Question 1

When an advertising agency takes its compensation as an ownership share in a client's company, the deal is called

Accepted Answer

A)   an equity contract.
B)   a commission contract.
C)   a performance contract.
D)   a common-law contract.E) A) and D)
F) B) and D)

Question 2

Which of the following is NOT a redundancy technique in advertising?

Accepted Answer

A)   barrages
B)   bunching
C)   positioning
D)   multimedia trailingE) B) and D)
F) None of the above

Question 3

Targeting ads for specific consumer groups is called

Accepted Answer

A)   positioning.
B)   lowest common denominator.
C)   unique selling proposition.
D)   viral advertising.E) B) and C)
F) C) and D)

Question 4

Advertising contributes to prosperity by

Accepted Answer

A)   discouraging consumption.
B)   discouraging product innovation.
C)   encouraging wasteful purchases.
D)   inspiring people to greater productivity.E) A) and D)
F) A) and C)

Question 5

A fairly recent advertising agency compensation arrangement is the equity contract.

Accepted Answer

A) True 
 B)False

Question 6

Who championed positioning?

Accepted Answer

A)   David Ogilvy
B)   Wayland Ayer
C)   Jack Trout
D)   Jim VicaryE) A) and B)
F) A) and C)

Question 7

Newspapers, magazines, radio, television, and the Internet are the economic engines that drive American advertising.

Accepted Answer

A) True 
 B)False

Question 8

The advertising commission system broke down in the 1990s.

Accepted Answer

A) True 
 B)False

Question 9

The acronym CPM, standing for "customers per medium," is an index for comparing the effectiveness of ads appearing in different media.

Accepted Answer

A) True 
 B)False

Question 10

Bob Greenberg, who might be called an advertising guru, operates on a philosophy that

Accepted Answer

A)   ads are best used sandwiched into entertainment products.
B)   ads should be entertainment themselves.
C)   traditional advertising will rise again.
D)   new ad strategies are fads that will fade quickly.E) B) and C)
F) B) and D)

Question 11

Describe and explain the differences between any three of the common redundancy techniques used in advertising.

Accepted Answer

The three common redundancy techniques u...

Question 12

As of 2010, newspapers continued to lead all other media in advertising revenue.

Accepted Answer

A) True 
 B)False

Question 13

In advertising, the performance contract system of payment entails

Accepted Answer

A)   billing clients a certain percentage above the media charge for time and space.
B)   billing for expenses and modest profit with extra compensation for successful campaigns.
C)   a fee arrangement where agencies bill clients for expenses as they are incurred.
D)   cash up front but with a guaranteed refund if goals aren't met.E) B) and C)
F) All of the above

Question 14

Discuss why the traditional 15% ad agency commission which had lasted for well over 100 years has now fallen out of favor and is being adjusted or replaced by other payment schemes. Explain its relative advantages and disadvantages for both the advertisers and the agencies.

Accepted Answer

The traditional 15% ad agency commission...

Question 15

The penny press was able to keep the cost for a newspaper at a penny by relying on advertising revenue.

Accepted Answer

A) True 
 B)False

Question 16

Match each person on the left with the appropriate accomplishment in the right column.
-Josiah Wedgwood

Accepted Answer

A)   Coined the term and promoted "unique selling proposition" 
B)   Championed brand imaging
C)   His Pepsi endorsement led other celebrities to endorse products
D)   Printed first advertisement
E)   Celebrity endorser for erectile dysfunction medicationsF)  Developed the idea of positioningG)  Founded BzzAgent for word-of-mouth advertisingH)  Credited with establishing the first brand name productI)  Founded first ad agencyJ)  First newspaper publisher to rely on advertising revenuesK) A) and H)
L) C) and I)

Question 17

Advertising plays an even more important role in authoritarian societies than in democratic ones.

Accepted Answer

A) True 
 B)False

Question 18

The most common factor used to start selecting media to carry advertisements is CPM.

Accepted Answer

A) True 
 B)False

Question 19

Many brand name companies are continually increasing their ad budgets to combat the emergence of store brands.

Accepted Answer

A) True 
 B)False

Question 20

Explain why advertising works well in a democratic society and may even be critical to it, but doesn't work very well in an authoritarian society and may not be needed.

Accepted Answer

Advertising works well in a democratic s...

Exam 11: Advertising

Many brand name companies are continually increasing their ad budgets to combat the emergence of store brands.

Correct AnswerverifiedShow Answer

The advertising commission system broke down in the 1990s.

Correct AnswerverifiedShow Answer

Which of the following is NOT a redundancy technique in advertising?

Correct AnswerverifiedShow Answer

Explain why advertising works well in a democratic society and may even be critical to it, but doesn't work very well in an authoritarian society and may not be needed.

Correct AnswerAnswered by ExamLex AIAdvertising works well in a democratic s...View AnswerShow Answer

Bob Greenberg, who might be called an advertising guru, operates on a philosophy that

Correct AnswerverifiedShow Answer

Advertising plays an even more important role in authoritarian societies than in democratic ones.

Correct AnswerverifiedShow Answer

Targeting ads for specific consumer groups is called

Correct AnswerverifiedShow Answer

A fairly recent advertising agency compensation arrangement is the equity contract.

Correct AnswerverifiedShow Answer

In advertising, the performance contract system of payment entails

Correct AnswerverifiedShow Answer

The penny press was able to keep the cost for a newspaper at a penny by relying on advertising revenue.

Correct AnswerverifiedShow Answer

The most common factor used to start selecting media to carry advertisements is CPM.

Correct AnswerverifiedShow Answer

As of 2010, newspapers continued to lead all other media in advertising revenue.

Correct AnswerverifiedShow Answer

The acronym CPM, standing for "customers per medium," is an index for comparing the effectiveness of ads appearing in different media.

Correct AnswerverifiedShow Answer

Newspapers, magazines, radio, television, and the Internet are the economic engines that drive American advertising.

Correct AnswerverifiedShow Answer

When an advertising agency takes its compensation as an ownership share in a client's company, the deal is called

Correct AnswerverifiedShow Answer

Match each person on the left with the appropriate accomplishment in the right column. -Josiah Wedgwood

Correct AnswerverifiedShow Answer

Describe and explain the differences between any three of the common redundancy techniques used in advertising.

Correct AnswerAnswered by ExamLex AIThe three common redundancy techniques u...View AnswerShow Answer

Advertising contributes to prosperity by

Correct AnswerverifiedShow Answer

Who championed positioning?

Correct AnswerverifiedShow Answer

Discuss why the traditional 15% ad agency commission which had lasted for well over 100 years has now fallen out of favor and is being adjusted or replaced by other payment schemes. Explain its relative advantages and disadvantages for both the advertisers and the agencies.

Correct AnswerAnswered by ExamLex AIThe traditional 15% ad agency commission...View AnswerShow Answer

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Advertising works well in a democratic s...
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The three common redundancy techniques u...
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Answered by ExamLex AI
The traditional 15% ad agency commission...
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