BA 370 Exam #3 Chapter 18

When Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message, she was told the reach was 40, the frequency was 4, and the competitive parity was 10. The gross rating points for her firm's campaign were A. 160. B. 1600. C. 400. D. 40. E. The answer cannot be determined from this information.

A (. 160.)

The Salvation Army runs a campaign over the Christmas holidays called the Mobile Bell Ringer. Volunteers send text messages to their friends' cell phones asking them to donate. Which type of marketing communication does this represent? A. Mobile marketing B. Public relations C. Personal selling D. Sales promotions E. Advertising

A (. Mobile marketing)

Which of the following is being used by a store owner who sends out a text message to all of her preferred customers announcing the arrival of this season's new clothing? A. Mobile marketing B. Social marketing C. Personal selling D. Sales promotions E. Advertising

A (. Mobile marketing)

Red Bull sends out student brand managers to distribute free samples to their peers. What form of marketing communication is this? A. Sales promotion B. Direct marketing C. Public relations D. Mobile marketing E. Advertising

A (. Sales promotion)

Sally could recall the brand of toothpaste she used only when a marketing researcher mentioned the brand. This is known as A. aided recall. B. unaided recall. C. top-of-mind awareness. D. brand preference. E. brand indifference.

A (. aided recall.)

In the AIDA model, the "think" stage is the ________________ stage. A. Awareness B. Action C. Interest D. Desire E. Intention

A (. awareness)

One difficulty associated with using advertising as part of a marketer's IMC efforts is A. breaking through the clutter of other messages targeted for the same audience. B. it is more expensive than personal selling. C. it only works when communicating to the most uninformed consumers. D. government regulations have significantly decreased allowable advertising frequencies. E. all of these are correct.

A (. breaking through the clutter of other messages targeted for the same audience.)

Personal selling is an especially important part of IMC in A. business-to-business markets. B. cause-related marketing. C. event sponsorships. D. stealth marketing. E. Web tracking.

A (. business-to-business markets.)

In the IMC process, noise can occur as a result of lack of message clarity, a poor choice of medium, or A. competing messages. B. an extended feedback loop. C. indirect encoding. D. inhibited decoding. E. excessive reach.

A (. competing messages)

A _________________ can be used to create positive word of mouth, help customers form a community, and develop long-term relationships between customers and the company. A. corporate blog B. faxed newsletter C. Super Bowl ad D. full-page ad in selected newspapers E. public relations campaign

A (. corporate blog)

If you ever watched a television commercial and at the end of the message wondered what they were promoting, you may have had trouble _____________ the IMC message. A. decoding B. pre-testing C. precoding D. encoding E. tracking

A (. decoding)

_______________ refers to the process by which the receiver interprets the sender's message. A. Decoding B. Stealth marketing C. Precoding D. Encoding E. Tracking

A (. decoding)

The IMC communication process includes all of the following EXCEPT A. evaluation. B. the sender. C. the transmitter. D. the communication channel. E. the receiver.

A (. evaluation)

An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results for this ad, six would be the _____ for this telecast. A. frequency B. reach C. gross rating points D. ROI E. click-through rate

A (. frequency)

Compared to mass media advertising, a key advantage of direct marketing is A. it allows for personalization of the message. B. it reaches a larger audience. C. it involves face-to-face contact. D. it uses the rule-of-thumb budgeting method. E. it is used almost exclusively for B2B marketing.

A (. it allows for personalization of the message.)

If marketing communications are effective, they will A. result in purchases by some consumers receiving the communications. B. offset any negative publicity the firm may have received. C. minimize the number of communication channels used by the firm. D. generate interest in the product in over half the consumers who receive the communications. E. include all steps of the AIDA model with equal weighting to each step.

A (. result in purchases by some consumers receiving the communications)

Public relations is the component of IMC that A. supports other promotional efforts by generating "free" media attention. B. has received the greatest increase in spending. C. converts mass media advertising into direct marketing. D. most effectively uses IMC encoding. E. generates the most gross rating points.

A (. supports other promotional efforts by generating "free" media attention.)

If you send an email and include a link, you can track how many people took the desired action of clicking on the link. This is known as A. the click-through rate. B. impressions. C. frequency. D. gross rating points. E. reach.

A (. the click-through rate.)

The sender of an IMC message hopes the receivers are A. the people for whom the message was originally intended. B. the people with the most buying power. C. consumers who are capable of discerning value. D. consumers who have purchased the firm's products in the past. E. the market segment with the most gross rating points.

A (. the people for whom the message was originally intended)

The basic goal of integrated marketing communications is to A. communicate the value proposition to the target market. B. create desire. C. manipulate consumers. D. outspend competitors. E. tell the world about your company.

A (communicate the value proposition to the target market)

In the AIDA model, the "do" stage is the ________________ stage. A. Awareness B. Action C. Interest D. Desire E. Intentions

B (. action)

The goals of IMC need to A. expand as the advertising budget expands. B. be explicit and measurable. C. be encoded before they can be decoded. D. include both the noise effect and the transmitter effect. E. be separate from budget.

B (. be explicit and measurable.)

In recent years, the component of IMC that has received the greatest increase in spending is A. media advertising. B. direct marketing. C. public relations. D. sales promotions. E. publicity.

B (. direct marketing.)

Marketers often use focus groups to learn how consumers interpret their IMC messages. Experience has shown that A. effective branding requires marketers to encode messages the same way for each market segment. B. each receiver decodes IMC messages in his or her own way. C. action is taken before desire and interest are determined. D. marketers can almost always use the same message for all audiences. E. messages are decoded in the manner intended by the encoder.

B (. each receiver decodes IMC messages in his or her own way)

Ryan is debating how to allocate the IMC budget for his new ski equipment store. He knows having knowledgeable salespeople in his store can simplify buyers' purchase decisions. He should also consider that, compared to other IMC alternatives, personal selling is A. easy. B. expensive. C. ineffective. D. overrated. E. simple.

B (. expensive)

After creating awareness that the firm's products or services exist, the next goal of integrated marketing communications is to A. generate consumer action. B. increase the level of interest among consumers. C. determine the level of desire needed to sustain action. D. gain the attention of the consumer. E. create intentions to purchase the product.

B (. increase the level of interest among consumers)

Lamar is assessing the long-term effectiveness of his firm's IMC efforts. He will probably analyze the firm's success in A. expanding customer loyalty by closing the feedback loop. B. increasing market share, sales, and customer loyalty. C. increasing inquiries, awareness, and trial of her firm's services. D. shifting customers to rule-of-thumb budgeting. E. increasing the lagged effect.

B (. increasing market share, sales, and customer loyalty.)

One of the difficulties in measuring the effectiveness of IMC efforts is the ______________, where consumers do not act immediately after receiving a marketing communication. A. decoding decomposition effect B. lagged effect C. noncommittal affect D. viral effect E. click-through delay

B (. lagged effect)

Firms can use _____________ to bring customers together to share experiences around the products. A. surveys B. social media C. consumer outlets D. brand associations E. public relations

B (. social media)

Integrated marketing communications include all of the following EXCEPT A. advertising. B. supply chain management. C. direct marketing. D. public relations. E. sales promotion.

B (. supply chain management)

To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To do so, they need to know the number of clicks and A. the number of destinations. B. the number of impressions. C. the cost per click. D. how much time consumers spend viewing the ad or page. E. the total number of clicks recorded by the industry.

B (. the number of impressions.)

The IMC communication process begins with ________, who must be clearly identified. A. the integrator B. the sender C. the transmitter D. the communication channel E. the receiver

B (. the sender)

Which of the following is NOT one of the steps in the AIDA model? A. Awareness B. Intention C. Action D. Desire E. Interest

B (Intention)

Especially for marketers with new products or services, IMC is needed because A. consumers need to know all about the features of new products before they make a purchase decision. B. consumers are unlikely to buy products they are not aware of. C. it is impossible for products to sell themselves through word of mouth communication. D. pricing decisions cannot be made without IMC. E. new products and services need to be integrated into the supply chain value proposition.

B (consumers are unlikely to buy products they are not aware of)

Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMC budget. He receives offers from a variety of advertising media, spends money on his firm's public relations efforts, and is considering electronic media alternatives. Carl recognizes that each IMC alternative A. will stand on its own. B. is part of the whole. C. is part of noncommercial free speech. D. is less important than stealth marketing. E. is dictated by the nature of the supply chain.

B (is part of the whole)

In the AIDA model, A. advertising leads to interest, which hopefully leads to desire and then, action. B. awareness leads to integration, which hopefully leads to desire and then, action. C. awareness leads to interest, which hopefully leads to desire and then, action. D. awareness leads to interest, which hopefully leads to desire and then, attention. E. awareness leads to interest, which hopefully leads to determination and then, action.

C ( . awareness leads to interest, which hopefully leads to desire and then, action)

Once the marketing communication has captured the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from A. "I want it" to "I like it." B. action to desire. C. "I like it" to "I want it." D. awareness to action. E. feeling to thinking.

C (. "I like it" to "I want it.")

Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and A. supply chain effectiveness. B. enhanced decoding processes. C. a consumer's purchase. D. the level of noise in the IMC channel. E. the reach/frequency ratio.

C (. a consumer's purchase)

Advertising agencies often provide the IMC function of comparing their customer's target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with A. competing messages. B. lack of clarity in the message. C. a poor choice of medium. D. an extended feedback loop. E. a flaw in the medium.

C (. a poor choice of medium)

Cheryl asked Nadia to help her buy some aftershave for her boyfriend. Nadia was going through a list of different brand names, when Cheryl stopped her and said, "I recognize that one." Marketers call this A. selective recall. B. free association. C. aided recall. D. recall mapping. E. top-of-mind awareness.

C (. aided recall)

_______________ refers to a potential customer's ability to recall that the brand name is a particular type of retailer, product, or service. A. Product familiarity B. Brand association C. Brand awareness D. Marketing recall E. Cognitive association

C (. brand awareness)

In the movie Field of Dreams, one of the memorable phrases is, "If you build it, he will come." The AIDA model would suggest that after marketers "build" a product or service and create awareness among consumers, they need to A. determine the level of desire needed to sustain action. B. promote sufficiently to gain global attention. C. create interest among consumers, persuading them to investigate further. D. offer discounts to increase purchase intentions. E. take steps to encourage immediate purchase.

C (. create interest among consumers, persuading them to investigate further)

Naomi is IMC manager for a chain of regional income tax service providers. Franchisees pay a percentage of their revenue to an IMC account allocated to her. As she establishes the short-term goals for her firm's IMC efforts, her goals are likely to include A. expanding customer loyalty by closing the feedback loop. B. increasing market share, sales, and customer loyalty. C. increasing inquiries, awareness, and trial of her firm's services. D. shifting customers to rule-of-thumb budgeting. E. increasing the lagged effect.

C (. increasing inquiries, awareness, and trial of her firm's services.)

Julie is developing a budget for her firm's IMC program. First she sets objectives. Then she chooses media, and finally she determines the cost for each product to be promoted. Julie is using the ___________________ method of establishing an IMC budget. A. reach and frequency B. track and decode C. objective-and-task D. rule-of-thumb E. sender-receiver

C (. objective-and-task)

Sales promotions include all of the following EXCEPT A. coupons. B. rebates. C. online ads. D. point-of-purchase displays. E. free samples.

C (. online ads)

Jim was asked to determine the ROI for a particular advertising effort. To do so, he needs to know A. the internal rate of return and the projected expenditure level. B. the total number of units sold and the total cost of sales. C. sales revenue and advertising cost. D. gross margin and advertising cost. E. the advertising cost and the total communications expenditures.

C (. sales revenue and advertising cost.)

The right communication channel to use in IMC is A. the traditional channel used in that particular retail sector. B. network advertising, local newspapers, and regional radio stations. C. the one that will connect to the desired recipients. D. the one with the best encoding capabilities. E. the one that maximizes decoding difficulty.

C (. the one that will connect to the desired recipients)

The highest level of awareness occurs when customers mention a specific brand name when asked about a product or service. Marketers call this A. the primacy effect. B. aided recall. C. top-of-mind awareness. D. category dominance. E. elevated awareness.

C (. top-of-mind awareness)

In the IMC communication process, the ____________ encodes the marketing communication message. A. instructor B. sender C. transmitter D. communication channel E. receiver

C (. transmitter)

Integrated marketing communications represents the _________________ P in the four Ps of a firm's marketing mix. A. Pricing B. Product C. Promotion D. Place E. Partnering

C (Promotion)

The three elements of any IMC strategy are the consumer, the channels, and A. the receiver. B. the product. C. evaluation of the results. D. the company. E. event sponsorship.

C (evaluation of the results)

Sales data, complaints, compliments, and redemption rates for coupons and rebates are types of ________________ marketers use to assess the effectiveness of their IMC efforts. A. decoding B. pre-testing C. feedback D. simulations E. encoding

C (feedback)

The sender of an integrated marketing communication A. must work with the advertising specialists to ensure all recipients interpret the message accurately. B. can assess the manner in which receivers interpret the message through gross rating points. C. has little control over what meaning any individual receiver will take from the message. D. controls the meaning all receivers take from the message. E. should attempt to control how the message is received.

C (has little control over what meaning any individual receiver will take from the message)

___________ means converting the sender's ideas into a message, which could be verbal, visual, or both. A. Decoding B. Integrated marketing communications C. Precoding D. Encoding E. Tracking

D (. Encoding)

Which statement best describes personal selling? A. It involves a larger audience than advertising. B. It is primarily indirect communication. C. It is primarily informational communication, as compared to advertising, which involves persuasive communication. D. It is the two-way flow of communication between a buyer and a seller. E. It involves encoding while advertising involves only decoding.

D (. It is the two-way flow of communication between a buyer and a seller.)

. National manufacturers and retailers often pay a service provider to monitor television ads around the country, in order to ensure that their ads are shown in their entirety during the time frames that were purchased. This service provider is monitoring for IMC noise problems associated with A. competing messages. B. lack of clarity in the message. C. a poor choice of medium. D. a flaw in the medium. E. an extended feedback loop.

D (. a flaw in the medium)

In the IMC communication process, the ________________ is the medium that carries the message. A. feedback loop B. sender C. transmitter D. communication channel E. receiver

D (. communication channel)

Compared to other IMC alternatives, advertising is extremely effective for A. closing a sale. B. efficient message decoding. C. reducing the potential for noise. D. creating awareness and generating interest in a product. E. repositioning consumers in the AIDA model.

D (. creating awareness and generating interest in a product.)

Even the best marketing communication can be wasted if the sender does not first A. generate consumer action. B. offer testimonials from past consumers. C. determine the level of desire needed to sustain action. D. gain the attention of the consumer. E. stimulate interest among stealth marketing consumers.

D (. gain the attention of the consumer)

A major factor contributing to the growth in the use of direct marketing IMC efforts is A. reduced government regulation of deceptive advertising practices. B. expanded use of personal selling. C. a shift from objective-and-task to rule-of-thumb budgeting. D. increased use of credit and debit cards, and online shopping by consumers. E. the reduction in IMC noise allowing for a decreased lagged effect.

D (. increased use of credit and debit cards, and online shopping by consumers.)

__________________ is any interference in the IMC process. A. Translation B. Looping C. Excessive reach D. Noise E. Feedback

D (. noise)

88. Using prior sales and communication activities to determine the present communication budget describes which method of IMC budgeting? A. reach and frequency B. track and decode C. objective-and-task D. rule-of-thumb E. sender-receiver

D (. rule-of-thumb)

Several years ago, changes in advertising restrictions allowed pharmaceutical companies to begin promoting their products through traditional media. Today, it is common to see ads on television ending with, "Ask your doctor about (our medicine)." In addition to creating awareness about their drugs, the companies are hoping to A. reduce deceptive advertising. B. signal encoding symbols to simplify the feedback loop. C. offer objective-and-task marketing communications. D. stimulate interest, persuading consumers to investigate further. E. promote public interest social responsibility communications.

D (. stimulate interest, persuading consumers to investigate further)

Reaching the right audience with marketing communications is becoming more difficult because A. consumers are bored. B. government regulations are constraining free speech. C. personal selling is becoming less expensive, making it more competitive with advertising. D. the media environment has become more complicated. E. the AIDA model is no longer an accurate representation of how marketing communication works.

D (. the media environment has become more complicated.)

Integrated marketing communications include all of the following EXCEPT A. personal selling. B. advertising. C. public relations. D. supply chain management. E. direct marketing.

D (supply chain management)

The proliferation of new media alternatives has led many firms to shift their promotional budgets from A. publicity to public relations. B. personal selling to advertising. C. integrated marketing communications to disintegrated marketing communications. D. stealth marketing to viral marketing. E. advertising to direct marketing and website development.

E (. advertising to direct marketing and website development.)

In integrated marketing communications, encoding involves A. converting consumers' ideas into value propositions. B. differentiating noncommercial speech from commercial speech. C. converting the decoder into the receiver. D. interpreting click-through rates. E. converting the sender's ideas into a message, which could be verbal, visual, or both.

E (. converting the sender's ideas into a message, which could be verbal, visual, or both.)

Brenda wants to reduce mass media IMC and to increase the use of personalized marketing communication messages. To achieve this goal, Brenda will likely increase her use of A. sales promotions. B. advertising. C. public relations. D. price reductions. E. direct marketing.

E (. direct marketing.)

The increased use of customer databases has enabled marketers to identify and track consumers over time and across purchase situations, and has contributed to the rapid growth in A. media advertising. B. publicity. C. public relations. D. sales promotions. E. direct marketing.

E (. direct marketing.)

When purchasing books on Amazon.com, customers are shown other books and a message saying "Customers who purchased (your book) also purchased..." This is an example of A. mass media advertising. B. publicity. C. public relations. D. sales promotions. E. direct marketing.

E (. direct marketing.)

Betty is assessing the effectiveness of her firm's marketing communications. She knows the ultimate goal is to A. maximize rating points. B. minimize marketing communication expenditures. C. shift encoding into decoding. D. use personal selling to augment public relations. E. drive the receiver to action.

E (. drive the receiver to action)

Most manufacturing and retailing marketers worry constantly about whether or not their IMC efforts are paying off. They assess various forms of ___________ to determine what is working and what is not. A. noise B. pre-testing C. precoding D. encoding E. feedback

E (. feedback)

The _____________ loop allows the receiver to communicate with the sender in the IMC process. A. decoding B. pre-testing C. precoding D. encoding E. feedback

E (. feedback)

Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC message and what percentage of the target audience was exposed to the message. Yolanda is asking for _____________________ data. A. parity and affordability B. sales and promotion C. attitude change D. rule-of-thumb E. frequency and reach

E (. frequency and reach)

The goal of any marketing communication is to A. maximize sales. B. increase public relations click-through rates. C. overwhelm negative publicity with commercial speech. D. replace cause-related marketing with non-cause-related marketing. E. get the right message to the right audience through the right media.

E (. get the right message to the right audience through the right media.)

Though a picture may be worth a thousand words, the most important facet of encoding is A. who draws the picture. B. the self-visualization process. C. not what is received, but rather what is sent. D. the sponsor rather than the receiver. E. not what is sent, but rather what is received.

E (. not what is sent, but rather what is received)

In the IMC communication process, the _____________________ is the person who reads, hears, or sees and processes the message being communicated. A. medium B. sender C. transmitter D. communication channel E. receiver

E (. receiver)

Which of the following is NOT a communication channel used in the IMC process? A. Radio B. Television C. Newspaper D. Internet E. Supply chain

E (. supply chain)

As the number of communication media has increased, the task of understanding how best to reach target customers has A. shifted from creating a value proposition to revising a value proposition. B. increased the use of rule-of-thumb targeting. C. become easier. D. focused on reducing the lagged effect of marketing communications. E. become more complex.

E (become more complex)

Loretta would like to know which, if any, of her firm's IMC efforts are working. She could use all of the following EXCEPT _______________ to provide feedback from her efforts. A. sales data B. complaints C. compliments D. redemption rates for coupons or rebates E. the channel

E (the channel)

. Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboard saying "South of the Border Restaurant and Motel is just 100 miles away." Julia has never heard of South of the Border before. After seeing the sign, she will most likely need additional exposure to the product before deciding whether to stop at South of the Border. This is an example of A. rejection of advertising. B. subliminal advertising. C. product underwhelm. D. IMC strategy. E. the lagged effect.

E (the lagged effect)

t/f "Top-of-mind awareness" is when consumers indicate that they know the brand when the name is presented to them.

F

t/f As the number of communication media has increased, the task of understanding how best to reach target customers has become easier.

F

t/f Because of the goals of IMC are only part of the overall promotional plan, they do not need to be explicit or measurable.

F

t/f Frequency describes the percentage of the target population exposed to a specific marketing communication, such as advertisement, at least once.

F

t/f Gross Rating Points (GRP) measure how often the audience is exposed to a specific marketing communication,

F

t/f If the marketing communication has piqued the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from "I want it" to "I like it."

F

t/f Personal selling can only be successful through the use of print, newspapers, and radio.

F

t/f Public relations is the component of IMC that has received the greatest increase in aggregate spending.

F

t/f The sender of an integrated marketing communication controls the meaning individual receivers take from the message.

F

t/f Though a picture may be worth a thousand words, the most important facet of encoding is not what is received but what is sent.

F

t/f Betty is assessing the effect of her firm's marketing communications. She should remember that the ultimate goal is to drive the receiver to action.

T

t/f Encoding means converting the sender's ideas into a message, which could be verbal, visual, or both.

T

t/f Even the best marketing communication can be wasted if the sender does not gain the attention of the consumer.

T

t/f If there is a difference between the message that is sent and the message that is received, it is probably due to noise.

T

t/f It may take several exposures to marketing communications before consumers are moved to buy.

T

t/f Mobile marketing involves marketing to customers through wireless handheld devices such as mobile phones.

T

t/f Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and a consumer's purchase.

T