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130) 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.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-5
131) 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.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-5
132) Communication objectives are derived from corporate objectives.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-5
133) Marketing objectives typically include target sales volume, brand awareness, and brand
image.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-5
134) Benchmark measures are often used to study whether or not a promotional campaign has
been successful.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-5
31
135) 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.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
136) 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.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
137) 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.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
138) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
32
139) 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.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 4-6
140) 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.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
141) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
142) 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.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
33
143) 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
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 4-6
144) 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.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 4-6
145) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
34
146) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
147) 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
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 4-6
148) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
149) 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
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 4-6
35
150) 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
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 4-6
151) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
152) 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.
Question Tag: Critical Thinking
AACSB Category: Analytical thinking
Objective: 4-6
36
153) 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.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 4-6
154) 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
Question Tag: Critical Thinking
AACSB Category: Analytical thinking
Objective: 4-6
155) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
37
156) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
157) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
158) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
159) 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
Question Tag: Application
Objective: 4-6
38
