Deck 5: Advertising Management

Question 1

The guiding principle of The Richards Group advertising agency is "we sell the truth."

Answer 1

True

Question 2

In terms of organization, The Richards Group comingles disciplines within a space to create interdisciplinary villages or clusters.

Answer 2

True

Question 3

Part of the reasoning for using an in-house advertising department is that internal organization members have a better sense of the company's mission and message.

Answer 3

True

Question 4

An appeal is the key element in the advertisement that taps into, or activates, a consumer's personal value system.

Question 5

One of the advantages of an external advertising agency over an in-house marketing group is that the external agency offers greater expertise and has access to top creative talent.

Question 6

Advertising is a major component of integrated marketing communications.

Question 7

In terms of the 75/15/10 rule, 75 percent of the money spent on advertising should be spent for media buys.

Question 8

Advertising management is the process of preparing and integrating a company's advertising efforts with the overall IMC message.

Question 9

In business-to-business communications, advertising is often the primary promotion method with the other components of the promotional mix, such as trade promotions, consumer promotions, and personal selling supporting the advertising.

Question 10

The executional framework explains how the message in an advertisement will be delivered.

Question 11

When the majority of a company's advertising budget is spent on media buys, rather than producing the advertisement, the company should be inclined to do the work in-house.

Question 12

One important decision in advertising management is the choice between an in-house advertising group and an external advertising agency.

Question 13

An external advertising agency may actually cost less than doing advertising work in-house.

Question 14

Advertising is separate from the traditional promotions mix because it focuses on the end user.

Question 15

Consistency is ordinarily not a major concern in advertising management.

Question 16

In the consumer sector, advertising is usually the primary communication vehicle with the other promotional tools (trade) promotions, consumer promotions, and personal selling designed to back the advertising campaign.

Question 17

The leverage point is how the design of the ad will attract attention or present information to the consumer or business viewing the ad.

Question 18

An external advertising agency is likely to be more objective than an in-house advertising department and also have a better understanding of consumers and trends.

Question 19

In terms of the 75/15/10 rule, the 15 represents the amount of money that is spent on producing the advertisements.

Question 20

The message theme is an outline of the key idea(s) that an advertising program is supposed to convey.

Question 21

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

Question 22

Using crowdsourcing to create advertisements is normally cheaper than using an advertising agency.

Question 23

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.

Question 24

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.

Question 25

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

Question 26

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

Question 27

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.

Question 28

Crowdsourcing is the process of outsourcing the production aspect of an advertisement to the public.

Question 29

When two or more companies compete for a contract with creative pitches, the process is sometimes called a shootout.

Question 30

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

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

A boutique agency provides a full range of advertising services.

Question 39

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

Question 40

If an agency has relevant experience in a particular product category but not with the exact same product, then it creates a conflict of interest.

Question 41

A stewardship report is an update on the work performed on an advertising campaign and is prepared by the advertising agency.

Question 42

When an advertising agency is hired, the agency team should immediately seek to understand the client's company, its products, and its customers.

Question 43

In consumer-oriented advertising research, sociological analysis involves identifying who the target market associates with and how they interact with other people.

Question 44

Normally every company that asks to be considered for an advertising campaign will prepare a creative pitch as part of the application.

Question 45

Consumer-oriented advertising research includes using methods from disciplines such as anthropology, psychology, and sociology.

Question 46

If a company's marketing manager says, "I have a good feeling about working with this advertising agency," chemistry is probably present.

Question 47

An advertising account executive is the person who actually develops and produces the advertisement.

Question 48

One common approach used by advertising agencies to understand a client's customers is the focus group.

Question 49

Chemistry is the feeling that an advertising agency and a client company will work well together.

Question 50

A traffic manager is the person who schedules media for advertising.

Question 51

The account planner works closely with the account executive to schedule meetings and to explore the various media options that can be used during the campaign.

Question 52

During the product-specific research phase of advertising research, an agency may ask consumers if there are any problems or difficulties with the product.

Question 53

An advertising account executive is the key go-between for the advertising agency and the client company.

Question 54

An anthropological approach in consumer-oriented research involves direct observation of consumers using goods and services.

Question 55

In consumer-oriented advertising research, advertisers will often analyze psychological motives for product purchases.

Question 56

The second step in advertising planning is to establish the advertising goals, which are derived from the communication objectives.

Question 57

In a survey of advertising agency executives, advertising managers stated that a significant amount of their staff's time was wasted or used ineffectively because of poor communications between the agency and the client.

Question 58

When conducting advertising research, consumer-oriented research will examine the context of a product's use.

Question 59

Creatives are the people who actually develop and produce advertisements.

Question 60

One of the tasks of the account planner is to make sure the creative team at the advertising agency understands the consumer, or business, that is being targeted by the advertising campaign.

Question 61

A continuous campaign approach to advertising distribution involves advertising only during certain times of the year with no advertising in between.

Question 62

Providing information in an advertisement is most useful in the business-to-business buying situation when members of the buying center are in the information search stage of the purchasing process.

Question 63

One key step in preparing a creative brief is to identify the target audience of the ad.

Question 64

Toy companies and diet food companies have one thing in common: they are likely to use continuous campaign schedules in terms of advertising distribution.

Question 65

Persuasive advertising is used more in the business-to-business sector than in consumer marketing.

Question 66

A recent trend in advertising is to involve media companies at an earlier stage in the campaign design process.

Question 67

Persuasion is one of the most common advertising goals.

Question 68

A pulsating schedule of advertising distribution involves continuous advertising with bursts of higher intensity during specific periods of the year.

Question 69

A top-of-mind brand creates the impression that it is the easiest to buy.

Question 70

Successful brands have two characteristics: top-of-mind and top-choice.

Question 71

Building a strong global brand and corporate image is an important advertising goal.

Question 72

When advertising is combined with other marketing efforts into a larger, more integrated effort revolving around a theme; it is known as a promotional campaign.

Question 73

When Chad is asked which brand of razor he is most inclined to buy, his response will be his top-choice brand.

Question 74

A top-choice brand is the one that the customer ordinarily prefers in his or her evoked set when making a purchase decision.

Question 75

Selecting the appropriate media requires an understanding of the media-usage habits of the company's target market and then matching that information with the profile of each medium's audience.

Question 76

In terms of the advertising agency personnel, the creative brief is typically prepared by the creatives.

Question 77

A flighting approach to advertising distribution is a year-round level budget method.

Question 78

Advertisements designed to meet the goal of encouraging action are often used in the business-to-business sector.

Question 79

A key component of building brand image and brand equity is developing brand awareness.

Question 80

Providing information in an advertisement is most useful in the business-to-business sector for low-involvement purchase decisions.