Question 1

Of the product categories of automobiles,computers and software,drugs,food,personal care items,and telephone service,the category of automobiles has the highest average advertising-to-sales ratio.

Accepted Answer

A) True 
 B)False  False

Question 2

Advertising that teaches new uses for existing brands is known as _____.

Accepted Answer

A)   elaboration advertising
B)   top-of-mind awareness advertising
C)   primary demand advertising
D)   usage expansion advertising
E)   alternative use advertising D

Question 3

The difference between advertising and public relations is that,for advertising,media exposure is paid for by the advertiser,and for public relations it is not.

Accepted Answer

A) True 
 B)False  True

Question 4

Which agency compensation method is closely aligned with the advertiser's sales?

Accepted Answer

A)   Media-commission system
B)   Labor-based fee system
C)   Outcome-based programs
D)   Investment-based programs
E)   Equity-based programs

Question 5

Which product category has the highest average advertising-to-sales ratio?

Accepted Answer

A)   automobiles
B)   computers and software
C)   food
D)   personal care items
E)   drugs

Question 6

An ad price elasticity coefficient of 0.15 indicates that a one percent increase in ad expenditures increases volume by 15 percent.

Accepted Answer

A) True 
 B)False

Question 7

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.

Question 8

Creating better,more creative,and stronger advertising than competitors can lead to increased market shares.

Accepted Answer

A) True 
 B)False

Question 9

To distinguish advertising,which typically is conveyed via print,TV,radio,the Internet,etc.,from person-to-person forms of communication,including personal selling and word of mouth,the term _____ communication is used.

Accepted Answer

A)   mediated
B)   paid-for
C)   commercial
D)   technological
E)   focused

Question 10

Which of the following is a form of advertising agency compensation?

Accepted Answer

A)   commissions from media
B)   labor-based fee system
C)   outcome-based programs
D)   a and b only
E)   a, b, and c

Question 11

Primary demand is creating demand for a specific company's brand.

Accepted Answer

A) True 
 B)False

Question 12

Advertising management generally involves the organization that has a product or service to advertise and an independent agency,or agencies,responsible for creating ads,making media choices,and measuring results.

Accepted Answer

A) True 
 B)False

Question 13

One advantage of purchasing advertising services a la carte from specialized agencies is potential cost efficiencies.

Accepted Answer

A) True 
 B)False

Question 14

Usage expansion advertising consists of teaching new uses for existing brands.

Accepted Answer

A) True 
 B)False

Question 15

Over half of world-wide ad spending takes place in which country?

Accepted Answer

A)   United States
B)   Canada
C)   China
D)   Germany
E)   Japan

Question 16

Advertising strategy implementation involves setting objectives,devising budgets,creating messages,and developing the media strategy.

Accepted Answer

A) True 
 B)False

Question 17

Whether one chooses to invest or disinvest in advertising a brand depends largely on expectations about how advertising will influence a brand's sales volume and revenue.

Accepted Answer

A) True 
 B)False

Question 18

The most common advertising agency compensation method today is a labor-based fee system.

Accepted Answer

A) True 
 B)False

Question 19

An advertisement that was designed to keep a company's brand fresh in the consumer's memory performs the advertising function of _____.

Accepted Answer

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

Question 20

Rick's job at a major consumer goods manufacturer is to oversee the process of setting advertising objectives,devising budgets,message creation,and determining media strategy.Rick is involved in _____.

Accepted Answer

A)   formulating advertising strategy
B)   implementing advertising strategy
C)   account management
D)   marketing management
E)   implementing marketing strategy

Exam 9: Overview of Advertising Management

Of the product categories of automobiles,computers and software,drugs,food,personal care items,and telephone service,the category of automobiles has the highest average advertising-to-sales ratio.

Advertising that teaches new uses for existing brands is known as _____.

The difference between advertising and public relations is that,for advertising,media exposure is paid for by the advertiser,and for public relations it is not.

Which agency compensation method is closely aligned with the advertiser's sales?

Which product category has the highest average advertising-to-sales ratio?

An ad price elasticity coefficient of 0.15 indicates that a one percent increase in ad expenditures increases volume by 15 percent.

Which of the following is an advertising function?

Creating better,more creative,and stronger advertising than competitors can lead to increased market shares.

To distinguish advertising,which typically is conveyed via print,TV,radio,the Internet,etc.,from person-to-person forms of communication,including personal selling and word of mouth,the term _____ communication is used.

Which of the following is a form of advertising agency compensation?

Primary demand is creating demand for a specific company's brand.

Advertising management generally involves the organization that has a product or service to advertise and an independent agency,or agencies,responsible for creating ads,making media choices,and measuring results.

One advantage of purchasing advertising services a la carte from specialized agencies is potential cost efficiencies.

Usage expansion advertising consists of teaching new uses for existing brands.

Over half of world-wide ad spending takes place in which country?

Advertising strategy implementation involves setting objectives,devising budgets,creating messages,and developing the media strategy.

Whether one chooses to invest or disinvest in advertising a brand depends largely on expectations about how advertising will influence a brand's sales volume and revenue.

The most common advertising agency compensation method today is a labor-based fee system.

An advertisement that was designed to keep a company's brand fresh in the consumer's memory performs the advertising function of _____.

Rick's job at a major consumer goods manufacturer is to oversee the process of setting advertising objectives,devising budgets,message creation,and determining media strategy.Rick is involved in _____.