MCS 1000 Final Exam (Definitions)
Questions and Correct Answers.
Promotional Mix - Answer The combination of one or more of these communications tools:
advertising, personal selling, sales promotion, public relations, and direct marketing
Integrated Marketing Communications - Answer The concept of designing marketing
communications programs that coordinate all promotional activities—advertising, personal
selling, sales promotion, public relations, and direct marketing—to provide a consistent
message across all audiences and to maximize the promotional budget and impact of the
communications
Communication - Answer The process of conveying a message to others, which requires six
elements: a source, a message, a channel of communication, a receiver, and the processes of
encoding and decoding
Source - Answer A company or person who has information to convey
Message - Answer The information sent by a source to a receiver in the communication
process
Channel of Communication - Answer The means of conveying a message to a receiver
Recievers - Answer Consumers who read, hear, or see the message sent by a source in the
communication process
Encoding - Answer The process of having the sender transform an abstract idea into a set of
symbols
Decoding - Answer The process of having the receiver take a set of symbols, the message, and
transform them back to an abstract idea
Field of Experience - Answer Similar understanding and knowledge; to communicate
effectively, a sender and a receiver must have a mutually shared field of experience
Response - Answer The impact the message had on the receiver's knowledge, attitudes, or
behaviours
,Feedback - Answer The communication flow from receiver back to the sender that helps the
sender know whether the message was decoded and understood as intended
Noise - Answer Extraneous factors that can work against effective communication by distorting
a message or the feedback received
Advertising - Answer Any paid form of non-personal communication about an organization,
good, service, or idea by an identified sponsor
Personal Selling - Answer The two-way flow of communication between a buyer and seller,
often in a face-to-face encounter, designed to influence a person's or group's purchase decision
Public Relations - Answer A form of communication management that seeks to influence the
feelings, opinions, or beliefs held by customers, prospective customers, shareholders, suppliers,
employees, and other publics about a company and its products or services
Publicity - Answer A non-personal, indirectly paid presentation of an organization, good, or
service
Sales Promotion - Answer A short-term inducement of value offered to arouse interest in
buying a good or service
Direct Marketing - Answer Promotional element that uses direct communication with
consumers to generate a response in the form of an order, a request for further information, or
a visit to a retail outlet
Push Strategy - Answer Directing the promotional mix to channel members to gain their
cooperation in ordering and stocking a product
Pull Strategy - Answer Directing the promotional mix at ultimate consumers to encourage
them to ask the retailer for the product
Hierarchy of Effects - Answer The sequence of stages a prospective buyer goes through, from
initial awareness of a product to eventual action
Percentage of Sales Budgeting - Answer Allocating funds to advertising as a percentage of past
or anticipated sales, in terms of either dollars or units sold
Competitive Parity Budgeting - Answer Matching the competitors' absolute level of spending
or the proportion per point of market share
, All-You-Can-Afford Budgeting - Answer Allocating funds to promotion only after all other
budget items are covered
Objective and Task Budgeting - Answer A budgeting approach whereby the company (1)
determines its promotion objectives, (2) outlines the tasks to accomplish these objectives, and
(3) determines the promotion cost of performing these tasks
Direct Orders - Answer The result of offers that contain all the information necessary for a
prospective buyer to make a decision to purchase and complete the transaction
Lead Generation - Answer The result of an offer designed to generate interest in a product or
service and a request for additional information
Traffic Generation - Answer The outcome of an offer designed to motivate people to visit a
business
Product Advertisements - Answer Advertisements that focus on selling a good or service and
take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3)
reminder
Institutional Advertisements - Answer Advertisements designed to build goodwill or an image
for an organization, rather than promote a specific good or service
Reach - Answer The number of different people or households exposed to an advertisement.
Rating - Answer The percentage of households in a market that are tuned to a particular TV
show or radio station
Frequency - Answer The average number of times a person in the target audience is exposed
to a message or advertisement.
Gross Rating Points (GRP's) - Answer A reference number for advertisers, created by
multiplying reach (expressed as a percentage of the total market) by frequency
Cost per Thousand (CPM) Infomericals - Answer The cost of reaching 1,000 individuals or
households with an advertising message in a given medium
Questions and Correct Answers.
Promotional Mix - Answer The combination of one or more of these communications tools:
advertising, personal selling, sales promotion, public relations, and direct marketing
Integrated Marketing Communications - Answer The concept of designing marketing
communications programs that coordinate all promotional activities—advertising, personal
selling, sales promotion, public relations, and direct marketing—to provide a consistent
message across all audiences and to maximize the promotional budget and impact of the
communications
Communication - Answer The process of conveying a message to others, which requires six
elements: a source, a message, a channel of communication, a receiver, and the processes of
encoding and decoding
Source - Answer A company or person who has information to convey
Message - Answer The information sent by a source to a receiver in the communication
process
Channel of Communication - Answer The means of conveying a message to a receiver
Recievers - Answer Consumers who read, hear, or see the message sent by a source in the
communication process
Encoding - Answer The process of having the sender transform an abstract idea into a set of
symbols
Decoding - Answer The process of having the receiver take a set of symbols, the message, and
transform them back to an abstract idea
Field of Experience - Answer Similar understanding and knowledge; to communicate
effectively, a sender and a receiver must have a mutually shared field of experience
Response - Answer The impact the message had on the receiver's knowledge, attitudes, or
behaviours
,Feedback - Answer The communication flow from receiver back to the sender that helps the
sender know whether the message was decoded and understood as intended
Noise - Answer Extraneous factors that can work against effective communication by distorting
a message or the feedback received
Advertising - Answer Any paid form of non-personal communication about an organization,
good, service, or idea by an identified sponsor
Personal Selling - Answer The two-way flow of communication between a buyer and seller,
often in a face-to-face encounter, designed to influence a person's or group's purchase decision
Public Relations - Answer A form of communication management that seeks to influence the
feelings, opinions, or beliefs held by customers, prospective customers, shareholders, suppliers,
employees, and other publics about a company and its products or services
Publicity - Answer A non-personal, indirectly paid presentation of an organization, good, or
service
Sales Promotion - Answer A short-term inducement of value offered to arouse interest in
buying a good or service
Direct Marketing - Answer Promotional element that uses direct communication with
consumers to generate a response in the form of an order, a request for further information, or
a visit to a retail outlet
Push Strategy - Answer Directing the promotional mix to channel members to gain their
cooperation in ordering and stocking a product
Pull Strategy - Answer Directing the promotional mix at ultimate consumers to encourage
them to ask the retailer for the product
Hierarchy of Effects - Answer The sequence of stages a prospective buyer goes through, from
initial awareness of a product to eventual action
Percentage of Sales Budgeting - Answer Allocating funds to advertising as a percentage of past
or anticipated sales, in terms of either dollars or units sold
Competitive Parity Budgeting - Answer Matching the competitors' absolute level of spending
or the proportion per point of market share
, All-You-Can-Afford Budgeting - Answer Allocating funds to promotion only after all other
budget items are covered
Objective and Task Budgeting - Answer A budgeting approach whereby the company (1)
determines its promotion objectives, (2) outlines the tasks to accomplish these objectives, and
(3) determines the promotion cost of performing these tasks
Direct Orders - Answer The result of offers that contain all the information necessary for a
prospective buyer to make a decision to purchase and complete the transaction
Lead Generation - Answer The result of an offer designed to generate interest in a product or
service and a request for additional information
Traffic Generation - Answer The outcome of an offer designed to motivate people to visit a
business
Product Advertisements - Answer Advertisements that focus on selling a good or service and
take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3)
reminder
Institutional Advertisements - Answer Advertisements designed to build goodwill or an image
for an organization, rather than promote a specific good or service
Reach - Answer The number of different people or households exposed to an advertisement.
Rating - Answer The percentage of households in a market that are tuned to a particular TV
show or radio station
Frequency - Answer The average number of times a person in the target audience is exposed
to a message or advertisement.
Gross Rating Points (GRP's) - Answer A reference number for advertisers, created by
multiplying reach (expressed as a percentage of the total market) by frequency
Cost per Thousand (CPM) Infomericals - Answer The cost of reaching 1,000 individuals or
households with an advertising message in a given medium
