Chapter 4

In using the payout planning method of developing a marketing communications budget, the larger amounts of dollars would be spent on marketing communications: A) in the early years to build brand awareness and brand equity B) in the middle years to build brand equity and brand preference C) in the later years to maintain market share D) when the market share is the lowest

A

The first step in the IMC planning process is: A) analysis of the company's context B) defining the firm's target market C) an analysis of the product positioning D) developing communications objective

A) Analysis of the company's context

Geodemographics: A) combines census data with psychographic data B) segments populations by generations C) is a form of global marketing D) groups consumers by region

A) Combines census data with psychographic data

Successful global integrated marketing communication campaigns include the following tactics, except: A) a standardization approach B) understand the international market C) create a borderless marketing plan D) think globally, but act locally

A) a standardization approach

Even though a business may have gone out of business, a few consumers may still recall the company when thinking about making a new washing machine purchase due to: A) carryover effects of previous ads B) wear out effects of ads of competitors C) threshold effects of former ads D) decay effects of former ads

A) carryover effects of previous ads

In examining customers during the IMC planning context analysis, the easiest group to study is: A) current customers B) former customers C) potential new customers D) competitors' customers

A) current customers

S.O.S. soap pads were advertised on television for many years. When the company discontinued advertising, sales slowly began to decline and consumers gradually forgot the brand name. This illustrates the concept of: A) decay effects B) wear out effects C) carryover effects D) threshold effects

A) decay effects

The method of consumer segmentation that is based on population characteristics is: A) demographics B) psychographics C) geographic D) polygraphic

A) demographics

Using gender, age, ethnicity, and income as market segmentation variables is the application of which approach? A) demographics B) psychographics C) geographic D) polygraphic

A) demographics

The sales-response function curve models the: A) diminishing returns of advertising B) threshold effects of advertisements C) carryover effects of advertising D) decay effects of advertisements

A) diminishing returns on advertising

In terms of the relationship between expenditures on advertising communications and subsequent sales revenues, too many marketing managers assume that there is a(n): A) direct relationship B) indirect relationship C) inverted U-shaped relationship D) inverse relationship

A) direct relationship

The marketing director of the Houston Astros baseball team has developed an advertising campaign targeted at females. This is an example of the demographic segmentation variable of: A) gender B) age C) income D) ethnicity

A) gender

The following are possible product positioning strategies, except: A) governmental customers B) cultural symbols C) product users D) product class

A) governmental customers

The following are examples of typical communication objectives, except: A) identify competitors B) encourage repeat purchases C) enhance firm image D) change customer beliefs or attributes

A) identify competitors

The NAICS/SIC code program is used in which type of business-to-business segmentation? A) industry B) company size C) geographic D) benefit

A) industry

The primary disadvantage of the meet-the-competition method of marketing communication budgeting is: A) marketing dollars may not be spent efficiently B) there is little flexibility in how the marketing dollars can be spent C) when sales go down, so does spending D) it shows a lack of commitment to marketing

A) marketing dollars may not be spent efficiently

In terms of marketing expenditures, companies tend to spend the most (41%) on: A) media advertising B) trade promotions C) consumer promotions D) direct marketing

A) media advertising

In terms of marketing expenditures, service companies tend to spend more on which of the following than manufacturers? A) media advertising B) trade promotions C) consumer promotions D) direct marketing

A) media advertising

Which approach to developing a marketing communications budget is often viewed as being the most effective? A) objective and task B) percentage of sales C) what we can afford D) payout planning

A) objective and task

Basing a communications budget on sales from the previous year or anticipated sales for the next year is which method? A) percentage of sales B) meet the competition C) what we can afford D) payout planning

A) percentage of sales

A restaurant that advertises "the best food and best service in town" uses which form of positioning? A) product attributes B) competitors C) use or application D) price-quality relationship

A) product attributes

The product positioning strategy based on a product trait or characteristic is the positioning approach of: A) product attributes B) competitors C) use or application D) price-quality relationship

A) product attributes

When a product positioning strategy is based on the type of consumer that buys an item, the positioning approach being used is: A) product user B) product class C) use or application D) cultural symbol

A) product user

The following are methods of segmenting business-to-business markets, except: A) psychographics B) NAICS/SIC code C) geographic location D) size of business

A) psychographics

Travel agencies have started advertising unique women-only getaways because research: A) shows that many women are planning a girls-only getaway in the future B) indicates that women influence a large percentage of the spending habits of males C) indicates that women are willing to spend more money on a vacation than men D) suggests that women and children are the primary influencers in a vacation destination spot

A) shows that many women are planning a girls-only getaway in the future

Using segmentation by size, which type of organization would be most likely to be contacted by e-mail or outbound telemarketing? A) small size B) medium size C) large size D) governmental

A) small size

) In terms of ad spending by media in the United States, the largest category is: A) television B) magazines C) the Internet D) newspapers

A) television

In terms of U.S. business-to-business direct marketing expenditures, the largest category is: A) television B) Internet marketing (non-e-mail) C) direct mail (non-catalog) D) telephone marketing

A) television

If Microsoft's marketing team wanted to use a different communications approach when designing mailings for various business industries, they could utilize: A) the NAICS code B) demographics C) competitive analysis D) opportunity analysis

A) the NAICS code

The most common method of segmenting business markets by industry is to use: A) the NAICS code system B) geographic location C) business characteristics D) customer value measures

A) the NAICS code system

For a market segment to be viable, it should meet each of the following tests, except: A) the members of the market segment should be ambiguous B) the market segment must be large enough to be financially viable to market with a separate marketing campaign C) the market segment must differ from the population as a whole D) the market segment must be reachable through some type of media or marketing communications

A) the members of the market segment should be ambiguous

If a company chooses to focus marketing efforts on children, which demographic variable is being used to segment the market? A) gender B) age C) generations D) benefits

B) age

The marketing leaders of the New Orleans Saints football team developed an advertising campaign targeted at teenagers. This is an example of the demographic segmentation variable of: A) gender B) age C) income D) ethnicity

B) age

If Dominos advertises, "our pizza beat Pizza Hut in a recent taste test," the positioning approach would be: A) product attributes B) based on competitors C) use or application D) price-quality relationship

B) based on competitors

When a sandwich chain points out that its meats are sliced in the store while Subway's meats are sliced in a "factory," the type of positioning being emphasized is: A) product attributes B) competitor C) use or application D) price-quality relationship

B) competitor

The product positioning strategy of using another brand to establish the position is the positioning approach of: A) product attributes B) competitors C) use or application D) price-quality relationship

B) competitors

Developing an integrated marketing communications plan requires the analysis of the 3 C's, which consist of: A) current customers, competitors' customers, and former customers B) customers, competitors, and communications C) company, context, and IMC components D) communications, coupons, and customers

B) customers, competitors, and communications

When a concave downward function is present, increasing advertising expenditures result in: A) greater sales B) diminishing returns C) average returns D) further advertising expenditures

B) diminishing returns

PRIZM is a company that specializes in which type of segmentation? A) product differentiation B) geodemographic C) geographic D) psychographic

B) geodemographic

Targeting Northern states in the United States for sales of snow skis is an example of which type of segmentation? A) demographic B) geographic C) benefit D) geodemographic

B) geographic

A commercial showing the luxury and quality of a Lexus is based on: A) geographic segmentation B) income segmentation C) ethnic segmentation D) geodemographic segmentation

B) income segmentation

The following are examples of typical marketing communications objectives, except: A) increase market share B) increase the number of products offered C) increase profits D) increase return on investment

B) increase the number of products offered

) The following are methods of segmenting consumer markets, except: A) demographics B) industry size C) psychographics D) generations

B) industry size

Many professional sports teams have started targeting ads to females because women: A) now watch sports as often as men B) influence the spending habits of men C) are now the primary fan of most sports D) have increased earning power

B) influence the spending habits of men

The following are types of demographic segmentation variables, except: A) gender B) lifestyles C) age D) income

B) lifestyles

Which is a model that shows that further advertising and promotion expenditures may result in adverse effects on profits? A) a sales-response function B) a marginal analysis C) average return on investment curve D) promotions opportunity curve

B) marginal analysis

Basing a budget on what other companies are spending on advertising and communication is which method? A) percentage of sales B) meet the competition C) what we can afford D) payout planning

B) meet the competition

If Burger King's advertising manager decides to match McDonald's dollar-for-dollar in advertising expenditures, which type of advertising budget is being used? A) objective and task B) meet the competition C) what we can afford D) the percentage of share method

B) meet the competition

Which method of developing marketing communications budget is often used in highly, competitive markets where rivalries between competitors are intense? A) percentage of sales B) meet the competition C) what we can afford D) objective and task

B) meet the competition

The largest amount of spending for alternative advertising in the United States focuses on: A) brand entertainment B) online/mobile C) interactive marketing D) social media

B) online/mobile

Product positioning is the: A) level of brand equity faced by a company or brand B) perception consumers have of a company or brand relative to competitors C) number and level of products offered by a company D) perception consumers have of a company or brand relative to other brands being offered by the company

B) perception consumers have of a company or brand relative to competitors

Wal-Mart uses the tagline "save money, live better." This is an example of product positioning by: A) product user B) price-quality relationship C) use or application D) cultural symbol

B) price-quality relationship

When Mercedes Benz promises the finest luxury ride in an automobile, the positioning approach being used is: A) competitors B) price-quality relationship C) use or application D) cultural symbol

B) price-quality relationship

Morning Star has developed an entire line of non-meat breakfast foods and markets them as a substitute for breakfast meats. This is an example of product positioning by: A) product user B) product class C) use or application D) cultural symbol

B) product class

The product positioning strategy based on a category or type of product is the positioning approach of: A) product user B) product class C) use or application

B) product class

Approximately 40 percent of monies spent on alternative media in the United States was in the category called online/mobile. This category consists of the following, except: A) lead generation B) product placement C) online display and video ads D) mobile phone ads

B) product placement

When the Edgewater Hotel & Resort develops a marketing campaign aimed to attract business customers, institutions, and organizations that need a location to hold 2 to 4 day conferences, the type of segmentation approach being used was: A) demographics B) product usage C) type of business D) customer value

B) product usage

Males who buy items because they reflect "masculinity" may be targeted using which segmentation approach? A) geographic B) psychographic C) generational D) product use

B) psychographic

Marketing to individuals who are successful, sophisticated, receptive to new technologies, enjoy sports, and are liberal in their political views is an example of which type of segmentation? A) demographic B) psychographic C) generations D) geodemographic

B) psychographic

The VALS typology is based on which type of segmentation? A) demographic B) psychographic C) generations D) geodemographic

B) psychographic

The following are methods of segmenting business-to-business markets, except: A) product usage B) psychographics C) geographic location D) customer value

B) psychographics

The following are methods of determining marketing communications budgets, except: A) percentage of sales B) sales approximation C) meet the competition D) what we can afford

B) sales approximation

A food producer that distinguishes between individually owned grocery stores and major retailers such as Target, the segmentation approach being used is: A) industry B) size C) geographic D) usage

B) size

In terms of media expenditures, the fastest growing media outlet is: A) television B) the Internet C) outdoor advertising D) network TV

B) the internet

The early effects of an advertising campaign may be minimal, but over time gain momentum. This phenomenon is called: A) diminishing returns B) threshold effects C) the sales-response curve D) carryover effect

B) threshold effects

When BMW Motorcycles first began targeting some advertisements toward females, the impact was minimal at first, but after some time passed began to have an impact on inquiries by females and later on sales revenue. This illustrates the concept of: A) impact of communication goals on sales revenues B) threshold effects C) sales-response function curve D) carryover effect

B) threshold effects

In examining customers during the IMC planning context analysis, the reason for studying former customers is to: A) determine which customers a firm should seek B) understand why they defected C) determine how to improve the firm's product or service D) determine which target group has the highest potential

B) understand why they defected

An auto parts supplier divides repair shops into those with the lowest, medium, and highest potential levels of sales and profits, which means the segmentation approach being used is: A) industry B) geographic C) customer value D) usage

C)

Stopping an ad which appears to be funny in one global culture but offensive in another is probably performed by: A) a creative B) a bilingual C) a cultural assimilator D) the local government

C) a cultural assimilator

African Americans, Hispanics, and Asian American ethnic groups tend to: A) be less brand loyal than Asian Americans B) put less value on quality than Caucasians C) be more brand loyal than Caucasians D) be primarily concerned with price

C) be more brand loyal than caucasians

The starting point that is studied in relation to the degree of change following a promotional campaign is called a: A) post-hoc analysis B) marginal analysis C) benchmark measure D) standardized measure

C) benchmark measure

Targeting people who buy vitamins to improve their health is an example of which type of segmentation? A) demographic B) geographic C) benefit D) geodemographic

C) benefit

Targeting people who wish to improve their sex lives using herbs and supplements is an example of which type of segmentation? A) demographic B) geographic C) benefit D) geodemographic

C) benefit

A market segmentation approach that focuses on the benefits of the product rather than on the type of customers is called: A) demographic segmentation B) psychographic segmentation C) benefit segmentation D) usage segmentation

C) benefit segmentation

A communications budget is based on: A) communication objectives B) marketing objectives C) both communication and marketing objectives D) a targeted level of return on investment

C) both communication and marketing objectives

Automobile manufacturer ads comprise about 15 percent of all magazine advertising revenue. One reason auto manufacturers spend so much on advertising is that consumers do not purchase vehicles on a regular basis. When they do make decisions to purchase new cars, the auto companies want to make sure consumers remember the right brand. This illustrates the concept of: A) decay effects B) wear out effects C) carryover effects D) threshold effects

C) carryover effects

When consumers begin to forget a brand name because advertising messages have stopped, it is a sign of: A) a sales-response curve B) wear out effects C) decay effects D) carryover effects

C) decay effects

Analysis of buying patterns by gender is an example of segmentation by: A) psychographics B) generations C) demographics D) usage

C) demographics

Level of education is an example of segmentation by: A) psychographics B) generations C) demographics D) geodemographics

C) demographics

The following are methods of segmenting consumer markets, except: A) geographic B) geodemographics C) distribution channel D) benefits

C) distribution channel

) The following would be examples of marketing objectives, except: A) increase market share B) meet a targeted return on investment C) enhance brand image D) increase sales volume

C) enhance brand image

In examining the IMC planning context, the following customers are analyzed, except: A) current customers B) potential new customers C) foreign customers D) competitors' customers

C) foreign customers

Which method of segmenting markets is based on the idea that people experience significant external events during their late adolescence and early adulthood that impact their social values, attitudes, and preferences? A) demographic B) psychographic C) generations D) geodemographics

C) generations

Applied Microbiology used which method to segment the business market by combining geographic area data for dairy farmers with demographic and psychographic information? A) product usage B) NAICS/SIC code C) geodemographics D) size of business

C) geodemographics

When Skechers targets California with a special advertising and promotional campaign, which type of segmentation is being used? A) psychographics B) demographics C) geographic area D) geodemographics

C) geographic area

Using segmentation by size, which type of organization would be most likely to be contacted by a field sales person visiting the organization's place of business? A) small size B) medium size C) large size D) governmental

C) large size

A set of businesses or groups of individual consumers with distinct characteristics is a: A) differentiated group B) production department C) market segment D) manufacturing system

C) market segment

72) The primary reason for the success of PetSmart may be that the company has: A) invested in pet hotels, which is a rapid growing market B) expanded their retail operations C) modified the products and services they sell to match the changing trends D) multiple brands of products for pet owners

C) modified the products and services they sell to match the changing trends

Which method of developing a marketing communications budget establishes a ratio of advertising dollars to sales or market share then reduces the percentage as sales build and the product obtains market share? A) arbitrary allocation B) meet-the-competition C) payout planning D) quantitative models

C) payout planning

Which method of developing a marketing communications budget is used when the marketing budget is reduced as the brand reaches the point that additional dollars invested in communications yields diminishing returns? A) percentage of sales B) objective and task C) payout planning D) quantitative methods

C) payout planning

The primary objective of the meet-the-competition method for developing a marketing communications budget is to: A) match the communication budget with sales B) ensure marketing dollars are invested where it is most needed C) prevent the loss of market share D) ensure marketing dollars are allocated appropriately

C) prevent the loss of market share

Geodemographic segmentation combines all of the following, except: A) census demographic information B) geographic information C) product usage information D) psychographic information

C) product usage information

Attitudes, interests, and opinions are reflected in: A) demographic market segments B) geographic market segments C) psychographic market segments D) product differentiation programs

C) psychographic market segments

The following are methods of determining marketing communications budgets, except: A) objective and task B) payout planning C) sales-response function curve D) quantitative methods

C) sales-response function curve

One of the problems with the percentage of sales budgeting method is: A) deciding on the percentage level B) finding a benchmark figure to use C) the budget tends to change in the opposite direction of what may be needed D) the competition knows how much the company will spend on advertising

C) the budget tends to change in the opposite direction of what may be needed

Mountain Dew's marketing team might learn that the soft drink is considered more hip and trendy than Coke during an analysis of: A) primary data B) market segments C) the company or product's position D) secondary data

C) the company or product's position

As consumers see advertisements over time they become more likely to recall a message and purchase a product. This demonstrates: A) diminishing returns B) decay effects C) threshold effects D) purchase simulation

C) threshold effects

Successful ethnic marketing requires: A) hiring ethnically-owned marketing and advertising agencies B) translating English speaking ads into Spanish or native language of the ethnic group C) understanding the various ethnic groups and writing marketing communications that speak to their specific values and cultures D) using ethnically-owned media outlets

C) understanding the various ethnic groups and writing marketing communications that speak to their specific values and cultures

The product positioning strategy based on how a product is used is the positioning approach of: A) product attributes B) competitors C) use or application D) price-quality relationship

C) use or application

When consumers begin to think of an advertisement as old or stale, the concept being illustrated is: A) a sales-response curve B) wear out effects C) decay effects D) carryover effects

C) wear out effects

Managers who do not recognize the benefits of marketing may be most inclined to use which method of communications budgeting? A) percentage of sales B) meet the competition C) what we can afford D) payout planning

C) what we can afford

Newer and smaller companies are inclined to use which method when developing marketing communications budgets? A) percentage of sales B) meet the competition C) what we can afford D) payout planning

C) what we can afford

In using the payout planning method of developing a marketing communications budget, the marketing budget would be reduced: A) at the product's introduction, then increased when brand acceptance occurs B) when the brand becomes the market leader C) when the brand reaches the point at which additional dollars invested in communications yields diminishing returns D) when the market becomes saturated

C) when the brand reaches the point at which additional dollars invested in communications yields diminishing returns

In terms of market segmentation, the usage segmentation approach offers each of the following advantages, except: A) a meaningful classification scheme based on the actual behavior of customers B) ability to reduce a large volume of customer data to a few, concise clusters C) ability to measure the growth of each cluster and the migration of customers from one cluster to another D) ability to compare a firm's customers with customers from competing firms

D) ability to compare a firm's customers with customers from competing firms

The following are possible product positioning strategies, except: A) attributes B) competitors C) use or application D) by-products

D) by-products

Manufacturers of appliances, such as GE and Whirlpool, advertise on a continuous basis because appliances are purchased infrequently and only when they are needed. To ensure the brand name is remembered when the need arises, these manufacturers rely on: A) threshold effects B) sales-response function curve C) wear out effects D) carryover effects

D) carryover effects

Which concept explains that consumers may recall an ad from the past and make a purchase because they have seen the ad several times? A) a sales-response curve B) a marginal analysis C) decay effects D) carryover effects

D) carryover effects

A local video rental store looking to increase customer traffic in the summer would be an example of a: A) target market analysis B) product positioning C) communications analysis D) communications objective

D) communications objective

In the IMC planning process, a review of ________ allows the marketing team to identify potential target markets and positioning strategies. A) the communications budget B) the marketing plan C) the firm's communication objectives D) the company's context

D) company context

Stetson cologne has positioned its brand using the tough, cowboy image. This is an example of product positioning by: A) product user B) product class C) use or application D) cultural symbol

D) cultural symbol

When a company sorts prospects into those with the lowest, medium, and highest profit potential, the segmentation approach being used is: A) industry B) size C) usage D) customer value

D) customer value

If a company sends direct mail to only the zip codes of communities that match the firm's best customer profiles, it is using which type of segmentation? A) demographic B) psychographic C) geographic D) geodemographic

D) geodemographic

Market segments should be internally: A) heterogeneous B) identifiable C) unique D) homogeneous

D) homogenous

The primary reason companies develop a communications budget using the percentage of sales method is: A) it tends to be more accurate than the other methods B) the budget tends to change with sales, so as sales increase there is more money available for communications C) money is available for unique marketing opportunities that arise D) it is simple to prepare

D) it is simple to prepare

If a company's leaders reject a communications budgeting method because it would take too long to prepare, odds are the budgeting method is: A) percentage of sales B) meet the competition C) what we can afford D) objective and task

D) objective and task

Which method for developing a marketing communications budget links dollars to defined goals? A) percentage of sales B) meet the competition C) what we can afford D) objective and task

D) objective and task

The product positioning strategy based on value or prestige is the positioning approach of: A) product attributes B) competitors C) use or application D) price-quality relationship

D) price-quality relationship

Celestial Seasonings focuses on the healthy aspect of its green tea. This is an example of product positioning by: A) product user B) product class C) use or application D) product attribute

D) product attribute?????

Marketing to companies that use the same good or service, but in different ways is segmentation based on: A) the NAICS code B) demographics C) geographic location D) product usage

D) product usage

Which method of developing a marketing communications budget uses computer simulations to model the relationship between advertising and marketing communications and sales, profits, and other factors? A) meet the competition B) objective and task C) payout planning D) quantitative models

D) quantitative models

When Reynolds Protection Agency sells the same service to three different types of organizations, the segmentation approach being used is: A) industry B) size C) geographic D) usage

D) usage

A firm that has a database containing consumer purchasing histories and uses the information to create market segments is using: A) demographic segmentation B) psychographic segmentation C) benefit segmentation D) usage segmentation

D) usage segmentation