Deck 10: Marketing Communications, social Media, and Customer Response

Question 1

An ad program's marketing ROI refers to ________.

A)the net marketing contribution divided by the cost of the ad program
B)the total sales divided by the net marketing cost
C)the customer response index divided by the net marketing cost
D)the total sales multiplied by the net marketing cost
E)the net marketing contribution plus the cost of the ad program

Answer 1

A

Question 2

Target market reach is the total number of customers who purchase a product as a result of a marketing message.

Answer 2

False

Question 3

Advertising effort made in a given period will produce some additional sales response in subsequent sales periods,and the advertising carryover coefficients range from zero to less than one.

Answer 3

True

Question 4

Which of the following is the first level of the customer response hierarchy?

A)aware of the ad
B)comprehend the ad
C)exposed to the ad
D)intend to buy
E)buy the product

Question 5

Creating awareness among a large number of people is not the objective of most marketing communications.

Question 6

Which of the following communications are primarily intended to stimulate potential customers to contact the company,visit the company web site,obtain a free sample,and buy the company's product?

A)brand-action communications
B)brand-image communications
C)brand-information communications
D)brand-development communications
E)brand-awareness communications

Question 7

The objective of brand-image communications is to trigger an emotional response that builds a strong connection between the brand and the image the company wants to create among its target customers.

Question 8

SetPro Inc. ,a software firm,collects information about its marketing communication.The firm finds that 60% of the firm's target market is exposed the marketing communication,and 50% of that group is aware of the offering.Amongst the people who are aware of the offering,70% understand the message.And 60% of that group intends to purchase,and 90% of that group actually does purchase.What is the customer response index for the buying group?

A)-1.13%
B)1.13%
C)11.3%
D)90%
E)60%

Question 9

Communications that are targeted at industry gurus and consultants lead to secondary marketing communications.

Question 10

Customer use of social media gives marketers complete control over their brands.

Question 11

Traditional media advertising is considered more personal than social media engagement and is "viral" in nature.

Question 12

Push communications are directed at channel intermediaries.

Question 13

Heavy-up message frequency involves the use of alternating exposure periods by spending heavily during some periods and not at all during other periods.

Question 14

Insufficient message frequency and poor ad copy both contribute to target customers' lack of awareness and comprehension.

Question 15

A "concentrated frequency" strategy would be appropriate for building awareness and comprehension for seasonal products,political candidates,and special events.

Question 16

Ad copy can best attract customers when it is based on customer needs and situations that are familiar to customers.

Question 17

Gross rating points (GRPs)is a measure of advertising efficiency which is equal to reach divided by frequency.

Question 18

Which of the following is a performance metric used to measure brand-image communications?

A)high recall of key content
B)high rate of purchase
C)high ad and brand recall
D)response to requested action
E)low ownership costs

Question 19

Consumer response to advertising costs is measured as total revenue.

Question 20

The objectives of a pull marketing communication are to build awareness,attraction,and loyalty and to reduce search costs.

Question 21

Which of the following is true about a pulsing message reinforcement strategy?

A)It is more expensive than maintaining a high level of awareness with traditional media.
B)It can be used for products that are purchased more frequently at some times of the year than at others.
C)It involves maintaining a certain level of base advertising at all times.
D)It reduces copy wear-out due to overexposure to the same messaging.
E)It involves increasing the message frequency just before and during the prime buying period of a product.

Question 22

Calculate the target market reach of a business if it produces an impact of 400 GRPs at a frequency of 8.

A)40 percent
B)50 percent
C)60 percent
D)70 percent
E)80 percent

Question 23

In television advertising,the combined impact of message frequency and reach produces an index called ________.

A)customer response index
B)marketing penetration index
C)advertising elasticity index
D)gross rating points
E)market share index

Question 24

Calculate the gross rating points of an ad if it has a target market reach of 70 percent and a frequency of 5.

A)14
B)70
C)75
D)250
E)350

Question 25

Kristy's Decorations Inc.is a firm that manufactures and sells Halloween decorations in Oakland.The firm starts heavily advertising its products during September and October,and sets up temporary shops in various neighborhoods during this period.After Halloween is over,the firm does not direct any messages to its target customers till the next year.In this example,Kristy's Decorations Inc.uses which of the following marketing communications strategies?

A)a distributed frequency strategy
B)a gross frequency strategy
C)an umbrella strategy
D)a concentrated frequency strategy
E)a heavy-up message strategy

Question 26

________ is the percentage of target customers who are exposed to the business's message through a certain combination of media.

A)Target market reach
B)Target market frequency
C)Target market effectiveness
D)Target market rate
E)Target market pulse

Question 27

Which of the following is a mode of pull marketing communication?

A)channel marketing
B)sales incentives
C)channel financing
D)direct marketing
E)co-op advertising

Question 28

Calculate the frequency if a business with a 45% target market reach produces a GRP of 270.

A)6
B)7
C)8
D)9
E)10

Question 29

The ________ index is calculated using the formula based on hierarchical set of customer response effects: Exposed to Ad X Aware of Ad X Comprehend the Ad X Intend to Buy X Buy the Product.

A)customer response
B)marketing benefit
C)market penetration
D)brand awareness
E)market share

Question 30

A firm finds that 50% of the target market is exposed to a marketing communication,40% of that group is aware of the offering,80% understand the message.WIthin that group,60% intends to purchase,and 70% of that group actually does purchase.The customer response index is 6.7%.What is the difference in the value of the customer response index if 80% of the group intends to purchase and 60% of that group actually does purchase?

A)0%
B)1%
C)2%
D)3%
E)4%

Question 31

We-Move-It Inc.is a moving company located in Athens,Ohio.The firm has its heaviest business during the summer months.Thus,the firm maintains a GRP of 40 throughout the year and a GRP of 100 during April and May,which is the prime buying period for its services.In this example,We-Move-It Inc.uses which of the following approaches to message reinforcement?

A)a heavy-up exposure pattern
B)an average frequency strategy
C)a gross frequency strategy
D)a pulsing strategy
E)a benchmarking strategy

Question 32

A gross rating point equals ________.

A)reach multiplied by frequency
B)frequency multiplied by response
C)frequency multiplied by impact
D)impact multiplied by response
E)reach multiplied by response

Question 33

A television advertisement achieves 200 GRPs over a 4-week exposure period.The advertisement is run in alternating 4-week periods in which during the intervening 4-week period no messages are run.This is an example of which of the following approaches to message reinforcement?

A)benchmarking
B)bundling
C)cobranding
D)pulsing
E)brand encoding

Question 34

Karl-Mart,a chain of American department stores,spreads its promotional budget evenly over the year.The firm ensures that its target customers receive advertising messages throughout the year with the aims of building and maintaining its target customer awareness and comprehension.Karl-Mart uses which of the following strategies?

A)a concentrated frequency strategy
B)a distributed frequency strategy
C)a gross frequency strategy
D)an umbrella strategy
E)a heavy-up scheduling strategy

Question 35

Which of the following is the best measure of how well the ad reached a target market and how often it was seen?

A)total revenue
B)gross rating points
C)total advertising cost
D)cost advantage index
E)brand advantage index

Question 36

Which of the following message frequency strategies would be appropriate for seasonal products,political candidates,and special events where the goal is to steadily increase message awareness over a relatively short period of time with no concern about message awareness decay after the messages stop?

A)a concentrated frequency strategy
B)a distributed frequency strategy
C)a gross frequency strategy
D)an umbrella strategy
E)a constant frequency strategy

Question 37

Which of the following is an approach to message reinforcement that maintains awareness,reduces copy wear-out,and is cost-efficient?

A)benchmarking
B)bundling
C)pulsing
D)cobranding
E)brand encoding

Question 38

Which of the following is a mode of push marketing communication?

A)sales promotions
B)direct marketing
C)media advertising
D)social media
E)channel marketing

Question 39

Which of the following approaches to message reinforcement is most effective for products that are purchased more frequently at some times of the year than at others?

A)an average frequency strategy
B)a gross frequency strategy
C)a pulsing strategy
D)a benchmarking strategy
E)a heavy-up exposure pattern

Question 40

An ad campaign buys a constant amount of GRPs throughout the year,and increases the GRP total during the weeks leading up to the most extensive purchasing period of the year is using a ________ message reinforcement strategy.

A)distributed
B)random
C)deep line-up
D)pulsing
E)heavy-up

Question 41

MINI-CASE
Vincent & Rankine is a company that spends billions of dollars annually on marketing communications,primarily because they have many brand offerings in several product categories.Some of these expenditures are used on marketing communications targeted at end-user consumers of their brand,and other expenditures are used on marketing communications targeted at intermediaries in the channel of distribution.
Mini-Case Question.If Vincent & Rankine realizes a sales increase of 1.2% and an increase of 4.8% in ad expenses in that period of time,what is the advertising elasticity for the brand?

A)0.025
B)0.25
C)2.5
D)25
E)250

Question 42

Calculate the advertising expense for period 16 if the sales effect for that period is $240 million.

A)$256 million
B)$224 million
C)$160 million
D)$24 million
E)$15 million

Question 43

A push marketing strategy differs from a pull marketing strategy in that a push marketing strategy ________.

A)is directed at end-users
B)is directed at channel intermediaries
C)is a form of direct marketing
D)uses social media and media advertising
E)aims to build awareness,attraction,and loyalty and to reduce search costs

Question 44

The objective of a ________ communication strategy is to motivate channel intermediaries to carry a particular product or brand and,in this way,make it more available to consumers.

A)push
B)pull
C)pulsing
D)lateral
E)heavy-up

Question 45

Which of the following statements is true about trade promotions?

A)They involve offering price reductions to end-users.
B)They aim to build awareness,attraction,and loyalty in end-user.
C)They are a part of pull communications strategy.
D)They are customer-directed sales promotions.
E)They stimulate intermediaries to engage in aggressive customer promotion efforts.

Question 46

MINI-CASE
Vincent & Rankine is a company that spends billions of dollars annually on marketing communications,primarily because they have many brand offerings in several product categories.Some of these expenditures are used on marketing communications targeted at end-user consumers of their brand,and other expenditures are used on marketing communications targeted at intermediaries in the channel of distribution.
Mini-Case Question.Since many of Vincent & Rankine's consumer products are products used every day to satisfy customer needs,the company advertises frequently.However,the cost of advertising has increased dramatically over the years and V&R is concerned about the potential for copy wear-out and customer irritation due to overexposure.The company decides to address this situation by using alternating exposure periods.The firm advertises its products over a 4-week exposure,and runs its advertisements in alternating 4-week periods.In this example,Vincent & Rankine uses which of the following strategies?

A)a heavy-up message frequency strategy
B)a pulsing message frequency strategy
C)a pull communication strategy
D)a push communication strategy
E)a diversification strategy

Question 47

MINI-CASE
Vincent & Rankine is a company that spends billions of dollars annually on marketing communications,primarily because they have many brand offerings in several product categories.Some of these expenditures are used on marketing communications targeted at end-user consumers of their brand,and other expenditures are used on marketing communications targeted at intermediaries in the channel of distribution.
Mini-Case Question.As part of its marketing communications effort,Vincent & Rankine uses many forms of consumer-directed sales promotions,such as coupons,rebates,sweepstakes,gifts,and rewards.Which type of communication strategy do these types of tactics represent?

A)a decentralized communication strategy
B)a pull communication strategy
C)a centralized communication strategy
D)a pulsing communication strategy
E)a heavy-up communication strategy

Question 48

Calculate the advertising elasticity if a company has a 1.3% change in sales and a 5.2% change in ad expenses.

A)0.25
B)0.52
C)0.4
D)4.0
E)6.5

Question 49

If the sales effect for period 5 is $125 million and the carryover effect is 0.25,calculate the total sales impact for period 5.

A)$500 million
B)$31.25 million
C)$166.67 million
D)$93.75 million
E)$156.25 million

Question 50

What is pulsing? What are the advantages of pulsing?

Question 51

________ communication strategies are directed at channel intermediaries.

A)Push
B)Pull
C)Heavy-up
D)Centralized
E)Pulsing

Question 52

Which of the following is true about a pull communication strategy?

A)It uses uses channel marketing instead of direct marketing.
B)It is directed at end-users.
C)It uses tools such as sales incentives and co-op advertising.
D)It motivates retailers to carry a particular product or brand.
E)It aims to build the interest,purchase,inventory,and marketing efforts of its intermediaries.

Question 53

Calculate the sales effect in period 15 if the advertising expense for that period is $30 million.

A)$45 million
B)$450 million
C)$2 million
D)$30 million
E)$540 million

Question 54

The idea that the advertising effort made in a given period will produce some additional sales response in subsequent sales periods is known as the ________.

A)advertising elasticity effect
B)pulsing effect
C)advertising carryover effect
D)pull effect
E)push effect

Question 55

Compare and contrast push and pull communication strategies.

Question 56

Which of the following communication strategies refers to customer-directed marketing communications?

A)push communication
B)pull communication
C)channel communication
D)centralized communication
E)lateral communication

Question 57

Advertising elasticity is calculated as the ________.

A)absolute change in sales divided by the percent change in advertising expenses
B)percent change in sales divided by the percent change in advertising expenses
C)absolute change in advertising expenditures divided by the percent change in revenue
D)percent change in advertising expenses divided by the percent change in revenue
E)percent change in sales minus the percent change in advertising expenditures

Question 58

An advertising elasticity of 0.35 means that for every one percent change in advertising expenditures there will be an estimated ________ percent change in volume sold.

A)0.0035
B)0.035
C)0.35
D)3.5
E)35

Question 59

Which of the following measures is used to assess the responsiveness of consumers to advertising expenditures,calculated by dividing the percent change in sales by the percent change in advertising expenses?

A)net sales expenditure
B)gross advertising index
C)advertising elasticity
D)advertising return on investment
E)push rating

Question 60

Erb Manufacturing Group is an American manufacturer of electrical wire and cable based in Pennsylvania.The firm offers price reductions to its distributors and retailers,as well as offers them financial incentives to promote and provide greater shelf space to Erb products.In this example,Erb Manufacturing Group uses which of the following communication strategies?

A)a push communication strategy
B)a pull communication strategy
C)a cobranding communication strategy
D)a centralized communication strategy
E)a lateral communication strategy