Deck 19: Promotional Strategy

Question 1

The four elements of ________ are advertising,public relations,personal selling,and sales promotion.

A) communication
B) selling
C) communication channel
D) promotion

Answer 1

D

Question 2

Which retailer has the highest dollar advertising expenditures among U.S.retailers?

A) Amazon
B) McDonald's
C) Walmart
D) Macy's Inc.

Answer 2

A

Question 3

Which form of promotion has media payment,a nonpersonal presentation,out-of-store mass media,and an identified sponsor?

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

Answer 3

B

Question 4

A major advantage of advertising as a retail medium is that ________.

A) there are no media costs
B) it can focus on the needs of individual customers
C) the costs per viewer, reader, or listener are low
D) credibility is high

Question 5

Which medium is characterized by large-size ads and zoning difficulties?

A) flyers/circulars
B) telephone directories
C) outdoor advertising
D) direct mail

Question 6

Retailers spend the highest proportion of their advertising budgets in which medium?

A) telephone directories
B) direct mail
C) newspapers
D) flyers/circulars

Question 7

A major disadvantage of advertising as a retail medium is that ________.

A) many media utilize standardized messages that are inflexible
B) few alternative media are generally available
C) the costs of reaching a viewer, reader, or listener are high
D) retail control over message timing and content is low

Question 8

Any communication by a retailer that informs,persuades,and/or reminds the target market about any aspect of that firm is ________.

A) advertising
B) public relations
C) retail promotion
D) the retail communication channel

Question 9

A characteristic of direct mail is a ________.

A) high response rate
B) low throw-away rate
C) highly targeted audience
D) long lead time

Question 10

A major difference between the advertising strategies of retailers and manufacturers is that retailers ________.

A) are more prone to use broadcast media than manufacturers
B) typically have broader geographic target markets
C) have more geographically concentrated target markets than manufacturers
D) are more concerned with image-related advertising

Question 11

A medium's circulation covers a broader geographic region than that containing the retailer's target market.This concept is referred to as ________.

A) waste
B) lead time
C) trading-area overlap
D) throw-away rate

Question 12

Vertical cooperative advertising agreements are subject to the ________.

A) Consumer Goods Pricing Act
B) Federal Trade Commission Act
C) Robinson-Patman Act
D) Sherman Antitrust Act

Question 13

Image-related advertising illustrates a(n)________ advertisement.

A) pioneer
B) reminder
C) competitive
D) institutional

Question 14

An advantage of a Yellow Pages listing is the ________.

A) free listing
B) absence of clutter
C) long medium life
D) alphabetical listing that does not contain competing retailers in the same section

Question 15

A(n)________ ad should be used to communicate a new retailer opening in a market area.

A) pioneer
B) reminder
C) competitive
D) institutional

Question 16

Which characteristic of advertising as a retail medium is correct?

A) Media rates are generally higher for retailers than manufacturers.
B) Since a large number of media are available, retailers are generally able to match a medium to a target market.
C) A strength of advertising is its ability to tailor messages to specific target markets.
D) Advertising messages are generally long (in terms of time or space).

Question 17

Which medium is associated with a low response rate and a high throwaway rate?

A) local magazine
B) weekly newspaper
C) daily newspaper
D) direct mail

Question 18

Which type of small retailer can have a geographically dispersed trading area?

A) convenience store
B) variety store
C) direct seller
D) direct marketer

Question 19

An advertisement in a local newspaper,featuring low interest-rate financing for consumers that purchase a top-of-the-line refrigerator,illustrates a(n)________ ad.

A) institutional
B) competitive
C) reminder
D) pioneer

Question 20

In cooperative advertising,________.

A) a trade association promotes the advantages of a new product in order to increase sales
B) two or more channel members share promotional costs
C) a retailer promotes a manufacturer's brand as being on sale
D) a retailer promotes its own dealer brand as being on sale

Question 21

A major difference between advertising and publicity is based upon ________.

A) media used
B) media payment
C) message flexibility
D) message type

Question 22

The most complex method of establishing an overall promotional budget is the ________.

A) objective-and-task method
B) percentage-of-sales technique
C) incremental method
D) all-you-can-afford method

Question 23

Which sales promotion form seeks to develop store loyalty?

A) prizes
B) referral gifts
C) sweepstakes
D) frequent shopper programs

Question 24

PMs are best defined as ________.

A) promotional allowances paid to retailers by manufacturers and wholesalers for shelf space
B) rebates and other discounts given to buyers to induce their purchase of a manufacturer's products
C) point-of-purchase promotions developed by manufacturers to increase store traffic
D) additional compensation paid to retail salespeople by a manufacturer based on sales of its products

Question 25

An important advantage of advertising in comparison to personal selling is the ________.

A) high ability to persuade a consumer
B) high message flexibility
C) low cost of reaching a target market member
D) low waste circulation

Question 26

A difficulty associated with the use of national magazines by an independent retailer with a narrow trading area is ________.

A) high waste in geographic coverage
B) low control over timing and placement of advertisements
C) long lead time
D) absence of discounts based on the number of insertions

Question 27

The efficiency of a medium can be most accurately assessed through evaluating its ________.

A) waste circulation or coverage
B) cost per thousand
C) passalong rate
D) paid circulation

Question 28

A major advantage of personal selling is ________.

A) the immediate feedback that is provided
B) the large number of consumers that can be reached at one point in time
C) the low costs of reaching each target customer
D) low total costs for salaries, travel, and entertainment

Question 29

Which medium offers a retailer the greatest control in reaching a targeted geographic area?

A) Yellow Pages
B) direct mail
C) daily newspapers
D) radio

Question 30

Which type of salesperson is generally associated with a self-service retail environment?

A) a sales engineer
B) a closer
C) an order-taking salesperson
D) an order-getting salesperson

Question 31

Extensive media coverage refers to ________.

A) low reach with high frequency
B) low reach with low frequency
C) high reach with low frequency
D) high reach with high frequency

Question 32

Which promotional forms are ideal for generating awareness in the hierarchy of effects model?

A) advertising and public relations
B) advertising and sales promotion
C) personal selling and sales promotion
D) personal selling and public relations

Question 33

Manufacturers utilize cooperative advertising agreements with retailers ________.

A) to decrease retailer waste in advertising
B) as a means of channel control
C) to take advantage of the lower rates offered to retailers
D) to comply with the Robinson-Patman Act

Question 34

A major disadvantage of public relations versus advertising is ________.

A) high costs for message time or space
B) little retailer control over a message and its timing, placement, and coverage
C) no carryover effects
D) less attention paid to public relations than to clearly identified advertisements

Question 35

The promotion form that focuses on short-run sales performance is ________.

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

Question 36

In a massed advertising effort,________.

A) reach is stressed over frequency
B) salesmanship is stressed
C) retailers promote throughout the year
D) promotion is concentrated in seasonal periods

Question 37

The overall stages in a consumer's purchase process from awareness to purchase is depicted in the ________.

A) consumer brand choice model
B) hierarchy of effects model
C) brand loyalty model
D) Howard-Sheth model

Question 38

A major advantage of public relations versus advertising is ________.

A) the source of the communication is more credible
B) the high control over a message and its timing, placement, and coverage
C) the high degree of message customization
D) no costs for a public relations staff

Question 39

Which medium has the highest message permanence?

A) radio
B) direct mail
C) weekly newspaper
D) telephone directories

Question 40

In a horizontal cooperative advertising agreement,________.

A) a manufacturer (or wholesaler) and a retailer share an ad
B) retailers' payment for an ad is based on their yearly sales of a particular product
C) competing retailers share an ad and its cost
D) two or more retailers share an ad

Question 41

If advertising and personal selling are classified as marketer-dominated,then public relations is classified as ________-dominated.

A) media
B) consumer
C) government
D) trade association

Question 42

Which compensation system is most appropriate for a pure order-taking position?

A) compensation cafeteria
B) PMs
C) straight commission plan
D) straight salary plan

Question 43

A local computer retailer desires to reach a targeted audience consisting of past customers.The retailer is offering "computer tune-ups" consisting of removal of duplicate files,virus scanning and removal,and performing diagnostic work on the system's major hardware components.Which medium is most appropriate in reducing waste?

A) direct mail
B) shopper
C) radio
D) daily newspaper

Question 44

The major distinction between the canned sales presentation and the need-satisfaction approach is based on ________.

A) whether the salesperson tries to close the sale
B) the total time spent with a prospect
C) the method and amount of compensation
D) flexibility demonstrated by the salesperson in his or her sales presentation

Question 45

In which type of sales presentation does the salesperson probe the potential customer's needs in the greeting stage?

A) canned sales presentation
B) need-satisfaction approach
C) point-of-purchase promotion
D) push money

Question 46

While a computer retailer engages in extensive advertising and many consumers come to the store knowing what camera to purchase,it is concerned that salespeople do not effectively cross-sell.The retailer wants to encourage its salespersons to sell software,extra memory,tape-backup devices,and extended warranties at the same time as the computer purchase.The retailer needs to attract and motivate ________.

A) order-taking salespersons
B) order-getting salespersons
C) sales engineers
D) sales managers

Question 47

The creation of regional or zoned editions,superior graphics,and the availability of color have increased retailers' use of ________.

A) telephone directories
B) magazines
C) outdoor advertising
D) direct mail

Question 48

The major strategic difference between advertising and public relations relates to ________.

A) identification of the sponsor
B) control over the message by the marketer
C) the method of presentation
D) effectiveness

Question 49

Which type of retailer ad is most likely to include a product's price?

A) institutional advertisement
B) pioneer advertisement
C) reminder advertisement
D) competitive advertisement

Question 50

A retailer stresses its community service in a current advertising campaign.This illustrates a(n)________ ad.

A) institutional
B) pioneer
C) reminder
D) competitive

Question 51

The canned sales presentation can be distinguished from the need-satisfaction approach by its ________.

A) focus on the customer's demographics
B) high training costs
C) repetitive nature
D) attention to a customer's product-related needs

Question 52

"Is this your first purchase of a digital single lens reflex camera?" and "What types of lenses and flash equipment do you own? are examples of questions asked in the ________.

A) canned sales presentation
B) need-satisfaction approach
C) order-taking approach
D) promotional money approach

Question 53

Noncompeting retailers can share advertisements in media with broad geographic circulation.This strategy represents a ________.

A) competitive advertisement
B) pioneer advertisement
C) vertical cooperative advertising agreement
D) horizontal cooperative advertising agreement

Question 54

"Do you need the car this week or do you want to order one to your specifications?" illustrates what selling function?

A) demonstration of goods/services
B) sales presentation
C) closing the sale
D) greeting customers

Question 55

Most retail salespersons in self-service operations are ________.

A) sales engineers
B) sales managers
C) order-taking salespersons
D) order-getting salespersons

Question 56

Since vertical cooperative advertising agreements fall under the scope of the Robinson-Patman Act,a manufacturer ________.

A) must offer similar agreements to all retailers on a proportionate basis of their purchases
B) cannot offer cooperative advertising agreements to competing merchants
C) must reduce other allowances by the size of the cooperative advertising allowance
D) must require that all ads meet set criteria in terms of size and adherence to suggested list price

Question 57

Which element in the retail promotion mix generally emphasizes short-term sales increases?

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

Question 58

The effectiveness of a retailer's public relations department can be determined by evaluating ________.

A) its overall budget
B) store recognition levels
C) store image positioning by target-market customers
D) the comparable value in space if generated by advertising

Question 59

The short space and long lead time make outdoor advertising least appropriate for what form of advertisements?

A) institutional
B) pioneer
C) reminder
D) competitive

Question 60

Many retailers like to monitor the use of PMs by manufacturers since ________.

A) PMs may not motivate the salespersons to sell a given brand
B) salespeople may earn too much
C) salespeople may not accurately portray the benefits and limitations of all brands
D) PMs may subject the firm to the Robinson-Patman Act difficulties

Question 61

In massed promotion effort,________.

A) reach is regular throughout the year
B) reach is irregular throughout the year
C) frequency is regular throughout the year
D) frequency is irregular throughout the year

Question 62

The major difference between a contest and a sweepstakes is that ________.

A) contests are aimed at repeat purchases
B) contests are tied to patronage
C) contests require skill while sweepstakes are based on chance
D) sweepstakes may not be legal in some areas

Question 63

A newspaper has a circulation of 2,000,000 and a per-page rate of $10,000.Its cost per thousand is ________.

A) $0.50
B) $5.00
C) $20.00
D) $50.00

Question 64

The most difficult task in using the objective-and-task method of promotional budgeting is ________.

A) stating an objective in clear terms
B) determining success of an advertising campaign
C) outlining how each objective can be accomplished
D) determining media costs based upon the media plan

Question 65

Massed promotion effort is most appropriate for retailers ________.

A) with high customer loyalty
B) with low advertising budgets
C) favoring reach over frequency
D) with high seasonality

Question 66

Advertising is characterized based on payment for media,a nonpersonal presentation,and an identified sponsor.

Question 67

Which promotional forms are most appropriate for the earliest stages of the hierarchy of effects?

A) advertising and public relations
B) advertising and sales promotion
C) public relations and sales promotion
D) public relations and personal selling

Question 68

Most smaller retailers cannot use national media as readily as a manufacturer.

Question 69

Direct mail is characterized by its low throwaway rate and low clutter.

Question 70

Which form of sales promotion is commonly used as part of a relationship retailing program?

A) frequent shopper programs
B) prizes
C) point-of-purchase promotion
D) coupons

Question 71

Institutional advertising seeks to increase a retailer's short-run sales.

Question 72

In a horizontal cooperative advertising agreement,two or more noncompeting retailers share an advertisement.

Question 73

More retail advertising is in radio than any other medium.

Question 74

On the average,order-getting salespeople are higher paid and more skilled than order-taking salespersons.

Question 75

Media charges are generally lower for manufacturers than for retailers.

Question 76

The most appropriate promotional schedule for a pioneer ad is ________.

A) peaked advertising
B) the hierarchy-of-effects schedule
C) massed promotion effort
D) distributed advertising effort

Question 77

Advertising,public relations,personal selling,and sales promotion are the four elements of retail promotion.

Question 78

Which form of sales promotion is commonly used in conjunction with self-service merchandising?

A) contests
B) point-of-purchase promotion
C) sweepstakes
D) referral gifts

Question 79

There is no identified commercial sponsor in public relations.

Question 80

A magazine with a circulation of 10,000,000 has a per-page rate of $50,000.Seventy percent of the magazine's readers are target customers for the retailer.The retailer's real cost per thousand for this magazine is ________.

A) $ 5.00
B) $ 7.00
C) $ 7.14
D) $10.00