Deck 2: The Advertising Industry

Question 1

Most advertising plans are evaluated on reaching quantifiable objectives,such as to

A) increase consumer awareness
B) not exceed the media budget
C) expand the advertising campaign
D) decrease market research
E) increase media budget

Answer 1

A

Question 2

The advertising manager is responsible for activities such as

A) copywriting
B) creative
C) set basic direction of a campaign
D) accounting
E) product planning

Answer 2

C

Question 3

Research and audience measurement companies include the

A) Canadian Direct Marketing Association
B) Newspaper Marketing Bureau
C) Audit Bureau of Circulations
D) Radio Marketing Bureau
E) Association of Advertisers

Answer 3

C

Question 4

In the context of advertising,the brand manager deals with the agency on

A) other products in the same category
B) customer intelligence and research plans
C) creative/media assignments and other IMC activities
D) the resources of the client company
E) sales reports and forecasts

Question 5

One of the largest media companies in Canada is

A) Canwest Mediaworks
B) Torstar
C) ICA
D) Bell Media
E) ACA

Question 6

Which medium currently generates the most advertising revenue in Canada?

A) radio
B) internet
C) daily newspapers
D) direct mail
E) television

Question 7

Canadian advertising clients can include

A) consumers
B) advertising agencies
C) retailers
D) market segments
E) telephone subscribers

Question 8

The position of advertising manager is in the

A) advertising agency
B) client organization
C) printing industry
D) magazine sector
E) television network

Question 9

Nielsen Media Research is an independent organization that

A) owns television media
B) educates advertisers about the merits of media
C) compiles and publishes reliable measurement data
D) represents the interests of full-service agencies
E) plans and buys media time and space

Question 10

Which of the following advertising mediums has forced advertisers to look at different forms of communication opportunities?

A) television
B) social media and mobile technology
C) radio
D) newspaper
E) magazines

Question 11

Organizations that support the advertising industry include

A) associations
B) print production companies
C) television companies
D) consumer groups
E) radio companies

Question 12

Advertisers are represented by the

A) CRTC
B) CARDMEDIA
C) ACA
D) ICA
E) NBC

Question 13

The largest agency network in Canada is

A) MDC Partners
B) Maritz Canada
C) Cossette Communication Group
D) Carlson Marketing
E) Nurun

Question 14

An advertising manager can evaluate the success of an advertising campaign by

A) reviewing planned media expenditures
B) assessing the reactions of sales management personnel
C) relying primarily on qualitative judgments
D) counting the number of sales leads that were generated
E) examining the cost/value relationship

Question 15

The Institute of Communications Agencies (ICA)is the national association that represents

A) full-service advertising agencies
B) the Canadian media
C) large advertisers
D) advertising support companies
E) media support services

Question 16

Which of the following organizations provides media support services by educating advertisers?

A) Television Bureau of Canada
B) CRTC
C) CARD
D) Nielsen Marketing Research
E) Audit Bureau

Question 17

Advertising support firms include

A) photographers
B) advertising schools
C) consumer groups
D) clients
E) government lobbyists

Question 18

The Canadian media is divided into numerous categories,one of which is

A) television
B) radio
C) magazines
D) print
E) direct mail

Question 19

Category managers are common in large,packaged goods companies such as

A) the Government of Canada
B) telemarketers
C) Procter & Gamble
D) the Hudson Bay Company
E) Speedy Muffler

Question 20

Ontario Dairy Producers is an example of

A) an advertising agency
B) media
C) a client
D) a media research company
E) media support services

Question 21

In order to better understand target consumers and to devise better advertising concepts,the advertising manager may

A) allocate resources to advertising research
B) reallocate media dollars
C) shift the work to a new advertising agency
D) introduce a new creative approach
E) change the philosophical approach to an account

Question 22

One of Canada's largest media buying agencies,responsible for 955 million in 2010,is

A) Starcom
B) Group M
C) Rethink
D) Cossette Communications Group
E) BBDO

Question 23

Broadcast is composed of which type of media?

A) newspapers
B) television and radio
C) direct mail
D) outdoor
E) internet

Question 24

Account shifting refers to

A) the transfer of funds to a new financial institution
B) a shift in market share data
C) the movement of an advertising account from one agency to another
D) a shift in product development planning
E) an increase in pricing

Question 25

To encourage the best possible relationship between clients and agencies,clients must

A) hire agencies on a project-by-project basis
B) provide appropriate background information
C) conduct agency evaluations at regular intervals
D) provide international connections
E) invest minimal resources

Question 26

One of the services that a full-service advertising agency offers clients is

A) operations management
B) account management
C) product production assistance
D) sales training
E) subjective analysis

Question 27

A briefing document includes

A) target market profiles
B) distribution
C) company operations
D) pricing structure
E) promotion mix

Question 28

If the advertising manager does not like the agency's creative or media recommendation,then

A) more advertising research is required
B) the client must revise their objectives
C) the agency will choose to drop the client
D) the agency proposal won't likely reach the corporate approval stage
E) the advertising budget will be lowered

Question 29

M2 Universal is an example of which type of specialist agency?

A) media-buying service
B) direct-response communications
C) broadcast media service
D) creative
E) interactive communications

Question 30

In an effort to ensure that desired reach levels were achieved,the advertising manager may request a:

A) pre-buy media analysis
B) budget recap
C) integrated analysis
D) post-buy media analysis
E) personal selling analysis

Question 31

Reasons for dissolving a relationship with an agency may include

A) shifting demographics
B) agency mergers
C) the emergence of a new, "hip" agency
D) lack of chemistry between the two parties
E) policy shifts

Question 32

In today's cluttered media environment,clients are moving away from mass media and toward

A) broadcast advertising
B) B2B communications
C) print advertising
D) direct-response communications
E) personal selling

Question 33

BBDO Canada and Cossette Communication Group are both examples of

A) full-service agencies
B) regional advertising agencies
C) post production agencies
D) specialist agencies
E) creative boutiques

Question 34

The internet and mobile communications fall under which media category?

A) broadcast
B) print
C) out of home
D) direct response
E) digital

Question 35

A company that thinks globally but acts locally is associated with which type of management system?

A) regional
B) provincial
C) product
D) international
E) specialized

Question 36

With complex laws and regulations governing advertising,pharmaceutical companies usually seek out specialist agencies that focus on

A) direct-response
B) product categories
C) interactive media D creative
E) media planning

Question 37

One of the advertising manager's key responsibilities is providing the agency with

A) information on new assignments
B) comprehensive creative strategies
C) timely payment of all invoices
D) list of the company personnel
E) updates on media research

Question 38

Typically,full-service agencies attract

A) small local businesses
B) not for profit companies
C) media planning companies
D) international head offices
E) large national advertisers

Question 39

Which type of advertising agency must offer integrated marketing communications solutions to its clients?

A) specialist agencies
B) boutique agencies
C) media-buying service agencies
D) full-service agencies
E) total-solution communications agencies

Question 40

If RBC Investments wanted to target Canada's baby boomers as part of their marketing strategy,what type of agency should they seek?

A) digital communications specialist
B) industry specialist
C) direct-response specialist
D) boutique
E) media specialist

Question 41

An agency team generally includes a

A) creative production manager
B) software designer
C) creative director
D) advertising manager
E) marketing manager

Question 42

Which of the following is an essential service of the advertising agency?

A) financial expertise
B) strategic planning assistance
C) operations experience
D) human resource knowledge
E) software management expertise

Question 43

Agencies,as a rule,will not accept assignments from an advertiser who

A) is in direct competition with another client
B) not wholly Canadian-owned
C) requires marketing planning assistance
D) has severed a relationship with another agency
E) has a need for interactive communications

Question 44

A key function of the account executive is to:

A) monitor the agency's personnel
B) execute the media buying
C) provide up-to-date information on media audiences
D) monitor the competition
E) promote active liaison with clients.

Question 45

A benefit to the client of keeping an agency account team together over a number of assignments is

A) complete more assignments in less time
B) use the same advertisements for many assignments
C) no need to meet with the agency for each assignment
D) consistency in the creative approach
E) less agency compensation

Question 46

The agency of record is primarily responsible for

A) international advertising
B) media negotiation and placement
C) niche market segment advertising
D) advertising specific product categories
E) developing good client-agency relationships

Question 47

Today,many agencies believe the complex and time-consuming nature of this task is better suited to specialist agencies.

A) media buying services
B) creative services
C) account services
D) production management
E) project management

Question 48

In order to evaluate the success of an advertising program,the advertising manager must set up ________ objectives to evaluate results.

A) quantifiable
B) agency
C) creative
D) media
E) qualitative

Question 49

One of the advantages of the fee system for the client is that

A) the agency can be called upon for an unlimited amount of their time
B) media buy usually includes television spots
C) payment is based on media cost and not on the work provided
D) agency recommendations can be self-serving
E) client-agency relationship is weak

Question 50

Moving toward this type of agency compensation will eliminate media bias and encourage holistic,media-neutral marketing.

A) the fee system
B) monthly retainer
C) commission based
D) payment-by-results
E) AOR system

Question 51

The standard media commission rate paid to advertising agencies has been

A) 10%
B) 12.5%
C) 15%
D) 17.5%
E) 18%

Question 52

What commission would be charged on a 30-second television commercial that cost $100,000 to make?

A) $17,650
B) $17,500
C) $15,000
D) $1,500
E) $35,300

Question 53

The person responsible for ensuring the final product reaches the media destination on time is the

A) production manager
B) account planner
C) account supervisor
D) creative director
E) traffic manager

Question 54

The account director is responsible for

A) increasing the client's sales
B) media planning
C) overall account profitability
D) copy writing
E) creative development

Question 55

This compensation model would see marketers pay less during the concept development phase,and instead pay fees according to business results.

A) based on creative awards
B) based on media buy
C) PBR
D) based on agency services provided
E) based on television spots purchased

Question 56

The agency compensation system gaining in popularity is the

A) commission system
B) payment-by-results system
C) media buy system
D) fee system
E) agency of record system

Question 57

A cost plus profit fee system is common among clients with

A) long-term projects
B) many projects
C) marketing plan development
D) short-term projects
E) new product development

Question 58

The agency commission system excludes costs for one of the following:

A) analyzing client research
B) developing proposals for new assignments
C) creating advertising material
D) preparing overall strategy
E) media planning and buying

Question 59

One type of advertising research is _____________ research.

A) project planning
B) budget control
C) customer satisfaction
D) pre-testing
E) sales

Question 60

The agency role which acts as the primary link with the client is the:

A) media supervisor
B) art director
C) account executive
D) production manager
E) copywriter

Question 61

Advertising agencies are service organizations responsible for creating,planning,producing advertising and placing messages for their clients.

Question 62

As Canada is a diverse country,both geographically and culturally,organizations such as Molson Coors would likely employ an international management system in Canada.

Question 63

Media research is concerned with quantitative measures of media exposure.

Question 64

Sometimes it is necessary to run a short-term sales promotions campaign at the same time as a long-term image-building campaign.

Question 65

In a large multi-product company like Proctor and Gamble,key brands such as Tide,Mr.Clean and Swiffer would be the responsibility of the advertising manager.

Question 66

The Canadian media is divided into three categories: broadcast,print and out-of-home media.

Question 67

Television is the largest single medium,with advertising revenues of $3.5 billion.

Question 68

The advertising manager role is an advertising agency job.

Question 69

Management of the advertising function usually falls under the jurisdiction of the marketing department in the client's organization.

Question 70

Clients often hire agencies because of the reputation of the creative staff.

Question 71

Changes to the account team are never a cause of account shifting.

Question 72

From the viewpoint of the agency,the advertising manager is the person it must satisfy first.

Question 73

Agencies will accept assignments from a large advertiser,even if that client is in direct competition with a current client.

Question 74

Media support services include the CRTC.

Question 75

The member of the account group whose responsibilities would include analyzing and capitalizing on business-building opportunities is the account executive.

Question 76

Creative boutiques are usually staffed by previous creative department employees of full-service agencies.

Question 77

The key responsibility of the copywriter is to come up with a message that stands out and is relevant to the potential customer.

Question 78

A media buying service is a media specialist agency responsible for only purchasing media for the client.

Question 79

Advertising support companies include media representatives who sell time and space for a particular media.

Question 80

In a payment by results system the compensation is 10% commission rather than the traditional 15%.