Question 1

Which category would be best for an accounting firm?

Accepted Answer

An accounting firm would be best suited for personal selling as it involves building relationships and trust with clients through one-on-one interactions. Accounting services require a high level of expertise and firms need to prove their credibility and reliability to potential clients. Personal selling allows the firm to communicate their value proposition and build trust with clients in a direct and personalized manner.

Question 2

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

Accepted Answer

Both wholesalers and retailers can use tools such as discounts, coupons, free samples, and contests to attract customers and increase sales.

Question 3

Publicity is accurately described as free advertising.

Accepted Answer

The answer of Publicity is accurately described as free advertising....

Question 4

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 R2 000; how much to spare R1 000; competition spending R5 000; and specific results R3 000.How much should she spend?

Accepted Answer

The best choice would be to spend R3 000 for specific results as it is within the range of the other amounts and focuses on achieving specific goals for the business. The other amounts may not necessarily lead to achieving specific goals or may not be necessary for a small, local target market.

Question 5

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

Accepted Answer

The percentage of sales method is commonly used to determine promotional funds. It involves calculating a set percentage of the projected or actual sales revenue and allocating that amount to the promotional budget. This method allows for a more strategic and aligned approach to budgeting, as it ties promotional spending to revenue generation.

Question 6

A widely dispersed market favours which promotional method?

Accepted Answer

Advertising would be the best choice for a widely dispersed market as it can reach a large audience through various channels such as TV, radio, print, and digital media. Personal selling may not be feasible due to the geographical distance, and sales promotion may have limited impact if the market is too large and diverse. Personal promotion may also have limited reach and impact.

Question 7

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

Accepted Answer

Placing a banner ad on other websites can help to increase visibility and drive traffic to Ricky's website. It's a more cost-effective option than purchasing a billboard ad or buying a newspaper ad, and it targets potential customers who are already interested in the type of content or services Ricky's website offers. Hiring a different website creator should only be considered if the current creator is incompetent or unresponsive.

Question 8

The non-profit corporation currently overseeing the global Internet is called the:

Accepted Answer

The current non-profit corporation overseeing the global Internet is the Internet Corporation for Assigned Names and Numbers (ICANN). The other options (A, C, D) are not actual organizations involved in Internet oversight.

Question 9

A good way to increase the volume and quality of traffic to a particular website is to:

Accepted Answer

Making sure that the website is accessible by search engines is important because it will increase the chances of the website appearing in search results when users search for related keywords. This can lead to more organic traffic to the website. While placing banner ads on reciprocal sites and offering rebates can also generate traffic, they may not necessarily result in high-quality traffic or long-term results.

Question 10

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

Accepted Answer

Payment for banner advertising is usually based on the number of people who click on the banner, also known as "click-through rate." This is because the ultimate goal of banner advertising is to drive traffic to the advertiser's website, and a click on the banner is a good indication that the viewer is interested in the product or service being advertised.

Question 11

Marten visited the website of his favourite 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 Marten gave up and left the site.It is probable the website suffered from:

Accepted Answer

Marten gave up after just a few minutes, which suggests that the website had trouble loading and was slow to download. This made it difficult for him to search for the CD he was looking for. Inferior design, poor order fulfilment, or too much information did not appear to be the issue in this scenario.

Question 12

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?

Accepted Answer

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

Question 13

The "spending as much as the competition" method:

Accepted Answer

The "spending as much as the competition" method should be used to duplicate the promotional efforts of close competitors. This approach may help to level the playing field in terms of brand awareness, customer acquisition, and market share. However, it does not guarantee success and should be combined with other marketing strategies to differentiate the brand and stand out from competitors.

Question 14

A widely used piecemeal approach to determining the level of promotional expenditures is:

Accepted Answer

The answer of A widely used piecemeal approach to determining...

Question 15

A small, specialised software program is called:

Accepted Answer

A small, specialised software program is commonly referred to as an app. The other options listed are not necessarily small or specialised software programs, but rather broader categories of online communication and technology.

Question 16

Which category would be best for ink pens?

Accepted Answer

Ink pens would fall under the category of advertising as they can be given out as promotional items with a company's logo or message printed on them.

Question 17

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.

Accepted Answer

The percentage of sales method ties promotional expenditures directly to sales, which can result in a tendency to overspend during good times and underspend during slower times. This can lead to inconsistent promotional efforts and may not be a reliable way to allocate resources.

Question 18

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:

Accepted Answer

This scenario highlights the fact that business owners cannot entirely control how their businesses are perceived by consumers. Consumers have their own unique experiences and opinions about products, which can vary greatly. It is important for business owners to take all feedback into consideration, both positive and negative, and use it to improve their offerings.

Question 19

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, people are more cautious with their spending and may not prioritize purchases like fitness equipment. Therefore, it would be beneficial for Get Moving to increase their promotional budget to attract new customers and maintain their current customer base. A higher promotional budget will help to make their products more visible in the market and incentivize consumers to purchase from Get Moving rather than their competitors.

Question 20

A promotional mix is influenced by the:

Accepted Answer

The geography of the market, the promotional budget, and product characteristics all influence the promotional mix.

Quiz 17: Promotional Planning