Deck 10: Creating Customer Dialogue

Question 1

The best method for budgeting in order to reach strategic objectives is the all-you-can-afford method.

Answer 1

False

Question 2

One distinction that sets the objective-and-task method apart is that strategy precedes budgeting.

Answer 2

True

Question 3

The hierarchy-of-effects model focuses upon building a synergistic combination of communication equipment and assets.

Answer 3

False

Question 4

In business markets,brands tend to be built upon clever advertising and a single campaign more than experience and long-run consistency.

Question 5

Integrated marketing communication aims to meet the 'information needs of the buyer',result in the desired position and secure the appropriate action at the right time with laser-like precision.

Question 6

Personal selling allows messages to be "tailored" to each individual buyer,but at a higher relative cost to advertising.

Question 7

Business customers do not like or use,any form of telemarketing.

Question 8

IMC is strategic,two-way communication targeted to specific customers and their needs,all coordinated through a variety of media.

Question 9

In the business area,unlike the final consumer market,sugging is considered to be appropriate and ethical.

Question 10

A key goal for a communication strategy is the position one desires to achieve.

Question 11

The only action goal of interest to the marketer is that of sales results.

Question 12

In the business marketing area,advertising is often used to "sell" the firm's personal sales force before a salesman actually calls on the potential buyer.

Question 13

Compared to other areas,the goals of integrated communications are much easier to measure accurately.

Question 14

In developing communications for different markets,the marketer must try to avoid confusion/credibility loss that may be created by "mixed messages".

Question 15

In a customer acquisition situation,a natural communication link is already established.

Question 16

CRM systems provide routine reports on orders,sales,returns,inquiries and website visits.

Question 17

Tactical goals specify the desired outcomes for specific communication efforts.

Question 18

PR is a specialized communications tool that is best reserved for crisis situations which threaten the firm's profits and/or reputation.

Question 19

The goal-setting process for communications planning includes determining the audience and deciding what the marketer wants the audience to get out of the communication.

Question 20

Billing and shipping are part of communication with customers,but it is unlikely that these elements of communication will be part of a marketing communications budget.

Question 21

In this step of the CRM process,a strategy is designed,which involves multiple channels such as direct mail,e-mail,print advertising,trade shows and even field sales efforts.

A) Profile the market
B) Forecast market and business needs
C) Design communication strategy
D) Specify implementation strategy
E) Evaluate customer wants

Question 22

Interest:

A) Reflects the buyer's desire to learn more about what is being discussed
B) Is created when potential buyers become acquainted with the product
C) Is the recognition by the buyer that when the needs occur, that is the brand or product to buy
D) Is the desired behavior that one wants from the audience
E) Is reflected in a consumer visiting a trade show or a website

Question 23

Which of the following statements about integrated marketing communications is false?

A) The communication strategy is fragmented, rather than integrated
B) Coordination is a powerful element of an integrated communications strategy
C) Many companies find integration difficult due to turf battles and a reluctance to invest in the needed databases
D) Consumer marketers are more likely to capitalize on the power of integrated marketing communications than business marketers
E) A firm's internal departments responsible for different elements, maybe reluctant to give up control over its respective area

Question 24

The term 'prospect' best defines someone:

A) Who uses the budgeting process to feather a nest
B) For whom we know the needs, budget and time frame for purchase
C) Who brings out a product that is at least one step better technologically
D) Whose products are brought first to the market
E) Who obtains a measurable action outcome

Question 25

Goals that aim at changing minds of customers by seeking repeat purchase or a call to set an appointment can be best described as:

A) Strategic goals
B) Tactical goals
C) Action goals
D) Positioning goals
E) Social goals

Question 26

In the CRM process,implementing the communication strategy involves:

A) Creating segments by grouping similar customers together
B) Strategic, two-way communication targeted to specific customers
C) What offers are made
D) Providing customer service personnel with segment information on each customer
E) What needs the product should meet

Question 27

_____ is the recognition by the buyer that when the needs occur,that is the brand or product to buy.

A) Attraction
B) Awareness
C) Interest
D) Action
E) Desire

Question 28

A strategic,two-way communication targeted to specific customers and their needs,all coordinated through a variety of media,is best known as:

A) Grapevine communication
B) Complex communication
C) Integrated marketing communication
D) Dual-method communication
E) Professional sales communication

Question 29

_____ involves how the customer chooses to interact and buy from the organization and it involves listening to and learning from the customer.

A) Customer relationship management
B) Total quality management
C) Complexity management
D) Strategic enterprise management
E) Human resource management

Question 30

The attempt to define the product's image/meaning in the mind of a prospect is called:

A) Prospecting
B) Branding
C) Positioning
D) Advertising
E) Packaging

Question 31

This is the desired behavior that one wants from the audience.

A) Awareness
B) Desire
C) Action
D) Interest
E) Attraction

Question 32

When a company segments for CRM purposes,the segmentation is based on:

A) What needs the product should meet
B) How the customer wants to interact
C) Matching the product to the customer needs
D) The product's stage of maturity
E) Communication channels

Question 33

Which of the following statements about 'building the brand' is false?

A) Every communication program should be seen as a brand-building opportunity
B) Brand building is the process of creating that personality or set of association for the brand
C) In business markets, brands tend to be built upon experience and long-run consistency, more than clever advertising and a single campaign
D) Brands can be built upon clever advertising and campaigns in business markets rather than experience and consistency
E) The brand not only serves as an information processing heuristic for buyers, it can serve as a safeguard in the exchange, the seller's pledge to be honored

Question 34

Communication goals should typically be based on:

A) Competitor strategy
B) The available budget for advertising
C) The firm's strategic goals
D) The need to move existing inventory
E) Production capacity

Question 35

According to the text,what is the most important strategic goal?

A) Performance
B) Building the brand
C) Sales
D) Price
E) Customer retention

Question 36

The desired outcomes for specific communications are BEST described as:

A) Tactical goals
B) Strategic goals
C) Communication goals
D) Positioning goals
E) Action goals

Question 37

These are goals aimed at changing minds of customers regarding corporate images,beliefs about the specific product etc.

A) Strategic goals
B) Tactical goals
C) Action goals
D) Positioning goals
E) Social goals

Question 38

The CRM process involves all the following steps EXCEPT:

A) Evaluate
B) Profile the market
C) Design communication strategy
D) Implement
E) Forecast market and business needs.

Question 39

The _____ model describes the information processing stages through which a target must pass prior to purchase.

A) Buy-phase
B) Hierarchy-of-effects
C) Multiattribute
D) Buying determinants
E) PLC

Question 40

_____ is created when potential buyers become acquainted with the product or brand.

A) Attraction
B) A deal
C) Desire
D) Action
E) Awareness

Question 41

In terms of business marketing,securing 300 visitors to a trade show booth who bring coupons from a direct mail campaign best illustrates:

A) Tactical goals
B) Strategic goals
C) Operational goals
D) Positioning goals
E) Action goals.

Question 42

The _____,is what the marketer offers to pay per click on its site,for its firm name to appear when a potential customer searches using that term.

A) Search rate
B) Recall rate
C) Bid level
D) Reserve price
E) Information price

Question 43

This is initiated by the marketer and can be used to set appointments for field salespeople,invite prospects to visit the trade show booth,renew memberships and other actions.

A) B2B telemarketing
B) Call center outsourcing
C) Outbound telemarketing
D) B2C telemarketing
E) Inbound telemarketing

Question 44

Advertising:

A) Is nonpersonal, one-way communication
B) Involves listening to and learning from the customer
C) Provides us the strategic framework for understanding how to create customer dialogue
D) Segments and profiles the market
E) Aims to meet the product requirements of the buyer

Question 45

Magazines written for a specific profession are called:

A) Trade publications
B) Blogs
C) Narrowcasts
D) Special interest publications
E) Promotional publications

Question 46

What is the advantage of personal selling?

A) Requires no investment in management structures
B) Maintaining a sales force is relatively inexpensive
C) Training and other costs are negligible
D) Cost-per-contact is very low
E) Communication can be adapted to fit the needs and personality of the buyer

Question 47

Sugging:

A) Is the seller's ability to provide value
B) Generally refers to marketing efforts to secure a valued categorization in the mind of a customer
C) Is the percentage of accounts that continue doing business with the seller each year
D) Is selling under the guise of doing research
E) Means that members of a market can be reached by some directed marketing activity

Question 48

PR:

A) Seeks to build/maintain mutual goodwill
B) Is basically a crisis management tool
C) Is best used in isolation from other forms of promotion
D) Is impersonal, one-way communication
E) Has more control over what is said than advertising

Question 49

An effort by firms to manage the key word content of their web pages and the number of external links to their site on other sites in order to come up on the first page of searches is:

A) Search engine marketing
B) Affiliate marketing
C) Pay per click advertising
D) Search engine optimization
E) Interactive advertising

Question 50

_____ is electronic communication initiated by the customer that can be used to take orders and for customer service.

A) B2C telemarketing
B) Inbound telemarketing
C) B2B telemarketing
D) Outbound telemarketing
E) Call center outsourcing

Question 51

Interpersonal communication in which one person attempts to secure a purchase from another person is:

A) Direct marketing
B) Telemarketing
C) Public relations
D) Personal selling
E) Advertising

Question 52

_____ goals are set for those communications that are intended to cause the receiver to do something.

A) Strategic
B) Tactical
C) Action
D) Positioning
E) Operational

Question 53

All of the following statements about telemarketing are true EXCEPT it:

A) Gives the seller the opportunity to observe nonverbal communication.
B) Can be conducted by call centers
C) Involves communicating with customers via telephone and/or other electronic media
D) Is a type of direct marketing.
E) Includes feedback and messages can be immediately altered due to feedback

Question 54

A product's position is determined by:

A) What needs the product should meet
B) Desired outcomes for specific communications
C) How the customer chooses to interact and buy from the organization,
D) The buyer's evaluation of the product along every dimension relative to all other offerings
E) Exploring different possible solutions to a problem buyers are facing

Question 55

All of the following are true about direct marketing EXCEPT:

A) Its role is to generate sales and leads
B) It uses advertising media to obtain a measurable action outcome
C) It is a one-way communication
D) It can be delivered by mail, fax or Internet and includes catalogs
E) It is used for obtaining feedback from potential and current customers

Question 56

In _____ the marketer may bid on key search terms and thereby have its firm name appear when a potential customer searches using that term.

A) Email marketing
B) Search engine marketing
C) Affiliate marketing
D) Interactive advertising
E) Web optimization

Question 57

Which of the following statements about trade shows is false?

A) They offer the advantage of personal interaction
B) They are temporary exhibitions of products and services
C) The first trade shows were open-air markets set up at fairs and festivals
D) They can contribute to both positioning and action goals
E) They tend to be very expensive and usually not worth the investment

Question 58

All of the following statements are true of advertising EXCEPT:

A) Low per-contact costs
B) The ability to reach inaccessible buying influences
C) The ability to reach unknown buying influences
D) The ability to reach large numbers of potential buyers
E) The message is altered as a result of feedback

Question 59

Why is sugging considered unethical?

A) It gives little or no regard for the company's long-run positioning aims
B) The content in blogs appear to be written by someone other than a company employee
C) It can negatively impact the power of PR
D) During interaction, customers feel they are talking to many different companies instead of one, which is not the way to build a relationship
E) The basic premise is a lie

Question 60

According to the text,what is the final purpose of advertising?

A) To create awareness
B) To generate sales
C) To strengthen a company's position or image
D) To create a favorable climate for salespeople
E) To communicate

Question 61

Write a short note on the objective-and-task method of budgeting and its advantages?

Question 62

Compare and contrast search engine marketing and search engine optimization?

Question 63

What are the types of breakdown methods of budgeting for communications?

Question 64

Identify the incorrect statement about marketing research.

A) It is not a part of the overall communications mix.
B) It can communicate the organization's commitment to the customer.
C) It is one avenue for feedback in communication.
D) It is not usually included in the same conversation as selling or advertising.
E) It plays an important role in feedback communication.

Question 65

Traditionally,when business marketers discussed their marketing communications budget,they meant their:

A) Sales budget
B) Advertising budget
C) Marketing budget
D) Public relations budget
E) Production budget

Question 66

_____ can be one avenue for feedback and can communicate to the customer that the organization is committed to the customer.

A) Marketing research
B) Advertising
C) Direct marketing
D) Branding
E) Positioning

Question 67

Why is it imperative to integrate marketing communications?

Question 68

New firms and financially weak firms are most likely to use:

A) Objective-and-task budgeting
B) Percentage-of-sales budgeting
C) All-you-can-afford budgeting
D) Competitive parity budgeting
E) Top-down budgeting

Question 69

Write a short note on the hierarchy-of-effects model and its various stages?

Question 70

Which of the following is the most sophisticated of the budgeting methods?

A) Percentage-of-sales
B) Objective-and-task
C) Competitive parity
D) Share of market
E) All-you-can-afford

Question 71

Which of the following seeks to forecast sales before the marketing communication budget is developed?

A) All-you-can-afford matrix
B) Percentage-of-sales
C) Competitive parity
D) Share-of-market
E) Top-down forecasts

Question 72

The majority of marketing dollars are spent on:

A) Advertising
B) Trade shows
C) Public relations
D) Direct marketing
E) Sales promotion

Question 73

What is the disadvantage of personal selling?

A) Maintaining a sales force is expensive, requiring investments in management structures
B) Communication cannot be adapted to fit the needs of the buyer
C) The offer cannot be changed to fit the buyer's requirements
D) It is difficult for the sale to be completed
E) Communication cannot be changed to conform with the buyer's personality

Question 74

Which of the following budgeting methods assumes that competitors' sales are due to their communications and that they are using dollars efficiently?

A) Competitive parity
B) All-you-can-afford
C) Objective-and-task
D) Share-of-market
E) Percentage-of-sales

Question 75

All of the following are advantages associated with the objective-and-task approach EXCEPT:

A) The budgeting process is less of a hindrance
B) The ability to better examine the effectiveness of a strategy
C) The fact that it is strategy-driven
D) The fact that it is learning based
E) The fact that budget is based on cash flow which is in turn based on sales

Question 76

Marketers may seek to "bypass" the hierarchy-of-effects and go directly after the action by using:

A) Persuasion
B) Demands
C) Direct influence
D) Threats
E) Deceptions

Question 77

Budgeting that begins with the manager setting a total communications budget and then allocating the budget to the various forms of communication is:

A) Component budgeting
B) Breakdown budgeting
C) Top-down budgeting
D) Prioritized budgeting
E) Build-up budgeting

Question 78

All of the following statements about touchpoints are true EXCEPT:

A) They include service calls made by field technicians
B) They can be used to collect information from the customer if the company has a system for gathering and sharing that information
C) They are important opportunities to reinforce the brand position
D) They can be adapted to fit the needs and personality of the customer
E) If they provide less, they will create confusion and dissatisfaction in the customer's mind

Question 79

Which of the following is more expensive,on a cost-per-contact basis,compared with other forms of communication?

A) Telemarketing
B) Personal selling
C) Public relations
D) Direct marketing
E) Advertising

Question 80

The best method for budgeting in order to reach strategic objectives is the:

A) Share-of-market method
B) All-you-can-afford method
C) Percentage-of-sales method
D) Objective-and-task method
E) Competitive parity method