Management of Promotion exam 1

A type of media called ________ generates exposure for a company or brand through outside entities such as the media or the general public; the company or brand does not pay for it. One of the best examples of this type of media occurred in 2014 when the ALS Ice Bucket Challenge to promote awareness of the disease and encourage donations to research went viral.

earned media

Eve Bar Corp., a chain of restaurants in London, launches an ad campaign that is designed to attract people who enjoy the "fast-paced lifestyle." In this scenario, the chain is using

psychographic segmentation.

In developing a strategic marketing plan, what should the company do immediately after evaluating the opportunities presented by various market segments?

select target market

James wants to buy a new truck. While watching TV, he notices a series of truck ads. However, he fails to notice several other ads, including those promoting cosmetics, snack foods, and sodas. In this scenario, James is exhibiting

selective attention.

Sean needs transportation. He asked Sam to go car shopping with him, in hopes of finding a four-door sedan with good gas mileage. Sam believes that Sean should purchase a pick-up truck because girls like guys who drive big trucks. They each have a different position on purchasing transportation. They are engaging in

selective comprehension.

What is the first step in the selective perception process?

selective exposure

While watching a basketball game on television, Ryan leaves the room during commercial breaks and returns only when the live broadcast returns. If he deliberately avoids viewing commercials, Ryan is likely experiencing

selective exposure.

Commercials for Vinnie's Marshmallows describe its marshmallows as a delicious snack for all ages. The commercials show toddlers eating marshmallows as part of their usual diet as well as adults roasting marshmallows over a fire. In these commercials, Vinnie's is the

source.

Star Products has made protecting and preserving the environment the core business tenet of the company. They demonstrate this commitment by re-evaluating how their products and services are created, produced, and marketed to meet the needs of the current generation without compromising the ability of future generations to meet their needs. This is called building

sustainability.

According to the survey conducted by the Association of National Advertisers, which of the following is a primary qualitative criterion that is used to evaluate the performance of ad agencies?

teamwork

Which of the following is a factor driving the integrated marketing communications movement?

-the desire to take advantage of synergies among communications functions. -the proliferation of media and increased audience fragmentation. -audience skepticism of traditional advertising. -IMC's role in the process of developing and sustaining brand equality.

__________ is a combination of many factors, including the name, logo, symbols, design, packaging, and performance of a product or service as well as the image or type of associations that comes to mind when consumers think about a brand.

Brand identity

CL Inc., a manufacturing firm, decided to outsource its entire advertising function. The company launched a new product and paid for the campaign to promote the product. In this scenario, CL Inc., is

a client.

Mars Inc. is a specialized agency that provides various services such as database management, infomercial production, creative services, telemarketing, research, and media services. In this scenario, Mars Inc. is

a direct-marketing agency.

Firm Software Co. has audited their advertising budget for the last three years, identifying a pattern of expenses. They found that their media expenses were fairly consistent from year to year. They decided to change their compensation plan for their agency from a monthly billing to a monthly fee where media commission received by the agency will be credited against the fee. If the commissions are less than the fee, Firm Software will make up the difference in a quarterly billing cycle. This form of commission is called ________ combination.

a fee-commission

Sum Company has depended on key people in each product line to come up with advertising to promote their individual products. This approach has not produced the results they anticipated, and the board is seeking a change in process. They are now looking for an advertising agency that offers its clients a full range of marketing, communications, and promotion services, including planning, creating, and producing the advertising, performing research, and selecting media. Sum is looking for ________.

a full-service agency

NW Inc. specializes in buying radio, television, and newspaper space at discounted rates. Yummy Foods approaches NW Inc. to buy newspaper space at less than market rate. NW's personnel also help Yummy Foods plan their media strategies. However, they do not perform any other functions. In this scenario, NW Inc. is an example of

a media specialist company.

Leon works for an ad agency and is responsible for understanding the advertiser's marketing and promotions needs and interpreting them to agency personnel. He also presents the agency's recommendations to the client and obtains approval from them. Leon has a strong marketing background and understands the advertising process comprehensively. What is Leon's position in the organization?

account executive

Timber-On, a furniture-manufacturing company, has a total budget of $3 million for all its expenses in the current year. It has determined from the previous years that it will require about $2.5 million for production and operational purposes. The balance of $0.5 million has been allocated for advertising and promotion. Which of the following budgeting approaches is the firm following?

affordable method

Superagencies are

an amalgamation of several small, medium, and large advertising agencies.

Blueberry Designs, a boutique, has an advertising department along with sales, marketing, and research departments. The manager of the advertising department heads and controls all the functions of that department, such as budgeting, planning media schedules, and administering the sales promotions programs for all of the company's products and services. Blueberry Designs employs a

centralized marketing system.

Jim, a doctor, takes out a print ad to advertise his new clinic. He opts for a full-page ad in a weekly publication known as Doctor's Info. According to the basic model of communication, Doctor's Info is the

channel.

One Stop Corporation has been working with Top Agency to analyze their promotional plan to include methods for creating awareness about One Stop's product attributes, methods for developing favorable attitudes, and how to better understand consumer purchase intentions. What type of goals or objectives are they creating at this stage of the integrated marketing communications plan?

communication objectives

Under the DAGMAR approach, an advertising goal involves a ________ task that is specific and measurable.

communications

One of the foundational methods for setting objectives Innovation Marketers often uses is the DAGMAR approach. Working with Sum Company to measure advertising effectiveness, they are using this approach to guide Sum Company, focusing their attention on

communications-based rather than sales-based objectives.

The Reflective Enterprise brand is practically a household name. To protect their brand equity, Reflective Enterprises spends huge amounts in advertising to maintain their brand recognition and reputation as the highest-quality service provider in their market. Reflective Enterprises recognized the importance of investing in

competitive advantage.

WomensHealth.com, a website targeting women, is an example of using gender as a basis for successful ________ segmentation.

demographic

Root Inc., a manufacturer of dental hygiene products, manufactures chocolate- and strawberry-flavored toothpastes that are specifically designed for children. Which of the following bases of segmentation is the company using?

demographic segmentation

AB Rail Inc., a private railroad firm, offers both economy-class and business-class tickets, marketing to each segment separately using individualized marketing programs. With respect to the types of market coverage alternatives, the railroad company is using

differentiated marketing.

Reflective Enterprises has depended on magazine, newspaper, and television advertising for most of their advertising efforts. They are losing market share. They recognize that they need to change their strategy to reach an audience that rarely engages in these forms of media. They are looking for a new agency partner to develop a social media campaign. To help develop the resources to support this new direction, the VP of marketing engages the services of a

digital agency.

Advocare, Tupperware, and Mary Kay are examples of companies that choose not to use any channel intermediaries, but instead sell to their customers through

direct channels.

The marginal analysis method is most suitable as a basis of budgeting for

direct-response advertising.

Over the last two decades, increased access to mobile devices, greater Internet usage, and more double-income families have meant more income but less time for shopping for many people. As a result, marketing agencies have used ________ to encourage consumers to purchase products and services directly from the manufacturer.

direct-response marketing

The various brands identified as purchase options to consider during the alternative evaluation process are known as the consumer's

evoked set.

Todd buys a fruit-based drink every afternoon—either a Relish apple juice or an orange drink made by Joy Fruit Juices. He will not consider any other brand or type of soft drink because those two drinks make up his

evoked set.

The American Marketing Association's original definition of marketing focused on ________ as a central concept in marketing and the use of the basic marketing activities to create and sustain relationships with customers.

exchange

Advertising can always make consumers buy a particular brand, even if it is priced higher than a competing brand.

false Advertising can make consumers aware of and interested in the brand, but it can't make them buy it, particularly if it is not readily available or is priced higher than a competing brand.

5-Hour ENERGY positioning itself as a sugar-free energy shot is an example of positioning by product user.

false this scenario is an example of positioning by attribute or benefit. positioning by product user emphasizes identification of association with a specific group

Counts of customer visits to a store, consumer inquiries, coupon redemptions, and reply cards are all possible forms of gathering

feedback.

With respect to motivation research, which technique brings together small numbers of people with similar backgrounds and/or interests to discuss a particular product, idea, or issue?

focus group

Fly High Airlines provides outstanding customer service, which gives it an edge over its competitors. This outstanding customer service is used to

gain a competitive advantage.

The movement that began in the 1980s toward using all forms of promotion to achieve maximum communication impact was not a fad. According to the 4As' definition, what is the name of this evolving approach to coordinate promotional elements and other marketing activities?

Integrated Marketing Communications

Which of the following is true of the low-involvement hierarchy?

It occurs when differences among brands are minimal.

Planet Burgers Inc. is a global food chain that caters to each market it operates in by adapting its products to local tastes and preferences. For example, burgers are made from lamb in India rather than beef due to religion-based preferences. It adds more chili sauce in Mexico and so on. Planet Burgers makes use of ________ segmentation.

geographic

What is the first step in the target market selection process?

identifying markets

With respect to motivation research, which of the following is a face-to-face situation in which an interviewer asks a consumer to talk freely in an unstructured interview using specific questions designed to obtain insights into his or her motives, ideas, or opinions?

in-depth interview

With respect to the consumer decision-making process, the stage that occurs immediately after the problem recognition stage is

information search.

Having a marketing and communications strategy to market consumer products and services adds value by strategically integrating the various communication functions into one plan versus having them operate autonomously. What is the name of the plan for coordinating efforts to avoid duplication, take advantage of synergy among promotional tools, and develop more efficient and effective marketing communication programs?

integrated marketing communications plan

Offersforshoppers.com is a website that provides various offers to consumers. Users can visit the website and choose the offers that they prefer, then relevant coupons that can be redeemed at the point of purchase are sent to their mobile phones. Which of the following promotional-mix elements is occurring in this scenario?

interactive media

Money Backed Enterprises still uses an agency commission system designed in the 1990s. They say that the commission system of agency compensation is more flexible; by charging a large commission, they have the flexibility to perform other services for large clients at no extra charge. In addition, the commission system

is easy to administer.

A budgeting technique used by Sum Company is profits equal gross margin minus advertising expenditures. This method is known as

marginal analysis.

Venus Corporation recognized there are many consumers with different needs and responses to their product lines. They are working with Innovation Marketers to identify opportunities to target distinct groups whose needs and responses to their products are similar. Innovation Marketers and Venus are using

market segmentation.

One of the objectives set by Halo, a manufacturer of food products, was "to introduce our new flavored milk, Milkola, and capture 10 percent of the total demand within one year." This is an example of a ________ objective.

marketing

Harry has joined the marketing department of KC Cola. While going through some files, he came across a document designed for a particular brand of product that contained a detailed analysis of the environmental factors and competition. It also contained a time frame within which some objectives, further divided into tasks, had to be accomplished. The document not only listed the target markets for the brand but also contained specifications about its four Ps and various methods to check the performance of the team as well as of the brand. Which document is this likely to be?

marketing plan

Television's mass audiences are changing; no longer can advertisers depend on broadcast shows like Dallas to capture a major audience who will tune in and watch commercials until they learn who shot JR. Instead, advertisers have moved to refined Internet formats such as paid search. This widely used form of online advertising is a type of

micromarketing

Justin failed to understand the message in an ad for Smithline Catering in a daily newspaper as the newspaper print was unclear. With reference to the communication process, the unclear print would constitute

noise.

For someone buying a car, which of the following is an objective evaluative criterion?

price

Seth works for Don Jagoda Associates, an agency that provides promotional planning, creative research, tie-in coordination, premium design and manufacturing, and contest/sweepstakes management, among other services. What type of specialized services agency is Don Jagoda Associates?

sales promotion agency

One of the main disadvantages of the percentage-of-sales method of promotional budgeting is that it

treats advertising as an expense.

Which of the following statements is true about ageism in advertising?

The difference between the senders' and receivers' age can create problems in establishing common ground.

Which of the following statements is true of sales objectives?

Sales are a function of many factors, not just advertising and promotion.

Doodle Corporation, a manufacturer of safety pins, decided that the company had to increase the awareness of its glow-in-the-dark pins among children and mothers. It also wished to increase the sales of its basic steel pins by 10% in the current financial year. It was convinced that, in order to attain these goals, it had to spend $1.5 million, so it allocated this amount for promotional expenditure. Which of the following promotional budgeting methods was used by Doodle Corporation?

Objective and task method

In which of these situations was marketer-induced problem recognition used?

Shopaholic, a clothing and accessories brand, sends newsletters to all its customers at the end of each summer, stating that their existing wardrobe might be out of style.

Which of the following is not one of the pros of integrated marketing services?

Synergy and economies of scale are difficult to achieve.

Which of the following statements is a correct conclusion based on research on advertising during a recession?

There is strong evidence that cutting back on advertising can hurt sales during and after a recession.

Which of the following statements is true of marketing goals that are defined in terms of sales, profit, or market share increases?

They are usually not appropriate promotional objectives.

When a company has one or more additional layers of management above brand managers to coordinate the efforts of all the brand managers handling a related group of products, it is generally using a ________ system.

category management

Under ________, the client agrees to pay the agency a fee based on the expenditure of its work plus some agreed-on profit margin, often a percentage of total costs.

a cost-plus system

Abound Industries is a multiproduct firm. In addition to competing with outside manufacturers, each brand it produces actually competes against other brands within the company. Abound brands also compete for corporate resources, leading to unproductive rivalries. The type of approach Abound Industries has been using is called

a decentralized approach.

Joy Fruit Juices took the help of a company called Innovators Inc. to create and produce the communication message for its products and in return paid Innovators $20,000 as compensation. However, the final decisions regarding the advertising and promotional program rested with Joy Fruit Juices. In this scenario, Innovators is

an advertising agency.

A small entrepreneurial firm for the last five years, Clear Cite industries is ready to broaden their efforts to expand beyond the tri-state area to a nationwide market. With their growth, they have identified the need for new roles in their organization. They have a number of salespeople, but their promotions effort has been lacking. They have determined a critical role with key responsibilities for coordinating input from people both inside and outside the organization to help define the advertising and promotion process. This position is called

an advertising manager.

GSI industries is looking for several dedicated services to develop and maintain their website and digital marketing. They also need support to create a strategy and media plan to refresh their brand. A medium-size company, GSI may want to engage the services of ________ to coordinate these IMC services.

an agency of record

KB Enterprises is struggling with making their projected sales quotas. They engaged a task force to review their current marketing plan and promotional program. The task force has just completed a review of the marketing plan and is now ready to conduct a situational analysis focusing on factors such as the firm's customers' characteristics and buying patterns, their decision process, and factors influencing their purchase decisions. This analysis is called

an external analysis.

Sum Company's new board realized that the purpose of their advertising and promotion has been ignored for a period of time. Innovation Marketers was hired to conduct an analysis and concluded there is a lack of systematic planning to create communication objectives tied to the budget. Sum Company has been practicing

arbitrary allocation.

According to the concept of marginal analysis,

as advertising expenses increase, sales and gross margins also increase to a point, but then they level off.

Which of the following is not one of the terms used to describe the concept of integration in IMC?

autonomous channels

A company that aims to position a product based on its salient features is using positioning based on

benefits

Which of the following consists of the combination of the name, logo, symbols, design, packaging, and image of associations held by consumers?

brand identity

Average Industries is finding it difficult to differentiate their products or services on the basis of functional attributes. Through advertising, Average Industries can give consumers favorable, unique images so that they make positive associations with Average Industries. This advertising will be building a

brand image

Marketers encourage ________ by introducing new brands into markets that are already saturated and by using advertising and sales promotion techniques such as free samples, introductory price offers, and coupons.

brand switching

Tom, a chocolate maker, placed ads for his chocolate bars in Magz, a magazine that is popular among the managers of large hotels. Knowing that these hotels use chocolate for desserts on a daily basis, Tom wanted to bring his product to the attention of hotels' purchasing managers. Tom is using

business-to-business advertising.

When Dole encourages consumers to "drink their fruits," claiming that eight ounces of juice is the equivalent of two whole fruits, it is positioning itself

by product class.

In the business world, the only marketing-mix variable that impacts sales results is promotion.

false Sales results can be due to any of the other marketing-mix variables, including product design or quality, packaging, distribution or pricing. Advertising can make consumers aware of and interested in the brand, but it can't make them buy it, particularly if it is not readily available or it is priced higher than a competing brand.

Fast Growing Company is performing a promotional program situation analysis. They are currently analyzing the communication process and creating objectives for sales, market share, and profitability. In the promotional planning process, these are called

marketing objectives.

Marketing channels are the ________ element of the marketing mix.

place

A well-known brand of orange juice ran an advertising campaign that touted the health benefits of drinking orange juice. This form of advertising is known as

primary-demand advertising.

Robert, an automobile engineer, detects a strange noise emanating from the engine of his car. As he is an expert mechanic, he diagnoses that the car required a new fan belt. Which of the following stages of the consumer decision-making process is represented in this scenario?

problem recognition

What is the first stage of the consumer decision-making process?

problem recognition

Which term is also used to describe the position of a brand manager who is responsible for the total management of the brand, including planning, budgeting, sales, and profit performance?

product manager

Jason gained responsibility for advertising at his firm. For which element of the marketing mix is he responsible?

promotion

CL Inc., a packaged goods manufacturing company, placed an advertisement in the Independent Retailer, a monthly wholesale purchasing guide for wholesalers and retailers. The advertisement contained pictures of the product and a slogan that states, "Now here's a kiddie snack that mothers will love to see at your checkout counters." Which type of advertising has been used here?

trade advertising

A cell phone ad that portrays buyers using the phone to access their Facebook, Instagram, and Snapchat accounts is using benefit segmentation.

true

An important reason for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured.

true

Causes like the Special Olympics and the American Cancer Society are examples of products, or bundles of benefits or values that satisfy the needs of consumers.

true

Direct-response advertising is one type of advertising that evaluates its effectiveness on the basis of sales.

true

Dividing the market on the basis of personality and/or lifestyles is referred to as psychographic segmentation.

true

Grace Mode, a car manufacturer, has adopted concentrated marketing strategy by marketing its vehicles exclusively at the premium segment.

true

To be effective, marketing objectives must be quantifiable, realistic, and attainable.

true

Innovation Marketers is helping Sum Company in their planning process by establishing communication objectives. Sum Company wants to make sure the budget limitations are also included, showing ________ between the communication analysis and determining the budget.

two-way interaction

Jane told her friend Anne that Clean-Yes, a detergent recently launched by TG & Company, was extremely good because it not only removed tough stains but was also mild on clothes. Which type of touch point is happening in this scenario?

unexpected touch point