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Exam 5: Establishing Objectives and Budgeting for the Promotional Program

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Question 1

Multiple Choice

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In 2007,Cingular acquired AT&T but renamed itself using AT&T.The choice of the name reflected consumers' awareness and recognition of an established brand.Advertising to make consumers aware of new combined firm would more than likely have _____ objectives.

A) sales-oriented
B) market-oriented
C) product development
D) communications
E) product penetration

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Question 2

Multiple Choice

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Creative executives from the advertising industry might oppose the DAGMAR approach to setting objectives because it:

A) inhibits their creativity by putting too much emphasis on numbers and the quantitative assessment of an advertising campaign.
B) requires that speculative presentations be created and used to set benchmark measures.
C) is only successful if it produces the desired sales results.
D) does not provide any type of communication guidelines.
E) is too concerned with qualitative assessments of the finished campaign.

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Question 3

Multiple Choice

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In the _____ method of budget determination advertising is considered an investment,similar to plant and equipment.

According to DAGMAR,advertising objectives should be written in measurable terms that specify:

Which of the following is an example of a common criticism of DAGMAR?

In the case of marginal analysis approach,profits are shown to be a result of:

A disadvantage associated with the _____ method is its assumption that because firms have similar promotional expenditures their programs will be equally effective.

For which of the following would an advertiser be most likely to use a sales-oriented objective?

The S-shaped response function implies that:

_____ objectives are types of objectives that are usually stated in terms of specific,measurable outcomes such as sales volume,market share,or return on investment.

You are working in the advertising department of a large consumer products company.You have suggested that the company use the DAGMAR approach for setting advertising goals.Which of the following is an example of an argument that you are likely to hear against the use of the DAGMAR approach to setting advertising goals?

_____ is a method for allocating budgets designed to determine the investment value of the advertising appropriation.

The most commonly utilized method of budget determination by large firms is:

Financially oriented managers who view marketing communications as an expense rather than an investment are likely to prefer _____ objectives for advertising and other promotional areas.

The concave-downward function model is based on:

Many marketing managers prefer sales-oriented objectives for advertising because they believe:

DAGMAR is:

According to Robert Steiner,which of the following terms is synonymous with contribution margin?

As a result of economies of scale,smaller advertisers:

In January 2003,Philip-Morris Companies,Inc. ,and Kraft Foods became the Altria Group.The change in name reflected the fact the company has changed itself structurally,behaviorally,and culturally.The new name was designed to focus attention on the company's superior performance,financial strength,and its commitment to integrity and corporate responsibility.Which of the following statements about the communications objectives the company would have most likely used as part of this repositioning strategy is true?