Deck 19: Promotional Strategy

Question 1

Most types of retail selling can be categorized as either _____.

A)order taking or order getting
B)clerical or professional
C)institutional or direct
D)promotional or institutional

Answer 1

A

Question 2

Controlled costs and the use of computerized data bases characterize _____.

A)daily newspapers
B)direct mail
C)local magazines
D)transit advertising

Answer 2

B

Question 3

Two or more retailers share costs in _____.

A)cooperative advertising
B)the milline rate
C)freestanding inserts
D)the percentage-of-sales technique

Answer 3

A

Question 4

A major advantage of publicity is _____.

A)ease in planning
B)no costs for total publicity effort
C)high believability
D)control over message placement

Question 5

Advertising,public relations,personal selling,and sales promotion are the four elements of _____.

A)communication channels
B)communication
C)selling
D)promotion

Question 6

A major disadvantage of publicity is that _____.

A)credibility is low
B)effectiveness cannot be assessed
C)a small audience is addressed
D)there is no control over message,timing,placement,and coverage

Question 7

The basic distinction between advertising and publicity is that _____.

A)publicity only deals with print media
B)in publicity,the media are not paid
C)publicity is nonpersonal
D)publicity is regulated by the Robinson-Patman Act

Question 8

The form of promotion that can be distinguished by media payment,a nonpersonal presentation,out-of-store mass media,and an identified sponsor is _____.

A)personal selling
B)sales promotion
C)advertising
D)public relations

Question 9

In a horizontal cooperative advertising agreement,_____.

A)two or more retailers share an advertisement
B)a manufacturer (or wholesaler)and a retailer share an advertisement
C)retailers pay for half of the cost of an advertisement
D)retailers must be competitive

Question 10

The U.S.retailer with the highest annual dollar advertising expenditure is _____.

A)Wal-Mart
B)Home Depot
C)Sears
D)Kmart

Question 11

Which medium is associated with a low response rate and a high throwaway rate?

A)local magazine
B)daily newspaper
C)weekly newspaper
D)direct mail

Question 12

What type of advertisement should be used to communicate a new branch location to potential customers?

A)institutional ad
B)competitive ad
C)reminder ad
D)pioneer ad

Question 13

A major disadvantage of advertising is that _____.

A)a small audience is attracted
B)retail control over message timing and content is low
C)few alternative media are available
D)the message is standardized and inflexible

Question 14

An advertisement in a local newspaper featuring a special price on ladies swimwear illustrates a(n)_____ ad.

A)pioneer
B)reminder
C)competitive
D)institutional

Question 15

A major advantage of advertising is that _____.

A)costs per viewer,reader,or listener are low
B)media costs are free
C)advertising has higher credibility than public relations
D)immediate feedback is provided

Question 16

Which media can be classified as dailies,weeklies,and/or shoppers?

A)telephone directories
B)newspapers
C)direct mail
D)flyers/circulars

Question 17

A free alphabetical listing is provided to all advertisers in _____.

A)shoppers
B)the Yellow Pages
C)flyers/circulars
D)the White Pages

Question 18

A major difference between retailer and manufacturer advertising strategies is that retailers _____.

A)have more geographically concentrated target markets than manufacturers
B)are more prone to use radio and television media than manufacturers
C)generate cooperative advertising programs
D)are more concerned with institutional advertising

Question 19

Any communication by a retailer that informs,persuades,and/or reminds the target market is _____.

A)the channel of communication
B)retail promotion
C)advertising
D)public relations

Question 20

A characteristic of direct mail is _____.

A)a long lead time
B)a targeted audience
C)low flexibility
D)good editorial content

Question 21

A difficulty associated with the use of advertising by an independent or a chain with few units is the _____.

A)high total costs
B)long lead time
C)high waste in geographic coverage
D)low opportunity for computerization

Question 22

Existing customers are encouraged to bring in new customers with _____.

A)prizes
B)referral gifts
C)sweepstakes
D)special events

Question 23

The first step in planning a retail promotional strategy is _____.

A)evaluating the success of past promotional strategies
B)determining the promotional mix
C)establishing an overall promotional budget
D)determining promotional objectives

Question 24

Which medium lets a retailer closely target the potential audience so as to minimize waste circulation?

A)daily newspaper
B)direct mail
C)radio
D)shopper

Question 25

The first stage in the hierarchy of effects is _____.

A)awareness
B)knowledge
C)liking
D)desire

Question 26

Which advertising medium generally has circulation or market coverage that is limited to active shoppers?

A)radio
B)weekly newspaper
C)direct mail
D)Yellow pages

Question 27

The best method for establishing an overall promotional budget is the _____ method.

A)all-you-can-afford
B)incremental
C)objective-and-task
D)percentage-of-sales

Question 28

Extensive media coverage refers to _____ reach with _____ frequency.

A)high;high
B)high;low
C)low;high
D)low;low

Question 29

"How large is your family?" and "How critical is gasoline mileage to you?" are examples of questions asked in the _____.

A)canned sales presentation
B)need-satisfaction approach
C)order-taking approach
D)promotional money approach

Question 30

The promotion form that most stresses increasing short-run sales volume and emphasizes novelty is _____.

A)sales promotion
B)public relations
C)personal selling
D)advertising

Question 31

Intensive media coverage is _____ reach with _____ frequency.

A)low;low
B)low;high
C)high;low
D)high;high

Question 32

The steps a consumer goes through when reacting to promotion are called _____.

A)information search
B)Herzberg's theory of motivation
C)the hierarchy of effects
D)the consumer's decision process

Question 33

In a distributed promotion effort,_____.

A)reach is stressed over frequency
B)salesmanship is stressed
C)advertising,personal selling,public relations,and sales promotion are coordinated
D)retailers promote throughout the year

Question 34

The canned sales presentation can be distinguished from the need-satisfaction approach by its _____.

A)focus on the customer's demographics
B)high training costs
C)repetitive nature
D)attention to a customer's product-related needs

Question 35

The efficiency of a medium is typically evaluated in terms of its _____.

A)circulation
B)cost per page
C)cost per thousand
D)discounted advertising rate

Question 36

Advertising messages need to be severely limited in the amount of copy in which medium?

A)outdoor
B)radio
C)flyers
D)local magazine

Question 37

PMs are _____.

A)bonuses paid to retail salespeople by manufacturers based on sales of their products
B)promotional allowances paid to retailers by manufacturers and wholesalers
C)point-of-purchase promotions developed by manufacturers
D)premiums to buyers to induce their purchase of a manufacturer's products

Question 38

In-store displays designed to increase sales are examples of _____.

A)ensemble displays
B)promotional displays
C)point-of-purchase promotion
D)personal selling

Question 39

At a small retailer,responsibility for the promotion function is most likely with the _____.

A)owner-manager
B)advertising agency
C)advertising department of a daily newspaper
D)in-house advertising agency

Question 40

The medium with the longest lead time is _____.

A)radio
B)direct mail
C)telephone directories
D)magazines

Question 41

A firm cannot devote its total promotional efforts to publicity since _____.

A)the sponsor is not identified
B)it has less credibility than advertising
C)public relations staff costs are high
D)there is no control over message,timing,placement,and degree of coverage

Question 42

An example of a good retail promotional objective is to _____.

A)generate store traffic
B)increase store loyalty
C)encourage shoppers to recommend friends
D)increase sales by 20 percent over the same period last year

Question 43

Which type of sales presentation is most appropriate when consumer needs are similar and when sales turnover is high?

A)canned sales presentation
B)need-satisfaction approach
C)point-of-purchase promotion
D)vertical cooperative advertising agreement

Question 44

The major difference between advertising messages and personal selling presentations is the _____.

A)total costs
B)flexibility
C)creation of awareness
D)wholesaler involvement

Question 45

The major distinction between the canned sales presentation and the need-satisfaction approach relates to _____.

A)the total time spent with a prospect
B)total training costs
C)whether the sales presentation is changed to reflect a prospect's needs
D)whether order-taker or order-getter personnel are used

Question 46

Which element in the retail promotion mix most often emphasizes novelty?

A)public relations
B)personal selling
C)sales promotion
D)advertising

Question 47

Which type of retailer ad is most likely to include a coupon or response card?

A)institutional advertisement
B)reminder advertisement
C)pioneer advertisement
D)competitive advertisement

Question 48

The major objective of an institutional advertisement is _____.

A)sales to consumers
B)sales to businesses
C)awareness
D)store image development and reinforcement

Question 49

Which element in the retail promotion mix most often has the greatest focus on the short-run?

A)public relations
B)sales promotion
C)advertising
D)personal selling

Question 50

An advantage of point-of-purchase promotion is its _____.

A)low cost
B)closeness to a consumer's purchase decision
C)referral nature
D)being based on contents

Question 51

The creation of regional editions,editorial association,and use of color have increased retailer use of _____.

A)direct mail
B)telephone directories
C)magazines
D)outdoor or billboard advertising

Question 52

A retailer opening a store in a location where it has no or little recognition should use a(n)_____ advertisement.

A)competitive
B)reminder
C)pioneer
D)institutional

Question 53

The major difference between an order-taking salesperson and an order-getting salesperson is based on _____.

A)the degree to which a salesperson informs and persuades customers
B)the method of compensation
C)who pays the salesperson
D)the salesperson's experience

Question 54

"Do you want to pay for the item by cash,credit card,or check?" illustrates what selling function?

A)greeting customers
B)closing the sale
C)sales presentation
D)demonstration of goods/services

Question 55

A retailer's problem with the use of PMs is _____.

A)that the costs are borne by the retailer
B)that self-service is encouraged
C)the reduction in a retailer's channel control
D)that only a small portion of the target market is reached

Question 56

The difference between a vertical cooperative advertising agreement and a horizontal cooperative advertising agreement is based on _____.

A)media utilized
B)cost sharing participation levels
C)message standards
D)which channel members are involved

Question 57

Which compensation system is most appropriate for a pure order-taking position?

A)compensation cafeteria
B)straight-commission plan
C)PMs
D)straight-salary plan

Question 58

The major difference between a contest and a sweepstakes is _____.

A)that contests are aimed at repeat purchases
B)that contests are tied to patronage
C)the extent to which skill is involved in winning
D)the sponsorship

Question 59

The fundamental differences between advertising and publicity relate to _____.

A)media payment and identification of sponsor
B)the personal nature of the presentation
C)the method of presentation
D)effectiveness

Question 60

The sharing of advertising expenses among members of a shopping center association is referred to as a _____.

A)pioneer ad
B)competitive ad
C)horizontal cooperative advertising agreement
D)vertical cooperative advertising agreement

Question 61

A newspaper's cost per thousand equals $20;however,only three-quarters of its readers are in a retailer's target market.The retailer's real cost per thousand is _____.

A)$15.00
B)$25.00
C)$22.00
D)$26.67

Question 62

In publicity,the media are not paid for the time or space utilized.

Question 63

PMs are paid by manufacturers to retailers that meet sales goals.

Question 64

A firm that spends too much on promotion in good sales periods and too little in poor sales periods probably uses which overall promotional budgeting technique?

A)retailer buildup
B)competitive parity
C)incremental
D)percentage-of-sales

Question 65

A massed advertising effort is most appropriate for retailers _____.

A)that stress personal selling
B)requiring high reach
C)with low advertising budgets
D)with peak sales periods

Question 66

In massed advertising,_____.

A)reach is irregular throughout the year
B)reach is regular throughout the year
C)frequency is irregular throughout the year
D)frequency is regular throughout the year

Question 67

In a vertical cooperative advertising agreement,two or more retailers share an advertisement.

Question 68

Institutional advertising does not emphasize product sales.

Question 69

A magazine with a circulation of 2,500,000 and a per-page advertising rate of $30,000 has a cost per thousand of _____.

A)$7.14
B)$12.00
C)$71.40
D)$120.00

Question 70

The need-satisfaction approach to retail selling focuses on the specific concerns and wants of each customer.

Question 71

Extensive coverage is comprised of _____.

A)low reach and low frequency
B)low reach and high frequency
C)high reach and low frequency
D)high reach and high frequency

Question 72

A magazine with a circulation of 2,500,000 has a per-page advertising rate of $30,000.Sixty percent of the magazine's readers are target customers for the retailer.The retailer's real cost per thousand for this magazine is _____.

A)$12
B)$20
C)$114
D)$192

Question 73

The last stage of the hierarchy of effects is most likely to utilize _____ advertisements.

A)competitive
B)active
C)latent
D)pioneer

Question 74

The early stages of the hierarchy of effects are most likely to utilize _____.

A)public relations
B)personal selling
C)pioneer advertisements
D)competitive advertisements

Question 75

In an effort to better appeal to retailers,many magazines are creating regional and local editions.

Question 76

Retailers generally have more geographically concentrated target markets than manufacturers.

Question 77

A newspaper has a circulation of 800,000 and a per-page advertising rate of $10,000.Its cost per thousand equals _____.

A)$8.00
B)$10.00
C)$12.50
D)$80.00

Question 78

Media charges are generally lower for manufacturers than for retailers.

Question 79

Advertising is any communication by a retailer that informs,persuades,and/or reminds a target market.

Question 80

A disadvantage of advertising as a promotional form is its standardized message content.