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<p>Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 Chapter 1 – Integrated marketing communications and brand equity enhancement TRUE/FALSE 1. Marketing communications represents all the elements in a brand’s marketing mix that facilitate exchanges by establishing shared meaning with the brand’s customers or clients. ANS: T PTS: 1 DIF: Moderate TOP: The nature of marketing communications 2. Advertising is a form of person-to-person communication. ANS: F PTS: 1 DIF: Easy TOP: The marketing communications mix 3. Sales promotion is designed to create brand awareness. ANS: F PTS: 1 DIF: Easy TOP: The marketing communications mix 4. The concept of brand equity is considered only from the perspective of the customer. ANS: F PTS: 1 DIF: Moderate TOP: The concept of brand equity 5. A brand is a name, term, sign, symbol or design, or a combination of these, that identifies the goods and services of one seller or group of sellers and differentiates them from those of competitors. ANS: T PTS: 1 DIF: Difficult TOP: The concept of brand equity 6. Successful IMC requires that communication efforts be directed at encouraging some form of investment. ANS: F PTS: 1 DIF: Moderate TOP: Influence the target market’s behaviour 7. The use of IMC is restricted to the mass media. ANS: F PTS: 1 DIF: Moderate TOP: Use the relevant media channels 8. A positioning statement is the key idea that encapsulates what a brand is intended to stand for in its target market’s mind. ANS: T PTS: 1 DIF: Moderate TOP: Achieve communication synergy 9. All modern organisations use various forms of marketing communications to promote their offerings. ANS: T PTS: 1 DIF: Moderate TOP: The nature of marketing communications 10. Advertising consists of all marketing activities that attempt to stimulate quick buyer action or immediate sales of a product. ANS: F PTS: 1 DIF: Moderate TOP: The marketing communications mix 11. The goal of IMC is to directly influence employees’ perception of the brand. ANS: F PTS: 1 DIF: Moderate TOP: Influence the target market’s behaviour 12. IMC is a communications process that entails the planning, creation, integration and implementation of diverse forms of marketing communications that are delivered over time to a brand’s targeted customers and prospects. ANS: T PTS: 1 DIF: Difficult TOP: A definition of IMC 13. Regardless of cost, mass media advertising will always be the best approach for marketing a brand. ANS: F PTS: 1 DIF: Moderate TOP: Reduced dependence on mass media advertising 14. IMC does not require that all of a brand’s communication media and messages deliver a consistent message. Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 ANS: F PTS: 1 DIF: Moderate TOP: A definition of IMC 15. From the consumer’s perspective, accepted brands offer assurances of consistent quality and performance, thereby reducing risk associated with buying the brand. ANS: T PTS: 1 DIF: Difficult TOP: Marketing communications at the brand level 16. A ‘brand’ is a convenient (and appropriate) label for describing only a single object of concerted marketing efforts. ANS: F PTS: 1 DIF: Difficult TOP: Marketing communications at the brand level 17. According to Keller, brand awareness is made up of brand recall and brand image. ANS: F PTS: 1 DIF: Moderate TOP: Brand awareness 18. Increased efforts to assess marketing communications’ return on investment constitute one of the reasons for the shift towards IMC. ANS: T PTS: 1 DIF: Moderate TOP: Increased efforts to assess marketing communications’ return on investment 19. The objective of IMC is to reach the target audience efficiently and effectively via one mass media avenue. ANS: F PTS: 1 DIF: Moderate TOP: A definition of IMC 20. The two types of decisions that need to be made when developing a marketing communications program are fundamental decisions and subsequent decisions. ANS: F PTS: 1 DIF: Moderate TOP: The marketing communications process 21. A brand has no equity if only a small number of customers are familiar with it. ANS: F PTS: 1 DIF: Moderate TOP: The marketing communications process 22. The key feature of IMC planning is that it must start with building relationships between the brand and the customer. ANS: F PTS: 1 DIF: Difficult TOP: Profile the identified target market 23. The goal of IMC is to affect the behaviour of the targeted audience. ANS: T PTS: 1 DIF: Moderate TOP: A definition of IMC 24. The positioning of the brand is an implementation decision that needs to be made in the initial stages of the marketing communications program. ANS: F PTS: 1 DIF: Moderate TOP: The marketing communications process 25. Brands perform a critical strategic role by providing a key means for differentiating one company’s offering from those of competing brands. ANS: T PTS: 1 DIF: Moderate TOP: Marketing communications at the brand level 26. Point-of-purchase communications are effective in creating brand awareness, whereas mass media advertising stimulates in-store brand selection. ANS: F PTS: 1 DIF: Moderate TOP: The marketing communications mix 27. The types of marketing communications chosen to market a brand depend on the communication objectives of the campaign. ANS: T PTS: 1 DIF: Moderate TOP: Setting objectives Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 28. Wasted coverage is avoided through targeting. ANS: T PTS: 1 DIF: Moderate TOP: Targeting 29. The allocation of resources among various types of marketing communications is categorised as an implementation decision. ANS: T PTS: 1 DIF: Moderate TOP: Budgeting 30. The trend over the past two decades has been to spend more money on advertising and less on promotions. ANS: F PTS: 1 DIF: Difficult TOP: Selecting the mix of marketing communication elements 31. Positioning, targeting, setting objectives and budgeting are all evaluative decisions. ANS: F PTS: 1 DIF: Easy TOP: The marketing communications process 32. The primary objective of marketing communications is to enhance brand equity and to move the customer to take favourable action in relation to the brand. ANS: T PTS: 1 DIF: Difficult TOP: the marketing communications process 33. Advertising consists of all the messages about the brand. ANS: F PTS: 1 DIF: Difficult TOP: The marketing communications mix 34. Although it is impossible to determine a mathematically optimal mixture of advertising and promotion expenditures, a satisfactory mixture can be formulated by considering the different purposes of each of the marketing communication tools. ANS: T PTS: 1 DIF: Difficult TOP: Selecting the mix of marketing communication elements 35. Too much advertising and not enough promotion can diminish a brand’s future value. ANS: F PTS: 1 DIF: Moderate TOP: Selecting the mix of marketing communication elements 36. Inherent in the definition of IMC is the need for synergy. ANS: T PTS: 1 DIF: Easy TOP: Achieve communication synergy 37. Most budgeting practices involve a combination of top-down and all-over budgeting. ANS: F PTS: 1 DIF: Moderate TOP: Budgeting 38. In the automobile market, large competitors such as Toyota, Holden and Ford have to spend a larger proportion of their sales on advertising than smaller competitors such as Hyundai, Daewoo and Mazda. ANS: F PTS: 1 DIF: Difficult TOP: Establishing momentum 39. One reason why it is extremely important to effectively evaluate any marketing communications program is the increasing demand for accountability in organisational spending. ANS: T PTS: 1 DIF: Difficult TOP: Program evaluation 40. According to Keller, brand equity comprises brand awareness and brand knowledge. ANS: F PTS: 1 DIF: Moderate TOP: The concept of brand equity Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 41. The main types of marketing communications are advertising, digital marketing communications, direct marketing, sales promotion, personal selling, sponsorship, marketing public relations and point-of-purchase communications. ANS: T PTS: 1 DIF: Moderate TOP: The marketing communications mix 42. Deciding on a campaign’s creative strategy is a fundamental decision in the marketing communications program. ANS: F PTS: 1 DIF: Difficult TOP: The marketing communications process 43. It is easy to establish a brand that will become well known and respected. ANS: F PTS: 1 DIF: Easy TOP: Marketing communications at the brand level 44. Brand recall reflects a relatively superficial level of awareness, whereas brand recognition indicates a deeper form of awareness. ANS: F PTS: 1 DIF: Difficult TOP: Brand awareness 45. The marketing communications imperative is to move brands from a state of unawareness to a state of recognition, then to recall, and ultimately to top-of-mind awareness (TOMA). ANS: T PTS: 1 DIF: Moderate TOP: Brand awareness 46. A brand can leverage associations by connecting itself with other brands, places, things and people. ANS: T PTS: 1 DIF: Moderate TOP: Brand equity 47. Co-branding occurs when two or more brands enter into a partnership that potentially serves to enhance both brands’ equity and profitability. ANS: T PTS: 1 DIF: Difficult TOP: Co-branding and world-class brands 48. A potential downside for the host brand with respect to ingredient branding is that it runs the risk of being turned into a mere commodity. ANS: T PTS: 1 DIF: Difficult TOP: Co-branding and world-class brands 49. Some brands have such exceptional brand equity that they deserve the label ‘world-class’. ANS: T PTS: 1 DIF: Moderate TOP: Characteristics of world-class brands 50. Fundamental decisions that are part of a marketing communications program are practical and tactical. ANS: F PTS: 1 DIF: Difficult TOP: Marketing communication implementation decisions 51. Implementation decisions that are part of a marketing communications program are conceptual and strategic. ANS: F PTS: 1 DIF: Difficult TOP: Marketing communication implementation decisions 52. Establishing momentum is a critical strategy for new brands entering the market place. ANS: F PTS: 1 DIF: Moderate TOP: Establishing momentum 53. Setting marketing communication objectives is unnecessary for not-for-profit organisations. ANS: F PTS: 1 DIF: Easy TOP: Setting objectives 54. All companies use marketing communications in some form or another. ANS: T PTS: 1 DIF: Easy TOP: Introduction Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 55. Marketing communications is not a critical component of effective marketing. ANS: F PTS: 1 DIF: Easy TOP: Introduction 56. The term ‘marketing communications’ represents the totality of promotions. ANS: T PTS: 1 DIF: Moderate TOP: The nature of marketing communications 57. Digital marketing communications does not include social media channels or search engine advertising. ANS: F PTS: 1 DIF: Easy TOP: The marketing communications mix 58. Point-of-purchase communications are the only influence on consumer buying decisions at the point of purchase. ANS: F PTS: 1 DIF: Moderate TOP: The marketing communications mix 59. The increased use of customer data by mainstream retailers has allowed them to make business decisions that are less intuitive. ANS: T PTS: 1 DIF: Easy TOP: The marketing communications mix 60. Sales promotion attempt to stimulate buyer action or immediate sales results, whereas advertising is designed to accomplish communication objectives, such as creating brand awareness and influencing customer attitudes. ANS: T PTS: 1 DIF: Moderate TOP: The marketing communications mix 61. Marketing public relations does not involve non-personal communications to a mass audience. ANS: F PTS: 1 DIF: Moderate TOP: The marketing communications mix 62. IMC is a strategic process that integrates all the elements of the promotional mix with the brand’s marketing mix, to optimise short-term and long-term value of an organisation’s brand. ANS: F PTS: 1 DIF: Moderate TOP: The foundations of integrated marketing communications 63. Marketers are allocating a greater proportion of their marketing communications budgets to interactive social media, and reducing spending on some mass media platforms. ANS: T PTS: 1 DIF: Easy TOP: The foundations of integrated marketing communications 64. Ethical changes to marketing communication practices have been influential in changing traditional communications practices and to the adoption of an IMC approach. ANS: T PTS: 1 DIF: Easy TOP: Ethical changes to marketing communication practices 65. A brand’s position is the key feature, benefit or image that it represents amongst its major competitors. ANS: F PTS: 1 DIF: Easy TOP: Fundamental marketing communication decisions – Positioning 66. One of the major benefits of enhancing brand equity is that consumer brand awareness will also increase. ANS: T PTS: 1 DIF: Easy TOP: Brand equity MULTIPLE CHOICE Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 1. A form of person-to-person communication would be ____________. A advertising B sales promotion C personal selling D promotion E None of the answers supplied for this question are correct. ANS: C PTS: 1 DIF: Moderate TOP: The marketing communications mix 2. Advertising ____________. A is a form of person-to-person communication B consists of all marketing activities that attempt to stimulate quick buyer action C consists of all marketing activities that attempt to stimulate immediate sales of a product D often assumes the form of news items E involves direct communication that is pinpointed to each B2B customer or ultimate consumer ANS: E PTS: 1 DIF: Difficult TOP: The marketing communications mix 3. Sales promotions are designed to ____________. A create brand awareness B influence customer attitudes C stimulate immediate sales of a product D reduce manufacturing costs E All of the answers supplied for this question are correct. ANS: C PTS: 1 DIF: Moderate TOP: The marketing communications mix 4. The practice of promoting the interests of a company and its brands by associating with a specific event is known as ____________. A sales promotion B publicity C point-of-purchase communications D advertising E sponsorship marketing ANS: E PTS: 1 DIF: Moderate TOP: The marketing communications mix 5. A(n) ____________ is the key idea that encapsulates what a brand is intended to stand for in its target market’s mind. A advertising platform B positioning statement C mission statement D advertising objective E vision ANS: B PTS: 1 DIF: Difficult TOP: Achieve communication synergy 6. For the firms that market them, brands play a key role in ____________. A achieving economies of scale by producing a brand in mass quantity B creating barriers to entry for competitors who want to introduce their own brands C providing a key means for differentiating one company’s offering from competitive brands D enabling a manufacturer to gain leverage vis-á-vis retailers and other marketing intermediaries E All of the answers supplied for this question are correct. Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 ANS: E PTS: 1 DIF: Difficult TOP: Marketing communications at the brand level 7. A ____________ is a name, term, sign, symbol or design, or a combination of these, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors. A brand B market C tradename D trademark E guarantee ANS: A PTS: 1 DIF: Moderate TOP: The concept of brand equity 8. IMC starts with profiling the ____________. A manufacturer B wholesaler C retailer D customer E competitors ANS: D PTS: 1 DIF: Easy TOP: Key features of IMC 9. The goal of IMC is to ____________. A increase brand awareness B affect the behaviour of the targeted audience C learn how to outsell the competition D lower production costs E All of the answers supplied for this question are correct. ANS: B PTS: 1 DIF: Moderate TOP: Influence the target market’s behaviour 10. IMC ____________. A is limited to the use of mass media B starts with identifying the major competitors C strives to achieve synergy D has the main objective of increasing brand awareness E All of the answers supplied for this question are correct. ANS: C PTS: 1 DIF: Moderate TOP: Achieve communication synergy 11. Initially, the marketing communication program involves making ____________. A fundamental decisions and budgeting decisions B fundamental decisions and implementation decisions C implementation decisions and evaluation decisions D financial decisions and evaluation decisions E None of the answers supplied for this question are correct. ANS: B PTS: 1 DIF: Moderate TOP: Making brand-level marketing communication decisions 12. The adoption of IMC necessitates ____________. A increased faith in mass media advertising B decreased reliance on highly targeted communication methods C greater demands imposed on communication suppliers D decreased efforts to assess communications’ return on investment E None of the answers supplied for this question are correct. Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 ANS: C PTS: 1 DIF: Difficult TOP: Changes in marketing communication practices 13. IMC requires that all of a brand’s communication media ____________. A deliver consistent messages B reach the same audience C utilise in-store displays D seek long-term objectives E All of the answers supplied for this question are correct. ANS: A PTS: 1 DIF: Moderate TOP: Achieve communication synergy 14. Marketing communications implementation decisions include ____________. A mixing elements, creating messages, selecting media and establishing momentum B creating messages, planning media and evaluating responses C designing advertisements, pre-testing advertisements and evaluating responses to advertisements D mixing elements, creating messages, selecting media and evaluating responses E none of the answers supplied for this question are correct ANS: A PTS: 1 DIF: Difficult TOP: Marketing communication implementation decisions 15. The marketing mix for a brand consists of ____________. A product B price C promotion D place E All of the answers supplied for this question are correct. ANS: E PTS: 1 DIF: Easy TOP: The nature of marketing communications 16. In general, the single-voice, or synergy, principle involves selecting a specific ____________ for a brand. A positioning statement B marketing mix C pricing strategy D advertising budget E None of the answers supplied for this question are correct. ANS: A PTS: 1 DIF: Difficult TOP: Achieve communication synergy 17. The notion that all elements of the marketing mix must be coordinated and that all must speak with one voice is called ____________. A micromarketing B integrated marketing communications C the marketing concept D the promotion concept E the single-voice theory of communications ANS: B PTS: 1 DIF: Moderate TOP: Achieve communication synergy 18. An implicit characteristic of IMC is the building of relationships with customers. Which of the following features is not a characteristic of relationship building? A repeat purchases B huge acquisition costs Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 C enduring links between a brand and consumers D customer loyalty E None of the answers supplied for this question are correct. ANS: B PTS: 1 DIF: Difficult TOP: Build customer relationships 19. Fundamental marketing communication decisions include ____________. A positioning, mixing elements, budgeting and setting objectives B targeting, budgeting, evaluating and planning C positioning, evaluating, planning and forecasting D positioning, targeting, setting objectives and budgeting E None of the answers supplied for this question are correct. ANS: D PTS: 1 DIF: Moderate TOP: The marketing communications process 20. Using different forms of marketing communications, communications’ basic objective is to ____________. A facilitate the successful introduction of new brands B improve corporate relations with special interest groups C create good publicity D increase customer loyalty E All of the answers supplied for this question are correct. ANS: E PTS: 1 DIF: Moderate TOP: Setting objectives 21. The TOMA model represents ____________. A too many advertisements B top-of-mind awareness C top model appreciation D towards money allocation E None of the answers supplied for this question are correct. ANS: B PTS: 1 DIF: Easy TOP: Brand awareness 22. The process whereby thoughts are conveyed and meaning is shared between individuals or between organisations and individuals is known as ____________. A communication B marketing C personal selling D exchanging E promotion ANS: A PTS: 1 DIF: Easy TOP: The nature of marketing communications 23. Some brands have such an exceptional ____________ that they deserve to be known as ‘world-class’ brands. A brand equity B design C innovation D market share E shareholders ANS: A PTS: 1 DIF: Difficult TOP: Characteristics of world- class brands 24. According to Keller, brand awareness comprises ____________. A brand knowledge and brand experience Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 B brand recognition and brand recall C brand knowledge and brand recall D brand equity and brand knowledge E None of the answers supplied for this question are correct. ANS: B PTS: 1 DIF: Moderate TOP: Brand awareness 25. Products that are high in quality and represent good value potentially possess high ____________. A brand availability B brand equity C brand personality D All of the answers supplied for this question are correct. E None of the answers supplied for this question are correct. ANS: B PTS: 1 DIF: Difficult TOP: Brand equity 26. According to the brand awareness pyramid, top-of-mind awareness (TOMA) comes directly after consumers ____________. A recognise the brand B buy the brand C recall the brand D trial the brand E None of the answers supplied for this question are correct. ANS: C PTS: 1 DIF: Moderate TOP: Brand awareness 27. According to the brand awareness pyramid, consumers begin by being ____________. A aware of the brand B true to the brand C unaware of the brand D not sure of the brand E skeptical of the brand ANS: C PTS: 1 DIF: Easy TOP: Brand awareness 28. The basic dimension of brand equity is ____________. A brand image B brand associations C brand personality D brand awareness E All of the answers supplied for this question are correct. ANS: D PTS: 1 DIF: Moderate TOP: Brand awareness 29. When a brand has strong, favourable and unique associations in consumers’ minds, this is an example of ____________. A brand equity B brand personality C brand dimensions D brand associations E brand value ANS: A PTS: 1 DIF: Moderate TOP: Brand image 30. According to Keller, brand knowledge comprises ____________. A brand equity and brand image Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 B brand equity and brand communications C brand awareness and brand image D brand awareness and brand loyalty E brand awareness and brand advertising ANS: C PTS: 1 DIF: Moderate TOP: The concept of brand equity 31. When two brands enter into an agreement that has the potential to enhance the brand equity and profitability of both brands, this is known as ____________. A dual branding B dominant branding C equitable branding D co-branding E twin branding ANS: D PTS: 1 DIF: Moderate TOP: Co-branding and world-class brands 32. The most important requirement for successful co-branding is that the brands possess ____________. A a common budget B a common manufacturing base C a common fit D a common country of origin E None of the answers supplied for this question are correct. ANS: C PTS: 1 DIF: Moderate TOP: Co-branding and world-class brands 33. The goal of establishing successful relationships between customers and brands is to generate ____________. A customer loyalty B increased revenues C synergy D brand equity E None of the answers supplied for this question are correct. ANS: A PTS: 1 DIF: Moderate TOP: Build customer relationships 34. Making brand-level marketing communications decisions include making ____________. A fundamental decisions and implementation decisions B evaluation decisions and financial decisions C short-term decisions and long-term decisions D fundamental decisions and subsequent decisions E None of the answers supplied for this question are correct. ANS: A PTS: 1 DIF: Difficult TOP: Making brand-level marketing communication decisions 35. An example of ingredient branding is when ____________. A you buy a Qantas flight ticket with an American Express credit card B you buy petrol and groceries at the same retail outlet C ink is placed in a Bic pen D Nicole Kidman advertises Chanel E Dell computers have a sticker on them saying ‘Intel Inside’ ANS: E PTS: 1 DIF: Moderate TOP: Co-branding and ingredient branding 36. An example of co-branding is when ____________. Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 A you buy a Qantas flight ticket with an American Express credit card B you buy petrol and groceries at the same retail outlet C ink is placed in a Bic pen D Nicole Kidman wears Chanel E None of the answers supplied for this question are correct. ANS: E PTS: 1 DIF: Moderate TOP: Co-branding and ingredient branding 37. Fundamental marketing communications involves making decisions about ____________. A targeting B positioning C campaign objectives D budgets E All of the answers supplied for this question are correct. ANS: E PTS: 1 DIF: Moderate TOP: The marketing communications process 38. Fundamental marketing communications decisions are ____________, while implementation decisions are ____________. A conceptual; strategic B conceptual; practical C practical; tactical D tactical; conceptual E practical; conceptual ANS: B PTS: 1 DIF: Moderate TOP: Marketing communication implementation decisions 39. The trend over the last two decades has been to spend ____________. A more on billboards and less on movie advertising B more on advertising and less on promotions C more on promotions and less on advertising D less on both advertising and promotions E more on both advertising and promotions ANS: C PTS: 1 DIF: Difficult TOP: Selecting the mix of marketing communication elements 40. Key features of IMC include ____________. A profiling the target market and using the relevant media B achieving communication synergy C building customer relationships D influencing the target market’s behaviour E All of the answers supplied for this question are correct. ANS: E PTS: 1 DIF: Moderate TOP: Key features of IMC 41. When the NutraSweet logo is included on the packaging of brands such as Diet Coke, this is an example of ____________. A ingredient branding B co-operative branding C brand equity D brand endorsements E All of the answers supplied for this question are correct. ANS: A PTS: 1 DIF: Moderate TOP: Co-branding and world-class brands Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 42. The way to create favourable, strong and unique brand associations is through ____________. A brand image B brand personality C marketing communications D brand equity E None of the answers supplied for this question are correct. ANS: C PTS: 1 DIF: Moderate TOP: Brand equity 43. The increasing demand for accountability means that ____________ is very important. A branding B program evaluation C objective setting D advertising E direct mailing ANS: B PTS: 1 DIF: Moderate TOP: Program evaluation 44. What is the initial challenge for new brands? A achieving brand awareness B enhancing brand image C achieving brand preference D achieving brand insistence E building revenue premium ANS: A PTS: 1 DIF: Moderate TOP: Brand awareness 45. The new Myer Visa card is an example of ____________. A ingredient branding B personality branding C retail branding D co-branding E services branding ANS: D PTS: 1 DIF: Moderate TOP: Co-branding and ingredient branding 46. Brand meaning can be leveraged by ____________. A employees B endorsers C alliances D All of the answers supplied for this question are correct. E None of the answers supplied for this question are correct. ANS: D PTS: 1 DIF: Difficult TOP: Brand equity 47. Before consumers recognise the brand they must ____________. A be aware of the brand B buy the brand C recommend the brand D go to the shopping mall E None of the answers supplied for this question are correct. ANS: A PTS: 1 DIF: moderate TOP: Brand awareness 48. World-class brands possess high brand equity because they are well known and possess strong and favourable ____________ in consumers’ minds. Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 A consumer products B brand association C service provision D brand personality E market share ANS: B PTS: 1 DIF: Moderate TOP: Characteristics of world-class brands 49. May is asked by a market researcher to list all the brands of toothpaste she can think of. Which type of awareness is this assessing? A recall B recognition C positive awareness D free-association awareness E aided recognition ANS: A PTS: 1 DIF: Difficult TOP: Brand awareness 50. Anne is asked by a market researcher to tell him the particular thoughts and feelings she has about UWS libraries. A particular thought or feeling that comes to Anne’s mind is known as a(n) ____________. A brand dimension B cognition C brand link D association E think–feel linkage ANS: D PTS: 1 DIF: Difficult TOP: Brand image 51. Marketing communicators ____________ meaning and create associations for their brands by connecting them with other objects that already possess well-known meaning. A promote B locate C leverage D advertise E obtain ANS: C PTS: 1 DIF: Moderate TOP: Brand equity 52. Jenny went into a jeweller’s shop to look at the watches, but she was unfamiliar with some of the brands. The salesperson told her that they were all Swiss-made, meaning they were made in Switzerland, which is known worldwide for the quality of the timepieces produced there. From which source are these brands leveraging their brand meaning? A other brands B people C places D things E names ANS: C PTS: 1 DIF: Moderate TOP: Brand equity 53. Which of the following is a source by which brand meaning can be leveraged? A other brands B places C things D people Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 E All of the answers provided for this question are correct. ANS: E PTS: 1 DIF: Moderate TOP: Brand equity 54. The objective of marketing communications is to enhance brand equity as a means of ____________. A defining the marketing mix B increasing consumer brand loyalty C increasing short-term sales D reducing the advertising budget E reducing the promotional budget ANS: B PTS: 1 DIF: Difficult TOP: Brand equity 55. The following events have been influential in changing marketing communication practices: A increased reliance on billboard advertising B decreased usage of highly targeted communication methods C greater competitive environment in luxury goods D increased efforts to invest in brand’s recall strategies E None of the answers supplied for this question are correct. ANS: E PTS: 1 DIF: Difficult TOP: Changes in marketing communication practices 56. A marketing communication objective is ____________. A to improve market share B to reward shareholders C to expand the sales force D to make the brand the envy of the market place E None of the answers supplied for this question are correct. ANS: E PTS: 1 DIF: Easy TOP: Setting objectives 57. It has been said that marketing and communications ____________. A are virtually inseparable B require total organisation effort C are difficult to monitor in a competitive environment D produce rewarding return on investment E None of the answers supplied for this question are correct. ANS: A PTS: 1 DIF: Easy TOP: The nature of marketing communications 58. Profiling a target market involves____________. A collecting competitor’s information B analysing past purchase orders C determining their lifestyles D selecting the most suitable statistical method E None of the answers supplied for this question are correct. ANS: C PTS: 1 DIF: Easy TOP: Profile the identified target market 59. It is important that all the elements of the marketing communication mix are integrated to achieve an organisation’s marketing communication objectives and to enhance the organisation’s ____________. A market share B return on investments Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 C brand equity D shareholders’ value E marketing mix ANS: C PTS: 1 DIF: Moderate TOP: Introduction 60. The term ‘integrated marketing communications’ includes all the major types of ____________. A marketing communications B advertising C traditional marketing communications D mass media E sales promotions ANS: A PTS: 1 DIF: Easy TOP: The nature of marketing communications 61. Database marketing is an integral part of direct marketing because it provides companies with information that allows them to profile their customers and to ____________. A establish long-term relationships B expand their market share C increase add-on sales D set their advertising budget E lower production costs ANS: A PTS: 1 DIF: Moderate TOP: The marketing communications mix 62. Spending on digital marketing communications – particularly mobile advertising – is increasing, while spending on ____________ is static. A market research B mass marketing communications C packaging D direct marketing E point-of-purchase communication ANS: B PTS: 1 DIF: Moderate TOP: The marketing communications mix 63. Program evaluation is accomplished by ____________. A developing a budget that is based on marketing communications objectives B comparing budgeted marketing communications expenditures against share-of-voice C collecting data on consumers’ demographics and lifestyles D developing a guiding structure within the fundamental decisions E measuring the results of marketing communications effort against the objectives that were established ANS: E PTS: 1 DIF: Difficult TOP: Program evaluation 64. The word ____________ refers to an object’s force or speed of movement. A drive B push C momentum D force E pull ANS: C PTS: 1 DIF: Moderate TOP: Establishing momentum 65. By far the most frequently used budgeting method is ____________, especially in firms where marketing departments have greater influence than finance units. Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 A top-down (TD) B bottom-up (BU) C top-down/bottom-up/top-down (TDBUTD) D bottom-up/top-down (BUTD) E top-down/bottom-up (TDBU) ANS: D PTS: 1 DIF: Moderate TOP: Budgeting 66. ____________ allows marketing communicators to deliver messages more precisely and to prevent wasted coverage to people falling outside the intended audience. A Segmenting B Setting objectives C Positioning D Targeting E Momentum ANS: D PTS: 1 DIF: Moderate TOP: Targeting 67. A brand’s ____________ represents the key feature, benefit, or image that it stands for in the target audience’s collective mind. A equity B image C position D name E trademark ANS: C PTS: 1 DIF: Moderate TOP: Positioning 68. The term or concept ‘media’ applies to which marketing communications tool? A advertising B public relations C promotions D personal selling E all of these choices ANS: E PTS: 1 DIF: Moderate TOP: Selecting media 69. Systematic decision making requires the message content in advertisements or promotions, on packages or at events to be predicated on the brand’s ____________ strategy. A IMC B marketing C objective D budgeting E positioning ANS: E PTS: 1 DIF: Difficult TOP: Creating messages ESSAY 1. Explain the five key features that underpin the philosophy and practice of integrated marketing communications. ANS: The five key IMC features are: 1. Profile the identified target market. The IMC approach avoids an ‘inside-out’ approach (from company to customer) in identifying who to speak to. Instead, IMC Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 starts with profiling and understanding customer (‘outside-in’) needs, wants, opinions, interest, purchase behaviours and media habits to determine those communication methods that will best serve the customers’ information needs and motivate them to purchase the brand. The point of this feature is that brand managers and their agencies should not restrict themselves to only one set of communication media. 2. Use the relevant media channels. Carefully select those tools that are the most appropriate for the communications objective at hand and relevant to your brand’s target audience. Practitioners of IMC need to be receptive to using all forms of touch points, or contacts, as potential message delivery channels. The key feature of this IMC element is that it reflects a willingness on the part of brand communicators to use any communication outlets that are appropriate for reaching the target audience. 3. Achieve communication synergy – that is, speak with a single voice. Inherent in the philosophy and practice of IMC is the demand that a brand’s assorted communication elements must all strive to present the same message and convey that message consistently across diverse message channels, or points of contact. Coordination of messages and media is absolutely critical to achieving a strong and unified brand image and moving consumers to action. In general, the single-voice principle involves selecting a specific positioning statement for a brand. 4. Influence target market’s behaviour. Marketing communications must do more than just influence brand awareness or enhance consumer attitudes toward the brand. The objective, in other words, is to move people to action. 5. Build customer relationships. A relationship is an enduring link between a brand and its customers. Successful relationships between customers and brands lead to repeat purchasing and perhaps even loyalty towards a brand. One way to build brand/customer relationships is the use of frequency, loyalty or ambassador programs. Relationships also are nurtured by creating brand experiences that make positive and lasting impressions, such as special events. PTS: 1 DIF: Moderate TOP: Key features of IMC 2. Compare and contrast the terms ‘promotion’ and ‘marketing communications’, and list the primary tools of marketing communications. ANS: The ‘4P’ characterisation of marketing has led to widespread use of the term promotion for describing communications with prospects and customers. However, the term marketing communications is preferred by most marketing practitioners as well as many educators and is the term used to refer to the collection of advertising, sales promotion, public relations, event marketing and other communication devices; comparatively, the text uses the term promotions as a shorthand reference to sales promotions. The primary tools of marketing communications include media advertising (e.g. TV, radio, magazines, newspapers), direct response and interactive advertising (e.g. direct mail, telephone solicitation, online advertising), place advertising (e.g. billboards and bulletins, posters, transit ads, cinema ads), store signage and point-of-purchase advertising (e.g. external store signs, in-store shelf signs, shopping cart ads, in-store radio and TV), trade- and consumer-oriented promotions (e.g., trade deals and buying allowances, display and advertising allowances, trade shows, cooperative advertising, samples, coupons, premiums, refunds/rebates, contests/sweepstakes, promotional games, bonus packs, price-off deals), and event marketing and sponsorships (e.g., sponsorship of sporting events, arts, fairs, festivals, and causes). Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 PTS: 1 DIF: Moderate TOP: The nature of marketing communications 3. Discuss the benefits of brand equity from the firm’s perspective. ANS: The firm-based viewpoint of brand equity focuses on outcomes extending from efforts to enhance a brand’s value to its various stakeholders. As the value, or equity, of a brand increases, various positive outcomes result: 1. Achieving a higher market share 2. Increasing brand loyalty 3. Being able to charge premium prices. A brand’s elasticity of demand becomes less elastic as its equity increases. PTS: 1 DIF: Moderate TOP: The concept of brand equity 4. Name and describe the two forms of brand knowledge from a consumer perspective. ANS: Brand equity from the consumer’s perspective consists of two forms of brand-related knowledge: 1. Brand awareness, which is an issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked. It is the basic dimension of brand equity. From the vantage point of an individual consumer, a brand has no equity unless the consumer is at least aware of the brand. The two levels of awareness are brand recognition and recall. Brand recognition reflects a relatively superficial level of awareness, whereas brand recall indicates a deeper form of awareness. The marcom imperative is to move brands from a state of unawareness, to recognition, then to recall, and ultimately to top-of-mind awareness (TOMA). This pinnacle of brand-name awareness (i.e. TOMA status) exists when your company’s brand is the first that consumers recall when thinking about brands in a particular product category. Although building brand awareness is a necessary step toward brand equity enhancement, it is insufficient. 2. Brand image can be thought of in terms of the types of associations that come to the customer’s or consumer’s mind when contemplating a particular brand. An association is simply the particular thoughts and feelings that a consumer has about a brand. These associations can be conceptualised in terms of types (i.e. attributes, benefits and overall attitude), favourability, strength and uniqueness. PTS: 1 DIF: Difficult TOP: The concept of brand equity 5. Briefly describe some of the problems associated with dot.com marketing efforts. ANS: The experience of the dot.com marketing efforts shows that although building brand awareness is a necessary step toward brand equity enhancement, it is insufficient. Dot.com ventures had a lot of money and worked on the model of being first (or second) to market with the new e-tailing idea and spending a lot on advertising to create brand awareness. The problem, in short, was that most of the dot.com companies spent large sums on advertising, but they didn’t invest adequately in building a brand. Investing in and building a brand is a matter of identifying a reason for the brand’s being – its underlying positioning statement and point of distinction from competitive offerings – and then promoting that point of distinction on a consistent basis. In other words, many of the dot.com companies spent heavily on advertising to create awareness, but they failed to build strong and favourable brand images. PTS: 1 DIF: Moderate TOP: Brand awareness Full file at http://testbankcart.eu/Test-Bank-for-Integrated-Marketing-Communications-4th-Edition-by-Chitty © Cengage Learning Australia 2014 6. Debra is the brand manager for Tide laundry detergent, marketed by Procter & Gamble, and she is making the brand-level fundamental decisions in the marcom decision process. Discuss what she will be considering. ANS: The fundamental decisions in the brand-level marcom decision process include: 1. Targeting. Targeting allows marketing communicators to deliver messages more precisely and to prevent wasted coverage to people falling outside the intended audience. Selection of target segments is a critical step toward effective and efficient marketing communications. Companies identify potential target markets in terms of demographic characteristics, lifestyles, product usage patterns and geographic considerations. Meaningful market segments generally represent consumers who share a combination of characteristics and demonstrate similar behavior. 2. Positioning. A brand’s position represents the key feature, benefit, or image that it stands for in the target audience’s collective mind. Debra must decide on Tide’s positioning statement, which is the central idea that encapsulates the brand’s meaning and distinctiveness vis-á-vis competitive brands in the laundry detergent category. 3. Setting objectives. Marketing communicators’ decisions are grounded in the underlying goals, or objectives, to be accomplished for a brand. 4. Budgeting. Financial resources are budgeted to specific marcom elements to accomplish desired objectives. Different budgeting methods include top-down budgeting (TD), bottom-up budgeting (BU), or a combination of the two (BUTD or TDBU). PTS: 1 DIF: Moderate TOP: Fundamental marketing communication decisions </p>
