Question 1

Allocating funds to promotion whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the promotion cost of performing these tasks is referred to as

Accepted Answer

Allocating funds to promotion whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the promotion cost of performing these tasks is referred to as objective and task budgeting. Therefore, option E is the correct answer.

Question 2

Which of the following is the best approach to promotion budgeting?

Accepted Answer

Objective and task budgeting is the best approach to promotion budgeting because it involves setting specific objectives and then determining the tasks that must be performed to achieve those objectives. The costs are then estimated for each task, resulting in a realistic and justifiable promotion budget. This approach ensures that the promotion budget is directly tied to the marketing objectives and helps to optimize the use of available resources.

Question 3

An important factor in developing successful IMC programs is to create a process that facilitates their design and use. A tool used to evaluate a company's current process is the IMC

Accepted Answer

The IMC audit is a tool used to evaluate a company's current process of implementing integrated marketing communications. It involves a systematic approach to evaluating an organization's strengths and weaknesses in its marketing communications efforts, and provides a framework for developing an effective IMC plan. The audit helps companies identify areas of improvement and opportunities for growth, and serves as a baseline for measuring the success of an IMC program.

Question 4

The design of the promotion will play a primary role in determining the message that is communicated to the audience. Successful designs rely in part on

Accepted Answer

The design of a promotion plays a crucial role in communicating the message to the audience, and successful designs require a deep understanding of the consumers' interests and behavior. By obtaining insights regarding the audience, the design can effectively communicate the intended message and achieve the desired objectives. Options A, B, C, and E are not directly related to the design of the promotion.

Question 5

Which of the following statements about executing and evaluating the promotion program is most accurate?

Accepted Answer

This statement is the most accurate because it highlights the importance of not only integrating traditional forms of communication but also monitoring consumer content, responding to inconsistent messages, and answering questions from individual customers. This is crucial for evaluating the effectiveness of the promotion program and making necessary adjustments. The other statements are either inaccurate or incomplete.

Question 6

In terms of a promotional schedule, businesses such as ski resorts, airlines, and professional sports teams are likely to reduce their promotional activity

Accepted Answer

Businesses like ski resorts, airlines, and sports teams typically reduce promotional activity during the off-season when demand is naturally lower, as there is less need to attract customers.

Question 7

Allocation of funds to promotion only after all other budget items are covered is referred to as

Accepted Answer

All-you-can-afford budgeting is the practice of allocating funds to promotion only after all other budget items are covered. This method is considered a less effective budgeting approach compared to other methods, such as percentage of sales budgeting and objective and task budgeting, as it does not consider the impact of promotion on sales and profits.

Question 8

Competitive parity budgeting refers to

Accepted Answer

Competitive parity budgeting refers to matching a competitor's absolute level of spending or the proportion per point of market share. This approach helps to ensure that a company is not overspending or underspending on promotions compared to its competitors.

Question 9

A marketing manager at an auto company computed its promotion-to-sales ratio, that of the major competitor, and the auto industry itself. She found that the company's ratio was 2.8 percent, the competitor's ratio was 4.5 percent, and the auto industry average was 6.7 percent. She then realized

Accepted Answer

The answer of A marketing manager at an auto company...

Question 10

Once the design of each of the promotional program elements is complete, it is important to determine the most effective timing of their use. The ________ describes the order in which each promotional tool is introduced and the frequency of its use during a campaign.

Accepted Answer

The description fits the concept of a promotion schedule, which outlines the timing and frequency of each promotional tool during a campaign. The other options (perceptual map, efficiency matrix, sensitivity analysis, promotion-to-sales ratio) do not specifically focus on the timing and frequency of promotional tools.

Question 11

All of the following are forms of direct marketing except which?

Accepted Answer

In-store samples are not considered a form of direct marketing as they involve physical interaction at a retail location rather than direct communication with consumers through channels like mail, phone, or online platforms.

Question 12

According to the textbook, ________ recently won Advertising Age magazine's coveted Media Agency of the Year award.

Accepted Answer

PHD recently won Advertising Age magazine's coveted Media Agency of the Year award, as mentioned in the textbook.

Question 13

All of the following forms of direct marketing are used by consumers to purchase products except which?

Accepted Answer

Sweepstakes are not a form of direct marketing used by consumers to purchase products.

Question 14

The Olympics have become a very visible example of a comprehensive integrated communication program. For organizers, primary importance is placed on

Accepted Answer

The Olympics are not primarily concerned with selling tickets or generating revenue, but rather with building a brand and fostering goodwill with stakeholders. This requires a strong emphasis on public relations and publicity to promote the event and its values to the world. Other communication tools like advertising and personal selling may be used, but they are secondary to the overarching focus on building a positive image through strategic communications.

Question 15

Sales from which of the following direct marketing tools is growing the fastest at 33 percent?

Accepted Answer

According to the information provided, mobile direct marketing is growing the fastest at a rate of 33%, making A the best choice.

Question 16

The best approach to budgeting is objective and task budgeting, whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and

Accepted Answer

The best approach to budgeting is to determine the promotion cost of performing the tasks that will accomplish the company's promotion objectives. This will ensure that the company allocates its resources efficiently and effectively to achieve its goals. Asking the ad agency for an estimate or asking the media to propose a program may not take into account the specific tasks needed to achieve the objectives. Determining spending levels based on customer surveys may also not be the most objective approach. Finally, while top management's spending level is important, it should be based on the tasks outlined and the costs associated with achieving the promotion objectives.

Question 17

One researcher estimates that "an organization with sales between $200 million and $500 million will need three ________" to successfully implement an IMC program.

Accepted Answer

The answer of One researcher estimates that "an organization with...

Question 18

All-you-can-afford budgeting refers to

Accepted Answer

All-you-can-afford budgeting refers to allocating funds to a promotion only after all other budget items are covered. This means that promotion spending is determined based on how much money is left in the budget after all other expenses, such as fixed costs like rent, utilities, and salaries have been paid. This approach can be risky because it assumes that there will be money left over to allocate to promotion, and it may result in insufficient promotion spending.

Question 19

Allocating funds to promotion by matching the competitor's absolute level of spending or the proportion per point of market share is referred to as ________ budgeting.

Accepted Answer

Competitive parity budgeting involves matching the absolute level of spending or the proportion per point of market share of a competitor. This approach allows a company to have a similar level of promotional activity as its competitors, thus ensuring that it maintains its market share.

Question 20

The owner of a nail shop that operates in a local strip mall told her daughter, "Well, after budgeting for all of our expenses for next year, we still have about $7,500 remaining for emergencies. Let's budget 20 percent of that amount for advertising." What budgeting technique is the retailer most likely using?

Accepted Answer

The answer of The owner of a nail shop that...

Quiz 15: Integrated Marketing Communications and Direct Marketing