Entre ch 6

You have placed an online ad that is going to be charged using the CPA method at a rate of $0.25 per registered visitor. During one week, your web site received 63,931 hits from visitors linking from the advertisement; 9,426 of those inquired about your product, and 4,925 of them registered their personal information with your web site. How much will you have to pay the publisher of your ad?

$1,231.25

You spend $2,000 to mail advertisements to 5,000 residents of your community. Only 25 percent of the recipients actually bother to read the advertisement. How much did you spend per advertisement, if you count only the ads that actually got read?

$1.60

What is personal selling?

Direct communication between a prospective buyer and a sales representative in which the sales representatives attempts to influence the prospective buyer in a purchase situation.

Explain the difference between a direct and an indirect distribution channel.

Direct:Moves product directly from the manufacturer to the consumer--Indirect: uses intermediaries: people or businesses that move products between the manufacturer and the consumer.

__________ buying decisions are based on the logical reasoning of customers.

Rational

A(n) ________ is a refund offered to people who buy a product.

Rebate

What is a promotional mix?

The strategy created by adopting a blend of some or all promotional techniques. Including: advertising, publicity, personal selling, and sales promotion.

_____________ is a paid form of communication sent out by a business about a product or service.

Advertising

Customers are mainly interested in the features of a product or service, rather than the benefits they will receive. Select one: True False

F

Most manufacturers sell directly to customers. Select one: True False

F

One similarity between advertising and publicity is that a business must pay for them both. Select one: True False

F

Retail businesses, service businesses, and manufacturing businesses all tend to use the same channels of distribution. Select one: True False

F

Small companies generally use advertising agencies to create their advertisements since they do not have the expertise to create their own ads. Select one: True False

F

Using the telephone to promote your product is called spamming. Select one: True False

F

_______are the physical characteristics or capabilities of the product or service.

Features

What is physical distribution?

Includes not only transportation but also storage, handling, and packaging of products within a channel of distribution.

A special type of television advertisement called a(n) ________ can last a half hour or more and go into great depth about the product being offered.

Infomercial

People or businesses such as agents and wholesalers that move products between the manufacturer and the consumer are called ______

Intermediaries

Give two reasons why radio advertising can be effective for small businesses.

Less expensive than TV advertising. Radio stations tend to attract a particular kind of listener. You can contact stations and ask for a demographic profile of their listeners to make sure it fits your target market profile.

A direct channel moves the product directly from the ____ to the consumer.

Manufacturer

Most small, local businesses would be wasting their time and money to advertise in a national magazine like Ebony or Sports Illustrated. Select one: True False

T

Problem resolution requires the salesperson to adopt the customer's point of view. Select one: True False

T

Television reaches too broad an audience to be effective for most businesses. Select one: True False

T

There are no intermediaries involved in the manufacturer to consumer distribution option, and it is the most cost-effective. Select one: True False

T

Storing products in warehouses at various points through the channels of distribution Select one: a. allows channel members to balance supply and demand of products. b. reduces the cost of the products. c. decreases the risk that products may be damaged or stolen while stored. d. all of the above.

allows channel members to balance supply and demand of products.

Which of the following is not an example of a sales promotion? Select one: a. a free sample b. a radio advertisement c. a contest d. a coupon

b. a radio advertisement

The best advertising method to use to reach a lot of people quickly is Select one: a. billboards. b. television advertising. c. online advertising. d. newspaper advertising.

b. television advertising.

The component of the marketing mix that involves the locations and methods used to make products available to customers is called Select one: a. promotion. b. selling. c. distribution. d. shipping

c. distribution.

The act of establishing a favorable relationship with customers and the general public is called Select one: a. self-promotion. b. advertising. c. public relations. d. publicity

public relations.

A type of online ad that changes the background of the page being viewed is called a Select one: a. floating ad. b. banner ad. c. wallpaper ad. d. pop-up ad.

wallpaper ad.

Suppose a one-minute commercial costs you $30,000 to produce. You pay the television station $1,500 for each minute it airs, and you plan to have it aired 25 times. What is the ad's cost per minute?

$2,700

You must ship a product to a customer in Fairbanks, Alaska. One delivery service quotes you a price of $25 to ship the product. A second delivery service quotes you a price 5 percent less. What dollar amount will you pay to ship the product using the second service?

$23.75

Customers who purchased a $5 bottle of shampoo received a $1 rebate from the manufacturer if they sent in a rebate form. If 30,000 customers bought the shampoo and 14 percent of them sent back the rebate form, what was the total amount the manufacturer paid in rebates?

$4,200

Identify and describe three common ways online advertising is purchased.

--Cost per Mil(CPM)The charge to advertiser is based on the exposure of the message to a specific audience and are priced per thousand viewers reached with the message.--Cost per Click(CPC)The charge to the advertiser is based on the number of user clicks on the ad. Payment to publisher is dependent upon viewers actually responding to the ad by clicking on the hyperlink within the ad--Cost per Action(CPA)The charge to the advertiser is based on the user completing a form or some type of action that will lead to a sale.

Which of the following is probably an emotional buying decision? Select one: a. The McDougal family spends all afternoon visiting different appliance stores in search of a new dishwasher. b. Amber drops into the college bookstore to buy the textbooks she will need for her classes this semester. c. Lester carefully compares the benefits and features of several automobiles before deciding which one he will purchase. d. Juan rushes to the card shop to buy a Valentine card for his brand new girlfriend.

d. Juan rushes to the card shop to buy a Valentine card for his brand new girlfriend.

In which of the following distribution options does the manufacturer not get involved in selling? Select one: a. manufacturer to agent to wholesaler to retailer to consumer b. manufacturer to retailer to consumer c. manufacturer to consumer d. the manufacturer is involved in selling in all of the distribution options

manufacturer to agent to wholesaler to retailer to consumer

Newspaper advertising Select one: a. is rarely used by small businesses. b. reaches large numbers of people who may not be interested in your product or service. c. targets a wide geographic area. d. is relatively expensive.

reaches large numbers of people who may not be interested in your product or service.

Little time is usually spent on emotional buying decisions. Select one: True False

T

Lower-level needs are not usually met through personal selling. Select one: True False

T

______ of distribution are the routes that products and services take from the time they are produced to the time they are consumed.

Channels

What are the steps in the consumer decision-making process?

Define the problem, gather information, identify various solutions, evaluate alternatives and select best options, take action, and evaluate the action.

_______-mail advertising includes fliers, catalogs, letters, and other correspondence sent to target customers through the mail.

Direct

Some customers will know exactly what they want, and the fulfillment of their needs is referred to as Select one: a. a cost-benefit analysis. b. problem resolution. c. personal gratification. d. need satisfying.

Need satistfying

Briefly explain the role of packaging in the distribution cycle.

Packaging is designed to protect the product from the time it is produced until the time it is consumed to prevent it being damaged or destroyed resulting in loss of money.

A(n) ____ release is a written statement meant to inform the media of an event or product.

Press

What kind of distribution option is typically used by a service business? Why?

Single direct channel of distribution is generally used because the production and consumption of a service happens at the same time.

Explain why it is important for a business to assess its customers' needs. How can businesses perform needs assessment?

So that they can be addressed throughout the sales process. By interviewing the customer to determine his or her specific needs and wants. Salesperson can then help identify the range of options the customer had for satisfying those needs and wants.

Determining the effectiveness of online advertising is more accurate than other forms of traditional advertising. Select one: True False

T

Getting a product to the market in a timely manner is an important component of the distribution phase. Select one: True False

T

It is important for the salesperson to uncover and identify the customer's needs, issues, and concerns so that they can be addressed throughout the sales process. Select one: True False

T