Question 1

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

Accepted Answer

The percentage of sales method bases the budget on a fixed percentage of past or forecasted sales, while the objective and task approach involves defining specific objectives and then determining the tasks and budget needed to achieve them, making these methods fundamentally different in approach.

Question 2

A continuous campaign schedule involves spending more money during peak times and less during slow times while maintaining continuous spending throughout the entire year.

Accepted Answer

A continuous campaign schedule involves spending money evenly throughout the entire year, without varying the budget based on peak or slow times.

Question 3

The objective-and-task method of budgeting marketing communications links dollars to specific sales and profit goals.

Accepted Answer

The answer of The objective-and-task method of budgeting marketing communications...

Question 4

Payout planning is a form of consumer market segmentation.

Accepted Answer

Payout planning is not a form of consumer market segmentation; it refers to strategies for distributing earnings or profits, not to dividing consumers into segments based on characteristics like demographics or behavior.

Question 5

In terms of developing a communications schedule, a lawn service would tend to use a continuous schedule method.

Accepted Answer

The answer of In terms of developing a communications schedule,...

Question 6

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

Accepted Answer

Many marketers believe that the objective-and-task method of developing a marketing communications budget is the best method because it is based on defining specific communication objectives and determining the tasks required to achieve them, which allows for a more effective and efficient allocation of resources.

Question 7

In using the payout-planning method of developing a marketing communications budget, a higher percentage is allocated to marketing communications in the early years of a product when the goal is building market share and high profits.

Accepted Answer

The payout-planning method involves setting the budget based on the investment needed to achieve specific sales or market share objectives, without specifically allocating a higher percentage to marketing communications in the early years. It focuses on the expected return over time rather than the initial investment.

Question 8

A flighting communications schedule involves communications only at specific times during the year with periods of no marketing communications at other times.

Accepted Answer

A flighting communications schedule involves alternating periods of heavy advertising during certain times of the year, followed by periods of no advertising.

Question 9

Meet-the-competition method of developing a marketing communications budget is often used in industries with a dominant number one brand.

Accepted Answer

The answer of Meet-the-competition method of developing a marketing communications...

Question 10

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

Accepted Answer

Quantitative methods, such as regression analysis or goal programming, often use computer models to determine the optimal allocation of a marketing communications budget.

Question 11

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

Accepted Answer

The "what we can afford" method is actually one of the simplest forms of budgeting for marketing communications, as it is based on spending what is left over after all other expenses have been covered, rather than through detailed analysis and forecasting.

Question 12

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

Accepted Answer

The meet-the-competition method involves determining how much money competitors are spending on marketing communications and then matching or exceeding that amount in order to maintain or gain market share. The goal is to prevent the loss of market share by keeping up with the competition.

Question 13

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

Accepted Answer

The percentage of sales method bases the communications budget on a fixed percentage of past or anticipated sales, while the objective and task approach involves defining specific objectives, determining the tasks needed to achieve these objectives, and then estimating the costs of performing these tasks, leading to a more tailored and potentially effective budget.

Question 14

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

Accepted Answer

The percentage-of-sales method allocates a percentage of sales revenue to advertising, which can result in lower advertising budgets during low sales periods and higher budgets during high sales periods. However, this can be counterproductive as lower sales may require more advertising to boost sales, and higher sales may not necessarily require higher advertising spends. Therefore, this method may allocate funds in the opposite direction from what is actually needed.

Question 15

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 to occur.

Accepted Answer

The statement accurately describes the payout-planning method of developing a marketing communications budget. The method aims to allocate a budget that will provide a certain return on investment (ROI) by setting a ratio of advertising spend to sales or market share. As sales or market share increase, the ratio is reduced to account for diminishing returns on additional advertising spend.

Question 16

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

Accepted Answer

The statement is correct in saying that the simplicity of the percentage of sales method is the primary reason why many companies use it to prepare communications budgets.

Question 17

When developing a communications schedule, a lawn service would tend to use a continuous schedule method.

Accepted Answer

A lawn service would likely use a pulsing or seasonal schedule, as demand for lawn care services typically fluctuates with the growing season.

Question 18

Brands such as Kenmore and Whirlpool that sell kitchen appliances would tend to use a continuous communications schedule to allocate monies.

Accepted Answer

Brands that sell kitchen appliances such as Kenmore and Whirlpool would tend to use a continuous communications schedule to maintain a consistent presence in the market and ensure ongoing brand awareness among their target audience.

Question 19

A pulsating communications schedule involves continuous advertising and communications during the year with bursts of higher intensity at specific times.

Accepted Answer

A pulsating communications schedule involves continuous advertising and communications during the year with bursts of higher intensity at specific times.

Question 20

Which type of schedule in allocating a marketing communications budget would match a company such as Hershey's that advertises all year, but adds additional advertising during holidays, such as Easter?

Accepted Answer

Pulsating schedules involve advertising efforts that are increased periodically, with higher spending during certain seasons or events. This matches Hershey's strategy of advertising all year round but increasing their efforts during holidays such as Easter.

Quiz 4: The Imc Planning Process

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

A continuous campaign schedule involves spending more money during peak times and less during slow times while maintaining continuous spending throughout the entire year.

The objective-and-task method of budgeting marketing communications links dollars to specific sales and profit goals.

Payout planning is a form of consumer market segmentation.

In terms of developing a communications schedule, a lawn service would tend to use a continuous schedule method.

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

In using the payout-planning method of developing a marketing communications budget, a higher percentage is allocated to marketing communications in the early years of a product when the goal is building market share and high profits.

A flighting communications schedule involves communications only at specific times during the year with periods of no marketing communications at other times.

Meet-the-competition method of developing a marketing communications budget is often used in industries with a dominant number one brand.

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

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

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

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

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

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 to occur.

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

When developing a communications schedule, a lawn service would tend to use a continuous schedule method.

Brands such as Kenmore and Whirlpool that sell kitchen appliances would tend to use a continuous communications schedule to allocate monies.

A pulsating communications schedule involves continuous advertising and communications during the year with bursts of higher intensity at specific times.

Which type of schedule in allocating a marketing communications budget would match a company such as Hershey's that advertises all year, but adds additional advertising during holidays, such as Easter?