ARE 136 CH 2, ARE 136 CH 3, ARE 136 CH 4, ARE 136 CH 5, ARE 136 CH 6, ARE 136 CH 7, ARE 136 CH 1

85. (Scenario 21) In order to reinvent the company's image, Dell puts together a team comprising members from its marketing department who will be responsible for every aspect of the advertising campaign. The company decides that involving employees in the campaign will allow it to maximize the profits generated from the new campaign. This team will be an example of a(n):

d. in-house agency.

96. (Scenario 2-4) Caltech Corp. has a 15 minutes long advertisement that explains to the public about its product. This is an example of a(n) .

d. infomercial

70. McMann and Young advertisers has been hired by Broadway Bicycles to assist with promotions for a chain of bicycle stores in Vermont. The agency has agreed that a certain level of awareness and interest in Broadway Bicycles will be generated in order to gain the sales targets the company desires, and they have agreed to be paid accordingly. This is an example of a system of compensation.

d. pay-for-results

74. Advertisers and their agencies rely primarily on external facilitators for:

d. production processes.

41. A is a general description for all organizations in the marketing channel of distribution that buy products to make them available to customers.

d. trade reseller

51. 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 .

d. trade-market sales promotions

6. 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.

a. True

9. The goal of creating persuasive communication is to attract attention and develop preference for a brand.

a. True

87. (Scenario 2-1) Dell plans to strengthen its relationships with the media, industry associations, and its various competitors. In such a scenario, Dell would be hiring to help strengthen their relationships.

a. a public relations firm

37. With media clutter and fragmentation,: a. advertisers are developing a lack of faith in advertising alone.

a. advertisers are developing a lack of faith in advertising alone.

69. Kowalski and Associates has been a successful mid-sized, full-service advertising agency for more than two decades. In an attempt to serve its clients more efficiently in a competitive marketplace, the agency has changed its compensation package to include payments based on results. In such a scenario, compensation packages for Kowalski and Associates are likely to be based on:

a. brand recognition.

59. The services department of an advertising agency typically includes the company's art directors, illustrators and copywriters.

a. creative

95. (Scenario 2-3) A(n) using traditional media. a. database consultant can help Axel Corp. in designing and executing direct response

a. database consultant

45. Barlow and Baley Inc., an advertisement agency, has been approached by Crescent Corp. to help promote their new line of air conditioners. Barlow and Baley Inc. have advised Crescent Corp. that newspaper and television ads will be the best promotional tool for the product. They have also created a demo ad for the product. Barlow and Baley Inc. is an example of a(n) .

a. full-service agency

64. 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

68. A compensation system that is based on the achievement of specific objectives of the client is known as a

a. pay-for-results compensation

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

b. False

17. Caltec Inc. has a department that is responsible for coming up with ideas and innovative ways to advertise the company's products in newspaper ads and billboards. This is an example of a full-service agency.

b. False

2. The underlying role and purpose of advertising and promotion has changed drastically and will continue to change.

b. False

21. 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.

b. False

22. A disadvantage of using media specialists is that they buy media in small quantities.

b. False

23. Firms that maintain and manage large databases of mailing lists are known as digital/interactive agencies.

b. False

24. It is mandatory for designers and graphic specialists to be involved in strategy planning

b. False

26. The four most prevalent agency compensation methods are commission, consultant, external facilitator, and production facilitator plans

b. False

27. Under the commission system, the rate of commission is raised to 25 percent for outdoor media.

b. False

28. A typical markup charge for outside services is five to ten percent.

b. False

3. Despite the explosion of new media in recent years, today's media options have reduced from those available during the past decades.

b. False

7. Advertisers focusing on integrating more tools into promotional efforts has resulted in an enhanced role of traditional media.

b. False

8. The idea behind crowdsourcing is to prevent ideas about a new brand from becoming public to consumers.

b. False

9. Advertising changed commerce, but not society

b. False

35. Which of the following is true of crowdsourcing?

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

50. are specialists that design and then operate contests, sweepstakes, special displays, or coupon campaigns for advertisers.

b. Sales promotion agencies

52. are experts in designing incentive programs, point-of-purchase materials, and in-store merchandising.

b. Sales promotion agencies

33. has emerged as the most significant form of consumer control over information creation and communication.

b. Social media

61. The services group in a full-service advertising agency is a part of the personnel department, accounting and billing department.

b. administrative

34. Websites frequented by individuals with common interests where they can post facts, opinions, and personal experiences are known as

b. blogs

46. Bedwick 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 portray tourists lounging by the sea. Elegant Inc. is an example of a(n)

b. creative boutique

80. 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

b. media conglomerate

75. 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

b. production house

42. The most visible reseller advertisers and promoters are:

b. retailers that sell in national or global markets.

94. (Scenario 2-3) Axel Corp. plans to to reach out to local fashion stores and wholesale distributors. Axel Corp. can achieve this by employing an advertising agency specialized in .

b. trade-market sales promotions

66. 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.

d. fee

48. A(n) is often known as the advertising department in a firm.

d. in-house agency

76. provide the physical facilities, including sets, stage equipment, and crews needed for broadcasting

a. Production houses

82. Which of the following is an example of interactive media?

d. CD-ROMs

29. 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

30. Database consultants are particularly useful in planning coupon or direct mail campaigns.

a. True

31. Radio and satellite are examples of broadcast media.

a. True

4. The simplest example of Web 2.0 is when consumers log on to the Internet and visit sites they choose to visit for either information or shopping.

a. True

63. Under the commission system, percent of the total amount billed by a media organization is retained by the advertising agency as compensation for all costs in creating ads for the advertiser.

a. 15

72. Ocean Waves Resorts wants to purchase land and construct a resort on the shorefront in San Clemente. Ocean Waves would also like to construct a golf course and needs help in understanding local regulations and zoning restrictions in the country. Which of the following companies should Ocean Waves hire to assist with the project?

a. A consulting firm

65. 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

71. 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

58. 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

53. are experts in finding locations, securing dates, and putting together a team of people to pull off a promotional activity.

a. Event-planning agencies

79. Which of the following best describes a media conglomerate?

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

43. Which of the following modes of advertisement do wholesalers and retailers prefer to utilize?

a. Personal selling

47. Which of the following best describes digital agencies?

a. They focus on ways to use Web-based solutions for direct marketing and target market communications.

1. Media fragmentation is a big plus for consumers but a disadvantage for advertisers and agencies

a. True

13. Retailers that sell in national or global markets are the most visible reseller advertisers and promotion users.

a. True

15. It is common for social organizations to advertise at the national, state, and local levels.

a. True

18. The creative boutique's greatest advantage is its niche expertise.

a. True

19. 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

20. 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

25. 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

5. Blogs have emerged as sophisticated sources of brand and product information.

a. True

11. Advertisers include business organizations, but exclude not-for-profit organizations.

b. False

12. Trade resellers of consumer products and services are the most prominent users of advertising and promotion.

b. False

14. At the local level, small retail shops deal only with household customers.

b. False

99. (Scenario 25) Groupon's management has budgeted $20,000 for social media advertising this year. How much can their advertising agency expect to earn if they are using a traditional commission system?

b. $3,000

92. (Scenario 2-3) Which of the following agencies would help improve the ideas that Axel Corp. has for its advertisement?

b. A creative boutique

81. Which of the following is an example of outdoor support media?

b. Billboards

90. (Scenario 2-2) Brush Strokes is looking for a way to increase sales. The advertising agency helps create an innovative message that will be conveyed through promotions and mobile marketing. Which of the following agency services is the company using?

b. Creative services

10. Advertisers cannot function without the services of external facilitators.

b. False

60. Which of the following services in an advertisement firm involves taking creative ideas and turning them into advertisements, direct mail pieces, and other IBP materials?

d. Production services

78. is one of the world's largest media conglomerates and provides broadcasting, film, music, cable, print, publishing, and a dominant Internet presence.

d. Time Warner

98. (Scenario 25) As Groupon's services differ depending on the city in which it is offered, its CEO decides that each variation needs to have a catchy slogan that relates to that particular market. Which of the following types of advertising agencies would likely be the best choice to create these slogans?

c. A creative boutique

56. entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan.

c. Account services

89. (Scenario 2-2) The owners of Brush Strokes have called a meeting with their agency to determine ways in which it can benefit most from advertising. The agency has agreed to help in identifying the benefits of the brand, its target audience, the best competitive positioning, and developing a complete plan. In such a scenario, which of the following services is the agency offering?

c. Account services

44. In which of the following areas is the federal government's spending on advertising and promotion concentrated?

c. Armed forces recruitment

77. is a high-speed technology that allows consumers to customize their programming and target very specific audiences.

c. Broadband

83. Which of the following is an example of premiums, a type of support media?

c. Calendars

38. is used by organizations to get consumers committed to brands in a way that passive advertising cannot.

c. Crowdsourcing

54. help firms in creating the visual impression of its advertising material.

c. Designers

88. (Scenario 22) Which one of the following would Brush Strokes's fullservice agency be least qualified to handle?

c. Forecasting dividend earnings of stockholders

32. Individuals collectively creating and sharing content through blogs, social media, wikis, and video sites is referred to as _____.

c. Web 2.0

57. A(n) coordinates the research effort of an advertisement agency.

c. account planner

73. A helps firms identify and manage information that allow for the development of integrated marketing communications programs.

c. database consultant

84. (Scenario 2-1) Dell decides not to use a full-service advertising agency because it would like its own employees to take responsibility for the new ad campaign. However, fullservice agencies do provide a number of advantages— one of these advantages is that they:

c. have an array of talented professionals to meet all the needs of a client.

55. The graphic mark that identifies a company is known as a(n) .

c. logo

97. (Scenario 2-4) Sparkles Inc. is an example of a

c. media conglomerate

91. (Scenario 2-2) The owners of Brush Strokes are concerned that their agency may be recommending television advertising because it would be profitable for the agency. Brush Strokes can avoid paying for ineffective advertising campaigns by changing to a system of compensation.

c. pay-for-results

86. (Scenario 2-1) To generate interest in its new line of computers, Dell hires a company to design a number of contests and incentive programs that will help build excitement for the new line. This company is an example of a(n):

c. sales promotion agency.

93. (Scenario 2-3) Which of the following is most likely to provide Axel Corp. with a reasonable amount of media time at a rate lower than that provided by an advertiser?

d. Media specialists

39. Advertisers are also known as by their advertising and promotion agency partners.

d. clients

62. Though many agencies no longer use the traditional commission system for compensation, Starr Agency does. Using the standard percentage rate, how much would Starr Agency receive for a bill of $500,000?

d. $75,000

40. Which of the following advertisement tools would be best suited for a regional application?

d. Coupons and samples

49. Which of the following acts as a support to direct marketing agencies and follow-up on the delivery of their direct mail?

d. Fulfillment centers

67. Which of the following is an example of a fixed fee system of compensation?

d. HK advertisers and their client agreed on which supplies, materials, travel costs, and other expenses will be reimbursed.

36. has become a media conglomerate on the Web and amasses its own media empire of diverse Internet sites.

d. InterActiveCorp