Question 1

The four distinct stages of the life cycle of the agency/client relationship are prerelationship,development,maintenance,and termination.

Accepted Answer

In the advertising business, the life cycle of the agency-client relationship passes through four distinct stages: prerelationship, development, maintenance, and termination.

Question 2

A hardware store mails an advertising flyer to all the residents in its community.This is an example of _____ advertising.

Accepted Answer

Local advertising is done by local businesses targeting customers in their geographic area.

Question 3

Which of the following types of local advertising is most likely to be used by a franchise of a food chain store to recruit new employees?

Accepted Answer

Classified advertising is used to locate and recruit new employees, offer services, or sell or lease merchandise.

Question 4

Advertising is organized around four distinct groups.The _____ group includes the photographers,the illustrators,video production houses,and digital service bureaus.

Accepted Answer

The suppliers include the photographers, illustrators, printers, digital service bureaus, color film separators, video production houses, Web developers, and others who assist both advertisers and agencies in preparing advertising materials.

Question 5

_____ advertising attempts to create a favorable long-term perception of the business as a whole,not just of a particular good or service.

Accepted Answer

Institutional advertising attempts to create a favorable long-term perception of the business as a whole, not just of a particular product or service.

Question 6

The biggest problem for in-house agencies is that they do not usually perform all the tasks of independent full-service agencies.

Accepted Answer

The biggest problem for in-house agencies is loss of objectivity. In the shadow of internal politics, linear-thinking policymakers, and harangues from management, ads may become insipid contemplations of corporate navels rather than relevant messages to customers.

Question 7

Retailers use television,catalogs,the Internet,and magazines to transmit their advertising message to consumers.In terms of the four distinct groups around which advertising is organized,retailers are using:

Accepted Answer

The media sell time (on radio and TV) and space (in print, outdoor, or digital media) to carry the advertiser's message to the target audience.

Question 8

Which of the following statements about local advertising is true?

Accepted Answer

Local advertising is critically important because most consumer sales are made (or lost) locally.

Question 9

The advertising business has evolved into four distinct groups.Which of the following is not one of these groups?

Accepted Answer

The advertising business has evolved into four distinct groups. They are advertisers, agencies, suppliers, and media.

Question 10

Transit advertising is an effective and inexpensive medium to reach the public while they're in the retail neighborhood.

Accepted Answer

Transit advertising (bus, taxi, and subway advertising) is an effective and inexpensive medium to reach the public while they're in the retail neighborhood.

Question 11

Advertisers use _____ advertising in the newspaper to locate and recruit new employees,to offer services,or to sell or lease new and used merchandise.

Accepted Answer

Advertisers use classified advertising in the newspaper for many reasons: to locate and recruit new employees, offer services (such as those of an employment agency or business opportunity broker), or sell or lease merchandise (such as cars, real estate, and office equipment).

Question 12

Which of the following is an example of product advertising?

Accepted Answer

Product advertising promotes a specific product or service and stimulates short-term action while building awareness of the business. Choices a, b, d, and e are all examples of institutional advertising, which attempts to create a favorable long-term perception of the business as a whole, not just of a particular product or service.

Question 13

The straight-fee method of pricing the services of an ad agency is also called the retainer method.

Accepted Answer

In the straight-fee or retainer method, agencies charge for all their services, either by the hour or by the month, and credit any media commissions earned to the client.

Question 14

A speculative presentation allows an advertiser to see what the agency can do for it before signing any contractual agreement.

Accepted Answer

Some advertisers ask for or imply that they want a speculative presentation, meaning they want to see what the agency will do before they sign on.

Question 15

A petroleum company ran a series of commercials in which they asked consumers how they could improve and preserve the natural environment.After consumers responded to the ad,a spokesperson explained how the company was doing more than its share to protect the environment.These commercials are examples of _____ advertising.

Accepted Answer

Institutional advertising attempts to create a favorable long-term perception of the business as a whole, not just a particular product or service.

Question 16

_____ advertising promotes a specific good or service and stimulates short-term action while building awareness of the business.

Accepted Answer

Product advertising promotes a specific product or service and stimulates short-term action while building awareness of the business.

Question 17

The three primary types of ads placed in local media are product,classified,and:

Accepted Answer

Most ads placed in local media are product, institutional, or classified advertising.

Question 18

During the first week of November,local pharmacies ran ads to announce they were selling all of their Halloween candy and decorations at half their original prices.This advertisement is an example of:

Accepted Answer

Clearance advertising is a special form of sale advertising used to make room for new product lines or new models and to get rid of slow-moving lines, floor samples, broken or distressed merchandise, or out-of-season items.

Question 19

Advertisers are often referred to as:

Accepted Answer

Advertisers are also referred to as clients.

Question 20

Which of the following groups sell time and space to carry the advertiser's message to the target audience?

Accepted Answer