The primary goal of a media planner is to:
a. choose the best commercial spots available.
b. develop a message that works well with the firm’s target market.
c. achieve the appropriate message reach and frequency.
d. use a wide variety of media to ensure the entire target audience is exposed.
e. reach the largest number of people in the target market within the budget constraints.
Scenario 8.1
Use the following to answer the questions.
Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of the
four sites. With a large number of its bikes sold in markets all around the world, it still
retains the manufacturing close to the headquarters for several reasons, one being that
its management wants to keep close watch on the quality of its products. However, for
all the accessories, apparel, and other riding gear, Harley-Davidson engages other
manufacturers to produce the items with the Harley name and logo. Some of these
items, particularly the apparel, are made in China. Lately, some members of the Harley
Owners’ Group (HOG) have been complaining to the company about this practice,
citing that “everything Harley should be made in America.” At what level of
involvement in international marketing is Harley-Davidson with regard to its bikes?
a. Full-scale
b. Globalization
c. Joint venture
d. Direct ownership
e. Exporting
Scenario 18.2
Use the following to answer the questions.
The State Farm Group includes several companies. Probably the most well-known
company in the group is the State Farm Insurance Company, the largest auto and home
insurer in the United States. State Farm Insurance provides protection for
approximately 78 million policies on auto, fire, life, and health services. It is also a
leading insurer of homes and autos in Canada. Another company in the State Farm
group is the State Farm Bank, which was opened in 2000, beginning State Farm’s entry
into the financial services field. However, the State Farm Bank is not a traditional bank
in that it has no branch offices and its services are provided through State Farm agents,
a call center, the mail, and on the Internet. It currently serves over 1.9 million bank
accounts. When deciding on its advertising allocation for the coming year, State Farm
Insurance could choose to spend the same amount as Safe Auto, another auto insurance
company, or it could allocate an amount that is 10% of last year’s premiums. If State
Farm uses the same amount as Safe Auto, this method of advertising appropriation is
known as the approach; if State Farm uses the amount based on last year’s premiums,
the method would be .
a. competition-matching; percent-of-sales
b. arbitrary; competition-matching
c. competition-matching; objective-and-task
d. arbitrary; objective-and-task
e. objective-and-task; percent-of-sales
The unification of Europe through the European Union (EU):
a. produced the largest single market in the world.
b. calls for greater customization of products and attention to regulations and
restrictions of European countries.
c. means that members of the EU have become more heterogeneous in their needs and
wants.
d. required the countries to be segmented into many different markets.
e. was established to promote trade among its members.
Scenario2.1
Use the following to answer the questions. Southwest Airlines has a history of being
able to retain its employees due to the atmosphere and culture of the company.
Employees have been known to dress up in costume on an airplane, engage in “games”
with the passengers, and generally provide a fun atmosphere for traveling. While other
airlines have low rates of customer satisfaction, Southwest tends to maintain a high
rating with its customers. Recent gas price hikes have caused most airlines to charge for
checked luggage and to fill every flight to its maximum, adding to the negative
experience of airline travel. Southwest keeps its costs low through several methods, one
being that they do not serve meals on flights, or provide pre-boarding passes. The
typical flight is two hours or less and occurs between several selected cities rather than
flying to practically anywhere in the country. Southwest is known for its low fares, its
dependability, and its on-time flights.
Southwest’s low fares, dependability, and its on-time flights represent its:
a. competitive advantage.
b. marketing opportunity.
c. marketing plan.
d. marketing objectives.
e. total quality management.
Variables such as geographic location, type of organization, customer size, and type of
product usage are used to segment markets.
a. consumer
b. business
c. government
d. international
e. most target
Sony Corporation has a particular approach for determining its advertising
appropriation. A problem with this technique, however, is that the people in the
marketing department have difficulty estimating the level of effort needed to achieve
certain goals. This problem is characteristic of the approach.
a. reliable-appropriation
b. match-competition
c. arbitrary
d. objective-and-task
e. percent-of-sales
If FedEx-Kinko’s decided to outsource all of its marketing efforts to the MaxPro
Company, which specializes in advertising, sales promotion activities, and public
relations, FedEx-Kinko’s would likely be striving to practice:
a. one-stop shopping.
b. visual merchandising.
c. arrow information paradox.
d. product lifecycle management.
e. integrated marketing communications.
Without marketing channel operations that reach the right customers at the right time,
even the best goods and services will not be successful.
a. True
b. False
If Morton Salt saw all table salt customers as pretty much alike and thus offered only
one marketing mix, it would be using the strategy.
a. directed
b. undifferentiated
c. segmented
d. differentiated
e. product-use
Galaxo Hotels, an international chain of full service hotels, aims to have at least 90
percent of its customers express that they had memorable and satisfying experiences at
the hotels. This is an example of .
a. implementing the marketing mix
b. maintaining corporate identity
c. a marketing objective
d. a marketing strategy
e. a mission statement
The overall characteristics of a product that allow it to perform as expected in satisfying
customer needs is called:
a. quality.
b. longevity. c. variability.
d. functionality. e. design.
The basic issues or selling points that an advertiser wants to include in an advertising
campaign form the:
a. advertising objectives.
b. target audience objectives. c. media plan.
d. advertising message. e. advertising platform.
Individuals’ ability to buy depends on the amount of their buying power.
a. True
b. False
Jobs such as specialists, copywriters, artists, media buyers, and technical production
coordinators are included in the public relations department of a large organization.
a. True
b. False
Advo Systems is an organization that mails product brochures and coupons to potential
consumers who can then purchase these products by mail or by phone. Which of the
following methods of selling retail products is illustrated by Advo Systems?
a. Direct-response marketing
b. Party plan
c. Telemarketing
d. Specialty retailing
e. Direct selling
Which of the following products would probably require extended decision making
before a purchase?
a. Products purchased frequently
b. Low-involvement products
c. Products that are purchased routinely
d. Expensive products
e. Products purchased as a result of social influences
Advertising objectives should be stated in clear, precise, and measurable terms.
a. True
b. False
Which of the following best characterizes a marketing information system (MIS)?
a. An MIS is an orderly gathering of information that is not supplied through routine
reporting systems such as sales reports and accounting data.
b. An MIS provides a continuous flow of information about such things as distribution
costs, prices, sales, and advertising expenses.
c. An MIS is conducted on a special-project basis when needed.
d. An MIS requires adjustments to its techniques to adapt to environmental
circumstances and is in reality part of the accounting system.
e. An MIS involves internal information collection about employees and customers.