Deck 13: Integrated Marketing Communications

Question 1

Some would argue that the concept of integrated marketing communications has been around for a long time; however, few companies practiced it until recently.

Answer 1

True

Question 2

Customers, both individuals and businesses, are better informed, more price conscious, and more demanding of quality, service, convenience, and speed than in the past.

Answer 2

True

Question 3

IMC involves communicating effectively to external groups, such as customers, channel members, and stakeholders, but not to internal groups, such as employees.

Answer 3

False

Question 4

Multi-channel marketing is the marketing of a product through two or more channels.

Question 5

Advertising is any form of paid communications directed to an organization's customers and/or other stakeholders.

Question 6

Public relations addresses internal issues an organization faces and represents the organization to employees and other internal stakeholders, such as stockholders.

Question 7

Trade promotions are incentives to encourage end-users or consumers to purchase a product.

Question 8

Sales, or consumer, promotions are directed toward channel members to encourage them to purchase, stock, or push products through the channel.

Question 9

Database marketing is the collection, analysis, and use of large volumes of customer data to develop marketing programs and customer profiles.

Question 10

Advertising has a major advantage in that it is able to reach a large number of people with a single message.

Question 11

Although advertising costs are relatively high, the cost per person is low because advertising reaches so many people at one time.

Question 12

If a new product is introduced by a company, it is the responsibility of the marketing department to send out a press release about it.

Question 13

The redemption rate for coupons is approximately 10.7 percent.

Question 14

Manufacturers spend about 14 percent of their total sales on trade promotions.

Question 15

Personal selling is an important component of marketing especially for companies that sell to other businesses, the government, or institutions.

Question 16

Computer technology has facilitated the development of customer databases, which can be used for database marketing programs and direct marketing programs.

Question 17

In terms of the communication model presented in the textbook, a completed 30-second radio advertisement would be a medium.

Question 18

One form of noise that impacts the effectiveness of advertising is clutter. An example of clutter would be approximately 15 minutes of advertisements during each hour of television broadcasting.

Question 19

A study by the Cable television Advertising Bureau indicated that there is an enormous difference in the viewer's ability to recall ads between the first ads in a series and the fourth or fifth ad in the series.

Question 20

In terms of how marketing dollars are spent, approximately 50 percent of all marketing dollars are spent on advertising.

Question 21

In terms of how marketing dollars are spent, approximately 50 percent of all marketing dollars are spent on trade promotions.

Question 22

In terms of how marketing dollars are spent, approximately 25 percent of all marketing dollars are spent on consumer promotions.

Question 23

Business-to-business marketing tends to rely more on personal selling, consumer promotions, and telephone marketing, while consumer marketing tends to rely more on advertising and trade promotions.

Question 24

To increase demand, an excellent strategy is to offer wholesalers and retailers trade promotions such as price discounts, quantity discounts, and bonus packs.

Question 25

If consumers and businesses perceive very little differences among various brands of a product, then the brand name becomes the determining variable in the decision.

Question 26

The best communication tool used to accomplish the objective of differentiating a product is personal selling.

Question 27

In terms of stimulating trial, consumer promotions are the best method because they offer consumers some type of purchase incentive.

Question 28

In terms of stimulating trial, trade promotions are relatively ineffective because wholesalers and retailers are reluctant to try a new product unless they know consumers are willing to buy it.

Question 29

With a pull marketing strategy, the manufacturer attempts to move the product through the distribution channel with the belief that if the product is available in retail outlets, consumers will purchase it.

Question 30

Manufacturers seldom use either a push or a pull strategy, instead they use a combination of both.

Question 31

When a pharmaceutical company advertises a new medicine to the public encouraging patients to ask their doctors about a prescription for the medicine, they are using a pull strategy.

Question 32

When a manufacturer offers retailers large trade promotions to encourage them to stock a new product on their shelves, the manufacturer is using a pull strategy.

Question 33

The most popular budgeting method used by multinational corporations is the percentage-of-sales method.

Question 34

The percentage-of-sales method of determining a communications budget is good for firms introducing new products.

Question 35

A major problem with the percentage-of-sales method of communication budgeting is that the budget often moves in the wrong direction. For example, when sales decline, the communications budget is reduced, when it may need to be increased to stimulate sales.

Question 36

The historical budgeting method is not recommended for firms in an unstable economic, political, or competitive environment, or where sales show wide fluctuations.

Question 37

A danger with all-you-can-afford method of communication budgeting is that during tough economic times, the marketing budget is often the first to be cut based on the belief that the firm cannot afford it.

Question 38

Although it is difficult to measure the effectiveness of the various forms of communications, companies are demanding greater accountability for their marketing expenditures.

Question 39

In evaluating advertising, concept tests are evaluations of completed or nearly completed advertisements.

Question 40

In evaluating advertising, copy tests are evaluations of the content or concept of an advertisement and its potential impact on viewers conducted in the very early stages of ad development.

Question 41

In evaluating advertising, recall tests are evaluations whereby participants are asked about their recall of specific advertisements.

Question 42

In evaluating advertising, day-after recall (DAR) tests are evaluations of new advertisements conducted the day after they appear and where respondents are asked about what they remember from the ads viewed the day before.

Question 43

The goal of copy tests is to obtain the reaction of the target market to an advertisement, before it is produced and launched.

Question 44

Because of the short-term impact of promotions, changes in sales is an effective means of evaluating either a trade or a consumer promotion effort.

Question 45

The number of inquiries is an effective method of measuring the impact of coupons.

Question 46

Personal selling is normally evaluated by sales, since salespeople are hired to sell a product.

Question 47

In terms of global operations, with standardization the goal is to generate economies of scale in production while creating a global product using the same promotional theme.

Question 48

_____ is(are) all forms of external communications directed toward consumers and businesses with an ultimate goal of developing customers.

A) Integrated marketing communications
B) Promotions
C) Advertising
D) Public relations

Question 49

Promotions refer to

A) a communication venue that addresses issues an organization faces and represents the organization to the public, media, and various stakeholders
B) all forms of external communications directed toward consumers and businesses with an ultimate goal of developing customers
C) the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program
D) any form of paid communication directed to an organization's customers and/or other stakeholders

Question 50

Integrated marketing communications refer to

A) a communication venue that addresses issues an organization faces and represents the organization to the public, media, and various stakeholders
B) all forms of external communications directed toward consumers and businesses with an ultimate goal of developing customers
C) the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program
D) any form of paid communication directed to an organization's customers and/or other stakeholders

Question 51

_____ refers to the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program designed to maximize the communication impact on consumers, businesses, and other constituencies of an organization.

A) Integrated marketing communications
B) Promotions
C) Advertising
D) Public relations

Question 52

Integrated marketing communications involve communicating to

A) customers
B) channel members
C) employees and other stakeholders
D) all of the above

Question 53

Advertising refers to

A) a communication venue that addresses issues an organization faces and represents the organization to the public, media, and various stakeholders
B) all forms of external communications directed toward consumers and businesses with an ultimate goal of developing customers
C) the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program
D) any form of paid communication directed to an organization's customers and/or other stakeholders

Question 54

Public relations refers to

A) a communication venue that addresses issues an organization faces and represents the organization to the public, media, and various stakeholders
B) all forms of external communications directed toward consumers and businesses with an ultimate goal of developing customers
C) the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program
D) any form of paid communication directed to an organization's customers and/or other stakeholders

Question 55

Sales, or consumer, promotions refer to

A) incentives to encourage end-users or consumers to purchase a product
B) incentives directed toward channel members to encourage them to purchase, stock, or push a product through the channel
C) a direct communication approach between the buyer and seller with the express purpose of selling a product
D) the promotion of a product from the producer directly to the consumer or business user without the use of any type of channel member

Question 56

Trade promotions refer to

A) incentives to encourage end-users or consumers to purchase a product
B) incentives directed toward channel members to encourage them to purchase, stock, or push a product through the channel
C) a direct communication approach between the buyer and seller with the express purpose of selling a product
D) the promotion of a product from the producer directly to the consumer or business user without the use of any type of channel member

Question 57

Personal selling refers to

A) incentives to encourage end-users or consumers to purchase a product
B) incentives directed toward channel members to encourage them to purchase, stock, or push a product through the channel
C) a direct communication approach between the buyer and seller with the express purpose of selling a product
D) the promotion of a product from the producer directly to the consumer or business user without the use of any type of channel member

Question 58

Database marketing refers to

A) the collection, analysis, and use of large volumes of customer data to develop marketing programs and customer profiles
B) marketing directly to retailers to encourage them to purchase and stock a product, thereby eliminating other members of the channel
C) a direct communication approach between the buyer and seller with the express purpose of selling a product
D) the promotion of a product from the producer directly to the consumer or business user without the use of any type of channel member

Question 59

Direct marketing refers to

A) the collection, analysis, and use of large volumes of customer data to develop marketing programs and customer profiles
B) marketing directly to retailers to encourage them to purchase and stock a product, thereby eliminating other members of the channel
C) a direct communication approach between the buyer and seller with the express purpose of selling a product
D) the promotion of a product from the producer directly to the consumer or business user without the use of any type of channel member

Question 60

Traditionally, the promotional mix included all of the following except

A) direct marketing
B) advertising
C) sales, or consumer, promotion
D) personal selling

Question 61

Traditionally, the promotional mix included all of the following except

A) sales, or consumer, promotions
B) the Internet
C) trade promotions
D) public relations

Question 62

All of the following situations would normally be handled by public relations except

A) an accident that has occurred at the business
B) promoting a new contest to introduce a new product
C) announce a new product through a press release
D) deal with a quarterly earnings report that did not meet Wall Street expectations

Question 63

A retailer is offered a free case of batteries for every 10 that are purchased from the manufacturer. This would be an example of

A) direct marketing
B) a consumer, or sales, promotion
C) a trade promotion
D) database marketing

Question 64

A coupon for $2.00 off a medium-size pizza which is distributed in the Sunday newspaper in a free standing insert. This is an example of

A) database marketing
B) direct marketing
C) a trade promotion
D) a consumer, or sales, promotion

Question 65

The amount of money spent on trade promotions has increased dramatically from $8 billion in 1980 to more than _____ today

A) $85 billion
B) $150 billion
C) $235 billion
D) $417 billion

Question 66

Companies that sell high cost products to other businesses, the government, and institutions would typically focus on the _____ component of the marketing mix.

A) personal selling
B) advertising
C) sales promotion
D) public relations

Question 67

According to the American Productivity & Quality Center (APQC), the _____ stage of developing an IMC program involves identifying, coordinating, and managing all forms of external communications.

A) first
B) second
C) third
D) fourth

Question 68

According to the American Productivity & Quality Center (APQC), the _____ stage of developing an IMC program involves gathering information about a firm's customers and using it to develop marketing programs.

A) first
B) second
C) third
D) fourth

Question 69

According to the American Productivity & Quality Center (APQC), during the _____ stage of developing an IMC program information technology becomes prominent and is applied to the IMC program.

A) first
B) second
C) third
D) fourth

Question 70

According to the American Productivity & Quality Center (APQC), during the _____ stage of developing an IMC program the organization treats IMC as an investment and not as a departmental function.

A) first
B) second
C) third
D) fourth

Question 71

In the communications model presented in the textbook, the source is

A) the process of transposing the objectives or goal of a marketing communication concept into an actual marketing communication piece, such as an advertisement, brochure, or sign
B) the venue the source uses to send a marketing communication message to its intended audience
C) the organization that originates a marketing communication message
D) the completed marketing communication piece

Question 72

In the communications model presented in the textbook, encoding is

A) the process of transposing the objectives or goal of a marketing communication concept into an actual marketing communication piece, such as an advertisement, brochure, or sign
B) the venue the source uses to send a marketing communication message to its intended audience
C) the organization that originates a marketing communication message
D) the completed marketing communication piece

Question 73

In the communications model presented in the textbook, the message is

A) the process of transposing the objectives or goal of a marketing communication concept into an actual marketing communication piece, such as an advertisement, brochure, or sign
B) the venue the source uses to send a marketing communication message to its intended audience
C) the organization that originates a marketing communication message
D) the completed marketing communication piece

Question 74

In the communications model presented in the textbook, the medium is

A) the process of transposing the objectives or goal of a marketing communication concept into an actual marketing communication piece, such as an advertisement, brochure, or sign
B) the venue the source uses to send a marketing communication message to its intended audience
C) the organization that originates a marketing communication message
D) the completed marketing communication piece

Question 75

In the communications model presented in the textbook, decoding is

A) the process of transposing the objectives or goal of a marketing communication concept into an actual marketing communication piece, such as an advertisement, brochure, or sign
B) the process of interpreting the meaning conveyed in a marketing message
C) individuals who observe a marketing communication and decode the message
D) the response of the audience to the message

Question 76

In the communications model presented in the textbook, the audience is

A) the process of transposing the objectives or goal of a marketing communication concept into an actual marketing communication piece, such as an advertisement, brochure, or sign
B) the process of interpreting the meaning conveyed in a marketing message
C) individuals who interact with a marketing communication and decode the message
D) the response of the audience to the message

Question 77

In the communications model presented in the textbook, feedback is

A) the process of transposing the objectives or goal of a marketing communication concept into an actual marketing communication piece, such as an advertisement, brochure, or sign
B) the process of interpreting the meaning conveyed in a marketing message
C) anything that interferes with the audience receiving the message
D) the response of the audience to the message

Question 78

In the communications model presented in the textbook, noise is

A) the process of transposing the objectives or goals of a marketing communication concept into an actual marketing communication piece, such as an advertisement, brochure, or sign
B) the process of interpreting the meaning conveyed in a marketing message
C) anything that interferes with the audience receiving the message
D) the response of the audience to the message

Question 79

In the AIDA concept, the first A stands for

A) advertising
B) attention
C) alternative
D) action

Question 80

In the AIDA concept, the last A stands for

A) advertising
B) attention
C) audience
D) action