Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
39. (p. 227) According to DAGMAR, advertising objectives should be written in measurable
terms that specify:
40. (p. 227) According to the DAGMAR model, which of the following is a characteristic of a
good objective?
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
41. (p. 227) Determining a target market’s present level of awareness, knowledge and liking
towards a product often requires _____ measures.
42. (p. 227) Before beginning its new advertising campaign, Landmark Bank conducted a study
to determine consumers’ level of awareness and knowledge of the bank and its services as
well as consumers’ perceptions of the bank’s image. This was done to:
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
43. (p. 227) An airline company set the following objective for its new advertising campaign:
“To increase the percentage of consumers who know our fares are lower than the competitors’
to 75 percent over the next six months.” Using the criteria associated DAGMAR approach to
setting objective, what is wrong with this objective?
44. (p. 228) Assume the Greyhound Bus Company runs a six-month advertising campaign
promoting its convenient bus routes and excellent on-time service without conducting any sort
of marketing research. At the end of the six-month period, Greyhound conducts a study and
finds 80 percent of its frequent travelers agree the bus company has convenient bus routes and
excellent on-time service. Greyhound can conclude that:
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
45. (p. 228) For which of the following advertising communication tasks should the specified
time period be the longest?
46. (p. 228) In January 2003, Philip-Morris Companies, Inc., and Kraft Foods became the Altria
Group. The change in name reflected the fact the company has changed itself structurally,
behaviorally, and culturally. The new name was designed to focus attention on the company’s
superior performance, financial strength, and its commitment to integrity and corporate
responsibility. Which of the following statements about the communications objectives the
company would have most likely used as part of this repositioning strategy is true?
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
47. (p. 228) The DAGMAR approach to setting objectives:
48. (p. 228; 229) DAGMAR MOD II was developed to alleviate problems with:
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
49. (p. 229) Which of the following is an example of a common criticism of DAGMAR?
50. (p. 229) You are working in the advertising department of a large consumer products
company. You have suggested that the company use the DAGMAR approach for setting
advertising goals. Which of the following is an example of an argument that you are likely to
hear against the use of the DAGMAR approach to setting advertising goals?
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
51. (p. 229) Creative executives from the advertising industry might oppose the DAGMAR
approach to setting objectives because it:
52. (p. 230) Inside-out planning:
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
53. (p. 230) Outside-in planning:
54. (p. 230) _____ is an approach to integrated marketing communications planning that
involves determining what tasks need to be done and which marketing communications
planning functions should be used to accomplish them.
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
55. (p. 230) According to Duncan’s zero-based marketing communications planning approach,
56. (p. 233) To more fully appreciate the value of advertising and promotion, managers should
treat the communications budget as a(n):
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
57. (p. 233) _____ is the difference between total revenue generated by a brand and its total
variable costs.
58. (p. 233) According to Robert Steiner, which of the following terms is synonymous with
contribution margin?
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
59. (p. 235) In the case of marginal analysis approach, profits are shown to be a result of:
60. (p. 236) Which of the following statements describes a weakness inherent in the use of the
marginal analysis model for establishing an advertising budget?
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
61. (p. 236) The _____ function model is based on the microeconomics law of diminishing
returns.
62. (p. 236) The concave-downward function model is based on:
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
63. (p. 236) A marketing firm decides to purchase media time in an attempt to sell its new
product. After purchasing approximately $1 million dollars of time, it has noticed no impact
on the sales of the product. However, at $3 million, a substantial increase is shown. This
might best be explained by:
64. (p. 237) The S-shaped response function implies that:
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
65. (p. 236) The two models that are commonly used to explain the relationship between
advertising and sales are the:
66. (p. 237) According to the concave-downward model,
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
67. (p. 237) According to the S-shaped response curve,
68. (p. 237) The S-shaped response curve suggests that:
Chapter 07 – Establishing Objectives and Budgeting for the Promotional Program
69. (p. 237) Which of the following is a factor that influences the setting of the advertising
budget?
70. (p. 238) When higher-level executives determine the budget amounts to be allocated for each
department’s advertising expenditures, a _____ approach is being used.