Chapter 03 Organizing for Advertising and Promotion PDF

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Chapter 03 Organizing for Advertising and Promotion 1. Which of the following terms best describes the advertising approach used by Crispin Porter and Bogusky? A. advertorial B. traditional media C. nontraditional D. nontraditional advocacy advertising E. sponsorship

2. What is the goal of Crispin Porter and Bogusky? A. To make their ads more compelling B. To find the best places to reach the target audience C. To maximize television ad revenues D. To eliminate the need for spokespeople E. To maximize clients' need for IMC

3. _____ are NOT one of the major participants in the integrated marketing communications process. A. Advertising agencies B. Advertisers or clients C. Media organizations D. Public relations firms E. New-product development firms

4. The term client, in the ad agency industry, refers to the: A. advertiser or organization that has the product, service or cause that needs to be marketed B. media C. purchaser of the consumer product advertised D. market for consumer products E. advertising agency

5. The _____ 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. A. media organization B. sales promotion firm C. research organization D. advertising agency E. creative boutique

6. From the perspective of a promotional planner, the primary purpose of most media is to: A. entertain consumers B. inform consumers C. provide a way of reaching consumers with the company's marketing communications message D. help the company understand the marketplace E. do all of the above

7. The ______ primary function is to provide information or entertainment to an audience. A. client's B. advertising agency's C. media's D. customer's E. advertiser's

8. Direct marketing agencies, sales promotion agencies, and public relations firms are examples of: A. different types of advertising agencies B. media organizations C. collateral services D. specialized marketing communication services E. in-house agencies

9. ______ is the functional area or department in an organization most likely to be involved in the promotional planning process. A. Accounting B. Media relations C. Corporate affairs D. Finance E. Marketing

10. Which of the following statements about the role of top management in the advertising and promotion decision making process is true? A. Top management is usually very involved in the day-to-day decision making and operations of advertising and promotion. B. Top management never has any input into the advertising and promotion process. C. Top management is usually interested in how the advertising program represents the organization even though this is not an area in which it has much involvement. D. Top management is only interested in the amount of money that must be allocated to advertising and promotion. E. Top management is more interested in tactical planning than strategic.

11. Under a centralized organizational system, the responsibility for planning and controlling the advertising and promotional function lies with the: A. brand manager B. advertising manager C. product manager D. in-house agency E. vice president of marketing

12. Under a centralized organizational arrangement, which of the following is NOT a responsibility of the advertising manager? A. budgeting B. coordinating the creation and production of ads C. planning the media schedule D. administering sales promotion programs E. sales and sales management

13. Problems associated with a(n) _____ include difficulty with coordination and less of an understanding of the overall marketing goals for individual products or brands. A. decentralized marketing system B. in-house agency C. centralized marketing system D. brand management system E. creative boutique

14. When a _____ is used, most of the advertising and promotional activities of a company will be the responsibility of the advertising manager. A. brand manager system B. decentralized marketing system C. centralized system D. media buying service E. creative boutique

15. A brand manager in a decentralized marketing system has responsibilities for ______ for his or her brand. A. planning of the marketing program B. developing and coordinating the budget C. tracking profit performance D. implementing and controlling the marketing program E. doing all of the above

16. The role of the advertising department in a company using a decentralized product management system is to: A. plan and coordinate the advertising campaign B. provide advertising and promotion related support for the brand managers C. conduct marketing research D. develop sales programs E. do none of the above

17. In a decentralized system of advertising organization, the responsibility of planning, implementing, and controlling the marketing program for an individual brand belongs to the: A. product manager B. creative director C. account executive D. layout editor E. communications team

18. Individuals who have the responsibility of coordinating efforts of various product or brand managers for a particular product class are known as: A. category managers B. superordinate managers C. account executives D. account supervisors E. media planners

19. A _____ advertising organizational system has the advantages of concentrated managerial attention, rapid response to problems, and increased flexibility. A. centralized B. decentralized C. democratic D. collateral system E. functionally-incorporated

20. Which of the following describes a limitation associated with the decentralized organizational structure for advertising? A. Brand managers are often overqualified and want too much input into advertising. B. Brand mangers are typically highly experienced in advertising and understand exactly what advertising can do for a brand. C. Brand managers do not devote enough attention to short-term planning and administrative tasks. D. Brand managers often end up competing for management attention, marketing budgets, and other resources. E. With their reliance on intuition, brand managers often jeopardize the creative activities of the advertising agency.

21. When the client assumes the entire promotional function, it is said to operate: A. on a client management basis B. on a creative and functional basis C. as an in-house agency D. as a full-service system E. as a self-sufficient agency

22. Which of the following is an advantage associated with an in-house advertising agency? A. lower advertising costs B. more highly skilled specialists C. more varied perspective on advertising problems D. greater flexibility E. all of the above

23. A major reason why some companies choose to use an in-house agency is to: A. maintain creative freshness B. reduce advertising and promotions costs C. better understand how advertising works D. win advertising awards that will enhance the image of their brands E. do all of the above

24. All of the following are advantages of in-house agencies EXCEPT: A. more objectivity B. cost savings C. increased coordination D. more overall control E. easy access to pertinent personnel

25. Lack of long-term objectivity, flexibility, and creativity are a few of the reasons why a company might move away from: A. a decentralized marketing system B. an in-house agency C. the use of full-service advertising agencies D. a centralized marketing system E. the use of creative boutiques

26. A company that uses an in-house agency might turn its advertising and promotion tasks over to an outside agency to: A. get more control over the advertising process B. save money C. get an objective, fresh look at its advertising situation by someone outside the company who can come up with different creative ideas D. make coordination of the advertising and promotional process easier E. do all of the above

27. Which of the following statements about the U.S. advertising agency business is true? A. Most U. S. ad agencies are large businesses with billings exceeding $100 million per year. B. Most U. S. ad agencies are individually owned small businesses employing fewer than five people. C. Nearly all of the U.S. domestic billings are handled by the top 100 agencies. D. Most of the top U. S. ad agencies are headquartered in Chicago. E. There are approximately 1,000 agencies listed in the Standard Directory of Advertising Agencies.

28. ____ are the amounts of money agencies spend on media purchases and other equivalent activities. A. Billings B. Media commissions C. Retainers D. Activity fees E. Traffic compensation

29. Superagencies were formed: A. because advertisers were disenchanted with large agencies B. because advertisers wanted agencies were more flexible and responsive C. to save money for clients D. so agencies could provide their clients with integrated marketing communications services worldwide E. to lessen the need for competitive pricing

30. In the mid-1990s, a number of mid-sized ad agencies formed alliances with larger agencies: A. to save money B. to offer greater media buying capabilities C. because clients want agencies with integrated marketing communications capabilities worldwide D. so they can specialize in a particular area of integrated marketing communications E. all of the above

31. Which of the following statements explains why an organization would want to use an outside advertising agency? A. An outside advertising agency saves money for the client. B. An outside advertising agency helps the client gain more prestige and a better image. C. An outside advertising agency has media experts. D. An outside advertising agency provides research expertise. E. An outside advertising agency provides the client with the services of highly skilled individuals who are experts in a number of areas including creative, media, and research.

32. Which of the following statements about advertising agencies is true? A. Agencies must be used since companies do not have the capabilities of developing their own advertising. B. Agencies are often used because of the skill, expertise, and experience they can offer in the advertising area. C. Most large, national advertisers use in-house agencies. D. Most large agencies offer only creative services to their clients. E. Most large advertisers are totally content with the current commission system of compensation.

33. Which type of ad agency is most likely to assist the client in areas such as marketing strategy and research, campaign planning and execution, and media planning and buying? A. a creative boutique B. a full-service agency C. a media buying service D. a collateral agency E. All of the above are equally likely to provide assistance in all areas.

34. A full-service agency offers its clients: A. account services B. research C. creative development D. public relations expertise E. all of the above

35. An ad agency that offers its clients a complete range of marketing, communication, and promotion services is known as a: A. creative boutique B. media buying service C. in-house agency D. full-service agency E. integrated marketing organization

36. The communications link between the ad agency and its clients is: A. account services B. marketing services C. the media D. creative services E. the sales promotions department

37. The _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel. A. account executive B. database manager C. media specialist D. copywriter E. traffic coordinator

38. The agency person who is the focal point of the agency-client relationship is the: A. media buyer B. product manager C. copywriter D. brand manager E. account executive

39. The function of gathering, analyzing, and interpreting information that will be useful in developing advertising is the responsibility of the agency's _____ department. A. production B. traffic C. media D. account management E. research

40. The department in an advertising agency that is responsible for analyzing, selecting, and contracting for ad space or time that will be used to deliver its client's advertising message is the _____ department. A. public relations B. account services C. marketing research D. media E. creative services

41. Which of the following statements about the role of ad agency media departments is true? A. Many large advertisers use media departments in a variety of different agencies to purchase media time and space. B. A media department's ability to negotiate prices and make effective use of the vast array of media options has become very important. C. The media department of an ad agency reviews information on demographics, magazine and newspaper readership, radio listenership, and consumers' television viewing habits. D. Many large advertisers are consolidating their media buying with one or a few agencies' media departments to save money and improve media efficiency. E. All of the above statements about the role of ad agency media departments are true.

42. Which of the following statements about the role of ad agency media departments is true? A. Large advertisers do not use media departments to purchase media time and space. B. Media departments do not have the ability or the authority to negotiate prices. C. The media department of an ad agency reviews information on demographics, magazine and newspaper readership, radio listenership, and consumers' television viewing habits. D. Consolidating media buying is not cost effective and may reduce media efficiency. E. All of the above statements about the role of ad agency media departments are true.

43. The Career Profile of Dan Kohler suggests: A. advertising is a better career choice than accounting B. that opportunities are yours to create C. risk taking can backfire D. the biggest ad agencies provide the best opportunities E. all of the above

44. _____ are the individuals who conceive the ideas for the ads and write the advertising message. A. Copywriters B. Art directors C. Traffic coordinators D. Account executives E. Media planners

45. The _____ is responsible for creating the visual portion of an ad such as layouts and the commercial storyboards. A. account executive B. copywriter C. product management department D. research department E. art department

46. Which department within an advertising agency would assume the responsibility for hiring outside persons such as printers, engravers, photographers, or other vendors to turn a layout into a finished product? A. media department B. art department C. copywriters D. traffic department E. production department

47. The _____ department coordinates all phases of production to ensure the proper progression of the advertisement. A. research B. production C. art D. traffic E. media

48. Most of an advertising agency's expenses are in the area of: A. media costs B. salaries and benefits for employees C. personal selling D. production facilities E. commissions

49. A _____ is an agency organizational structure in which each functional area is set up as a separate department. The parts of this structure are called on as needed to perform their particular specialty and serve all of the agency's clients. A. departmental system B. group system C. creative boutique D. matrix system E. media buying service system

50. Jackson & Morris 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. The agency is using a _____ organizational system. A. departmental system B. group system C. matrix system D. boutique system E. dedicated system

51. An advertising agency that wants its employees to develop expertise in servicing a variety of accounts should use a(n) _____ structure. A. group system B. departmental system C. creative boutique D. in-house E. decentralized

52. An advertising agency might use a group system organizational structure to: A. allow agency personnel to become very knowledgeable about a particular client's market and business B. ensure continuity in servicing a particular account C. provide better service to a key account D. create a long-term relationship with its clients E. do all of the above

53. A(n) _____ is an agency that specializes in and provides only creative services. A. creative boutique B. full-service agency C. in-house advertising agency D. decentralized organizational system E. media boutique

54. Creative boutiques are agencies that: A. limit their client service to creative planning and execution B. have resulted from advertisers wanting to save money in buying media space C. can perform the same functions as full-service agencies for their clients, but charge more D. are used only when advertising is not important to the marketing success of the company that hired them E. are accurately described by all of the above

55. Independent companies that specialize in the purchase of radio and television time are known as: A. creative boutiques B. mid-sized agencies C. full-service agencies D. media buying services E. media boutiques

56. Clients and creative boutiques that have developed their own media strategies may employ _____ to execute them A. media specialist companies B. full-service agencies C. in-house agencies D. media departments E. product managers

57. Which of the following statements about creative boutiques is true? A. Creative boutiques are more successful today than ever before. B. The demand for IMC services has had little influence on how creative boutiques do business. C. Creative boutiques use an aggregated business model instead of niche marketing. D. Creative boutiques today are having trouble attracting clients because many are unable to differentiate themselves from each other. E. Consolidation has led to the demise of creative boutiques.

58. The traditional method of compensating ad agencies is with: A. the commission system B. hourly billings C. the fee system D. the straight salary method E. the objective-and-task compensation system

59. Agency compensation under the commission system is based on: A. total number of hours worked B. a percentage of a client's marketing budget C. a specified percentage of any advertising time or space the agency purchases for its client D. a percentage of advertising production costs E. the client's position in the distribution channel

60. An advertising agency works with its clients under a traditional commission system compensation arrangement. The agency places a 30-second spot for one of its clients on an episode of Friends, which costs $500,000. A reasonable estimate of the agency's commission on this space buy is: A. $15,000 B. $30,000 C. $45,000 D. $75,000 E. $80,000

61. Opponents of the agency commission system would argue this system is not effective because: A. a commission keeps the emphasis on creative skills not the bottom-line B. a commission is simple to administer C. the agency time spent on an account may not be proportional to the compensation received for it D. a commission encourages agencies to limit their client's advertising expenditures E. a commission does not tie agency compensation to media costs

62. Which of the following statements about changes in the way advertising agencies are being compensated is true? A. Most clients do not pay full commissions to their agencies because they prefer to use some type of fee or incentive-based system. B. With the move toward integrated marketing services, it is likely that there will be a return to the commission system of compensation. C. From the viewpoints of both the client and the agency, the traditional commission system is much superior to negotiated commissions. D. ...