Deck 4: The IMC Planning Process

Question 1

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

Answer 1

False

Question 2

Developing an integrated marketing communications plan requires the analysis of the three C's: customers, competitors, and communications.

Answer 2

True

Question 3

A market segment must be financially viable to be useful.

Answer 3

True

Question 4

A market segment is a set of consumers or businesses with distinct characteristics.

Question 5

The IMC planning process begins with an analysis of a company's context, which is a review of their customers, target market, and product positioning.

Question 6

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

Question 7

Developing an integrated marketing communications plan requires an understanding of the firm's current context, which includes its target market, product positioning, and communications objectives.

Question 8

Target markets exist in two areas: current customers and potential customers.

Question 9

In the IMC planning process, an examination of competitors is used to identify major suppliers for the firm.

Question 10

Companies selling pet-related products have changed as consumer attitudes toward pet ownership has evolved.

Question 11

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

Question 12

After the analysis of a company's context is completed, the marketing department should examine the firm's target market and product positioning.

Question 13

A communications analysis involves looking at communications by the company itself, by competitors, and industry communications.

Question 14

When conducting an analysis of customers, the marketing team should examine competitors' customers as well as current, former, and potential customers.

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

When examining competitors for the IMC planning process, it is essential to identify domestic competitors, but not foreign or international competitors.

Question 20

Market segmentation identifies specific groups of consumers or businesses based on needs, attitudes, and interests.

Question 21

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 22

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

Question 23

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

Question 24

Benefit segmentation is a combination of demographic and psychographic information.

Question 25

The increase in the number of minorities and their buying power represents both an opportunity and a threat for companies.

Question 26

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

Question 27

Geodemographics can be used to segment business markets as well as consumer markets.

Question 28

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

Question 29

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

Question 30

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

Question 31

The NAICS code helps in geodemographic segmentation programs.

Question 32

One method of business-to-business market segmentation utilizes company size as a segmentation variable.

Question 33

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

Question 34

The NAICS coding system allows marketing teams to examine specific industries.

Question 35

Benefit segmentation is more valuable when it can be combined with demographic and psychographic information.

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

Product usage is not normally used as a method of business-to-business market segmentation.

Question 41

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

Question 42

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

Question 43

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

Question 44

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

Question 45

Communication objectives are derived from marketing objectives.

Question 46

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 47

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

Question 48

When Chevrolet marketed its products as being as American as apple pie and hot dogs, the approach was product class positioning.

Question 49

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

Question 50

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

Question 51

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 52

Product positioning can be based on variables beyond price and quality, such as product users, product class, and cultural symbols.

Question 53

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

Question 54

The quality of products, prices charged, methods of distribution, image, and communication tactics create a product's position.

Question 55

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

Question 56

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 57

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 58

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

Question 59

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 60

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

Question 61

In the IMC planning process, a review of ________ allows the marketing team to identify potential target markets and positioning strategies.

A) the communications budget
B) the marketing plan
C) the firm's communication objectives
D) the company's context

Question 62

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

Question 63

The first step in the IMC planning process is:

A) analysis of the company's context
B) defining the firm's target market
C) an analysis of the product positioning
D) developing communications objective

Question 64

In examining customers during the IMC planning context analysis, the reason for studying former customers is to:

A) determine which customers a firm should seek
B) understand why they defected
C) determine how to improve the firm's product or service
D) determine which target group has the highest potential

Question 65

A key to a successful global integrated marketing communications campaign is developing local partnerships that are familiar with the local language and customs.

Question 66

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 when the goal is building brand awareness and brand equity.

Question 67

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

Question 68

In examining customers during the IMC planning context analysis, the easiest group to study is:

A) current customers
B) former customers
C) potential new customers
D) competitors' customers

Question 69

Developing an integrated marketing communications plan requires the analysis of the 3 C's, which consist of:

A) current customers, competitors' customers, and former customers
B) customers, competitors, and communications
C) company, context, and IMC components
D) communications, coupons, and customers

Question 70

The primary reason for the success of PetSmart may be that the company has:

A) invested in pet hotels, which is a rapid growing market
B) expanded their retail operations
C) modified the products and services they sell to match the changing trends
D) multiple brands of products for pet owners

Question 71

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

Question 72

A set of businesses or groups of individual consumers with distinct characteristics is a:

A) differentiated group
B) production department
C) market segment
D) manufacturing system

Question 73

While a market communication analysis is beneficial in international markets, successful marketing programs are usually built without the analysis as long as the company understands the local culture.

Question 74

Market segments should be internally:

A) heterogeneous
B) identifiable
C) unique
D) homogeneous

Question 75

Payout planning is a form of consumer market segmentation.

Question 76

In examining the IMC planning context, the following customers are analyzed, except:

A) current customers
B) potential new customers
C) foreign customers
D) competitors' customers

Question 77

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

Question 78

Consumer product manufacturers spend more money on trade promotions directed towards retailers while service companies spend more money on media advertising.

Question 79

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

Question 80

A successful GIMC program utilizes market segmentation adapted to countries and cultures.