Deck 17: Promotional Planning

Question 1

A key decision in developing a promotional strategy is to decide how much you want to spend on it.

Answer 1

False

Question 2

A blog is an application for business or entertainment loaded onto any mobile device.

Answer 2

False

Question 3

The particular mix of the various promotional tools used by a business is determined by many factors, one of which is geography.

Answer 3

True

Question 4

The simplest method of determining how much to budget for promotion is to earmark a percentage of sales.

Question 5

Successful communication includes feedback.

Question 6

The percentage of sales method for estimating promotional expenditures does not make sense for new businesses with no historical sales figures on which to base their promotional budgets.

Question 7

In practice, communication is simple: You send a message and someone else receives it and understands it.

Question 8

Promotion consists of marketing communications that inform potential consumers about a firm or its product or service and try to persuade them to buy it.

Question 9

The lower a small business ranks in search engine results, the more visitors it will attract.

Question 10

A follow-up step after a sales presentation is prospecting.

Question 11

The promotional mix includes advertising, social media, and sales promotion, but not personal selling.

Question 12

A quick response (QR) code allows a person to access a website without having to type in the URL.

Question 13

The preferred approach to determining promotional expenditures is to decide what it will take to do the job through a comprehensive analysis of the market.

Question 14

Personal selling is an effective method for promoting toothpaste.

Question 15

For a small business, personal selling is the preferred method of promotion, due to it not being as labor intensive as other methods.

Question 16

While e-mail promotion provides a low-cost way to pinpoint customers and achieve high response rates, the issue of churning is a concern.

Question 17

Domain names cannot begin or end with a number.

Question 18

Spending as much as the competition does for promotional efforts can lead the firm to copy competitors' mistakes as well as their successes.

Question 19

Deciding which social networks to use, learning how to use them, and staying active and involved by sharing information and monitoring what others are doing require resources that very few small businesses have.

Question 20

Using whatever is left over to support promotional efforts after all other activities have been funded is sometimes described as the "spend the last dollar" method.

Question 21

Inquiries by a potential customer that do not lead to a sale can still create what is known as a "promising prospect."

Question 22

The distinguishing characteristics of specialties are their enduring nature and tangible value.

Question 23

Sales promotion refers to promotional techniques, other than personal selling or advertising, that stimulates the purchase of a particular product or service.

Question 24

Advertising is inexpensive and adds direct value to a product or service.

Question 25

Social websites have an increasing number of subscribers providing reviews of the establishments they patronize, providing the astute entrepreneur with impersonal referrals.

Question 26

Salespeople will not be motivated for the same reasons that an owner is.

Question 27

Creating print advertising in-house is becoming increasingly common among small firms.

Question 28

Advertising seeks to sell by informing, persuading, and reminding customers of the availability or superiority of a firm's products or services.

Question 29

Research has found that one-shot advertisements that are not part of a well-planned promotional effort often retain their effectiveness over a long period of time.

Question 30

Product advertising is intended to make the public aware of the company and enhance its image.

Question 31

Advertising is considered to be part of sales promotion.

Question 32

The most cost-efficient mode of personal selling may be the use of a self-employed sales or marketing representative.

Question 33

Many small manufacturers, while agreeing that trade show exhibits can be helpful in promotion, rightly believe that they are not as cost-effective as advertising.

Question 34

A good publicity program requires regular contacts with the news media.

Question 35

Most small business advertising is institutional advertising.

Question 36

The straight salary form of compensation is best for motivating salespeople because of the financial security that salaries provide.

Question 37

A generous salary with a commission cap is typically the best form of compensation for salespeople in a small business.

Question 38

Product advertising is designed to make potential customers aware of a particular product or service and create a desire for it.

Question 39

Trade show groups claim that the cost of an exhibit is less than one-fourth the cost of sales calls.

Question 40

The most appropriate combination of advertising media is newspaper ads and social media.

Question 41

The _____ allows users to find their way around the Internet.

A) Domain Name System (DNS)
B) Internet Corporation for Assigned Names and Numbers (ICANN)
C) Small Business Administration (SBA)
D) World Wide Web Consortium (W3C)

Question 42

Get Moving, a fitness equipment retailer, has been successful in a strong economy by spending 4% of its sales revenues on promotions. What adjustments, if any, should Get Moving make now that the economy has gone into recession?

A) Continue to spend 4% of sales on promotions, even though this results in a lower promotional budget.
B) Increase the promotional budget to attract new customers.
C) Decrease the promotional budget, since no one has any money to spend anyway.
D) Spend 4% of profits on promotions rather than 4% of sales.

Question 43

The biggest pitfall of spending at the same level as competitors for promotion is that it

A) tends to not pay off in the long run.
B) can make the firm lazy.
C) not feasible for reacting to short-run promotional tactics.
D) can drain the company's budget more quickly than other methods.

Question 44

The "spending as much as the competition" method

A) can be used to duplicate the promotional efforts of close competitors.
B) depends on the firm's past experiences.
C) should be used to introduce a unique, new product.
D) should never be used.

Question 45

Which of the following forms of promotion would be the most effective for industrial insulation products?

A) Advertising
B) Personal selling
C) Sales promotions
D) Social media

Question 46

Using whatever is left over to support promotional efforts after all other activities have been funded is sometimes described as the _____ method.

A) percentage of profits
B) "all you can afford"
C) "what the market will bear"
D) cost plus

Question 47

Which of the following forms of promotion would be the most effective for ink pens?

A) Advertising
B) Personal selling
C) Sales promotions
D) Social media

Question 48

Coupons not only attract customers to purchase products, but they also have value even if they are not used.

Question 49

Which of the following should be evaluated to establish a promotion-to-sales ratio?

A) The level of spending by competitors
B) The firm's objectives
C) The firm's own past experiences
D) The strengths and weaknesses of the company

Question 50

_____ is the process of increasing the volume and quality of traffic to a particular website.

A) Blogging
B) Search engine optimization (SEO)
C) Prospecting
D) Social networking

Question 51

Ricky created an attractive website but is disappointed that he hasn't received many hits. You suggest that he

A) place a banner ad on other websites.
B) purchase a billboard ad to advertise his website.
C) buy a newspaper ad to promote his website.
D) hire a different website creator.

Question 52

According to the Pew Research Center, approximately _____ out of every ten Americans are connecting with one another via social media sites.

A) three
B) five
C) seven
D) nine

Question 53

A widely dispersed market generally requires which of the following promotional methods?

A) Personal selling
B) Sales promotion
C) Personal promotion
D) Advertising

Question 54

Which of the following is a good way to increase the volume and quality of traffic to a particular website?

A) Place banner ads on other websites.
B) Include the URL on print promotions and business cards.
C) Make sure that the site is as search-engine friendly as possible.
D) All of these are correct.

Question 55

A major shortcoming with the _____ method of determining promotional expenditures is a tendency to spend more on promotion when sales are increasing and less when they are declining.

A) percentage of sales
B) "what it will take to do the job"
C) sales plus
D) "all you can afford"

Question 56

Both wholesalers and retailers can utilize sales promotion tools to increase sales.

Question 57

Inspiring Toys, a small manufacturer of educational toys, is formulating a budget for next year's promotional activities. Which of the following methods should be considered to react to a short-run promotional tactic done by Mattel?

A) Spending at the same level as competitors
B) Budgeting a percentage of sales
C) Determining how much is needed to achieve objectives
D) Spending whatever is left over after other expenses are covered

Question 58

A small, specialized software program is called

A) e-mail.
B) spam.
C) a blog.
D) an app.

Question 59

Stacy was pleased when positive comments about her products appeared on a blog but became discouraged when other reviewers panned the same products. Stacy must remember that

A) business owners cannot absolutely control how their businesses are viewed by consumers.
B) customers will misuse the products, resulting in negative comments.
C) people are more likely to share complaints than compliments.
D) if she wants more positive comments, she will have to write them herself.

Question 60

An effective promotional strategy takes into account all of the following EXCEPT

A) the investments of the company.
B) the characteristics of the product.
C) learning from the competitors.
D) the costs of promotion.

Question 61

The most appropriate combination of advertising media depends on _____ and _____.

A) the type of business; its current circumstances
B) customer income; the class of the customer
C) the ad agency; the business's current circumstances
D) the type of business; the class of the customer

Question 62

According to the Pew Research Center, in 2018, _____% of adults in the United States owned a smartphone.

A) 95
B) 77
C) 52
D) 63

Question 63

Personal selling degenerates into mere order-taking when a salesperson

A) lacks product knowledge.
B) is persistent about selling the product.
C) is not friendly and enthusiastic when a customer enters the store.
D) cannot handle objections.

Question 64

Mary, a sales representative for a small cleaning business, asks current customers for names of friends, customers, and other businesses that might be interested in the company's cleaning services. Mary is relying on _____ to identify potential customers.

A) customer-initiated contacts
B) impersonal referrals
C) marketer-initiated contacts
D) personal referrals

Question 65

Will is a salesperson for a small appliance store. In an attempt to locate potential new customers, he decides to poll Facebook visitors; they are entered into a drawing for a gift certificate at the store. Individuals who complete the poll will receive a phone call from Will about the store's products and current promotions. Will is gaining knowledge of potential customers through

A) personal referrals.
B) marketer-initiated contacts.
C) impersonal referrals.
D) customer-initiated contacts.

Question 66

Media publications, public records, and directories are sources of

A) impersonal referrals.
B) marketer-initiated contacts.
C) personal referrals.
D) customer-initiated contacts.

Question 67

A salesperson at Plumbers Warehouse searches public records of new building permits to identify potential customers for new bathrooms. This salesperson is relying on _____ to identify sales prospects.

A) personal referrals
B) marketer-initiated contacts
C) impersonal referrals
D) customer-initiated contacts

Question 68

Before social networking sites became dominant, _____ provided a low-cost way to pinpoint customers and achieve high response rates.

A) e-mail promotion
B) search engine optimization (SEO)
C) reciprocal advertising
D) quick response (QR) codes

Question 69

Stephen is a new entrepreneur who would like to advertise his business but feels his creativity is insufficient to the task. Where can he find help?

A) Competing businesses
B) Neighboring businesses
C) Computer sales firms
D) Advertising specialists

Question 70

Media Corporation posts a photo of the week's top salesman on the company website. Every month, it includes an article about its top salesperson in its internal newsletter. This is an example of

A) personal recognition.
B) compensation.
C) a stock plan.
D) a bonus plan.

Question 71

Telephone calls and mail surveys are examples of

A) impersonal referrals.
B) marketer-initiated contacts.
C) personal referrals.
D) customer-initiated contacts.

Question 72

Which of the following compensation plans is best suited for new salespersons in a small business?

A) Straight salary plan
B) Strictly commissions-on-sales plan
C) Combination of salary and commissions, with salary representing the larger portion
D) Combination of salary and commissions, with commissions representing the larger portion

Question 73

For best results, sales promotion typically is used

A) in combination with personal selling and advertising.
B) as a standalone promotional technique.
C) periodically rather than regularly.
D) None of these are correct.

Question 74

Tyler cannot afford to hire a salesperson for his small business but feels personal selling is the best way to encourage prospects to become customers. You remind him that

A) he may have to be his own salesperson for a while.
B) good salespeople are expensive.
C) the most cost-efficient mode of selling may be to use sales or marketing representatives.
D) he can always send his production people out to make sales calls.

Question 75

The two major steps in preparing for a sales presentation are _____ and _____.

A) advertising; practicing
B) prospecting; practicing
C) publicity; prospecting
D) creating; practicing

Question 76

Which of the following advertising media is considered to have a no visual treatment?

A) Magazines
B) Outdoor media
C) Radio
D) Television

Question 77

Most customer objections can be categorized as relating to all of the following EXCEPT

A) product.
B) need.
C) pitch.
D) timing.

Question 78

To make an informed selection about where to advertise, a small business manager should

A) consult different banks for loans to pay for the process.
B) create the message in conjunction with past campaigns.
C) learn about the strengths and weaknesses of each advertising medium.
D) perform a statistical analysis of the target market(s).

Question 79

Which of the following advertising media is considered to have a low pass-along rate?

A) Newspapers
B) Outdoor media
C) Radio
D) Television

Question 80

The two basic types of advertising are _____ advertising and _____ advertising.

A) institutional; product
B) product; institutional
C) product; publicity
D) specialty; publicity