Deck 17: Promotional Planning

Question 1

Every communication has a receiver, a source and a channel through which the message is passed.

Answer 1

True

Question 2

Personal selling is an effective method for promoting toothpaste.

Answer 2

False

Question 3

QR codes work like UPC codes they identify the product on which they are found.

Answer 3

True

Question 4

The preferred approach for estimating promotional costs is to use a percentage of sales for allocating expenses.

Question 5

Social networking is an informal communication method that can be controlled by the company through its website.

Question 6

The best approach to promotional funding is allocating what can be spared.

Question 7

A small business that is search engine-friendly will have lower ranks and therefore it will attract more visitors.

Question 8

Domain name should be checked for availability and registered with ICANN.

Question 9

The percentage of sales method for estimating promotional expenditures does not make sense for new businesses because these companies do not have historical sales figures.

Question 10

The way a business combines its communications is a promotional mix.

Question 11

Prospecting is the on-going search for new customers.

Question 12

Personal selling is promotion that is delivered in a one-on-one environment.

Question 13

Spending as much as the competition does for promotional efforts can lead the business to copy the mistakes and successes of a rival.

Question 14

By first identifying the objectives for a promotional campaign, the small business owner will have a better idea of the budget required.

Question 15

While e-mail promotion provides a low-cost way to pinpoint customers and achieve response rates higher than those for banner ads, the issue of churning is a concern.

Question 16

Promotion consists of marketing communications that inform and persuade.

Question 17

An app is an application for business or entertainment loaded onto any mobile device.

Question 18

Because technology is changing, promotion is no longer based on communication.

Question 19

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

Question 20

A key decision in developing a promotional strategy is to decide how much you want to spend on it.

Question 21

Straight salaries are best for motivating salespeople because of the financial security salaries provide.

Question 22

Most small businesses create their own promotional messages.

Question 23

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

Question 24

Institutional advertising is primarily concerned with a company and its reputation.

Question 25

Many small manufacturers, while agreeing that trade-show exhibits can be helpful in promotion, rightly believe that they are not as cost-effective as media advertising.

Question 26

An issue with motivating salespeople is that the goals of the entrepreneur may differ from the salesperson.

Question 27

Social websites have an increasing number of subscribers providing reviews of establishments, providing the astute entrepreneur with impersonal referrals.

Question 28

Advertising can make a product successful in the long term.

Question 29

Regular contact with news media is required if publicity programmes are to be effective.

Question 30

Inquiries by a potential customer that do not lead to a sale can still create what is known as a "promising prospect".

Question 31

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

Question 32

Advertising is considered to be part of sales promotion.

Question 33

Speciality items are effective because they last, are generally delivered personally and have value to the customer while they keep the name of the company or product in front of them.

Question 34

Advertising seeks to sell by informing, persuading and reminding customers of the existence or superiority of a business's product or service.

Question 35

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

Question 36

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

Question 37

The majority of small business advertising is institutional advertising.

Question 38

A generous salary with a commission cap is typically best for most small businesses.

Question 39

Sales promotion refers to promotional techniques other than personal selling or advertising.

Question 40

The most cost-efficient mode of personal selling may be the use of a self-employed sales or marketing representative.

Question 41

Which category would be best for an accounting firm?

A)Advertising
B)Personal selling
C)Sales promotions
D)Point-of-display promotion

Question 42

Both wholesalers and retailers can utilise sales promotion tools to increase sales.

Question 43

Publicity is accurately described as free advertising.

Question 44

Rebecca is starting a new consulting business for a small, local target market.She has determined the amount for the four methods: percentage of sales R2 000; how much to spare R1 000; competition spending R5 000; and specific results R3 000.How much should she spend?

A)R1 000 because it is the least amount.
B)R3 000 because it is within the range and also for specific results.
C)R5 000 because it is the largest amount.
D)R10 000 because it twice the total of the competition.

Question 45

Promotional funds are determined according to past experience in which of the following methods?

A)What can be spared?
B)Spending as much as the competition.
C)Percentage of sales.
D)Forecasted industry standard.

Question 46

A widely dispersed market favours which promotional method?

A)Personal selling
B)Sales promotion
C)Personal promotion
D)Advertising

Question 47

Ricky created an attractive website but is disappointed that he hasn't received many hits.Your suggestion is that he:

A)place a banner ad on other websites.
B)purchase a billboard ad to advertise his website.
C)buy a newspaper ad to promote his website.
D)hire a different website creator.

Question 48

The non-profit corporation currently overseeing the global Internet is called the:

A)Global Internet Management Corporation.
B)Internet Corporation for Assigned Names and Numbers.
C)International Office for Internet Oversight.
D)International Public Internet Corporation.

Question 49

A good way to increase the volume and quality of traffic to a particular website is to:

A)place banner ads on reciprocal sites.
B)offer rebates that can be applied toward future purchases.
C)make sure that the site is accessible by search engines.
D)All of the above are good methods.

Question 50

Payment for banner advertising is usually based on the number of people who actually:

A)click on the banner.
B)make a purchase.
C)spend a certain length of time on the advertiser's website.
D)visit the website.

Question 51

Marten visited the website of his favourite music store looking for a specific CD from years past.The website touted a vast library of classic rock CDs but after just a few minutes Marten gave up and left the site.It is probable the website suffered from:

A)inferior quality of the site design.
B)poor performance in order fulfilment.
C)slow downloading.
D)too much information at the site.

Question 52

Inspiring Toys, a small manufacturer of educational toys, is formulating a budget for next year's promotional activities.What method should be considered to react to a short run promotional tactic done by Mattel?

A)Spending as much as the competition.
B)Percentage of sales.
C)How much for specific results.
D)Deciding what can be spared.

Question 53

The "spending as much as the competition" method:

A)can be used to duplicate the promotional efforts of close competitors.
B)depends on past experiences.
C)should be used to introduce a unique, new product.
D)should never be used.

Question 54

A widely used piecemeal approach to determining the level of promotional expenditures is:

A)expert opinion.
B)what can be spared.
C)what the market will bear.
D)cost plus.

Question 55

A small, specialised software program is called:

A)email.
B)spam.
C)social media.
D)an app.

Question 56

Which category would be best for ink pens?

A)Advertising
B)Personal selling
C)Sales promotions
D)Social media

Question 57

The major problem with the ____ method of determining promotional expenditures is the tendency 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 58

Stacy was pleased when positive comments about her products appeared on a blog but became discouraged when other reviewers panned the same products.Stacy must remember:

A)business owners cannot absolutely control how their businesses are viewed by consumers.
B)customers will misuse the products, resulting in negative comments.
C)people are more likely to share complaints than compliments.
D)if she wants more positive comments, she will have to write them herself.

Question 59

Get Moving, a fitness equipment retailer, has been successful in a strong economy by spending 4% of its sales revenues on promotions.What adjustments, if any, should Get Moving make now that the economy has gone into recession?

A)Continue to spend 4% of sales on promotions, even though this results in a lower promotional budget.
B)Increase the promotional budget to attract new customers.
C)Decrease the promotional budget.No one has any money to spend anyway.
D)Spend 4% of profits on promotions rather than 4% of sales.

Question 60

A promotional mix is influenced by the:

A)geography of the market, the promotional budget and product characteristics.
B)geography of the market, retailer market and product characteristics.
C)business's target customers, product characteristics and budget requirements.
D)business's target customers, market size and product characteristics.

Question 61

Which channel option would be the least personal for a business to its customer?

A)Blog
B)Email
C)Greeting Card
D)Personal Visit

Question 62

Media publications, public records and directories are sources of:

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

Question 63

Media Corporation posts a photo of the week's top salesperson on the company website.Every month, it includes an article about its top salesperson in its internal newsletter.This is an example of:

A)personal recognition.
B)compensation.
C)a shares plan.
D)a bonus plan.

Question 64

Telephone calls and mail surveys are examples of:

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

Question 65

The two basic types of advertising are ____, which makes potential customers aware of products and their need for them and ____, which conveys an idea about the business that produces the product.

A)institutional, product
B)product, institutional
C)product, publicity
D)speciality, publicity

Question 66

Personal selling degenerates into order-takers when a salesperson:

A)has limited knowledge of the product or service.
B)is persistent about selling the product or service.
C)is not friendly and enthusiastic when a customer enters the store.
D)cannot handle objections.

Question 67

The problem with selling some items on the _________ is that the customer cannot see them.Which medium is considered to have a no visual treatment?

A)Magazines
B)Outdoor Media
C)Radio
D)Television

Question 68

Which compensation plan is best suited for new salespersons in a small business?

A)Straight salary plan.
B)Strictly commissions-on-sales plan.
C)Combination of salary and commissions, with the salary representing the larger portion.
D)Combination of salary and commissions, with the commissions representing the larger portion.

Question 69

A salesperson at Plumbers Warehouse searches public records of new building permits to identify potential customers for new bathrooms.This salesperson is relying on ____ to identify sales prospects.

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

Question 70

Stephen is a new entrepreneur who would like to advertise his business but feels his creativity is insufficient to the task.Where can he find help?

A)Competing businesses
B)Neighbouring businesses
C)Computer sales businesses
D)Advertising media

Question 71

Mary, a sales representative for a small cleaning business, asks current customers for names of friends, customers and other businesses that might be interested in the company's cleaning services.Mary is relying on ____ to identify potential customers.

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

Question 72

To make an informed selection about where to advertise, a small business manager should:

A)consult different banks for loans to pay for the process.
B)create the message in conjunction with past campaigns.
C)learn about the strengths and weaknesses of each advertising medium.
D)perform a statistical analysis of the target market (s).

Question 73

Tyler cannot afford to hire a salesperson for his small business but feels personal selling is the best way to encourage prospects to become customers.You remind him that:

A)he may have to be his own salesperson for a while.
B)good salespeople are expensive.
C)the most cost-efficient mode of selling may be to use sales or marketing representatives.
D)he can always send his production people out to make sales calls.

Question 74

The successful combination of advertising media depends on:

A)the type of business.
B)customer income.
C)the ad agency.
D)the class of the customer.

Question 75

The two major steps in preparing for a sales presentation are:

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

Question 76

Customer objections can be categorised as relating to:

A)product and price.
B)need and sequence.
C)source and pitch.
D)timing and sequence.

Question 77

HubSpot, Inc., used a(n) ______ to establish the company's platform of inbound marketing.

A)app
B)Blog
C)e-mail campaign
D)hyperlink

Question 78

An inducement to buy a certain product while typically offering value to recipients is:

A)a sales promotion.
B)a speciality trade show.
C)speciality advertising.
D)includes all of the above.

Question 79

Which medium is considered to have a low pass-along rate?

A)Newspapers
B)Outdoor Media
C)Radio
D)Television

Question 80

Will is a salesperson for a small appliance store.In an attempt to locate potential new customers, he decides to poll Facebook visitors; they are entered into a drawing for a gift certificate at the store.Those individuals who complete the poll will receive a phone call from Will about the store's products and current promotions.Will is gaining knowledge of potential customers through:

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