Question 1

Increasing sales should be a retailer's primary advertising objective.

Accepted Answer

A) True 
 B)False

Question 2

Creative ads should seek to (1)attract attention and retain attention,(2)achieve the objective of the advertising strategy,and (3)avoid having any errors,especially legal ones.

Accepted Answer

A) True 
 B)False

Question 3

If the owner of the local Red Nails Beauty Salon has determined that 1,100 target customers will come in contact with its print advertisement in the local newspaper,the owner is estimating the _____ of the medium.

Accepted Answer

A)   frequency
B)   reach
C)   impact
D)   awareness
E)   coverageF) A) and C)
G) A) and B)

Question 4

A major disadvantage of using magazine advertisements is the long lead time requirements.

Accepted Answer

A) True 
 B)False

Question 5

When a retailer's advertising message shows how its products fit in with the consumer's everyday style of living,the retailer is said to be using a(n) _____ approach.

Accepted Answer

A)   mood/image
B)   fantasy
C)   reality
D)   lifestyle
E)   slice-of-lifeF) C) and D)
G) A) and D)

Question 6

The affordable method,percentage-of-sales method,and task-and-objective method are all methods used to determine the amount to be spent on:

Accepted Answer

A)   inventory levels.
B)   promotion.
C)   market research.
D)   store site selection.
E)   customer satisfaction.F) All of the above
G) A) and E)

Question 7

With direct mail,the retailer can precisely target its message at a particular group as long as a good mailing list of the target population is available.

Accepted Answer

A) True 
 B)False

Question 8

Coverage refers to the theoretical maximum number of a retailer's target market that can be reached by a medium.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about the Internet is FALSE?

Accepted Answer

A)   The Internet is the leading form of miscellaneous advertising used by retailers today.
B)   The Internet is playing an important promotional role for retailers.
C)   A key aspect of the Internet is its ability to provide customers with information.
D)   The communication elements of advertising, sales promotion, and public relations are all strategic options a retailer can use when communicating with its various publics through the Internet.
E)   The Internet provides a platform for a retailer to employ a relatively low-cost integrated marketing communications mix.F) B) and D)
G) A) and E)

Question 10

Mastercard's "Priceless" ads are examples of a lifestyle advertising approach.

Accepted Answer

A) True 
 B)False

Question 11

Because all retailers are able to buy from the same vendors,merchandise alone does not make a store exciting.Therefore,in-store happenings,such as a sales promotion,must be used to generate excitement.

Accepted Answer

A) True 
 B)False

Question 12

When a retailer uses promotion to attract new customers,these new customers can come from:

Accepted Answer

A)   the retailer's existing primary trade area, an expanded trade area, and new residents to the community.
B)   nearby cities and towns.
C)   new residents to the community and tourists.
D)   mail order sales and outshopping customers.
E)   penetrating the existing trade area by stimulating more frequent shopping from current customers.F) A) and D)
G) B) and D)

Question 13

Publicity is non-paid-for media communications about the company or product.

Accepted Answer

A) True 
 B)False

Question 14

Cooperative advertising:

Accepted Answer

A)   is always a good deal for retailers since either the manufacturer or another retailer will pay for part of their advertising costs.
B)   requires that retailers "cooperate" with advertising media when scheduling the ads.
C)   is a practice used only in the apparel market today.
D)   involves manufacturers or other retailers sharing a retailer's advertising expense.
E)   is used to determine what part of the ad budget will be spent in each medium.F) A) and B)
G) A) and E)

Question 15

In-store displays are not only profitable for the retailer because they generate additional sales of the promoted product; they also generate a "rent" payment from the manufacturer.

Accepted Answer

A) True 
 B)False

Question 16

Common examples of sole-sponsored sales promotions include:

Accepted Answer

A)   coupons.
B)   product demonstrations.
C)   contests and sweepstakes.
D)   sampling.
E)   in-store-displays.F) A) and C)
G) B) and D)

Question 17

Without spending money on promotion,a retailer will never make any sales.

Accepted Answer

A) True 
 B)False

Question 18

The cost of a direct mail advertisement for Sam's Self-Recording Studio was $1,200 and was sent to 9,000 households.Which of the following is the correct cost per thousand (CPM) ?

Accepted Answer

A)   $0.13
B)   $13.33
C)   $133.33
D)   $7.50
E)   $75.00F) All of the above
G) D) and E)

Question 19

A retailer's location is not an important consideration when seeking to determine the target audience for a retailer's promotions.

Accepted Answer

A) True 
 B)False

Question 20

A manufacturer of flat screen televisions has agreed to pay 75 percent of an electronic store's upcoming newspaper advertisement costs.The store and the manufacturer are involved in:

Accepted Answer

A)   horizontal cooperative advertising.
B)   cost sharing.
C)   monopoly activities.
D)   sales promotion.
E)   vertical cooperative advertising.F) A) and E)
G) B) and D)

Exam 11: Advertising and Promotion

The cost of a direct mail advertisement for Sam's Self-Recording Studio was $1,200 and was sent to 9,000 households.Which of the following is the correct cost per thousand (CPM) ?

Correct AnswerverifiedShow Answer

In-store displays are not only profitable for the retailer because they generate additional sales of the promoted product; they also generate a "rent" payment from the manufacturer.

Correct AnswerverifiedShow Answer

If the owner of the local Red Nails Beauty Salon has determined that 1,100 target customers will come in contact with its print advertisement in the local newspaper,the owner is estimating the _____ of the medium.

Correct AnswerverifiedShow Answer

A major disadvantage of using magazine advertisements is the long lead time requirements.

Correct AnswerverifiedShow Answer

Mastercard's "Priceless" ads are examples of a lifestyle advertising approach.

Correct AnswerverifiedShow Answer

When a retailer's advertising message shows how its products fit in with the consumer's everyday style of living,the retailer is said to be using a(n) _____ approach.

Correct AnswerverifiedShow Answer

Creative ads should seek to (1)attract attention and retain attention,(2)achieve the objective of the advertising strategy,and (3)avoid having any errors,especially legal ones.

Correct AnswerverifiedShow Answer

Which of the following statements about the Internet is FALSE?

Correct AnswerverifiedShow Answer

Increasing sales should be a retailer's primary advertising objective.

Correct AnswerverifiedShow Answer

Because all retailers are able to buy from the same vendors,merchandise alone does not make a store exciting.Therefore,in-store happenings,such as a sales promotion,must be used to generate excitement.

Correct AnswerverifiedShow Answer

Common examples of sole-sponsored sales promotions include:

Correct AnswerverifiedShow Answer

The affordable method,percentage-of-sales method,and task-and-objective method are all methods used to determine the amount to be spent on:

Correct AnswerverifiedShow Answer

Publicity is non-paid-for media communications about the company or product.

Correct AnswerverifiedShow Answer

A retailer's location is not an important consideration when seeking to determine the target audience for a retailer's promotions.

Correct AnswerverifiedShow Answer

With direct mail,the retailer can precisely target its message at a particular group as long as a good mailing list of the target population is available.

Correct AnswerverifiedShow Answer

Coverage refers to the theoretical maximum number of a retailer's target market that can be reached by a medium.

Correct AnswerverifiedShow Answer

When a retailer uses promotion to attract new customers,these new customers can come from:

Correct AnswerverifiedShow Answer

Without spending money on promotion,a retailer will never make any sales.

Correct AnswerverifiedShow Answer

A manufacturer of flat screen televisions has agreed to pay 75 percent of an electronic store's upcoming newspaper advertisement costs.The store and the manufacturer are involved in:

Correct AnswerverifiedShow Answer

Cooperative advertising:

Correct AnswerverifiedShow Answer

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