Deck 7: Marketing,Advertising and IMC Planning

Question 1

To influence customers' perceptions,marketers must understand that every corporate activity has a message component.

Answer 1

True
Explanation: All communications or brand contacts,sponsored or not,create an integrated product in the consumer's mind.The way they integrate those messages determines their perception of the company.IMC gives companies a better opportunity to manage or influence those perceptions and create a superior relationship with those stakeholders.

Question 2

A creative strategy is a written statement that serves as the creative team's guide for writing and producing an ad.

Answer 2

True
Explanation: The creative strategy is a guide for those developing the advertising.At a minimum,the creative strategy defines the target audience,restates the objective of the advertising,specifies the key benefits to be communicated,and offers support for those benefits.

Question 3

Lucas Inc.makes lubricating oil specifically for race cars and uses a positioning strategy based on user/application.

Answer 3

True
Explanation: Every product has some position-whether intended or not-even if the position is "nowhere." Positions are based on consumer perceptions,which may or may not reflect reality.One scholar proposes seven distinct approaches to developing a positioning strategy: Product attribute,Price/quality,Use/application,Product class,Product user,Product competitor,and Cultural symbol.

Question 4

Transactional marketing is simpler than relationship marketing.

Question 5

The two types of marketing objectives are positioning and segmentation.

Question 6

A database of customer behavior containing information on customer demographics,psychographics,purchase data,and attitudes can be used as the basis for planning future marketing and communications activities.

Question 7

Value is defined as the ratio of price to total benefits provided.

Question 8

The advertising plan is a natural outgrowth of the marketing plan.

Question 9

The newspaper that writes the story about the grand opening of a new Applebee's restaurant is a stakeholder for that restaurant.

Question 10

The first step in traditional top-down planning is to determine specific marketing objectives.

Question 11

The principle benefit of IMC is cost efficiency.

Question 12

Corporate objectives are stated in terms of profit or return on investment.

Question 13

Every product in the market assumes some position based on consumer perception.

Question 14

According to the advertising pyramid,the first task of advertising is to communicate enough information about the product to develop conviction.

Question 15

By definition,marketing plans should be short and specific.

Question 16

One of the benefits of bottom-up marketing is that it allows advertisers to use multiple action programs.

Question 17

With integrated marketing communications,advertisers are able to cultivate identical relationships with its various stakeholders.

Question 18

The advertising pyramid reflects the traditional mass-marketing approach.

Question 19

The company contacts customers from time to time with suggestions about improved product use or helpful new products.This sentence defines the basic transactional level relationship between the company and its stakeholders.

Question 20

Endcap promotion are messages communicated by a product,its packaging,price,or distribution elements.

Question 21

Distinguish between corporate objectives and marketing objectives.

Question 22

Briefly describe five of the nine methods for setting an advertising budget.

Question 23

Small firms with limited capital typically budget using all-available-funds method.

Question 24

Starting at the bottom of the advertising pyramid,list the five objectives in order as they appear in the pyramid.Briefly describe what an advertiser should do at each of the levels.

Question 25

Why should advertising be viewed as a long-term investment? How does this fact relate to current economic conditions?

Question 26

The objective/task method of setting budgets is also known as the budget buildup method.

Question 27

What are the four sources of brand messages? Briefly describe each source.

Question 28

Is the following statement true: "The marketing plan has a profound effect on an organization's advertising program".Explain your answer.

Question 29

In consumer goods marketing,increases in market share are closely related to increases in marketing budgets.

Question 30

The development of marketing strategy typically involves three steps.List and briefly describe each of these steps.

Question 31

What are the four principal elements in a traditional top-down marketing plan?

Question 32

What is integrated marketing communications?

Question 33

The two sub-strategies of advertising strategy are the segmentation strategy and the message strategy.

Question 34

Distinguish between need-satisfying objectives and sales-target objective.

Question 35

What three factors determine which marketing strategy option a marketer selects for its product?

Question 36

List the four sources of company/brand-related messages stakeholders receive.

Question 37

What is the integration triangle? How is this triangle associated with the brand message sources? When does constructive integration occur?

Question 38

List three reasons why it is essential that an organization actively engages in relationship marketing.Why is each essential?

Question 39

What are the two general types of marketing objectives?

Question 40

The three steps involved in the objective/task method are defining objectives,determining strategy,and estimating cost.

Question 41

Assume a bakery that wholesales gourmet pies and cakes to upscale restaurant chains has developed marketing objectives.Which of the following is the BEST sales-target objective for the bakery to use?

A)To increase sales of pecan pies by 3 percent during the next six months.
B)To have most of the staff attend a marketing seminar.
C)To increase sales of cheesecake to the point where demand exceeds supply every week.
D)To raise net profit by 50 percent during the next three weeks.
E)To build a Web site.

Question 42

The written marketing plan must reflect the goals of top management and:

A)be consistent with company's mission and capabilities.
B)be approved by all stakeholders.
C)be benchmarked against others in competing industries.
D)must be designed to emphasize the development of transactional relationships.
E)include all of the above to stand a chance of being successful.

Question 43

Within a timeframe of five to seven years Orco Construction Supply,a regional distributor of tools and hardware to framing and foundation contractor markets,plans to hit a revenue mark of $500 million which will more than double its 2006 gross sales.This would be an example of a(n)_____ objective.

A)sales-target
B)target market
C)need-satisfying
D)market tracking
E)environmental

Question 44

Baxter International Inc,which maintains manufacturing facilities around the world is the world's largest manufacturer of IV solutions in flexible containers.A(n)_____ would reveal to Baxter,changes in its environments that the company would need to address to maintain its standing as the leading producers of IV solutions in flexible containers.

A)situation analysis
B)external market analysis
C)market survey
D)product audit
E)stakeholder audit

Question 45

_____ objectives can be stated in terms of profit,return on investment,net worth,growth or corporate reputation.

A)Environmental
B)Functional
C)Corporate
D)Operational
E)Entrepreneurial

Question 46

Pyramid Breweries Inc.has stated that partnering with committed wholesalers capable of delivering first class customer service is an important _____ objective for the company if the microbrewery is to maintain its reputation for customer satisfaction.

A)corporate
B)entrepreneurial
C)advertising
D)logistical
E)stakeholder

Question 47

What is the first step in the traditional top-down marketing plan?

A)Developing marketing tactics
B)Forming marketing strategy
C)Conducting a situation analysis
D)Evaluating potential marketing objectives
E)Establishing advertising objectives

Question 48

What are the types of marketing plan choices available to the companies?

Question 49

The most common format used to develop a marketing plan is the _____ plan

A)hierarchical
B)IMC
C)bottom-up
D)top-down
E)functional

Question 50

Desert Knight Golf Resort has just completed a detailed,factual study of the resort's current strengths and weaknesses as well as what threats and opportunities exist that are outside the company's control but still impact it.Its next step in the development of its marketing plan is to:

A)decide which advertising media will best reach its target markets.
B)determine specific marketing objectives.
C)evaluate potential marketing objectives.
D)establish advertising strategy.
E)design marketing tactics.

Question 51

_____ is the third section of the marketing plan and explains how the company plans to accomplish its marketing objectives.

A)The control process
B)Implementation
C)The stakeholder analysis
D)The marketing strategy
E)The marketing mix

Question 52

What is the basis for calculating budget allocation in the percentage-of-sales method?

Question 53

_____ objectives can be categorized as either general need-satisfying objectives or specific sales-target objectives.

A)Environmental
B)Functional
C)Corporate
D)Marketing
E)Entrepreneurial

Question 54

List in order,the five levels of advertising influence depicted in the advertising pyramid.

Question 55

Harry & David is a catalog retailer that specializes in fruit gifts,but it does not see itself as just a merchant of fruit.By setting _____ objectives,the retailer can views itself as a gift provider and act accordingly.

A)need-satisfying
B)sales-driven
C)sales-target
D)production-oriented
E)environmental

Question 56

The exhibition and trade show industry,after decades of fabulous growth is experiencing business decline.The _____ for the Center for Exhibition Industry Research,reported,"The exhibition industry will face more competition for marketing dollars in the next five years than it has in the last 25 years."

A)situation analysis
B)external market analysis
C)market survey
D)product audit
E)stakeholder audit

Question 57

The _____ for an organization assembles all the pertinent facts about the organization,the markets it serves and its products,services,customers and competition.

A)vision
B)marketing plan
C)advertising plan
D)marketing mix
E)competitive strategy

Question 58

Why would a company set need-satisfying objectives?

A)To create demand in a static environment.
B)To take full advantage of the consumer trend to eat out more.
C)To shift its organizational structure from a transformational to a transactional mode.
D)To shift the organization's view from a production orientation to concern for the needs of its target market.
E)To provide equity to its stakeholders.

Question 59

What is SWOT analysis and what does it examine?

Question 60

Define the term 'synergy.'

Question 61

Clos du Bois wine,for example,pursues an advertising campaign targeting the gay and lesbian community that has been remarkably successful.Its ad in gay publications features a wine cork emblazoned with the Gay Pride rainbow-an instantly recognizable symbol in the gay community.What approach to positioning is the winery using?

A)Cultural symbol
B)Product class
C)Product user
D)Marketing mix
E)Price/quality

Question 62

In February 2008,Light Full Foods in San Francisco,developed Light Full Satiety Smoothies,which are shelf-stable,all-natural,dairy-based smoothies for adult women.Adult women are the smoothie manufacturer's:

A)marketing mix.
B)advertising mix.
C)product concept.
D)segmentation variable.
E)target market.

Question 63

Randall Grahm,the owner of Bonny Doon Vineyards,made a name for his wines by injecting an irreverent sense of humor into everything associated with the winery.One of the _____ he used was to host a black mask dinner this fall to celebrate "the death of wine corks" when his company decided to use screw tops.

A)marketing objective
B)control mechanism
C)action program
D)strategic posture
E)organizational structure

Question 64

Smaller companies typically use a bottom-up marketing format plan because:

A)handling day-to-day problems leaves little time for formal planning.
B)they don't need to create a competitive advantage.
C)long-term strategies are needed to keep a business focused on the future.
D)failure to have a mission is one of the major reasons for small-business failure.
E)a bottom-up planning allows more time for development of a customer relationship strategy.

Question 65

As the leading manufacturer of bleach in the nation,Clorox must guard itself against challenges from detergent manufacturers who are using bleach as a detergent additive.According to Jack Trout and Al Reis's Marketing Warfare,which type of a strategy should Clorox use?

A)Protective
B)Aggressive
C)Defensive
D)Offensive
E)Guerrilla

Question 66

When the owner of the Baskin-Robbins brand name decided to re-invigorate the brand,it created a launch kit for its brokers and distributors.Its brokers and distributors are examples of:

A)reference groups.
B)target audiences.
C)target markets.
D)stakeholders.
E)environmental curators.

Question 67

Roy Harold purchased a new washer/dryer for his apartment.Shortly after the appliances had been installed,a store representative called Harold and asked if he were satisfied with the washer/dryer and how they were installed.The store representative also asked Harold to call if he had any further needs for appliances.According to Kotler and Armstrong,this is an example of which relationship level?

A)Reactive relationship
B)Basic transactional relationship
C)Accountable relationship
D)Proactive relationship
E)Partnership

Question 68

The development of _____ marketing requires marketers to focus on ingenious tactics first and then develop that tactic into a strategy.

A)relationship
B)transformational
C)bottom-up
D)transactional
E)top-down

Question 69

Besides its signature product,the My-Tee T-shirt,a fashion design company,makes its own line of skirts,shoes,tank tops and accessories that retail from $32 to $78.Publicists and buyers browse My-Tee's trendy showroom for the latest trends and clothing lines.The company's promotional strategy relies on publicity.Celebrities from Hilary Duff to Courtney Cox have been photographed in My-Tee clothing.This exposure helped the company rack up $1 million in sales last year.This is a brief description of My-Tee's:

A)advertising mix.
B)marketing mix.
C)marketing objectives.
D)organizational strategy.
E)product differentiation.

Question 70

_____ refers to the place a brand occupies competitively in the minds of consumers.

A)Product segmentation
B)Product placement
C)Positioning
D)The perceptual pyramid
E)The strategic map

Question 71

_____ determine the specific short-term actions to be taken,internally and externally,by whom and when.

A)Corporate objectives
B)Tactics
C)Organizational structures
D)Environmental objectives
E)Strategic postures

Question 72

Clos du Bois wine pursues an advertising campaign that targets the gay and lesbian community.Its ad in gay publications features a wine cork emblazoned with the Gay Pride rainbow.Gay publications are examples of _____ for Clos du Bois wine.

A)reference groups
B)target audiences
C)target markets
D)stakeholders
E)environmental curators

Question 73

When the owner of the Baskin-Robbins brand name decided to re-invigorate the brand,it used several different _____ including creating a launch kit,to its brokers and distributors.The kit contains sell sheets,samples,a media kit and gift items,such as branded memory stick and an ice cream scoop to help "Scoop Up Sales!"

A)marketing objectives
B)creative mechanisms
C)tactics
D)strategic postures
E)organizational positions

Question 74

Kotler and Armstrong have identified five levels of relationships that can be formed between a company and its various stakeholders.Charlotte purchased a book on how to crochet from a Web site.After purchasing the book,she was pleased to receive regular e-mail from the site offering her other products that she might be interested in.The e-mail also told her about current trends in yarn and offered troubleshooting advice as well as free patterns.The relationship between Charlotte and the Web site is at what level?

A)Reactive relationship
B)Basic transactional relationship
C)Accountable relationship
D)Proactive relationship
E)Partnership

Question 75

Starbucks Coffee Company,expanded from bottled Frappuccino to two canned products-Doubleshot in 2002 and Starbucks Iced Coffee,which was introduced last year.While all are coffee-based products,each has a slightly different consumer base.Doubleshot is advertised as a morning beverage,Frappuccino,an afternoon treat and Starbucks Iced Coffee as an all-day product.What approach to positioning is Starbucks using?

A)Cultural symbol
B)Product class
C)Product use/application
D)Marketing mix
E)Price/quality

Question 76

Silly Putty has been around for years.It began as a gag gift sold in specialty stores alongside fake vomit.It has always avoided direct confrontation with other toy companies by finding a market that was small enough to defend and never really acting like a marketing leader.Which of the following strategies has Silly Putty successfully followed?

A)Aggressive
B)Flanking
C)Defensive
D)Circumventing
E)Guerrilla

Question 77

Hops Grillhouse & Brewery,formerly known as Hops Restaurant/Bar/Brewery,unveiled a multimillion dollar brand strategy featuring a new menu intended to "capture consumer preferences for high quality,freshness and grilled tastes as well as an array of aromas,textures and price points." Its product mix of handcrafted beer and superior food is unlike that offered by other similar restaurant chain and describes its _____ strategy.

A)segmentation design
B)positioning
C)market segmentation
D)marketing mix
E)diversification

Question 78

_____ is the creating,maintaining and enhancing long-term relationships with customers and other stakeholders that result in exchanges of information and other items of mutual value.

A)Market exchange
B)Strategic collaboration
C)Relationship marketing
D)Creative partnering
E)Transactional marketing

Question 79

There's a portion of the population that has been absolutely restricted from having butter,based on what their physicians have told them.Smart Balance brand butter substitute recognized that _____ and made a run at it,somewhat successfully,by advertising,"Hey,here's something that serves that purpose,but is better for you".

A)marketing mix
B)advertising mix
C)product concept
D)segmentation variable
E)target market

Question 80

_____ is the ratio of perceived benefits to the price of the product in a consumer study.

A)Net worth
B)Contribution margin
C)ROI
D)Retained earning
E)Value