Question 1

Which of the following is a quantitative model to budgeting advertising expenditures?

Accepted Answer

A)  ROI budgeting model
B)  Competitive parity model
C)  Computer simulation model
D)  Arbitrary allocation model
E)  Percentage-of-sales modelF) B) and D)
G) A) and B)

Question 2

_____ is an approach to setting advertising goals and objectives which states that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured.

Accepted Answer

A)  SOSTAC
B)  The hierarchy of effects model
C)  The BCG matrix
D)  The Ansoff matrix
E)  DAGMARF) A) and D)
G) All of the above

Question 3

According to the _____ model, the effects of advertising budgets follow the microeconomics law of diminishing returns.

Accepted Answer

A)  concave-upward
B)  S-shaped demand
C)  S-shaped response
D)  marginal utility
E)  concave-downwardF) A) and E)
G) B) and C)

Question 4

An advantage of sales-oriented objectives is that they provide sufficient guidance to those responsible for planning and developing the promotional program.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is at the top of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making?

Accepted Answer

A)  Awareness
B)  Imagery
C)  Consideration
D)  Shopping
E)  Model intentionF) B) and D)
G) None of the above

Question 6

Which of the following statements best describes the relationship between marketing and communications objectives?

Accepted Answer

A)  Marketing objectives and communications objectives are synonymous.
B)  Marketing objectives evolve from communications objectives.
C)  Communications objectives are derived from marketing objectives.
D)  Communications objectives can be developed before the development of marketing objectives.
E)  Both communications and marketing objectives are defined only in terms of the reach of a promotional strategy.F) D) and E)
G) B) and C)

Question 7

Which of the following is at the base of the communication effects pyramid?

Accepted Answer

A)  Awareness
B)  Preference
C)  Trial
D)  Purchase
E)  RepurchaseF) A) and C)
G) B) and D)

Question 8

An inside-out planning process for integrated marketing communications (IMC) starts with the customer and builds backward to the brand.

Accepted Answer

A) True 
 B)False

Question 9

In the arbitrary allocation approach, no systematic thinking occurs and no objectives are budgeted for.

Accepted Answer

A) True 
 B)False

Question 10

We know that the _____ method of budgeting is being employed when an experienced marketing manager responds to a new employee's question, "How was the ad budget established last year?" by saying, "The same way it's always been done; I just have an instinct about how much should be budgeted where."

Accepted Answer

A)  arbitrary allocation
B)  percentage of sales
C)  contribution margin
D)  return on investment
E)  competitive parityF) A) and E)
G) C) and D)

Question 11

The _____ method of budgeting is being employed when expenditures are allocated by assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold.

Accepted Answer

A)  arbitrary allocation
B)  percentage of sales
C)  objective and task
D)  return on investment
E)  competitive parityF) None of the above
G) A) and B)

Question 12

The competitive parity method takes advantage of the collective wisdom of the industry.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  Knowledge
B)  Preference
C)  Repurchase
D)  Awareness
E)  ComprehensionF) B) and C)
G) A) and D)

Question 14

In the integrated marketing communications (IMC) model, the flow between the communications analysis and budget determination is a two-way interaction.

Accepted Answer

A) True 
 B)False

Question 15

According to Don Schultz, in which type of communications planning process do the promotional planners study the various media customers and prospects use, when the marketer's messages might be most relevant to customers, and when customers are likely to be most receptive to the message?

Accepted Answer

A)  Zero-based communications planning
B)  Inside-out planning
C)  Outside-planning
D)  The carryover process
E)  The recency processF) B) and C)
G) C) and E)

Question 16

The most commonly utilized method of budget determination by large firms is the:

Accepted Answer

A)  competitive parity method.
B)  objective and task method.
C)  percentage of sales method.
D)  arbitrary allocation method.
E)  affordable method.F) None of the above
G) A) and C)

Question 17

DAGMAR MOD II was developed to alleviate problems with:

Accepted Answer

A)  the response hierarchy used in the original DAGMAR model.
B)  the costs of using DAGMAR.
C)  the fact that DAGMAR ignores sales results.
D)  setting benchmark measures.
E)  creating measurable communications objectives.F) A) and C)
G) B) and D)

Question 18

_____ is an approach to integrated marketing communications planning that involves determining what tasks need to be done and which marketing communications planning functions should be used to accomplish them.

Accepted Answer

A)  The objective/task pyramid
B)  DAGMAR
C)  The BCG matrix
D)  Zero-based communications planning
E)  Refutation planningF) A) and B)
G) A) and C)

Question 19

A(n)  _____ is a method for allocating budgets that is designed to determine the investment value of the advertising appropriation.

Accepted Answer

A)  payout plan
B)  instant rebate
C)  profit chart
D)  beat-sheet
E)  incentive programF) A) and E)
G) D) and E)

Question 20

The _____ stage in Russell Colley's hierarchical model of the communication process deals with informing consumers of the existence of the brand or company.

Accepted Answer

A)  conviction
B)  screening
C)  comprehension
D)  action
E)  awarenessF) A) and D)
G) None of the above

Exam 7: Establishing Objectives and Budgeting for the Promotional Program

A(n) _____ is a method for allocating budgets that is designed to determine the investment value of the advertising appropriation.

Correct AnswerverifiedShow Answer

According to the _____ model, the effects of advertising budgets follow the microeconomics law of diminishing returns.

Correct AnswerverifiedShow Answer

In the arbitrary allocation approach, no systematic thinking occurs and no objectives are budgeted for.

Correct AnswerverifiedShow Answer

An inside-out planning process for integrated marketing communications (IMC) starts with the customer and builds backward to the brand.

Correct AnswerverifiedShow Answer

_____ is an approach to integrated marketing communications planning that involves determining what tasks need to be done and which marketing communications planning functions should be used to accomplish them.

Correct AnswerverifiedShow Answer

We know that the _____ method of budgeting is being employed when an experienced marketing manager responds to a new employee's question, "How was the ad budget established last year?" by saying, "The same way it's always been done; I just have an instinct about how much should be budgeted where."

Correct AnswerverifiedShow Answer

DAGMAR MOD II was developed to alleviate problems with:

Correct AnswerverifiedShow Answer

_____ is an approach to setting advertising goals and objectives which states that communication effects are the logical basis for advertising goals and objectives against which success or failure should be measured.

Correct AnswerverifiedShow Answer

Which of the following is at the base of the communication effects pyramid?

Correct AnswerverifiedShow Answer

The competitive parity method takes advantage of the collective wisdom of the industry.

Correct AnswerverifiedShow Answer

The _____ method of budgeting is being employed when expenditures are allocated by assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold.

Correct AnswerverifiedShow Answer

Which of the following is at the top of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making?

Correct AnswerverifiedShow Answer

Which of the following statements best describes the relationship between marketing and communications objectives?

Correct AnswerverifiedShow Answer

Which of the following is a quantitative model to budgeting advertising expenditures?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the integrated marketing communications (IMC) model, the flow between the communications analysis and budget determination is a two-way interaction.

Correct AnswerverifiedShow Answer

An advantage of sales-oriented objectives is that they provide sufficient guidance to those responsible for planning and developing the promotional program.

Correct AnswerverifiedShow Answer

The most commonly utilized method of budget determination by large firms is the:

Correct AnswerverifiedShow Answer

According to Don Schultz, in which type of communications planning process do the promotional planners study the various media customers and prospects use, when the marketer's messages might be most relevant to customers, and when customers are likely to be most receptive to the message?

Correct AnswerverifiedShow Answer

The _____ stage in Russell Colley's hierarchical model of the communication process deals with informing consumers of the existence of the brand or company.

Correct AnswerverifiedShow Answer

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