Question 1

Which of the following statements is true about general consumer agencies?
A)They provide advertising for products that are used in the manufacture of consumer products.
B)They concentrate on institutional advertising accounts.
C)They concentrate on consumer accounts.
D)They derive much of their income from nonadvertising functions.
E)They do not operate internationally.

Accepted Answer

A general consumer agency represents the widest variety of accounts, but it concentrates on consumer accounts-companies that make goods purchased chiefly by consumers (soaps, cereals, cars, pet foods, toiletries).

Question 2

Centralized organizations may organize the centralized advertising department in all of the following ways except:
A)by the method of payment.
B)by sub-functions of advertising.
C)by the end user.
D)by the media.
E)by the product or brand.

Accepted Answer

Companies may organize the department in any of five ways: by product or brand, by subfunction of advertising, by end user, by media, by geography.

Question 3

A national manufacturer assisting a distributor in product promotion by providing direct mail flyers is an example of _____ advertising.
A)cooperative
B)clearance
C)horizontal
D)subliminal
E)interactive

Accepted Answer

As a service to their distributors and dealers, and to ensure proper reproduction of their products, wholesalers, manufacturers, and trade associations often provide local advertisers with ready-made advertising materials and cooperative advertising programs where the costs are shared.

Question 4

An advertising agency in Mexico City represents a wide range of accounts. It depicts real Mexicans enjoying everyday life. The agency does not offer assistance to clients who want to reach international markets. From this information, you can surmise that the agency is a(n)_____ agency.
A)business-to-business
B)transnational
C)regional
D)in-house
E)creative boutique

Accepted Answer

Regional advertisers operate in one part of the country - in one or several states - and market exclusively within that region.

Question 5

Which of the following statements implies that national and local advertisers have different time orientation?
A)National advertisers think in terms of large groups of people, whereas local advertisers deal with individual customers every day.
B)National advertisers get occasional feedback, whereas local advertisers get feedback everyday.
C)National advertisers focus on gross sales, whereas local advertisers primarily focus on market share.
D)National advertisers typically focus on media with high point of contact, whereas local advertisers are more concerned with high frequency media.
E)National advertisers develop five-year strategic plans, whereas local advertisers worry about weekly ads and its performances.

Accepted Answer

National and local advertisers have different time orientations. National companies think long-term. They develop five-year strategic plans and budget for annual advertising campaigns. Local advertisers worry that this week's ad didn't pull as well as last week's.

Question 6

Which of the following is an advantage associated with the use of an independent advertising agency?
A)Saving money by cutting promotional overheads and keeping the media commission
B)Increased involvement of management in "single-business" companies
C)Increased control over all channels of distribution
D)An outside, objective viewpoint to the advertiser's business.
E)Reduced variable expenses

Accepted Answer

The advertising agency isn't owned by the advertiser, the media, or the suppliers, so it can bring an outside, objective viewpoint to the advertiser's business-a state the advertiser can never attain.

Question 7

One of the disadvantages for a company that uses a decentralized advertising department is:
A)focus on what is good for the department rather than what is good for the entire organization.
B)the absence of flexibility.
C)the inability to respond quickly to changes in the department's external environment.
D)the inability to accurately measure the impact of advertising on sales.
E)the difficulty in introducing new approaches and creative ideas.

Accepted Answer

A drawback of decentralized departments is that they often concentrate on their own budgets, problems, and promotions rather than the good of the whole company.

Question 8

The modern _____ advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion for its clients.
A)interactive
B)institutional
C)specialized service
D)full-service
E)multi-tasking

Accepted Answer

The modern full-service advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion.

Question 9

Which of the following is an advantage of using a decentralized advertising department?
A)Increased vertical communication
B)Reduced measurable response
C)Decreased rivalry among brand managers
D)Increased divisional flexibility
E)Increased uniformity of ads

Accepted Answer

For large companies with many divisions, decentralized advertising offers flexibility.

Question 10

A(n) _____ is formed by talented artists who work for advertisers and occasionally subcontract to advertising agencies. Their mission is to develop exciting creative concepts and to produce fresh, distinctive advertising messages.
A)promotional facilitation center
B)interactive agency
C)entrepreneurial agency
D)creative boutique
E)IMC agency

Accepted Answer

Some talented artists-such as graphic designers and copywriters- set up their own creative services, or creative boutiques. They work for advertisers and occasionally subcontract to ad agencies. Their mission is to develop exciting creative concepts and produce fresh, distinctive advertising messages.

Question 11

In a _____, a company sets up separate ad departments for different divisions, subsidiaries, regions, brands, or other categories that suit the company's needs.
A)matrix system
B)pyramid system
C)centralized system
D)decentralized system
E)hierarchical system

Accepted Answer

In a decentralized system, the company sets up separate ad departments for different divisions, subsidiaries, regions, brands, or other groups.

Question 12

Multinationals that use a standardized approach to marketing and advertising in all countries in which they do business are called:
A)foreign marketers.
B)national corporations.
C)global marketers.
D)international exporters.
E)multidomestic corporations.

Accepted Answer

Multinationals that uses a standardized approach to marketing and advertising in all countries are global marketers, and they create global brands.

Question 13

Business-to-business advertising agencies charge their clients service fees because:
A)the standard agency commission does not cover agency costs.
B)business-to-business advertising is regulated by the Federal Trade Commission.
C)a fee system has a long historical pedigree.
D)the commission rate on industrial media is only 5 percent.
E)unlike a commission system, a fee system involves no negotiations at all.

Accepted Answer

Because commissions usually don't cover the cost of the agency's services, business agencies typically charge their clients service fees.

Question 14

The American Association of Advertising Agencies (AAAA) defines a(n) _____ as an independent organization of creative people and businesspeople who specialize in developing and preparing marketing and advertising plans, advertisements, and other promotional tools.
A)creative boutique
B)promotional facilitator
C)facilitating intermediary
D)advertising agency
E)advertising supplier

Accepted Answer

The American Association of Advertising Agencies (AAAA) defines an advertising agency as an independent organization of creative people and businesspeople that specialize in developing and preparing marketing and advertising plans, advertisements, and other promotional tools.

Question 15

An advertising agency in Mexico City represents a wide-range of consumer accounts. It distinguishes itself from other agencies because it depicts real Mexicans enjoying everyday life. However, it does not advertise in trade publications. From this information, you can surmise that the agency is a _____ agency.
A)business-to-business
B)specialized
C)general consumer
D)high-tech
E)creative boutique

Accepted Answer

A general consumer agency represents the widest variety of accounts, but it concentrates on consumer accounts.

Question 16

Jill & Joel Co., owned by Jill and Joel Hudson, sells and installs above-ground swimming pools and hot tubs. The manufacturer of the hot tub a letter to Jill & Joel in which it offers to pay 60 percent of the advertising cost if the Hudson's run a newspaper ad featuring the hot tubs. Which of the following types of advertising is the hot tub manufacturer planning to undertake with the Hudsons?
A)Vertical cooperative advertising
B)Vertical clearance advertising
C)Horizontal subliminal advertising
D)Horizontal clearance advertising
E)Institutional advertising

Accepted Answer

In vertical cooperative advertising, the manufacturer provides the complete ad and shares the cost of the advertising time or space.

Question 17

A French cosmetics manufacturer uses uniform international advertising campaigns that is controlled by the company's advertising department in France. The company's concern with cost efficiency and continuity in its communications programs indicate that the company has a _____ advertising department.
A)territorial
B)decentralized
C)non-hierarchical
D)matrix
E)centralized

Accepted Answer

The centralized advertising department gives the greatest control and offers both efficiency and continuity across divisional boundaries.

Question 18

Which of the following is not true of creative boutiques?
A)Usually, the founders of a creative boutique are graphic designers and/or copywriters.
B)They occasionally subcontract to ad agencies.
C)They tend to be limited to the role of creative suppliers.
D)They provide the same research, marketing, sales expertise, and deep customer service that full-services agencies offer.
E)They focus on developing exciting creative concepts.

Accepted Answer

Some talented artists-such as graphic designers and copywriters-set up their own creative services, or creative boutiques. They work for advertisers and occasionally subcontract to ad agencies. Their mission is to develop exciting creative concepts and produce fresh, distinctive advertising messages. While boutiques may be economical, they usually don't provide the research, marketing, sales expertise, or deep customer service that full-service agencies offer. Thus, boutiques tend to be limited to the role of creative suppliers.

Question 19

As of January 2012, a super market chain operates 142 supermarkets in the metropolitan areas of New York, New Jersey, and Philadelphia. The chain advertises only in states where it has stores. This form of advertising is known as:
A)clearance advertising.
B)adjacency advertising.
C)regional advertising.
D)national advertising.
E)subliminal advertising.

Accepted Answer

Regional advertisers operate in one part of the country - in one or several states - and market exclusively within that region.

Question 20

Local advertisers and national advertisers differ in terms of:
A)credibility, autonomy, and sources.
B)ad penetration, autonomy, and promotional strategies.
C)focus, time orientation, and resources.
D)focus, promotional themes, and advertising vehicles.
E)credibility, relationships, and focus.

Accepted Answer

Local and national advertisers differ in terms of focus, time orientation, and resources.

Quiz 4: The Scope of Advertising: From Local to Global Part Two: Crafting Marketing and Advertising Strategies

Which of the following statements is true about general consumer agencies?

Centralized organizations may organize the centralized advertising department in all of the following ways except:

A national manufacturer assisting a distributor in product promotion by providing direct mail flyers is an example of _____ advertising.

An advertising agency in Mexico City represents a wide range of accounts. It depicts real Mexicans enjoying everyday life. The agency does not offer assistance to clients who want to reach international markets. From this information, you can surmise that the agency is a(n) _____ agency.

Which of the following statements implies that national and local advertisers have different time orientation?

Which of the following is an advantage associated with the use of an independent advertising agency?

One of the disadvantages for a company that uses a decentralized advertising department is:

The modern _____ advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion for its clients.

Which of the following is an advantage of using a decentralized advertising department?

A(n) _____ is formed by talented artists who work for advertisers and occasionally subcontract to advertising agencies. Their mission is to develop exciting creative concepts and to produce fresh, distinctive advertising messages.

In a _____, a company sets up separate ad departments for different divisions, subsidiaries, regions, brands, or other categories that suit the company's needs.

Multinationals that use a standardized approach to marketing and advertising in all countries in which they do business are called:

Business-to-business advertising agencies charge their clients service fees because:

The American Association of Advertising Agencies (AAAA) defines a(n) _____ as an independent organization of creative people and businesspeople who specialize in developing and preparing marketing and advertising plans, advertisements, and other promotional tools.

Which of the following is not true of creative boutiques?

As of January 2012, a super market chain operates 142 supermarkets in the metropolitan areas of New York, New Jersey, and Philadelphia. The chain advertises only in states where it has stores. This form of advertising is known as:

Local advertisers and national advertisers differ in terms of: