Integrated Advertising Promotion And Marketing Communications 1st Canadian Edition By Clow – Test Bank
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Sample
Questions
1) As brand communications manager, Marc oversees a team of
marketing professionals to develop and execute campaigns to both maintain and
build the BMW brand.
1. True
2. False
Answer: a
Diff: 3
Type: TF
Page Reference: 90
Skill: Application
Objective: 4-1
2) According to BMW, mobile marketing is part of the future of
marketing communications.
1. True
2. False
Answer: a
Diff: 3
Type: TF
Page Reference: 92
Skill: Application
Objective: 2-1
3) A promotions opportunity analysis is the process of
identifying target audiences for a company’s products and the communication
strategies needed to reach these audiences.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 93
Skill: Concept
Objective: 4-1
4) One of the objectives of a promotions opportunity analysis is
to identify the characteristics of each target audience so that precise
marketing communications messages can be designed.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 93
Skill: Concept
Objective: 4-1
5) The first step of a promotions opportunity analysis is the
creation of a communications budget.
1. True
2. False
Answer: b
Diff: 2
Type: TF
Page Reference: 93
Skill: Concept
Objective: 4-1
6) A communications market analysis is the process of
discovering the company’s strengths and weaknesses in the area of marketing
communications, along with an analysis of the opportunities and threats in the
firm’s external environment.
1. True
2. False
Answer: a
Diff: 1
Type: TF
Page Reference: 93
Skill: Concept
Objective: 4-1
7) When conducting a communication market analysis, an
examination of competitors is used to identify major suppliers for the firm.
1. True
2. False
Answer: b
Diff: 1
Type: TF
Page Reference: 94
Skill: Concept
Objective: 4-1
8) A communication market analysis examines five areas:
competitors, opportunities, threats, target markets, and customers.
1. True
2. False
Answer: b
Diff: 3
Type: TF
Page Reference: 94
Skill: Application
Objective: 4-1
9) Primary research involves searching the library for
literature about the competition.
1. True
2. False
Answer: b
Diff: 2
Type: TF
Page Reference: 94
Skill: Concept
Objective: 4-1
10) Reading a magazine article about a competitor is a form of
secondary research.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 94
Skill: Concept
Objective: 4-1
11) Visiting a competitor’s store to see how salespeople deal
with customers is a form of secondary research.
1. True
2. False
Answer: b
Diff: 2
Type: TF
Page Reference: 94
Skill: Concept
Objective: 4-1
12) When examining competitors for a communication market
analysis, it is essential to identify domestic competitors, but not foreign or
international competitors.
1. True
2. False
Answer: b
Diff: 1
Type: TF
Page Reference: 94
Skill: Concept
Objective: 4-1
13) Considering whether or not the competition is ignoring a set
of customers is part of the search for opportunities in the communication
market analysis.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 94
Skill: Concept
Objective: 4-1
14) In a communication market analysis, opportunities include an
unfilled market niche or when the competition is doing a poor job of meeting
the needs of some customers.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 94
Skill: Concept
Objective: 4-1
15) In a communication market analysis, opportunities exist when
the company has a distinct competence to offer customers or when a market niche
is not being targeted with effective marketing communications.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 94
Skill: Concept
Objective: 4-1
16) When searching for opportunities in a communication market
analysis, a company’s marketing team should examine all available data and
information about the market.
1. True
2. False
Answer: a
Diff: 3
Type: TF
Page Reference: 94
Skill: Application
Objective: 4-1
17) In examining target markets during a communication market
analysis, the goal is to divide the total market into smaller market segments.
1. True
2. False
Answer: a
Diff: 1
Type: TF
Page Reference: 96
Skill: Concept
Objective: 4-1
18) In conducting a communication market analysis, marketers use
market segmentation to distinguish between specific purchasing groups.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 96
Skill: Concept
Objective: 4-1
19) In conducting a communication market analysis, a market
segment is a set of businesses or group of individual consumers with distinct
characteristics.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 96
Skill: Concept
Objective: 4-1
20) Market researchers spend very few resources and little
amounts of time working to identify quality market segments.
1. True
2. False
Answer: b
Diff: 1
Type: TF
Page Reference: 97
Skill: Concept
Objective: 4-1
21) Market segments are grouped into three broad categories.
1. True
2. False
Answer: b
Diff: 2
Type: TF
Page Reference: 97
Skill: Concept
Objective: 4-1
22) Communication objectives are derived from marketing
objectives.
1. True
2. False
Answer: a
Diff: 1
Type: TF
Page Reference: 105
Skill: Concept
Objective: 4-6
23) There are four criteria that should be used when defining
objectives for marketing communications.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 105
Skill: Concept
Objective: 4-6
24) One objective for marketing communications should include a
specific target audience.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 105
Skill: Concept
Objective: 4-6
25) Managers have unrealistic expectations about a
communications budget when they assume there is a direct relationship between
expenditures on advertising and subsequent sales revenues.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 107
Skill: Concept
Objective: 4-7
26) Carryover effects are the single largest factor impacting
communications budgets.
1. True
2. False
Answer: b
Diff: 2
Type: TF
Page Reference: 107
Skill: Concept
Objective: 4-7
27) In terms of the impact of communications expenditures on
sales, using coupons, free samples, and other marketing tactics can help a good
or service reach the threshold point of the sales curve sooner.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 108
Skill: Concept
Objective: 4-7
28) A threshold effect occurs when repeated exposures to a
message cause consumers to lose interest in the company.
1. True
2. False
Answer: b
Diff: 2
Type: TF
Page Reference: 108
Skill: Concept
Objective: 4-7
29) When a company introduces a new product under a strongly
established brand name, the length of time to reach the threshold point where
advertising is effective is normally shorter.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 108
Skill: Concept
Objective: 4-7
30) A sales-response function curve shows when diminishing
returns on advertising expenditures are present.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 108
Skill: Concept
Objective: 4-7
31) A marginal analysis is used to portray how returns on
additional advertising expenditures are related to incremental increases in
sales.
1. True
2. False
Answer: a
Diff: 3
Type: TF
Page Reference: 108
Skill: Application
Objective: 4-7
32) A carryover effect means that an ad has been shown often
enough that the consumer will remember the company when it is time to buy the
product.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 108
Skill: Concept
Objective: 4-7
33) Decay effects occur when a company’s advertisements have
become old or boring.
1. True
2. False
Answer: b
Diff: 2
Type: TF
Page Reference: 109
Skill: Concept
Objective: 4-7
34) In terms of developing a communications budget, the
percentage of sales method is similar to the objective and task approach.
1. True
2. False
Answer: b
Diff: 1
Type: TF
Page Reference: 109
Skill: Concept
Objective: 4-7
35) The primary reason many companies use the percentage of
sales method to prepare a communications budget is its simplicity.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 109
Skill: Concept
Objective: 4-7
36) The percentage of sales method for communications budgeting
tends to allocate funds for advertising in the opposite direction from what are
needed.
1. True
2. False
Answer: a
Diff: 3
Type: TF
Page Reference: 109
Skill: Application
Objective: 4-7
37) The meet-the-competition method of budgeting is the most
efficient form of developing a marketing communications budget.
1. True
2. False
Answer: b
Diff: 2
Type: TF
Page Reference: 110
Skill: Concept
Objective: 4-7
38) The meet-the-competition method of developing a marketing
communications budget is often used in highly competitive markets where
rivalries between competitors are intense.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 110
Skill: Concept
Objective: 4-7
39) The primary goal of the meet-the-competition method of
developing a marketing communications budget is to prevent the loss of market
share.
1. True
2. False
Answer: a
Diff: 3
Type: TF
Page Reference: 110
Skill: Application
Objective: 4-7
40) The “what we can afford” method of budgeting for marketing
communications is the most difficult form of communications budget that a
company can prepare.
1. True
2. False
Answer: b
Diff: 1
Type: TF
Page Reference: 110
Skill: Concept
Objective: 4-7
41) The “what we can afford” method of developing a marketing
communications budget suggests that managers do not see the benefits of
marketing communications.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 110
Skill: Concept
Objective: 4-7
42) The objective and task method of budgeting for marketing
communications links dollars to specific marketing or communication goals.
1. True
2. False
Answer: a
Diff: 1
Type: TF
Page Reference: 110
Skill: Concept
Objective: 4-7
43) Many marketers believe that the objective and task method of
developing marketing communications budgets is the best method of budgeting.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 110
Skill: Concept
Objective: 4-7
44) Payout planning is a form of consumer market segmentation.
1. True
2. False
Answer: b
Diff: 1
Type: TF
Page Reference: 110
Skill: Concept
Objective: 4-7
45) The payout planning method of developing a marketing communications
budget establishes a ratio of advertising to sales or market share, then
reduces the ratio as the product reaches the threshold level and diminishing
returns begin occurring.
1. True
2. False
Answer: a
Diff: 3
Type: TF
Page Reference: 110
Skill: Application
Objective: 4-7
46) In using the payout planning method of developing a
marketing communications budget, a higher percentage is allocated to marketing
communications in the product’s early years, when the product is building brand
awareness and brand equity.
1. True
2. False
Answer: a
Diff: 3
Type: TF
Page Reference: 110
Skill: Application
Objective: 4-7
47) Quantitative methods of developing a marketing
communications budget rely on computer models or simulations.
1. True
2. False
Answer: a
Diff: 1
Type: TF
Page Reference: 110
Skill: Concept
Objective: 4-7
48) The United States leads the world in annual advertising
expenditures.
1. True
2. False
Answer: a
Diff: 1
Type: TF
Page Reference: 111
Skill: Concept
Objective: 4-7
49) Consumer product manufacturers spend more money on media
advertising, while service companies tend to spend more money on trade
promotions.
1. True
2. False
Answer: b
Diff: 3
Type: TF
Page Reference: 111
Skill: Application
Objective: 4-7
50) Budgets vary by product types.
1. True
2. False
Answer: a
Diff: 2
Type: TF
Page Reference: 111
Skill: Concept
Objective: 4-7
51) When a promotions opportunity analysis is complete,
marketers will still have to do more research in order to have a firm
understanding of where the promising opportunities for marketing communications
lie.
1. True
2. False
Answer: b
Diff: 1
Type: TF
Page Reference: 111
Skill: Concept
Objective: 4-7
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