Marketing Final Exam

1 ref 266 thinking key cbe model promotion obj 17 1

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Unformatted text preview: of dollars, relative to sales, on advertising. c. There is no minimum level of exposure for advertising to have an effect on sales. d. Advertising will not stimulate economic e. growth for the industry. The firms with large market share do not have to advertise anymore. ANS: A There is a saturation point for advertising. PTS: 1 REF: 266 Thinking KEY: CB&E Model Promotion OBJ: 17-1 TOP: AACSB Reflective MSC: BLOOMS Analysis 5. Which of the following explains why sales and market share begin to decrease no matter how much is spent on advertising and sales promotion? a. Inverted promotion function b. Weber’s Law c. AIDA d. Just noticeable difference (JND) e. Advertising response function ANS: E The advertising response function, a phenomenon of diminishing returns for advertising and sales promotions, helps marketers use budgets wisely. PTS: 1 REF: 266 Thinking KEY: CB&E Model Promotion OBJ: 17-1 TOP: AACSB Reflective MSC: BLOOMS Knowledge 6. The advertising response function helps marketers: a. create ads that will be noticed by consumers each time the ad runs b. use their advertising budgets wisely c. calculate the break-even points for each product being advertised d. determine the reach and frequency of specific media e. select an executional appeal appropriate to the product being advertised ANS: B The advertising response function is a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing results. PTS: 1 REF: 266 Thinking KEY: CB&E Model Promotion OBJ: 17-1 TOP: AACSB Reflective MSC: BLOOMS Comprehension 7. Why do companies with new brands that have a small market share tend to spend proportionately more for advertising and sales promotions compared to those with a large market share for existing products? a. b. c. d. e. As a result of experiential marketing research To create the appropriate level of institutional advertising To determine which executional appeal is the most effective To achieve a certain minimum level of exposure to measurably affect purchase habits To prevent product cannibalization ANS: D There are two reasons why companies with new brands with small market share tend to spend proportionately more for advertising and sales promotions compared to those with existing products and large market share. The first reason is in response to the advertising response function. The second reason is to create product awareness in the minds of the target audience. PTS: 1 REF: 266 Thinking KEY: CB&E Model Promotion OBJ: 17-1 TOP: AACSB Reflective MSC: BLOOMS Analysis 8. When Gillette introduced its Venus razor for women several years ago, it spent $100 million on advertising and other promotions and successfully boosted its market share. As an advertising consultant, you would advise Gillette to now: a. double its advertising budget in order to double its market share b. maintain the current advertising budget and continue to...
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This document was uploaded on 09/29/2013.

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