Question 1

Roger has set a meeting to promote a new product with an important client; they will meet at the client's corporate office.Which activity is Roger using to deliver this promotion?

Accepted Answer

Roger is using personal selling to deliver the promotion as he is meeting with the client in person to discuss the new product. Sales promotion involves incentive tactics to encourage customers to purchase the product, personal promotion refers to building a brand image of an individual, and advertising is a mass communication tool that is not specifically targeted at one client in a personal meeting.

Question 2

Ray mails surveys to residents of a neighbourhood with a return mail envelope.He plans to call the residents that respond to promote his home renovation company.How is Ray gaining knowledge of potential customers?

Accepted Answer

Ray is actively initiating contact with the residents who respond to his survey, making it a marketer-initiated contact. Through this contact, he can gather information about potential customers and promote his home renovation company.

Question 3

Leonard sell used cars independently.A major car manufacturer is located across the street from Leonard.Each time the dealership runs a used car promotion,Leonard does the same.What promotion budgeting method is Leonard using?

Accepted Answer

Leonard is using the method of spending as much as the competition, as he is matching the dealership's used car promotions each time. He is not using the other budgeting methods listed.

Question 4

Pat runs a construction company and advertises the level of quality and honesty that his business stands for.What kind of advertising does Pat use?

Accepted Answer

Pat's advertising focuses on promoting the overall values and principles of his construction company, rather than a specific product or service. This is the definition of institutional advertising.

Question 5

Richard's company purchases road bikes from Italian factories and then re-sells them to retailers all across Canada.Which of the following best describes Richard's company?

Accepted Answer

Richard's company acts as an intermediary by buying road bikes from Italian factories and selling them to retailers in Canada.

Question 6

What promotional tool provides hands-on experience with a product?

Accepted Answer

Trade show exhibits provide hands-on experience with a product by allowing potential customers to touch, try, and interact with the product. Coupons, specialty promotions, and personal selling do not necessarily provide a hands-on experience with the product.

Question 7

Sheila is a golf pro offering private lessons on her family's country property.She pays golf courses for space on their websites to provide golfing tips and inform their members about her private lessons.What kind of Internet advertising is this an example of?

Accepted Answer

This is an example of web sponsorship, as Sheila is paying for space on another website to promote her private lessons.

Question 8

Trinity advertises her store on a local radio station.She feels the higher ad costs are paying off because the ads are run during rush hour.What kind of media does Trinity use?

Accepted Answer

Trinity uses paid media as she pays for the advertising on the local radio station.

Question 9

Distribution involves physically moving products and establishing intermediary channels to support that movement.

Accepted Answer

This statement is true. Distribution involves the physical movement of products from the point of production to the point of consumption, as well as establishing intermediary channels such as wholesalers, retailers, and logistics companies to facilitate that movement.

Question 10

A sports association's ads are being ridiculed on social media by members of the public opposed to the association's poor response to social concerns.What kind of media is this an example of?

Accepted Answer

Earned media is any type of media coverage that is not paid for or directly controlled by the organization. In this case, the ads are being ridiculed on social media by members of the public, which is an example of earned media.

Question 11

Ken's business sells industrial hand tools.His advertising focuses on the features of the tools and their high quality.What kind of advertising does Ken use?

Accepted Answer

Ken's advertising focuses on the features and quality of the tools, which is characteristic of product advertising. Institutional advertising aims to promote the image or reputation of a company, while customer advertising targets specific groups of consumers. Specialty advertising involves the use of promotional items with the company logo or name.

Question 12

The type of advertising used should be based on the nature of the business,industry practice,available media,and the firm's objectives.

Accepted Answer

The type of advertising used should be tailored to the specific factors mentioned, such as the industry and available media, in order to best achieve the firm's objectives.

Question 13

Diane receives purchase orders from customers in Canada and emails them to manufacturers in Mexico.The manufacturers then ship the product directly to the customers once they receive the payment.What is Diane's role?

Accepted Answer

Diane's role is to act as an agent, facilitating the process between the customers and the manufacturers. She is not selling the products herself (retailer), nor is she physically handling or distributing the products (distributor). While she is involved in the import/export process, she is not directly bringing the products into the country herself (importer).

Question 14

Delivery to the customer is part of the marketing process.

Accepted Answer

Delivery of the product or service to the customer is a crucial part of the marketing process. It ensures customer satisfaction and helps in building a positive brand image, which, in turn, leads to word-of-mouth marketing and repeat business.

Question 15

How do most small firms restrict their advertising?

Accepted Answer

Small firms usually restrict their advertising by geographic boundaries, as they may not have the resources or reach to target a larger audience outside of their local area. This allows them to focus their efforts and budget on reaching potential customers within their immediate vicinity.

Question 16

Petra is helping to promote her friend's smooth jazz band.She places ads on the website of a popular night club.When surfers click on the club's Entertainment tab a picture opens showing her friend's band and his music starts playing.What kind of Internet advertising is this an example of?

Accepted Answer

This is an example of web sponsorship, where a website promotes a specific product or service. In this case, Petra placed an ad on the website of a night club promoting her friend's band. It is not a banner ad or a pop up, as it is specifically placed on the Entertainment tab and opens with a picture and music. It is also not linkage, which refers to links between websites.

Question 17

For every purchase made,a book retailer awards its customers with points that can be used as a discount against future purchases.What type of sales promotion is this an example of?

Accepted Answer

This is an example of a loyalty program, where customers are rewarded for their loyalty to the retailer by earning points that can be redeemed for discounts on future purchases.

Question 18

Which term refers to the problem that arises when the tendency for promotional expenditures is to spend more when sales are increasing and less when they are declining?

Accepted Answer

The problem described is known as the percentage of sales method, where promotional expenditures are tied to a percentage of sales. This can lead to overspending during periods of high sales and underspending during periods of low sales.

Question 19

Which of the following are basic promotional methods?

Accepted Answer

The basic promotional methods are advertising, personal selling, and sales promotion. Warranties and rebates fall under specific types of promotions and not under basic promotional methods. Therefore, option D is the correct answer.

Question 20

What kind of advertising media uses social media to oppose a business's advertising campaign or other actions?

Accepted Answer

Hijacked advertising media refers to when individuals or groups use social media to oppose a business's advertising campaign or other actions. This typically involves taking over a business's hashtag or creating a viral post that opposes the business in question.

Quiz 7: Distribution and Promotional Strategies