Augustus, sales manager for a pharmaceutical sales company, sees that his team's sales numbers for the first quarter are well below the goal. He decides to hold a mandatory training session with the entire team, as well as individual meetings with each team member, in an attempt to increase the team's sales numbers. This is an example of:
A) leading and motivating.
B) planning.
C) organizing.
D) controlling.
E) all of the above.
Question 2 - At a local frozen yogurt shop, customers can present a card to be punched at the time of each purchase. Once they have made 10 purchases, they can get a free small frozen yogurt. What type of sales promotion does this represent?
A) Premiums
B) Coupons
C) Rebates
D) Frequent-user incentives
E) Samples
Question 3 - Bernard and Hope Freeman purchased a Jump and Play franchise in 2013. The indoor inflatable park featured seven inflatables, three party rooms, and a small concession area. There were 25 Jump and Play franchises across the United States, which were popular venues for birthdays and team parties. Early on, the Freeman's Jump and Play location performed well, and party rooms were booked nearly every weekend. However, in 2015 the Freemans were forced to close their Jump and Play franchise. The Freemans' insurance costs were more expensive than they anticipated, and competition from other inflatable parks took a toll on the Freemans' profits. This is an example of how:
A) expanding a franchise too quickly can cause failure.
B) a franchise gives owners too much control over the business.
C) start-ups have a higher success rate than franchises.
D) owning a franchise does not guarantee success.
E) the franchise dictates all aspects of the business.
Question 4 - All of the following are examples of sales promotion except:
A) rebate.
B) sample.
C) premium.
D) point-of-purchase display.
E) direct-response advertising.
Question 5 - The Martin family owns two Dunkin' Donuts locations in Ohio. The franchisor has announced that Dunkin' Donuts will begin offering blended shakes in time for the busy summer season. This new menu offering requires franchisees like the Martin family to purchase expensive new equipment in order to make the blended shakes. This is an example of which trade-off of owning a franchise?
A) The franchisor must pay the franchise fee to get started.
B) The franchisor must pay the cost of building the franchise location.
C) The franchise agreement dictates every aspect of the business.
D) The franchisee must pay a certain percentage of profits to the franchisor.
E) The franchisor provides marketing materials for the new menu item.
Question 6 - A retailer places a life-size cardboard cutout of a well-tanned beauty pageant contestant in a bikini, holding a can of suntan lotion, at the end of the aisle where sun-care products can be purchased. What type of sales promotion is this?
A) Coupons
B) Samples
C) Premiums
D) Point-of purchase display
E) Sweepstakes
Question 7 - Morgan is struggling with the new clothing store she started from scratch. Had she purchased the clothing store franchise she had considered, the advantage would have been that:
A) she would get to keep more of the profits.
B) she would have greater control over which products to offer.
C) she would have greater control over management and operational policies.
D) she would have the use of an advertised brand and marketing support.
E) she would have greater control over the design of her store.
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