Question 1

Under the _____ method of agency compensation,the media channel may allow an ad agency to retain a 15 percent of the bill amount on the time and space purchased for clients.

Accepted Answer

Media commission refers to the method in which an ad agency is paid by the media channel a percentage of the bill amount for the time and space purchased for clients. This percentage is usually around 15 percent.

Question 2

Relationship marketing is defined in most marketing texts as the creation of customer loyalty through the establishment of a long-term win-win relationship between the buyer and seller.Which of the following terms MOST closely relates to relationship marketing?

Accepted Answer

Account planning changes the task performed by an advertising agency from one of simply creating an ad to one of nurturing a relationship between agency and client.

Question 3

If an agency were to buy an ad in a magazine for a company that sells customized fabric,the ad would cost $5,000.How much money would the agency send to the publication?

Accepted Answer

The magazine would receive only $750 even though the travel company paid the agency $5,000. The $750 is the agency's media commission. Cash discounts were ignored in the question as they are in the text discussion.

Question 4

The words in an ad explained why a golfer should buy a certain brand of golf balls.These words are called the ad's:

Accepted Answer

Most ads rely heavily on copy, the words that make up the headline and message.

Question 5

Which of the following is NOT true of creative boutiques?

Accepted Answer

Creative boutiques may not provide the same level of research, marketing, sales expertise, and deep customer service that full-services agencies offer. They typically focus on developing exciting creative concepts and may not have the capacity or resources to offer extensive services beyond that.

Question 6

_____ must have the skill to condense all that can be said about a product into a few salient and pertinent points.

Accepted Answer

Copywriters are responsible for writing the copy or text for advertisements. A key part of their job is to condense all the information about a product or service into a message that is concise, compelling, and easy to understand. They must choose the most important and relevant points and present them in a way that will resonate with the target audience.

Question 7

All of the following are the examples of specialized service agencies EXCEPT:

Accepted Answer

The answer of All of the following are the examples...

Question 8

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

Accepted Answer

Business-to-business advertising agencies often have higher expenses than traditional consumer advertising agencies due to the complexity of the products and services being promoted. The standard agency commission of 15% on media buys may not cover these additional expenses, so a fee system is often used to ensure the agency is adequately compensated for their work.

Question 9

When an advertising agency purchased several hours of television time for its customers' commercials from a television station,the agency received 15 percent of the gross amount charged by the station.The 15 percent:

Accepted Answer

Because the agency is saving the media much of the expense of sales and collections, the media allows the agency to retain a 15 percent media commission on the space or time they purchased on behalf of their clients.

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.

Accepted Answer

The description given fits that of a creative boutique, which is a type of agency formed by talented artists who produce distinctive advertising messages. The other options do not fit the given description.

Question 11

An ad agency's _____ coordinates all phases of production and makes sure everything is completed before the client and/or media deadlines.

Accepted Answer

The traffic department's primary role is to manage the flow of work through the agency, from receiving client briefings to delivery of final materials to the media. They ensure that all phases of production are completed on time and within budget, and that deadlines are met.

Question 12

The _____ is in charge of the nonverbal communication portion of an ad.

Accepted Answer

The art director is responsible for the visual aspects of an ad, including the nonverbal communication such as the use of color, imagery, and layout.

Question 13

A media company buys unsold television and radio media and resells the time and space to advertisers and agencies.This company is an example of a(n):

Accepted Answer

Media-buying agencies purchase and package radio and TV time.

Question 14

Account executives are:

Accepted Answer

Account executives serve as the main point of contact between advertising agencies and their clients. They are responsible for building and maintaining relationships with clients, managing projects, and ensuring that the agency delivers high-quality work that meets the client's needs and objectives. They are not limited to working with small companies or non-profit organizations, and they are not typically the sole media buyers at large agencies.

Question 15

A company manufactures rivets used on heavily loaded conveyor belts which carry ore in underground and surface mining operations.This company would most likely hire a(n)_____ agency to create the company's advertising.

Accepted Answer

A business-to-business agency represents clients that market products to other businesses.

Question 16

In the creative process,the _____ determines how the ad's verbal and visual symbols will fit together.

Accepted Answer

The art director is responsible for the visual aspects of the advertisement, including how the verbal and visual symbols will fit together. They work closely with the copywriter to ensure that the final product effectively communicates the intended message.

Question 17

Account planning:

Accepted Answer

Account planning is a hybrid discipline that bridges the gap between the traditional agency research, account management, and creative departments. It involves consumer research to gain insights that inform the development of a well-targeted and effective advertising campaign. It is not just about benchmarking competitors or reorganizing the advertiser, nor does it include choosing generic ads.

Question 18

A small Georgia agency buys a quarter-page ad in a golfing magazine for a travel agency that specializes in preparing all-inclusive,hassle-free golf travel packages,on a 15 percent commission basis.The ad cost them $300.How much money would the Georgia agency send to the publication?

Accepted Answer

The magazine would receive only $255 even though the travel company paid the agency $300. The $45 is the agency's media commission. Cash discounts were ignored in the question as they are in the text discussion. The typical media commission is 15 percent.

Question 19

A design company is a(n)_____ that designs Web pages and creates fun,involving,and informational online advertising.

Accepted Answer

Interactive agencies specialize in designing Web pages and creating fun, involving, information-rich, online advertising.

Question 20

Medium and large advertising agencies are usually structured according to the:

Accepted Answer

Medium and large advertising agencies are typically structured according to a group or departmental system, where employees are organized into different teams based on their job functions such as account management, creative design, media planning, and production. This structure allows for better coordination and collaboration among team members, and helps the agency to efficiently manage and execute complex advertising campaigns for their clients.

Quiz 4: The Scope of Advertising