Deck 7: Establishing Objectives and Budgeting for the Promotional Program

Question 1

programs which do not contain specific objectives:

A)will often have too many benchmark measures against which the success or failure of their programs can be assessed
B)will never be successful
C)may find it difficult to facilitate coordination of the efforts of various groups working on a promotional campaign since the various groups may not understand what goal they are working toward
D)will be able to save money since they won't spend too much time worrying about what they are trying to do
E)be more successful than companies that develop IMC programs with specific objectives

Answer 1

C

Question 2

Which of the following statements best describes the relationship between marketing and communications objectives?

A)Marketing objectives and communications objectives are synonymous.
B)Marketing objectives evolve from communication objectives.
C)Communications objectives are derived from marketing objectives.
D)For a successful campaign,communications objectives can be developed before or after the development of marketing objectives.
E)There is no relationship between the two.

Answer 2

C

Question 3

After initially cutting prices in response to decreased demand fro cereal,Kellogg's found that sales some heavily advertised brands were increasing.The firm then increased advertising in order to:

A)reduce other promotional costs
B)maintain brand differentiation achieved through advertising
C)coordinate production scheduling with seasonal demand variations
D)meet consumers' needs for selling objectives
E)all of the above

Answer 3

B

Question 4

Many marketing managers prefer sales-oriented objectives for advertising because they believe:

A)the reason a company spends money on advertising and promotion is to sell its products or service
B)money spent on advertising and promotion should show measurable results
C)sales-oriented objectives help get everyone involved in the promotional program to think about how advertising and promotion will influence sales
D)objectives should be based on the achievement of sales results
E)all of the above are true

Question 5

_____ perspective and believe the objective of advertising and other promotional mix elements is to relay information about a product to customers.

A)informational
B)communications
C)sales-oriented
D)segmentation
E)product development

Question 6

Arden's task is to determine what was accomplished by his company's advertising and promotional program for a vinyl siding cleanser.You are able to tell him that:

A)his task is impossible
B)all he needs is sales results to determine what the program accomplished
C)his task is easier if specific communications objectives were set
D)all he needs is post-promotional consumer awareness levels to determine what the program accomplished
E)this is the easiest task his company has ever asked him to perform if the company did not set specific objectives

Question 7

Before setting objectives for advertising and promotion,an organization should:

A)conduct a situation analysis to identify marketing and promotional issues facing the firm
B)develop its media objectives
C)develop creative objectives
D)develop communication goals
E)create a creative mission statement

Question 8

Which of the following is NOT given as a realistic reason for setting specific objectives for an integrated marketing communications program?

A)Specific objectives serve as communication devices and facilitate coordination of various groups working on the campaign.
B)Specific objectives serve as a guide for planning and decision making.
C)Specific objectives provide a benchmark against which success or failure of a campaign can be measured.
D)Specific objectives help specify a method and criteria for assessing how well the promotional program is working.
E)Specific objectives provide specific ideas on how to develop more creative and effective advertising.

Question 9

_____ objective:

A)communication;marketing
B)communication;positioning
C)marketing;communication
D)positioning;organizational
E)advertising;functional

Question 10

_____ objectives are types of objectives that are usually stated in terms of specific,measurable outcomes such as sales volume,market share,or return on investment.

A)Sales
B)Marketing
C)Communication
D)Advertising
E)Organizational

Question 11

Financially oriented managers who view marketing communications as an expense rather than an investment are likely to prefer _____ objectives for advertising and other promotional areas.

A)sales-oriented
B)communication
C)positioning
D)image
E)functional

Question 12

The more specific the firm's advertising objectives,the:

A)easier it becomes to measure advertising effectiveness
B)more difficult it is for competitor's advertising to be effective
C)easier it is to measure the advertising-sales response function
D)smaller the funding needed to meet advertising goals
E)more difficult it is for a competitor to use competitive parity budgeting

Question 13

In addition to advertising and promotion,_____ might also influence a company's sales.

A)product quality
B)price
C)economic factors
D)distribution
E)all of the above

Question 14

To develop integrated marketing communications objectives,managers need the situation analysis to provide them with information on:

A)demographics and purchase motives of target markets
B)the main features,advantages and benefits of the product to be promoted
C)competitors' brands
D)how the brand should be positioned
E)all of the above

Question 15

_____ objective.

A)marketing
B)organizational
C)advertising
D)functional
E)communication

Question 16

To many marketing managers,the only goal of their company's advertising and promotional program is to:

A)position the company and its brands
B)create a positive corporate image
C)generate sales
D)create memorable advertising
E)create awareness of the company

Question 17

To be effective,marketing objectives need to be:

A)reasonable and attainable
B)erudite and challenging
C)philosophical and fungible
D)long-term and qualitative
E)all of the above

Question 18

The "Starbucks Turns to National Advertising" opening vignette in chapter 7 reports on one of the prime issues facing Starabucks is the use of national advertising:

A)may create social concerns about their environmental policies
B)could hurt employee morale
C)does not provide qualitative benchmark measures
D)could reduce advertising selectivity
E)may be inconsistent with its brand image See opening vignette.

Question 19

The purpose of setting specific advertising goals and objectives is to:

A)provide a standard against which performance can be measured
B)put constraints on the creative department
C)have a method of determining when to delete products from the product line
D)forecast the market share level that can be attained by good advertising
E)protect all investors and debt holders

Question 20

Marketing goals defined in terms of sales,profits or market share increases are:

A)situational response objectives
B)usually not appropriate for promotional objectives
C)integrated marketing communications objectives
D)relationship marketing objectives
E)internal marketing goals

Question 21

Sales-oriented objectives are appropriate for:

A)all Internet marketing
B)retail advertising promoting a sale or special event
C)products that have been introduced in a highly volatile market
D)any advertising campaign aimed at maintaining brand awareness
E)all of the above

Question 22

Which of the following is at the top of the communication effects pyramid?

A)awareness
B)knowledge
C)liking
D)preference
E)purchase/repurchase

Question 23

In 2007,Cingular acquired AT&T but renamed itself using AT&T.The choice of the name reflected consumers' awareness and recognition of an established brand.Advertising to make consumers aware of new combined firm would more than likely have _____ objectives.

A)sales-oriented
B)market-oriented
C)product development
D)communications
E)product penetration

Question 24

Various response hierarchy variables such as awareness,knowledge,interest,attitudes,and intention are the basis for:

A)marketing objectives
B)sales-oriented objectives
C)image objectives
D)communications objectives
E)the carry-over effects

Question 25

Managers who use the communications effects pyramid to set objectives believe:

A)lower-level objectives such as purchase and reuse form the foundation of the communications program
B)the foundation of the communications program is set by accomplishing lower-level objectives such as awareness,knowledge,and comprehension
C)advertising and promotion should first accomplish lower-level objectives such as trial and purchase
D)advertising and promotion should first accomplish higher-order objectives such as trial and purchase and then create awareness and brand knowledge
E)advertising and promotion cannot accomplish lower-order objectives

Question 26

Which of following is a likely problem for a manager who uses sales as a measure of advertising effectiveness?

A)Sales results offer little guidance or direction to those responsible for planning and developing the advertising program.
B)There is a short,often unmeasurable,time period between when advertising is run and when sales actually occur.
C)Sales results are affected by no marketing mix variable other than price and promotion.
D)No internal environmental variables have any significant influence on sales results.
E)With the correctly selected promotion variables,no external environmental variables have any significant influence on sales results.

Question 27

The use of sales as an advertising objective can be difficult due to:

A)how difficult it is to isolate the effects of advertising on sales
B)the fact there is often a lagged effect whereby the effect of advertising on sales is not immediate
C)the fact advertising objectives emphasizing sales are generally not good operational guides to decision making
D)the fact they offer little guidance for those responsible for planning and developing promotional programs
E)all of the above

Question 28

Heinz developed a sales promotion program called "All About Family." It offered a coupon good for free Halloween candy when you purchased any of five different participating Heinz brands.Cents-off coupons for the participating brands were placed in newspaper inserts.The campaign also featured a contest called the "Ultimate Family Night" sweepstakes.Heinz management most likely used _____ objectives to measure the effectiveness of this sales promotion.

A)communication persuasiveness
B)short-term sales
C)long-term sales
D)brand inquiry
E)information parameters

Question 29

Which of the following statements about communications objectives is true?

A)When setting objectives using the communications effect pyramid,the last step reached is trial.
B)Sales goal cannot be translated into communications objectives.
C)Marketing and advertising managers do not rely on experience and intuition when setting communications goals.
D)Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals.
E)All of the above statements about communications objectives are true.

Question 30

DAGMAR is:

A)a philosophy of advertising goal setting
B)a model of consumer behavior
C)a method of setting sales objectives
D)the most often used method of setting objectives
E)an attitude measurement device

Question 31

The carryover effect:

A)has no impact on sales objectives
B)has no effect on the relationship between advertising and sales
C)encourages the use of nonspecific objectives
D)is particularly apparent with mature,low-priced,and frequently purchased products
E)is accurately described by all of the above

Question 32

Which of the following statements about communications objectives is true?

A)It is easy to translate sales goals into communications objectives.
B)It can be difficult to determine the relationship between communications objectives and sales performance.
C)Communications objectives cannot serve as operational guidelines to the planning,execution,and evaluation of the promotional program.
D)Marketing managers do not recognize the value of setting communications objectives.
E)There are precise formulas to use when translating sales goals into specific communications objectives.

Question 33

Advocates of communication-based objectives for advertising propose using _____ as a basis for setting these objectives.

A)sales
B)market share
C)stages of a hierarchical response model
D)carry-over effects
E)market behavior

Question 34

The concept of advertising expenditures producing long term as well as immediate results is known as:

A)the carry-over effect
B)the communication effect
C)the low-involvement effect
D)the halo effect
E)DAGMAR

Question 35

Which of following is a likely problem for a manager who uses sales as a measure of advertising effectiveness?

A)Sales results offer little guidance or direction to those responsible for planning and developing the advertising program.
B)There is often a long period between when advertising is run and when sales actually occur.
C)Other marketing mix variables besides advertising can affect sales results.
D)The marketing and competitive environment can influence sales.
E)All of the above are likely problems for a manager who uses sales as a measure of advertising effectiveness.

Question 36

For which of the following would an advertiser be most likely to use a sales-oriented objective?

A)a direct response ad for a record album
B)a commercial for a new type of electric-powered automobile
C)a political announcement
D)an anti-drug public service announcement
E)a commercial comparing Verizon to AT&T

Question 37

_____ objective.

A)sales-oriented
B)market-oriented
C)product development
D)communications
E)product penetration

Question 38

_____ is an approach to setting advertising goals and objectives which states that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured.

A)The carryover effect
B)The hierarchy of effects model
C)Zero based communications planning
D)Inside-out communications planning
E)DAGMAR

Question 39

Which of the following statements regarding the relationship between advertising and promotion,and sales performance is true?

A)In mature markets where other marketing mix variables are stable,it is impossible to determine the relationship between advertising and/or sales promotion and sales.
B)The repositioning of brands is often done with a goal of improving sales or market share.
C)When sales expectations are not being met,experienced managers are not very likely to consider changes in their advertising and sales promotion programs.
D)Marketing and brand managers are often under pressure to show sales results and thus may take long-term perspective in evaluating advertising and promotion programs.
E)All of the above statements regarding the relationship between advertising and promotion and sales performance are true.

Question 40

Direct-response advertisers generally set objectives and measure success in terms of:

A)brand awareness
B)brand attitudes
C)purchase intentions
D)sales response generated by an ad
E)brand equity

Question 41

In 2007,Cingular acquired AT&T but renamed itself using AT&T.The choice of the name reflected consumers' awareness and recognition of an established brand.To determine how successful it was in making consumers aware of its name change and its new positioning strategy,the firm could have used:

A)zero-based communications planning
B)a benchmark orientation
C)DAGMAR
D)the carryover effect
E)the recency effect

Question 42

For which of the following advertising communication tasks should the specified time period required be the longest?

A)creating brand awareness
B)increasing brand awareness levels
C)creating knowledge regarding a brand attribute
D)increasing knowledge levels about a brand attribute
E)repositioning a brand

Question 43

_____ can be performed by,and attributed to advertising rather than a combination of marketing factors.

A)advertising hierarchical plan
B)functional communication change
C)communications task
D)marketing task
E)advertising benchmark

Question 44

According the DAGMAR model,which of the following is NOT a characteristic of a good objective?

A)A good objective is concrete and measurable.
B)A good objective specifies the target audience.
C)A good objective includes benchmark positions and the degree of change sought.
D)A good objective specifies a time period for accomplishment.
E)A good objective is based on sales results.

Question 45

In January 2003,Philip-Morris Companies,Inc.,and Kraft Foods became the Altria Group.The name change reflected the fact the company has changed itself structurally,behaviorally,and culturally.The new name was designed to focus attention on the company's superior performance,financial strength,and its commitment to integrity and corporate responsibility.Which of the following statements about the communications objectives the company would have used as part of this repositioning strategy is true?

A)The communications objectives established with this strategy would need to be abstract.
B)It would be impossible for the company to have any benchmark measures for determining whether it reached its communications objectives.
C)A communications objective concerning the repositioning of the Altria Group would take longer to accomplish than an objective designed to create brand awareness.
D)The target audience could not be specifically defined in the communications objective.
E)Quantitative benchmarks would be impossible due to the fact the Altria Group markets new products.

Question 46

According to the DAGMAR model,a good communications objective does NOT:

A)target an aggregated market
B)specify a time period during which the objective must be accomplished
C)indicate a benchmark starting point
D)specify degree of change sought
E)specify a specific target audience

Question 47

According to the criteria outlined in DAGMAR,which of the following is the best statement of a quantitative communications objective?

A)"Increase product users to 40 percent of the total market."
B)"Win new customers and increase sales volume by 15 percent."
C)"Increase the number of customers mentioning the brand name when asked for brand preference from 40 percent to 50 percent."
D)"Increase awareness of the brand."
E)"Increase sales revenue by 10 percent."

Question 48

Which of the following is NOT an example of a common criticism of DAGMAR?

A)It ignores communications objectives.
B)It is difficult to implement.
C)It is a costly and time-consuming process.
D)It runs counter to the belief that the function of advertising is to create sales.
E)It inhibits creativity.

Question 49

A stereo speaker manufacturer developed advertising objectives,which stated that the goal of the company's new ad campaign is "To communicate our ability to create an environment of total audio ambiance in the home." This statement could serve as an example of a:

A)target audience delineation
B)benchmark measure
C)communications task
D)sales objective
E)short-term promotional objective

Question 50

Why might a small company with limited resources NOT want to use the DAGMAR approach to setting objectives?

A)DAGMAR does not support the use of communications objectives.
B)DAGMAR requires managers to use more subjectivity in setting objectives than other methods.
C)Small companies are unlikely to want to spend money on marketing research to develop benchmark measures and track advertising effects.
D)Small companies often cannot identify their real target audience.
E)All of the above are reasons why a small company with limited resources may not want to use the DAGMAR approach to setting objectives.

Question 51

According to DAGMAR,the basic function of advertising is to:

A)create sales
B)communicate
C)increase market share
D)generate action
E)change behavior

Question 52

Using the DAGMAR approach,which of the following is NOT a stage of commercial communication?

A)awareness
B)comprehension
C)conviction
D)action
E)sales

Question 53

Successful communications objectives must:

A)be concrete and measurable
B)specify a time period for accomplishing the objective
C)specify well-defined target market
D)have benchmark measures as starting points
E)be all of the above

Question 54

You are working in the advertising department of a large consumer products company.You have suggested the company use the DAGMAR approach to setting advertising goals.Which of the following is NOT an example of an argument that you are likely to hear against the use of the DAGMAR approach to set advertising goals?

A)Sales should be the measure of advertising effectiveness rather than communication goals.
B)DAGMAR inhibits creativity in advertising.
C)DAGMAR can be quite expensive due to research costs and is thus good only for large companies.
D)DAGMAR is too quantitative for most managers to understand.
E)It is difficult to show the relationship between the communications objectives advocated by DAGMAR and sales.

Question 55

Determining a target market's present level of awareness,knowledge and liking toward a product often requires the taking of _____ measures.

A)benchmark
B)sales interval
C)qualitative awareness
D)quantitative awareness
E)reach and frequency

Question 56

Assume the Greyhound Bus Company runs a six-month advertising campaign promoting its convenient bus routes and excellent on-time service without conducting any sort of marketing research.At the end of the six-month period,Greyhound conducts a study and finds 80 percent of its frequent travelers agree the bus company has convenient bus routes and excellent on-time service.Greyhound can conclude that:

A)the campaign was successful in changing perceptions regarding its fares
B)the campaign was successful in changing perceptions regarding its service
C)the campaign was not successful since it should have nearly 90 percent of riders agreeing that it offers convenient bus routes and excellent on-time service
D)its advertising is working
E)without benchmark measures,it will never know if the campaign was a success or a failure

Question 57

Before beginning its new advertising campaign,Landmark Bank conducted a study to determine consumers' level of awareness and knowledge of the bank and its services as well as consumers' perceptions of the bank's image.These are examples of:

A)advertising goals
B)communication tasks
C)benchmark measures
D)DAGMAR objectives
E)marketing research goals

Question 58

The DAGMAR approach to setting objectives:

A)has had little effect on the advertising planning process
B)has focused advertisers' attention on the value of using communications objectives rather than sales objectives
C)has never been criticized because it focuses on the hierarchy of effects model
D)has increased the degree of subjectivity used in the selection of objectives toward which planners' efforts should be directed
E)has been successful because it is easy to implement

Question 59

DAGMAR MOD II was developed to alleviate problems with:

A)the response hierarchy used in the original DAGMAR model
B)the costs of using DAGMAR
C)the fact DAGMAR ignores sales results
D)setting benchmark measures
E)creating measurable communications objectives

Question 60

According to DAGMAR,advertising objectives should be written in measurable terms that specify:

A)a communications task,a target market,a benchmark starting point,a time period,and degree of change sought
B)a budget,a message strategy,a media plan,and the degree of carryover effect desired
C)the reach,frequency,and point of wearout for advertising messages
D)the purchase motives,demographic composition,and buying habits of the target market
E)sales potentials,market share,return on investment,and budget forecasts

Question 61

An airline company set the following objective for its new advertising campaign: "To increase the percentage of consumers who know our fares are lower than the competitors' from 55 percent to 75 percent over the next six months." Using the criteria associated DAGMAR approach to setting objective,what is wrong with this objective?

A)It is not a concrete statement of what message the airline wants to communicate.
B)It does not contain a benchmark measure and statement of the degree of change sought.
C)It does not specify a specific time period for accomplishing the objective.
D)It does not specify a well-defined target audience.
E)Nothing is wrong with this objective;it satisfies all of the criteria specified in the DAGMAR model.

Question 62

Inside-out planning:

A)focuses on what the marketer wants to say,when the marketer wants to say it,things the marketer believes are important to his or her brand,and the media form the marketer wants to use
B)is another term for zero-based communications planning
C)starts with the customer and builds backward to the brand when developing an IMC program
D)is a method of implementing DAGMAR objectives
E)is used to forecast the validity of DAGMAR objectives

Question 63

According to Robert Steiner,which of the following terms is essentially synonymous with contribution margin?

A)total revenue generated by a product
B)net worth
C)financial optimization
D)marginal analysis
E)total profit generated by a product

Question 64

Outside-in planning:

A)focuses on what the marketer wants to say,when the marketer wants to say it,things the marketer believes are important to his brand,and the media form the marketer wants to use
B)is another term for zero-based communications planning
C)starts with the customer and builds backward to the brand when developing an IMC program
D)is a method of implementing DAGMAR objectives
E)is used to forecast the validity of DAGMAR objectives

Question 65

Well known brand name products do not receive incremental advantages from increased dollar expenditures on advertising.Once the ad hits the market,subsequent budget increases result in little or no incremental gains.This might best be explained by:

A)arbitrary allocation
B)the objective and task method
C)competitive parity
D)an S-shaped response
E)rapidly diminishing returns

Question 66

The concave-downward function model is based on:

A)the microeconomics law of diminishing returns
B)the economic law of supply and demand
C)price elasticity of demand quotients
D)the change in contribution margins as item price is changed
E)perceptual mapping results

Question 67

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

A)concave-upward
B)S-shaped demand
C)S-shaped response
D)marginal utility
E)concave-downward

Question 68

Advertising creative people might oppose the DAGMAR approach to setting objectives because it:

A)inhibits their creativity by putting too much emphasis on numbers and the quantitative assessment of an advertising campaign
B)requires that speculative presentations be created and used to set benchmark measures
C)is only successful if it produces the desired sales results
D)does not provide any type of communication guidelines
E)is too concerned with qualitative assessments of the finished campaign

Question 69

According to Duncan's zero-based marketing communications planning approach,:

A)advertising should always be the main tool for accomplishing marketing communications objectives
B)sales promotion is usually the best tool for accomplishing marketing communications objectives
C)big ideas for a promotional campaign can be based on public relations,advertising,sales promotion or media advertising
D)integrated marketing communications programs should lead with the promotional function that least effectively addresses a company's communication problem or opportunity
E)managers should focus on what the customer wants and work backward to the brand

Question 70

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

A)concave-downward function and the S-shaped response function
B)S-shaped response function and the concave-upward function
C)marginal utility function and the S-shaped demand function
D)S-shaped demand function and the convex-downward function
E)concave-upward function and the S-shaped demand function

Question 71

The S-shaped response function implies that:

A)initial advertising expenditures will have little impact on sales
B)advertising expenditures will have major impact on sales
C)sales effects will follow the microeconomic law of diminishing returns
D)sales will immediately increase then decrease
E)sales will immediately decrease then increase

Question 72

Which of the following statements describes a weakness inherent in the use of the marginal analysis model for establishing an advertising budget?

A)Using this model,it is difficult to demonstrate the effects of advertising and promotions on sales.
B)Environmental factors not considered by the model may affect the effectiveness of the promotional program.
C)Product quality,pricing,and distribution may also contribute to sales.
D)Awareness,interest,and attitude change are also goals of the promotional effort.
E)All of the above describe a weakness inherent in the use of the marginal analysis model for establishing an advertising budget.

Question 73

:

A)asset
B)expense
C)liability
D)investment
E)fixed cost

Question 74

_____ is the difference between total revenue generated by a brand and its total variable costs.

A)Contribution margin
B)Aggregated cost
C)Promotional result
D)Net worth
E)Return on investment

Question 75

According to the concave-downward model,:

A)the effects of advertising quickly begin to diminish
B)the carryover effect is especially true for low-priced,frequently purchased consumer products
C)sales decrease rapidly if the price is too high
D)initial outlays of the advertising budget have little impact on sales
E)sales are not directly related to the size of the advertising budget

Question 76

Many companies fail to set appropriate integrated marketing communications objectives because:

A)they cannot determine which benchmark measures to use
B)subjectivity is as important as creativity in a successful advertising campaign
C)top management has only an abstract idea of what the firm's IMC program is supposed to do
D)they want to target several different target markets
E)corporate culture supports abstract objectives and not the concrete type needed for a successful IMC program

Question 77

According to the S-shaped response curve,:

A)the effects of advertising quickly begin to diminish
B)the carryover effect is especially true for low-priced,frequently purchased consumer products
C)sales decrease rapidly if the price is too high
D)initial outlays of the advertising budget have little impact on sales
E)sales are not directly related to the size of the advertising budget

Question 78

A marketing firm decides to purchase media time in an attempt to sell its new product.After purchasing approximately $1 million dollars 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:

A)arbitrary allocation
B)the objective and task method
C)competitive parity
D)an S-shaped response
E)rapidly diminishing returns

Question 79

In marginal analysis all of the following should be considered EXCEPT:

A)sales
B)fixed costs of advertising
C)advertising expenditures and other variable costs
D)gross margin
E)net worth

Question 80

_____ is an approach to integrated marketing communications planning that involves determining what tasks need to be done and which marketing communications planning functions should be used to accomplish them.

A)The objective/task pyramid
B)DAGMAR
C)Inside out planning
D)Zero-based communications planning
E)Refutational planning