Business test 4
What is meant by "promotional mix"?
A business will select the combination of promotional activities that will best help it achieve the goal of a particular promotion.
What are "loss leaders"? What are they designed to do?
A product that is priced either at or below cost. A type of sales promotion that encourages customers to come into a store
Whats important when choosing a loss leader?
Choose a product that customers buy often, normally stocked in little quantities.
What do employee compensation laws do?
Determine minimum wages
What is margin and how do you determine the amount of margin on a product?
Difference between the retail price of an item and the cost of the item to the store.
What makes a good employee?
Reliability, attitude, punctuality, honesty, manners, appearance, communication skills and work ethic
Which is specialty media? Give an example
Specialty media include giveaway items, such as pads of paper or pens.
The goal of promotion should be what?
Specific and clearly stated
Definition of Supply and Demand
The amount of product available to sell and the willingness of customers to buy that product.
What does total opens measure?
The count of recipients who actually open your marketing campaign's email.
What is the main reason a business might use a third-party list?
The difficulty of collecting large numbers of email addresses
What is bait and switch in retail sales
The illegal practice of advertising a product at a low price and then stocking little to none of that product, with the intention of selling customers a more expensive item
What should you consider when you are deciding who to hire?
The neatness of the completed form, completeness, communication skills, appearance, punctuality, manners, and attitude.
What is staffing level?
The number of workers assigned to jobs at a particular time.
Definition of profit?
The total revenue of a business less all expenses over a specific period of time. (revenue - cost)
What type of lists are usually large and are often tagged with demographic data?
Third party lists
What is the count of recipients who actually open your marketing campaign's email referred to as?
Total opens
What is a hard bounce?
When the address doesn't exist
When does customer traffic need to be examined when determining a store's busiest time?
When the stores the busiest and least busy
When does overstaffing happen? Why?
When there are too many staff members in the store.
When does understaffing happen? Why?
When there's not enough staff to handle customers
What is the correlation between a reasonable margin and the customers willingness to pay?
customers buy a product if it costs too much wont
What is punctuality and is it an important component of employment?
if an employee will show up to work on schedule and yes.
Is dropping a card into a customer's shopping bag considered an appropriate way to ask for his/her email address? Why or why not?
no because it's unreliable
What kind of selling requires that sales associates be friendly, knowledgeable, and helpful
personal
What would be considered a very poor response rate for an email campaign?
0%
Which government agency is in charge of enforcing advertising laws?
Federal Trade Commission (FTC) (Federal govt)
What type of emails have the advantage of using photos and designs to help sell your product or service?
HTML
How do managers deal with over staffing problems?
Hire part-time employees to work at peak times.
What customer expectations can result from pricing a product too low?
If remains unsold since customers may assume that there is something wrong with the product.
What is the definition of work ethic?
If the employee is hard-working and diligent.
Explain what is likely to happen to merchandise that is priced significantly lower than what customers expect to pay
It will remain unsold because customers will think somethings wrong with it.
What is a great advantage of an internal email list?
Most emails a retailer collects are voluntarily provided by customers, so they will be much more likely to read emails.
Are internal lists more expensive than third-party lists?
No because the retailer isn't collecting the emails themselves in third-party lists.
What was the purpose of the Clayton Antitrust Act of 1914 and the Robinson-Patman Act of 1936? What did they make illegal?
Outlawed the practice of price discrimination.
What are the four types of promotion that are commonly used?
Personal selling, sales promotion, advertising and public relations.
What did the Consumer Good Pricing Act establish?
Prevents manufacturing from requiring a set retail price and thus being able to punish store owners who don't follow the rule.
What is "institutional promotion"?
Promotion meant to heighten a store's image.
What form of promotion uses unpaid references to a business to further a positive impression?
Public Relations
Are promotional activities included in budgeting with other business expenses. Why or why not?
Yes because Promotional budgets are normally determined using a percentage of the business's net sales.