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Which statement is most likely true about the affordable method of setting an advertising budget?


A) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish.
B) Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues.
C) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year.
D) Spending on advertising is calculated as a percentage of the unit sales price.
E) Spending on advertising is based on a competitor's advertising outlays.

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How does public relations help in creating an integrated marketing communications system?

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An integrated marketing communications s...

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Remington Motors releases a new line of hybrid electric vehicles called Electra.The line promises superior mileage and excellent horsepower in an environmentally friendly automobile.Remington decides to use advertising as the promotional tool for the car's launch.Which of the following would qualify as an advertisement for Electra?


A) a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed"
B) a press conference to discuss the various safety issues, actual mileage, and environmental features of Electra
C) the use of dedicated sales personnel in dealer showrooms to explain the qualities of Electra to potential customers
D) the involvement of a celebrity at the launch of Electra to endorse the hybrid car
E) a buyers-only lottery where Electra buyers have a chance of winning a prize

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Which of the following is a disadvantage of using online,mobile,and social media for advertising?


A) The costs are high.
B) Audience selectivity is low.
C) The audience controls ad exposure.
D) The interactive capabilities are low.
E) There is little scope for personalization.

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C

Which of the following is true of direct marketing?


A) Its marketing message is fixed and does not change according to the customer's requirements.
B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.
C) It is presented as company news rather than as a sales-directed communication.
D) It does not involve any interaction between the company and its customers.
E) It is an impersonal promotion tool that hinders two-way communication.

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B

Tilt Entertainment,a gaming design firm,has developed a new game called World Below.In order to get wider distribution,Tilt participates in the Gaming Entertainment Expo,which is attended by both sellers and consumers.Tilt sends a team of representatives for game presentation and negotiation and a team of professional gamers to showcase World Below at the Expo.The company also sends a team to sell its other games to consumers at the Expo.Which promotion mix tool has Tilt used in this scenario?


A) crowdsourcing
B) public relations
C) advertising
D) personal selling
E) crowdcasting

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Which statement is most likely true about the affordable method of setting an advertising budget?


A) It typically overlooks how promotion affects sales.
B) It always results in overspending on advertising.
C) It is especially ideal for long-range market planning.
D) It leads to an overly fixed annual promotion budget.
E) It is most often used by firms with large advertising budgets.

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A

The affordable method of setting an advertising budget depends on the total revenues of a company.

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Which of the following is true of consumers in the new marketing communications model?


A) They are more reliant on traditional methods of marketing for product information.
B) They are less informed than before about companies and product marketing techniques.
C) They are more reliant on mass-media marketing methods for product information.
D) They are less powerful than before in affecting the way a company markets its products.
E) They are better equipped to find product and brand information on their own.

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What are the different functions of a public relations (PR)department?

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PR departments may perform any or all of...

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The push promotion strategy tends to be used by business-to-business marketers.

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Inglast,a chocolate producer,is faced with a class action suit when customers find pieces of plastic in boxes of cocoa powder.Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder.Which kind of advertisement has Inglast most likely used?


A) classified
B) informative
C) comparative
D) personalized
E) reminder

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Pearl Sands is a resort in the town of Willington.It attracts the maximum number of customers in the summer.In the spring,Pearl Sands sponsors shows on TV and puts up billboards in Willington and the surrounding towns.The billboards advertise Pearl Sands as an ideal holiday spot,whether for a weekend getaway in the summer heat or for a family vacation.This is an example of a ________ strategy.


A) push
B) vertical integration
C) pull
D) publish-subscribe
E) direct marketing

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Explain the use of sales promotions as a promotion mix tool.

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Sales promotion includes a wide assortme...

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What is a promotion mix? Define the major tools used in a promotion mix.

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The specific blend of promotion tools th...

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Which method of setting advertising budgets best helps management think about the relationship between promotion spending,selling price,and profit per unit?


A) adaptive-control method
B) objective-and-task method
C) competitive-parity method
D) affordable method
E) percentage-of-sales method

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Why do today's firms need integrated marketing communications systems? How do firms benefit from such systems?

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(Students' answers may vary.The answer g...

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In a promotion mix,________ performs the functions of building a good rapport with entities outside the company,building up a good corporate image,and handling unfavorable rumors and events.


A) personal selling
B) sales promotion
C) direct marketing
D) advertising
E) public relations

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What is the primary advantage of using television as an advertising medium?


A) It involves a low cost per exposure.
B) It supports a high degree of audience selectivity.
C) It involves low absolute costs.
D) It contains low ad clutter.
E) It permits prominent exposure.

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John works as a junior marketing executive at Frontloop Corporation.Frontloop Corporation manufactures guitars and other stringed instruments.It designs a new guitar,the Loneway,customized for the folk music genre.It plans to attract both folk artists and folk music lovers with its advertising campaigns and decides to exclusively use mass-media marketing techniques to advertise the Loneway guitar.What arguments can John use if he wants to convince Frontloop to adopt digital media instead of television advertising?

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(Students' answers may vary.The answer g...

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