Question 1

A company that manufactures cosmetics introduces a new product.To popularize this product,they use unauthorized mailing lists to reach consumers.This represents ethical and legal concerns related to _____.

Accepted Answer

Using unauthorized mailing lists to reach consumers is an ethical and legal concern associated with sales promotion.

Question 2

The basic problem with this method of determining advertising spending is that it views advertising as a function of sales,rather than sales as a function of advertising.

Accepted Answer

The percent of sales method views advertising as a function of sales, rather than sales as a function of advertising.

Question 3

Which of the following is an ethical and legal concern associated with sales promotion?

Accepted Answer

Using unauthorized mailing lists to reach consumers is an ethical and legal concern associated with sales promotion.

Question 4

Identify the ethical and legal concern associated with advertising.

Accepted Answer

Reinforcing ethnic and racial stereotypes is an ethical and legal concern associated with advertising.

Question 5

The availability of current revenues sets the upper limit of the ad budget for which of the following approaches of determining advertising spending?

Accepted Answer

The availability of current revenues sets the upper limit of the ad budget for the all-you-can-afford approach of determining advertising spending.

Question 6

Which of the following is an ethical and legal concern associated with personal selling?

Accepted Answer

Misrepresenting product health is an ethical and legal concern associated with personal selling.

Question 7

Which of the following is an ethical and legal concern associated with advertising?

Accepted Answer

Encouraging materialism and excessive consumption is an ethical and legal concern associated with advertising.

Question 8

Which of the following statements about the methods of establishing advertising budgets is true?

Accepted Answer

The task approach of establishing advertising budgets is often used in conjunction with the research approach. The per-unit approach is popular with higher-priced merchandise. The percent-of-sales approach is popular in retailing. The competitive parity approach is a "followership" technique from a strategy standpoint.

Question 9

Identify the ethical and legal concern associated with public relations.

Accepted Answer

Orchestrating news events to present a false appearance of widespread support for the company position is an ethical and legal concern associated with public relations.

Question 10

Which of the following is going to help a product gain market share the most in the long term?

Accepted Answer

Many marketers practice the art of discounting. Companies employing these tactics may benefit in the short term but may be at a severe competitive disadvantage in the long term. Some marketers, however, know that brand equity and consumer preference for brands drive market share. They realize the balance of advertising and promotion costs needed to build brands and gain share, market by market, regardless of growth trends in product categories where they compete. They do not raid their ad budgets to increase earnings, nor do they view advertising as a discretionary cost.

Question 11

Which of the following statements is true about the per-unit expenditure approach of determining advertising spending?

Accepted Answer

The per-unit expenditure approach of determining advertising spending is popular with higher-priced merchandise. The basic philosophy underlying the competitive parity approach is that advertising is defensive. The task approach is often used in conjunction with the research approach. The competitive parity approach is essentially a followership technique from a strategy standpoint.

Question 12

Which of the following observations is true of the percent-of-sales approach of determining advertising spending?

Accepted Answer

The percent-of-sales approach of determining advertising spending is popular in retailing. The per-unit approach attempts to determine the retail price by using production costs as a base. The basic philosophy underlying the competitive parity approach is that advertising is defensive. The task approach is often used in conjunction with the research approach.

Question 13

Identify the ethical and legal concern associated with sales promotion.

Accepted Answer

Paying slotting allowances to gain retail shelf space is an ethical and legal concern associated with sales promotion.

Question 14

Which of the following approaches of determining advertising spending views advertising as a function of sales,rather than sales as a function of advertising?

Accepted Answer

The per-unit expenditure method views advertising as a function of sales, rather than sales as a function of advertising.

Question 15

Which of the following methods of determining advertising spending attempts to determine retail price by using production costs as a base?

Accepted Answer

The per-unit expenditure method of determining advertising spending attempts to determine the retail price by using production costs as a base.

Question 16

Identify the ethical and legal concern associated with personal selling.

Accepted Answer

Failing to disclose product limitations or safety concerns is an ethical and legal concern associated with personal selling.

Question 17

Which of the following is an ethical and legal concern associated with public relations?

Accepted Answer

Paying lip service to worthwhile causes is an ethical and legal concern associated with public relations.

Question 18

As the marketing head of New Inc.,you have to decide the size of the advertising budget for a hair care product which was a star earner last year but has seen its market share plummet recently.Which of the following is going to help the product regain its market share the most in the long term?

Accepted Answer

Many marketers practice the art of discounting. Companies employing these tactics may benefit in the short term but may be at a severe competitive disadvantage in the long term. Some marketers, however, know that brand equity and consumer preference for brands drive market share. They realize the balance of advertising and promotion costs needed to build brands and gain share, market by market, regardless of growth trends in product categories where they compete. They do not raid their ad budgets to increase earnings, nor do they view advertising as a discretionary cost.

Question 19

Which of the following is an ethical and legal concern associated with direct marketing communications?

Accepted Answer

Using consumer database information without consumers' authorization is an ethical and legal concern associated with direct marketing communications.

Question 20

Which of the following approaches of determining advertising spending establishes the advertising budget as a predetermined share of profits or financial resources?

Accepted Answer

The all-you-can-afford approach of determining advertising spending establishes the advertising budget as a predetermined share of profits or financial resources.

Quiz 8: Integrated Marketing Communications