Question 1

Rahul is reviewing the company's expense report to determine the amount of funds left over to purchase samples he wants to give away at a trade show.What method is Rahul using to determine the promotional expenditure?

Accepted Answer

Rahul is using the method of deciding what can be spared, which involves reviewing the company's expense report to determine how much money is available for promotional expenditures. This approach focuses on prioritizing expenses and only allocating funds that the company can afford to spend.

Question 2

Which compensation plan is best suited for new salespersons?

Accepted Answer

A combination salary and commissions plan, with the salary representing the larger portion, is best suited for new salespersons. This approach provides a stable income while they are learning and building their client base, reducing financial stress and allowing them to focus on developing their skills and sales techniques.

Question 3

An organic produce farm has volunteered to manage and supply the fruits and liquids at the rest stations for cyclists participating in a fundraiser.Which type of promotion is the produce farm using?

Accepted Answer

The produce farm is using publicity by offering to manage and supply the fruits and liquids at the rest stations for cyclists participating in a fundraiser. Their offer is likely to be communicated through word-of-mouth or through media outlets, such as local news or social media.

Question 4

Marnie sells industrial cleaning supplies to manufacturers.She currently uses personal selling extensively,but she wants to reduce her cost without losing exposure.What promotional tool should she use?

Accepted Answer

Trade show exhibits would be the best choice as it allows Marnie to showcase her industrial cleaning supplies to a targeted audience, without the high cost of personal selling. It is also a great way to network with potential customers and stay up-to-date on industry trends.

Question 5

Dani wants to advertise his new café.He doesn't require high quality images but will have different weekly promotions.Which advertising medium should Dani use?

Accepted Answer

Newspapers are ideal for Dani's needs because they allow for frequent updates to advertise different weekly promotions and do not necessarily require high-quality images, making them a cost-effective choice for his café's advertising strategy.

Question 6

Max purchases expensing television advertising spots that will run during very popular sitcoms in the hopes of reaching customers that would be interested in the products he sells.What kind of promotion is this?

Accepted Answer

This is a shotgun promotion, as Max is targeting a large audience with a broad appeal rather than a smaller, specific target audience, as in a rifle promotion.

Question 7

William sells ad space on his company's website.Most advertisers purchase rectangular spaces as allows them to place their logo and script about a promotion or event.What kind of Internet advertising is this an example of?

Accepted Answer

The rectangular spaces on William's company's website are typically used for banner ads, which are a common form of Internet advertising that allows advertisers to display their logo and promotional message.

Question 8

George's new home renovation business has a very tight budget for advertising.He feels it would be best to broadcast his services to the market and wishes to do that very quickly.Which advertising medium should George use?

Accepted Answer

Radio advertisements are relatively inexpensive and can quickly reach a wide audience. This would be the best choice for George's budget and his desire to broadcast his services quickly. Television and magazines are typically more expensive advertising mediums, and billboards may not provide as much reach as radio.

Question 9

What are loyalty programs effective for?

Accepted Answer

Loyalty programs are designed to encourage customers to make repeat purchases by offering rewards or incentives for their continued loyalty.

Question 10

Ken consistently tells each of his sales people about the good work he feels they do even when productivity is low.What nonfinancial reward is Ken using to motivate his sales people?

Accepted Answer

Ken is using recognition as a nonfinancial reward to motivate his sales people. By consistently acknowledging the good work they do, he is showing them that their efforts are appreciated and valued. This can boost morale and motivation, leading to increased productivity in the long run. Compensation, bonus plans, and stock plans are all financial rewards, which are different from what Ken is using.

Question 11

Which traditional advertising medium has a low cost and can be scheduled on short notice,but requires high frequency to generate comprehension and retention?

Accepted Answer

Radio advertising has a low cost and can be scheduled on short notice. However, to generate comprehension and retention, high frequency is required since radio spots are brief and easily forgettable. Magazines and newspapers are not ideal choices for short notice scheduling, and billboards may have high costs depending on their location.

Question 12

Which of the following describes the "spending as much as the competition" method?

Accepted Answer

The "spending as much as the competition" method should be used only to react to close competitors because it helps to prevent losing market share. However, it should not be the only strategy used for determining the marketing budget.

Question 13

Everything Tablets,a distributor of mobile computing tools,is formulating a budget for next year's promotional activities.The company decides to budget 7% of the current year's revenues.What budgeting method is Everything Tablets using?

Accepted Answer

Everything Tablets is using the method of allocating a percentage of sales, which involves setting aside a percentage of current year's revenue for the promotional activities in the next year. This method is widely used in budgeting as it helps companies to maintain consistency in their promotional spending year on year, based on their sales revenue.

Question 14

What are the three main factors in building a channel of distribution?

Accepted Answer

The three main factors in building a channel of distribution are coverage, costs, and control. Coverage refers to the extent to which the channel will reach customers and markets. Costs refer to the expenses associated with establishing and maintaining the channel of distribution. Control refers to the level of influence that the company has over the channel and its operations. Partnerships can be an important component of building a channel of distribution, but it is not one of the three main factors. Time is also important, but it is not one of the three main factors.

Question 15

At a home and garden consumer show a company that sells lawn sprinkler systems is giving away key chains with their logo and phone number.What type of sales promotion is this?

Accepted Answer

This is a specialty sales promotion as the company is giving away a small, branded item (keychain) to promote their product and increase brand recognition.

Question 16

Old McDonald Furniture delivers product to customers with their own drives and trucks.What kind of transportation does Old McDonald have?

Accepted Answer

Old McDonald Furniture utilizes private carriers, which are companies that own and operate their own transportation equipment for their own use.

Question 17

Pat asks current customers for names of friends,customers,and other businesses that might be interested in the company's insurance packages.How is Pat identifying potential customers?

Accepted Answer

Pat is identifying potential customers through personal referrals, as they are asking current customers for names of people and businesses they know who might be interested in the company's insurance packages. This is a form of word-of-mouth marketing, which relies on personal recommendations to generate new business leads.

Question 18

Dana feels she has successfully attended a dinner event.She collected more than 20 business cards to add to her list of contacts.Which activity was Dana successful at?

Accepted Answer

By collecting business cards, Dana was engaging in the activity of networking, which involves making connections and building relationships with other professionals in her field.

Question 19

John works for an online travel agent.He sells space on the agent's website to restaurants,hotels,and transportation companies.What kind of media is this an example of?

Accepted Answer

This is an example of "sold" media, where John sells advertising space on the website to other businesses.

Question 20

Which promotional method does a widely dispersed market favour?

Accepted Answer

Advertising is the best choice for a widely dispersed market because it can reach a large number of people across different locations through various media channels such as TV, radio, print, and online. Personal selling may not be feasible due to the distance and logistical challenges. Sales promotions and personal promotions require direct contact with customers, which is difficult in a widely dispersed market.

Quiz 7: Distribution and Promotional Strategies