Marketing Applications Final Exam Study Guide
What do fluctuations in interest rates have an impact on?
Credit
What is a good source for new product ideas?
Customer complaints
Which is a source a business often consider when generating product ideas? Customer complaints Design costs Test results Promotional plans
Customer complaints
What is the common goal of all channel members?
Customer satisfaction
customer-centric strategy -
Customer-centric strategy is a business strategy that's based on putting your customer first and at the core of your business in order to provide a positive experience and build long-term relationships.
Technological advances can help companies provide more customer service with fewer employees, but why must the companies be careful? Technology cannot provide 24-7 service. Computers and telephones break down regularly. Current employees may go on strike. Customers may feel they are losing the human touch
Customers may feel they are losing the human touch.
Which is an example of a manager being unethical when communicating with employees? Deliberately providing insufficient information Explaining that some information is confidential Sending information in simple chart form Deliberately limiting the distribution of classified information
Deliberately providing insufficient information
environmental monitoring
Describes the processes and activities that need to to take place to characterize and monitor the quality of the environment.
Which of the following is an example of an expenditure for which a state/local government uses tax revenue: Church services Personal loans National defense
Education
Liabilities
Any money that the business owes.
gross profit
Determined by subtracting the cost of goods sold from revenue. The total profit made before all other remaining expenses have been deducted.
New jobs are created as a result of what?
Discoveries
CRM is very useful for targeting
Groups of customers
What are the building blocks of a budget?
Income and expenses
What helps you plan strategies with more precision?
Marketing Plans
A person's lifestyle is made up of their interests and activities
Examples of a lifestyle include a vegan lifestyle, Christian lifestyle, or a college lifestyle.
Which of the following is a result that is likely to occur when companies take positive actions: Shutting down the competition High employee turnover Excellent business reputation Record profits
Excellent business reputation
What factors are opportunities and threats?
External Factors
The makeup of your target market is what kind of factor that can affect your promotional plan?
External factor
What is an example of a business coordinating promotional efforts?
Sending out samples of products
What should a salesperson do if the customer has cost objections?
The salesperson should highlight the value of a product
What does confidentiality mean
The state of keeping or being kept secret or private.
Is marital status a social factor that often influences buying behavior? T/F
True
Customers are more likely to spend a lot of time evaluating several options before buying a product during which situation? When the product is perishable When brand insistence is a factor When the need is immediate When the product is expensive
When the product is expensive
Copy
a thing made to be similar or identical to another.
Your favorite NBA player endorses Gatorade, so you buy it. This is an example of a(n) membership group. opinion leader. psychological influence. reference group.
opinion leader.
Stockholders monitor a business's income statement because they are the business's: employees owners managers. customers.
owners
Which of the following is an example of a customer relationship management initiative: A "frequent-shopper" program New accounting software Expansion of the product-development budget A new bonus system for the sales staff
A "frequent-shopper" program
What is an example of persuasive writing
A "request for ideas"
How are corporate budgets like trees?
A budget is divided into categories and subcategories like tree branches.
If a business lowers the price of a product for the purpose of taking business away from its competitors, which action is often the result? A reduction in staff A decrease in cost An increase in profit A gain in market share
A gain in market share
What is a target market?
A particular group of consumers at which a product or service is aimed
Strategies
A plan of action to achieve something of overall aim.
What is a product demonstration?
A product demonstration is a promotion where a product is demonstrated to potential customers. The goal of such a demonstration is to introduce customers to the product in hopes of getting them to purchase that item
Depreciation
A reduction in the value of an asset with the passage of time.
income statement
A summary of a business's income and expenses over a period of time.
What should promotional plans have?
A timetable for completion
When coming up with product ideas what is it a good idea to have?
A variety of perspectives
What is a way to indicate the condition of the economy?
Absence of inflation or deflation
operating expenses
Addresses all other expenses associated with the business including employee wages, utilities, administrative costs, advertising, interest paid on outstanding loans, insurance, and mortgage.
retained earning
Amount of net income left after paying out dividends to shareholders.
Tactics
An action planned to achieve a specific result.
What is an Executive Summary?
An executive summary provides an overview of a larger document or research and is usually the first thing your reader will see. ... Executive summaries will analyze a problem, drawn conclusions, and recommend a course of action in a complete but brief synopsis.
Assets
An item of value
What are assets?
Any valuable items a business owns are an asset.
Items of value are listed under which of the following components of the balance sheet: Owners' equity Notes Assets Liabilities
Assets
Sandy and members of her team took turns randomly sketching and doodling on a piece of paper. Now, they are studying the doodles, trying to identify the shapes, and determining how the shapes can be related to a particular product opportunity. Sandy and her team are using which creative-thinking technique? Braindrawing Synectics Free association Starbursting
Braindrawing
What estimate how much you will spend so your business can place purchases
Budgets
What affects place decisions?
Business loyalty
What is BPM (Business Process Management)?
Business process management (BPM) is a discipline involving any combination of modeling, automation, execution, control, measurement and optimization of business activity flows, in support of enterprise goals, spanning systems, employees, customers and partners within and beyond the enterprise boundaries.
How can businesses coordinate promotional activities
Businesses can coordinate promotional activities by making sure that salespeople are up to date on what is currently being promoted.
What is a proportional tax?
Businesses pay the same tax rate no matter the money they make.
Customer service
Company provided assistance and advice for those who buy or use it's products or services.
What do fact-finder customers tend to do
Comparison shop
What are strong leaders able to demand in a distribution channel?
Cooperation
To maintain positive relationships, all distribution channel members must perform which activity? Coordinate efforts Limit ongoing communication Have equal power Develop competing goals
Coordinate efforts
What must channels do?
Coordinate efforts
Hidden features depend on the salesperson being able to do what?
Give a good explanation
A business that effectively coordinates channel management with marketing activities is more likely to provide which component? Flexible credit terms Good customer service Attractive product displays Free delivery
Good customer service
What is another name for total profit?
Gross Profit
GDP symbol I
Gross private domestic investment
By comparing the categories in an income statement, a business will be able to determine which situation? If it is paying too little for supplies If it is earning too much income If it is acquiring goods for too low a price If it is spending too much on expenses
If it is spending too much on expenses
cost of goods sold-
Includes all direct costs to obtain and/or produce the goods or services that a business sells. Includes raw materials, packaging, labor, unsold items, returned items, manufacturing overhead, shipping, supplies, and stolen items.
indirect distribution-
Indirect distribution is when the manufacturer decides to use channel members to sell its product.
When conducting an external environmental analysis, businesses often focus on which factor or factors? Previous demand Financial costs Marketing goals Industry growth
Industry Growth
One reason why a business compares its income statement figures with those of competitors is to find out how it is doing in relation to which factors? Economic forecasts Research projections Industry standards
Industry standards
What can businesses look at to forecast sales?
Industry trends and Financial information
Why is it often considered unethical to gossip? Information may be false May not be courteous Takes time away from work Is critical of other people
Information may be false
What is an important part of sales training that should be ongoing?
Information on a competitor's product
What should be kept confidential?
Internal business information
What are internal factors that affect sales forecasts? What about external?
Internal factors that influence a sales forecast include labor, length of time to complete sales, inventory, changes in promotion, changes in price, changes in distribution, and new product lines. External factors that influence a sales forecast include economic conditions, political conditions, product life cycle, competition, season or weather, changing consumer demands and spending patterns, and population changes.
What happens when salespeople are self-confident?
It reassures the customer
What does Reciprocity refer to?
It refers to interrelated business transactions and the exchanging of resources between departments for mutual benefit.
How should an executive summary have it's sections?
It should have its sections put in the same order as the report that it is on top of (much like a table of Contents)
What is a benefit of probing questions?
It will lessen the time to make a sale
Positive and negative results can often be directly related to which factors about a company? Its locations Its taxes Is customers Its actions
Its actions
Which is confidential information that would be unethical for an employee to provide to others without permission from the business? List of employees who will be promoted Dates of an upcoming special sale Posting of available positions Well-publicized expansion plans
List of employees who will be promoted
Depreciation
Loss of value
What is depreciation?
Loss of value
What is the most important use of financial information?
Managerial decision making
To get an accurate idea of whether to increase production, managers should do what?
Managers should prepare a graph that illustrates marginal cost and marginal revenue
Which is a social factor that often influences buying behavior? Marital status Individual beliefs Basic needs Personal attitude
Marital status
Businesses follow the law of diminishing returns to combine the right amount of variable resources to achieve production levels that perform which activity?
Maximize profits
Which is a situation for a business to plan its budget carefully? Money is limited. Supplies may be scarce. Time is limited. Regulations are complex.
Money is limited.
What are accounts receivable?
Money owed to a company.
GDP symbol F
Net exports of goods and services
One of the main reasons for developing a marketing plan is to identify the strategies necessary to achieve which component or components of marketing? Functions Objectives Share Mix
Objectives
What kind of probing questions help determine what a customer is thinking
Opinion gathering
The purpose of the marketing planning process is to balance the internal strengths and weaknesses of a company with which external factors? Goals and objectives Products and resources Opportunities and threats Costs and expenses
Opportunities and threats
GDP symbol C
Personal consumption expenditures
What is closely related to your product choice?
Price decisions
What type of information do businesses include in their marketing plans? Billing methods Payroll systems Accounting procedures Pricing strategies
Pricing strategies
Which department would a marketing manager contact to make sure that enough products are on hand for an upcoming promotion? Purchasing Shipping Accounting Customer Service
Purchasing
qualitative forecasting-
Qualitative forecasting is forecasting based on expert opinion and personal experience.
quantitative forecasting-
Quantitative forecasting is forecasting based on the analysis of hard facts or numeric data.
What should an employee do if a coworker is spreading malicious gossip about another worker? Refuse to pass on the information Deny hearing the rumor Ask for supporting evidence Check out the accuracy of the message
Refuse to pass on the information
Which is a function of some taxes? Control employee compensation Decrease employee liability Limit business profit Regulate business activity
Regulate business activity
What must focus group discussions be?
Relevant
Which is a type of a persuasive message inside a business? Requests for ideas Requests for action Presentations of ideas Request for claims or adjustments
Requests for ideas
What should executive summaries have in them?
Research reports
What must survey questions be?
Simple and should not have jargon (hard, complex words)
Beliefs
Something that you hold to be real or true.
What is another name for net income?
The bottom line
What can a balance sheet tell you about a business?
The business's current financial situation
Goals
The desired result of a company or person's effort.
What will the readers notice first?
The illustration
What is productivity? Should a business increase or decrease it?
The measure of how efficient your production inputs and outputs are. A business should try to increase their productivity.
economic development
The process by which the economic well-being and quality of life of a region or local community are improved according to targeted goals and objectives.
Horizontal Conflict-
This type of conflict occurs between channel members at the same level.
touch points -
Touch points are interactions between businesses and customers that occur during the customer's journey. These moments significantly influence customer experience as well as brand perception. By outlining key touch points on a map, businesses can capitalize on timely opportunities to optimize their customer journey.
What is a common practice in CRM?
Training employees
Which of the following is a common customer relationship management practice: Training employees Developing new products Creating a marketing budget Managing the sales staff
Training employees
When you can identify a customer's want then a real market opportunity occurs! True False
True
A business that obtains private information about a customer's financial status and makes it public is behaving in which manner? Unethical Immoral Illegal Impersonal
Unethical
Making someone's private information public is
Unethical
Selling customer information without permission is
Unethical
An important aspect of using technology in customer relationship management involves which activity? Updating customer information in the computer database Allowing employees to have complete access to customer information Posting the information of customers on a website Providing customers with excessive product information
Updating customer information in the computer database
net worth
What is left in a business after liabilities have been subtracted from assets.
shareholders' equity
What is left in a business after liabilities have been subtracted from assets.
What is equity?
Whatever value is left in a business after liabilities have been subtracted from assets. For public companies traded on the stock market this value is called stockholders equity.
How does good customer service happen?
When channel activities are coordinated with marketing activities
When is a good time for businesses to expand their operations?
When inflation levels are low
white space
White space is where unmet and unarticulated needs are uncovered to create innovation opportunities.
Open ended probes give you responses that go beyond
Yes and No
Perception
Your perception of the world based on the inputs you receive.
What does a balance sheet contain?
assets, liabilities, and equity
In budgeting, utility bills, salaries, advertising, equipment purchases, taxes, and loans are examples of business expense. business income. financial goals. spending controls.
business expense.
A business improves its technology so it can better meet customer wants and needs. This results from a business activity known as business process management. employee training. organizational structuring. amplified improvement.
business process management.
When a business communicates customer-centric values and ideals to its employees on a consistent basis, it is developing its corporate culture. organizational structure. technology. trademarks.
corporate culture.
What is one reason why the overall unemployment rate understates the actual employment rate?
discouraged workers are not included
An economy during a mildly inflationary period will experience what?
increased growth
A person's interests and activities influence her/his buying behavior. This is referred to as social influence. personality. lifestyle. subculture.
lifestyle.
Deducting expenses helps businesses save on taxes by increasing owners' salaries. increasing profits. reducing payroll costs. lowering taxable income.
lowering taxable income.
The "bottom line" in a business's income statement indicates total costs. net income. net worth. gross revenue.
net income.
sales forecast-
sales forecast-
If a customer has a fact finder personality what should the salesperson talk about?
sales people should talk about product care techniques
Chad is very happy with the haircut he received at a new barbershop. Chad is demonstrating customer: attitude. satisfaction. loyalty. behavior.
satisfaction
A marketing plan is designed to attract target customers through a set of: workshops. strategies. mergers and acquisitions. rules.
strategies
If transfer payments were counted in calculating gross domestic product what would be the result?
the GDP would appear to be greater than it actually is
The main difference between customer relationship management and customer experience management is that CRM focuses on the business itself. customers. product development. investors.
the business itself.
Lateral thinking
the solving of problems by an indirect and creative approach, typically through viewing the problem in a new and unusual light.
Layout
the way in which the parts of something are arranged or laid out.
Sketching and doodling
to scribble, sketch, or make designs on paper often while thinking about something else.
A business's managers expected to reduce expenses by four percent last quarter. The financial information, however, shows that expenses were actually reduced by two percent. variance profitability. a trend. acquisition.
variance
The government takes the following actions in the attempt to fight inflation:
● Restricting the amount of money in circulation ● Spending less on goods and services ● Raising the prime interest rate ● Increasing the discount rate for banks ● Raising taxes
Ways to increase GDP
● Rise in consumer spending ● Rise in government spending ● Rise in exports
How is a budget like a tree? A budget is divided into categories and subcategories similar to tree branches. A budget is supported by strong sales like a tree is supported by strong roots. A budget requires care and nurturing, like a young tree. A budget changes from season to season.
A budget is divided into categories and subcategories similar to tree branches.
Why should a businessperson understand business cycles?
A businessperson should understand the business cycles so they can make plans to level out for the cycles
channel member-
A channel member is one part of the organized network of institutions which, in combination, perform all the functions required to link producers with end users.
Which of the following is an example of corporate responsibility: A company pays its taxes on time. A company provides professional development for employees. A company uses recycled materials in its products. A company expands its facilities.
A company uses recycled materials in its products.
continuous improvement -
A continual improvement process is an ongoing effort to improve products, services, or processes. These efforts can seek "incremental" improvement over time or "breakthrough" improvement all at once.
What are direct controls in economics?
A control that is directly imposed on the manufacturing, pricing, or distribution of a product or service.
What are deductions?
A deduction that lowers a business's or person's taxable income.
Attitude
A good or bad feeling about something that forms over time and is unlikely to change.
What does CRM require even though it involves technology?
A human touch
Which is an example of an internal change that could affect a sales forecast? A new product line is to be offered by the business. A direct competitor is planning a new promotional campaign. The birth rate increased following a war. The economy is struggling with a major drop in stock market prices.
A new product line is to be offered by the business.
What are "non-response errors"?
A non response error is when a survey fails to get a response to one or all of the questions
business opportunity
A sale or lease of any product, service, or equipment that will enable the purchaser to begin a business.
business opportunity-
A sale or lease of any product, service, or equipment that will enable the purchaser to begin a business.
What is a Situation Analysis
A set of methods marketers use to analyze a company's internal and external environment to better understand the business's capabilities, customers, and environment.
economic change
A shift in the structure of an economic system.
economic change-
A shift in the structure of an economic system.
Cues
A signal used to keep the elements of a production of a production running smoothly.
balance sheet-
A snapshot of a company's finances. Shows how much money a company has, how much it owes, and how much it belongs to owners or stockholders.
Why should accounting be consistent?
Accounting should be consistent to make sure the reports are accurate and depict comparable information. It should also be consistent to prevent manipulation.
Which of the following is an example of business-related financial information: Sales receipt from purchasing a new mattress School-loan document Pay stub Accounts receivable record
Accounts receivable record
An energy company has misrepresented its financial status on its latest accounting reports. This is an example of which negative action? Responding inappropriately to crises Failing to provide what customers want Not keeping promises Acting unethically
Acting unethically
Morgan Health Supply Company wants to expand its product line this year. It uses its budget surplus to invest in new products rather than to remodel its offices. This is an example of which positive action? Provide excellent customer service Align strategies and activities with goals Utilize touch points to reinforce company image Demonstrate corporate responsibility
Align strategies and activities with goals
What is an important aspect of a customer-centric business? Aligning business activities with customer needs Reducing the number of touch points with customers Limiting decision making for employees Being satisfied with the status quo
Aligning business activities with customer needs
Endorsements can strengthen the sales message of an ad.
An endorsement is a person or company giving public approval or support to someone or something.
Illustration
An illustration is a decoration, interpretation or visual explanation of a text, concept or process, designed for integration in published media, such as posters, flyers, magazines, books, teaching materials, animations, video games and films.
Intermediaries
An intermediary is a third party that offers intermediation services between two parties, which involves conveying messages between principals in a dispute, preventing direct contact and potential escalation of the issue.
What is an opinion leader?
An opinion leader is a well known person or organization that can change the public's opinion on a certain topic.
Touchpoint
Any opportunity a company has to connect with its customers and potential customers.
business threat
Anything that could damage your business, venture, or product.
business threat-
Anything that could damage your business, venture, or product.
accounting equation
Assets = Liabilities + Owners' Equity
What are the categories that a business uses to summarize information on their balance sheets? Equity, budget, and cash Assets, liabilities, and equity Cash, budget, and credit Liabilities, equipment, and sales
Assets, liabilities, and equity
One reason a channel of distribution that has strong leadership is often able to avoid conflict within the channel is because the leader can perform which action? Authorize the demand for cooperation Regulate change Provide training Develop friendships
Authorize the demand for cooperation
One reason why it is important for a business to coordinate the distribution and promotion of a new product is to make sure that the product has which characteristic? Designed to appeal to a target market Available when customers want it Attractive to all customers Designed to appeal to a target market
Available when customers want it
The financial component of a marketing plan helps a business to compare the projected costs of implementing the plan with which expected factors? Benefits Expenses Losses Strategies
Benefits
business process management (BPM) -
Business process management (BPM) is a discipline involving any combination of modeling, automation, execution, control, measurement and optimization of business activity flows, in support of enterprise goals, spanning systems, employees, customers and partners within and beyond the enterprise boundaries.
Complex buying behavior is most likely involved when the customer is purchasing which items? Socks Meals Gasoline Cars
Cars
Six Thinking Hats is a creative-thinking technique that stimulates ideal generation through which activity? Categorizing information Assigning each group member a different job Playing the devil's advocate Providing positive feedback
Categorizing information
What might result if a manufacturer wants prompt payment for goods, but the intermediary wants to defer payment for as long as possible? Channel conflict Limited variety Increased risk Illegal activity
Channel conflict
What is channel conflict?
Channel conflict occurs when manufacturers disintermediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers through general marketing methods and/or over the Internet.
channel length-
Channel length is the total number of channel members.
What is an example of a buying decision?
Choosing a brand or style
What should executive summaries be?
Clear concise and error free
business environment
Combination of internal and external factors and forces that affect a firm' ability to build and maintain successful customer relationships.
business environment-
Combination of internal and external factors and forces that affect a firm' ability to build and maintain successful customer relationships.
Sales training should be an ongoing process. Which information would most likely be released on a RSS feed in electronic sales training? Comparison with the products of competitors PDF of an annual report Notification about a job promotion Memorandum detailing how to avoid responding to questions about a public-relations crisis
Comparison with the products of competitors
During its 20 years of operation, the Normandy Company has made very few changes to its accounting methods and system. As a result, its financial information is likely to be in which condition? Reliable Conservative Comparable Consistent
Consistent
What is corporate culture?
Corporate culture refers to the values and ideals that an organization encourages among its employees.
What is corporate responsibility
Corporate responsibility is the way the company takes responsibility for its actions and their impact on employees, stakeholders and communities. To better society.
Which often influences the buying behavior of consumers in different parts of the world? Culture Aptitudes Talents Language
Culture
How does culture influence buying behavior of consumers in different parts of the world?
Culture influences buying behavior of consumers in different parts of the world because it is so influential on how people perceive the world around them, their place in it, and how they make decisions, it tends to play a role in determining how and why we consume goods and services.
What is CEM? (customer experience management)
Customer experience management includes the strategies, processes, and policies a business uses to meet or exceed customer expectations and to provide customers with outstanding experiences at every touch point. Another main goal of CEM is creating customer advocacy—word-of-mouth promotion and referrals to other potential customers.
customer experience management (CEM) -
Customer experience management is the collection of processes a company uses to track, oversee and organize every interaction between a customer and the organization throughout the customer lifecycle.
What does CRM need to be effective?
Customer information that should be updated regularly
What is customer loyalty? What is customer satisfaction?
Customer loyalty is how loyal your customers are to your brand or business. Customer satisfaction is how happy or satisfied your customers are after using your service or good.
customer relationship management (CRM) -
Customer relationship management is one of many different approaches that allow a company to manage and analyze its own interactions with its past, current and potential customers.
How can unique aspects of a product influence expected channels in which it will be sold? Customers associate unique aspects of a product with its distribution to a few or to many locations. Specific distribution channels can only be used for specific unique aspects of a product. Customers refuse to buy a product if its unique aspects are sold through unexpected channels. Unique aspects of products specify which channels the product must be sold.
Customers associate unique aspects of a product with its distribution to a few or to many locations.
What does defensive behavior look like in a sales conversation?
Defensive buying behavior would include trying to continuously defend a product after the customer already does not want it, or extensively answering customers questions about the product or store
environmental monitoring-
Describes the processes and activities that need to to take place to characterize and monitor the quality of the environment.
The government decides to pass a new law requiring certain standards of air cleanliness be met. They will levy a tax on the production of automobiles that generate gas emissions above a certain limit. However, they also will provide tax incentives to automobile manufacturers for research and development of new cars with lower gas emissions. This is an example of which activity or activities? Hidden costs Transfer payments Direct controls Rent seeking
Direct controls
Direct Distribution
Direct distribution is when the manufacturer decides to eliminate the use of middlemen in the distribution channel and sell the product directly to the final consumer.
Which is an example of current liabilities that a business should include in its balance sheet? Employees' salaries Mortgage loans Owner's equity Accounts receivable
Employees' salaries
Customer privacy policies are a good why to show customers that a business is
Ethical
What are external factors that affect a promotional plan?
External factors that affect a promotional plan include technology, competitors and the economy
To convince someone to use quantitative sales forecasting, which factor should be stressed? Factual basis Ease with which findings are understood Variety of opinions Minimal cost
Factual basis
What is a fixed asset?
Fixed assets are not as liquid as current assets. They usually cannot be converted into cash within a year.
By regularly reviewing its budget, a business is able to determine if it is performing which activity? Following their financial plans Offering loans to employees Paying interest to customers Receiving discounts from vendors
Following their financial plans
A person who quits one job and spends a short amount of time out of work while looking for a new position is experiencing which type of unemployment?
Frictional
GDP symbol G
Government purchases of goods and services
Which category of an income statement indicates total profit? Net profit Liabilities Cash flow Gross profit
Gross profit
When customers have low involvement with a product and there is little difference among brands, what type of buying behavior are they exhibiting? Complex Basic Variety Habitual
Habitual
What are the elements of an advertisement?
Headline, Illustration, Copy, and Signature
One action that an ethical business can take to help build the long-term trust and loyalty of its customers is to perform which activity? Implement a comprehensive customer privacy policy. Sell its customer list to third parties without permission. Maintain detailed information about transactions. Send daily opt-in e-mail messages to customers.
Implement a comprehensive customer privacy policy.
What has contributed to the increased use of electronic sales presentations?
Improved internet speeds
A manager is most likely to use financial information for which situation? For researching the demographics of a new target market In establishing lines of authority within an organization For calculating the number of on-the-job injuries in the past year In determining resources available to fund a new project
In determining resources available to fund a new project
What are the main components of a budget? Income and expense Cash flow and net worth Assets and liabilities Profit and loss
Income and expense
Which of the following is the basic calculation used to analyze an income statement: Sales plus operating costs Assets minus liabilities Revenue plus sales Income minus expenses
Income minus expenses
If sales forecasts increase then what should happen to the production?
Increase
A business estimates that its cash flow from sales during the upcoming season will be higher than it was for the same period last year. The estimate is possible based on this financial information and which other sources? Realistic goals Potential costs Future earnings Industry trends
Industry trends
What kind of probing questions help determine facts about customers?
Information-gathering
What are internal factors that affect a promotional plan?
Internal factors that affect a promotional plan include price, human resources and firm culture
How long does the ad copy have to be?
It can be any length, it's up to the advertiser.
How odes researching your competitors help you do?
It can give you insight into industry standards
What can financial information do?
It can help companies identify trends It can also help companies determine if there are available resources to pay for new projects.
Looking at customer facial expressions during sales presentations can help you determine what
It can help you determine which selling points appeal to them
What happens when you use multiple methods in marketing research?
It gives you a broader picture
How does double counting affect the GDP?
It inflates the GDP
What is CRM (customer relationship management)?
It involves technology, but it also involves strategies, processes, and most importantly, people. It combines these elements for the purpose of building, maintaining, and maximizing the long-term value of customer relationships.
What is the "six thinking hats" technique?
It is a good decision-making technique and method for group discussions and individual thinking. Combined with the parallel thinking process, this technique helps groups think more effectively. It is a means to organize thinking processes in a detailed and cohesive manner.
What is a morphological analysis?
It is a method for exploring possible solutions to a multi-dimensional, non-quantified complex problem.
Why is it imperative to clearly state your research problem?
It is imperative to clearly state your research problem because it ensures that the research is focused and relevant.
How will relating product features to benefits help customers?
It will help customers understand what product will do for them
What will observing customer actions help you do?
It will help you better identify customer personality types
Which is a characteristic of taxes? Levied by governments Applied only to tangibles Restricted to businesses Encouraged by consumers
Levied by governments
What is a negative effect of workplace gossip? Lower productivity Less conflict More collaboration Higher morale
Lower productivity
Where are Pricing strategies included?
Marketing Plans
What is Maslow's Hierarchy of Needs?
Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of human needs, often depicted as hierarchical levels within a pyramid. ... From the bottom of the hierarchy upwards, the needs are: physiological, safety, love and belonging, esteem, and self-actualization.
Which of the following words describes an ideal marketing objective: Comprehensive Broad Measurable Open-ended
Measurable
Which factor has contributed to the increased use of electronic sales presentations vs. face-to-face sales presentations? Meeting software and improved Internet access speeds Audio and video conferencing High-end telecommunication hookups and laptops Computing power and video conferencing
Meeting software and improved Internet access speeds
Which is a true statement about channel-member relationships in the supply chain? Members can often reduce conflict by focusing on the common goal of customer satisfaction. Because the producers are the channel leaders, they usually have more negotiating power. Technological advancements have made interaction among channel members unnecessary. To minimize horizontal conflict, most wholesalers in the supply chain charge slotting fees.
Members can often reduce conflict by focusing on the common goal of customer satisfaction.
accounts receivable
Money that is owed to the business.
What is necessary to innovation?
Monitoring trends
To generate innovative product ideas, a business often performs which activity? Monitors trends Evaluates traits Interprets laws Measures feedback
Monitors trends
One of the major differences between the decisions made in organizational buying and the decisions made in consumer buying is that organizational buying decisions consist of which activity? More frequently made by groups Made by members of senior management Made by influential people Always voted on by supervisors
More frequently made by groups
What is the advantage to a business of having its employees generate product ideas as a group? More participants provide a variety of perspectives. It is easier to develop and implement a product concept. Group members tend to reach consensus quickly. Screening activities can be distributed among several people.
More participants provide a variety of perspectives.
Shane is listing the attributes of a particular product and then combining these attributes in different ways to create new products. What creative-thinking technique is Shane using? Morphological analysis Attribute listing Free association Relay brainstorming
Morphological analysis
Morphological analysis
Morphological analysis is a method for exploring possible solutions to a multi-dimensional, non-quantified complex problem.
What is a characteristic of organizational buying behavior? Multiple buying influences Quick decision making Low levels of demand fluctuation Limited buyer-seller contact
Multiple buying influences
What's a characteristic of organizational buying behavior?
Multiple buying influences
What do purchasing departments deal with?
Ordering products and coordinating with channel members
What kind of buying decisions are more frequently made in groups?
Organizational buying decisions
What is necessary after you write a your persuasive message?
Organizing it
accounts payable
Outstanding bills the company needs to pay
What is a con of overselling?
Overselling interferes with buying decisions
What is the largest source of money flowing out a business?
Payroll and Benefits
What are often the largest sources of money flowing out of a business? Accounts receivable Profit and loss Payroll and benefits Goods and services
Payroll and benefits
What has more of an effect on the types of services consumers buy rather than the types of services organizations buy?
Peer pressure
Which has more effect on the types of services that consumers buy than on the types of services that organizations buy? Peer pressure Authority figure Limited availability Reasonable price
Peer pressure
What is a "print advertisement"?
Print advertising is a form of marketing that uses physically printed media to reach customers on a broad scale. Ads are printed in hard copy across different types of publications such as newspapers, magazines, brochures, or direct mail.
What kind of questions should salespeople use if they don't know the wants and needs of customers
Probing questions
What is a probing question?
Probing questions are designed to encourage deep thought about a specific topic. They are typically open-ended questions, meaning the answers are primarily subjective.
A manufacturer expects product sales to increase during the coming year. How does this information affect product production? Production should not be affected. Production should remain stable. Production should increase. Production should decrease.
Production should increase.
Salespeople should only show products that customers show what in?
Products that customers are interested in
Gary believes that the upper class should pay a higher income tax rate than the middle and lower classes. What tax structure does Gary favor? Regressive Progressive Exclusive Proportional
Progressive
What are promotional plans based off of?
Promotional plans are based off of goals and strategies outline in your marketing plan?
What taxes are public school typically funded through?
Property Taxes
Mom 'n' Pop's Bakery earned $250,000 in profits and paid $52,500 in taxes. Duchess Baking Co. earned $60 million in profits and paid $12.6 million in taxes. What tax structure is in place? Progressive Proportional Regressive Payroll
Proportional
Motives, perception, attitude, lifestyle, personality, and abilities are which factors influencing consumer behavior? Social Economic Political Psychological
Psychological
What does the Federal Reserve system do to fight inflation?
Raise interest rates
What kind of errors can happen when you are tabulating research data?
Recording errors
What should Jason avoid doing to shorten his sales cycles? Rely on other team members for product knowledge Improve the qualification process Avoid answering objections Always use the same sales presentation
Rely on other team members for product knowledge
An established business receives its primary flow of money from which source or sources? Loans Fees Sales Credit
Sales
While reviewing financial information, Troy noted that the company earned $245,956 in January, $248,122 in February, and $252,878 in March. Which most likely summarizes the financial situation? Accounts receivable exceed accounts payable. Capital assets are depreciating at a slower rate. Sales are steadily increasing. Cash flow continues to be tight.
Sales are steadily increasing.
Which type of customer relationship management software would be most appropriate for a company that is looking for a more efficient way to track leads, prospects, and customers? Sales force automation technology Campaign management software Personalization technology Matching engine technology
Sales force automation technology
Which employee is a good source for obtaining new product ideas because he or she is in contact with customers on an ongoing basis? Sales representative Graphic designer Tax auditor Office manager
Sales representative
Which of the following components serves as a snapshot of the business's current marketing situation: Situation analysis Marketing objectives Desired target market Marketing strategies and programs
Situation analysis
What is a market opportunity?
Situation in which a product, service, etc. that is potentially wanted or needed by consumers is identified by a business as not being supplied by rival companies.-What is the "six thinking hats" technique?
Be able to identify situational influences on buying behavior
Situational influences are temporary conditions that affect how buyers behave. Ex: Birthday party
How is CEM different from CRM?
Some businesses view CEM as a replacement for customer relationship management, while others view it as part of an overall CRM plan, and the goals of CEM and CRM are similar. The main difference between CEM and traditional CRM, then, is in perspective. CRM tends to look inward. Its focus is on the business itself—its goals, its strategies, its internal processes, etc. CRM asks, "How can we track and organize customer information and use it to our best advantage?" CEM, on the other hand, looks outward.
What are examples of business expenses?
Some examples of business expenses include payroll, utilities, rent, insurance, a company car, and taxes.
Variety seeking buying behavior is when the consumer does not have a lot of involvement with the purchase and there tends to be more brand switching. There is very little brand loyalty.
Some of the main disadvantages of technology oriented customer service is that there may be a lacking personal touch. A robot sounds less human than a normal person. Another disadvantage is that it may take some time for your complaint to be heard. With some businesses it can take days to receive another email from the customer service agent. Lastly, you cannot share sensitive information with technology oriented customer service. With technology there is always a chance that your information can be stolen and used for malicious purposes.
Expectations
Something you anticipate to happen based on your familiarity or past experiences.
A business uses its budget to estimate how it will perform which activity? Spend their money File their taxes Calculate their assets Depreciate their assets
Spend their money
Which of the following is a situational influence on buying behavior: Spending more than you normally would on a necklace because it's a gift Buying kosher food since it adheres to your religious beliefs Preferring a different style of jeans than you did when you were younger Choosing a certain make and model of car because it's what your dad has
Spending more than you normally would on a necklace because it's a gift
What do taxes provide?
Stability to the economy especially during turbulent times
During economic fluctuations, taxes serve which purpose for the economy? Reducing Destroying Stabilizing Expanding
Stabilizing
What should executive summaries start with?
Statement of purpose
Why should successful businesses align strategies and activities with their overall goals?
Successful businesses should align strategies and activities with their overall goals because the strategies and activities can help them achieve their goals and it can help achieve more efficiency in the business.
What is "copy"?
The copy is the text of the advertisement. It contains the principal sales message.
The reason why a business prepares a balance sheet is to determine which factor? The current financial situation The future sales goal The average cash flow The estimated annual income
The current financial situation
What does variance mean in accounting?
The difference between a budgeted, planned , or standard cost and the actual amount sold.
Goodwill
The difference between the fair market value of a company's assets and the market price of asking price of the overall company.
What is a final consumer?
The final consumer is the last point of the distribution channel. They end up using the product.
What is brand patronage?
The financial support or business provided to a store, hotel, or the like, by customers, clients, or paying guests.
What is the goal of an ad?
The goal of the ad is to cause the customer to want to read your message.
Headline
The headline or heading is the text indicating the nature of the article below it.
net income
The money the company actually makes after all expenses have been deducted and taxes have been paid.
What is a regressive tax?
The more money you make the less amount of taxes you pay.
What is a progressive tax?
The more money you make the more taxes you pay.
What should executive summaries only highlight?
The most important points from reports?
Which is a benefit of customer relationship management? The opportunity to create targeted marketing campaigns The ability to double profits A work force that does not commit errors A decrease in customer advocacy
The opportunity to create targeted marketing campaigns
Amortization
The process of gradually writing of the initial cost of an asset. (lowering value)
technological change
The process of invention, innovation, and diffusion of technology or processes.
technological change-
The process of invention, innovation, and diffusion of technology or processes.
environmental scanning-
The process of tracking trends and occurrences in an organization's internal and external environment.
Should a salesperson show an unlimited amount of items to a customers or a limited amount?
The sales person should show a limited number of items to a customer
What is the "signature" of an advertisement?
The signature of an advertisement is the advertiser's name or logo
An international soft-drink company that wants to add bottled spring water to its product mix has determined that there are four major brands that hold the majority of the market share for that product. The strengths and weaknesses of each potential competitor have been examined. This is an example of what factor? The situation analysis The action plan The marketing strategy The purpose and mission
The situation analysis
How does a marketing plan affect the way the marketing team plans its strategies? The team has more difficulty planning strategies. The team can plan strategies more quickly. The team can plan strategies up to 10 years in advance. The team can plan strategies with more precision.
The team can plan strategies with more precision.
Revenue
The total amount of money earned by a business.
total revenue
The total receipts a seller can obtain from selling goods or services to buyers.
Behavior
The way one acts or conducts them self.
What are personal interviews good for?
They are good for seeking in-depth, qualitative information
What do governments do detect changes in the economy?
They calculate the unemployment rate on a monthly basis
What is an example of a manufacturer coordinating with retailers?
They can coordinate with retailers by providing items like displays and racks to showcase their products to customers.
Why must the elements of an advertisement coordinate?
They must coordinate so that the message has clearness
What do impulsive customers do
They select products quickly
What should a salesperson do before answering a question?
They should pause so they can get the full attention of the customer
What should endorsements do?
They should support the ad's statement
What should a good salesperson do to objections?
They should turn them into sales points
Which of the following is a true statement regarding fixed assets: They include accounts receivable. They are purchased for short-term use. They take longer than a year to convert into cash. They are considered to be very liquid.
They take longer than a year to convert into cash.
Vertical Conflict-
This type of conflict occurs between channel members at different levels within the same channel. This is the type of conflict that channel managers must pay close attention to
In the United States, how are public schools are usually funded? Through tax-exempt donations Through local property taxes Through corporate taxes Through tariffs on imported goods
Through local property taxes
Market opportunity is often affected by which factor? Timing Location Rewards Methodology
Timing
What is everything when it comes to market opportunities?
Timing
What is the purpose of a headline?
To attract attention
Understand what it means to be ethical or unethical.
To be ethical it means doing the right thing or having specific morals. To be unethical it means to do the incorrect thing morally.
Drive
To carry along by force in a specific direction.
Emma is reviewing the sales budget in relation to the actual sales generated for a set time frame. How is Emma using financial information in this situation? To analyze the impact of aging accounts To establish new quality standards and benchmarks To identify external economic trends To compare estimated performance with actual performance
To compare estimated performance with actual performance
What does it mean to do something "deliberately"?
To do something deliberately it means to do something consciously and intentionally, or on purpose.
Why does a company need a flow of money?
To exist
Why would a company need a flow of money? To borrow To sell To exist To invest
To exist
Which is a way a business can use financial information? To identify trends To create an economic system To select selling strategies To conduct focus groups
To identify trends
What is the whole point of coordinating promotional efforts?
To increase sales
What is important to do when closing a sale
To maintain a positive attitude
What is the cause of some taxes?
To regulate business activity
Karin is a sales representative for industrial office equipment. She always attempts to establish trust with each of her clients before asking them to buy. What positive company action is Karin demonstrating? Align strategies and activities with goals. Use rational and emotional motivation to convince customers to buy. Protect business's reputation Provide proper training for employees.
Use rational and emotional motivation to convince customers to buy.
The price of raw materials used in manufacturing a product doubled what had been projected for the year. What can the business determine by analyzing its financial information? Equipment costs Errors in forecasting Variances Supply and demand
Variances
What is variety-seeking buying behavior?
Variety seeking buying behavior is when the consumer does not have a lot of involvement with the purchase and there tends to be more brand switching. There is very little brand loyalty.
What type of buying behavior includes low customer involvement, significant brand awareness, and a desire for change? Status-oriented Risk-taking Variety-seeking Brand-insisted
Variety-seeking
What happens if you rely on other tam members for information?
You increase the length of your sales cycle.
If you don't know how much money a customer wants to spend, what should you do?
You should start by showing the moderately priced product first
If your buying motives are effective then what will be met?
Your needs and wants
How can you calculate total revenue?
a business multiplies the number of units sold by average price per unit.
An example of a final consumer in action would be a person buying a chair for his/her apartment. a desk for his/her office. some coffee filters for the break room. a computer for his/her graphic-design business.
a chair for his/her apartment.
Analogies
a comparison between two things, typically for the purpose of explanation or clarification.
Synetics
a problem-solving technique that seeks to promote creative thinking, typically among small groups of people of diverse experience and expertise.
What should you do if a customer reacts negatively to a product?
a salesperson should ask additional questions and explain other features and benefits
Attribute listing
a technique from the early 1930's which takes an existing product or system, breaks it into parts, identifies various ways of achieving each part, and then recombines these to identify new forms of the product or system.
What is a brain drawing
a type of visual brainstorming in which a group of participants sketch ideas for designs, icons, screen layouts, or other visual concepts.
According to the law of diminishing returns, what happens?
continuing to hire additional employees will eventually cause the production to decrease
The portion of a business's value that belongs to its owners or stockholders is known as liability. equity. accounts receivable. income.
equity.
Brainstorming
group discussion to produce ideas or solve problems.
What are the four macroeconomic sectors?
household, business, government, and foreign).
In business, the most important application of financial information is determining salaries. trend identification. getting to know the target market. managerial decision making.
managerial decision making.
When inflation is low how do prices tend to be?
prices tend to remain stable
Marketing plans help marketers understand past decisions and outcomes better so that they can avoid: explaining problems to management. repeating past mistakes. losing market share. writing new marketing plans.
repeating past mistakes.
A master budget is made up of information from specialized budgets that are generated by individual departments. the previous year's budget, with a 10% increase. internal sales forecasts and the probable level of competition. specialized budgets that are handed down from top management.
specialized budgets that are generated by individual departments.
Identification
the action or process of identifying someone or something or the fact of being identified
The government takes the following actions when there is a downturn in the economy
● Increasing the amount of money in circulation ● Spending more on goods and services ● Lowering the prime interest rate (the interest rate at which banks borrow from each other) ● Decreasing the discount rate for banks (the interest rate at which banks borrow from the Federal Reserve) ● Lowering of taxes
