Question 1

Media buying services have found a niche by specializing in the analysis and purchase of advertising time and space.

Accepted Answer

Media buying services focus on analyzing and purchasing advertising time and space, which makes it a specialized niche.

Question 2

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

Accepted Answer

In smaller companies with low ad budgets, agency evaluations are often done informally and subjectively, without the use of formal metrics or tools.

Question 3

In the most common example of a centralized system, the advertising or marcom manager controls the entire promotions operation.

Accepted Answer

In a centralized system, a single individual or department typically has control over the entire operation, and in the case of marketing promotions, that is often the advertising or marcom manager.

Question 4

An advantage of the centralized system is that each brand receives concentrated managerial attention, resulting in faster response to both problems and opportunities.

Accepted Answer

The answer of An advantage of the centralized system is...

Question 5

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. While input may come from various sources, someone within the firm must take on the responsibility of managing the advertising and promotion program.

Question 6

The creative services department of an agency analyzes, selects, and contracts for space or time in the media that will be used to deliver the client's advertising message.

Accepted Answer

The creative services department is responsible for developing and producing the advertising content, not for media buying or planning. The task of analyzing, selecting, and contracting for media space or time is typically handled by the media planning or media buying department within an agency.

Question 7

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 8

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

Accepted Answer

Digital/interactive agencies and public relations firms are examples of organizations that specialize in providing marketing communication services.

Question 9

Nearly two-thirds of the domestic billings are handled by 900 of the smallest agencies in the United States.

Accepted Answer

The majority of domestic billings are handled by a small number of large agencies rather than by the smallest agencies. Typically, in industries like advertising, a few large firms dominate the market share.

Question 10

Account planners work with the client as well as other agency personnel, including the account executives, creative team members, research department personnel, and media specialists.

Accepted Answer

This statement is true. Account planners collaborate with various personnel within an agency to develop effective communication strategies that meet the client's objectives.

Question 11

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

Accepted Answer

The layout of a print ad is typically known as a layout, not a storyboard. A storyboard usually refers to a sequence of sketches or images used to plan out the visual aspects of a video or animation.

Question 12

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 owned and operated by the company, which means that they have direct access to top management and can work more closely with them to align marketing strategies with organizational goals. This can result in more effective marketing communications and faster decision-making.

Question 13

The primary function of promotional planners is to provide information or entertainment to their subscribers, viewers, or readers.

Accepted Answer

The primary function of promotional planners is to create and manage marketing campaigns that promote a product, service, or brand, aiming to increase awareness, interest, and sales, rather than primarily providing information or entertainment.

Question 14

Retail giant Target has an internal creative department that handles the design of its weekly circulars, direct-mail pieces, in-store displays, promotions, and other marketing materials. This is an example of an in-house agency.

Accepted Answer

The statement is true. The fact that Target has an internal creative department qualifies it as an in-house agency.

Question 15

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 often provide additional services to large clients at no extra charge, making the system more flexible than it may seem.

Question 16

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

A cost-plus system is based on the principle of reimbursing all expenses incurred by the agency plus an agreed-upon percentage of profit. Therefore, the agency must keep detailed records of all costs incurred while working on a client's account in order to calculate the final bill.

Question 17

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 role of account representatives is evolving rather than disappearing. They play a crucial role in maintaining the relationship between agencies and their clients, understanding client needs, and ensuring communication is effective. Direct liaison does not eliminate the need for skilled intermediaries who can manage and nurture these relationships.

Question 18

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

Accepted Answer

Superagencies were formed through the consolidation and merging of smaller advertising agencies into larger, more comprehensive organizations, not through disintegration.

Question 19

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

A decentralized organizational system is often used when companies have several different divisions or product lines to manage, giving more autonomy to each division or product line. This allows for more flexibility and efficient decision-making.

Question 20

Programmatic buying has declined in recent years.

Accepted Answer

Programmatic buying has actually increased in recent years, with more and more advertising spend being allocated to programmatic channels.

Quiz 3: Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing