Full File at Test-Bank-For-Advertising-An-Integrated-Marketing-Communication-Perspective-3E

Full file at Test-Bank-for-Advertising-An-Integrated-Marketing-Communication-Perspective-3E-

10

Student: ______

1. / The purpose of setting specific advertising goals and objectives is to:
A. / provide a benchmark against which success or failure can be measured.
B. / put constraints on the creative department.
C. / have a method of determining when to delete products from the product line.
D. / forecast the market share level that can be attained by good advertising.
2. / Meaningful objectives can also be a useful guide for:
A. / creative executions.
B. / customer satisfaction.
C. / understanding market trends.
D. / decision making.
3. / Which of the following is NOT given as a realistic reason for setting specific objectives for an integrated marketing communications program?
A. / Specific objectives serve as communication devices and facilitate coordination of various groups working on the campaign.
B. / Specific objectives serve as a guide for planning and decision making.
C. / Specific objectives provide a benchmark against which success or failure of a campaign can be measured.
D. / Specific objectives provide specific ideas on how to develop more creative and effective advertising.
4. / _____ objectives are types of objectives that are usually stated in terms of specific, measurable outcomes such as sales volume, market share or return on investment.
A. / Sales
B. / Marketing
C. / Communication
D. / Advertising
5. / Which of the following statements best describes the relationship between marketing and IMC objectives?
A. / Marketing objectives and communications objectives are synonymous.
B. / Marketing objectives evolve from communication objectives.
C. / IMC objectives are derived from marketing objectives.
D. / For a successful campaign, communications objectives can be developed before or after the development of marketing objectives.
6. / To be effective, marketing objectives need to be:
A. / realistic and attainable.
B. / erudite and challenging.
C. / philosophical and fungible.
D. / long-term and qualitative.
7. / Marketing goals defined in terms of sales, profits, or market share increases are:
A. / situational response objectives.
B. / usually not appropriate for marketing communication objectives.
C. / integrated marketing communications objective.
D. / relationship marketing objectives.
8. / To develop integrated marketing communications objectives, managers need the situation analysis to identify:
A. / the marketing issues.
B. / the marketing communication issues.
C. / ‘Where are we now?’.
D. / all of the given answers.
9. / Many marketing managers approach promotion from a(n) _____ perspective and believe the objective of advertising and other promotional mix elements is to relay information about a product to customers.
A. / informational
B. / communications
C. / sales-orientated
D. / segmentation
10. / Many marketing managers prefer sales-orientated objectives for advertising because they believe:
A. / the reason a company spends money on advertising and promotion is to sell its products or service.
B. / money spent on advertising and promotion should show measurable results.
C. / sales-orientated objectives help get everyone involved in the promotional program to think about how advertising and promotion will influence sales.
D. / all of the given answers are true.
11. / Financially orientated managers who view marketing communications as an expense rather than an investment are likely to prefer _____ objectives for advertising and other promotional areas.
A. / sales-orientated
B. / communication
C. / positioning
D. / image
12. / In addition to advertising and promotion, _____ might also influence a company's sales.
A. / product quality
B. / price
C. / distribution
D. / all of the given answers
13. / The concept of advertising expenditures producing long-term as well as immediate results is known as:
A. / the carryover effect.
B. / the communication effect.
C. / the low-involvement effect.
D. / the halo effect.
14. / The carryover effect:
A. / has no impact on sales objectives.
B. / has no effect on the relationship between advertising and sales.
C. / encourages the use of non-specific objectives.
D. / is particularly apparent with mature, low-priced and frequently purchased products.
15. / Which of the following is likely to be a problem for a manager who uses sales as a measure of advertising effectiveness?
A. / Sales results offer little guidance or direction to those responsible for planning and developing the advertising program.
B. / There is a short, often unmeasurable, time period between when advertising is run and when sales actually occur.
C. / Sales results are affected by no marketing mix variable other than price and promotion.
D. / No internal environmental variables have any significant influence on sales results.
16. / Using sales results as an advertising objective can be difficult due to:
A. / the difficulty in isolating the effects of advertising on sales.
B. / the fact there is often a lagged effect whereby the effect of advertising on sales is not immediate.
C. / the fact advertising objectives emphasising sales are generally not good operational guides to decision making.
D. / all of the given answers.
17. / Direct-response advertisers generally set objectives and measure success in terms of:
A. / brand awareness.
B. / brand attitudes.
C. / purchase intentions.
D. / sales response generated by an ad.
18. / Sales-orientated objectives are appropriate for:
A. / all internet marketing.
B. / retail advertising promoting a sale or special event.
C. / products that have been introduced in a highly volatile market.
D. / any advertising campaign aimed at maintaining brand awareness.
19. / Various response hierarchy variables such as awareness, knowledge, liking, preference, conviction and purchase are the basis for:
A. / marketing objectives.
B. / sales-orientated objectives.
C. / image objectives.
D. / communications objectives.
20. / Advocates of communication-based objectives for advertising propose using _____ as a basis for setting these objectives.
A. / sales
B. / market share
C. / stages of a hierarchical response model
D. / carryover effects
21. / Which of the following is at the top of the communication effects pyramid?
A. / Awareness
B. / Knowledge
C. / Liking
D. / Purchase/repurchase
22. / Managers who use the communications effects pyramid to set objectives believe:
A. / lower-level objectives such as purchase and reuse form the foundation of the communications program.
B. / the foundation of the communications program is set by accomplishing lower-level objectives such as awareness, knowledge and comprehension.
C. / advertising and promotion should first accomplish lower-level objectives such as trial and purchase.
D. / advertising and promotion should first accomplish higher-order objectives such as trial and purchase and then create awareness and brand knowledge.
23. / ‘Encouraging current drinkers of Coca-Cola to drink more of the beverage’ would be an example of a _____ objective.
A. / sales-orientated
B. / market-orientated
C. / product development
D. / communications
24. / Which of the following statements about communications objectives is true?
A. / When setting objectives using the communications effect pyramid, the last step reached is trial.
B. / Sales goal cannot be translated into communications objectives.
C. / Marketing and advertising managers do not rely on experience and intuition when setting communications goals.
D. / Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals.
25. / DAGMAR is:
A. / a philosophy of advertising goal setting.
B. / a model of consumer behaviour.
C. / a method of setting sales objectives.
D. / the most often used method of setting objectives.
26. / _____ is an approach to setting advertising goals and objectives, which states that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured.
A. / The carryover effect
B. / The hierarchy of effects model
C. / Zero-based communications planning
D. / DAGMAR
27. / According to DAGMAR, the basic function of advertising is to:
A. / create sales.
B. / communicate.
C. / increase market share.
D. / generate action.
28. / Under the DAGMAR model, a(n) _____ can be performed by and attributed to advertising rather than a combination of marketing factors.
A. / advertising hierarchical plan
B. / functional communication change
C. / communications task
D. / marketing task
29. / According to the criteria outlined in DAGMAR, which of the following is the best statement of a quantitative communications objective?
A. / ‘Increase product users to 40% of the total market.’
B. / ‘Win new customers and increase sales volume by 15%.’
C. / ‘Increase the number of customers mentioning the brand name when asked for brand preference from 40% to 50%.’
D. / ‘Increase awareness of the brand.’
30. / Using the DAGMAR approach, which of the following is NOT a stage of commercial communication?
A. / awareness
B. / comprehension
C. / conviction
D. / sales
31. / For which of the following advertising communication tasks should the specified time period required be the longest?
A. / creating brand awareness
B. / increasing brand awareness levels
C. / creating knowledge regarding a brand attribute
D. / repositioning a brand
32. / DAGMAR MOD II was developed to alleviate problems with:
A. / the response hierarchy used in the original DAGMAR model.
B. / the costs of using DAGMAR.
C. / the fact DAGMAR ignores sales results.
D. / setting benchmark measures.
33. / Which of the following is NOT an example of a common criticism of DAGMAR?
A. / It ignores communications objectives.
B. / It is difficult to implement.
C. / It is a costly and time-consuming process.
D. / It runs counter to the belief that the function of advertising is to create sales.
34. / The letters in the RTTT models spell out the quality of the objectives and the goals they seek to achieve. What do the letters represent?
A. / Regression, Trial, Target market and Theory
B. / ROI, Target market, Timing and Task
C. / Realistic, Target market, Task and Timeframe
D. / Regression, Timing, Term and (market) Type
35. / To more fully appreciate the value of advertising and promotion, managers should treat the communications budget as a(n):
A. / asset.
B. / expense.
C. / liability.
D. / investment.
36. / In marginal analysis, all of the following should be considered EXCEPT:
A. / sales.
B. / fixed costs of advertising.
C. / advertising expenditures and other variable costs.
D. / net worth.
37. / The _____ function model is based on the microeconomics law of diminishing returns.
A. / concave-upward
B. / S-shaped demand
C. / S-shaped response
D. / concave-downward
38. / The concave-downward function model is based on:
A. / the microeconomics law of diminishing returns.
B. / the economic law of supply and demand.
C. / price elasticity of demand quotients.
D. / the change in contribution margins as item price is changed.
39. / The S-shaped response function implies that:
A. / initial advertising expenditures will have little impact on sales.
B. / advertising expenditures will have major impact on sales.
C. / sales effects will follow the microeconomic law of diminishing returns.
D. / sales will immediately increase then decrease.
40. / The two models that are commonly used to explain the relationship between advertising and sales are the:
A. / concave-downward function and the S-shaped response function.
B. / S-shaped response function and the concave-upward function.
C. / marginal utility function and the S-shaped demand function.
D. / S-shaped demand function and the convex-downward function.
41. / Well-known brand name products do not receive incremental advantages from increased dollar expenditures on advertising. Once the ad hits the market, subsequent budget increases result in little or no incremental gains. This might best be explained by:
A. / arbitrary allocation.
B. / the objective and task method.
C. / competitive parity.
D. / rapidly diminishing returns.
42. / According to the concave-downward model:
A. / the effects of advertising quickly begin to diminish.
B. / the carryover effect is especially true for low-priced, frequently purchased consumer products.
C. / sales decrease rapidly if the price is too high.
D. / initial outlays of the advertising budget have little impact on sales.
43. / According to the S-shaped response curve:
A. / the effects of advertising quickly begin to diminish.
B. / the carryover effect is especially true for low-priced, frequently purchased consumer products.
C. / sales decrease rapidly if the price is too high.
D. / initial outlays of the advertising budget have little impact on sales.
44. / A marketing firm decides to purchase media time in an attempt to sell its new product. After purchasing approximately $1 million dollars of time, it has noticed no impact on the sales of the product. However, at $3 million, a substantial increase is shown. This might best be explained by:
A. / arbitrary allocation.
B. / the objective and task method.
C. / competitive parity.
D. / an S-shaped response.
45. / The S-shaped response curve suggests:
A. / advertising effectiveness will not be related to spending.
B. / very low spending levels will not work.
C. / advertising effectiveness will vary directly according to spending levels.
D. / the carryover effect is especially true for low-priced, frequently purchased consumer products.
46. / Which of the following is a factor that influences the setting of the advertising budget?
A. / which stage of its life cycle the product is in
B. / whether competition is active or concentrated
C. / whether the marketer is a pioneer in the market
D. / All of the given answers
47. / Which of the following is a factor that influences the setting of the advertising budget?
A. / whether the company uses communications or sales objectives
B. / corporate structure
C. / the basis for product differentiation
D. / the extent of selective retention
48. / When higher-level executives determine the budget amounts to be allocated for each department's advertising expenditures, a _____ approach is being used:
A. / bottom-up
B. / marginal contribution
C. / top-down
D. / Delphi
49. / All of the following are considered top-down approaches to determining budgets EXCEPT:
A. / the objective and task method.
B. / the affordable method.
C. / the percentage of sales method.
D. / arbitrary allocation.
50. / Which of the following is NOT a top-down approach to budget setting?
A. / the affordable method
B. / percentage of sales
C. / competitive parity
D. / payout planning
51. / The _____ method of budgeting is being employed when expenditures are allocated by an analysis of expenditures for all aspects of producing and marketing the product. The ad budget is determined by making sure a certain amount is not exceeded.
A. / arbitrary allocation
B. / percentage of sales
C. / affordable
D. / return on investment
52. / You know the _____ method of budgeting is being employed after hearing an experienced marketing department manager respond to a new employee's question, ‘How was the ad budget established last year?’ by saying, ‘The same way it's always been done. I just have an instinct for how much should be budgeted where.’
A. / arbitrary allocation
B. / percentage of sales
C. / ROI
D. / return on investment
53. / Which top-down budgeting method is being employed when expenditures are allocated by assigning a budget based on gut feelings?
A. / arbitrary allocation
B. / percentage of sales
C. / affordable method
D. / payout planning
54. / The most commonly utilised method of budget determination by large firms is:
A. / competitive parity.
B. / objective and task.
C. / percentage of sales.
D. / arbitrary allocation.
55. / The _____ method of budgeting is being employed when expenditures are allocated by assigning a part of the cost of the product to be allocated to advertising. The total budget is based on units sold.
A. / arbitrary allocation
B. / percentage of sales
C. / objective and task
D. / return on investment
56. / To set an advertising budget, the marketer of filing cabinets examines advertising-to-sales ratios published in trade magazines and then allocates a percentage of sales dollars to the advertising effort. Which two budgeting methods are being employed?
A. / competitive parity and percentage of sales
B. / competitive parity and payout planning
C. / payout planning and percentage of sales
D. / percentage of sales and objective and task
57. / Which of the following budgeting procedures would be used if a firm wanted a method that is simple to understand and financially safe?
A. / competitive parity
B. / marginal analysis
C. / percentage of sales
D. / objective and task
58. / The _____ method of budgeting uses advertising-to-sales ratio data.
A. / objective and task
B. / affordable
C. / percentage of sales
D. / ROI
59. / The major problem associated with the _____ budgeting method is a reversal of the cause and effect relationship.
A. / percentage of sales
B. / objective and task
C. / competitive parity
D. / S-shaped response
60. / The _____ budgetary allocation method is designed to promote stability and minimise marketing warfare as well as taking advantage of the collective wisdom of the industry.
A. / ROI
B. / arbitrary allocation
C. / percentage of sales
D. / competitive parity
61. / When using the competitive parity budgeting method, the firm:
A. / matches its share of total industry advertising expenditures to its market share.
B. / spends as much as it can.
C. / allocates some portion of planned sales for the period to advertising.
D. / spends the same total amount as its major competitors spend.
62. / For which of the following methods of determining budget would a marketing department manager be most likely to use input from a clipping service?
A. / ROI
B. / arbitrary allocation
C. / percentage of sales
D. / competitive parity
63. / The _____ method of budgeting is being employed when expenditures are allocated according information about industry averages for advertising. The budget is set to maintain a level consistent with industry spending.
A. / arbitrary allocation
B. / percentage of sales
C. / objective and task
D. / competitive parity
64. / A disadvantage associated with the _____ method is its assumption that because firms have similar promotional expenditures their programs will be equally effective.
A. / return on investment
B. / affordable
C. / competitive parity
D. / objective and task
65. / The _____ method of budgeting is being employed when expenditures are allocated by looking at the revenue generated from sales of the product during one year. The information gathered from this examination is used to determine the next year's dollar amounts.
A. / arbitrary allocation
B. / ROI
C. / payout planning
D. / return on investment
66. / In the _____ method of budget determination, advertising is considered an investment, similar to plant and equipment.
A. / payout planning
B. / objective and task
C. / ROI budgeting
D. / competitive parity
67. / Top-down budgeting methods are commonly used because of:
A. / their effectiveness.
B. / upper management's desire for control.
C. / the growing availability of computer simulations.
D. / the ease with which a manager can assess the impact of sales on ROI.
68. / The task and objective method of budgeting as well as the payout plan are both examples of the _____ approach.
A. / trading-up
B. / top-down
C. / bottom-up
D. / build-up
69. / Defining the communications objectives to be accomplished and estimating the costs associated with the performance of the necessary strategies and activities are steps in the _____ method of budgeting.
A. / competitive parity
B. / payout planning
C. / ROI
D. / objective and task
70. / Which of the following is an example of a budgeting allocation method that uses a build-up approach?
A. / ROI
B. / competitive parity
C. / objective and task
D. / arbitrary allocation
71. / All of the following are components of the objective and task method EXCEPT:
A. / a re-evaluation of objectives.
B. / determination of competitor's expenditures.
C. / isolation of objectives.
D. / estimation of required expenditures.
72. / The first task in the objective and task method of budgeting is to:
A. / conduct a system analysis.
B. / create an organisational budget.