Question 1

In selecting an advertising agency,it is important to assess the agency's production capabilities and media purchasing capabilities,even if these services will not be a part of the contract with the agency.

Accepted Answer

The answer of In selecting an advertising agency,it is important...

Question 2

Matching the size of an advertising agency to the size of the client company is typically not a key issue in agency selection.

Accepted Answer

Matching the size of the advertising agency to the size of the client company can be an important consideration in agency selection, as larger companies may require larger agencies with more resources and specialized expertise, while smaller companies may prefer smaller agencies with more personalized attention and cost-effective solutions.

Question 3

Discovering an advertising agency's client retention rate helps reveal how effective the agency has been in working with various clients.

Accepted Answer

Knowing the client retention rate helps in understanding how good an advertising agency is in retaining clients and delivering satisfactory results to them. This can indicate the agency's effectiveness and quality of services.

Question 4

Reference requests are not usually made during the selection of an advertising agency,especially for finalist companies.

Accepted Answer

The answer of Reference requests are not usually made during...

Question 5

If an agency has relevant experience in a particular product category,then it will create a conflict of interest.

Accepted Answer

If an agency has relevant experience in a particular product category, it may actually be beneficial as they have knowledge and understanding of the industry. However, it is important for the agency to disclose any potential conflicts of interest and ensure they are managing them appropriately.

Question 6

One method to measure the creative reputation and capability of an advertising agency is to look at a list of awards the company has received for past campaigns.

Accepted Answer

Awards are often given for innovative and creative campaigns, and receiving multiple awards can indicate a strong creative reputation and capability for an advertising agency.

Question 7

In terms of selecting an advertising agency,a creative pitch is a formal presentation addressing a specific problem,situation,or set of questions.

Accepted Answer

A creative pitch is indeed a formal presentation that addresses a specific problem, situation, or set of questions, in order to showcase the capabilities of the advertising agency and win the business of the client.

Question 8

In terms of the 75/15/10 rule,the 10 represents the amount of money that is spent on creating or designing the ads.

Accepted Answer

The answer of In terms of the 75/15/10 rule,the 10...

Question 9

If an agency had represented a dine-in restaurant in the past,but no longer has the account,it would be conflict of interest for another dine-in restaurant to hire the agency.

Accepted Answer

A conflict of interest typically arises when an agency represents competing clients simultaneously, not when it has previously represented a similar client.

Question 10

The first step in selecting an advertising agency is to set and prioritize goals.

Accepted Answer

This statement is true. Before selecting an advertising agency, it is important to define specific goals and prioritize them based on their importance to the overall marketing strategy. This will help ensure that the agency selected is the best fit for achieving those goals.

Question 11

An external advertising agency is likely to be more creative in designing ads than an in-house department.

Accepted Answer

An external advertising agency has more experience and exposure to a wider range of industries and audiences, allowing them to be more creative and innovative in their approach. In-house departments may be limited by their company culture and lack of diverse input.

Question 12

The "whole egg theory" was introduced by professors at Texas A & M University.

Accepted Answer

The "whole egg theory" was not introduced by professors at Texas A & M University; it is a concept related to nutrition and the benefits of consuming whole eggs, but it is not attributed to a specific introduction by this university.

Question 13

The concept of the whole egg theory is to move from selling a client's products to helping a client attain total success in the marketplace.

Accepted Answer

The statement accurately describes the concept of the whole egg theory. It emphasizes the importance of providing comprehensive support to clients beyond simply selling their products, in order to maximize their overall success in the market.

Question 14

A media service company negotiates and purchases media packages,which are also known as media buys.

Accepted Answer

This statement is true. A media service company's primary role is to negotiate and purchase media packages, also known as media buys, on behalf of their clients.

Question 15

In terms of selecting an advertising agency,without clearly understood goals,it is virtually impossible to choose an agency because company leaders may not have a clear idea of what they want to accomplish.

Accepted Answer

Without clear goals, it becomes difficult to evaluate whether an advertising agency will be a good fit for the company's needs and objectives. Therefore, it is essential to have a clear understanding of the company's goals and results expected from advertising before selecting an agency.

Question 16

In terms of selecting an advertising agency,requesting client references should occur before the initial list of applicants is screened,since the client list can be used to eliminate agencies where there is a conflict of interest.

Accepted Answer

Requesting client references typically occurs after the initial screening of applicants to ensure that the agencies being considered do not have conflicts of interest and have a proven track record.

Question 17

The request for a creative pitch would occur after the list of candidate agencies is reduced to only two or three agencies.

Accepted Answer

The request for a creative pitch usually occurs after the agencies have been shortlisted to two or three candidates. This allows the client to see how each agency approaches the creative brief and can result in a better informed decision about which agency to choose.

Question 18

Winning a variety of advertising awards for creativity assures a company that the agency can be objective in developing a campaign.

Accepted Answer

Winning advertising awards for creativity may indicate that the agency is skilled at creative execution, but it does not necessarily imply objectivity in developing a campaign. Other factors such as understanding the target audience and the client's business goals are also important in developing an effective campaign.

Question 19

A boutique agency is one that provides a full range of advertising services.

Accepted Answer

A boutique agency typically specializes in a specific area of advertising or marketing rather than offering a full range of services.

Question 20

To be effective in terms of using an external agency,at least 75 percent of the advertising budget should be spent on media buys.

Accepted Answer

Media buys refer to purchasing the actual ad space or time on various media outlets, which is the main role of an external agency. Therefore, a significant portion of the budget should be allocated towards this expense to ensure the agency can effectively execute the advertising campaign.

Quiz 5: Advertising Management