Free Marketing Strategy Question and Answers — Questions and Answers
Question 1: Which of the following consumer traits are referred to as psychographic?
- Self controlled heavy user, magazine reader, and pragmatic
- Self confident, decisive, 18-34, lives in county A
- Energetic, courteous, cooperative, male
- Not anxious, influential, polite, fun (Correct answer)
Correct answer: Not anxious, influential, polite, fun
Psychographic traits categorize consumers based on psychological attributes such as personality, values, attitudes, interests, and lifestyles. The option 'Not anxious, influential, polite, fun' exclusively describes personality characteristics and dispositions. Other options mix these psychological traits with demographic (e.g., age, gender) or behavioral (e.g., heavy user, magazine reader) information, which are distinct segmentation categories.
Question 2: Inverse relationships exist between reach and frequency.
- False
- True (Correct answer)
Correct answer: True
In media planning, reach refers to the number of unique individuals exposed to an advertisement, while frequency is the average number of times those individuals are exposed. With a fixed advertising budget, increasing the number of unique people reached (reach) often means each person will see the ad fewer times (lower frequency), and vice versa. This fundamental trade-off illustrates the inverse relationship between these two metrics.
Question 3: What conclusions can be drawn from data on competitive spending?
- Size of budget
- Weight by market
- Target audience
- All of the above (Correct answer)
Correct answer: All of the above
Analyzing competitive spending data offers comprehensive insights into a competitor's marketing strategy. It can reveal the overall size of their advertising budget, how they distribute that budget across different geographic areas or media channels (weight by market), and implicitly, the demographic or psychographic groups they are targeting (target audience) based on their media choices and messaging. Therefore, all these conclusions can be drawn to inform one's own strategic decisions.
Question 4: The absence of vehicle audience data for media like network television and consumer magazines is one of the biggest issues that media planners today are dealing with.
- False (Correct answer)
- True
Correct answer: False
The statement is false because traditional media like network television and consumer magazines actually have well-established and robust audience measurement systems. Organizations like Nielsen (for TV) and MRI/Simmons (for magazines) provide extensive data on vehicle audiences. The challenges for media planners often lie in integrating data across newer, fragmented digital platforms, not in the absence of data for these long-standing media types.
Question 5: Gross rating points (GRPs) are determined by multiplying
- Reach times frequency (Correct answer)
- CPM times price
- HUTs times share
- None of the above
Correct answer: Reach times frequency
Gross Rating Points (GRPs) are a standard metric in advertising to measure the total weight or intensity of an advertising campaign. They are calculated by multiplying the percentage of the target audience reached (reach) by the average number of times they were exposed to the message (frequency). GRPs provide a single, cumulative figure to compare the overall impact of different media schedules.
Question 6: When a creative plan demands for a specific type of media, like one that renders advertisements in high-fidelity color, the cost or waste is sometimes overlooked in favor of fulfilling the goal.
- False
- True (Correct answer)
Correct answer: True
This statement is true because creative requirements can sometimes dictate media choices, even if those choices are less cost-efficient or result in some audience waste. For instance, if an advertisement relies heavily on high-fidelity color or specific visual effects, a media planner might select a premium medium that supports these creative demands, prioritizing the quality and impact of the message over strict cost-per-thousand efficiency. This is a common trade-off to ensure the creative goal is met effectively.
Question 7: The number of exposures required to generate the intended advertising effect is known as the effective frequency (e.g., brand awareness, etc.)
- False
- True (Correct answer)
Correct answer: True
Effective frequency is a core concept in media planning, referring to the optimal number of exposures an individual in the target audience needs to receive an advertising message to achieve a specific communication objective. This objective could be anything from basic brand awareness to message recall or influencing purchase intent. The goal is to find the 'sweet spot' where the message is absorbed without being over-exposed or under-exposed.
Free Marketing Strategy Question and Answers
Which of the following consumer traits are referred to as psychographic?