Deck 9: Promoting and Distributing

Question 1

Which of the following is true about exporting by American firms?

A) Only large firms can export successfully.
B) Payment for goods sold to foreign buyers is uncertain.
C) Overseas markets represent unlimited sales opportunities.
D) Foreign consumers will not buy American products.

Answer 1

C

Question 2

An exhibition of products or services by companies in the same industry is known as a _____.

A) trade show
B) conference
C) publicity release
D) trade mission

Answer 2

A

Question 3

_____ includes marketing activities (other than advertising and personal selling), such as the use of trading stamps and samples, that stimulate consumer purchasing and dealer effectiveness.

A) Sales force promotion
B) Publicity
C) Consumer promotion
D) Merchandising

Answer 3

C

Question 4

Which of the following refers to an opportunity available for small firms interested in global operations?

A) Expansion of markets and product diversification
B) Rapid change in political systems
C) Fluctuating foreign exchange rates
D) Cultural and language barriers

Question 5

_____ advertising tries to get potential customers to buy a product within a short period of time so that the reaction can be easily measured.

A) Subliminal
B) Covert
C) Surrogate
D) Immediate-response

Question 6

Advertising costs have a consistent relationship to the firm's sales volume in the _____ method of setting an advertising budget.

A) units of sales
B) percentage of sales or profits
C) objective
D) executive decision

Question 7

_____ is using a combination of truck, rail, or ship to transport goods.

A) Trans shipping
B) Trailer swapping
C) Distribution modality
D) Intermodal shipping

Question 8

The _____ method of setting an advertising budget is useful for specialty goods and in situations where outside factors limit the amount of product available.

A) units of sales
B) percentage of sales or profits
C) objective
D) executive decision

Question 9

In the context of small businesses, which of the following is true about selling products to different ethnic groups?

A) The median age of most ethnic groups is higher than that of whites.
B) Most ethnic groups constitute a good market for durable goods.
C) Ethnic groups cannot be reached through advertising.
D) Traditional markets and ethnic groups must be targeted in the same way.

Question 10

Which mode of transportation has the disadvantage of operating on fixed routes and on a fixed schedule?

A) Oil pipelines
B) Trucks
C) Railroads
D) Cables

Question 11

_____ is the promotional effort made for a product or service, especially at the point of purchase.

A) Trading
B) Sponsoring
C) Merchandising
D) Brokering

Question 12

In the context of small businesses, which of the following statements regarding global marketing is true?

A) Only large firms can export successfully.
B) Payment for goods sold to foreign buyers is always uncertain.
C) Foreign consumers will not buy American products.
D) Overseas markets represent wide sales opportunities.

Question 13

The most popular method of setting an advertising budget that depends on the manager's experience is the _____ method.

A) units of sales
B) percentage of sales or profits
C) objective
D) executive decision

Question 14

The absolute cost of an advertising media is the:

A) relationship between the actual cost and the number of consumers the message reaches.
B) ratio between the cost of commercial time and the program rating.
C) actual expenditure of running an ad.
D) cost of ad space compared to its circulation.

Question 15

Which of the following is a risk for small firms interested in global operations?

A) Economic fluctuation
B) Expansion of markets
C) Product diversification
D) Higher labor costs in most countries

Question 16

An electronics store provides discount coupons to its customers when they buy a product. Which marketing activity, other than advertising, does this situation illustrate?

A) Distribution
B) Publicity
C) Merchandising
D) Sales promotion

Question 17

_________ is the effective physical movement of a product from the production line to the final consumer.

A) Distribution
B) Merchandising
C) Warehousing
D) Prospecting

Question 18

Institutional advertising:

A) is selling an idea about the company.
B) refers to promoting a product that is banned by law.
C) conveys socially relevant messages.
D) must be used only while introducing a new product.

Question 19

_____ play an important role in shipping because of their flexibility and the improved highway systems.

A) Cables
B) Trucks
C) Railroads
D) Oil pipelines

Question 20

_____ are long, usually half-hour TV ads that help small firms keep growing and enter markets once dominated by giant competitors.

A) Circulars
B) Infomercials
C) Display ads
D) Product placements

Question 21

Which of the following is the first step in the creative selling process?

A) Making initial contact
B) Presenting the product
C) Preparation
D) Prospecting

Question 22

Television is a cost-effective advertising medium for many small firms to use.

Question 23

_______ are intermediaries who buy designer labels of clothing and sell them at less than typical retail prices.

A) Brokers
B) Off-price retailers
C) Mass-merchandising shopping chains
D) Wholesalers

Question 24

An ineffective medium of advertising for small businesses is by word-of-mouth.

Question 25

A(n) _____ consists of the various marketing organizations involved in moving the flow of goods and services from producer to user.

A) distribution channel
B) intermodal shipping network
C) trade promotion
D) order processing

Question 26

Online marketing is not a realistic option for small businesses because customers hesitate to use credit cards over the Internet.

Question 27

A _____ brings the buyer and seller together but does not take actual possession of the goods.

A) retailer
B) broker
C) wholesaler
D) merchandiser

Question 28

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.

Question 29

Product advertising refers to selling an idea about a company.

Question 30

Advertising tries to convince customers that the products are superior to those of competitors.

Question 31

Which of the following is the last step in the creative selling process?

A) Closing the sale
B) Handling objections
C) Suggestion selling
D) Sales follow-up

Question 32

_____ are marketing intermediaries who market a product to others for a fee.

A) Wholesalers
B) Brokers
C) Agents
D) Retailers

Question 33

_____ take actual physical possession of goods and then market them to other channel members, or industrial users.

A) Wholesalers
B) Brokers
C) Agents
D) Retailers

Question 34

Retailers sell goods and services directly to ultimate _____.

A) wholesalers
B) producers
C) brokers
D) consumers

Question 35

_____ are the institutions in the channel of distribution that either take title to or negotiate the sale of the product.

A) Publicists
B) Intermediaries
C) Manufacturers
D) Sales prospectors

Question 36

Which of the following is true about selling in today's world?

A) Advertising entices customers to desire a product, and it alone is usually sufficient to complete a sale.
B) Self-service increases retail costs by having less effective use of store space.
C) Now many retailers are using salary or salary plus commission, rather than straight commission, to pay their salespeople.
D) Personal selling is one activity where small firms, particularly retailers, can compete with larger competitors-and win.

Question 37

To be most effective, an advertising program should be used for as short a time as possible.

Question 38

Infomercials are long, usually half-hour TV ads selling a relatively new product or service.

Question 39

The most accurate method for setting an advertising budget is the units of sales method.

Question 40

Most small businesses use advertising agencies to develop their ad programs.

Question 41

Exporting is the process of purchasing the goods of other nations.

Question 42

In the context of steps in the sales process, presenting the product consists of taking the initiative in dealing with new and regular customers by going to them with a new product or service idea.

Question 43

American small business owners have the misconception that payment for goods sold to foreign buyers is uncertain.

Question 44

Rebates appeal to many manufacturers because few consumers actually redeem them.

Question 45

Only large firms can export successfully.

Question 46

The U.S. Department of Commerce helps identify the best partners for potential trading with the United States.

Question 47

Most small manufacturers have their own private warehouses.

Question 48

Small businesses have not yet started using intermodal shipping for transporting their goods.

Question 49

Small businesses should give the same attention to ethnic groups as they give to traditional markets when marketing their product.

Question 50

The primary advantage of railroads is the capacity to carry large volumes of goods, fairly quickly, at a low cost.

Question 51

For small businesses, export start-up costs are always very high.

Question 52

Brokers take actual physical possession of goods and then market them to retailers, other channel members, or industrial users.

Question 53

The U.S. Department of Commerce offers assistance to small firms through its Trade Information Center and its Global Export Market Information Service.

Question 54

For small businesses, overseas markets represent only limited sales opportunities.

Question 55

Air transport is appropriate for products with a low unit value and high weight.

Question 56

Exports largely depend on the ability of importers to sell products to local customers, using local currency.

Question 57

Publicity is information about a business that is published or broadcast without charge.

Question 58

Define advertising. What are the two types of advertising?

Question 59

Immediate-response advertising refers to purchasing and marketing other nations' products.

Question 60

It is a misconception among small business owners that foreign consumers will not buy American products.

Question 61

Describe the four different intermediaries.

Question 62

What are the four methods used for setting an advertising budget?

Question 63

Why do small firms import products?

Question 64

What are the different types of sales promotions?

Question 65

What are the attributes of a creative salesperson?

Question 66

Describe transportation in the context of small businesses.

Question 67

In the context of advertising for small businesses, what is an infomercial?

Question 68

What is prospecting?

Question 69

What is merchandising?