Question 1

The traditional view states that advertising objectives should not be stated in terms of _____.

Accepted Answer

A)  sales or market share gains 
B)  brand awareness 
C)  attitude change 
D)  purchase intentions 
E)  creating brand loyalty 
A)  sales or market share gains 
B)  brand awareness 
C)  attitude change 
D)  purchase intentions 
E)  creating brand loyalty

Question 2

A clothing store that sets their advertising budget by following the major competitor and adding an additional 15 percent is using the _____ method.

Accepted Answer

A)  percentage-of-sales 
B)  arbitrary allocation 
C)  objective-and-task 
D)  competitive parity 
E)  affordability 
A)  percentage-of-sales 
B)  arbitrary allocation 
C)  objective-and-task 
D)  competitive parity 
E)  affordability

Question 3

The competitive parity method sets the budget by examining what competitors are doing.

Accepted Answer

A) True 
 B)False

Question 4

Marcom objectives are goals that the various marcom elements aspire to individually or collectively achieve during a specific period of time.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following can impact the sale-to-advertising response function?

Accepted Answer

A)  creativity of advertising execution 
B)  state of the economy 
C)  intensity of competitive advertising efforts 
D)  overall quality of the brand's mix 
E)  All of these are correct. 
A)  creativity of advertising execution 
B)  state of the economy 
C)  intensity of competitive advertising efforts 
D)  overall quality of the brand's mix 
E)  All of these are correct.

Question 6

Marcom objectives should be established after making decisions regarding message selection and media determination.

Accepted Answer

A) True 
 B)False

Question 7

Advertisers obtain consumer loyalty by providing a brand that meets the needs of the consumers and _____.

Accepted Answer

A)  by continually advertising the brand's merits 
B)  by stressing the price 
C)  by stating the unfavorable attributes of the major competitor 
D)  by using sales promotion 
E)  All of these are correct. 
A)  by continually advertising the brand's merits 
B)  by stressing the price 
C)  by stating the unfavorable attributes of the major competitor 
D)  by using sales promotion 
E)  All of these are correct.

Question 8

Which of the following is a requirement for setting marcom objectives?

Accepted Answer

A)  Objectives must include a precise statement of who, what, and when. 
B)  Objectives must be qualitative. 
C)  Objectives must be broad in scope. 
D)  Objectives must be long-term. 
E)  Objectives must be short-term. 
A)  Objectives must include a precise statement of who, what, and when. 
B)  Objectives must be qualitative. 
C)  Objectives must be broad in scope. 
D)  Objectives must be long-term. 
E)  Objectives must be short-term.

Question 9

According to the hierarchy-of-effects model,brand-loyal consumers are the ultimate goal.

Accepted Answer

A) True 
 B)False

Question 10

In terms of profitability,investing in advertising can be justified only if the incremental revenue generated from the advertising effort exceeds the increase in advertising expense.

Accepted Answer

A) True 
 B)False

Question 11

Objective setting and budgeting decisions must be formal and systematic.

Accepted Answer

A) True 
 B)False

Question 12

The two broad type of marcom objectives are short-term and long-term.

Accepted Answer

A) True 
 B)False

Question 13

In which method does a company set a brand's advertising budget by simply establishing the budget as a fixed percentage of past or anticipated sales volume?

Accepted Answer

A)  revenue-based method 
B)  percentage-of-sales method 
C)  affordability method 
D)  competitive parity method 
E)  objective-and-task method 
A)  revenue-based method 
B)  percentage-of-sales method 
C)  affordability method 
D)  competitive parity method 
E)  objective-and-task method

Question 14

The _____ function refers to the relationship between money invested in advertising and the response,or output,of that investment in terms of revenue generated.

Accepted Answer

A)  sales response 
B)  advertising response 
C)  sales-to-advertising response 
D)  advertising-to-sales response 
E)  marcom response 
A)  sales response 
B)  advertising response 
C)  sales-to-advertising response 
D)  advertising-to-sales response 
E)  marcom response

Question 15

Objective setting and budgeting decisions must be _____.

Accepted Answer

A)  short-term 
B)  long-term 
C)  short-term and long-term 
D)  formal and systematic 
E)  unplanned 
A)  short-term 
B)  long-term 
C)  short-term and long-term 
D)  formal and systematic 
E)  unplanned

Question 16

When a company that has a relatively low market share has a major competitor with a relatively high share of voice,the recommendation would be to increase advertising expenditures and find a niche that can be defended against other small-share brands.

Accepted Answer

A) True 
 B)False

Question 17

Attitudes would most likely precede behavior when purchasing _____.

Accepted Answer

A)  pens 
B)  cleaning products 
C)  new automobiles 
D)  soft drinks 
E)  aspirin 
A)  pens 
B)  cleaning products 
C)  new automobiles 
D)  soft drinks 
E)  aspirin

Question 18

It is optional that marcom objectives be established prior to making decisions regarding message selection and media determination.

Accepted Answer

A) True 
 B)False

Question 19

One reason why it is essential that objectives be established prior to making marcom implementation decisions is that objectives provide _____ against which results can be measured.

Accepted Answer

A)  management consensus 
B)  guidelines 
C)  standards 
D)  effects 
E)  a hierarchy 
A)  management consensus 
B)  guidelines 
C)  standards 
D)  effects 
E)  a hierarchy

Question 20

The advertising budget procedure used most frequently is the _____ method.

Accepted Answer

A)  percentage-of-sales 
B)  arbitrary allocation 
C)  marginal cost 
D)  competitive parity 
E)  objective-and-task 
A)  percentage-of-sales 
B)  arbitrary allocation 
C)  marginal cost 
D)  competitive parity 
E)  objective-and-task

Exam 8: Objective Setting and Budgeting

The traditional view states that advertising objectives should not be stated in terms of _____.

A clothing store that sets their advertising budget by following the major competitor and adding an additional 15 percent is using the _____ method.

The competitive parity method sets the budget by examining what competitors are doing.

Marcom objectives are goals that the various marcom elements aspire to individually or collectively achieve during a specific period of time.

Which of the following can impact the sale-to-advertising response function?

Marcom objectives should be established after making decisions regarding message selection and media determination.

Advertisers obtain consumer loyalty by providing a brand that meets the needs of the consumers and _____.

Which of the following is a requirement for setting marcom objectives?

According to the hierarchy-of-effects model,brand-loyal consumers are the ultimate goal.

In terms of profitability,investing in advertising can be justified only if the incremental revenue generated from the advertising effort exceeds the increase in advertising expense.

Objective setting and budgeting decisions must be formal and systematic.

The two broad type of marcom objectives are short-term and long-term.

In which method does a company set a brand's advertising budget by simply establishing the budget as a fixed percentage of past or anticipated sales volume?

The _____ function refers to the relationship between money invested in advertising and the response,or output,of that investment in terms of revenue generated.

Objective setting and budgeting decisions must be _____.

When a company that has a relatively low market share has a major competitor with a relatively high share of voice,the recommendation would be to increase advertising expenditures and find a niche that can be defended against other small-share brands.

Attitudes would most likely precede behavior when purchasing _____.

It is optional that marcom objectives be established prior to making decisions regarding message selection and media determination.

One reason why it is essential that objectives be established prior to making marcom implementation decisions is that objectives provide _____ against which results can be measured.

The advertising budget procedure used most frequently is the _____ method.

An Overview of Integrated Marketing Communications

Enhancing Brand Equity and Accountability

Brand Adoption, Brand Naming, and Intellectual Property Issues

Environmental, Regulatory, and Ethical Issues

Segmentation, Targeting, and Positioning

The Communication Process and Consumer Behavior

The Role of Persuasion in Integrated Marketing Communications

Overview of Advertising Management

Effective and Creative Ad Messages

Endorsers and Message Appeals in Advertising

Traditional Advertising Media

Online and Mobile Advertising

Social Media

Direct Marketing and Other Media

Advertising Media: Planning and Analysis

Measuring Ad Message Effectiveness

Sales Promotion Overview and the Role of Trade Promotion

Consumer Sales Promotion: Sampling and Couponing

Consumer Sales Promotion: Premiums and Other Promotions

Public Relations,Word-of-Mouth Influence,and Sponsorships

Packaging, Point-of-Purchase Communications, and Signage

Personal Selling

Filters