Chapter 4 The IMC Planning Process: Integrated Advertising, Promotion, and Marketing Communications 8e (Clow/Baack)

Integrated Advertising, Promotion, and Marketing Communications 8e (Clow/Baack)
Chapter 4 The IMC Planning Process
1) The first step in the IMC planning process is:

A) communications research.
B) defining the firm's target market.
C) an analysis of the product positioning.
D) developing communications objective.
Answer: A
Difficulty: Moderate
Skill: Definition (Concept)
AACSB: Application of knowledge
LO: 4.1 What makes marketing research critical to the IMC planning process?
2) The three primary approaches used in communications research include:

A) consumer-oriented, business-to-business research and market-based research.
B) product-specific research, consumer-oriented research and target-market research.
C) competitive analysis, industry research and consumer research.
D) consumer-specific research, brand equity research and business-specific research.
Answer: B
3) The "Got milk?" campaign emerged after consumers were deprived of milk for a week. What
forms of communication research were used to discover the impact of doing without milk?
A) Product-specific and consumer-oriented research
B) Target-market and product-specific research
C) Consumer and business-to-business research
D) Sociological and anthropological research
Answer: A
Difficulty: Difficult
Skill: Application
AACSB: Reflective thinking
1
Copyright © 2018 Pearson Education, Inc.
4) Discovering the major selling idea for a good or service is part of which component of
communications research?
A) Consumer-oriented research
B) Target-market research
C) Product-specific research
D) Quantitative research
Answer: C
5) When conducting communications research, each of the following perspectives is typically

used except:
A) anthropology.
B) sociology.
C) psychology.
D) statistics.
Answer: D
6) Using anthropological methods for communications research typically includes:

A) a statistical analysis.
B) a sociological study.
C) direct observation.
D) secondary research.
Answer: C
7) If Ralph Lauren's marketing team is trying to determine if the brand will appeal to a cohort
group that is rich, elite, and distinct, which method would reveal such a trend?
A) Product-specific research
B) Anthropological research
C) Psychological research
D) A sociological approach assessing social class
Answer: D
Difficulty: Easy
Skill: Application
2
8) Predicting consumer behavior by concentrating on the motives of purchase decisions involves
using which approach?
B) Psychological
C) Sociological
D) Anthropological
Answer: B
9) Advertising researchers want to understand reasons individuals select specific fashion trends.
Which approach would be the best consumer-oriented research method to use?
B) Psychological
C) Sociological
D) Anthropological
Answer: B
Skill: Critical Thinking
AACSB: Analytical thinking
10) An individual's desire to drink high-quality wine as an expression of individuality and taste is
discovered using which type of communications research approach?
A) Product-specific research approach
B) Psychological approach
C) Sociological approach
D) Anthropological approach
Answer: B
11) Identifying who will be the recipient of a planned communications campaign is which type
of research?
A) Consumer-oriented
B) Target-market
C) Product-specific
D) Market segmentation
Answer: B
Difficulty: Easy
3
12) The IMC planning process begins with communications research.
Answer: TRUE
Difficulty: Easy
13) When conducting communications research, researchers examine the context of a product's
use.
Answer: TRUE
14) The primary methods used in communications research are product-specific research, target-
market research and competitive analysis research.
Answer: FALSE
15) During the product-specific research phase of advertising research, an agency's employee
may ask consumers if there are any problems or difficulties with the product.
Answer: TRUE
16) A sociological approach in consumer-oriented research involves direct observation of

consumers using goods and services.
Answer: FALSE
17) In consumer-oriented advertising research, sociological analysis involves identifying who the
target market associates with and how they interact with other people.
Answer: FALSE
4
18) Consumer-oriented advertising research includes using methods from disciplines such as
anthropology, psychology, and biology.
Answer: FALSE
Difficulty: Easy
19) In consumer-oriented advertising research, advertisers often analyze psychological motives

for product purchases.
Answer: TRUE
20) Product-specific research goes beyond understanding a product's benefits; it also includes an
understanding of the product's attributes.
Answer: FALSE
Difficulty: Easy
21) Target-market research identifies who the recipient will be in a communications campaign.
Answer: TRUE
Difficulty: Easy
22) Consumer-oriented research looks at the best market segment for a particular benefit of a
good or service, such as financial planning by a bank.
Answer: FALSE
Skill: Application
23) A focus group consists of a small set of individuals that are asked to talk about a particular
topic, product or brand in front of a moderator.
Answer: TRUE
Difficulty: Easy
5
24) Briefly describe the elements of the IMC planning process.
Answer:
1. Communications research
2. Target market
3. Product positioning
4. Objectives
5. Budget and IMC components
25) What is the first step in the IMC planning process? Describe the components.
Answer: The first step is the communications analysis. It includes product-specific research,
consumer-oriented research, and target-market research.
Skill: Synthesis
26) What is the first step in the IMC planning process?

Answer: The first step is the communications analysis.
Difficulty: Easy
Skill: Synthesis
27) What are the components of a communications analysis?

Answer: A communications analysis includes product-specific research, consumer-oriented
research, and target-market research.
Skill: Synthesis
28) Describe product-specific research, consumer-oriented research, and target-market research.

Answer: Product-specific research involves identifying key product characteristics that become
selling points. Consumer-oriented research assists marketers in identifying the context of a
product's use. Target-market research identifies those who will be the recipient of a
communications campaign.
Skill: Synthesis
6
29) Describe three methods used in consumer-oriented communication analysis research.
Answer: An anthropological approach involves direct observation of consumers using the good
or service. A sociological analysis features social class issues, trends, and family life cycle
changes. A third customer-oriented approach analyzes psychological motives for product
purchases, such as feeling sexy, powerful, or intelligent.
Skill: Synthesis
30) A set of businesses or groups of individual consumers with distinct characteristics is a(n):
A) differentiated group.
B) production department.
C) market segment.
D) manufacturing system.
Answer: C
Difficulty: Easy
LO: 4.2 What categories are used to identify consumer target markets or market segments?
31) Market segments should be internally:

A) heterogeneous.
B) qualitative.
C) unique.
D) homogeneous.
Answer: D
Difficulty: Easy
32) For a market segment to be viable, it should meet each of the following tests except the:
A) members of the market segment should be ambiguous.
B) market segment must be large enough to be financially viable to market with a separate
marketing campaign.
C) market segment must differ from the population as a whole.
D) market segment must be reachable through some type of media or marketing
communications.
Answer: A
7
33) Each of the following are methods of segmenting consumer markets except:
A) demographics.
B) industry size.
C) psychographics.
D) generations.
Answer: B
Difficulty: Easy
34) Each of the following is a method for segmenting consumer markets except:
A) geographic.
B) geodemographics.
C) distribution channel.
D) benefits.
Answer: C
Difficulty: Easy
35) The method of consumer segmentation that is based on population characteristics is:
A) demographics.
B) psychographics.
C) geographic.
D) polygraphic.
Answer: A
Difficulty: Easy
36) Using gender, age, ethnicity, and income as market segmentation variables is the application
of which segmentation approach?
A) Demographics
B) Psychographics
C) Geographic
D) Polygraphic
Answer: A
Difficulty: Easy
8
37) In marketing deodorant to women, Degree emphasized that the product:
A) worked under physical feats, such as mountain biking.
B) left no marks on clothing and would hold up as she worked and socialized.
C) left no perspiration stains when exercising.
D) had perfume ingredients that created an alluring smell.
Answer: B
Skill: Application
38) Each of the following is a type of demographic segmentation variables except:

A) gender.
B) lifestyles.
C) age.
D) ethnicity.
Answer: B
Difficulty: Easy
39) Level of education is an example of segmentation by:

A) psychographics.
B) generations.
C) demographics.
D) geodemographics.
Answer: C
Difficulty: Easy
40) Analysis of buying patterns by gender is an example of segmentation by:

A) psychographics.
B) generations.
C) demographics.
D) usage.
Answer: C
9
41) All of the following facts about campaigns that target men are true except:
A) men prefer specific information rather than browsing products and brands.
B) men favor products that reflect status and demonstrate they have good taste.
C) men tend to purchase well-known brands.
D) for men, a lower price is more important than higher quality.
Answer: D
42) The marketing director of the Houston Astros baseball team has developed an advertising
campaign targeted at females. This is an example of the demographic segmentation variable of:
A) gender.
B) age.
C) income.
D) ethnicity.
Answer: A
Difficulty: Easy
Skill: Application
43) If a company's marketing team chooses to focus marketing efforts on children, which
demographic variable is being used to segment the market?
A) Gender
B) Age
C) Generations
D) Benefits
Answer: B
Difficulty: Easy
44) The marketing leaders of the New Orleans Saints football team developed an advertising
campaign targeted at teenagers. This is an example of the demographic segmentation variable of:
A) gender.
B) age.
C) income.
D) ethnicity.
Answer: B
Skill: Application
10
45) A commercial showing the luxury and quality of a Lexus is based on which type of market
segmentation?
A) Geographic
B) Income
C) Ethnic
D) Geodemographic
Answer: B
46) Attitudes, interests, and opinions are reflected in which type of market segment?
A) Demographic
B) Geographic
C) Psychographic
D) Product
Answer: C
47) Males who buy items because they reflect "masculinity" may be targeted using which
segmentation approach?
A) Geographic
B) Psychographic
C) Generational
D) Product use
Answer: B
Skill: Application
48) The VALS typology is based on which type of segmentation?

A) Demographic
B) Psychographic
C) Generations
D) Geodemographic
Answer: B
11
49) Marketing to individuals who are successful, sophisticated, receptive to new technologies,
enjoy sports, and are liberal in their political views is an example of which type of segmentation?
A) Demographic
B) Psychographic
C) Generations
D) Geodemographic
Answer: B
Skill: Application
50) Which method of segmenting markets is based on the idea that people experience significant
external events during their late adolescence and early adulthood that impact their social values,
attitudes, and preferences?
A) Demographic
B) Psychographic
C) Generations
D) Geodemographics
Answer: C
51) When Skechers targets California with a special advertising and promotional campaign,
which type of segmentation is being used?
A) Psychographics
B) Demographics
C) Geographic area
D) Geodemographics
Answer: C
Difficulty: Easy
Skill: Application
12
52) Targeting northern U.S. states for sales of snow skis is an example of which type of
segmentation?
A) Demographic
B) Geographic
C) Benefit
D) Geodemographic
Answer: B
Difficulty: Easy
Skill: Application
53) Geodemographics combines demographic information, geographical information and which

other type of information?
A) Psychographic
B) Generational
C) Global marketing
D) Benefit segmentation
Answer: A
Difficulty: Easy
54) Geodemographic segmentation combines each of the following except:

A) demographics.
B) geographic information.
C) product usage.
D) psychographics.
Answer: C
55) If a company sends direct mail only to zip codes in communities that match a firm's best
customer profiles, it is using which type of segmentation?
A) Demographic
B) Psychographic
C) Geographic
D) Geodemographic
Answer: D
Skill: Application
13
56) PRIZM is a company that specializes in which type of segmentation?
A) Product differentiation
B) Geodemographic
C) Geographic
D) Psychographic
Answer: B
57) A market segmentation approach that focuses on the benefits of a product rather than on the
type of customers of a product is which form of segmentation?
A) Demographic
B) Psychographic
C) Benefit
D) Usage
Answer: C
Difficulty: Easy
58) Targeting people who buy vitamins to improve their health is an example of which type of
segmentation?
A) Demographic
B) Geographic
C) Benefit
D) Geodemographic
Answer: C
Difficulty: Easy
Skill: Application
59) Targeting people who wish to improve their sex lives using herbs and supplements is an
example of which type of segmentation?
A) Demographic
B) Geographic
C) Benefit
D) Geodemographic
Answer: C
Difficulty: Easy
Skill: Application
14
60) A firm that has a database containing consumer purchasing histories that uses the
information to create market segments is using which type of segmentation?
A) Demographic
B) Psychographic
C) Benefit
D) Usage
Answer: D
61) In terms of market segmentation, the usage segmentation approach offers each of the
following advantages except:
A) a meaningful classification scheme based on actual behavior of customers.
B) ability to reduce a large volume of customer data to a few, concise clusters.
C) ability to measure the growth of each cluster and the migration of customers from one cluster
to another.
D) ability to compare a firm's customers with customers from competing firms.
Answer: D
62) Target markets exist in two areas: current customers and potential customers.
Answer: FALSE
63) Market segmentation identifies specific groups of consumers or businesses based on needs,
attitudes, and interests.
Answer: TRUE
Difficulty: Easy
64) A market segment is a set of consumers or businesses with distinct characteristics.

Answer: TRUE
Difficulty: Easy
15
65) Consumers within a market segment tend to be homogeneous, which means they are
different.
Answer: FALSE
Difficulty: Easy
66) A market segment must be financially viable to be useful.

Answer: TRUE
67) Demographics, or population characteristics, can be used to identify market segments.

Answer: TRUE
Difficulty: Easy
68) Selling a product specifically to women is a form of psychographic market segmentation.

Answer: FALSE
Difficulty: Easy
69) Marketing products that are purchased by both genders with different types of appeals are
not usually successful.
Answer: FALSE
70) A recent study revealed that women control 75 percent of the world's annual consumer
spending.
Answer: FALSE
16
71) When marketing to men, it is important to remember that many men do not enjoy browsing;
instead, many prefer to look for specific information or products.
Answer: TRUE
Skill: Application
72) When marketing to children, a company is using generation segmentation.

Answer: FALSE
73) Selling to various ethnic groups is a form of demographic market segmentation.

Answer: TRUE
Difficulty: Easy
74) The increase in the number of minorities and their buying power represents both an
opportunity and a threat for companies.
Answer: TRUE
75) Successful ethnic marketing is more than just using ethnic media outlets. It requires
understanding various ethnic groups and preparing marketing communications that speak to
specific cultures and values.
Answer: TRUE
Skill: Application
76) The current trend in dealing with ethnic groups is to create separate campaigns for each
ethnic group.
Answer: FALSE
17
77) In ethnic marketing it is important to present one overall message theme, but it should then
be tailored to fit the needs and values of each ethnic group.
Answer: TRUE
78) Psychographic information is often combined with usage and benefit information to provide
marketers with a more complete understanding of a target market.
Answer: FALSE
79) Geographic segmentation is especially useful for retailers that want to limit marketing
communications expenditures to specific areas.
Answer: TRUE
Difficulty: Easy
80) Psychographics are patterns that reflect attitudes, interests, and opinions of consumers, and
can be used for demographic market segmentation.
Answer: FALSE
81) Geodemographic segmentation combines geographic information with product usage and
psychographic information.
Answer: FALSE
82) Benefit segmentation is a combination of demographic and psychographic information.

Answer: FALSE
18
83) Benefit segmentation is more valuable when it can be combined with demographic and
psychographic information.
Answer: TRUE
84) What are the characteristics of a viable market segment?

Answer:
1. The individuals within the segment should be similar, i.e., homogeneous.
2. The segment should differ from the population as a whole.
3. The segment must be large enough to be financially viable when targeted by a separate
marketing campaign.
4. The segment must be reachable through some type of media or marketing communications
method.
85) What are the major consumer market segments?

Answer:
1. Demographics
2. Psychographics
3. Generations
4. Geographic
5. Geodemographic
6. Benefit
7. Usage
86) Demographic segmentation involves analysis of which variables?

Answer: Demographic segmentation uses gender, age, ethnicity, and income as variables.
Skill: Synthesis
19
87) Geodemographic segmentation includes analysis of which variables?
Answer: Geodemographic segmentation identifies potential customers using demographic
information, geographic information, and psychographic information.
Skill: Synthesis
88) Describe a usage segmentation approach.

Answer: Usage segmentation examines groups based on usage or purchases, including the
company's best customers or heavy users, average users, casual or light users, and nonusers.
Skill: Synthesis
89) All of the following are methods of segmenting business-to-business markets except:
A) psychographics.
B) NAICS/SIC code.
C) geographic location.
D) size of business.
Answer: A
Difficulty: Easy
LO: 4.3 What categories are used to identify business-to-business market segments?
90) Each of the following is a method for segmenting business-to-business markets except:
A) psychographics.
B) NAICS/SIC code.
D) size of business.
Answer: A
Difficulty: Easy
20
91) All of the following are methods of segmenting business-to-business markets except:
A) product usage.
B) psychographics.
D) customer value.
Answer: B
Difficulty: Easy
92) Each of the following is a method for segmenting business-to-business markets except:
A) product usage.
B) psychographics.
D) customer value.
Answer: B
Difficulty: Easy
93) The most common method of segmenting business markets by industry is to use:
A) the NAICS code system.
B) geographic location.
C) business characteristics.
D) customer value measures.
Answer: A
94) The NAICS/SIC code program is used in which type of business-to-business segmentation?
A) Industry
B) Company size
C) Geographic
D) Benefit
Answer: A
21
95) If Microsoft's marketing team wanted to feature a different communications approach when
designing mailings for various business industries, they could use:
A) the NAICS code.
B) demographics.
C) a competitive analysis.
D) an opportunity analysis.
Answer: A
Skill: Application
96) When a food producer that distinguishes between individually-owned grocery stores and
major retailers such as Target, the segmentation approach being used is:
A) industry.
B) business size.
D) usage.
Answer: B
Skill: Application
97) Using segmentation by size, which type of organization would most likely be contacted by
email or outbound telemarketing?
A) Small business
B) Medium size business
C) Large firm
D) Government entity
Answer: A
Skill: Application
98) Using segmentation by size, which type of organization would most likely be contacted by a
field sales person visiting the organization's place of business?
A) Small business
B) Medium size business
C) Large business
D) Government entity
Answer: C
Skill: Application
22
99) Applied Microbiology used which method to segment the business market by combining
geographic area data for dairy farmers with demographic and psychographic information?
A) Product usage
B) NAICS/SIC code
C) Geodemographics
D) Size of business
Answer: C
Skill: Application
100) Marketing to companies that use the same good or service, but in different ways is
segmentation based on:
A) the NAICS code.
B) demographics.
D) product usage.
Answer: D
101) When the Edgewater Beach & Golf Resort developed a marketing campaign aimed to
attract business customers, institutions, and organizations that needed a location to hold 2- to 4-
day conferences, the type of segmentation approach being used was:
A) demographics.
B) product usage.
C) type of business.
D) customer value.
Answer: B
Skill: Application
23
102) When Reynolds Protection Agency sells the same service to three different types of
organizations the firm uses which segmentation approach?
A) Industry
B) Size
C) Geographic
D) Usage
Answer: D
Skill: Application
103) When a company sorts prospects into those with the lowest, medium, and highest profit
potential, which segmentation approach is being used?
A) Industry
B) Size
C) Usage
D) Customer value
Answer: D
104) An auto parts supplier divided repair shops into those with the lowest, medium, and highest
potential levels of sales and profits. This means which segmentation approach was used?
A) Industry
B) Geographic
C) Customer value
D) Usage
Answer: C
Skill: Application
105) The NAICS code helps in geodemographic segmentation programs.

Answer: FALSE
24
106) The NAICS coding system allows marketing teams to examine specific industries within
the consumer market.
Answer: FALSE
Difficulty: Easy
107) One method of business-to-business market segmentation utilizes company size as a

segmentation variable.
Answer: TRUE
Difficulty: Easy
108) Geodemographics can be used to segment business markets as well as consumer markets.
Answer: TRUE
109) Product usage is not normally used as a method of business-to-business market

segmentation.
Answer: FALSE
Difficulty: Easy
110) What are the methods of segmenting business-to-business markets?

Answer:
1. Industry
2. Business size
3. Geographic location
4. Product usage
5. Customer value
25
111) Describe the customer value approach to business-to-business segmentation.
Answer: Customer value means a precise value will be assigned to each individual business
through sales records and other sources of data and information, placing them into low-,
medium-, and high-value groups.
Skill: Synthesis
112) Mountain Dew's marketing team might learn that the soft drink is considered more hip and
trendy than Coke during an analysis of:
A) primary data.
B) market segments.
C) the company or product's position.
D) secondary data.
Answer: C
LO: 4.4 How do the various approaches to positioning influence the IMC planning process?
113) Product positioning is the:

A) level of brand equity faced by a company or brand.
B) perception consumers have of a company or brand relative to competitors.
C) number and level of products offered by a company.
D) perception consumers have of a company or brand relative to other brands being offered by
the company.
Answer: B
Difficulty: Easy
114) Each of the following is possible product positioning strategy except:

A) attributes.
B) competitors.
C) use or application.
D) by-products.
Answer: D
26
115) Each of the following is possible product positioning strategy except:
A) governmental customers.
B) cultural symbols.
C) product users.
D) product class.
Answer: A
Difficulty: Easy
116) The product positioning strategy based on a product trait or characteristic is which type of
positioning approach?
A) Product attributes
B) Competitors
C) Use or application
D) Price-quality relationship
Answer: A
Difficulty: Easy
117) The positioning strategy of using another brand to establish product position is the
________ positioning approach.
A) product attributes
B) competitors
C) use or application
D) price-quality relationship
Answer: B
Difficulty: Easy
118) A restaurant that advertises "the best food and best service in town" uses which form of
positioning?
B) Competitors
Answer: A
27
119) Using another brand to establish product position is which form of positioning?
B) Competitors
Answer: B
Difficulty: Easy
120) If Dominos advertises, "our pizza beat Pizza Hut in a recent taste test," the positioning
approach would be:
A) product attributes.
B) based on competitors.
D) price-quality relationship.
Answer: B
Difficulty: Easy
Skill: Application
121) The product positioning strategy based on value or prestige is the ________ positioning
approach.
B) competitors
Answer: D
Difficulty: Easy
122) When a sandwich chain points out that its meats are sliced in the store while Subway's
meats are sliced in a "factory," the type of positioning being emphasized is:
A) product attributes.
B) competitor.
D) price-quality relationship.
Answer: B
Skill: Application
28
123) Using value or prestige is which form of positioning?
B) Competitors
Answer: D
Difficulty: Easy
124) When Mercedes Benz promises the finest luxury automobile, the positioning approach
being used is:
A) competitors.
B) price-quality relationship.
D) cultural symbol.
Answer: B
Skill: Application
125) The product positioning strategy based on how a product is used is the ________
positioning approach.
B) competitors
Answer: C
Difficulty: Easy
126) Celestial Seasonings focuses on the healthy aspect of its green tea. This is an example of
product positioning by:
A) product user.
B) product class.
D) product attribute.
Answer: D
Skill: Application
29
127) Walmart uses the tagline "save money, live better." This is an example of product
positioning by:
A) product user.
B) price-quality relationship.
D) cultural symbol.
Answer: B
Skill: Application
128) When a product positioning strategy is based on the type of consumer that buys an item, the
________ positioning approach is being used.
A) product user
B) product class
D) cultural symbol
Answer: A
Difficulty: Easy
129) Which form of positioning is based on the type of consumer that buys an item?
A) Product user
B) Product class
D) Cultural symbol
Answer: A
Difficulty: Easy
130) Which form of product positioning strategy is based on a category or type of product?
A) Product user
B) Product class
D) Cultural symbol
Answer: B
Difficulty: Easy
30
131) Stetson cologne has been positioned using a tough, cowboy image, which is an example of
product positioning by:
A) product user.
B) product class.
D) cultural symbol.
Answer: D
Skill: Application
132) Morning Star developed an entire line of non-meat breakfast foods and markets them as a
substitute for breakfast meats, which is an example of product positioning by:
A) product user.
B) product class.
D) cultural symbol.
Answer: B
Skill: Application
133) Product positioning is the perception created in the consumer's mind regarding the nature of
the competition and the external environment.
Answer: FALSE
Difficulty: Easy
134) The quality of products, prices charged, methods of distribution, image, and communication
tactics create a product's position.
Answer: TRUE
135) Product positioning can be based on variables beyond price and quality, such as product
users, product class, and cultural symbols.
Answer: TRUE
Difficulty: Easy
31
136) When Chevrolet markets its products as being as American as apple pie and hot dogs, the
approach uses a product class positioning.
Answer: FALSE
Skill: Application
137) Define product positioning.

Answer: Product positioning is the perception in the consumer's mind of the nature of a
company and its products relative to competitors.
138) What product positioning strategies can a brand use?

Answer: Positioning strategies include attributes, competitors, use or application, price-quality
relationship, product user, product class, and cultural symbol.
139) A local video rental store looking to increase customer traffic in the summer would be an
example of a:
A) target market analysis.
B) product positioning.
C) communications analysis.
D) communications objective.
Answer: D
LO: 4.5 How do the marketing communications objectives interact with the other elements of an
IMC planning process?
32
140) Each of the following is an example of a typical communication objective except:
A) identify competitors.
B) encourage repeat purchases.
C) enhance firm image.
D) change customer beliefs or attributes.
Answer: A
Difficulty: Easy
141) Each of the following is an example of a typical marketing communications objective

except:
A) increase market share.
B) increase the number of products offered.
C) increase profits.
D) increase return on investment.
Answer: B
142) The starting point that is studied in relation to the degree of change following a promotional
campaign is called a:
A) post-hoc analysis.
B) marginal analysis.
C) benchmark measure.
D) standardized measure.
Answer: C
Difficulty: Easy
33
143) Each of the following would be an example of a marketing objective, except:
A) increase market share.
B) meet a targeted return on investment.
C) enhance brand image.
D) increase sales volume.
Answer: C
144) Communication objectives are derived from corporate objectives.

Answer: FALSE
Difficulty: Easy
145) Marketing objectives typically include target sales volume, brand awareness, and brand
image.
Answer: FALSE
146) Benchmark measures are often used to study whether or not a promotional campaign has
been successful.
Answer: TRUE
34
147) A communications budget is based on:
A) communication objectives.
B) marketing objectives.
C) both communication and marketing objectives.
D) a targeted level of return on investment.
Answer: C
Difficulty: Easy
LO: 4.6 How are communications budgets established?
148) Each of the following is a method of determining marketing communications budgets

except:
A) percentage of sales.
B) sales approximation.
C) meet the competition.
D) what we can afford.
Answer: B
Difficulty: Easy
149) Each of the following is a method of determining marketing communications budgets

except:
A) objective and task.
B) payout planning.
C) sales-response analysis.
D) quantitative methods.
Answer: C
Difficulty: Easy
150) Basing a communications budget on sales from the previous year or anticipated sales for the
next year is the which type of budgeting method?
A) Percentage of sales
B) Meet the competition
C) What we can afford
D) Payout planning
Answer: A
Difficulty: Easy
35
151) One of the problems with the percentage of sales budgeting method is:
A) deciding on the percentage level.
B) finding a benchmark figure to use.
C) the budget tends to change in the opposite direction of what may be needed.
D) the competition knows how much the company will spend on advertising.
Answer: C
152) The primary reason companies develop a communications budget using the percentage of
sales method is:
A) it tends to be more accurate than the other methods.
B) the budget tends to change with sales, so as sales increase there is more money available for
communications.
C) money is available for unique marketing opportunities that arise.
D) it is simple to prepare.
Answer: D
153) Basing a budget on what other companies are spending on advertising and communication
is which method?
D) Payout planning
Answer: B
Difficulty: Easy
154) The primary disadvantage of the meet-the-competition method of marketing

communication budgeting is:
A) marketing dollars may not be spent efficiently.
B) there is little flexibility in how marketing dollars can be spent.
C) when sales go down, so does spending.
D) it shows a lack of commitment to marketing.
Answer: A
36
155) If Burger King's advertising manager decides to match McDonald's advertising
expenditures, which type of advertising budget method is being used?
A) Objective and task
D) The percentage of share method
Answer: B
Difficulty: Easy
Skill: Application
156) The primary objective of the meet-the-competition method for developing a marketing
communications budget is to:
A) match the communication budget with sales.
B) ensure marketing dollars are invested where it is most needed.
C) prevent the loss of market share.
D) ensure marketing dollars are allocated appropriately.
Answer: C
157) Which method of developing marketing communications budget is often used in highly
competitive markets where rivalries between competitors are intense?
D) Objective and task
Answer: B
158) Managers who do not recognize the benefits of marketing may be most inclined to use
which method of communications budgeting?
D) Payout planning
Answer: C
37
159) Newer and smaller companies are inclined to use which method when developing
marketing communications budgets?
D) Payout planning
Answer: C
Difficulty: Easy
160) Which method for developing a marketing communications budget links dollars to defined
goals?
Answer: D
Difficulty: Easy
161) If a company's leaders reject a communications budgeting method because it would take too
long to prepare, odds are it is which budgeting method?
Answer: D
162) Which approach to developing a marketing communications budget is often viewed as

being the most effective?
A) Objective and task
B) Percentage of sales
D) Payout planning
Answer: A
38
163) Which method of developing a marketing communications budget establishes a ratio of
advertising dollars to sales or market share then reduces the percentage as sales build and the
product obtains market share?
A) Arbitrary allocation
B) Meet-the-competition
C) Payout planning
D) Quantitative models
Answer: C
164) When using the payout planning method of developing a marketing communications
budget, the larger amounts of dollars would be spent on marketing communications:
A) in the early years to build brand awareness and brand equity.
B) in the middle years to build brand equity and brand preference.
C) in the later years to maintain market share.
D) when the market share is the lowest.
Answer: A
165) When using the payout planning method of developing a marketing communications
budget, the marketing budget would be reduced:
A) at the product's introduction, then increased when brand acceptance occurs.
B) when the brand becomes the market leader.
C) when the brand reaches the point at which additional dollars invested in communications
yields diminishing returns.
D) when the market becomes saturated.
Answer: C
39
166) Which method of developing a marketing communications budget is used when the
marketing budget is reduced as the brand reaches the point that additional dollars invested in
communications yields diminishing returns?
B) Objective and task
C) Payout planning
D) Quantitative methods
Answer: C
167) Which method of developing a marketing communications budget uses computer

simulations to model the relationship between advertising and marketing communications and
sales, profits, and other factors?
A) Meet the competition
B) Objective and task
C) Payout planning
D) Quantitative models
Answer: D
168) In allocating marketing communications, continuous advertising and communications

during the year with bursts of higher intensity at specific times is a ________ schedule.
A) flighting
B) continuous
C) payout
D) pulsating
Answer: D
40
169) Which type of schedule in allocating marketing communications uses continuous
advertising and communications during the year with bursts of higher intensity at specific times?
A) Flighting
B) Continuous
C) Payout
D) Pulsating
Answer: D
170) In allocating marketing communications, communications only during specific times during
the year with periods of no advertising the other times is a ________ schedule.
A) flighting
B) continuous
C) payout
D) pulsating
Answer: A
171) Which type of schedule in allocating marketing communications sends out communications
only during specific times during the year with periods of no advertising other times?
A) Flighting
B) Continuous
C) Payout
D) Pulsating
Answer: A
172) In allocating marketing communications, spending approximately the same amount of

money throughout each month of the year is a ________ schedule.
A) flighting
B) continuous
C) payout
D) pulsating
Answer: B
41
173) Which type of schedule in allocating marketing communications spends approximately the
same amount of money throughout each month of the year?
A) Flighting
B) Continuous
C) Payout
D) Pulsating
Answer: B
174) In allocating its marketing communications budget, weight-loss programs such as Weight
Watchers that advertise primarily during the first of a year would tend to use the ________
schedule.
A) flighting
B) continuous
C) payout
D) pulsating
Answer: A
Skill: Application
175) Which type of schedule in allocating its marketing communications budget would fit
weight-loss programs such as Weight Watchers that advertise primarily during the first part of a
year?
A) Flighting
B) Continuous
C) Payout
D) Pulsating
Answer: A
Skill: Application
42
176) In allocating its marketing communications budget, a ski resort in Colorado would tend to
use the ________ schedule.
A) flighting
B) continuous
C) payout
D) pulsating
Answer: A
Skill: Application
177) Which type of schedule in allocating its marketing communications budget matches a ski
resort in Colorado?
A) Flighting
B) Continuous
C) Payout
D) Pulsating
Answer: A
Skill: Application
178) In allocating its marketing communications budget, a company such as General Electric that
sells kitchen appliances would tend to use the ________ schedule.
A) flighting
B) continuous
C) payout
D) pulsating
Answer: B
Skill: Application
179) Which type of schedule in allocating a marketing communications budget would best match
a company such as General Electric that sells kitchen appliances?
A) Flighting
B) Continuous
C) Payout
D) Pulsating
Answer: B
Skill: Application
43
180) In allocating its marketing communications budget, a company such as Hershey's advertises
all year, but adds additional advertising during holidays, such as Easter. Therefore, Hershey's
would tend to use the ________ schedule.
A) flighting
B) continuous
C) payout
D) pulsating
Answer: D
Skill: Application
181) Which type of schedule in allocating a marketing communications budget would match a
company such as Hershey's that advertises all year, but adds additional advertising during
holidays, such as Easter?
A) Flighting
B) Continuous
C) Payout
D) Pulsating
Answer: D
Skill: Application
182) In terms of developing a communications budget, the percentage of sales method is similar
to the objective and task approach.
Answer: FALSE
Difficulty: Easy
183) When developing a communications budget, the percentage of sales method is similar to the
objective and task approach.
Answer: FALSE
Difficulty: Easy
44
184) The primary reason many companies use the percentage of sales method to prepare
communications budgets is its simplicity.
Answer: TRUE
185) The percentage-of-sales method for budgeting for communications tends to allocate funds
for advertising in the opposite direction from what is needed.
Answer: TRUE
186) Meet-the-competition method of developing a marketing communications budget is often

used in industries with a dominant number one brand.
Answer: FALSE
187) The primary goal of the meet-the-competition method of developing a marketing

communications budget is to prevent the loss of market share.
Answer: TRUE
188) The "what we can afford" method of budgeting for marketing communications is the most
difficult form of communications budget that a company can prepare.
Answer: FALSE
Difficulty: Easy
189) The objective-and-task method of budgeting marketing communications links dollars to

specific sales and profit goals.
Answer: FALSE
Difficulty: Easy
45
190) Many marketers believe that the objective-and-task method of developing a marketing
communications budget is the best method of budgeting.
Answer: TRUE
191) Payout planning is a form of consumer market segmentation.

Answer: FALSE
Difficulty: Easy
192) The payout-planning method of developing a marketing communications budget establishes

a ratio of advertising to sales or market share, and then reduces the ratio as the product reaches
the threshold level and diminishing returns begin to occur.
Answer: TRUE
193) In using the payout-planning method of developing a marketing communications budget, a

higher percentage is allocated to marketing communications in the early years of a product when
the goal is building market share and high profits.
Answer: FALSE
194) Quantitative methods of developing a marketing communications budget rely on computer

models or simulations.
Answer: TRUE
Difficulty: Easy
46
195) A pulsating communications schedule involves continuous advertising and communications
during the year with bursts of higher intensity at specific times.
Answer: TRUE
Difficulty: Easy
196) A flighting communications schedule involves communications only at specific times

during the year with periods of no marketing communications at other times.
Answer: TRUE
197) A continuous campaign schedule involves spending more money during peak times and less
during slow times while maintaining continuous spending throughout the entire year.
Answer: FALSE
198) In terms of developing a communications schedule, a lawn service would tend to use a
continuous schedule method.
Answer: FALSE
Skill: Application
199) When developing a communications schedule, a lawn service would tend to use a
continuous schedule method.
Answer: FALSE
Skill: Application
200) Brands such as Kenmore and Whirlpool that sell kitchen appliances would tend to use a
continuous communications schedule to allocate monies.
Answer: TRUE
Skill: Application
47
201) Identify the various methods that can be used to develop a communications budget.
Answer:
1. Percentage of sales
2. Meet-the-competition
3. What we can afford
4. Objective and task
5. Payout planning
6. Quantitative models
202) In terms of marketing expenditures, companies tend to spend the most, 41 percent, on:
A) media advertising.
B) trade promotions.
C) consumer promotions.
D) direct marketing.
Answer: A
LO: 4.7 What elements are considered in developing an IMC program?
203) In terms of marketing expenditures, service companies tend to spend more on ________
than manufacturers.
A) media advertising
B) trade promotions
C) consumer promotions
D) direct marketing
Answer: A
204) Service companies tend to spend more on which type of marketing than manufacturers?
A) Media advertising
B) Trade promotions
C) Consumer promotions
D) Direct marketing
Answer: A
48
205) In terms of media expenditures, the fastest growing media outlet is:
A) television.
B) digital.
C) magazines.
D) newspapers.
Answer: B
206) Successful ethnic marketing requires:

A) hiring ethnically-owned marketing and advertising agencies.
B) translating English speaking ads into Spanish or native language of the ethnic group.
C) understanding the various ethnic groups and writing marketing communications that speak to
their specific values and cultures.
D) using ethnically-owned media outlets.
Answer: C
AACSB: Diverse and multicultural work environments
207) Successful global integrated marketing communication campaigns include each of the
following tactics except:
A) a standardization approach.
B) understand the international market.
C) create a borderless marketing plan.
D) think globally, but act locally.
Answer: A
208) In terms of global ad spending by media, the largest category is:

A) television.
B) magazines.
C) digital.
D) newspapers.
Answer: A
Difficulty: Easy
49
209) Consumer product manufacturers spend more money on trade promotions directed toward
retailers while service companies spend more money on media advertising.
Answer: FALSE
210) In terms of marketing communication expenditures, the fastest growing media outlet is the
internet.
Answer: TRUE
211) A successful GIMC program utilizes market segmentation adapted to countries and
cultures.
Answer: TRUE
Difficulty: Easy
212) A key to a successful global integrated marketing communications campaign is developing

local partnerships that are familiar with the local language and customs.
Answer: TRUE
AACSB: Diverse and multicultural work environments
213) While a market communications analysis is beneficial in international markets, successful

marketing programs are usually built without the analysis as long as the company's marketers
understand the local culture.
Answer: FALSE
LO: 4.7 What elements are considered in developing an IMC progrm?
50

Chapter 4 The IMC Planning Process: Integrated Advertising, Promotion, and Marketing Communications 8e (Clow/Baack)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 4 The IMC Planning Process: Integrated Advertising, Promotion, and Marketing Communications 8e (Clow/Baack)

Uploaded by

Copyright:

Available Formats

Integrated Advertising, Promotion, and Marketing Communications 8e (Clow/Baack)

Chapter 4 The IMC Planning Process

1) The first step in the IMC planning process is:

2) The three primary approaches used in communications research include:

5) When conducting communications research, each of the following perspectives is typically

6) Using anthropological methods for communications research typically includes:

16) A sociological approach in consumer-oriented research involves direct observation of

19) In consumer-oriented advertising research, advertisers often analyze psychological motives

26) What is the first step in the IMC planning process?

27) What are the components of a communications analysis?

28) Describe product-specific research, consumer-oriented research, and target-market research.

31) Market segments should be internally:

38) Each of the following is a type of demographic segmentation variables except:

39) Level of education is an example of segmentation by:

40) Analysis of buying patterns by gender is an example of segmentation by:

48) The VALS typology is based on which type of segmentation?

53) Geodemographics combines demographic information, geographical information and which

54) Geodemographic segmentation combines each of the following except:

64) A market segment is a set of consumers or businesses with distinct characteristics.

66) A market segment must be financially viable to be useful.

67) Demographics, or population characteristics, can be used to identify market segments.

68) Selling a product specifically to women is a form of psychographic market segmentation.

72) When marketing to children, a company is using generation segmentation.

73) Selling to various ethnic groups is a form of demographic market segmentation.

82) Benefit segmentation is a combination of demographic and psychographic information.

84) What are the characteristics of a viable market segment?

85) What are the major consumer market segments?

86) Demographic segmentation involves analysis of which variables?

88) Describe a usage segmentation approach.

105) The NAICS code helps in geodemographic segmentation programs.

107) One method of business-to-business market segmentation utilizes company size as a

109) Product usage is not normally used as a method of business-to-business market

110) What are the methods of segmenting business-to-business markets?

113) Product positioning is the:

114) Each of the following is possible product positioning strategy except:

137) Define product positioning.

138) What product positioning strategies can a brand use?

141) Each of the following is an example of a typical marketing communications objective

144) Communication objectives are derived from corporate objectives.

148) Each of the following is a method of determining marketing communications budgets

149) Each of the following is a method of determining marketing communications budgets

154) The primary disadvantage of the meet-the-competition method of marketing

162) Which approach to developing a marketing communications budget is often viewed as

167) Which method of developing a marketing communications budget uses computer

168) In allocating marketing communications, continuous advertising and communications

172) In allocating marketing communications, spending approximately the same amount of

186) Meet-the-competition method of developing a marketing communications budget is often

187) The primary goal of the meet-the-competition method of developing a marketing

189) The objective-and-task method of budgeting marketing communications links dollars to

191) Payout planning is a form of consumer market segmentation.

192) The payout-planning method of developing a marketing communications budget establishes

193) In using the payout-planning method of developing a marketing communications budget, a

194) Quantitative methods of developing a marketing communications budget rely on computer

196) A flighting communications schedule involves communications only at specific times

206) Successful ethnic marketing requires:

208) In terms of global ad spending by media, the largest category is:

212) A key to a successful global integrated marketing communications campaign is developing

213) While a market communications analysis is beneficial in international markets, successful

You might also like