Question 1

The number of times,on average,that audience members are exposed to an advertisement within a given time period is known as:

Accepted Answer

A) average frequency. 
B) reach intensity. 
C) frame rate. 
D) time to target market.

Question 2

In terms of the advertising communication process,translating a product idea or marketing message into an effective ad is called:

Accepted Answer

A) encoding. 
B) allocating. 
C) disseminating. 
D) positioning.

Question 3

Which of the following methods of determining the advertising budget views advertising as a function of sales,rather than sales as a function of advertising?

Accepted Answer

A) The per-unit expenditure approach 
B) The research approach 
C) The competitive parity approach 
D) The task approach

Question 4

Which of the following is a type of promotion that is typically aimed at distributors and retailers of products who make up the distribution channel?

Accepted Answer

A) Trade promotions 
B) Rebates and refunds 
C) Consumer promotions 
D) Premiums

Question 5

Which of the following is a method of determining advertising budget that uses a "followership" technique that assumes that the other firms in the industry know what they are doing and have similar goals?

Accepted Answer

A) The per-unit expenditure approach 
B) The task approach 
C) The competitive parity approach 
D) The research approach

Question 6

_____ is a form of direct marketing.

Accepted Answer

A) Personal selling 
B) Advertising 
C) Sales promotion 
D) Publicity

Question 7

An advertising expenditure approach that initially formulates advertising goals and defines the tasks to accomplish these goals is known as the _____.

Accepted Answer

A) objective approach 
B) task approach 
C) percent-of-sale approach 
D) functional approach

Question 8

The marketing department of Dimension Inc.notices a decline in the buying patterns of its customers.The company's sales for the month of November were low in comparison to its sales for the previous months.To address this issue and add value to its products,Dimension Inc.decides to offer coupons for its products and schedule a sweepstake for Christmas.Which of the following elements of the promotion mix concept is Dimension Inc.using in this scenario?

Accepted Answer

A) Personal selling 
B) Direct marketing 
C) Sales promotion 
D) Public relations

Question 9

From a marketer's perspective,which of the following is a characteristic of direct marketing?

Accepted Answer

A) It decreases store traffic. 
B) It is effective in generating sales leads. 
C) It offers less privacy. 
D) It is very time consuming.

Question 10

Which of the following statements about the various methods of establishing advertising budgets is true?

Accepted Answer

A) The per-unit expenditure approach is most popular in retailing. 
B) The percent-of-sales method is popular with higher-priced merchandise. 
C) The all-you-can-afford approach to budgeting is essentially a "followership" strategy. 
D) The task approach is often used in conjunction with the research approach.

Question 11

In the context of determining how much to spend on advertising,which of the following statements is true about the per-unit expenditure approach?

Accepted Answer

A) This method is popular with higher-priced merchandise. 
B) The basic philosophy underlying this approach is that advertising is defensive. 
C) This approach is often used in conjunction with the research approach. 
D) This approach views sales as a function of advertising,rather than advertising as a function of sales.

Question 12

Which of the following is a sales promotional activity aimed at a company's own sales force?

Accepted Answer

A) Price deals 
B) Samples 
C) Coupons 
D) Bonuses

Question 13

Identify the correct statement about the percent of sales method of determining advertising budget.

Accepted Answer

A) It is characterized by a set of complex calculations that lack simplicity. 
B) It is based on the premise that advertising is needed to generate sales. 
C) It attempts to determine retail prices by using production costs as a base. 
D) It is most suitable for automobiles and appliances owing to its complicated framework.

Question 14

_____ is a nonpaid form of nonpersonal communication about an organization and its products that is transmitted through a mass medium in the form of a news story.

Accepted Answer

A) Advertising 
B) Sales promotion 
C) Publicity 
D) Direct marketing

Question 15

Forever Ageless,a cosmetic manufacturer,introduces a new range of anti-wrinkle creams.The company pays slotting allowances to a retailer in advance to ensure that its products are placed at the front counter of the store where sales are much greater than along the aisle.This act by Forever Ageless is an ethical and legal concern associated with _____.

Accepted Answer

A) advertising 
B) public relations 
C) sales promotion 
D) personal selling

Question 16

Identify a true statement about the per-unit expenditure method of determining advertising budget.

Accepted Answer

A) It bases its advertising budgets on those of competitors or other members of the industry. 
B) It attempts to determine the retail price by using production costs as a base. 
C) It sets the advertising budget as a predetermined share of profits or financial resources. 
D) It involves arguing for and presenting the advertising budget on the basis of research findings.

Question 17

With regard to the objectives of advertising,identify the most accurate statement.

Accepted Answer

A) Advertising is not justified on the basis of the revenue it generates. 
B) The advertising outlays should be increased in every market and medium up to the point where the additional cost of gaining more business exceeds the incremental profits. 
C) The ultimate goal of the business advertiser is to make sales and profits. 
D) Advertising is not subject to the law of diminishing returns.

Question 18

_____ is an activity or material that offers customers or resellers a direct inducement for purchasing a product.

Accepted Answer

A) Sales promotion 
B) Advertising 
C) Public relations 
D) Personal selling

Question 19

Which of the following is an ethical and legal concern associated with personal selling?

Accepted Answer

A) Misrepresenting product health 
B) Encouraging materialism and excessive consumption 
C) Reinforcing unfavorable ethnic or racial stereotypes 
D) Using unauthorized mailing lists to reach consumers

Question 20

Which of the following statements is an advantage of using magazines as an advertising medium?

Accepted Answer

A) It has a short lead time for ad placement. 
B) It has the potential of segmentation. 
C) It is location specific. 
D) It provides selective reader exposure.

Exam 8: Integrated Marketing Communications