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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.

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Repositioning of a product requires lesser time than creating or increasing the awareness levels for a brand.

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Which of the following problems is a manager most likely to face if he 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 immeasurable, 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) Sales are generally not considered a good indicator for an IMC program.

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Which of the following is true of the arbitrary allocation method?


A) This method is not considered to be particularly weak.
B) This method keeps ad spending within reasonable limits.
C) This method uses a logical basis for determining the budgets.
D) This method of budgeting is generally stable.
E) This method has no obvious advantages.

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The first task in the objective and task method of budgeting is to:


A) conduct a system analysis.
B) create an organizational budget.
C) isolate advertising objectives.
D) determine what tasks need to be accomplished.
E) reevaluate objectives.

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In the top-down approach, the budgetary amount is established usually at the departmental level.

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Which of the following statements is true of communications objectives?


A) When setting objectives using the communications effect pyramid, the last step to reach is trial.
B) Sales goals cannot be translated into communications objectives.
C) Marketing and advertising managers don't usually 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) Communication objectives are used particularly when the advertiser seeks an immediate responsE.Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals and objectives, which has become one of the most influential approaches to the advertising planning process.

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With respect to the stages in Russell Colley's hierarchical model of the communication process, the _____ stage deals with developing an understanding of what the product is and what it will do for the consumer.


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

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According to the promotional budgeting approaches, which of the following is an example of a top-down approach?


A) The razor and blades method
B) The bricks and clicks method
C) The competitive parity method
D) The objective and task method
E) The payout planning method

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Defining the communications goals to be accomplished and estimating the costs associated with the performance of the necessary strategies and activities are steps in the _____ method of budgeting.


A) competitive parity
B) payout planning
C) ROI
D) return on investment
E) objective and task

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According to Professor Don Schultz, inside-out planning:


A) focuses on what the marketer wants to say, when he wants to say it, and the media he 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.

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


A) the reason a company spends money on advertising and promotion is to sell its products or service.
B) the objective of advertising and other promotional mix elements is usually to communicate information or a selling message about a product or service.
C) the primary role of an IMC program is to communicate.
D) objectives should be based on the achievement of communication objectives.
E) they must provide relevant information and create favorable predispositions toward the brand before purchase behavior will occur.

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


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

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The concept of advertising expenditures producing long-term, rather than immediate, results is known as:


A) the carryover effect.
B) the communication effect.
C) the low-involvement effect.
D) the halo effect.
E) the mirror-image effect.

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When using the competitive parity method to budgeting, the firm:


A) matches its percentage-of-sales expenditures with those of others in the market/industry.
B) spends as much as it can.
C) allocates some portion of planned sales for the period to advertising.
D) spends the same total amount as its major competitors spend.
E) bases its advertising and promotion expenditures on sales.

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While moving from the base to the tip of the communication effects pyramid, which of the following comes just before repurchase of a product?


A) Awareness
B) Comprehension
C) Trial
D) Liking
E) Knowledge

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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) helps in determining the precise relationship between advertising and sales.

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Creative executives from the advertising industry might oppose the DAGMAR approach to setting objectives because it:


A) puts too much emphasis on 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 develops a message that contributes to brand equity.
D) does not provide any type of communications guidelines.
E) is too concerned with qualitative assessments of an advertising campaign.

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


A) his task is impossible.
B) all he needs is the sales results to determine what the program accomplished.
C) his task could be made easier by setting specific communication objectives.
D) he requires just the post-promotional consumer awareness levels to determine what the program accomplished.
E) all he needs to do is measure the effectiveness of the media used for promoting the product.

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According to the IMC planning model, the flow between communications analysis and budget determination is _____.


A) a two-way interaction
B) nonlinear
C) unidirectional
D) diagonal
E) top-down

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