Quiz Questions

The Chief Marketing Officer of the Kimberly-Clark Company will be using a percentage of sales method to set the advertising budget for the year. Historically, the company uses 7% of sales for promoting their brand of toilet paper each year. Based on market data, the company estimates to achieve $2.8 million dollars in sales this coming year. What will their budget be for promoting the brand?

$196,000 (.7 x 2.8 million)

In order to compare the efficiencies of media, Derek calculates the CPM for each. For Golf Digest, the circulation is 500,000 and the cost for a full page ad is $40,000. The CPM for Golf Digest is:

$80.00

All of the following are advantages associated with advertising, EXCEPT:

Ability for the consumer to give immediate feedback through two-way communication

Public Relations is

Any activity designed to create and maintain goodwill toward an organization

When Elizabeth was asked to develop a promotional budget for the year, she planned out every marketing activity, researched the cost involved for each, and added it up to determine a total budget that would be needed to implement new marketing initiatives for the upcoming year. She submitted it to her supervisor for final approval before implementing the plan. This is an example of a(n) _____________, fill in the blank, approach to budgeting.

Bottom up

When the ABC Corporation first opened their doors for business, they had no idea how much to allocate to promotional expenditures. They decided that if they wanted to be as successful as their leading competitors, they needed to invest in the brand to the same level. After tracking the marketing tactics of the competition, they were able to estimate the costs and develop a realistic budget that the marketing director was able to spend throughout the year to achieve their communications goals. This is an example of a(n) _____________, fill in the blank, approach to budgeting.

Competitive parity

Due to the high visibility of advertising, it is a very credible source of information for most consumers

False

Public relations includes all techniques involving contacting and influencing prospects using such means as telemarketing, mail, and email.

False

The two broad categories of expenses related to advertising are:

Media buying and production expenses

All of the following are disadvantages associated with advertising, EXCEPT:

The advertiser has little control over the timing of the message

A local radio commercial costs $600 and reaches an estimated 10,250 listeners. A local cable commercial costs $1000 and reaches an estimated 18,500 viewers. Which medium provides the lowest CPM?

The cable commercial

The percentage of customers who click on an ad or link of interest to them is called:

The click through rate

When buying media, there is always a tradeoff between:

The cost of the ad placement and the number of people exposed to the message

The easiest form of advertising to track and measure is online digital advertising.

True

The elements of the promotional mix that an advertiser can use to communicate with a customer include advertising, public relations, professional selling, sales promotions, direct marketing, and online/digital marketing.

True

Traditional forms of media, such as newspapers, radio and television have declined in use in recent years as more unusual forms of media have been created to break through clutter and offer advertisers a more cost effective, and sometimes more measurable, way to promote their brands.

True

When baby products (such as formula, diapers and bottles) portray a smiling, happy baby in the visual of the advertisement rather than the product features, they are utilizing a(n) _____________, fill in the blank, creative appeal to get the customer's attention.

Emotional

When a commercial for men's razor blades demonstrate how the blades work to create the closest shave, the brand is using a _____________, fill in the blank, creative appeal to get the customer's attention.

Informational

Coordinating all of a firm's promotional activities and media to produce a consistent, customer-focused message is known as

Integrated marketing communications

The salesperson for the local radio station WOMX states that their listening audience is made up of 120,000 people in the coverage area. This number can also be referred to as the station's:

Reach