160) 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
Question Tag: Application
Objective: 4-6
161) 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
Question Tag: Application
Objective: 4-6
162) 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
Question Tag: Application
Objective: 4-6
163) In terms of developing a communications budget, the percentage of sales method is similar
to the objective and task approach.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
39
164) The primary reason many companies use the percentage of sales method to prepare
communications budgets is its simplicity.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
165) The percentage-of-sales method for budgeting for communications tends to allocate funds
for advertising in the opposite direction from what is needed.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 4-6
166) Meet-the-competition method of developing a marketing communications budget is often
used in industries with a dominant number one brand.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 4-6
167) The primary goal of the meet-the-competition method of developing a marketing
communications budget is to prevent the loss of market share.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
168) The “what we can afford” method of budgeting for marketing communications is the most
difficult form of communications budget that a company can prepare.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
169) The objective-and-task method of budgeting marketing communications links dollars to
specific sales and profit goals.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
40
170) Many marketers believe that the objective-and-task method of developing a marketing
communications budget is the best method of budgeting.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
171) Payout planning is a form of consumer market segmentation.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
172) 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.
Question Tag: Critical Thinking
AACSB Category: Reflective thinking
Objective: 4-6
173) 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.
Question Tag: Critical Thinking
AACSB Category: Analytical thinking
Objective: 4-6
174) Quantitative methods of developing a marketing communications budget rely on computer
models or simulations.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
41
175) A pulsating communications schedule involves continuous advertising and communications
during the year with bursts of higher intensity at specific times.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
176) A flighting communications schedule involves communications only at specific times
during the year with periods of no marketing communications at other times.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
177) A continuous campaign schedule involves spending more money during peak times and less
during slow times while maintaining continuous spending throughout the entire year.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 4-6
178) In terms of developing a communications schedule, a lawn service would tend to use a
continuous schedule method.
Question Tag: Application
AACSB Category: Reflective thinking
Objective: 4-6
179) Brands such as Kenmore and Whirlpool that sell kitchen appliances would tend to use a
continuous communications schedule to allocate monies.
Question Tag: Application
AACSB Category: Application of knowledge
Objective: 4-6
42
180) Identify the various methods that can be used to develop a communications budget.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-6
181) 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.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-7
182) 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
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-7
183) In terms of media expenditures, the fastest growing media outlet is:
A) television.
B) digital.
C) magazines.
D) newspapers.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-7
43
184) 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.
Question Tag: Definition (Concept)
AACSB Category: Diverse and multicultural work environments
Objective: 4-7
185) Successful global integrated marketing communication campaigns include all of the
following tactics except:
A) a standardization approach.
B) understand the international market.
C) create a borderless marketing plan.
D) think globally, but act locally.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-7
186) Consumer product manufacturers spend more money on trade promotions directed toward
retailers while service companies spend more money on media advertising.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-7
187) In terms of marketing communication expenditures, the fastest growing media outlet is the
internet.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-7
188) A successful GIMC program utilizes market segmentation adapted to countries and cultures.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-7
44
189) A key to a successful global integrated marketing communications campaign is developing
local partnerships that are familiar with the local language and customs.
Question Tag: Critical Thinking
AACSB Category: Diverse and multicultural work environments
Objective: 4-7
190) While a market communication analysis is beneficial in international markets, successful
marketing programs are usually built without the analysis as long as the company’s marketers
understand the local culture.
Question Tag: Definition (Concept)
AACSB Category: Reflective thinking
Objective: 4-7
191) In terms of global ad spending by media, the largest category is:
A) television.
B) magazines.
C) digital.
D) newspapers.
Question Tag: Definition (Concept)
AACSB Category: Application of knowledge
Objective: 4-8
45