MKTG 403: Chapter 7

True or false: Sales results are solely due to advertising and promotion of a product or a service in the world of business.

False

Identify the final objective of the social consumer decision journey which takes a consumer to long-term behavioral changes.

Lead

______ provides the theoretical basis for establishing budgets.

Marginal analysis

______ objectives for a promotional program specify a method and criteria for determining the success of the program.

Measurable

Identify the effect of executing a promotional campaign without any specific objectives.

The accomplishment of promotion efforts cannot be determined.

A budgetary amount is created, and money is moved down to various departments in a(n) ______ approach.

top-down

True or false: Advertising shares that are smaller than their market shares can be maintained by larger advertisers.

true

True or false: The size of a target market affects a budget allocation decision.

true

A(n) ______ target audience is one of the main features of a good communications objective.

well-defined

In the arbitrary allocation method of establishing an advertising budget, management decides the budget on the basis of ______.

what is felt to be necessary

For an advertising and promotional program, coordination of objectives must be ______, inside the ad agency, and between the two.

within the company

______ is identified as the primary role of an IMC program.

Communication

______ should be the basis of planning an IMC program.

Communications objectives

______ is often used by large corporations, and it estimates the top 1,000 companies' advertising in 10 media and in total.

Competitive Media Reporting

______ communications planning includes determining what tasks need to be done, which marketing communications functions should be used, and to what extent.

Zero-based

Customers start to _____ as they move up the communications effects pyramid.

decline in number

By applying the law of diminishing returns to the effects of advertising budgets, as the quantity of advertising increases, its incremental value ______.

decreases

As discussed by Julian Simon and Johan Arndt, the consequences of advertising budgets follow the microeconomic law of ______.

diminishing returns

Sales objectives are suitable for promotional endeavors that are mostly ______ in nature.

direct action

The first step for a marketer in the social consumer decision journey model is to .

monitor

In the affordable method of budgeting advertisements, the task to be executed by an advertising function is ______. Multiple choice question.

not considered

The columns of the social consumer decision journey represent the ______.

objectives that marketers need to accomplish at each stage

There is an increasing effect of advertising and promotional efforts that continues ______ after a particular budget level has been reached on the S-shaped response curve.

only to a certain point

Marketers often develop a ______ to determine the investment value of the advertising and promotion layout.

payout plan

In the ______ method, sales of a product is the basis for the advertising and promotions budget.

percentage-of-sales

Advertisers should use a(n) ______ statement if they want to communicate an appeal or message to a target audience in a communications objective.

precise

Top-down budgets are essentially ______.

predetermined with no theoretical basis

According to marginal analysis, the difference between the gross margin and the advertising expenditures of a firm is known as .

profits

The basic idea of a payout plan is to ______.

project the revenues a product will generate

A firm's ______ is an investment of its capital that needs an economic justification.

promotional spending

Marketing objectives that describe a target market precisely and note the time frame for achieving a goal are ______.

quantifiable

In order to be effective, marketing objectives should be ______.

realistic

Determining the degree to which consumers must be changed by a campaign can be done once a target market's present status concerning ______ is known.

response hierarchy variables

The budgeting method considers advertising and promotions as investments, much like plant and equipment. (Include one word per blank.)

return on investment

Managers who believe the only meaningful aim of a promotional program is sales adopt the position that the basic reason a firm spends money on advertising and promotion is to ______.

sell its product or service

One of the major objectives of sales promotion programs is to create ______ in sales.

short-term increases

The ______ explains the primary target audience for a company's product or service.

situation analysis

A communications objective or copy platform statement should be ______ so as to guide the creative specialists who make an advertising message.

specific

A major characteristic of a communications objective is that it is ______.

specific

Marketing objectives are generally explained in terms of ______.

specific, measurable outcomes

In the comparative parity method of establishing advertising budgets, ______ is established in the marketplace because the competition is taken into consideration.

stability

The percentage-of-sales method is generally a ______ approach to budgeting.

stable

A part of projected future sales is used as a base for budgeting in the ______ method.

straight-percentage

In the social consumer decision journey, as in the traditional model, marketers have to ______.

take specific marketing actions to lead to a purchase

In the percentage-of-sales method, management sets the budgetary amount by ______.

taking a percentage of the sales dollars

Russell Colley prepared a report for the Association of National Advertisers titled Defining Advertising Goals for Measured Advertising Results in the year ______.

1961

measures are needed to decide a target market's present position regarding various response stages.

Benchmark

In a(n) ______ advertising/sales response function, the initial outlays of an advertising budget have little impact.

S-shaped

The zero-based communications planning approach was suggested by ______.

Tom Duncan

The marketing and promotional difficulties that a company or a brand faces are recognized by ______.

a situation analysis

According to the effects of advertising budgets, based on the law of diminishing returns, consumers with the greatest potential to purchase a product or service are likely to ______.

act on the first exposure to advertising

In the ______ method of budgeting, firms decide the amount to be spent in different areas such as production and operations.

affordable

The final step in the budgeting process, once the budget has been appropriated, is to ______.

allocate it

Determining which markets, products, and/or promotional elements will receive which amounts of the funds appropriated come under the ______ decision.

allocation

Planning a communications program, specifically as it relates to social media, to promote engagement, sharing, and loyalty is dealt with by using ______.

amplification

Marketing objectives are determined and a marketing plan is developed on the basis of a situation

analysis

The budgetary amount is often set by fiat in the ______ method, in which virtually no theoretical basis is considered.

arbitrary allocation

Consumers can move past the first level up to higher levels in the communications effects pyramid once they ______.

are aware of a product

An important function of advertising is that it can make consumers ______.

aware of the existence of a product

According to the communications effects pyramid, the first responsibility of advertising and promotion is to achieve ______.

awareness

In the ______ approach, the overall budget is based on the accumulation of the estimated costs associated with the performance of the strategies and tasks determined for attaining certain objectives.

buildup

A service often used by small companies, which clips competitors' advertisements from local print media, allowing the company to work backward to determine the cumulative costs of the advertisements placed, is known as a .

clipping service

A task can be performed by, and attributed to, advertising rather than to a combination of many marketing factors.

communications

According to the DAGMAR model, ______ are the logical basis for advertising goals and objectives against which success should be measured.

communications effects

A specific and measurable ______ is involved in an advertising goal under the DAGMAR approach.

communications task

Budget amounts are established by managers by matching the competition's percentage-of-sales expenditures in the ______ method.

competitive parity

Attempts to apply quantitative models to budgeting have met with limited success largely because they employ ______ models.

computer simulation

Models used to determine the relative contribution of an advertising budget to sales that involve statistical techniques such as multiple regression analysis are known as models.

computer simulation

The effects of advertising rapidly begin to reduce according to the ______ model.

concave-downward function

The difference between the total revenue generated by a brand and its total variable costs is known as the .

contribution margin

Determining specific objectives for an IMC program helps to facilitate ______.

coordination of various groups

In the its early stages, the final objective in the social consumer decision journey (referred to as lead) ______.

creates more brand awareness

Achieving the initial stages of the communications effects pyramid is ______ than achieving those toward the top.

easier

Implementing the percentage-of-sales method is ______.

easy

The advantages that larger advertisers have over smaller ones are known as ______.

economies of scale

The social consumer decision journey is similar to the traditional response model as they both ______.

go through stages in the purchase decision

One of the major criticisms faced by the DAGMAR approach is its dependence on the ______.

hierarchy of effects model

According to marginal analysis, sales and gross margins ______ when advertising expenditures increase.

increase to a point and then level off

According to the return on investment (ROI) budgeting method, budgetary appropriation, or ______, lead to certain returns.

investments

Social media has changed the consumer's decision-making process to a circular process in which consumers can ______.

leave at any stage

It is ______ to reach the target market in smaller markets than in larger markets.

less expensive

The concave-downward function model of advertising expenditure suggests that for optimal influence on sales, the expenditure for advertising should be ______.

less than under conventional models

After initial exposures, each additional ad will supply potential buyers with ______.

little or no new information that will affect their decision

Under the objective and task method of budget setting, the first objective that needs to be established when the promotional planning model is presented is the ______ objective.

marketing

In the straight-percentage method, a(n) ______ estimates are used to project sales for the coming years.

marketing manager's

Statements of what is to be achieved by an overall marketing program within a given time period, generally mentioned in the marketing plan, are known as ______.

marketing objectives