1. Integrated direct-response promotion is most probable to be effective if:

a. it is utilized by a non-profit organization rather than a firm.
b. other elements of promotion blend are not integrated.
c. it involves one-way communications between firm and its target customer.
d. it relies on CRM database to target specific individuals.

2. The most common method of setting marketing budget is to:

a. Utilize PERT approaches.
b. Evaluate what competitors are spending.
c. Find out the cost of the tasks to be accomplished.
d. Utilize all uncommitted revenue.
e. Utilize some predetermined percentage of past or forecast sales.

3. ______________ advertising tries to develop goodwill for company or even the industry-instead of specific product.

a. Primary demand
b. Selective demand
c. Institutional
d. Persuading
e. Pioneering

4. Budgeting for marketing expenses by calculating a percentage of forecasted sales:

a. is especially appropriate for new products.
b. always results in increased expenditure levels from year to year.
c. is very complicated--and thus this method is not used very often.
d. may lead to a drop in marketing expenses at a time when the firm wishes to sustain or expand sales.
e. tends to result in large changes in marketing expenses from year to year.

5. Regarding adoption curve groups, which of the following is true?

a. By the time the early majority buy a product it is usually in the market maturity stage of the product life cycle.
b. Early adopters have many contacts outside their own social group, and are important in spreading information to laggards.
c. Business firms in the late majority group tend to be conservative, smaller-sized firms with little specialization.
d. Laggard group may be slow to adopt, but it is so large that it is very important to reach them.