Entrepreneurship and Effective Small Business Management, 11e, Global Edition
(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.
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.
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.
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.
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.
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
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
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
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.
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.
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
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
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?
14) Which of the following media account for the greatest portion of advertising expenditures?
A) Internet
B) Radio
C) Television
D) Magazines
15) Newspaper advertising is characterized by:
A) broad territory coverage.
B) high costs.
C) long ad life.
D) prompt responses to the ads.
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.
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.
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.
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.
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.
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
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.
23) Television ads are most commonly sold in what time increments?
A) 20 seconds
B) 30 seconds
C) 60 seconds
D) 15 seconds
24) Flashing from one television channel to another, especially during commercials, is called:
A) zapping.
B) skipping.
C) cluttering.
D) zipping.
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.
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
27) Which advertising medium offers the greatest ability to selectively target a specific
audience?
A) Newspaper
B) Television
C) Direct mail
D) Radio
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.
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.”
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.
31) Which of the following is an advantage of outdoor ads?
A) Prominence of the ads
B) Narrow reach
C) Long exposure
D) Flexibility
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
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.
34) Transit advertising’s advantages include:
A) its flexibility.
B) the high quality color reproduction.
C) its wide coverage.
D) the prominence of display.
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.
36) The typical household receives an average ________ pieces of direct mail annually.
A) 52
B) 624
C) 236
D) 354
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.
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
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.
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.
41) Under the ________ method of establishing an advertising budget, the owner sees
advertising as a luxury.
A) what-is-affordable
B) matching competitors
C) percentage of sales
D) objective-and-task
42) The most commonly used method of establishing an advertising budget for a small business
is:
A) a percentage of sales.
B) spending what competitors spend.
C) objective-and-task method.
D) what is affordable.
43) The ________ method is the most difficult and least used technique of establishing an
advertising budget.
A) percentage of sales
B) spending what competitors spend
C) objective-and-task
D) what-is-affordable
44) Under ________, a manufacturer splits the cost of advertising with a small retailer if the
retailer features its product.
A) cooperative advertising
B) shared advertising
C) direct advertising
D) integrated marketing
45) Timex designs a set of newspaper ads promoting its watches, making them available at no
cost to jewelers selling its watches so they can add their names, addresses, and phone numbers. It
is using ________ advertising.
A) institutional
B) generic
C) cooperative
D) shared
46) In a(n) ________ advertising program, a group of similar businesses forms a “syndicate” to
produce “generic” ads that allow the individual businesses to dub in local information.
A) cooperative
B) shared
C) direct
D) integrated
47) A successful public relations technique used by local businesses to sponsor and promote
fundraising activities of nonprofit groups is called:
A) cooperative advertising.
B) shared advertising.
C) cause marketing.
D) integrated marketing.
48) Other cost saving suggestions for advertising expenditures include:
A) repeat ads that have been successful.
B) hire independent copywriters, graphic designers, photographers, and other media specialists.
C) use of identical ads in different media.
D) All of the above
49) For advertising to work it should:
A) fit into your company’s overall market strategy.
B) use as much financial resources as possible.
C) be part of the firm’s operating strategy.
D) None of the above
50) A tip for effective advertising is:
A) set long-term advertising objectives.
B) advertise in all media.
C) include many texts in your ads.
D) All of the above
51) Before making a sales call, the salesperson sets three objectives. Which one is not an
objective?
A) The primary objective
B) The visionary objective
C) The maximum objective
D) The minimum objective
52) Floating spots are common in what type of advertising media?
A) Radio
B) Newspaper
C) Magazine
D) Television
53) Tactics that can help an entrepreneur stimulate positive publicity for the firm are:
A) writing news releases and faxing them to the media.
B) sponsoring a community project.
C) promoting a cause.
D) All of the above
54) ________ forces the salesperson to be open-minded and to shoot for the top.
A) The primary objective
B) The minimum objective
C) The visionary objective
D) The ultimate objective
55) What advertising media attract a large percentage of the advertising dollars nationwide?
A) Newspaper
B) Radio
C) Internet
D) Television
56) To a business owner, the success of a trade show depends on:
A) understanding how a specific trade show might contribute to sales.
B) evaluating the alternative shows based on both cost and size.
C) Both A and B
D) selling a lot of products or services in a trade show.
57) ________ refers to a key customer benefits or a product or service that sets it apart from its
competition.
A) Unique product selling
B) Unique selling proposition
C) Competitive advantage
D) Differentiation
58) The ________ becomes the heart of a company’s advertising message.
A) USP
B) brand equity
C) price
D) product
59) Which of the following statements is correct?
A) Advertising, promotion, and public relations can be effective means of increasing sales by
informing customers of the business and its goods and services.
B) Advertising, promotion, and public relations can be effective by improving the image of the
firm and its products.
C) Advertising, promotion, and public relations can be effective by persuading customers to
purchase the firm’s goods or services.
D) All of the above
60) ________ is any sales presentation that is nonpersonal in nature and is paid for by an
identified sponsor.
A) Personal selling
B) Press release
C) Advertising
D) Marketing
61) Which of the following statements is correct?
A) Do not count on sponsorships for your entire advertising campaign.
B) It is not necessary to be a dominant sponsor of the event.
C) Most sponsorships are free and do not cost the company anything.
D) All of the above
62) David started his business a couple of years ago. After several marketing promotions, he
decided to establish direct contact between his sales people and the customers. His marketing
communication is:
A) advertising.
B) public relations.
C) sales person sponsorship.
D) personal selling.
63) One advantage of personal selling is:
A) success is not measured just by sales volume but also by customer satisfaction.
B) top sales people use an indirect approach to close the deal.
C) the sales person knows what the company wants and works for company’s perspective.
D) All of the above
64) ________ is unsolicited commercial e-mail.
A) E-mail advertising
B) Banner advertising
C) Spam advertising
D) Cookie advertising