Q&A Hero

Q: The question: "How much are our competitors spending on their social media campaigns?" is most related to what type of research? A) Market B) Consumer C) Creative D) Media E) Domain-centered

Q: During the _____ , advertising messages were primarily informational in nature. a. preindustrialization era (pre-1800)b. designer era (1980 to 1992)c. P.T. Barnum era (1875 to 1918)d. 1920s (1918 to 1929)

Q: The question: "Which ad has the greatest potential to turn nonusers into users?" is most related to what type of research? A) Market B) Consumer C) Creative D) Media E) Domain-centered

Q: During the preindustrialization era, advertisements appeared in _____. a. magazinesb. dailiesc. newsbooks d. periodicals

Q: The question: "How do perceptions of our brand differ among users and nonusers?" is most related to what type of research? A) Market B) Consumer C) Creative D) Media E) Domain-centered

Q: Which of the following is true about advertisements in the preindustrialization era?a. The advertisements were published in magazines.b. The advertisements in dailies were the most popular.c. The advertisements ushered in a dominant consumer culture. d. The messages were informational in nature.

Q: The question: "What are changes in teen attitudes over the past five years?" is most related to what type of research? A) Market B) Consumer C) Creative D) Media E) Domain-centered

Q: How did early marketers establish a degree of power with their brands?a. By getting consumers to identify them and pay higher prices for themb. By creating normal and ordinary products so that consumers would easily accept themc. By motivating general stores and grocers to replace branded products with unmarked products d. By reducing their prices of products

Q: The question: "What are key trends in the competitive environment?" is most related to what type of research? A) Market B) Consumer C) Creative D) Media E) Domain-centered

Q: By the late 1800s, manufacturers were developing brand names. This helped them:a. steer clear from advertising their products. b. lower their economies of scale.c. gain power.d. lower their prices of products.

Q: Successful advertising planning always builds upon a research-driven analysis of the marketplace.

Q: National firms started putting names on their products because:a. it would increase the economies of scale of their product.b. their incomes were protected by the principle of unlimited liability. c. brands commanded a higher price than commodities.d. strict government regulations required them to do so.

Q: Which of the following was a result of the principle of limited liability gaining acceptance in the 1840s?a. Lower number of businessmen investing money in ventures b. Higher risk for investors in business venturesc. Lower risk of losing shares in a corporation for businessmend. Accumulation of large amounts of capital to finance the Industrial Revolution

Q: During the 1840s, the ____ emerged as a way for individuals to reduce the risk of the loss of personal wealth when investing in business ventures. a. creation of business insuranceb. principle of limited liabilityc. concept of dividend distribution d. process of double taxation

Q: The foundation was laid for advertising to become a prominent part of the business environment when the Western world turned to as the foundation of economics.a. socialismb. communism c. capitalismd. syndicalism

Q: Which of the following is a major factor that gave rise to advertising?a. The industrial revolution b. The rise of socialismc. The reduced importance of branding d. The rise of social media

Q: Branded entertainment gets lesser First Amendment protection than ordinary advertising does. a. Trueb. False

Q: E-business is a form of e-advertising in which companies sell to household consumers. a. Trueb. False

Q: The mid-1990s presented insecure moments for advertisers heavily invested in traditional advertising. a. Trueb. False

Q: In the 1970s, cable programming grew in quality with several viewing options and advertisers learned how to reach more specific audiences. a. True b. False

Q: In the 1980s, the Saatchi and Saatchi ads were primarily politically neutral. a. Trueb. False

Q: Advertisements during the 1980s reflected traditional American values. a. Trueb. False

Q: Product/show blends for toys made regulation of television content more easy. a. True b. False

Q: In the 1970s, there was a growing concern over what effect $200 million a year in advertising had on children. a. Trueb. False

Q: The creative revolution was a period of time in which advertising started to take on the themes, language, and look of the revolutionary 1960s. a. True b. False

Q: After WWII and into the 1950s, ads began to take on an air of selfawareness, conveying the sentiment that "you know it's an ad and so do we." a. True b. False

Q: During the 1950s, a renewed consumer culture resumed, and advertising once again found the respectability and fame it had in its heyday of the 1920s. a. True b. False

Q: During the widespread poverty of the Great Depression, most segments of the population believed in the power of advertising. a. True b. False

Q: Advertisers responded to the Depression by adopting a tough, no-frills style in their ads. a. Trueb. False

Q: The advertising used by social organizations has a fundamentally different purpose compared to the advertising carried out by major multinational corporations.a. Trueb. False

Q: List and describe the four methods of agency compensation.

Q: Describe the three new types of consultants have emerged in recent years.

Q: At the local level, small retail shops deal only with household customers. a. Trueb. False

Q: Describe any three types of services commonly offered by advertising and promotion agencies.

Q: Describe the role advertisers play for trade resellers.

Q: What is crowdsourcing? Explain.

Q: Scenario2-6Pink Inc. has approached Ripple Effects with the layout of an advertisement for its new product that it plans to advertise. Ripple Effects has agreed to provide Pink Inc. with the cast and crew required to create the advertisement, choosing the location and the set up. Pink Inc. has employed Glamour, an advertising agency, to make the message theme of the advertisement more innovative. Glamour has charged the firm $50,000 per hour for its services.Pink Inc. has chosen to advertise using key chains and complementary pens with the firm's logos on them. The type of media chosen by Pink Inc. is referred to as ____.a. infomercials b. print mediac. interactive media d. support media

Q: Scenario2-6Pink Inc. has approached Ripple Effects with the layout of an advertisement for its new product that it plans to advertise. Ripple Effects has agreed to provide Pink Inc. with the cast and crew required to create the advertisement, choosing the location and the set up. Pink Inc. has employed Glamour, an advertising agency, to make the message theme of the advertisement more innovative. Glamour has charged the firm $50,000 per hour for its services.Glamour follows a ____system of compensation. a. commissionb. cost-plusc. markup charge d. fee

Q: Scenario2-6Pink Inc. has approached Ripple Effects with the layout of an advertisement for its new product that it plans to advertise. Ripple Effects has agreed to provide Pink Inc. with the cast and crew required to create the advertisement, choosing the location and the set up. Pink Inc. has employed Glamour, an advertising agency, to make the message theme of the advertisement more innovative. Glamour has charged the firm $50,000 per hour for its services.Glamour is an example of a _____. a. media specialistb. direct marketing agency c. creative boutiqued. digital/interactive agency

Q: Scenario2-6Pink Inc. has approached Ripple Effects with the layout of an advertisement for its new product that it plans to advertise. Ripple Effects has agreed to provide Pink Inc. with the cast and crew required to create the advertisement, choosing the location and the set up. Pink Inc. has employed Glamour, an advertising agency, to make the message theme of the advertisement more innovative. Glamour has charged the firm $50,000 per hour for its services.Ripple Effects is an example of a _____. a. media specialistb. creative boutiquec. database consultant d. production house

Q: Scenario2-5In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago consumers various "deals of the day." At the time, Groupon had a unique business modeleach day, one "groupon" would be offered in a particular city. If a certain number of people signed up for the offer, then the deal became available to all. Now, only two years later, the business continues to grow, and the service is being offered in several more U.S. cities. Google made a multi-billion dollar offer for the company that Mason turned down in the December of 2010. Continuing the company's rapid rise to success will be a challenging task for CEO Andrew Mason and his team because they will be the first to attempt to advertise the unique services. Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company's success.Groupon decides to find a firm that can help them in planning, preparing, and executing promotional campaigns. The company whose services Groupon is seeking is referred to as a(n):a. client.b. database consultant. c. sponsor.d. external facilitator.

Q: Scenario2-5In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago consumers various "deals of the day." At the time, Groupon had a unique business modeleach day, one "groupon" would be offered in a particular city. If a certain number of people signed up for the offer, then the deal became available to all. Now, only two years later, the business continues to grow, and the service is being offered in several more U.S. cities. Google made a multi-billion dollar offer for the company that Mason turned down in the December of 2010. Continuing the company's rapid rise to success will be a challenging task for CEO Andrew Mason and his team because they will be the first to attempt to advertise the unique services. Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company's success.Groupon decides to hire a full-service advertising agency to create a new campaign for the company. The ad agency agrees to be compensated if Groupon notices any positive change in sales and the number of customers on its site. This is an example of a(n) ____system of compensation.a. fixed feeb. commissionc. incentive-based d. markup charge

Q: Scenario2-5In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago consumers various "deals of the day." At the time, Groupon had a unique business modeleach day, one "groupon" would be offered in a particular city. If a certain number of people signed up for the offer, then the deal became available to all. Now, only two years later, the business continues to grow, and the service is being offered in several more U.S. cities. Google made a multi-billion dollar offer for the company that Mason turned down in the December of 2010. Continuing the company's rapid rise to success will be a challenging task for CEO Andrew Mason and his team because they will be the first to attempt to advertise the unique services. Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company's success.Groupon's management has budgeted $20,000 for social media advertising this year. How much can their advertising agency expect to earn if they are using a traditional commission system?a. $2,000 b. $3,000 c. $5,000 d. $8,000

Q: Scenario2-5In 2008, Chicago native Andrew Mason launched Groupon, a website that offered Chicago consumers various "deals of the day." At the time, Groupon had a unique business modeleach day, one "groupon" would be offered in a particular city. If a certain number of people signed up for the offer, then the deal became available to all. Now, only two years later, the business continues to grow, and the service is being offered in several more U.S. cities. Google made a multi-billion dollar offer for the company that Mason turned down in the December of 2010. Continuing the company's rapid rise to success will be a challenging task for CEO Andrew Mason and his team because they will be the first to attempt to advertise the unique services. Groupon needs to find ways to attract new users, and looking into new forms of advertising will be essential to the company's success.As Groupon's services differ depending on the city in which it is offered, its CEO decides that each variation needs to have a catchy slogan that relates to that particular market. Which of the following types of advertising agencies would likely be the best choice to create these slogans?a. A digital/interactive agency b. A media specialistc. A creative boutiqued. An production facilitator

Q: Scenario 2-4Caltech Corp. has a 15 minute advertisement that is aired on a local news channel explaining to the public the benefits of its product. Sparkles Inc. has provided Caltech Corp. airtime on its television network, and has offered to advertise its product on its website as an act of goodwill.Sparkles Inc. is an example of a _____. a. production facilitatorb. full-service agency c. media conglomerate d. fulfillment center

Q: Scenario 2-4Caltech Corp. has a 15 minute advertisement that is aired on a local news channel explaining to the public the benefits of its product. Sparkles Inc. has provided Caltech Corp. airtime on its television network, and has offered to advertise its product on its website as an act of goodwill.Caltech Corp. has a 15 minutes long advertisement that explains to the public about its product. This is an example of a(n)_____ .a. podcastb. electronic directory c. blogd. infomercial

Q: Scenario2-3Axel Corp., a new clothing line manufacturer, plans to reach out to the local fashion stores and wholesale distributors around the country. It also plans to offer a discount on its products for the first 100 customers and establish a coupon system for the first six months of sales. The marketing team is looking to create a television advertisement and is looking for ways to improve on the ideas that they have come up with for the ad.A(n) ____ can help Axel Corp. in designing and executing direct response advertising campaigns using traditional media. a. database consultantb. public relations firm c. fulfillment centerd. interactive agency

Q: Scenario2-3Axel Corp., a new clothing line manufacturer, plans to reach out to the local fashion stores and wholesale distributors around the country. It also plans to offer a discount on its products for the first 100 customers and establish a coupon system for the first six months of sales. The marketing team is looking to create a television advertisement and is looking for ways to improve on the ideas that they have come up with for the ad.Axel Corp. plans to to reach out to local fashion stores and wholesale distributors. Axel Corp. can achieve this by employing an advertising agency specialized in ____ .a. consumer sales promotionsb. trade-market sales promotions c. infomercialsd. a commission system

Q: Scenario2-3Axel Corp., a new clothing line manufacturer, plans to reach out to the local fashion stores and wholesale distributors around the country. It also plans to offer a discount on its products for the first 100 customers and establish a coupon system for the first six months of sales. The marketing team is looking to create a television advertisement and is looking for ways to improve on the ideas that they have come up with for the ad.Which of the following is most likely to provide Axel Corp. with a reasonable amount of media time at a rate lower than that provided by an advertiser?a. Production housesb. Sales promotion agencies c. Database consultantsd. Media specialists

Q: Scenario2-3Axel Corp., a new clothing line manufacturer, plans to reach out to the local fashion stores and wholesale distributors around the country. It also plans to offer a discount on its products for the first 100 customers and establish a coupon system for the first six months of sales. The marketing team is looking to create a television advertisement and is looking for ways to improve on the ideas that they have come up with for the ad.Which of the following agencies would help improve the ideas that Axel Corp. has for its advertisement?a. A direct marketing agency b. A creative boutiquec. A database agency d. A fulfillment center

Q: Scenario2-2Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major State University. Brush Strokes gets a majority of its business from the student population. It uses the services of a local full-service advertising agency to promote themselves. A large part of its marketing budget has been used in running small advertisements in the local and school newspapers at the beginning of each term. The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the University's football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching a larger portion of the student population, they have not come to any conclusions about the best way to accomplish this.The owners of Brush Strokes are concerned that their agency may be recommending television advertising because it would be profitable for the agency. Brush Strokes can avoid paying for ineffective advertising campaigns by changing to a system of compensation.a. commission b. feec. pay-for-results d. markup charge

Q: Scenario2-2Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major State University. Brush Strokes gets a majority of its business from the student population. It uses the services of a local full-service advertising agency to promote themselves. A large part of its marketing budget has been used in running small advertisements in the local and school newspapers at the beginning of each term. The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the University's football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching a larger portion of the student population, they have not come to any conclusions about the best way to accomplish this.Brush Strokes is looking for a way to increase sales. The advertising agency helps create an innovative message that will be conveyed through promotions and mobile marketing. Which of the following agency services is the company using?a. Billing servicesb. Creative servicesc. Administrative services d. Media buying services

Q: Scenario2-2Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major State University. Brush Strokes gets a majority of its business from the student population. It uses the services of a local full-service advertising agency to promote themselves. A large part of its marketing budget has been used in running small advertisements in the local and school newspapers at the beginning of each term. The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the University's football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching a larger portion of the student population, they have not come to any conclusions about the best way to accomplish this.The owners of Brush Strokes have called a meeting with their agency to determine ways in which it can benefit most from advertising. The agency has agreed to help in identifying the benefits of the brand, its target audience, the best competitive positioning, and developing a complete plan. In such a scenario, which of the following services is the agency offering?a. Media buying services b. Billing servicesc. Account servicesd. Marketing services

Q: Scenario2-2Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major State University. Brush Strokes gets a majority of its business from the student population. It uses the services of a local full-service advertising agency to promote themselves. A large part of its marketing budget has been used in running small advertisements in the local and school newspapers at the beginning of each term. The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the University's football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching a larger portion of the student population, they have not come to any conclusions about the best way to accomplish this.Which one of the following would Brush Strokes's fullservice agency be least qualified to handle?a. Researching about the buying trends of the company's customers b. Creating a 30-second television commercialc. Forecasting dividend earnings of stockholders d. Generating awareness about the brand

Q: Scenario2-1As one of the world's largest computer and technology developers, Dell, Inc. has never been a stranger to advertising. However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years. In the past, Dell found success promoting its products as some of the most inexpensive computer products in the market. However, the company's new ad campaign, which will be targeted toward more high-end users, will make no mention of product price. The company is looking to reinvent its image and believes that the first step in doing so is to revamp its outdated advertising campaign.Dell plans to strengthen its relationships with the media, industry associations, and its various competitors. In such a scenario, Dell would be hiring to help strengthen their relationships.a. a public relations firmb. a market research firm c. a creative boutiqued. a database agency

Q: Scenario2-1As one of the world's largest computer and technology developers, Dell, Inc. has never been a stranger to advertising. However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years. In the past, Dell found success promoting its products as some of the most inexpensive computer products in the market. However, the company's new ad campaign, which will be targeted toward more high-end users, will make no mention of product price. The company is looking to reinvent its image and believes that the first step in doing so is to revamp its outdated advertising campaign.To generate interest in its new line of computers, Dell hires a company to design a number of contests and incentive programs that will help build excitement for the new line. This company is an example of a(n):a. fulfillment center. b. database agency.c. sales promotion agency. d. market research firm.

Q: Scenario2-1As one of the world's largest computer and technology developers, Dell, Inc. has never been a stranger to advertising. However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years. In the past, Dell found success promoting its products as some of the most inexpensive computer products in the market. However, the company's new ad campaign, which will be targeted toward more high-end users, will make no mention of product price. The company is looking to reinvent its image and believes that the first step in doing so is to revamp its outdated advertising campaign.In order to reinvent the company's image, Dell puts together a team comprising members from its marketing department who will be responsible for every aspect of the advertising campaign. The company decides that involving employees in the campaign will allow it to maximize the profits generated from the new campaign. This team will be an example of a(n):a. creative boutique.b. full-service advertising agency. c. fulfillment center.d. in-house agency.

Q: Scenario2-1As one of the world's largest computer and technology developers, Dell, Inc. has never been a stranger to advertising. However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years. In the past, Dell found success promoting its products as some of the most inexpensive computer products in the market. However, the company's new ad campaign, which will be targeted toward more high-end users, will make no mention of product price. The company is looking to reinvent its image and believes that the first step in doing so is to revamp its outdated advertising campaign.Dell decides not to use a full-service advertising agency because it would like its own employees to take responsibility for the new ad campaign. However, fullservice agencies do provide a number of advantages one of these advantages is that they:a. are always large, employing thousands of people.b. can provide the physical facilities for broadcast production.c. have an array of talented professionals to meet all the needs of a client. d. are the only way to create an ad campaign.

Q: Which of the following is an example of premiums, a type of support media?a. Transit b. Cablec. Calendars d. Billboards

Q: Which of the following is an example of interactive media?a. Bannersb. Electronic directories c. Catalogsd. CD-ROMs

Q: Which of the following is an example of outdoor support media?a. Podcasts b. Billboards c. Catalogsd. Electronic directories

Q: Design Solutions has two television network channels and its monthly magazine, Bling, is the most popular fashion magazine in the country. It also has a number of websites for its television channels and online sports news. Design Solutions is an example of a ____.a. creative boutiqueb. media conglomerate c. media specialistd. digital/interactive agency

Q: Which of the following best describes a media conglomerate?a. It is a firm that operates multiple media combinations.b. It is a firm that is a specialist in one particular form of media.c. It is a firm that specializes solely in buying media time and space. d. It is a firm that uses print media instead of broadcast media

Q: ______ is one of the world's largest media conglomerates and provides broadcasting, film, music, cable, print, publishing, and a dominant Internet presence. a. News Corpb. Fox Broadcasting Company c. Sony Corporationd. Time Warner

Q: _____ is a high-speed technology that allows consumers to customize their programming and target very specific audiences.a. Transitb. Crowdsourcing c. Broadbandd. Cable

Q: _____ provide the physical facilities, including sets, stage equipment, and crews needed for broadcasting. a. Production housesb. Creative boutiques c. Fulfillment centersd. Interactive agencies

Q: Carmel Inc. has come up with the idea of creating a television ad for its new range of assorted cookies. The marketing executives approached RT Designs who will be filming the ad, preparing a set to record the ad, and employing an actress to play the role of a little girl enjoying her cookies. RT Designs is an example of a ____ . a. creative boutiqueb. production house c. fulfillment center d. media specialist

Q: Advertisers and their agencies rely primarily on external facilitators for:a. consumer research. b. media buying.c. assessing the effectiveness of promotional programs. d. production processes.

Q: A ___ helps firms identify and manage information that allow for the development of integrated marketing communications programs. a. media organizationb. sales agencyc. database consultant d. trade reseller

Q: Ocean Waves Resorts wants to purchase land and construct a resort on the shorefront in San Clemente. Ocean Waves would also like to construct a golf course and needs help in understanding local regulations and zoning restrictions in the country. Which of the following companies should Ocean Waves hire to assist with the project? a. A consulting firmb. A creative boutiquec. A digital/interactive agency d. A production facilitating firm

Q: A regional fast food chain called Platters is interested in opening a restaurant in a new market. The company plans to hire the services of a firm to collect the data needed to expand into the new market. In such a scenario, which of the following firm's services would it hire?a. A marketing research firm to conduct surveys to understand the potential market b. An advertising agency to create innovative adsc. A consultant to create message strategies and message themesd. Media organizations for placing ads in broadcast and print media to create awareness for the restaurant

Q: McMann and Young advertisers has been hired by Broadway Bicycles to assist with promotions for a chain of bicycle stores in Vermont. The agency has agreed that a certain level of awareness and interest in Broadway Bicycles will be generated in order to gain the sales targets the company desires, and they have agreed to be paid accordingly. This is an example of a system of compensation.a. markup charge b. commissionc. cost-plusd. pay-for-results

Q: Kowalski and Associates has been a successful mid-sized, full-service advertising agency for more than two decades. In an attempt to serve its clients more efficiently in a competitive marketplace, the agency has changed its compensation package to include payments based on results. In such a scenario, compensation packages for Kowalski and Associates are likely to be based on:a. brand recognition.b. workforce strength.c. competitive advantage. d. economies of scale.

Q: A compensation system that is based on the achievement of specific objectives of the client is known as a _____. a. pay-for-results compensationb. a markup chargec. commission system d. fee-based system

Q: Which of the following is an example of a fixed fee system of compensation? a. 15 percent of the total amount billed by XL Inc. was retained by Tesco advertisers as compensation for all costs in creating the advertisement. b. Largo advertisers was paid $50,000 by their client based on the effect their ads had on the sale of the company's products. c. Purple Corp. paid RL Designs $150,000 based on the positive responses it received for their promotions from their customers. d. HK advertisers and their client agreed on which supplies, materials, travel costs, and other expenses will be reimbursed.

Q: Harper & Kane advertising agency sets an hourly rate for the services it provides to its clients. This rate is based on the average salary of all the members in the creative department. Harper & Kane uses the system.a. commission b. cost-plusc. markup charge d. fee

Q: CloudNine, an advertisement agency, charged Sparkles Inc. $50,000 at the rate of $5,000 an hour for the ten hours it spent designing an advertisement for the firm's new product launch ad. Which of the following systems of compensation did CloudNine utilize?a. A fee systemb. A commission systemc. A markup charge system d. A pay-for-results system

Q: A compensation system that adds a percentage amount to a variety of services the agency purchases from outside suppliers is known as a ____ .a. markup charge b. fee systemc. pay-for-results compensation d. commission system

Q: Under the commission system, ____ percent of the total amount billed by a media organization is retained by the advertising agency as compensation for all costs in creating ads for the advertiser. a. 15b. 2 c. 30 d. 20

Q: Though many agencies no longer use the traditional commission system for compensation, Starr Agency does. Using the standard percentage rate, how much would Starr Agency receive for a bill of $500,000?a. $150,00 b. $125,000 c. $100,000 d. $75,000