a.
customer-initiated contacts
b.
impersonal referrals
c.
marketer-initiated contacts
d.
personal referrals
25. Will is a salesperson for a small appliance store. In an attempt to locate potential new customers, he
decides to poll Facebook visitors; they are entered into a drawing for a gift certificate at the store.
Those individuals who complete the poll will receive a phone call from Will about the store’s products
and current promotions. Will is gaining knowledge of potential customers through
a.
personal referrals.
b.
marketer-initiated contacts.
c.
impersonal referrals.
d.
customer-initiated contacts.
26. Telephone calls and mail surveys are examples of
a.
impersonal referrals.
b.
marketer-initiated contacts.
c.
personal referrals.
d.
customer-initiated contacts.
27. The two major steps in preparing for a sales presentation are
a.
advertising and practicing.
b.
prospecting and practicing.
c.
publicity and prospecting.
d.
exhibits and prospecting.
28. Customer objections can be categorized as relating to
a.
product and price.
b.
need and sequence.
c.
source and pitch.
d.
timing and sequence.
29. Tyler cannot afford to hire a sales person for his small business but feels personal selling is the best
way to encourage prospects to become customers.You remind him that:
a.
he may have to be his own sales person for a while.
b.
good sales people are expensive.
c.
the most cost-efficient mode of selling may be to use sales or marketing representatives.
d.
he can always send his production people out to make sales calls.
30. Which compensation plan is best suited for new salespersons in a small business?
a.
Straight salary plan
b.
Strictly commissions-on-sales plan
c.
Combination of salary and commissions, with the salary representing the larger portion
d.
Combination of salary and commissions, with the commissions representing the larger
portion
31. ABC Corporation posts an article about its top salesperson every month in its internal newsletter.
Annually it posts an ad in the trade magazine about its best salesperson for the year. This is an
example of:
a.
personal recognition.
b.
compensation.
c.
a stock plan.
d.
a bonus plan.
32. The two basic types of advertising are ____, which makes potential customers aware of products and
their need for them, and ____, which conveys an idea about the firm that produces the product.
a.
institutional, product
b.
product, institutional
c.
product, publicity
d.
specialty, publicity
33. Stephen is a new entrepreneur who would like to advertise his business but feels his creativity is
insufficient to the task. Where can he find help?
a.
Competing businesses
b.
Neighboring businesses
c.
Computer sales firms
d.
Advertising media
34. The successful combination of advertising media depends on
a.
the type of business.
b.
customer income.
c.
the ad agency.
d.
the class of the customer.
35. To make an informed selection about where to advertise, a small business manager should
a.
consult different banks for loans to pay for the process.
b.
create the message in conjunction with past campaigns.
c.
learn about the strengths and weaknesses of each advertising medium.
d.
perform a statistical analysis of the target market (s).
36. Which medium is considered to have a high pass-along rate?
a.
Magazines
b.
Outdoor Media
c.
Radio
d.
Television
37. The problem with selling some items on the _________ is that the customer cannot see them. Which
medium is considered to have a no visual treatment?
a.
Magazines
b.
Outdoor Media
c.
Radio
d.
Television
38. An inducement to buy a certain product while typically offering value to recipients is
a.
a sales promotion.
b.
a specialty trade show.
c.
specialty advertising.
d.
includes all of the above.
39. Marketers and customers alike enjoy specialties because they
a.
allow customers to sample the product.
b.
cast doubt on the products offered by competitors.
c.
create goodwill for the company.
d.
prevent price competition.
40. Marcia is considering offering a promotional item for her sales people to give to prospects at their first
appointment. Which of the following would be the best choice?
a.
A calendar.
b.
A coupon for a discount on the first purchase
c.
Tickets to a professional sports event
d.
A bottle of fine wine
41. The key to effective ___________ is that they last.
a.
contests.
b.
samples.
c.
specialties.
d.
trade shows.
42. Hands-on experience with a product is possible with
a.
coupons.
b.
personal selling.
c.
specialty promotions.
d.
trade show exhibits.
43. Anne owns a small business dealing with industrial products. She currently uses personal selling
extensively, but she wants to reduce her cost without losing exposure. Which promotional tool should
she use?
a.
Contests
b.
Coupons
c.
Specialties
d.
Trade show exhibits
44. Terrance is concerned that printing and distributing coupons will be a waste of time and money
because the coupons may not be redeemed. You remind him that:
a.
the printing expenses are sunk costs and have no impact on the decision.
b.
customers who received but did not redeem coupons actually increased their purchasing
from the stores associated with the coupons.
c.
he can still make a profit by issuing coupons.
d.
coupons will attract only browsers but not shoppers.
45. Herbert is considering whether to advertise on the placemats used in many local restaurants. One of
the arguments in favor of this action is:
a.
publicity is important to a small business and should be used at every opportunity.
b.
you never know who might see the ad on the placemat.
c.
the cost of printing is shared with many other local businesses.
d.
every ad will generate approximately 1,000% of its cost in revenues.
46. At its core, successful promotion is all about effective _____.
a.
salesmanship
b.
communication
c.
publicity
d.
advertising
47. Ned’s company has supported the Little League, Pop Warner football, the high school band, and many
other local charities but isn’t getting the amount of press he feels his actions deserve. Why might this
be true?
a.
The local media disagree with the nature of Ned’s business.
b.
A good publicity program requires regular contacts with the news media so Ned needs to
make them aware of his support.
c.
The charities are not publicizing the names of their supporters.
d.
Ned’s contributions are too small to mention in the press.
ESSAY
1. What factors determine the combination of the promotional mix for a business? Use examples of non–
personal, personal and special forms of communication for each.
2. William is analyzing his financials and determining a budget for promotional activities for his
company. He has data from last year’s budget, past financial statements, projections for next year’s
budget as well as a general idea of what the competition spent last year. How should he determine the
new budget and what concerns should he be aware of during the process?
3. List and briefly explain the four common methods of earmarking funds for promotion.
4. What are five website design guidelines?
5. What are the advantages and disadvantages of using salary and commission as methods of
compensating salespeople?
6. What are the specific services that an advertising agency can provide?
7. Zoe has decided to start a personal shopper company in her metropolitan town of 250,000. She wants
to concentrate on college professors at the small university she graduated from which has 85
professors employed full time. After deciding whether each medium would be acceptable, complete
the following chart.
Medium
Acceptable?
Why or Why not?
Newspaper –
Campus and
Local
Radio –
Campus and
Local
Internet
Others?
8. Patty has been in operation for 5 years with a seasonal business, Patty’s Pickin’ Patch, offering U-Pick
organic vegetables in season. Other services include hay rides around the farm and a corn maze. For
each basic type advertising, discuss what Patty would use and how would these types benefit the
company?
Newspaper –
lead time may make it affordable. Cost would have
Local
Others?
Personal emails to professors she knows; offering
discount for professors by going through university’s
human resources department.
9. Kevin is the lead singer for the band Killin’ Beats. The band would like to have items at their live
shows to gain exposure and attract fans to their merchandise table. What promotion items should
Killin’ Beats use and what advantages will this provide?
10. List three sales promotional tools and briefly explain the unique characteristics of each tool. When
should these tools be used?
MATCHING
Match the term with its definition. Some terms may not be used.
a.
Advertising
f.
Product advertising
b.
Blog
g.
Promotion
c.
Institutional advertising
h.
Prospecting
d.
Microblogging
i.
Publicity
e.
Personal selling
j.
Sales promotion
1. A face-to-face meeting with a customer
2. Marketing communications that inform and persuade consumers
3. An online journal that offers a writer’s experiences, opinions, etc.
4. A promotional strategy that provides visibility for a business at little or no cost
5. A strategy to sell by informing, persuading, and reminding customers of the availability or superiority
of a firm’s products or services
6. A systematic process of continually looking for new customers
7. Posting short messages or photos on a blog or social networking site
8. A presentation designed to make potential customers aware of a specific product or service and create
a desire for it
9. A presentation of information about a particular firm, designed to enhance the firm’s image in order to
make its other advertising more credible and effective
Match the term with its definition. Some terms may not be used.
a.
App
f.
Publicity
b.
E-mail promotion
g.
Quick response (QR) code
c.
Hyperlink
h.
Sales promotion
d.
Mobile device
i.
Social media
e.
Promotional mix
j.
Social networking
10. A generic term used to refer to a variety of wireless handheld computing devices that allow people to
access information from wherever they are
11. Abbreviation for a software application for business or entertainment
12. A square bar code that connects to a website, a video, or some other web content
13. Social networking, microblogging websites, and other means of online communication where users
share personal messages, information, videos, and other content
14. A word, phrase, or image that a user may click on to go to another part of a document or website or to
a new document or website
15. An inclusive term for any promotional technique other than personal selling and advertising that
stimulates the purchase of a particular product or service
16. Delivery of a firm’s message by electronic mail
17. A blend of nonpersonal, personal, combined, and special forms of communication aimed at a target
market
18. Interacting online with other users who share common interests