Chapter 09 Promoting and Distributing Answer Key
Multiple Choice Questions
1.
Identify a true statement about institutional advertising.
2.
With the _____ method, advertising costs have a consistent relationship to a firm’s sales
volume and/or profit level.
3.
The _____ method of setting an advertising budget is useful for specialty goods and in
situations where outside factors limit the amount of product available.
4.
The most popular method of setting an advertising budget that depends on a manager’s
experience and intuition is the _____ method.
5.
_____ are long, usually half-hour TV ads that can be effective in helping small firms keep
growing and enter markets once dominated by giant competitors.
6.
The absolute cost of an advertising media is the:
7.
_____ advertising tries to get potential customers to buy a product within a short period of
time so that the reaction can be easily measured.
8.
_____ is the promotional effort made for a product or service in retailing firms, especially at
the point of purchase.
9.
Marketing activities that include the use of coupons, trading stamps, and samples that
stimulate buyer purchasing and dealer effectiveness is incorporated in _____.
10.
An electronics store provides discount coupons to its customers when they buy a product.
Which marketing activity, other than advertising, does this situation illustrate?
11.
An exhibition of products or services by companies in the same industry is known as a
_____.
12.
In the context of small businesses, which of the following statements is true of selling
products to different ethnic groups?
13.
In the context of small businesses, which of the following statements is true of global
marketing?
14.
Which of the following is an opportunity available for small firms interested in global
operations?
15.
Which of the following is a risk for small firms interested in global operations?
16.
Which of the following statements is true of exporting by small American firms?
17.
_____ is the effective physical movement of a product from the production line to the final
consumer.
18.
Which mode of transportation has the disadvantage of operating on fixed routes and on a
fixed schedule?
19.
_____ play an important role in shipping because of their flexibility in operation and the
improved highway systems.
20.
_____ is the use of a combination of truck, rail, or ship to transport goods.
21.
A(n) _____ consists of the various marketing organizations involved in moving the flow of
goods and services from a producer to a user.
22.
_____ are those institutions in the channel of distribution that either take title to or
negotiate the sale of a product.
23.
A _____ brings a buyer and seller of a particular good together but does not take actual
possession of the goods.
24.
_____ are marketing intermediaries who market a product to others for a fee.
25.
_____ take actual physical possession of goods and then market them to other channel
members, or industrial users.
26.
_____ sell goods and services directly to ultimate consumers.
27.
_____ are intermediaries who buy designer labels of clothing and sell them at less than
typical retail prices.
28.
Which of the following statements is true of selling merchandise in today’s world?
29.
Which of the following is the first step in the creative selling process?
30.
Which of the following is the last step in the creative selling process?
True / False Questions
31.
Advertising tries to convince customers that the product of a particular manufacturer is
superior to those of competitors.
32.
Product advertising refers to selling an idea about a company to consumers.
33.
To be most effective, an advertising program should be used for as short a time as
possible.
34.
The most accurate method for setting an advertising budget is the executive decision
method.
35.
An ineffective medium of advertising for small businesses is by word of mouth.
36.
Infomercials are short, usually five-minute TV ads selling a relatively new product or
service.
37.
Television is the most cost-effective advertising medium for many small firms to use.
38.
When considering media costs, one must look at only the absolute cost for running an
advertisement.