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2006 DECA Ontario February ProvincialsTest 869 ADVERTISING CAMPAIGN 1

1. Which of the following is an example of an advertising agency providing a service to a client:A. Entering several advertisements in an industry competitionB. Offering a promotion to an experienced copywriterC. Arranging for a production company to film a commercialD. Interviewing applicants for a position in the art department

2. Advertising is credited as a force behind the reduction of drinking alcohol, smoking cigarettes, and taking drugs, which has been achieved through the ___________ of negative behaviors.

A. deglorifying C. demarketing B. desensitizing D. deregulating

3. Which marketing function helps an newspaper publisher forecast how much ad space will be sold in a given period?

A. Promotion C. Marketing-information managementB. Risk management D. Distribution

4. What is an advertising agency's total cash available if it has a beginning cash balance of $2,400, total cash receipts of $3,500, and payments due of $1,200?

A. $7,100 C. $6,500B. $4,700 D. $5,900

5. The management function of business is usually responsible forA. setting policy. C. preparing ads.B. serving customers. D. stocking shelves.

6. The owners of a corporation are known asA. directors. C. stockholders.B. officers. D. entrepreneurs.

7. Which of the following is a current issue in Internet advertising:A. Recommending best time slots for placement of Internet adsB. Setting standards for components to appear in Internet adsC. Determining the effectiveness of Internet advertisementsD. Identifying color combinations best suited for the Internet

8. Simmons Market Research and Standard Rate and Data Service (SRDS) are vast databases used in what functional area of advertising?

A. Media planning C. AccountingB. Copy writing D. Broadcast production

9. What type of security problem does a media company have if its employees routinely take pens and paper home for personal use?

A. Robbery C. BurglaryB. Pilferage D. Shoplifting

10. What category of employees usually are exempt from the overtime pay requirement established by the Fair Labor Standards Act?

A. Executive C. UnionB. Civil service D. Clerical

11. Which of the following is a type of written communication that an advertising agency uses:A. Card catalog C. Oral reportB. Exit interview D. Collection letter

Copyright © 2006 by Marketing Education Resource Center®, Columbus, Ohio


12. Which of the following should media buyers be sure to include in simple written reports:A. Necessary information only C. Complete bibliographyB. Extensive charts and graphs D. Names of all references

13. Before preparing a complex written report to management, you should first determine exactlyA. what management needs or wants to know. C. what effects the report might have.B. how long the report will be. D. how you will be rewarded.

14. Managers who conduct staff meetings often assign one of their employees to takeA. minutes. C. requests. B. messages. D. questions.

15. Which of the following is an ethical issue concerning reproducing the material found on the Internet:A. Assume the work is copyrighted. C. The material may not be copied.B. The material is publicly owned. D. You must pay the author to use it.

16. Using coercive power in distribution channel relationships is illegal in the United States if itA. restricts competition. C. controls arbitration.B. creates exclusive territories. D. establishes contracts.

17. The use of two or more marketing channels for the distribution of a product is known as __________ distribution.

A. dual C. twin B. multiple D. double

18. Which of the following are considered human resources:A. Workers and managers C. Equipment and toolsB. Hours and wages D. Land and water

19. "I'm tired of the government's telling me what to do. They made me become a teacher, they determine my salary, and they even control where I can live," the worker complained. What type of economic system is this person complaining about?

A. Free enterprise C. TraditionalB. Market D. Communist command

20. The funds left after all the advertising agency's expenses are paid are referred to asA. total expenses. C. sales revenue.B. net profit. D. business income.

21. Which of the following protects an advertising agency from the risk of breach of contract:A. Warranty C. Surety bondB. Guarantee D. Fidelity bond

22. Simplified worker training, increased production rates, and increased employee interest are all basic advantages of

A. mass production. C. job scope.B. job depth. D. specialization.

23. Union members who stop work in order to support the striking members of another union are participating in a __________ strike.

A. limited C. sympathetic B. jurisdictional D. wildcat


24. When a government sells notes and bonds to generate income to pay expenses, it is increasing theA. national debt. C. trade deficit.B. federal budget. D. inflation rate.

25. Promotional businesses that need information about industry activities may have a separate section of the marketing-information management system whose only responsibility is to

A. improve stock control. C. monitor the competition.B. reduce business risk. D. expand promotional activities.

26. The Idea Place Advertising Agency has been hired by a shopping mall to conduct reseach and develop a promotional campaign. What kind of marketing research is being carried out when the advertising agency has an employee count the cars in the shopping mall's parking lot?

A. Informal C. CausalB. Formal D. Internal

27. One of the main advantages to a promotional business of using a database to organize and store marketing data is that the information can be

A. shared with local competitors. C. retrieved by all employees.B. arranged in various categories. D. transferred to compact disks.

28. For which of the following purposes might a promotional business use the information about customers that is stored in its database:

A. To prepare annual reports C. To develop original softwareB. To analyze previous purchases D. To calculate operating expenses

29. What are the primary advantages of using descriptive statistics?A. You are able to make charts easily and create unbound reports faster.B. You can reach conclusions that extend beyond what the data shows.C. It allows you to summarize data and make comparisons across units.D. The data is not described in numerical form and can be transferred easily.

30. Business goals are accomplished by means of marketingA. budgets. C. profit. B. strategies. D. salespeople.

31. Dividing potential customers into groups according to their common characteristics is known asA. limited market appeal. C. advertising.B. market segmentation. D. target marketing.

32. What type of information do promotional businesses need to obtain before they can effectively select a target market?

A. Confidential C. RealisticB. Psychographic D. Sociological

33. Which of the following is a factor that an media company should consider in choosing a method of preparing its sales forecasts:

A. Accuracy of prediction C. Marketability of dataB. Versatility of use D. Quantity of copies

34. Which of the following is not a question about changes in a specialty advertising business's market that sales forecasters might need to ask:

A. Will our customers be the same as they have been?B. Is the makeup of the trading area changing?C. Has the local population increased or decreased?D. What is the current rate of inflation?


35. In which of the following situations might a graphic design company decide that the cost of implementing a marketing plan for a specific product is much greater than the financial benefits:

A. Level of profitability will remain the same.B. Advertising rates are increasing slightly.C. Two competitors have 65% of current market share.D. Target market buys $500,000 worth of product each year.

36. What is your primary source of marketing-research information once you have started your own advertising agency?

A. Current customers C. EmployeesB. Online surveys D. Accounting records

37. The primary reason an advertising agency benefits when account representatives practice good customer relations is that it

A. segments the business's market. C. promotes quality service.B. prevents customer objections. D. develops repeat customers.

38. Advertising agency employees who have different opinions about how a certain task should be performed often negotiate in order to

A. reach a compromise. C. make a statement.B. avoid rejection. D. create opposition.

39. Which of the following is the best response when a client tells an advertising agency account representative that s/he does not like the new logo that the agency created:

A. "I'll take it back to the graphic artist. It's his/her fault that you aren't happy with it." B. "I'm sorry. Let's discuss what you want and then we can develop a couple of new options." C. "We are printing your ad on Tuesday, so I don't know if we can do anything for you now." D. "That's too bad, because we don't have time to develop a new logo for you."

40. When creating project plans, what do advertising agencies often develop in the event of a crisis or unexpected situation?

A. Modified schedule C. Escape mechanism B. Suggestion program D. Contingency plan

41. Before an advertising manager delegates a project to staff members, the manager mustA. give the staff members a motivational speech to enhance productivity.B. consider the client's leadership style and staffing preferences.C. determine the resources that are needed to complete the assignment.D. let the staff members decide what part of the project they want to complete.

42. What should a media company explain fully when dismissing an employee?A. Work shortage C. Severance packageB. Retirement option D. Layoff policy

43. A systematic process for enabling employees to acquire the skills, knowledge, and attitudes that are needed in order to attain current organizational goals is known as

A. implementation. C. needs assessment.B. training. D. behavior modeling.

44. Which of the following is a factor in identifying the actual problem behind an employee's complaint:A. Taking action as quickly as possibleB. Listening carefully to what the employee saysC. Asking the employee to suggest a solution to the complaintD. Considering the long- and short-term effects of a solution


45. Which of the following is part of a copywriting department supervisor's evaluating responsibilities:A. Determining who will do the work C. Developing standards for judging workB. Getting along well with others D. Developing work schedules

46. Variable expenses increase in direct proportion to the increased rate ofA. production. C. automation.B. competition. D. motivation.

47. The importance to the advertising agency of employees' regularly performing housekeeping duties is toA. pass insurance inspections. C. present a favorable business image.B. keep employees occupied. D. reduce the need for maintenance.

48. Actual procedures used in budgeting depend mainly upon theA. capital outlay. C. sales budget.B. type of business. D. fiscal year.

49. Reducing the amount of money that an advertising agency spends on supplies is called a __________ control program.

A. quality C. cost B. time D. quantity

50. Which of the following is an example of acting on a decision:A. Evaluating an outcome C. Choosing an option B. Identifying a problem D. Accepting a promotion

51. Which of the following is a career search tool for determining what you are capable of doing now and might be good at doing with additional training or education:

A. Personality test C. Interest survey B. Intelligence test D. Aptitude test

52. What do many professional organizations in advertising develop that their members are encouraged to follow?

A. Performance goals C. Ethical standards B. Operating procedures D. Evaluation systems

53. Full-service international advertising agencies that provide extra services and employ reputable creative talent usually charge high fees because their clients associate price with

A. economy. C. supply.B. quality. D. value.

54. The bait-and-switch tactic of luring customers with low-priced products with the intention of trading the customer up to a higher priced version is

A. ethical and illegal. C. ethical and legal.B. unethical and legal. D. unethical and illegal.

55. Which of the following technologies allow promotional goods businesses to quickly determine the effect that different prices will have on the bottom line before setting the prices of various items:

A. Point-of-sale system C. Optical scanningB. Computer software D. Digital imaging

56. What are promotional businesses responding to when they change their selling prices to correspond to changes in what customers can afford to buy?

A. Elastic demand C. Product mixB. Market share D. Economic growth


57. How many promotional signs must the Designer Signs Warehouse sell to break even if the total fixed costs of the signs are $1,225,000; selling price per sign is $65.00; and variable costs per sign are $58.00?

A. 204,166 C. 203,333 B. 174,285 D. 175,000

58. As manager of ABC Promotional Goods, it is your responsibility to establish the selling price of a new product using the retail method of markup. The product costs $300, and the markup percentage is 40%. What will the selling price be?

A. $420 C. $120 B. $500 D. $750

59. Which of the following does effective product/service management help advertising agencies to do:A. To recruit C. To barterB. To prospect D. To compete

60. What is a promotional business's primary marketing objective for a product that is in the introductory stage of its life cycle?

A. To get customers to buy the product B. To decide whether to eliminate the productC. To adjust and enlarge distribution of the productD. To compete effectively with other sellers of the product

61. Which of the following is an example of an obsolete product that has been replaced by an idea based on that product:

A. Dictionary C. Calendar B. Typewriter D. Fax machine

62. What type of standard is a media company setting when it requires all invoices to be free of pricing errors?

A. Industry C. QuantityB. Quality D. Activity

63. The terms used to refer to the way in which warranties are stated or understood areA. limited and full. C. verbal and written.B. spoken and limited. D. express and implied.

64. A group of related services sold by an advertising agency is called its productA. depth. C. width.B. item. D. line.

65. A characteristic of product bundling is that the price of the bundle usually isA. lower than the combined price of the products sold separately.B. intended to be the same as the prices set by competitors.C. high to reflect the quality and status of each product.D. adjusted based on the type of customers who purchase the bundle.

66. Advertising agencies that offer printing services on the premises have a competitive edge over those that do not because this service

A. enables the agency to provide discounts to clients. B. is a convenience to clients. C. reduces the number of dissatisfied clients. D. increases employee productivity.


67. A word or group of words that distinguishes a seller's product from those of competitors is called a(n) __________ name.

A. competitive C. generic B. imaginative D. brand

68. Customer services that all advertising agencies should provide includeA. open return policies. C. merchandise repair. B. convenient meeting hours. D. free meals.

69. When developing strategies to position a product, a promotional business might focus on the product's A. evaluations. C. perceptions.B. resources. D. attributes.

70. One way an advertising agency can measure the success of a time-sensitive direct-mail catalog for its client is to

A. conduct a recognition test with a select group of consumers.B. review the bonus earnings of catalog developers on a quarterly basis.C. determine the number of hits on the company's web site over the course of a year.D. track sales of catalog products in relation to all products during a given time period.

71. A advertising agency's strengths and competitive advantages are critical in brand development and can often be found in the agency's

A. press releases. C. name and slogan. B. FAQs on the Internet. D. business plan.

72. An important objective of promotion is to __________ buyers.A. inform C. deceive B. intimidate D. delude

73. One reason that some groups are critical of promotional practices is because they think that promotionsA. eliminate stereotypes. C. are error free.B. manipulate consumers. D. reduce people's fears.

74. Which of the following is not an aspect of sales promotion:A. Displays C. AdvertisingB. Contests D. Premiums

75. A television commercial promoting a specific line of riding lawn mowers portrays a man cutting grass. This is an example of product promotion that

A. reinforces stereotypes. C. induces fear.B. exhibits poor taste. D. uses subliminal messages.

76. Print advertising copy that includes a personal statement about a user's experience with a product is called a(n)

A. personal ad. C. feature. B. endorsement. D. testimonial.

77. The primary reason that an ad's headline must be appealing is toA. make the ad professional looking. C. entice the reader to read the ad.B. perform the ad's major selling function. D. help identify prospective buyers.

78. A catalog of computer illustrations from which businesses can choose appropriate drawings to use in their ads is called

A. clip art. C. logotypes.B. halftones. D. original art.


79. What type of advertising copy draws attention by using words with strong psychological impact?A. Comparative C. FactualB. Emotional D. Testimonial

80. One of the main objectives of print advertising copy is toA. describe the product fully. C. emphasize product features.B. build desire for the product. D. explain the product's cost.

81. When developing an advertising layout, the designer needs to decideA. if the ad should be visually appealing to the reader.B. whether the ad needs a focal point.C. if a headline is needed to convey information.D. how to arrange the sequence of the elements.

82. Read the following sentences from an advertising proof and determine what kind of error has occurred: "Puppioes, like babies, have special nutritionial needs. But, unlike a baby, a puppy does 90% of its gorwing and developing in only a year."

A. Spelling C. Missing textB. Grammar D. Punctuation

83. Which advertising medium often uses databases for product promotion?A. Outdoor C. InternetB. Television D. Radio

84. Which of the following is a characteristic of an effective direct-mail letter that creative boutiques often write to customers:

A. Interactive C. TechnicalB. Unsolicited D. Personalized

85. When developing the first page of a web site, a web designer should consider usingA. few graphics and a lot of white space. B. eye-catching graphics and several fonts.C. large font sizes and little white space.D. one or two typefaces and eye-catching graphics.

86. Which of the following is an example of an objective that a promotional goods business would develop before selecting advertising media:

A. Increase money allocated to budget C. Increase sales by 10% next yearB. Analyze activities of competitors D. Research demographics of the market

87. A business owner who wants to obtain a reduced rate for a series of local radio commercials might contract for what type of promotion?

A. Display C. TransitB. Package D. Contingent

88. Why would a local media company financially support a local charity?A. To increase prices C. To reduce operating expensesB. To decrease company profits D. To increase goodwill towards the company

89. What is often the goal of a creative boutique's public-relations plan?A. To produce brochures C. To sponsor eventsB. To develop advertising D. To maintain goodwill


90. Why would an advertising agency create promotional signs that are designed to be placed in a client's store windows?

A. To advertise the store C. To direct customersB. To identify specific departments D. To introduce new products

91. What do graphic designers often use in catalogs to make them attractive and appealing to customers?A. Color separation C. High-quality photography B. Offset lithography D. Copy-dominant layout

92. An important external factor that affects the type of promotional plan a copywriting business develops is the copywriting business's

A. sales objectives. C. available budget.B. image. D. competition.

93. What do advertising agencies often develop for their clients' advertisements that they use repeatedly to make the advertised products appear unique and memorable?

A. Goals C. ThemesB. Standards D. Targets

94. A advertising agency's promotional plan usually is developed to support the advertising agency'sA. image. C. market.B. income. D. profit.

95. Which of the following are services that the sole proprietor of a small graphic design business might offer in order to enhance customer service and increase sales:

A. Piecework coordination C. Travel arrangements B. Product sampling D. Inventory services

96. In order to build a clientele for an advertising agency, it is important to A. know your clients' customers personally. C. provide friendly, courteous service. B. change the service levels frequently. D. provide extensive media production services.

97. What cost-effective tool is often used by salespeople and provides product information to customers that they can view on personal computers?

A. Micro bites C. Audio disks B. Multimedia disks D. Color transparencies

98. What do advertising agency account representatives need to explain to clients to persuade them to use the agency's services?

A. Features C. Benefits B. Uses D. Warranties

99. Which of the following types of products usually require the least effort for salespeople to sell:A. Tangible C. OptionalB. Expensive D. Intangible

100. Which of the following is a selling technique that will help to sell a good or service:A. Involving the customer in the sales presentationB. Informing the customer about his/her needsC. Telling the customer what s/he should buyD. Asking the customer what s/he can afford to spend


1. CArranging for a production company to film a commercial. Advertising agencies provide many services to clients, although some of these services are actually performed by outside vendors because most agencies do not have the capability of providing all types of services. Usually, advertising agencies do not film commercials for clients, but contract with production companies to handle that service. The agency probably would write the script and hire the talent, but rely on the production company for the actual filming. The agency, rather than the client, makes the arrangements, which is part of the service the client pays the agency to perform. Entering competitions, interviewing applicants, and promoting personnel are not services that advertising agencies provide to clients.SOURCE: BA:116SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.)

[pp. 17-19]. Upper Saddle River, NJ: Prentice Hall.

2. CDemarketing. While the advertising industry has many critics, it is also given credit for persuading consumers to reduce and even eliminate certain of their behaviors which are deemed to have a negative impact on individuals and/or society - not only drinking, smoking, and taking drugs, but also being sedentary and driving over the speed limit. Desensitizing would mean that consumers would get so accustomed to seeing these behaviors they would hardly even view them as negative. Deglorifying can be a tactic or even a by-product of the demarketing process. Deregulation is not a desired outcome with respect to these behaviors, and although in other cases it is something that advertising might influence indirectly, it is not something it can directly affect.SOURCE: BA:118SOURCE: Mowen, J. C. (1995). Consumer behavior (4th ed) [pp. 290-291]. Upper Saddle River, NJ:

Prentice-Hall.

3. CMarketing-information management. Marketing-information management is a marketing function, which involves gathering, accessing, synthesizing, evaluating, and disseminating information for use in making business decisions such as what and how much it can expect to sell. Distribution involves moving, storing, locating, and/or transferring ownership of goods and services. Risk management is not a marketing function. Promotion involves communicating information about goods, services, images, and/or ideas to achieve a desired outcome.SOURCE: BA:004SOURCE: MB LAP 2—Marketing Functions

4. D$5,900. Total cash available is the amount of cash an advertising agency has available to spend each month. An advertising agency determines the amount of cash available by adding its total cash receipts to its beginning cash balance ($2,400 + $3,500 = $5,900). Payments due are part of cash payments and would be subtracted from total cash available to determine ending cash balance.SOURCE: BA:016SOURCE: MN LAP 60—Cash Flow

5. ASetting policy. Most businesses have established policies and set standards by which the business is governed. Setting policy is a function of management, which is the process of planning, organizing, directing, and controlling activities in order to achieve goals or objectives. Serving customers, stocking shelves, and preparing ads are different kinds of work carried out by a company's employees under the direction of management.SOURCE: BA:022SOURCE: BA LAP 6—Manage This!

Copyright © 2006 by Marketing Education Resource Center®, Columbus, Ohio

Test 869 ADVERTISING CAMPAIGN — KEY 11

6. CStockholders. Stockholders become owners of a corporation through their purchases of shares of stock. Directors are members of the board of directors of the corporation. The directors of a corporation appoint the officers and give them the authority to operate the business. Entrepreneurs are people who go into business for themselves.SOURCE: BA:028SOURCE: BA LAP 7—Own It Your Way

7. CDetermining the effectiveness of Internet advertisements. Identifying the role of advertisements in purchase decisions is an issue for all types of businesses. Other current issues for Internet advertisers include creative standards and ad models, consumer privacy, and ad delivery. Advertising on the Internet provides the opportunity to be available to readers 24 hours a day, seven days a week. Color combinations and ad components are not current issues being addressed by the advertising industry.SOURCE: BA:120SOURCE: Mobic.com. (n.d.). Wireless Advertising Association: WAA addresses issues facing industry;

Board of directors and association begin establishing voluntary guidelines. Retrieved November 9, 2005, from http://www.mobic.com/oldnews/2000/07/wireless_advertising_association.htm

8. AMedia planning. Media planners use Simmons for data on product, brand, and media usage; SRDS for information on media rates, format, production requirements, and audience, as well as a variety of other research and planning tools. Copywriters may use this information indirectly when it is provided by the media department; while the broadcast production department is not likely to use it, since that department is focused more on the technical aspects of advertising. Accounting would not need to use these resources to maintain financial records.SOURCE: BA:163SOURCE: Arens, W. F. (1999). Contemporary advertising (7th ed.) [p. 255]. Boston: Irwin/McGraw-Hill.

9. BPilferage. Pilferage is the theft of small sums of money or inexpensive items from a business. Employees who take office supplies home for personal use are guilty of pilferage. Although the dollar amount of each theft is small, the total can add up to a considerable loss for a media company. Pilferage is a security problem because it can cause financial losses that threaten the security of the media company. Burglary is any illegal entry into a building to commit a theft. Robbery is theft that involves the use of force, violence, or fear. Shoplifting is theft of goods by customers.SOURCE: BA:041SOURCE: RM LAP 4—Security Precautions

10. AExecutive. The Fair Labor Standards Act contains several provisions, one of which involves overtime pay. The act states that most employees who work more than 40 hours a week must be paid at least one-and-a-half times normal pay for those hours over 40. However, some categories of employees usually are exempt from that requirement. One of those categories is executive because executives have significantly more responsibilities than other employees, and they receive much higher salaries. Executive compensation is negotiated on the assumption that those employees will work as many hours as it takes to manage the business or a department in the business. Civil service, union, and clerical employees usually are covered by the provisions of the Fair Labor Standards Act and receive overtime pay.SOURCE: BA:055SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [p. 397]. Upper Saddle River, NJ:

Prentice Hall.


11. DCollection letter. An advertising agency sends collection letters to customers who owe the advertising agency money and have not made arrangements to pay. Collection letters must be written carefully in order to prompt customers to pay without threatening them in any way. A card catalog is used by libraries without computer systems to keep track of the libraries' holdings. An exit interview is a discussion with an employee who is leaving a company. Both an exit interview and an oral report are forms of verbal communication.SOURCE: CO:016SOURCE: Lesikar, R. V., Pettit, J. D., Jr., & Flatley, M. E. (1999). Lesikar's basic business

communication (8th ed.) [pp. 187-200]. Boston: Irwin/McGraw-Hill.

12. ANecessary information only. A characteristic of simple written reports is that they are concise and usually contain only necessary information. The purpose of simple written reports is to present important information in a clear manner. Adding additional or supporting information that is not absolutely necessary decreases the effectiveness of simple written reports. Extensive charts and graphs, complete bibliographies, and the names of all references may be included in complex written reports, but they are not used in simple written reports.SOURCE: CO:094SOURCE: Clark, L. R., Zimmer, K., & Tinervia, J. (1995). Business english and communication

(8th ed.) [pp. 467-468]. New York: Glencoe/McGraw-Hill.

13. AWhat management needs or wants to know. It is the responsibility of employees to provide management with information needed. The data requested should be gathered carefully and presented accurately without attempting to determine their effects. It is not possible to know in advance exactly how long a report will be. Employees who are skilled at preparing reports may be rewarded in some way for their efforts, but that should not be a consideration in carrying out an assignment.SOURCE: CO:009SOURCE: Clark, L. R., Zimmer, K., & Tinervia, J. (1995). Business english and communication

(8th ed.) [pp. 412-413, 416-418]. New York: Glencoe/McGraw-Hill.

14. AMinutes. Minutes are the official record of the proceedings of a meeting and summarize the meeting's important points. Managers who conduct staff meetings often assign an employee to take minutes in order to have an accurate account of what was discussed and decided upon during the meeting. A copy of the minutes usually is provided to each employee who attended the meeting. A request involves asking for something. Messages are a type of communication. A question is asking for information.SOURCE: CO:140SOURCE: Ricketts, C. (1997). Leadership: Personal development and career success (pp. 291-293).

Albany, NY: Delmar.

15. AAssume the work is copyrighted. Virtually everything created by an original author is copyrighted. Material posted on the Internet is not exempt from copyright laws. In most cases, the material may be copied for personal use but may not be copied and sold, because that would violate copyright laws. Therefore, reproducing the material is not only a legal issue, but also an ethical one. The material is not publicly owned. Most of the information on the Internet is available free of charge; however, some sites charge a subscription fee to access material.SOURCE: CO:051SOURCE: Miller, R. L., & Jentz, G. A. (2002). Management and e-commerce: The online legal

environment (pp. 113-119). Cincinnati: West Legal Studies in Business, South-Western College Publishing.


16. ARestricts competition. The Sherman Act of 1890 and the Clayton Act of 1914 were drafted to prohibit monopolistic practices that encouraged anticompetitive activities. If coercive power is used to substantially reduce competition, it is in violation of federal or state antitrust laws. Exclusive territories are legal under certain circumstances. Arbitration and contracts are legal.SOURCE: DS:058SOURCE: Bearden, W. O., Ingram, T. N., LaForge, R. W. (2001). Marketing: Principles and

perspectives (3rd ed.) [pp. 38-39, 310-312]. New York: Irwin/McGraw-Hill.

17. ADual. Dual distribution is used by manufacturers to reach different segments of a target market by varying the channels of distribution. Toll-free phone lines, web sites, and retailers may be combined to meet the consumer needs. Twin, multiple, and double are not types of distribution methods.SOURCE: DS:050SOURCE: Pride, W. M., & Ferrell, O. C. (2000). Marketing: Concepts and strategies (2000e) [p. 359].

Boston: Houghton Mifflin.

18. AWorkers and managers. Human resources are people who work to produce goods and services. Generally, any worker will fall into the category of human resources, but the hours worked and wages paid are not part of the category. Equipment and tools used to produce goods and services are capital goods. Land and water are examples of natural resources, items found in nature that are used to produce goods and services.SOURCE: EC:003SOURCE: EC LAP 14—Economic Resources

19. DCommunist command. In a communist command economy, the government owns the means of production and distribution and controls many aspects of people's economic lives. In market, or free enterprise economies, people are free to make their own economic decisions. In a traditional economy, most economic activity is based on habit and tradition, or custom.SOURCE: EC:007SOURCE: EC LAP 17—Economic Systems

20. BNet profit. Total expenses incurred in operating an advertising agency are subtracted from total revenue in order to calculate the amount of net profit. Income is another word for revenue which may come from sales, investments, or other sources.SOURCE: EC:010SOURCE: EC LAP 2—Risk Rewarded

21. CSurety bond. A surety bond is a guarantee that protects an advertising agency when another person or business fails to fulfill the terms of a contract between them. A guarantee assures the customer of the quality of the product and promises to refund the purchase price of faulty products. A warranty is a contractual agreement in which the seller promises to repair or replace faulty products. A fidelity bond protects an advertising agency from losses due to employee theft.SOURCE: EC:011SOURCE: EC LAP 3—Business Risk


22. DSpecialization. When labor is specialized, there are many advantages to the company and the employee. Among these advantages are simplified worker training, increased production rates, and increased employee interest. Job scope refers to the frequency that a job task is performed. Job depth refers to the amount of control a worker has over his/her job tasks. Mass production refers to the rapid production of a large quantity of goods and may not always be associated with the advantages that accompany job specialization.SOURCE: EC:014SOURCE: EC LAP 7—Specialization of Labor

23. CSympathetic. Sympathetic strikes are often carried out by another local union belonging to the same national union as the striking union. A jurisdictional strike arises from a conflict between two competing unions over which union should be permitted to do a particular kind of work. A wildcat strike occurs when members of a local union stop work without the consent of their national organization. Union strike activities are limited by union rules, but limited does not refer to a type of strike.SOURCE: EC:015SOURCE: EC LAP 5—Organized Labor

24. ANational debt. A current economic problem is the national debt, which is the total amount of money that the federal government has borrowed in order to finance deficit spending. One way to borrow money is to sell government notes and bonds that pay interest to investors. The national debt has been growing almost continuously since 1900 because the federal government continues to spend more than it takes in each year. To compensate for the shortfall, the government sells notes and bonds, which increases the national debt because this money must be repaid with interest. The federal budget is the amount of money the government expects to take in, as well as the amount it expects to spend in a year's time. A trade deficit is an unfavorable balance of trade in which a nation's imports are greater than its exports. Inflation rate is the percentage of increase in prices from one year to another.SOURCE: EC:038SOURCE: Gottheil, F. M. (2002). Principles of economics (3rd ed.) [pp. 731-732]. Mason, OH: South-

Western.

25. CMonitor the competition. Information about competitors' activities, such as new product development, is very important to a promotional business. This information is so important to some promotional businesses that they have a separate section of the marketing-information management system whose only responsibility is to monitor the competition. Promotional businesses also use the marketing-information management system to reduce business risk, improve stock control, and expand promotional activities. However, these functions are not the responsibility of a separate section but are part of the overall information management system.SOURCE: IM:001SOURCE: IM LAP 2—Marketing-Information Management

26. AInformal. Marketing research can be done informally or formally. When an advertising agency has an employee count cars in a parking lot, it is a form of informal research. Formal research would include not only counting the cars, but questioning consumers and analyzing their responses. Causal research is marketing research that focuses on cause and effect and tests "what if" theories. Internal research is research carried out within the business itself.SOURCE: IM:010SOURCE: IM LAP 5—Nature of Marketing Research


27. BArranged in various categories. An advantage of using a database to organize marketing data is that the information can be arranged in a variety of categories depending on how the business intends to use the data. Once the information has been placed in the database, it can be organized and reorganized. For example, the data might include customers' names, addresses, what they bought, where they bought it, and how much they spent. Depending on its needs, the business might arrange this information according to what their customers bought or how much they spent. At a later date, the promotional business might decide to arrange the same information according to where their customers bought the products. Promotional businesses usually do not share their marketing information with competitors or make this information available to all employees. Promotional businesses might transfer this information to compact disks, but that is not a main advantage of using a database.SOURCE: IM:063SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2002). Marketing essentials (3rd ed.)

[pp. 509-510]. Woodland Hills, CA: Glencoe/McGraw-Hill.

28. BTo analyze previous purchases. A database is a collection of facts and information arranged in a logical order so that it can be accessed and used when the promotional business needs it. Promotional businesses often store information in their databases about customers, such as their names, addresses, zip codes, and types of purchases. Promotional businesses can use this information to analyze previous purchases in order to determine the promotional business's most popular items and the items that sell well in specific areas. A promotional business might use this information to make changes in its goods and services on the basis of what customers have purchased. Promotional businesses do not use the information about customers that is stored in their databases to develop original software, calculate operating expenses, or prepare annual reports.SOURCE: IM:190SOURCE: Zikmund, W. G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 130-131]. Cincinnati: South-

Western College.

29. CIt allows you to summarize data and make comparisons across units. Descriptive statistics are summaries of data that make large amounts of information more manageable. Reaching conclusions involves making inferences rather than using descriptive statistics. Descriptive statistics can be described in numerical form. The use of descriptive statistics does not necessarily enable you to make charts easily.SOURCE: IM:191SOURCE: Trochim, W. M. K. (n.d.). Descriptive Statistics. Retrieved July 31, 2003,

fromhttp://trochim.human.cornell.edu/kb/statdesc.htm

30. BStrategies. Marketing strategies are game plans for getting the job done. Budgets and salespeople are factors in a strategy, and profit is a goal of most strategies.SOURCE: IM:194SOURCE: IM LAP 7—Pick the Mix

31. BMarket segmentation. Market segmentation divides a total market into smaller, more specific groups. This helps the business to use target marketing, the identification and selection of markets for a business or a product. Limited market appeal is used to describe markets for products that relatively few people buy and use. Advertising is any paid form of nonpersonal presentation of ideas, goods, or services.SOURCE: IM:196SOURCE: IM LAP 9—Have We Met?


32. BPsychographic. Psychographic information is information about consumers' lifestyles and personalities. Lifestyle is the way in which people lead their daily lives and is determined by their income, interests, and activities. Personality is an individual's qualities or traits and behavior. Promotional businesses obtain this type of information about consumers in order to segment them into target markets. For example, a business might target people who live in rural communities, have moderate incomes, attend high school sporting events, and are active in local politics. Sociological information is information about people's beliefs and values. This type of information, as well as confidential information, is difficult to obtain. Businesses hope to obtain realistic information, but this is not a category of information that businesses obtain to select a target market.SOURCE: IM:160SOURCE: Burrow, J. L. (2002). Marketing (p. 223). Mason, OH: South-Western.

33. AAccuracy of prediction. There are many factors for a media company to consider in choosing a method of preparing its sales forecasts. One of the main considerations is how accurate it will be. The method chosen must provide a sales forecast that is as accurate as possible in order for it to be of the most use to the business. Media companies do not consider quantity of copies or versatility of use when choosing sales forecast methods. They also do not market the data presented.SOURCE: IM:003SOURCE: IM LAP 3—Nature of Sales Forecasts

34. DWhat is the current rate of inflation? Inflation is a rapid rise in prices that may occur when productivity goes down and costs of labor go up. Inflation is an economic factor rather than a market factor. Increases or decreases in the population and changes in the makeup of the trading area are market factors that affect the sales forecast.SOURCE: IM:009SOURCE: IM LAP 4—Forecasting Sales

35. ALevel of profitability will remain the same. Costs are associated with carrying out a marketing plan; therefore, the graphic design company should identify the financial benefits and compare them to the costs involved. The financial benefits of implementing a marketing plan usually are increased sales and profits. However, if the costs are so great that the level of profitability will remain the same, the graphic design company might decide not to implement the marketing plan or to modify it extensively. The dollar value of product that customers buy and the current market share of competitors are not costs or financial benefits of implementing a marketing plan. The cost of implementing the marketing plan does not increase significantly if advertising rates go up slightly.SOURCE: IM:198SOURCE: Churchill, G. A., Jr., & Peter, J. P. (1998). Marketing: Creating value for customers (2nd ed.)

[pp. 98-100]. Boston: Irwin/McGraw-Hill.

36. ACurrent customers. Current customers are an excellent source of marketing information. You can gather information from current and former customers in surveys by mail, on the phone, in personal interviews, etc. Internet surveys are effective if they involve current customers. Employees may provide useful information, but the primary source is current customers. Accounting records are a type of secondary information.SOURCE: IM:199SOURCE: Meyer, E. C., & Allen, K. R. (2000). Entrepreneurship and small business management:

Teacher's manual (2nd ed.) [p. 171]. New York: Glencoe/McGraw-Hill.


37. DDevelops repeat customers. Repeat customers are those who request the advertising agency's services on a regular basis. In many cases, the reason they return is because they have had courteous service from the account representatives with whom they work. Quality service should be a part of good customer relations. Customers' objections are customers' reasons for not buying, and they cannot be prevented by providing good customer relations. Segmenting the market in order to target customers for the advertising agency's products is not part of customer relations.SOURCE: IS:005SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 11-13). Mason, OH: South-

Western.

38. AReach a compromise. Advertising agency employees who have different opinions often negotiate with each other in order to reach a compromise and solve the problem. Compromising involves each employee conceding a few issues in order to reach a mutual agreement. Compromise is often the result of successful negotiations because each employee obtains something and both sides meet partway. Advertising agency employees do not negotiate in order to avoid rejection or to make a statement. Negotiating often results in cooperation rather than creating opposition.SOURCE: IS:012SOURCE: Daggett, W. R., & Miles, J. E. (1998). The dynamics of work: Introduction to occupations

(2nd ed) [p. 249]. Cincinnati: South-Western Educational.

39. B"I'm sorry. Let's discuss what you want and then we can develop a couple of new options." To best service the client, you must determine his/her wants, needs, likes, and dislikes. Remember that in order to maintain client goodwill, it may sometimes be necessary to go back to the drawing board to give the client what s/he wants, and maybe provide a discount for services. Placing blame on others and not attempting to rectify the situation do not build goodwill with clients.SOURCE: IS:015SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 135-138). Mason, OH: South-

Western.

40. DContingency plan. A contingency plan is often known as "Plan B," or the backup in the event that the original plan will not work for some reason. Advertising agencies often develop contingency plans along with original project plans in order to be prepared for the unexpected. There's no way to know when a crisis will occur, and having a contingency plan often helps a business to be successful even under adverse conditions. Advertising agencies do not develop an escape mechanism, which is a way out of a situation. Suggestion programs are usually intended to encourage employees to share ideas. A modified schedule might be a part of a contingency plan.SOURCE: MN:153SOURCE: DuBrin, A. J. (2003). Essentials of management (6th ed.) [pp 116-117]. Mason, OH: South-

Western.


41. CDetermine the resources that are needed to complete the assignment. Staffing requirements are dictated by the size and scope of the project. The manager must consider the staff members' workload, time constraints, and the employees’ ability to do the necessary tasks. For example, a company may want an advertising agency to write only the copy for an in-house project. In this case, the manager needs a copywriter to develop the text. The manager does not need graphic artists to develop design elements, printing equipment or materials, or production equipment and staff for television commercials. When a manager delegates tasks that need to be completed for a job, the manager usually does not let the staff members decide what task they wish to complete; it is possible that the employee may choose a task that is not appropriate for her/his skill level. Members of one organization do not generally make decisions about another company's staffing preferences or leadership style. While motivational speeches may be appropriate in particular situations, it not always necessary to give one to enhance productivity.SOURCE: MN:174SOURCE: Gido, J., & Clements, J. P. (2003). Successful project management (2nd ed.) [pp. 305-306].

Mason, OH: South-Western.

42. CSeverance package. When media companies dismiss employees, they usually provide some type of severance package such as regular pay and benefits for a certain amount of time. Media companies should fully explain what the severance package includes, so employees will have a clear understanding. Some media companies provide additional support services in a severance package such as counseling and assistance with finding a new position. A layoff involves letting employees go for a short amount of time because of a shortage of work. These employees are not being terminated because they will be called back to work. Employees who are being dismissed are not retiring.SOURCE: MN:134SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [pp. 378-380]. Upper Saddle

River, NJ: Prentice Hall.

43. BTraining. Training is generally short term and narrowly focused. It enables employees to improve or to do their jobs. Behavior modeling is an instructional method in which trainees are given a specific model of behavior, told the consequences of failing to perform in that manner, provided opportunities to practice the behavior, and evaluated on using the behavior. Needs assessment is the process of identifying and prioritizing training and development needs. Implementation is the process of doing or taking action.SOURCE: MN:024SOURCE: MN LAP 50—Manager/Supervisor Training

44. BListening carefully to what the employee says. The initial step in identifying the actual problem underlying an employee's complaint is to listen carefully. The manager should also demonstrate a helpful, honest attitude and sincere desire to resolve the problem; repeat the complaint and write it down; give the employee a time frame for resolving the problem; and gather additional information. The other alternatives occur later in the complaint resolution process.SOURCE: MN:034SOURCE: MN LAP 45—Handling Employee Complaints

45. CDeveloping standards for judging work. Copywriting department supervisors need a set of standards by which they can evaluate employee job performance. These standards are used in the employee's performance appraisal as a yardstick to measure the employee's skills, work habits, and need for further training. Getting along well with others is a human relations skill. Determining who will do the work and when the work will be done is part of planning and organizing.SOURCE: MN:021SOURCE: Everard, K. E., & Burrow, J. L. (2001). Business principles and management (11th ed.)

[pp. 369, 673-674]. Cincinnati: South-Western.


46. AProduction. Variable expenses change in proportion to the number of items produced or sold. The more product that is produced, the more expenses there are for utilities and payroll. Therefore, variable costs increase as production increases. Competition is rivalry between two or more businesses to attract customer dollars. Automation is a production method in which machines do tasks automatically. Motivation is the process of getting employees to strive to achieve management's objectives because they want to achieve them.SOURCE: MN:081SOURCE: MN LAP 57—Operating Expenses

47. CPresent a favorable business image. The cleanliness and neatness of the advertising agency contributes to a favorable image. Keeping employees busy is not a valid reason to perform housekeeping functions. Insurance companies do not inspect businesses on a regular basis. Maintenance involves upkeep and repairs rather than housekeeping.SOURCE: MN:157SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging

management program: Year one (p. 216). Lansing, MI: Author.

48. BType of business. Different industries require different budgeting strategies. The larger the business, the more complicated is the budgeting process required. The sales budget predicts sales for a specific period. Capital outlay refers to the amount of cash needed at a particular time such as the opening of a new business. The fiscal year is the time period for which the budget is planned.SOURCE: MN:653SOURCE: Everard, K. E., & Burrow, J. L. (2001). Business principles and management (11th ed.)

[p. 392]. Cincinnati: South-Western.

49. CCost. By reducing the amount of money that it spends on items such as office supplies, an advertising agency saves money. This can be done by purchasing goods from vendors that charge less money for these items or by limiting the employees' usage of some items. Quality controls govern how well work is done. Quantity controls determine how much work is done. Time controls determine how long tasks should take to be performed.SOURCE: MN:059SOURCE: Everard, K. E., & Burrow, J. L. (2001). Business principles and management (11th ed.)

[pp. 367-368]. Cincinnati: South-Western.

50. DAccepting a promotion. Once individuals make decisions and select alternatives, they must act on them. By accepting a promotion, a person is acting on a decision. Just deciding what to do doesn't complete the decision-making process. It is necessary for an individual to carry out the decision. Identifying a problem and choosing an option are steps in the decision-making process that occur before action is taken. Evaluating an outcome occurs after the action is taken.SOURCE: PD:017SOURCE: PD LAP 10—Weigh Your Options

51. DAptitude test. An aptitude test measures what a person is capable of doing and what s/he might be capable of doing with additional training or education. Interest surveys measure interest in various occupations. Intelligence tests measure current knowledge. Personality tests measure personality traits.SOURCE: PD:023SOURCE: Bailey, L. J. (2003). Working: Career success for the 21st century (3rd ed.) [pp.174-175].



52. CEthical standards. Many professional organizations have developed ethical standards that their members are encouraged to follow. These standards are suggested rules that are intended to govern the behavior of businesses. For example, professional associations in the advertising industry set ethical standards for their members to follow. The publishing of ethical standards is a service to the industry because it helps businesses to understand their role and how to better serve both their clients and the public. Operating procedures, evaluation systems, and performance goals are developed by each business rather than by a professional organization. However, businesses often follow the professional organization's ethical standards when developing those procedures, systems, and goals.SOURCE: PD:059SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.)


53. BQuality. An advertising agency's clients often associate price with quality. For example, clients assume if the price of a product is high that the quality is high. Full-service international advertising agencies that provide upscale services and employ reputable creative talent charge high rates for their advertising and media services because clients expect to pay high prices for the quality of service and work that they expect to receive. If the full-service international advertising agency lowers its prices, clients might go to another agency because they assume that the agency is having problems or that the quality is below their standards. Clients of full-service international advertising agencies do not associate high prices with value or economy. Supply is the quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period.SOURCE: PI:001SOURCE: PI LAP 2—Pricing

54. DUnethical and illegal. Deceptive pricing practices such as bait-and-switch are designed to attract the price-conscious consumer. Not offering a reasonable amount of the advertised product is an example of a business taking unfair advantage of the customer's willingness to buy and violates the guidelines of the Federal Trade Commission. These tactics are illegal as well as unethical.SOURCE: PI:015SOURCE: Bearden, W. O., Ingram, T. N., & LaForge, R. W., (2001). Marketing: Principles and

perspectives (3rd ed.) [p. 287]. New York: Irwin/McGraw-Hill.

55. BComputer software. Various types of computer software programs enable promotional goods businesses to experiment with prices before deciding on the actual price to charge. A promotional goods business can plug in different prices for various items to find out what effect each price will have on the bottom line. Promotional goods businesses use computer software programs to determine which price will be the most profitable as well as the most appealing to customers before setting the price. Promotional goods businesses do not use digital imaging, point-of-sale systems, or optical scanning to experiment with different prices.SOURCE: PI:016SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2002). Marketing essentials (3rd ed.)

[pp. 163-164]. Woodland Hills, CA: Glencoe/McGraw-Hill.

56. AElastic demand. Elastic demand is a form of demand in which changes in price correspond to changes in demand. When customers can afford to spend money and buy products, promotional businesses often respond by increasing prices because there is a demand. However, if customers stop buying because their incomes decrease, promotional businesses usually respond by lowering prices. The goal of most promotional businesses is to keep their prices at a level that is compatible with demand. Market share is a promotional business's share of the total industry sales in a specific market. Product mix is the particular assortment of products that a promotional business offers in order to meet the needs of its market and its company goals. Economic growth refers to growth of the economy in general.SOURCE: PI:002SOURCE: PI LAP 3—Factors Affecting Selling Price


57. D175,000. To calculate the number of promotional signs that the Designer Signs Warehouse must sell to break even, first determine the variable-cost margin by subtracting the variable cost per unit from the selling price per unit ($65.00 - $58.00 = $7.00). Divide the total fixed costs by the variable-cost margin to obtain break-even ($1,225,000 ÷ $7.00 = 175,000).SOURCE: PI:006SOURCE: PI LAP 4—Calculating Break-Even

58. B$500. The formula for calculating price is Price = Cost ÷ (100% - Markup Percentage). In this case, the price is calculated as follows: $300 cost ÷ 100% - 40% = .60 = $500.SOURCE: PI:007SOURCE: Stull, W. A. (1999). Marketing and essential math skills: Teacher's edition (p. 105).

Cincinnati: South-Western Educational.

59. DTo 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:001SOURCE: PP LAP 5—Product/Service Planning

60. ATo get customers to buy the product. The introductory stage is the first stage of a product's life cycle. During this stage, the promotional business wants customers to find out about the product and to buy it. When the product enters the growth stage, the promotional business reevaluates its distribution. Competition is a primary goal in a product's maturity stage. Deciding whether to get rid of the product or to revitalize it is a factor in the decline stage.SOURCE: PM:024SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 557].

Woodland Hills, CA: Glencoe/McGraw-Hill.

61. BTypewriter. Computer word-processing programs and printers evolved from the original idea that resulted in the typewriter. Computer word-processing programs are highly efficient and have replaced the typewriter as the primary form for producing print items. Therefore, the computer has made the typewriter obsolete. Calendars, dictionaries, and fax machines are still widely used and are not considered obsolete.SOURCE: PM:127SOURCE: PM LAP 11—Unleash Your Oh! Zone

62. BQuality. Many media companies establish quality standards which indicate the degree of excellence to be expected from a good or service. In some cases, perfection may be the only acceptable standard for a media company's goods and services. For example, an invoice containing pricing errors cannot be sent to a client. Industry standards are standards that all businesses in a particular industry are expected to follow. Quantity standards specify the amount of work to be done. Activity is not a type of standard.SOURCE: PM:019SOURCE: PM LAP 8—Grades and Standards


63. DExpress and implied. An express warranty is a promise concerning the product expressed verbally or in a written statement. An implied warranty is an understanding that the product will perform as expected, even though no formal statement has been made to that effect. Limited and full refer to the extent of the warranty.SOURCE: PM:020SOURCE: PP LAP 4—Warranties and Guarantees

64. DLine. The products in a product line are somewhat like the members of a family in their relationship to each other. The products often resemble each other in some way. A full-service advertising agency might offer its clients related promotional services such as copywriting, graphic design, and web site development. Product width is a product mix dimension referring to the number of product lines carried by a company. Product depth refers to the number of products and the assortment of sizes, colors, and models offered in a product line.SOURCE: PM:003SOURCE: PP LAP 3—Product Mix

65. ALower than the combined price of the products sold separately. To promote the bundle and encourage customers to buy, businesses need to make the price of the bundle attractive to customers. Businesses usually do this by pricing the bundle lower than the combined price of the products sold separately. For example, four products sell separately for $12.99 each. A business bundles the four products and sells the total package for $44.95. The bundled price is lower, which usually increases sales. Segmented pricing involves adjusting prices based on the type of customers, such as adults or children. Prestige pricing involves setting a high price to reflect the quality and status of a product. The price of a product bundle is not necessarily intended to be the same as the prices set by competitors. In many cases, one business sets a lower price to be more competitive.SOURCE: PM:041SOURCE: Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 333-334]. Upper

Saddle River, NJ: Prentice Hall.

66. BIs a convenience to clients. Printing services are conveniences for clients because they do not need to work with additional vendors to complete a promotional project, such as a catalog. Clients who appreciate these types of services are more likely to become established, ongoing clients, which gives the advertising agency a competitive edge over other agencies. Advertising agencies do not always offer their clients discounts because they offer printing services. Advertising agencies that offer printing services do not necessarily reduce the number of dissatisfied clients, if other services (e.g., copywriting) do not meet the clients' expectations. Additional services do not necessarily increase the employees' productivity.SOURCE: PM:036SOURCE: Lovelock, C., & Wright, L. (1999). Principles of service marketing and management

(pp. 36, 208-209). Upper Saddle River, NJ: Prentice Hall.

67. DBrand. A brand is a name, term, symbol, or design (or combination of them) that identifies a product and distinguishes it from competitors' products. Some brand names are imaginative, but not all. One of the purposes of a good brand is to be competitive. Generic products have no brand names and are usually priced lower than brand-name products.SOURCE: PM:021SOURCE: PP LAP 6—It's a Brand, Brand, Brand World!


68. BConvenient meeting hours. Advertising agencies must be open and available when it is convenient for their clients to meet with them. If advertising agencies are not somewhat flexible with their hours, they run the risk of losing clients. Return polices and merchandise repair are services associated with goods rather than an advertising agency's services. Many people might consider offering free meals to a client an unethical action. SOURCE: PM:013SOURCE: Lewison, D. M. (1997). Retailing (6th ed.) [pp. 498-505]. Upper Saddle River, NJ: Prentice

Hall.

69. DAttributes. A product's attributes are its characteristics. Promotional businesses often develop strategies to position products based on the characteristics that are most important to customers. For example, one attribute might be low price while another attribute is outstanding performance. Once promotional businesses determine which attribute to focus on, they develop strategies to position the product accordingly. Customers have perceptions or images of a product's attributes. A promotional business does not focus on a product's evaluations or resources when developing strategies to position the product.SOURCE: PM:043SOURCE: Kotler, P., & Armstrong, G. (1997). Marketing: An introduction (4th ed.) [p. 226]. Upper

Saddle River, NJ: Prentice Hall.

70. DTrack sales of catalog products in relation to all products during a given time period. Some full-service advertising agencies offer services that help clients assess or track the success of a promotional activity, such as a direct mail campaign. For example, the client might be a retailer that is offering discounted prices on select inventory for a limited period of time. The advertising agency can often obtain and use the retailer's sales to track the effectiveness of a catalog. A discounted item that appears in the catalog and sells out in the time constraints stated in the catalog indicates that the response to the catalog is positive. Recognition tests determine the level of product or brand recognition by consumers and do not necessarily relate to the success of the catalog. Bonus earnings of catalog developers will not provide any useful information when evaluating the effectiveness of catalog advertising. Following the number of hits or visits to a company web site does not indicate the success of a direct-mail catalog that is sent by traditional postal services. Visits do not always translate into sales.SOURCE: PM:108SOURCE: Semenik, R. J. (2002). Promotion and integrated marketing communications (pp. 535-539).


71. DBusiness 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:126SOURCE: PM LAP 10—Building Your Business's Brand

72. AInform. Many companies use promotion to inform customers about their products or to show how their goods and services can be used. Promotion should never be used to deceive, delude, or lie to customers in any way. If the customer is intimidated or overwhelmed by promotion, s/he is not likely to buy the good or service.SOURCE: PR:001SOURCE: PR LAP 2—Promotion


73. BManipulate consumers. Some individuals and groups are critical of promotional practices because they think that promotions manipulate consumers. Critics feel that promotions persuade people to buy goods or services they do not want or need. Promotion does appear to have some influence on the purchase behavior of consumers. Critics of promotion also believe that promotions create and reinforce stereotypes and play upon people's fears. They also think that promotions are not infallible, but that the promotions often make false or exaggerated claims about a product and/or contain errors.SOURCE: PR:002SOURCE: PR LAP 4—Types of Promotion

74. CAdvertising. Sales promotion is promotional activities other than advertising, personal selling, and publicity that stimulate consumer purchases. Premiums, contests, and displays are all examples of sales promotion activities. The elements of the promotional mix include advertising, personal selling, publicity, and sales promotion.SOURCE: PR:003SOURCE: PR LAP 1—Promotional Mix

75. AReinforces stereotypes. A stereotype is a set image about a person or thing. Sometimes, these images can create ongoing, negative images of cultures or groups of people. Many people associate lawn care with the male gender. As gender roles and societal views continue to change, more women are participating in yard-work activities. Although poor taste is subjective, it is generally considered anything that portrays rude or crude images or behavior. Although some ads induce fear as a means to get people to buy products, this example does not indicate that fear is a factor. Subliminal communication refers to messages that are incorporated into the primary message that fall below a person's level of consciousness.SOURCE: PR:099SOURCE: Semenik, R. J. (2002). Promotion and integrated marketing communications (pp. 216-217).


76. DTestimonial. A testimonial is a statement by an identified user of a product proclaiming the benefits received from the use of the product. An endorsement is approval by a reputable outside source such as a testing laboratory. A feature is a specific detail of a product. A personal ad is a type of classified advertisement paid for by an individual.SOURCE: PR:014SOURCE: PR LAP 7—Parts of Print Ads

77. CEntice the reader to read the ad. The most important job of the headline is to get the reader to notice the ad and to develop enough interest to cause him/her to read the ad. Making the ad look professional is not a primary reason for an appealing headline. Prospective buyers cannot be identified in this way. The major portion of the ad's selling function is carried out by the illustration and/or the copy.SOURCE: PR:124SOURCE: Lane, W. R., King, K. W., & Russell, J. T. (2005). Kleppner's advertising procedure (16th ed.)

[pp. 485, 518]. Upper Saddle River, NJ: Pearson/Prentice Hall.

78. AClip art. A variety of ready-made illustrations, or clip art, can be obtained from computer software programs. The appropriate clip art can be downloaded from a computer and placed in the ad. Logotypes identify the advertiser by using the business's name or trademark. Halftones are illustrations made from an image photographed through a screen. Original art is any illustration drawn by an artist for the business to use.SOURCE: PR:125SOURCE: About.com. (n.d.). Desktop publishing: Clip art. Retrieved November 10, 2005, from

http://desktoppub.about.com/library/glossary/bldef-clipart.htm


79. BEmotional. The emotional approach to creating ad copy uses strong language to reach the audience. The words selected are intended to reach the audience on a psychological, or emotional, level; the words are used to create a certain feeling. For example, a card company that advertises its line of Mother's Day cards may use language that reminds us how wonderful mothers are. Words such as love, devotion, guidance, great, or best might be used to reach the audience and entice people to buy a card, which reflects the sentiment expressed in the advertisement. Comparative copy is used when the advertiser makes a direct comparison of a good or service with a competitor. Usually, the advertiser emphasizes its strengths and the competitor's weaknesses. The factual approach to advertising copy uses language that describes the good or service. It may explain how the product works, what it is made of, and why the audience needs it. A testimonial is a statement by an identified user of a product proclaiming the benefits received from the use of the product.SOURCE: PR:126SOURCE: Lane, W. R., King, K. W., & Russell, J. T. (2005). Kleppner's advertising procedure (16th ed.)

[pp. 493-496]. Upper Saddle River, NJ: Pearson/Prentice Hall.

80. BBuild desire for the product. The overall objectives of print advertising copy are to sustain interest created by the headline and illustration, to build desire for the product, and to invite action on the part of the reader. The product's features may be included, but the emphasis should be on the product's benefits to the customer. Businesses seldom explain the cost of producing a product in their ads or try to give a complete description of a product in an ad.SOURCE: PR:016SOURCE: PR LAP 9—Preparing Print Ad Copy

81. DHow to arrange the sequence of the elements. Some elements of an advertisement include the copy, headline, illustrations, and sometimes a corporate logo. The advertising designer must decide how the elements should be placed on the page so the ad is visually appealing and best conveys the intended message. In most cases, the headline is a very important part of the ad. The purpose of the headline is to catch the reader's attention and entice the reader to learn more about the product by reading the copy. All ads should have a focal point. The focal point is the element that the reader first sees or the one that stands out. The focal point can be one or more of the ad's elements (e.g., headlines or illustrations). An ad should always be visually appealing to the audience; if it is not, the message will be overlooked and lost.SOURCE: PR:128SOURCE: Lane, W. R., King, K. W., & Russell, J. T. (2005). Kleppner's advertising procedure (16th ed.)

[p. 516]. Upper Saddle River, NJ: Pearson/Prentice Hall.

82. ASpelling. There are several misprints or spelling errors in the ad's copy. These include the words puppies, nutritional, and growing. The correct spelling of these words should be written on the proof. The grammar and punctuation are correct, and no text seems to be missing since the sentences are complete.SOURCE: PR:130SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 122-123].

Boston: Irwin/McGraw-Hill.


83. CInternet. The evolution of the Internet has provided many opportunities for the use of databases in relation to advertising efforts. The use of databases helps marketers to direct promotional efforts to specific target markets. Companies can build web sites to develop customer databases. Businesses can also hire web-based firms to research various databases and locate appropriate sites for banner advertisements. Data (e.g., mailing lists) can also be purchased by businesses through web sites. Radio, television, and outdoor are advertising venues for mass distribution. Because it is difficult to target marketing efforts via mass media, specific customer databases are not necessarily used to create product advertising for radio, television, and outdoor venues.SOURCE: PR:091SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 362-363).


84. DPersonalized. Creative boutiques might write direct-mail letters to customers to promote the availability of new services. One advantage of writing direct-mail letters is that the creative boutique can personalize the letter and include the customer's name. The advantage of personalizing direct-mail letters is that customers are more likely to open and read letters that are addressed to them personally. Creative boutiques can further personalize direct-mail letters by altering the message for certain segments within a mailing list. Direct-mail letters are unsolicited which means that people do not request the information. As a result, many people throw direct-mail letters away without reading them. The information in a direct-mail letter should be simple enough for customers to understand because technical information might confuse the customer. Direct-mail letters are not interactive.SOURCE: PR:122SOURCE: Russell, J. T., & Lane, W. R. (1999). Kleppner's advertising procedure (14th ed.)


85. DOne or two typefaces and eye-catching graphics. Photographs, illustrations, logos, or cartoons are graphic elements that should capture users' attention and encourage them to explore the web site in further detail. Regardless of the quantity of graphics, they should not require a lot of download time. Designers should limit the quantity of fonts to one or two. Too many fonts on one page are busy and can be distracting to the user's eye. White space is the area of the page that does not contain text or graphics. White space as a design element can enhance the web page's appearance. The amount of white space is subjective and dependent upon the other design elements. For example, if it is necessary to place a lot of text on the page, the designer has less white space with which to work. Web-page elements should be attractive and balanced, regardless of font size, quantity of graphics, and white space.SOURCE: PR:102SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.)


86. CIncrease sales by 10% next year. The objectives are the goals that a promotional goods business wants to accomplish through advertising. A promotional goods business needs to develop specific objectives, such as to increase sales by 10% next year, before selecting the appropriate media to use in order to attain those goals. After developing objectives, promotional goods businesses often research the demographics of the market and analyze activities of competitors in order to select advertising media. Many promotional goods businesses are not able to increase their advertising budgets.SOURCE: PR:010SOURCE: PR LAP 5—Selecting Advertising Media


87. BPackage. Radio stations offer reduced rates to advertisers who agree to purchase a series of commercials over a certain period of time. The package rates cost less than single commercials and provide considerable savings to advertisers. The stations also benefit because they have sold a block of time. Display is a kind of newspaper and magazine advertising which includes several elements such as illustrations, headlines, white space, and type. Transit is a form of out-of-home media found in various modes and locations of mass transportation. Contingent is not a term that is widely used to describe a type of promotion.SOURCE: PR:104SOURCE: Lane, W. R., King, K. W., & Russell, J. T. (2005). Kleppner's advertising procedure (16th ed.)


88. DTo increase goodwill towards the company. Goodwill, rapport between a media company and the public, is developed through community relations activities. Supporting a local charity would create favorable public attitudes toward the media company and may lead to increased sales. This may increase the media company's profits, but should not have a direct effect on prices. Supporting a local charity would not reduce operating expenses, which are the costs of running the media company.SOURCE: PR:056SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (1997). Marketing essentials (2nd ed.)

[pp. 245-247]. New York: Glencoe/McGraw-Hill.

89. DTo maintain goodwill. The main goal of a creative boutique's public-relations plan often is to develop and maintain goodwill with its customers and with the public in general. Creative boutiques are concerned with developing a favorable image and with keeping that image. They want their customers, employees, and other groups in the community to have a positive opinion of them. Creative boutiques know that if public opinion turns against them, they may lose customers and sales. Public-relations activities that help creative boutiques maintain goodwill may include developing advertising, sponsoring events, and producing brochures.SOURCE: PR:088SOURCE: Arens, W. F. (1999). Contemporary advertising (7th ed.) [pp. 310-311]. Boston:

Irwin/McGraw-Hill.

90. DTo introduce new products. On behalf of a client, an advertising agency might be charged with creating a variety of promotional signs. The signs might be used by the client to introduce new products and services for the clients' customers. Some promotional signs are designed to be placed in windows to attract the attention of customers as they walk by the store. Many of these promotional signs are two-sided and can be seen and read by customers both inside and outside the facility. Departmental signs identify areas within the store, such as meat department or produce department. Signs placed in windows are designed to promote certain products or specials rather than the store itself. Directional signs direct customers to specific locations within the store.SOURCE: PR:109SOURCE: Colborne, R. (1996). Visual merchandising: The business of merchandise presentation

(pp. 234-235). Albany, NY: Delmar.


91. CHigh-quality photography. The purpose of catalogs is to sell products. To accomplish this, graphic designers often try to make the catalogs as attractive and appealing to customers as possible. One way to do this is to use high-quality photography that realistically depicts products. When designers use high-quality photography in catalogs, they often specify the use of high-quality paper that makes the photographs appear more vibrant and beautiful. Offset lithography is a popular way of printing high-quality catalogs. Color separation is the process involved in preparing photography for printing. Effective catalogs usually contain more photographs and illustrations than copy, because a lot of copy is not appealing to customers.SOURCE: PR:146SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.)


92. DCompetition. Copywriting businesses take into consideration their competitors and the types of promotions they are using when the copywriting businesses develop their own promotional plans. Copywriting businesses look at competitors' market share and the kinds of promotions their competitors use in order to create the best plan for competing against them. Business image, available budget, and sales objectives are internal factors that affect a copywriting business's promotional plan.SOURCE: PR:073SOURCE: Solomon, M. R., & Stuart, E. W. (2000). Marketing: Real people, real choices (2nd ed.)


93. CThemes. A theme is a specific characteristic or quality that is used repeatedly throughout an advertising campaign. One of the purposes of the theme is to make the advertising campaign memorable or unique. The theme helps to remind customers of the ad and the products it is promoting. An example of a theme is the "Don't leave home without it" phrase used by American Express. Customers identify that theme with American Express and recognize the company instantly when they hear or see it. Goals are objectives to achieve. Standards are used as the basis for comparing or judging goods or services. Targets are likely prospects.SOURCE: PR:079SOURCE: Zikmund, W.G., & d'Amico, M. (1999). Marketing (6th ed.) [pp. 504-505]. Cincinnati: South-

Western College.

94. AImage. Image is the way the advertising agency is viewed by others, such as its clients. When developing a promotional plan, an advertising agency considers its image and designs a plan that supports that image. For example, an advertising agency that has an image of selling exclusive services at high prices would not develop a promotional plan that focuses on discounts. An effective promotional plan that supports the advertising agency's image helps to increase income which means more profit for the advertising agency. The promotional plan is intended to reach a specific market rather than support a market.SOURCE: PR:097SOURCE: Government of Alberta. (1999, March 1). Agriculture business strategies: Developing a

promotional plan. Retrieved November 11, 2005, from http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/agdex3443?opendocument


95. APiecework coordination. Some small businesses that specialize in specific areas of advertising (e.g., graphic design) offer additional services that are of benefit to clients and can increase sales. For example, a graphic artist might help a client find a copywriter or printer for a large project that the client needs to have for his/her business. The graphic artist may coordinate the needs for the client by acting as a liaison between the client and the copywriter or printer. When the job is complete, the graphic designer charges the client a fee for coordinating the copywriting or printing activities. Graphic design firms usually do not offer product sampling, travel arrangements, or inventory services. SOURCE: SE:076SOURCE: Lane, W. R., King, K. W., & Russell, J. T. (2005). Kleppner's advertising procedure (16th ed.)


96. CProvide friendly, courteous service. An advertising agency's account representatives must have the appropriate personality characteristics and attitudes in order to foster client goodwill and build a positive, ongoing relationship with clients. These characteristics include being patient, courteous, friendly, sincere, and trustworthy. Advertising agencies don't usually make frequent changes to service levels. Not all advertising agencies have extensive media production services and not all clients need these services. It is not always possible to know your clients' customers personally.SOURCE: SE:828SOURCE: SE LAP 115—Building Clientele

97. BMultimedia disks. The disks can be inserted in a computer so the customer can view product information such as catalogs, diagrams, specifications, and testimonials. Audio disks are not visual in nature. Transparencies are generally viewed with overhead projectors. Micro bite is not a legitimate term to describe a tool to view information on a personal computer.SOURCE: SE:107SOURCE: Hite, R., & Johnston, W. (1998). Managing salespeople: A relationship approach

(p. 102-103). Mason, OH: South-Western.

98. CBenefits. Clients do not buy features; they buy benefits. In order to persuade clients to use an advertising agency's services, account representatives need to be able to communicate the advertising agency's product benefits to the individual client. By explaining client benefits, account representatives will enable clients to understand the differences between their products and those of their competitors. A feature is a fact or characteristic of the product. Warranties and uses are product features.SOURCE: SE:109SOURCE: SE LAP 113—Feature-Benefit Selling

99. ATangible. Tangible products are those items capable of being touched, smelled, tasted, seen, or heard. Salespeople usually exert less effort in selling tangible products because customers can see and touch them. Also, it is easier for salespeople to demonstrate the features of tangible products and explain their benefits to customers. Customers may raise more objections when buying expensive products and require additional follow-up time from the salesperson. Salespeople selling intangible products often spend more time establishing relationships with customers. Optional products require more selling effort on the part of salespeople because the items usually are nonessential or luxury goods.SOURCE: SE:048SOURCE: SE LAP 126—The Selling Process


100. AInvolving the customer in the sales presentation. Involving customers in the sales presentation can help to increase their interest in buying a product. Customer involvement also helps to identify other needs and wants, which may lead to additional sales. Salespeople should not ask customers what they can afford to spend or tell them what they should buy. The customer knows his/her needs, and the salesperson should try to learn what they are.SOURCE: SE:046SOURCE: Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., & Williams, M. R. (2004).

Professional selling: A trust-based approach (2nd ed.) [pp. 186-189]. Mason, OH: South-Western.

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