Question 1

Managers often use the promotion-to-sales ratio on their marketing dashboard to assess how effective the integrated marketing communications program expenditures are at generating _________.

Accepted Answer

The promotion-to-sales ratio measures the effectiveness of the integrated marketing communications program expenditures in generating sales, making option A the correct choice. The other options are not directly related to this ratio.

Question 2

Promotion objectives should possess three important qualities.They should be designed for a well-defined target audience,be measurable,and

Accepted Answer

Promotion objectives should also have a specific time frame in which they are expected to be achieved. This allows for evaluation and adjustment of the objectives as needed.

Question 3

the hierarchy of effects,the consumer's actual first purchase and use of the product or brand is referred to as the _________ stage.

Accepted Answer

The hierarchy of effects model suggests that consumers pass through sequential stages, namely awareness, interest, evaluation, trial, and finally, adoption. The trial stage involves the consumer's actual purchase and use of the product or brand. Therefore, the best choice is E, trial.

Question 4

Ann's young son suffers from allergies and complains about his watery eyes and drowsiness.Ann felt bad because she thought there was nothing she could do to help him.When Ann saw the ad for a new drug that counters these symptoms in Martha Stewart Living magazine,she vowed to ask his doctor about this product on her son's next visit.Ann is at which stage in the hierarchy of effects?

Accepted Answer

Ann became aware of the drug through the ad and is now interested in it, as she plans to ask the doctor about it.

Question 5

the hierarchy of effects,adoption refers to

Accepted Answer

The answer of the hierarchy of effects,adoption refers to
...

Question 6

the hierarchy of effects,trial refers to

Accepted Answer

The hierarchy of effects is a model that outlines the stages a consumer goes through before making a purchase. The trial stage is the third stage, after awareness and knowledge. This is where the consumer actually tries the product or brand for the first time. Therefore, the correct answer is C) the consumer's first actual purchase and use of the product or brand.

Question 7

promotion-to-sales ratio can be used by managers to make year-to-year comparisons of their programs,to compare the effectiveness of their program with competitors' programs,or to make comparisons with

Accepted Answer

The promotion-to-sales ratio can be used by managers to compare the effectiveness of their program with competitors' programs or to make comparisons with industry averages. Therefore, the best choice that aligns with this statement is option D, industry averages.

Question 8

CoolMax is a fabric made by DuPont.It is used in the manufacture of exercise clothes because it keeps the user "cool and dry." The ads for the fabric in health and fitness magazines convinced Kumar to buy a pair of Thorlo CoolMax walking crew socks made of the material.Since he had never before owned anything made with CoolMax,Kumar was in which stage of the hierarchy of effects?

Accepted Answer

Kumar is trying out a pair of socks made with CoolMax for the first time, which means he is in the trial stage of the hierarchy of effects. He has not yet formed a strong opinion or preference for the product, but is simply testing it out.

Question 9

matter what the specific objective might be,from building awareness to increasing repeat purchases,promotion objectives should possess three important qualities.They should be designed for a well-defined target audience,cover a specified time period,and be

Accepted Answer

Promotion objectives should be measurable to evaluate if they have been achieved or not. The other options like being unique, humorous, repeatable, and creative are also desirable but not as important as being measurable.

Question 10

Imagine you have overheard the owner of a medium-sized manufacturing company saying,"We had a good year,and I think next year will be even better.I'm going to raise this year's promotion budget 4.5 percent based on last year's gross sales.That will let me do more advertising than the 3.5 percent I budgeted last year." From this information,the manufacturer is using __________ budgeting.

Accepted Answer

The manufacturer is using percentage of sales budgeting, as they are raising the promotion budget based on last year's gross sales. This is a common approach in which a percentage of sales is allocated for the promotion budget, allowing for a more flexible and adaptable approach to budgeting.

Question 11

major fallacy of __________ budgeting is that by tying a promotion budget to sales,a company may reduce the amount it spends on promotion when it actually needs to spend more.

Accepted Answer

The fallacy described in the question is known as the "percentage of sales" fallacy, which is a major criticism of the percentage of sales method of budgeting. By tying a promotion budget to sales, a company may reduce the amount it spends on promotion when it actually needs to spend more, which can result in lower sales in the long run. This is why the percentage of sales method is often criticized for not taking into account the specific needs and objectives of a company.

Question 12

budgeting method that allocates funds to a promotion as a percentage of past or anticipated sales,in terms of either dollars or units sold,is referred to as __________ budgeting.

Accepted Answer

The budgeting method described in the question is the percentage of sales budgeting method. This method allocates a percentage of past or anticipated sales to a promotion, making it a good choice for businesses that want to ensure they are spending an appropriate amount on promotion without risking overspending. The other budgeting methods listed, such as competitive parity, all-you-can-afford, and objective and task, are all valid methods but do not fit the description given in the question. Linear forecast is not a widely recognized budgeting method.

Question 13

which sales budgeting approach is the amount of money spent based on past or anticipated sales?

Accepted Answer

The percentage of sales approach involves allocating a set percentage of past or anticipated sales towards the sales budget. This approach ensures that spending is directly linked to sales and helps maintain financial stability by avoiding overspending.

Question 14

the hierarchy of effects,the consumer's repeated purchase and use of the product or brand is referred to as the _________ stage.

Accepted Answer

The adoption stage is when the consumer has decided to repeatedly purchase and use the product/brand. The other options refer to earlier stages in the hierarchy of effects: awareness - when the consumer becomes aware of the product/brand, interest - when they show curiosity and interest, evaluation - when they evaluate the product/brand, and trial - when they try out the product/brand for the first time.

Question 15

Which of the following companies had the largest promotional expenditures (advertising + all other promotions)according to Figure 17-7 in the textbook?

Accepted Answer

According to Figure 17-7 in the textbook, the bar graph shows that Procter & Gamble (P&G) had the highest promotional expenditures of $10.5 billion in 2018, followed by General Motors with $4.3 billion, AT&T with $3.8 billion, Johnson & Johnson with $3.7 billion, and Walmart with $2.9 billion.

Question 16

the hierarchy of effects,evaluation refers to

Accepted Answer

Evaluation refers to the consumer's appraisal of the product or brand on important attributes, which is the second stage in the hierarchy of effects model. The first stage is awareness, followed by knowledge, liking, preference, and finally purchase.

Question 17

of the following are methods described in the textbook that firms use to set their promotion budgets EXCEPT:

Accepted Answer

The number (#) of unit of sales is not a method described in the textbook for setting promotion budgets. The correct methods are objective and task, competitive parity, percentage (percent) of sales, and all-you-can-afford.

Question 18

Promotion objectives should possess three important qualities.They should be designed for a well-defined target audience,cover a specified time period,and be

Accepted Answer

Promotion objectives should be measurable to gauge their success or failure. While the other qualities are important, they are not essential for every promotion objective. For example, a promotion can be appealing but not unique in character, or creative but not repeatable. However, the ability to measure the effectiveness of the objective is crucial for evaluating the promotional campaign.

Question 19

Percentage of sales budgeting refers to

Accepted Answer

Percentage of sales budgeting refers to allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. This method helps ensure that a company doesn't overspend on promotions, as the budget is directly tied to the expected revenue generated from the promotion. It also helps to create consistency in budgeting from year to year, providing a reliable and predictable framework for allocating funds.

Question 20

the hierarchy of effects,the consumer's appraisal of the product or brand on important attributes is referred to as the _________ stage.

Accepted Answer

The hierarchy of effects model suggests that consumers go through a series of stages - awareness, interest, evaluation, trial, and adoption - in the process of making a purchase decision. During the evaluation stage, consumers appraise the product or brand on important attributes, such as quality, price, and features, to determine its perceived value and usefulness. Therefore, the best answer is A) evaluation.

Quiz 17: Integrated Marketing Communications and Direct Marketing