Question 1

The objective- and- task method for budgeting requires management to spell out its assumptions about the relationship among dollars spent, exposure levels, trial rates, and regular usage.

Accepted Answer

The objective and task method for budgeting does require management to spell out its assumptions about the relationship among dollars spent, exposure levels, trial rates, and regular usage. This method involves identifying the marketing objectives, determining the tasks needed to achieve those objectives, estimating the costs associated with each task, and then developing a detailed budget that outlines the expected costs of each task.

Question 2

The competitive- parity method of setting the advertising budget supports the widely held view that spending what competitors spend on promotion helps prevent promotion wars.

Accepted Answer

The answer of The competitive- parity method of setting the...

Question 3

Advertising frequency refers to how often a firm repeats its advertising message to reach a target market.

Accepted Answer

Advertising frequency refers to the number of times a firm repeats its advertising message to reach a target market.

Question 4

Since the ultimate goal of all promotional effort is to make a sale, promotional messages must primarily focus on stimulating a purchase.

Accepted Answer

Promotional efforts aim not only to stimulate purchases but also to build brand awareness, create customer loyalty, inform and educate consumers, and create a favorable brand image. Sales stimulation is just one aspect of promotional goals.

Question 5

An advertiser who wishes to schedule ads evenly during a given period will probably follow the continuity approach to scheduling.

Accepted Answer

The continuity approach to scheduling involves scheduling ads evenly over a given period, rather than concentrating them in a short time frame.

Question 6

Word- of- mouth is an important part of the marketing communication system.

Accepted Answer

Word-of-mouth is a highly effective and trusted form of marketing communication that involves people talking about and recommending products or services to others. It can help build brand awareness, increase customer loyalty and ultimately drive sales.

Question 7

Personal selling is especially effective in building up buyers' convictions and actions.

Accepted Answer

Personal selling involves direct interaction between the seller and the buyer, which allows the seller to address any concerns or objections the buyer may have and provide personalized solutions to meet their specific needs. This level of personal attention can help to build trust and credibility with the buyer, ultimately leading to stronger convictions and actions on their part.

Question 8

The affordable method of budgeting for promotion recognises the effect of promotion on sales volume.

Accepted Answer

The affordable method of budgeting for promotion primarily considers what a company can spare or afford to spend on marketing, rather than focusing on the effect of promotion on sales volume.

Question 9

Informative advertising is used heavily when introducing a new product category.

Accepted Answer

Informative advertising is used to educate the audience about a new product category, its features, and benefits. It aims to build awareness and knowledge about the product to encourage potential buyers to try it. Therefore, informative advertising is commonly used when introducing a new product category.

Question 10

Sales promotion tools are usually effective for building long- run brand preference.

Accepted Answer

Sales promotion tools are typically designed for short-term impact, such as boosting sales volume or market share, rather than building long-term brand preference or loyalty.

Question 11

The percentage- of- sales method of setting the promotion budget correctly views sales as the cause of promotion.

Accepted Answer

The percentage-of-sales method actually views sales as the result of promotion, not the cause. It sets the promotion budget based on a fixed percentage of past or forecasted sales, implying that sales drive the budget, not the other way around.

Question 12

When competition becomes more intense, advertisers have learned that persuasive messages are more effective.

Accepted Answer

When there is more competition in a market, consumers have more options to choose from. Therefore, to stand out from competitors, advertisers often create more persuasive and compelling messages to capture consumers' attention and motivate them to make a purchase.

Question 13

According to the AIDA Model, an advertising message must first generate attention if it is to be successful.

Accepted Answer

According to the AIDA model, an advertising message must first generate attention, then interest, desire, and finally, action to be successful.

Question 14

Reach measures the percentage of people in the target market exposed to an ad during a given period of time.

Accepted Answer

This statement is true. Reach is a measure of the percentage of people within the target audience who have been exposed to an advertisement during a specific period of time. It helps advertisers evaluate the potential impact of their ad campaigns and is calculated by dividing the number of people in the target audience reached by the total size of the audience.

Question 15

Robinsons Department Stores of Singapore traditionally stages a major Easter Sale each year. If it organised a harbour "dragon- boat race" to coincide with the sale, such a race would be best described as an event.

Accepted Answer

A harbour dragon-boat race would be an event, and if it coincides with the Easter Sale organized by Robinsons Department Stores of Singapore, it would add to the overall experience for customers and visitors.

Question 16

Sales promotion is used to stimulate immediate purchase reactions by offering attractive incentives for quick action.

Accepted Answer

Sales promotions are designed to create a sense of urgency and offer immediate incentives to encourage consumers to make a purchase.

Question 17

If the Alice Springs Aboriginal Education Group used a slogan "A Mind is a Terrible Thing to Waste," it would be an example of a moral appeal.

Accepted Answer

A moral appeal is a persuasive technique that uses values and principles to influence behavior. In this case, the slogan "A Mind is a Terrible Thing to Waste" appeals to the value of education and the principle that it is a waste not to utilize one's intellect.

Question 18

In the case of print advertisements, research suggests that only about 30 per cent of the exposed audience will recall the main point of the headline.

Accepted Answer

Research suggests that only about 30 per cent of the exposed audience will recall the main point of the headline in print advertisements.

Question 19

Usually the one- sided argument is the preferred approach in sales presentations.

Accepted Answer

The answer of Usually the one- sided argument is the...

Question 20

In business markets, advertising can build awareness and comprehension, generate leads, and legitimise the company and its products.

Accepted Answer

Advertising in business markets can achieve these goals and more, such as enhancing brand reputation and influencing buying behavior.

Quiz 15: Advertising and Public Relations