Question 1

The _____ allows users to find their way around the Internet.

Accepted Answer

The Domain Name System (DNS) is responsible for translating domain names (such as www.google.com) into IP addresses that computers can use to locate a website on the Internet. Without DNS, it would be difficult for users to find their way around the Internet. ICANN manages the allocation of domain names and IP addresses, the SBA provides resources and support for small businesses, and the W3C develops technical standards for the Web. However, none of these organizations specifically enable users to navigate the Internet like DNS does.

Question 2

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?

Accepted Answer

In a recession, consumers are more conscious of spending, and thus, may need more incentives to make purchases. Therefore, increasing the promotional budget can help attract new customers, retain current ones, and boost sales. Continuing to spend 4% of sales on promotions may result in a lower promotional budget because sales decrease in a recession. Decreasing the promotional budget will lead to decreased awareness of the brand and hence, lesser sales. Spending 4% of profits on promotions may be a good idea in general, but in a recession, profits can also decrease, making this option less effective.

Question 3

The biggest pitfall of spending at the same level as competitors for promotion is that it

Accepted Answer

The answer of The biggest pitfall of spending at the...

Question 4

The "spending as much as the competition" method

Accepted Answer

The "spending as much as the competition" method can be used to duplicate the promotional efforts of close competitors. By matching their marketing efforts, the firm can increase its chances of gaining market share and staying competitive.

Question 5

Which of the following forms of promotion would be the most effective for industrial insulation products?

Accepted Answer

Industrial insulation products are typically a higher-priced, specialized product that requires a more consultative sales process. Personal selling would allow the seller to address specific needs and provide technical information to potential buyers. Advertising may not effectively target the specific audience for industrial insulation products, and sales promotions and social media may not provide the depth of information needed for potential buyers.

Question 6

Using whatever is left over to support promotional efforts after all other activities have been funded is sometimes described as the _____ method.

Accepted Answer

The "all you can afford" method involves allocating funds for promotional efforts only after all other activities have been funded. This approach may result in insufficient funds being allocated to promotion, which could negatively impact the effectiveness of the promotional efforts. Therefore, it is not the most optimal method for budgeting promotional activities.

Question 7

Which of the following forms of promotion would be the most effective for ink pens?

Accepted Answer

Advertising is the most effective form of promotion for ink pens because it can reach a large audience and create awareness for the product.

Question 8

Coupons not only attract customers to purchase products, but they also have value even if they are not used.

Accepted Answer

Coupons have value because they can be traded or sold to others who may want to use them, and some coupons have expiration dates that may not have passed yet, making them still valid for use.

Question 9

Which of the following should be evaluated to establish a promotion-to-sales ratio?

Accepted Answer

The promotion-to-sales ratio is a metric used to evaluate the effectiveness of a company's promotional expenditures. To establish this ratio, the firm's own past experiences and data need to be evaluated, such as the amount spent on promotions and the corresponding sales generated. Factors like competitors' spending, the firm's objectives, strengths, and weaknesses may influence promotional strategies but do not directly impact the calculation of the promotion-to-sales ratio.

Question 10

_____ is the process of increasing the volume and quality of traffic to a particular website.

Accepted Answer

Search engine optimization (SEO) involves optimizing a website's content and structure to rank higher in search engine results pages, which increases the chances of users visiting the website. This is a proven method of driving targeted traffic to a website.

Question 11

Ricky created an attractive website but is disappointed that he hasn't received many hits. You suggest that he

Accepted Answer

Placing a banner ad on other websites can help bring in more traffic to Ricky's website. It will increase the visibility of his website and attract more visitors to click on the ad and visit his website. Purchasing a billboard ad or a newspaper ad may not be effective as it is less targeted and may not reach the right audience who are interested in the content or services provided by the website. Hiring a different website creator may not necessarily solve the problem if the root cause of low traffic is not due to the design or functionality of the website.

Question 12

According to the Pew Research Center, approximately _____ out of every ten Americans are connecting with one another via social media sites.

Accepted Answer

According to the Pew Research Center, approximately seven out of every ten Americans use social media sites to connect with one another.

Question 13

A widely dispersed market generally requires which of the following promotional methods?

Accepted Answer

Advertising is the best option for a widely dispersed market because it has a broad reach and can target a large audience without the need for face-to-face interaction. Personal selling and personal promotion require more direct interactions with potential customers, which can be difficult to manage across a wide area. Sales promotion may also be effective, but it often requires physical presence at specific locations or events, which may not be feasible in a widely dispersed market.

Question 14

Which of the following is a good way to increase the volume and quality of traffic to a particular website?

Accepted Answer

All of these options can be effective ways to increase the volume and quality of traffic to a website. Placing banner ads on other websites can attract new visitors, including the URL on promotional materials can make it easier for people to find the website, and optimizing the site for search engines can improve its visibility in search results. Using all of these strategies in conjunction can result in a greater overall impact.

Question 15

A major shortcoming with the _____ method of determining promotional expenditures is a tendency to spend more on promotion when sales are increasing and less when they are declining.

Accepted Answer

The percentage of sales method ties promotional expenditures to sales, so when sales increase, the amount spent on promotion also increases. On the other hand, when sales decline, less money is allocated for promotion. This can be problematic as it can lead to a cycle of decreased promotion and decreased sales.

Question 16

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

Accepted Answer

Both wholesalers and retailers can benefit from using sales promotion tools such as discounts, coupons, and free samples to entice customers to purchase their products. This can help increase sales and ultimately drive revenue for the business.

Question 17

Inspiring Toys, a small manufacturer of educational toys, is formulating a budget for next year's promotional activities. Which of the following methods should be considered to react to a short-run promotional tactic done by Mattel?

Accepted Answer

The answer of Inspiring Toys, a small manufacturer of educational...

Question 18

A small, specialized software program is called

Accepted Answer

A small, specialized software program is commonly referred to as an "app," short for application. E-mail, spam, and a blog are not necessarily small or specialized software programs.

Question 19

Stacy was pleased when positive comments about her products appeared on a blog but became discouraged when other reviewers panned the same products. Stacy must remember that

Accepted Answer

Business owners cannot control how their businesses are viewed by consumers. It is natural for some customers to have negative experiences or perceptions and share them online. Stacy should focus on addressing any legitimate issues that may be causing negative reviews and strive to improve her products and services, but she cannot completely control how they are perceived by everyone.

Question 20

An effective promotional strategy takes into account all of the following EXCEPT

Accepted Answer

An effective promotional strategy primarily focuses on aspects directly related to marketing and sales efforts, such as the characteristics of the product (B), learning from competitors (C), and the costs of promotion (D). The investments of the company (A), while important for overall business strategy, are not a direct consideration in crafting a promotional strategy.

Quiz 17: Promotional Planning