Exam 8: Objective Setting and Budgeting

The traditional view states that marcom objectives should be stated in terms of sales and market share.

To employ the profit-maximization rule for budget setting,the advertising decision maker must know the _____ for every brand for which a budgeting decision will be made.

The fact that a brand's advertising must compete for the consumer's recall with the advertising from competitive brands is a situation known as _____.

Linda saw a print ad in a magazine for Clairol's Natural Essence semi-permanent hair color that she knew existed but did not know anything about it.The ad informed her that users of this hair dye will not see gray roots.In terms of the hierarchy-of-effects model,which step does this marketing communication represent?

Marcom objectives should specify the target audience,indicate the specific goal to be accomplished and indicate the relevant time frame.

A manufacturer of consumer goods has stated the advertising and sales promotion objective is to increase retail distribution by 25 percent while at the same time has reduced the sales force size by 20 percent.This objective suffers from _____.

Which of the following is an example of a marcom goal from which marcom objectives can be derived?

Increasing advertising expenditures is guaranteed to have a substantial impact on augmenting a brand's sales volume.

Albright Carpet Cleaners has the attractive position of holding a high market share,and its competitor is nonaggressive and has a relatively low share of voice.What should Albright do to retain its present large market share?

When a product has a relatively high share of market and the competitor has a high share of voice,it is best to _____.

A certain brand of hand lotion commands 7 percent of the market for this product category.To increase the brand's market share,a new advertising campaign is formulated with the following objective: "Within the next six months,our objective is to increase the brand's market share from 7 percent to 40 percent." This objective suffers from being ____.

The advertising-to-sales response function is the amount of sales revenue generated at each level of advertising expenditure.

The ratio of a specific brand's revenues to the total revenues in the product category is known as that brand's _____.

Objective setting and budgeting are _____ marcom decisions.

The objective for a brand's marcom program at any point in time depends on _____.

In using the objective-and-task method of budgeting,Volkswagen determined that it had to substantially increase consumer awareness of the Golf and Jetta brand names.This would be included in which step of the budgeting process?

Marcom objectives must specify the amount of change.

The percentage of sales method is the advertising budgeting procedure used most frequently by both consumer and industrial companies.

Nathan is determining next year's advertising budget by establishing specific marketing objectives,assessing the communication functions that must be performed to accomplish those objectives,determining advertising's role in the total communication mix,establishing specific advertising goals in terms of the levels of measurable communication response required to achieve the marketing objectives,and establishing the budget based on estimates of expenditures required to accomplish the advertising goals.Which advertising budgeting method is Nathan using?

The ratio of a brand's advertising expenditures to total category advertising expenditures is that brand's share of voice (SOV).