Question 1

Sales-oriented objectives are appropriate for:

Accepted Answer

A)  all Internet marketing
B)  retail advertising promoting a sale or special event
C)  products that have been introduced in a highly volatile market
D)  any advertising campaign aimed at maintaining brand awareness
E)  all of the aboveF) A) and E)
G) C) and D)

Question 2

In 2007,Cingular acquired AT&T but renamed itself using AT&T.The choice of the name reflected consumers' awareness and recognition of an established brand.To determine how successful it was in making consumers aware of its name change and its new positioning strategy,the firm could have used:

Accepted Answer

A)  zero-based communications planning
B)  a benchmark orientation
C)  DAGMAR
D)  the carryover effect
E)  the recency effectF) A) and C)
G) All of the above C

Question 3

The carryover effect:

Accepted Answer

A)  has no impact on sales objectives
B)  has no effect on the relationship between advertising and sales
C)  encourages the use of nonspecific objectives
D)  is particularly apparent with mature,low-priced,and frequently purchased products
E)  is accurately described by all of the aboveF) A) and E)
G) B) and D) D

Question 4

A stereo speaker manufacturer developed advertising objectives,which stated that the goal of the company's new ad campaign is "To communicate our ability to create an environment of total audio ambiance in the home." This statement could serve as an example of a:

Accepted Answer

A)  target audience delineation
B)  benchmark measure
C)  communications task
D)  sales objective
E)  short-term promotional objectiveF) C) and D)
G) A) and B)

Question 5

Which of the following statements about communications objectives is true?

Accepted Answer

A)  When setting objectives using the communications effect pyramid,the last step reached is trial.
B)  Sales goal cannot be translated into communications objectives.
C)  Marketing and advertising managers do not rely on experience and intuition when setting communications goals.
D)  Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals.
E)  All of the above statements about communications objectives are true.F) A) and B)
G) C) and D)

Question 6

All of the following are considered top-down approaches to determining budgets EXCEPT:

Accepted Answer

A)  the objective and task method
B)  the affordable method
C)  the percentage of sales method
D)  arbitrary allocation
E)  the competitive parity methodF) D) and E)
G) None of the above

Question 7

Many marketing managers prefer sales-oriented objectives for advertising because they believe:

Accepted Answer

A)  the reason a company spends money on advertising and promotion is to sell its products or service
B)  money spent on advertising and promotion should show measurable results
C)  sales-oriented objectives help get everyone involved in the promotional program to think about how advertising and promotion will influence sales
D)  objectives should be based on the achievement of sales results
E)  all of the above are trueF) A) and B)
G) A) and C)

Question 8

Which of the following is an organizational characteristic that can have a direct effect on the budget allocation process?

Accepted Answer

A)  approval and negotiation channels
B)  pressure from senior managers to arrive at the optimal budget
C)  power and politics in the organizational hierarchy
D)  whether the organization is centralized or decentralized
E)  all of the aboveF) C) and E)
G) B) and D)

Question 9

Determining a target market's present level of awareness,knowledge and liking toward a product often requires the taking of _____ measures.

Accepted Answer

A)  benchmark
B)  sales interval
C)  qualitative awareness
D)  quantitative awareness
E)  reach and frequencyF) C) and E)
G) A) and B)

Question 10

Arden's task is to determine what was accomplished by his company's advertising and promotional program for a vinyl siding cleanser.You are able to tell him that:

Accepted Answer

A)  his task is impossible
B)  all he needs is sales results to determine what the program accomplished
C)  his task is easier if specific communications objectives were set
D)  all he needs is post-promotional consumer awareness levels to determine what the program accomplished
E)  this is the easiest task his company has ever asked him to perform if the company did not set specific objectivesF) A) and B)
G) C) and E)

Question 11

Which of the following is NOT a top-down approach to budget setting?

Accepted Answer

A)  the affordable method
B)  percentage of sales
C)  competitive parity
D)  return on investment
E)  payout planningF) None of the above
G) B) and D) E

Question 12

To many marketing managers,the only goal of their company's advertising and promotional program is to:

Accepted Answer

A)  position the company and its brands
B)  create a positive corporate image
C)  generate sales
D)  create memorable advertising
E)  create awareness of the companyF) B) and C)
G) C) and D)

Question 13

As a result of economies of scale,smaller advertisers:

Accepted Answer

A)  are likely to enjoy more favorable advertising time and space than large advertisers
B)  have declining average costs of production
C)  get higher advertising rates than large advertisers
D)  can maintain advertising expenditure shares that are smaller than their market shares
E)  benefit from all of the aboveF) A) and E)
G) A) and D)

Question 14

Which of the following is NOT given as a realistic reason for setting specific objectives for an integrated marketing communications program?

Accepted Answer

A)  Specific objectives serve as communication devices and facilitate coordination of various groups working on the campaign.
B)  Specific objectives serve as a guide for planning and decision making.
C)  Specific objectives provide a benchmark against which success or failure of a campaign can be measured.
D)  Specific objectives help specify a method and criteria for assessing how well the promotional program is working.
E)  Specific objectives provide specific ideas on how to develop more creative and effective advertising.F) D) and E)
G) None of the above

Question 15

Well known brand name products do not receive incremental advantages from increased dollar expenditures on advertising.Once the ad hits the market,subsequent budget increases result in little or no incremental gains.This might best be explained by:

Accepted Answer

A)  arbitrary allocation
B)  the objective and task method
C)  competitive parity
D)  an S-shaped response
E)  rapidly diminishing returnsF) C) and D)
G) A) and E)

Question 16

Marketing goals defined in terms of sales,profits or market share increases are:

Accepted Answer

A)  situational response objectives
B)  usually not appropriate for promotional objectives
C)  integrated marketing communications objectives
D)  relationship marketing objectives
E)  internal marketing goalsF) A) and B)
G) B) and D)

Question 17

In marginal analysis all of the following should be considered EXCEPT:

Accepted Answer

A)  sales
B)  fixed costs of advertising
C)  advertising expenditures and other variable costs
D)  gross margin
E)  net worthF) B) and D)
G) A) and B)

Question 18

Advocates of communication-based objectives for advertising propose using _____ as a basis for setting these objectives.

Accepted Answer

A)  sales
B)  market share
C)  stages of a hierarchical response model
D)  carry-over effects
E)  market behaviorF) A) and B)
G) B) and E)

Question 19

The most commonly utilized method of budget determination by large firms is:

Accepted Answer

A)  competitive parity
B)  objective and task
C)  percentage of sales
D)  arbitrary allocation
E)  the affordable methodF) C) and E)
G) A) and D)

Question 20

Which of the following is NOT a factor that typically influences the budget allocation decision?

Accepted Answer

A)  client/agency policies
B)  market size
C)  market potential
D)  the ad agency's organizational structure
E)  economies of scale in advertisingF) B) and C)
G) B) and E)

Exam 7: Establishing Objectives and Budgeting for the Promotional Program

Sales-oriented objectives are appropriate for:

Correct AnswerverifiedShow Answer

In 2007,Cingular acquired AT&T but renamed itself using AT&T.The choice of the name reflected consumers' awareness and recognition of an established brand.To determine how successful it was in making consumers aware of its name change and its new positioning strategy,the firm could have used:

Correct AnswerverifiedC

The carryover effect:

Correct AnswerverifiedD

A stereo speaker manufacturer developed advertising objectives,which stated that the goal of the company's new ad campaign is "To communicate our ability to create an environment of total audio ambiance in the home." This statement could serve as an example of a:

Correct AnswerverifiedShow Answer

Which of the following statements about communications objectives is true?

Correct AnswerverifiedShow Answer

All of the following are considered top-down approaches to determining budgets EXCEPT:

Correct AnswerverifiedShow Answer

Many marketing managers prefer sales-oriented objectives for advertising because they believe:

Correct AnswerverifiedShow Answer

Which of the following is an organizational characteristic that can have a direct effect on the budget allocation process?

Correct AnswerverifiedShow Answer

Determining a target market's present level of awareness,knowledge and liking toward a product often requires the taking of _____ measures.

Correct AnswerverifiedShow Answer

Arden's task is to determine what was accomplished by his company's advertising and promotional program for a vinyl siding cleanser.You are able to tell him that:

Correct AnswerverifiedShow Answer

Which of the following is NOT a top-down approach to budget setting?

Correct AnswerverifiedE

To many marketing managers,the only goal of their company's advertising and promotional program is to:

Correct AnswerverifiedShow Answer

As a result of economies of scale,smaller advertisers:

Correct AnswerverifiedShow Answer

Which of the following is NOT given as a realistic reason for setting specific objectives for an integrated marketing communications program?

Correct AnswerverifiedShow Answer

Well known brand name products do not receive incremental advantages from increased dollar expenditures on advertising.Once the ad hits the market,subsequent budget increases result in little or no incremental gains.This might best be explained by:

Correct AnswerverifiedShow Answer

Marketing goals defined in terms of sales,profits or market share increases are:

Correct AnswerverifiedShow Answer

In marginal analysis all of the following should be considered EXCEPT:

Correct AnswerverifiedShow Answer

Advocates of communication-based objectives for advertising propose using _____ as a basis for setting these objectives.

Correct AnswerverifiedShow Answer

The most commonly utilized method of budget determination by large firms is:

Correct AnswerverifiedShow Answer

Which of the following is NOT a factor that typically influences the budget allocation decision?

Correct AnswerverifiedShow Answer

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E

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