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Information about a company, its employees, or its products that is published or broadcast in the mass media free of charge is called _____.


A) advertising
B) publicity
C) notoriety
D) promotion
E) personal selling

F) A) and B)
G) D) and E)

Correct Answer

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Determining the location and demographics of people in the advertising target, the content of the message, and the characteristics of the audiences reached by various media is done when creating the advertising message.

A) True
B) False

Correct Answer

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The Air Store, a retail outlet for fans and air conditioners, increased its advertising during the recent unusually hot summer days to encourage customers to make purchases quickly. This type of advertising is called ____ advertising.


A) primary-demand
B) reminder
C) immediate-response
D) institutional
E) media-oriented

F) C) and D)
G) A) and E)

Correct Answer

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Moving products from producer to wholesaler to retailer to consumer is called the traditional channel because most consumer goods are sold this way.

A) True
B) False

Correct Answer

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R&P Inc. R&P Inc. is an emerging company that wants to focus on personal selling, sales promotion, and public relations activities. R&P's management understands that personal selling is about the personal communication aimed at customers, but they feel that determining more specifics about the products they sell will allow them to better achieve their goal. Another important route they would like to take is to learn more about the various types of sales promotion. Finally, management would like to focus more on publicity-based PR. By concentrating on these areas, the company believes that it will be able to successfully create a promotional campaign. -Refer to R&P Inc. R&P management knows that ____ is the most effective and least expensive means of communicating product information to a large number of individuals and organizations.


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

F) B) and D)
G) None of the above

Correct Answer

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With warehouse showrooms, a customer selects the merchandise either from a catalog or from the showroom display, fills out an order form provided by the store, and hands the form to a clerk.

A) True
B) False

Correct Answer

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Primary-demand advertising is:


A) promotion of specific brands of goods or services.
B) image-building advertising.
C) advertising aimed at stimulating demand for an entire industry.
D) product-related advertising aimed at a company's primary target market.
E) aimed mainly at children who are in primary school.

F) A) and E)
G) C) and D)

Correct Answer

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McLane Distributors, a wholesaler, buys large quantities of health and beauty care products, light bulbs, batteries, canned food, computer disks, and more, and sells them to retailers. McLane is a(n) _____ wholesaler.


A) agent
B) limited-line
C) selected merchandise
D) specialty-line
E) general merchandise

F) All of the above
G) B) and E)

Correct Answer

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R&P Inc. R&P Inc. is an emerging company that wants to focus on personal selling, sales promotion, and public relations activities. R&P's management understands that personal selling is about the personal communication aimed at customers, but they feel that determining more specifics about the products they sell will allow them to better achieve their goal. Another important route they would like to take is to learn more about the various types of sales promotion. Finally, management would like to focus more on publicity-based PR. By concentrating on these areas, the company believes that it will be able to successfully create a promotional campaign. -Refer to R&P Inc. If the managers at R&P were interested in implementing the most widely used type of publicity, they should utilize which of the following?


A) News release
B) Captioned photograph
C) Point-of-purchase display
D) Feature article
E) Press conference

F) None of the above
G) A) and C)

Correct Answer

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SME Ads Inc. (SME) Steven Monahan owns SME Ads Inc., an advertising agency. At present, the company focuses on advertising only. However, Steven plans to expand the company's focus to include all the major elements of an organization's promotional mix. Steven feels that expanding the focus in such a way will allow the firm to meet customer needs in a more coordinated fashion. Currently, the firm organizes its work according to the media being used. Steven believes this is the most effective way to subdivide advertising. Since television is the most widely used advertising medium, the company spends most of its time on television advertising. SME knows what it takes to get the job done, and it is committed to success. -Refer to SME Ads Inc. As Steven plans to expand the company's focus to other major elements of the promotion mix, which of the following should he focus on if he wants to help his clients create and maintain favorable relationships between them and their various internal and external groups?


A) Word-of-mouth
B) Sales promotion
C) Rebates
D) Public relations
E) Personal selling

F) B) and C)
G) B) and D)

Correct Answer

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A firm with a limited budget for promotion will probably rely on advertising because personal selling is so expensive.

A) True
B) False

Correct Answer

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R&P Inc. R&P Inc. is an emerging company that wants to focus on personal selling, sales promotion, and public relations activities. R&P's management understands that personal selling is about the personal communication aimed at customers, but they feel that determining more specifics about the products they sell will allow them to better achieve their goal. Another important route they would like to take is to learn more about the various types of sales promotion. Finally, management would like to focus more on publicity-based PR. By concentrating on these areas, the company believes that it will be able to successfully create a promotional campaign. -Refer to R&P Inc. During which step of the personal selling process should an R&P salesperson ask the prospect to buy the product?


A) Closing the sale
B) Prospecting
C) Answering objections
D) Approaching the prospect
E) Making the advertisement

F) A) and B)
G) B) and E)

Correct Answer

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Trask, Inc., sells luggage and other related equipment online. When it receives an order, the order automatically goes to Williams Distribution. Williams gets the merchandise from its warehouse and ships it to the customer. Trask is in charge of all other aspects of the purchase. Williams Distribution is a _____ wholesaler.


A) full-service
B) limited-service
C) specialty-line
D) limited-line
E) commission merchant

F) A) and D)
G) B) and E)

Correct Answer

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The president of your small company wants to better understand the basis on which you select your promotion mix. You indicate that the selection of promotion-mix ingredients and the degree to which they are used depend on all of the following except the:


A) organizational promotional resources.
B) nature of the target market.
C) characteristics of the product.
D) personal preferences of the marketers.
E) feasibility of various promotion methods.

F) B) and E)
G) B) and D)

Correct Answer

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Wholesalers that perform the entire range of wholesaler functions are _____ wholesalers.


A) full-service
B) general merchandise
C) limited-line
D) limited-service
E) specialty-line

F) A) and D)
G) B) and D)

Correct Answer

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A frequent-user incentive is a gift that a producer offers a customer in return for using its product.

A) True
B) False

Correct Answer

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Macy's, Sears, and JCPenney are examples of _____ stores.


A) specialty
B) department
C) super
D) discount
E) convenience

F) A) and C)
G) B) and C)

Correct Answer

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A transportation firm whose services are available to all shippers is a common carrier.

A) True
B) False

Correct Answer

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Public warehouses will hold and issue receipts for goods used as collateral for borrowed funds.

A) True
B) False

Correct Answer

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What types of public-relations tools can organizations use?

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Publicity, communication in news-story f...

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