Advertising & Promotions Chapter 2

26 Questions | By Krista_500 | Last updated: Mar 21, 2022 | Total Attempts: 164

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1.

The advertising manager controls the entire promotion operation, including budgeting, coordinating the creation and production of ads, planning media schedules, and monitoring and administering the sales promotions programs for all the company's products or servies. Performs along with staff: planning and budgeting, administration and execution, coordination with other departments, and coodination with outside agencies and services.
- A.
  
  Centralized system
- B.
  
  Decentralized system
- C.
  
  Interactive agencies
- D.
  
  Advertising agencies
- E.
  
  In-house agency option
2.

A company that separates manufacturing, research and development, sales, and marketing departments for various divisions, product lines, or businesses. Assigns each product or brand to a brand manager who is responsible for the management of the brand, including planning, budgeting, sales, and profit performance.
- A.
  
  Advertising agencies
- B.
  
  Creative boutiques
- C.
  
  Media buying services
- D.
  
  Decentralized system
- E.
  
  Centralized system
3.

The advertising department is responsible for developing advertising and promotions plans that will be approved by management and recommending a promotions program based on the overall marketing plan, objectives, and budget.
- A.
  
  Planning and budgeting
- B.
  
  Coordination with other departments
- C.
  
  Administration and execution
- D.
  
  Coordination with outside agencies and services
- E.
  
  Creative boutiques
4.

The manger must organize the advertising department and supervise and control its activities. The manager also organizes running the plan by subordinates and/or the advertising agency. This requires working with such departments as production, media, art, copy, and sales promotion.
- A.
  
  Coordination with outside agencies and services
- B.
  
  Decentralized system
- C.
  
  Planning and budgeting
- D.
  
  Administraion and execution
- E.
  
  Coordination with their departments
5.

The manager must run the advertising section's activities with those of other areas, particularly those involving other marketing functions.
- A.
  
  Advertising agency industry
- B.
  
  Coordination with other departments
- C.
  
  Coordination with outside agencies and services
- D.
  
  Planning and budgeting
- E.
  
  Administration and execution
6.

Many companies have an adivertising department but still use many outside services. For example, companies may develop their advetising program in-house while employing media buying services to place their ads and/or use collateral services agencies to develop brochures, point-of-purchase materials, and so on. A centralized organizational system is often used when companies do not have many diferent divisions, product or service lines, or brands to advertise.
- A.
  
  Coordination with outside agencies and services
- B.
  
  Advertising agencies
- C.
  
  Administration and execution
- D.
  
  Coordination with other departments
- E.
  
  Planning and budgeting
7.

Responsible for all promotions and activities including marketing, research, product planning, but not sales.
- A.
  
  Media buying services
- B.
  
  Advertising managers
- C.
  
  In-house agency
- D.
  
  Advertising agencies
- E.
  
  Sales promotion agencies
8.

An advertising agency that is set up, owned, and operated by the advertiser. A major reason for them is to reduce advertising and promotion costs. Companies maintain tigher control. Opponents say that they do not have as highly skilled specialists and attract the best creative talent that using an external firm gives a company a more varied perspective on its advertising problems and greater.
- A.
  
  Interactive agencies
- B.
  
  Creative boutiques
- C.
  
  Advertising agency industry
- D.
  
  In-house agency
- E.
  
  Media buying services
9.

Highly skilled individuals who are specialists in their chosen fields. The use of this type of company is unique for each advertiser. An outside agency can provide an objective viewpoint. Can draw on the broad range of experience it has gained.
- A.
  
  Advertising managers
- B.
  
  Media buying services
- C.
  
  In-house agencies
- D.
  
  Advertising agencies
- E.
  
  Advertising agency industry
10.

A combination of domestic fimsand international and organizations. The strong presence of these types of companies reflects a global trend. Underwent major large as large agencies, called superagencies, merged with or acquired other agencies and support organiztions during the past twenty years.
- A.
  
  Direct-response agency
- B.
  
  Sales promotion agency
- C.
  
  Full-service agency
- D.
  
  Advertising agency industry
- E.
  
  Interactive agencies
11.

Offers its clients a full range of marketing, communications, and promotions services including planning, creating, and producing the advertising, performing research, and selecting media. May also offer nonadvertising services such as strategic market planning; sales promotions, direct marketing, and interactive capabilities, package design, and public relations and publicity. Main characteristics are account services, marketing services, creative services, management and finance, and structure.
- A.
  
  Creative boutiques
- B.
  
  Advertising agency industry
- C.
  
  Media buying services
- D.
  
  In-house agency
- E.
  
  Full-service advertising agency
12.

An agency that provides only creative services. Full-service agencies often subcontract work to these types of agencies when they are very busy or want to avoid adding full-time employees to their payrolls.
- A.
  
  Interactive agencies
- B.
  
  Advertising arrangements
- C.
  
  Commission system
- D.
  
  Media buying services
- E.
  
  Creative boutiques
13.

Companies that specialize in the purchasing things like radio and television time. Has found a nice niche by specializing in the analysis and purchase of advertising time and space.
- A.
  
  Commission system
- B.
  
  Public relations firm
- C.
  
  Interactive media
- D.
  
  Media buying services
- E.
  
  Sales promotion agencies
14.

The traditional method of compensating agencies, where the agency receives a specified percentage from the media on any advertising time or space it purchases for its clients.
- A.
  
  Integrated IMC services
- B.
  
  Cost-plus agreement
- C.
  
  Commission systems
- D.
  
  Interactive media
- E.
  
  Centralized system
15.

There are two basic types of these systems. In the straight or fixed-fee method, the agency charges a basic monthly fee for all of the services on the specific cost to be done and the amount the agency will be paid for it. The second type is a fee-commission combination, in which the media commissions received by the agency are credited against the cost. If the commissions are are less than the agreed-on cost, the client must make up the difference.
- A.
  
  Commission systems
- B.
  
  Incentive-based systems
- C.
  
  Fee arrangement
- D.
  
  Fiancial audit
- E.
  
  Cost-plus agreement
16.

The client agrees to pay the agency a fee based on the expense of its work plus some agreed-on profit margin, often a percentage of total expenses. Requires that the agency keep detailed records of the expenses it incurs in working on the client's account.
- A.
  
  Cost-plus system
- B.
  
  Reasons for agencies losing clients
- C.
  
  Qualitative audit
- D.
  
  Incentive-based systems
- E.
  
  Fee arrangement
17.

Through this system, clients expect accountability from their agencies and link agency compensation to performance. The basic idea is that the agency's ultimate compensation level will depend on how well it meets predetermined performance goals. The goals often include objective measures such as sales or market share.
- A.
  
  Public relations firms
- B.
  
  Cost-plus agreement
- C.
  
  Fee arrangement
- D.
  
  Incentive-based systems
- E.
  
  Integrated IMC services
18.

Focuses on how the agency conducts its business. Designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers.
- A.
  
  Incentive-based systems
- B.
  
  Financial audit
- C.
  
  Qualitative audit
- D.
  
  Incentive-based system
- E.
  
  Reasons for agencies losing clients
19.

Focuses on the agency's efforts in planning, developing, and implementing the client's advertising programs and considers the results achieved.
- A.
  
  Integrated IMC services
- B.
  
  Reasons for losing clients
- C.
  
  Cost-plus agreement
- D.
  
  Financial audit
- E.
  
  Qualitative audit
20.

The client becomes dissatisfied with poor performance or service, poor communication, there are unrealistic demands by the client, personality conflicts, personnel changes, changes in the size of the client or agency, conflicts of interest, changes in the client's corportate and/or marketing strategy, declining sales, conflicting compensation philosophies, and changes in policies.
- A.
  
  Commission systems
- B.
  
  Qualitative audit
- C.
  
  Intergrated IMC services
- D.
  
  Direct-response agencies
- E.
  
  Reasons for agencies losing clients
21.

Most companies use this type of agency to develop and administer complex programs such as contests, sweepstakes, refunds and rebates, premium and incentive offers, and sampling programs.
- A.
  
  Sales promotion agency
- B.
  
  Media buying services
- C.
  
  Public relations firms
- D.
  
  Direct-response agencies
- E.
  
  Interactive agencies
22.

Many large companies use both an advertising agency and these types of companies. This type of agency develops and implements programs to manage the organization's publicity, image, and affairs with consumers and other relevant publics, including employees, suppliers, shareholders, government, labour groups, citizen action groups, and the general public.
- A.
  
  Interactive agencies
- B.
  
  Public relations firms
- C.
  
  Sales promotion agencies
- D.
  
  Creative boutiques
- E.
  
  Direct-response agencies
23.

Specializes in the development and strategic use of various marketing tools such as websites for the Internet, banner ads, CD-ROMS, text messages, search engines, and kiosks. Requires expertise in technology as well as areas such as creative website design, database marketing, digital media, and customer relationship management.
- A.
  
  Media buying services
- B.
  
  Interactive agencies
- C.
  
  Direct-response agencies
- D.
  
  Integrated IMC services
- E.
  
  Public relations firms
24.

Provides a variety of services, including database, management, direct mail, research, media services, and creative and production capabilties. Expanding their services to include such areas as infomercial production and database management.
- A.
  
  Agency-client responsibility
- B.
  
  Media buying services
- C.
  
  Direct-response agencies
- D.
  
  Interactive agencies
- E.
  
  Integrated IMC services
25.

Companies must decide whether to use specialized organizations for reach marketing communications function or consolidate them with a large agency that offers all of thse services. Opponents say the providers become involved in political wrangling over budgets, do not communicate with each other as well and as often as they should, do not achieve synergy, and advertising agencies are niether sufficiently staffed to ensure success.
- A.
  
  Agency-client responsibility
- B.
  
  Integrated IMC services
- C.
  
  Reasons for agencies losing clients
- D.
  
  Commission systems
- E.
  
  Advertising agency industry