The most likely effect of a marketing public relations (publicity) campaign is to
A. Increase overall promotion costs.
B. Reach only people exposed to other promotional tools.
C. Provide greater credibility than other promotional tools.
D. Have little effect on the corporate image.
Correct Answer: C
Marketing public relations (publicity) supports the marketing department, especially by increasing audience awareness and brand knowledge. Its traditional role was to obtain free media coverage. This function may be less expensive than advertising and sales promotions. Furthermore, publicity is often perceived to be more trustworthy because it appears in news stories and features. Thus, it may affect people who avoid other elements of the promotional mi Moreover, publicity may dramatize the firm and its products.
Question 1172:
Direct marketing is a promotional tool that
A. Is more frequently used because of market degasification.
B. Avoids the invasion of privacy issues raised by other marketing methods.
C. Is more effective at eliciting direct orders than building customer relationships.
D. Makes greater use of marketing intermediaries than other promotional tools.
Correct Answer: A
Direct marketing has grown as a result of degasification (fragmenting of markets into many niches). It employs means of access to potential customers that bypass marketing intermediaries. Direct-order marketing is intended to elicit an immediate and measurable result (e.g., orders), and customer-relationship marketing may use direct-marketing methods to develop long-term relate noshes.
Question 1173:
Personal selling is the promotion tool that is
A. The cheapest
B. The most effective in the end stage of marketing.
C. Effective because it is impersonal.
D. Least effective when customers feel some obligation.
Correct Answer: B
Personal selling involves human interaction and mutual observation. It is the best method of inducing action in the end stages of the purchasing process. Among the platforms are meetings, presentations, fairs, and trade shows. Personal selling allows the development of relationships and may generate a sense of obligation by 1jthe potential customer.
Question 1174:
A firm is introducing a new product. Given a limited advertising budget and a low purchase frequency, the firm should adopt which micro timing approach for its advertising expenditures?
A. Pulsing.
B. Continuity.
C. Righting.
D. Concentration.
Correct Answer: C
The micro timing issue is how to schedule advertising outlays for best effect during a short time period. Variables considered in choosing the pattern are buyer turnover (entry of new buyers), purchase frequency, and the forgetting rate. The higher these rates1 the greater the continuity of advertising should be. Righting is intermittent advertising with periods of no activity. Righting is useful when funding is low, purchases are infrequent, or when goods are seasonal.
Question 1175:
The element of the marketing communications mix that provides incentives to buy is
A. Advertising.
B. Public relations.
C. Personal selling.
D. Sales promotion's
Correct Answer: D
Sales promotion offers customers short-term incentives to try or purchase the offering. Some possible platforms are coupons, samples, premiums, gifts, contests (e.g., lotteries), trade-ins, no-i interest financing, and rebates. Sales promotion provides some additional customer value in exchange for inviting immediate action and draws attention to the offering.
Question 1176:
The weighted number of exposures to an advertising message equals
A. Reach times frequency.
B. Gross rating points times impact.
C. Gross rating points
D. Frequency times impact.
Correct Answer: B
Reach, frequency, and impact are key variables in determining the relationship of exposures to1 audience awareness. Reach (R) is the total number of individuals (or households) exposed during a defined interval of time. Frequency(F) is the average number of exposures per interval of time. impact(l) is the qualitative electoral exposure. Total exposures (gross rating points) equals R times F. Thus, the weighted number of exposures to an advertising message in a given medium equals gross rating points times impact that is, R times F times
Question 1177:
The marketing communication mix consists of five types of promotional tools or media. Electronic mail belongs to which class of promotional tools or media?
A. Direct marketing.
B. Advertising.
C. Public relations.
D. Personal selling.
Correct Answer: A
Direct marketing involves sending a promotional message directly to consumers rather through a mass medium. Some examples are email, voice mail, fax, mail, telemarketing, and home shopping by television.
Question 1178:
Advertising budgets tend to decrease as a percentage of sales when
A. Market share is already high.
B. Clutter from noncompetitive messages exists.
C. Products are new.
D. Substitutability is high.
Correct Answer: A
Advertising costs to maintain share decline as a percentage of sales when that share is large. [increasing market share is more costly.
Question 1179:
The 5 Ms of the advertising process include
I. Mission
II. Money Ill. Market sensing
IV.
Mass marketing
V.
Media
A.
I and III only.
B.
l,ll1andVonly.
C.
II, IV, and V only.
D.
III lll, IV, and V.
Correct Answer: B
The advertising process maybe defined in terms of the 5 Ms: (1)The mission consists of sales and advertising objectives, (2)the money to be spent is stated in the budget, (3)the message to be communicated is crafted using a creative strategy, (4) the media are chosen to communicate the message, and (5) the measurement of communication and sales determines the effectiveness of the process.
Question 1180:
Which relationship marketing level is appropriate for a low unit profit margin and many customers?
A. Reactive marketing.
B. Basic marketing.
C. Partnership marketing.
D. Proactive marketing.
Correct Answer: B
A firm must determine the appropriate investment in building customer relationships. The levels of investment depend on unit profit margins and the numbers of customers. Basic marketing consists only of selling (low-margin, many customers).
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