Q&A Hero

Q: Successful ethnic marketing requires: A) hiring ethnically-owned marketing and advertising agencies. B) translating English speaking ads into Spanish or native language of the ethnic group. C) understanding the various ethnic groups and writing marketing communications that speak to their specific values and cultures. D) using ethnically-owned media outlets.

Q: In terms of media expenditures, the fastest growing media outlet is: A) television. B) digital. C) magazines. D) newspapers.

Q: In terms of marketing expenditures, service companies tend to spend more on ________ than manufacturers. A) media advertising B) trade promotions C) consumer promotions D) direct marketing

Q: In terms of marketing expenditures, companies tend to spend the most, 41 percent, on: A) media advertising. B) trade promotions. C) consumer promotions. D) direct marketing.

Q: Identify the various methods that can be used to develop a communications budget.

Q: Brands such as Kenmore and Whirlpool that sell kitchen appliances would tend to use a continuous communications schedule to allocate monies.

Q: In terms of developing a communications schedule, a lawn service would tend to use a continuous schedule method.

Q: A continuous campaign schedule involves spending more money during peak times and less during slow times while maintaining continuous spending throughout the entire year.

Q: A flighting communications schedule involves communications only at specific times during the year with periods of no marketing communications at other times.

Q: A pulsating communications schedule involves continuous advertising and communications during the year with bursts of higher intensity at specific times.

Q: Quantitative methods of developing a marketing communications budget rely on computer models or simulations.

Q: In using the payout-planning method of developing a marketing communications budget, a higher percentage is allocated to marketing communications in the early years of a product when the goal is building market share and high profits.

Q: The payout-planning method of developing a marketing communications budget establishes a ratio of advertising to sales or market share, and then reduces the ratio as the product reaches the threshold level and diminishing returns begin to occur.

Q: Payout planning is a form of consumer market segmentation.

Q: Many marketers believe that the objective-and-task method of developing a marketing communications budget is the best method of budgeting.

Q: The objective-and-task method of budgeting marketing communications links dollars to specific sales and profit goals.

Q: The "what we can afford" method of budgeting for marketing communications is the most difficult form of communications budget that a company can prepare.

Q: The primary goal of the meet-the-competition method of developing a marketing communications budget is to prevent the loss of market share.

Q: Meet-the-competition method of developing a marketing communications budget is often used in industries with a dominant number one brand.

Q: The percentage-of-sales method for budgeting for communications tends to allocate funds for advertising in the opposite direction from what is needed.

Q: The primary reason many companies use the percentage of sales method to prepare communications budgets is its simplicity.

Q: In terms of developing a communications budget, the percentage of sales method is similar to the objective and task approach.

Q: In allocating its marketing communications budget, a company such as Hershey's advertises all year, but adds additional advertising during holidays, such as Easter. Therefore, Hershey's would tend to use the ________ schedule. A) flighting B) continuous C) payout D) pulsating

Q: In allocating its marketing communications budget, a company such as General Electric that sells kitchen appliances would tend to use the ________ schedule. A) flighting B) continuous C) payout D) pulsating

Q: In allocating its marketing communications budget, a ski resort in Colorado would tend to use the ________ schedule. A) flighting B) continuous C) payout D) pulsating

Q: In allocating its marketing communications budget, weight-loss programs such as Weight Watchers that advertise primarily during the first of a year would tend to use the ________ schedule. A) flighting B) continuous C) payout D) pulsating

Q: In allocating marketing communications, spending approximately the same amount of money throughout each month of the year is a ________ schedule. A) flighting B) continuous C) payout D) pulsating

Q: In allocating marketing communications, communications only during specific times during the year with periods of no advertising the other times is a ________ schedule. A) flighting B) continuous C) payout D) pulsating

Q: In allocating marketing communications, continuous advertising and communications during the year with bursts of higher intensity at specific times is a ________ schedule. A) flighting B) continuous C) payout D) pulsating

Q: The ________ method of developing a marketing communications budget uses computer simulations to model the relationship between advertising and marketing communications and sales, profits, and other factors. A) meet the competition B) objective and task C) payout planning D) quantitative models

Q: Which method of developing a marketing communications budget is used when the marketing budget is reduced as the brand reaches the point that additional dollars invested in communications yields diminishing returns? A) Percentage of sales B) Objective and task C) Payout planning D) Quantitative methods

Q: In using the payout planning method of developing a marketing communications budget, the marketing budget would be reduced: A) at the product's introduction, then increased when brand acceptance occurs. B) when the brand becomes the market leader. C) when the brand reaches the point at which additional dollars invested in communications yields diminishing returns. D) when the market becomes saturated.

Q: In using the payout planning method of developing a marketing communications budget, the larger amounts of dollars would be spent on marketing communications: A) in the early years to build brand awareness and brand equity. B) in the middle years to build brand equity and brand preference. C) in the later years to maintain market share. D) when the market share is the lowest.

Q: Which method of developing a marketing communications budget establishes a ratio of advertising dollars to sales or market share then reduces the percentage as sales build and the product obtains market share? A) Arbitrary allocation B) Meet-the-competition C) Payout planning D) Quantitative models

Q: The ________ approach to developing a marketing communications budget is often viewed as being the most effective. A) objective and task B) percentage of sales C) what we can afford D) payout planning

Q: If a company's leaders reject a communications budgeting method because it would take too long to prepare, odds are it is the ________ budgeting method. A) percentage of sales B) meet the competition C) what we can afford D) objective and task

Q: Which method for developing a marketing communications budget links dollars to defined goals? A) Percentage of sales B) Meet the competition C) What we can afford D) Objective and task

Q: Newer and smaller companies are inclined to use the ________ method when developing marketing communications budgets. A) percentage of sales B) meet the competition C) what we can afford D) payout planning

Q: Managers who do not recognize the benefits of marketing may be most inclined to use the ________ method of communications budgeting. A) percentage of sales B) meet the competition C) what we can afford D) payout planning

Q: Which method of developing marketing communications budget is often used in highly competitive markets where rivalries between competitors are intense? A) Percentage of sales B) Meet the competition C) What we can afford D) Objective and task

Q: The primary objective of the meet-the-competition method for developing a marketing communications budget is to: A) match the communication budget with sales. B) ensure marketing dollars are invested where it is most needed. C) prevent the loss of market share. D) ensure marketing dollars are allocated appropriately.

Q: If Burger King's advertising manager decides to match McDonald's advertising expenditures the ________ advertising budget method is being used. A) objective and task B) meet the competition C) what we can afford D) the percentage of share method

Q: The primary disadvantage of the meet-the-competition method of marketing communication budgeting is: A) marketing dollars may not be spent efficiently. B) there is little flexibility in how marketing dollars can be spent. C) when sales go down, so does spending. D) it shows a lack of commitment to marketing.

Q: Basing a budget on what other companies are spending on advertising and communication is which method? A) Percentage of sales B) Meet the competition C) What we can afford D) Payout planning

Q: The primary reason companies develop a communications budget using the percentage of sales method is: A) it tends to be more accurate than the other methods. B) the budget tends to change with sales, so as sales increase there is more money available for communications. C) money is available for unique marketing opportunities that arise. D) it is simple to prepare.

Q: One of the problems with the percentage of sales budgeting method is: A) deciding on the percentage level. B) finding a benchmark figure to use. C) the budget tends to change in the opposite direction of what may be needed. D) the competition knows how much the company will spend on advertising.

Q: Basing a communications budget on sales from the previous year or anticipated sales for the next year is the ________ budgeting method. A) percentage of sales B) meet the competition C) what we can afford D) payout planning

Q: All of the following are methods of determining marketing communications budgets except: A) objective and task. B) payout planning. C) sales-response analysis. D) quantitative methods.

Q: All of the following are methods of determining marketing communications budgets except: A) percentage of sales. B) sales approximation. C) meet the competition. D) what we can afford.

Q: A communications budget is based on: A) communication objectives. B) marketing objectives. C) both communication and marketing objectives. D) a targeted level of return on investment.

Q: Benchmark measures are often used to study whether or not a promotional campaign has been successful.

Q: Marketing objectives typically include target sales volume, brand awareness, and brand image.

Q: Communication objectives are derived from corporate objectives.

Q: All of the following would be examples of a marketing objective, except: A) increase market share. B) meet a targeted return on investment. C) enhance brand image. D) increase sales volume.

Q: The starting point that is studied in relation to the degree of change following a promotional campaign is called a: A) post-hoc analysis. B) marginal analysis. C) benchmark measure. D) standardized measure.

Q: All of the following are examples of typical marketing communications objectives except: A) increase market share. B) increase the number of products offered. C) increase profits. D) increase return on investment.

Q: All of the following are examples of typical communication objectives except: A) identify competitors. B) encourage repeat purchases. C) enhance firm image. D) change customer beliefs or attributes.

Q: A local video rental store looking to increase customer traffic in the summer would be an example of a: A) target market analysis. B) product positioning. C) communications analysis. D) communications objective.

Q: Define product positioning. What positioning strategies can a brand use?

Q: When Chevrolet markets its products as being as American as apple pie and hot dogs, the approach uses a product class positioning.

Q: Product positioning can be based on variables beyond price and quality, such as product users, product class, and cultural symbols.

Q: The quality of products, prices charged, methods of distribution, image, and communication tactics create a product's position.

Q: Product positioning is the perception created in the consumer's mind regarding the nature of the competition and the external environment.

Q: Morning Star has developed an entire line of non-meat breakfast foods and markets them as a substitute for breakfast meats, which is an example of product positioning by: A) product user. B) product class. C) use or application D) cultural symbol.

Q: Stetson cologne has been positioned using a tough, cowboy image, which is an example of product positioning by: A) product user. B) product class. C) use or application. D) cultural symbol.

Q: The product positioning strategy based on a category or type of product is the ________ positioning approach. A) product user B) product class C) use or application D) cultural symbol

Q: When a product positioning strategy is based on the type of consumer that buys an item, the ________ positioning approach is being used. A) product user B) product class C) use or application D) cultural symbol

Q: Walmart uses the tagline "save money, live better." This is an example of product positioning by: A) product user. B) price-quality relationship. C) use or application. D) cultural symbol.

Q: The product positioning strategy based on how a product is used is the ________ positioning approach. A) product attributes B) competitors C) use or application D) price-quality relationship

Q: Celestial Seasonings focuses on the healthy aspect of its green tea. This is an example of product positioning by: A) product user. B) product class. C) use or application. D) product attribute.

Q: When Mercedes Benz promises the finest luxury automobile, the positioning approach being used is: A) competitors. B) price-quality relationship. C) use or application. D) cultural symbol.

Q: The product positioning strategy based on value or prestige is the ________ positioning approach. A) product attributes B) competitors C) use or application D) price-quality relationship

Q: When a sandwich chain points out that its meats are sliced in the store while Subway's meats are sliced in a "factory," the type of positioning being emphasized is: A) product attributes. B) competitor. C) use or application. D) price-quality relationship.

Q: If Dominos advertises, "our pizza beat Pizza Hut in a recent taste test," the positioning approach would be: A) product attributes. B) based on competitors. C) use or application. D) price-quality relationship.

Q: The positioning strategy of using another brand to establish product position is the ________ positioning approach. A) product attributes B) competitors C) use or application D) price-quality relationship

Q: A restaurant that advertises "the best food and best service in town" uses which form of positioning? A) Product attributes B) Competitors C) Use or application D) Price-quality relationship

Q: The product positioning strategy based on a product trait or characteristic is the ________ positioning approach. A) product attributes B) competitors C) use or application D) price-quality relationship

Q: All of the following are possible product positioning strategies except: A) governmental customers. B) cultural symbols. C) product users. D) product class.

Q: All of the following are possible product positioning strategies except: A) attributes. B) competitors. C) use or application. D) by-products.

Q: Product positioning is the: A) level of brand equity faced by a company or brand. B) perception consumers have of a company or brand relative to competitors. C) number and level of products offered by a company. D) perception consumers have of a company or brand relative to other brands being offered by the company.