Deck 17: Promotional Planning

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

Advertising is one type of personal selling technique.

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.

Question 6

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

Question 7

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

Question 8

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

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.

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

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.

Question 18

According to the textbook, promotion is based on communication.

Question 19

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

Question 20

Prospecting is the ongoing search for new customers.

Question 21

Advertising is considered to be part of sales promotion.

Question 22

Only institutions such as universities use institutional advertising.

Question 23

Most of the domain names that were once available for dot.coms have been taken.

Question 24

Unlike in traditional retailing where customers are demanding and first impressions are important, e-commerce firms do not have to worry about initial communications, since bad first impressions can be overcome with follow-up contacts and high-quality Web designs.

Question 25

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

Question 26

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

Question 27

Advertising agencies can furnish small firms with design, artwork, and copy for specific advertisements or commercials.

Question 28

Most small businesses create their own promotional messages.

Question 29

Publicity is accurately described as free advertising.

Question 30

Small businesses in recent years have tended to overutilize web advertising.

Question 31

E-mail promotion provides a low-cost way to pinpoint customers and achieve response rates higher than those for banner ads.

Question 32

The majority of small business advertising is institutional advertising.

Question 33

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

Question 34

Advertising on the Internet is still too new and untested to challenge traditional media for promotional dollars.

Question 35

The effectiveness of banner ads is obvious-that's why they are so prevalent on the Internet.

Question 36

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

Question 37

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 38

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

Question 39

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

Question 40

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

Question 41

The "spending as much as the competition" method

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

Question 42

____ is a promotion delivered in a one-on-one environment.

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

Question 43

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 44

Personal selling is widely used in

A) retail establishments only.
B) wholesale and retail establishments only.
C) service establishments only.
D) retail, wholesale, and service establishments.

Question 45

A promotional mix is influenced by the following three major factors:

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

Question 46

Which of the following is not part of the communication process?

A) Source
B) Message
C) Perception
D) Channel

Question 47

Which of the following does not describe a method of determining promotional expenditures?

A) Matching industry forecasts
B) Spending as much as the competition
C) What can be spared
D) What it will take to do the job

Question 48

Which of the following is one of the basic promotional methods?

A) Advertising
B) Provisional selling
C) Sales enhancement
D) Expansive communication

Question 49

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

Question 50

A widely dispersed market favors which of the promotional methods?

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

Question 51

Mini Makers, a small manufacturer of action figures, is formulating a budget for next year's promotional activities. The company decides to budget $50,000 for promotional expenses (an amount equal to its nearest competitor's allotment.) Mini Makers is using the ____ method of budgeting.

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

Question 52

Social websites like Facebook, Twitter and MySpace, on which more and more subscribers are providing reviews of establishments they patronize, provide the astute entrepreneur with impersonal referrals.

Question 53

A salary is a form of financial reward for a sales person.

Question 54

Mary White, 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. White is relying on ____ to identify potential customers.

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

Question 55

The preferred method of determining promotional expenditures is

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

Question 56

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

Question 57

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 58

Inspiring Toys, a small manufacturer of educational toys, is formulating a budget for next year's promotional activities. The company decides to budget $40,000 for promotional expenses (5 percent of the current year's $800,000 in sales). Inspiring Toys is using the ____ method of budgeting.

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

Question 59

Promotion is the marketing communications that informs and persuades consumers.

Question 60

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

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

Question 61

Which of the following is not a technique for prospecting?

A) Impersonal referrals
B) Personal referrals
C) Public records
D) Agency-initiated contacts

Question 62

Customer objections can be categorized as relating to

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

Question 63

Telephone calls and mail surveys are examples of

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

Question 64

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

A) visit the website
B) click on the banner
C) make a purchase
D) spend more than 10 seconds on the advertiser's website

Question 65

Outside sources that may assist in formulating and carrying out promotional programs include

A) marketing coaches.
B) professional associations.
C) the advertising media.
D) trade representatives.

Question 66

Which is the compensation plan best suited for 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 67

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

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

Question 68

The right 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 69

Which of the following is not one of the services ad agencies provide?

A) Furnishing design and artwork
B) Evaluating the effectiveness of different advertising appeals
C) Analyzing the balance of a firm's marketing mix
D) Advising on sales promotions

Question 70

The following are examples of social shopping websites except

A) easyBuy
B) Kaboodle
C) WhatsBuzzing
D) ThisNext

Question 71

Some tips for developing a tag line consist of the following except

A) focus on benefits
B) start from scratch
C) do-it-yourself
D) test it out

Question 72

Will Thompson is a salesperson for a small appliance store. In an attempt to locate potential new customers, he decides to mail a survey to residents in selected neighborhoods. Those individuals who return completed surveys will receive a phone call from Thompson about the store's products and current "deals." Thompson is gaining knowledge of potential customers through

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

Question 73

Advertising via the Internet is appealing because this medium

A) has demonstrated that it is effective in attracting potential customers.
B) offers an intense one-way transfer of information.
C) is available 24 hours a day.
D) is a reliable way of getting a firm's message out.

Question 74

The two major steps in preparing for a sales presentation are

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

Question 75

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 firm that produces the product.

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

Question 76

Media publications, public records, and directories are sources of

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

Question 77

An example of a nonfinancial reward that may motivate a salesperson is

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

Question 78

Small firms may restrict their advertising by

A) media channel.
B) customers' perceptions of products offered.
C) customer type.
D) business category.

Question 79

The basic methods of Internet promotion include

A) customer targeting.
B) Web site replication.
C) creating banner ads and pop-ups.
D) establishing Web page "thumbprints."

Question 80

Before meeting with media representatives, a small business manager should

A) perform a statistical analysis of the market.
B) consult different banks for loan rates.
C) learn about the strengths and weaknesses of each advertising medium.
D) create the message.