Deck 13: Business Marketing Comm: Advertising and Sales Promotion

Question 1

The five primary areas for evaluating advertising are profits generated, markets, motives, messages, and results.

Answer 1

False

Question 2

The planning and budgeting for trade shows must focus on specific objectives to be accomplished.

Answer 2

True

Question 3

If a business marketer's product has applications only within a few industries, horizontal publications are a logical choice.

Answer 3

False

Question 4

Generally, social media can augment an offering to expand the value proposition, thereby changing what people buy and how they relate to a brand

Question 5

Vertical publications are directed at a specific task, technology, or function whatever the industry.

Question 6

The Internet is more than just an advertising medium for business marketers because it can also help them create value for customers by customizing messages and helping customers search for products.

Question 7

For many purchasing decisions, advertising alone cannot create product preference.

Question 8

The organizational buyer may read every word of the ad copy, and find a meaning in it quite opposite from that intended by the advertiser.

Question 9

Lead efficiency is defined as the number of sales leads obtained at the show divided by the total number of show visitors with definite plans to buy the exhibitor's product or one similar to it.

Question 10

Organizational buyers tend to retain messages that clash with their attitudes, needs, and beliefs.

Question 11

Most industrial firms spend roughly the same amount of dollars on advertising as they do on personal selling.

Question 12

Recent research indicates that follow-up sales efforts generate higher sales productivity when customers have already seen a company's products at a trade show.

Question 13

The rules of thumb approach to setting advertising budgets is not always effective, but it is commonly used because it is easy to implement and managers are familiar with it.

Question 14

Although certain mechanical aspects help create awareness and interest in the advertisement, its ultimate success will depend on how well the message is targeted to the benefits sought by the buying influential.

Question 15

Business-to-business advertising objectives are usually stated in terms of a specific sales goal.

Question 16

From the business marketer's perspective, the cost-per-thousand calculations for various media options should be based on circulation to the target audience, not the total audience.

Question 17

Even though a publication has a high cost-per-thousand basis, it may in fact be a cost-effective alternative due to a low rate of wasted circulation.

Question 18

Internet marketing costs far less than direct mail marketing.

Question 19

Measuring advertising effectiveness means assessing advertising's impact on sales.

Question 20

Circulation is the most important criterion in the selection of publications.

Question 21

A microsite is a specialized Web page a visitor lands on after clicking an online ad or e-mail.

Question 22

Measuring industrial advertising effectiveness involves an assessment of advertising's impact on:

A)sales variables.
B)profit variables.
C)intervening variables in the buyer's purchase decision process.
D)all of the answer choices.
E)both profit variables and intervening variables in the buyer's purchase decision process.

Question 23

A creative strategy statement provides guidelines for the company and advertising agency on how to position the product in the marketplace.

Question 24

Important social media to be considered by B2B marketers would be focused on:

A)discussion forums
B)blogs.
C)social networks.
D)wiki
E)all of the answer choices.

Question 25

Concerning business-to-business advertising media, _____ publications are directed at a specific industry and may be read by everyone from foreman to company president.

A)common
B)specialty
C)horizontal
D)vertical
E)target

Question 26

Advertising objectives are typically stated in terms of:

A)sales goals.
B)profit goals.
C)cost constraints.
D)communication goals.
E)market share goals.

Question 27

​Advertising affects word-of-mouth communications and plays an important role in buyer decision making.

Question 28

Social media:

A)are more effective than traditional media at reaching hard-to-reach prospects.
B)are typically less expensive that print media.
C)facilitate targeted, personalized contact across the customer experience landscape.
D)enhance the impact of trade promotions.
E)all of the answer choices.

Question 29

In formulating advertising messages, the business marketer should:

A)emphasize product and technical specifications.
B)identify general buying criteria of importance to a range of buying center members.
C)use color and illustrations sparingly.
D)both emphasize product and technical specifications and identify general buying criteria of importance to a range of buying center members.
E)none of the answer choices.

Question 30

Concerning business-to-business advertising media, _____ publications are directed at a specific task, technology, or function, whatever the industry.

A)common
B)specialty
C)horizontal
D)vertical
E)target

Question 31

A useful method for determining the size of the business or industrial advertising budget is:

A)the objective-task method.
B)the percentage of sales approach.
C)the competitive parity approach.
D)the affordable approach.
E)the trend line approach.

Question 32

In evaluating the effectiveness of a business-to-business advertising program, the manager should center on:

A)changes in the target market's purchase rate.
B)changes in the target market's product awareness.
C)changes in the target market's product knowledge.
D)both changes in the target market's product awareness and changes in the target market's product knowledge.
E)none of the answer choices.

Question 33

____ provides the guidelines for company and advertising agency personnel on how the product is to be "positioned" in the marketplace.

A)The creative strategy statement
B)The objective-task concept
C)Product position
D)Controlled circulation
E)Advertising objectives

Question 34

Concerning the allocation of the publication budget among various journals,

A)the cost-per-thousand calculation should be based on circulation to the total audience.
B)the cost-per-thousand calculation should be based on circulation to the target audience.
C)the comparison of alternative journals can readily be made by examining their actual page rates (cost-per-page).
D)the comparison of alternative journals can readily be made by examining total circulation.
E)publications with low circulation levels should be avoided.

Question 35

Because budgeting is so important to advertising effectiveness, managers must closely follow rules of thumb.

Question 36

In designing advertising strategy, the business marketer should first:

A)determine the size of the advertising budget.
B)select appropriate media sources.
C)determine advertising objectives.
D)develop a series of responsive messages.
E)forecast sales.

Question 37

Concerning business-to-business advertising media, the publications Purchasing, Advertising Age, and Materials Handling Engineering would be classified as a:

A)specialty publication.
B)target publication.
C)horizontal publication.
D)vertical publication.
E)common publication.

Question 38

Which method for determining advertising expenditures focuses on the communications effects of advertising, not on the sales effects?

A)affordable
B)percent-of-sales
C)match competitors
D)objective-task
E)arbitrary

Question 39

Requester publications sell subscriptions to selected readers.

Question 40

The most successful advertisements directed at business customers tend to focus on:

A)the physical product.
B)product attributes.
C)product benefits.
D)indirect appeals to action.
E)the price of the advertised product.

Question 41

Which of the following are advantages of the objective-task method of setting advertising budgets?

A)Advertising is determinant of results, not a consequence.
B)Easy to use and familiar to management.
C)Must use instinct for identifying proper level of expenditures to reach goals.
D)All of the answer choices.
E)Both advertising is determinant of results, not a consequence and must use instinct for identifying proper level of expenditures to reach goals.

Question 42

In deciding which trade shows to attend, some business marketing strategists turn to reports published by Exhibit Surveys, Inc., a company that surveys trade show audiences. One useful measure that they provide isolates the percentage of the show audience that has decision authority for the types of products being exhibited. This is called:

A)Surveys of Industrial Purchasing Power.
B)Controlled Audience Index.
C)Total Buying Plans.
D)Buying Power Index.
E)Net Buying Influences.

Question 43

The important elements of perception include:

A)attention.
B)interpretation.
C)benefits.
D)both attention and interpretation.
E)both interpretation and benefits.

Question 44

An advertising evaluation program would include an assessment of:

A)target markets.
B)media and messages.
C)overall results.
D)buying motives.
E)all of the answer choices.

Question 45

The formula for calculating adverting cost is:

A)Cost per thousand = Cost per page / Circulation in thousands.
B)Cost per thousand = Circulation in thousands / Cost per page.
C)Cost per page = Cost per thousands / Circulation in thousands.
D)Cost per page = Circulation in thousands / Cost per thousands

Question 46

Characteristics of effective B2B print ads include:

A)the use of a "rational approach."
B)a clear description of the product and its benefits.
C)a detailed listing of most pricing considerations.
D)All of the answer choices.
E)both the use of a "rational approach." and a clear description of the product and its benefits.

Question 47

The Objective-Task method addresses the major problem of the rule-of-thumb methods by applying funds to accomplish a specific goal:

A)so that advertising is a determinant of those results.
B)so that advertising is a consequence of those results.
C)because the manager does not have to have some knowledge or instinct for the proper relationship between expenditure level and communication response.
D)none of the answer choices.

Question 48

An e-mail list can be created by:

A)offering an e-mail alert service.
B)asking for e-mail addresses in direct mail campaigns.
C)collecting e-mail addresses at trade shows.
D)all of the answer choices.
E)both asking for e-mail addresses in direct mail campaigns and collecting e-mail addresses at trade shows.

Question 49

In deciding which trade shows to attend, some business marketing strategists turn to reports published by Exhibit Surveys, Inc., a company that surveys trade show audiences. One useful tool that they provide measures the percentage of the audience planning to buy the products being exhibited within the next 12 months. This is called:

A)Surveys of Industry Purchasing Power.
B)Controlled Audience Index.
C)Total Buying Plans.
D)Buying Power Index.
E)Net Buying Influences.

Question 50

An advertising objective must:

A)specify what is to be achieved and when.
B)be measurable.
C)be realistic.
D)all of the answer choices.
E)both specify what is to be achieved and when and be realistic.

Question 51

Direct mail is commonly used for:

A)corporate image promotion.
B)sales force support.
C)distribution channel communication.
D)all of the answer choices.
E)both corporate image promotion and sales force support.

Question 52

Horizontal publications are more effective for business marketers when:

A)their product has applications in only a few industries.
B)many industries are potential users
C)well-defined functions are the principal buying influencers.
D)All of the answer choices.
E)both many industries are potential users and well-defined functions are the principal buying influencers.

Question 53

Which of the following statements regarding direct mail is incorrect?

A)Direct mail is efficient when compared to other media.
B)Direct mail is a viable medium when potential buyers cannot be clearly identified.
C)A direct mail advertisement typically gains the full attention of the reader.
D)Direct mail can accomplish all of the major advertising functions.

Question 54

The cost of reaching a prospect at a trade show is approximately:

A)$50
B)$150
C)$250
D)$500
E)$750

Question 55

The final, and critical, step for managing Business-to-Business advertising is:

A)integrating it with other business components.
B)formulating advertising objectives.
C)evaluating and selecting media.
D)evaluating the effectiveness of the campaign.

Question 56

A model of "lead efficiency" is calibrated using the firm's:

A)historical sales lead and lead conversion-to-sale data.
B)total number of sales booths at past shows.
C)gross margin.
D)all of the answer choices.
E)both historical sales lead and lead conversion-to-sale data and gross margin.

Question 57

Which of the following statements is (are) true about the Internet's impact on marketing communications?

A)Changed from a one-way to a two-way process.
B)Customization of advertising messages.
C)Improved customer service.
D)All of the answer choices.
E)Both changed from a one-way to a two-way process and customization of advertising messages.

Question 58

Which of the following statements regarding advertising expenditures is incorrect?

A)Because advertising is a relatively large part of the total marketing budget for business firms, managers tend to follow simple rules of thumb (e.g., allocate 1% of sales to advertising).
B)The fundamental problem with percentage-of-sales rules is that they implicitly make advertising a consequence rather than a determinant of sales and profits.
C)Percentage-of-sales rules suggest that the business advertiser reduce advertising when sales volumes decline.
D)The decision to "match the competition's level of advertising spending" is an example of a rule of thumb philosophy.

Question 59

An evaluation of an advertising campaign will usually measure:

A)awareness.
B)recall.
C)motivation.
D)all of the answer choices.
E)both awareness and recall.

Question 60

Which of the following statements concerning trade shows is(are) accurate?

A)The cost of reaching a prospect at a trade show less than the cost of making a personal sales call.
B)Over 83 percent of all trade show visitors have some buying authority.
C)The average company participates in 45 trade shows per year.
D)All of the answer choices.
E)Both the cost of reaching a prospect at a trade show less than the cost of making a personal sales call and over 83 percent of all trade show visitors have some buying authority.

Question 61

Describe the steps that a business marketing manager should follow in developing an appropriate advertising message for a new high-speed packaging system targeted for the food industry.

Question 62

Interactive marketing, or the use of the Internet, e-mail, and web sites in advertising, is becoming more common. Compare and contrast direct mail with interactive marketing as direct marketing tools. What factors should business marketers consider when deciding on the mix of direct marketing approaches to use?

Question 63

The initial stage of developing the business-to-business advertising program entails setting____________________and defining the____________________.

Question 64

Which of the following factors should be considered when planning an effective trade show communications strategy?

A)The focus of the marketing efforts.
B)The appropriate show mix.
C)The functions performed by the trade show in the total marketing communications program.
D)All of the answer choices.
E)both the focus of the marketing efforts and the functions performed by the trade show in the total marketing communications program.

Question 65

For most business marketers, the amount of the promotional budget spent on personal selling far exceeds expenditures on advertising. In addition, it is nearly impossible to evaluate the impact of advertising on industrial sales. Given this situation, should business marketers advertise, and how can they justify advertising if they cannot measure its impact on sales?

Question 66

The objective-task method for budgeting ad expenditures consists of evaluating the tasks advertising will perform, analyzing the costs, and summing up the____________________to arrive at a final budget.

Question 67

Indices of trade show performance include:

A)attraction.
B)contact.
C)conversion efficiency.
D)All of the answer choices.
E)both contact and conversion efficiency.

Question 68

Which of the following represent common trade-show objectives?

A)Identification of decision influencers.
B)Handling current customer problems.
C)Providing product, service, and company information.
D)All of the answer choices.
E)Both identification of decision influencers and providing product, service, and company information.

Question 69

The benefits of having a trade show exhibit to business marketers include:

A)the ability to communicate with a large and interested audience.
B)free publicity.
C)the generation of sales leads.
D)All of the answer choices.
E)both the ability to communicate with a large and interested audience and the generation of sales leads.

Question 70

Dell Computer has been developing closer relationships with its corporate customers by setting up Web sites on internal company networks. The system enables individual employees at customer locations to easily order from a pre-approved line of Dell Computers. Discuss how Dell might use direct e-mail advertising to reach employees at these companies and reinforce its Web strategy.

Question 71

The communications process attempts to take potential buyers sequentially from unawareness of a product to____________________, to brand preference, to conviction that a particular purchase will fulfill their requirements, and ultimately to____________________.

Question 72

Many trade publications are____________________publications, meaning that they offer free subscriptions to selected readers.

Question 73

Possis Medical invests a significant proportion of their promotional budget in trade shows. Management, however, wonders whether they are getting the proper return on this sizeable investment. Propose a set of guidelines that the firm might use in designing a more effective trade show communications strategy and in evaluating trade show performance.

Question 74

The number of sales leads obtained at a trade show divided by the total number of show visitors with definite plans to buy the exhibitor's product or one similar to it describes the concept of____________________.

Question 75

Compare and contrast the rules of thumb and objective task method of setting advertising budgets. Describe the process that business marketers should use that decide to use the objective task method.

Question 76

Recent research has indicated that the indirect communication effects of advertising include:

A)increased word-of-mouth communications.
B)increased overall company reputation.
C)improved logistics performance.
D)All of the answer choices.
E)both increased word-of-mouth communications and increased overall company reputation.

Question 77

The____________________statement provides guidelines for the company and advertising agency on how to position the product in the marketplace.

Question 78

Explain why a full-page ad by Digital in the Wall Street Journal might be carefully read by a production manager at Pillsbury but quickly passed over by the purchasing manager across the hall.