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Advertising Promotion and Other Aspects of Integrated Marketing Communications 8th Edition.- Test Bank

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Chapter 1—Overview of Integrated Marketing Communications and the Marcom Process TRUE/FALSE 1. Marketing communications play an important role for all companies. ANS: T PTS: 1 2. According to a recent study, integrated marketing communications is seldom employed by business-to- business marketers. ANS: F PTS: 1 3. The marketing communications component of the marketing mix has decreased dramatically in importance in recent decades. ANS: F PTS: 1 4. Marketing and communications are virtually inseparable. ANS: T PTS: 1 5. The use of marketing communications is not appropriate for organizations delivering not-for-profit services. ANS: F PTS: 1 6. Most marketing communications occur at the brand level. ANS: T PTS: 1 7. The term brand is a convenient (and appropriate) label for describing any object of concerted marketing efforts. ANS: T PTS: 1 8. Brands perform a critical strategic role by providing a key means for differentiating one company’s offering from competitive brands. ANS: T PTS: 1 9. Many companies treat the various communication elements, such as advertising, sales promotions, public relations, and so on, as virtually separate activities rather than integrated tools that work together to achieve a common goal. ANS: T PTS: 1 10. Interactive marketing communications, or simply IMC, is the philosophy and practice of carefully coordinating a brand’s sundry marketing communications elements. ANS: F PTS: 1 11. One reason firms have not practiced IMC is because different units within organizations have specialized in separate aspects of marketing communications. ANS: T PTS: 1 12. One reason firms have not practiced IMC is because outside suppliers, such as advertising, public relations, and promotion agencies, have been reluctant to broaden their function beyond the one aspect of marketing communications in which they have developed expertise and built their reputations. ANS: T PTS: 1 13. In reality, IMC is little more than a management fad that is short lived. ANS: F PTS: 1 14. Novice managers are more likely than experienced managers to practice IMC. ANS: F PTS: 1 15. By closely integrating multiple communication tools and media, brand managers achieve duplicity, which means multiple methods in combination with one another yield more positive communication results than do the tools used individually. ANS: F PTS: 1 16. The integrated marketing communication process starts by determining the strengths and weaknesses of the marketer. ANS: F PTS: 1 17. The IMC approach uses the “inside-out” approach in identifying communication vehicles. ANS: F PTS: 1 18. The use of integrated marketing communications is restricted to the mass media. ANS: F PTS: 1 19. The terms touch point and contact are used interchangeably to mean any message medium capable of reaching target customers and presenting the brand in a favorable light. ANS: T PTS: 1 20. Coordination of messages and media is absolutely critical to achieving a strong and unified brand image and moving consumers to action. ANS: T PTS: 1 21. A positioning statement is the key idea that encapsulates what a brand is intended to stand for in its target market’s mind. ANS: T PTS: 1 22. Successful marketing communication requires building relationships between brands and their consumers/customers. ANS: T PTS: 1 23. One thing that has not changed in marketing communication practices is the dependence on mass media advertising. ANS: F PTS: 1 24. The mixture of communications elements and the determination of messages, media, and momentum are all fundamental decisions in the brand-level marcom decision process. ANS: F PTS: 1 25. The various types of brand-level marcom decisions include fundamental decisions and implementation decisions. ANS: T PTS: 1 26. The objective of marketing communications is to enhance brand equity as a means of moving customers to favorable action toward the brand. ANS: T PTS: 1 27. A brand has no equity if consumers are unfamiliar with it. ANS: T PTS: 1 28. Selection of target segments is a critical step toward effective and efficient marketing communications. ANS: T PTS: 1 29. A brand’s name is the central idea that encapsulates a brand’s meaning and distinctiveness relative to competitive brands in the product category. ANS: F PTS: 1 30. The fundament decisions in the marcom decision process are conceptual and strategic, and the implementation decisions are practical and tactical. ANS: T PTS: 1 31. There is an optimum mixture of expenditures between advertising and promotion that can be determined using computer models. ANS: F PTS: 1 32. Systematic decision making requires that message content be dictated primarily by the media vehicle used to reach the target audience. ANS: F PTS: 1 33. The concept of media is relevant to all marcom tools. ANS: T PTS: 1 34. The ultimate objective of successful marketing communications is to cut costs. ANS: F PTS: 1 35. Purchase intentions are not valid communication measures. ANS: F PTS: 1 MULTIPLE CHOICE 1. 2. 3. 4. 5. The marketing mix for a brand consists of ____. a. product b. price c. promotion d. place e. All of these are correct. ANS: E PTS: 1 Marketing communications is used by which type of organization? a. business-to-business organizations b. consumer marketing organizations c. not-for-profit organizations d. None of these are correct. e. All of these are correct. ANS: E PTS: 1 Which of the following is NOT a form of media advertising? a. television b. radio c. magazines d. sales promotions e. newspapers ANS: D PTS: 1 Coupons, trade shows, buying allowances, premiums, and price-off deals are all examples of ____. a. media advertising b. promotions c. place advertising d. point-of-purchase advertising e. public relations ANS: B PTS: 1 Which term is preferred by most marketing practitioners to refer to the collection of advertising, sales promotions, public relations, event marketing, and other communication devices? a. marketing promotion b. promotion c. sales promotion 6. 7. 8. 9. 10. d. marketing communications e. integrated marketing communications ANS: D PTS: 1 Which of the following terms serves as a summary means for describing all forms of marketing focus? a. product b. brand c. communication 11. ____ is the philosophy and practice of carefully coordinating a brand’s sundry marketing communications elements. a. Interactive marketing b. Branding c. Synergistic marketing communications d. Synergistic marketing e. Integrated marketing communications ANS: E PTS: 1 Which of the following has NOT been a reason for the reluctance to change from a single-function, specialist model to an IMC model? a. no way to assess the effectiveness of integration b. managerial parochialism c. fear that change might lead to possible budget cutbacks in their areas of control d. reluctance of agencies to broaden their function beyond the one aspect of marketing communications in which they have developed expertise and built their reputations e. fear of reduction in authority and power ANS: A PTS: 1 Which of the following statements is true regarding the adoption of IMC? a. Novice managers are more likely than experienced managers to practice IMC. b. Firms involved in marketing services rather than products are more likely to have adopted d. promotion e. integration ANS: B PTS: 1 Which of the following could be a brand? a. product b. service c. retail outlet d. person e. All of these could be a brand. ANS: E PTS: 1 Current marketing philosophy holds that ____ is absolutely imperative for success. a. direct marketing b. e-mail c. coupons d. integration e. assessment ANS: D PTS: 1 12. IMC. c. Business-to-business firms are more likely to adopt IMC than business-to-consumer firms. d. Less sophisticated firms are likely adherents to IMC. e. All of these are true regarding the adoption of IMC. ANS: B PTS: 1 Milo is employed by a manufacturer of consumer packaged goods products. His job entails the planning, creation, integration, and implementation of diverse forms of marcom, such as advertising, sales promotion, publicity releases, events, etc., that are delivered over time to a brand’s targeted customers and prospects with the ultimate goal of influencing or directly affecting their behavior. Milo is performing ____. a. integrated marketing (IM) b. marketing communications (marcom) c. integrated marketing communications (IMC) d. promotion marketing (PM) e. integrated promotion management (IPM) ANS: C PTS: 1 The ultimate goal of integrated marketing communications is to ____. a. increase brand awareness b. affect the behavior of the targeted audience c. learn how to outsell the competition d. lower production costs e. All of these are correct. ANS: B PTS: 1 What is achieved when multiple methods are used in combination with one another yielding more positive communication results than when the tools are used individually? a. synergy b. duplicity c. multiplicity 13. 14. 15. d. redundancy e. repetition ANS: A PTS: 1 16. Which of the following is NOT a key feature of IMC? a. The customer represents the starting point for all marketing communications activities. b. Brand managers and their agencies should be amenable to using various marketing communication tools. c. Multiple messages must speak with a single voice. d. The ultimate goal is to influence brand awareness and enhance consumer attitudes toward the brand. e. Build relationships. ANS: D PTS: 1 A key feature of IMC is that the process should ____. a. use an “inside-out” approach b. be restricted to only one or a select number of communication media c. use the same media to reach all target audiences to improve efficiency d. start with the customer or prospect and then work back to the brand communicator in 17. 18. 19. 20. 21. determining the most appropriate messages and media e. utilize the same communication media over time ANS: D PTS: 1 Which approach will best serve the customers’ information needs and motivate them to purchase the brand? a. inside-out b. outside-in c. top-down d. bottom-up e. combination ANS: B PTS: 1 Today, consumers are not only passive receivers of marcom messages, but are often active participants in the marcom process due to ____. a. economic advances b. technological developments c. increases in the use of sales promotion d. changes in demographics e. expansion of advertising agency services ANS: B PTS: 1 Brand managers should turn to alternative means of marcom as the option of first choice rather than automatically defaulting to ____. a. sales promotion b. personal selling c. point-of-purchase advertising d. event marketing e. mass media advertising ANS: E PTS: 1 Which of the following terms is used to mean any message medium capable of reaching target customers and presenting the brand in a favorable light? a. touch point b. contact c. intersection d. touch point and contact e. touch point, contact, and intersection ANS: D PTS: 1 The idea of surrounding the customer or prospect with a brand’s marcom messages, or that a brand’s touch points should be everywhere the target audience is, is known as: a. consumer-oriented marketing b. the media-neutral approach c. 360-degree branding d. the rotation principle e. event marketing ANS: C PTS: 1 22. The marketing manager for Carver Products, Inc. asked her research staff to identify all of the points of contact that consumers are likely to have with Carver’s products. The marketing manager would most likely use this information in designing a(n) ____. a. point-of-purchase display b. board of director’s report c. integrated marketing communications program d. marketing research survey e. slice-of-life television commercial ANS: C PTS: 1 The context (or medium used) influences the ____ that the message has. a. impact b. reach c. frequency 23. 24. 25. d. integration e. touch points ANS: A PTS: 1 26. The idea that “context matters,” and that not all touch points are equally effective, has been termed ____ by marcom practitioners. a. synergy b. media mix c. awareness generation d. engagement e. contact ANS: D PTS: 1 What does the phrase, “speak with a single voice,” mean? a. Carefully select those tools that are most appropriate for the communications objective at hand. b. Reach the target audience efficiently and effectively using whatever touch points are most appropriate. c. Successful marketing communications requires building relationships between brands and their consumers/customers. d. All marketing communication elements should use the same endorser so that consumers do not get confused. e. Coordination of messages and media is absolutely critical to achieving a strong and unified brand image and moving consumers to action. ANS: E PTS: 1 Karen is attempting to put into words the key idea that encapsulates what her company’s brand is intended to stand for in its target market’s mind. Karen is writing a ____. a. relationship statement b. creative brief c. positioning statement d. contact brief e. touch point ANS: C PTS: 1 27. Which of the following encapsulates what a brand is intended to stand for in its target market’s mind and then consistently delivers the same idea across all media channels? a. positioning statement b. contact point c. relationship statement d. creative brief e. creative platform ANS: A PTS: 1 A key characteristic of IMC is the building of relationships with customers. Which of the following is NOT a benefit of building relationships? a. repeat purchases b. loyalty toward a brand c. enduring links between a brand and its customers d. greater profitability e. huge acquisition costs ANS: E PTS: 1 The fact that it costs five to 10 times more to land a new customer than to keep a current customer has been compared to a(n) ____. a. clogged drain b. leaky bucket c. sand castle 28. 29. 30. 31. d. ice sculpture e. bee hive ANS: B PTS: 1 32. Frequency, loyalty, or ambassador programs and creating brand experiences that make positive and lasting impressions are ways to ____. a. speak with one voice b. create synergy c. build customer/brand relationships d. start with the customer/prospect e. reach consumers who cannot be reached through traditional mass media ANS: C PTS: 1 One way relationships between brands and customers are nurtured is by creating brand experiences that make positive and lasting impressions. This is done by creating special events or developing exciting venues that attempt to ____. a. appeal to consumers’ demographic characteristics b. reposition products or services by connecting with consumers’ functional needs c. generate increased sales to current customers d. develop new target markets e. build the sensation that the brand is relevant to the consumer’s lifestyle ANS: E PTS: 1 The ultimate objective of IMC is to ____. a. start with the customer or prospect b. move people to action c. carefully select those tools that are most appropriate for the communications objective at 33. 34. hand d. use as many communications outlets as possible to reach the target audience e. speak with a single voice ANS: B PTS: 1 Which of the following is NOT a change in marketing communication practices? a. increased reliance on outside suppliers, or specialized services b. reduced dependence on mass media advertising c. increased reliance on highly targeted communication methods d. heightened demands on suppliers e. increased efforts to assess communications’ return on investment ANS: A PTS: 1 When counseling its clients in selecting appropriate marcom tools, McCann Worldgroup uses an approach that requires that the brand marketer first identify the goal(s) a marcom program is designed to accomplish and then identify the best way to allocate the marketer’s budget. What is this approach known as? 35. 36. 37. What is the greatest obstacle to implementing integrated marketing communications? a. There is a lack of interest in IMC by top management. b. The cost for implementing an IMC program is difficult to justify. c. Little can be gained by coordinating the various marketing communications elements. d. Few providers of marketing communication services have the far-ranging skills to plan and execute programs that cut across all major forms of marketing communications. e. Measuring the return on investment is nearly impossible. ANS: D PTS: 1 Which of the following is a fundamental decision in the brand-level marcom decision process? a. targeting b. positioning c. setting objectives d. budgeting e. All of these are fundamental decisions. ANS: E PTS: 1 Which of the following is an implementation decision in the brand-level marcom decision process? a. targeting b. mixing elements c. budgeting a. inside-out b. bottom-up c. media-neutral d. media-centric e. goal oriented ANS: C PTS: 1 d. positioning e. setting objectives ANS: B PTS: 1 38. Julie and her department are responsible for making brand-level fundamental and implementation marcom decisions. What are the expected outcomes of these decisions? a. increasing sales and profits b. enhancing brand awareness and attitudes c. enhancing brand equity and affecting behavior d. increasing purchase intentions and affecting behavior e. enhancing brand equity and increasing brand awareness ANS: C PTS: 1 The objective of marketing communications is to ____ as a means of moving customers to favorable action toward the brand. a. increase brand awareness b. cut costs c. increase product usage d. enhance brand equity e. increase the rate of purchase ANS: D PTS: 1 ____ allows marketing communicators to deliver messages more precisely and to prevent wasted coverage to people falling outside the intended audience. a. Targeting b. Positioning c. Budgeting 39. 40. 41. 42. 43. d. Setting objectives e. Momentum ANS: A PTS: 1 Which of the following variables do companies use to identify potential target markets? a. demographic characteristics b. lifestyles c. product usage patterns d. geographic considerations e. All of these are variables used. ANS: E PTS: 1 A brand’s ____ represents the key feature, benefit, or image that it stands for in the target audience’s collective mind. a. equity b. image c. position d. name e. trademark ANS: C PTS: 1 Which of the following is NOT a budgeting method? a. top-down budgeting (TD) b. bottom-up budgeting (BU) c. top-down/bottom-up/top-down process (TDBUTD) d. bottom-up/top-down process (BUTD) e. top-down/bottom-up process (TDBU) 44. Joan Kaufman is a senior manager of a large conglomerate. She decides how much money is allocated to each subunit. This is an example of ____ budgeting. a. top-down b. bottom-up c. bottom-up/top-down d. top-down/bottom-up e. hierarchy ANS: A PTS: 1 The most frequently used budgeting method is ____. a. top-down (TD) b. bottom-up (BU) c. top-down/bottom-up/top-down (TDBUTD) d. bottom-up/top-down (BUTD) e. top-down/bottom-up (TDBU) ANS: D PTS: 1 John is a subunit manager at a large consumer packaged goods manufacturer. Every year, he submits a budget request to the vice president of marketing, who coordinates the various requests and then submits an overall budget to top management for approval. This is an example of ____ budgeting. a. top-down b. bottom-up c. top-down/bottom-up d. bottom-up/top-down e. combination ANS: D PTS: 1 All marketing communications should be ____. a. directed to a particular target market b. clearly positioned c. created to achieve a specific objective d. undertaken to accomplish the objective within budget constraints e. All of these answers are correct. ANS: E PTS: 1 Fundamental decisions in the brand-level marcom decision process are ____, and implementation decisions are ____. a. tactical; strategic b. strategic; tactical c. long-term; short-term d. short-term; long-term e. practical; conceptual ANS: B PTS: 1 Over the past two decades, the trend has moved toward greater expenditures on ____. a. advertising b. public relations c. personal selling 45. 46. 47. 48. 49. ANS: C PTS: 1 50. d. promotions e. point-of-purchase displays ANS: D PTS: 1 The decision regarding how to allocate resources between the marcom elements has been described as an “ill-structured” problem. What does this mean? a. There is no solution to the problem. b. It is difficult to define the problem. c. There is no way of determining the mathematical optimum allocation among marcom elements. d. There are solutions, but they are not acceptable. e. There is no way to measure whether the solution chosen was the correct one. ANS: C PTS: 1 For a given level of expenditure, there is no way of determining the mathematical optimum allocation between advertising and promotion because ____. a. advertising and promotions are somewhat interchangeable b. advertising and promotions produce a synergistic effect c. advertising is appropriate for early stages of the product life cycle, and promotion is more appropriate during later stages d. they are somewhat interchangeable and produce a synergistic effect e. None of these answers are correct. ANS: D PTS: 1 Allison is trying to determine how much to allocate for advertising and how much to allocate for promotions during the next year. Which implementation decision is Allison making? a. mixing elements b. creating messages c. selecting media d. establishing momentum e. targeting ANS: A PTS: 1 A satisfactory mixture of advertising and promotion expenditures can be formulated by considering the different purposes of each. A key strategic consideration is whether ____. a. short- or long-term goals are more important b. the budget would allow for the relatively larger expense of advertising c. the organization has the expertise in its current staff to develop successful promotions d. the majority of the target market is price sensitive e. use of sales promotion is necessary given current economic conditions ANS: A PTS: 1 The term media applies to which marcom tool? a. advertising b. public relations c. promotions d. personal selling e. All of these answers are correct. ANS: E PTS: 1 51. 52. 53. 54. 55. 56. The word ____ refers to an object’s force or speed of movement. a. drive b. push c. momentum 57. 58. 59. Harvey is a brand manager for a national brand of soft drinks. He is making the implementation decisions in the marcom decision process, and he wants a marcom tool that is most capable of directly affecting consumer behavior. Which tool should he use? a. advertising b. sales promotion c. publicity d. events e. point-of-purchase display ANS: B PTS: 1 Which of the following is an example of a communication outcome? a. increase sales to grocery stores by 10 percent b. increase total sales by 15 percent c. maintain existing sales levels in Japan d. increase brand awareness by 15 percent e. increase sales in Mexico by 15 percent ANS: D PTS: 1 Which of the following is NOT a communications outcome measure? a. purchase intentions b. brand awareness c. message comprehension d. attitude toward the brand e. All of these are measures of communication outcomes. ANS: E PTS: 1 Program evaluation is accomplished by ____. a. developing a budget that is based on marcom objectives and includes an optimum balance of advertising and promotion b. measuring the results of marcom efforts against the objectives that were established c. collecting data on consumers’ demographics and lifestyles d. constructing a database of information on the target market, economic conditions, and competitors’ marcom strategies e. comparing budgeted marcom expenditures against share-of-voice ANS: B PTS: 1 One important factor that has led more firms to perform research and acquire data to determine whether implemented marcom decisions have accomplished the objectives they were expected to achieve is ____. a. increasing demand for accountability b. rapidly changing consumer tastes and preferences c. changing economic conditions 60. d. force e. pull ANS: C PTS: 1 d. increasing marcom expenses e. less reliance on outside agencies to perform the marcom function ANS: A PTS: 1 ESSAY 1. Compare and contrast the terms promotion and marketing communications, and list the primary tools of marketing communications. ANS: The “4P” characterization of marketing has led to widespread use of the term promotion for describing communications with prospects and customers. However, the term marketing communications is preferred by most marketing practitioners as well as many educators and is the term used to refer to the collection of advertising, sales promotion, public relations, event marketing, and other communication devices; comparatively, the text uses the term promotions as a shorthand reference to sales promotions. The primary tools of marketing communications include media advertising (e.g., TV, radio, magazines, newspapers), direct response and interactive advertising (e.g., direct mail, telephone solicitation, online advertising), place advertising (e.g., billboards and bulletins, posters, transit ads, cinema ads), store signage and point-of-purchase advertising (e.g., external store signs, in-store shelf signs, shopping cart ads, in-store radio and TV), trade- and consumer-oriented promotions (e.g., trade deals and buying allowances, display and advertising allowances, trade shows, cooperative advertising, samples, coupons, premiums, refunds/rebates, contests/sweepstakes, promotional games, bonus packs, price-off deals), and event marketing and sponsorships (e.g., sponsorship of sporting events, arts, fairs, festivals, and causes). PTS: 1 2. Describe the basic philosophy underlying integrated marketing communications (IMC), and discuss reasons why firms have not practiced IMC all along and why there is a reluctance to change. ANS: The philosophy underlying IMC is the careful coordination of a brand’s sundry marketing communications elements. The reasons firms have not practiced IMC all along include: (1) organizations have handled advertising, sales promotions, point-of-purchase displays, and other communication tools as virtually separate practices because different units within organizations have specialized in separate aspects of marketing communications and (2) outside suppliers (i.e., advertising agencies, PR agencies, and sales promotion agencies) also have tended to specialize in single facets of marketing communications rather than possess expertise across the board. There has been a reluctance to change from this single-function, specialist model due to managerial parochialism (e.g., advertising people sometimes view the world exclusively from an advertising perspective and are blind to other communication traditions) and for fear that change might lead to budget cutbacks in their areas of control and reductions in their authority and power. Agencies also have resisted change due to reluctance to broaden their function beyond the one aspect of marketing communications in which they have developed expertise and built their reputations. PTS: 1 3. Explain what the payoff is from using integrated marketing communications. ANS: The payoff is that by closely integrating multiple communications tools and media, brand managers achieve synergy. That is, multiple methods in combination with one another yield more positive communication results than do the tools used individually. PTS: 1 4. Explain the five key features that undergird the philosophy and practice of integrated marketing communications. ANS: The five key IMC features are: 1. The customer represents the starting point for all marketing communications activities. The IMC approach avoids an “inside-out” approach (from company to customer) in identifying communication vehicles and instead starts with the customer (“outside-in”) to determine those communication methods that will best serve the customers’ information needs and motivate them to purchase the brand. The point of this feature is that brand managers and their agencies should not restrict themselves to only one set of communication media. 2. Brand managers and their agencies should be amenable to using various marketing communication tools. That is, carefully select those tools that are most appropriate for the communications objective at hand. Practitioners of IMC need to be receptive to using all forms of touch points, or contacts, as potential message delivery channels. The key feature of this IMC element is that it reflects a willingness on the part of brand communicators to use any communication outlets that are appropriate for reaching the target audience. 3. Multiple messages must speak with a single voice. Inherent in the philosophy and practice of IMC is the demand that a brand’s assorted communication elements must all strive to present the same message and convey that message consistently across diverse message channels, or points of contact. Coordination of messages and media is absolutely critical to achieving a strong and unified brand image and moving consumers to action. In general, the single-voice principle involves selecting a specific positioning statement for a brand. 4. Build relationships rather than engage in flings. A relationship is an enduring link between a brand and its customers. Successful relationships between customers and brands lead to repeat purchasing and perhaps even loyalty toward a brand. One way to build brand/customer relationships is the use of frequency, loyalty, or ambassador programs. Relationships also are nurtured by creating brand experiences that make positive and lasting impressions, such as special events. 5. Don’t lose focus of the ultimate objective: affect behavior! Marketing communications must do more that just influence brand awareness or enhance consumer attitudes toward the brand. The objective, in other words, is to move people to action. PTS: 1 5. Discuss the changes in marketing communication practices that have been particularly prominent. ANS: 1. Reduced dependence on mass media advertising. Many brand managers and their agencies have reduced the role of TV advertising, partially due to the fact that it is not as effective or cost efficient as it once was due to audience fragmentation and the availability of many alternative entertainment options. Moreover, other advertising and non-advertising communication tools often are superior to TV in achieving brand managers’ objectives. 2. Increased reliance on highly targeted communication methods. Pinpointed communications are often less expensive and more effective than mass media advertising. Targeting messages is especially feasible today with the large, up-to-date databases of customers that are maintained by many organizations. 3. Heightened demands on suppliers. Now it is increasingly important for suppliers to offer multiple services, which explains why some major advertising agencies have expanded their offerings beyond just advertising services to include sales promotion assistance, public relations, direct marketing, and event marketing support. 4. Increased efforts to assess communications’ return on investment. Systematic efforts are demanded to determine whether communication programs yield a reasonable return on their investment. The investment in marketing communications must be assessed in terms of the profit-to-investment ratio to determine whether changes are needed or whether other forms of investment might be more profitable. PTS: 1 6. Debra is the brand manager for Tide laundry detergent, marketed by Procter & Gamble, and she is making the brand-level fundamental decisions in the marcom decision process. Discuss what she will be considering. ANS: The fundamental decisions in the brand-level marcom decision process include: 1. Targeting. Targeting allows marketing communicators to deliver messages more precisely and to prevent wasted coverage to people falling outside the intended audience. Selection of target segments is a critical step toward effective and efficient marketing communications. Companies identify potential target markets in terms of demographic characteristics, lifestyles, product usage patterns, and geographic considerations. Meaningful market segments generally represent consumers who share a combination of characteristics and demonstrate similar behavior. 2. Positioning. A brand’s position represents the key feature, benefit, or image that it stands for in the target audience’s collective mind. Debra must decide on Tide’s positioning statement, which is the central idea that encapsulates the brand’s meaning and distinctiveness vis-a-vis competitive brands in the laundry detergent category. 3. Setting Objectives. Marketing communicators’ decisions are grounded in the underlying goals, or objectives, to be accomplished for a brand. 4. Budgeting. Financial resources are budgeted to specific marcom elements to accomplish desired objectives. Different budgeting methods include top-down budgeting (TD), bottom-up budgeting (BU), or a combination of the two (BUTD or TDBU). PTS: 1 Chapter 2—Marketing Communications Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable TRUE/FALSE 1. A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or groups of sellers and to differentiate them from those of competition. ANS: T PTS: 1 2. All organizations and their products can be considered brands. ANS: T PTS: 1 3. The concept of brand equity is considered only from the perspective of the customer. ANS: F PTS: 1 4. Brand equity occurs when the consumer considers two competing brands to be similar. ANS: F PTS: 1 5. A firm-based viewpoint of brand equity focuses on outcomes extending from efforts to enhance a brand’s value to is various stakeholders. ANS: T PTS: 1 6. Revenue premium is defined as the revenue differential between a branded item and a corresponding private labeled brand. ANS: T PTS: 1 7. Many private-label products possess levels of quality that are equivalent to manufacturers’ national brands. ANS: T PTS: 1 8. From the perspective of the customer, brand preference is the basic dimension of brand equity. ANS: F PTS: 1 9. Brand equity from the customer’s perspective consists of two forms of brand-related knowledge: brand awareness and brand image. ANS: T PTS: 1 10. Brand image is an issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked. ANS: F PTS: 1 11. A brand has no equity if consumers are unfamiliar with it. ANS: T PTS: 1 12. Brand recall reflects a relatively superficial level of awareness, whereas brand recognition indicates a deeper form of awareness. ANS: F PTS: 1 13. The marcom imperative is to move brands from a state of unawareness, to recognition, on to recall, and ultimately to top-of-mind awareness (TOMA). ANS: T PTS: 1 14. Brand image can be thought of in terms of the types of associations that come to the customer’s or consumer’s mind when contemplating a particular brand. ANS: T PTS: 1 15. Brand associations can be conceptualized in terms of type, favorability, strength, and uniqueness. ANS: T PTS: 1 16. Research has identified ten personality dimensions that describe most brands. ANS: F PTS: 1 17. Brands scoring high on the sincerity dimension are considered reliable, intelligent, and successful. ANS: F PTS: 1 18. The objective of marketing communication is to deemphasize brand equity. ANS: F PTS: 1 19. By trying and using brands, consumers learn how good (or bad) they are and what benefits they are (in)capable of delivering, which is known as the leveraging approach to enhancing brand equity. ANS: F PTS: 1 20. Marketing communicators draw meaning form the culturally constituted world and transfer that meaning to consumer goods. ANS: T PTS: 1 21. A brand can leverage associations by connecting itself with other brands, places, things, and people. ANS: T PTS: 1 22. Co-branding occurs when two or more brands enter into a partnership that potentially serves to enhance both brands’ equity and profitability. ANS: T PTS: 1 23. A potential downside for the host brand with respect to ingredient branding is that the equity of the ingredient brand might be so great that it overshadows the host brand. ANS: T PTS: 1 24. One major by-product of efforts to increase a brand’s equity is that consumer brand loyalty might also increase, which in turn, could positively influence long-term growth and profitability. ANS: T PTS: 1 25. The EquiTrend survey asks respondents to rate a number of brands in terms of two dimensions: quality and salience. ANS: T PTS: 1 26. Successful brands employ just one or two marcom tools in order to satisfy the brand’s positioning strategy. ANS: F PTS: 1 27. One trait shared by the world’s strongest brands is that the company monitors sources of brand equity through ongoing brand audits or tracking studies. ANS: T PTS: 1 28. Enhancing brand equity is a means of moving customers to favorable action toward the brand. ANS: T PTS: 1 29. The vast majority of marketing executives and marketing academics are against gauging the effect of marcom efforts in terms of the return on marketing investment, or ROMI, because it is almost impossible to measure. ANS: F PTS: 1 30. Measuring marcom effectiveness is relatively simple, and most organizations are currently doing a sophisticated job of doing so. ANS: F PTS: 1 31. One difficulty with measuring marcom effectiveness is the identification of an appropriate measure, or metric, of effectiveness. ANS: T PTS: 1 32. Whatever the measure chosen, any effort to meaningfully assess marcom performance requires having data that are reliable and valid. ANS: T PTS: 1 33. A technique called promotion-mix modeling is increasingly being used to determine the relative effect each marcom program element has on sales volume compared to the effects of other elements. ANS: F PTS: 1 34. Marketing-mix modeling employs multivariate regression analysis to estimate the effects that the various advertising and promotion elements have in driving sales volume. ANS: T PTS: 1 35. To employ marketing-mix modeling, a relatively long series of longitudinal data (i.e., two-year period) is required. ANS: T PTS: 1 MULTIPLE CHOICE 1. 2. 3. 4. 5. A ____ is a name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers to differentiate them from those of competition. a. trademark b. market c. tradename d. brand e. guarantee ANS: D PTS: 1 A ____ is everything that one company’s particular offering stands for in comparison to competitors’ offerings. a. trademark b. logo c. symbol d. brand e. sign ANS: D PTS: 1 The concept of brand equity is considered from which perspective? a. from the perspective of the organization that owns the brand b. from the vantage point of the customer c. from the perspective of the other brands in the product category d. aandb e. a,b,andc ANS: D PTS: 1 From the perspective of the firm that owns the brand, which of the following is a positive outcome of increased brand equity? a. higher market share b. increased brand loyalty c. ability to charge premium prices d. earning a revenue premium e. all of the above ANS: E PTS: 1 As a brand’s equity increases, its elasticity of demand ____. a. becomes less elastic 6. 7. b. becomes more elastic c. becomes less inelastic d. remains constant e. increases ANS: A PTS: 1 The revenue differential between a branded item and a corresponding private labeled item is known as 8. 9. 10. A research study involving McDonald’s products discovered a new form of firm-based brand equity that has been labeled ____ brand equity. a. name-recognition b. taste-premium c. market-share ____. a. market premium b. price premium c. revenue premium d. profit premium e. equity premium ANS: C PTS: 1 Tide laundry detergent is a well known brand that sells for approximately $8.00 for a 64 ounce bottle, and Procter & Gamble usually sells 2 million of these sizes each year. An average private label store brand costs $6.00 for the same size, and typically 1 million are sold each year. What is Tide’s revenue premium? a. $2.00 b. $1 million c. $6 million d. $10 million e. $16 million ANS: D PTS: 1 d. revenue-premium e. price-premium ANS: B From the the brand a. brand b. brand c. brand d. brand e. brand ANS: D PTS: 1 perspective of the customer or consumer, ____ is the extent to which they are familiar with and have stored in their memory favorable, strong, and unique brand associations. awareness image preference equity effectiveness PTS: 1 Brand equity from the customer’s perspective consists of ____. a. brand awareness and brand image b. brand awareness and brand preference c. brand image and brand insistence d. brand image and brand tolerance e. brand awareness and brand tolerance 11. ____ refers to the extent to which a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked. a. Brand image b. Brand awareness c. Brand loyalty 12. 13. 14. 15. 16. The basic dimension of brand equity is ____. a. brand image b. brand preference c. brand tolerance ANS: A PTS: 1 d. Brand preference e. Brand knowledge ANS: B PTS: 1 d. brand insistence e. brand awareness ANS: E PTS: 1 What is the initial challenge for new brands? a. achieving brand awareness b. enhancing brand image c. achieving brand preference d. achieving brand insistence e. building revenue premium ANS: A PTS: 1 Brand ____ reflects a relatively superficial level of awareness, whereas brand ____ indicates a deeper form of awareness. a. image; equity b. equity; image c. recognition; recall d. recall; recognition e. associations; image ANS: C PTS: 1 Bill is given a list of brands of shaving products by a researcher and is asked to mark all those that he is aware of. Which level of awareness is this assessing? a. recall b. recognition c. aided recall d. unaided recall e. positive awareness ANS: B PTS: 1 Maria is asked by a market researcher to list all the brands of toothpaste she can think of. Which type of awareness is this assessing? a. recall b. recognition c. positive awareness 17. 18. d. free-association awareness e. aided recognition ANS: A PTS: 1 The pinnacle of brand-name awareness that exists when your company’s brand is the first brand that consumers recall when thinking about brands in a particular product category is known as ____. a. top-of-category awareness (TOCA) b. recognition c. tip-of-the-tongue awareness (TOTA) d. top-of-mind awareness (TOMA) e. top-of-class awareness (TOCA) ANS: D PTS: 1 Which of the following statements is true regarding brand awareness? a. Only consumer-oriented (B2C) firms must be concerned with building brand awareness. b. Most consumers are able to retrieve a brand name from memory without any reminders. c. There are two levels of brand awareness: primary and secondary. d. Brand recall reflects a relatively superficial level of awareness, whereas brand recognition indicates a deeper form of awareness. e. Although building brand awareness is a necessary step toward brand equity enhancement, it is insufficient. ANS: E PTS: 1 The types of associations that come to the consumer’s mind when contemplating a particular brand is 19. 20. 21. known as ____. a. brand image b. brand equity c. brand awareness d. brand cognitions e. brand parity ANS: A PTS: 1 Maria is asked by a market researcher to tell him the particular thoughts and feelings she has about Starbuck’s coffee. A particular thought or feeling that comes to Maria’s mind is known as a(n) ____. a. brand dimension b. cognition c. brand link d. association e. think-feel linkage ANS: D PTS: 1 Brand associations can be conceptualized in terms of ____. a. type b. favorability c. strength d. uniqueness e. all of the above ANS: E PTS: 1 22. Research has identified ____ dimensions that seem to capture the personalities of a variety of 23. 24. 25. Which of the following is NOT a personality dimension that describes most brands? a. sincerity b. excitement c. competence 26. 27. Luxury items, such as Rolex watches, generally score high on which brand-related personality consumer brands. a. four b. five c. six d. seven e. eight ANS: B PTS: 1 d. innocence e. ruggedness ANS: B PTS: 1 This dimension includes brands that are down-to-earth, honest, wholesome, and cheerful. a. excitement b. sophistication c. competence d. sincerity e. ruggedness ANS: D PTS: 1 Toyota automobiles are regarded by consumers as reliable, intelligent, and successful. The levels of satisfaction of Toyota owners is at or near the top of satisfaction ratings. Which brand-related personality dimension best describes Toyota? a. excitement b. competence c. sophistication d. ruggedness e. innocence ANS: B PTS: 1 dimension? a. Sincerity b. Excitement c. Competence d. Sophistication e. Ruggedness ANS: D PTS: 1 Which personality dimension has General Motors attempted to create for its repair services through its hypothetical “Mr. Goodwrench,” who represents the name and “face” of the trained technicians who work in thousands of GM dealerships? a. sincerity b. excitement c. competence 28. 29. 30. 31. 32. d. sophistication e. ruggedness ANS: A PTS: 1 What is necessary to create favorable, strong, and unique associations about a brand? a. heavy mass media advertising b. co-branding c. sustained marketing communications d. ingredient-branding e. brand preference ANS: C PTS: 1 Which of the following is NOT an approach by which brand equity is enhanced? a. brand awareness approach b. speak-for-itself approach c. message-driven approach d. leveraging approach e. all of the above are approaches by which brand equity is enhanced ANS: A PTS: 1 Consumers learn how good (or bad) a brand is and what benefits it is (in)capable to delivering by trying and using a brand. Which approach to enhancing brand equity is this known as? a. message-driven approach b. leveraging approach c. trial-and-error approach d. speak-for-itself approach e. initial approach ANS: D PTS: 1 In which approach to enhancing brand equity do marcom practitioners attempt to build advantageous associations through creative, attention getting, and believable messages? a. speak-for-itself approach b. message-driven approach c. leveraging approach d. shotgun approach e. cast-a-wide-net approach ANS: B PTS: 1 Brand associations can be shaped and equity enhanced through marketing communications that associate the brand with people, places, and “things” that are available to consumers. This approach is known as the ____. a. speak-for-itself approach b. message-driven approach c. leveraging approach d. culturally constituted approach e. meaning transfer approach ANS: C PTS: 1 People learn cultural values, form beliefs, and become familiar with the physical manifestations, or artifacts, of these values and beliefs through ____. 33. 34. 35. 36. 37. When a marketing communicator connects a consumer good with a representation of the culturally constituted world, s/he is engaging in ____. a. lifestyle marketing b. sales promotion c. socialization d. point-of-purchase advertising e. meaning transfer ANS: E PTS: 1 Marketing communicators ____ meaning and create associations for their brands by connecting them with other objects that already possess well-known meaning. a. promote b. locate c. leverage 38. Which of the following is a source by which brand meaning can be leveraged? a. other brands b. places c. things d. people a. marcom b. media exposure c. socialization d. brand awareness e. active synthesis ANS: C PTS: 1 d. advertise e. obtain ANS: C PTS: 1 Which marcom tool is an especially important instrument of meaning transfer? a. sales promotion b. personal selling c. advertising d. public relations e. frequency programs ANS: C PTS: 1 Lee Michaels is a national chain jewelry store found in many malls across the U.S. Laurie went in to look at the watches, but she was unfamiliar with some of the brands. The salesperson told her that they were all Swiss-made, meaning they were made in Switzerland, which is known worldwide for the quality of the timepieces produced there. From which source are these brands leveraging their brand meaning? a. other brands b. people c. places d. things e. names ANS: C PTS: 1 39. 40. e. all of the above ANS: E PTS: 1 When two or more brands enter into a partnership that potentially serves to enhance both brands’ equity and profitability, ____ has occurred. a. cross-branding b. a branding alliance c. multi-branding d. family-branding e. house-branding ANS: B PTS: 1 Kellogg’s, a cereal manufacturer, and Disney and Pixar have partnered in brands of cereal targeted to children that are named after their movies, such as Finding Nemo and The Incredibles. What is this alliance known as? a. cross-branding b. ingredient branding c. family-branding d. branding e. multi-branding ANS: D PTS: 1 The most important requirement for co-branding is that ____. a. there is a logical fit between the two brands b. the two brands are similar in price c. the two products are not directly competing against each other d. the two products have the same target market e. the two products are manufactured by the same firm ANS: A PTS: 1 An example of ____ is the sticker on a Dell computer that says “Intel Inside.” a. cross-branding b. multi-branding c. reference branding d. ingredient branding e. planned branding ANS: D PTS: 1 The EquiTrend survey asks respondents to rate a number of brands in terms of which two dimensions? a. quality and preference b. awareness and image c. quality and salience d. image and quality e. image and preference ANS: C PTS: 1 Creating and increasing brand loyalty results in a corresponding increase in the value of the ____. a. firm b. target market c. product position 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. d. market share e. trustmark ANS: E PTS: 1 Which of the following is NOT a trait shared by the world’s strongest brands? a. The brand excels at delivering the benefits customers truly desire. b. The brand stays relevant. c. The pricing system is based on consumers’ perceptions of value. d. The brand relies on mass media advertising to satisfy the brand’s positioning strategy. e. The brand portfolio and hierarchy make sense. ANS: D PTS: 1 One trait shared by the world’s strongest brands is that the brand’s managers understand what the brand means to ____. a. the news media b. competitors c. customers d. them e. stock analysts ANS: C PTS: 1 The objective of marketing communications is to enhance brand equity as a means of ____. a. defining the marketing mix b. moving customers to favorable action toward the brand c. increasing short-term sales d. reducing the advertising budget e. reducing the promotional budget ANS: B PTS: 1 From the marketer’s standpoint, marcom’s objective is to ultimately affect ____. a. brand equity b. brand awareness c. brand image d. sales volume and revenue e. investment ANS: D PTS: 1 The effect of marcom, or of its specific elements such as advertising, can be gauged in terms of whether it generates a reasonable ____. a. return on marketing investment (ROMI) b. return on customer investment (ROCI) c. return on equity investment (ROEI) d. return on brand investment (ROBI) e. return on sales investment (ROSI) ANS: A PTS: 1 Which of the following is a motivation underlying the increased focus on measuring marketing performance? a. greater demands for accountability on the marketing function from the CEO, the Board, and other executives 51. b. the imperative for the CMO to get better at what they do c. required by the IRS to report the gains from marketing investment d. aandb e. a,b,andc ANS: D PTS: 1 Which of the following is NOT a reason for the difficulty in measuring marcom effectiveness? a. lack of ability by marcom practitioners b. obstacles in identifying an appropriate measure, or metric, of effectiveness c. complications with getting people throughout the organization to agree that a particular measure is the most appropriate d. snags with gathering accurate data to assess effectiveness e. problems with determining the exact effect that specific marcom elements have on the measure that has been selected to indicate effectiveness ANS: A PTS: 1 Specific measures that are used to judge marcom effectiveness are also called ____. a. variables b. metrics c. coefficients 52. 53. 54. 55. d. models e. variances ANS: B PTS: 1 Harold is trying to determine the appropriate metric his company should use to gauge the effectiveness of its marcom efforts. Which of the following is a possible option? a. brand awareness b. attitudes toward the brand c. purchase intentions d. sales volume e. all of the above ANS: E PTS: 1 A recent study by the Association of National Advertisers found that among the most common metrics used for measuring ROMI was ____. a. change in consumer purchase behavior b. incremental sales revenue generated by marketing activities c. increases in S-O-M compared to changes in S-O-V d. changes in brand loyalty generated by advertising e. changes in brand image with increased expenditure on sales promotion ANS: B PTS: 1 Why is it difficult to gain agreement on a suitable system for measuring marcom performance? a. People are uncooperative. b. People in other disciplines do not understand marketing and marketing communications c. Individuals from different backgrounds and with varied organizational interests often see the “world” differently or operate with varying ideas of what best indicates suitable performance. d. There is so little difference among the measures that it is difficult for individuals outside of marketing to understand them. 56. 57. 58. 59. 60. e. If it isn’t in terms of dollars, others in the organization don’t even want to look at it. ANS: C PTS: 1 Whatever the measure chosen, any effort to meaningfully assess marcom performance necessitates having data that are ____. a. short-term and long-term b. communication-based and sales-based c. representative and normal d. normal and bi-modal e. reliable and valid ANS: E PTS: 1 What is the most complicated problem of all when assessing marcom performance? a. How much data is necessary? b. How much relative effect does each program element have compared to the effects of other elements? c. How does one assess reliability and validity? d. How can a researcher be sure that the data are appropriate for the metric being assessed? e. How does one account for sampling and measurement errors? ANS: B PTS: 1 Which technique is increasingly being used to assess the relative effect each program element has compared to the effects of other elements? a. marketing-mix modeling b. structural equation modeling c. marketing optimization modeling d. multidimensional scaling e. calibration modeling ANS: A PTS: 1 Marketing-mix modeling typically employs which statistical technique to estimate the effects that the various marcom elements have in driving sales volume? a. cluster analysis b. structural equation modeling c. multivariate regression analysis d. ANOVA e. MANOVA ANS: C PTS: 1 Sam is tasked with employing marketing-mix modeling to determine the effectiveness of various marcom elements in affecting sales volume. What will Sam need to conduct this analysis? a. at least five observations for each element assessed along with the level of sales for those time periods b. a relatively long series of longitudinal data, such as two years, indicating the level of sales during that period along with corresponding marcom expenditures for each program element c. at least ten observations for each element assessed along with the level of sales for those time periods d. over 1,000 observations for each element assessed along with the level of sales for those time periods 61. e. parameter estimates of the individual effects the various marcom elements have on sales ANS: B PTS: 1 Which of the following statements is FALSE regarding marketing-mix modeling? a. In order to employ marketing-mix modeling, a relatively long series of longitudinal data (i.e., for a two-year period) is required. b. Marketing-mix modeling employs well known statistical techniques (e.g., multivariate regression analysis) to estimate the effects that the various marcom elements have in driving sales volume. c. Parameter estimates indicate the individual effects the various marcom elements have on sales. d. Managers learn from such analysis which elements are outperforming others and can use this information to shift budgets from program element to element. e. Once the model is estimated, results can be generalized to other situations. ANS: E PTS: 1 Managers learn from the analytic aspect of marketing mix modeling which marcom elements are outperforming others and can then use this statistical information to ____. a. shift budgets from program element to element b. reposition products to better meet the needs of consumers c. develop new products and services d. construct more appropriate messages for their target market e. identify new markets for their products and/or services ANS: A PTS: 1 In using marketing-mix modeling, the finer, or more disaggregated, the data the better the analysis can be in determining which specific marketing mix elements are most and least effective in ____. a. generating awareness b. creating brand loyalty c. developing new markets d. reaching the current target market e. driving sales ANS: E PTS: 1 62. 63. ESSAY 1. Discuss the benefits of brand equity from the firm’s perspective. ANS: The firm-based viewpoint of brand equity focuses on outcomes extending from efforts to enhance a brand’s value to its various stakeholders. As the value, or equity, of a brand increases, various positive outcomes result: 1. Achieving a higher market share. 2. Increasing brand loyalty. 3. Being able to charge premium prices. A brand’s elasticity of demand becomes less elastic as its equity increases. 4. Earning a revenue premium, which is defined as the revenue differential between a branded item and a corresponding private labeled item. With revenue equaling the product of a brand’s net price x volume, a branded good enjoys a revenue premium over a corresponding private labeled item to the degree it can charge a higher price and/or 2. generate greater sales volume. PTS: 1 Name and describe the two forms of brand knowledge from a consumer perspective. ANS: Brand equity from the customer’s perspective consists of two forms of brand-related knowledge: 1. Brand Awareness, which is an issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked. It is the basic dimension of brand equity. From the vantage point of an individual consumer, a brand has no equity unless the consumer is at least aware of the brand. The two levels of awareness are brand recognition and recall. Brand recognition reflects a relatively superficial level of awareness, whereas brand recall indicates a deeper form of awareness. The marcom imperative is to move brands from a state of unawareness, to recognition, on to recall, and ultimately to top-of-mind awareness (TOMA). This pinnacle of brand-name awareness (i.e., TOMA status) exists when your company’s brand is the first that consumers recall when thinking about brands in a particular product category. Although building brand awareness is a necessary step toward brand equity enhancement, it is insufficient. 2. Brand Image can be thought of in terms of the types of associations that come to the customer’s or consumer’s mind when contemplating a particular brand. An association is simply the particular thoughts and feelings that a consumer has about a brand. These associations can be conceptualized in terms of type, favorability, strength, and uniqueness. Research has identified five personality dimensions that describe most brands: sincerity, excitement, competence, sophistication, and ruggedness. PTS: 1 Briefly discuss the five dimensions of brand personality. ANS: The five dimensions of brand personality are: 1. Sincerity. This dimension includes brands that are down-to-earth, honest, wholesome, and cheerful. 2. Excitement. Brands scoring high on the excitement dimension are perceived as daring, spirited, imaginative, and up-to-date. 3. Competence. Brands scoring high on this personality dimension are considered reliable, intelligent, and successful. 4. Sophistication. Brands that are considered upper class and charming score high on the sophistication dimension. 5. Ruggedness. Rugged brands are thought of as tough and outdoorsy. PTS: 1 Name and describe the three ways by which brand equity is enhanced. ANS: The three ways by which brand equity is enhanced are: 1. Speak-for-itself approach. With this approach, favorable (or perhaps unfavorable) associations are built merely by allowing the brand to “speak for itself.” That is, by trying and using brands, consumers learn how good (or bad) they are and what benefits they are (in)capable of delivering. 3. 4. 5. 2. Message-driven approach. Marcom practitioners in their various capacities can build (or attempt to build) advantageous associations via the dint of repeated claims about the features a brand possesses and/or the benefits it delivers. 3. Leveraging approach. Brand associations can be shaped and equity enhanced by leveraging positive associations already contained in the world of people, places, and things, even other brands, that are available to consumers. The culture and social systems in which marketing communications takes place are loaded with meaning. Marketing communicators draw meaning from the culturally constituted world and transfer that meaning to consumer goods, and advertising is an especially important instrument of meaning transfer. advertising and integrated brand promotion pdf, advertising and integrated brand promotion, advertising and integrated brand promotion 8th edition, integrated brand promotion, advertising and integrated brand promotion 8th edition free,

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,Chapter 1—Overview of Integrated Marketing Communications and the Marcom
Process


TRUE/FALSE

1. Marketing communications play an important role for all companies.

ANS: T PTS: 1

2. According to a recent study, integrated marketing communications is seldom employed by business-to-
business marketers.

ANS: F PTS: 1

3. The marketing communications component of the marketing mix has decreased dramatically in
importance in recent decades.

ANS: F PTS: 1

4. Marketing and communications are virtually inseparable.

ANS: T PTS: 1

5. The use of marketing communications is not appropriate for organizations delivering not-for-profit
services.

ANS: F PTS: 1

6. Most marketing communications occur at the brand level.

ANS: T PTS: 1

7. The term brand is a convenient (and appropriate) label for describing any object of concerted
marketing efforts.

ANS: T PTS: 1

8. Brands perform a critical strategic role by providing a key means for differentiating one company’s
offering from competitive brands.

ANS: T PTS: 1

9. Many companies treat the various communication elements, such as advertising, sales promotions,
public relations, and so on, as virtually separate activities rather than integrated tools that work
together to achieve a common goal.

ANS: T PTS: 1

10. Interactive marketing communications, or simply IMC, is the philosophy and practice of carefully
coordinating a brand’s sundry marketing communications elements.

ANS: F PTS: 1

,11. One reason firms have not practiced IMC is because different units within organizations have
specialized in separate aspects of marketing communications.

ANS: T PTS: 1

12. One reason firms have not practiced IMC is because outside suppliers, such as advertising, public
relations, and promotion agencies, have been reluctant to broaden their function beyond the one aspect
of marketing communications in which they have developed expertise and built their reputations.

ANS: T PTS: 1

13. In reality, IMC is little more than a management fad that is short lived.

ANS: F PTS: 1

14. Novice managers are more likely than experienced managers to practice IMC.

ANS: F PTS: 1

15. By closely integrating multiple communication tools and media, brand managers achieve duplicity,
which means multiple methods in combination with one another yield more positive communication
results than do the tools used individually.

ANS: F PTS: 1

16. The integrated marketing communication process starts by determining the strengths and weaknesses
of the marketer.

ANS: F PTS: 1

17. The IMC approach uses the “inside-out” approach in identifying communication vehicles.

ANS: F PTS: 1

18. The use of integrated marketing communications is restricted to the mass media.

ANS: F PTS: 1

19. The terms touch point and contact are used interchangeably to mean any message medium capable of
reaching target customers and presenting the brand in a favorable light.

ANS: T PTS: 1

20. Coordination of messages and media is absolutely critical to achieving a strong and unified brand
image and moving consumers to action.

ANS: T PTS: 1

21. A positioning statement is the key idea that encapsulates what a brand is intended to stand for in its
target market’s mind.

ANS: T PTS: 1

, 22. Successful marketing communication requires building relationships between brands and their
consumers/customers.

ANS: T PTS: 1

23. One thing that has not changed in marketing communication practices is the dependence on mass
media advertising.

ANS: F PTS: 1

24. The mixture of communications elements and the determination of messages, media, and momentum
are all fundamental decisions in the brand-level marcom decision process.

ANS: F PTS: 1

25. The various types of brand-level marcom decisions include fundamental decisions and implementation
decisions.

ANS: T PTS: 1

26. The objective of marketing communications is to enhance brand equity as a means of moving
customers to favorable action toward the brand.

ANS: T PTS: 1

27. A brand has no equity if consumers are unfamiliar with it.

ANS: T PTS: 1

28. Selection of target segments is a critical step toward effective and efficient marketing communications.

ANS: T PTS: 1

29. A brand’s name is the central idea that encapsulates a brand’s meaning and distinctiveness relative to
competitive brands in the product category.

ANS: F PTS: 1

30. The fundament decisions in the marcom decision process are conceptual and strategic, and the
implementation decisions are practical and tactical.

ANS: T PTS: 1

31. There is an optimum mixture of expenditures between advertising and promotion that can be
determined using computer models.

ANS: F PTS: 1

32. Systematic decision making requires that message content be dictated primarily by the media vehicle
used to reach the target audience.

ANS: F PTS: 1

33. The concept of media is relevant to all marcom tools.

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