Question 1

When estimating sales promotion expenditures, it is usually a good idea to consider all four methods of budgeting funds for small business.

Accepted Answer

Considering all four methods of budgeting funds (percentage of sales, competitive parity, objective/task, and available budget) can help ensure that sales promotion expenditures are allocated appropriately and effectively.

Question 2

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

Accepted Answer

False

Question 3

One problem with motivating salespeople is that the entrepreneur's goals and a salesperson's goals may differ.

Accepted Answer

The entrepreneur's main goal may be to increase profits and revenue, while a salesperson may be more focused on earning commission or achieving personal sales targets. This can create conflicts in motivation and incentives for the sales team.

Question 4

Advertising is one type of personal selling technique.

Accepted Answer

Advertising and personal selling are two separate techniques. Advertising involves the use of mass media such as television, radio, print ads, and social media to promote a product or service. Personal selling involves a face-to-face interaction between the seller and the potential buyer, where the seller directly promotes and sells the product or service.

Question 5

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

Accepted Answer

The answer of The promotional mix is influenced by three...

Question 6

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

Accepted Answer

This is a commonly accepted definition of advertising.

Question 7

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

Accepted Answer

This statement is true. According to communication theory, the three basic elements of communication are the sender/source of the message, the receiver of the message, and the channel through which the message is transmitted.

Question 8

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

Accepted Answer

The answer of Personal selling is an effective method for...

Question 9

The approach called spending as much as the competition does can lead the firm to copy the mistakes of rival firms, as well as their successes.

Accepted Answer

This is because simply matching the spending of competition does not guarantee success. Rival firms may have made errors in their marketing strategies, and following their lead blindly may lead to replicating their mistakes as well. It is important for a firm to assess the appropriateness and effectiveness of their competitors' strategies before deciding to adopt them.

Question 10

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

Accepted Answer

While straight salaries may provide financial security for salespeople, they may not necessarily be the best way to motivate salespeople. Salespeople often thrive on the prospect of earning commissions or bonuses for meeting or exceeding sales goals, which can incentivize them to work harder and close more deals. A commission-based compensation structure can also help align the salesperson's interests with the company's goals and profitability.

Question 11

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

Accepted Answer

The answer of Inquiries by a potential customer that do...

Question 12

In estimating promotional expenses, a small business should start by assessing what it will take to do the job.

Accepted Answer

When estimating promotional expenses, a business should start by assessing what needs to be done and how much it will cost, before deciding on a budget and specific tactics.

Question 13

A salesperson can help to build goodwill by understanding the customer's point of view.

Accepted Answer

Understanding the customer's point of view helps the salesperson to empathize with their needs and concerns, and find solutions that meet their expectations. This creates a positive impression of the salesperson and the company, which translates into better customer satisfaction and loyalty.

Question 14

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

Accepted Answer

Personal selling is a form of promotion that involves direct interpersonal communication between the seller and the potential customer or buyer. This can occur in various settings such as face-to-face meetings, telephone conversations, or virtual communication channels.

Question 15

During sales presentations, a salesperson should never admit product weaknesses to a potential customer.

Accepted Answer

It is important for a salesperson to establish trust with a potential customer by being honest about product weaknesses or limitations. This can actually help build credibility and show that the salesperson is not just trying to make a quick sale. However, it is also important for the salesperson to be able to address how the weaknesses can be mitigated or overcome, and focus on the strengths and benefits of the product.

Question 16

The way small businesses communicate with their customers is completely different from the way family members communicate with one another.

Accepted Answer

The answer of The way small businesses communicate with their...

Question 17

In relationship selling, a salesperson must exhibit professional etiquette in all contacts with customers, since this will determine the success of the sale.

Accepted Answer

The answer of In relationship selling, a salesperson must exhibit...

Question 18

According to the textbook, promotion is based on communication.

Accepted Answer

Promotion involves communicating information about a product or service to potential customers in order to persuade them to make a purchase or take a desired action.

Question 19

A "canned" sales talk is successful with most buyers.

Accepted Answer

A canned sales talk may come off as insincere and not tailored to the specific needs of the buyer, resulting in a lack of trust and potential loss of the sale. Personalized and genuine communication is likely to be more successful in building a relationship with the buyer and closing the sale.

Question 20

Prospecting is the ongoing search for new customers.

Accepted Answer

Prospecting is defined as the continuous process of finding new customers or clients to sell to. This involves identifying potential customers, researching their needs and interests, and reaching out to them in order to start building a business relationship.

Quiz 17: Promotional Planning