The two advantages of direct mail as a medium of communication is its:
a. cost and response rate.
b. selectivity and flexibility.
c. mailing lists and consumer data.
d. timing and delivery.
Question 2Which budgeting method monitors the amount spent by significant competitors and then allocates an equal or proportionate amount as its advertising dollars?
a. Share-of-voice approach
b. Objective-and-task approach
c. Advertising response function
d. Percentage-of-sales approach
Question 3A nationwide restaurant chain is considering the use of a direct mail piece to reach potential customers. Managers of the company should realize that two disadvantages related to this tactic are: the high cost per contact, and the:
a. limited ability to test executions.
b. lack of creative options.
c. inaccuracy of addresses on mailing lists.
d. consumers' distrust in mailed advertising.
Question 4The percentage-of-sales approach to advertising budgeting
a. is best used during times of declining sales.
b. is difficult to understand and operationalize.
c. often leads to overspending or underspending.
d. relates advertising dollars to advertising objectives.
Question 5Companies can address customers' privacy concerns if they remember two fundamental premises about database
marketing. Which of the following is one of those premises?
a. Customers should be provided with the option of replying to a lead card.
b. Information gained for databases should only be used for mailing purposes.
c. Information collected should not be sold to other companies.
d. Customers should be offered something they value.
Question 6The CEO of a small but growing sports equipment firm has just announced that sales went up significantly last year.
The marketing director is happy because her budget will go up also. This indicates that the firm is using the to set the advertising budget.
a. objective-and-sales approach
b. share-of-market approach
c. percentage-of-sales approach
d. advertising response function
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