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Exam 13: Distributing and Promoting Products

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Question 111

Multiple Choice

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A functional middleman who does not take title to products and who is compensated by commissions paid by producers is called a(n) _____.

A) retailer
B) wholesaler
C) jobber
D) agent
E) limited-line wholesaler

F) C) and D)
G) A) and B)

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Question 112

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A sales agent provides immediate entry into a territory, regular calls on customers, selling experience, and a known, predetermined selling expense.

A) True
B) False

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Question 113

Multiple Choice

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If Home Depot, Delta Faucets, and Armstrong Floor Coverings pay for a television show about remodeling a kitchen on the Home and Garden Network, these companies are ____ the show.

When Fashion Fair Cosmetics offers marketing assistance to resellers that buy its products, it is engaging in what type of promotion technique?

Newspapers, magazines, television, radio, and direct mail are all examples of advertising media.

SME Ads Inc. (SME) Steven Monahan owns SME Ads Inc., an advertising agency. At present, the company focuses on advertising only. However, Steven plans to expand the company's focus to include all the major elements of an organization's promotional mix. Steven feels that expanding the focus in such a way will allow the firm to meet customer needs in a more coordinated fashion. Currently, the firm organizes its work according to the media being used. Steven believes this is the most effective way to subdivide advertising. Since television is the most widely used advertising medium, the company spends most of its time on television advertising. SME knows what it takes to get the job done, and it is committed to success. -Refer to SME Ads Inc. SME recently created advertising for Maruti Automobiles for its new line of cars called Maruti Marvels. Such brand-oriented advertising is called _____.

A sales agent provides all of the following advantages except

Most local firms use immediate-response advertising.

A feature article is a type of publicity that is generally one typed page of about three hundred words.

Which type of store has high sales volume, little service, and prices 20-40 percent lower than supermarkets?

An advertising agency receives ____ percent of the client's media expenditures.

The sales force for Stanley Tool Corp. has been instructed to offer a 10 percent discount to its retailers on all units ordered in excess of the previous month's order amount. The offer will be extended to Stanley's independent retailers, applicable to several small hardware lines. The objective of this type of sales promotion is to:

A return of part of the purchase price to the consumer is known as a _____.

General Mills is planning a sales promotion to stimulate wholesalers and retailers to carry a new line of cake mixes and to market the mixes aggressively. What type of sales promotion should General Mills use?

Which of the following is not a public relations tool?

The most expensive but most adaptable method of the promotion mix is _____.

R&P Inc. R&P Inc. is an emerging company that wants to focus on personal selling, sales promotion, and public relations activities. R&P's management understands that personal selling is about the personal communication aimed at customers, but they feel that determining more specifics about the products they sell will allow them to better achieve their goal. Another important route they would like to take is to learn more about the various types of sales promotion. Finally, management would like to focus more on publicity-based PR. By concentrating on these areas, the company believes that it will be able to successfully create a promotional campaign. -Refer to R&P Inc. R&P management could use sales promotions for any of the following objectives except:

Ski XYZ Company manufactured too many ski jackets, overestimating the quantity retailers would purchase. So Ski XYZ has offered its customers a lower cost of purchase, 20 percent lower, if they order ten or more jackets. The company is displaying an example of what?

Every channel of distribution, from the simplest to the most complex, begins with the producer and ends with either the consumer or the business user.

An advertisement for a self-cleaning litter box for cats appears in Runner's World magazine. The litter box company's campaign is likely to fail because the ad is unlikely to: