Question 1

Your client's ad runs in an issue of Leisure Gourmet magazine and costs $10,000. What is the standard agency commission for the placement?

Accepted Answer

A) $1,000 
B) $1,500 
C) $1,765 
D) $8,500 
E) $1,265

Question 2

Before a U.S. advertising agency establishes an office abroad, what must it consider?

Accepted Answer

A) similarities in buying habits 
B) differences in quality of life for transferred U.S. executive 
C) differences in mores 
D) similarities in education of prospective personnel 
E) similarities in business laws

Question 3

Most traditional agencies today are treated by most clients as:

Accepted Answer

A) an asset rather than liability or expense. 
B) vendor-order takers. 
C) the sole source for solving marketing/advertising problems. 
D) partners sharing the stewardship of the brand. 
E) strategic vendors.

Question 4

A group of people drawn together from all agency affiliate organizations and whose purpose is to create ideas rather than ads is:

Accepted Answer

A) a service cluster. 
B) a communications integration team. 
C) an in-house generalist team. 
D) an agency conglomeration. 
E) a creative clustering.

Question 5

According to Brad Majors, CEO of Brand Reps, LLC, large/public agencies using economies of scale will more profitably service smaller clients.

Accepted Answer

A) True 
 B)False

Question 6

In a traditional agency, the ________ is responsible for the relationship between the agency and the client.

Accepted Answer

A) CEO 
B) account services vice president 
C) marketing services vice president 
D) finance and management vice president 
E) IMC director

Question 7

Explain what a full-service agency is and how it proceeds once it has been assigned a new product or service by its client.

Accepted Answer

The answer of Explain what a full-service agency is and...

Question 8

One of the major changes that began in the mid-1990s was the way advertising agencies handle:

Accepted Answer

A) media. 
B) administrative services. 
C) creative services. 
D) financial services. 
E) reengineering.

Question 9

Discuss the major trends that occurred in advertising from 1980 to 2000.

Accepted Answer

The answer of Discuss the major trends that occurred in...

Question 10

Regarding smaller agencies, Majors indicates their key to success is:

Accepted Answer

A) strong planning. 
B) strong financial management. 
C) strong research. 
D) strong creative. 
E) strong client management.

Question 11

After research is completed in a full-service agency, which department is likely to lead the way in setting objectives and developing strategy?

Accepted Answer

A) account planning 
B) account management 
C) creative 
D) traffic 
E) evaluation

Question 12

Which of the following would NOT pertain to an agency of record?

Accepted Answer

A) make the corporate contracts under which other agencies issue their orders 
B) coordinate the total media buy for products 
C) vote shares in the client company according to its managements' desires 
D) maintain a record of all advertising placed 
E) coordinate programming of products in a network buy

Question 13

Huey+Partners has shown the importance of a clear and distinguishable point of difference for both agencies and their output-in their case, creativity.

Accepted Answer

A) True 
 B)False

Question 14

In a(n)________ relationship, large marketers expect to be able to count on an advertising team to work solely on their brand with their stable of experts in that particular industry, including other agencies.

Accepted Answer

The answer of In a(n)________ relationship, large marketers expect to...

Question 15

Today, agencies not only receive the standard agency commission from media for space bought for clients, but they also bill other provided services at 17.65 percent of gross.

Accepted Answer

A) True 
 B)False

Question 16

The type of compensation an agency can ask for based on an agreed-upon goal is called a(n):

Accepted Answer

A) tradeout fee. 
B) output fee. 
C) performance fee. 
D) controlled fee. 
E) acceptance fee.

Question 17

In a traditional advertising agency, the ________ department is established to keep the work on the account flowing on schedule.

Accepted Answer

The answer of In a traditional advertising agency, the ________...

Question 18

Which of the following is NOT a leading mega-agency holding company today?

Accepted Answer

A) Omnicom Group 
B) WWP Group 
C) Dentsu 
D) Interpublic 
E) Publicis Groupe

Question 19

Which of the following is NOT an issue facing advertising agencies today?

Accepted Answer

A) compensation 
B) reorganization 
C) ignoring integrated communication 
D) client loyalty 
E) media fragmentation

Question 20

In contrast to a traditional agency, a reengineered advertising agency uses a team approach to serve the clients' needs and to solve the clients' problems.

Accepted Answer

A) True 
 B)False

Exam 5: The Advertising Agency, Media Services, and Other Services

Your client's ad runs in an issue of Leisure Gourmet magazine and costs $10,000. What is the standard agency commission for the placement?

Before a U.S. advertising agency establishes an office abroad, what must it consider?

Most traditional agencies today are treated by most clients as:

A group of people drawn together from all agency affiliate organizations and whose purpose is to create ideas rather than ads is:

According to Brad Majors, CEO of Brand Reps, LLC, large/public agencies using economies of scale will more profitably service smaller clients.

In a traditional agency, the ________ is responsible for the relationship between the agency and the client.

Explain what a full-service agency is and how it proceeds once it has been assigned a new product or service by its client.

One of the major changes that began in the mid-1990s was the way advertising agencies handle:

Discuss the major trends that occurred in advertising from 1980 to 2000.

Regarding smaller agencies, Majors indicates their key to success is:

After research is completed in a full-service agency, which department is likely to lead the way in setting objectives and developing strategy?

Which of the following would NOT pertain to an agency of record?

Huey+Partners has shown the importance of a clear and distinguishable point of difference for both agencies and their output-in their case, creativity.

In a(n)________ relationship, large marketers expect to be able to count on an advertising team to work solely on their brand with their stable of experts in that particular industry, including other agencies.

Today, agencies not only receive the standard agency commission from media for space bought for clients, but they also bill other provided services at 17.65 percent of gross.

The type of compensation an agency can ask for based on an agreed-upon goal is called a(n) :

In a traditional advertising agency, the ________ department is established to keep the work on the account flowing on schedule.

Which of the following is NOT a leading mega-agency holding company today?

Which of the following is NOT an issue facing advertising agencies today?

In contrast to a traditional agency, a reengineered advertising agency uses a team approach to serve the clients' needs and to solve the clients' problems.