Chapter 07 Establishing Objectives and Budgeting for the Promotional Program Answer Key

from Advertising and promotion an integrated marketing communications perspective 10th edition belch test

True / False Questions

1. An objective is said to be measurable if it specifies a method and criteria for determining how well a program is working.

One characteristic of good objectives is that they are measurable; they specify a method and criteria for determining how well the promotional program is working. By setting specific and meaningful objectives, the promotional planner provides a measure(s) that can be used to evaluate the effectiveness of the marketing communications program.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-01 To recognize the importance and value of setting specific objectives for advertising and promotion.

Topic: The Value of Objectives

2. Planners who view promotion from a communications perspective believe that the objective of advertising is to increase market share through sales.

Many planners approach promotion from a communications perspective and believe that the objective of advertising and other promotional-mix elements is usually to communicate information or a selling message about a product or service. Other managers argue that sales or some related measure, such as market share, is the only meaningful goal for advertising and promotion and should be the basis for setting objectives.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-02 To understand the role objectives play in the IMC planning process and the relationship of promotional objectives to marketing objectives.

Topic: Determining Integrated Marketing Communications Objectives

3. Managers generally believe that promotional spending represents an investment of a firm's resources that requires an economic justification.

Promotional spending represents an investment of a firm's resources that requires an economic justification. Managers generally compare investment options on a common financial basis, such as return on investment (ROI).

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-03 To know the differences between sales and communications objectives and the issues regarding the use of each.

Topic: Sales Versus Communications Objectives

4. An advantage of sales-oriented objectives is that they provide sufficient guidance to those responsible for planning and developing the promotional program.

One problem with sales objectives is that they offer little guidance to those responsible for planning and developing the promotional program. The creative and media people working on the account need some direction as to the nature of the advertising message the company hopes to communicate, the intended audience, and the particular effect or response sought.

AACSB: Analytic Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

5. The initial stages, at the base of the communications effects pyramid, are harder to accomplish than those toward the top, such as trial and repurchase.

The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid (or down the funnel).

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

6. Critics of communications-oriented objectives argue that it is too difficult to translate a sales goal into a specific communications objective.

Not all marketing and advertising managers accept communications objectives; they say that it is too difficult to translate a sales goal into a specific communications objective.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

7-26

7. Under the Defining Advertising Goals for Measured Advertising Results (DAGMAR) approach, an advertising goal involves a communications task that is specific and measurable.

TRUE

Under the DAGMAR approach, an advertising goal involves a communications task that is specific and measurable. A communications task, as opposed to a marketing task, can be performed by, and attributed to, advertising rather than to a combination of several marketing factors.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: DAGMAR: An Approach to Setting Objectives

8. Repositioning of a product requires lesser time than creating or increasing the awareness levels for a brand. FALSE

Awareness levels for a brand can be created or increased fairly quickly through an intensive media schedule of widespread, repetitive advertising to the target audience. Repositioning of a product requires a change in consumers' perceptions and takes much more time.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: DAGMAR: An Approach to Setting Objectives

9. An inside-out planning process for integrated marketing communications (IMC) starts with the customer and builds backward to the brand. FALSE

Inside-out planning process begins with the marketer. It focuses on what the marketer wants to say, when the marketer wants to say it, and about things the marketer believes are important. An outside-in planning process for IMC starts with the customer and builds backward to the brand.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Problems in Setting Objectives

7-27

10. While the social consumer decision journey may differ from traditional response hierarchies, it is also similar in that it envisions going through stages in the purchase decision.

TRUE

While the social consumer decision journey may differ from traditional response hierarchies, it is also similar in that it envisions going through stages in the purchase decision. Like traditional model, marketers need to take specific marketing actions to help the consumer along through the process.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Problems in Setting Objectives

11. In the integrated marketing communications (IMC) model, the flow between the communications analysis and budget determination is a two-way interaction.

TRUE

In the IMC planning model, flow of the processes is unidirectional, while the flow between the communications analysis and budget determination is a two-way interaction. What this means is that while establishing objectives is an important part of the planning process, the limitations of the budget are important too.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-05 To understand the process of budgeting for IMC.

Topic: Establishing and Allocating the Promotional Budget

12. When times get tough, managers who treat the communications budget as an investment instead of an expense tend to cut down the advertising and promotional budget first. FALSE

Most managers treat the communications budget as an expense rather than an investment. As a result, when times get tough, the advertising and promotional budget is the first to be cut even though there is strong evidence that exactly the opposite should occur.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy Learning Objective: 07-05 To understand the process of budgeting for IMC.

Topic: Establishing and Allocating the Promotional Budget

7-28

13. There is strong, consistent evidence that cutting back on advertising does not hurt sales during and after a recession.

FALSE

There is strong, consistent evidence that cutting back on advertising can hurt sales during and after a recession.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy Learning Objective: 07-06 To understand theoretical issues involved in budget setting.

Topic: Establishing and Allocating the Promotional Budget

14. Marginal analysis assumes that sales are a direct result of advertising and promotional expenditures and that this effect can be measured.

TRUE

While marginal analysis seems logical intuitively, certain weaknesses limit its usefulness. These weaknesses include the assumptions that (1) sales are a direct result of advertising and promotional expenditures and this effect can be measured and (2) advertising and promotion are solely responsible for sales.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy Learning Objective: 07-06 To understand theoretical issues involved in budget setting.

Topic: Establishing and Allocating the Promotional Budget

15. According to the concave-downward function model, as the amount of advertising decreases, its incremental value increases.

FALSE

The effects of advertising budgets follow the microeconomic law of diminishing returns. As the amount of advertising increases, its incremental value decreases. The logic is that those with the greatest potential to buy will likely act on the first (or earliest) exposures, while those less likely to buy are not likely to change as a result of the advertising.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy Learning Objective: 07-06 To understand theoretical issues involved in budget setting.

Topic: Establishing and Allocating the Promotional Budget

7-29

16. If sales is used as a direct measure of response to advertising, products characterized as large-dollar purchases and those in the maturity or decline stages of the product would be less likely to benefit. TRUE

A weakness in attempting to use sales as a direct measure of response to advertising is that various situational factors may have an effect. Products characterized as large-dollar purchases and those in the maturity or decline stages of the product would be less likely to benefit.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-06 To understand theoretical issues involved in budget setting.

Topic: Establishing and Allocating the Promotional Budget

17. In the top-down approach, the budgetary amount is established usually at the departmental level. FALSE

In top-down approaches, budgetary amount is established usually at an executive level and then the monies are passed down to the various departments. These budgets are essentially determined and have no true theoretical basis.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-07 To know various methods of budget setting.

Topic: Establishing and Allocating the Promotional Budget

18. In the arbitrary allocation approach, no systematic thinking occurs and no objectives are budgeted for. TRUE

The arbitrary allocation approach has no obvious advantages. No systematic thinking has occurred, no objectives have been budgeted for, and the concept and purpose of advertising and promotion have been largely ignored.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-07 To know various methods of budget setting.

Topic: Establishing and Allocating the Promotional Budget

19. The competitive parity method takes advantage of the collective wisdom of the industry.

TRUE

In the competitive parity method, managers establish budget amounts by matching the competition's percentage-of-sales expenditures. The argument is that setting budgets in this fashion takes advantage of the collective wisdom of the industry.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-07 To know various methods of budget setting.

Topic: Establishing and Allocating the Promotional Budget

20. In the objective and task method to budget setting, managers closest to the marketing effort do not have specific strategies to achieve the objective.

FALSE

The major advantage of the objective and task method is that the budget is driven by the objectives to be attained. The managers closest to the marketing effort will have specific strategies and input into the budget-setting process.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-07 To know various methods of budget setting.

Topic: Establishing and Allocating the Promotional Budget

Multiple Choice Questions

21. One important purpose of setting specific advertising goals and objectives is to:

A. provide a benchmark against which performance can be measured.

B. put constraints on the creative department.

C. have a method of determining when to delete products from the product line.

D. forecast the market share level that can be attained by good advertising.

E. protect all investors and debt holders.

An important reason for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured. Without specific objectives, it is extremely difficult to determine what the firm's advertising and promotion efforts accomplished.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

7-31

Learning Objective: 07-01 To recognize the importance and value of setting specific objectives for advertising and promotion.

Topic: The Value of Objectives

22. Arden's task is to determine what was accomplished by his company's advertising and promotional program for a vinyl-siding cleanser. We can tell him that:

A. his task is impossible.

B. all he needs is the sales results to determine what the program accomplished.

C. his task could be made easier by setting specific communication objectives.

D. he requires just the post-promotional consumer awareness levels to determine what the program accomplished.

E. all he needs to do is measure the effectiveness of the media used for promoting the product.

In the above example, we can tell Arden that his task could be made easier by setting specific communication objectives. An important reason for setting specific objectives is that they provide a benchmark against which the success or failure of the promotional campaign can be measured. By setting specific and meaningful objectives, the promotional planner provides a measure(s) that can be used to evaluate the effectiveness of the marketing communications program.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Blooms: Apply

Difficulty: 2 Medium

Learning Objective: 07-01 To recognize the importance and value of setting specific objectives for advertising and promotion.

Topic: The Value of Objectives

23. The more specific the firm's advertising objectives, the:

A. easier it becomes to measure advertising effectiveness.

B. more difficult it is for competitors' advertising to be effective.

C. easier it is to measure the advertising-sales response function.

D. lesser the funding needed to meet advertising goals.

E. more difficult it is for a competitor to use competitive parity budgeting.

By setting specific and meaningful objectives, the promotional planner provides a measure(s) that can be used to evaluate the effectiveness of the marketing communications program.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-01 To recognize the importance and value of setting specific objectives for advertising and promotion.

Topic: The Value of Objectives

7-32

24. Before setting objectives for advertising and promotion, an organization should:

A. conduct a situation analysis to identify marketing and promotional issues facing the firm.

B. develop its media plan and allocate the budget to each media.

C. evaluate the effectiveness of the advertising and promotional strategies.

D. conduct test marketing to check the effectiveness of the marketing strategies developed for the current products and services.

E. set its advertising and promotional budgets.

Integrated marketing communications objectives should be based on a thorough situation analysis that identifies the marketing and promotional issues facing the company or a brand. The situation analysis is the foundation on which marketing objectives are determined and the marketing plan is developed.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-02 To understand the role objectives play in the IMC planning process and the relationship of promotional objectives to marketing objectives.

Topic: Determining Integrated Marketing Communications Objectives

25. Which of the following is true of marketing objectives?

A. The only aim of a firm's marketing objectives revolves around buying the right media at the right price.

B. They are usually defined in terms of specific outcomes such as sales volume, market share, profits, or return on investment.

C. They are stated only in a company's communication plan.

D. They are statements of what various aspects of the IMC program will accomplish and how a message will be delivered to the target audience.

E. The only aim of a firm's marketing objective is to communicate information or a selling message about a product or service to the target audience.

Marketing objectives are generally stated in the firm's marketing plan and are statements of what is to be accomplished by the overall marketing program within a given time period. Marketing objectives are usually defined in terms of specific, measurable outcomes such as sales volume, market share, profits, or return on investment.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-02 To understand the role objectives play in the IMC planning process and the relationship of promotional objectives to marketing objectives.

Topic: Determining Integrated Marketing Communications Objectives

7-33

26. Which of the following statements best describes the relationship between marketing and communications objectives?

A. Marketing objectives and communications objectives are synonymous.

B. Marketing objectives evolve from communications objectives.

C. Communications objectives are derived from marketing objectives.

D. Communications objectives can be developed before the development of marketing objectives.

E. Both communications and marketing objectives are defined only in terms of the reach of a promotional strategy.

Managers must be able to translate general marketing goals into communications goals and specific promotional objectives. Sometimes companies do not have a formal marketing plan, and the information needed may not be readily available. In this case, the promotional planner must attempt to gather as much information as possible about the product and its markets from sources both inside and outside the company.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-02 To understand the role objectives play in the IMC planning process and the relationship of promotional objectives to marketing objectives.

Topic: Determining Integrated Marketing Communications Objectives

27. To be effective, marketing objectives need to be:

A. realistic and attainable.

B. erudite and challenging.

C. philosophical and fungible.

D. unquantifiable.

E. elaborate.

Good marketing objectives are quantifiable; they delineate the target market and note the time frame for accomplishing the goal (often one year). To be effective, objectives must also be realistic and attainable.

AACSB: Analytic Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-02 To understand the role objectives play in the IMC planning process and the relationship of promotional objectives to marketing objectives.

Topic: Determining Integrated Marketing Communications Objectives

7-34

28. Many marketing managers prefer sales-oriented objectives for advertising because they believe that:

A. the reason a company spends money on advertising and promotion is to sell its products or service.

B. the objective of advertising and other promotional mix elements is usually to communicate information or a selling message about a product or service.

C. the primary role of an IMC program is to communicate.

D. objectives should be based on the achievement of communication objectives.

E. they must provide relevant information and create favorable predispositions toward the brand before purchase behavior will occur.

To many managers, the only meaningful objective for their promotional program is sales. They take the position that the basic reason a firm spends money on advertising and promotion is to sell its product or service.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-03 To know the differences between sales and communications objectives and the issues regarding the use of each.

Topic: Sales Versus Communications Objectives

29. The concept of advertising expenditures producing long-term, rather than immediate, results is known as:

A. the carryover effect.

B. the communication effect.

C. the low-involvement effect.

D. the halo effect.

E. the mirror-image effect.

Many experts recognize that advertising has a lagged or carryover effect; monies spent on advertising do not necessarily have an immediate impact on sales. Advertising may create awareness, interest, and/or favorable attitudes toward a brand, but these feelings will not result in an actual purchase until the consumer enters the market for the product, which may occur later.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

7-35

30. The carryover effect:

A. has no impact on sales objectives.

B. has no effect on the relationship between advertising and sales.

C. encourages the use of nonspecific objectives.

D. is particularly apparent with mature, low-priced, and frequently purchased products.

E. helps in determining the precise relationship between advertising and sales.

A review of econometric studies that examined the duration of cumulative advertising effects found that for mature, frequently purchased, low-priced products, advertising's effect on sales lasts up to nine months. Models have been developed to account for the carryover effect of advertising and to help determine the long-term effect of advertising on sales. The carryover effect adds to the difficulty of determining the precise relationship between advertising and sales.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

31. Which of the following problems is a manager most likely to face if he uses sales as a measure of advertising effectiveness?

A. Sales results offer little guidance or direction to those responsible for planning and developing the advertising program.

B. There is a short, often immeasurable, time period between when advertising is run and when sales actually occur.

C. Sales results are affected by no marketing-mix variable other than price and promotion.

D. No internal-environmental variables have any significant influence on sales results.

E. Sales are generally not considered a good indicator for an IMC program.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

7-36

32. For which of the following would an advertiser be most likely to use a sales-oriented objective?

A. A direct-response ad for a record album

B. A commercial for a new type of electric-powered automobile

C. A political announcement

D. An anti-drug public announcement

E. A commercial comparing two telecommunication giants

In the above scenario, an advertiser would most likely use a sales-oriented objective for a record album's direct-response ad. Direct-response advertising is one type of advertising that evaluates its effectiveness on the basis of sales. Certain types of promotion efforts are direct action in nature; they attempt to induce an immediate behavioral response from the prospective customer. A major objective of most sales promotion programs is to generate short-term increases in sales.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Blooms: Apply

Difficulty: 3 Hard

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

33. Direct-response advertisers generally set objectives and measure success in terms of:

A. brand awareness.

B. brand attitudes.

C. purchase intentions of the target audience.

D. sales response generated by an ad.

E. brand equity.

Direct-response advertising is one type of advertising that evaluates its effectiveness on the basis of sales. The direct-response advertiser generally sets objectives and measures success in terms of the sales response generated by the ad.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

7-37

34. Sales-oriented objectives are appropriate for:

A. all online-marketing strategies.

B. retail advertising promoting special events.

C. products that have been introduced in highly volatile markets.

D. any advertising campaign aimed at maintaining brand awareness.

E. bait-and-switch marketing campaigns.

Retail advertising, which accounts for a significant percentage of all advertising expenditures, is one area where the advertiser often seeks an immediate response, particularly when sales or special events are being promoted.

AACSB: Analytic Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

35. Which of the following is at the base of the communication effects pyramid?

A. Awareness

B. Preference

C. Trial

D. Purchase

E. Repurchase

Awareness is at the base of the communications pyramid. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid.

AACSB: Analytic Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

7-38

36. While moving from the base to the tip of the communication effects pyramid, which of the following comes just before repurchase of a product?

A. Awareness

B. Comprehension

C. Trial

D. Liking

E. Knowledge

While moving from the base to the tip of the communication effects pyramid, trial comes just before repurchase of a product. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid.

AACSB: Analytic

Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

37. While moving from the base to the tip of the communication effects pyramid, which of the following comes just before trial of a product?

A. Knowledge

B. Preference

C. Repurchase

D. Awareness

E. Comprehension

While moving from the base to the tip of the communication effects pyramid, preference comes just before trial of a product. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid.

AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: 1 Easy Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

7-39

38. Managers who use the communications effects pyramid to set objectives believe that:

A. lower-level objectives such as purchase and reuse form the foundation of the communications program.

B. the foundation of the communications program is set by accomplishing lower-level objectives such as awareness, knowledge, and comprehension.

C. advertising and promotion should first accomplish lower-level objectives such as trial and purchase.

D. advertising and promotion should first accomplish higher-order objectives, such as trial and purchase, and then create awareness and brand knowledge.

E. advertising and promotion cannot accomplish lower-order objectives.

Advertising and promotion perform communications tasks in the same way that a pyramid is built, by first accomplishing lower-level objectives such as awareness and knowledge or comprehension.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

39. Which of the following is at the top of the communication effects pyramid?

A. Awareness

B. Knowledge

C. Liking

D. Preference

E. Repurchase

Repurchase is at the top of the communication effects pyramid. The initial stages, at the base of the pyramid, are easier to accomplish than those toward the top, such as trial and repurchase or regular use. Thus, the percentage of prospective customers will decline as they move up the pyramid.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

7-40

40. Encouraging current buyers of Spirit, an energy drink, to drink more of the beverage would be an example of a _____ objective.

A. sales-oriented

B. repositioning

C. product development

D. public-relations

E. diversification

The above scenario is an example of a sales-oriented objective. Sales oriented objectives include: 1) Increasing the percentage of consumers in the target market who associate specific features, benefits, or advantages with our brand, 2) Encouraging current users of the product to use it more frequently or in more situations etc.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Blooms: Apply

Difficulty: 3 Hard

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

41. Which of the following statements is true of communications objectives?

A. It is difficult to translate sales goals into communications objectives.

B. It is always easy to determine the relationship between communications objectives and sales performance.

C. Communications objectives cannot serve as operational guidelines to the planning, execution, and evaluation of promotional programs.

D. All marketing and advertising managers accept communications objectives.

E. Precise formulas are to be followed when translating sales goals into specific communications objectives.

Not all marketing and advertising managers accept communications objectives; some say it is too difficult to translate a sales goal into a specific communications objective. But at some point a sales goal must be transformed into a communications objective.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

7-41

42. Which of the following is at the base of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making?

A. Awareness

B. Purchase

C. Familiarity

D. Consideration

E. Imagery

Purchase is at the base of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

43. Which of the following is at the top of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making?

A. Awareness

B. Imagery

C. Consideration

D. Shopping

E. Model intention

Awareness is at the top of the GfK International purchase funnel that is used as a diagnostic model of consumer decision making.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: Sales Versus Communications Objectives

7-42

44. With respect to the stages in Russell Colley's hierarchical model of the communication process, the _____ stage deals with developing an understanding of what the product is and what it will do for the consumer.

A. conviction

B. comprehension

C. awareness

D. action

E. screening

Colley proposed that the communications task be based on a hierarchical model of the communication process with four stages. With respect to the stages in Russell Colley's hierarchical model of the communication process, the comprehension stage deals with developing an understanding of what the product is and what it will do for the consumer.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: DAGMAR: An Approach to Setting Objectives

45. The _____ stage in Russell Colley's hierarchical model of the communication process deals with informing consumers of the existence of the brand or company.

A. conviction

B. screening

C. comprehension

D. action

E. awareness

Colley proposed that the communications task be based on a hierarchical model of the communication process with four stages. The awareness stage deals with making the consumer aware of the existence of the brand or company.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: DAGMAR: An Approach to Setting Objectives

7-43

46. The _____ stage in Russell Colley's hierarchical model of the communication process deals with getting the consumer to purchase the product.

A. action

B. conviction

C. screening

D. comprehension

E. awareness

Colley proposed that the communications task be based on a hierarchical model of the communication process with four stages. With respect to the stages in Russell Colley's hierarchical model of the communication process, the action stage deals with getting the consumer to purchase the product.

AACSB: Analytic

Accessibility: Keyboard Navigation Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: DAGMAR: An Approach to Setting Objectives

47. Which of the following statements is true of communications objectives?

A. When setting objectives using the communications effect pyramid, the last step to reach is trial.

B. Sales goals cannot be translated into communications objectives.

C. Marketing and advertising managers don't usually rely on experience and intuition when setting communications goals.

D. Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals.

E. Communication objectives are used particularly when the advertiser seeks an immediate response.

Communications objectives are the criteria used in the DAGMAR approach to setting advertising goals and objectives, which has become one of the most influential approaches to the advertising planning process.

AACSB: Analytic

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 07-04 To recognize some problems marketers encounter in setting objectives for their IMC programs.

Topic: DAGMAR: An Approach to Setting Objectives

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True / False Questions

Multiple Choice Questions

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Advertising and promotion an integrated marketing communications perspective 10th edition belch test