Chapter 2

____ 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

_____ help firms in creating the visual impression of its advertising material. a. sales promotion agencies b. fulfillment centers c. designers d. bloggers

c

_____ 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

____ has become a media conglomerate on the Web and amasses its own media empire of diverse internet sites a. ABC broadcasting network b. Facebook c. dell d. InterActiveCorp

d

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

a

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

Which of the following modes of advertisement do wholesalers and retailers prefer to utilize? a. personal selling b. branded entertainment c. radio advertisements d. infomercials

a

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

Advertisers cannot function without the services of external facilitators a. true b. false

b

Advertisers focusing on integrating more tools into promotional efforts has resulted in an enhanced role of traditional media a. true b. false

b

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

b

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

b

In which of the following areas is the federal government's spending on advertising and promotion concentrated? a. the internal revenue services b. political campaigns c. armed forces recruitment d. trade and commerce

c

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

d

Which of the following acts as a support to direct marketing agencies and follow-up on delivery of their direct mail? a. creative boutiques b. in-house agencies c. media specialists d. fulfillment centers

d

Which of the following is an example of interactive media? a. banners b. electronic devices c. catalogs d. cd-roms

d

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? a. administrative services b. creative services c. account services d. production services

d

Media Fragmentation is a big plus for consumers but a disadvantage for advertisers and agencies a. true b. false

A

The creative boutique's greatest advantage is its niche expertise a. true b. false

A

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

a

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

a

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

a

A regional fast food chain called Platters is interested in opening a restaurant in a new market. The company plans to hire the service 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. 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

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

a

Barlow and Baley Inc., an advertisement agency, has been approached by 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. fullservice agency b. in-house agency c. interactive agency d. database consultant

a

Blogs have emerged as sophisticated sources of brand and product information a. true b. false

a

CloudNine, an advertisement agency, charged Sparkles Inc. $50,000 at the rate of $5,000 an hour for the 10 hours it spent designing and advertisement for the firm's new product launch ad. Which of the following systems of compensation did CloudNine utilize? a. fee system b. commission system c. Markup charge d. Pay-for-results

a

Database consultants are particularly useful in planning coupon or direct mailing campaigns a. true b. false

a

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

a

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 b. false

a

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

a

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 scenarios, compensation packages for Kowalski and Associates are likely to be based on : a. brand recognition b. workforce strength c. competitive advantage d. economies of scale

a

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? a. consulting firm b. a creative boutique c. a digital/interactive agency d. a production facilitating firm

a

Radio and Satellite are examples of broadcast media a. true b. false

a

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

a

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

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

a

The simplest example of Web 2.0 is when consumers log onto the internet and visit sites they choose to visit for either information or shopping a. true b. false

a

Under the commission system, ______ % 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 b. 2 c. 30 d. 20

a

Which of the following best describes digital agencies? a. they focus on ways to used Web-based solutions for direct marketing and target market communications 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

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

____ 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

______ are all experts in finding locations, securing dates, and putting together a team of people to pull of a promotional activity a. event planning agencies b. creative boutiques c. fulfillment centers d. direct marketing agencies

a

Advertisers include business organizations, but exclude non-for-profit organizations a.true b.false

b

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) ________ a. media specialist b. creative boutique c. digital/interactive agency d.in-house agency

b

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 a. true b.false

b

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. creative boutique b. production house c. fulfillment center d. media specialist

b

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

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

b

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

b

The _____ services group in a full-service agency is part of the personnel department, accounting and billing department a. creative b.administrative c. marketing d.production

b

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

b

The disadvantage of using media specialists is that they buy media in small quantities a. true b.false

b

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

b

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

b

The most visible reseller advertisers and promoters are: a. retailers who deal solely with household consumers b. retailers that sell in national or global markets c. those who sell at a local level d. those who cater to regional markets

b

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

b

The underlying role and purpose of advertising and promotion has changed drastically and will continue to change a. true b. false

b

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

b

Typical markup charge for outside services is 5-10% a. true b.false

b

Under the commission system, the rate of commission is raised to 25% for outdoor media a. true b. false

b

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

b

Which of the following is an example of outdoor support media? a. podcasts b. billboards c. catalogs d. electronic directories

b

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

______ 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

______ 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

A ____ helps firms identify and manage information that allow for the development of integrated marketing communications programs a. media organizations b. sales agency c. database consultant d. trade reseller

c

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

c

Individuals collectively creating and sharing content through blogs, social media, wikis, and video sites is referred to as_______ a. commission system b. broadcasting. c. web 2.0 d. interactive production

c

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

c

Which of the following is an example of premiums, a type of support media? a. transit b. cable c. calendars d. billboards

c

_____ 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

_______ 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

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 resellers

d

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 process

d

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

d

Harper and 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 members in the creative department. Harper & Kane uses the ___ system a. commission b. cost-plus c. markup charge d. fee

d

McMann and Young advertisers have 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 ______ system of compensation.

d

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 promotions

d

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? a. $150,000 b. $125,000 c. $100,000 d. $75,000

d

Which of the following advertisement tools would be best suited for regional application? a. podcast b. internet advertisements c. television advertisements d. coupons and samples

d

Which of the following is an example of a fixed fee system of compensation? a. 15% of the total amount billed by XL inc. was retained by Tesco advertisers as compensation for all costs in creating the advertisements b. Largo advertisers was paid $50,000 by their client based on the effect their ads had on the sale of the companies products c. Purple Corp. paid RL Designs $150,000 based on the positive responses it received for their promotions from their customers d. HK advertisers and their client agreed on which supplies, materials, travel costs, and other expenses will be reimbursed

d

____ is one of the worlds largest media conglomerates and provides broadcasting, film, music, cable, publishing and a dominant Internet Presence a. News Corp B. Fox broadcasting c. Sony Corporation d. Time Warner

d