Deck 17: Promotional Planning

Question 1

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.

Answer 1

False

Question 2

Prospecting is the ongoing search for new customers.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

Promotion consists of marketing communictions that inform and persuade.

Question 6

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 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

Personal selling is an effective method for promoting toothpaste.

Question 13

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

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

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

Question 16

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

Question 17

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

Question 18

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 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

Advertising is considered to be part of sales promotion.

Question 24

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 25

Advertising can make a product successful in the long term.

Question 26

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

Question 27

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

Question 28

Specialty 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 29

The majority of small business advertising is institutional advertising.

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

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

Question 32

Most small businesses create their own promotional messages.

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

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

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

Question 42

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 43

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 44

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 45

Which category would be best for a CPA firm?

A) Advertising
B) Personal Selling
C) Sales Promotions
D) Point-of-display promotion

Question 46

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 47

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 $2,000; how much to spare $1,000; competition spending $5,000; and specific results $3,000. How much should she spend?

A) $1,000 because it is the least amount.
B) $3,000 because it is within the range and also for specific results.
C) $5,000 because it is the largest amount.
D) $10,000 because it twice the total of the competition.

Question 48

The nonprofit 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 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) firm's target customers, product characteristics, and budget requirements.
D) firm's target customers, market size, and product characteristics.

Question 50

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 51

Which category would be best for ink pens?

A) Advertising
B) Personal Selling
C) Sales Promotions
D) Social media

Question 52

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 53

Stacy was pleased when positive comments about her products appeared on a blog but became discouraged when other reviewiers 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 54

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 55

Publicity is accurately described as free advertising.

Question 56

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 57

A small, specialized software program is called

A) e-mail.
B) spam.
C) social media.
D) an app.

Question 58

Martel visited the website of his favorite 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 Martel 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 fulfillment.
C) slow downloading.
D) too much information at the site.

Question 59

A widely dispersed market favors which promotional method?

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

Question 60

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

Question 61

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

A) Blog
B) E-mail
C) Greeting Card
D) Personal Visit

Question 62

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 63

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 64

Media Corporation posts an photo of the week's top salesman 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 stock plan.
D) a bonus plan.

Question 65

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 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

Tyler cannot afford to hire a sales person 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 sales person for a while.
B) good sales people 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 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

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.

Question 70

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

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

Question 71

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 72

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 73

Telephone calls and mail surveys are examples of

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

Question 74

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 75

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

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

Question 76

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 77

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) Neighboring businesses
C) Computer sales firms
D) Advertising media

Question 78

Media publications, public records, and directories are sources of

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

Question 79

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 80

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