Page 400 - Introduction to Business

374 PART 3 Marketing

Test Prepper

You’ve read the chapter, studied the key terms, and the exam is any day now. Think you are ready to ace it?
this sample test to gauge your comprehension of chapter material. You can check your answers at the back
of the book.

True/False Questions a. newspapers.
Please indicate if the following statements are true or b. radio.
false: c. direct mail.
d. broadcast television.
1. Personal selling is more important than
e. magazines.
advertising in promoting consumer
products. 3. Certificates that allow customers to receive
a cash refund or a free product at the time
2. Cable television offers a better opportunity
of purchase are
to target a selective audience than broad-
cast television. a. displays.
b. in-packs.
3. More dollars are spent annually in the
c. sponsorships.
United States for advertising than are spent
d. coupons.
on sales promotion.
e. POP.
4. Contests are competitions for which prizes
4. The cost of contacting a prospect at a trade
are awarded.
show is which fraction of the cost of a sales
5. Trade shows are an important way to pro-
call?
mote industrial products.
a. 1/8
6. A salesperson has closed successfully when
b. 1/4
the prospect has decided to purchase.
c. 1/3
7. Favorable publicity for a company is often d. 1/2
effective because it is viewed as providing e. 2/3
an objective, third-party endorsement.
5. Which of the following is not one of the
8. A manufacturer-industrial buyer channel is four major responsibilities for salespeople?
an example of a distribution channel often
a. Acquiring necessary information
used to market consumer products.
b. Prepresentation planning
9. Materials management and logistics are c. Giving the sales presentation
components of physical distribution. d. Prospecting
10. Air transportation is the fastest mode of e. Postpurchase activities
transportation and is also the most 6. A manufacturer is using agents to sell their
expensive. products. The agents receive a 12 percent
commission. If the manufacturer invested
Multiple-Choice Questions
$200,000 in developing a sales force and
Choose the best answer. incurred expenses of 8 percent of sales in
1. Which of the following is the most impor- maintaining the sales force, at what level of
tant reason for companies to promote their revenues would the cost of using agents
products or services? and going direct be equal?
a. To generate revenues a. $1 million
b. To make customers aware of their new b. $2 million
products c. $3 million
c. To encourage repeat purchases d. $4 million
d. To retain customers e. $5 million
e. To get customers to try new products 7. Which of the following is not considered to
2. The type of advertising that allows a com- be a type of nonstore retailing?
pany the best opportunity to selectively a. Direct selling
reach a target market is b. Catalog marketing

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