Entrepreneurship and Effective Small Business Management, 11e (Scarborough)
Chapter 10 Creative Use of Advertising and Promotion
1) In reality, advertising:
A) is a “luxury expense” to be undertaken only when the budget permits.
B) requires a large budget to be successful.
C) is an investment in the future; without steady advertising the customer base will dry up.
D) is relatively ineffective in increasing sales but it does increase customer awareness.
Topic: Introduction
AACSB: Analytic Skills
2) Tami is developing a promotional campaign for her small business. The first step in this
process is to:
A) choose an advertising agency to assist her.
B) determine how much she can spend.
C) identify her target audience.
D) define her unique selling proposition.
Topic: Define Your Company’s Unique Selling Proposition
AACSB: Reflective Thinking
3) Effective ads are built on:
A) a clear picture of the competition’s products.
B) a multimedia approach.
C) a unique selling proposition.
D) clearly defined features of the product.
Topic: Define Your Company’s Unique Selling Proposition
AACSB: Analytic Skills
4) The most meaningful unique selling proposition:
A) identifies as many product features as possible.
B) stresses price.
C) counters the strengths of the competition.
D) describes the primary benefit of the product.
Topic: Define Your Company’s Unique Selling Proposition
AACSB: Analytic Skills
1
5) The choice of advertising medium is primarily determined by:
A) what media the competition uses.
B) what media the industry focuses on.
C) the target audience and the message.
D) the unique selling proposition and budget.
Topic: Selecting Advertising Media
AACSB: Analytic Skills
6) There are a number of tips a small business owner can follow to build effective advertising,
including:
A) run one advertisement at a time.
B) limit the content of each ad.
C) focus on short-term advertising goals.
D) All of these
Topic: Table 10.1 , Twelve Tips for Effective Advertising
AACSB: Analytic Skills
7) ________ is any sales presentation that is nonpersonal in nature and is paid for by an
identified sponsor.
A) Promotion
B) Advertising
C) Personal selling
D) Publicity
Topic: Advertising
AACSB: Analytic Skills
8) By engaging in ________, entrepreneurs can support and promote a charity and raise their
company’s visibility at the same time.
A) relationship marketing
B) advertising
C) personal selling
D) cause marketing
Topic: Creating a Promotional Strategy
AACSB: Reflective Thinking
2
9) When Chapters, a small book store, donates a dollar for each book sold to help promote
reading among children, Chapters is using:
A) sales promotion.
B) advertising.
C) cause marketing.
D) personal selling.
Topic: Creating a Promotional Strategy
AACSB: Reflective Thinking
10) A recent study of top salespeople found that they:
A) do most of the talking during the sales call.
B) work from the customer’s perspective and use past “success stories.”
C) tend to be indirect, taking their time to get to the point with the customer.
D) see themselves as vendors and tend to not leave sales materials with the customer.
Topic: Personal Selling
AACSB: Analytic Skills
11) ________ is the personal contact between salespeople and potential customers that comes
from sales efforts.
A) Publicity
B) Personal selling
C) Specialty advertising
D) Advertising
Topic: Personal Selling
AACSB: Analytic Skills
12) The ________ cost of an advertising medium compares the actual dollar cost of an ad with
the number of potential customers it reaches.
A) relative
B) continuous
C) absolute
D) comparative
Topic: Selecting Advertising Media
AACSB: Analytic Skills
3
13) When selecting the advertising vehicle the small business owner should ask him/herself:
A) What are the characteristics of my product?
B) Who are my target customers?
C) What medium will best support my sales force?
D) What can I legally say in my advertisements?
Topic: Selecting Advertising Media
AACSB: Analytic Skills
14) Which of the following media account for the greatest portion of advertising expenditures?
A) Internet
B) Radio
C) Television
D) Magazines
Topic: Selecting Advertising Media
AACSB: Analytic Skills
15) Newspaper advertising is characterized by:
A) broad territory coverage.
B) high costs.
C) long ad life.
D) prompt responses to the ads.
Topic: Media Options
AACSB: Analytic Skills
16) Newspapers have a number of disadvantages for the small business, such as:
A) poor timeliness; it’s already old news.
B) high expense.
C) lack of prominence of the ads.
D) readership of primarily older women.
Topic: Media Options
AACSB: Analytic Skills
4
17) Radio has a number of advantages for the small business owner, such as:
A) friendliness, in that radio ads are more active than print media ads.
B) easily measurable results and testable strategies.
C) long life span.
D) the ability to personalize the ads to the specific customers.
Topic: Media Options
AACSB: Analytic Skills
18) Radio:
A) is the one medium that customers spend the most time paying attention to.
B) can reach nearly any target market.
C) is very susceptible to “zapping.”
D) is the most expensive advertising medium in terms of relative costs.
Topic: Media Options
AACSB: Analytic Skills
19) Radio’s power as an advertising medium comes from:
A) the high production qualities available to the advertiser.
B) the long life of its ads.
C) its nearly universal presence in society.
D) the powerful graphic abilities of the medium.
Topic: Media Options
AACSB: Analytic Skills
20) One disadvantage of radio as an advertising medium is:
A) lack of prominence.
B) cost.
C) lack of friendliness.
D) the need for repetition.
Topic: Media Options
AACSB: Analytic Skills
5
21) Which of the following times would be considered radio “prime time”?
A) 7 p.m. to midnight
B) 6 a.m. to 10 p.m.
C) 4 p.m. to 7 p.m.
D) Both A and C
Topic: Media Options
AACSB: Analytic Skills
22) If a small business owner wants to use television advertising, he/she should:
A) go for national advertising to get the maximum absolute cost advantage.
B) try to use cable which costs $200 or less for a 30 second spot.
C) consider radio instead because they have identical advantages.
D) remember that television is one of the least flexible media.
Topic: Media Options
AACSB: Analytic Skills
23) Television ads are most commonly sold in what time increments?
A) 20 seconds
B) 30 seconds
C) 60 seconds
D) 15 seconds
Topic: Media Options
AACSB: Analytic Skills
24) Flashing from one television channel to another, especially during commercials, is called:
A) zapping.
B) skipping.
C) cluttering.
D) zipping.
Topic: Media Options
AACSB: Analytic Skills
6
25) Magazines have a number of advantages for the small business owner, including:
A) low cost.
B) short closing time.
C) high quality ad reproduction.
D) prominence of the ads in the medium.
Topic: Media Options
AACSB: Analytic Skills
26) Which of the following is a disadvantage of magazine ads?
A) The long closing times
B) Poor ad quality
C) An inability to target a market
D) Lack of flexibility
Topic: Media Options
AACSB: Analytic Skills
27) Which advertising medium offers the greatest ability to selectively target a specific
audience?
A) Newspaper
B) Television
C) Direct mail
D) Radio
Topic: Media Options
AACSB: Analytic Skills
28) Direct mail ads have a number of advantages to them, such as:
A) low relative costs.
B) long life spans.
C) flexibility.
D) multiple exposure.
Topic: Media Options
AACSB: Analytic Skills
7
29) The key to the success of direct mail advertising is:
A) designing the right envelope.
B) the accuracy of the customer mailing list.
C) creative use of color and photographs in the mailing.
D) using key words such as “free,” “hurry,” and “savings.”
Topic: Selecting Advertising Media
AACSB: Analytic Skills
30) A successful direct mail ad is characterized by:
A) text written as if it were being spoken.
B) thorough text descriptions of the benefit.
C) making statements rather than asking questions.
D) minimal use of pictures and color, to reduce costs.
Topic: Media Options, Table 10.4
AACSB: Analytic Skills
31) Which of the following is an advantage of outdoor ads?
A) Prominence of the ads
B) Narrow reach
C) Long exposure
D) Flexibility
Topic: Media Options
AACSB: Analytic Skills
32) Which of the following is a disadvantage of outdoor ads?
A) High absolute and relative costs
B) Legal restrictions
C) Narrow reach
D) Lack of flexibility
Topic: Media Options
AACSB: Analytic Skills
8
33) The best color combination for an outdoor ad is:
A) blue on green.
B) red on black.
C) yellow on orange.
D) black on white.
Topic: Media Options
AACSB: Analytic Skills
34) Transit advertising’s advantages include:
A) its flexibility.
B) the high quality color reproduction.
C) its wide coverage.
D) the prominence of display.
Topic: Media Options
AACSB: Analytic Skills
35) Transit advertising has several disadvantages, such as:
A) legal restrictions.
B) high cost.
C) low frequency and short exposure.
D) the inability to target specific audiences.
Topic: Media Options
AACSB: Analytic Skills
36) The typical household receives an average ________ pieces of direct mail annually.
A) 52
B) 624
C) 236
D) 354
Topic: Media Options
AACSB: Analytic Skills
9
37) The form of advertising that gives the small business owner a preselected audience and an
economical way to make sales calls would be:
A) outdoor advertising.
B) trade shows.
C) directories.
D) direct mail.
Topic: Media Options
AACSB: Analytic Skills
38) A hardware store giving customers nail aprons and yardsticks emblazoned with its name,
address, phone number, logo, and slogan is using which advertising medium?
A) Point-of-purchase ads
B) Cooperative advertising
C) Specialty advertising
D) Shared ads
Topic: Media Options
AACSB: Reflective Thinking
39) An important advantage of specialty advertising is its:
A) ability to significantly lower the cost of sales calls.
B) low specific costs.
C) versatility.
D) potentially broad reach.
Topic: Media Options
AACSB: Analytic Skills
40) One of the disadvantages of using transit advertising is its:
A) limited appeal.
B) narrow exposure.
C) lack of repeat exposure.
D) high cost.
Topic: Media Options
AACSB: Reflective Thinking
10