Question 1

Radio and satellite are examples of broadcast media.

Accepted Answer

Both radio and satellite transmit their signals over a wide area, making them examples of broadcast media.

Question 2

Firms that maintain and manage large databases of mailing lists are known as digital/interactive agencies.

Accepted Answer

Firms that maintain and manage large databases of mailing lists are typically referred to as direct mailing or list brokerage companies. Digital/interactive agencies generally focus on providing digital marketing and advertising services.

Question 3

______ is used by organizations to get consumers committed to brands in a way that passive advertising cannot.

Accepted Answer

Crowdsourcing is a technique used by organizations to directly engage consumers and get them committed to brands in a way that passive advertising cannot. It involves getting input and feedback from consumers through various means such as social media, surveys, and contests. This approach can help build brand loyalty and drive sales by creating a sense of community and collaboration around the brand. Co-op advertising refers to a strategy where two or more companies share the cost of advertising to promote both of their brands. Phishing is a type of cyber attack where criminals try to steal personal information such as login credentials or financial information by posing as a trustworthy entity. Broadcasting refers to the dissemination of information to a large audience through various media channels such as television, radio, and the internet.

Question 4

Database consultants are particularly useful in planning coupon or direct mail campaigns.

Accepted Answer

Database consultants are experts in analyzing customer data and can help businesses target specific demographics for coupon or direct mail campaigns.

Question 5

A disadvantage of using media specialists is that they buy media in small quantities.

Accepted Answer

Media specialists typically buy media in large quantities, which often allows them to negotiate better rates and discounts.

Question 6

The four most prevalent agency compensation methods are commission,consultant,external facilitator,and production facilitator plans.

Accepted Answer

The four most prevalent agency compensation methods are commission, fee-based, incentive-based, and retainer arrangements.

Question 7

In which of the following areas is the federal government's spending on advertising and promotion concentrated?

Accepted Answer

The federal government's spending on advertising and promotion is concentrated in the area of armed forces recruitment. The government spends significant amounts of money on advertising campaigns to attract and recruit individuals into the armed forces. This includes advertising on TV, online, and in print media.

Question 8

Which of the following is true of crowdsourcing?

Accepted Answer

Crowdsourcing aims at getting consumers more involved with and committed to a brand by involving them in the process of creating content, generating ideas, or solving problems. It is a way of leveraging the power of the crowd to achieve business goals. The other options (A, C, and D) do not accurately describe crowdsourcing.

Question 9

_______ has emerged as the most significant form of consumer control over information creation and communication.

Accepted Answer

Social media has emerged as the most significant form of consumer control over information creation and communication. Social media platforms such as Facebook, Twitter, and Instagram have given the power to consumers to create and share their content, provide feedback and reviews about products/services, and communicate with businesses directly. This has disrupted traditional marketing methods and given consumers more power to influence the reputation and success of businesses.

Question 10

A typical markup charge for outside services is five to ten percent.

Accepted Answer

The typical markup charge for outside services can vary widely depending on the industry, service type, and specific business practices, but it is often significantly higher than five to ten percent, sometimes ranging from 20% to 50% or more to cover overhead and ensure profitability.

Question 11

With media clutter and fragmentation:

Accepted Answer

With media clutter and fragmentation, it has become increasingly difficult for advertisements to stand out and capture the attention of consumers. Therefore, a consistent and integrated brand message across all media channels becomes critical to cut through the clutter and make a lasting impact on consumers.

Question 12

A ______ is a general description for all organizations in the marketing channel of distribution that buy products to make them available to customers.

Accepted Answer

A trade reseller is a type of intermediary in the marketing channel of distribution that buys products from manufacturers or wholesalers and makes them available to customers. Other types of intermediaries can include distributors, retailers, and agents. Sponsors, media buyers, and media specialists are not directly involved in the distribution of physical products.

Question 13

Under the commission system,the rate of commission is raised to 25 percent for outdoor media.

Accepted Answer

The commission system's rates can vary widely and are not universally set at 25 percent for outdoor media; they depend on the agreement between the advertiser and the media owner or agency.

Question 14

Advertisers are also known as ______ by their advertising and promotion agency partners.

Accepted Answer

Advertisers are commonly referred to as clients by their advertising and promotion agency partners as they are the ones who hire and pay for the agency's services.

Question 15

A fee system is much like that used by consultants or attorneys,whereby the advertiser and the agency agree on an hourly rate for different services provided.

Accepted Answer

The statement accurately describes a fee system used by some advertising agencies.

Question 16

Advertisers do not like to handle their own public relations tasks because it requires highly specialized skills and talent not normally found within the company ranks.

Accepted Answer

PR tasks require specialized skills and talent, which may not be available within the company, hence advertisers prefer to outsource this task.

Question 17

Websites frequented by individuals with common interests where they can post facts,opinions,and personal experiences are known as _______.

Accepted Answer

Blogs are websites where individuals can post about a variety of topics, share their opinions, personal experiences, and facts with others who have similar interests. They allow for a sense of community and discussion among like-minded individuals. Paywalls are websites that require payment to access content, infomercials are usually video commercials that promote a product or service, and creative boutiques are businesses that offer creative services such as graphic design or web development.

Question 18

It is mandatory for designers and graphic specialists to be involved in strategy planning.

Accepted Answer

While designers and graphic specialists can provide valuable insights, their involvement in strategy planning is not mandatory and depends on the specific needs and structure of the project or organization.

Question 19

Grand Resorts has acquired the services of Elegant Inc.to develop advertisements for their organization.ElegantInc.has advised them to add a panoramic view to billboard ads and to portray tourists lounging by the sea.ElegantInc.is an example of a(n) ________.

Accepted Answer

Elegant Inc. is a creative boutique that provides creative and design services to clients. They are not focused on media buying or digital/interactive services, and there is no indication that they are an in-house agency for Grand Resorts.

Question 20

Barlow and Baley Inc.,an advertisement agency,handles the clients' needs from account planning to creative to media to production in both digital and traditional areas.Barlow and Baley Inc.is an example of a(n) _______.

Accepted Answer

A full-service agency offers a wide range of services, such as account planning, creative development, media planning, and production, for both traditional and digital advertising. Barlow and Baley Inc. offers all of these services, making it a full-service agency.

Quiz 2: The Structure of the Advertising Industry: Advertisers, advertising Agencies, and Support Organizations