Deck 4: IMC Objectives and Budgets: Funding Strategies and Allocating Financial Resources

Question 1

What budget method is based on the marketing funnel or pyramid?

A) Historic trend lines
B) Predictive algorithm
C) Advertising ratios
D) Media affordability
E) Market share analytics

Answer 1

B

Question 2

When developing an IMC objective, each of the following factors must be included:

A) Time frame
B) Sales goals
C) Budget limits
D) Only a and c
E) All of the above

Answer 2

D

Question 3

Typically, which category receives the largest allocation for large national brands?

A) Television
B) Digital media
C) Magazines
D) Social media
E) Email marketing

Answer 3

A

Question 4

Which is the least effective method of budgeting?

A) Predictive algorithm
B) Market share analysis
C) Media planning model
D) Percentage of sales
E) None of the above

Question 5

The funds for IMC programs initially come from:

A) Advertising budgets
B) Corporate communications
C) Marketing department
D) Business development budgets
E) Sales department

Question 6

Advertising to sales ratios are indicators of the:

A) Industry averages
B) Competitive amounts
C) Optimum budget levels
D) Profit potential
E) Media prices

Question 7

The fixed amount per unit method of budgeting is good for companies, except:

A) Sales forecasting
B) Cash flow projections
C) IMC budgets
D) Only a and b
E) None of the above

Question 8

Discuss the three best methods for developing an IMC budget. State your reason for selecting each and support with specific benefits for brand development.

Question 9

How should a small business allocate its IMC funds among the different categories? Will they use the same allocation strategy as a large corporation?

Question 10

Why do we need to have IMC budgets? Who makes this decision? What is the source of these funds?