Question 1

One of the more widely used collateral service organizations is the marketing research firm.

Accepted Answer

The statement accurately reflects the trend in the use of marketing research firms as collateral service organizations to assist companies in better understanding their target audiences and designing and evaluating their advertising and promotions programs.

Question 2

Proponents of the commission system argue that the system is more flexible than it appears as agencies often perform other services for large clients at no extra charge.

Accepted Answer

Proponents of the commission system argue that agencies may perform additional services for large clients at no extra charge, which adds flexibility to the system.

Question 3

Loyalty to a single agency is becoming more common as marketers seek new ways of connecting with consumers.

Accepted Answer

Loyalty to a single agency is becoming less common as marketers often work with multiple agencies to leverage diverse expertise and innovative strategies to connect with consumers.

Question 4

The layout of a print ad is known as a storyboard.

Accepted Answer

A storyboard is a sequence of drawings representing the shots planned for a film or television production, not a print ad layout.

Question 5

The agency evaluation is often done on a subjective, informal basis, particularly in smaller companies where ad budgets are low.

Accepted Answer

The statement accurately describes the common practice of agency evaluation in smaller companies with limited ad budgets or where advertising is not seen as a top priority. This often leads to a more subjective and informal evaluation process.

Question 6

A typical direct-response agency does not include a creative department.

Accepted Answer

A typical direct-response agency includes a creative department along with account management and media departments. Some agencies may also have a database department.

Question 7

In-house agencies are preferred by some companies because they keep the marketing communications function more closely tied to top management.

Accepted Answer

In-house agencies are preferred by some companies for the reasons mentioned in the statement.

Question 8

Digital/interactive agencies and public relations firms are examples of organizations that provide specialized marketing communication services.

Accepted Answer

This statement is true.

Question 9

Account planners work with the client as well as other agency personnel including the account executives and media specialists.

Accepted Answer

Account planners work closely with various agency personnel to gather insights and data that can inform their strategies for reaching the target audience. This collaboration helps ensure that the messaging and communication channels are effective in reaching and engaging the intended audience.

Question 10

According to marketing executives, the biggest obstacle to implementing integrated marketing communications (IMC) is the lack of people with the broad perspective and skills to make it work.

Accepted Answer

The statement accurately reflects the opinions of marketing executives regarding the biggest obstacle to implementing integrated marketing communications.

Question 11

While the advertising department develops the promotional budget, the final decision on allocating funds is usually made by the overall marketing department.

Accepted Answer

The answer of While the advertising department develops the promotional...

Question 12

Media buying services have been experiencing strong growth in recent years as clients seek alternatives to full-service agency relationships.

Accepted Answer

The statement correctly states that media buying services have been experiencing strong growth and that clients are seeking alternatives to full-service agency relationships by unbundling agency services and consolidating media buying.

Question 13

While many people both inside and outside the organization have some input into the advertising and promotion process, direct responsibility for administering the program must be assumed by someone within the firm.

Accepted Answer

This statement is true, as ultimately someone within the firm must take direct responsibility for administering the advertising and promotion program. While others may provide input and guidance, it is important to have a clear leader who is accountable for the success of the program.

Question 14

The role of account representatives is likely to disappear as agencies and their clients are beginning to liaise directly with each other.

Accepted Answer

The statement in the question suggests that account representatives are becoming obsolete, which is false. The explanation below the statement provides the accurate role and responsibilities of account executives.

Question 15

An agency with integrated marketing capabilities can create a single image for the product or service and address everyone, from wholesalers to consumers, with one voice.

Accepted Answer

This statement accurately describes the benefits of working with an agency that has integrated marketing capabilities. By creating a cohesive message and strategy across all marketing channels, the agency can effectively reach and engage various audiences with one unified voice. Coordinating all marketing efforts through one agency can also streamline the process and ensure consistency in branding and messaging.

Question 16

A decentralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise.

Accepted Answer

The statement given is contradictory, which makes it difficult to determine the correct answer. However, typically a decentralized organizational system is used when a company has many divisions, product or service lines, or brands to advertise, while a centralized organizational system is used when a company has fewer of these factors.

Question 17

A cost-plus system requires that the agency keep detailed records of the costs it incurs in working on a client's account.

Accepted Answer

The statement is true. The cost-plus system requires that the agency keep detailed records of the costs it incurs in working on the client's account, and determines the amount billed to the client based on direct costs, overhead allocation, and markup for profits.

Question 18

From the perspective of the promotional planner, the purpose of media is to provide information or entertainment to their subscribers.

Accepted Answer

The primary purpose of media from a promotional planner's perspective is to reach and influence the target audience effectively, not just to provide information or entertainment.

Question 19

A disadvantage of the decentralized system is that each brand does not receive concentrated managerial attention, resulting in slower response to both problems and opportunities.

Accepted Answer

The statement in the first sentence is contradictory and incorrect. The correct advantage of a decentralized system is mentioned in the second sentence.

Question 20

Superagencies were formed when large advertising organizations disintegrated to form separate, more specialized individual agencies.

Accepted Answer

Superagencies were formed when large advertising organizations consolidated smaller agencies to offer a full range of services under one umbrella, not when they disintegrated.

Quiz 3: Organizing for Advertising and Promotion: The Role of AD Agencies and Other Marketing Communication Organizations