marketing

17Student: ___________________________________________________________________________

1. As the number of communication media has increased, the task of understanding how best to reach targetcustomers has become easier. True False

2. Encoding means converting the sender's ideas into a message, which could be verbal, visual or both.

True False 3. Though a picture may be worth a thousand words, the most important facet of encoding is not what is

received but what is sent. True False

4. If there is a difference between the message that is sent and the message that is received, it is probably

due to noise. True False

5. The sender of an integrated marketing communication controls the meaning individual receivers take

from the message. True False

6. Though advertising experts wish it were true, there is not always a direct link between a particular

marketing communication and a consumer's purchase. True False

7. Even the best marketing communication can be wasted if the sender does not gain the attention of the

consumer. True False

8. If the marketing communication has piqued the interest of its target market, the goal of subsequent IMC

messages should be to move the consumer from "I want it" to "I like it." True False

9. "Top-of-mind awareness" is when consumers indicate that they know the brand when the name is

presented to them. True False

10. Betty is assessing the effect of her firm's marketing communications. She should remember that the

ultimate goal is to drive the receiver to action. True False

11. Public relations is the component of IMC that has received the greatest increase in aggregate

spending. True False

12. Mobile marketing involves marketing to customers through wireless handheld devices such as mobile

phones. True False

13. Because the goals of IMC are only part of the overall promotional plan, they do not need to be explicit or

measurable. True False

14. It may take several exposures to marketing communications before consumers are moved to buy.

True False

15. Personal selling can only be successful through the use of print, newspapers, and radio. True False

16. When a company's communications budget is based on a percentage of forecasted sales, this is known as

competitive parity. True False

17. Gross Rating Points (GRP) measure how often the audience is exposed to a communication within a

specified period of time. True False

18. Frequency describes the percentage of the target population exposed to a specific marketing

communication, such as advertisement, at least once. True False

19. The basic goal of integrated marketing communications is to:

A. communicate the value proposition to the target market.B. create desire.C. manipulate consumers.D. outspend competitors.E. tell the world about your company.

20. Especially for marketers with new products or services, IMC is needed because:

A. consumers need to know all about the features of new products before they make a purchase decision.B. consumers are unlikely to buy products they are not aware of.C. it is impossible for products to sell themselves through word of mouth communication.D. pricing decisions cannot be made without IMC.E. new products and services need to be integrated into the supply chain value proposition.

21. Integrated marketing communications represents the _________________ P in the four Ps of a firm's

marketing mix. A. PricingB. ProductC. PromotionD. PlaceE. Partnering

22. Integrated marketing communications include all of the following EXCEPT:

A. personal selling.B. advertising.C. public relations.D. supply chain management.E. direct marketing.

23. Garrett works for a small chain of convenience stores. He is trying to coordinate his firm's IMC efforts.

Garrett's IMC goal is to: A. overwhelm the competition.B. overwhelm the consumer.C. integrate supply chain efficiency into the marketing mix communication lagged effect model.D. maximize noise and avoid using rule-of-thumb encoding.E. provide clarity, consistency, and maximum communicative impact.

24. Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMC budget.He receives offers from a variety of advertising media, spends money on his firm's public relationsefforts, and is considering electronic media alternatives. Carl recognizes each IMC alternative: A. can be evaluated using Web-tracking software.B. is part of the whole.C. is part of noncommercial free speech.D. is less important than stealth marketing.E. is dictated by the nature of the supply chain.

25. The three elements of any IMC strategy are the consumer, the channels, and

A. direct marketing feedback.B. the Web track-software.C. the results.D. online noise.E. event sponsorship.

26. Gerald knows which IMC communication channels are available and knows how he will measure the

results of his IMC efforts. To implement his IMC efforts, Gerald also needs to: A. integrate his pricing strategy with his event sponsorships.B. effectively decode his communications.C. maximize stealth marketing efforts.D. focus his efforts on his target market(s).E. all of these.

27. As the number of communication media has increased, the task of understanding how best to reach target

customers has: A. shifted from creating a value proposition to revising a value proposition.B. increased the use of rule-of-thumb targeting.C. become easier.D. focused on reducing the lagged effect of marketing communications.E. become more complex.

28. With the emergence of Websites, text messaging, and blogging as new IMC alternatives, the question of

how to best reach target audiences has: A. become more complex.B. increased the use of rule-of-thumb targeting.C. focused on reducing the lagged effect of marketing communications.D. become easier.E. shifted from creating a value proposition to revising a value proposition.

29. The IMC communication process includes all of the following EXCEPT:

A. the instructor.B. the sender.C. the transmitter.D. the communication channel.E. the receiver.

30. The IMC communication process begins with ________, who must be clearly identified.

A. the integratorB. the senderC. the transmitterD. the communication channelE. the receiver

31. In the IMC communication process, the _____________________ encodes the marketing communicationmessage. A. instructorB. senderC. transmitterD. communication channelE. receiver

32. ___________ means converting the sender's ideas into a message, which could be verbal, visual or

both. A. DecodingB. Stealth marketingC. PrecodingD. EncodingE. Tracking

33. In integrated marketing communications, encoding means:

A. converting consumers' ideas into value propositions.B. differentiating noncommercial speech from commercial speech.C. converting the decoder into the receiver.D. interpreting click-through rates.E. converting the sender's ideas into a message, which could be verbal, visual or both.

34. Often a(n) _____________________ accomplishes the task of encoding IMC messages.

A. advertising agencyB. consumer interest groupC. media channelD. noise reduction specialistE. viral public relations expert

35. Though a picture may be worth a thousand words, the most important facet of encoding is:

A. who draws the picture.B. the self-visualization process.C. not what is received rather what is sent.D. the sponsor rather than the receiver.E. not what is sent rather what is received.

36. In the IMC communication process, the _____________________ is the medium that carries the

message. A. instructorB. senderC. transmitterD. communication channelE. receiver

37. Which of the following is NOT a communication channel used in the IMC process?

A. RadioB. TelevisionC. NewspaperD. InternetE. Supply chain

38. The right communication channel to use in IMC is:

A. the traditional channel used in that particular retail sector.B. network advertising, local newspapers, and regional radio stations.C. the one that will connect to the desired recipients.D. the one with the best encoding capabilities.E. the one that maximizes decoding difficulty.

39. In the IMC communication process, the _____________________ is the person who reads, hears, or seesand processes the message being communicated. A. instructorB. senderC. transmitterD. communication channelE. receiver

40. The sender of an IMC message hopes the receiver is:

A. the people for whom the message was originally intended.B. the people with the most buying power.C. consumers who are capable of discerning value.D. consumers who have purchased the firm's products in the past.E. the market segment with the most gross rating points.

41. _______________ refers to the process by which the receiver interprets the sender's message.

A. DecodingB. Stealth marketingC. PrecodingD. EncodingE. Tracking

42. If you have ever watched a television commercial and at the end of the message wondered what were

they promoting, you may have had trouble _____________ the IMC message. A. decodingB. pre-testingC. precodingD. encodingE. tracking

43. Marketers spend hundreds of millions of dollars annually creating and promoting symbols, colors, and

images that make it easier for consumers to recognize the company, its brands or its products. Theseefforts facilitate ________________ in the IMC process. A. precodingB. pre-testingC. decodingD. encodingE. tracking

44. __________________ is any interference in the IMC process.

A. TranslationB. LoopingC. Excessive reachD. NoiseE. Feedback

45. In the IMC process, noise can occur as a result of lack of message clarity, a poor choice of medium,

and: A. competing messages.B. an extended feedback loop.C. indirect encoding.D. inhibited decoding.E. excessive reach.

46. International marketing consultants often recommend that IMC messages which have been translated intoanother language be re-translated by someone else, and the results compared. By doing so, they hope toavoid noise problems associated with: A. competing messages.B. lack of clarity in the message.C. a poor choice of medium.D. an extended feedback loop.E. a flaw in the medium.

47. Advertising agencies often provide the IMC function of comparing their customer's target audience with

the viewer, listener, or reader profile of the communication channel being considered. The agency istrying to avoid noise problems associated with: A. competing messages.B. lack of clarity in the message.C. a poor choice of medium.D. an extended feedback loop.E. a flaw in the medium.

48. National manufacturers and retailers often pay a service provider to monitor television ads around the

country, in order to ensure that their ads are seen in their entirety during the time frames that werepurchased. This service provider is monitoring for IMC noise problems associated with: A. competing messages.B. lack of clarity in the message.C. a poor choice of medium.D. a flaw in the medium.E. an extended feedback loop.

49. The ___________________ allows the receiver to communicate with the sender in the IMC process.

A. decoding loopB. pre-testing loopC. precoding loopD. encoding loopE. feedback loop

50. Most manufacturers and retailers worry constantly about whether or not their IMC efforts are paying off.

They assess various forms of _________________ to determine what is working and what is not. A. decodingB. pre-testingC. precodingD. encodingE. feedback

51. Sales data, complaints, compliments, and redemption rates for coupons and rebates are types of

________________ marketers use to assess the effectiveness of their IMC efforts. A. decodingB. pre-testingC. feedbackD. simulationsE. encoding

52. Personal care product manufacturers know that samples are one of the few effective promotional

efforts that can be used to get consumers to switch brands. These marketers will likely use____________________ to monitor the effectiveness of giving away samples. A. changes in sales dataB. complaintsC. complimentsD. supply chain noiseE. click-through rates

53. Loretta would like to know which, if any, of her firm's IMC efforts are working. She could use_______________ to provide feedback from her efforts. A. sales dataB. complaintsC. complimentsD. redemption rates for coupons or rebatesE. all of these.

54. Marketers often use focus groups to learn how consumers interpret their IMC messages. Experience has

shown that: A. effective branding requires marketers to encode messages differently for each market segment.B. each receiver decodes IMC messages in his or her own way.C. action is taken before desire and interest are determined.D. marketers can almost always use the same message for all audiences.E. transmitters need to use the objective-and-task decoding system.

55. Marketers adjust their messages and media based on the type of audience (suppliers, shareholders,

customers or the general public) because: A. different media communicate in different ways.B. there are things you wouldn't want one group or another to know but you do want to let others know.C. these groups have very different attention spans.D. some read and some don't.E. that's the way it has always been done in marketing.

56. The sender of an integrated marketing communication:

A. must work with the advertising specialists to ensure all recipients interpret the message accurately.B. can assess the manner in which receivers interpret the message through gross rating points.C. has little control over what meaning any individual receiver will take from the message.D. controls the meaning all receivers take from the message.E. generally uses a rule-of-thumb interpretation index.

57. Though advertising experts wish it were true, there is not always a direct link between a particular

marketing communication and: A. supply chain effectiveness.B. enhanced decoding processes.C. a consumer's purchase.D. the level of noise in the IMC channel.E. the reach/frequency ratio.

58. Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboard

saying "South of the Border Restaurant and Motel is just 100 miles away." Julia has never heard of Southof the Border before. After seeing the sign, she will most likely: A. reject the idea immediately.B. increase the speed she is driving so she can get there sooner.C. call and cancel reservations she made at another hotel.D. keep track of the miles so she'll know how soon she will be there.E. go through several steps before deciding whether to stop at South of the Border.

59. Which of the following is NOT one of the steps in the AIDA model?

A. AwarenessB. IntentionC. ActionD. DesireE. Interest

60. In the AIDA model: A. advertising leads to interest, which hopefully leads to desire and then, action.B. awareness leads to integration, which hopefully leads to desire and then, action.C. awareness leads to interest, which hopefully leads to desire and then, action.D. awareness leads to interest, which hopefully leads to desire and then, attention.E. awareness leads to interest, which hopefully leads to determination and then, action.

61. In the AIDA model, marketing communications move consumers stepwise:

A. through an integrated lagged effect simulation process.B. from attention to awareness.C. decoding to encoding.D. through a series of mental stages.E. all of these.

62. In the AIDA model, the "think" stage is the ________________ stage.

A. AwarenessB. ActionC. InterestD. DesireE. Intention

63. _______________ refers to a potential customer's ability to recall that the brand name is a particular type

of retailer, product or service. A. Product familiarityB. Brand associationC. Brand awarenessD. Marketing recallE. Cognitive association

64. Even the best marketing communication can be wasted if the sender does not first:

A. generate consumer action.B. offer testimonials from past consumers.C. determine the level of desire needed to sustain action.D. gain the attention of the consumer.E. stimulate interest among stealth marketing consumers.

65. Cheryl asked Nadia to help her buy some aftershave for her boyfriend. Nadia was going through a list

of different brand names, when Cheryl stopped her and said, "I recognize that one." Marketers call this______________. A. selective recallB. free associationC. aided recallD. recall mappingE. top-of-mind awareness

66. In the AIDA model, the "do" stage is the ________________ stage.

A. AwarenessB. ActionC. InterestD. DesireE. Intentions

67. An advertising agency in Los Angeles once held a contest among its employees to see who could createthe most visibility for the company. The winning team included two staff members who put on a wet t-shirt display on an interstate overpass with television helicopter crews capturing and showing footage onthe local news. In the AIDA model, the advertising agency was attempting to create: A. Awareness.B. Action.C. Interest.D. Desire.E. Intention.

68. The highest level of awareness occurs when customers mention a specific brand name when asked about

a product or service. Marketers call this _________________. A. the primacy effectB. aided recallC. top-of-mind awarenessD. category dominanceE. elevated awareness

69. After creating awareness that the firm's products or services exist, the next goal of integrated marketing

communications is to: A. generate consumer action.B. increase the level of interest among consumers.C. determine the level of desire needed to sustain action.D. gain the attention of the consumer.E. create intentions to purchase the product.

70. In the movie Field of Dreams, one of the memorable phrases is "Build it, and they will come." The

AIDA model would suggest that after marketers "build" a product or service and create awareness amongconsumers, they need to: A. determine the level of desire needed to sustain action.B. promote sufficiently to gain global attention.C. create interest among consumers, persuading them to investigate further.D. offer discounts to increase purchase intentions.E. take steps to encourage immediate purchase.

71. Several years ago, changes in advertising restrictions allowed pharmaceutical companies to begin

promoting their products through traditional media. Today, it is hard not to see ads on television endingwith "Ask your doctor about (our medicine)." In addition to creating awareness about their drugs, thecompanies are hoping to: A. reduce deceptive advertising.B. signal encoding symbols to simplify the feedback loop.C. offer objective-and-task marketing communications.D. stimulate interest, persuading consumers to investigate further.E. promote public interest social responsibility communications.

72. To stimulate interest and persuade consumers to further investigate a firm's product or service, marketing

communications include: A. facts designed to shift consumers from feeling to thinking.B. awareness-building messages.C. as much in-depth information as possible.D. subliminal encoding devices.E. information about attributes that are of particular interest to the target audience.

73. Many retailers advertise using traditional media, suggesting that consumers learn more about themarketer's products at their Websites. In the AIDA model, the traditional media are used to create___________, while the Websites are used to create ___________. A. awareness; interestB. interest; desireC. desire; actionD. action; awarenessE. desire; interest

74. If the marketing communication has captured the interest of its target market, the goal of subsequent IMC

messages should be to move the consumer from: A. "I want it" to "I like it."B. action to desire.C. "I like it" to "I want it."D. awareness to action.E. feeling to thinking.

75. Betty is assessing the effectiveness of her firm's marketing communications. She knows the ultimate goal

is to: A. maximize rating points.B. minimize marketing communication expenditures.C. shift encoding into decoding.D. use personal selling to augment public relations.E. drive the receiver to action.

76. If marketing communications are effective, they will:

A. result in purchases by some consumers receiving the communications.B. offset any negative publicity the firm may have received.C. minimize the number of communication channels used by the firm.D. generate interest in the product in over half the consumers who receive the communications.E. include all steps of the AIDA model with equal weighting to each step.

77. One of the difficulties in measuring the effectiveness of IMC efforts is the ______________, where

consumers do not act immediately after receiving a marketing communication. A. decoding decomposition effectB. lagged effectC. noncommittal affectD. viral effectE. click-through delay

78. Reaching the right audience with marketing communication is becoming more difficult because:

A. consumers are bored.B. government regulations are constraining free speech.C. personal selling is becoming less expensive, making it more competitive with advertising.D. the media environment has become more complicated.E. the AIDA model is no longer an accurate representation of how marketing communication works.

79. The goal of any marketing communication is to:

A. maximize sales.B. increase public relations click-through rates.C. overwhelm negative publicity with commercial speech.D. replace cause-related marketing with non-cause-related marketing.E. get the right message to the right audience through the right media.

80. The proliferation of new media alternatives has led many firms to shift their promotional budgetsfrom: A. publicity to public relations.B. personal selling to advertising.C. integrated marketing communications to disintegrated marketing communications.D. stealth marketing to viral marketing.E. advertising to direct marketing and Website development.

81. Many marketers are shifting marketing communication resources away from advertising and toward:

A. direct marketing.B. website development.C. product placement.D. Internet advertising.E. all of these.

82. One of the benefits of media fragmentation is it has allowed IMC planners to:

A. target their desired audience more precisely.B. reduce their promotional expenditures.C. simplify IMC decoding.D. reduce the lagged effect.E. expand the use of rule-of-thumb budgeting.

83. With today's media fragmentation, an IMC planner wishing to promote a line of gourmet food products

would most likely use: A. CBS network news hour.B. Public Broadcasting's Global Travel series.C. Nickelodeon.D. Outdoor Life Network.E. The Cooking Channel.

84. Compared to other IMC alternatives, advertising is extremely effective for:

A. closing a sale.B. efficient message decoding.C. reducing the potential for noise.D. creating awareness and generating interest in a product.E. repositioning consumers in the AIDA model.

85. One difficulty associated with using advertising as part of a marketer's IMC efforts is:

A. breaking through the clutter of other messages targeted for the same audience.B. that it is more expensive than personal selling.C. that it only works when communicating to the most uninformed consumers.D. that government regulations have significantly decreased allowable advertising frequencies.E. all of these.

86. Integrated marketing communications include all of the following except:

A. advertising.B. supply chain management.C. direct marketing.D. public relations.E. sales promotion.

87. Personal selling involves ___________________ communication between a buyer and a seller.

A. face-to-faceB. video teleconferencingC. telephoneD. InternetE. any of these

88. The difference between advertising and personal selling is personal selling involves: A. a larger audience than advertising.B. indirect communication while advertising involves direct communication.C. only informational communication while advertising involves persuasive communication.D. a two-way flow of communication between a buyer and a seller.E. encoding while advertising involves only decoding.

89. Personal selling is an especially important part of IMC in:

A. business-to-business markets.B. cause-related marketing.C. event sponsorships.D. stealth marketing.E. Web tracking.

90. Ryan is debating how to allocate the IMC budget for his new ski equipment store. He knows having

knowledgeable salespeople in his store can simplify buyers' purchase decisions. He should also considerthat, compared to other IMC alternatives, personal selling is: A. easy.B. expensive.C. ineffective.D. overrated.E. simple.

91. Sales promotions include all of the following EXCEPT:

A. coupons.B. rebates.C. online ads.D. point-of-purchase displays.E. free samples.

92. Karen manages cosmetic counters in a regional department store chain. She wants to increase sales

during the summer, hoping to generate repeat business during the holiday season. Because Karen isselling personal care products in a department store, she will most likely use __________________ as herprimary methods of sales promotion. A. contests and sweepstakesB. advertising and personal sellingC. public relations and publicityD. free samples and point-of-purchase displaysE. direct marketing

93. Compared to mass media advertising, a key advantage of direct marketing is:

A. it allows for personalization of the message.B. it reaches a larger audience.C. it involves face-to-face contact.D. it uses the rule-of-thumb budgeting method.E. all of these.

94. In recent years, the component of IMC that has received the greatest increase in spending is:

A. media advertising.B. direct marketing.C. public relations.D. sales promotions.E. publicity.

95. Brenda wants to reduce mass media IMC and to increase the use of personalized marketingcommunication messages. To achieve this goal, Brenda will likely increase her use of: A. telemarketing.B. direct mail.C. e-mail.D. social media.E. all of these.

96. The increased use of customer databases has enabled marketers to identify and track consumers over time

and across purchase situations, and has contributed to the rapid growth in: A. media advertising.B. publicity.C. public relations.D. sales promotions.E. direct marketing.

97. A major factor contributing to the growth in the use of direct marketing IMC efforts is:

A. reduced government regulation of deceptive advertising practices.B. expanded use of personal selling.C. a shift from objective-and-task to rule-of-thumb budgeting.D. increased use of credit and debit cards, and online shopping by consumers.E. the reduction in IMC noise allowing for a decreased lagged effect.

98. When purchasing books on Amazon.com, customers are shown other books and a message

saying "Customers who purchased (your book) also purchased.........." This is an example of: A. mass media advertising.B. publicity.C. public relations.D. sales promotions.E. direct marketing.

99. Elliott was asked to take a look at the company's website. He noted that customers can order products on

the site, but he felt it would also be important to: A. build the brand image of the firm's products.B. encourage customers to post product reviews.C. improve the overall image of the company.D. educate customers on how to use the products to their full advantage.E. All of these.

100.Public relations is the component of IMC that:

A. supports other promotional efforts by generating "free" media attention.B. has received the greatest increase in spending.C. converts mass media advertising into direct marketing.D. most effectively uses IMC encoding.E. generates the most gross rating points.

101.Marketers use public relations to:

A. build a positive image in the marketplace.B. maintain media relations.C. address unfavorable stories or events.D. generate "free" media attention.E. all of these.

102.Marketers use corporate blogs to:

A. create positive word of mouth.B. build customer loyalty.C. gather feedback.D. respond directly to customers.E. all of these.

103.A _________________ can be used to create positive word of mouth, help customers form a community,and develop long-term relationships between customers and the company. A. corporate blogB. faxed newsletterC. Super Bowl adD. full-page ad in selected newspapersE. public relations campaign

104.Firms can use _____________ to bring customers together to share experiences around the products.

A. surveysB. social mediaC. consumer outletsD. brand associationsE. public relations

105.The goals of IMC need to:

A. expand as the advertising budget expands.B. be explicit and measurable.C. be encoded before they can be decoded.D. include both the noise effect and the transmitter effect.E. all of these.

106.Naomi is IMC manager for a chain of regional income tax service providers. Franchisees pay a

percentage of their revenue to an IMC account allocated to her. As she establishes the short-term goalsfor her firm's IMC efforts, her goals are likely to include: A. expanding customer loyalty by closing the feedback loop.B. increasing market share, sales, and customer loyalty.C. increasing inquires, awareness, and trial of her firm's services.D. shifting customers to rule-of-thumb budgeting.E. increasing the lagged effect.

107.Lamar is assessing the long-term effectiveness of his firm's IMC efforts. He will probably analyze the

firm's success in: A. expanding customer loyalty by closing the feedback loop.B. increasing market share, sales, and customer loyalty.C. increasing inquires, awareness, and trial of her firm's services.D. shifting customers to rule-of-thumb budgeting.E. increasing the lagged effect.

108.Julie is developing a budget for her firm's IMC program. First she sets objectives. Then she chooses

media, and finally she determines the cost for each product to be promoted. Julie is using the___________________ method of establishing an IMC budget. A. reach and frequencyB. track and decodeC. objective-and-taskD. rule-of-thumbE. sender-receiver

109.Competitive parity, percentage-of-sales, and available budget are types of ________________________

IMC budgeting. A. reach and frequencyB. track and decodeC. objective-and-taskD. rule-of-thumbE. sender-receiver

110.Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMCmessage and what percentage of the target audience was exposed to the message. Yolanda is asking for_____________________ data. A. parity and affordabilityB. sales and promotionC. attitude changeD. rule-of-thumbE. frequency and reach

111.When Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMC

message and what percentage of the target audience was exposed to the message, she was told the reachwas 40, the frequency was 4 and the competitive parity was 10. The gross rating points for her firm'scampaign were: A. 160B. 1600C. 400D. 40E. The answer cannot be determined from this information.

112.Ramon is starting his own plumbing supply store featuring designer and restoration hardware. As in

any start-up, he will have to watch expenditures carefully. He knows he will have to pursue a number ofdifferent communications approaches, but he is not sure how to measure the effectiveness of the effort.What advice would you give him? A. The lagged effect means it will be difficult to measure precisely the effect of any single initiative.B.

Marketing communication is cumulative; it will take a number of impressions for the message toconnect with the customer.

C. Each step in the process can be measured.D. If he decides to cut out some expenditures, it will take a while for that effect to show up.E. All of these are important for Ramon to consider.

113.To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To do so,

they need to know the number of clicks and: A. the number of destinations.B. the number of impressions.C. the cost per click.D. how much time consumers spend viewing the ad or page.E. the total number of clicks recorded by the industry.

114.Jim was asked to determine the ROI for a particular advertising effort. To do so, he needs to know:

A. the internal rate of return and the projected expenditure level.B. the total number of units sold and the total cost of sales.C. sales revenue and advertising cost.D. gross margin and advertising cost.E. the advertising cost and the total communications expenditures.

115.If a company sets the communication budget so that the firm's share of communication expenses equals

its share of the market, what IMC budgeting method is it using? A. Competitive parityB. Percentage of salesC. Available budgetD. Objective and taskE. None of these

116.Budgeting for marketing expenses by using money available after operating costs and profits have beenbudgeted is known as the ________ method. A. available budgetB. competitive parityC. percentage of salesD. objective and taskE. none of these.

117.An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results

for this ad, six would be the _____ for this telecast. A. frequencyB. reachC. gross rating pointsD. ROIE. click-through rate

118.Sally could recall the brand of toothpaste she used only when a marketing researcher mentioned the

brand. This is known as: A. aided recall.B. unaided recall.C. top-of-mind awareness.D. brand preference.E. brand indifference.

119.If you send an email and include a link, you can track how many people took the desired action of

clicking on the link. This is known as: A. the click through rate.B. impressions.C. frequency.D. gross rating points.E. reach.

120.Which of the following is being used by a store owner who sends out a text message to all of her

preferred customers announcing the arrival of this season's new clothing? A. Mobile marketingB. Public relationsC. Personal sellingD. Sales promotionsE. None of these

121.The Salvation Army runs a campaign over the Christmas holidays called the Mobile Bell Ringer.

Volunteers send text messages to their friends' cell phones asking them to donate. Which type ofmarketing communication does this represent? A. Mobile marketingB. Public relationsC. Personal sellingD. Sales promotionsE. Advertising

122.Which of the following is not a rule-of-thumb method for IMC budgeting?

A. Competitive parityB. Percentage of salesC. Available budgetD. Objective and taskE. All of these are rule-of-thumb methods.

123.Red Bull sends out student brand managers to distribute free samples to their peers. What form ofmarketing communication is this? A. Sales promotionB. Direct marketingC. Public relationsD. Mobile marketingE. Advertising

124.The opening vignette describes KFC's activities associated with introduction of its "fiery" chicken wings.

What could have gone wrong, had the firm not used IMC?

125.What is noise in the communication process? What are the three typical sources of noise? Provide an

example of noise you have experienced or observed.

126.There is an old advertising adage, "I know I'm wasting half of my advertising budget. I just don't know

which half." What is the lagged effect? How does it contribute to the dilemma of attempting to determinewhich advertising has an impact and which doesn't?

127.Provide an example of a firm delivering the right message to the right audience through the right

media.

128.Kim and David's Kayak Tours offers a variety of coastal kayaking trips. When they started their business,they experimented with advertising but were disappointed with the results. A friend has suggested usingsales promotions instead. What are their sales promotion options? Which would have the best potentialfor success, and why?

129.How have changes in the way consumers purchase goods and services contributed to the growth in the

use of direct marketing IMC efforts?

130.How can direct marketing create a win-win situation for customers and the firm?

131.One of the newest IMC efforts is the use of corporate blogs. Why do businesses use them?

132.Most small retail businesses use rule-of-thumb IMC budgeting methods. What methods are they likely to

use and what are the limitations associated with each method?

133.Monica is launching a personal shopping and messenger service. She has a pretty good idea of what herexpenses will be, and she has some conservative but solid revenue projections. She has no idea, though,how to budget communications expenses. She is asking a number of her friends for their ideas. Whatapproaches would you recommend?

134.Why should a marketer try to measure the success of a communications effort?

135.What parts of an organization are involved in integrating marketing communications?

136.How can noise disrupt the IMC process?

137.What are the four mental stages in the AIDA model?

138.What is the other name for the AIDA model?

139.Darrell saw a review of the new Love CD produced in collaboration with Cirque du Soleil, and hasdecided he has to have it. At what stage in the AIDA model is Darrell?

140.How is advertising different from publicity?

141.What types of sales promotions would a marketer consider if the goal is to build short-term sales?

142.What is the major advantage of direct marketing over advertising?

143.A media rep from the local radio station comes into your retail store and suggests running a series of

advertisements. She says, "Let's do it and see what happens." What problems can you anticipate with thisas the suggested goal?

144.Julie is developing a budget for her firm's IMC program. First, she decides what she wants to accomplish.

Then she chooses media, and finally she determines the cost for each product to be promoted. What typeof IMC budgeting process is Julie using?

145.Tom asks you how to measure gross rating points and how to compare results from various media. Howwould you respond?

146.List the steps in the AIDA model and explain why each step is important to marketers.

147.If sales revenue for Becky Balloon's was $35 a day and the advertising cost was $10, what would be the

return on investment?

148.If you were advertising your company's watches in Vogue magazine and you had 5 ads in the magazine,

how would you calculate your gross rating points (GRP)?

149.Explain how a company can use search engine marketing.

17 Key 1.(p. 513-514)

As the number of communication media has increased, the task of understanding how best to reachtarget customers has become easier. FALSE

The proliferation of communication media--driven largely by technology--has made it much moredifficult to choose the best way to reach a target market.

AACSB: Analytic

Blooms: UnderstandGrewal - Chapter 17 #1

Learning Objective: 17-03 Describe the various integrative communication channels.Level: Medium

Topic: Elements of an Integrated Marketing Communication Strategy 2.(p. 509)

Encoding means converting the sender's ideas into a message, which could be verbal, visual orboth. TRUE

This is the definition of encoding.

AACSB: Analytic

Blooms: RememberGrewal - Chapter 17 #2

Learning Objective: 17-01 Identify the components of the communication process.Level: Easy

Topic: Communicating with Consumers 3.(p. 509)

Though a picture may be worth a thousand words, the most important facet of encoding is not what isreceived but what is sent. FALSE

The most important facet of encoding is not what is sent, but what is received.

AACSB: Analytic


Learning Objective: 17-01 Identify the components of the communication process.Level: Medium


If there is a difference between the message that is sent and the message that is received, it is probablydue to noise. TRUE

Noise refers to any interference that stems from competing messages, a lack of clarity in the message,or a flaw in the medium.

AACSB: Analytic



Topic: Communicating with Consumers

5.(p. 510)

The sender of an integrated marketing communication controls the meaning individual receivers takefrom the message. FALSE

The receiver decodes the message, interpreting it and assigning meaning to it.

AACSB: Analytic




Though advertising experts wish it were true, there is not always a direct link between a particularmarketing communication and a consumer's purchase. TRUE

The lack of a direct link makes it difficult to measure the impact of marketing communications.

AACSB: Analytic


Learning Objective: 17-02 Explain the four steps in the AIDA model.Level: Easy


Even the best marketing communication can be wasted if the sender does not gain the attention of theconsumer. TRUE

The first step in moving a consumer towards taking action is to raise awareness and gain attention.

AACSB: Analytic




If the marketing communication has piqued the interest of its target market, the goal of subsequentIMC messages should be to move the consumer from "I want it" to "I like it." FALSE

It's the other way around--the goal is to move the consumer from "I like it" to "I want it."

AACSB: Analytic


Learning Objective: 17-02 Explain the four steps in the AIDA model.Level: Medium


"Top-of-mind awareness" is when consumers indicate that they know the brand when the name ispresented to them. FALSE

"Top-of-mind awareness" means that the consumer mentions the brand name first when asked about aproduct.

AACSB: Analytic




10.(p. 512)

Betty is assessing the effect of her firm's marketing communications. She should remember that theultimate goal is to drive the receiver to action. TRUE

Although many measures of marketing communications look at things like number of exposures, theeventual goal is to move a consumer to take action.

AACSB: Analytic



Topic: Communicating with Consumers 11.(p. 514,516)

Public relations is the component of IMC that has received the greatest increase in aggregatespending. FALSE

Direct marketing has received the greatest increase in aggregate spending recently.

AACSB: Analytic




Mobile marketing involves marketing to customers through wireless handheld devices such as mobilephones. TRUE

This is the definition of mobile marketing.

AACSB: Analytic




Because the goals of IMC are only part of the overall promotional plan, they do not need to be explicitor measurable. FALSE

All IMC goals should be explicitly defined and measurable.

AACSB: Analytic


Learning Objective: 17-04 Explain the various ways used to allocate the IMC budget.Level: Medium

Topic: Planning For and Measuring IMC Success 14.(p. 525)

It may take several exposures to marketing communications before consumers are moved to buy. TRUE

A single exposure is often not enough to move someone to take action. Marketers measure thefrequency of exposure for this reason.

AACSB: Analytic


Learning Objective: 17-05 Identify marketing metrics used to measure integrated marketing communications (IMC) success.Level: Medium

Topic: Planning For and Measuring IMC Success

15.(p. 516)

Personal selling can only be successful through the use of print, newspapers, and radio. FALSE

Personal Selling is the two-way flow of communication between buyer and a seller that is designed toinfluence the buyer's purchase decision. Print, newspapers, and radio are one-way media.

AACSB: Analytic




When a company's communications budget is based on a percentage of forecasted sales, this is knownas competitive parity. FALSE

Competitive parity is used when the company wants to match competitors' spending. Percentage ofSales is used when the communication budget is a fixed percentage of forecasted sales.

AACSB: Analytic




Gross Rating Points (GRP) measure how often the audience is exposed to a communication within aspecified period of time. FALSE

GRP represents reach (percentage of the target population exposed to the message) multiplied byfrequency (how often the audience is exposed to the message).

AACSB: Analytic


Learning Objective: 17-05 Identify marketing metrics used to measure integrated marketing communications (IMC) success.Level: Hard


Frequency describes the percentage of the target population exposed to a specific marketingcommunication, such as advertisement, at least once. FALSE

This is the definition of reach. Frequency of exposure is how often the audience is exposed to acommunication within a specified period of time.

AACSB: Analytic




19.(p. 508)

The basic goal of integrated marketing communications is to: A. communicate the value proposition to the target market.B. create desire.C. manipulate consumers.D. outspend competitors.E. tell the world about your company.

Marketing communications is the "Promotion" element of the four Ps, the method by which the firmcommunications value to target customers.

AACSB: Analytic



Topic: Integrated Marketing Communications 20.(p. 508)

Especially for marketers with new products or services, IMC is needed because: A. consumers need to know all about the features of new products before they make a purchase

decision.B. consumers are unlikely to buy products they are not aware of.C. it is impossible for products to sell themselves through word of mouth communication.D. pricing decisions cannot be made without IMC.E. new products and services need to be integrated into the supply chain value proposition.

Marketing communications is the "Promotion" element of the four Ps, the method by which the firmcommunications value to target customers. This communication is necessary if customers are going todiscover and choose to buy the firm's products.

AACSB: Analytic




Integrated marketing communications represents the _________________ P in the four Ps of a firm'smarketing mix. A. PricingB. ProductC. PromotionD. PlaceE. Partnering

Marketing communications is the "Promotion" element of the four Ps, the method by which the firmcommunications value to target customers.

AACSB: Analytic



Topic: Integrated Marketing Communications

22.(p. 508)

Integrated marketing communications include all of the following EXCEPT: A. personal selling.B. advertising.C. public relations.D. supply chain management.E. direct marketing.

Supply chain management is not part of integrated marketing communications. Personal selling,advertising, public relations, and direct marketing are all ways to communicate value to the targetmarket.

AACSB: Analytic




Garrett works for a small chain of convenience stores. He is trying to coordinate his firm's IMCefforts. Garrett's IMC goal is to: A. overwhelm the competition.B. overwhelm the consumer.C. integrate supply chain efficiency into the marketing mix communication lagged effect model.D. maximize noise and avoid using rule-of-thumb encoding.E. provide clarity, consistency, and maximum communicative impact.

The key to effective value communication is to develop an integrated strategy sending a consistentmessage clearly and with maximum communicative impact for the available budget.

AACSB: Analytic




Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMCbudget. He receives offers from a variety of advertising media, spends money on his firm's publicrelations efforts, and is considering electronic media alternatives. Carl recognizes each IMCalternative: A. can be evaluated using Web-tracking software.B. is part of the whole.C. is part of noncommercial free speech.D. is less important than stealth marketing.E. is dictated by the nature of the supply chain.

An integrated marketing communication strategy will have many components that must becoordinated into an integrated whole.

AACSB: Analytic



Topic: Integrated Marketing Communications

25.(p. 508)

The three elements of any IMC strategy are the consumer, the channels, and A. direct marketing feedback.B. the Web track-software.C. the results.D. online noise.E. event sponsorship.

An IMC strategy must consider the consumer, the channels, and evaluation of the results.

AACSB: Analytic




Gerald knows which IMC communication channels are available and knows how he will measure theresults of his IMC efforts. To implement his IMC efforts, Gerald also needs to: A. integrate his pricing strategy with his event sponsorships.B. effectively decode his communications.C. maximize stealth marketing efforts.D. focus his efforts on his target market(s).E. all of these.

An IMC strategy must consider the consumer, the channels, and evaluation of the results.

AACSB: Analytic



Topic: Integrated Marketing Communications 27.(p. 513-514)

As the number of communication media has increased, the task of understanding how best to reachtarget customers has: A. shifted from creating a value proposition to revising a value proposition.B. increased the use of rule-of-thumb targeting.C. become easier.D. focused on reducing the lagged effect of marketing communications.E. become more complex.


AACSB: Analytic



Topic: Elements of an Integrated Marketing Communication Strategy

28.(p. 513-514)

With the emergence of Websites, text messaging, and blogging as new IMC alternatives, the questionof how to best reach target audiences has: A. become more complex.B. increased the use of rule-of-thumb targeting.C. focused on reducing the lagged effect of marketing communications.D. become easier.E. shifted from creating a value proposition to revising a value proposition.


AACSB: Analytic



Topic: Elements of an Integrated Marketing Communication Strategy 29.(p. 509-510)

The IMC communication process includes all of the following EXCEPT: A. the instructor.B. the sender.C. the transmitter.D. the communication channel.E. the receiver.

The IMC communication process includes the sender, the transmitter, encoding, the communicationchannel, the receiver, noise, and the feedback loop.

AACSB: Analytic




The IMC communication process begins with ________, who must be clearly identified. A. the integratorB. the senderC. the transmitterD. the communication channelE. the receiver

The IMC communication process includes the sender, the transmitter, encoding, the communicationchannel, the receiver, noise, and the feedback loop. The sender is the first step of the process.

AACSB: Analytic




31.(p. 509)

In the IMC communication process, the _____________________ encodes the marketingcommunication message. A. instructorB. senderC. transmitterD. communication channelE. receiver

The transmitter converts the sender's ideas into a message, which could be verbal, visual, or both.

AACSB: Analytic




___________ means converting the sender's ideas into a message, which could be verbal, visual orboth. A. DecodingB. Stealth marketingC. PrecodingD. EncodingE. Tracking

Encoding means converting the sender's ideas into a message, which could be verbal, visual, or both.The transmitter performs this action.

AACSB: Analytic




In integrated marketing communications, encoding means: A. converting consumers' ideas into value propositions.B. differentiating noncommercial speech from commercial speech.C. converting the decoder into the receiver.D. interpreting click-through rates.E. converting the sender's ideas into a message, which could be verbal, visual or both.

Encoding means converting the sender's ideas into a message, which could be verbal, visual, or both.The transmitter performs this action.

AACSB: Analytic




34.(p. 509)

Often a(n) _____________________ accomplishes the task of encoding IMC messages. A. advertising agencyB. consumer interest groupC. media channelD. noise reduction specialistE. viral public relations expert

Encoding means converting the sender's ideas into a message, which could be verbal, visual, or both.This is often done by an advertising agency.

AACSB: Analytic




Though a picture may be worth a thousand words, the most important facet of encoding is: A. who draws the picture.B. the self-visualization process.C. not what is received rather what is sent.D. the sponsor rather than the receiver.E. not what is sent rather what is received.

The most important facet of encoding is the message received (and decoded).

AACSB: Analytic


Learning Objective: 17-01 Identify the components of the communication process.Level: Hard


In the IMC communication process, the _____________________ is the medium that carries themessage. A. instructorB. senderC. transmitterD. communication channelE. receiver

The IMC message is carried on a communication channel.

AACSB: Analytic




37.(p. 509)

Which of the following is NOT a communication channel used in the IMC process? A. RadioB. TelevisionC. NewspaperD. InternetE. Supply chain

All of these except the supply chain are channels used in the IMC process.

AACSB: Analytic




The right communication channel to use in IMC is: A. the traditional channel used in that particular retail sector.B. network advertising, local newspapers, and regional radio stations.C. the one that will connect to the desired recipients.D. the one with the best encoding capabilities.E. the one that maximizes decoding difficulty.

There is no one right communication channel to use--it depends on the target customers who shouldreceive the message.

AACSB: Analytic




In the IMC communication process, the _____________________ is the person who reads, hears, orsees and processes the message being communicated. A. instructorB. senderC. transmitterD. communication channelE. receiver

The receiver is the eventual target of the message--the person at whom it is directed.

AACSB: Analytic




40.(p. 510)

The sender of an IMC message hopes the receiver is: A. the people for whom the message was originally intended.B. the people with the most buying power.C. consumers who are capable of discerning value.D. consumers who have purchased the firm's products in the past.E. the market segment with the most gross rating points.

The sender cannot guarantee that the intended target customers will receive the message, but willchoose the message format and channel with the customer in mind.

AACSB: Analytic




_______________ refers to the process by which the receiver interprets the sender's message. A. DecodingB. Stealth marketingC. PrecodingD. EncodingE. Tracking

The receiver decodes the encoded message, interpreting it.

AACSB: Analytic




If you have ever watched a television commercial and at the end of the message wondered what werethey promoting, you may have had trouble _____________ the IMC message. A. decodingB. pre-testingC. precodingD. encodingE. tracking

Problems decoding a message can lead the receiver to fail to interpret it properly.

AACSB: Analytic




43.(p. 510)

Marketers spend hundreds of millions of dollars annually creating and promoting symbols, colors, andimages that make it easier for consumers to recognize the company, its brands or its products. Theseefforts facilitate ________________ in the IMC process. A. precodingB. pre-testingC. decodingD. encodingE. tracking

Symbols and images related to the brand assist the receiver in decoding an IMC message.

AACSB: Analytic




__________________ is any interference in the IMC process. A. TranslationB. LoopingC. Excessive reachD. NoiseE. Feedback

Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lackof clarity in the message, or a flaw in the medium.

AACSB: Analytic




In the IMC process, noise can occur as a result of lack of message clarity, a poor choice of medium,and: A. competing messages.B. an extended feedback loop.C. indirect encoding.D. inhibited decoding.E. excessive reach.

Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lackof clarity in the message, or a flaw in the medium.

AACSB: Analytic




46.(p. 510)

International marketing consultants often recommend that IMC messages which have been translatedinto another language be re-translated by someone else, and the results compared. By doing so, theyhope to avoid noise problems associated with: A. competing messages.B. lack of clarity in the message.C. a poor choice of medium.D. an extended feedback loop.E. a flaw in the medium.

Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lackof clarity in the message, or a flaw in the medium. In the case of a translated message, a lack of claritycould result.

AACSB: Analytic

Blooms: ApplyGrewal - Chapter 17 #46



Advertising agencies often provide the IMC function of comparing their customer's target audiencewith the viewer, listener, or reader profile of the communication channel being considered. Theagency is trying to avoid noise problems associated with: A. competing messages.B. lack of clarity in the message.C. a poor choice of medium.D. an extended feedback loop.E. a flaw in the medium.

Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lackof clarity in the message, or a flaw in the medium. In this case, the choice of the wrong channel cancause most members of the target market to fail to receive the message.

AACSB: Analytic




National manufacturers and retailers often pay a service provider to monitor television ads around thecountry, in order to ensure that their ads are seen in their entirety during the time frames that werepurchased. This service provider is monitoring for IMC noise problems associated with: A. competing messages.B. lack of clarity in the message.C. a poor choice of medium.D. a flaw in the medium.E. an extended feedback loop.

Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lackof clarity in the message, or a flaw in the medium. In this case, a failure for the ad to be shown in itsentirety is a flaw in the medium.

AACSB: Analytic




49.(p. 510)

The ___________________ allows the receiver to communicate with the sender in the IMCprocess. A. decoding loopB. pre-testing loopC. precoding loopD. encoding loopE. feedback loop

A feedback loop permits the receiver to respond to the sender.

AACSB: Analytic




Most manufacturers and retailers worry constantly about whether or not their IMC efforts are payingoff. They assess various forms of _________________ to determine what is working and what isnot. A. decodingB. pre-testingC. precodingD. encodingE. feedback

Feedback can be useful in evaluating the success of IMC programs.

AACSB: Analytic




Sales data, complaints, compliments, and redemption rates for coupons and rebates are types of________________ marketers use to assess the effectiveness of their IMC efforts. A. decodingB. pre-testingC. feedbackD. simulationsE. encoding

Feedback of the types suggested can be useful in evaluating the success of IMC programs.

AACSB: Analytic




52.(p. 510)

Personal care product manufacturers know that samples are one of the few effective promotionalefforts that can be used to get consumers to switch brands. These marketers will likely use____________________ to monitor the effectiveness of giving away samples. A. changes in sales dataB. complaintsC. complimentsD. supply chain noiseE. click-through rates

The firm hopes that consumers will try the samples, like them, and purchase the product, so salestrends would be the most useful form of feedback to measure the success of the sampling plan.

AACSB: Analytic




Loretta would like to know which, if any, of her firm's IMC efforts are working. She could use_______________ to provide feedback from her efforts. A. sales dataB. complaintsC. complimentsD. redemption rates for coupons or rebatesE. all of these.

All of these could be used to obtain feedback on the success of an IMC program.

AACSB: Analytic




Marketers often use focus groups to learn how consumers interpret their IMC messages. Experiencehas shown that: A. effective branding requires marketers to encode messages differently for each market segment.B. each receiver decodes IMC messages in his or her own way.C. action is taken before desire and interest are determined.D. marketers can almost always use the same message for all audiences.E. transmitters need to use the objective-and-task decoding system.

Each receiver decodes IMC messages differently, depending on personal experiences and preferences.

AACSB: Analytic




55.(p. 510)

Marketers adjust their messages and media based on the type of audience (suppliers, shareholders,customers or the general public) because: A. different media communicate in different ways.B. there are things you wouldn't want one group or another to know but you do want to let others

know.C. these groups have very different attention spans.D. some read and some don't.E. that's the way it has always been done in marketing.

Different audiences consume different types of media; it is important to know which media your targetmarket is most likely to consume. In addition, messages must be adjusted based on the channel.

AACSB: Analytic




The sender of an integrated marketing communication: A. must work with the advertising specialists to ensure all recipients interpret the message accurately.B. can assess the manner in which receivers interpret the message through gross rating points.C. has little control over what meaning any individual receiver will take from the message.D. controls the meaning all receivers take from the message.E. generally uses a rule-of-thumb interpretation index.

The sender cannot control the way a message is decoded. This process is entirely in the hands of thereceiver.

AACSB: Analytic




Though advertising experts wish it were true, there is not always a direct link between a particularmarketing communication and: A. supply chain effectiveness.B. enhanced decoding processes.C. a consumer's purchase.D. the level of noise in the IMC channel.E. the reach/frequency ratio.

The lack of a direct link makes it difficult to measure the impact of marketing communications.

AACSB: Analytic




58.(p. 511)

Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboardsaying "South of the Border Restaurant and Motel is just 100 miles away." Julia has never heard ofSouth of the Border before. After seeing the sign, she will most likely: A. reject the idea immediately.B. increase the speed she is driving so she can get there sooner.C. call and cancel reservations she made at another hotel.D. keep track of the miles so she'll know how soon she will be there.E. go through several steps before deciding whether to stop at South of the Border.

Seeing a single billboard is unlikely to spur Julia to action. A single exposure is often not enough tomove someone to take action. This is probably on reason why South of the Border places billboardsonce every few miles along I-95.

AACSB: Analytic




Which of the following is NOT one of the steps in the AIDA model? A. AwarenessB. IntentionC. ActionD. DesireE. Interest

The steps in the AIDA model are Awareness, Interest, Desire, and Action.

AACSB: Analytic




In the AIDA model: A. advertising leads to interest, which hopefully leads to desire and then, action.B. awareness leads to integration, which hopefully leads to desire and then, action.C. awareness leads to interest, which hopefully leads to desire and then, action.D. awareness leads to interest, which hopefully leads to desire and then, attention.E. awareness leads to interest, which hopefully leads to determination and then, action.


AACSB: Analytic




61.(p. 510)

In the AIDA model, marketing communications move consumers stepwise: A. through an integrated lagged effect simulation process.B. from attention to awareness.C. decoding to encoding.D. through a series of mental stages.E. all of these.

The steps in the AIDA model are Awareness, Interest, Desire, and Action. The consumer must passthrough each of these if action is to be the result.

AACSB: Analytic




In the AIDA model, the "think" stage is the ________________ stage. A. AwarenessB. ActionC. InterestD. DesireE. Intention

The "think" stage is Awareness.

AACSB: Analytic




_______________ refers to a potential customer's ability to recall that the brand name is a particulartype of retailer, product or service. A. Product familiarityB. Brand associationC. Brand awarenessD. Marketing recallE. Cognitive association

The first step of the AIDA model seeks to achieve brand awareness among consumers--knowledgethat the brand name is in a particular category.

AACSB: Analytic




64.(p. 512)

Even the best marketing communication can be wasted if the sender does not first: A. generate consumer action.B. offer testimonials from past consumers.C. determine the level of desire needed to sustain action.D. gain the attention of the consumer.E. stimulate interest among stealth marketing consumers.

If the consumer's attention is not gained, and brand awareness does not result, the marketingcommunication cannot achieve its desired results.

AACSB: Analytic




Cheryl asked Nadia to help her buy some aftershave for her boyfriend. Nadia was going through a listof different brand names, when Cheryl stopped her and said, "I recognize that one." Marketers call this______________. A. selective recallB. free associationC. aided recallD. recall mappingE. top-of-mind awareness

Aided recall refers to consumers recognizing a brand name when they see or hear it.

AACSB: Analytic




In the AIDA model, the "do" stage is the ________________ stage. A. AwarenessB. ActionC. InterestD. DesireE. Intentions

This is the Action stage, the final stage of the AIDA model.

AACSB: Analytic




67.(p. 512)

An advertising agency in Los Angeles once held a contest among its employees to see who couldcreate the most visibility for the company. The winning team included two staff members who put ona wet t-shirt display on an interstate overpass with television helicopter crews capturing and showingfootage on the local news. In the AIDA model, the advertising agency was attempting to create: A. Awareness.B. Action.C. Interest.D. Desire.E. Intention.

The first stage of the AIDA model is Awareness. This was what the winning team was trying toachieve, by obtaining free media coverage associated with the company.

AACSB: Analytic




The highest level of awareness occurs when customers mention a specific brand name when askedabout a product or service. Marketers call this _________________. A. the primacy effectB. aided recallC. top-of-mind awarenessD. category dominanceE. elevated awareness

"Top-of-mind awareness" means that the consumer mentions the brand name first when asked about aproduct.

AACSB: Analytic



Topic: The AIDA Model 69.(p. 512)

After creating awareness that the firm's products or services exist, the next goal of integratedmarketing communications is to: A. generate consumer action.B. increase the level of interest among consumers.C. determine the level of desire needed to sustain action.D. gain the attention of the consumer.E. create intentions to purchase the product.


AACSB: Analytic




70.(p. 512)

In the movie Field of Dreams, one of the memorable phrases is "Build it, and they will come." TheAIDA model would suggest that after marketers "build" a product or service and create awarenessamong consumers, they need to: A. determine the level of desire needed to sustain action.B. promote sufficiently to gain global attention.C. create interest among consumers, persuading them to investigate further.D. offer discounts to increase purchase intentions.E. take steps to encourage immediate purchase.


AACSB: Analytic


Learning Objective: 17-02 Explain the four steps in the AIDA model.Level: Hard


Several years ago, changes in advertising restrictions allowed pharmaceutical companies to beginpromoting their products through traditional media. Today, it is hard not to see ads on televisionending with "Ask your doctor about (our medicine)." In addition to creating awareness about theirdrugs, the companies are hoping to: A. reduce deceptive advertising.B. signal encoding symbols to simplify the feedback loop.C. offer objective-and-task marketing communications.D. stimulate interest, persuading consumers to investigate further.E. promote public interest social responsibility communications.


AACSB: Analytic




To stimulate interest and persuade consumers to further investigate a firm's product or service,marketing communications include: A. facts designed to shift consumers from feeling to thinking.B. awareness-building messages.C. as much in-depth information as possible.D. subliminal encoding devices.E. information about attributes that are of particular interest to the target audience.

In order to stimulate interest, the message must include information that the target market will findrelevant.

AACSB: Analytic




73.(p. 512)

Many retailers advertise using traditional media, suggesting that consumers learn more about themarketer's products at their Websites. In the AIDA model, the traditional media are used to create___________, while the Websites are used to create ___________. A. awareness; interestB. interest; desireC. desire; actionD. action; awarenessE. desire; interest

The first stage of the AIDA model is to create awareness, here done through traditional media; thesecond stage is to create interest, through information on the website.

AACSB: Analytic




If the marketing communication has captured the interest of its target market, the goal of subsequentIMC messages should be to move the consumer from: A. "I want it" to "I like it."B. action to desire.C. "I like it" to "I want it."D. awareness to action.E. feeling to thinking.

The Interest stage of the AIDA model is represented by "I like it"; the next stage, Desire, isrepresented by "I want it."

AACSB: Analytic




Betty is assessing the effectiveness of her firm's marketing communications. She knows the ultimategoal is to: A. maximize rating points.B. minimize marketing communication expenditures.C. shift encoding into decoding.D. use personal selling to augment public relations.E. drive the receiver to action.


AACSB: Analytic




76.(p. 512)

If marketing communications are effective, they will: A. result in purchases by some consumers receiving the communications.B. offset any negative publicity the firm may have received.C. minimize the number of communication channels used by the firm.D. generate interest in the product in over half the consumers who receive the communications.E. include all steps of the AIDA model with equal weighting to each step.


AACSB: Analytic




One of the difficulties in measuring the effectiveness of IMC efforts is the ______________, whereconsumers do not act immediately after receiving a marketing communication. A. decoding decomposition effectB. lagged effectC. noncommittal affectD. viral effectE. click-through delay

If consumers responded instantly to marketing communications, measuring effectiveness would bemuch easier. In addition to the lagged effect, it often takes multiple exposures before a consumer fullyprocesses a message.

AACSB: Analytic




Reaching the right audience with marketing communication is becoming more difficult because: A. consumers are bored.B. government regulations are constraining free speech.C. personal selling is becoming less expensive, making it more competitive with advertising.D. the media environment has become more complicated.E. the AIDA model is no longer an accurate representation of how marketing communication works.


AACSB: Analytic


Learning Objective: 17-03 Describe the various integrative communication channels.Level: Easy


79.(p. 513)

The goal of any marketing communication is to: A. maximize sales.B. increase public relations click-through rates.C. overwhelm negative publicity with commercial speech.D. replace cause-related marketing with non-cause-related marketing.E. get the right message to the right audience through the right media.

A successful marketing communication strategy will get the right message to the right audiencethrough the right media.

AACSB: Analytic




The proliferation of new media alternatives has led many firms to shift their promotional budgetsfrom: A. publicity to public relations.B. personal selling to advertising.C. integrated marketing communications to disintegrated marketing communications.D. stealth marketing to viral marketing.E. advertising to direct marketing and Website development.

Marketing dollars have recently been shifted toward direct marketing, website development, andproduct placement.

AACSB: Analytic




Many marketers are shifting marketing communication resources away from advertising andtoward: A. direct marketing.B. website development.C. product placement.D. Internet advertising.E. all of these.

Marketing dollars have recently been shifted toward direct marketing, website development, productplacement, and online advertising.

AACSB: Analytic




82.(p. 514)

One of the benefits of media fragmentation is it has allowed IMC planners to: A. target their desired audience more precisely.B. reduce their promotional expenditures.C. simplify IMC decoding.D. reduce the lagged effect.E. expand the use of rule-of-thumb budgeting.

The fragmentation of media has made the selection of media more difficult; however, it has alsooffered the chance to target smaller, more precise audiences.

AACSB: Analytic




With today's media fragmentation, an IMC planner wishing to promote a line of gourmet foodproducts would most likely use: A. CBS network news hour.B. Public Broadcasting's Global Travel series.C. Nickelodeon.D. Outdoor Life Network.E. The Cooking Channel.

The fragmentation of media has made the selection of media more difficult; however, it has alsooffered the chance to target smaller, more precise audiences. In this case, The Cooking Channel wouldbe a good choice.

AACSB: Analytic




Compared to other IMC alternatives, advertising is extremely effective for: A. closing a sale.B. efficient message decoding.C. reducing the potential for noise.D. creating awareness and generating interest in a product.E. repositioning consumers in the AIDA model.

Advertising is best suited for creating awareness and interest. Because it is a relatively passivemedium, it does not do as well at generating desire and spurring consumers to action.

AACSB: Analytic




85.(p. 514)

One difficulty associated with using advertising as part of a marketer's IMC efforts is: A. breaking through the clutter of other messages targeted for the same audience.B. that it is more expensive than personal selling.C. that it only works when communicating to the most uninformed consumers.D. that government regulations have significantly decreased allowable advertising frequencies.E. all of these.

The increasing volume of advertising has made it more difficult for an ad to break through the clutter.

AACSB: Analytic


Learning Objective: 17-03 Describe the various integrative communication channels.Level: Hard


Integrated marketing communications include all of the following except: A. advertising.B. supply chain management.C. direct marketing.D. public relations.E. sales promotion.

All of these except the supply chain are channels used in the IMC process.

AACSB: Analytic




Personal selling involves ___________________ communication between a buyer and a seller. A. face-to-faceB. video teleconferencingC. telephoneD. InternetE. any of these

Personal selling involves two-way communication, which can take place using any of these media.

AACSB: Analytic




The difference between advertising and personal selling is personal selling involves: A. a larger audience than advertising.B. indirect communication while advertising involves direct communication.C. only informational communication while advertising involves persuasive communication.D. a two-way flow of communication between a buyer and a seller.E. encoding while advertising involves only decoding.

Personal selling involves two-way communication, whereas advertising is a one-way communicationprocess.

AACSB: Analytic




89.(p. 516)

Personal selling is an especially important part of IMC in: A. business-to-business markets.B. cause-related marketing.C. event sponsorships.D. stealth marketing.E. Web tracking.

Business-to-business markets make especially heavy use of personal selling.

AACSB: Analytic




Ryan is debating how to allocate the IMC budget for his new ski equipment store. He knows havingknowledgeable salespeople in his store can simplify buyers' purchase decisions. He should alsoconsider that, compared to other IMC alternatives, personal selling is: A. easy.B. expensive.C. ineffective.D. overrated.E. simple.

Although personal selling has many benefits, particularly for complex or expensive products, it can bean expensive form of integrated marketing communication.

AACSB: Analytic




Sales promotions include all of the following EXCEPT: A. coupons.B. rebates.C. online ads.D. point-of-purchase displays.E. free samples.

Online ads are a form of advertising; all the remaining items are examples of sales promotion.

AACSB: Analytic




92.(p. 516)

Karen manages cosmetic counters in a regional department store chain. She wants to increase salesduring the summer, hoping to generate repeat business during the holiday season. Because Karen isselling personal care products in a department store, she will most likely use __________________ asher primary methods of sales promotion. A. contests and sweepstakesB. advertising and personal sellingC. public relations and publicityD. free samples and point-of-purchase displaysE. direct marketing

Free samples and point-of-purchase displays are in-store forms of sales promotion. Although contestsand sweepstakes are also examples of sales promotion, they would probably not be as effective asmethods that take place in the store. Advertising, personal selling, public relations, publicity, anddirect marketing are not forms of sales promotion.

AACSB: Analytic




Compared to mass media advertising, a key advantage of direct marketing is: A. it allows for personalization of the message.B. it reaches a larger audience.C. it involves face-to-face contact.D. it uses the rule-of-thumb budgeting method.E. all of these.

Direct marketing can be easily personalized to each individual consumer.

AACSB: Analytic




In recent years, the component of IMC that has received the greatest increase in spending is: A. media advertising.B. direct marketing.C. public relations.D. sales promotions.E. publicity.

Direct marketing has received the greatest recent increase in aggregate spending.

AACSB: Analytic




95.(p. 516)

Brenda wants to reduce mass media IMC and to increase the use of personalized marketingcommunication messages. To achieve this goal, Brenda will likely increase her use of: A. telemarketing.B. direct mail.C. e-mail.D. social media.E. all of these.

Direct marketing is the form of marketing communication that is most easily personalized.

AACSB: Analytic




The increased use of customer databases has enabled marketers to identify and track consumers overtime and across purchase situations, and has contributed to the rapid growth in: A. media advertising.B. publicity.C. public relations.D. sales promotions.E. direct marketing.

Direct marketing is the form of marketing communication that is most easily personalized through theuse of customer databases.

AACSB: Analytic




A major factor contributing to the growth in the use of direct marketing IMC efforts is: A. reduced government regulation of deceptive advertising practices.B. expanded use of personal selling.C. a shift from objective-and-task to rule-of-thumb budgeting.D. increased use of credit and debit cards, and online shopping by consumers.E. the reduction in IMC noise allowing for a decreased lagged effect.

Direct marketing is the form of marketing communication that is most easily personalized throughthe use of customer databases. The growth of these databases has been stimulated by increased use ofcredit cards and increased online shopping.

AACSB: Analytic




98.(p. 516)

When purchasing books on Amazon.com, customers are shown other books and a messagesaying "Customers who purchased (your book) also purchased.........." This is an example of: A. mass media advertising.B. publicity.C. public relations.D. sales promotions.E. direct marketing.

This kind of personalization is a form of direct marketing.

AACSB: Analytic




Elliott was asked to take a look at the company's website. He noted that customers can order productson the site, but he felt it would also be important to: A. build the brand image of the firm's products.B. encourage customers to post product reviews.C. improve the overall image of the company.D. educate customers on how to use the products to their full advantage.E. All of these.

All of these are worthwhile features for a company website.

AACSB: Analytic




Public relations is the component of IMC that: A. supports other promotional efforts by generating "free" media attention.B. has received the greatest increase in spending.C. converts mass media advertising into direct marketing.D. most effectively uses IMC encoding.E. generates the most gross rating points.

Public relations manages the firm's communications to achieve a variety of objectives, includingbuilding and maintaining a positive image and maintaining positive relationships with the media. Assuch, it strives to generate "free" attention from the media to support the rest of the IMC strategy.

AACSB: Analytic




101.(p. 516)

Marketers use public relations to: A. build a positive image in the marketplace.B. maintain media relations.C. address unfavorable stories or events.D. generate "free" media attention.E. all of these.

Public relations manages the firm's communications to achieve a variety of objectives, includingbuilding and maintaining a positive image and maintaining positive relationships with the media. Assuch, it strives to generate "free" attention from the media to support the rest of the IMC strategy.

AACSB: Analytic




Marketers use corporate blogs to: A. create positive word of mouth.B. build customer loyalty.C. gather feedback.D. respond directly to customers.E. all of these.

A blog contains periodic posts on a common web page. It can be used for all of the purposes listed, asa way to communicate with customers.

AACSB: Analytic




A _________________ can be used to create positive word of mouth, help customers form acommunity, and develop long-term relationships between customers and the company. A. corporate blogB. faxed newsletterC. Super Bowl adD. full-page ad in selected newspapersE. public relations campaign

A blog contains periodic posts on a common web page. It can be used for all of the purposes listed, asa way to communicate with customers.

AACSB: Analytic



Topic: An Integrated Marketing Communication Strategy

104.(p. 521-522)

Firms can use _____________ to bring customers together to share experiences around theproducts. A. surveysB. social mediaC. consumer outletsD. brand associationsE. public relations

Social media is media content distributed through social interaction--for example, Youtube, Facebook,and Twitter. Firms can use these sites to engage their customers in a proactive dialogue with othercustomers.

AACSB: Analytic




The goals of IMC need to: A. expand as the advertising budget expands.B. be explicit and measurable.C. be encoded before they can be decoded.D. include both the noise effect and the transmitter effect.E. all of these.

All IMC goals should be explicitly defined and measured so that success can be evaluated.

AACSB: Analytic




Naomi is IMC manager for a chain of regional income tax service providers. Franchisees pay apercentage of their revenue to an IMC account allocated to her. As she establishes the short-termgoals for her firm's IMC efforts, her goals are likely to include: A. expanding customer loyalty by closing the feedback loop.B. increasing market share, sales, and customer loyalty.C. increasing inquires, awareness, and trial of her firm's services.D. shifting customers to rule-of-thumb budgeting.E. increasing the lagged effect.

Typical short-term IMC goals include generating inquiries, increasing awareness, and prompting trialof the firm's products.

AACSB: Analytic


Learning Objective: 17-04 Explain the various ways used to allocate the IMC budget.Level: Hard


107.(p. 524)

Lamar is assessing the long-term effectiveness of his firm's IMC efforts. He will probably analyze thefirm's success in: A. expanding customer loyalty by closing the feedback loop.B. increasing market share, sales, and customer loyalty.C. increasing inquires, awareness, and trial of her firm's services.D. shifting customers to rule-of-thumb budgeting.E. increasing the lagged effect.

Typical long-term IMC goals include increasing sales, market share, and customer loyalty.

AACSB: Analytic




Julie is developing a budget for her firm's IMC program. First she sets objectives. Then she choosesmedia, and finally she determines the cost for each product to be promoted. Julie is using the___________________ method of establishing an IMC budget. A. reach and frequencyB. track and decodeC. objective-and-taskD. rule-of-thumbE. sender-receiver

The objective-and-task method determines the budget required to undertake specific tasks toaccomplish communication objectives.

AACSB: Analytic




Competitive parity, percentage-of-sales, and available budget are types of________________________ IMC budgeting. A. reach and frequencyB. track and decodeC. objective-and-taskD. rule-of-thumbE. sender-receiver

Rule-of-thumb methods such as the ones listed use prior sales and communication activities todetermine the present communication budget.

AACSB: Analytic




110.(p. 525)

Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm's IMCmessage and what percentage of the target audience was exposed to the message. Yolanda is askingfor _____________________ data. A. parity and affordabilityB. sales and promotionC. attitude changeD. rule-of-thumbE. frequency and reach

Frequency refers to the number of times the audience was exposed to a message, and reach refers tothe percentage of the target population exposed to the message.

AACSB: Analytic




When Yolanda asked her firm's advertising agency to estimate how often consumers saw her firm'sIMC message and what percentage of the target audience was exposed to the message, she was toldthe reach was 40, the frequency was 4 and the competitive parity was 10. The gross rating points forher firm's campaign were: A. 160B. 1600C. 400D. 40E. The answer cannot be determined from this information.

Gross rating points (GRP) are computed by multiplying reach by frequency. Thus, in this case, GRP =40 x 4 = 160.

AACSB: Analytic




Ramon is starting his own plumbing supply store featuring designer and restoration hardware. As inany start-up, he will have to watch expenditures carefully. He knows he will have to pursue a numberof different communications approaches, but he is not sure how to measure the effectiveness of theeffort. What advice would you give him? A. The lagged effect means it will be difficult to measure precisely the effect of any single initiative.B.

Marketing communication is cumulative; it will take a number of impressions for the message toconnect with the customer.

C. Each step in the process can be measured.D. If he decides to cut out some expenditures, it will take a while for that effect to show up.E. All of these are important for Ramon to consider.

All of these are important considerations.

AACSB: Analytic




113.(p. 527)

To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To doso, they need to know the number of clicks and: A. the number of destinations.B. the number of impressions.C. the cost per click.D. how much time consumers spend viewing the ad or page.E. the total number of clicks recorded by the industry.

The click-through rate is computed by dividing the number of clicks by the number of impressions.

AACSB: Analytic




Jim was asked to determine the ROI for a particular advertising effort. To do so, he needs toknow: A. the internal rate of return and the projected expenditure level.B. the total number of units sold and the total cost of sales.C. sales revenue and advertising cost.D. gross margin and advertising cost.E. the advertising cost and the total communications expenditures.

The ROI is calculated using sales revenue and advertising cost.

AACSB: Analytic




If a company sets the communication budget so that the firm's share of communication expensesequals its share of the market, what IMC budgeting method is it using? A. Competitive parityB. Percentage of salesC. Available budgetD. Objective and taskE. None of these

Competitive parity is used when the company wants to maintain a communication budget equal to thatof its competitors.

AACSB: Analytic




116.(p. 524)

Budgeting for marketing expenses by using money available after operating costs and profits havebeen budgeted is known as the ________ method. A. available budgetB. competitive parityC. percentage of salesD. objective and taskE. none of these.

In the available budget method, the communication budget is the money available after operating costsand profits have been budgeted.

AACSB: Analytic




An ad for Bud Light ran six times during a recently televised football game. When measuring IMCresults for this ad, six would be the _____ for this telecast. A. frequencyB. reachC. gross rating pointsD. ROIE. click-through rate

Frequency is the number of times the audience is exposed to a communication within a specifiedperiod of time.

AACSB: Analytic




Sally could recall the brand of toothpaste she used only when a marketing researcher mentioned thebrand. This is known as: A. aided recall.B. unaided recall.C. top-of-mind awareness.D. brand preference.E. brand indifference.

Aided recall is when consumers recognize the brand when the name is presented to them.

AACSB: Analytic




119.(p. 527)

If you send an email and include a link, you can track how many people took the desired action ofclicking on the link. This is known as: A. the click through rate.B. impressions.C. frequency.D. gross rating points.E. reach.

The click-through rate is the number of times users click on an ad divided by the number ofimpressions.

AACSB: Analytic




Which of the following is being used by a store owner who sends out a text message to all of herpreferred customers announcing the arrival of this season's new clothing? A. Mobile marketingB. Public relationsC. Personal sellingD. Sales promotionsE. None of these

Mobile marketing sends messages through wireless handheld devices, such as cellular telephones.

AACSB: Analytic




The Salvation Army runs a campaign over the Christmas holidays called the Mobile Bell Ringer.Volunteers send text messages to their friends' cell phones asking them to donate. Which type ofmarketing communication does this represent? A. Mobile marketingB. Public relationsC. Personal sellingD. Sales promotionsE. Advertising

Mobile marketing sends messages through wireless handheld devices, such as cellular telephones.

AACSB: Analytic




122.(p. 524)

Which of the following is not a rule-of-thumb method for IMC budgeting? A. Competitive parityB. Percentage of salesC. Available budgetD. Objective and taskE. All of these are rule-of-thumb methods.

Rule of thumb methods include competitive parity, percentage of sales, and available budget.

AACSB: Analytic




Red Bull sends out student brand managers to distribute free samples to their peers. What form ofmarketing communication is this? A. Sales promotionB. Direct marketingC. Public relationsD. Mobile marketingE. Advertising

Free samples are a form of sales promotion.

AACSB: Analytic



Topic: Elements of an Integrated Marketing Communication Strategy 124.(p. 507-508,Openingvignette)

The opening vignette describes KFC's activities associated with introduction of its "fiery" chickenwings. What could have gone wrong, had the firm not used IMC?

Each element of the IMC strategy must have a well-defined purpose and must support the messagedelivered by the other elements. Students might select a number of potential problems, like using morefeminine colors or other examples that don't support the primary purpose and message.

AACSB: Analytic




What is noise in the communication process? What are the three typical sources of noise? Provide anexample of noise you have experienced or observed.

Noise is any interference in the communication process. It typically stems from competing messages,a lack of clarity in the message, or a flaw in the medium. Examples will vary but one classic one is abillboard along a fast-moving highway with too much information.

AACSB: Analytic




126.(p. 513)

There is an old advertising adage, "I know I'm wasting half of my advertising budget. I just don'tknow which half." What is the lagged effect? How does it contribute to the dilemma of attempting todetermine which advertising has an impact and which doesn't?

The lagged effect is the delayed response to an IMC campaign. Marketers want to see resultsfrom their IMC efforts but, often consumers do not immediately act in response to marketingcommunications messages. This makes it difficult to determine which IMC messages generatedresults.

AACSB: Analytic




Provide an example of a firm delivering the right message to the right audience through the rightmedia.

Answers will vary but should focus on communicating a message that creates awareness, interest, ordesire to a target audience through a medium that will reach the target audience. Instructors may wantto narrow the question by using a specific firm.

AACSB: Analytic




Kim and David's Kayak Tours offers a variety of coastal kayaking trips. When they started theirbusiness, they experimented with advertising but were disappointed with the results. A friend hassuggested using sales promotions instead. What are their sales promotion options? Which would havethe best potential for success, and why?

Sales promotions include coupons, contests, rebates, point-of-purchase displays, and free samples.Since they offer a service that probably attracts both one-time and repeat business, contests or rebatesdo not seem appropriate. Coupons displayed in local hotels and B&Bs could work to attract visitors.Free samples or complimentary trips to workers in restaurants, resort communities, or hotels couldcreate word of mouth referrals.

AACSB: Analytic




How have changes in the way consumers purchase goods and services contributed to the growth in theuse of direct marketing IMC efforts?

As consumers increased their use of credit and debit cards, and online shopping, it provided marketerswith a wealth of information about individual consumers, facilitating direct marketing efforts.

AACSB: Analytic




130.(p. 516-517)

How can direct marketing create a win-win situation for customers and the firm?

Students should demonstrate a basic understanding of direct marketing in the responses. They shoulddiscuss how customers can have their needs met. Firms can gather data about needs and wants,purchase intentions, and levels of satisfaction, which will help in turn lead to the creation of goods andservices that consumer will value more highly.

AACSB: Analytic




One of the newest IMC efforts is the use of corporate blogs. Why do businesses use them?

Corporate blogs can be used to create positive word of mouth, build customer loyalty, gatherfeedback, and respond directly to customers.

AACSB: Analytic




Most small retail businesses use rule-of-thumb IMC budgeting methods. What methods are they likelyto use and what are the limitations associated with each method?

The three rule-of-thumb methods are competitive parity, percentage-of-sales, and available budget.Competitive parity involves matching communication expenses with the firm's share of the market. Itdoes not allow firms to exploit opportunities and will likely result in each firm maintaining its share ofthe market. Percentage-of-sales budgets IMC as a percentage of forecasted sales. This ignores changesin the marketing mix, particularly the introduction of new products or product lines that usuallyrequire added spending to create awareness. The available budget method sets the IMC budget as themoney available after operating costs and profits have been budgeted. It includes communicationsexpenses as an afterthought and assumes that communication expenses do not stimulate sales or profit.

AACSB: Analytic



Topic: Planning For and Measuring IMC Success 133.(p. 524-525)

Monica is launching a personal shopping and messenger service. She has a pretty good idea of whather expenses will be, and she has some conservative but solid revenue projections. She has no idea,though, how to budget communications expenses. She is asking a number of her friends for theirideas. What approaches would you recommend?

Monica could perhaps use an objective-and-task approach if she has relatively clear communicationsobjectives. She also could use comparative parity and percentage-of-sales if she has a reasonable goodhandle on what her competitors do and what her sales might be. Given that this is a new business, shemight want to give serious consideration to the simple available budget approach.

AACSB: Analytic




134.(p. 525)

Why should a marketer try to measure the success of a communications effort?

Students should anticipate issues about allocations to more effective areas, concern for scarceresources, improving effectiveness and efficiency, and determining which areas should be consideredfor additional investments. Without some way to compare the expenditures and results, it would beimpossible to evaluate efforts and outcomes.

AACSB: Analytic




What parts of an organization are involved in integrating marketing communications?

All parts of the organization are involved in communication, including advertising, personal selling,sales promotion, public relations, direct marketing, and electronic media.

AACSB: Analytic




How can noise disrupt the IMC process?

Noise typically stems from competing messages, a lack of clarity in the message, or a flaw in themedium.

AACSB: Analytic




What are the four mental stages in the AIDA model?

Awareness, interest, desire, and action.

AACSB: Analytic




What is the other name for the AIDA model?

Think, feel, do.

AACSB: Analytic




139.(p. 512)

Darrell saw a review of the new Love CD produced in collaboration with Cirque du Soleil, and hasdecided he has to have it. At what stage in the AIDA model is Darrell?

He is in the desire stage.

AACSB: Analytic



Topic: Communicating with Consumers 140.(p. 514-516)

How is advertising different from publicity?

Advertising is a paid form of communication from an identifiable source, designed to persuade thereceiver to take action. Publicity is free, does not necessarily identify the source, and is not necessarilydesigned to persuade receivers to take action.

AACSB: Analytic




What types of sales promotions would a marketer consider if the goal is to build short-term sales?

To generate short-term sales, marketers typically use coupons, point-of-purchase displays, or freesamples.

AACSB: Analytic




What is the major advantage of direct marketing over advertising?

Direct marketing allows for personalization of the message transmitted to consumers.

AACSB: Analytic




A media rep from the local radio station comes into your retail store and suggests running a series ofadvertisements. She says, "Let's do it and see what happens." What problems can you anticipate withthis as the suggested goal?

IMC goals should be explicit and measurable. "Let's do it and see what happens" does not create anexplicit goal and therefore it will be difficult to measure the success or failure of the campaign.

AACSB: Analytic




144.(p. 524)

Julie is developing a budget for her firm's IMC program. First, she decides what she wants toaccomplish. Then she chooses media, and finally she determines the cost for each product to bepromoted. What type of IMC budgeting process is Julie using?

She is using an objective-and-task method.

AACSB: Analytic




Tom asks you how to measure gross rating points and how to compare results from various media.How would you respond?

Gross rating points are calculated by multiplying the reach (the percentage of the target populationexposed to the message) by the frequency, which is how often the audience is exposed to the message.GRP can be measured for print, radio, or television, but should not be compared across media.

AACSB: Analytic



Topic: Planning For and Measuring IMC Success 146.(p. 511-513)

List the steps in the AIDA model and explain why each step is important to marketers.

Awareness--in this step, marketers are looking to gain brand awareness and top of mind awareness toensure that a consumer will think of a specific brand name first when they are asked about a productor a service.Interest--in this step, marketers try to convince consumers that the product is worth investigating.They do so by ensuring that the ad's message includes attributes that are of interest to the targetaudience.Desire--marketers want consumers to move from "I like it" to "I want it." They do this by emphasizingproduct benefits and encouraging consumers to demand access to the product or service.Action--the ultimate goal for marketers is to have consumers search for the product and make apurchase.

AACSB: AnalyticBlooms: Analyze

Grewal - Chapter 17 #146Learning Objective: 17-02 Explain the four steps in the AIDA model.

Level: HardTopic: Communicating with Consumers

147.(p. 527)

If sales revenue for Becky Balloon's was $35 a day and the advertising cost was $10, what would bethe return on investment?

ROI = Sales Revenue - Advertising cost/ Advertising cost = (35-10)/10 = 2.5 = 250%The return would be 250%.


Grewal - Chapter 17 #147Learning Objective: 17-02 Explain the four steps in the AIDA model.

Level: HardTopic: Planning For and Measuring IMC Success

148.(p. 525)

If you were advertising your company's watches in Vogue magazine and you had 5 ads in themagazine, how would you calculate your gross rating points (GRP)?

The GRP is equal to reach times frequency. If you were to have 5 ads in Vogue, you would multiplythe reach by five to get GRP.


Grewal - Chapter 17 #148Learning Objective: 17-05 Identify marketing metrics used to measure integrated marketing communications (IMC) success.


149.(p. 526)

Explain how a company can use search engine marketing.

A company can use Google AdWords, a search engine marketing tool offered by Google that allowsadvertisers to show up in Sponsored Links section of the search results page based on the keywordspotential customer use. The company must determine the best keywords to use for the advertisingprogram.


Grewal - Chapter 17 #149Learning Objective: 17-05 Identify marketing metrics used to measure integrated marketing communications (IMC) success.


17 Summary Category # of Questions

AACSB: Analytic 149Blooms: Analyze 4Blooms: Apply 27Blooms: Remember 53Blooms: Understand 65Grewal - Chapter 17 149Learning Objective: 17-01 Identify the components of the communication process. 45Learning Objective: 17-02 Explain the four steps in the AIDA model. 33Learning Objective: 17-03 Describe the various integrative communication channels. 43Learning Objective: 17-04 Explain the various ways used to allocate the IMC budget. 14Learning Objective: 17-05 Identify marketing metrics used to measure integrated marketing communications (IMC) success.

14

Level: Easy 39Level: Hard 38Level: Medium 72Topic: An Integrated Marketing Communication Strategy 1Topic: Communicating with Consumers 64Topic: Elements of an Integrated Marketing Communication Strategy 43Topic: Integrated Marketing Communications 11Topic: Planning For and Measuring IMC Success 29Topic: The AIDA Model 1

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