Q&A Hero

Q: All of the following were elements of Taco Bell's Cool Ranch Doritos Locos Tacos IMC campaign EXCEPT: A. social media. B. outdoor. C. direct mail. D. public relations. E. cinema ads.

Q: According to the textbook, __________ recently won Advertising Age magazine's coveted Media Agency of the Year award. A. 72 and Sunny B. Carat C. Fallon D. LatinWorks E. Disney

Q: Carrying out the promotion program can be expensive and time consuming. One researcher estimates that "an organization with sales between $200 million and $500 million will need __________ years" to successfully implement an IMC program. A. two B. three C. four D. five E. ten

Q: Once the design of each of the promotional program elements is complete, it is important to determine the most effective timing of their use. The __________ describes the order in which each promotional tool is introduced and the frequency of its use during a campaign. A. perceptual map B. efficiency matrix C. sensitivity analysis D. promotion to sales ratio E. promotion schedule

Q: The design of the promotion will play a primary role in determining the message that is communicated to the audience. Successful designs are often the result of A. accurately estimating costs of tasks. B. identifying appropriate objectives. C. accurately estimating what task will accomplish each objective. D. obtaining insights regarding consumers' interests and behavior. E. obtaining insights regarding task performance.

Q: The Olympics have become a very visible example of a comprehensive integrated communication program. For organizers, primary importance is placed on A. advertising and personal selling. B. personal selling and public relations. C. public relations and publicity. D. sales promotion and direct marketing. E. direct marketing and personal selling.

Q: Which of the following steps in the objective and task approach to promotion budgeting must be done correctly in order for any of the others to have the proper effect? A. accurately estimate costs of tasks B. identify the appropriate target audience C. accurately identify each promotion budget cost item that constitutes each separate promotion task D. perform the promotion tasks as intended E. accurately estimate what tasks will accomplish each promotion objective

Q: Which of the following is the best approach to promotion budgeting? A. objective and task budgeting B. percentage of sales budgeting C. competitive parity budgeting D. all-you-can-afford budgeting E. linear forecast budgeting

Q: The best approach to budgeting is objective and task budgeting, whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and A. asks the ad agency for an estimate. B. asks the media to propose a program. C. determines the promotion cost of performing these tasks. D. determines what spending level top management will allow for the proposed program. E. surveys customers to determine what spending levels they think are appropriate.

Q: Allocating funds to promotion whereby the company: (1) determines its promotion objectives; (2) outlines the tasks to accomplish these objectives; and (3) determines the promotion cost of performing these tasks is referred to as A. percentage of sales budgeting. B. competitive parity budgeting. C. all-you-can-afford budgeting. D. linear forecast budgeting. E. objective and task budgeting.

Q: Imagine a small retailer saying, "Well, after budgeting for all of our expenses for next year, we still have about $7,500 remaining for emergencies. Let's budget 20 percent of that amount for advertising." What budgeting technique is the small retailer using? A. percentage of sales budgeting B. competitive parity budgeting C. objective and task budgeting D. all-you-can-afford budgeting E. linear forecast budgeting

Q: All-you-can-afford-budgeting refers to A. allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. B. matching a competitor's absolute level of spending or the proportion per point of market share. C. determining a firm's promotion objectives, outlining the tasks to accomplish these objectives, and determining the advertising cost of performing these tasks. D. allocating funds to a promotion only after all other budget items are covered. E. allocating funds to a promotion based on expected profits generated from it.

Q: Allocation of funds to promotion only after all other budget items are covered is referred to as A. percentage of sales budgeting. B. all-you-can-afford budgeting. C. competitive parity budgeting. D. objective and task budgeting. E. linear forecast budgeting.

Q: Allocating funds to promotion by matching the competitor's absolute level of spending or the proportion per point of market share is referred to as __________ budgeting. A. percentage of sales B. competitive parity C. all-you-can-afford D. objective and task E. linear forecast

Q: Competitive parity budgeting refers to A. matching a competitor's absolute level of spending or the proportion per point of market share. B. allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. C. allocating funds to a promotion only after all other budget items are covered. D. determining a firm's promotion objectives, outlining the tasks to accomplish these objectives, and determining the advertising cost of performing these tasks. E. allocating funds to a promotion based on expected profits generated from it.

Q: A marketing manager at Ford computed the promotion-to-sales ratio for Ford, GM, and the auto industry itself. She found that Ford's ratio was 2.8%, GM's ratio was 4.5%, and the auto industry average was 6.7%. She then realized A. she had better find a new job as she had been responsible for these results. B. she needed to explain these numbers to her boss, especially in relation to the industry. C. GM shortly would be taking market share from Ford. D. she spent her promotional dollars effectively. E. she wasn't the marketer she thought she was.

Q: The formula to calculate a promotion-to-sales ratio is: Total promotion expenditures divided by A. Total marketing costs. B. Marginal revenue. C. Average revenue. D. Net sales. E. Total sales.

Q: The best way to assess the effectiveness of all promotion expenditures during the past year is to compute a __________. A. break-even point B. promotion-to-sales ratio C. ROI D. promotion-to-expenses ratio E. advertising-to-sales promotion ratio

Q: The promotion-to-sales ratio can be used by managers to make year-to-year comparisons of their programs, to compare the effectiveness of their programs with competitors' programs, or to make comparisons with A. calculated break-even points. B. estimated return on investments. C. promotion-to-expense ratios. D. industry averages. E. advertising-to-sales promotion ratios.

Q: Managers often use the promotion-to-sales ratio on their marketing dashboards to assess how effective the integrated marketing communications program expenditures were at generating __________. A. sales B. customer satisfaction C. profits D. promotional sustainability E. CPM

Q: The promotion-to-sales ratio is a(n) __________ budgeting method. A. competitive parity B. all-you-can-afford C. percentage of sales D. objective and task E. linear forecast

Q: Imagine you have overheard the owner of a medium-sized manufacturing company saying, "We had a good year, and I think next year will be even better. I'm going to raise this year's promotion budget 4.5 percent based on the increase of last year's gross dollar sales. That will let me do more advertising than the 3.5 percent I budgeted last year." From this information, the manufacturer is using __________ budgeting. A. percentage of sales B. competitive parity C. all-you-can-afford D. objective and task E. linear forecast

Q: In which sales budgeting approach is the amount of money spent based on past or anticipated sales? A. competitive parity B. all-you-can-afford C. objective and task D. percentage of sales E. relative scale

Q: A budgeting method that allocates funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold, is referred to as __________ budgeting. A. percentage of sales B. competitive parity C. all-you-can-afford D. objective and task E. linear forecast

Q: Percentage of sales budgeting refers to A. matching a competitor's absolute level of spending or the proportion per point of market share. B. allocating funds to a promotion only after all other budget items are covered. C. allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. D. determining a firm's promotion objectives, outlining the tasks to accomplish these objectives, and determining the advertising cost of performing these tasks. E. allocating funds to a promotion based on expected profits generated from it.

Q: All of the following are methods that firms use to set their promotion budgets EXCEPT: A. objective and task. B. lost horse forecast. C. competitive parity. D. percentage of sales. E. all you can afford.

Q: Promotion objectives should possess three important qualities. They should be designed for a well-defined target audience, be measurable, and A. contain some element of appeal, such as sex, fear, or humor. B. be profitable. C. stay within clearly defined budgetary constraints. D. cover a specified time period. E. retain some degree of flexibility.

Q: Promotion objectives should possess three important qualities. They should cover a specified time period, be measurable, andA. unique in character.B. appealing.C. be designed for a well-defined target audience.D. repeatable.E. creative.

Q: In the hierarchy of effects, adoption refers to A. the point at which the consumer accepts the integrity of the manufacturer and the reliability of the product. B. the consumer's appraisal of the product or brand on the majority of important attributes. C. an increase in the consumer's desire to learn about some of the features of the product or brand. D. the consumer's actual first purchase and use of the product or brand. E. the consumer's repeated purchase and use of the product or brand after a favorable experience on the first trial.

Q: In the hierarchy of effects, the consumer's repeated purchase and use of the product or brand is referred to as the __________ stage. A. evaluation B. adoption C. awareness D. interest E. trial

Q: CoolMax is a fabric made by DuPont. It is used in the manufacture of exercise clothes because it keeps the user cool and dry. The ads for the fabric in health and fitness magazines convinced Kumar to buy a pair of Thorlo CoolMax walking crew socks made of the material. Since he had never before owned anything made with CoolMax, Kumar was in which stage of the hierarchy of effects? A. trial B. diffusion C. innovation D. evaluation E. interest

Q: In the hierarchy of effects, trial refers to A. the consumer's ability to recognize and remember the product or brand name. B. the consumer's appraisal of the product or brand on important attributes. C. the consumer's first actual purchase and use of the product or brand. D. an increase in the consumer's desire to learn about some of the features of the product or brand. E. a favorable experience on the first trial, resulting in the consumer's repeated purchase and use of the product or brand.

Q: In the hierarchy of effects, the consumer's actual first purchase and use of the product or brand is referred to as the __________ stage. A. adoption B. evaluation C. awareness D. interest E. trial

Q: In the hierarchy of effects, evaluation refers to A. the consumer's ability to recognize and remember the product or brand name. B. the consumer's appraisal of the product or brand on important attributes. C. an increase in the consumer's desire to learn about some of the features of the product or brand. D. a favorable experience on the first trial, resulting in the consumer's repeated purchase and use of the product or brand. E. the consumer's first actual purchase and use of the product or brand.

Q: In the hierarchy of effects, the consumer's appraisal of the product or brand on important attributes is referred to as the __________ stage. A. evaluation B. adoption C. awareness D. interest E. trial

Q: Ann's young son suffers from allergies and complains about his watery eyes and drowsiness. Ann feels bad because she thought there was nothing she could do to help him. When Ann saw the ad for a new drug that counters these symptoms in Martha Stewart Living magazine, she vowed to ask his doctor about this product on her son's next visit. Ann is at which stage in the hierarchy of effects? A. She is the trial stage and will move to the interest stage soon. B. She has moved quickly from the awareness stage to the interest stage. C. She was in the consumer development stage and will more than likely move to the transition stage. D. She is in the evaluation stage and will move to the interest stage soon. E. She was in the interest stage and then moved quickly to the diffusion stage.

Q: In the hierarchy of effects, interest refers to A. the consumer's ability to recognize and remember the product or brand name. B. the consumer's appraisal of the product or brand on important attributes. C. an increase in the consumer's desire to learn about some of the features of the product or brand. D. a favorable experience on the first trial, resulting in the consumer's repeated purchase and use of the product or brand. E. the consumer's first actual purchase and use of the product or brand.

Q: In the hierarchy of effects, an increase in the consumer's desire to learn about some of the features of the product or brand is referred to as the __________ stage. A. adoption B. evaluation C. awareness D. interest E. trial

Q: In the hierarchy of effects, awareness is defined as A. the consumer's first actual purchase and use of the product or brand. B. the consumer's repeated purchase and use of the product or brand. C. the consumer's appraisal of the product or brand on important attributes. D. an increase in the consumer's desire to learn about some of the features of the product or brand. E. the consumer's ability to recognize and remember the product or brand name.

Q: In the hierarchy of effects, the consumer's ability to recognize and remember the product or brand name is referred to as the __________ stage. A. adoption B. evaluation C. awareness D. interest E. trial

Q: The fifth stage in the hierarchy of effects is __________. A. interest B. awareness C. adoption D. trial E. evaluation

Q: The fourth stage in the hierarchy of effects is __________. A. interest B. awareness C. adoption D. trial E. evaluation

Q: The second stage in the hierarchy of effects is __________. A. interest B. awareness C. adoption D. trial E. evaluation

Q: The first stage in the hierarchy of effects is __________. A. interest B. awareness C. adoption D. trial E. evaluation

Q: For a promotional campaign, the hierarchy of effects refers to the stages a prospective buyer goes through, which include: A. awareness, interest, evaluation, trial, and rejection. B. interest, adoption, and brand loyalty. C. cognitive, affective, and behavioral. D. awareness, interest, evaluation, trial, and adoption. E. see an ad, try the product, buy the product, and repeat purchase.

Q: For a promotional campaign, the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action is referred to as __________. A. the purchase continuum B. the hierarchy of effects C. the product life cycle D. the consumer purchasing scale E. Maslow's hierarchy

Q: Promotional programs are specifically directed toward a group of prospective buyers, or a(n) __________. A. source B. diffuser C. encoder D. target audience E. particular media

Q: The __________ is defined as the group of prospective buyers toward which a promotion program is directed. A. directed audience B. intended audience C. promotion audience D. selling audience E. target audience

Q: During the evaluation phase of an IMC program, a firm will __________ and make needed changes. A. posttest the promotion B. design the promotion C. state the mission D. carry out the promotion E. identify possible advertising or promotional firms

Q: During the implementation phase of an IMC program, a firm will pretest the promotion and __________. A. posttest the promotion B. design the promotion C. state the mission D. carry out the promotion E. identify possible advertising or promotional firms

Q: During the implementation phase of an IMC program, a firm will __________ and carry out promotion. A. posttest the promotion B. design the promotion C. state the mission D. identify possible advertising or promotional firms E. pretest the promotion

Q: During the planning phase of an IMC program, a firm will identify the target audience, specify the promotion objectives, set the budget, select the right promotional tools, __________, and schedule the promotion. A. pretest the promotion B. design the promotion C. state the mission D. identify possible advertising or promotional firms E. carry out the promotion

Q: During the planning phase of an IMC program, a firm will identify the target audience, specify the promotion objectives, set the budget, __________, design the promotion, and schedule the promotion. A. pretest the promotion B. state the mission C. identify possible advertising or promotional firms D. carry out the promotion E. select the right promotional tools

Q: During the planning phase of an IMC program, a firm will identify the target audience, __________, set the budget, select the right promotional tools, design the promotion, and schedule the promotion. A. specify the promotion objectives B. pretest the promotion C. state the mission D. identify possible advertising or promotional firms E. carry out the promotion

Q: During the planning phase of an IMC program, a firm will __________, specify the promotion objectives, set the budget, select the right promotional tools, design the promotion, and schedule the promotion. A. pretest the promotion B. identify the target audience C. state the mission D. identify possible advertising or promotional firms E. carry out the promotion

Q: The first step in developing the promotion program is to __________. A. set the budget B. state the mission C. identify the target audience D. select the appeal E. select the media

Q: The actions a firm takes during the promotion decision process include __________, executing, and assessing the promotion program. A. pretesting B. developing C. stating the mission D. selecting the appeal E. selecting the media

Q: Figure 14-5 The promotion decision process is divided into three phases. In Figure 14-5 above, C refers to the __________ phase. A. planning B. implementation C. forecasting D. discharge E. evaluation

Q: Figure 14-5 The promotion decision process is divided into three phases. In Figure 14-5 above, B refers to the __________ phase. A. scheduling B. development C. implementation D. evaluation E. planning

Q: Figure 14-5 The promotion decision process is divided into three phases. In Figure 14-5 above, Box A refers to the __________ phase. A. planning B. forecasting C. evaluation D. realization E. implementation

Q: Many prescription drugs such as Lipitor have national TV advertising campaigns to encourage patients to learn more about the drugs and ask for them by name from their doctors. The manufacturers of these drugs are using a(n) __________ promotional channel strategy. A. intense B. pull C. push D. inertia E. exclusive

Q: Pharmaceutical manufacturers encourage patients to learn more about their drugs and ask for them by name from the doctor. The manufacturers of these drugs are using a(n) __________ promotional channel strategy. A. pull B. intense C. push D. inertia E. exclusive

Q: Pharmaceutical companies now spend more than $3.4 billion annually on __________ prescription drug advertising to complement traditional personal selling and free samples directed only at doctors. A. consumer integrated B. doctor cohort C. informational DVD D. direct-to-consumer E. customized on-line

Q: When employing a pull strategy, a manufacturer A. advertises a great deal to its wholesalers, retailers, and ultimate consumers with the use of nationwide advertising campaigns. B. forces a retailer to promote its product by placing national brand ads in local newspapers. C. directs the promotional mix at ultimate consumers to encourage them to ask retailers for the product. D. directs the promotional mix toward channel members to gain their cooperation in ordering and stocking the product. E. directs retailers to promote one product over another to help balance fluctuations in inventory.

Q: Directing the promotional mix at ultimate consumers to encourage them to ask retailers for the product is referred to as a __________. A. push strategy B. intense strategy C. inertia strategy D. exclusivity strategy E. pull strategy

Q: Chrysler Corporation provides support and incentives for its Chrysler, Dodge, and Jeep dealers. Through a multi-level program, Chrysler provides incentives to reward dealers for meeting sales goals. Dealers receive an incentive when they are near a goal, another when they reach a goal, and a larger incentive if they exceed sales projections. All of these actions are intended to encourage Chrysler dealers to __________ the Chrysler products through the channel to consumers. A. dump B. pull C. unload D. no haggle E. push

Q: When a manufacturer directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product, it is using a(n) __________ channel strategy. A. push B. pull C. inertia D. exclusivity E. logistics

Q: When employing a push strategy, a manufacturer A. advertises a great deal to its wholesalers, retailers, and ultimate consumers with the use of nationwide advertising campaigns. B. directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product. C. forces a retailer to promote its products by placing national ads in local newspapers. D. directs its efforts in the form of advertising and sales promotions to ultimate consumers to encourage them to ask the retailer for the product. E. directs retailers to promote one product over another to help balance fluctuations in inventory.

Q: Figure 14-4 Channel B in Figure 14-4 above represents which type of promotional channel strategy? A. direct B. indirect C. push D. pull E. vertical

Q: Figure 14-4 Channel A in Figure 14-4 above represents which type of promotional channel strategy? A. direct B. indirect C. push D. pull E. vertical

Q: Which stage of the product life cycle is usually a period of phase-out for the product, when little money is spent in the promotional mix? A. introduction B. growth C. maturity D. decline E. termination

Q: What stage of the product life cycle is a period when little money is spent in the promotional mix? A. decline B. maturity C. growth D. introduction E. incubation

Q: The promotional objective of the decline stage of the product life cycle is to __________. A. recommit B. persuade C. compare D. remind E. phase out

Q: An unsatisfied customer who switches brands is hard to replace. Which stage of the product life cycle is focused on maintaining loyal buyers so that customers will not switch brands? A. introduction B. maturity C. growth D. incubation E. decline

Q: At which stage in the product life cycle are discounts and coupons offered to both consumers and intermediaries to maintain loyal buyers? A. introduction B. growth C. incubation D. maturity E. decline

Q: Reminding buyers of the product's existence is the promotional objective during which stage of the product life cycle? A. introduction B. growth C. accelerated development D. early growth E. maturity

Q: The promotional objective of the maturity stage of the product life cycle is to __________. A. inform B. persuade C. remind D. sway E. convince

Q: Albert Searchware is a type of search engine used at company websites to handle customer questions. The firm is trying to determine what promotional strategy should be employed with its flagship product. It has determined that search engine software is in the growth stage of its product life cycle. Which of the following options should it employ? A. Devote 40 percent of the promotional budget to sales promotion that supply the public with demonstration CDs to prove the merits of Albert Searchware. B. Spend 30 percent of the budget in the effort to generate publicity for Albert Searchware. C. Use the majority of its promotional budget on advertising that focuses on brand differences. D. Use a balanced budget and spend equally for each of the four promotional choices in an attempt to even out sales growth. E. Encourage its tech support staff to emphasize the superiority of Albert Searchware and its after-sale support.

Q: Which promotional element would you most likely use during the growth stage of the product life cycle to solidify channels of distribution? A. advertising B. sales promotion C. publicity D. personal selling E. direct marketing

Q: Persuading the consumer to buy the product rather than substitutes is the promotional objective during which stage of the product life cycle? A. introduction B. growth C. maturity D. accelerated development E. early growth