QUESTION What is a likely consequence of a multilevel marketing distributor having many “downliners”? What will be an ideal response? ANSWER Answer: Having many “downliners,” or people selling for a distributor, means that the compensation is likely to be significant. Explanation: In multilevel marketing, distributors sell products both on their own and by recruiting […]
QUESTION Which of the following, if true, most weakens the argument for continuing direct mail marketing? A) Riverdale will have to use highly selective mailing lists to ensure that its messages reach the target audience. B) Some analysts predict a decline in the use of traditional forms of direct mail in coming years. C) Competitors […]
QUESTION If your company had many crates of fresh apples to be held briefly in storage before delivery to a dozen retail stores, would you choose a storage warehouse or a distribution center? Why? What will be an ideal response? ANSWER Answer: To store crates of apples briefly before delivery to a dozen individual […]
QUESTION What is the difference between a press release and a press conference? What will be an ideal response? ANSWER Answer: A press release is a brief statement written in the form of a news story or a video program that is released to the mass media to try to get favorable publicity for […]
QUESTION How does sales promotion differ from advertising? What will be an ideal response? ANSWER Answer: Sales promotion focuses on short-term marketing incentives to stimulate either dealer interest or consumer buying, whereas advertising is paid nonpersonal communication by an identified sponsor using various media to inform an audience about a product. Explanation: Although they’re […]
QUESTION What differentiates the trial close from the actual close? What will be an ideal response? ANSWER Answer: The trial close is a question or statement that tests the prospect’s willingness to buy. The actual close, on the other hand, concludes the presentation by asking the prospect to purchase the product. Explanation: The trial […]
QUESTION When is personal selling appropriate, and when is it not appropriate? What will be an ideal response? ANSWER Answer: Personal selling is very expensive and, therefore, is only really appropriate when the product is somewhat expensive, somewhat complex, and aimed at few customers located close together. Less expensive, more common products that are […]
QUESTION Why do you think many companies rely on intermediaries? What will be an ideal response? ANSWER Answer: Intermediaries are important to many companies because they are the people or firms that move products between producer and customer. Without these intermediaries, many companies would be unable to get their products to the end users. […]
QUESTION Give one example of how a wholesaler acts as an intermediary. What will be an ideal response? ANSWER Answer: Makers of breakfast cereal, such as Kellogg’s, sell products to wholesalers, who in turn sell them to grocery stores, such as Whole Foods, who in turn sell them to customers. In this scenario, the […]
QUESTION Which players are involved in a typical three-intermediary distribution channel, and how does the process work? What will be an ideal response? ANSWER Answer: A typical three-intermediary distribution channel consists of a producer that sells to an agent/broker, that in turn sells to a wholesaler, that in turn sells to a retailer, that […]
