MM 2nd Edition by Dawn Iacobucci – Test Bank

Chapter 11: Advertising Media and Integrated Marketing Communications

TRUE/FALSE

1. Advertising budgets are usually fixed, not variable.

ANS: T PTS: 1 REF: Page 158
MSC: AACSB Communication | TB&E Model Promotion | Knowledge of General Business Functions

2. Overall there is a fairly constant proportionality between advertising spending and income.

ANS: T PTS: 1 REF: Page 158
MSC: AACSB Analytic | TB&E Model Marketing Plan | Managing Administration & Control

3. Gross Rating Points is a simple function of reach and frequency, i.e., GRP = Reach  Frequency.

ANS: T PTS: 1 REF: Page 158
MSC: AACSB Communication | TB&E Model Promotion | Strategic & System Skills

4. Ken is the VP of Marketing at a large chain of family restaurants. Ken states that, in his opinion, the general rule of advertising is that an ad needs to be seen and processed three times to be persuasive. Ken’s opinion is consistent with the industry’s general rule of thumb today.

ANS: F PTS: 1 REF: Page 159
MSC: AACSB Communication | TB&E Model Promotion | Strategic & System Skills

5. Ken is the VP of Marketing at a large chain of family restaurants. He is a strong proponent of advertising heavily and investing in promotional spending because there is a strong relationship between these activities and the market value of a firm. Ken’s thought process is widely accepted as correct because a clear link of causality between advertising and promotional spending and market value exists.

ANS: F PTS: 1 REF: Page 159
MSC: AACSB Analytic | TB&E Model Research | Managing Strategy & Innovation

6. Arbitron is a large media and market research firm primarily engaged in print media.

ANS: F PTS: 1 REF: Page 160
MSC: AACSB Analytic | TB&E Model Research | Strategic & System Skills

7. Josh is in charge of media planning for a company that makes Halloween costumes. Seasonal ads would be a good advertising strategy for Josh’s company, because they are infrequent and focused on the preterm season for the product, and advertising outside the season would not induce additional purchases.

ANS: T PTS: 1 REF: Page 161
MSC: AACSB Communication | TB&E Model Promotion | Knowledge of Media Communications & Delivery

8. The measure of advertising effectiveness needs to match the advertisement’s strategic goal(s).

ANS: T PTS: 1 REF: Page 161
MSC: AACSB Reflective Thinking | TB&E Model Customer | Knowledge of Media Communications & Delivery

9. IMC encourages marketers to create consistent, yet different, marketing messages across different types of media.

ANS: T PTS: 1 REF: Page 161
MSC: AACSB Communication | TB&E Model Customer | Knowledge of Media Communications & Delivery

10. TV ads are vivid and dramatic and should be used for complex products, while print media is informative and should be used for simplistic products.

ANS: F PTS: 1 REF: Page 161
MSC: AACSB Communication | TB&E Model Promotion | Knowledge of Media Communications & Delivery