RM Ch. 11

Creative retail ads should seek to accomplish all of the following EXCEPT: a. attract attention. b. be as short as possible. c. retain attention. d. achieve the objective of the advertising strategy. e. avoid having any errors, especially legal ones.

be as short as possible.

When a retailer's advertising message creates a scenario for the customer's imagination that is built around the retailer's products, the retailer is said to be using a(n) _____ approach. a. mood/image b. fantasy c. humorous d. lifestyle e. slice-of-life

fantasy

In-store displays, product demonstrations, samples and coupons are all forms of _____ promotions. a. jointly-sponsored b. in-store sales c. sole-sponsored d. publicity e. institutional

jointly-sponsored

All of the following are steps in a retail advertising campaign EXCEPT: a. designing the message. b. researching the target market. c. budgeting for the campaign. d. selecting the media to use. e. evaluating the campaign's results.

researching the target market.

Dad's Sandwich Shop offers frequent buyer points to its customers through a punch card program. Dad's is engaging in: a. sales promotion. b. positioning. c. "conning" the folks. d. personal selling. e. sales management.

sales 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)? a. $0.13 b. $13.33 c. $133.33 d. $7.50 e. $75.00

$1,200 / 9,000 = 0.13333 x 1,000 = $133.33

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)? a. $0.33 b. $.50 c. $1.00 d. $333.33 e. $500

$5,000 / 10,000 = 0.5 x 1,000 = $500

_____ advertising can be used by retailers to direct timed messages at a specific group of consumers without being noticed by the competition. a. Magazine b. E-mail c. Direct mail d. Newspaper e. Television

Direct mail

Which of the following is NOT a common objective for a retailer's advertising campaign? a. Make customers in your trading area aware that you offer the lowest prices b. Make customers aware of your large stock selection c. Cultivate new customers d. Increase sales e. Make customers think of you first when a need for your products occurs

Increase sales

_____ is non-paid-for communications of information about the company or product. a. Publicity b. Advertising c. Promotion d. Propaganda e. Personal selling

Publicity

The manager of a neighborhood hobby shop has decided that this year, due to an adverse local economy, she can only afford to spend $1,200 promoting through newspaper and radio advertisements. The manager is utilizing the _____ method in determining the shop's advertising budget. a. percentage-of-sales b. task-and-objective c. affordable d. competitive parity e. maximization

affordable

Common examples of sole-sponsored sales promotions include: a. coupons. b. product demonstrations. c. contests and sweepstakes. d. sampling. e. in-store-displays.

contests and sweepstakes.

☆☆☆If the manager of the local barbeque restaurant has determined that the theoretical number of consumers reached by its newspaper advertisement is 14,000 households, then the manager is estimating the _____ of the medium. a. frequency b. reach c. impact d. awareness e. coverage

coverage

The elements that make up a retailer's promotion, including advertising, publicity, personal selling, and sales promotions, should be managed: a. sequentially. b. separately. c. simultaneously. d. from a total systems perspective. e. using a cost-minimization approach.

from a total systems perspective

During the holiday season, a decision is made by the retailers in a local mall to share the costs of holiday advertising. When retailers engage in this type of activity, it is called: a. same-level advertising. b. vertical cooperative advertising. c. integrated mall advertising. d. horizontal cooperative advertising. e. shared-costs advertising.

horizontal cooperative advertising.

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. a. percentage-of-sales b. task-and-objective c. approximation d. parity e. affordable

percentage-of-sales

A sales associate at Autonation is describing the positive features of a new car to a customer. The sales associate is engaging in: a. sales promotion. b. connection selling. c. "conning" the folks. d. personal selling. e. sales management.

personal selling

The _____ is the geographic area where the retailer can serve customers, in terms of convenience and accessibility, better than the competition. a. promotional area b. primary trading area c. secondary trading area d. convenience area. e. merchandise range

primary trading area

Retailers use _____, which consists of four components (advertising, sales promotion, publicity, and personal selling), as a means to bring traffic into their stores. a. the marketing mix b. promotion c. a sales generation plan d. the retail mix e. competition analysis

promotion

The affordable method, percentage-of-sales method, and task-and-objective method are all methods used to determine the amount to be spent on: a. inventory levels. b. promotion. c. market research. d. store site selection. e. customer satisfaction.

promotion

When the authors made a book purchase through the Amazon.com Web site, they received a $50 coupon to purchase garden supplies from Amazon. Amazon's use of coupons to cross-sell is an example of _____ advertising. a. patronage b. reinforcement c. institutional d. promotional e. performance

promotional

A retailer's long-term promotion objectives should: a. focus on increasing patronage of existing customers. b. attract new customers from the existing trade area. c. increase customer satisfaction. d. seek to create a positive store image. e. always seek to bolster short-term results as well.

seek to create a positive store image.

When a retailer's advertising message depicts the consumer in everyday settings using the retailer's products, the retailer is said to be using a(n) _____ approach. a. everyday b. lifestyle c. reality d. day-to-day e. slice-of-life

slice-of-life

When discussing advertising selection, the term "impact" refers to the: a. number of consumers reached by an advertisement. b. total dollar amount allocated for a retailers advertising budget. c. number of units of the advertised item sold. d. cost per thousand. e. strength of the impression made, and if the ad ultimately leads to a purchase.

strength of the impression made, and if the ad ultimately leads to a purchase.

When retailers establish specific outcomes and then estimate the amount of advertising funds that are needed to achieve these results, it is called the: a. budget allocation method. b. affordable method. c. task-and-objective method. d. percentage-of-sales method. e. co-op planning method.

task-and-objective method.

Ineffective advertising is usually the result of the retailer making all of the following mistakes EXCEPT: a. the consumer is bombarded with too many messages. b. the advertising was not creative or appealing. c. the retailer had too high of a CPM-TM. d. there may have been poor internal communications among salesclerks, cashiers, stock clerks, and management. e. the advertisement may not have been directed at the proper target market.

the retailer had too high of a CPM-TM.

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

the retailer's existing primary trade area, an expanded trade area, and new residents to the community.

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: a. horizontal cooperative advertising. b. cost sharing. c. monopoly activities. d. sales promotion. e. vertical cooperative advertising.

vertical cooperative advertising.

_____ is paid, nonpersonal communication through various media with the intent of informing and/or persuading members of a particular audience. a. Publicity b. Advertising c. Promotion d. Propaganda e. Self-promotion

Advertising

When a retailer chooses to use all the money it can afford to spend on advertising, the retailer is using which method to determine its advertising budget? a. Percentage-of-sales b. Task-and-objective c. Affordable d. Competitive parity e. Concentrated target market

Affordable

Retailers using institutional advertising generally seek to establish what two major long-term promotion objectives? a. Creating a positive store image and public service promotion b. Increasing sales to existing customers and attracting new customers c. Reinforcing institutional objectives and reducing sales promotional activities d. Advertising a sale and generating store traffic e. Increasing sales and increasing profits

Creating a positive store image and public service promotion

Which of the following statements about magazines is FALSE? a. Consumers spend more time, per issue, with a magazine than with a newspaper. b. Magazines are the most useful in presenting institutional advertisements. c. Magazines have a longer life span per issue than do newspapers. d. Magazines have a high reproductive quality. e. Magazines have the shortest lead time requirements.

Magazines have the shortest lead time requirements.

Which of the following factors is NOT normally considered by the retailer before setting an advertising objective? a. The supplier support available to the retailer b. Size of trading area c. Age of the store d. Types of goods sold by the retailer e. Media alternatives available to the retailer

Media alternatives available to the retailer

_____ is the most frequently used advertising medium in retailing. a. Television b. The Internet c. Direct mail d. Radio e. Newspaper

Newspaper

Which of the following media alternatives is most difficult to target toward a specific target market? a. Radio b. Newspapers c. Magazines d. Direct mail e. The Internet

Newspapers

Southwest Airlines sponsors a number of public service activities at both the national and local levels. For instance, at the national level, employees support the Ronald McDonald House. In doing so, Southwest is attempting to achieve what long-term promotion objective? a. Public service promotion b. Image reinforcement c. Store repositioning d. Traffic development e. Attraction of new customers

Public service promotion

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

Remember that consumers always love a sweepstakes with a big grand prize; thus, never use price promotions when a sweepstakes is available.

Which of the following statements is true regarding retailers' use of advertising? a. Over time, television ads do not maintain their effects on consumer memory to the same extent as radio ads b. Radio lacks the ability to target messages to select groups c. Retailers are increasingly using television to create an image in the marketplace d. Television advertising is the least expensive form of media available to retailers e. "Surfing the tube" has decreased in recent years

Retailers are increasingly using television to create an image in the marketplace

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

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.

Which of the following statements is FALSE? a. Sales promotions should seek to provide some type of short-term sales incentive. b. Both sales promotions and publicity should be consistent with and reinforce the retailer's overall promotion objectives. c. Sales promotions usually warrant more attention by retail decision makers than is typically given. d. Sales promotions can be significant in helping the retailer differentiate itself from competitors. e. Sales promotions play a very small role in most retailers' overall promotion strategy.

Sales promotions play a very small role in most retailers' overall promotion strategy.

Which of the following is an example of publicity? a. Advertising your "After-Christmas" Sale the day after Thanksgiving. b. Sponsoring a Fourth of July Fireworks Celebration and Band Concert, open free to the public. c. Mailing special discount coupons to your credit card customers. d. Offering a free pair of wool mittens with any purchase of a winter jacket. e. A department store's cosmetic department providing in-store samples of the newest perfumes.

Sponsoring a Fourth of July Fireworks Celebration and Band Concert, open free to the public.

Which of the following statements about the Internet is FALSE? 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.

The Internet is the leading form of miscellaneous advertising used by retailers today.

Which of the following is an accurate statement about the scheduling of advertising? a. The higher the degree of habitual purchasing of a product class, the more the advertising should precede the purchase time. b. Advertisers should always seek to have a higher CPM than CPM-TM. c. Advertisements should be scheduled to always run in the Sunday paper. d. Advertisements should be scheduled without regard to the CPM-TM that is applicable. e. Advertisements should be concentrated during periods of lowest demand in order to pick up additional sales.

The higher the degree of habitual purchasing of a product class, the more the advertising should precede the purchase time.

What is the geographic area where the retailer can still be competitive despite a competitor having some locational advantage? a. The promotional area b. The primary trading area c. The secondary trading area d. The advertising range e. The merchandise range

The secondary trading area

Which of the following statements best defines coverage? a. The actual number of target customers that come into contact with a given advertising message. b. The theoretical maximum number of a retailer's target market that can be reached by the medium. c. The number of newspapers in which a retailer advertises. d. The strength of the impression of an advertisement on potential customers. e. The number of consumers in the retailer's target market actually reached.

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

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. a. repetition b. impact c. reach d. coverage e. frequency

frequency

Brynn's Bakery runs an advertisement touting the importance of diet and exercise. It also mentions how Brynn's uses the finest ingredients and offers many heart healthy choices. This is an example of _____ advertising. a. promotional b. institutional c. positional d. repetitive e. positive

institutional

Cooperative advertising: 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.

involves manufacturers or other retailers sharing a retailer's advertising expense.

Publicity offers retailers all of the following advantages EXCEPT: a. appeals to a mass audience. b. is considered to objective. c. is easy to manage and plan. d. provides a high level of credibility. e. is typically free.

is easy to manage and plan.

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. a. mood/image b. fantasy c. reality d. lifestyle e. slice-of-life

lifestyle

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. a. frequency b. reach c. impact d. awareness e. coverage

reach

All of following are reasons why the promotion activities of the retailer's supply chain may conflict with the retailer's objectives EXCEPT: a. manufacturers want to create a positive image for their products. b. retailers want consumers to know they have the products. c. retailers usually attempt to explain how the product works. d. manufacturers care only that consumers buy their products, not which store they make their purchases in. e. retailers tend to be more short-term oriented.

retailers usually attempt to explain how the product works.

Advertising effectiveness refers to: a. if it achieved the lowest CPM-TM. b. the impact an advertisement makes on potential customers. c. the number of target customers that come into contact with a given advertising message. d. the extent to which advertising has produced the desired result. e. the number of times a member of a target group is exposed to a specific advertisement.

the extent to which advertising has produced the desired result.