978-0133866339 Chapter 04 Part 4

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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

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

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

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

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

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

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

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