Deck 8: Marketing and Advertising Planning

Question 1

The advertising plan is a natural outgrowth of the marketing plan.

Answer 1

True
Explanation: The advertising plan is a natural outgrowth of the marketing plan and is prepared in much the same way.

Question 2

Lucas Inc.makes lubricating oil specifically for race cars and uses a positioning strategy based on use/application.

Answer 2

True
Explanation: Its positioning is based on how the product is used.

Question 3

A SWOT analysis for a fast-food restaurant would look at its competition,the workforce,and the economy.

Answer 3

True
Explanation: These would be potential external threats or opportunities.

Question 4

The integration triangle developed by Duncan and Moriarty,unplanned messages are say messages-what companies say about themselves.

Question 5

According to the advertising pyramid,the first task of advertising is to communicate enough information about the product to develop conviction.

Question 6

Relationship marketing is simpler than transactional marketing.

Question 7

The share of market/share of voice method is an attempt to link advertising dollars with product cost.

Question 8

By definition,marketing plans should be short and specific.

Question 9

In consumer goods marketing,increases in market share are closely related to increases in the marketing budgets.

Question 10

The first step in traditional top-down planning is to determine specific marketing objectives.

Question 11

One of the most popular method for setting advertising budgets is the percentage of sales method.

Question 12

The principal benefit of IMC is cost efficiency.

Question 13

To influence customers' perceptions,marketers must understand that every corporate activity has a message component.

Question 14

The newspaper that writes the story about the grand opening of an Applebee's restaurant is a stakeholder for that restaurant.

Question 15

Different stakeholders require different types of relationships.

Question 16

The advertising pyramid reflects the traditional mass-marketing monologue where the customer talks and the advertiser listens.

Question 17

The two types of marketing objectives are benefit and sales-targeting.

Question 18

Small firms with limited capital typically budget using the all available funds technique.

Question 19

All products have some position.

Question 20

Value is defined as the ratio of price to total benefits provided.

Question 21

Hops Grillhouse & Brewery,formerly known as Hops Restaurant/ Bar/Brewery,has unveiled a multimillion dollar brand strategy featuring a new menu intended to "capture consumer preferences for high quality,freshness,and grilled tastes,as well as an array of aromas,textures and price points." Its product mix of handcrafted beer and superior food is unlike any other offered by similar restaurant chains and describes its _____ strategy.

A) segmentation design
B) positioning
C) puffery
D) marketing mix
E) diversification

Question 22

The exhibition and trade show industry,after decades of fabulous growth,is experiencing business decline.The _____ for the Center for Exhibition Industry Research,reported,"The exhibition industry will face more competition for marketing dollars in the next five years than it has in the last 25 years."

A) situation analysis
B) advertising research strategy
C) random probability sampling
D) product audit
E) stakeholder audit

Question 23

Liechtenstein is a small European principality.In the minds of businesspeople,the country has the image of a "money laundering paradise." If you think of a country's name as if it were a brand,then how Liechtenstein is perceived by tourists and businesspeople indicates its:

A) positioning.
B) segmentation.
C) market differentiation.
D) marketing mix.
E) creativity.

Question 24

Which of the following is not a sales-target objective?

A) To increase sales volume by product line
B) To increase brand awareness or recognition
C) To increase gross profits by product line
D) To increase sales volume by distribution point.
E) To increase market share.

Question 25

_____ is the third section of the marketing plan and explains how the company plans to accomplish its marketing objectives.

A) The control process
B) Implementation
C) Stakeholder analysis
D) Marketing strategy
E) Marketing mix

Question 26

Assume a bakery that wholesales gourmet pies and cakes to upscale restaurant chains has developed marketing objectives.Which of the following is the BEST sales-target objective for the bakery to use?

A) To increase sales of pecan pies by 3 percent during the next six months
B) To have most of the staff attend a marketing seminar
C) To increase sales of cheesecake to the point where demand exceeds supply every week
D) To raise the net profit by 50 percent during the next three weeks
E) To build a Web site

Question 27

Within a timeframe of five to seven years,Orco Construction Supply,a specialty distributor of tools and hardware to framing and foundation contractor markets in California,Arizona,and Nevada,plans to hit a revenue mark of $500 million which will more than double its 2003 gross sales that are expected to approach $200 million.This would be an example of a (n)_____ objective.

A) sales-target
B) target market
C) need-satisfying
D) market tracking
E) environmental

Question 28

As the market leader of manufacturing bleach in the nation,Clorox must guard itself against challenges from detergent manufacturers who use bleach as a detergent additive.According to Jack Trout and Al Reis's Marketing Warfare,which type of strategy should Clorox use?

A) Protective warfare
B) Aggressive warfare
C) Defensive warfare
D) Bottom up warfare
E) Guerrilla warfare

Question 29

_____ objectives can be categorized as either communication objectives or sales-target objectives.

A) Environmental
B) Functional
C) Legal
D) Marketing
E) Consumer

Question 30

Baxter International,Inc.maintains manufacturing facilities around the world,one of which in North Carolina is the world's largest manufacturer of IV solutions in flexible containers.A (n)_____ would reveal to Baxter,changes in its environment that the company would need to address to maintain its standing as the leading producers of IV solutions in flexible containers.

A) situation analysis
B) advertising research strategy
C) ad tracking
D) product audit
E) stakeholder audit

Question 31

Black Hills Distributing has just completed a detailed,factual study of the distribution company's current situation and how it got there.Its next step in the development of its marketing plan is to:

A) decide which advertising media will best reach its target markets.
B) determine specific marketing objectives.
C) evaluate target market strategy.
D) establish an apt advertising strategy.
E) design marketing tactics.

Question 32

According to Trout and Reis,a business that uses _____ warfare,uses surprise and realizes that too much research wastes precious time.It also keeps up the pursuit once it has moved into uncontested markets.

A) offensive
B) strategic square
C) defensive
D) guerrilla
E) flanking

Question 33

Which of the following is a principle of a guerilla marketing warfare?

A) Participate only if you are a market leader.
B) Use surprise. Too much research often wastes precious time.
C) Be prepared to "bug out" at a moment's notice.
D) Introduce new products and services before the competition does.
E) Launch the attack on as narrow a front as possible, preferably with single products.

Question 34

Which of the following is NOT one of the distinct approaches used to develop a positioning strategy?

A) Cultural symbol
B) Product class
C) Product user
D) Marketing mix
E) Price/quality

Question 35

In November 2005,MTV World launched MTV Chi,a channel catering to Chinese teenagers who live in the United States.Chinese teenagers living in the U.S.represent MTV's:

A) marketing mix.
B) advertising mix.
C) product concept.
D) segmentation variable.
E) target market.

Question 36

The _____ for an organization assembles all the pertinent facts about the organization,the markets it serves,and its products,services,customers,and competition.

A) vision
B) marketing plan
C) advertising plan
D) marketing mix
E) competitive strategy

Question 37

Silly Putty has been around for years.It began as a gag gift sold in specialty stores alongside fake vomit.It has always avoided direct confrontation with other toy companies by finding a market that was small enough to defend itself and never really acted like a market leader.Which of the following strategies has Silly Putty successfully followed?

A) The strategic square
B) Flanking warfare
C) Defensive warfare
D) Bottom up
E) Guerrilla warfare

Question 38

Clos du Bois wine,for example,pursues an advertising campaign targeting the gay and lesbian community that has been remarkably successful.Its ad in gay publications features a wine cork emblazoned with the Gay Pride rainbow-an instantly recognizable symbol in the gay community.What approach to positioning is the winery using?

A) Product competitor
B) Product class
C) Product user
D) Marketing mix
E) Price/quality

Question 39

The traditional _____ plan has four elements--situation analysis,marketing objectives,marketing strategy,and tactics.

A) creative strategy
B) media strategy
C) top-down marketing
D) organizational
E) segmentation

Question 40

_____ refers to the place a brand occupies competitively in the minds of consumers.

A) Product segmentation
B) Product placement
C) Positioning
D) The perceptual pyramid
E) The strategic map

Question 41

The University of Phoenix has been described as more like an office building or industrial park than a place of higher education.It has no library building,and its bookstore only sells textbooks.The university is a subsidiary of a for-profit company called the Apollo Group.It proudly billed itself as "the largest private university in the United States." What approach to positioning is the university using?

A) Cultural symbol
B) Product class
C) Product user
D) Marketing mix
E) Price/quality

Question 42

Jerome stopped at Brewster's and bought a chocolate ice cream cone.As he was exiting the store,the cone developed a leak and dripped ice cream all over his expensive suit.At that point,he swore to never buy Brewster's ice cream ever again.In terms of the messages that stakeholders receive,Jerome received a (n)_____ message.

A) planned
B) functional
C) unplanned
D) product
E) service

Question 43

When you phone to buy tickets for a visit to the Biltmore Estate in North Carolina,the telemarketers are friendly and helpful.Before the conversation ends,the telemarketers ask customers to call if they encounter any problems.What level of relationship does this exemplify?

A) Accountable relationship
B) Basic transactional
C) Reactive relationship
D) Partnership
E) Proactive relationship

Question 44

Randall Grahm,the owner of Bonny Doon Vineyards,made a name for his wines by injecting an irreverent sense of humor into everything associated with the winery.One of the _____ he used was to host a black mask dinner during the fall to celebrate "the death of wine corks" when his company decided to use screw tops.

A) marketing objectives
B) control mechanisms
C) action programs
D) strategic postures
E) organizational structures

Question 45

Smaller companies typically use a bottom-up marketing format plan because:

A) handling day-to-day problems leaves little time for formal planning.
B) they don't need to create a competitive advantage.
C) long-term strategies are needed to keep a business focused on the future.
D) failure to have a mission is one of the major reasons for small-business failures.
E) it allows more time for the development of a customer relationship strategy.

Question 46

_____ is the ratio of perceived benefits to the price of the product in a consumer study.

A) Net worth
B) Contribution margin
C) ROI
D) Retained earning
E) Value

Question 47

Stakeholders receive a (n)_____ message when a Six Flags amusement park discovers a lost child and cares for that child until she can be reunited with the parents.

A) planned messages
B) functional messages
C) unplanned messages
D) product messages
E) service messages

Question 48

_____ involves creating,maintaining,and enhancing long-term relationships with customers and other stakeholders that result in exchanges of information and other items of mutual value.

A) Market exchange
B) Strategic collaboration
C) Relationship marketing
D) Creative partnering
E) Transactional marketing

Question 49

Charlotte purchased a book on how to crochet from a Web site.After purchasing the book,she was pleased to receive regular e-mails from the site,offering her other products that she may be interested in.The e-mail also informed her about current trends in yarn and offered troubleshooting advice as well as free patterns.The relationship between Charlotte and the Web site is at what level?

A) Reactive relationship
B) Basic transactional relationship
C) Accountable relationship
D) Proactive relationship
E) Partnership

Question 50

Excedrin has marketed a variety of pain relievers designed to alleviate specific conditions such as migraine,stress-induced headaches,and sinus headaches,and targeted people who suffer from these kinds of headaches.According to Ernest Martin,what kind of positioning strategy is Excedrin using with these new products?

A) Product attributes
B) Use/application
C) Product class
D) Cultural symbol
E) Product competitor

Question 51

The Framework Company refurbishes antique French purses with silk,satin,and jade trimmings.The bags are its only product.They sell for about $875.They are available only in Houston and New York.They are promoted through cooperative advertising with an exclusive distributor and by word-of-mouth advertising.This is a brief description of Framework's:

A) advertising tracking.
B) marketing mix.
C) marketing objectives.
D) organizational strategy.
E) product sampling.

Question 52

Clos du Bois wine pursues an advertising campaign that targets the gay and lesbian community.Its ad in gay publications features a wine cork emblazoned with the Gay Pride rainbow.The gay publications are examples of the _____ for Clos du Bois wine.

A) reference groups
B) target audiences
C) target markets
D) stakeholders
E) environmental curators

Question 53

_____ determine the specific short-term actions to be taken,internally and externally,by whom,and when.

A) Corporate objectives
B) Marketing tactics
C) Organizational structures
D) Environmental objectives
E) Strategic postures

Question 54

While other Florida cities are trying to prevent college students from invading their beaches,the Panama City Beach Convention & Visitors Bureau is tempting college students from the U.S.and Canada to hit its beaches for Spring Break 2006.It is positioning itself as the spring break destination for U.S.college students.What approach to positioning is being used in this example?

A) Cultural symbol
B) Product class
C) Product user
D) Marketing mix
E) Price/quality

Question 55

The price of a model vintage wine,the use of Federal Express delivery by Lands' End,and the workmanship found in a finely crafted Persian rug are all examples of which type of company/brand-related messages that are sent to company stakeholders?

A) Planned messages
B) Functional messages
C) Unplanned messages
D) Product messages
E) Service messages

Question 56

Entrepreneur Chrissy Azzaro is founder of My-Tee,a Los Angeles fashion company.Besides its signature product,the My-Tee T-shirt,the company makes its own line of skirts,shoes,tank tops,and accessories that retail from $32 to $78.Publicists and buyers browse My-Tee's trendy showroom in Los Angeles for the latest trends and clothing lines.The company's promotional strategy relies on publicity.Celebrities from Hilary Duff to Courtney Cox have been photographed in My-Tee clothing.This exposure helped the company rack up $1 million in sales last year.This is a brief description of My-Tee's:

A) advertising tracking.
B) marketing mix.
C) marketing objectives.
D) organizational strategy.
E) marketing research.

Question 57

Roy Harold purchased a new washer/dryer for his apartment.Shortly after the appliances had been installed,a store representative called Harold and asked if he was satisfied with the washer/dryer and how they were installed.The store representative also asked Harold to call if he had any further needs for appliances.This is an example of which relationship level?

A) Reactive relationship
B) Basic transactional relationship
C) Accountable relationship
D) Proactive relationship
E) Partnership

Question 58

The full-page ad that Delta Airlines ran in Fast Company magazine is an example of which type of company/brand-related messages that are sent to company stakeholders?

A) Planned messages
B) Inadvertent messages
C) Random messages
D) Dissonance messages
E) Service messages

Question 59

IMC is what makes relationship marketing possible.What do the letters IMC stand for?

A) Internal management centers
B) Internal management of customers
C) Interdependent marketing of commodities
D) Integrated marketing communications
E) Independent manufacture ring conglomerate

Question 60

Which of the following statements about IMC is NOT true?

A) Many believe that IMC is what makes relationship marketing possible.
B) IMC is both a concept and a process.
C) Many companies initially take a narrow, inside-out view of IMC.
D) Whether a company takes a narrow view or a broad view of IMC depends to a great extent on its corporate culture.
E) A principle benefit of IMC is that each element of communication mix is autonomous.

Question 61

What is the greatest shortcoming of the percentage of sales method for setting the advertising budget?

A) The percentage of sales method is too expensive to be used by small business owners.
B) The basis for setting the percentage is often determined arbitrarily.
C) The percentage of sales method assumes a certain number of dollars are needed to sell a certain number of units.
D) The percentage of sales method encourages top management to think of growth in terms of percentages.
E) The percentage of sales method assumes the marketplace will be dynamic.

Question 62

According to the advertising pyramid,the second task of advertising is to:

A) communicate enough information about a product and its features to persuade a certain number of people to believe in its value.
B) communicate enough information about the product so that some percentage of the aware group recognizes the product.
C) acquaint some portion of the market with a product's existence.
D) persuade customers to buy larger sizes or multiple units.
E) accelerate sales by implementing a variety of sales promotions.

Question 63

All of the following statements are true about the percentage of sales method,EXCEPT:

A) it is inexpensive to use.
B) it relates sales to revenue.
C) it violates a basic marketing principle.
D) it is the simplest to use of all budgeting methods.
E) it determined as per the uniform industry standard.

Question 64

As Lindsey was pulling out of a mall entrance,her car was almost hit by a Littleton ice cream truck.The driver didn't notice her car or the trouble she had avoiding the accident.At that point,she swore to never buy Littleton ice cream again.In terms of the messages that stakeholders receive,Lindsey received a (n)_____ message.

A) planned
B) functional
C) unplanned
D) product
E) service

Question 65

The Kite Shack sells kites at Panama City Beach every summer.The proprietor advertises in tourist magazines and local newspapers.To determine the advertising message,he or she typically assigns 3 percent of the previous summer's sales to advertising.Which method of allocating funds is being used?

A) Percentage of sales method
B) Share-of-market method
C) Empirical fund method
D) Objective/task method
E) Competitive parity method

Question 66

Ford's Wood Elixir makes everything you need to strip and restore antique wooden furniture.It has developed a new all-natural cleaner that is effective and easy to use.The product will be called Nature's Way,and it will be introduced in the marketplace in December.If Ford's Wood Elixir follows the common practice for firms with a new product,which method of allocating funds will it most likely use?

A) Percentage-of-sales method
B) Self-defense method
C) Objective/task method
D) Share-of-market/share-of-voice method
E) Budget buildup method

Question 67

Which of the following is NOT an element of the creative mix?

A) The advertising budget
B) The target audience
C) The advertising message
D) The product concept
E) The communications media

Question 68

The "bundle of values" the advertiser presents to the consumer is referred to as the:

A) strategic message.
B) promotional message.
C) creative mix.
D) product mix.
E) product concept.

Question 69

Which method used by advertisers for the allocation of advertising funds violates the marketing principle that marketing activities are supposed to stimulate demand,not occur as a result of sales?

A) Percentage-of-sales method
B) Budget breakdown method
C) Objective/task method
D) Share-of-market/share-of-voice method
E) Budget buildup method

Question 70

Mycogen Seeds has announced details of its Over-the-Top program for 2005-06.This unique program offers cash rebates to customers to motivate them to visit the store or buy the product.The purpose of this rebate is to create:

A) action.
B) comprehension.
C) brand loyalty.
D) conviction.
E) awareness.

Question 71

_____ is an attempt to link advertising dollars with sales objectives.It holds that a company's best chance of maintaining its share of market is to keep a share of advertising (voice)somewhat ahead of its market share.

A) Percentage-of-sales method
B) Self-defense method
C) Objective/task method
D) Share of market/share of voice method
E) Budget buildup method

Question 72

Research about the relationship of advertising to sales and profits is far from perfect.However,based on it,several research generalizations are possible.Which of the following statements is NOT consistent with this research?

A) Sales will increase if there is additional advertising.
B) There will be no sales if there is no advertising.
C) There are saturation limits above which no amount of advertising can push sales.
D) Increases in market share are more directly related to increases in the marketing budget than to price reductions.
E) Sales response to advertising is spread out over a long period of time.

Question 73

Think about the various sources of brand messages.Which message form is considered to be a confirm message because that is what others say and confirm about what the company says or does?

A) Planned message
B) Functional message
C) Unplanned message
D) Product message
E) Service message

Question 74

Which of the following statements is NOT true,according to the integration triangle?

A) Product and service messages are do messages.
B) Planned messages are say messages.
C) Unplanned messages are confirm messages.
D) Perceptions are created from brand messages.
E) Say, confirm and do messages are autonomous.

Question 75

Which of the following statements about the relationship of advertising to sales and profits is true?

A) Sales will remain constant if there is additional advertising.
B) There will be no sales if there is no advertising.
C) The durability of advertising is long-term.
D) Increases in profitability are closely related to increases in the marketing budget
E) There is no saturation level for advertising.

Question 76

The share-of-market/share-of-voice method:

A) is determined by allocating a percentage of last year's sales.
B) rely too heavily on the budget buildup method.
C) maintain a lower percentage of media exposure than its competitors.
D) is often used for new product introductions.
E) is determined by the percentage applied to profit

Question 77

What should be the advertising manager's first step when he or she is asked to develop an advertising plan?

A) Select the target audience.
B) Develop marketing objectives.
C) Determine the most cost-effective media.
D) Establish an advertising budget.
E) Review the company's marketing plan.

Question 78

Mood-lites are colored light bulbs that were developed according to research on how colors affect moods.In allocating funds for advertising the new light bulbs,its manufacturer decided to budget 5 percent of last year's sales for advertising expenditures.Which allocation method was the manufacturer using?

A) Percentage-of-sales method
B) Self-defense method
C) Objective/task method
D) Share-of-market/share-of-voice method
E) Budget buildup method

Question 79

The advertising _____ declares where the advertiser wants to be with respect to consumer awareness,attitude,and preference,and the advertising _____ describes how to get there.

A) tactic; operational plan
B) strategy; research
C) objective; strategy
D) tactic; agency
E) mission; boutique

Question 80

Mood-lites are colored light bulbs that were developed according to research on how colors affect moods.According to the advertising pyramid,the first task of the original advertising for Mood-lites is to create:

A) awareness.
B) action.
C) conviction.
D) brand loyalty.
E) intent to buy.