39.
The relative cost of an advertising media is the relationship between the actual cost of the
ad and the number of consumers the message reaches.
40.
Most small businesses use advertising agencies to develop their ad programs.
41.
Immediate-response advertising attempts to entice potential customers to buy a particular
product from the business within a short time.
42.
Rebates do not appeal to many manufacturers because only a few consumers actually
redeem them.
43.
Publicity is information about a business that is published or broadcast without charge.
44.
Small businesses should give the same attention to ethnic groups as they give to
traditional markets when marketing their product.
45.
Exporting is the process of purchasing the goods of other nations.
46.
A disadvantage of importing is that some domestic producers suffer a lack of customers
eventually leading to them to go out of business.
47.
Only large firms can carry out successful exporting.
48.
American small business owners have the misconception that payment for goods sold to
foreign buyers is uncertain.
49.
For small businesses, overseas markets represent only limited sales opportunities.
50.
It is a misconception among small business owners that foreign consumers will buy
American products.
51.
For small businesses, export start-up costs are always very high.
52.
Exports do not depend on the ability of importers to sell products to local customers, using
local currency.
53.
The U.S. Department of Commerce helps identify the best partners for potential trading
with the United States.
54.
The U.S. Department of Commerce offers assistance to small firms through its Trade
Information Center and its Global Export Market Information Service.
55.
Most small manufacturers have their own private warehouses.
56.
The primary advantage of trucks is the capacity to carry large volumes of goods, fairly
quickly, at a low cost.
57.
Air transport is appropriate for products with a low unit value and high weight.
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58.
Small businesses are opposed to the idea of using intermodal shipping for transporting
their goods.
59.
Brokers take actual physical possession of goods and then market them to retailers, other
channel members, or industrial users.
60.
Agents are intermediaries who take title to the goods handled and then sell them to
retailers or other intermediaries.
Essay Questions
61.
Define advertising. Explain the two types of advertising?
62.
What are the four methods used for setting an advertising budget?
63.
In the context of advertising for small businesses, what is an infomercial?
64.
What is merchandising?
65.
What are the different types of sales promotions used by companies to attract
consumers?
66.
Why do small firms import products?
67.
In the context of small businesses, describe the process of transportation.
68.
Explain the role of the four different intermediaries.
69.
What is prospecting?
70.
What are the attributes of a creative salesperson?