Marketing Study Guide Chapter 17

It is difficult, but not impossible, to integrate marketing communications across all platforms, including social media.
TRUE
Coordination across these platforms is the key to effective multichannel marketing communications.
Marketers anticipate that advertising on digital and social media will remain relatively stable in the next few years, as will integrated marketing communications.
FALSE
As the boundaries of advertising shift to include digital and social media, the integration of multiple marketing channels is crucial for catching customers wherever they are: in front of the television, typing on their home computer, or on the go. This is anticipated to rise significantly in the next few years.
Integrated marketing communications (IMC) represents the product of the four Ps.
FALSE
Integrated marketing communications (IMC) represents the promotion element of the four Ps and encompasses a variety of communication disciplines
As the number of communication media has increased, the task of understanding how best to reach target customers has become easier.
FALSE
The proliferation of communication media—driven largely by technology—has made it much more difficult to choose the best way to reach a target market.
Encoding means converting the sender’s ideas into a message, which could be verbal, visual, or both.
TRUE
This is the definition of encoding.
Though a picture may be worth a thousand words, the most important facet of encoding is not what is received but what is sent.
FALSE
The most important facet of encoding is not what gets sent but rather what is received.
In the communication process of marketing communications, the marketing department often functions in the role of transmitter
TRUE
In marketing communications, the marketing department or external agency receives the information and transforms it for use in its role as the transmitter.
If there is a difference between the message that is sent and the message that is received, it is probably due to noise.
TRUE
Noise refers to any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium
The sender of an integrated marketing communication controls the meaning individual receivers take from the message.
FALSE
The receiver decodes the message, interpreting it and assigning meaning to it.
Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and a consumer’s purchase.
TRUE
The lack of a direct link makes it difficult to measure the impact of marketing communications.
Even the best marketing communication can be wasted if the sender does not gain the attention of the consumer.
TRUE
The first step in moving a consumer toward taking action is to raise awareness and gain attention.
If the marketing communication has piqued the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from “I want it” to “I like it.”
FALSE
It’s the other way around—the goal is to move the consumer from “I like it” to “I want it.”
Top-of-mind awareness is when consumers indicate that they know the brand when the name is presented to them
FALSE
Top-of-mind awareness means that the consumer mentions the brand name first when asked about a product.
Betty is assessing the effect of her firm’s marketing communications. She should remember that the ultimate goal is to drive the receiver to action.
TRUE
Although many measures of marketing communications look at things like number of exposures, the ultimate goal is to move a consumer to take action.
After seeing advertisements for the Toyota Prius, Joel becomes interested and does some Internet research. However, after seeing the price for a new model, he decides to purchase a Ford Fusion instead. This is an example of the lagged effect.
FALSE
Sometimes consumers don’t act immediately after receiving a marketing communication because of the lagged effect—a delayed response to a marketing communication campaign.
Public relations is the component of IMC that has received the greatest increase in aggregate spending.
FALSE
Direct marketing has received the greatest increase in aggregate spending recently.
Mobile marketing involves marketing to customers through wireless handheld devices such as mobile phones.
TRUE
This is the definition of mobile marketing.
The cost of communicating directly with a potential customer is low compared with other forms of promotion.
FALSE
In reality, the cost of communicating directly with a potential customer is quite high compared with other forms of promotion.
There are ethical dilemmas associated with providing customers with personalized offers based on their browsing or purchasing habits.
TRUE
Many believe consumers’ privacy rights are being unjustly invaded by firms that provided them with targeted promotions.
Twitter is a form of blogging and is increasingly used to reach current or potential customers.
TRUE
Social media, such as the microblog Twitter, help facilitate the consumer decision process.
Because the goals of IMC are only part of the overall promotional plan, they do not need to be explicit or measurable.
FALSE
All IMC goals should be explicitly defined and measurable.
When using the rule-of-thumb method for IMC budgeting, prior sales and communication activities are used for guidance.
TRUE
The rule-of-thumb method uses prior sales and communication activities to determine the present communication budget.
It may take several exposures to marketing communications before consumers are moved to buy.
TRUE
A single exposure is often not enough to move someone to take action. Marketers measure the frequency of exposure for this reason.
Personal selling can only be successful through the use of print, newspapers, and radio.
FALSE
Personal selling is the two-way flow of communication between buyer and a seller that is designed to influence the buyer’s purchase decision. Print, newspapers, and radio are one-way media.
Gross rating points (GRP) measure how often the audience is exposed to a communication within a specified period of time.
FALSE
GRP represents reach (percentage of the target population exposed to the message) multiplied by frequency (how often the audience is exposed to the message).
Frequency describes the percentage of the target population exposed to a specific marketing communication, such as advertisement, within a specified period of time.
TRUE
Frequency of exposure is how often the audience is exposed to a communication within a specified period of time.
The basic goal of integrated marketing communications is to
A. communicate the value proposition to the target market.
B. create desire.
C. manipulate consumers.
D. outspend competitors.
E. tell the world about your company.
A. communicate the value proposition to the target market.

Marketing communications is the promotion element of the four Ps, the method by which the firm communicates value to target customers.

Especially for marketers with new products or services, IMC is needed because
A. consumers need to know all about the features of new products before making a purchase decision.
B. consumers are unlikely to buy products they are not aware of.
C. it is impossible for products to sell themselves through word of mouth communication.
D. pricing decisions cannot be made without IMC.
E. new products and services need to be integrated into the supply chain value proposition.
B. consumers are unlikely to buy products they are not aware of.

Marketing communications is the promotion element of the four Ps, the method by which the firm communicates value to target customers. This communication is necessary if customers are to discover and choose to buy the firm’s products.

Integrated marketing communications represents the __________ P in the four Ps of a firm’s marketing mix.
A. pricing

B. product

C. promotion

D. place

E. partnering

C. promotion

Marketing communications is the promotion element of the four Ps, the method by which the firm communicates value to target customers.

Integrated marketing communications include all of the following EXCEPT
A. personal selling.

B. advertising.

C. public relations.

D. supply chain management.

E. direct marketing.

D. supply chain management.

Supply chain management is not part of integrated marketing communications. Personal selling, advertising, public relations, and direct marketing are all ways to communicate value to the target market.

Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm’s IMC budget. He receives offers from a variety of advertising media, spends money on his firm’s public relations efforts, and is considering electronic media alternatives. Carl must recognize that each IMC alternative
A. will stand on its own.

B. is part of the whole.

C. is part of noncommercial free speech.

D. is less important than stealth marketing.

E. is dictated by the nature of the supply chain.

B. is part of the whole.

An integrated marketing communication strategy will have many components that must be coordinated into an integrated whole.

The three elements of any IMC strategy are the consumer, the channels, and

A. the receiver.

B. the product.

C. evaluation of the results.

D. the company.

E. event sponsorship.

C. evaluation of the results.

An IMC strategy must consider the consumer, the channels, and evaluation of the results.

As the number of communication media has increased, the task of understanding how best to reach target customers has

A. shifted from creating a value proposition to revising a value proposition.

B. increased the use of rule-of-thumb targeting.

C. become easier.

D. focused on reducing communication noise.

E. become more complex.

E. become more complex.

The proliferation of communication media—driven largely by technology—has made it much more difficult to choose the best way to reach a target market.

The IMC communication process includes all of the following EXCEPT

A. evaluation.

B. the sender.

C. the transmitter.

D. the communication channel.

E. the receiver.

A. evaluation.

The IMC communication process includes the sender, the transmitter, encoding, the communication channel, the receiver, noise, and the feedback loop.

The IMC communication process begins with __________, who must be clearly identified.

A. the integrator

B. the sender

C. the transmitter

D. the communication channel

E. the receiver

B. the sender

The IMC communication process includes the sender, the transmitter, encoding, the communication channel, the receiver, noise, and the feedback loop. The sender is the first step of the process.

In the IMC communication process, the __________ encodes the marketing communication message.

A. instructor

B. sender

C. transmitter

D. communication channel

E. receiver

C. transmitter

The transmitter converts the sender’s ideas into a message, which could be verbal, visual, or both.

__________ means converting the sender’s ideas into a message, which could be verbal, visual, or both.
A. Decoding

B. Integrated marketing communications

C. Precoding

D. Encoding

E. Tracking

D. Encoding

Encoding means converting the sender’s ideas into a message, which could be verbal, visual, or both. The transmitter performs this action.

In integrated marketing communications, encoding involves

A. converting consumers’ ideas into value propositions.

B. differentiating noncommercial speech from commercial speech.

C. converting the decoder into the receiver.

D. interpreting click-through rates.

E. converting the sender’s ideas into a message, which could be verbal, visual, or both.

E. converting the sender’s ideas into a message, which could be verbal, visual, or both.

Encoding means converting the sender’s ideas into a message, which could be verbal, visual, or both. The transmitter performs this action.

Though a picture may be worth a thousand words, the most important facet of encoding is

A. who draws the picture.

B. the self-visualization process.

C. not what is received but what is sent.

D. the sponsor rather than the receiver.

E. not what is sent but what is received.

E. not what is sent but what is received.

The most important facet of encoding is the message received (and decoded).

In the IMC communication process, the __________ is the medium that carries the message.

A. feedback loop

B. sender

C. transmitter

D. communication channel

E. receiver

D. communication channel

The IMC message is carried on a communication channel.

Which of the following is NOT a communication channel used in the IMC process?

A. radio

B. television

C. newspaper

D. Internet

E. supply chain

E. supply chain

All of these except the supply chain are channels used in the IMC process.

The right communication channel to use in IMC is

A. the traditional channel used in that particular retail sector.

B. network advertising, local newspapers, and regional radio stations.

C. the one that will connect to the desired recipients.

D. the one with the best encoding capabilities.

E. the one that maximizes decoding difficulty.

C. the one that will connect to the desired recipients.

There is no one right communication channel to use—it depends on the target customers who should receive the message.

In the IMC communication process, the __________ is the person who reads, hears, or sees and processes the message being communicated.

A. medium

B. sender

C. transmitter

D. communication channel

E. receiver

E. receiver

The receiver is the eventual target of the message—the person at whom it is directed.

The sender of an IMC message hopes the receivers are

A. the people for whom the message was originally intended.

B. the people with the most buying power.

C. consumers who are capable of discerning value.

D. consumers who have purchased the firm’s products in the past.

E. the market segment with the most gross rating points.

A. the people for whom the message was originally intended.

The sender cannot guarantee that the intended target customers will receive the message but will choose the message format and channel with the customer in mind.

__________ refers to the process by which the receiver interprets the sender’s message.

A. Decoding

B. Feedback

C. Precoding

D. Encoding

E. Tracking

A. Decoding

The receiver decodes the encoded message, interpreting it.

If you ever watched a television commercial and at the end of the message wondered what it was promoting, you may have had trouble __________ the IMC message.

A. decoding

B. transmitting

C. precoding

D. encoding

E. tracking

A. decoding

Problems decoding a message can lead the receiver to fail to interpret it properly.

__________ is any interference in the IMC process.

A. Translation

B. Looping

C. Excessive reach

D. Noise

E. Feedback

D. Noise

Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lack of clarity in the message, or a flaw in the medium.

In the IMC process, noise can occur as a result of lack of message clarity, a poor choice of medium, or

A. competing messages.

B. an extended feedback loop.

C. indirect encoding.

D. inhibited decoding.

E. excessive reach.

A. competing messages.

interference in the IMC process is referred to as noise. It can be caused by competing messages, a lack of clarity in the message, or a flaw in the medium.

Advertising agencies often provide the IMC function of comparing their customer’s target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with

A. competing messages.

B. lack of clarity in the message.

C. a poor choice of medium.

D. an extended feedback loop.

E. a flaw in the medium.

C. a poor choice of medium.

Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lack of clarity in the message, or a flaw in the medium. In this case, the choice of the wrong channel can cause most members of the target market to fail to receive the message.

National manufacturers and retailers often pay a service provider to monitor television ads around the country, to ensure that their ads are shown in their entirety during the time frames that were purchased. This service provider is monitoring for IMC noise problems associated with

A. competing messages.

B. lack of clarity in the message.

C. a poor choice of medium.

D. a flaw in the medium.

E. an extended feedback loop.

D. a flaw in the medium.

Interference in the IMC process is referred to as noise. It can be caused by competing messages, a lack of clarity in the message, or a flaw in the medium. In this case, a failure for the ad to be shown in its entirety is a flaw in the medium.

The _____________ loop allows the receiver to communicate with the sender in the IMC process.

A. decoding

B. pre-testing

C. precoding

D. encoding

E. feedback

E. feedback

A feedback loop permits the receiver to respond to the sender.

Most manufacturing and retailing marketers worry constantly about whether their IMC efforts are paying off. They assess various forms of __________ to determine what is working and what is not.

A. noise

B. pre-testing

C. precoding

D. encoding

E. feedback

E. feedback

Feedback lets marketing managers know that the intended audience received the message and it was decoded properly.

Sales data, complaints, compliments, and redemption rates for coupons and rebates are types of __________ marketers use to assess the effectiveness of their IMC efforts.

A. decoding

B. pre-testing

C. feedback

D. simulations

E. encoding

C. feedback

Feedback of the types suggested can be useful in evaluating the success of IMC programs

Loretta would like to know which, if any, of her firm’s IMC efforts are working. She could use all of the following EXCEPT __________ to provide feedback from her efforts.

A. sales data

B. complaints

C. compliments

D. coupon redemption rates

E. the channel

E. the channel

Feedback can take many forms: a customer’s purchase of the item, a complaint or compliment, the redemption of a coupon or rebate, a tweet about the product on Twitter, etc.

Marketers often use focus groups to learn how consumers interpret their IMC messages. Experience has shown that

A. effective branding requires marketers to encode messages identically for each market.

B. each receiver decodes IMC messages in his or her own way.

C. action is taken before desire and interest are determined.

D. marketers can almost always use the same message for all audiences.

E. messages are decoded in the manner intended by the encoder.

B. each receiver decodes IMC messages in his or her own way.

Each receiver decodes IMC messages differently, depending on personal experiences and preferences.

The sender of an integrated marketing communication

A. must work with the advertising specialists to ensure all recipients interpret the message accurately.

B. can assess the manner in which receivers interpret the message through gross rating points.

C. has little control over what meaning any individual receiver will take from the message.

D. controls the meaning all receivers take from the message.

E. should attempt to control how the message is received.

C. has little control over what meaning any individual receiver will take from the message.

The sender cannot control the way a message is decoded. This process is entirely in the hands of the receiver.

Though advertising experts wish it were true, there is not always a direct link between a particular marketing communication and

A. supply chain effectiveness.

B. enhanced decoding processes.

C. a consumer’s purchase.

D. the level of noise in the IMC channel.

E. the reach/frequency ratio.

C. a consumer’s purchase.

The lack of a direct link to a consumer’s purchase makes it difficult to measure the impact of marketing communications.

Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboard saying, “South of the Border Restaurant and Motel is just 100 miles away.” Julia has never heard of South of the Border before. After seeing the sign, she will most likely need additional exposure to the product before deciding whether to stop at South of the Border. This is an example of

A. rejection of advertising.

B. subliminal advertising.

C. product underwhelm.

D. IMC strategy.

E. the lagged effect.

E. the lagged effect.

Seeing a single billboard is unlikely to spur Julia to action due to the lagged effect. This is probably one reason South of the Border places billboards once every few miles along I-95.

Which of the following is NOT one of the steps in the AIDA model?

A. awareness

B. intention

C. action

D. desire

E. interest

B. intention

The steps in the AIDA model are awareness, interest, desire, and action.

In simple terms, the AIDA model is also known as the __________ model.

A. intention, action, interest

B. stop, look, listen

C. want, need, desire

D. inform, persuade, act

E. think, feel, do

E. think, feel, do

Customers actually have three types of responses, so the AIDA model is also known as the think, feel, do model.

In the AIDA model, awareness leads to

A. intention, which hopefully leads to desire and then action.

B. integration, which hopefully leads to desire and then action.

C. interest, which hopefully leads to desire and then action.

D. intention, which hopefully leads to desire and then attention.

E. interest, which hopefully leads to determination and then action.

C. interest, which hopefully leads to desire and then action.

The steps in the AIDA model are awareness, interest, desire, and action.

In the AIDA model, the think stage is the __________ stage.

A. awareness

B. action

C. interest

D. desire

E. intention

A. awareness

The think stage in the AIDA model is awareness.

__________ refers to a potential customer’s ability to recall that the brand name is a particular type of retailer, product, or service.

A. Product familiarity

B. Brand association

C. Brand awareness

D. Marketing recall

E. Cognitive association

C. Brand awareness

The first step of the AIDA model seeks to achieve brand awareness among consumers—knowledge that the brand name is in a particular category.

Even the best marketing communication can be wasted if the sender does not first

A. generate consumer action.

B. offer testimonials from past consumers.

C. determine the level of desire needed to sustain action.

D. gain the attention of the consumer.

E. stimulate interest among stealth marketing consumers.

D. gain the attention of the consumer.

If the consumer’s attention is not gained, and brand awareness does not result, the marketing communication cannot achieve its desired results.

Cheryl asked Nadia to help her buy some aftershave for her boyfriend. Nadia was going through a list of different brand names when Cheryl stopped her and said, “I recognize that one.” Marketers call this

A. selective recall.

B. free association.

C. aided recall.

D. recall mapping.

E. top-of-mind awareness.

C. aided recall.

Aided recall refers to consumers recognizing a brand name when they see or hear it.

In the AIDA model, the do stage is the __________ stage.

A. awareness

B. action

C. interest

D. desire

E. intentions

B. action

This is the action stage, the final stage of the AIDA model.

The highest level of awareness occurs when customers mention a specific brand name when asked about a product or service. Marketers call this

A. the primacy effect.

B. aided recall.

C. top-of-mind awareness.

D. category dominance.

E. elevated awareness.

C. top-of-mind awareness.

Top-of-mind awareness means that the consumer mentions the brand name first when asked about a product.

After creating awareness that the firm’s products or services exist, the next goal of integrated marketing communications is to

A. generate consumer action.

B. increase the level of interest among consumers.

C. determine the level of desire needed to sustain action.

D. gain the attention of the consumer.

E. create intentions to purchase the product.

B. increase the level of interest among consumers.

The steps in the AIDA model are awareness, interest, desire, and action.

In the movie Field of Dreams, one of the memorable phrases is, “If you build it, he will come.” The AIDA model would suggest that after marketers build a product or service and create awareness among consumers, they need to

A. determine the level of desire needed to sustain action.

B. promote sufficiently to gain global attention.

C. create interest among consumers, persuading them to investigate further.

D. offer discounts to increase purchase intentions.

E. take steps to encourage immediate purchase.

c. create interest among consumers, persuading them to investigate further.

The steps in the AIDA model are awareness, interest, desire, and action.

Several years ago, changes in advertising restrictions allowed pharmaceutical companies to begin promoting their products through traditional media. Today, it is common to see ads on television ending with, “Ask your doctor about (our medicine).” In addition to creating awareness about their drugs, the companies are hoping to

A. reduce deceptive advertising.

B. signal encoding symbols to simplify the feedback loop.

C. offer objective-and-task marketing communications.

D. stimulate interest, persuading consumers to investigate further.

E. promote public interest social responsibility communications.

D. stimulate interest, persuading consumers to investigate further.

The steps in the AIDA model are awareness, interest, desire, and action.

Once the marketing communication has captured the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from

A. “I want it” to “I like it.”

B. action to desire.

C. “I like it” to “I want it.”

D. interest to awareness.

E. feeling to thinking.
The interest stage of the AIDA model is represented by “I like it”; the next stage, desire, is represented by “I want it.”

C. “I like it” to “I want it.”

The interest stage of the AIDA model is represented by “I like it”; the next stage, desire, is represented by “I want it.”

Betty is assessing the effectiveness of her firm’s marketing communications. She knows the ultimate goal is to

A. maximize rating points.

B. minimize marketing communication expenditures.

C. shift encoding into decoding.

D. use personal selling to augment public relations.

E. drive the receiver to action.

E. drive the receiver to action.

Although many measures of marketing communications look at things like number of exposures, the eventual goal is to move a consumer to take action.

If marketing communications are effective, they will

A. result in purchases by some consumers receiving the communications.

B. offset any negative publicity the firm may have received.

C. minimize the number of communication channels used by the firm.

D. generate interest in the product in over half the consumers reached.

E. include all steps of the AIDA model with equal weighting to each step.

A. result in purchases by some consumers receiving the communications.

Although many measures of marketing communications look at things like number of exposures, the eventual goal is to move a consumer to take action (make a purchase).

One of the difficulties in measuring the effectiveness of IMC efforts is the __________, when consumers do not act immediately after receiving a marketing communication.

A. decoding decomposition effect

B. lagged effect

C. noncommittal effect

D. viral effect

E. click-through delay

B. lagged effect

If consumers responded instantly to marketing communications, measuring effectiveness would be much easier. In addition to the lagged effect, it often takes multiple exposures before a consumer fully processes a message.

Reaching the right audience with marketing communications is becoming more difficult because

A. consumers are bored.

B. government regulations are constraining free speech.

C. personal selling is becoming less expensive, making it more competitive with advertising.

D. the media environment has become more complicated.

E. the AIDA model no longer represents how marketing communication works.

D. the media environment has become more complicated.

The proliferation of communication media—driven largely by technology—has made it much more difficult to choose the best way to reach a target market.

When comparing the various communication channels available to marketing professionals, it becomes apparent that

A. consumers prefer advertising over other channels.

B. no single channel is better than another channel.

C. public relations is the least expensive but the most successful.

D. personal selling is the most expensive but the least successful.

E. online marketing is taking the place of advertising and public relations.

B. no single channel is better than another channel.

No single channel is necessarily better than another channel; the goal of IMC is to use them in conjunction so that the sum exceeds the total of the individual channels.

The goal of any marketing communication is to

A. maximize personal selling.

B. increase public relations click-through rates.

C. overwhelm negative publicity with commercial speech.

D. replace cause-related marketing with non-cause-related marketing.

E. get the right message to the right audience through the right media.

E. get the right message to the right audience through the right media.

A successful marketing communication strategy will get the right message to the right audience through the right media.

From a consumer’s perspective, all of the following are interactive elements of an IMC strategy EXCEPT

A. personal selling.

B. consumer contests.

C. mobile marketing.

D. public relations.

E. telemarketing.

D. public relations.

Personal selling, consumer contests, mobile marketing and telemarketing all involve direct interaction with a customer, as well as customer participation. Public relations involves building and maintaining a positive image, and customers do not need to take any action to receive it, making it a passive, rather than an interactive activity.

The proliferation of new media alternatives has led many firms to shift their promotional budgets from

A. publicity to public relations.

B. personal selling to advertising.

C. integrated marketing communications to diverse marketing communications.

D. stealth marketing to viral marketing.

E. advertising to direct marketing and website development.

E. advertising to direct marketing and website development.

Marketing dollars have recently been shifted toward direct marketing, website development, and product placement.

Compared to other IMC alternatives, advertising is extremely effective for

A. closing a sale.

B. efficient message decoding.

C. reducing the potential for noise.

D. creating awareness and generating interest in a product.

E. repositioning consumers in the AIDA model.

D. creating awareness and generating interest in a product

Advertising is best suited for creating awareness and interest. Because it is a relatively passive medium, it does not do as well at generating desire and spurring consumers to action

One difficulty associated with using advertising as part of a marketer’s IMC efforts is

A. breaking through the clutter of other messages targeted for the same audience.

B. that it is more expensive than personal selling.

C. that it only works when communicating to the most uninformed consumers.

D. that government regulations have significantly decreased allowable advertising frequencies.

E. that it is considered old-fashioned by many younger consumers.

A. breaking through the clutter of other messages targeted for the same audience.

The increasing volume of advertising has made it more difficult for an ad to break through the clutter.

Integrated marketing communications include all of the following EXCEPT

A. advertising.

B. supply chain management.

C. direct marketing.

D. public relations.

E. sales promotion.

B. supply chain management.

All of these except the supply chain are channels used in the IMC process.

Which statement best describes personal selling?

A. It involves a larger audience than advertising.

B. It is primarily indirect communication.

C. It is primarily informational communication, not persuasive communication.

D. It is the two-way flow of communication between a buyer and a seller.

E. It involves encoding whereas advertising involves only decoding.

D. It is the two-way flow of communication between a buyer and a seller.

Personal selling is the two-way flow of communication between a buyer and a seller.

Personal selling is an especially important part of IMC in

A. business-to-business markets.

B. cause-related marketing.

C. event sponsorships.

D. stealth marketing.

E. web tracking.

A. business-to-business markets.

Business-to-business markets make especially heavy use of personal selling.

Ryan is debating how to allocate the IMC budget for his new ski equipment store. He knows having knowledgeable salespeople in his store can simplify buyers’ purchase decisions. He should also consider that, compared to other IMC alternatives, personal selling is

A. easy.

B. expensive.

C. ineffective.

D. overrated.

E. simple.

B. expensive.

Although personal selling has many benefits, particularly for complex or expensive products, it can be an expensive form of integrated marketing communication.

Sales promotions include all of the following EXCEPT

A. coupons.

B. rebates.

C. online ads.

D. point-of-purchase displays.

E. free samples.

C. online ads.

Online ads are a form of advertising; all the remaining items are examples of sales promotion

Compared to mass media advertising, a key advantage of direct marketing is that

A. it allows for personalization of the message.

B. it reaches a larger audience.

C. it involves face-to-face contact.

D. it uses the rule-of-thumb budgeting method.

E. it is used almost exclusively for B2B marketing.

A. it allows for personalization of the message.

Direct marketing can be easily personalized to each consumer.

In recent years, the component of IMC that has received the greatest increase in spending is

A. media advertising.

B. direct marketing.

C. public relations.

D. sales promotions.

E. publicity.

B. direct marketing.

Direct marketing has received the greatest recent increase in aggregate spending.

Brenda wants to reduce mass media IMC and to increase the use of personalized marketing communication messages. To achieve this goal, Brenda will likely increase her use of

A. sales promotions.

B. advertising.

C. public relations.

D. price reductions.

E. direct marketing.

E. direct marketing

Direct marketing is the form of marketing communication that is most easily personalized.

Cora will be a bridesmaid next summer and has purchased her dress online. When she turns on her computer again, Cora is surprised to see special offers for matching accessories. This is an example of which marketing strategy?

A. sales promotions

B. media advertising

C. direct marketing

D. personal selling

E. public relations

C. direct marketing

Direct marketing is the form of marketing communication that is most easily personalized, including increased use of customer databases to track purchases made online.

The increased use of customer databases has enabled marketers to identify and track consumers over time and across purchase situations and has contributed to the rapid growth in

A. media advertising.

B. publicity.

C. public relations.

D. sales promotions.

E. direct marketing.

E. direct marketing.

Direct marketing is the form of marketing communication that is most easily personalized through the use of customer databases.

A major factor contributing to the growth in the use of direct marketing IMC efforts is

A. reduced government regulation of deceptive advertising practices.

B. expanded use of personal selling.

C. a shift from objective-and-task to rule-of-thumb budgeting.

D. increased use of credit and debit cards and online shopping by consumers.

E. the reduction in IMC noise, allowing for a decreased lagged effect.

D. increased use of credit and debit cards and online shopping by consumers.

Direct marketing is the form of marketing communication that is most easily personalized through the use of customer databases. The growth of these databases has been stimulated by increased use of credit cards and increased online shopping.

When purchasing books on Amazon.com, customers are shown other books and a message saying, “Customers who purchased (your book) also purchased…” This is an example of

A. mass media advertising.

B. publicity.

C. public relations.

D. sales promotions.

E. direct marketing.

E. direct marketing.

This kind of personalization is a form of direct marketing.

Public relations is the component of IMC that

A. supports other promotional efforts by generating free media attention.

B. has received the greatest increase in spending.

C. converts mass media advertising into direct marketing.

D. most effectively uses IMC encoding.

E. generates the most gross rating points.
Public relations manages a firm’s communications to achieve

A. supports other promotional efforts by generating free media attention.

Public relations manages a firm’s communications to achieve a variety of objectives, including building and maintaining a positive image and maintaining positive relationships with the media. As such, it strives to generate free attention from the media to support the rest of the IMC strategy.

Which of the following is most effective in building brand image, listing details about retail locations and educating customers about products and services?

A. corporate blog

B. faxed newsletter

C. Super Bowl ad

D. corporate website

E. Twitter

D. corporate website

Firms use their websites to build their brand image and educate customers about their products or services as well as where they can be purchased.

A __________ can be used to create positive word of mouth, help customers form a community, and develop long-term relationships between customers and the company.

A. corporate blog

B. faxed newsletter

C. Super Bowl ad

D. full-page ad in selected newspapers

E. public relations campaign

A. corporate blog

A blog contains periodic posts on a common web page. It can be used for all of the purposes listed as a way to communicate with customers.

Firms can use __________ to bring customers together to share experiences around the products.

A. surveys

B. social media

C. consumer outlets

D. brand associations

E. public relations

B. social media

Social media are media content distributed through social interaction—for example, YouTube, Facebook, and Twitter. Firms can use these sites to engage their customers in a proactive dialogue with other customers.

The goals of IMC need to

A. expand as the advertising budget expands.

B. be explicit and measurable.

C. be encoded before they can be decoded.

D. include both the noise effect and the transmitter effect.

E. be separate from budget.

B. be explicit and measurable.

All IMC goals should be explicitly defined and measured so that success can be evaluated.

Naomi is IMC manager for a chain of regional income tax service providers. Franchisees pay a percentage of their revenue to an IMC account allocated to her. As she establishes the short-term goals for her firm’s IMC efforts, her goals are likely to include

A. expanding customer loyalty by closing the feedback loop.

B. increasing market share, sales, and customer loyalty.

C. increasing inquiries, awareness, and trial of her firm’s services.

D. shifting customers to rule-of-thumb budgeting.

E. increasing the lagged effect.

C. increasing inquiries, awareness, and trial of her firm’s services.

Typical short-term IMC goals include generating inquiries, increasing awareness, and prompting trial of the firm’s products

Lamar is assessing the long-term effectiveness of his firm’s IMC efforts. He will probably analyze the firm’s success in

A. expanding customer loyalty by closing the feedback loop.

B. increasing market share, sales, and customer loyalty.

C. increasing inquiries, awareness, and trial of his firm’s services.

D. shifting customers to rule-of-thumb budgeting.

E. increasing the lagged effect.

B. increasing market share, sales, and customer loyalty.

Typical long-term IMC goals include increasing sales, market share, and customer loyalty.

Julie is developing a budget for her firm’s IMC program. First she sets objectives. Then she chooses media and finally, she determines the cost for each product to be promoted. Julie is using the __________ method of establishing an IMC budget.

A. reach and frequency

B. track and decode

C. objective-and-task

D. rule-of-thumb

E. sender-receiver

C. objective-and-task

The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives.

Using prior sales and communication activities to determine the present communication budget describes which method of IMC budgeting?

A. reach and frequency

B. track and decode

C. objective-and-task

D. rule-of-thumb

E. sender-receiver

D. rule-of-thumb

Rule-of-thumb methods such as the ones listed use prior sales and communication activities to determine the present communication budget.

When using the objective-and-task method of IMC budgeting for multiple products and services, how often must the process be repeated?

A. never, after the first product/service

B. once for each individual product and service

C. once by each management team member

D. only when a product is removed from the line

E. when the prior year’s budget is exceeded

B. once for each individual product and service

This process—set objectives, choose media, and determine costs—must be repeated for each product or service.

Yolanda asked her firm’s advertising agency to estimate how often consumers saw her firm’s IMC message and what percentage of the target audience was exposed to the message. Yolanda is asking for __________ data.

A. parity and affordability

B. sales and promotion

C. attitude change

D. rule-of-thumb

E. frequency and reach

E. frequency and reach

Frequency refers to the number of times the audience was exposed to a message, and reach refers to the percentage of the target population exposed to the message.

When Yolanda asked her firm’s advertising agency to estimate how often consumers saw her firm’s IMC message and what percentage of the target audience was exposed to the message, she was told the reach was 40, the frequency was 4, and the competitive parity was 10. The gross rating points for her firm’s campaign were

A. 160.

B. 1600.

C. 400.

D. 40.

E. The answer cannot be determined from this information.

A. 160.

Gross rating points (GRP) are computed by multiplying reach by frequency. Thus, in this case, GRP = 40 x 4 = 160.

To estimate reach in terms of electronic media, marketers can use the click-through rate (CTR). To do so, they need to know the number of clicks and

A. the number of destinations.

B. the number of impressions.

C. the cost per click.

D. how much time consumers spend viewing the ad or page.

E. the total number of clicks recorded by the industry.

B. the number of impressions.

The click-through rate is computed by dividing the number of clicks by the number of impressions.

Jim was asked to determine the ROI for a particular advertising effort. To do so, he needs to know

A. the internal rate of return and the projected expenditure level.

B. the total number of units sold and the total cost of sales.

C. sales revenue and advertising cost.

D. gross margin and advertising cost.

E. the advertising cost and the total communications expenditures.

C. sales revenue and advertising cost.
An ad for Bud Light ran six times during a recently televised football game. When measuring IMC results for this ad, six would be the __________ for this telecast.

A. frequency

B. reach

C. gross rating points

D. ROI

E. click-through rate

A. frequency
Sally could recall the brand of toothpaste she used only when a marketing researcher mentioned the brand. This is known as

A. aided recall.

B. unaided recall.

C. top-of-mind awareness.

D. brand preference.

E. brand indifference.

A. aided recall.
If you send an email and include a link, you can track how many people took the desired action of clicking the link. This is known as

A. the click-through rate.

B. impressions.

C. frequency.

D. gross rating points.

E. reach.

A. the click-through rate.
George wants to increase the number of visits to his insurance firm’s website, which specializes in rental insurance for college students. George decides to target Internet browsers who use the terms “apartment,” “insurance,” and “student.” Which of the following will be most helpful to George?

A. Twitter

B. corporate blog

C. Google AdWords

D. Google Chrome

E. Google Analytics

C. Google AdWords

Google AdWords is a search engine marketing tool offered by Google that allows advertisers to show up in the Sponsored Links section of the search results page based on the keywords potential customers use.

Which of the following is being used by a store owner who sends out a text message to all of her preferred customers, announcing the arrival of this season’s new clothing?

A. mobile marketing

B. social marketing

C. personal selling

D. sales promotions

E. advertising

A. mobile marketing

Mobile marketing sends messages through wireless handheld devices, such as cellular telephones.

The Salvation Army runs a campaign over the Christmas holidays called the Mobile Bell Ringer. Volunteers send text messages to their friends’ cell phones asking them to donate. Which type of marketing communication does this represent?

A. mobile marketing

B. public relations

C. personal selling

D. sales promotions

E. advertising

A. mobile marketing

Mobile marketing sends messages through wireless handheld devices, such as cellular telephones.

Red Bull sends out student brand managers to distribute free samples to their peers. What form of marketing communication is this?

A. sales promotion

B. direct marketing

C. public relations

D. mobile marketing

E. advertising

A. sales promotion

Free samples are a form of sales promotion.

Charming Charlie’s, a fashion accessories retailer, encourages visitors to its stores to check in using a smartphone app. In return, customers receive an instant coupon toward that day’s purchase. This is an example of

A. personal selling.

B. mobile marketing.

C. online marketing.

D. social media.

E. advertising.

B. mobile marketing.

Mobile marketing is marketing through wireless handheld devices, such as cellular telephones

Which of the following is the LEAST interactive IMC strategy?

A. personal selling

B. mobile marketing

C. online marketing via social media

D. direct marketing via catalog

E. direct marketing via telemarketing

D. direct marketing via catalog

The elements of an IMC strategy can be viewed on two axes: passive and interactive (from the consumer’s perspective) and offline and online. Direct marketing via catalog is considered a passive form.

A firm that places emphasis on developing and maintaining positive relationships with the media is focusing on a(n) ________ strategy.

A. personal selling

B. mobile marketing

C. advertising

D. direct marketing

E. public relations

E. public relations

Public relations is the organizational function that manages the firm’s communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media

As firms become more sophisticated in their communication efforts, the trend is toward company blogs becoming more

A. interactive.

B. expensive.

C. company-controlled.

D. consumer-controlled.

E. entertainment-oriented.

A. interactive.

Nowadays, blogs are becoming more interactive as the communication between bloggers and customers has increased.

When Apple’s famous 1984 “Big Brother” ad aired during the Super Bowl, it reached an estimated 500 million viewers. It aired only once on commercial television, but was seen in later years in at least ten television programs recalling great commercials. For its target audience, the frequency of this ad is measured as

A. one.

B. ten.

C. 500 million.

D. one/tenth.

E. 5 billion (ten times 500 million).

A. one.

Marketers measure the frequency of exposure—how often the target audience is exposed to a communication within a specified period of time.

A measure termed _______ describes how useful an ad message is to the consumer doing the search.

A. reliability

B. relevance

C. impression

D. awareness

E. return on investment

B. relevance

This is the definition of relevance

A firm’s marketing communication strategy is formulated specifically to

A. increase its frequency ratio.

B. control its public image.

C. increase its social media presence.

D. communicate the value of its product(s).

E. increase its return on investment.

D. communicate the value of its product(s).

Marketers must consider how to communicate the value of a product and/or service—or more specifically, the value proposition—to the target market. A firm must develop a communication strategy to demonstrate the value of its product.

In a television commercial for Chobani Greek yogurt, the manufacturer Chobani plays which role in the communication process?

A. sender

B. transmitter

C. encoder

D. channel

E. receiver

A. sender

The message originates from the sender, who must be clearly identified to the intended audience.

The manufacturer of Beats by Dr. Dre headphones decides to advertise in the lifestyles sections of big-city newspapers. However, this generates a limited response in sales. Which of the following represents a likely breakdown in the communication process here?

A. The message was decoded incorrectly.

B. The message was not transmitted.

C. The message was not received by its intended audience.

D. The message was encoded incorrectly.

E. The sender was not clearly identified.

C. The message was not received by its intended audience.

Noise is any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium. In this case, the message was not relevant to the audience who received it.

Lars wants to purchase a gift for a colleague whose home he will be visiting. He decides to bring luxury chocolates, because he knows most people enjoy them. Although he is not sure about specific products, Lars heads directly for a store selling Godiva Chocolates because he knows this is a high-end brand. Lars can be said to have

A. brand recall.

B. aided recall.

C. brand preference.

D. brand image.

E. brand awareness.

E. brand awareness.

Brand awareness refers to a potential customer’s ability to recognize or recall that the brand name is a particular type of retailer or product/service

The individual elements of an IMC strategy can be viewed on two axes: __________ (from the consumer’s perspective) and ________.

A. passive and interactive; tangible and intangible

B. mobile marketing and direct marketing; tangible and intangible

C. offline and online; low cost and high cost

D. passive and interactive; offline and online

E. static and changing; offline and online

D. passive and interactive; offline and online

The elements of an IMC strategy can be viewed on two axes: passive and interactive (from the consumer’s perspective) and offline and online.