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 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

Answer 2

A

Question 3

The largest agency network in Canada is

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

Answer 3

C

Question 4

Advertisers are represented by the

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

Question 5

Advertising support firms include

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

Question 6

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

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

Question 7

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 8

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 9

Which medium currently generates the most advertising revenue in Canada?

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

Question 10

Full Service Agencies have the resources to

A) specialize in one particular discipline such as media planning
B) embrace all of the possible demands that a client may place on them
C) compete directly with creative boutiques
D) hire an advertising manager away from a client

Question 11

The position of advertising manager is in the

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

Question 12

The advertising manager is responsible for activities such as

A) copywriting
B) creative
C) compiles and presents all information relevant to a specific advertising assignment to the advertising agency
D) accounting
E) product planning

Question 13

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 14

Research and audience measurement companies include the

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

Question 15

Organizations that support the advertising industry include

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

Question 16

Ford Motor Company of Canada is an example of

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

Question 17

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 18

Canadian advertising clients can include

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

Question 19

An advertising manager and agency personnel meet to:

A) ensure that both parties agree on the basic direction of a project
B) negotiate the best compensation rate for the agency
C) trade employees between both organizations to maximize job opportunities
D) advise the agency on how to create the key elements of a project

Question 20

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 21

A briefing document includes

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

Question 22

The internet and mobile communications fall under which media category?

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

Question 23

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 24

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 25

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 26

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 27

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 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

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 30

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 31

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 planned intervals
D) provide international connections
E) invest minimal resources

Question 32

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 33

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 test research
E) personal selling analysis

Question 34

Broadcast is composed of which type of media?

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

Question 35

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 36

MacLaren McCann and Ogilvy and Mather are both examples of

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

Question 37

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 38

One of Canada's largest media buying agencies, responsible for 1.08 billion in 2013, is

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

Question 39

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 40

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 41

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 42

The agency commission system is viewed by some clients as flawed because:

A) it involves many hidden costs for the client
B) it is the most expensive method of compensation
C) agencies may recommend more expensive media options to increase their commissions
D) payment is due in full when signing on with an agency

Question 43

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 44

One type of advertising research is _____________ research.

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

Question 45

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 46

The standard media commission rate paid to advertising agencies has been

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

Question 47

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 48

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 49

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

A) the agency can work on a retainer
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

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 51

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 52

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 53

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 54

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 55

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 56

An agency team generally includes a

A) creative production manager
B) art director and copywriter
C) creative director
D) advertising manager
E) marketing manager

Question 57

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 58

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 59

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 60

The fee system of agency compensation

A) shares profits from sales increases between client and agency
B) is currently the preferred method of compensation by clients
C) does not recognize quality of work only effort
D) links agency compensation directly to performance

Question 61

Media support services include the CRTC.

Question 62

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 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

Media research is concerned with quantitative measures of media exposure.

Question 69

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

Question 70

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

Question 71

The advertising manager role is an advertising agency job.

Question 72

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

Question 73

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

Question 74

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

Question 75

The member of the agency team responsible for purchasing media positioning is typically the copywriter.

Question 76

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 77

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

Question 78

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

Question 79

Digital agencies offer services such as search engine marketing.

Question 80

For small advertisers, agencies can not only provide advertising, but marketing planning assistance as well.