Competency-Based

Competitive Events
*Written Exam*

Test Number 892

Booklet Number _____

Advertising Campaign

INSTRUCTIONS: This is a timed, comprehensive exam for the occupational area

identified above. Do not open this booklet until instructed to do so by the
testing monitor. You will have _____ minutes to complete all questions.

This comprehensive exam was developed by the MarkED Resource Center. Items have been randomly selected from the MarkED
Resource Center's Test-Item Bank and represent a variety of instructional areas. Competencies for this exam are at the prerequisite,
career-sustaining, marketing specialist, marketing supervisor, and manager levels. A descriptive test key, including question sources and
answer rationale, has been provided the state DECA advisor.
All test items are copyrighted and are the exclusive property of the MarkED Resource Center. No item may be reproduced in any
manner, with the following exception: State DECA advisors or their designees are authorized to duplicate tests, as needed, for one-time
use in state-sponsored competitive events prior to May 1, 2007. Duplication after this date or for other purposes is expressly prohibited.

Copyright © 2007 by Marketing Education Resource Center®, Columbus, Ohio

Test 892 ADVERTISING CAMPAIGN 1

1. Which of the following is a type of service offered by many advertising agencies:

A. Visual merchandising C. Inventory control
B. Credit processing D. Traffic management

2. A business that wants to develop advertising for the Internet might use __________ software.
A. Adobe Acrobat C. web authoring
B. presentation D. media planning

3. Which of the following situations is an example of a business that might receive a government fine for
unsafe working conditions:
A. The Tanner Public Relations Agency provides access to portable fire extinguishers throughout its
facility.
B. The HIJ Media Production Company has frayed electrical wires hanging on hooks and nails in its
studio.
C. The Betler Printing Company inspects and maintains its machinery and equipment on a regular
basis.
D. The WICD Advertising Agency has unobstructed exits on all of the floors of its main office
building.

4. When delivering an oral presentation, the speaker should

A. time the presentation so it is not too long. C. monitor her/his own nonverbal language.
B. use props to support the message. D. outline the presentation notes on index cards.

5. When reviewing a business letter that a coworker has written to one of the advertising agency's clients,
which of the following elements should you look for:
A. Return envelope and postage C. Brief summary and outline
B. Inside address and signature D. Company logo and letterhead

6. Why do public relations agencies often ask employees to write proposals?

A. To share information with coworkers C. To provide an answer to a problem
B. To report on the progress of a project D. To explain the discovery of a new technique

7. All the activities involved in moving, storing, locating, and/or transferring the ownership of goods or
services is called
A. processing. C. distribution.
B. marketing. D. merchandising.

8. Quality Art Distributors buys graphic design materials and supplies from ABC Art and sells them to local
graphic design studios. Quality Art Distributors is an example of a(n)
A. intermediary. C. agent.
B. retailer. D. producer.

9. A channel member that knowingly markets a defective specialty advertising product that is determined to
be harmful to the environment and then denies responsibility for its actions is taking a(n) _________
approach to social and ethical responsibility.
A. proactive C. obstructive
B. accommodating D. defensive

10. Which of the following is a producer-related factor that affects the choice of distribution channels:
A. Location of market C. Size of good
B. Perishability of good D. Available funds

11. When developing a print advertisement for a magazine, it is important for an advertising agency to know
the publication's advertisement size specifications and its
A. closing date. C. volume number.
B. effectiveness. D. GRP rating.

Copyright © 2007 by Marketing Education Resource Center®, Columbus, Ohio

Test 892 ADVERTISING CAMPAIGN 2

12. An economic good or service that is scarce is one that is

A. readily available. C. in limited supply.
B. not made in America. D. not test-marketed.

13. A specialty advertising business sells T-shirts for $10. Which of the following would be the most likely to
occur if all other factors remain the same, and there is a demand for the T-shirts at $10:
A. If the price is raised, business profits will go up.
B. If the price is lowered, business profits will go down.
C. If the price is raised, the volume of sales will go up.
D. If the price is lowered, the volume of sales will go up.

14. Which of the following is not a tool the U.S. Federal Reserve can use to formulate monetary policy:
A. Open market operations C. Discount rate
B. Liquidity D. Reserve requirements

15. What motivates promotional businesses to produce efficiently and sell effectively?
A. The need for recognition C. The hope of making a profit
B. The desire to spend money D. The chance to start a trend

16. An employee who is free to plan and to create the company's advertisements, displays, and other types
of promotions has __________ in the job.
A. high depth and high scope C. low depth and high scope
B. high depth and low scope D. low depth and low scope

17. When a nation's unemployment rates are low, consumer spending tends to
A. halt. C. resume.
B. decrease. D. increase.

18. An advertising account representative from a foreign country wearing an amulet to ward off evil is an
example of
A. a class system. C. a cultural belief.
B. cultural baggage. D. ignorance.

19. Many public relations agencies try to foster positive customer/client relations by encouraging employees
to be
A. friendly. C. reserved.
B. talkative. D. authoritative.

20. A specialty advertising business manager can take steps to improve customers' perception of the
business by reviewing the data s/he receives from
A. customer follow-up calls. C. employees and vendors.
B. external secondary research. D. government satisfaction indexes.

21. To handle customer inquiries about specific products in a large specialty advertising business, the sales
staff should
A. be informed about all products in stock.
B. know the location of products within the business.
C. know why products are not carried by the business.
D. be able to solve customers' problems.

22. What kind of customer would ask "If I buy this copier for my advertising agency, how can I be sure it will
do what you say it will"?
A. Disagreeable C. Slow/Methodical
B. Suspicious D. Domineering/Superior
Test 892 ADVERTISING CAMPAIGN 3

23. A business is sending its credit customers an advance advertisement about its quarterly sale. Credit
customers can take advantage of the sale prices the day before the general public. The most likely
reason for the business to offer this promotion is to
A. gain new customers. C. foster customer loyalty.
B. be competitive. D. encourage customers to spend cash now.

24. To make sure he develops a realistic personal budget, Marcel should always
A. verify his past credit rating. C. track and record his expenses.
B. use a debit card to pay his bills. D. consult with a bookkeeper.

25. A graphic design studio can determine its net income by subtracting total
A. expenses from gross margin. C. sales revenue from trade credit.
B. liabilities from assets. D. operating expenses from net worth.

26. A quick-print business expects monthly cash sales to be $5,300 and receivables to be $1,200. Total cost
of goods sold will be $1,750, fixed expenses will be $2,150, and variable expenses will be $1,975.
Calculate the cash flow.
A. $675 C. $650
B. $600 D. $625

27. Calculate a photography studio's total assets if its balance sheet lists $8,500 worth of inventory, $2,300
cash on hand, $15,950 worth of equipment, and $5,725 in short-term notes.
A. $32,475 C. $21,025
B. $23,970 D. $26,750

28. Calculate the total amount of cash outflow if a printing company purchases $68,750 worth of equipment
and negotiates with the vendor to pay 85% of that amount in 45 days.
A. $9,625.00 C. $10,312.50
B. $8,937.50 D. $7,683.00

29. An advertising agency's profit-and-loss statement summarizes the agency's __________ for a specific
period of time.
A. promotional plan C. financial condition
B. operating schedule D. marketing strategy

30. During an interview, which of the following questioning techniques is best for the owner of a creative
boutique to use when s/he wants to obtain in-depth and informative answers from the job applicant:
A. Yes/No C. Leading
B. Open-ended D. Assumptive

31. The main purpose of an exit interview is to

A. convince the employee not to leave.
B. determine the employee's attitudes and feelings about the company.
C. determine the employee's wage at the time of termination.
D. prevent legal action.

32. Rob has been designated to succeed his supervisor, whose duties are somewhat complex. Which of the
following training and development methods would be most effective in preparing Rob for his new
position:
A. Understudy C. Conference
B. Learner-controlled instruction D. Job rotation

33. Why is it important for a promotional business to establish a research theory when assessing marketing-
information needs to solve a problem?
A. To test a procedure C. To review the data
B. To predict an outcome D. To guide the research
Test 892 ADVERTISING CAMPAIGN 4

34. A large public relations agency with locations in many cities probably would develop a marketing-
information management system that had extensive __________ capabilities.
A. product development C. opinion sampling
B. data-processing D. cultural analysis

35. What do specialty advertising businesses need to do to behave ethically when collecting marketing
information from customers?
A. Avoid telling customers who is sponsoring the research project
B. Gather data from only a few customers in one area
C. Make sure customers know how the information will be used
D. Sell customer information only to reliable organizations

36. How can marketing research help a business to evaluate its promotional efforts?
A. By identifying the forms of promotion available to the business
B. By comparing the results of different forms of promotion used by the business
C. By identifying the forms of promotion used by competitors
D. By comparing the business's promotional budget with the budgets of competitors

37. To interpret advertising questionnaire responses accurately, market researchers must identify codes that
relate to
A. standard data quotas. C. all possible responses.
B. the standard deviation. D. every causal objective.

38. Which of the following is a question that a business must answer when designing a database for the
retrieval of promotional information:
A. Who will have access to the data? C. How will the data be accessed?
B. Why is the data important? D. When will the data be available?

39. What is the mode in the following statistical table:

Numeric Value of Response Number of Responses

6 8
5 12
4 16
3 14
2 9
1 6

A. 2 C. 4
B. 3 D. 5

40. The manager of a specialty advertising business explained to customers that the company imported
goods from a broker and sold them to customers at a higher price in order to make a profit. What was the
manager explaining?
A. Distribution system C. Channel of distribution
B. Distribution process D. Distributor

41. Which of the following is a demographic characteristic that a business's advertising department might use
to identify market segments:
A. Style of living C. Location of population
B. Type of household D. Level of personality

42. One of the first steps in the marketing planning process involves developing the __________ of the
quick-print business.
A. basic objectives C. promotional methods
B. pricing strategy D. distribution systems
Test 892 ADVERTISING CAMPAIGN 5

43. Why do advertising agencies develop marketing plans?

A. To attract the target customer C. To provide quality service
B. To expand the distribution system D. To prepare a revenue statement

44. A specialty advertising business reviewing the prices that other businesses are charging for similar
products, and the types of services they are offering to customers is an example of a business
conducting a(n) __________ analysis.
A. industry C. competitive
B. technological D. relationship

45. A SWOT analysis indicates that customers' buying preferences are changing, but the specialty
advertising business has a very limited product line. This is an example of an
A. external threat attacking an internal weakness.
B. internal strength responding to an external threat.
C. internal weakness compensating for an external threat.
D. external opportunity coinciding with an internal strength.

46. To succeed in business, managers of media production companies must base their decisions on the
A. projected sales. C. goals of the company.
B. needs and desires of consumers. D. services offered by competitors.

47. Which marketing function helps creative boutiques answer the question, "What are we going to produce
or sell"?
A. Marketing-information management C. Selling
B. Product/Service management D. Promotion

48. Which of the following is a true statement about the benefit of having a safe workplace:
A. Insurance claims are increased. C. Bodily injuries are decreased.
B. Financial expense is increased. D. Productivity is decreased.

49. When should an individual consider administering first aid to the victim in an accident situation?
A. When the state has a Good Samaritan Law C. When the law requires it
B. When company policy requires it D. When immediate treatment is essential

50. What industrial purchasing structure exists when purchasing policies, procedures, and the buying of
materials common to many commercial printing plants are controlled by a central purchasing department,
while routine operations and purchases are handled locally?
A. Warehouse-and-requisition plan C. Centralized
B. Decentralized D. Departmentalized

51. An intermittent production process is a method of production in which

A. production equipment is controlled by computers.
B. robots carry out the repetitive tasks.
C. the process turns out products without stopping.
D. the process stops and then restarts.

52. What project-planning tool helps public relations agencies to effectively plan and use time?
A. Guidelines C. Policies
B. Objectives D. Schedules

53. A graphic design business receives an invoice for $8,250 worth of supplies with terms of 3/10, n/30. What
amount will an employee save for the business by paying the invoice within 10 days?
A. $825.00 C. $412.50
B. $165.00 D. $247.50
Test 892 ADVERTISING CAMPAIGN 6

54. Calculate the amount an advertising agency's monthly income increased or decreased from the amount
budgeted based on the following information: budgeted $375,000 in sales with 65% of that amount for
expenses compared to actual sales of $420,570 with 70% of that amount spent on expenses.
A. $5,079 decrease C. $3,899 increase
B. $4,557 increase D. $6,375 decrease

55. Why should maintenance schedules for company equipment be established and followed?
A. To control the quality of products C. To minimize equipment failure
B. To make maintenance a daily chore D. To increase equipment deterioration

56. An applicant for an entry-level position with a photography studio known for its casual environment
should not wear__________ to the interview.
A. a coat C. jewelry
B. jeans D. dress shoes

57. An exhibit that charges an admission fee and features vacation destinations and promotes recreational
products is an example of a __________ trade show.
A. public C. limited
B. private D. closed

58. What is the best way to approach getting your first job in the advertising industry?
A. Start as a junior account executive. C. Do an internship, or a work-study program.
B. Insist on having only the job you really want. D. Work in a major advertising agency.

59. A high promotional budget increases the price of a good because a business includes that amount of
money in the
A. cost of the product. C. investment of capital.
B. expense of operating. D. salaries of management.

60. Which of the following is an example of an ethical issue as it relates to predatory pricing:
A. A salesperson encourages a customer to purchase an extended vehicle warranty for a new car.
B. A tire producer introduces a new item to its product line and sets the initial price very low.
C. A local ice-cream shop prices menu items below cost in an effort to eliminate its competition.
D. An international advertising specialty business sells similar products to similar customers at
different prices.

61. Which of the following technologies allows specialty advertising businesses to quickly determine the
effect that different prices will have on the bottom line before setting the prices of various items:
A. Computer software C. Optical scanning
B. Point-of-sale system D. Digital imaging

62. Advertising specialty businesses can increase their income from sales by
A. increasing their selling prices. C. paying smaller dividends.
B. controlling their costs. D. reducing the number of sales.

63. A freelance graphic artist who contracts to do piecework for advertising agencies would most likely use
which of the following pricing methods for his/her services:
A. Commission C. Project fee
B. Fixed salary D. Incentive

64. Which of the following is an example of deceptive and unethical product labeling:
A. Including the manufacturer's name and address
B. Listing ingredients in the order of most to least
C. Advertising "100% juice" and emphasizing a picture of a fruit other than the one that is the main
ingredient
D. Including in the list of nutritional information the names of vitamins contained in the product and
their percentages
Test 892 ADVERTISING CAMPAIGN 7

65. A primary characteristic of people who can recognize market opportunity is that they are
A. educated. C. trustworthy.
B. observant. D. detail-oriented.

66. Which of the following is a process that promotional businesses often establish in order to recognize new
opportunities:
A. Hiring market researchers C. Reading government documents
B. Accessing local libraries D. Searching web sites

67. Two classifications of warranties based on the extent of the promises they make are __________
warranties.
A. full and implied C. full and limited
B. express and implied D. express and limited

68. What is a major goal of the Federal Trade Commission?

A. To improve product quality C. To protect consumers
B. To lower prices D. To monitor product safety

69. What product-mix strategy is being used when a specialty advertising company adds a new product to its
product mix?
A. Positioning C. Contraction
B. Trading-up D. Expansion

70. One reason it is important for businesses to regularly review promotional products to make sure they fill
customer needs is because the __________ changes.
A. operating method C. promotional technique
B. social environment D. distribution system

71. When positioning a promotional product, what is most important for a business to convey to the target
market?
A. Construction C. Components
B. Benefits D. Materials

72. One reason that a brand name should be adaptable is so that the business can
A. change the brand name as often as necessary.
B. use the brand name in multinational marketing.
C. use the brand name in packaging and advertising.
D. make its products look like other similar products.

73. In order for a company to protect its trademark by registering it with the U.S. government, the company
must have
A. used the trademark in commerce. C. used the ® symbol on the label.
B. included the trademark in a slogan. D. purchased the trademark rights.

74. Coca-Cola's "Always the real thing" campaign is an example of what type of promotion?
A. Taste C. Product
B. Company D. Service

75. The way in which a business combines the different forms of marketing communication channels is called
A. visual merchandising. C. public relations.
B. the marketing process. D. the promotional mix.
Test 892 ADVERTISING CAMPAIGN 8

76. Which of the following situations most accurately depicts a promotional ethical issue in relation to
children:
A. A newscast teaser televises graphic film clips of a war zone during prime-time viewing.
B. A print ad in a national teen magazine shows a girl modeling fashionable outerwear.
C. A radio spot announces an upcoming concert for preteens during the morning time slot.
D. A television commercial portrays preschool-age children eating breakfast.

77. Advertising media are channels of

A. production. C. communication.
B. distribution. D. marketing.

78. Why would a headline writer decide to use a kicker?

A. To describe symbols C. To occupy space
B. To explain captions D. To attract attention

79. Which of the following is an example of a successful direct-response advertisement:

A. A person orders an exercise machine by telephone after viewing an infomercial.
B. A movie theater shows several previews of new films and video releases.
C. A popular tourist attraction places a billboard in a remote location.
D. A local grocer distributes discount coupons to local businesses.

80. What is a guideline for businesses to follow when creating mailing lists?
A. Choose individuals who want the e-mail C. Obtain names from local competitors
B. Identify all people in a certain area D. Ask employees for names of relatives

81. One of the advantages of direct-mail advertising is that the advertiser can
A. compete with other advertisers. C. focus on mass marketing techniques.
B. avoid complying with postal regulations. D. aim the message to specific customers.

82. What usually determines the price of television advertising time once the season is under way?
A. Supply and demand C. Audience size
B. Quality and popularity D. Production costs

83. An advertisement that runs fairly steadily throughout the year with periodic bursts related to special sales
or events is an example of which of the following media scheduling techniques:
A. Continuous C. Pulsing
B. Alternative D. Secondary

84. Muhammed's Alley is planning to continue its new television commercial because it has had a sales
increase of over 30% since the ads began. The impression of this advertisement on potential customers
is known as
A. frequency. C. reach.
B. impact. D. scope.

85. The form that advertisers submit to newspapers when they are purchasing ad space is a(n)
A. insertion order. C. tag line.
B. proof copy. D. business identification.

86. Superior Widgets sent out a news release about the promotion of Susie Smith to a managerial position.
The major purpose of this use of a news release is to
A. keep the business in the public eye. C. support the business's image.
B. support good employee relations. D. keep in touch with the media.

87. Which of the following is a guideline for using promotion effectively:

A. Avoid the use of promotional themes. C. Rely on publicity.
B. Have different promotional goals for each. D. Coordinate advertising and display efforts.
Test 892 ADVERTISING CAMPAIGN 9

88. A business uses the information contained in an advertising record to determine the effectiveness of
previous promotional efforts in order to
A. maintain sales staff. C. organize inventory.
B. schedule meetings. D. plan future promotions.

89. Which of the following is a reason why a business might decide to allocate more money to its advertising
budget:
A. Image is positive. C. Profits are increasing.
B. Competition is growing. D. Customers are plentiful.

90. A small business plans to spend $350 on newspaper advertising each month. If a 1/8-page ad costs $70,
how many ads will the business be able to buy a year?
A. 60 C. 35
B. 45 D. 70

91. A characteristic of viral marketing strategies is that the messages are distributed through
A. unreliable sources. C. unethical media.
B. pre-existing networks. D. direct, unknown channels.

92. One way to improve a television commercial's response time is to provide viewers with an audible and
visible __________ telephone number.
A. cellular C. collect
B. toll-free D. third-party

93. A customer's preference for buying a good or service from a particular advertising agency, rather than
from a competitor, can be established through
A. referrals. C. economics.
B. free choice. D. goodwill.

94. An advertising salesperson who refuses to accept kickbacks or payoffs in order to make a sale is
demonstrating __________ behavior.
A. ethical C. special
B. legal D. unsocial

95. What is one way that a salesperson might obtain selling information from company promotional material?
A. Watch television ads C. Talk to coworkers
B. Visit local competitors D. Read business journals

96. Which of the following is a product benefit that a salesperson might point out to a graphic designer who
wants to buy a computer:
A. Models are available in many colors. C. Print capability is optional.
B. Monitor has a nonglare screen. D. Pre-installed software saves money.

97. The nature of a promotional good or service is a factor that might cause a salesperson to modify the
__________ process.
A. selling C. buying
B. closing D. probing

98. What type of technique might be effective if a business is trying to sell large, complex video production
equipment to a media production company?
A. Sale pricing C. Team selling
B. Mass marketing D. Retail selling

99. Coordinating resources in order to accomplish a public relations agency's goals is a function of
A. unity of command. C. marketing.
B. span of control. D. management.
Test 892 ADVERTISING CAMPAIGN 10

100. A creative boutique had a net profit of $76,000 last year on sales of $680,000, and this year had a net
profit of $84,000 on sales of $700,000. What is the percent of increase in net profit?
A. 1.5% C. 1%
B. .5% D. 2%