Deck 6: The Advertisers Marketingadvertising Operation

Question 1

Which of the following is an appropriate IMC goal?

A)eliminate the competition
B)provide applicable, specific information about your competition
C)category similarity persuasion
D)build advertising equity
E)communication differentiation/positioning

Answer 1

E

Question 2

Traditional responsibilities of an advertising director would include all of the following EXCEPT:

A)devising marketing goals and objectives.
B)control of the advertising budget.
C)monitoring creation and production of advertising.
D)planning the media schedule.
E)monitoring the research function.

Answer 2

A

Question 3

In a traditional organizational structure of a marketing department, which of the following would NOT report directly or indirectly to the marketing director?

A)advertising agency
B)advertising brand managers
C)public relations department
D)sales promotion department
E)advertising director

Answer 3

C

Question 4

By controlling the dollars, a company's advertising and marketing departments are:

A)locked into using a traditional business model.
B)locked into a nontraditional business model.
C)locked into no single business model to choose.
D)locked into choosing multiple outside advertising agencies.
E)locked into deciding that a boutique is the type of agency they need.

Question 5

In integrated marketing, the Marcom management organizational structure:

A)claims to reduce reporting layers.
B)merges marketing and advertising objectives.
C)centralizes communication activities under one person who develops strategy and then directs the communication programs internally and externally.
D)places sales and marketing on the same organizational level.
E)requires a communications manager who approves and coordinates all communications programs for the entire organization.

Question 6

Which of the following would NOT be a function under the Marcom approach?

A)employee communication
B)integrated telecommunications services
C)media relations
D)writing
E)advertising

Question 7

Under the marketing services system, all technical marketing services are available to the:

A)promotions manager.
B)product manager.
C)brand manager.
D)product advertising manager.
E)creative manager.

Question 8

Which of the following is correct regarding the 70/20/10 approach to managing marketing resources?

A)70% of the budget should go toward systematically learning from experiments.
B)20% of the budget for sustaining innovation
C)20% of the budget for proven marketing strategies
D)10% for historically useful tactics
E)70% of the budget for sustaining innovation and creativity

Question 9

Don Schultz in Integrated Marketing Communications advocates that organizations:

A)reengineer the communications function and structure to deliver inside-out communications.
B)leave it to salespeople to make the brand contacts.
C)reengineer the communications function and structure to deliver outside-in communication.
D)not devote so much money to learning about customers and prospects.
E)create quality circles of customers to provide communication advice.

Question 10

Which of the following is NOT a purpose for advertising?

A)to educate
B)to launch a product
C)to increase brand awareness
D)to see how many awards the creative can take to educate
E)to neutralize the competition's advertising

Question 11

In a large company with many categories of products, there may be another layer of management called the:

A)brand manager.
B)product manager.
C)category manager.
D)vice-president of marketing services.
E)director of product advertising.

Question 12

The major reason advertising agencies have NOT implemented the integrated-marketing brand management approach is:

A)their lack of focus on the bottom line.
B)their inability to manage tactical thinking.
C)their inability to set marketing objectives.
D)their lack of agreement in where power should reside.
E)their structure as separate profit centers.

Question 13

If, through IMC, you successfully coordinate all messages from the various communications functions, you should expect to:

A)reduce need for external agencies.
B)stretch your budget to the limits.
C)reduce relationship building with customers.
D)expand the size of the marketing department.
E)create a unified image for the organization.

Question 14

Advertisers have various ways to effectively:

A)manage digital technology.
B)make agency hiring decisions.
C)use reputation management.
D)supplement or integrate their traditional brand management apparatus.
E)choose freelancers to do commercial production work.

Question 15

What is the main implication of the consumer and media changes currently faced by marketers?

A)Advertising will become less and less significant.
B)It is even more challenging to reach customers with communication messages.
C)Interactivity will not be important in the marketing channel.
D)Digital media will progressively merge into a single channel.
E)Marketing is in charge of consumers rather than the other way.

Question 16

As you initially establish your IMC strategy, which of the following is critical?

A)identifying internal users or influencers within the organization
B)allocating all the money necessary for this strategy
C)understanding what specific target audiences need from your IMC campaign
D)determining which aspects of communications disciplines are unnecessary
E)completing an agency review

Question 17

Although organizations have taken charge of the integration process rather than looking toward agencies to manage it, there is still disagreement about:

A)where the IMC leadership resides within the organization.
B)whether agencies should be given enough financial incentive to take charge.
C)whether consumers would prefer agencies to control it.
D)whether consumers would prefer corporations control it.
E)current government regulations that forbid reducing competition.

Question 18

The marketing services system pioneered by Procter & Gamble has two parts, one of which is a marketing services structure that represents:

A)technical talent needed to implement a marketing plan.
B)marketing activity.
C)public relations programs.
D)profitability of the brand.
E)competing product managers.

Question 19

Research among marketing executives suggests that integration of advertising, promotion, public relations, and other forms of marketing communications is the critical factor in:

A)maximizing manufacturing efficiencies.
B)influencing how strategies are set.
C)minimizing customer complaints about quality.
D)convincing stockholders to reinvest their dividends.
E)longevity of marketing directors.

Question 20

Which of the following is a model of integrated marketing that a corporation could adapt?

A)brand manager
B)public relations manager
C)Marcom manager
D)sales manager
E)category manager

Question 21

Brand managers and CMOs are less likely to take risks because:

A)they've learned that failure is a valuable learning experience that ultimately leads to promotion.
B)they usually have about 18 months to succeed.
C)they have an extended timeframe in which to fulfill profit goals.
D)they fear much reliance on nontraditional integration of technology.
E)they have been trained to be conservative in MBA programs.

Question 22

In 2006, the Salz Survey of Advertiser-Agency Relations found clients ranked their agency's work-on a 1 (terrible)to 10 (excellent)scale-on average at:

A)8.
B)7.5.
C)about 7.3.
D)6 to 6.5.
E)5.5 to 6.

Question 23

In which method for advertising budgeting is margin or volume variables?

A)payout plan
B)percentage of sales
C)task method
D)objective method
E)competitive budgeting

Question 24

After advertising objectives have been created, a key question is:

A)how soon can we spend money for the campaign?
B)how can we neutralize the competition's advertising?
C)how much money will it take to accomplish the objectives?
D)will we have time to complete the required tasks?
E)which agency will do the work at a reasonable price?

Question 25

The budget method that requires advertisers spend to examine investment rather than expenditure is:

A)objective method.
B)risk method.
C)task method.
D)payout plan.
E)percentage of sales.

Question 26

An indication of whether the retailer or the manufacturer controls shelf space and entry into retail establishments can come from observing the change in the mix of advertising, consumer promotion, and trade incentives. Twenty years ago, it was one way. Today, that percentage breakdown is, respectively:

A)50, 25 and 25 percent.
B)45, 30, and 30 percent.
C)30, 30 and 45 percent.
D)25, 25 and 50 percent.
E)35, 35, and 30 percent.

Question 27

Because every square foot of space in a supermarket must pay for itself, grocers charge manufacturers a fee just to place their products on the shelves. That fee is called:

A)a shelving allowance.
B)a slotting allowance.
C)a supermarket stocking fee.
D)a stocking stuffer.
E)product placement fee.

Question 28

Once agencies prided themselves on selling clients:

A)the freshest strategy.
B)a digital strategy.
C)a balanced budget proposal.
D)the creative product.
E)their persuasive skills.

Question 29

In managing brands, another new reality to contend with is:

A)CEOs rule.
B)media rule.
C)retailers rule.
D)ad agencies rule.
E)government regulators rule.

Question 30

The reasons why marketers are irreversibly restructuring the way their businesses operate and rethinking the agency-client relationship include:

A)consolidation in the retail universe.
B)ease in reaching mass numbers of consumers.
C)increasing mass nature of media.
D)increasing numbers of cable television stations.
E)contraction in media choices.

Question 31

According to a Business Week study of start-up businesses, which approach to developing advertising budgets was most commonly used?

A)percentage of sales
B)payout plan
C)task method
D)competitive analysis
E)objective method

Question 32

What percentage of the money marketers spend is spent on digital experimentation?

A)30 to 40 percent
B)20 to 30 percent
C)15 to 25 percent
D)10 to 20 percent
E)5 to 10 percent

Question 33

Who in an organization is most likely to be responsible for preparing the advertising budget?

A)vice president of finance
B)vice presidents of marketing and of advertising
C)the CEO
D)the CFO
E)the CMO

Question 34

Which of the following is NOT a way for winning brand marketers to reconfigure their efforts?

A)shift spending to digital media
B)develop formats to promote interactions with audience
C)combine above-the-line and below-the-line advertising
D)combine beneath-the-line with inside-the-line advertising
E)create their own branded entertainment

Question 35

Among the four approaches to advertising budgeting, the one that bases advertising expenditures on marketing objectives that may differ from yours is:

A)task method.
B)competitive budgeting.
C)payoff plan.
D)percent of profit.
E)objective method.

Question 36

This new use of digital media helped launch the Nissan Sentra.

A)Nislog
B)Marc Horowitz's Road Trip
C)Sentra-cast, a podcast of each feature of the new sedan
D)anime-inspired virtual comic books
E)wikimedia

Question 37

Among the approaches for advertising budgeting, the one that looks at advertising as an investment rather than as an expenditure is:

A)task method.
B)objective method.
C)payout plan.
D)competitive budgeting.
E)percentage of sale.

Question 38

The budgeting approach used most widely in a highly competitive environment is:

A)objective method.
B)competitive budgeting.
C)percentage of sales.
D)payout plan.
E)task method.

Question 39

Among the lessons that category managers need to remember in dealing with the new, stronger retailer is:

A)know the needs of these retailers equally well as the needs of the consumer.
B)be sure consumer promotions are part of the total marketing program.
C)marketplace leverage is spread equally along the distribution channel.
D)RFID can increase retailer channel strength.
E)shelving allowances are no long a part of doing business.

Question 40

According to a survey by Continental Consulting Group, many clients indicated their advertising agencies were:

A)undercompensated compared to a decade ago.
B)overstaffed compared to just 5 years ago.
C)understaffed, overcompensated, and less creative than they were 20 years ago.
D)filled with more undercompensated managers than a decade ago.
E)loaded with more egotistical strategists than 15 years ago.

Question 41

At Coca-Cola Company, there's a vice president of global marketing who coordinates all the advertising and marketing efforts for the brand.

Question 42

Procter & Gamble introduced the brand management concept that gave birth to the marketing services system.

Question 43

Critics indicate that because of its structure, an advertising agency may not be able to implement one-voice marketing.

Question 44

More than simply a communications function for a company, advertising represents a financial investment in itself and its brand.

Question 45

If you were in charge of the Miller "lite" beer account, which of the five new Ps of marketing would you likely concentrate on?

A)perspective
B)persuasion
C)paradox
D)prospect
E)passion

Question 46

Don Schultz, author of Integrated Marketing Communications, says the use of databases only dilutes efforts needed to accomplish IMC tasks.

Question 47

In large companies with several categories of products, there's another layer of management referred to as category manager.

Question 48

When a client has restructured or key personnel have changed functions, they will send out a:

A)RSVP.
B)RFP.
C)RFID.
D)DOA.
E)UPC.

Question 49

Because of new technology and the abundance of data available, the average tenure for a CMO has been increasing to beyond two years.

Question 50

The dreaded agency review process begins when the client:

A)tries to breathe new life into an old product.
B)develops a new product.
C)can't afford the services of their current agency.
D)wants to decrease real unit growth.
E)can no longer handle the constant shift in account personnel.

Question 51

Brand contact is the term for all the ways customers encounter an organization.

Question 52

In a report prepared for the Association of National Advertisers, most companies expected their advertising to:

A)address a general audience over a general time.
B)convince a specific number of potential customers to repeat their purchase of the companies' products.
C)effectively go through a spectrum of marketing communications goals.
D)increase their dollar sales or increase their share of market.
E)win a Golden Calf at Cannes.

Question 53

Among questions a client ponders before deciding to search for an advertising agency, which would NOT likely be a major consideration?

A)Should it be a full-service agency?
B)Should it be a specialized agency?
C)Should it have integrated services?
D)Should it be small, medium, or large?
E)Should it be a perennial award-winning operation?

Question 54

Consultants hired to find their clients the best agency to handle their accounts usually do all of the following EXCEPT:

A)apply for the account themselves.
B)negotiate compensation agreements.
C)manage the search process.
D)conduct the initial screening.
E)bill the client between $35,000 to $100,000.

Question 55

Which of the following is more an advertising than a marketing goal?

A)to help to increase sales
B)to help to increase share of market
C)to make prospective customers aware that Brand X has an ingredient that helps remove stains
D)to help to increase attendance at a rock concert
E)to help to increase the use of coupons

Question 56

A discussion of financial arrangements for a new agency contract should cover which of the following?

A)Does it have a good enough reputation to provide a guarantee of reasonably priced placements?
B)Will your account be a straight 15 percent commission, a fee account, or a combination of both?
C)Who will service your account, and how will it be staffed?
D)Can it work domestically as well as in the international arena?
E)What are bonus requirements and payment options?

Question 57

In a typical marketing service-type organization, a vice president of advertising reports to the CEO.

Question 58

The new reality for advertisers is that consumers control how they use media and marketing.

Question 59

Which P in the five new Ps of marketing did Saturn use to move its cars into the consumer's mindset?

A)paradigm
B)placement
C)price
D)prospect
E)possession

Question 60

Longtime advertising executive Tom Patty says there is a new set of elements in the five Ps of marketing, including:

A)palindrome.
B)passion.
C)people.
D)product.
E)pervasiveness.

Question 61

After all is said and done, most advertising and marketing agencies have made IMC itself a fundamental goal.

Question 62

Promotions always seem to pay for themselves in short term, but advertising never seems to.

Question 63

When a marketing department is restructured or there are several changes in management, there's a tendency to call for an RFP.

Question 64

A downside to using the percentage of sales approach in budgeting is that it reverses the assumed cause-and-effect relationship between advertising and sales.

Question 65

Today, retailers and other channel members control shelf space and receive most of the marketing dollars.

Question 66

Almost 80 percent of advertising budgets for the upcoming year are approved during July and August.

Question 67

One major reason it is so difficult to measure the results of advertising is that the specific results sought by advertising are rarely specifically defined.

Question 68

The 70/20/10 approach to determine advertising effectiveness ought to work well in today's world of marketing.

Question 69

For competitive budgeting, advertising spending is based on the percentage of sales plus whether the advertiser is in a defensive or offensive mode.

Question 70

ROI marketing is a philosophy rather than a fix.

Question 71

The task method is the most difficult budget method for advertising although it is the most logical.

Question 72

Some observers note that promotions always pay for themselves in the short term, but advertising never pays for itself in the short run.

Question 73

One of the newer elements in the traditional Ps of marketing, according to executive Brad Majors, is prospect.

Question 74

A factor driving change in marketing has been the consolidation of the media universe.

Question 75

To increase sales or to gain a bigger share of market is a legitimate advertising goal.

Question 76

Longtime advertising executive Tom Patty suggests there are five new Ps that are more relevant in the new competitive marketing environment than the traditional Ps of marketing.

Question 77

Today, clients pay a consultant from $135,000 to $200,000 to conduct an agency search.

Question 78

In the new media age, organizations can only hope to be part of the dialog among consumers.

Question 79

Using IMC to coordinate all of an organization's messages helps to create a unified image and support relationship building with customers.

Question 80

A scale that allows users to rate the attributes of a bidding agency from, for example, one for outstanding up to five for unsatisfactory is an effective evaluation tool.