Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
38. (p. 81) Which of the following statements is true about advertising agencies?
39. (p. 82) Which type of ad agency is most likely to assist the client in areas such as marketing
strategy and research, campaign planning and execution, and media planning and buying?
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
40. (p. 82) An ad agency that offers its clients a complete range of marketing, communication,
and promotion services is known as a(n):
41. (p. 82) AdonDemand, a new advertising agency in San Diego, is offering its clients various
services such as marketing, sales promotion, research, promotion, package designing, direct
marketing, publicity along with planning, creating, and producing the advertising. Company
A is a(n):
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
42. (p. 82) Which of the following statements is true about account services?
43. (p. 82) The _____ is responsible for understanding the advertiser’s marketing and
promotional needs and interpreting them to agency personnel.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
44. (p. 82) The agency person who is the focal point of the agency-client relationship is the:
45. (p. 83) The function of gathering, analyzing and interpreting information that is useful in
developing advertising is the responsibility of the agency’s _____ department.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
46. (p. 83) Greg is hired into the marketing services department of a full-service advertising
agency. His job profile includes gathering information relating to the client’s product and
service that can be used in the development of the creative strategy. He has to collect
information from various other departments in the firm to gain a better understanding of the
client’s target audience. Which position has Greg been hired for?
47. (p. 83) The _____ is a document that the agency’s creative department uses to guide the
development of advertising ideas and concepts.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
48. (p. 83) Account planning has become a very important and demanding function in many
agencies because:
49. (p. 83) Which of the following departments of the full-service agency, analyzes, selects, and
contracts for space or time in the media that will be used to deliver the client’s advertising
message?
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
50. (p. 83) Which of the following statements about the role of ad agency media departments is
true?
51. (p. 85) _____ are the individuals who conceive the ideas for the ads and write the advertising
message.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
52. (p. 85) The _____ is responsible for creating the visual portion of an ad such as layouts and
the commercial storyboards.
53. (p. 85) _____ are drawings that show what the print ad will look like and from which the
final artwork will be produced.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
54. (p. 86) Which department within an advertising agency supervises the casting of people to
appear in the ad and the setting for the scenes?
55. (p. 86) The _____ department coordinates all phases of production to ensure the proper
progression of the advertisement.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
56. (p. 86) Most of an advertising agency’s expenses are in the area of:
57. (p. 86) A _____ is an agency organizational structure in which each functional area is set up
as a separate department. The parts of this structure are called on as needed to perform their
particular specialty and serve all of the agency’s clients.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
58. (p. 86) Jackson & Morris is an advertising agency that handles each of its clients by
assigning individuals from various departments to work together as a team on their accounts.
The agency is using a _____ organizational system.
59. (p. 86) An advertising agency that wants its employees to develop expertise in servicing a
variety of accounts should use a(n) _____ structure.
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
60. (p. 87) A(n) _____ is an agency that specializes in and provides only creative services.
61. (p. 87) Creative boutiques are agencies that:
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
62. (p. 87) Which of the following statements is true about creative boutiques?
63. (p. 87) Independent companies that specialize in the purchase of radio and television time
are known as:
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
64. (p. 87) Clients and creative boutiques that have developed their own media strategies may
employ _____ to execute them.
65. (p. 87) Which of the following statements about creative boutiques is true?
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
66. (p. 88) The traditional method of compensating ad agencies is through:
67. (p. 88) Agency compensation under the commission system is based on:
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
68. (p. 88) An advertising agency works with its clients under a traditional commission system
compensation arrangement. The agency places a 30-second spot for one of its clients on an
episode of Friends, which costs $500,000. A reasonable estimate of the agency’s commission
on this space buy is:
69. (p. 89) Opponents of the agency commission system argue this system is not effective
because:
Chapter 03 – Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing
Communication Organizations
70. (p. 89) Which of the following statements about changes in the way advertising agencies are
being compensated is true?
71. (p. 89) A major argument put forth by defenders of the commission system is that a
commission: