Deck 7: Distribution and Promotional Strategies

Question 1

The promotional mix is influenced by three major factors: the geographical nature of the market to be reached,customer income,and the target market.

Answer 1

False

Question 2

Institutional advertising is used only by institutions such as universities.

Answer 2

False

Question 3

Suppliers rarely furnish display aids or entire advertising programs to their dealers.

Answer 3

False

Question 4

Breaking bulk is a process that reduces the number of intermediaries.

Question 5

One of the most inefficient prospecting techniques is obtaining personal referrals.

Question 6

Studies show that first-time visitors to a website spend as little as 10 seconds there before deciding whether or not to stay.

Question 7

In a direct channel there may be one or more intermediaries.

Question 8

A direct channel is inherently less expensive than an indirect channel.

Question 9

In allocating a percentage of sales,one major shortcoming is an inherent tendency to spend less on promotion when sales are increasing.

Question 10

Inquiries by a prospective customer that do not lead to a sale should be discarded since there is no longer any potential value.

Question 11

Specialties are functional items.

Question 12

Trade show groups claim that the cost of an exhibit is less than one-fourth the cost of sales calls.

Question 13

Product advertising is intended to keep the public conscious of the company and its good reputation.

Question 14

A weak pricing strategy is required to ensure that customers perceive the new mousetrap offers better value than their old one.

Question 15

The distinguishing characteristic of specialties is their temporary nature and intangible value.

Question 16

Regular contacts with news media are required for publicity programs to be effective.

Question 17

Prospecting is the one-time search for new customers.

Question 18

The majority of small business advertising is institutional advertising.

Question 19

Sales promotion is an inclusive term for any promotional techniques that is neither personal selling nor advertising.

Question 20

Spam is another term for unsolicited email promotion.

Question 21

According to the textbook,promotion is largely based on communication.

Question 22

In an affiliate program,a website carries a banner ad or a link for another company in exchange for a commission on any sales generated by the traffic sent to the sponsoring website.

Question 23

Advertising is one type of personal selling technique.

Question 24

Straight financial compensation is the best means for motivating salespeople because of the financial security salaries provide.

Question 25

One of the best approaches to small business promotion is allocating a percentage of sales.

Question 26

A system of intermediaries that distribute a product is called logistics.

Question 27

Trade show exhibits allow potential customers to get hands-on experience with a product.

Question 28

Product advertising makes potential customers aware of a particular product or service and their need for it.

Question 29

Indirect channels reduce market coverage.

Question 30

Sales promotion should always comprise all the promotional efforts of a small business.

Question 31

In developing a promotional mix,a budget is a must.

Question 32

Personal selling is an effective method for promoting products such as cameras.

Question 33

Advertising is considered to be part of sales promotion.

Question 34

The most widely used specialty item is a calendar.

Question 35

Web advertising allows advertisers to reach large numbers of global buyers in a timely manner,at less expense,and with more impact than many alternative forms of advertising.

Question 36

Joining another firm to promote products is a form of a strategic alliance.

Question 37

Transportation intermediaries available for hire to the general public are called common carriers.

Question 38

A direct channel provides more control.

Question 39

Advertising is the personal presentation of a business idea through mass media.

Question 40

Another approach to budgeting funds for a small business is spending as much as the competition does.

Question 41

Roger has set a meeting to promote a new product with an important client; they will meet at the client's corporate office.Which activity is Roger using to deliver this promotion?

A) personal selling
B) sales promotion
C) personal promotion
D) advertising

Question 42

Ray mails surveys to residents of a neighbourhood with a return mail envelope.He plans to call the residents that respond to promote his home renovation company.How is Ray gaining knowledge of potential customers?

A) customer-initiated contacts
B) marketer-initiated contacts
C) impersonal referrals
D) personal referrals

Question 43

Leonard sell used cars independently.A major car manufacturer is located across the street from Leonard.Each time the dealership runs a used car promotion,Leonard does the same.What promotion budgeting method is Leonard using?

A) spending as much as the competition
B) determining what it will take to do the job
C) allocating a percentage of sales
D) deciding what can be spared

Question 44

Pat runs a construction company and advertises the level of quality and honesty that his business stands for.What kind of advertising does Pat use?

A) institutional
B) product
C) customer
D) specialty

Question 45

Richard's company purchases road bikes from Italian factories and then re-sells them to retailers all across Canada.Which of the following best describes Richard's company?

A) import retailer
B) intermediary
C) jobber
D) agent

Question 46

What promotional tool provides hands-on experience with a product?

A) coupons
B) trade show exhibits
C) specialty promotions
D) personal selling

Question 47

Sheila is a golf pro offering private lessons on her family's country property.She pays golf courses for space on their websites to provide golfing tips and inform their members about her private lessons.What kind of Internet advertising is this an example of?

A) banner ads
B) pop up ads
C) web sponsorship
D) linkage

Question 48

Trinity advertises her store on a local radio station.She feels the higher ad costs are paying off because the ads are run during rush hour.What kind of media does Trinity use?

A) paid
B) owned
C) earned
D) sold

Question 49

Distribution involves physically moving products and establishing intermediary channels to support that movement.

Question 50

A sports association's ads are being ridiculed on social media by members of the public opposed to the association's poor response to social concerns.What kind of media is this an example of?

A) paid
B) sold
C) earned
D) hijacked

Question 51

Ken's business sells industrial hand tools.His advertising focuses on the features of the tools and their high quality.What kind of advertising does Ken use?

A) institutional
B) product
C) customer
D) specialty

Question 52

The type of advertising used should be based on the nature of the business,industry practice,available media,and the firm's objectives.

Question 53

Diane receives purchase orders from customers in Canada and emails them to manufacturers in Mexico.The manufacturers then ship the product directly to the customers once they receive the payment.What is Diane's role?

A) retailer
B) agent
C) distributor
D) importer

Question 54

Delivery to the customer is part of the marketing process.

Question 55

How do most small firms restrict their advertising?

A) by geographic boundaries
B) by psychological borders
C) by demographical lines
D) by behavioural patterns

Question 56

Petra is helping to promote her friend's smooth jazz band.She places ads on the website of a popular night club.When surfers click on the club's Entertainment tab a picture opens showing her friend's band and his music starts playing.What kind of Internet advertising is this an example of?

A) banner ads
B) pop ups
C) web sponsorship
D) linkage

Question 57

For every purchase made,a book retailer awards its customers with points that can be used as a discount against future purchases.What type of sales promotion is this an example of?

A) premium
B) specialty
C) exhibit
D) loyalty program

Question 58

Which term refers to the problem that arises when the tendency for promotional expenditures is to spend more when sales are increasing and less when they are declining?

A) percentage of sales
B) what it will take to do the job
C) sales plus
D) what can be spared

Question 59

Which of the following are basic promotional methods?

A) advertising,personal selling,and warranties
B) advertising,personal selling,and rebates
C) sales promotion,warranties,and rebates
D) advertising,personal selling,and sales promotion

Question 60

What kind of advertising media uses social media to oppose a business's advertising campaign or other actions?

A) paid
B) sold
C) earned
D) hijacked

Question 61

What type of ad occurs when a firm pays another organization for the right to be part of that organization's website?

A) banner ads
B) pop ups
C) web sponsorship
D) linkage

Question 62

Liman Inc.manufactures bird houses that are sold directly to consumers at craft fairs,to retailers in malls,and to distributors overseas.What kind of distribution system does Liman have?

A) retailer/exporter
B) manufacturing
C) tri-channel
D) dual

Question 63

Which of the following describes media publications,public records,and directories?

A) impersonal referrals
B) marketer-initiated contacts
C) personal referrals
D) customer-initiated contacts

Question 64

What are the two major steps in preparing for a sales presentation?

A) advertising and practising
B) prospecting and practising
C) publicity and prospecting
D) exhibits and prospecting

Question 65

Promotional funds are determined according to past experience in what area?

A) spending as much as the competition
B) what can be spared
C) percentage of sales
D) forecast industry standard

Question 66

John Frye,a small business manager,is interested in creating more company goodwill.Which promotional tools should he use?

A) publicity programs
B) trade show exhibits
C) contests
D) specialties

Question 67

Chris creates a video ad comparing his company's cell phone to the competition.It is such an effective video that many viewers have posted it on various social media.What kind of media is this an example of?

A) paid
B) owned
C) earned
D) hijacked

Question 68

Alex has opened a new sports restaurant.He wishes to place short catchy messages in specific geographic locations to entice people in those areas to visit his establishment? Which advertising medium should Alex use?

A) newspapers
B) billboards
C) radio
D) Internet

Question 69

What type of ad appears across a web page most often as moving rectangular strips?

A) banner ads
B) pop ups
C) web sponsorship
D) linkage

Question 70

What is the most widely used specialty item?

A) calendar
B) pen
C) lighter
D) key chain

Question 71

Janice sells her handmade candles directly to customers.She plans to lower prices to sell her candles to a distributor in order to expand her business.What kind of distribution is Janice currently using?

A) retailer channel
B) multi-channel
C) direct channel
D) indirect channel

Question 72

What kind of advertising media invites other marketers to place content on a business's website?

A) paid
B) sold
C) earned
D) hijacked

Question 73

What are telephone calls and mail surveys examples of?

A) impersonal referrals
B) marketer-initiated contacts
C) personal referrals
D) customer-initiated contacts

Question 74

A company makes wheel hub caps that are destroyed during shipment en route to the distributor that purchased the product.The hub caps were shipped FOB origin.Who bears the cost of the damaged hub caps?

A) the manufacturer
B) the distributor
C) the manufacturer and distributor split the cost
D) the company shipping the product

Question 75

What is the preferred method of determining promotional expenditures?

A) percentage of sales
B) what it will take to do the job
C) cost plus
D) what can be spared

Question 76

Joyce's company sells very technical ice cleaning machinery for arenas.Which promotional mix method would be most effective in making sales?

A) adverting
B) direct mail
C) promotions
D) personal selling

Question 77

Mary's company imports large containers of porcelain dolls from China.When the containers arrive,employees re-pack the dolls into quantities of 24 per box for their retail customers.What is this activity called?

A) intermediary packaging
B) breaking bulk
C) bulk re-packaging
D) volume breaking

Question 78

Which term refers to a "lasting medium"?

A) contests
B) sampling
C) specialties
D) free merchandise

Question 79

Susan stages homes that are being sold.She needs high quality images of her work.She wants to expose the quality of her work for long periods.Which advertising medium should Susan use?

A) magazines
B) billboards
C) radio
D) newspapers

Question 80

Dana's company organizes unique vacation packages to Europe.She pays to advertise on European restaurant websites.Patrons can click on her ad to view her company's website.What kind of Internet advertising is this an example of?

A) banner ads
B) pop ups
C) web sponsorship
D) linkage