Question 1

An advantage of using a full-service advertising agency is the ability to obtain negotiating leverage with the media.

Accepted Answer

A) True 
 B)False

Question 2

Advertising's primary role is at times to facilitate other marcom efforts.

Accepted Answer

A) True 
 B)False

Question 3

_____ are involved in tactical decision making and day-to-day contact with brand managers and other client personnel.

Accepted Answer

A)  Management supervisors 
B)  Account executives 
C)  Client managers 
D)  Account planners 
E)  Project managers 
A)  Management supervisors 
B)  Account executives 
C)  Client managers 
D)  Account planners 
E)  Project managers

Question 4

When consumers have well-established brand preferences,as often happens during the decline stage of a product's life cycle,what is the most appropriate combination of advertising and price elasticity to apply?

Accepted Answer

A)  build image via increased advertising 
B)  grow volume via price discounting 
C)  decrease advertising and discount prices 
D)  maintain the status quo 
E)  increase advertising and/or discount prices 
A)  build image via increased advertising 
B)  grow volume via price discounting 
C)  decrease advertising and discount prices 
D)  maintain the status quo 
E)  increase advertising and/or discount prices

Question 5

Which of the following is consistent with the advertising = market power approach to advertising's role in the economy?

Accepted Answer

A)  Consumers become more price sensitive and buy best value. 
B)  Advertising does not change the way consumers value product attributes. 
C)  Consumers become brand loyal. 
D)  Consumers can compare competitive offerings easily. 
E)  Innovation is facilitated via new entrants. 
A)  Consumers become more price sensitive and buy best value. 
B)  Advertising does not change the way consumers value product attributes. 
C)  Consumers become brand loyal. 
D)  Consumers can compare competitive offerings easily. 
E)  Innovation is facilitated via new entrants.

Question 6

Advertising that is designed to deliver coupons and sweepstakes is performing the function of _____.

Accepted Answer

A)  informing 
B)  influencing 
C)  reminding 
D)  adding value 
E)  assisting other company efforts 
A)  informing 
B)  influencing 
C)  reminding 
D)  adding value 
E)  assisting other company efforts

Question 7

Advertising adds value to brands by influencing perceptions.

Accepted Answer

A) True 
 B)False

Question 8

A firm's sales volume is obtained by which of the following equations?

Accepted Answer

A)  Revenue - Expenses 
B)  Marginal Profit - Marginal Costs 
C)  Price × Production Units 
D)  Trial + Repeat 
E)  Marginal Revenue × Production Units 
A)  Revenue - Expenses 
B)  Marginal Profit - Marginal Costs 
C)  Price × Production Units 
D)  Trial + Repeat 
E)  Marginal Revenue × Production Units

Question 9

Rebecca's position at an advertising agency has her involved in tactical decision making and frequent contact with brand managers and other client personnel.Rebecca is a(n)_____.

Accepted Answer

A)  line manager 
B)  product manager 
C)  assistant supervisor 
D)  management supervisor 
E)  account executive 
A)  line manager 
B)  product manager 
C)  assistant supervisor 
D)  management supervisor 
E)  account executive

Question 10

_____ is the process of creating ad messages,selecting media in which to place the ads,and measuring the effects of the advertising efforts.

Accepted Answer

A)  Marketing management 
B)  Advertising management 
C)  Marcom management 
D)  Promotion management 
E)  Advertising 
A)  Marketing management 
B)  Advertising management 
C)  Marcom management 
D)  Promotion management 
E)  Advertising

Question 11

_____ is a measure of how responsive the quantity demanded is to changes in marketing variables such as price and advertising.

Accepted Answer

A)  Profitability 
B)  Elasticity 
C)  Production 
D)  Disinvesting 
E)  Connectivity 
A)  Profitability 
B)  Elasticity 
C)  Production 
D)  Disinvesting 
E)  Connectivity

Question 12

Ad spending in the United States has averaged approximately ______ percent of the country's gross domestic product.

Accepted Answer

A)  2.2 
B)  4.7 
C)  15 
D)  22 
E)  47 
A)  2.2 
B)  4.7 
C)  15 
D)  22 
E)  47

Question 13

Account executives are involved in tactical decision making and day-to-day contact with brand managers and other client personnel.

Accepted Answer

A) True 
 B)False

Question 14

There are three basic ways by which companies can add value to their offerings: innovating,altering consumer perceptions,and lowering price.

Accepted Answer

A) True 
 B)False

Question 15

What simplifying assumption does the elasticity equation for predicting market share make?

Accepted Answer

A)  Advertising is the sole determinant of market share. 
B)  Price is the sole determinant of market share. 
C)  The number of brands in the category is the sole determinant of market share. 
D)  Market share is determined by the combination of the price and advertising. 
E)  Market share is determined by the combination of number of brands and advertising. 
A)  Advertising is the sole determinant of market share. 
B)  Price is the sole determinant of market share. 
C)  The number of brands in the category is the sole determinant of market share. 
D)  Market share is determined by the combination of the price and advertising. 
E)  Market share is determined by the combination of number of brands and advertising.

Question 16

Which combination of advertising and price elasticity should be applied in a situation where there are mature market goods and consumers have complete information about most brands in the category?

Accepted Answer

A)  increase advertising and/or discount prices 
B)  maintain the status quo 
C)  build image via increased advertising 
D)  grow volume via price discounting 
E)  decrease prices and advertising expenses 
A)  increase advertising and/or discount prices 
B)  maintain the status quo 
C)  build image via increased advertising 
D)  grow volume via price discounting 
E)  decrease prices and advertising expenses

Question 17

Creative Advertising Agency buys $100,000 of magazine advertising space for its client.Using the historical standard media commission rate,how much will the agency be compensated for this media buy?

Accepted Answer

A)  $5,000 
B)  $10,000 
C)  $15,000 
D)  $20,000 
E)  $25,000 
A)  $5,000 
B)  $10,000 
C)  $15,000 
D)  $20,000 
E)  $25,000

Question 18

Most sophisticated companies are willing to place their bets on advertising's ability to boost revenues and thus enhance profits from the revenue-increase side rather than from the expense-reduction side.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an advertising function?

Accepted Answer

A)  informing 
B)  influencing 
C)  reminding 
D)  adding value 
E)  All of these are correct. 
A)  informing 
B)  influencing 
C)  reminding 
D)  adding value 
E)  All of these are correct.

Question 20

_____ is a paid,mediated form of communication from an identifiable source,designed to persuade the receiver to take some action,now or in the future.

Accepted Answer

A)  Public relations 
B)  Advertising 
C)  Communications 
D)  Marketing 
E)  Marcom 
A)  Public relations 
B)  Advertising 
C)  Communications 
D)  Marketing 
E)  Marcom

Exam 9: An Overview of Advertising Management

An advantage of using a full-service advertising agency is the ability to obtain negotiating leverage with the media.

Advertising's primary role is at times to facilitate other marcom efforts.

_____ are involved in tactical decision making and day-to-day contact with brand managers and other client personnel.

When consumers have well-established brand preferences,as often happens during the decline stage of a product's life cycle,what is the most appropriate combination of advertising and price elasticity to apply?

Which of the following is consistent with the advertising = market power approach to advertising's role in the economy?

Advertising that is designed to deliver coupons and sweepstakes is performing the function of _____.

Advertising adds value to brands by influencing perceptions.

A firm's sales volume is obtained by which of the following equations?

Rebecca's position at an advertising agency has her involved in tactical decision making and frequent contact with brand managers and other client personnel.Rebecca is a(n)_____.

_____ is the process of creating ad messages,selecting media in which to place the ads,and measuring the effects of the advertising efforts.

_____ is a measure of how responsive the quantity demanded is to changes in marketing variables such as price and advertising.

Ad spending in the United States has averaged approximately ______ percent of the country's gross domestic product.

Account executives are involved in tactical decision making and day-to-day contact with brand managers and other client personnel.

There are three basic ways by which companies can add value to their offerings: innovating,altering consumer perceptions,and lowering price.

What simplifying assumption does the elasticity equation for predicting market share make?

Which combination of advertising and price elasticity should be applied in a situation where there are mature market goods and consumers have complete information about most brands in the category?

Creative Advertising Agency buys $100,000 of magazine advertising space for its client.Using the historical standard media commission rate,how much will the agency be compensated for this media buy?

Most sophisticated companies are willing to place their bets on advertising's ability to boost revenues and thus enhance profits from the revenue-increase side rather than from the expense-reduction side.

Which of the following is an advertising function?

_____ is a paid,mediated form of communication from an identifiable source,designed to persuade the receiver to take some action,now or in the future.

An Overview of Integrated Marketing Communications

Enhancing Brand Equity and Accountability

Brand Adoption, Brand Naming and Intellectual Property Issues

Environmental, Regulatory and Ethical Issues

Segmentation, Targeting, and Positioning

The Communications Process and Consumer Behavior

The Role of Persuasion in IMC

Imc Objective Setting and Budgeting

Effective and Creative Ad Messages

Endorsers and Message Appeals in Advertising

Traditional Ad Media

Digital Media: Online, Mobile and App Advertising

Social Media

Direct Marketing, CRM, and Other Media

Media Planning and Analysis

Measuring Ad Message Effectiveness

Sales Promotion Overview and the Role of Trade Promotion

Consumer Sales Promotion: Sampling and Couponing

Consumer Sales Promotion: Premiums and Other Promotions

Public Relations, Content Marketing, Viral Marketing, and Sponsorships

Packaging, Pop Communications, and Signage

Personal Selling

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