1. Advertising budgets are usually fixed, not variable.
a. True
b. False
2. One media question that companies need to answer is: “How much should we spend?”
a. True
b. False
3. The only good method to determine the total amount of money to be spent on the communications package is
using the advertising budget as a percentage of last year’s sales.
a. True
b. False
4. John owns a taxi service company. He just got some new taxis with extra benefits like onboard Wi-Fi, and he
needs to get the word out. He should calculate his advertising budget based on the method of using his strategic
advertising goal and calculating the necessary expenditures to meet that goal.
a. True
b. False
5. Overall, there is a fairly constant proportionality between advertising spending and income.
a. True
b. False
6. Gross rating points is a simple function of reach and frequency, i.e., GRP = Reach × Frequency.
a. True
b. False
7. Sid’s Surf Shop has an ad out that reached 30% of his target audience. It reached that 30% on two occasions
(on average). Sid’s gross rating points is 2.3.
a. True
b. False
8. If the marketing goal is awareness among a larger segment, the ad would have to be run during a highly
viewed TV show.
a. True
b. False
9. Sean is the VP of Marketing at a large chain of car dealerships. He believes in advertising heavily and
investing in promotional spending because there is a strong relationship between these activities and the market
value of a firm. Sean’s thought process is correct because it has been proven that heavy advertising and
promotional spending ensure a company’s high market value.
a. True
10. The cost for a simple 30-second television ad is around $50,000.
a. True
b. False
11. Marketers try to determine ROI or ROMI, which is basically a breakeven for an advertising expenditure.
a. True
b. False
a. True
b. False
13. Continuous advertising schedules have a fairly regular ad schedule, but they are not always predictable.
a. True
b. False
14. Josh is in charge of media planning for a company that makes Halloween costumes. Seasonal ads would be
a good advertising strategy for Josh’s company because they are focused on the preterm season for the product.
a. True
b. False
15. IMC encourages marketers to effect a common strategy by sending the same message across all media.
a. True
b. False
16. There is a negative relationship between good brand outcomes and IMC practices.
a. True
b. False
17. TV ads are vivid and dramatic and should be used for complex products, while print media is informative
and should be used for simplistic products.
a. True
b. False
18. Different media can offer information that supplements the product’s general positioning.
a. True
b. False
19. The most expensive type of advertising media is online (websites).
a. True
b. False
20. Advertising agencies are responsible for message integration across media.
a. True
b. False
21. Online advertising and direct mail are the most customizable.
a. True
b. False
22. Direct mail is relatively inexpensive to send and highly valued by its target audience.
a. True
b. False
23. Personal selling and a company’s sales force are essential communication vehicles for many companies and
industries.
a. True
b. False
24. Nothing beats a face-to-face conversation to try to figure out what a consumer wants and how a company
can deliver.
a. True
b. False
25. Instead of simply advertising online or through a catalog, B2B sales need salespeople.
a. True
b. False
26. Marketers face three primary questions in designing a sales force: How many salespeople do I need? Where
do I deploy them? How do I compensate them?
a. True
27. During push sales, the brand manager will typically offer members of the channel “trade allowances.”
a. True
b. False
28. Public relations (PR) is a means of providing information and building brand attributes.
a. True
b. False
29. Barbara is the director of public relations for a large, publicly traded manufacturing company. In general,
Barbara’s primary objective should be to generate goodwill on behalf of the company.
a. True
b. False
30. When something “newsworthy” happens, PR people issue news releases, known as press kits, in the form of
video clips.
a. True
b. False
31. Publicity is a communication tool that companies frequently pay for in order to generate attention or interest
in the marketplace.
a. True
b. False
32. Hammer & Nails Co. is a large chain of home improvement stores on the East Coast. Evidence suggests that
its television commercials are less effective in reaching its target audience than in past years. The marketing
department believes this is because consumers record shows but skip through commercials. If the marketing
executives still believe television advertising could be an effective way to reach their target market, the
company should use product placement in television shows that are popular with its target market.
a. True
b. False
33. Products and brands are being integrated into movies, TV shows, and video games.
a. True
b. False
34. The best known form of sales promotion is an online flash sale.
a. True
b. False
35. The choice between continuous versus occasional advertising is strictly a budget-oriented decision.
a. True
b. False
36. The two major questions related to choices among media sources are: (1) What reaches the most people?
and (2) What costs the least?
a. True
b. False
37. An IMC schedule varies depending on the time of the year.
a. True
38. If the marketing goal is to enhance awareness, then reach is the more likely media goal and this can
be measured by exposure.
a. True
b. False
39. Researchers found that increasing ad budgets relative to the competition increases sales in general.
a. True
b. False
40. A computer company uses a humorous TV ad to promote its new computer and an informative direct mail
ad to show all the features of its new computer. This is an example of IMC.
a. True
b. False
41. Anita is working on determining the amount she should request for next year’s advertising budget. She is
having difficulty coming up with a reasonable figure. One of Anita’s colleagues mentions that advertising
budgets are typically determined in one of three ways. Which is NOT one of the three typical methods?
a. The advertising budget is a percentage of last year’s sales.
b. The company spends approximately what it believes is parity with competitors.
c. The company spends 10% more on advertising than it did in the previous year.
d. The company can use its strategic advertising goal (e.g., enhance awareness or positive attitudes) and
work backward to calculate necessary expenditures.
42. Which of the following describes the general trend of proportion of ad spending to sales?
a. As ad spending increases, sales increases.
b. As ad spending increases, sales decreases.
c. As ad spending decreases, sales increases.
d. There is no relationship between ad spending and sales.
43. In marketing, GRP is an acronym for
a. gross rational products.
b. gross reach promotions.
c. greater raw prices.
d. gross rating points.
44. __________ is the average number of times a target audience saw an ad within some set duration.
a. Reach
b. Frequency
c. GRP
d. Marketing
45. Sally is the creative director at a New York-based agency. In thinking about a list of goals for the ads she is
responsible for creating, which is likely NOT on her list?
a. entertainment
b. awareness
c. memory
d. persuasion
46. Orange Inc. is a consumer electronics company and is preparing to launch its new portable music device, the
uTune. In planning its advertising strategy, the company should keep in mind that the cost to produce a fairly
simple 30-second television commercial today is at least
a. $100,000.
b. $250,000.
c. $500,000.
d. $750,000.
47. Ad costs are the highest during which program?
a. Gotham
b. Sunday Night Football
c. Big Bang Theory
d. The Blacklist
48. What term describes what marketers look for when evaluating the cost effectiveness of an ad?
a. DRO
b. ROMI
c. DAR
d. ROM
49. Propose that you work for Taco Bell and you advertise during The Voice. Its rating is 19. This is equal to
21.3 million TVs. The Voice charges $700,000 for a 30-second ad. If a meal contribution at Taco Bell is $0.60,
how many purchases are required to break even for the ad costs?
a. 1,454,598
b. 700,000
c. 420,000
d. 1,166,667