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MARKETING5-MIDTERM EXAM

Total questions: 40

Worksheet time: 40mins

Name
Class
Date
1.

Many marketers are using this agencies that specialize the development and strategic use of various marketing tools such as websites for the Internet, banner ads, CD-ROMs, and kiosks?

a)

Interactive Agencies

b)

Public Relations Firms

c)

Sales Promotion Agencies

d)

Direct-Response Agencies

2.

Develops and implements programs to manage the organization’s publicity, image, and affairs with consumers and other relevant publics, including employees, suppliers, stockholders, government, labor groups, citizen action groups, and the general public?

a)

Interactive Agencies

b)

Public Relations Firms

c)

Sales Promotion Agencies

d)

Direct-Response Agencies

3.

How Agencies Gain Clients by these except:

a)

✓Referrals

b)

✓Image and Reputation

c)

✓Presentations

d)

✓Surveys

4.

THESE ARE THE REASONS WHY AGENCIES LOSE CLIENTS : EXCEPT?

a)

Poor performance or service

b)

Changes in the client’s corporate and/or marketing strategy

c)

Changes in size of the client or agency

d)

Changes in policies and plan

5.

Another way to compensate an agency is by adding a markup of percentage charges to various services the agency purchases from outside providers?

a)

PERCENTAGE CHARGES

b)

FEE, COST, AND INCENTIVE-BASED SYSTEMS

c)

COMMISSIONS FROM MEDIA

d)

MEDIA BUYING SERVICES

6.

Many clients these days are demanding more accountability from their agencies and tying agency compensation to performance through some of this system?

a)

Incentive-Based Compensation

b)

Cost-Plus Agreement

c)

Fee Arrangement

d)

Appraisal of the Commission System

7.

This system requires that the agency keep detailed records of the costs it incurs in working on the client’s account?

a)

Cost-Plus Agreement

b)

Incentive-Based Compensation

c)

Fee Arrangement

d)

Appraisal of the Commission System

8.

The agency charges a basic monthly fee for all of its services and credits to the client any media commissions earned?

a)

Fee Arrangement

b)

Cost-Plus Agreement

c)

Incentive-Based Compensation

d)

Appraisal of the Commission System

9.

Use of the commission system to compensate agencies has been quite controversial for many years?

a)

Appraisal of the Commission System

b)

Fee Arrangement

c)

Incentive-Based Compensation

d)

Cost-Plus Agreement

10.

Are independent companies that specialize in the buying of media, particularly radio and television time?

a)

MEDIA BUYING SERVICES

b)

COMMISSIONS FROM MEDIA

c)

CREATIVE BOUTIQUES

d)

FEE, COST, AND INCENTIVE-BASED SYSTEMS

11.

These specialized companies have developed in response to some clients’ desires to use only the creative talent of an outside provider while maintaining the other functions internally?

a)

CREATIVE BOUTIQUES

b)

MEDIA BUYING SERVICES

c)

COMMISSIONS FROM MEDIA

d)

FEE, COST, AND INCENTIVE-BASED SYSTEMS

12.

Full-function advertising agencies must develop an organizational structure that will meet their clients’ needs and serve their own internal requirements?

a)

AGENCY ORGANIZATION AND STRUCTURE

b)

MANAGEMENT AND FINANCE

c)

CREATIVE SERVICES

d)

MARKETING SERVICES

13.

Most medium-size and large agencies are structured over either a departmental or a group system?

a)

CORRECT

b)

INCORRECT

14.

Large agencies employ administrative, managerial, and clerical people to perform these functions?

a)

MANAGEMENT AND FINANCE

b)

AGENCY ORGANIZATION AND STRUCTURE

c)

MARKETING SERVICES

d)

CREATIVE SERVICES

15.

Like any other business, an advertising agency must be managed and perform basic operating and administrative functions such as accounting, finance, and human resources only?

a)

TRUE

b)

FALSE

16.

Coordinates all phases of production to see that the ads are incompleted on time and that all deadlines for submitting the ads to the media are met?

a)

TRUE

b)

FALSE

17.

The traffic department may be located in the creative services area of the agency, or be part of media or account management, or be separate?

a)

CORRECT

b)

INCORRECT

18.

Is responsible for how the ad looks?

a)

The art department

b)

A traffic department

c)

The production department.

d)

The HR department

19.

For print ads, the art director and graphic designers prepare layouts, which are drawings do not show what the ad will look like and from which the final artwork will be produced?

a)

TRUE

b)

FALSE

20.

Once the copy, layout, illustrations, and mechanical specifications have been completed and approved, the ad is turned over to?

a)

The art department

b)

The production department

c)

A traffic department

d)

To HR department

21.

The individuals who conceive the ideas for the ads and write the headlines, subheads, and body copy (the words constituting the message) are known as copywriters?

a)

CREATIVE SERVICES

b)

MARKETING SERVICES

c)

ACCOUNT SERVICES

d)

FULL-SERVICE AGENCIES

22.

Of an agency analyzes, selects, and contracts for space or time in the media that will be used to deliver the client’s advertising message?

a)

Research department

b)

Media department

c)

The art department

d)

A traffic department

23.

Whose function is to gather, analyze, and interpret information that will be useful in developing advertising for their clients?

a)

Research department

b)

Media department

c)

The art department

d)

A traffic department

24.

One service gaining increased attention is research, as agencies realize that to communicate effectively with their clients’ customers, they must have a good understanding of the target audience?

a)

MARKETING SERVICES

b)

CREATIVE SERVICES

c)

MANAGEMENT AND FINANCE

d)

AGENCY ORGANIZATION AND STRUCTURE

25.

Is the link between the ad agency and its clients?

a)

ACCOUNT SERVICES

b)

MARKETING SERVICES

c)

FULL-SERVICE AGENCIES

d)

MANAGEMENT AND FINANCE

26.

The advertising planning process begins with a thorough situation analysis, which is not based on research and information about the target audience?

a)

TRUE

b)

FALSE

27.

The account executive is responsible for understanding the advertiser’s marketing and promotions needs and interpreting them to agency personnel?

a)

TRUE

b)

FALSE

28.

The account executive also presents agency recommendations and not obtains client approval?

a)

TRUE

b)

FALSE

29.

Which offers its clients a full range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media?

a)

FULL-SERVICE AGENCIES

b)

ACCOUNT SERVICES

c)

MARKETING SERVICES

d)

CREATIVE SERVICES

30.

They have the products, services, or causes to be marketed, and they provide the funds that pay for advertising and promotions?

a)

THE ADVERTISERS OR CLIENTS

b)

ADVERTISING AGENCY

c)

MEDIA ORGANIZATIONS

d)

SPECIALIZED MARKETING COMMUNICATIONS SERVICES

31.

Are another major participant in the advertising and promotions process?

a)

MEDIA ORGANIZATIONS

b)

SPECIALIZED MARKETING COMMUNICATIONS SERVICES

c)

ADVERTISING AGENCY

d)

THE ADVERTISERS OR CLIENTS

32.

These organizations provide services in their areas of expertise?

a)

SPECIALIZED MARKETING COMMUNICATIONS SERVICES

b)

COLLATERAL SERVICES

c)

MEDIA ORGANIZATIONS

d)

ADVERTISING AGENCY

33.

The advertising manager controls the entire promotions operation, including budgeting, coordinating creation and production of ads, planning media schedules, and monitoring and administering?

a)

THE CENTRALIZED SYSTEM

b)

THE DECENTRALIZED SYSTEM

c)

IN-HOUSE AGENCIES

d)

ADVERTISING AGENCIES

34.

Formal plans are submitted annually or when a program is being changed significantly, as when a new campaign is developed?

a)

PLANNING AND BUDGETING

b)

ADMINISTRATION AND EXECUTION

c)

COORDINATION WITH OTHER DEPARTMENTS

d)

COORDINATION WITH OUTSIDE AGENCIES AND SERVICES

35.

The advertising department is responsible for developing advertising and promotions plans that will be approved by HR and recommending a promotions program based on the overall marketing plan, objectives, and budget.

a)

TRUE

b)

FALSE

36.

The manager must organize the advertising department and supervise also the execution and control its activities?

a)

ADMINISTRATION AND EXECUTION

b)

COORDINATION WITH OTHER DEPARTMENTS

c)

COORDINATION WITH OUTSIDE AGENCIES AND SERVICES

d)

PLANNING AND BUDGETING

37.

For example, the advertising department must communicate with marketing research and/or sales to determine which product features are important to customers and should be emphasized in the company’s communications?

a)

COORDINATION WITH OUTSIDE AGENCIES AND SERVICES

b)

COORDINATION WITH OTHER DEPARTMENTS

c)

ADMINISTRATION AND EXECUTION

d)

PLANNING AND BUDGETING

38.

The department serves as liaison between the company and any outside service providers and also determines which ones to use.

a)

COORDINATION WITH OUTSIDE AGENCIES AND SERVICES

b)

COORDINATION WITH OTHER DEPARTMENTS

c)

ADMINISTRATION AND EXECUTION

d)

PLANNING AND BUDGETING

39.

Is an advertising agency that is set up, owned, and operated by the advertiser?

a)

IN-HOUSE AGENCIES

b)

ADVERTISING AGENCIES

c)

THE AD AGENCY’S ROLE

d)

6 TYPES OF AD AGENCIES

40.

Many companies have an advertising department but still use many outside services?

a)

TRUE

b)

FALSE