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The combination of promotion methods that a firm uses to reach a target market is called advertising.

A) True
B) False

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R.A. Grant Co. assists art supplies manufacturers in transferring their products to retail outlets by matching up producers and retailers without actually taking title to the goods. R.A. Grant Co. would be classified as a _____.


A) functional middleman
B) merchant middleman
C) retailer
D) producer
E) channel of distribution

F) All of the above
G) B) and D)

Correct Answer

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Jersey Mike's Sub Shop offers its customers a card to stamp each time they buy a sandwich. When the card is full, the customer can redeem it for a free sandwich. This sales promotion is a _____.


A) buying allowance
B) frequent-user incentive
C) coupon
D) premium
E) loyalty reward

F) C) and E)
G) A) and C)

Correct Answer

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Walmart is opening a new store in a shopping mall. It announces a grand-opening sale in the local newspapers. This type of advertising is referred to as ____ advertising.


A) primary-demand
B) comparative
C) institutional
D) reminder
E) immediate-response

F) D) and E)
G) B) and E)

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The mode of transportation that carriers the smallest percent of all intercity freight is _____.


A) ships
B) pipelines
C) trucks
D) railroads
E) airplanes

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

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An independent retailer is a firm that operates more than one outlet and generally provides personal service.

A) True
B) False

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Off-price retailers are self-service, general merchandise outlets that sell goods at lower-than-usual prices.

A) True
B) False

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When major oil companies advertise to build goodwill rather than to stimulate sales, they are using _____.


A) institutional advertising
B) primary-demand advertising
C) public relations
D) publicity
E) selective-demand advertising

F) C) and E)
G) C) and D)

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Sandy is a specialist in crude oil. She represents buyers or sellers and is generally hired on a temporary basis. She is known for her expertise in crude oil. Sandy in a(n) _____.


A) agent
B) limited-line wholesaler
C) broker
D) commission merchant
E) full-service wholesaler

F) A) and E)
G) A) and D)

Correct Answer

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Advertising that is used to sell a particular brand of product is known as _____.


A) primary-demand advertising
B) direct-mail advertising
C) institutional advertising
D) selective-demand advertising
E) publicity

F) B) and E)
G) C) and E)

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A retail outlet that sells a single category of merchandise is known as a specialty store.

A) True
B) False

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Jessica decides to order smaller amounts of inventory at a time for her arts and crafts store. She is obviously concerned about _____ costs.


A) processing
B) stock-out
C) warehousing
D) stocking
E) holding

F) B) and E)
G) None of the above

Correct Answer

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The Home Depot runs a television campaign that demonstrates its support of Olympic athletes in order to enhance the firm's image. This is ____ advertising.


A) brand
B) institutional
C) comparative
D) primary-demand
E) immediate-response

F) C) and D)
G) B) and E)

Correct Answer

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Susan Smith, ad campaign manager for Coca-Cola, is making final changes to the content of an ad's message. She is talking with network distribution companies about when the ad will air, and she is discussing expected effects of the ad on consumers with commercial artists. Thus, she is in which stage of the ad campaign development process?


A) Development of the media plan.
B) Creation of the advertising message.
C) Evaluation of the advertising's effectiveness.
D) Analysis of the advertising target audience.
E) Execution of the campaign.

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

Correct Answer

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Selective-demand advertising aimed at persuading consumers to make purchases within a short time is called ____ advertising.


A) reminder
B) primary-demand
C) immediate-response
D) comparative
E) cooperative

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

Correct Answer

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Vending machines are classified as retail outlets.

A) True
B) False

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The primary concern of the media planner is to:


A) ensure that the budget is large enough to pay for the various media chosen for the campaign.
B) reach the largest possible number of persons in the advertising target for each dollar spent.
C) ensure that the words and illustrations used in the ad are meaningful and appealing to the target market.
D) ensure that the choice of words and illustrations used are appropriate for the choice of medium being used.
E) execute a successful ad campaign without going over the budget.

F) B) and E)
G) A) and D)

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Your company's greatest need is to employ salespeople who will be responsible for selling the firm's products to new customers and increasing sales to present customers. For this reason, you recommend that the company hire which type of salesperson?


A) Order taker
B) Missionary
C) Trade
D) Order getter
E) Technical

F) None of the above
G) A) and B)

Correct Answer

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​Companies seek good ___, which is usually provided for free by the news as new products emerge on the market. They seek this to help their public image.


A) ​publicity
B) ​public relations
C) ​premiums
D) ​trade shows

E) None of the above
F) All of the above

Correct Answer

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Whirlpool Appliances would most likely use _____ distribution to sell its products.


A) intensive
B) selective
C) patterned
D) exclusive
E) comprehensive

F) A) and E)
G) B) and E)

Correct Answer

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