Question 1

The major problem with the use of cost per thousand figures is:

Accepted Answer

The major problem with the use of cost per thousand figures is determining pass-along rates. Pass-along rates refer to the number of times a magazine or publication is read by someone other than the original subscriber. This can have a significant impact on the magazine's circulation and advertising reach, making it difficult to accurately determine the cost per thousand impressions.

Question 2

____ is a summary measure that combines reach and frequency.

Accepted Answer

Gross ratings points (GRPs) combine the reach (the percentage of the target audience exposed to the message) and frequency (the number of times the target audience is exposed to the message) into a single summary measure. BDI and CDI are indices that measure the potential of a brand or product category in a specific market, while TRPs are a refined version of GRPs that take into account the target audience's demographic characteristics.

Question 3

To evaluate the ______ cost of print media,______ is used.

Accepted Answer

Relative cost is used to compare the cost of different media channels to each other. CPM (cost per thousand impressions) is a common metric used to determine the cost per thousand impressions for print media. Therefore, the best choice would be option B, which suggests evaluating the relative cost of print media using CPM. Choice A (absolute cost with CPM) is contradictory, as CPM is a relative cost metric, while choice C (absolute cost with CPRP) and D (relative cost with CPRP) suggest using a different metric, CPRP (cost per rating point), which is more commonly used for evaluating TV advertising.

Question 4

If the circulation of the National Post is 400,000 readers,and the advertising cost per page is $50,000,the CPM is:

Accepted Answer

CPM (Cost Per Mille) is calculated by dividing the advertising cost by the circulation and multiplying by 1000.

CPM = (Advertising Cost / Circulation) x 1000

CPM = ($50,000 / 400,000) x 1000

CPM = $125

Therefore, the CPM is $125. Option B is the correct answer.

Question 5

The S-shaped response function implies that:

Accepted Answer

The S-shaped response function suggests that at low levels of advertising expenditure, there is little impact on sales. As spending increases, sales begin to rise more significantly, following an S-shaped curve.

Question 6

The S-shaped response curve suggests that:

Accepted Answer

The S-shaped response curve indicates that there is a relationship between advertising effectiveness and spending levels, and that the effectiveness of advertising will vary depending on the level of spending. At very low spending levels, there may not be a significant impact on sales, but as spending increases, the effectiveness of advertising also increases until it reaches a plateau.

Question 7

No one knows the exact number of ______ necessary for an ad to make an impact,although advertisers have settled on ______ as the minimum.

Accepted Answer

Advertisers have generally agreed that a minimum of three exposures to an ad is necessary for it to make an impact on the audience. This is based on the marketing principle that a consumer needs to see an advertisement at least three times before it begins to resonate.

Question 8

The estimated number of people who read the magazine without buying it is called:

Accepted Answer

Pass-along rate is the estimated number of people who read the magazine without buying it.

Question 9

When executives determine the budget amounts to be allocated for each department's advertising expenditures,a _____ approach is being used.

Accepted Answer

A top-down approach to budgeting involves higher-level executives setting overall spending limits and then allocating funds to different departments or areas. This type of approach is commonly used in larger organizations where budget oversight is centralized, and decisions are made at the upper levels of management. In contrast, a bottom-up approach involves lower-level employees providing input on budget needs, and then these figures are evaluated and reconciled with overall budget limitations.

Question 10

CPM is an expression of ______ for various media vehicles.

Accepted Answer

CPM stands for cost per thousand impressions, which is an expression of relative cost for various media vehicles. It calculates the cost of reaching 1,000 people with an advertising message on a particular platform, making it easier for marketers to compare the relative cost-effectiveness of different advertising channels.

Question 11

A marketing firm decides to purchase media time in an attempt to sell its new product.After purchasing approximately $1 million of time,it has noticed no impact on the sales of the product.However,at $3 million,a substantial increase is shown.This might best be explained by:

Accepted Answer

An S-shaped response is characterized by a slow start, followed by a period of rapid growth and then a plateau. In this scenario, the initial $1 million investment may have been too low to create any significant impact on sales, whereas the larger investment of $3 million triggered a noticeable response in sales. This pattern resembles an S-shaped response. Therefore, the best explanation for the observed increase in sales is an S-shaped response.

Question 12

The concept of _____ is based on the assumption that one exposure to an ad may not be enough to convey the desired method.

Accepted Answer

Effective reach is the concept that accounts for the fact that multiple exposures to an ad may be necessary for it to have a significant impact on the target audience. Average frequency and GRPs do not account for this assumption, while average reach measures the percentage of the target audience that has been reached at least once, but does not consider the impact of multiple exposures.

Question 13

As a result of ___,large advertisers can maintain advertising shares that are smaller than their market shares because they get lower advertising rates and accrue the advantages of advertising several products jointly.

Accepted Answer

Economies of scale allow large advertisers to maintain smaller advertising shares as they can negotiate lower rates due to their buying power. Additionally, if they advertise several products together, they may benefit from joint advertising advantages.

Question 14

The _____ function is based on the microeconomics law of diminishing returns.

Accepted Answer

The law of diminishing returns in microeconomics is represented by a concave-downward function, indicating that as more of a variable input is added to a fixed input, the additional output (returns) from each additional unit of the variable input will eventually decrease.

Question 15

_____ is the number of times the target audience reached by a media vehicle is exposed to the vehicle over a specified period of time.

Accepted Answer

Average frequency is the metric that measures the number of times the target audience is exposed to a media vehicle over a specified period.

Question 16

The media planning process concludes with the ___,which summarizes many of the media strategy and media tactics decisions.

Accepted Answer

The blocking chart is a tool used in media planning that summarizes many of the media strategy and media tactics decisions, providing a visual representation of where and when advertisements will be placed.

Question 17

The two models that are commonly used to explain the relationship between advertising and sales are the:

Accepted Answer

The concave-downward function and the S-shaped response function are the two models commonly used to explain the relationship between advertising and sales. The concave-downward function suggests that the impact of advertising on sales diminishes at higher levels of advertising spend, while the S-shaped response function suggests that initial advertising efforts have little impact, followed by a period of significant impact, and then diminishing returns at higher levels of advertising.

Question 18

In the marginal analysis approach to media budgeting,all of the following should be considered EXCEPT:

Accepted Answer

Gross margin net worth is not directly related to the marginal analysis approach to media budgeting. The factors that should be considered in this approach are sales, fixed costs of advertising, and advertising expenditures and other variable costs.

Question 19

Cost per thousand is a measure of the ______ of a particular media vehicle.

Accepted Answer

Cost per thousand (CPM) is a measure used in advertising to denote the relative cost effectiveness of a media vehicle, by calculating the cost to reach one thousand viewers or listeners.

Question 20

According to the S-shaped response curve,:

Accepted Answer

The answer of According to the S-shaped response curve,:
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Quiz 10: Media Planning and Budgeting for IMC