Question

For which of the following individuals is prospecting less important to last long in business?

		A stockbroker
		A real estate agent
		A market leader's sales representative
		A partner in an upcoming accounting firm

Which of the following statements is true of the all-you-can-afford approach to deciding advertising budget?

		The advertising budget is established as a predetermined share of profits or financial resources.
		The advertising goals are formulated and tasks are defined to accomplish these goals.
		The advertising budget is argued for and presented on the basis of research find­ings.
		The basic philosophy underlying this approach is that advertising is defensive.

The management of Neptune Services Inc. is analyzing the different types of incentives it could offer its sales force for better productive outcomes and for the expansion of the company at large. It therefore decides to introduce fringe benefits and education allowances as part of its incentive plan. These two measures are most likely to result in:

		full-line balanced selling and an increase in customer turnover.
		improved service of existing customers and large average orders.
		a reduction in selling costs and an increase in the number of sales calls.
		improved market penetration and low sales volume.

Which of the following is an advantage of using radio as an advertising medium?

		It provides local coverage and is flexible.
		It faces no competition from competing advertisements.
		It appeals to the senses and provides a combination of sight, sound, and motion.
		It gains more attention from an audience than television

Answer 1

1. Prospecting means to look for potential customers, i.e.. prospects and creating a database of these prospects. It is usually the first step in selling.

• A stockbroker: is the person who deals with buying and selling of stocks, securities and other financial instruments for his/her clients for a commission. In order to last long a stockbroker has to do prospecting so as to increase his/her client base.
• A real estate agent: is the person who deals with buying and selling of land, buildings and properties on behalf of clients for a commission. Even prospecting is very important for a real estate agent to increase his/her client base.
• A market leaders’ sales representative: sales first step is to make an extensive list of prospects its in their job description, so prospecting is very important for them too. though the product is doing well still sales Representative has to increase the client base.
• A partner in an upcoming accounting firm: here a partner may not need to prospect clients for the accounting firm so it is less important to last long in business

2. All-you-can-afford method: this approach is to set the marketing budget as per what an Organization can afford at that point of time. And when it comes to deciding advertising budget lets analyze each statement

• The advertising budget is never established as a predetermined share of profits or financial resources, so it is false.
• The advertising goals are usually formulated based on the paying capacity and tasks are defined to accomplish these goals, so it is true as per all-you-can-afford approach.
• The advertising budget may or may not be argued but is based on research findings so it is true
• As per the approach it is not essential for advertising to be defensive so this is false.

3. As the management of Neptune Services Inc is planning to offer fringe benefits and educational allowance as part of incentive to its sales force the two measures likely to happen are improved service of existing customers and large average orders as they say sales force are the front line people who are in direct contact with customers, these incentives makes them feel happy about their job so they make customers happy by providing excellent service and can be a reason for large average orders too. But it can never lead to customer turnover, reduction in selling costs, low sales volume. Increase of sales calls, improved market penetration are possibilities.

4. an advantage of using radio as an advertising medium is that it provides local coverage and is flexible. Radio can be used to target specific geographic areas as per the requirement. But it faces competition, though catchy and makes advertisement memorable is not appealing to all senses like sight and motion, and these days television gains more attention than radio