Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
1. (p. 69) _____ are the major participants in the integrated marketing communications process.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
2. (p. 69) Company A has hired company B to take care of its advertising needs. All company A
has to do is provide its products and funds to company B to execute its advertising
requirements.
Company A is known as a(n):
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
3. (p. 69) The term client, in the ad agency industry, refers to the:
4. (p. 69) A(n) _____ is an outside firm that specializes in the creation, production and/or
placement of the communications message and that may provide other marketing and
promotions related services.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
5. (p. 70) From the perspective of a promotional planner, the primary purpose of most media is
to:
6. (p. 70) A(n) ______ primary function is to provide information or entertainment to its
audience.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
7. (p. 70) Company A is a major participant in the advertising and promotion process. It attracts
various others companies who buy space and time with them which they can provide at
discounted rates. Company A helps these companies reach the target market effectively with
the message. Company A is a(n):
8. (p. 70) Direct-marketing agencies, sales promotion agencies and public relations firms are
examples of:
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
9. (p. 70) _____ perform specialized functions that the various participants in integrated
marketing communication process use in planning and executing advertising and other
promotional functions.
10. (p. 71) Which of the following statements is true about the role of top management in the
advertising and promotion decision making process?
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
11. (p. 71) Under a centralized organizational system, the responsibility for planning and
controlling the advertising and promotional function lies with the:
12. (p. 71) Under a centralized organizational arrangement, which of the following is the
advertising manager responsible for?
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
13. (p. 71) Which of the following is true about the functions of the advertising manager in a
centralized system?
14. (p. 71) In a centralized organizational arrangement, the _____ department is responsible for
developing promotional plans that will be approved by management and recommending a
promotions program based on the overall marketing plan, objectives, and budget.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
15. (p. 71) When a _____ is used, most of a company’s advertising and promotional activities
will be the responsibility of the advertising manager.
16. (p. 72) Problems associated with a(n) _____ include difficulty of the advertising department
to understand the overall marketing strategy for the brand.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
17. (p. 72) Which of the following can be stated a responsibility of a brand manager in a
decentralized marketing system?
18. (p. 73) Under a decentralized system, the advertising department is generally a part of _____
department.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
19. (p. 73) The role of the advertising department in a company using a decentralized product
management system is to:
20. (p. 72) In a decentralized system of advertising organization, the responsibility of planning,
implementing, and controlling the marketing program for an individual brand belongs to the:
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
21. (p. 74) Individuals who have the responsibility of coordinating efforts of various product or
brand managers for a particular product class are known as:
22. (p. 74) A _____ advertising organizational system has the advantages of concentrated
managerial attention, rapid response to problems, and increased flexibility.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
23. (p. 74) PrimeTime is a multi-product firm that follows an advertising organizational system
where the manager has the responsibility for the marketing program, including the
identification of target markets as well as the development of integrated marketing
communications programs that will differentiate the brands and ensures that each brand
receives concentrated managerial attention. However, each brand may compete against other
brands in the same company. Which advertising organizational system is PrimeTime
following?
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
24. (p. 74) Which of the following describes a limitation associated with the decentralized
organizational structure for advertising?
25. (p. 75) A(n) _____ is an advertising agency that is set up, owned, and operated by the
advertiser.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
26. (p. 75) When the client assumes the entire promotional function, it is said to operate:
27. (p. 75) Which of the following is an advantage associated with an in-house advertising
agency?
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
28. (p. 75) A major reason why some companies choose to use an in-house agency is to:
29. (p. 78) Which of the following is an advantage of an in-house agency?
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
30. (p. 75) Company A used to rely on outside advertising agencies for its advertising needs but
since it is a global company, it is now worried that using external agencies may lead to non-
consistency of its brand image. The years on experience with outside agencies has made it
realize that it results in wastage of both time and money. It also wants to maintain tighter
control over its advertising and promotion activities. Which of the following advertising
agencies should it adopt?
31. (p. 78) Lack of long-term objectivity, flexibility, and creativity are a few of the reasons why
a company might move away from:
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
32. (p. 78) A company that uses an in-house agency might turn its advertising and promotion
tasks over to an outside agency to:
33. (p. 79) Which of the following statements about the U.S. advertising agency business is
true?
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
34. (p. 79) Which of the following is the amount of client money that agencies spend on media
purchases and other equivalent activities?
35. (p. 80) Superagencies were formed:
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
36. (p. 80) Which of the following statements is true about superagencies?
37. (p. 81) Which of the following statements explain why an organization would want to use an
external advertising agency?