Chuong/ Chapter 2: Marcom Situation Analysis: Multiple Choice

CHUONG/ CHAPTER 2: MARCOM SITUATION ANALYSIS
MULTIPLE CHOICE
1. Centralized systems have the following advantage _____.

a. facilitated communications
b. continuity in staff
c. more top management involvement
d. lower personnel requirements
e. all of the above
ANS: E PTS: 1 DIF: Easy REF: 30
OBJ: CDR2 TOP: CHAPTER2 MSC: Knowledge
2. In a centralized system, the advertising manager is responsible for all of the following
activities, except __________.
a. promotions operation
b. sales
c. budgeting ads
d. planning media
e. co-ordinating creative
ANS: B PTS: 1 DIF: Easy REF: 30
3. A drawback to the decentralized approach is ______.

a. brand managers lack training
b. brand managers lack experience
c. brand managers may focus on the short term
d. brand mangers end up competing for internal resources
e. all of the above
ANS: E PTS: 1 DIF: Difficult REF: 30
4. A major reason to use an in-house agency is ________.

a. you'll have stronger creative approaches
b. to employ more people
c. to create more experienced employees
d. to reduce costs
e. To be a stronger competitor
ANS: D PTS: 1 DIF: Easy REF: 30
5. The largest marketing communications company in the World is:___________.

a. WPP Group
b. Ogilvy & Mather
c. Young & Rubicam
d. Omnicom Group
e. J. Walter Thompson
ANS: A PTS: 1 DIF: Easy REF: 30
6. Which service is usually not provided by a full service agency?

a. planning advertising
b. sales promotions
c. direct marketing
d. marketing career counselling
e. creating advertising
7. The ______ is responsible for representing the agency in its dealings with the clients.
a. account supervisor
b. account executive
c. art director
d. production manager
e. graphic designer
8. The media department _________ .

a. writes stories for newspapers
b. maintains audio visual equipment
c. develops the media plan
d. monitors media coverage of stories
e. is responsible for media relations
ANS: C PTS: 1 DIF: Easy REF: 30
9. The research department ___ .

a. gathers information
b. pre-tests ads
c. implements studies
d. interprets information
e. all of the above
10. The actual layout which displays the sequence of panels or frames that depict the essence
of a TV commercial is known as a:
a. Print layout
b. Broadcast layout
c. storyboard
d. copyright
e. Blocking chart
11. The _______ department actually coordinates all phases of production and ensures that
ads are completed on time and that deadlines for submitting the ads to media are met.
a. traffic
b. research
c. accounting
d. media
e. copyright
12. The bulk of an agency's income goes to ___ .

a. media expenses
b. research expenses
c. production expenses
d. salary and benefits
e. office equipment
13. PR firms usually do not offer this service: ___

a. media buying
b. planning strategy
c. generating publicity
d. lobbying
e. managing special events
14. Media Buying firms usually do not offer this service: ___ .
a. buying air time
b. creative analysis
c. buying billboard space
d. target market media habits' analysis
e. media placement recommendations
15. A creative boutique _______ .

a. is a small firm with less than five employees
b. provides only creative services
c. offers one stop marketing services
d. has billings less than $100,000 per year
e. operates as a store front
16. Which compensation system is not primarily used in agency compensation?
a. cost-plus
b. incentive-based
c. barter
d. percentage charges
e. fixed fee
17. The usual (traditional) compensation using the commission system is __% of media
expenditures.
a. 15
b. 17.65
c. 8-10
d. 5
e. 20
18. Times have changed in the advertising business. Many ad agencies receive an average
commission on media of just ______ percent as opposed to the traditional rate.
a. 15
b. 17.65
c. 8-10
d. 5
e. 20
19. The emergence of a desire for accountability in the industry has led to:
a. Incentive based system
b. Fee arrangement
c. Commission system
d. Negotiated commission
e. None of the above
20. The primary reason why agencies lose clients is __.

a. poor performance or service
b. poor communication
c. personality conflicts
d. personnel changes
e. all of the above
21. Which of the following is usually not regarded as a participant in the integrated
marketing communications process:
a. advertising agency
b. media organizations
c. client
d. collateral services
e. advertising measurement services
22. Overall marketing strategy is the responsibility of ____ .

a. the account executive
b. the creative director
c. the client
d. the media director
e. the president of the agency

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CHUONG/ CHAPTER 2: MARCOM SITUATION ANALYSIS

1. Centralized systems have the following advantage _____.

3. A drawback to the decentralized approach is ______.

4. A major reason to use an in-house agency is ________.

5. The largest marketing communications company in the World is:___________.

6. Which service is usually not provided by a full service agency?

8. The media department _________ .

9. The research department ___ .

12. The bulk of an agency's income goes to ___ .

13. PR firms usually do not offer this service: ___

15. A creative boutique _______ .

20. The primary reason why agencies lose clients is __.

22. Overall marketing strategy is the responsibility of ____ .

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