Question 1

Which method of developing a marketing communications budget establishes a ratio of advertising dollars to sales or market share then reduces the percentage as sales build and the product obtains market share?

Accepted Answer

Payout planning involves establishing a ratio of advertising dollars to sales or market share and then reducing the percentage as sales build and the product gains market share.

Question 2

In allocating its marketing communications budget, a ski resort in Colorado would tend to use the ________ schedule.

Accepted Answer

Ski resorts typically have a seasonal business with peak demand during the winter months. Therefore, it would be more cost-effective for the resort to use a flighting schedule, which focuses on heavy advertising during the peak season and little or no advertising during the off-season to reduce costs. This allows the resort to maximize exposure during the busiest periods and minimize expenses when demand is lower.

Question 3

In allocating marketing communications, communications only during specific times during the year with periods of no advertising the other times is a ________ schedule.

Accepted Answer

Flighting schedule involves advertising only during certain periods of the year or during specific events, followed by periods of no advertising, while continuous schedule runs advertising campaigns steadily throughout the year. Payout refers to the amount of money paid out to stakeholders, and pulsating is a type of flighting where advertising periods are shorter and more frequent.

Question 4

When using the payout planning method of developing a marketing communications budget, the marketing budget would be reduced:

Accepted Answer

The payout planning method involves reducing the marketing budget when the brand reaches a point at which additional dollars invested in communications yield diminishing returns. This means that the budget is decreased when the point of diminishing returns is reached in order to optimize the marketing spend. Therefore, option C is the best choice. Options A, B, and D do not accurately describe the payout planning method.

Question 5

Which approach to developing a marketing communications budget is often viewed as being the most effective?

Accepted Answer

The objective and task approach involves setting specific marketing objectives and then determining the tasks that need to be accomplished to achieve those objectives. Based on these tasks, the budget can be developed. This approach is often viewed as the most effective because it ensures that the budget is directly tied to the marketing goals and strategies, rather than relying on arbitrary percentages or what the company believes it can afford. This approach allows for better budget allocation and decision making.

Question 6

In allocating its marketing communications budget, a company such as General Electric that sells kitchen appliances would tend to use the ________ schedule.

Accepted Answer

A company selling kitchen appliances like General Electric would likely choose a continuous schedule for its marketing communications budget. This is because kitchen appliances are typically purchased throughout the year, so the company would want to maintain a consistent level of advertising to continue to appeal to customers. A continuous schedule ensures that advertising is ongoing without any significant breaks.

Question 7

Which type of schedule in allocating its marketing communications budget would fit weight-loss programs such as Weight Watchers that advertise primarily during the first part of a year?

Accepted Answer

Flighting schedules involve discontinuing advertising for a period of time and then increasing it again for a specific time period. This type of schedule is suitable for weight-loss programs like Weight Watchers, which tend to have a high demand during the first part of the year due to New Year's resolutions and the desire to lose weight in time for summer. By using a flighting schedule, Weight Watchers can increase their advertising during the high-demand period and reduce their spending during periods of low demand.

Question 8

Which type of schedule in allocating marketing communications sends out communications only during specific times during the year with periods of no advertising other times?

Accepted Answer

Flighting involves sending out communications only during specific periods of the year with periods of no advertising during other times. This can be effective for products that have seasonal demand or for companies with limited advertising budgets. The other options, continuous, payout, and pulsating, do not involve this specific pattern of advertising.

Question 9

In allocating its marketing communications budget, a company such as Hershey's advertises all year, but adds additional advertising during holidays, such as Easter. Therefore, Hershey's would tend to use the ________ schedule.

Accepted Answer

Pulsating schedule involves using continuous advertising throughout the year and adding additional bursts of advertising during specific, peak times such as holidays.

Question 10

Which type of schedule in allocating a marketing communications budget would best match a company such as General Electric that sells kitchen appliances?

Accepted Answer

Continuous scheduling is best for products that have steady demand throughout the year, such as kitchen appliances. This approach ensures consistent communication with the target audience, which is important for products like those sold by General Electric.

Question 11

Which type of schedule in allocating marketing communications uses continuous advertising and communications during the year with bursts of higher intensity at specific times?

Accepted Answer

The described schedule aligns with a pulsating schedule, which combines continuous communication throughout the year with strategically timed bursts of higher intensity. Flighting involves alternating periods of heavy advertising and no advertising, while continuous scheduling maintains a steady level of communication throughout the year. Payout scheduling refers to a budgeting approach where funds are allocated at specific times, rather than the timing of the communications themselves.

Question 12

Which method of developing a marketing communications budget uses computer simulations to model the relationship between advertising and marketing communications and sales, profits, and other factors?

Accepted Answer

Quantitative models use computer simulations to model the relationship between advertising and marketing communications and sales, profits, and other factors. Therefore, D is the correct answer. A, B, and C are not related to the use of computer simulation in budget development.

Question 13

In allocating marketing communications, continuous advertising and communications during the year with bursts of higher intensity at specific times is a ________ schedule.

Accepted Answer

Pulsating schedule is characterized by continuous advertising and communications during the year with bursts of higher intensity at specific times.

Question 14

Which type of schedule in allocating its marketing communications budget matches a ski resort in Colorado?

Accepted Answer

Flighting is suitable for a ski resort in Colorado as it involves allocating the budget during specific peak seasons, such as winter, when skiing is most popular.

Question 15

Which type of schedule in allocating marketing communications spends approximately the same amount of money throughout each month of the year?

Accepted Answer

A continuous schedule allocates the same amount of money throughout the year, ensuring that there is a consistent presence of advertising and marketing communications.

Question 16

In allocating marketing communications, spending approximately the same amount of money throughout each month of the year is a ________ schedule.

Accepted Answer

A continuous schedule involves allocating marketing communications spending evenly throughout the year. Flighting involves alternating periods of high and low spending, pulsating involves a rhythmic pattern of high and low spending, and payout is a term unrelated to marketing communications scheduling.

Question 17

Which method of developing a marketing communications budget is used when the marketing budget is reduced as the brand reaches the point that additional dollars invested in communications yields diminishing returns?

Accepted Answer

Payout planning is the method used when a marketing budget is adjusted based on the diminishing returns of additional investments in communications. This approach involves setting the budget to match the expected returns over a certain period, reducing the budget as the incremental gains decrease.

Question 18

In allocating its marketing communications budget, weight-loss programs such as Weight Watchers that advertise primarily during the first of a year would tend to use the ________ schedule.

Accepted Answer

Weight-loss programs such as Weight Watchers advertising primarily during the first of a year suggest that they are using the flighting schedule. This schedule involves intermittent periods of advertising and non-advertising. In this case, Weight Watchers is likely capitalizing on the increased demand for weight-loss programs at the start of the year due to New Year's resolutions.

Question 19

If a company's leaders reject a communications budgeting method because it would take too long to prepare, odds are it is which budgeting method?

Accepted Answer

Objective and task budgeting method involves setting communication objectives and determining the tasks and costs necessary to achieve those objectives. This method may take longer to prepare compared to other budgeting methods, but it is more effective in ensuring that communication efforts align with business goals and objectives. Therefore, if the company's leaders reject this budgeting method because it takes too long to prepare, it is indicative of their lack of commitment to rigorously planning and executing communication strategies.

Question 20

When using the payout planning method of developing a marketing communications budget, the larger amounts of dollars would be spent on marketing communications:

Accepted Answer

The payout planning method of developing a marketing communications budget suggests that the larger amounts of dollars should be spent in the early years to build brand awareness and brand equity. This is because the marketing communications investments made in the initial years will help establish the brand and create a strong position in the market, which will pay off in terms of sales and profitability in the later years. As the brand becomes more established and gains market share, the need for spending large amounts on marketing communications decreases, and the focus shifts to maintaining the existing market share. Therefore, option A is the best choice.

Quiz 4: The Imc Planning Process