American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. The marketers are keenly aware that many budgeting methods fail to address the objectives originally set and relate these to the dollars to be spent. Which budgeting technique does American Express ultimately most likely decide to use, based on this awareness and the information in this scenario?
a. Share-of-market approach
b. Objective-and-task approach
c. Percentage-of-sales approach
d. Share-of-voice approach
Question 2Trapper's Lake Lodge is a rustic hotel situated on a large lake in the Flat Tops Wilderness Area. The lodge offers a relaxing getaway as well as guided fishing, hunting, bicycling, and cross-country skiing trips from its remote location 250 miles away from a major airport. Guests must travel the last 40 miles on a rough dirt road during the summer months or ride a special snow car during the snow season. Trapper's Lake Lodge management has found that guests almost always have a wonderful experience during their stay and swear they will visit again. Nonetheless, the biggest problem is getting people to visit in the first place, probably due to the difficult travel involved. So the lodge management has decided to mount an aggressive direct marketing campaign to increase first-time guest visits as well as to nurture loyal frequent visitors. Guests at the lodge have always filled out a brief form with their name, address, phone number, and email address. They will now be asked to complete a questionnaire that collects more information such as their age, gender, education level, and occupation. Also; their outdoor interests, recreational preferences, other hobbies, and
comments about their stay at Trapper's Lake Lodge. This combination of new a marketing database for the lodge.
a. demographic and psychographic
b. personal and behavioral
c. behavioral and academic
d. demographic and geo-demographic
Question 3American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. American Express marketers say they do not use the sales begin to decrease in this segment, so will their budget.
a. share-of-market approach
b. percentage-of-sales approach
c. share-of-voice approach
d. objective-and-task approachadvertising budgeting method because if
Question 4Trapper's Lake Lodge is a rustic hotel situated on a large lake in the Flat Tops Wilderness Area. The lodge offers a relaxing getaway as well as guided fishing, hunting, bicycling, and cross-country skiing trips from its remote location 250 miles away from a major airport. Guests must travel the last 40 miles on a rough dirt road during the summer months or ride a special snow car during the snow season. Trapper's Lake Lodge management has found that guests almost always have a wonderful experience during their stay and swear they will visit again. Nonetheless, the biggest problem is getting people to visit in the first place, probably due to the difficult travel involved. So the lodge management has decided to mount an aggressive direct marketing campaign to increase first-time guest visits as well as to nurture loyal frequent visitors. A public relations consultant advises the lodge management that any direct marketing campaign should be coordinated with its other advertising and promotional strategies, as well as all the efforts that its employees are making in order to make the stay so wonderful. In effect, the consultant is recommending that the lodge make the final goal of their campaign, since it would make all the efforts even more effective.
a. services management
b. marcom management
c. integration
d. innovation
Question 5American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. Within the
portion of its advertising plan, American Express suggests that the most important
outcome of the campaign will be for Visa customers to start to switch to American Express in this market segment.
a. strategy
b. execution
c. situation analysis
d. objectives
Question 6As the number of firms utilizing direct marketing continues to grow, so does the number of consumers opposed to the methods often described as intrusive.. To combat the growing number of opposed consumers, marketers need to find creative new ways to optimize their direct marketing campaigns. One such outlet that firms are beginning to experiment with is social media. Executives understand that many consumers view a company's Facebook page more often than the company's home page, so they've grown to realize that setting up some form of an email opt-in on social media sites is a great way to build marketing databases. In addition to opt-in sections, social media allows businesses to interact with consumers, which may make them less inclined to respond negatively to a company's direct marketing efforts. By utilizing social media more often in the future, a number of U.S. companies hope to build stronger and more useful marketing databases. Which of the following is the most controversial of the various direct marketing methods?
a. Social media interaction
b. Direct mail
c. Bulk email
d. Repetitive telemarketing
Question 7American Express is dissatisfied with the degree of penetration of its Gold Rewards Plus card in the U.S. market. Marketing managers at American Express feel that the firm needs to increase advertising to small entrepreneurial businesses to encourage more acceptance of the card for use in purchasing office supplies and durable goods like computers and office furniture. American Express feels that to accomplish the goal of increased penetration in this sector, the budget should be based on communications objectives aimed at certain target markets. Within various sections of the
portion of its advertising plan, American Express explains how
and why Visa has been more successful at penetrating the small business market because of lower fees.
a. evaluation
b. execution
c. strategy
d. situation analysis
Question 8As the number of firms utilizing direct marketing continues to grow, so does the number of consumers opposed to the methods often described as intrusive.. To combat the growing number of opposed consumers, marketers need to find creative new ways to optimize their direct marketing campaigns. One such outlet that firms are beginning to experiment with is social media. Executives understand that many consumers view a company's Facebook page more often than the company's home page, so they've grown to realize that setting up some form of an email opt-in on social media sites is a great way to build marketing databases. In addition to opt-in sections, social media allows businesses to interact with consumers, which may make them less inclined to respond negatively to a company's direct marketing efforts. By utilizing social media more often in the future, a number of U.S. companies hope to build stronger and more useful marketing databases. Marketers consider to be the most economical form of direct response advertising.
a. email
b. magazines
c. telemarketing
d. direct mail
Question 9After working as an account executive in an advertising agency for 20 years, you've decided to own your own business. You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years. He sells the store and all the inventory, with one warninghe wasn't much on paperwork, so there won't be a lot of records to be found. You buy the store and begin to create your ad plan. You decide that as soon as you are financially able, you will hire an agency to put together an advertising plan for you. Unfortunately, you realize that even if you do hire an agency, you will still have to provide the agency with statements regarding:
a. the value proposition and the marketing mix.
b. the budget recommendation and the ad strategy.
c. the competition and the media plan.
d. the ad design and ad placement.
Question 10As the number of firms utilizing direct marketing continues to grow, so does the number of consumers opposed to the methods often described as intrusive.. To combat the growing number of opposed consumers, marketers need to find creative new ways to optimize their direct marketing campaigns. One such outlet that firms are beginning to experiment with is social media. Executives understand that many consumers view a company's Facebook page more often than the company's home page, so they've grown to realize that setting up some form of an email opt-in on social media sites is a great way to build marketing databases. In addition to opt-in sections, social media allows businesses to interact with consumers, which may make them less inclined to respond negatively to a company's direct marketing efforts. By utilizing social media more often in the future, a number of U.S. companies hope to build stronger and more useful marketing databases. What effect has the Internet had on the privacy concerns regarding direct marketing?
a. It has caused consumers to feel safer because they know marketers are acting responsibly.
b. It has amplified privacy concerns as it makes it easier for marketers to access personal information.
c. It has had no effect on consumer's feelings towards direct marketing.
d. It has greatly reduced the direct marketing efforts of companies across the world.
Question 11After working as an account executive in an advertising agency for 20 years, you've decided to own your own business. You buy Springfield Hardware, a neighborhood hardware store, from a man who has owned and run the business for the past 52 years. He sells the store and all the inventory, with one warninghe wasn't much on paperwork, so there won't be a lot of records to be found. You buy the store and begin to create your ad plan. You're currently deciding exactly where and when ads will be placed, and determining the strategy behind each placement. This takes a whilewith the explosion of Internet sites, outdoor advertising, and innovative promotions, the options are almost unlimited. In this way, you are
a. setting up account services.
b. creating a media plan.
c. devising a budgeting method.
d. doing advertising research.
Quick Reply
