65) When using advertising, the small business owner should ask him/herself certain questions
such as “What business are we in?”, “What image do we want to project?”, etc.
66) The most powerful unique selling proposition is tied to the tangible practical features of the
product.
67) One way ad effectiveness can be measured is to simply measure the increased volume of
traffic into the store as a result of the ad.
68) Contacting local business and civic groups, sponsoring a seminar, offering to be interviewed
on a radio show are types of publicity a small business owner could use.
69) One of the most important advertising decisions the small business manager must make is
selecting the specific media to employ in disseminating the manager’s personal message.
70) The small business manager should employ the same advertising media as competitors to
increase the likelihood of advertising success.
71) When choosing a medium for an advertising message, a small business owner needs to
consider the absolute costs of the ad, the ad’s cost per potential customer reached.
72) Newspaper circulation as a percentage of total households reached has climbed over the past
two decades, making it an excellent value for the advertising dollar.
73) Newspapers are flexible and provide selected coverage in the firm’s trading area.
74) One disadvantage of newspaper ads is their long closing time.
75) Newspaper ad space is typically sold by lines and columns or inches and columns.
76) Because of radio’s nearly universal presence, advertising messages receive a tremendous
amount of exposure in the target market.
77) By choosing a radio station with the appropriate listener profile, a small business owner can
reach almost any target market desired.
78) Radio ads require repeated broadcasting in order to be effective; one-time exposures don’t
work.
79) In radio advertising, 30-second ads are the most common.
80) The primary benefit of television ads is their ability to demonstrate a good or service in a
graphic, vivid manner.
81) A significant disadvantage of television advertising is the difficulty in changing an ad to
match the rapidly changing marketplace.
82) The effectiveness of banner ads is judged through the pop-up rate.
83) Magazines have a wide audience reach in that nearly 9 out of 10 adults read an average of
seven different magazines a month.
84) The total circulation of magazines in the U.S. is 33 million.
85) Most magazines printed today are broad, general interest publications, printed as national
editions.
86) Magazines have a shorter closing time than newspapers, making them timely and highly
flexible.
87) Direct mail has been a popular method of small business advertising for a long time.
Catalogs were printed as early as the 15th century.
88) The greatest strength of direct mail is its ability to allow the owner to select the specific
audience to receive the message.
89) Direct mail ads typically produce quick results; in most cases, the ad will generate sales
within three or four days after it is received.
90) The cost of designing direct mail is less than in other media and is considered quite low.
91) Direct mail advertisers have found that recipients of direct mail computer disks throw them
away at a higher rate than they do magazines or newspapers.
92) The key to the success of a direct mailing campaign is the accuracy of the customer list.
93) Due to the low cost, most small businesses rely almost solely on outdoor/billboard
advertising.
94) Outdoor ads tend to reach people who are older, poorer, and not as well educated as the
average person.
95) Outdoor advertising has the highest cost per thousand (CPM) of all advertising media.
96) Some cities have put restrictions or outright bans on the use of outdoor ads.
97) When designing an outdoor ad, the small business owner must remember that “more” is
better and put as much information as possible in the ad.
98) To be most effective, an outdoor ad should be located on the right-hand side of the highway.
99) Transit ads offer the advantages of wide coverage and low costs for advertising messages.
100) A variation of outdoor advertising is transit advertising.
101) Trade show advertisements reach a particular type of customers—those who have already
made a purchase decision.
102) A major advantage of trade shows is their ability to provide a pre-selected audience of
potential customers.
103) One significant disadvantage of trade shows is inability to bring in new customers or
international customers.
104) Specialty advertising is an example of narrow casting in advertising.
105) Specialty advertising gives small businesses an opportunity to fine tune or personalize their
advertising to a specific customer.
106) A popular form of in-store advertising which reaches the customer at a crucial point is
specialty advertising.
107) Under the “what-is-affordable method” of establishing an advertising budget, advertising is
viewed as an investment which produces sales and profits in the future.
108) The objective-and-task method is the easiest and most used technique for establishing an
advertising budget.
109) The normal cooperative advertising plan involves a united advertising effort by a group of
small businessmen in related businesses.
110) Small businesses need not worry about public relations since their impact on the local
community is small.
111) Small businesses can save on advertising expenditures by repeating successful ads and
running ads when customers are most likely to buy.
112) Spreading a small advertising budget evenly and thinly over a 12-month period is a right
choice.
113) Stealth advertising does not necessarily look like traditional ads, and it is often located in
unexpected places.
114) With cooperative advertising, a manufacturing company shares the cost of advertising with
a retailer.
115) Research shows that consumers make nearly three-fourths of all buying decisions at the
point of sales.
116) A banner ad is an ad page that appears for a short time before a user-requested page
appears.
117) “Zapping” provides a great advantage to TV advertisers.
118) Promotion includes publicity, personal selling and advertising.
119) Unique selling proposition (USP) refers to a key customer benefit or a product or service
that sets it apart from its competition.
120) Entrepreneurs implement a marketing communications plan by ensuring that all elements of
the plan (advertising, publicity, public relations, sponsorships, and personal selling) deliver an
inconsistent message that is based on their firm’s unique selling proposition.
121) A company’s target audience and the nature of its message determine the advertising media
it will use.
122) Effective personal selling can give the small company a definite advantage over its larger
competitors by creating a feeling of personal attention.
123) An interstitial ad appears for a short time before a user-requested page appears.
124) Banner ads are small rectangular ads that reside on Web sites, much like roadside
billboards, touting a company’s product or service.
125) What questions does the small business owner need to answer in the developing of an
advertising strategy?
126) What is a company’s USP?
127) How can a small business owner use publicity to the benefit of his/her business?
128) List and explain the questions a small business owner needs to answer when choosing a
media vehicle for the advertising message.
129) Your small firm is considering using print media, specifically, newspapers for an
advertising campaign. Explain the advantages and disadvantages of this medium.
130) Discuss the advantages and disadvantages of using radio and television advertising. How
and why would you choose one over the other?
131) How could an entrepreneur use the Internet to advertise his/her business?
132) Why would a small business owner use direct mail in his/her advertising strategy? Why
wouldn’t he/she?
133) What is the value of outdoor and transit advertising to the small business?
134) Why would the small business owner use trade shows in his/her advertising strategy?
135) Name and discuss the four methods of establishing an advertising budget.
136) How can the entrepreneur use cooperative and shared advertising to effectively advertise
his/her business and products while holding down promotional costs?