ARE 136 Ch. 2

A disadvantage of using media specialists is that they buy media in small quantities. a. True b. False

False

A typical markup charge for outside services is five to ten percent. a. True b. False

False

Advertisers include business organizations, but exclude not-for-profit organizations. a. True b. False

False

At the local level, small retail shops deal only with household customers. a. True b. False

False

Firms that maintain and manage large databases of mailing lists are known as digital/interactive agencies. a. True b. False

False

From Facebook to Twitter to Snapchat, consumers are seeking out information environments where they control their exposure to information rather than an advertiser or media company being back in control. a. True b. False

False

It is mandatory for designers and graphic specialists to be involved in strategy planning. a. True b. False

False

Media conglomeration broadly concerns how there used to be a few main players in the media business but now many more channels and other forms of media are emerging. a. True b. False

False

No matter what changes, the brand and its differentiation still need to be highlighted with persuasive communications. a. True b. False

False

The advertising used by social organizations has a fundamentally different purpose compared to the advertising carried out by major multinational corporations. a. True b. False

False

The four most prevalent agency compensation methods are commission, consultant, external facilitator, and production facilitator plans. a. True b. False

False

The idea behind crowdsourcing, which happens to be very synergistic with social media, is to prevent ideas about a new brand from becoming public to consumers. a. True b. False

False

The task of strategic coordination of media and promotional efforts has become simpler because of the proliferation of media options and extensive use of promotional tools beyond advertising. a. True b. False

False

Trade resellers of consumer products and services are the most prominent users of advertising and promotion. a. True b. False

False

Under the commission system, the rate of commission is raised to 25 percent for outdoor media. a. True b. False

False

30. Radio and satellite are examples of broadcast media. a. True b. False

True

A creative boutique's greatest advantage is its niche expertise. a. True b. False

True

A creative boutique's niche expertise can be its greatest liability if the creative boutique is an extra expense that advertisers cannot afford. a. True b. False

True

A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on an hourly rate for different services provided. a. True b. False

True

Advertisers do not like to handle their own public relations tasks because it requires highly specialized skills and talent not normally found within the company ranks. a. True b. False

True

Blogs have emerged as sophisticated sources of brand and product information and can synergize with social media. a. True b. False

True

Database consultants are particularly useful in planning coupon or direct mail campaigns. a. True b. False

True

Digital/interactive agencies are those that have expertise in preparing communications for new media, such as the Internet, mobile marketing, and interactive television. a. True b. False

True

Due to the backlash against advertising that clutter can cause, advertisers are integrating more tools within the overall promotional effort to reach more consumers in different ways, such as through mobile or social media or digital content. a. True b. False

True

It is common for social organizations to advertise at the national, state, and local levels. a. True b. False

True

Proctor & Gamble, a major company, can reach 70-80 million Facebook users through careful targeting. a. True b. False

True

Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users. a. True b. False

True

Social media is an example of the explosion of new media in recent years. a. True b. False

True

The goal of creating persuasive communication is to attract attention and develop preference for a brand. This can be done well with integrated brand promotion via both digital and traditional marketing communications tools. a. True b. False

True

The old-style power struggles in the advertising industry were mild compared to the 21st-century power struggle going on in the industry now; consumers are tired of ads on every screen, so industry needs to adapt successfully to the new technologies that consumers are willing or even eager to use. a. True b. False

True

CloudNine, an advertisement agency, charged Sparkles Inc. $50,000 at the rate of $5,000 an hour for the ten hours it spent designing an advertisement for the firm's new product launch ad. Which of the following systems of compensation did CloudNine utilize? a. A fee system b. A commission system c. A markup charge system d. A pay-for-results system

a. A fee system

A regional fast food chain called Platters is interested in opening a restaurant in a new market. The company plans to hire the services of a firm to collect the data needed to expand into the new market. In such a scenario, which of the following firm's services would it hire? a. A marketing research firm to conduct surveys to understand the potential market b. An advertising agency to create innovative ads c. A consultant to create message strategies and message themes d. Media organizations for placing ads in broadcast and print media to create awareness for the restaurant

a. A marketing research firm to conduct surveys to understand the potential market

Which of the following services of an advertising agency involves expressing the benefits of a company's brand in interesting and memorable ways? a. Creative services b. Billing services c. Administrative services d. Media buying services

a. Creative services

______ are experts in finding locations, securing dates, and putting together a team of people to pull off a promotional activity. a. Event-planning agencies b. Creative boutiques c. Fulfillment centers d. Direct marketing agencies

a. Event-planning agencies

Which of the following best describes a media conglomerate? a. It is a firm that operates multiple media combinations. b. It is a firm that is a specialist in one particular form of media. c. It is a firm that specializes solely in buying media time and space. d. It is a firm that uses print media instead of broadcast media

a. It is a firm that operates multiple media combinations.

_______ provide the physical facilities, including sets, stage equipment, and crews needed for broadcasting. a. Production houses b. Creative boutiques c. Fulfillment centers d. Interactive agencies

a. Production houses

Which of the following best describes digital agencies? a. They focus on ways to use digital solutions for direct marketing and target market communications and social media b. They implement direct response campaigns using all forms of media. c. They design direct marketing campaigns that mainly use emails and telemarketing. d. They specialize in buying media time and space and offer media strategies to advertisement agencies.

a. They focus on ways to use digital solutions for direct marketing and target market communications and social media

The _______ services department of an advertising agency typically includes the company's art directors, illustrators, and copywriters. a. creative b. media buying c. marketing d. administrative

a. creative

With media clutter and fragmentation: a. integrated brand is all the more important. b. the probability of any one advertisement making a real difference has increased manifold. c. there are very few media choices available to advertisers. d. promotion options are no longer attractive to advertisers.

a. integrated brand is all the more important.

A compensation system that adds a percentage amount to a variety of services the agency purchases from outside suppliers is known as a ______. a. markup charge b. fee system c. pay-for-results compensation d. commission system

a. markup charge

A compensation system that is based on the achievement of specific objectives of the client is known as a _______ . a. pay-for-results compensation b. a markup charge c. commission system d. fee-based system

a. pay-for-results compensation

66. Which of the following is an example of outdoor support media? a. Podcasts b. Billboards c. Catalogs d. Public relations

b. Billboards

Which of the following is true of crowdsourcing? a. It refers to managing the supply chain system in a way that will most effectively reach the target markets. b. It aims at getting consumers more involved with and committed to a brand. c. It indicates the process of describing the firm's objectives for the brand in the near term and long term. d. It refers to passive, intrusive advertising.

b. It aims at getting consumers more involved with and committed to a brand.

_______ are specialists that design and then operate contests, sweepstakes, special displays, or coupon campaigns for advertisers. a. Creative boutiques b. Sales promotion agencies c. Database agencies d. Fulfillment centers

b. Sales promotion agencies

are experts in designing incentive programs, point-of-purchase materials, and in-store merchandising. a. Database agencies b. Sales promotion agencies c. Fulfillment centers d. Event-planning agencies

b. Sales promotion agencies

_______ has emerged as the most significant form of consumer control over information creation and communication. a. Web advertising b. Social media c. Interactive television d. Direct marketing

b. Social media

Websites frequented by individuals with common interests where they can post facts, opinions, and personal experiences are known as _______. a. paywalls b. blogs c. infomercials d. creative boutiques

b. blogs

Grand Resorts has acquired the services of Elegant Inc. to develop advertisements for their organization. Elegant Inc. has advised them to add a panoramic view to billboard ads and to portray tourists lounging by the sea. Elegant Inc. is an example of a(n) ________. a. media specialist b. creative boutique c. digital/interactive agency d. in-house agency

b. creative boutique

Design Solutions has two television network channels and its monthly magazine, Bling, is the most popular fashion magazine in the country. It also has a number of websites for its television channels and online sports news. Design Solutions is an example of a ________. a. creative boutique b. media conglomerate c. media specialist d. digital/interactive agency

b. media conglomerate

Carmel Inc. has come up with the idea of creating a television ad for its new range of assorted cookies. The marketing executives approached RT Designs who will be filming the ad, preparing a set to record the ad, and employing an actress to play the role of a little girl enjoying her cookies. RT Designs is an example of a ________. a. creative boutique b. production house c. fulfillment center d. media specialist

b. production house

_______ entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan. a. Administrative services b. Creative services c. Account services d. Media planning and buying services

c. Account services

38. In which of the following areas is the federal government's spending on advertising and promotion concentrated? a. The internal revenue service b. Political campaigns c. Armed forces recruitment d. Trade and commerce

c. Armed forces recruitment

______ is a high-speed technology that allows consumers to customize their programming and target very specific audiences. a. Transit b. Crowdsourcing c. Broadband d. Cable

c. Broadband

______ is used by organizations to get consumers committed to brands in a way that passive advertising cannot. a. Co-op advertising b. Phishing c. Crowdsourcing d. Broadcasting

c. Crowdsourcing

___________ help firms in creating the visual impression of its advertising material. a. Sales promotion agencies b. Fulfillment centers c. Designers d. Bloggers

c. Designers

A(n) _______ coordinates the research effort of an advertisement agency. a. graphic designer b. media specialist c. account planner d. fulfillment center

c. account planner

The graphic mark that identifies a company is known as a(n) . a. patent b. blog c. logo d. slogan

c. logo

Which of the following acts as a support to direct marketing agencies and follow-up on the delivery of their direct mail? a. Creative boutiques b. In-house agencies c. Media specialists d. Fulfillment centers

d. Fulfillment centers

Which of the following services occur within an ad agency? a. Administrative services b. Creative services c. Account services d. Production services

d. Production services

Advertisers are also known as ______ by their advertising and promotion agency partners. a. consultants b. facilitators c. sponsors d. clients

d. clients

Harper & Kane advertising agency sets an hourly rate for the services it provides to its clients. This rate is based on the average salary of all the members in the creative department. Harper & Kane uses the __________ system. a. commission b. cost-plus c. markup charge d. fee

d. fee

A(n) ______ is often known as the advertising department in a firm. a. creative boutique b. full-service agency c. interactive agency d. in-house agency

d. in-house agency

Advertisers and their agencies rely primarily on external facilitators for: a. consumer research. b. media buying. c. assessing the effectiveness of promotional programs. d. production processes.

d. production processes.

67. Which of the following is an example of interactive media? a. Banners b. Electronic directories c. Catalogs d. social media

d. social media

A ______ is a general description for all organizations in the marketing channel of distribution that buy products to make them available to customers. a. sponsor b. media buyer c. media specialist d. trade reseller

d. trade reseller

PinBall Inc. sought the help of Blazer Corp. to help them reach a niche group of vendors that they have been trying to do business with. Blazer offers the solution of publishing an advertisement in a trade journal which would help create awareness about the firm's product. In this scenario, Blazer Corp. specializes in ___________. a. the management of databases b. creative services c. consumer sales promotions d. trade-market sales promotions

d. trade-market sales promotions

Barlow and Baley Inc., an advertisement agency, handles the clients' needs from account planning to creative to media to production in both digital and traditional areas. Barlow and Baley Inc. is an example of a(n) _______. a. full-service agency b. in-house agency c. interactive agency d. database consultant

full-service agency