Question 1

The owners of Sun Buns,a new beach-side baker in California,set the following advertising objective: "Increase awareness of the Sun Buns brand from 45 to 55 percent." Which of the following best characterizes this objective?

Accepted Answer

A)  not quantitative 
B)  unrealistic 
C)  imprecise 
D)  specific in terms of the amount of change 
E)  qualitative

Question 2

According to the traditional view,a brand's sales volume during any given period is the consequence of a host of factors in addition to marcom efforts.

Accepted Answer

A) True 
 B)False

Question 3

What is the best recommendation for a brand that has a relatively low share of market and competitors have a relatively high share of voice?

Accepted Answer

A)  Increase advertising expenditures to defend position. 
B)  Find a defensible niche and decrease advertising expenditures. 
C)  Attack with a large share of voice premium over all competitors. 
D)  Maintain a modest advertising spending premium over competitors. 
E)  Cut all advertising expenditures.

Question 4

Which budgeting method considers advertising along with other marcom elements as relatively unimportant to a brand's present success and future growth?

Accepted Answer

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

Question 5

Marcom objectives should be qualitative and measurable.

Accepted Answer

A) True 
 B)False

Question 6

Harriet is a marcom manager who asserts that using sales as the objective for a branded product's marcom effort is unsuitable because she feels that sales are a function of other factors in addition to marcom efforts.Harriet is espousing which view?

Accepted Answer

A)  traditional view 
B)  common view 
C)  heretical view 
D)  revolutionary view 
E)  middle-of-the-road view

Question 7

Explain the differences between the traditional view and the heretical view for having sales represent the advertising objective.Explain which view you support.

Accepted Answer

The answer of Explain the differences between the traditional view...

Question 8

The hierarchy-of-effects model implies that for marketing communications to be successful,the various marcom elements must advance consumers through a series of behavioral stages.

Accepted Answer

A) True 
 B)False

Question 9

The criticism that the percentage-of-sales budgeting technique is not logical is based on the idea that _____.

Accepted Answer

A)  sales volume cannot be estimated accurately 
B)  it results in excessive amounts of funding being invested in advertising 
C)  it confuses objectives with goals 
D)  it reverses the true functional relationship between advertising and sales 
E)  advertising effectiveness cannot be measured

Question 10

The process of setting objectives literally forces top marketing executives and marcom personnel to agree on the course that a brand's marcom strategy will take for the following planning period as well as the tasks it is to accomplish for a specific brand,thus providing a formalized expression of _____.

Accepted Answer

A)  guidelines 
B)  standards 
C)  hierarchy of effects 
D)  competitive advantage 
E)  management consensus

Question 11

According to the heretical view,presales,or communication,objectives such as increase in brand awareness are claimed to be _____.

Accepted Answer

A)  precisely right 
B)  precisely wrong 
C)  vaguely right 
D)  vaguely wrong 
E)  just plain wrong

Question 12

Assume that the total advertising expenditures for shoe manufacturers is $828 million and Nike spends $207 million.Nike's _____ would be 25 percent.

Accepted Answer

A)  share of market 
B)  share of objectives 
C)  share of voice 
D)  share of goals 
E)  share of stage

Question 13

The first step of the objective-and-task method is _____.

Accepted Answer

A)  assessing the communications functions 
B)  establishing specific marketing objectives that need to be accomplished 
C)  determining advertising's role in the total communication mix 
D)  establishing specific advertising goals in terms of the levels of measurable communication response required to achieve marketing objectives 
E)  establish the budget based on estimates of expenditures required to accomplish the advertising goals

Question 14

When MC > MR there is a _____.

Accepted Answer

A)  marginal gain 
B)  sub-optimization of profits 
C)  need for increased advertising 
D)  marginal loss 
E)  maximization of profits

Question 15

Which of the following is a step in the hierarchy-of-effects model?

Accepted Answer

A)  unawareness 
B)  expectations 
C)  trial 
D)  beliefs 
E)  All of these are correct.

Question 16

Most product categories average _____ advertising-to-sales ratios.

Accepted Answer

A)  less than 5 percent 
B)  10 percent 
C)  20 percent 
D)  30 percent 
E)  more than 50 percent

Question 17

The owner of a new pizzeria set the following marcom objective: "Make consumers aware of this new restaurant." This objective suffers from _____.

Accepted Answer

A)  being unrealistic 
B)  not being quantitative and measurable 
C)  not being internally focused 
D)  being externally focused 
E)  being too specific

Question 18

The antithesis of the traditional view toward advertising objectives (i.e.,the heretical view)is that advertising objectives should be stated in terms of sales or market share.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an argument against using sales as the objective for a branded product's marcom effort?

Accepted Answer

A)  A brand's sales volume during any given period is the consequence of a host of factors in addition to marcom efforts. 
B)  Marcom's effect on sales is typically delayed. 
C)  Marcom agency compensation formulas are based on media commissions, not a brand's sales. 
D)  a and b only 
E)  a, b, and c

Question 20

_____ are goals that the various marcom elements aspire to individually or collectively achieve during a scope of time such as a business quarter or fiscal year.

Accepted Answer

A)  Marketing objectives 
B)  Communication objectives 
C)  Sales objectives 
D)  Marcom objectives 
E)  Market share objectives

Exam 8: Objective Setting and Budgeting

The owners of Sun Buns,a new beach-side baker in California,set the following advertising objective: "Increase awareness of the Sun Buns brand from 45 to 55 percent." Which of the following best characterizes this objective?

According to the traditional view,a brand's sales volume during any given period is the consequence of a host of factors in addition to marcom efforts.

What is the best recommendation for a brand that has a relatively low share of market and competitors have a relatively high share of voice?

Which budgeting method considers advertising along with other marcom elements as relatively unimportant to a brand's present success and future growth?

Marcom objectives should be qualitative and measurable.

Harriet is a marcom manager who asserts that using sales as the objective for a branded product's marcom effort is unsuitable because she feels that sales are a function of other factors in addition to marcom efforts.Harriet is espousing which view?

Explain the differences between the traditional view and the heretical view for having sales represent the advertising objective.Explain which view you support.

The hierarchy-of-effects model implies that for marketing communications to be successful,the various marcom elements must advance consumers through a series of behavioral stages.

The criticism that the percentage-of-sales budgeting technique is not logical is based on the idea that _____.

According to the heretical view,presales,or communication,objectives such as increase in brand awareness are claimed to be _____.

Assume that the total advertising expenditures for shoe manufacturers is $828 million and Nike spends $207 million.Nike's _____ would be 25 percent.

The first step of the objective-and-task method is _____.

When MC > MR there is a _____.

Which of the following is a step in the hierarchy-of-effects model?

Most product categories average _____ advertising-to-sales ratios.

The owner of a new pizzeria set the following marcom objective: "Make consumers aware of this new restaurant." This objective suffers from _____.

The antithesis of the traditional view toward advertising objectives (i.e.,the heretical view)is that advertising objectives should be stated in terms of sales or market share.

Which of the following is an argument against using sales as the objective for a branded product's marcom effort?

_____ are goals that the various marcom elements aspire to individually or collectively achieve during a scope of time such as a business quarter or fiscal year.