MKTG 373: quiz 7

communications-based rather than sales-based objectives.

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 -sales-based rather than communications-based objectives. -communications-based rather than sales-based objectives. -sales-based rather than advertising-based objectives. -sales-based rather than marketing-based objectives. -marketing -based rather than sales-based objectives.

treats advertising as an expense

One of the main disadvantages of the percentage-of-sales method of promotional budgeting is that it -is very unstable. -is difficult to administer and implement for well-established products. -is financially unsafe and leads to overspending. -treats advertising as an expense. -is difficult to calculate.

communications

Under the DAGMAR approach, an advertising goal involves a ________ task that is specific and measurable. -segmentation -service -communications -marketing -production

true

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

false (Sales results can be due to any of the other marketing-mix variables, including product design or quality, packaging, distribution or pricing)

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

true

true/false: To be effective, marketing objectives must be quantifiable, realistic, and attainable.

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

According to the concept of marginal analysis, -the amount of sales is directly proportionate to the amount spent on advertising. -the amount of sales is inversely proportionate to the amount spent on advertising. -as advertising expenses increase, sales and gross margins also increase to a point, but then they level off. -as sales increase, the price of the product increases up to a specific point and then recedes ultimately. -a firm's optimal expenditure level is a point where marginal costs exceed the marginal revenues by 20%.

direct-response advertising

The marginal analysis method is most suitable as a basis of budgeting for -print advertising. -broadcast advertising. -direct-response advertising. -mass-media advertising. -billboard advertising.

marginal analysis

A budgeting technique used by Sum Company is profits equal gross margin minus advertising expenditures. This method is known as -marginal analysis. -basic budgeting. -assumption margin. -arbitrary allocation. -advertising budgeting.

Objective and task method

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? -Return on investment method -Percentage-of-sales method -Affordable method -Arbitrary method -Objective and task method

two-way interaction

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. -arbitrary interaction -symbiotic interaction -one-way interaction -arbitrary interaction -two-way interaction

promotion

Jason gained responsibility for advertising at his firm. For which element of the marketing mix is he responsible? -distribution -packaging -product -price -promotion

marketing

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. -financial -communication -marketing -PR -production

arbitrary allocation

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 -marginal analysis. -decision making. -contribution margin. -arbitrary allocation. -marketing objectives.

affordable method (In the affordable method, the firm determines the amount to be spent in various areas such as production and operations. It then allocates what's left to advertising and promotion, considering this to be the amount it can afford)

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 -arbitrary allocation method -percentage-of-sales method -objective and task method -return on investment method

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

Which of the following statements is a correct conclusion based on research on advertising during a recession? -Firms that decreased advertising during a recession experienced higher sales, market share, or earnings during or after the recession. -Advertising is not related to economic cycles across major world economies. -Most firms do not cut back on advertising during a recession. -Sales during an expansion are likely to be lower than they would be during a recession. -There is strong evidence that cutting back on advertising can hurt sales during and after a recession.

They are usually not appropriate promotional objectives

Which of the following statements is true of marketing goals that are defined in terms of sales, profit, or market share increases? -They are not a part of the marketing mix. -They are not a part of the IMC process. -They are generally considered unattainable in the long run. -They are usually not appropriate promotional objectives. -They are not quantifiable.

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

Which of the following statements is true of sales objectives? -Good advertising and promotion always lead to an increase in sales. -Sales are a function of many factors, not just advertising and promotion. -Advertising always has an immediate effect on sales. -Sales objectives are typically used when advertising does not play an important role in a firm's marketing program. -Sales objectives offer elaborate guidance to those responsible for planning and developing the promotional program.

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.)

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

true

true/false: 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.