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| 1 | |
Which of the following is an example of a good marketing objective? |
| | A) | To have press releases run in 80 percent of all of the magazines devoted to sports during the summer quarter. |
| | B) | To develop a new advertising campaign for soy-based ice cream by the end of April. |
| | C) | To increase share of the video game market by 3 percent by 31 Dec 2010. |
| | D) | To develop a tie-in with the newest movie in the Ring Trilogy. |
| | E) | To hire three experienced salespeople within the next six months. |
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| 2 | |
Hindustan Lever is marketing Fair & Lovely skin whitening cream in India. In India, skin color is closely associated with caste, and it is important to many Indians to marry within their caste. The upper castes have the lighter complexion. It follows that a woman using the skin whitening cream might be able to pass herself as coming from a higher caste than she actually does. The product is selling very well in spite of protests from various religious organizations. Hindustan Lever says it will not remove the product from the market because of how quickly stores' stocks of the cream are depleted and because forecasts indicate the company's market share will continue to grow. Hindustan Lever more than likely has a(n) _____ objective for the cream. |
| | A) | sales-oriented |
| | B) | communication |
| | C) | positioning |
| | D) | image |
| | E) | functional |
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| 3 | |
Within the hierarchy of effects model, the stage prior to purchase is conviction. At this stage, the marketing communications have convinced consumers that they should buy the product, but the purchase may have been postponed due to some situational or psychological factor. Which of the following terms is associated with that time lag between conviction and purchase? |
| | A) | Spillover effect |
| | B) | Wasted coverage |
| | C) | Recency effect |
| | D) | Primacy effect |
| | E) | The carryover effect |
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| 4 | |
Which of the following statements about the DAGMAR approach to setting advertising objectives is true? |
| | A) | It has focused promotional planners on the value of using sales-oriented objectives rather than communications objectives. |
| | B) | It does not rely on the hierarchy of effects model. |
| | C) | It is popular because of how the objectives encourage creativity. |
| | D) | It is very simple to implement. |
| | E) | It inhibits creativity by imposing too much structure on the people responsible for developing the advertising. |
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| 5 | |
Zero-based communications planning focuses on: |
| | A) | the target market. |
| | B) | supply-demand ratios. |
| | C) | tasks to be done and communications functions to be used. |
| | D) | reducing costs to an ideal level. |
| | E) | ways of avoiding the sleeper effect. |
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| 6 | |
Marketing managers who use marginal analysis to set advertising budgets assume that: |
| | A) | promotional efforts should be shown as an asset in the balance sheet. |
| | B) | sales are a direct result of advertising and promotional effort. |
| | C) | budgets do not evolve over a period of time. |
| | D) | psychological, situational, and social factors are as responsible for sales increases as are promotional efforts. |
| | E) | sales response models are unreliable. |
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| 7 | |
You have been asked to explain the approaches used to set a communications budget. Which of the following statements would you most likely use in your explanation? |
| | A) | A company would be making a serious mistake if it tried to use more than one budgeting method at a time. |
| | B) | Top management has no input into the process of establishing the budget, except final approval. |
| | C) | The two types of budgeting approaches are the trading up and trading down method. |
| | D) | The budgeting approaches vary according to the size and sophistication of the organization. |
| | E) | The most important factor, for a marketing manager to consider, when setting a budget is the volume share projections. |
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| 8 | |
The Chocolate Garden is a small candy manufacturer of truffles. It sells its candy through mail-order and its Web site. Last year, the owner of the company Tina Brooks considered what her objectives were for the upcoming year. After setting her objectives, she began working on her budget. She anticipated her company making $90,000 in sales next year so she budgeted $50,000 for fixed expenses, $35,000 for variable expenses, and the rest for promotion. Which top-down budgeting approach did Brooks use? |
| | A) | The affordable method |
| | B) | Percentage-of sales-method |
| | C) | Objective and task method |
| | D) | Competitive parity method |
| | E) | Payout planning method |
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| 9 | |
Which of the following methods for establishing promotional budgets is based on the collective wisdom of the industry in which the organization operates? |
| | A) | Payout planning |
| | B) | Competitive parity |
| | C) | ROI |
| | D) | Objective and task |
| | E) | Marginal analysis |
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| 10 | |
Which of the following methods for setting budgets is most appropriate for the introduction of a new product? |
| | A) | Payout planning |
| | B) | The affordable method |
| | C) | Percentage-of-sales method |
| | D) | Objective and task |
| | E) | Marginal analysis |
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