File - London Central DECA Team

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2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
1
ADC
1. John, Robert, and Charles were college friends who wanted to start a public relations business.
John has creative ability, Robert's expertise is selling, and Charles' expertise is management.
However, each has limited capital. The ideal business ownership for these young men is a
A. merger.
B. partnership.
C. franchise.
D.
corporation.
2. An advertising agency might ask a client to sign an exclusivity contract because it ensures that the
agency will have
A. the right to obtain royalties from the client's copyrighted or trademarked materials.
B. sole rights to perform specific activities on the client's behalf for a certain period of time.
C. the right to sue the client if the client does not follow governmental regulations.
D. unlimited liability in the event that the client declares bankruptcy after signing the contract.
3. As a specialty advertising product moves from producer to consumer, it takes a channel of
distribution. This is the __________ the product takes.
A. mode of transportation
C. waterway
B. time
D. route
4. What is one of the advantages to specialty advertising businesses of using electronic data
processing and computerized inventory systems in the distribution function?
A. Reduces turnover
C. Increases overhead
B. Saves time
D. Increases average stock on hand
5. As a result of effectively coordinating distribution with other marketing activities such as promotion,
a business is often able to provide
A. attractive product displays.
C. free delivery.
B. good customer service.
D. flexible credit terms.
6. After evaluating channel members and identifying problems, why do most graphic design
businesses try to work with channel members to improve their performance?
A. Less costly to maintain a relationship than to locate new channel members
B. More effective to use traditional transportation systems
C. Makes it possible to reduce inventory levels
D. Reduces the amount of time it takes to negotiate purchasing terms
7. To contribute in a useful way, you avoid
A. talking about what's on your mind.
B. letting others know if you're stating
speaking.
a fact or opinion.
C. blurting out statements without thinking.
D. paying attention when others are
8. In order for an unsolicited sales letter to be effective, the first sentence should be designed to
A. include a positive testimonial.
C. gain the reader's attention.
B. provide supporting information.
D. give the reader technical data.
9. A request made by an advertising agency employee to a supervisor is an example of what type of
communication?
A. Horizontal
B. Downward
C. Grapevine
D.
Upward
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
2
10. Chris is a supervisor who finds that her graphic design staff often do not understand her
instructions. Chris can improve the situation by
A. asking a staff member to give all instructions
C. making the instructions longer and
more complex
B. planning what she will say beforehand
D. constantly checking to see that
instructions are followed
11. Why is it important for Internet businesses to write promotional content for their web-site home
pages that is interesting as well as concise?
A. Message is complex.
C. Design is simple.
B. Access is restricted.
D. Space is limited.
12. What type of customer may be haughty or overbearing to an employee of a quick-print shop?
A. Slow/Methodical
C. Dishonest
B. Domineering/Superior
D. Suspicious
13. What should you do to be prepared to answer customer questions?
A. Make eye contact when talking with customers.
B. Find out what you need to know to do your job well.
C. Give customers a chance to express themselves fully.
D. Use facial expressions to indicate interest in customers.
14. Which economic resources enable specialty advertising businesses to operate?
A. Inputs
B. Revenues
C. Sales
D.
Outputs
15. Which of the following levels of governmental purchases are included in the calculation of GDP:
A. State and local
C. Federal, state, and local
B. Federal and state
D. Federal
16. Which of the following types of economic systems is used in the United States:
A. Market
B. Socialist
C. Command
D.
Traditional
17. Risks that may result in a loss, no change, or a gain are
A. insurable.
B. uninsurable
C. avoidable.
unimportant.
D.
18. Research and development programs can increase productivity by
A. trying to prevent conflicts between employees.
C. discovering better methods of
production.
B. offering workers the option of flextime.
D. offering "perks" to improve the worklife quality.
19. Which of the following is a factor that measures the condition of a country's economy:
A. Price stability
B. Fiscal policy
C. Profit margin
D.
Financial cycle
20. Jeremy is resisting some new circumstances. What can he do to increase his adaptability?
A. Lower his expectations
C. Examine his attitude
B. Increase his level of fear
D. Ignore the situation
21. How important are human relations skills in the business world?
A. Not essential
B. Very important
C. Not beneficial
Somewhat important
D.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
3
22. Leaders who share a belief in justice, a desire to do the right thing, and an awareness of the rights
of other people can be said to have
A. integrity.
B. competence.
C. emotional intelligence. D.
credibility.
23. When bringing members of a work team together, it is important that each member understand the
group's objectives and that they
A. actively participate in team meetings.
C. learn to avoid conflict at all times.
B. work to create an indecisive environment.
D. develop personal friendships with each
member.
24. Which of the following speculative risks would most likely increase a specialty advertising
business's income:
A. Receiving a settlement for fire damage
C. Buying inexpensive liability insurance
B. Offering health benefits to employees
D. Investing in developing a new product
25. Why would a promotional business's stockholders be interested in the business's accounting
records?
A. To know when to send in their next dividend C. To find out whether the business plans
changes
B. To find out what benefits employees receive D. To know whether they have made a
good investment
26. If a photography studio which normally has gross sales of $15,800 per week forecasts an increase
in sales of 8%, forecasted weekly sales would be
A. $16,200.
B. $15,800.
C. $17,064.
D. $11,264.
27. What might result if a specialty advertising business's merchandising budget called for purchasing
more goods than customers wanted?
A. Surplus profit
C. Increased costs
B. Additional sales
D. Expanded market
28. Which of the following is the net income for a photography studio with net sales of $92,500, cost of
merchandise sold of $48,250, and operating expenses of $31,100:
A. $13,150
C. $14,750
B. $12,500
D. $15,250
29. Which of the following would be a legal question on an employment application:
A. Have you ever been arrested?
C. Have you ever been convicted?
B. Have you ever been indicted?
D. Have you ever been prosecuted?
30. Why should new advertising agency employees be given an organizational chart?
A. Clarifies who is best qualified to answer a new employee's questions
B. Helps employees quickly learn expected standards of behavior
C. Makes workers have positive attitudes about their jobs
D. Increases employees' confidence in their abilities to perform the job
31. Which of the following is a false statement about instructional objectives for a training and
development program:
A. They guide selection of course content.
C. They consist of two components.
B. They help in program evaluation.
D. They identify what trainees should
know.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
4
32. What do advertising agencies need to develop to effectively assess employee performance?
A. Evaluation criteria
C. Job descriptions
B. Appropriate feedback
D. Recognition systems
33. What is one way that a specialty advertising business might use marketing information?
A. To develop new products
C. To calculate statistics
B. To interpret findings
D. To identify new vendors
34. The Big Sign Company has questioned customers about their needs for a specific promotional sign
the company may decide to produce. What kind of marketing information is this company
collecting?
A. Economic
C. Primary
B. Secondary
D. Systematic
35. Descriptive research is a type of marketing research that is used by public relations agencies when
they need to
A. obtain specific information related to the agency's situation.
B. decide which direction to take in a given situation.
C. try several theories to see what solution would work best.
D. make predictions of the agency's future sales.
36. One of the ways in which marketing benefits people is by improving their
A. community relations.
C. planned economy.
B. standard of living.
D. family ties.
37. When Ken Ditioner, owner of Shine Shampoo, considers how to package the items he produces,
he is making a __________ decision.
A. place
C. product
B. price
D. promotion
38. A specialty advertising business that includes target marketing in its business activities is trying to
A. keep its operating expenses within the budget.
B. forecast how much profit the business can make.
C. find out whether there is a market for its products.
D. determine how many people have heard of the business.
39. Which of the following is a psychographic characteristic that advertising agencies often use to
identify market segments:
A. Number of family members
C. Quality of health
B. Style of living
D. Type of dining habits
40. What does a promotional business try to identify as a result of conducting a situational analysis?
A. Goods and services
C. Threats and opportunities
B. Revenues and expenses
D. Profits and losses
41. Once a SWOT analysis identifies an internal strength, a media production business can use that
strength to take advantage of a(n)
A. marketing strategy.
C. external opportunity.
B. operating procedure.
D. promotional technique.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
5
42. Which of the following is a question that should be asked when selecting a sales forecasting
method:
A. What are the operating expenses of the promotional business?
B. What are the promotional business's past sales?
C. What changes are occurring in the promotional business?
D. What information is available to use?
43. Which of the following is an example of an effective marketing objective that a graphic design
business might set:
A. Increase profits by 6% next year
C. Decrease the level of spending
B. Hire additional salespeople
D. Identify new local vendors
44. In which of the following situations should a specialty advertising business consider its competitors'
prices when developing a marketing plan:
A. Introducing a new product
C. Selecting a new supplier
B. Organizing a new division
D. Analyzing a new database
45. What does a commercial printing business use to compare the actual performance of its marketing
efforts in relation to its marketing objectives?
A. Standards
B. SWOT analysis
C. Appraisals
D.
Classification
audit
46. One reason companies may not be placing as many advertisements in newspapers and magazines
as they did twenty years ago is because
A. more consumers are getting information from the Internet.
B. print advertising is becoming more and more expensive.
C. consumers are not buying as many goods and services.
D. advertising messages contain too much technical information.
47. Why do advertising agencies often use specialized computer programs to present information to
clients?
A. To eliminate questions
C. To record client feedback
B. To create visual appeal
D. To provide hard copies
48. Which of the following types of software programs would best be suited for creating a web page:
A. Desktop publishing
C. Database
B. Web-page editor
D. Spreadsheet
49. One way that advertising agencies maintain the security of data that they send over the Internet to
clients is by using a software program that prevents a(n)
A. virus from being downloaded.
C. attachment from being included.
B. document from being forwarded.
D. search engine from being used.
50. Not allowing employees to bring personal belongings into the work area helps to prevent
A. robbery.
B. fraud.
C. burglary.
D.
shoplifting.
51. How does marketing-research data help a specialty advertising business's production planning?
A. By determining how products will be produced
C.
By identifying resources needed
in production
B. By identifying consumers' needs and wants
D.
By setting the timetable to use
in production
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
6
52. To determine if a manufacturing company is maximizing the output of its specialty advertising
goods, it should analyze its __________ efforts.
A. production
B. promotional
C. warehousing
D.
sales
53. An important benefit of project management is that it allows the manager to
A. work with interesting people.
C. make all of the decisions.
B. have power and authority.
D. identify and correct problems.
54. A small public relations agency that often pays costly penalties to the Internal Revenue Service for
forgetting to deposit withheld payroll taxes on time might decide to hire an outside payrollprocessing company in order to
A. prepare estimates.
C. explain errors.
B. provide excuses.
D. control expenses.
55. Which of the following is an important advantage to a promotional business of maintaining the
business's building on a regular basis:
A. Protection of investment
C. Control of sales volume
B. Reduction of operating efficiency
D. Reduction of risk management
56. Why do goal-setting experts recommend that you share your goal with supportive people?
A. To make sure your goal is realistic
C. To obtain the approval of others
B. To inspire others to set goals
D. To help you be committed to the goal
57. Which of the following advertising agency employees work directly with the client company and the
agency creative staff:
A. Account executives
C. Copywriters
B. Art directors
D. Illustrators
58. Which of the following is the most desirable outcome for a job seeker who sends a letter of
application to an advertising agency:
A. A job interview for the applicant
C. A telephone call from the agency
B. A letter from the agency
D. A request for a résumé from the
applicant
59. Many businesspeople take advantage of unexpected free time during the work day to handle
A. major issues.
C. routine items.
B. personal matters.
D. new problems.
60. Which of the following technological tools is commonly used to calculate simple mathematical
computations such as unit selling prices:
A. Fax machine
C. Scanner
B. Calculator
D. Palm pilot
61. Which of the following is an internal factor that affects the pricing of a specialty advertising
business's goods or services:
A. Standard of living
C. Government regulation
B. Production/Operating costs
D. Buying power of customers
62. Quick-print businesses calculate break-even in dollars so they know the
A. total dollar sales needed to reach break-even.
B. amount of the business's after-tax earnings.
C. total dollar value of the stock on hand.
D. amount the business can spend on new purchases.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
7
63. Which of the following is a reason that a specialty advertising business might decide to mark down
merchandise:
A. To maximize profits
C. To sell excess goods
B. To cover rising costs
D. To achieve objectives
64. Which of the following does effective product/service management help advertising agencies to do:
A. To recruit
C. To barter
B. To prospect
D. To compete
65. When sales and profits for a promotional product have fallen, the product is in what stage of the
product life cycle?
A. Introduction
C. Maturity
B. Growth
D. Decline
66. Technological innovations now allow a business to tailor a standard product to meet the specific
needs of a particular advertising agency, which is commonly called
A. modified obsolescence.
C. interactive transformation.
B. reverse standardization.
D. mass customization.
67. Which of the following is a source that businesses often consider when generating ideas for
promotional display products:
A. Design costs
C. Customer complaints
B. Test results
D. Promotional plans
68. A specialty advertising business that sells personalized clock radios provides purchasers with an
assurance that any problem with the radios will be repaired or the radios will be replaced if they
stop working within a year's time. This promise by the seller is an example of a
A. warranty.
B. limited warranty.
C. guarantee.
D.
money-back
guarantee.
69. Which federal agency administers laws against false and misleading advertising, discrimination
through prices, and price fixing?
A. Federal Communications Commission
C. Federal Advertising Administration
B. Securities and Exchange Commission
D. Federal Trade Commission
70. If a graphic design company's follow-up activities indicate that a customer had a positive buying
experience, the company is likely to obtain
A. sales quotas.
C. free advertising.
B. unfavorable publicity.
D. repeat sales.
71. The first factor that a specialty advertising business should consider when it is deciding if it should
sell a product is the
A. taxation rate.
B. market demand.
C. storage space.
D.
promotional strategy.
72. Web-based specialty advertising businesses take advantage of technology by allowing customers
to
A. purchase products over the telephone.
C. access information online.
B. hack into the business's web server.
D. return unwanted merchandise to a local
store.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
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73. One reason why it may be difficult to evaluate the effectiveness of advertising services is because
these services are often
A. new and creative.
C. competitive.
B. legal and ethical.
D. expensive.
74. An advertising agency's strengths and competitive advantages are critical in brand development
and can often be found in the agency's
A. press releases. B. FAQs on the Internet.
C. name and slogan.
D.
business plan.
75. When negotiating a contract, it is important to include details about the advertising project's
specifications, billing rates, and payment terms so that each party is aware of the other's
A. requests and personal preferences.
C. ideas and risks.
B. plans and strategies.
D. responsibilities and expectations.
76. One of the main objectives of promotional activities is to
A. enhance business image.
C. attract customers.
B. increase sales.
D. increase name recognition.
77. The use of samples or cents-off coupons on grocery items is an example of
A. personal selling. B. sales promotion.
C. advertising.
publicity.
D.
78. Which of the following is an example of an ethical issue affecting personal selling practices:
A. Using high-pressure selling tactics
C. Distributing product coupons
B. Explaining notable product features
D. Up-selling goods and services
79. Misleading or deceptive advertising is considered to be an unfair
A. trade practice.
B. business policy.
C. sales trend.
marketing plan.
D.
80. Determine the type of error made in the following line of advertising copy that appears on a proof:
Prices are good though Saturday.
A. Spacing
B. Punctuation
C. Spelling
D.
Grammar
81. What challenge does a business encounter when it sends promotional e-mail messages?
A. Incorrect feedback
C. Undeliverable mail
B. Irrelevant message content
D. Unreasonable lead time
82. Determine the cost per thousand (CPM) for the following newspaper advertisement:
Total cost of the ad: $600
Circulation of the newspaper: 60,000
A. $.10
B. $10.00
C. $1.00
D.
$.01
83. When a business places print advertisements in a magazine that has a specific readership reach, it
is basing its buying decisions on the publication's
A. reputation.
B. circulation.
C. motivation.
D.
participation.
84. The travel section of Sunday newspapers is an effective place for airlines, bus companies, and
cruise lines to advertise their services because it
A. contains colorful photographs.
C. promotes competitive pricing.
B. is intended for businesspeople.
D. is read by potential customers.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
9
85. Which of the following is a technique that businesses can use to get their news releases presented:
A. Mention advertising
C. Play favorites
B. Meet media deadlines
D. Pressure the editor
86. Which of the following is a guideline to follow in lettering display signs:
A. The color of the letters should blend in with the display.
B. Block letters should be used to make the sign more readable.
C. Lettering should be large enough for customers to read at a distance.
D. Lettering should be small so customers have to come close to read the sign.
87. Which of the following statements is true regarding the development of a sales promotion plan:
A. Because many governments do not regulate promotional activities, event planning is
minimal.
B. Successful sales promotions often use consistent themes that are coordinated with
advertising efforts.
C. Conducting sales promotion activities at infrequent intervals usually boosts long-term sales
goals.
D. For optimal success, sales promotion planning should focus efforts on one media vehicle.
88. An important step in promotional planning is determining the promotional mix, which involves
A. selecting the forms of promotion that will be used.
B. monitoring the promotions used by competitors.
C. deciding whether to use a push or pull strategy.
D. identifying the available forms of promotion.
89. Businesses often coordinate promotional and selling activities by displaying the products being
promoted in a(n) __________ the business.
A. area adjacent to
C. unused part of
B. special location within
D. restricted section of
90. Which of the following data about past advertisements would be useful in planning future ads:
A. Names of ad personnel involved
C. Sales results of past ads
B. Time spent preparing past ads
D. Results of product concept tests
91. If a business plans an advertising budget that is intended to help the business reach specific goals,
the business is using the __________ method.
A. competitive parity
C. percentage of past sales
B. objective and task
D. percentage of anticipated sales
92. Which of the following is the main goal of buzz marketing:
A. To influence emotions
C. To encourage buying
B. To change attitudes
D. To get people talking
93. A business that decides to advertise in the local newspaper, send direct-mail pieces to potential
customers, sponsor a contest, and offer rebates is establishing its
A. selling policy.
C. promotional mix.
B. communication plan.
D. distribution strategy.
94. The investment made by companies in building and promoting goodwill is partially repaid by
A. increased selling costs.
C. decreased sales volume.
B. the loyalty shown by repeat customers.
D. the use of effective follow-up
techniques.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
10
95. A specialty advertising salesperson who meets with a customer in person might bring a laptop
computer to the meeting so s/he can place the customer's order and
A. write a sales proposal.
C. analyze the bill of lading.
B. send a promotional message.
D. check stock availability.
96. Which of the following is a type of company promotional material that can be used as a source of
information for selling:
A. Magazine article
C. Training manual
B. Employee handbook
D. Annual report
97. Which of the following is a type of product benefit that a specialty advertising salesperson must
explain to a customer:
A. Quantitative
B. Obvious
C. Limited
D.
Hidden
98. When pitching promotional ideas to a client, an advertising agency's account executive should
communicate his/her knowledge about the client's product and
A. ask the prospect to hold his/her questions.
C. possess excellent presentation
skills.
B. make sure to present highly-detailed execution plans. D. try to avoid discussing the
agency's track record.
99. Setting the overall goals for a public relations agency, guiding the activities of the agency, and
keeping the agency moving toward its goals are part of the role of
A. employees.
B. managers.
C. consultants.
D.
supervisors.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
11
100. What is the most likely outcome for a media production business that decides it will keep the same
marketing strategies, goals, and objectives throughout the life of the business?
A. The business will earn substantial profits.
C. The business will eventually close its
doors.
B. The business will be stable and successful.
D. The business will be imitated by
competitors
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
12
1. B
Partnership. A partnership is a form of business ownership in which the business is owned by two
or more persons. Often, the purpose of forming a partnership is to combine the capital, the
experience, and the abilities of the partners. A corporation is a form of business ownership owned
by stockholders who have purchased stock. A franchise is an agreement between a parent
company and a franchisee to distribute goods and services. A merger is the absorption of one
company by another.
SOURCE: BL:003
SOURCE: BA LAP 7—Own It Your Way
2. B
Sole rights to perform specific activities on the client's behalf for a certain period of time. It is a
common practice for an advertising agency and its client to develop a legal contract that outlines
the responsibilities of each party when they agree to do business. Exclusivity contracts state that
the client promises that it will not take its business to the advertising agency's competitors. The
advertising agency may also promise the client that it will not perform business activities for the
client's direct competitors. Most contracts are valid for a specific period of time, which allows both
parties the option to renew or renegotiate the agreement or end the relationship. Unless specific
contract terms state that the agency can obtain royalties from the client's copyrighted material and
that the agency can sue the client if it does not follow governmental regulations, a legal exclusivity
agreement generally does not ensure the agency these rights. Clients would probably not agree to
those terms, anyway. Unlimited liability means that a party assumes responsibility for all debts. An
advertising agency would not assume a client's debt if it declares bankruptcy.
SOURCE: BL:050
SOURCE: marketingterms.com. (n.d.). Exclusivity. Retrieved October 26, 2007, from
http://www.marketingterms.com/dictionary/exclusivity/
3. D
Route. Some channels are direct—the product goes directly from the producer to the consumer.
Other channels are indirect—the product goes from the producer to intermediaries and then to
consumers. Modes of transportation are the various types of physical transportation such as ship,
train, and truck. A waterway is a river or other body of water that may be used in transporting
goods. The time required for the product to pass through the channel will be determined by the
length of the channel and the type of transportation used.
SOURCE: CM:003
SOURCE: MB LAP 3—Channels of Distribution
4. B
Saves time. The advantage of using new technology in the distribution function is that it saves time.
The use of computerized inventory systems allows specialty advertising businesses to keep track of
exactly how much inventory is in stock at any one time, and the use of electronic data processing
allows businesses to place orders electronically, which shortens the order cycles. The new
technology allows businesses to communicate instantly, place orders when needed, and receive
the goods quickly. This reduces the amount of inventory they need to carry because they can
quickly obtain whatever they need. The technology also helps to increase turnover by identifying
excess inventory that should be marked down in order to sell. Increased overhead would be a
disadvantage to businesses.
SOURCE: CM:004
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p.
442]. Woodland Hills, CA: Glencoe/McGraw-Hill.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
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5. B
Good customer service. Distribution is one of the marketing functions that must work with the other
marketing activities to get goods and services from producers to consumers. The goal of marketing
is to satisfy consumer wants and needs while achieving company goals. Businesses cannot satisfy
those needs and provide quality customer service unless all the marketing activities work together.
For example, businesses are only able to serve customers when they have the advertised items on
hand and at the right price. Not all businesses need or use product displays, provide free delivery,
or offer flexible credit terms.
SOURCE: CM:007
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 367).
New York: Glencoe/McGraw-Hill.
6. A
Less costly to maintain a relationship than to locate new channel members. Graphic design
businesses usually try to work with channel members to improve their performance because it is
less costly to maintain a relationship than to locate new channel members. During an evaluation, a
business might detect certain problems, many of which may be small and easy to correct. Helping a
channel member correct problems is usually inexpensive. However, it is time consuming to search
for new channel members and to develop new relationships. Also, changing channel members
might involve changing other procedures which may be costly to a business. It is not always more
effective to use traditional transportation systems. Improving the performance of channel members
does not necessarily make it possible to reduce inventory levels, or reduce the amount of time it
takes to negotiate purchasing terms.
SOURCE: CM:011
SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 501-503]. Upper Saddle River,
NJ: Prentice Hall.
7. C
Blurting out statements without thinking. To contribute in a useful way, you avoid blurting out
statements without thinking. You take a moment to decide what you'll say—and the best way to say
it. You do let others know if you're stating a fact or opinion. You do talk about what's on your mind.
And, you do pay attention when others are speaking.
SOURCE: CO:053
SOURCE: QS LAP 29—Put In Your Two Cents
8. C
Gain the reader's attention. Many companies send unsolicited sales letters to customers in order to
generate new business. However, these letters are often scanned quickly and discarded. In order
for an unsolicited sales letter to be effective, the first sentence should gain the reader's attention
and persuade him/her to continue reading. Businesses use various attention-getting techniques in
the first sentence such as making a startling announcement, asking a question, or offering a unique
benefit. Once the first sentence has gained the reader's attention, the body of the sales letter
provides supporting information such as a positive testimonial or technical data.
SOURCE: CO:179
SOURCE: Lehman, C.M., & DuFrene, D.D. (1999). Business communication (12th ed.) [pp. 268277]. Cincinnati: South-9Western College.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
14
9. D
Upward. Upward communication is defined as communication that moves up the chain of
command, e.g., employee to supervisor. Downward communication moves down the chain from
management to employees. Horizontal communication is communication with someone on the
same level within the business. Grapevine communication is unofficial messages passed among
fellow employees.
SOURCE: CO:014
SOURCE: Adler, R.B., & Elmhorst, J.M. (1999). Communicating at work: Principles and practices
for business and the professions (6th ed.) [pp. 13-16]. Boston: McGraw-Hill College.
10. B
Planning what she will say beforehand. Organizing her thoughts first will help Chris to give
instructions that are clear and easy to understand rather than long and complex. Turning this
responsibility over to a staff member on a regular basis would not be appropriate since giving
directions is part of a supervisor's responsibilities. Constantly checking on employees is time
consuming and will probably alienate them.
SOURCE: CO:139
SOURCE: Miculka, J.H. (1999). Speaking for success (pp. 113-114). Cincinnati: South-Western
Educational.
11. D
Space is limited. The promotional content of a web site has a significant effect on the success of
the site. Content that is well written, interesting, and to the point is easier for users to read and
understand. Also, it is important for the content to be concise because space on the home page is
often limited. For example, a homepage should not go on forever, but contain important information
to attract attention and lead users to more specific content on other pages. Furthermore, these
pages should provide interesting and relevant information and guide users to more detailed pages if
users want more information. Users will lose interest if a home page is unnecessarily long and
includes lengthy content. Not all messages are complex; some are very simple and straightforward.
Access to most web sites is not restricted unless the site requires registration or membership. The
design of a web page may be simple or complex, but the content should be both interesting and
concise.
SOURCE: CO:180
SOURCE: Kleindl, B.A. (2001). Strategic electronic marketing: Managing e-business (p. 64).
Cincinnati: South-Western College Publishing.
12. B
Domineering/Superior. These customers are overly confident and feel that they know more and are
better than the average person. They will often behave in an arrogant manner toward employees.
Suspicious customers question everything and may want facts and proof before being convinced
that something is true. Dishonest customers intentionally attempt to avoid paying for the good or
service by deceiving the salesperson. Slow/Methodical customers require a lot of time to make a
purchase because of shyness or difficulty in making a choice or buying decision.
SOURCE: CR:009
SOURCE: EI LAP 1—Making Mad Glad (Handling Difficult Customers)
13. B
Find out what you need to know to do your job well. You should take the responsibility to gather
information you will need to answer customer questions. Facial expression and eye contact are
used when interacting with customers. Giving customers a chance to express themselves fully is a
key aspect of handling customer complaints.
SOURCE: CR:004
SOURCE: HR LAP 32—Customer-Service Mindset
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
15
14. A
Inputs. Economic resources are items used to produce goods and services. Without resources, or
inputs, there would be no outputs, or production. Revenues are income, some of which is usually
from sales.
SOURCE: EC:003
SOURCE: EC LAP 14—Economic Resources
15. C
Federal, state, and local. In the United States, all three levels are included in the governmental
purchases category. For example, federal governmental purchases include those for military
defense and the space program; state governments make purchases for highway development and
college support; and local governmental purchases include fire and police vehicles and health
facilities.
SOURCE: EC:017
SOURCE: EC LAP 1—Gross Domestic Product
16. A
Market. The United States has a market economy in which the means of production and distribution
are owned and controlled by individuals and businesses. In a traditional economy, people produce
only what they must have in order to exist. A command economy is one in which all or many of the
means of production and distribution are owned and controlled by the government. In a socialist, or
modified, command economy, government owns the basic means of production, but there is private
ownership of businesses as well.
SOURCE: EC:007
SOURCE: EC LAP 17—Economic Systems
17. B
Uninsurable. These risks are speculative risks that may be the result of such unavoidable factors as
changes in customer buying habits, weather conditions, or business conditions. All risks are
important to businesses, and most businesses try to protect themselves from pure risks by
purchasing insurance.
SOURCE: EC:011
SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)
18. C
Discovering better methods of production. In addition, research and development programs can
increase productivity by developing new products, discovering effective ways to combine
resources, finding new ways to meet customer needs, locating new sources of resources, and
determining the best ways to invest the company's profits. The other alternatives are ways that
businesses can create a good quality of work life.
SOURCE: EC:013
SOURCE: EC LAP 18—Productivity
19. A
Price stability. Price stability means that price levels remain fairly constant. When prices are stable,
they do not drastically fluctuate up or down. Price stability is one way to measure the condition of a
country's economy. If prices are stable, the economy is also stable. Large upswings or downswings
in prices indicate that the economy is not stable. Fiscal policy is the government policy that sets
levels of government spending and taxation. Profit margin is a ratio of net profit divided by net sales
that reflects the profit per dollar of sales. Financial cycle is not a factor that measures the condition
of a country's economy.
SOURCE: EC:080
SOURCE: McConnell, C.R., & Brue, S.L. (2005). Economics: Principles, problems, and policies
(16th ed.) [pp. 8-9]. Boston: McGraw-Hill/Irwin.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
16
20. C
Examine his attitude. One characteristic of an adaptable person is a positive or “can-do” attitude. A
person who resists new situations or circumstances often has a negative attitude. By being aware
of personal attitudes and being willing to change them, a person can effectively adapt to new
circumstances. A person's expectations can be defined as the anticipated outcome of a specific
action. Low expectations do not necessarily make a person adaptable. Fear is a negative effect of
low adaptability. Ignoring the situation, or pretending that it doesn't exist, does not generally
increase a person's adaptability.
SOURCE: EI:006
SOURCE: QS LAP 15—Stuff Happens
21. B
Very important. On the job, you might be required to interact frequently with supervisors,
coworkers, and customers. You must be able to deal effectively with all of these people if you are to
perform your job well. It is also important to the career success of the individual since more people
lose their jobs because they can't get along with others than for any other reason.
SOURCE: EI:037
SOURCE: EI LAP 5—Can You Relate?
22. A
Integrity. People with integrity adhere to an established set of personal ethics and sound moral
principles. Leaders tend to share a belief in justice, a desire to do the right thing, and an awareness
of the rights of other people. Competence, emotional intelligence, and credibility are other, separate
leadership activities. Competence is the ability to do what needs to be done. Emotional intelligence
is the ability to recognize and manage emotions in ourselves and in others. Credibility is how much
people believe what you say.
SOURCE: EI:009
SOURCE: QS LAP 27—Follow Me
23. A
Actively participate in team meetings. Although many factors determine the success or failure of a
work team, it is important for each group member to understand the overall objective of the group
or project. It is also important for all members to participate in team meetings. Active participation
often brings new ideas to the group. Participation in group meetings can also improve
communication in terms of clarification of ideas, goals, or task responsibility. Groups that operate in
an environment that cannot make decisions are often unproductive. Conflict cannot always be
avoided in all situations. Members often have different views about situations and should feel free
to express those views. Therefore, conflict is not necessarily harmful for the group; it just needs to
be managed appropriately. It is important that each team member respect and try to work with one
another to accomplish goals. However, it is not necessary to develop personal friendships or social
relationships with each team member for the group to be successful.
SOURCE: EI:044
SOURCE: Hilgert, R.R., & Leonard, E.C. (2001). Supervision: Concepts and practices of
management (8th ed.) [p. 511]. Cincinnati: South-Western College Publishing.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
17
24. D
Investing in developing a new product. Investing in the development of a new product is a
speculative risk because there is a chance of loss, no change, or gain. However, if the new product
is the type that customers want and will buy, selling the new product has the potential of increasing
a specialty advertising business's income. Businesses take risks when they invest in new products,
but they do so because they hope to earn a profit. Offering health benefits to employees is a pure
risk because the business can purchase medical insurance. Buying liability insurance is a way that
businesses manage pure risks. Businesses usually obtain insurance coverage to protect them from
loss due to pure risks such as fire.
SOURCE: FI:080
SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management:
Teacher's manual (2nd ed.) [p. 387]. New York: Glencoe/McGraw-Hill.
25. D
To know whether they have made a good investment. Individuals who have invested their money in
a promotional business are its stockholders, and they are interested in the profits shown on the
firm's accounting reports. This information tells them whether they have made a good investment or
should change their investment to another company. Stockholders usually receive dividends from
the business. Accounting reports do not show planned changes or employee benefits.
SOURCE: FI:085
SOURCE: FI LAP 5—Show Me the Money
26. C
$17,064. Many businesses, such as photography studios, forecast sales based on sales trends. A
business whose sales had been increasing at a rate of 8% might use that percent of increase to
forecast future sales. In this case, to calculate the new sales figure, multiply the gross sales by the
percentage of increase ($15,800 x 8% or .08 = $1,264) and add the product to gross sales
($15,800 + $1,264 = $17,064).
SOURCE: FI:096
SOURCE: IM LAP 4—Forecasting Sales
27. C
Increased costs. Merchandising budgets determine inventory levels by regulating and planning for
the amount of products expected to be sold to customers. When there is more merchandise
available than customers want, the specialty advertising business's costs increase for storing,
protecting, and insuring the excess merchandise. Accurate merchandising budgets help prevent
this situation. Purchasing more goods than customers want to buy will not help a business to
increase its sales, expand its market, or generate surplus profit.
SOURCE: FI:106
SOURCE: FI LAP 3—Money Tracks (Nature of Budgets)
28. A
$13,150. A photography studio calculates net income by subtracting the cost of merchandise sold
from the net sales to determine gross margin ($92,500 - $48,250 = $44,250). Then the studio
deducts total operating expenses from gross margin to calculate net income ($44,250 - $31,100 =
$13,150).
SOURCE: FI:102
SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 234-237).
Cincinnati: South-Western Educational.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
18
29. C
Have you ever been convicted? A prospective employer is allowed to ask about convictions.
Questions about being arrested, indicted, or prosecuted cannot be asked on an employment
application or during an interview because people can be arrested, prosecuted, or indicted for
crimes, yet are not convicted and thus have no criminal record.
SOURCE: HR:356
SOURCE: SafeHR.com. (n.d.). Articles and resources on legal hiring. Retrieved October 26, 2007,
from http://www.safehr.com/legalhiring.html
30. A
Clarifies who is best qualified to answer a new employee's questions. In addition, reviewing an
organizational chart shows the new workers where they fit into the chain of command, their
relationship to the overall company picture, and the channels of communication which they should
use. The overall job orientation helps employees quickly learn expected standards of behavior and
increases employees' confidence in their ability to perform the job. The orientation might encourage
positive attitudes, but it won't make workers have positive attitudes.
SOURCE: HR:361
SOURCE: MN LAP 44—Orienting New Employees
31. C
They consist of two components. Instructional objectives should contain three components:
performance, conditions, and criterion. An instructional objective is defined as a statement that
identifies what trainees, or learners, should know or be able to do as a result of instruction. The
benefits of using instructional objectives are that they can guide selection of course content and
instructional methods, and they can guide evaluation.
SOURCE: HR:363
SOURCE: MN LAP 50—Manager/Supervisor Training
32. A
Evaluation criteria. Before assessing employee performance, advertising agencies need to develop
evaluation criteria which are the standards or behaviors that will be assessed. Agencies often
develop specific criteria such as attendance, attitude, productivity, etc. For example, customer
service is important; therefore, an important criterion might be an employee's ability to be friendly
and helpful while providing service to customers. Criteria provide the basis for assessing employee
performance. Job descriptions are developed before hiring employees to fill certain positions. After
an employee's performance has been assessed, an agency provides appropriate feedback.
Employees who receive good or excellent assessments often are recognized for their performance.
SOURCE: HR:368
SOURCE: Jackson, S., & Schuler, R. (2003). Managing human resources through strategic
partnerships (8th ed.) [pp. 461-465]. Cincinnati: Thomson/South-Western.
33. A
To develop new products. Specialty advertising businesses often use marketing information to
analyze what customers want and need in order to develop new products. Many businesses
maintain internal records that indicate the types of products that currently are selling well and to
which customers are attracted. Businesses can use this information to develop similar products that
will appeal to specific markets. In order to use marketing information, businesses often need to
calculate statistics and interpret findings. Businesses do not use marketing information to identify
new vendors, although vendors are often a source of marketing information.
SOURCE: IM:012
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials
(pp. 602-603, 636-637). New York: Glencoe/McGraw-Hill.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
19
34. C
Primary. Primary data are facts collected for use in one particular situation. They are gathered in a
systematic manner to solve a problem, explore an opportunity, or for any purpose useful to the
business. Some ways in which primary data are gathered include questioning salespeople,
customers, or competitors or hiring a marketing-research company to obtain the data. Secondary
data are facts already collected for some other purpose. Economic data are facts collected
regarding the economy as a whole. These data may be primary or secondary in nature.
SOURCE: IM:001
SOURCE: IM LAP 2—Marketing-Information Management
35. A
Obtain specific information related to the agency's situation. This information might include specific
characteristics of a market, economic data that directly affect the agency, or information about the
agency's nearest competitors. Predictive research is used to estimate the agency's future sales or
other future developments. Exploratory research collects information to help the agency define its
situation, problem, or concern and to decide which direction to take in order to address it. Causal
research focuses on cause and effect and tests "what if" theories.
SOURCE: IM:010
SOURCE: IM LAP 5—Nature of Marketing Research
36. B
Standard of living. Standard of living is the way, or manner, in which people live. It is usually
measured by the quantity and quality of the goods and services that people own and use. Our
marketing system has given the United States one of the highest standards of living in the world.
Community relations refers to a company's involvement or relationship with the community. Family
ties are intrafamily relationships. A planned economy is an economic system in which the
government makes all the decisions.
SOURCE: MK:001
SOURCE: BA LAP 11—Have It Your Way!
37. C
Product. Packaging is a product decision in the marketing mix. It involves enclosing products in
protective wrap or containers before they are sold. The place, or distribution, element of marketing
focuses on considerations in getting the selected product in the right place at the right time.
Promotion refers to the various types of communications that marketers use to inform, persuade, or
remind customers of their products. The price element requires marketers to determine the amount
of money they will ask in exchange for their products.
SOURCE: MP:001
SOURCE: IM LAP 7—Pick the Mix (Marketing Strategies)
38. C
Find out whether there is a market for its products. Target marketing is the identification and
selection of markets for a business or for a product. Specialty advertising businesses need to know
whether there are consumers who are likely to buy from them in order to know what to sell and how
to sell it. Identifying the target market will not enable the business to predict the amount of profit
that it can earn. Finding out how many consumers have heard of the business is not a purpose of
target marketing since those who have heard about the business still may not buy from it.
Identifying the target market does not help to control operating expenses, the costs of running the
business.
SOURCE: MP:003
SOURCE: IM LAP 9—Have We Met?
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
20
39. B
Style of living. Psychographic segmentation is the division of a market on the basis of consumers'
lifestyles and personalities. Many advertising agencies identify market segments based on
psychographics in order to understand the way in which people lead their daily lives, which often is
determined by their income, interests, and activities. By identifying these various market segments,
agencies will be able to understand their different wants and needs. The number of family
members, quality of health, and type of dining habits are demographic characteristics.
SOURCE: MP:004
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 235]. Mason,
OH: Thomson/South-Western.
40. C
Threats and opportunities. One of the purposes of conducting a situational analysis is to identify the
threats and opportunities in the business environment. The changing nature of the business
environment brings with it many opportunities for promotional businesses as well as potential
threats. In order to be prepared to take advantage of the opportunities or deal with the threats, a
business must first analyze the environment to find out exactly what those opportunities or threats
are. A business does not conduct a situational analysis to identify profits and losses, revenues and
expenses, or goods and services.
SOURCE: MP:008
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 41-44]. Mason, OH: South-Western.
41. C
External opportunity. A SWOT analysis is the systematic evaluation of a business's internal
strengths and weaknesses and external opportunities and threats. Once the analysis identifies an
internal strength, media production businesses generally use that strength to take advantage of an
external opportunity that has been identified. Being able to match strengths to opportunities is one
of the advantages of conducting a SWOT analysis. For example, having modern production
facilities is a strength that allows a business to take advantage of the opportunity to expand into
new markets. A marketing strategy is a plan of action for achieving marketing goals and objectives.
Operating procedures are the steps a business follows to perform certain tasks. Promotional
techniques are methods of achieving promotional goals.
SOURCE: MP:010
SOURCE: IM LAP 8—Analyze This!
42. D
What information is available to use? To determine whether to use quantitative or qualitative
forecasting methods, a promotional business should ask how much the forecasting method will
cost, how accurate the method will be, and what information is available to use. After a forecasting
method is chosen, the business should examine its internal changes that could affect the sales
forecast. Past sales records are an excellent source of internal information that can be used in
forecasting sales; however, the amount of previous sales is not needed in order to select a
forecasting method. The business's operating expenses might affect the nature of the sales
projection but would not influence the choice of forecasting method.
SOURCE: MP:013
SOURCE: IM LAP 3—Nature of Sales Forecasts
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
21
43. A
Increase profits by 6% next year. Marketing objectives are the goals a graphic design business
seeks to reach with the marketing plan. To be effective, marketing objectives should be specific and
indicate a certain time period. Increase profits by 6% next year is an effective objective because it
clearly states the goal to achieve, which is a 6% increase in profits. It also includes a period of time,
which is to achieve that goal next year. Once a business sets a specific objective, it can develop
marketing strategies to achieve the objective. Hiring additional salespeople and identifying new
local vendors might be strategies a business will develop to achieve the goal. Decreasing the level
of spending is not an effective objective because it is not specific and does not state a time period.
SOURCE: MP:015
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 42]. Mason,
OH: Thomson/South-Western.
44. A
Introducing a new product. Specialty advertising businesses usually develop a marketing plan
before introducing a new product. They take into consideration a variety of factors that may have an
effect on the success of the new product such as the prices that competitors are charging for
similar products. When introducing a new product, businesses usually want to set prices that are
comparable to, or lower than, the prices offered by their competitors in order to attract customers
and build market share. Businesses do not consider their competitors' prices when organizing a
new division, selecting a new supplier, or analyzing a new database.
SOURCE: MP:018
SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd
ed.) [pp. 98-100]. Boston: Irwin/McGraw-Hill.
45. A
Standards. Standards are specifications or statements that are used as a basis for comparing or
judging goods or services. A SWOT analysis is a summary of a business's situation in terms of
strengths, weaknesses, opportunities, and threats. An appraisal is an estimated value of an item
(e.g., building, property, jewelry). Classification audit is not a term commonly used to describe a
method of measuring the performance of marketing activities.
SOURCE: MP:022
SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk C. A. (2006). Marketing essentials (4th ed.) [p.
36]. Woodland Hills, CA: Glencoe/McGraw-Hill.
46. A
More consumers are getting information from the Internet. With the development of PCs and
Internet capabilities, the means of communicating information quickly has increased dramatically.
Many publishers are putting full or partial forms of their magazines and newspapers on their web
sites. Contemporary consumers are pressed for time and disposable income to purchase the print
collateral. Therefore, more and more consumers are turning on computers and getting the
information they need, when they want it; and many are not buying as many newspapers or
magazines as in the past. Consumers are buying more than they did twenty years ago. Print
advertising is not becoming more expensive. Advertising messages usually do not contain a lot of
technical information.
SOURCE: MP:030
SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th
ed.)
[pp. 288-292]. Upper Saddle River, NJ: Prentice Hall.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
22
47. B
To create visual appeal. Advertising agencies often use specialized computer programs, such as
PowerPoint, to develop audiovisual presentations that they intend to show to clients. One reason
for using these programs is to create presentations that are visually appealing. Most presentation
software programs allow agencies to include graphics, animation, sound, etc., which make the
presentations more interesting and appealing. Also, the audiovisual presentation often makes it
easier for clients to view and understand complex information. Using specialized computer
programs to present information to clients does not eliminate questions, record client feedback, or
provide hard copies.
SOURCE: NF:037
SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 140141]. Boston: Irwin/McGraw-Hill.
48. B
Web-page editor. A web-page editor (e.g., Microsoft FrontPage or Macromedia Dreamweaver)
automatically creates the HTML coding that produces the components of a web page including
links, headings, and tables. Desktop publishing software such as Adobe Pagemaker and
QuarkXPress combine text and graphics to create professional-looking printed materials such as
newsletters, catalogs, and brochures. Database software organizes, sorts, and stores information
and facts so that businesses can easily access things such as inventory and customer information.
Spreadsheet software such as Microsoft Excel and Lotus 1-2-3 works around a grid system to
organize information, perform calculations, and produce reports.
SOURCE: NF:053
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 163-166]. Woodland Hills, CA: Glencoe/McGraw-Hill.
49. B
Document from being forwarded. Some advertising agencies use software programs that help
maintain the security of data they send over the Internet to clients. These programs prevent
documents from being forwarded to others so the information does not end up in the hands of
competitors. Also, these programs prevent others from copying, editing, or printing the documents
which helps maintain the information in its original form. These software programs do not prevent a
virus from being downloaded, an attachment from being included, or a search engine from being
used.
SOURCE: OP:064
SOURCE: Oelkers, D.B. (2002). E-Commerce: Business 2000 (pp. 126-128). Cincinnati: SouthWestern Educational.
50. B
Fraud. Fraud is deceiving or cheating an individual or a business out of money or property. Not
allowing employees to bring personal belongings into the work area reduces the possibility that
employees will try to conceal goods and carry them out of the business. Robbery is theft that
involves the use of force, violence, or fear. Burglary is any illegal entry into a building to commit a
theft. Shoplifting is theft of goods by customers.
SOURCE: OP:013
SOURCE: RM LAP 4—Security Precautions
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
23
51. B
By identifying consumers' needs and wants. A wide variety of marketing-research data is available
from libraries, government agencies, and trade publications. Or, the specialty advertising business
can conduct its own research. The data can help the business to produce products that consumers
need or want and are willing to buy. Determining how products will be produced is a planning step
that involves deciding what equipment will be needed, the number of workers, and the time
required. Identifying the resources needed in production is part of the purchasing function. Setting
the timetable to be used in production is part of scheduling.
SOURCE: OP:017
SOURCE: BA LAP 1—Nature of Production
52. A
Production. A procedure is a step-by-step process for performing a specific task. A company must
conduct many tasks to keep the business running. To make sure that the business is operating
efficiently, it may evaluate its procedures to see if the business should make improvements so it
can reach its various goals. Production is the process or activity of producing goods. To determine
if it is producing the maximum amount of specialty advertising goods, a manufacturing company
would review its production systems and procedures. Promotional efforts consist of activities that
communicate information about the business or its products. Warehousing efforts refer to product
storage activities. Sales activities involve influencing and facilitating a customer's purchase of a
business's goods or services.
SOURCE: OP:022
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 288, 330, 530]. Cincinnati: South-Western.
53. D
Identify and correct problems. An important benefit of project management is that it allows the
manager to identify problems and make corrections. By monitoring the project, it is usually possible
to detect problems early and save the project from failure. When the manager notices that the
project is not going as planned or is encountering difficulties, there is time to take action to correct
the problem. Benefits of project management do not include allowing the manager to make all of
the decisions, have power and authority, or work with interesting people.
SOURCE: OP:002
SOURCE: QS LAP 18—Make It Happen
54. D
Control expenses. Finding ways to control expenses is important to businesses. Some small public
relations agencies that prepare their own payrolls may forget to deposit the withheld payroll taxes
on time and be charged a costly penalty by the Internal Revenue Service. If this situation occurs
frequently, a small agency may end up paying a significant amount in penalties. One way to
eliminate the problem and control expenses is to hire an outside payroll-processing company which
will prepare all the federal and state payroll tax deposits and make sure the agency pays them on
time. The cost of hiring an outside payroll-processing company is less than continually paying
costly penalties to the IRS. An outside payroll-processing company will not provide excuses or
explain errors. The company does not prepare estimates but exact documents and forms that are
required by the IRS.
SOURCE: OP:029
SOURCE: CCH Inc. (n.d.). Outside payroll processing. Business Owner's Toolkit. Retrieved
October 26, 2007, from http://www.toolkit.cch.com/text/P06_4498.asp
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
24
55. A
Protection of investment. Promotional businesses have a lot of money invested in their buildings.
Regular maintenance keeps buildings looking good and in good repair so that their value stays the
same or increases. Maintenance is part of risk management since it helps to prevent accidents and
injuries. Effective maintenance usually increases operating efficiency. It may increase sales since
attractive facilities are more appealing to customers, but it doesn't control sales.
SOURCE: OP:032
SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.)
[pp. 318-320]. Upper Saddle River, NJ: Prentice Hall.
56. D
To help you be committed to the goal. Sharing your goal with supportive individuals helps you to be
committed to the goal, to clarify it, and to make it real. Supportive people are likely to approve your
goal, and your goal may inspire others, but those are not purposes of talking to others. Having a
goal that is appropriate to you and your abilities makes it realistic.
SOURCE: PD:018
SOURCE: HR LAP 6—Goal Setting
57. A
Account executives. Account executives must determine the client's point of view and communicate
it to the agency staff that will create the ad. Art directors are a part of the creative staff and oversee
the design and production process of the advertisements. Copywriters write the words for print ads,
radio spots, and television spots. Illustrators draw the pictures and artwork for ads.
SOURCE: PD:052
SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th
ed.)
[p. 86]. Upper Saddle River, NJ: Prentice Hall.
58. A
A job interview for the applicant. A letter of application is often called a cover letter because it is
usually sent along with a résumé. The intent of the job applicant is to obtain a job interview by
introducing him/herself in the letter and presenting background information in the résumé. A job
seeker who receives a letter in response to a letter of application is not likely to be receiving good
news since most advertising agencies use letters to reject applicants. The agency may respond by
telephoning the applicant or asking for a résumé if none has been sent, but setting up an interview
is the most desirable outcome for the applicant.
SOURCE: PD:030
SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 54-56].
Mason, OH: South-Western.
59. C
Routine items. Businesspeople often handle daily, routine items during waiting times or unexpected
free times. Routine items are those activities that occur regularly and need to be handled, but they
are not urgent. Businesspeople who are effectively managing their time take advantage of
unexpected free time to handle those routine items. Employees are not expected to handle their
personal matters during the work day. Major issues and new problems usually are important
activities that receive top priority for completing rather than being handled during unexpected free
time.
SOURCE: PD:019
SOURCE: OP LAP 1—About Time (Time Management in Business)
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
25
60. B
Calculator. Calculators are devices that are used to compute numerical data. Calculators are widely
used and are available in many forms, including battery-operated models and traditional electrical
models. They are often found on computers and personal organizers such as palm pilots. A fax
machine is used to transmit documents via telephone lines. Scanners are technological devices
that transmit images or information to computers.
SOURCE: PI:016
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 126-127]. Woodland Hills, CA: Glencoe/McGraw-Hill.
61. B
Production/Operating costs. When determining the price for goods and services, the seller must
include the costs of utilities, rent, raw materials, or transportation in order to recover those costs.
The buying power of customers is determined by their income, which also determines their
standard of living. These are external factors of which the business should be aware. Government
regulation is also an external factor.
SOURCE: PI:002
SOURCE: PI LAP 3—Factors Affecting Selling Price
62. A
Total dollar sales needed to reach break-even. Break-even can be expressed in units or dollars.
Calculating break-even in dollars shows the quick-print business the total dollar value of the sales
the business needs to make to reach the break-even point. The amount of the business's after-tax
earnings is the amount of profit. The amount the business can spend on new purchases is called
open-to-buy. An inventory control system provides information about the dollar value of stock on
hand.
SOURCE: PI:006
SOURCE: PI LAP 4—Tipping Point (Calculate Break-Even)
63. C
To sell excess goods. One of the main reasons for marking down merchandise is to sell excess
goods. Specialty advertising businesses know that not all goods will sell at their original prices for a
variety of reasons, such as they were overpriced or the business overestimated consumer demand.
When businesses have excess goods in stock, they often mark down the prices in order to sell
those goods and make room for new merchandise. A business might increase the price of
merchandise in order to cover rising costs. Marking down merchandise does not maximize profits,
because goods are sold for less than the desired price. A business's objective is usually to sell
goods at the original price rather than at reduced prices.
SOURCE: PI:008
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 556, 574575). New York: Glencoe/McGraw-Hill.
64. D
To compete. Product/Service management helps businesses, such as advertising agencies, to
compete effectively. Because many new products are being introduced to the marketplace all the
time, competition is fierce in many areas. Effective product/service management helps advertising
agencies to be prepared for new services that their competitors may introduce to the marketplace.
It also helps advertising agencies to develop new services of their own, so they can stay ahead of
competitors. Recruiting is the process of finding workers for a business. Prospecting is the process
of identifying and locating potential clients. Bartering is trading or exchanging one item for another.
SOURCE: PM:001
SOURCE: PP LAP 5—Product/Service Planning
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
26
65. D
Decline. In the decline stage of the product life cycle, the promotional product has lost its popularity,
and sales and profits have fallen, or declined. Sales and profits have not risen to a point at which
they could fall in the introductory stage. Sales and profits are rising in the growth stage, and both
level off during maturity.
SOURCE: PM:024
SOURCE: Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (pp. 347-348). Mason, OH:
South-Western.
66. D
Mass customization. Ongoing technological advancements are helping businesses take their
standard products and customize them for many people or businesses in an efficient, cost-effective
way. For example, a basic software application can be adapted or programmed to fit a particular
advertising agency's needs. Another example of mass customization is when a manufacturer
customizes packaging for its authorized distributors. Reverse standardization, interactive
transformation, and modified obsolescence are fictitious terms.
SOURCE: PM:039
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 308-309]. Mason, OH: South-Western.
67. C
Customer complaints. Product ideas come from many sources such as customer complaints. If a
business receives many complaints about a promotional display product, it might decide to think of
a way to redesign the product or develop a new product that will satisfy customers. Since
customers are the ones who use a product, their comments and complaints often help businesses
generate ideas to solve problems with existing products. After generating ideas, businesses often
test the concept and evaluate the cost of design. Promotional plans are intended to make
customers aware of a new or updated product.
SOURCE: PM:128
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 286-287]. Mason, OH: South-Western.
68. A
Warranty. A warranty is a promise made by the seller or the producer to the consumer that the
seller will repair or replace a product that does not perform as expected. A guarantee is a promise
made by the seller to the consumer that the seller will refund the consumer's purchase price if the
product does not perform as expected. A limited warranty does not contain the provisions of a full
warranty but may be limited to specific parts or repairs. Guarantees are often called money-back
guarantees because they promise a refund to the customer if the good/service does not meet
expectations.
SOURCE: PM:020
SOURCE: PP LAP 4—Warranties and Guarantees
69. D
Federal Trade Commission. The FTC protects consumers by enforcing laws governing fair
competition. The Federal Communications Commission regulates forms of communication
including radio, television, and telephone. The Securities and Exchange Commission regulates the
buying and selling of stocks and bonds. The Federal Advertising Administration is not a federal
agency.
SOURCE: PM:017
SOURCE: PP LAP 7—Consumer Protection in Product Planning
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
27
70. D
Repeat sales. Graphic design companies evaluate their customers' experiences to determine how
well they are satisfying their customers' needs and wants. If a company is not providing the
customers with positive experiences, the business can take corrective action. If a company is
providing its customers with positive experiences, the customers are more likely to buy again from
the company. When customers buy from the same business again, it is called repeat sales. A
company that is providing positive customer experiences will be likely to receive favorable rather
unfavorable publicity. Advertising is a promotional media for which a business pays. Sales quotas
are specific sales goals.
SOURCE: PM:138
SOURCE: Armstrong, G., & Kotler, P. (2000). Marketing: An introduction (5th ed.) [pp. 8-9]. Upper
Saddle River, NJ: Prentice Hall.
71. B
Market demand. Often, a specialty advertising business must change its product offerings to
accommodate its customers' changing wants and needs. To determine if a product change,
addition, or deletion should be made, the business must evaluate the market demand for the
product. If customer demand for certain goods or services is high, the business is likely to add new
products or change existing products. Businesses do not usually consider taxation rates as a first or
primary factor when identifying products to sell their customers. Storage space and promotional
strategy are considerations after the business evaluates the market demand for a product.
SOURCE: PM:130
SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [p. 222]. Boston:
McGraw-Hill/Irwin
72. C
Access information online. The wonderful thing about web-based specialty advertising businesses
(e.g., e-tailing) is that customers can serve themselves by accessing important information online,
including the answers to Frequently Asked Questions and product information. A web-based
business puts security measures into place so that people won't hack into its web site and cause all
kinds of damage. Although being able to return unwanted merchandise to the business's local store
is a beneficial service, it does not take advantage of technology. Web-based businesses encourage
customers to buy online rather than over the telephone by making it easy to buy within three clicks
or less.
SOURCE: PM:013
SOURCE: PM LAP 1—Customer Service Supersized!
73. A
New and creative. The needs of each client are different; therefore, the advertising services
provided to each client are unique. Although the basic services are the same, the way they are
delivered are often new and creative, which makes it difficult to evaluate their effectiveness. For
example, copywriting is a basic service. However, writing ad copy for a new product involves
creativity and new ideas. What worked for one product might not work for a new product. There's
not a specific formula to follow, which means that there is no guarantee that the services will be
effective. Although advertising services may be expensive, legal, ethical, and competitive, those are
not the reasons why it is sometimes difficult to evaluate their effectiveness.
SOURCE: PM:108
SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th
ed.)
[pp. 323-324]. Upper Saddle River, NJ: Prentice Hall.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
28
74. D
Business plan. Developing a successful brand depends on clearly identifying and defining the
advertising agency's strengths and competitive advantages. It is often helpful for advertising agency
owners to go back and review (or write, if they don't exist) their business plans to glean this
information. Press releases may describe the advertising agency's strengths, and as
representations of the brand, an advertising agency's name and slogan may imply its strengths or
competitive edge. Although some advertising agencies allude to their strengths and competitive
advantages on the Internet, they would not use their FAQs to address these issues.
SOURCE: PM:126
SOURCE: PM LAP 10—Building Your Business's Brand
75. D
Responsibilities and expectations. A contract is a legally binding agreement between two parties
that documents a promise to perform specific business activities. Advertising agencies often put a
lot of time and money into servicing their clients (e.g., television commercials). They often request
their clients to sign contracts to protect themselves from a client who defaults on contract
stipulations, such as payment. The contract should provide enough detail so that each party
understands their own, as well as the other party's responsibilities and expectations. Contracts do
not always document specific information about plans, strategies, ideas, risks, requests, and
personal preferences.
SOURCE: PM:264
SOURCE: Duncan, A. (n.d.). How to create a freelancing contract. Retrieved October 29, 2007,
from http://advertising.about.com/cs/copywriting/ht/howtocontract.htm
76. B
Increase sales. Promotional activities inform potential consumers about goods, services, images, or
ideas to achieve a desired outcome. One of the main outcomes is an increase in sales. Attracting
customers, enhancing image, and increasing name recognition are means to achieving this goal.
SOURCE: PR:001
SOURCE: PR LAP 2—Promotion
77. B
Sales promotion. Sales promotion is promotional activities other than advertising, personal selling,
and publicity which stimulate consumer purchases. It is used to supplement advertising and selling
efforts. Advertising is any paid form of nonpersonal presentation of ideas, goods, or services.
Personal selling is the use of planned, personalized communication in order to influence purchase
decisions and to ensure satisfaction. Publicity is nonpersonal promotion which is not paid for by the
company or individual which benefits from it. An example would be a newspaper article about the
opening of a new business.
SOURCE: PR:003
SOURCE: PR LAP 1—Promotional Mix
78. A
Using high-pressure selling tactics. It is unethical for a salesperson to use high-pressure tactics
(e.g., fear) to close a sale. Explaining notable product features, distributing product coupons, and
up-selling goods and services are not unethical promotional activities unless the salesperson
misrepresents the company or product in some way.
SOURCE: PR:099
SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (p. 220).
Mason, OH: South-Western.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
29
79. A
Trade practice. Misleading or deceptive advertising is considered to be an unfair trade practice
because it may have a negative effect on competition. Deceptive advertising may confuse or
mislead customers who will be unable to make buying decisions based on fact. When that occurs,
the businesses using deceptive advertising often have an unfair advantage over competitors who
are providing truthful information to customers. A business policy is a general rule or statement the
business follows. A sales trend is the direction in which sales are moving. A marketing plan is a set
of procedures or strategies for attracting the target customer to a business.
SOURCE: PR:101
SOURCE: Russell, J.T., & Lane, W.R. (1999). Kleppner's advertising procedure (14th ed.)
[pp. 654-655]. Upper Saddle River, NJ: Prentice Hall.
80. C
Spelling. The letter "r" has been left out of the word "through." The grammar, punctuation, and
spacing are all correct. Advertisers should check all advertising proofs carefully to prevent errors in
final ads, and make the necessary corrections.
SOURCE: PR:130
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 433).
New York: Glencoe/McGraw-Hill.
81. C
Undeliverable mail. Many times, an e-mail marketer receives mail back that cannot be delivered to
the intended recipient. Sometimes the e-mail address is entered incorrectly in the organization's
database. In other cases, people change Internet providers, which also changes their e-mail
addresses. When these changes occur and the business is not notified, the message cannot be
delivered to the intended receiver. Time can be considered a benefit for many e-mail marketers.
Unlike print advertising that needs to be developed and produced long before appearing in a
publication, e-mail messages can generally be constructed and executed much quicker, which
requires less lead time. When customers provide companies with feedback on their products, it is a
personal opinion that does not have a right or wrong answer. Therefore, the feedback cannot be
incorrect. Irrelevant content refers to information that does not relate to the message. Businesses
have control when developing message content and strive to make the information relevant to the
audience. Therefore, irrelevant content is not generally considered an obstacle that e-marketers
encounter when sending promotional messages.
SOURCE: PR:165
SOURCE: PR LAP 13—E-Mail as a Marketing Tool
82. B
$10.00. Cost per thousand (CPM) is a quantitative measure of the cost efficiency of a media vehicle
based on the cost of exposing 1,000 people to a promotional message. It is calculated by
multiplying the cost of the ad by 1,000, then dividing this number by the target audience ($600 x
1,000 = $600,000; $600,000 ÷ 60,000 = $10).
SOURCE: PR:009
SOURCE: PR LAP 6—Calculating Media Costs
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
30
83. B
Circulation. Circulation is defined as the number of people reached by a media vehicle. A company
with a well-known brand might want to reach as many people as possible. As a result, it places ads
in nationally distributed publications instead of local publications. Motivation is an influence or
reason that causes someone to take action. Reputation often refers to the image or status of an
entity. Businesses often consider a publication's reputation when buying advertising; however, a
business's reputation does not always indicate details regarding the publication's readership or
reach. For example, it is possible for a magazine to have a good reputation and small reach. It is
also possible for a publishing company to have some negative aspects in terms of overall
reputation and still maintain a sizable reach. Participation is the ability or willingness to take part or
share something. A publication's participation in a variety of activities does not necessarily reflect its
circulation in terms of size and demographics.
SOURCE: PR:104
SOURCE: Arens, W.F. (1999). Contemporary advertising (7th ed.) [p. 454]. Boston:
Irwin/McGraw-Hill.
84. D
Is read by potential customers. The travel section of Sunday newspapers is an effective place for
travel companies to advertise because people thinking about traveling often read that section in
order to get ideas, compare prices, and find out what is currently available. People frequently book
trips or make travel reservations by contacting the transportation companies that advertise in the
travel section, which is designed specifically to appeal to people interested in travel. Transportation
companies do not advertise in the travel section because it contains colorful photographs or
promotes competitive pricing. The travel section is intended for travelers, which might include
businesspeople, although businesspeople are not the main audience.
SOURCE: PR:132
SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th
ed.)
[pp. 260-261]. Upper Saddle River, NJ: Prentice Hall.
85. B
Meet media deadlines. All media have deadlines for the material they use. Businesses should find
out what these deadlines are and get their news releases to each medium on time. Businesses
should not pressure the editor, mention advertising, or play favorites when trying to get their news
releases presented as these tactics are not well received by the media.
SOURCE: PR:057
SOURCE: PR LAP 10—Writing News Releases
86. C
Lettering should be large enough for customers to read at a distance. The sign should encourage
the customer to approach the display. The lettering should stand out in order to attract the
customer's attention. Lettering must be legible, but that does not mean that it has to be block style.
SOURCE: PR:109
SOURCE: Newman, A., & Cullen, P. (2002). Retailing: Environment & operations (pp. 264-265).
London: Thomson Learning.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
31
87. B
Successful sales promotions often use consistent themes that are coordinated with advertising
efforts. When using consistent themes throughout all promotional efforts, consumers are more
likely to remember the product. Using something as simple as a tag line in all promotion efforts
(e.g., Nike's "just do it") often increases product recognition and usage. Sales promotions are
generally used to boost short-term sales. For example, a retailer might discount a specific product
to deplete an inventory overstock. Sales promotion is usually most effective if different media
vehicles (e.g., Internet, print) are used. Event planning is crucial for marketers that employ sales
promotion activities. Some governments have very specific regulations regarding how information is
communicated to promotion participants. For example, a government might require that the
sponsor of a contest clearly communicate the rules and conditions for the event.
SOURCE: PR:094
SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 408410). Mason, OH: South-Western.
88. A
Selecting the forms of promotion that will be used. The promotional mix is the combination, or
blend, of marketing communication channels that a business uses to send its messages to
consumers. Selecting the combination that is most appropriate for the business is part of
promotional planning. Deciding whether to use a push or pull strategy, or a combination of the two,
is another step in planning. Most businesses do not need to identify the available forms of
promotion as they are aware of their existence and availability. Monitoring the promotions used by
competitors may be part of promotional planning or budgeting.
SOURCE: PR:073
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 363367).
New York: Glencoe/McGraw-Hill.
89. B
Special location within. Many businesses coordinate promotional and selling activities by placing
the products being promoted in special locations that are designed to attract attention. The
products being promoted are prominently displayed in special areas that are accessible to
customers. Businesses would not display products being promoted in unused parts of a business,
in restricted sections, or in areas adjacent to the business because customers would not be likely to
find them.
SOURCE: PR:076
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 367,
385-387). New York: Glencoe/McGraw-Hill.
90. C
Sales results of past ads. Businesses need to maintain a file of data on each advertisement that
they run so that the information can guide their future advertising efforts. Data that could be
maintained include the cost of the advertisement, how long it was run and in which media, the ad's
size, the products advertised, when the advertisement appeared, how much sales increased after
the ad appeared, and other activities and circumstances that might have influenced the
effectiveness of the ad. The names of the ad personnel and the time spent preparing past ads
would not be considered significant. Product concept tests are conducted when new products are
being developed to determine which product idea would best meet the needs of the target market
and result in the highest profit for the business.
SOURCE: PR:075
SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th
ed.)
[pp. 140-144]. Upper Saddle River, NJ: Prentice Hall.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
32
91. B
Objective and task. The objective and task method sets objectives for advertising, calculates how
much advertising will be needed to reach those objectives, and budgets funds to cover the costs
involved. The competitive parity method bases the advertising budget on what competitors are
spending for their advertising. The percentage of past sales method budgets a certain percent of
last year's sales for advertising, and the percentage of anticipated sales bases the advertising
budget on the sales forecast.
SOURCE: PR:160
SOURCE: Burrow, J.L. (2002). Marketing (pp. 436-437). Mason, OH: South-Western.
92. D
To get people talking. The main goal of buzz marketing is to get people talking about something
such as a product or an idea. Buzz marketing often involves the use of someone who is well known
or influential who will talk about the product or idea and generate interest. Then, the general public
starts to talk and the message spreads by word of mouth. Depending on what is being marketed, a
secondary goal of buzz marketing might be to change attitudes, encourage buying, or influence
emotions. However, the main goal is to get people talking to spread the message.
SOURCE: PR:229
SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th
ed.)
[pp. 168-169]. Upper Saddle River, NJ: Prentice Hall.
93. C
Promotional mix. This is the combination, or blend, of marketing communication channels that a
business uses to send its messages to consumers. These channels include advertising, sales
promotion, personal selling, and publicity. Advertising in the local newspaper and sending directmail pieces to potential customers are forms of advertising. Sponsoring a contest and offering
rebates are sales promotions. A business that decides to reach potential customers by advertising
and using sales promotions is not establishing its communication plan, selling policy, or distribution
strategy.
SOURCE: PR:237
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 363365).
New York: Glencoe/McGraw-Hill.
94. B
The loyalty shown by repeat customers. Although the steps taken to build and promote goodwill
cost money, businesses are able to offset these costs from the results of customer loyalty: reduced
selling costs, positive word-of-mouth advertising, and increased sales volume. The use of effective
follow-up techniques is one of the steps taken in building a clientele for which businesses must pay.
SOURCE: SE:828
SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)
95. D
Check stock availability. Technology tends to increase the efficiency in processing a sale. Because
laptop computers are small and portable, specialty advertising salespeople can easily take them to
sales calls. The salesperson can access the company's network to place orders and also to get
important information for the customer, such as checking to see if a certain product is available to
ship. A bill of lading is a contract between a shipper and the transportation company. Salespeople
often use laptop computers to send promotional messages, write sales proposals, and analyze
shipping information, but they would not usually complete those tasks during a sales call.
SOURCE: SE:107
SOURCE: Hite, R., & Johnston, W. (1998). Managing salespeople: A relationship approach
(pp. 109-110, 115). Mason, OH: South-Western.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
33
96. D
Annual report. An annual report is a promotional publication prepared by many businesses that
explains the economic condition of the company. This publication usually contains information
about the business's activities such as plans for expansion, new product testing, market trends, and
current and projected profit. Salespeople can use this type of information to promote the company's
stability and good reputation with customers and encourage sales. An employee handbook
contains information about benefits and how employees are expected to act on the job. A magazine
article usually is not written by the business. A training manual contains information that teaches
employees how to perform on the job.
SOURCE: SE:062
SOURCE: Burrow, J.L. (2002). Marketing (p. 466). Mason, OH: South-Western.
97. D
Hidden. A hidden benefit is an advantage of the specialty advertising product that is not
recognizable unless a salesperson points it out. An obvious benefit is a product advantage that is
apparent, plain to see, and easily recognizable. Limited and quantitative are not commonly used
terms that describe a type of product benefit.
SOURCE: SE:109
SOURCE: SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)
98. C
Possess excellent presentation skills. When an advertising account executive pitches promotional
ideas to a client, s/he is selling the advertising agency's expertise and services. To develop
promotional ideas for a client, an advertising agency must understand the business, its target
markets, and its products. When pitching the ideas, the account executive must communicate that
the agency understands the client's business and tie the promotional ideas to that understanding.
To do this, the account executive should possess excellent presentation skills. If the account
executive presents the ideas effectively, it is more likely that the client will approve of the ideas.
Because the client has not approved the ideas, a detailed execution plan has not been developed.
Therefore, the account executive does not need to present all the details for executing a
promotional campaign. Asking the client to hold his/her questions would be rude. Discussing the
agency's track record may reinforce the agency's expertise for the client.
SOURCE: SE:347
SOURCE: Arens, W.F. (2004). Contemporary advertising (9th ed.) [p. 121]. New York: McGrawHill.
99. B
Managers. Managers are responsible for setting the overall goals and motivating their employees to
work towards accomplishing them so the public relations agency can be successful. Employees are
responsible for working towards the goals of the agency, but they are not responsible for setting
goals. Consultants do not set goals for businesses other than their own. Supervisors guide
employees in carrying out the activities of the agency.
SOURCE: SM:001
SOURCE: BA LAP 6—Manage This!
100. C
The business will eventually close its doors. Media production businesses operate in an
environment of change. The business must respond to these changes by adjusting its goals,
objectives, and strategies, or it will not be able to remain open. The business may be stable and
successful, or earn substantial profits in the beginning, but these trends will not last. The business
is not likely to be imitated by competitors who want to succeed.
SOURCE: SM:011
SOURCE: MN LAP 43—External Planning Considerations
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