product or brand. B.sub-function of advertising. C.end user. D.media. E.geography.

Q: (p.66)Ericsson is an international telecommunications supplier based in Sweden. It has six product lines: public switches, private branch exchanges, radio communications, defense system, components and cable and network television systems. If a media representative wanted to sell ad space to the company, he or she must meet with representatives from each of the product lines. Its ad department is organized by: A.product or brand. B.sub-function of advertising. C.end user. D.media. E.geography.

Q: (p.67)One of the advantages that a company has when it uses a decentralized advertising department is: A.exceptionally good organizational communications flow. B.lack of measurable responses. C.rigid and compact structure. D.increased divisional flexibility. E.a narrow span of management.

Q: (p.47)In 2005, Adolph Coors Co. ran an ad which featured a purported taste test between Aspen Edge and Anheuser-Buschs Michelob Ultra. A taste-tester downed a glass of Aspen Edge and took only a sip of Michelob Ultra. A print version of the ad said, "Beer drinkers agree that Aspen Edge has more taste than Michelob Ultra". Coors was forced to remove the television advertisements after Anheuser-Busch said it made unsubstantiated claims about consumer preferences. Anheuser-Busch: A.was exercising its right to protect its trademark. C.was using laws designed to protect protects from gray marketing. wanted to see the research data that supported this claim of superior taste. E.issued an unsupported cease-and-desist order. Under current law, any advertiser that misrepresents its own or another firm's goods, services, or activities is vulnerable to a civil action. In addition to being truthful, comparative ads must compare on some objectively measurable characteristic. And the greatest scrutiny must be given to the substantiation. Comparison advertising requires convincing substantiation; otherwise it may be considered deceptive. (Refer Truth in Advertising: Fluffing and Puffing, Page 35)

Q: (p.52-53)The primary purpose of the National Advertising Review Council is to: A.promote and enforce standards of truth, accuracy, taste, morality and social responsibility in advertising. B.supplant the Federal Trade Commission as the chief advertising regulatory agency. C.work with the Department of Justice to prevent any one company from monopolizing a particular media. D.protect consumers from unfair and deceptive advertising. E.promote the benefits of advertising to its critics.

Q: (p.48)Two companies, Le Shuttle and P&O European Ferries, provide Europeans with the ability to cross the English Channel. An advertisement for Le Shuttle claimed it was more popular with travelers than P&O European Ferries. P&O European Ferries lodged an objection with a European regulatory agency and pointed out that they had carried 1. 4 million cars in the previous year compared to only 1 million on the Shuttle. P&O European Ferries was hoping to get Le Shuttle to run _____ advertising. A.corrective B.professional C.comparative D.cease-desist E.consent

Q: (p.48)When Grace looked at the container of Roundup weed and grass killer, she saw a notice that read, "Avoid contact with eyes. This product can cause eye irritation". This _____ would be important to all of us who wanted to take the best possible care of our eyes. A.package requirement B.testimonial C.nutritional claim D.consent decree E.affirmative disclosure

Q: (p.48)When the Federal Trade Commission determines that an ad is deceptive or unfair, it can: A.require the advertiser to run cooperative advertising. B.convince the advertiser to sign a consent decree. C.require the advertiser to pay reimbursements to all consumers who bought the product. D.force the firm that ran the deceptive ad to get "advance clearance" on all future ad campaigns. E.place a federal representative in the deceptive firms advertising department to oversee future ad campaigns.

Q: (p.48)A(n) _____ is a document that the advertiser accused of deceptive or unfair advertising signs in which it agrees to stop the objectionable advertising. A.consent decree B.product substantiation claim C.cessation order D.ad sanctioning agreement E.guilt disclosure

Q: (p.48)Which of the following statements is true about cease-and-desist orders? A.They are voluntary statements that have no legal ramifications. B.They require that the FTC place a representative in the advertising department of the accused advertiser to monitor further campaigns. C.They prohibit further use of the offending advertisement. D.They prohibit any kind of advertisement by the offending company. E.They are issued by the Better Business Bureau.

Q: (p.48)The Federal Trade Commission has filed a complaint against Provide Commerce, the parent company of Pro-Flowers, for "false and misleading" advertising. Pro-Flowers claim that it ships inventory "directly from the fields". The ads imply that the flowers are not picked until they are ordered. Pro-Flowers actually stores flowers in refrigerated warehouses and ships from these warehouses. The FTC can order Pro-Flowers to run _____ and inform its customers that its flowers do not come fresh from the field. A.substantiated advertisement B.corrective advertisement C.cease-desist orders D.consent orders E.cessation order

Q: 86.(p.49)Which of the following statements about the Food and Drug Administration (FDA) is true? A.The FDA has authority over the labeling, packaging and branding of all packaged foods and therapeutic devices. C.The FDA does not require health food manufacturers to list the ingredients of their products on package labels. D.The FDA has no control over promotional statements on package labels. E.The FDA is a branch of the Federal Trade Commission (FTC).

Q: (p.49)Which federal agency would have the authority to deal with the fact that a brand of hotdog marked "Low Fat" contains only ten percent less fat than regular hotdogs? A.The Library of Congress B.The Patent and Trademark Office C.The Food and Drug Administration D.The united states post office E.The federal communications commission

Q: (p.49)An ad in a 1940 Time magazine states, "Listerine mouthwash reduces germs on up to 96.7% of tissue surfaces 15 minutes after a Listerine gargle. Which federal agency would have the authority to determine if this claim was correct? A.The Library of Congress B.The Patent and Trademark Office C.The Food and Drug Administration D.The united states post office E.The federal communications commission

Q: (p.49)The _____ has indirect control over advertising through its authority to license or revoke the license of all broadcasting stations. A.Federal Trade Commission B.Federal Communications Commission C.Better Business Bureau D.National advertising review council E.Office of Consumer Affairs

Q: (p.50)Through the issuance of ____, the government provides incentives to invent, invest in and disclose new technology worldwide. A.trademarks patents D.venture capital E.differential advantages Through the issuance of patents, the government provides incentives to invent, invest in, and disclose new technology worldwide.

Q: (p.50-51)A trademark: A.is any word, name, symbol or device or combination thereof, which identifies one particular product or line of products from a single source. B.prevents the whole ad from being legally used by another. C.is required by law to be significantly different from the trade name of the organization that owns the trademark. D.is registered and protected by the Library of Congress. E.grants exclusive rights to the trademarked material for the life span of its owner plus an additional 50 years.

Q: A.An idea for an ad campaign featuring comic characters from the 1930s B.The dynamic ribbon used in Coca-Cola ads C.The U.S. Marine Corps symbol D.The NBC peacock E.The newest book by Dan Brown