Deck 8: Integrated Marketing Communications

Question 1

_____ is a nonpaid form of nonpersonal communication about an organization and its products that is transmitted through a mass medium in the form of a news story.

A) Advertising
B) Sales promotion
C) Publicity
D) Direct marketing

Answer 1

C

Question 2

A paid form of nonpersonal communications about an organization, its products, or its activities that is transmitted through a mass medium to a target audience is called:

A) publicity.
B) advertising.
C) personal selling.
D) direct marketing.

Answer 2

B

Question 3

_____ refers to the combination and types of nonpersonal and personal communication that an organization puts forth during a specified period.

A) The promotion mix
B) The product mix
C) Segment communication
D) Reintermediation

Answer 3

A

Question 4

Marketers who seek to accomplish the strategic goals of marketing communications are:

A) less likely to build relationships with their organizations' channel members.
B) more likely to focus on generating awareness of their existing products rather than their new products.
C) more likely to build positive images for their brands and add meaning to their products.
D) less likely to use modern technology to stay close to their customers and identify prospects.

Question 5

_____ is a paid form of nonpersonal communications that uses media such as outdoor displays, car cards, or directories to reach out to a target audience.

A) Direct marketing
B) Advertising
C) Personal selling
D) Public relations

Question 6

Offering a product at a discounted price for a limited period of time in an attempt to induce customers to purchase the product is an example of _____.

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

Question 7

Retailers support manufacturers by:

A) featuring brands in their ads to attract buyers.
B) distributing coupons to them.
C) raising the prices of the manufacturers' products.
D) discouraging personal selling.

Question 8

If the product of a firm is a new complex technology that requires a great deal of explanation, the promotional mix will likely focus heavily on _____ so that potential buyers can have their questions answered.

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

Question 9

Kinglinks, a cereal manufacturer, wants to promote its new line of protein bars to its target audience using a nonpersonal form of communication. Kinglinks is least likely to rely on _____ as a means of communication.

A) advertising
B) sales promotion
C) public relations
D) direct marketing

Question 10

Which of the following strategic goals of marketing communication is most likely to stimulate trial purchases of new products and brands by customers?

A) Creating awareness
B) Retaining customers
C) Building positive images
D) Building channel relationships

Question 11

_____ is a form of direct marketing.

A) Personal selling
B) Advertising
C) Sales promotion
D) Publicity

Question 12

When retailers feature brands in their advertisements to attract buyers, they are indirectly or directly supporting _____.

A) manufacturers
B) vendors
C) wholesalers
D) consumers

Question 13

Which of the following best describes personal selling?

A) Personal selling is a paid form of communications about an organization, its products, or its activities that is transmitted through a mass medium.
B) Personal selling is a nonpaid form of communication that seeks to influence the attitudes, feelings, and opinions of stockholders, suppliers, employees, and political bodies about the organization.
C) Personal selling is face-to-face communication with potential buyers to inform them about and persuade them to buy an organization's product.
D) Personal selling is an activity that offers customers or resellers a direct inducement for purchasing a product.

Question 14

Which of the following statements regarding the strategic goals of marketing communications is most accurate?

A) Marketing communications designed to create awareness are especially important for existing products rather than new products.
B) Unlike producers, retail stores and other organizations do not use communications to build positive images.
C) An important goal of marketing communications is to build a relationship with the organization's channel members.
D) It costs far more to retain an existing customer than to attract a new customer.

Question 15

Marketers who seek to accomplish the strategic goals of marketing communications are:

A) more likely to attract new customers than retain existing customers.
B) less likely to build a relationship with an organization's channel members.
C) less likely to support efforts to create value for existing customers.
D) more likely to use modern technology to stay close to their customers and identify prospects.

Question 16

Which of the following statements is true of the strategic goal of retaining customers?

A) It costs far more to attract a new customer than to retain an existing customer.
B) Producers tend to seek out new customer segments instead of trying to retain old ones.
C) Interactive modes of communication do not assist marketers in increasing the value of their products.
D) Including salespeople in the supply chain can be obtrusive to retaining consumers and end-users.

Question 17

The marketing department of Dimension Inc. notices a decline in the buying patterns of its customers. The company's sales for the month of November were low in comparison to its sales for the previous months. To address this issue and add value to its products, Dimension decides to offer coupons for its products and schedule a sweepstake for Christmas. Which of the following elements of the promotional mix is Dimension using in this scenario?

A) Personal selling
B) Direct marketing
C) Sales promotion
D) Public relations

Question 18

Unis Technologies has introduced a new installation program that is the first of its kind and requires a great deal of complex technological understanding. Although it is being marketed as a user-friendly system, consumers are apprehensive about buying it. Unis Technologies' promotion mix will likely:

A) focus heavily on personal selling.
B) contain short-run incentives.
C) rely on sales promotion.
D) rely on advertising.

Question 19

Which of the following products is most likely to contain short-run incentives in its promotion mix?

A) An essential commodity
B) An established product witnessing a seasonal decline in sales
C) A product in the decline stage of the product life cycle
D) A product in the research and development stage of the product life cycle

Question 20

_____ is an activity or material that offers customers or resellers a direct inducement for purchasing a product.

A) Sales promotion
B) Advertising
C) Public relations
D) Personal selling

Question 21

The reinforcement of unfavorable ethnic or racial stereotypes through mass media is a legal concern directly associated with:

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

Question 22

The specialist viewpoint about the contribution of advertising to the economic health of a firm is primarily concerned with:

A) viewing advertising as a competitive weapon.
B) emphasizing the strategic aspects of the advertising function.
C) measuring the effects of specific ads or campaigns.
D) sales, profits, return on investment, and so forth.

Question 23

Which of the following viewpoints about the contribution of advertising to the economic health of a firm sees advertising as a competitive weapon and places emphasis on the strategic aspects of the advertising function?

A) The generalist viewpoint
B) The specialist viewpoint
C) The consumer attrition perspective
D) The marketing management approach

Question 24

Which of the following elements of the promotional mix is most likely to encourage materialism and excessive consumption?

A) Cold calling
B) Advertising
C) Public relations
D) Telemarketing

Question 25

Owing to recent failed campaigns, an established advertising agency is at the risk of reaching bankruptcy. The agency's top-management does not want to release such bad news just as yet as it hopes to recover losses soon. It therefore plans to orchestrate news events to present a false appearance of widespread support for the company's position. This is an example of a legal concern directly related to _____.

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

Question 26

Sales personnel failing to disclose product limitations or safety concerns is an ethical and legal concern associated with _____.

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

Question 27

_____ is the first stage a firm's marketing communication tools must encourage and allow a potential buyer to experience.

A) Conception
B) Conviction
C) Comprehension
D) Awareness

Question 28

Which of the following is a factor that is responsible for hindering the successful implementation of integrated marketing communication?

A) The lack of planning and budget constraints
B) The reluctance of some advertising agencies to broaden their role beyond advertising
C) The lack of vision and visibility
D) The destruction of creativity due to the broadening of scope

Question 29

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

A) Invading privacy through excessive telemarketing
B) Using unauthorized mailing lists to reach consumers
C) Reinforcing unfavorable ethnic or racial stereotypes
D) Failing to disclose product limitations or safety concerns

Question 30

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

A) Failing to disclose product limitations or safety concerns
B) Using unauthorized mailing lists to reach consumers
C) Encouraging materialism and excessive consumption
D) Using economic power to gain favorable publicity

Question 31

The generalist viewpoint about the contribution of advertising to the economic health of a firm is primarily concerned with:

A) measuring the effects of specific ads or campaigns.
B) emphasizing the strategic aspects of the advertising function.
C) measuring competitor strengths and weaknesses to devise strategic ideas.
D) sales, profits, return on investment, and so forth.

Question 32

Monarch Inc. manufactures Kuddles fabric softener. The company uses the image of a stuffed bear named Kuddles in television and print ads to promote its product. The bear, which is used for the purpose of sales promotion, also appears on T-shirts and on Monarch's official Website, an online interface that connects the company to its customers. Recently, the Kuddle bear appeared as a spokesperson for a children's literacy campaign sponsored by Kuddles fabric softener. In this scenario, Monarch is combining all the aspects of marketing communication to present a consistent message through _____.

A) functional department planning
B) traditional marketing communication
C) holistic marketing
D) integrated marketing communication

Question 33

_____ is an ethical and legal concern associated with public relations.

A) Failing to disclose product limitations or safety concerns
B) Using unauthorized mailing lists to reach consumers
C) Reinforcing unfavorable ethnic or racial stereotypes
D) Paying lip service to worthwhile causes

Question 34

Aster Inc. has developed a new digital three-tier food steamer. Though the product comes with a self-explanatory manual, the controls and the operation of the appliance have to be explained to the customer on a one-to-one basis, in great detail. Which of the following elements of the promotional mix is Aster most likely to rely on to sell its products?

A) Advertising
B) Public relations
C) Sales promotion
D) Personal selling

Question 35

_____ are personalized journals where people and organizations can keep a running dialogue.

A) Podcasts
B) Scraps
C) Buzzposts
D) Blogs

Question 36

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

A) Misrepresenting product health
B) Encouraging materialism and excessive consumption
C) Reinforcing unfavorable ethnic or racial stereotypes
D) Using unauthorized mailing lists to reach consumers

Question 37

_____ is an online 'pass-it-along' strategy that uses electronic media to generate brand messages throughout a wide network of buyers.

A) Viral marketing
B) Crowdsourcing
C) Microblogging
D) Scope marketing

Question 38

From a marketing management perspective, _____ is an important nonpersonal strategic device for maintaining a competitive advantage in the marketplace.

A) direct marketing
B) personal selling
C) advertising
D) telemarketing

Question 39

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

A) Paying slotting allowances to gain retail shelf space
B) Using consumer database information without consumers' authorization
C) Reinforcing unfavorable ethnic or racial stereotypes
D) Using economic power to gain favorable publicity

Question 40

Ursula, a conventional advertising manager, allocates a sizeable amount of funds toward advertising budgets. She is primarily concerned with the sales figures at the end of every quarter and calculates return on investment for her company's product portfolio. Based on these characteristics, which of the following approaches to advertising does Ursula follow?

A) The generalist viewpoint
B) The specialist viewpoint
C) The consumer attrition perspective
D) The marketing management approach

Question 41

In the context of determining how much to spend on advertising, which of the following statements is true about the per-unit expenditure approach?

A) This method is popular with higher-priced merchandise.
B) The basic philosophy underlying this approach is that advertising is defensive.
C) This approach is often used in conjunction with the research approach.
D) This approach views sales as a function of advertising, rather than advertising as a function of sales.

Question 42

Identify the correct statement about the per-unit expenditure approach of determining advertising expenses.

A) It is popular because it views sales as a function of advertising.
B) It considers a percentage figure and applies it to either past or future sales.
C) It attempts to determine the retail price by using production costs as a base.
D) It is often based on the premise that advertising is defensive.

Question 43

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

A) The per-unit expenditure
B) The all-you-can-afford approach
C) The competitive parity approach
D) The research approach

Question 44

The per-unit expenditure method of determining advertising budgets is best exemplified by:

A) a television manufacturer spending a fixed monetary amount on advertising for each unit of the product expected to be sold.
B) the manager of a clothing company estimating the advertising budget on the basis of research findings.
C) a grocer using the availability of current revenues to set the upper limit of the advertising budget.
D) the manager of an automobile manufacturing company taking a percentage figure and applying it to either past or future sales.

Question 45

As one of the marketing managers of a retail firm, Katie has to decide the size of the advertising budget for a hair care product, which was a star performer last year but has seen a considerable fall in its market shares recently. To address this problem, Katie decides to implement discounting strategies and focus on short-term profits. Which of the following is Katie's decision most likely to entail?

A) Cutting advertisement budgets to fund price promotions
B) Minimizing quarterly earnings
C) Viewing advertising as a nondiscretionary cost
D) Abstaining from raiding advertisement budgets to increase earnings

Question 46

Which of the following is a disadvantage of the all-you-can-afford approach to deciding advertising budget?

A) It assumes a connection between liquidity and advertising opportunity.
B) It views advertising as a function of sales, rather than sales as a function of advertising.
C) It does not limit its advertising outlays to the amount of available funds.
D) It sets no limits on the expenditures for advertising.

Question 47

Which of the following methods of determining the advertising budget views advertising as a function of sales, rather than sales as a function of advertising?

A) The per-unit expenditure approach
B) The research approach
C) The competitive parity approach
D) The task approach

Question 48

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

A) Practicing the art of discounting
B) Viewing advertising as a discretionary cost
C) Investing more in advertising and less in discounting
D) Raiding advertising budgets to increase earnings

Question 49

Which of the following approaches of determining advertising spending is often used in conjunction with other approaches?

A) The per-unit expenditure approach
B) The all-you-can-afford approach
C) The competitive parity approach
D) The percent of sales approach

Question 50

Which of the following is true of the research approach to determining the advertising budget?

A) It attempts to determine retail price by using production costs as a base.
B) It is a less rational approach to the expenditure decision when compared to other models.
C) It is generally more expensive when compared to other models.
D) It is less desirable as it limits advertising outlays to the amount of available funds.

Question 51

"Advertising is defensive" is the basic philosophy underlying the _____ approach to determining the advertising budget.

A) competitive parity
B) per-unit expenditure
C) all-you-can-afford
D) research

Question 52

With regard to the objectives of advertising, identify the most accurate statement.

A) Advertising is not justified on the basis of the revenue it generates.
B) The advertising outlays should be increased in every market and medium up to the point where the additional cost of gaining more business exceeds the incremental profits.
C) The ultimate goal of the business advertiser is to make sales and profits.
D) Advertising is not subject to the law of diminishing returns.

Question 53

With regard to determining how much to spend on advertising, which of the following observations is true of the percent-of-sales approach?

A) This approach views sales as a function of advertising, rather than advertising as a function of sales.
B) This approach attempts to determine the retail price by using production costs as a base.
C) The basic philosophy underlying this approach is that advertising is defensive.
D) This approach is popular in retailing.

Question 54

For any advertised product, it can be assumed that a point is eventually reached at which additional advertising produces little or no additional sales. This is proof that advertising is:

A) subject to the law of diminishing returns.
B) governed by the law of accelerating change.
C) non-measurable in the context of sales numbers and figures.
D) subject to the law of increasing returns.

Question 55

Identify the correct statement about the percent of sales method of determining advertising budget.

A) It is characterized by a set of complex calculations that lack simplicity.
B) It is based on the premise that advertising is needed to generate sales.
C) It attempts to determine retail prices by using production costs as a base.
D) It is most suitable for automobiles and appliances owing to its complicated framework.

Question 56

Which of the following is true of the advertising budget approach of per-unit expenditure?

A) It bases its advertising budgets on those of competitors or other members of the industry.
B) It is related to the percent of sales technique in which a fixed monetary amount is spent on advertising for each unit of a product expected to be sold.
C) It sets the advertising budget as a predetermined share of profits or financial resources.
D) It views sales as a function of advertising, rather than advertising as a function of sales.

Question 57

An advertising expenditure approach that initially formulates the advertising goals and defines the tasks to accomplish these goals is known as a(n) _____.

A) objective approach
B) task approach
C) percentage sale approach
D) functional approach

Question 58

Marketers who are aware that consistent investment spending is a key factor in advertising are:

A) more likely to cut advertising budgets to fund price promotions.
B) less likely to invest in advertising than discounting.
C) less likely to raid their advertising budgets to increase earnings.
D) more likely to view advertising as a discretionary cost.

Question 59

In which of the following approaches of determining advertising expenditure does the availability of current revenues set the upper limit of the advertising budget?

A) The per-unit expenditure approach
B) The all-you-can-afford approach
C) The competitive parity approach
D) The research approach

Question 60

A local hardware store owner is preparing an annual advertising budget for his firm. While doing so, he considers his competitors' budgets as benchmarks and uses them to make specific allocations to the promotion mix in his budget. He believes that other established hardware firms in the industry know what they are doing and have goals similar to his. Based on these factors, which of the following methods for establishing an advertising budget is he most likely to use?

A) The all-you-can-afford approach
B) The task approach
C) The competitive parity approach
D) The research approach

Question 61

The rate of exposure to an advertisement is known as:

A) average frequency.
B) reach intensity.
C) frame rate.
D) time to target market.

Question 62

Southern Elegance, a catering company, is planning to advertise its services to businesses in the area. It wants to use an advertising medium which is low in cost, geographically flexible, widely used, and has audience selectivity. Which of the following media is Southern Elegance most likely to use?

A) Direct mail
B) Outdoor
C) Television
D) Radio

Question 63

Venus Inc., a producer of high-end computer software, provides merchandising aids to its distributors in the form of interactive videos on the application of the software. It offers distribution allowances to resellers for putting up special counter displays of its exclusive range of products. It aims to accelerate the sales of its newly-launched product through these measures. In this scenario, Venus Inc. is employing a _____.

A) profile marketing strategy
B) push marketing strategy
C) pull marketing strategy
D) target marketing strategy

Question 64

One of the major objectives of trade promotions is to:

A) increase a manufacturer's inventories.
B) increase a retailer's inventories.
C) discourage advertising and consumer sales promotions.
D) reward a consumer for brand loyalty.

Question 65

The number of different targeted audience members exposed at least once to the advertiser's message within a predetermined time frame is known as:

A) "average frequency."
B) "reach."
C) "width."
D) "depth."

Question 66

Which of the following is a disadvantage of advertising through the Internet?

A) Short message life
B) High cost per exposure
C) Low information content
D) Lack of timeliness

Question 67

Which of the following is an advantage of using radio as an advertising medium?

A) It provides geographic flexibility.
B) It faces no competition from competing advertisements.
C) It appeals to the senses and provides a combination of sight, sound, and motion.
D) It gains more attention from an audience than television.

Question 68

Which of the following is true of the cost per thousand (CPM) measure of efficiency in the advertising industry?

A) It refers to the dollar cost of reaching thousand prospects.
B) Its chief disadvantage relates to its complexity.
C) It does not allow for a common base of comparison between differing media types.
D) It strongly discounts the positive effects theory.

Question 69

Distribution allowances are typical examples of _____.

A) push strategies
B) pull strategies
C) mixed promotional strategies
D) profile strategies

Question 70

Which of the following is typically aimed at distributors and retailers of products who make up the distribution channel?

A) Trade promotions
B) Rebates and refunds
C) Consumer promotions
D) Premiums

Question 71

Which of the following is a disadvantage of using direct mail as an advertising medium?

A) Lack of flexibility
B) Relatively high costs
C) Long closing periods
D) Nonselectivity of audience

Question 72

_____ involve aiming promotional efforts directly at customers to encourage them to ask the retailer for the product.

A) Profile marketing strategies
B) Pull marketing strategies
C) Parallel marketing strategies
D) Cloud marketing strategies

Question 73

Bonuses, meetings, and portfolios are examples of sales promotion activities primarily aimed at:

A) middlemen.
B) a company's own sales force.
C) retailers.
D) final consumers.

Question 74

Which of the following sales promotion activities is aimed at middlemen?

A) Bonuses
B) Coupons
C) Training materials
D) Price deals

Question 75

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

A) The per-unit expenditure approach is most popular in retailing.
B) The percent-of-sales method is popular with higher-priced merchandise.
C) The all-you-can-afford approach to budgeting is essentially a "followership" strategy.
D) The task approach is often used in conjunction with the research approach.

Question 76

In terms of the marketing communication process, translating a product idea or marketing message into an effective ad is called:

A) encoding.
B) allocating.
C) disseminating
D) positioning.

Question 77

Which of the following is an example of a sales promotion activity aimed at final consumers or users?

A) Training materials
B) Coupons
C) Merchandising aids
D) Portfolios

Question 78

Consumer promotions on a product are primarily meant to:

A) discourage customers to trade up.
B) encourage retailers to place more emphasis on selling the product.
C) induce customers to try the product.
D) increase a manufacturer's inventories and reduce a distributor's or retailer's inventories.

Question 79

Which of the following is an advantage of magazines over newspapers as an advertising medium?

A) Long closing periods
B) Intense coverage of local markets
C) High believability of printed word
D) Quality of reproduction

Question 80

Which of the following is a promotional activity aimed at a company's own sales force?

A) Price deals
B) Samples
C) Coupons
D) Bonuses