Exam 4 MKT

70
Using the Mini case calculate the unit contribution from each sale (aka the dollar markup per pair) towards monthly fixed costs.
88
Using the Mini case calculate the average cost per unit (aka the breakeven selling price).
48572
Using the Mini case calculate the monthly breakeven volume (in units).
2.2%
Using the Mini case calculate the current ROS or Net profit Margin.
44.44%
Using the Mini case calculate Speed’s current advertising budget as a percentage of sales.
107.32
Using the Mini case calculate the selling price that Speed must charge if it wishes to earn a ROS of 18% with its current costs.
5.5%
The NS Wagon Company earns $330,000 in profits on sales of $6,000,000. It has total assets of $3,000,000 and net worth of $1,750,000. Calculate its net profit margin (i.e., ROS or net profit percentage).
40%
A boy purchases a wagon for $6 and sells it for $10. What is his markup on his selling price?
21.11
You have forecasted the sales volume for the coming period to be 300,000 pairs of shoes, and your cumulative production up to and including the last period is 1,100,000 pairs. You know the learning curve for your business is V=7500Q^0.415 where
V = variable cost per pair
Q = cumulative quantity
What is the estimate variable cost of making a pair of shoes if the sales forecast is reached?
200
A firm makes shoes for a cost of $40 pair and sells them for a price that earns them a normal profit using an 80% markup on price. What price does the firm sell the shoes for?
True
The NS Shoes company is selling 200,000 shoes at $100 a pair. It estimates that the price elasticity (aka, customer price sensitivity) is -1.7 and is planning on lowering its price in the domestic to $98. It has reason to believe it will increase its sales volume to 206,800 shoes.
True or False?
44445
The Gulf Wagon manufacturing company traditionally charges a selling price of P=$21 per wagon. It has the following costs:
A variable cost = V = $12 per wagon
A fixed or period cost = F = $400,000 What quantity of wagons must it sell to cover its total costs (aka the breakeven quantity (BEQ))?
25
The Gulf Wagon manufacturing company desires a 20% return on sales (also known as the net profit margin) and anticipates a sales volume of Q=50,000 wagons. It has the following costs:
The variable cost = V = $12 per wagon
The fixed or period cost = F = $400,000
What selling price must it charge to cover its total costs and produce the desired return on sales (ROS)?
11%
The New Shoes Company earns $330,000 in profits on sales of $6,000,000. It has total assets of $3,000,000 and net worth of $1,750,000. Calculate its return on investment (ROI)
10
A manufacturer makes toys for a variable cost of $12 per toy. He sells the wagons to a distributor for a price that earns him a 40% markup on price.
The distributor buys the toys from the manufacturer and sells them to various retailers.
The retailers buy the toys and sell them to final consumers for $57 each. They use a 90% markup on the cost of the toys they buy from the distributor. What is the dollar markup the distributor earns each time he sells a toy?
20%
A new stock clerk in your store has just recorded the markups on the last
inventory shipment as 25% markup
on cost. However you need to have the
inventory recorded in terms of markup on price. What is the markup on price?
True
The key to successful pricing is to match the product with the consumer’s perception of value.
True or False?
False
A demand curve shows the relationship between income and demand.
True or False?
False
Brands that have developed loyal customers have a higher price elasticity of
demand.
True or False?
True
In general, prices should not be based on costs because consumers make their purchase decisions based on perceived value, not the cost of production.
True or False?
E
Consumers judge the benefits the product delivers against the ______________
necessary to obtain it.
A.monetary cost
B.profit
C.variable cost
D.total return
E.sacrifice
E
If firms price their products too low, it may:
A.result in lower costs.
B.create a premium pricing effect.
C.increase contribution per
unit.
D.result in inelastic demand.
E.signal poor quality
B
Marketers can deliver high value through high or low prices, depending on:
A.profit contribution per unit.
B.the bundle of benefits the product or service delivers.
C.monopolistic competition.
D.target return pricing that is greater than variable cost per unit.
E.the income effect.
A
Christina owns and operates a shop that
sells home furnishings. One of her vendors has just offered her a greatly reduced price for some traditional Christmas decorations, even though it is really too early to be thinking about holiday
merchandise. One of the main pricing issues Christina will have to address as she considers the offer is:
A.whether the cost reduction will be low enough to cover the additional inventory
costs she will have to incur.
B.whether she can get an even lower price by waiting.
C.whether the company is going out of business.
D.whether this offer is legal.
E.whether she should open a Christmas shop instead of her home furnishing store.
D
Unlike product, promotion, or place, price is the only part of the marketing mix:
A.that offers the opportunity for an oligopoly.
B.that is subject to gray market manipulation.
C.that leads to competition.
D.that generates revenue.
E.all of these
A
Margaret has been invited to a fancy dinner party
and wants to bring a good bottle of
wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as:
A.an indicator of quality.
B.a reflection of status quo pricing.
C.an indicator of the variety.
D.a measure of scarcity.
E.a measure of the income effect.
D
Which of the following is NOT one of the Five Cs of pricing?
A.Customers.
B.Channel members.
C.Cost.
D.Collaboration.
E.Company objectives.
E
What could go wrong if a firm’s pricing strategy were NOT aligned with company
objectives?
A.The message and media in a promotional campaign could be inconsistent with the pricing strategy.
B.Company growth objectives might not be supported.
C.The channels selected might not be appropriate for the pricing levels established.
D.Customers might be confused and
select a competitor’s product.
E.All of these
B
Gary is the marketing manager for an
automobile dealership. His boss tells him the firm’s primary goal is to increase their local market share from 15 to 30 percent. Gary’s pricing strategy will focus on:
A.increasing profits.
B.increasing sales.
C.decreasing competition.
D.building customer satisfaction.
E.all of these.
E
A _________________ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels, so that the price level that produces the highest return can be chosen.
A.sales orientation
B.target profit
C.target return
D.status quo
E.maximizing profits
C
When firms set prices similar to those of competitors, they are following a strategy
of:
A.me-too pricing.
B.copycat pricing.
C.competitive parity.
D.market-broadening pricing.
E.industry-standard pricing
A
Price elasticity of demand is defined as the:
A.percentage change in quantity demanded divided by the percentage change in price.
B.percentage change in price divided by percentage change in quantity demanded.
C.change in price divided by change in quantity demanded.
D.change in quantity demanded divided by the change in price.
E.change in quantity demanded multiplied by the change in price.
False
Because market and operating conditions are all very similar, marketers’ pricing
strategies should be uniform.
True or False?
True
Cheryl wants to quickly establish a dominant market share for her new line of ergonomic pens. To do this, she will likely use a market penetration pricing strategy.
True or False?
True
3/10, n/30 means a 3 percent discount if paid in full within 10 days, or the net
amount is due in 30 days.
True or False?
E
Yvonne estimates the average cost of her floral arrangements is $14 regardless of whether she is doing 5 or 20 arrangements that day. She adds a standard markup to the $14 estimate to determine her price. Yvonne is using a ________________ pricing method.
A.improvement value
B.value-based
C.everyday low pricing
D.reference-based
E.cost-based
C
Firms using a ____________ pricing method set their prices relative to what other firms are charging.
A.improvement value
B.value-based
C.competitor-based
D.reference-based
E.cost-based
C
Value-based pricing methods include approaches to setting prices that focus on the overall value of the product offering:
A.when the product is produced.
B.as recognized by competitors.
C.as perceived by the consumer.
D.in order to minimize bundling charges.
E.relative to production costs.
A
Odd prices:
A.suggest low quality.
B.show the experience curve effect.
C.are predatory prices.
D.allow marketers to avoid having to do markdowns.
E.are consistent with price discrimination.
D
Pricing ________________ products is especially challenging because little or
nothing is known about consumers’ perceptions of value.
A.cost-based
B.seasonal
C.large-quantity
D.new-to-the-world
E.zone pricing
E
Charging a relatively high price for new and innovative products to those consumers
most willing and able to pay the high price is called price:
A.penetration.
B.bundling.
C.fixing.
D.referencing.
E.skimming.
B
The major objectives associated with a market penetration pricing strategy are to:
A.capture the high end of the market demand curve and lower introduction costs.
B.build sales and market share.
C.minimize customer dissatisfaction and maximize reference price value.
D.provide an incentive to purchase a less desirable product in order to obtain a more
desirable product.
E.match competitors’ prices and communicate high quality.
D
The ____________ occurs when unit cost drops as the cumulative quantity sold
increases.
A.slotting allowance benefit
B.price fixing return
C.improvement value effect
D.experience curve effect
E.cumulative bundling benefit
A
A pricing strategy is:
A.a long-term approach to setting prices in an integrated effort.
B.the use of seasonal discounts to reduce inventory.
C.the use of slotting allowances to gain access to distribution channels.
D.a short-term approach to setting prices.
E.associated with competitive threats in the marketplace.
D
Which of the following is NOT a common business-to-business pricing tactic?
A.Seasonal discounts.
B.Slotting allowances.
C.Quantity discounts.
D.Loss leader pricing.
E.Advertising allowances.
A
The primary reasons manufacturers offer seasonal discounts to retailers are to more easily plan production schedules and to:
A.lessen inventories of finished goods.
B.reduce advertising allowances.
C.increase price skimming.
D.control vertical pricing.
E.alter consumers’ perceived reference price.
100
Amie Stegaro makes and sells handmade baby quilts for $125 each. She has determined that her fixed costs are $8,000, and her variable costs per quilt are $45. What is her breakeven point in units?
A
Many consumers, especially when faced with an uncertain purchase
decision, think that
a high price:
a). is a signal of higher quality
b). is an indication that consumers are being ripped off
c). will always lead to major price discounts to wholesalers and retailers that distribute it
d). is a sign of the company’s overall market share
e). is because the brand was slipping into the decline stage of the product life cycle but has had a sudden resurgence of growth
50
A firm makes shoes for a cost of $20 pair and sells them for a price that earns them a 60% markup on price. What price does the firm sell the shoes for?
True
Almost everyone is engaged in some form of selling.
True or False?
True
Firms that use personal selling do so because the benefits exceed the costs.
True or False?
False
The sales process always proceeds through each of the five steps.
True or False?
False
Potential customers are called marks.
True or False?
False
Marketing executives, by a seven to one margin, believe that salespeople are born,
not made.
True or False?
True
The three potential elements of financial rewards for sales representatives are salaries, commissions and bonuses.
True or False?
True
If you are hired as a sales manager, you will be responsible for recruiting, selecting, training, motivating, compensating and evaluating the sales force.
True or False?
True
If it is a company’s policy to intentionally mislead potential customers about some
aspect of a product, a sales rep that carries out this policy by misleading the
customer can be held legally accountable.
True or False?
D
Personal selling can take place in all of the following situations EXCEPT:
A.face to face.
B.over the Internet.
C.by telephone.
D.through the newspaper.
E.video teleconferencing.
A
One of the advantages of personal selling over other types of marketing communications is that:
A.salespeople can customize their message for a specific buyer.
B.personal selling almost always costs less than other marketing communication
alternatives.
C.personal selling has greater reach than advertising.
D.cold calling is easier than direct mail advertising.
E. all of these.
C
One of the disadvantages associated with personal selling is that:
A.cold calling is easier than direct mail advertising.
B.a salesperson often change the message based on consumers’ needs.
C.it is expensive.
D.it can be directed toward those customers with the highest potential.
E.all of these.
D
_________________ is a sales philosophy and process that emphasizes a commitment to maintaining and investing in long term, mutually beneficial business relationships.
A.Organizational buying
B.Cold calling
C.Psychographic selling
D.Relationship selling
E.Sales management
E
Sales representatives add value for customers by doing all of the following
EXCEPT:
A.educating them about the firm’s products.
B.providing advice on solving business problems.
C.saving them time.
D.simplifying communication with the firm.
E.reducing the firm’s marketing costs.
C
Whether or not a salesperson will go through all five steps
of the selling process
depends on the sales situation and:
A.the use of sales representatives versus independent reps.
B.the effectiveness of role playing.
C.the buyer’s readiness to purchase.
D.the number of sales support personnel available.
E.all of these.
D
When Patrick begins the selling process for new customers who are not familiar
with his company’s commercial coffee service, he assumes he will need to:
A.perform his demonstration first.
B.close the sale quickly before the customer can raise objections.
C.use telemarketing to assess consumers’ attitudes.
D.go through all five steps of the personal selling process.
E.all of these.
A
Chesnee works in the office of a building materials company. One of her jobs is
to identify new building projects and to determine who will make the building materials purchase decisions. Chesnee is involved in the _______________ step of the selling process.
A.generate leads
B.preapproach
C.closing the sale
D.follow up
E.sales presentation
B
One reason why salespeople spend considerable time qualifying potential
customers is because:
A.they want to have absolutely everything in order before approaching a potential
customer.
B.it can be costly to prepare and make a presentation to a business customer.
C.too many business buyers at trade shows are really people from competing firms
trying to obtain competitive information.
D.independent agents get the best leads; the company sales representatives need to work harder.
E.all of these.
E
Often, inexperienced salespeople mistakenly believe that during the sales call, they should:
A.listen carefully to the customer.
B.pay attention to body language.
C.note the office environment.
D.act positively.
E.do all the talking.
A
Asking questions and listening closely to customers’ replies allows salespeople
to:
A.create value by solving problems or addressing specific needs.
B.maximize sales revenue.
C.avoid having to address customers’ reservations.
D.skip the work needed in preapproach analysis.
E.sell to any customer regardless of whether or not they are qualified.
C
Kyle is preparing for an important sales presentation. He knows that customers
are more likely to________________ during his presentation than during other stages of the selling process.
A.be identified as qualified leads
B.agree with everything he says
C.raise objections
D.offer advice
E.return unacceptable merchandise
B
Evelyn knows that prospective customers are likely to raise reservations about price and quality. She needs to convince customers that her products represent:
A.a bygone era.
B.a good value.
C.the least expensive choice available.
D.average quality for an average price.
E.an environmental achievement.
A
Studies have found that customers are typically ready to make a purchase decision well before salespeople attempt to close the sale. Salespeople can learn when to close the sale by:
A.listening to customers and paying attention to their body language.
B.keeping accurate records regarding how long it took to close sales in the past.
C.asking sales support personnel to estimate the average time before customers are ready to close.
D.using the same selling process for all customers.
E.monitoring and mimicking the
closing process used by their sales managers.
A
The ______________ stage of the selling process offers a prime opportunity for
salespeople to solidify customer relationships through great service quality.
A.generating and qualifying leads
B.follow up
C.sales presentation
D.closing the sale
E.preapproach
E
Hiro sells building materials to local contractors. He wants to build long
term relationships with his contractors through effective follow up. After delivering the materials ordered, Hiro can expect to have to address complaints about:
A.delivery time.
B.billing.
C.product performance.
D.installation.
E.all of these.
D
Sales representatives are often compensated, at least in part, on a percentage of the sales revenue. This percentage is known as a:
A.bonus.
B.sales increment.
C.base salary.
D.commission.
E.finder’s fee.
C
Miles worked selling products to industrial users, and he spent most of his time
working on customers’ new buy and modified rebuy situations. Miles was
primarily a(n) ______________.
A.new business specialist
B.prospector
C.order getter
D.order taker
E.sales support rep
B
Most beverage distributors have their delivery people act as the firm’s sales
representatives. The delivery people primarily function as:
A.order getters.
B.order takers.
C.sales support personnel.
D.manufacturer’s reps.
E.telemarketers.
E
David’s firm had grown steadily and the products and systems had become more
and more complicated. He had been a star representative and had personally
serviced and developed all his accounts. In the past year or so, David and his sales
colleagues were changing their approach due to the sales growth and increasing
product complexity. Customer relationships were now being handled mo
re and more by _______________, which was typical of firms experiencing this kind of growth.
A.manufacturer’s representatives
B.brokers
C.sales administrators
D.junior sales reps
E.selling teams
B
By a margin of seven to one in a survey of sales and marketing executives,
respondents believe that:
A.salespeople are born not made.
B.training and supervision are most important determinants of selling success.
C.straight commission is the best compensation package.
D.personality and optimism are more important than self reliance and empathy.
E.all of these.
B
Sales, profits, orders and ratios are all _____________ measures that can be used to evaluate sales representatives.
A.subjective
B.objective
C.uncontrollable
D.cooperative
E.customer related
C
Salespeople should be evaluated and rewarded for those activities and outcomes that:
A.generate the most income.
B.increase the number of customers.
C.fall under their control.
D.reduce manufacturing costs.
E.cut into competitors’ sales.
A
___________ involves the planning, direction and control of personal selling
activities. This includes recruiting, selecting, training, motivating, compensating and evaluating as they apply to the sales force.
A.Sales management
B.Marketing management
C.Cold calling
D.Selling in teams
E.Relationship selling
C
Which of the following is not one of the steps in the personal selling process?
A.Generate and qualify leads
B.Preapproach
C.RFP process
D.Closing the Sale
E.Follow up
True
One issue facing advertisers is that consumers screen out messages that are not relevant to them.
True or False?
False
Glenn is using a push strategy to promote his new, self published financial guidebook. He is directly promoting it to readers in the Wall Street Journal.
True or False?
False
The three basic objectives of advertising are to select, target, and promote.
True or False?
True
An advertisement stating “Buy now: no money down” is a persuasive type.
True or False?
True
Public Service Announcements (PSAs) typically focus on social marketing
objectives.
True or False?
False
Public Service Announcements (PSAs) represent a form of social shopping.
True or False?
True
An advertising campaign’s objectives should be specific and measurable.
True or False?
True
The key to a successful emotional appeal is to create a bond between the consumer and the brand.
True or False?
True
Beverage companies often pay movie producers to have their products used and
shown in movies. This is an example of product placement.
True or False?
True
Loyalty programs are sales promotions designed to retain current customers
and encourage multiple purchases over time with the promise of a reward or
premium.
True or False?
C
The difference between advertising and publicity is that advertising is:
A.more effective.
B.almost always used in conjunction with consumer satisfaction surveys.
C.a paid form of marketing communication
that has a sponsor.
D.designed to remind consumers
while publicity is used to persuade consumers.
E.always handled by advertising agencies.
E
Advertising is a paid form of marketing communication using:
A.television.
B.radio.
C.print media.
D.the Internet.
E.any of these.
A
Kelly is the head of marketing for a nonprofit agency that supports the arts. She just received the go ahead from her Board of Directors to conduct the agency’s first ever advertising campaign. Her first step will be to:
A.identify the target audience.
B.set the advertising objectives.
C.determine the advertising budget.
D.evaluate and select the media.
E.create the advertisements.
A
Because advertising is the most visible form of marketing,
A.many people think of marketing and advertising as synonymous.
B.it is the most important part of a marketing mix.
C.everyone is in advertising.
D.marketing budgets always emphasize advertising over other forms of marketing
communications.
E.it is the largest source of employment opportunities for marketing graduates.
E
Advertisers often face the problem of consumers:
A.screening out their message.
B.not reacting to their message.
C.not remembering their message.
D.remembering the message but forgetting the brand.
E.all of these
D
To get us to remember their ad and the product or brand in the ad, advertisers assuming the high involvement or AIDA model of audience response must first:
A.use persuasion.
B.offer incentives.
C.create effective PSAs.
D.get our attention.
E.vary between flighting and pulsing scheduling.
D
An advertising goal is crucial to an ad campaign because it:
A.is the basis for sales commissions.
B.is required by the accounting department.
C.offers insights into the creative leadership of mass media buyers.
D.will later be used to measure the success or failure of the campaign.
E.all of these
A
Generally, when advertising to consumers, the objective of an advertising
campaign is:
A. a pull strategy to get the product into stores by having consumers demand it.
B.a push strategy to stimulate interest among members of the supply chain.
C.to win advertising awards.
D.to offset sales promotion costs.
E.to maximize media planning.
D
Florida Heat Pump Manufacturing Company is offering a free, all
expenses paid trip to Las Vegas for HVAC dealers that sell at least twenty units this year. Florida Heat Pump is using a ____________________ promotional strategy.
A.pull
B.puffery
C.publicity
D.push
E.posttesting
D
After identifying the target audience for
the university’s new advertising
campaign, the advertising team needs to decide whether the advertising objective is
to ____________, __________, or _________________ potential and/or existing students.
A.create, stimulate, or ignore
B.beg, borrow, or steal
C.pay, buy, or barter
D.inform, persuade, or remind
E.push, pull, or sell
B
P&G’s Tide laundry detergent has been around since 1948 and is still a market
leader. P&G has used ____________ advertising to reposition Tide several times over the product’s life, trying to motivate new consumer segments to use the product.
A.informative
B.persuasive
C.reminder
D.discussive
E. institutional
C
Each year in December, Anheuser
Busch runs television ads featuring the
Clydesdale horses pulling a stagecoach with an Anheuser Busch logo. The message is low key, wishing everyone well during the holiday season. This is an example of
_______ advertising.
A.informative
B.persuasive
C.reminder
D.discussive
E.institutional
D
The California Raisin Advisory Board used to run ads featuring “The California Raisins,” a fictitious R&B musical group composed of dancing raisins who boogied to the song, “I Heard it Through the Grapevine.” The ads, which were hugely popular and which gave rise to a line of raisin themed merchandise, were designed to encourage raisin consumption. This campaign was an example of:
A.product focused advertising.
B.consumer generated advertising.
C.public service announcements.
D.institutional advertising.
E.push strategy
C
First Lady Michelle Obama has recorded an ad encouraging parents to teach
their children good nutrition habits in order to stem the increase in child obesity.
This message is an example of:
A.product focused advertising.
B.consumer generated advertising.
C.a public service announcement.
D.reminder advertising.
E.a flighting campaign.
D
Regardless of the tactical objective of the advertising campaign, each campaign’s objectives should be:
A.sincere.
B.consistent with those of the available media.
C.either informative or persuasive but not both.
D.specific and measurable.
E.designed for use in both a pull and a push strategy.
E
Ryan is attempting to create a budget for his firm’s advertising campaign. From
experience, Ryan knows that he cannot just pull out an old budget and update it.
Instead, the advertising budget will depend on:
A.the nature of the product.
B.what stage the target audience is in the AIDA model
C.other ongoing promotional efforts.
D.the stage in the product life cycle (PLC).
E.all of these.
D
The advertising message admonition, “People are not looking for quarter
inch drill bits; they are looking for quarter
inch holes”, suggests that advertising
messages need to:
A.emphasize technology.
B.focus on quality.
C.inform consumers about opportunities.
D.focus on solving problems.
E.engage in mild puffery.
A
Marketers __________ an advertising campaign in order to ensure that the various elements of the campaign will work in an integrated fashion and do what they are intended to do.
A.pretest
B.posttest
C.monitor
D.flight
E.pulse
A
In the early stages of an ad campaign, the objectives are established. To determine if those objectives have been met, the marketer will:
A.posttest.
B. conduct feedback analysis.
C.complete closed loop monitoring.
D.conduct a completion tracking.
E.develop an execution analysis.
C
The additional sales that can be attributed to an advertising campaign are
known as:
A.payload.
B.impact.
C.lift.
D.the campaign increment.
E.return on advertising.
C
Which of the following is the best example of puffery?
A.”Take two and call us in the morning.”
B.”Happy hour every Friday.”
C.”You have tried the rest, now try the best.”
D.”All natural ingredients.”
E. “Northwestern, the quiet company.”
B
Which of the following is NOT part of public relations?
A.Annual reports
B.Coupons and rebates
C.Brochures
D.News releases
E.Copies of Op Ed pieces, letters to the editor and recent press clipping
C
________________ are special incentives or excitement building programs that encourage consumers to purchase a particular product, often used in conjunction with advertising or personal selling programs.
A.Premiums
B.Trade incentives
C.Sales promotions
D.Push programs
E.Targeted leader items
B
_______________ is when two or more firms join forces to reach a target audience in a short term effort.
A.Promotional co branding
B.Cross promotion
C.Joint venture promotion
D.Multitarget promoting
E.Convenience promoting
C
Traditionally, marketers have seen the role of ________________ as generating short
term results, whereas the goal of ____________________ was to lead to long term results.
A.public relations; institutional advertising
B.advertising; personal selling
C.sales promotion; advertising
D.advertising; public relations
E.corporate blogs; public relations
False
As the number of communication media has increased, the task of understanding
how best to reach target customers has become easier.
True or False?
True
Encoding means converting the sender’s ideas into a message, which could be verbal, visual or both.
True or False?
False
Though a picture may be worth a thousand words, the most important facet of encoding is not what is received but what is sent.
True or False?
True
If there is a difference between the message that is sent and the message that is received, it is probably due to noise.
True or False?
True
Though advertising experts wish it were true, there is not always a direct link
between a particular marketing communication and a consumer’s purchase.
True or False?
False
“Top of mind awareness” is when consumers indicate that they know the brand when the name is presented to them.
True or False?
True
Betty is assessing the effect of her firm’s marketing communications. She should
remember that the ultimate goal is
to drive the receiver to action.
True or False?
True
Mobile marketing involves marketing to customers through wireless handheld
devices such as mobile phones.
True or False?
False
Because the goals of IMC are only part of the overall promotional plan, they do not need to be explicit or measurable.
True or False?
True
It may take several exposures to marketing communications before consumers are moved to buy.
True or False?
False
.When a company’s communications budget is based on a percentage of
forecasted sales, this is known as competitive parity.
True or False?
False
Gross Rating Points (GRP) measure how often the audience is exposed to a
communication within a specified period of time.
True or False?
False
Frequency describes the percentage of the target population exposed to a
specific marketing communication, such as advertisement, at least once.
True or False?
C
Integrated marketing communications represents the _________________ P in the four Ps of a firm’s marketing mix.
A.Pricing
B.Product
C.Promotion
D.Place
E.Partnering
D
Integrated marketing communications include all of the following EXCEPT:
A.personal selling.
B.advertising.
C.public relations.
D.supply chain management.
E.direct marketing.
E
Garrett works for a small chain of convenience stores. He is trying to coordinate his firm’s IMC efforts. Garrett’s IMC goal is to:
A.overwhelm the competition.
B.overwhelm the consumer.
C.integrate supply chain efficiency into the marketing mix communication lagged
effect model.
D.maximize noise and avoid using rule
of thumb encoding.
E.provide clarity, consistency, and maximum communicative impact.
B
Carlos owns a chain of retail electronic stores. He is evaluating how he allocates
his firm’s IMC budget. He receives offers from a variety of advertising media, spends money on his firm’s public relations efforts, and is considering electronic media alternatives. Carl recognizes each IMC alternative:
A.can be evaluated using Web tracking software.
B.is part of the whole.
C.is part of noncommercial free speech.
D.is less important than stealth marketing.
E.is dictated by the nature of the supply chain.
D
Gerald knows which IMC communication channels are available and knows how
he will measure the results of his IMC efforts. To implement his IMC efforts, Gerald also needs to:
A.integrate his pricing strategy with his event sponsorships.
B.effectively decode his communications.
C.maximize stealth marketing efforts.
D.focus his efforts on his target
audiences(s).
E.all of these.
C
In the IMC communication process, the _________ encodes the marketing communication message.
A.instructor
B.sender
C.transmitter
D.communication channel
E.receiver
D
___________ means converting the sender’s ideas into a message, which could be verbal, visual or both.
A.Decoding
B.Stealth marketing
C.Precoding
D.Encoding
E.Tracking
A
_____________ refers to the process by which the receiver interprets the sender’s
message.
A.Decoding
B.Stealth marketing
C.Precoding
D.Encoding
E.Tracking
D
_______________ is any interference in the IMC process.
A.Translation
B.Looping
C.Excessive reach
D.Noise
E.Feedback
A
In the IMC process, noise can occur as a result of lack of mess age clarity, a poor choice of medium, and:
A.competing messages.
B.an extended feedback loop.
C.indirect encoding.
D.inhibited decoding.
E.excessive reach.
D
National manufacturers and retailers often pay a service provider to monitor
television ads around the country, in order to ensure that their ads are seen in their entirety during the time frames that were purchased. This service provider is
monitoring for IMC noise problems associated with:
A.competing messages.
B.lack of clarity in the message.
C.a poor choice of medium.
D.a flaw in the medium.
E.an extended feedback loop.
B
Which of the following is NOT one of the steps in the AIDA model?
A.Awareness
B.Intention
C.Action
D.Desire
E.Interest
D
In the AIDA model, marketing communications move consumers stepwise:
A.through an integrated lagged effect simulation process.
B.from attention to awareness.
C.decoding to encoding.
D.through a series of mental stages.
E.all of these.
C
___________ refers to a potential customer’s ability to recall that the brand name is a particular type of retailer, product or service.
A.Product familiarity
B.Brand association
C.Brand awareness
D.Marketing recall
E.Cognitive association
C
If the marketing communicatio
n has captured the interest of its target market,the goal of subsequent IMC messages should be to move the consumer from:
A.”I want it” to “I like it.”
B.action to desire.
C.”I like it” to “I want it.”
D.awareness to action.
E.feeling to thinking.
E
The tactical goal of any marketing communication is to:
A.maximize sales.
B.increase public relations click
through rates.
C.overwhelm negative publicity with commercial speech.
D.replace cause related marketing with non
cause related marketing
E.get the right message to the right audience through the right media.
E
The ultimate objective of any marketing communication
strategy is to:
A.maximize the achievement of the sender’s goals (e.g., profits, sustainable
competitive advantage).
B.increase public relations click
through rates.
C.overwhelm negative publicity with commercial speech.
D.replace cause related marketing with non
cause related marketing.
E.get the right message to the right audience through the right media.
E
Many marketers are shifting marketing communication resources away from
advertising and toward:
A.direct marketing.
B.website development.
C.product placement.
D.Internet advertising.
E.all of these.
A
One of the benefits of media fragmentation is it has allowed IMC planners to:
A.target their desired audience more precisely.
B.reduce their promotional expenditures.
C.simplify IMC decoding.
D.reduce the lagged effect.
E.expand the use of rule
of thumb budgeting.
D
Compared to other IMC alternatives, advertising is extremely effective for:
A.closing a sale.
B.efficient message decoding.
C.reducing the potential for noise.
D.creating awareness and generating interest in a product.
E.repositioning consumers in the AIDA model.
A
Public relations is the component of IMC that:
A.supports other promotional efforts by generating “sponsor free” media attention.
B.has received the greatest increase in spending.
C.converts mass media advertising into direct marketing.
D.most effectively uses IMC encoding.
E.generates the most gross rating points.
E
Marketers use corporate blogs to:
A.create positive word of mouth.
B.build customer loyalty.
C.gather feedback.
D.respond directly to customers.
E.all of these.
B
Lamar is assessing the long term effectiveness of his firm’s IMC efforts. He will probably analyze the firm’s success in:
A.expanding customer loyalty by closing the feedback loop.
B.increasing market share,
profitable sales, and customer loyalty.
C.increasing inquires, awareness, and trial of her firm’s services.
D.shifting customers to rule
of thumb budgeting.
E.increasing the lagged effect.
C
Julie is developing a budget for her firm’s IMC program. First she sets objectives.
Then she chooses media, and finally she determines the cost for each product to be promoted. Julie is using the ______________ method of establishing an IMC budget.
A.reach and frequency
B.track and decode
C.objective and task
D.rule of thumb
E.sender receiver
E
Yolanda asked her firm’s advertising agency to estimate how often consumers
saw her firm’s IMC message and what percentage of the target audience was
exposed to the message. Yolanda is asking for _____________________ data.
A.parity and affordability
B.sales and promotion
C.attitude change
D.rule of thumb
E.frequency and reach
160
When Yolanda asked her firm’s advertising agency to estimate how often
consumers saw her firm’s IMC message and what percentage of the target audience was exposed to the message, she was told the reach was 40, the frequency was 4 and the competitive parity was 10. The gross rating points for her firm’s campaign were:
D
Jim was asked to determine the ROI for a particular advertising effort. To do so, he needs to know:
A.the internal rate of return and the projected expenditure level.
B.the total number of units sold and the total cost of sales.
C.sales revenue and advertising cost.
D.gross margin of sales due to advertising
and advertising cost.
E.the advertising cost and the total communications expenditures.
A
If a company sets the communication budget so that the firm’s share of
communication expenses equals its share of the market, what IMC budgeting method is it using?
A.Competitive parity
B.Percentage of sales
C.Available budget
D.Objective and task
E.None of these
A
Budgeting for marketing expenses by using money available after operating
costs and profits have been budgeted is known as the ________ method.
A.available budget
B.competitive parity
C.percentage of sales
D.objective and task
E.none of these.
A
An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results for this ad, six would be the _____ for this telecast.
A.frequency
B.reach
C.gross rating points
D.ROI
E.click through rate
A
If you send an email and include a link, you can track how many people took the
desired action of clicking on the link. This is known as:
A.the click through rate.
B.impressions.
C.frequency.
D.gross rating points.
E.reach.
A
Which of the following is being used by a store owner who sends out a text message to all of her preferred customers announcing the arrival of this season’s new clothing?
A.Mobile marketing
B.Public relations
C.Personal selling
D.Sales promotions
E.None of these