Deck 12: Integrated Marketing Communication and Media Choices

Question 1

John own a taxi service company. He just got some new taxis with extra benefits like on-board wifi, and he needs to get the word out. He should calculate his advertising budget based on the method of using his strategic advertising goal and calculating the necessary expenditures to meet that goal.

Answer 1

True

Question 2

Marketers try to determine ROI or ROMI, which is basically a breakeven for an advertising expenditure.

Answer 2

True

Question 3

Josh is in charge of media planning for a company that makes Halloween costumes. Seasonal ads would be a good advertising strategy for Josh's company, because they are infrequent and focused on the pre­term season for the product, and advertising outside the season would not induce additional purchases.

Answer 3

True

Question 4

IMC encourages marketers to create consistent, yet different, marketing messages across different types of media.

Question 5

Advertising budgets are usually fixed, not variable.

Question 6

The cost for a simple 30 second TV ad it at least $500,000.

Question 7

Sid's Surf Shop has an ad out that reached 30% of his target audience. It reached that 30% on 2 occasions (on average). Sid's Gross Rating Points is 2.3.

Question 8

Gross Rating Points is a simple function of reach and frequency, i.e., GRP = Reach ? Frequency.

Question 9

One media question that companies need to answer is: "How much should we spend?"

Question 10

Sean is the VP of Marketing at a large chain of car dealerships. He is a strong proponent of advertising heavily and investing in promotional spending because there is a strong relationship between these activities and the market value of a firm. Ken's thought process is widely accepted as correct because a clear link of causality between advertising and promotional spending and market value exists.

Question 11

Ken is the VP of Marketing at a large chain of family restaurants. Ken states that, in his opinion, the general rule of advertising is that an ad needs to be seen and processed three times to be persuasive. Ken's opinion is consistent with the industry's general rule of thumb today.

Question 12

Researchers believe that advertising should be identical across all media in order to be effective.

Question 13

Continuous advertising schedules have a fairly regular ad schedule, but they are not always predictable.

Question 14

TV ads are vivid and dramatic and should be used for complex products, while print media is informative and should be used for simplistic products.

Question 15

Overall there is a fairly constant proportionality between advertising spending and income.

Question 16

Patricia owns a bagel shop and she wants to advertise her shop on TV. She decides on a 30-second ad on the Food Network. The ad is supposed to run for 1 month. This ad costs $100,000. Her cost of good sold (COGS) for 1 bagel is $0.75, of which $0.25 comes from advertising. She needs to sell 400,000 bagels in order to break even for the advertising expense.

Question 17

There is a negative relationship between good brand outcomes and IMC practices.

Question 18

The only good method to determine the total amount of money to be spent on the communications package is
using the advertising budget as a percentage of last year's sales.

Question 19

The most expensive type of advertising media is online (websites).

Question 20

Flowers.com wants to advertise their vast variety of flowers you can buy online. Outside of online advertising, one of their best options is to use a flower or garden magazine due to its targeted audience and high-quality photographs.

Question 21

IMC uses all advertising outlets, including personal selling, public relations, and traditional advertising.

Question 22

Instead of simply advertising online or through a catalog, B2B sales need salespeople.

Question 23

Aaron tells his secretary that he wants to generate some positive feelings in the community about his insurance business. He asks his secretary to think of some ways he can get some positive PR for his business, and she responds that he should consider sponsoring a community event, or perhaps purchasing uniforms for a local little league team. Aaron's secretary has made some good suggestions.

Question 24

Online advertising and direct mail are the most customizable.

Question 25

Although the media are great marketing tools, nothing beats a face-to-face conversation to try to figure out what a consumer wants and how a company can deliver.

Question 26

The manager of the local carwash is initiating a new promotion to activate purchase interest among local residents. This promotional effort will likely increase short-term sales, and can encourage brand switching (i.e., switching carwashes).

Question 27

During push sales, the brand manager will typically offer members of the channel "trade allowances."

Question 28

Publicity is a communication tool that companies frequently pay for in order to generate attention or interest in the marketplace.

Question 29

Public relations (PR) is a means of providing information and building brand attributes.

Question 30

Virtual billboards in video games are frequently actual advertisements.

Question 31

Barbara is the Director of Public Relations for a large, publicly-traded manufacturing company. In general,
Barbara's primary objective should be to generate goodwill on behalf of the company.

Question 32

Hammer & Nails Co. is a large chain of home improvement stores on the East coast. Evidence suggests that its television commercials are less effective in reaching its target audience than in past years. The marketing department believes this is partially caused by the advent of DVR technology, where consumers record shows but skip through commercials. If the marketing executives still believe television advertising could be an effective way to reach their target market, the company may want to consider product placement in television shows that are popular with its target market.

Question 33

An IMC schedule varies depending on the time of the year.

Question 34

The choice between continuous vs. occasional advertising is strictly a budget-oriented decision.

Question 35

The two major questions related to choices among media sources are: (1) what reaches the most people; and (2) what costs the least?

Question 36

Marketers face three primary questions in designing a sales force: How many salespeople do I need? Where do I deploy them? How do I compensate them?

Question 37

Direct mail is relatively inexpensive and is quite efficient at researching its target audience.

Question 38

If the marketing goal is to brand attitude change, then reach and frequency are the media goals and these are measured by viewership and traffic indices.

Question 39

One marketing strategy is to avoid advertising to your already loyal customers, as these customers will keep buying your brand even without these ads.

Question 40

A computer company uses a humorous TV ad to promote its new computer, and it also uses an informative direct mail ad to show all the features of its new computer. This is an example of IMC.

Question 41

Sears has an ad for Christmas trees in December. What type of ad is this?

A) continuous
B) occasional
C) seasonal
D) annual

Question 42

What type of ad is also referred to as fighting or pulsing?

A) continuous
B) occasional
C) seasonal
D) annual

Question 43

is the average number of times a target audience saw an ad within some set duration.

A) Reach
B) Frequency
C) GRP
D) Marketing

Question 44

Which of the following describes the general trend of proportion of ad spending to sales?

A) As ad spending increases, sales increases
B) As ad spending increases, sales decreases
C) As ad spending decreases, sales increases
D) There is no relationship between ad spending and sales

Question 45

Which medium yields the largest reach numbers?

A) radio
B) billboards
C) the Web
D) TV

Question 46

In marketing, GRP is an acronym for:

A) gross rational products
B) gross reach promotions
C) greater raw prices
D) gross rating points

Question 47

Propose that you work for Taco Bell and you advertise during American Idol. Their rating is 19. This is equal to 21.3 million TV's. American Idol charges $700,000 for a 30­second ad. If a meal contribution at Taco Bell is
$0)60, how many purchases are required to break even for the ad costs?

A) 1,454,598
B) 700,000
C) 420,000
D) 1,116,667

Question 48

Propose that you work for Taco Bell and you advertise during American Idol. Their rating is 19. This is equal to 21.3 million TV's. American Idol charges $300,000 for a 30­second ad. If a meal contribution at Taco Bell is
$0)20, what percentage of viewers need to buy a meal to break even on the ad costs?
A) 10%

A) 7%
B) 4%
C) 2%

Question 49

Donna's philosophy as she coordinates her firm's marketing efforts is to keep in mind the company's overarching strategy, and to ensure that all marketing activities send a consistent message, beginning with the communications but also including the other marketing mix elements. Based on this information, Donna is most likely a proponent of

A) Integrated Marketing Communications
B) Intended Marketing Commitments
C) Media Reach
D) Media Response

Question 50

What term describes what marketers look for when evaluating the cost effectiveness of an ad?

A) DRO
B) ROMI
C) Ad return rate
D) Break even point

Question 51

What time of media schedule has a fairly regular ad exposure?

A) continuous
B) occasional
C) seasonal
D) annual

Question 52

Orange Inc. is a consumer electronics company and is preparing to launch its new portable music device - the uTune. In planning its advertising strategy, the company should keep in mind that the cost to produce a fairly simple 30-second television commercial today is approximately:

A) $100,000
B) $200,000
C) $350,000
D) $500,000

Question 53

Anita is working on determining the amount she should request for next year's advertising budget. She is having difficulty coming up with a reasonable figure. One of Anita's colleagues mentions that advertising budgets are typically determined in one of three ways. Which is NOT one of the three typical methods?

A) The advertising budget is a percentage of last year's sales.
B) The company spends approximately what it believes is parity with competitors.
C) The company spends 10% more on advertising than it did in the previous year.
D) The company can use its strategic advertising goal (e.g., enhance awareness or positive attitudes) and work backward to calculate necessary expenditures.

Question 54

Donovan Digital sells sophisticated high-tech products. Donovan Digital can best explain its products in which media?

A) radio
B) newspapers
C) TV
D) billboards

Question 55

In the past, according to media and market research, after TV, which media did people typically spend more time on per day?

A) Magazines
B) Books
C) Newspapers
D) Radio

Question 56

Ad costs are the highest during which programs?

A) Survivor
B) American Idol
C) The Good Wife
D) NCIS: LA

Question 57

Sally is the creative director at a New York-based agency. In thinking about a list of goals for the ads she is responsible for creating, which is likely NOT on her list?

A) entertainment
B) awareness
C) memory
D) persuasion

Question 58

Ryan is a marketer for a computer gaming company. He wants to advertise the game's new graphics but doesn't want to pay the high price of showing it off on TV. What medium should he use?

A) radio
B) billboards
C) magazines
D) newspaper

Question 59

Which ad would be the least expensive?

A) 30-second TV ad
B) 1 page, 1 day in metropolitan newspaper
C) 1 minute radio ad
D) full page color ad in BusinessWeek

Question 60

Bill's Surf Shop needs to advertise. Which option provides the largest frequency?

A) TV
B) billboards
C) direct mail
D) the Web

Question 61

National Electronics makes hearing aids. They created one humorous ad, and they made another ad that explained how the device will make the user's life better. These 2 ads are an example of across media and messages.

A) poor design
B) marketing
C) integration
D) synergy

Question 62

The process works in selling, just as it does in advertising.

A) sales
B) AIDA
C) prospecting
D) NOIA

Question 63

The goal of IMC is to integrate a brand message across .

A) any media
B) TV
C) sales
D) all traditional advertising outlets

Question 64

The text lists an example company's IMC schedule. What are some activities that happen in August?

A) the company sponsors a float and college football game
B) ads focus on kids going back to school with a coupon and referral program
C) local TV ads are aired in three large markets
D) product is sold at 50-75% discount

Question 65

What is a coupon is an example of?

A) sponsorship
B) sales promotion
C) product placement
D) brand advocate

Question 66

is usually used for sports. It can also sometimes be of other cultural or artistic endeavors. It is an effective medium because it's exciting, and the brands draw from both their positive valence and their high positive energy.

A) Promotion
B) Publicity
C) PR
D) Event sponsorship

Question 67

Evan is participating in advertising research for Pepsi. He is asked if he can remember where he saw an ad for Pepsi. He cannot accurately answer where he saw the ad. This is why it's important that .

A) Pepsi advertises in multiple media
B) Pepsi has a simple message
C) Pepsi increases its awareness
D) Pepsi has a consistent message

Question 68

Company ABC is considering using product placement as a creative means to get in front of consumers. Which of the following is NOT likely to be an alternative for product placement in their overall advertising strategy?

A) movies
B) television shows
C) video games
D) commercials

Question 69

What is the result if you increase your ad budget relative to the competition?

A) increase in sales
B) doesn't increase sales in general
C) increases awareness
D) increase your market share

Question 70

When advertising online, what is typically measured to assess the success of the program?

A) website visits
B) online purchases
C) bandwidth usage
D) click-thru rates

Question 71

The Department of Labor estimates how many jobs are in sales?

A) 2-4 million
B) 6-8 million
C) 14 million
D) 10 million

Question 72

If the target market is large, the saturation percentage to be profitable.

A) needs to be large
B) must be equal to the market
C) must be as large as possible
D) can be smaller

Question 73

Which is NOT one of the three questions that should be addressed in designing a sales force?

A) How many salespeople do I need?
B) Where do I deploy them?
C) How do I train them?
D) How do I compensate them?

Question 74

Oil Solutions, Inc. is a Texas-based oil company. One of its tanker ships was delivering oil from an off-shore drilling station to a refinery. The ship was in need of repairs and leaked a large quantity of oil into clear, blue ocean waters. The Director of PR for Oil Solutions, Inc. tried to smooth over this embarrassing accident. In this example, PR was used in a .

A) proactive mode
B) recovery mode
C) spin mode
D) responsive mode

Question 75

A fairly subtle approach to advertising is .

A) product placement
B) television advertising
C) radio advertising
D) integrated marketing communications

Question 76

In a push-based system of distribution, which relies on selling to customers through a sales force and retail partners, managers direct their promotional efforts more towards .

A) channel members
B) final users
C) promotions
D) coupons

Question 77

For any ad, what is a question that needs answered?

A) Who is the target audience?
B) What is the selling price?
C) What is the product placement?
D) Who is the brand advocate?

Question 78

Joe has his own small business. He doesn't have the budget to advertise on huge national sporting events. What is a good alternative place for him to advertise?

A) national newspapers
B) CNN
C) magazines and websites his target audience visit
D) any local TV station

Question 79

Which of the following is NOT one of the ways that advertising effectiveness can be assessed?

A) recall and recognition
B) attitudes and propensity to purchase
C) price point
D) awareness

Question 80

What is a communication tool that is not paid for the brand's company, and therefore appears to be objective?

A) Product Placement
B) PR
C) Publicity
D) Sponsorship