Question 1

The affordable approach to budgeting is used by many small retailers.

Accepted Answer

A) True 
 B)False

Question 2

The cost of a direct mail advertisement for Rolling Hills Restaurant was $5,000 and was sent to 15,000 households.Reach for the direct mail advertisement was determined to be 10,000.Which of the following is the correct cost per thousand-target market (CPM-TM)?

Accepted Answer

A)  $0.33 
B)  $.50 
C)  $1.00 
D)  $333.33 
E)  $500 
A)  $0.33 
B)  $.50 
C)  $1.00 
D)  $333.33 
E)  $500

Question 3

When retailers establish specific outcomes and then estimate the amount of advertising funds that are needed to achieve these results,it is called the:

Accepted Answer

A)  budget allocation method. 
B)  affordable method. 
C)  task-and-objective method. 
D)  percentage-of-sales method. 
E)  co-op planning method. 
A)  budget allocation method. 
B)  affordable method. 
C)  task-and-objective method. 
D)  percentage-of-sales method. 
E)  co-op planning method.

Question 4

An owner of a restaurant decided that 5 percent of next year's projected sales will be spent on advertising.The owner is utilizing the _____ method in determining the restaurant's advertising budget.

Accepted Answer

A)  percentage-of-sales 
B)  task-and-objective 
C)  approximation 
D)  parity 
E)  affordable 
A)  percentage-of-sales 
B)  task-and-objective 
C)  approximation 
D)  parity 
E)  affordable

Question 5

Discuss how retailers manage their sales promotion and publicity.

Accepted Answer

Retailers use sales promotions,which pro

Question 6

If the advertising manager of a retailer has determined that the target group members who come in contact with the retailer's television advertisement will see the ad approximately five times during the next week,the manager is estimating the _____ of the medium.

Accepted Answer

A)  repetition 
B)  impact 
C)  reach 
D)  coverage 
E)  frequency 
A)  repetition 
B)  impact 
C)  reach 
D)  coverage 
E)  frequency

Question 7

Retailers should direct their promotional dollars first toward households in their primary trading areas.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT a good guideline to follow when developing a promotional campaign?

Accepted Answer

A)  Try to utilize promotions that are consistent with your store image. 
B)  Review the success or failure of last year's promotions before developing this year's promotions. 
C)  Remember that consumers always love a sweepstakes with a big grand prize; thus, never use price promotions when a sweepstakes is available. 
D)  Use appeals that are of interest to your target market and that are realistic to obtain. 
E)  Make sure your objectives are measurable. 
A)  Try to utilize promotions that are consistent with your store image. 
B)  Review the success or failure of last year's promotions before developing this year's promotions. 
C)  Remember that consumers always love a sweepstakes with a big grand prize; thus, never use price promotions when a sweepstakes is available. 
D)  Use appeals that are of interest to your target market and that are realistic to obtain. 
E)  Make sure your objectives are measurable.

Question 9

The _____ is the geographic area where the retailer can serve customers,in terms of convenience and accessibility,better than the competition.

Accepted Answer

A)  promotional area 
B)  primary trading area 
C)  secondary trading area 
D)  convenience area. 
E)  merchandise range 
A)  promotional area 
B)  primary trading area 
C)  secondary trading area 
D)  convenience area. 
E)  merchandise range

Question 10

Sales promotion tools are excellent demand generators.

Accepted Answer

A) True 
 B)False

Question 11

Some retailers prefer to use prime locations rather than use their own promotions to generate customer interest.

Accepted Answer

A) True 
 B)False

Question 12

Pete's Pets has recently decided to increase its advertising budget to achieve the objective of increasing traffic during dull periods.Pete's is using the affordable approach to setting its advertising budget.

Accepted Answer

A) True 
 B)False

Question 13

In the percentage-of-sales method of budgeting for advertising,industry data or the retailer's past experience should be used to determine suitable levels of expenditures.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following media alternatives is most difficult to target toward a specific target market?

Accepted Answer

A)  Radio 
B)  Newspapers 
C)  Magazines 
D)  Direct mail 
E)  The Internet 
A)  Radio 
B)  Newspapers 
C)  Magazines 
D)  Direct mail 
E)  The Internet

Question 15

The first step in planning a retail advertising campaign is budgeting for the campaign.

Accepted Answer

A) True 
 B)False

Question 16

What is the geographic area where the retailer can still be competitive despite a competitor having some locational advantage?

Accepted Answer

A)  The promotional area 
B)  The primary trading area 
C)  The secondary trading area 
D)  The advertising range 
E)  The merchandise range 
A)  The promotional area 
B)  The primary trading area 
C)  The secondary trading area 
D)  The advertising range 
E)  The merchandise range

Question 17

Creating a positive store image is a long term promotional objective for retailers using institutional advertising.

Accepted Answer

A) True 
 B)False

Question 18

Contests and sweepstakes are both forms of publicity that are directed at improving the retailer's short-run performance.

Accepted Answer

A) True 
 B)False

Question 19

Which of following is a reason why the promotion activities of the retailer's channel partners may sometimes conflict with the retailer's goals?

Accepted Answer

A)  Manufacturers expect the retailer to pay for all advertising. 
B)  Manufacturers want to promote the price and not the features of their products. 
C)  Manufacturers tend to be more short-term oriented than retailers with their ads. 
D)  Retailers are interested in telling the customers that they have the product available for purchase at a convenient location, not what the product's features are. 
E)  Manufacturers carry a larger variety and breadth of products than do retailers. 
A)  Manufacturers expect the retailer to pay for all advertising. 
B)  Manufacturers want to promote the price and not the features of their products. 
C)  Manufacturers tend to be more short-term oriented than retailers with their ads. 
D)  Retailers are interested in telling the customers that they have the product available for purchase at a convenient location, not what the product's features are. 
E)  Manufacturers carry a larger variety and breadth of products than do retailers.

Question 20

_____ is non-paid-for communications of information about the company or product.

Accepted Answer

A)  Publicity 
B)  Advertising 
C)  Promotion 
D)  Propaganda 
E)  Personal selling 
A)  Publicity 
B)  Advertising 
C)  Promotion 
D)  Propaganda 
E)  Personal selling

The affordable approach to budgeting is used by many small retailers.

The cost of a direct mail advertisement for Rolling Hills Restaurant was $5,000 and was sent to 15,000 households.Reach for the direct mail advertisement was determined to be 10,000.Which of the following is the correct cost per thousand-target market (CPM-TM)?

When retailers establish specific outcomes and then estimate the amount of advertising funds that are needed to achieve these results,it is called the:

An owner of a restaurant decided that 5 percent of next year's projected sales will be spent on advertising.The owner is utilizing the _____ method in determining the restaurant's advertising budget.

Discuss how retailers manage their sales promotion and publicity.

If the advertising manager of a retailer has determined that the target group members who come in contact with the retailer's television advertisement will see the ad approximately five times during the next week,the manager is estimating the _____ of the medium.

Retailers should direct their promotional dollars first toward households in their primary trading areas.

Which of the following is NOT a good guideline to follow when developing a promotional campaign?

The _____ is the geographic area where the retailer can serve customers,in terms of convenience and accessibility,better than the competition.

Sales promotion tools are excellent demand generators.

Some retailers prefer to use prime locations rather than use their own promotions to generate customer interest.

Pete's Pets has recently decided to increase its advertising budget to achieve the objective of increasing traffic during dull periods.Pete's is using the affordable approach to setting its advertising budget.

In the percentage-of-sales method of budgeting for advertising,industry data or the retailer's past experience should be used to determine suitable levels of expenditures.

Which of the following media alternatives is most difficult to target toward a specific target market?

The first step in planning a retail advertising campaign is budgeting for the campaign.

What is the geographic area where the retailer can still be competitive despite a competitor having some locational advantage?

Creating a positive store image is a long term promotional objective for retailers using institutional advertising.

Contests and sweepstakes are both forms of publicity that are directed at improving the retailer's short-run performance.

Which of following is a reason why the promotion activities of the retailer's channel partners may sometimes conflict with the retailer's goals?

_____ is non-paid-for communications of information about the company or product.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 11: Advertising and Promotion

The affordable approach to budgeting is used by many small retailers.

The cost of a direct mail advertisement for Rolling Hills Restaurant was $5,000 and was sent to 15,000 households.Reach for the direct mail advertisement was determined to be 10,000.Which of the following is the correct cost per thousand-target market (CPM-TM)?

When retailers establish specific outcomes and then estimate the amount of advertising funds that are needed to achieve these results,it is called the:

An owner of a restaurant decided that 5 percent of next year's projected sales will be spent on advertising.The owner is utilizing the _____ method in determining the restaurant's advertising budget.

Discuss how retailers manage their sales promotion and publicity.

If the advertising manager of a retailer has determined that the target group members who come in contact with the retailer's television advertisement will see the ad approximately five times during the next week,the manager is estimating the _____ of the medium.

Retailers should direct their promotional dollars first toward households in their primary trading areas.

Which of the following is NOT a good guideline to follow when developing a promotional campaign?

The _____ is the geographic area where the retailer can serve customers,in terms of convenience and accessibility,better than the competition.

Sales promotion tools are excellent demand generators.

Some retailers prefer to use prime locations rather than use their own promotions to generate customer interest.

Pete's Pets has recently decided to increase its advertising budget to achieve the objective of increasing traffic during dull periods.Pete's is using the affordable approach to setting its advertising budget.

In the percentage-of-sales method of budgeting for advertising,industry data or the retailer's past experience should be used to determine suitable levels of expenditures.

Which of the following media alternatives is most difficult to target toward a specific target market?

The first step in planning a retail advertising campaign is budgeting for the campaign.

What is the geographic area where the retailer can still be competitive despite a competitor having some locational advantage?

Creating a positive store image is a long term promotional objective for retailers using institutional advertising.

Contests and sweepstakes are both forms of publicity that are directed at improving the retailer's short-run performance.

Which of following is a reason why the promotion activities of the retailer's channel partners may sometimes conflict with the retailer's goals?

_____ is non-paid-for communications of information about the company or product.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Buying and Handling

Merchandise Pricing

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters