Deck 4: Promotions Opportunity Analysis

Question 1

Reading a magazine article about a competitor is a form of secondary research.

Answer 1

True

Question 2

In examining target markets during a communications market analysis,the goal is to divide the total market into smaller market segments.

Answer 2

True

Question 3

In a communication market analysis,opportunities include an unfilled market niche or when the competition is doing a poor job of meeting the needs of some customers.

Answer 3

True

Question 4

Product positioning is the perception created in the consumer's mind regarding the nature of the competition and the external environment.

Question 5

When examining competitors for a communications market analysis,it is essential to identify domestic competitors,but not foreign or international competitors.

Question 6

In a communication market analysis,opportunities exist when the company has a distinct competence to offer customers or when a market niche is not being targeted with effective marketing communications.

Question 7

In conducting a communications market analysis,an examination of customers should include current company customers as well as potential new customers.

Question 8

Considering whether or not the competition is ignoring a set of customers is part of the search for opportunities in the communication market analysis.

Question 9

PetSmart operates a large number of retail outlets and has begun opening a series of pet hotels.

Question 10

Visiting a competitor's store to see how salespeople deal with customers is a form of secondary research.

Question 11

When conducting a communication market analysis,an examination of competitors is used to identify major suppliers for the firm.

Question 12

A promotions opportunity analysis is the process of identifying target audiences for a company's products and the communication strategies needed to reach these audiences.

Question 13

The first step of a promotions opportunity analysis is the creation of a communications budget.

Question 14

When searching for opportunities in a communication market analysis,a company's marketing team should examine all available data and information about the market.

Question 15

A communications market analysis is the process of discovering the company's strengths and weaknesses in the area of marketing communications,along with an analysis of the opportunities and threats in the firm's external environment.

Question 16

For many individuals,pets are now considered to be part of the family and as a result are treated like children.

Question 17

A communication market analysis examines five areas: competitors,opportunities,threats,target markets,and customers.

Question 18

In conducting a communications market analysis,an examination of customers involves understanding how people in each customer group think,why they buy,when they buy,where they buy,and how they evaluate a product after a purchase.

Question 19

One of the objectives of a promotions opportunity analysis is to identify the characteristics of each target audience so that precise marketing communications messages can be designed.

Question 20

Primary research involves searching the library for literature about the competition.

Question 21

The "what we can afford" method of budgeting for marketing communications is the most difficult form of communications budget that a company can prepare.

Question 22

The primary reason many companies use the percentage of sales method to prepare communications budget is its simplicity.

Question 23

In terms of developing a communications budget,the percentage of sales method is similar to the objective and task approach.

Question 24

Benchmark measures are often used to study whether or not a promotional campaign has been successful.

Question 25

In terms of the hierarchy of effects model,advertising expenditures during the awareness stage should generate higher sales revenue than advertising expenditures during the liking or preference stage.

Question 26

A threshold effect occurs when repeated exposures to a message cause consumers to lose interest in the company.

Question 27

In terms of the impact of communication expenditures on sales,using coupons,free samples,and other marketing tactics can help a good or service reach the threshold point of the sales curve sooner.

Question 28

The meet-the-competition method of budgeting is the most efficient form of developing a marketing communications budget.

Question 29

The primary goal of meet-the-competition method of developing a marketing communications budget is to prevent the loss of market share.

Question 30

The quality of products,prices charged,methods of distribution,image,and communication tactics create a product's position and,in turn,are affected by the product's position.

Question 31

Meet-the-competition method of developing a marketing communications budget is often used in highly competitive markets where rivalries between competitors are intense.

Question 32

Decay effects occur when a company's advertisements have become old or boring.

Question 33

A sales-response function curve shows when diminishing returns on advertising expenditures are present.

Question 34

A carryover effect means that an ad has been shown often enough so that the consumer will remember the company when it is time to buy the product.

Question 35

Managers have unrealistic expectations about a communications budget when they assume there is a direct relationship between expenditures on advertising and subsequent sales revenues.

Question 36

Communication objectives are derived from marketing objectives.

Question 37

A marginal analysis is used to portray how returns on additional advertising expenditures are related to incremental increases in sales.

Question 38

The percentage of sales method for communication budgeting tends to allocate funds for advertising in the opposite direction from what are needed.

Question 39

When a company introduces a new product under a strongly established brand name,the length of time to reach the threshold point where advertising is effective is normally shorter.

Question 40

Marketing objectives typically include target sales volume,market share,and profits.

Question 41

In using the payout planning method of developing a marketing communications budget,a higher percentage is allocated to marketing communications in the products early years and when the product is building brand awareness and brand equity.

Question 42

Quantitative methods of developing a marketing communications budget rely on computer models or simulations.

Question 43

Strategies are sweeping guidelines concerning the essence of the firm's short-term marketing activities and efforts.

Question 44

Consumers within a market segment tend to be homogeneous,which means they are similar.

Question 45

The payout planning method of developing a marketing communications budget establishes a ratio of advertising to sales or market share,then reduces the ratio as the product reaches the threshold level and diminishing returns begin occurring.

Question 46

Segmentation is an effective method to identify target markets.

Question 47

Company product manufacturers spend more money on media advertising,while service companies tend to spend more money on trade promotions.

Question 48

The "what we can afford" method of developing a marketing communications budget suggests that managers do not see the benefits of marketing.

Question 49

It is critical that the company's communications strategies mesh with its overall message and be carefully linked to opportunities identified by a communication market analysis.

Question 50

Many marketers believe that the objective and task method of developing marketing communications budgets is the best method of budgeting.

Question 51

A market segment is a general approach which differentiates products to all customers in a geographic area.

Question 52

Tactics are activities performed to support strategies.

Question 53

Coupons,bonus packs,and rebates would be considered forms of communication strategies.

Question 54

In terms of communication expenditures,the fastest growing media outlet is the Internet.

Question 55

A market segment must be financially viable to be useful.

Question 56

Payout planning is a form of consumer market segmentation.

Question 57

The two most general forms of market segments are current customers and potential customers.

Question 58

The United States leads the world in annual advertising expenditures.

Question 59

A holiday promotion featuring a company's products with a unique design is a form of marketing tactic.

Question 60

The objective and task method of budgeting marketing communications links dollars to specific marketing or communication goals.

Question 61

In terms of generation segmentation,seniors spend heavily on home mortgages,new furniture,new automobiles,and personal indulgence items.

Question 62

Geographic segmentation is especially useful for retailers that want to limit marketing communications expenditures to specific areas.

Question 63

Psychographics,or patterns that reflect attitudes,interests,and opinions,can be used for demographic market segmentation.

Question 64

For Generation Y,clothes,automobiles,and college are big ticket items.They also spend substantial amounts on televisions,stereo systems,and products that enhance their personal appearance.

Question 65

For younger boomers,the focus is on home and family.

Question 66

Marketing products that are purchased by both genders with different types of appeals are not usually successful.

Question 67

Psychographic information is often combined with demographic profiles to provide marketers with a more complete understanding of a target market.

Question 68

By the year 2010,most Americans will be nonwhite.

Question 69

When marketing to children,a company is using generations as the segmentation variable.

Question 70

Generation Y focuses on family and children and spends more on food,housing,transportation,and personal services than other generation segments.

Question 71

A recent study revealed that women have an impact on the spending habits of men.

Question 72

Selling to various ethnic groups is a form of demographic market segmentation.

Question 73

Geodemographic segmentation is a combination of census data with psychographic information.

Question 74

The priorities of the older boomers are on upgrading homes,ensuring education and independence of their children,buying luxury items,and taking more exotic vacations.

Question 75

Lower-level income families spend money primarily on luxury-type products.

Question 76

Ethnic consumers tend to be more brand loyal than their Caucasian counterparts.

Question 77

Successful ethnic marketing is more than just using ethnic media outlets.It requires understanding various ethnic groups and writing marketing communications that speak to specific cultures and values

Question 78

In ethic marketing it is important to present one overall message theme,but it should then be tailored to fit the needs and values of each ethnic group.

Question 79

Demographics,or population characteristics,can be used to identify market segments.

Question 80

Selling a product to women is a form of demographic market segmentation.