Question 1

Expenditures in all four areas of marketing communication (advertising, trade promotions, consumer promotions, and personal selling) are high in the _____ stage of the product life cycle.

Accepted Answer

Expenditures in all four areas of marketing communication (advertising, trade promotions, consumer promotions, and personal selling) are high in the maturity stage of the product life cycle because of a high level of competitive intensity.

Question 2

Expenditures in all four areas of marketing communication (advertising, trade promotions, consumer promotions, and personal selling) are the lowest in the _____ stage of the product life cycle.

Accepted Answer

Expenditures in all four areas of marketing communication (advertising, trade promotions, consumer promotions, and personal selling) are the lowest in the decline stage of the product life cycle because the product is slowly being phased out and there is no incentive to promote it.

Question 3

Expenditures on trade promotions would be the highest during the _____ stage of the product life cycle.

Accepted Answer

Expenditures on trade promotions would be the highest during the maturity stage of the product life cycle because of intense competition for shelf space at retailers.

Question 4

In developing the communication budget, the _____ method first identifies the communication goals, then allocates money for each goal based on what is needed to achieve the goal.

Accepted Answer

The objective-and-task method involves setting specific communication goals and then determining the budget required to achieve those goals, making it a goal-oriented approach.

Question 5

The most popular method of developing a communication budget for multinational firms is the

Accepted Answer

The most popular method of developing a communication budget for multinational firms is the objective-and-task method because it ties the budget to communication objectives.

Question 6

Most marketing experts believe the best and most sound method of building the communications budget is the

Accepted Answer

Most marketing experts believe the best and most sound method of building the communications budget is the objective-and-task method because it ties the budget to objectives the firm wishes to accomplish.

Question 7

In developing the communication budget, the _____ method bases the budget on past or projected sales.

Accepted Answer

The percent-of-sales method bases the communication budget on a percentage of past or projected sales.

Question 8

The percentage-of-sales method of developing a communication budget works best for firms

Accepted Answer

The percentage-of-sales method of developing a communication budget works best for firms operating in a stable market where sales do not fluctuate. In highly fluctuating markets, the marketing budget would change too much and too often to maintain a consistent marketing program.

Question 9

In developing the communications budget, firms using the _____ method base their budget on past expenditures, usually giving more weight to recent expenditures.

Accepted Answer

In developing the communications budget, firms using the historical method base their budget on past expenditures, usually giving more weight to recent expenditures.

Question 10

The _____ method of developing a communications budget is based on the premise that past marketing expenditures have been sufficient to accomplish the firm's goals and that the future expenditures should continue at the same level.

Accepted Answer

The historical method of developing a communications budget is based on the premise that past marketing expenditures have been sufficient to accomplish the firm's goals and that the future expenditures should continue at the same level.

Question 11

In highly intensive markets, firms will often use the _____ method for developing the communications budget to ensure the firm's spending is in line with their primary competitors and to prevent erosion of their market share.

Accepted Answer

The competitive-parity method involves setting the communications budget to match or exceed the spending of competitors, which is crucial in highly competitive markets to maintain market share.

Question 12

In developing the communications budget using the _____ method, the premise is that executives know the industry, know what is happening with the competition, and know the future strategic direction of the firm.

Accepted Answer

The executive-judgment method relies on the insights and experience of executives who are familiar with the industry, competition, and strategic direction of the firm to develop the communications budget.

Question 13

The method used by many small and medium sized businesses in developing their communications budget is the

Accepted Answer

The method used by many small and medium sized businesses in developing their communications budget is the all-you-can-afford method because it is easy to do and marketing is more difficult to justify than other direct expenses.

Question 14

Advertising is difficult to evaluate for all of the following reasons except

Accepted Answer

It is generally not difficult to determine the target market for a particular advertisement, as this is a fundamental part of the advertising strategy and planning process.

Question 15

In evaluating advertising, _____ is used before an advertisement is developed or in the early stages of development to determine if a target audience likes an idea or marketing approach.

Accepted Answer

Concept testing is used in the early stages of advertisement development to gauge the target audience's reaction to an idea or marketing approach before it is fully developed.

Question 16

In evaluating advertising effectiveness, _____ is used with finished ads or ads in the last stages of production to determine the target audience's reaction to the advertisement.

Accepted Answer

In evaluating advertising effectiveness, copy testing is used with finished ads or ads in the last stages of production to determine the target audience's reaction to the advertisement as well as their comprehension of an ad.

Question 17

If individuals are called the day after an advertisement appears and asked, with no hints, what advertisements they recall seeing the previous day, the testing method being used is

Accepted Answer

The method described involves asking individuals to recall advertisements without any prompts or hints, which aligns with the unaided day-after-recall (DAR) testing method.

Question 18

If individuals are called the day after an advertisement appears and asked what advertisements they recall seeing the previous day for a particular product category, such as automobiles, the testing method being used is

Accepted Answer

The answer of If individuals are called the day after...

Question 19

In evaluating advertising effectiveness, _____ are conducted by showing consumers a series of advertisements and then asking them questions about the ads, including which ones they had seen previously.

Accepted Answer

Recognition tests involve showing consumers advertisements and asking them which ones they remember seeing, focusing on recognition rather than recall.

Question 20

In evaluating advertising effectiveness, the best method for measuring an audience's reaction and feelings about an advertisement is to use

Accepted Answer

Attitude tests are designed to measure an audience's feelings and reactions towards an advertisement, making them the best method for evaluating advertising effectiveness in terms of audience perception.

Quiz 13: Integrated Marketing Communications