2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
1
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
a fact or opinion.
C. blurting out statements without thinking.
D. paying attention when others are speaking.
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
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.
Copyright © 2008 by Marketing Education Resource Center®, Columbus, Ohio
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
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
2
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 work-life 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
D.
Somewhat important
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.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
3
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.
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.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
4
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.
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.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
5
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
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 payroll-processing 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
6
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.
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.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
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.
D.
7
publicity.
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.
D.
marketing plan.
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.
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.
2008 DECA Ontario Provincials
Test 961
ADVERTISING CAMPAIGN
8
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.
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.
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.
Test 961
ADVERTISING CAMPAIGN — KEY
9
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.
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.
Test 961
ADVERTISING CAMPAIGN — KEY
10
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. 268-277]. Cincinnati:
South-9Western College.
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.
Test 961
ADVERTISING CAMPAIGN — KEY
11
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: SouthWestern 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
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
Test 961
ADVERTISING CAMPAIGN — KEY
12
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.
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
Test 961
ADVERTISING CAMPAIGN — KEY
13
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.
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: SouthWestern Educational.
Test 961
ADVERTISING CAMPAIGN — KEY
14
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.
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
Test 961
ADVERTISING CAMPAIGN — KEY
15
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?
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.
Test 961
ADVERTISING CAMPAIGN — KEY
16
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
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.
Test 961
ADVERTISING CAMPAIGN — KEY
17
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.
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. 140-141]. 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 professionallooking 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: South-Western 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
Test 961
ADVERTISING CAMPAIGN — KEY
18
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
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.
Test 961
ADVERTISING CAMPAIGN — KEY
19
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: SouthWestern.
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)
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
Test 961
ADVERTISING CAMPAIGN — KEY
20
62. A
Total dollar sales needed to reach break-even. Break-even can be expressed in units or dollars. Calculating breakeven 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, 574-575). 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
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.
Test 961
ADVERTISING CAMPAIGN — KEY
21
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
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!
Test 961
ADVERTISING CAMPAIGN — KEY
22
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.
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: SouthWestern.
Test 961
ADVERTISING CAMPAIGN — KEY
23
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 email 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
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.
Test 961
ADVERTISING CAMPAIGN — KEY
24
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.
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. 408-410). 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. 363-367).
New York: Glencoe/McGraw-Hill.
Test 961
ADVERTISING CAMPAIGN — KEY
25
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.
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 direct-mail 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. 363-365).
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-ofmouth 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)
Test 961
ADVERTISING CAMPAIGN — KEY
26
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.
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: McGraw-Hill.
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