231) Which of the following is the best approach to promotion budgeting?
A) objective and task budgeting
B) percentage of sales budgeting
C) competitive parity budgeting
D) all-you-can-afford budgeting
E) linear forecast budgeting
232) The Olympics have become a very visible example of a comprehensive integrated
communication program. For organizers, primary importance is placed on
A) advertising and personal selling.
B) personal selling and public relations.
C) public relations and publicity.
D) sales promotion and direct marketing.
E) direct marketing and personal selling.
233) The design of the promotion will play a primary role in determining the message that is
communicated to the audience. Successful designs rely in part on
A) accurately estimating costs of tasks.
B) identifying appropriate objectives.
C) accurately estimating what task will accomplish each objective.
D) obtaining insights regarding consumers’ interests and behavior.
E) evaluating staff on task performance.
234) Once the design of each of the promotional program elements is complete, it is important to
determine the most effective timing of their use. The ________ describes the order in which each
promotional tool is introduced and the frequency of its use during a campaign.
A) perceptual map
B) efficiency matrix
C) sensitivity analysis
D) promotion-to-sales ratio
E) promotion schedule
235) In terms of a promotional schedule, businesses such as ski resorts, airlines, and professional
sports teams are likely to reduce their promotional activity
A) when competitors leave the market.
B) during the off-season.
C) only when sales are down more than 10 to 20 percent.
D) if they find cheaper social media options to be effective.
E) when the target audience becomes younger.
236) One researcher estimates that “an organization with sales between $200 million and $500
million will need three ________” to successfully implement an IMC program.
A) days
B) weeks
C) months
D) years
E) decades
237) According to the textbook, ________ recently won Advertising Age magazine’s coveted
Media Agency of the Year award.
A) 72 and Sunny
B) PHD
C) Fallon
D) LatinWorks
E) Disney
238) An important factor in developing successful IMC programs is to create a process that
facilitates their design and use. A tool used to evaluate a company’s current process is the IMC
A) audit.
B) sensitivity analysis.
C) what-if analysis.
D) perceptual map.
E) pretest.
239) Which of the following statements about executing and evaluating the promotion program
is most accurate?
A) Although there are five elements in the promotional mix, the only element that really benefits
from an IMC audit is advertising.
B) Most IMC programs have no difficulty creating a pretest, but posttests are much more
difficult to construct since a number of unknown elements must be measured.
C) In addition to ensuring that traditional forms of communication are integrated, companies
must be able to monitor consumer content, respond to inconsistent messages, and answer
questions from individual customers.
D) The ideal IMC program does not need any evaluation if it is executed according to plan.
E) The most effective IMC audits are external. Internal audits tend to bias the results in the favor
of the marketing staff’s expectations.
240) All of the following are forms of direct marketing except which?
A) catalogs
B) in-store samples
C) telemarketing
D) television home shopping
E) direct mail
241) Sales from which of the following direct marketing tools is growing the fastest at 33
percent?
A) mobile direct marketing
B) social network direct marketing
C) telemarketing
D) e-mail marketing
E) direct mail marketing
242) All of the following forms of direct marketing are used by consumers to purchase products
except which?
A) social media posts
B) sweepstakes
C) online
D) mobile offers
E) mail
243) Customers report many benefits of direct marketing, including which of these?
A) There is more privacy than in-store shopping.
B) There are fewer product returns.
C) The prestige of the purchase is higher.
D) There are a greater number of additional incentives from sellers to retain customer loyalty.
E) Products are generally bundled with other products to offer buyers greater value.
244) Which of the following statements regarding direct marketing is most accurate?
A) Direct marketing now allows customers to shop during regular business hours, with extended
hours on weekends.
B) Although direct marketing usually saves customers time, it does not usually save customers
money.
C) Although direct marketing can save consumers time and money, the process is labor intensive
and not very much fun.
D) Many customers believe direct marketing provides excellent customer service.
E) Direct customers feel that their privacy is more likely to be compromised with direct
marketing than with other methods.
245) An offer that contain all the information necessary for a prospective buyer to make a
decision to purchase and complete the transaction may result in
A) a direct order.
B) lead generation.
C) traffic generation.
D) a data compilation.
E) a prospect bid.
246) Direct orders are
A) direct communication with consumers to generate a response in the form of an order, a
request for further information, or a visit to a retail outlet.
B) products that are shipped directly to the place of purchase rather than being stored or
distributed through intermediaries.
C) the result of offers that contain all the information necessary for a prospective buyer to make
a decision to purchase and complete the transaction.
D) the outcome of an offer designed to motivate people to visit a business.
E) the result of an offer designed to generate interest in a product or service and a request for
additional information.
247) An offer designed to generate interest in a product or service and a request for additional
information results in
A) direct orders.
B) lead generation.
C) traffic generation.
D) indirect orders.
E) prospecting.
248) Lead generation is
A) the result of offers that contain all the information necessary for a prospective buyer to make
a decision to purchase and complete the transaction.
B) a direct telephone communication only with consumers to generate a response in the form of
an order, a request for further information, or a visit to a retail outlet.
C) a bundle of products that are shipped directly to the point of purchase rather than being stored
or distributed through intermediaries.
D) the outcome of an offer designed to motivate people to visit a business.
E) the result of a direct marketing offer designed to generate interest in a product or service and a
request for additional information.
249) A paid advertisement for the Texas Department of Economic Development—Tourism
Division invited readers of a magazine to mail in a postage-paid reply card that was included
with the ad, visit the state’s website, or use a toll-free number to request more information about
vacation destinations in Texas. The primary purpose of this ad was
A) direct order fulfillment.
B) to make a public service announcement.
C) indirect order generation.
D) lead generation.
E) digital communication.
250) The outcome of a direct marketing offer designed to motivate people to visit a business is
referred to as
A) direct order consignment.
B) lead generation.
C) traffic generation.
D) indirect order fulfillment.
E) first-mover advantage.
251) Traffic generation is
A) the outcome of an offer designed to motivate people to visit a business.
B) the result of offers that contain all the information necessary for a prospective buyer to make
a decision to purchase and complete the transaction.
C) a direct communication with consumers to generate a response in the form of an order, a
request for further information, or a visit to a retail outlet.
D) the result of a direct marketing offer designed to generate interest in a product or service and
a request for additional information.
E) an increase in the amount of foot traffic in a retail establishment that coincides with a new
advertising campaign.
252) Amanda received a postcard from a local wellness spa. The card invited her to attend an
invitation-only open house and receive a 20 percent discount on her first service scheduled that
day. She went to the spa later in the week to consider getting a facial. With respect to Amanda,
the postcard from the spa was a form of direct marketing used to
A) generate direct orders.
B) generate leads.
C) create awareness.
D) generate traffic.
E) create a new image.
253) ________ are the result of organizations’ efforts to create profiles of customers so that
direct marketing tools, such as e-mail and catalogs, can be directed at specific customers.
A) Databases
B) Direct order fulfillments
C) Lead generations
D) First-mover advantages
E) Direct order consignments
254) All of the following are consumer-related data that comprise a direct marketing database
(such as for a catalog) except which?
A) media usage
B) demographics
C) brand preferences
D) income tax rate
E) lifestyles
255) Amazon.com, a successful online retailer, manages an extensive customer database that is
used to determine which products are suggested to each customer. Some data are collected from
the customer; other data are collected from the businesses where purchases are made. Which of
the following customer data are best collected from the customer?
A) brand
B) price
C) media use
D) model
E) quantity
256) Amazon.com, a successful online retailer, manages an extensive customer database that is
used to determine which products are suggested to each customer. Some data are collected from
the customer; other data are collected from the businesses where purchases are made. Which of
the following customer data are best collected by Amazon itself?
A) lifestyles
B) price
C) demographics
D) media use
E) competitive products purchased
257) Direct marketing faces several challenges and opportunities in global markets. Several
countries, such as United Kingdom, Australia, the European Union, and Japan, have
requirements for mandatory “opt-in,” which means
A) global marketers must pay a special fee beyond the regular postage for the privilege of using
a country’s postal system.
B) global marketers wishing to use direct marketing must have all mailings approved by their
respective trade commissions for appropriateness of content.
C) global marketers have to purchase special “catalog” postage at a cost higher than that charged
for the same weight of mail sent from one individual to another.
D) consumers have to pay a special fee to the government to defray the costs of mail carriers
having to handle larger volumes of mail from catalogues.
E) potential customers must give permission to include their name on a list for direct marketing
solicitations.
258) Factors such as differences in payment methods (lack of credit and credit cards), the need
for improved reliability and security with regard to the mail, telephone, and Internet systems, and
government regulations create challenges for ________ in the global market.
A) direct marketing
B) advertising
C) personal selling
D) sales promotion
E) publicity