Chapter 1 – Integrated marketing communications and brand equity enhancement


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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.

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

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

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

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

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.

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.

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.
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