Question 1

One reason why it is essential that objectives be established prior to making marcom implementation decisions is that objectives provide _____ against which results can be measured.

Accepted Answer

A)   management consensus
B)   guidelines
C)   standards
D)   effects
E)   a hierarchy

Question 2

According to the hierarchy-of-effects model,brand-loyal consumers are the ultimate goal.

Accepted Answer

A) True 
 B)False

Question 3

A clothing store that sets their advertising budget by following the major competitor and adding an additional 15 percent is using the _____ method.

Accepted Answer

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

Question 4

The traditional view states that advertising objectives should not be stated in terms of _____.

Accepted Answer

A)   sales or market share gains
B)   brand awareness
C)   attitude change
D)   purchase intentions
E)   creating brand loyalty

Question 5

The advertising budget procedure used most frequently is the _____ method.

Accepted Answer

A)   percentage-of-sales
B)   arbitrary allocation
C)   marginal cost
D)   competitive parity
E)   objective-and-task

Question 6

Attitudes would most likely precede behavior when purchasing _____.

Accepted Answer

A)   pens
B)   cleaning products
C)   new automobiles
D)   soft drinks
E)   aspirin

Question 7

The two broad type of marcom objectives are short-term and long-term.

Accepted Answer

A) True 
 B)False

Question 8

Advertisers obtain consumer loyalty by providing a brand that meets the needs of the consumers and _____.

Accepted Answer

A)   by continually advertising the brand's merits
B)   by stressing the price
C)   by stating the unfavorable attributes of the major competitor
D)   by using sales promotion
E)   All of these are correct.

Question 9

Which of the following is a requirement for setting marcom objectives?

Accepted Answer

A)   Objectives must include a precise statement of who, what, and when.
B)   Objectives must be qualitative.
C)   Objectives must be broad in scope.
D)   Objectives must be long-term.
E)   Objectives must be short-term.

Question 10

Objective setting and budgeting decisions must be _____.

Accepted Answer

A)   short-term
B)   long-term
C)   short-term and long-term
D)   formal and systematic
E)   unplanned

Question 11

In which method does a company set a brand's advertising budget by simply establishing the budget as a fixed percentage of past or anticipated sales volume?

Accepted Answer

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

Question 12

When a company that has a relatively low market share has a major competitor with a relatively high share of voice,the recommendation would be to increase advertising expenditures and find a niche that can be defended against other small-share brands.

Accepted Answer

A) True 
 B)False

Question 13

In terms of profitability,investing in advertising can be justified only if the incremental revenue generated from the advertising effort exceeds the increase in advertising expense.

Accepted Answer

A) True 
 B)False

Question 14

Marcom objectives should be established after making decisions regarding message selection and media determination.

Accepted Answer

A) True 
 B)False

Question 15

Objective setting and budgeting decisions must be formal and systematic.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following can impact the sale-to-advertising response function?

Accepted Answer

A)   creativity of advertising execution
B)   state of the economy
C)   intensity of competitive advertising efforts
D)   overall quality of the brand's mix
E)   All of these are correct.

Question 17

It is optional that marcom objectives be established prior to making decisions regarding message selection and media determination.

Accepted Answer

A) True 
 B)False

Question 18

The competitive parity method sets the budget by examining what competitors are doing.

Accepted Answer

A) True 
 B)False

Question 19

Marcom objectives are goals that the various marcom elements aspire to individually or collectively achieve during a specific period of time.

Accepted Answer

A) True 
 B)False

Question 20

The _____ function refers to the relationship between money invested in advertising and the response,or output,of that investment in terms of revenue generated.

Accepted Answer

A)   sales response
B)   advertising response
C)   sales-to-advertising response
D)   advertising-to-sales response
E)   marcom response

Exam 8: Objective Setting and Budgeting

It is optional that marcom objectives be established prior to making decisions regarding message selection and media determination.

Correct AnswerverifiedShow Answer

The two broad type of marcom objectives are short-term and long-term.

Correct AnswerverifiedShow Answer

Which of the following can impact the sale-to-advertising response function?

Correct AnswerverifiedShow Answer

When a company that has a relatively low market share has a major competitor with a relatively high share of voice,the recommendation would be to increase advertising expenditures and find a niche that can be defended against other small-share brands.

Correct AnswerverifiedShow Answer

Marcom objectives are goals that the various marcom elements aspire to individually or collectively achieve during a specific period of time.

Correct AnswerverifiedShow Answer

One reason why it is essential that objectives be established prior to making marcom implementation decisions is that objectives provide _____ against which results can be measured.

Correct AnswerverifiedShow Answer

Advertisers obtain consumer loyalty by providing a brand that meets the needs of the consumers and _____.

Correct AnswerverifiedShow Answer

Objective setting and budgeting decisions must be formal and systematic.

Correct AnswerverifiedShow Answer

According to the hierarchy-of-effects model,brand-loyal consumers are the ultimate goal.

Correct AnswerverifiedShow Answer

The traditional view states that advertising objectives should not be stated in terms of _____.

Correct AnswerverifiedShow Answer

Objective setting and budgeting decisions must be _____.

Correct AnswerverifiedShow Answer

Marcom objectives should be established after making decisions regarding message selection and media determination.

Correct AnswerverifiedShow Answer

The advertising budget procedure used most frequently is the _____ method.

Correct AnswerverifiedShow Answer

In terms of profitability,investing in advertising can be justified only if the incremental revenue generated from the advertising effort exceeds the increase in advertising expense.

Correct AnswerverifiedShow Answer

In which method does a company set a brand's advertising budget by simply establishing the budget as a fixed percentage of past or anticipated sales volume?

Correct AnswerverifiedShow Answer

The competitive parity method sets the budget by examining what competitors are doing.

Correct AnswerverifiedShow Answer

A clothing store that sets their advertising budget by following the major competitor and adding an additional 15 percent is using the _____ method.

Correct AnswerverifiedShow Answer

The _____ function refers to the relationship between money invested in advertising and the response,or output,of that investment in terms of revenue generated.

Correct AnswerverifiedShow Answer

Attitudes would most likely precede behavior when purchasing _____.

Correct AnswerverifiedShow Answer

Which of the following is a requirement for setting marcom objectives?

Correct AnswerverifiedShow Answer

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