BUS 346 Quizzes Post-Midterm

At the break-even point,

profits are zero. The break-even point is the place where revenues match total costs, and profits are zero.

________ are free to download, but place ads on the screen when using the program to generate revenue.

Ad-supported apps Ad-supported apps are free to download, but place ads on the screen when using the program to generate revenue. Although there are many of these types of apps, the majority of app revenue is generated from other forms of pricing models.

Tariffs protect domestic producers by

making imported products more expensive. Tariffs are taxes added to imported goods in order to raise their prices, making it easier for domestic firms to compete on price.

Cross-promotion is most successful when

the two products appeal to the same target market. To achieve a successful cross promotion, the two products must appeal to the same target market and together create value for consumers.

When corporate headquarters announced new service quality standards for pizza franchise owners, Roland knew he would have trouble gaining employees' support because

they were not involved in setting the goals By involving employees in goal-setting, managers can make it much more likely that employees will buy in to the standards and deliver service according to the standards established. In this case, standards were established by headquarters with no employee involvement.

Students regularly seek out Professor Guillory to advise them. She has an exceptional manner, and students are confident in her and trust her advice. For these students, __________ is the most important of the five service quality dimensions.

assurance Assurance is the dimension of service quality that refers to inspiring trust and confidence in others, which is Professor Guillory's strength. Note that the question doesn't actually say that her advice is always good (which would refer to reliability), but rather that students believe that her advice is good.

Customers have a defined __________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store.

zone of tolerance The difference between what customers desire and their minimum acceptable level of service is the zone of tolerance. Customers might be willing to wait longer for service at a busy grocery store than at a convenience store.

When Jaime arrived at her hotel room and saw that the bed sheets had not been changed from the last hotel guest and there were cockroaches in the bathroom, she chose to go elsewhere. An undone, bug-infested room was not in Jaime's __________, which is the difference between what she really wants and what she will accept before looking for another hotel.

zone of tolerance The zone of tolerance is the difference between what a customer really wants and what the customer will accept before going elsewhere.

Once the marketing communication has captured the interest of its target market, the goal of subsequent IMC messages should be to move the consumer from

"I like it" to "I want it" The interest stage of the AIDA model is represented by "I like it"; the next stage, desire, is represented by "I want it."

The _______ provides a detailed, multipronged "Statement of Ethics" that can serve as a foundation for marketers by emphasizing how marketers serve not only their organizations but also act as stewards of society.

American Marketing Association The American Marketing Association (AMA) provides a detailed, multipronged "Statement of Ethics" that can serve as a foundation for marketers, emphasizing that "As marketers...we not only serve our organizations but also act as stewards of society in creating, facilitating and executing the transactions that are part of the greater economy."

Generally, less money is spent on advertising in B2B markets because

B2B marketing usually involves more personal selling. B2B marketing makes heavy use of personal selling and less use of advertising compared to B2C marketing.

__________ refers to a potential customer's ability to recall that the brand name is a particular type of retailer, product, or service.

Brand awareness The first step of the AIDA model seeks to achieve brand awareness among consumers—knowledge that the brand name is in a particular category.

Personal selling is an especially important part of IMC in

Business-to-business markets Business-to-business markets make especially heavy use of personal selling.

How does your text describe how social media firms help marketers connect with their customers?

By helping build connections between customers and firms Social media firms offer services or tools to help consumers and firms build connections. Through these connections, marketers and customers share information of all forms—from their thoughts about products or images, to uploaded pictures, music, and videos.

After the advertiser has decided on the message, type of ad, and appeal, its attention now shifts to

Creation of the advertisement Once these decisions are made, it is time to create the advertisements.

If you ever watched a television commercial and at the end of the message wondered what was being promoted, you may had trouble __________ the IMC message.

Decoding Problems decoding a message can lead the receiver to fail to interpret it properly.

The increased use of customer databases has enabled marketers to identify and track consumers over time and across purchase situations and has contributed to the rapid growth in

Direct marketing Direct marketing is the form of marketing communication that is most easily personalized through the use of customer databases.

Which of these trade agreements represents the highest level of integration among participating nations?

EU With 29 member countries, the European Union (EU) represents the highest level of integration.

The 4E framework for social media guides marketers in using social media effectively to build and deepen customer relationships. Which of the following is not one of the 4Es in this framework?

Energy The 4E framework includes exciting the customer, educating the customer, offering ways for the customer to experience the product or service, and engaging the customer.

The communication process includes all of the following except

Evaluation The communication process includes the sender, the transmitter, encoding, the communication channel, the receiver, noise, and the feedback loop.

Which of the following is not one of the major trade agreements affecting global marketing?

GNI The GNI is the gross national income, a measure of a country's economic output. The others are trade agreements.

Which of the following social media tools is a type of all-in-one marketing software that can be used to educate customers?

Hubspot Several social media tools are critical in helping marketers educate their potential customers, such as blogs and blogging tools (e.g., WordPress and Twitter), HubSpot (all-in-one marketing software), YouTube, and Google+, as well as some lesser known options such as Roost or Schedulicity.

Which statement about India's population is true?

India's workforce is highly skilled, particularly in technology. India's highly skilled workforce holds great attraction for firms that hope to expand using local talent, especially in technical fields.

__________ represents the systems and equipment resources that service providers need to be able to close the delivery gap.

Instrumental support This is the definition of instrumental support—the systems, equipment, and tools frontline employees need to do their jobs.

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers?

It can protect the privacy of personal information collected on its website. Obeying the law when it comes to safety isn't sufficient to be considered socially responsible—the firm is simply behaving legally. Using recyclable materials would be a socially responsible practice, but it serves society (the environment), not specifically customers. Similarly, fair pay practices serve employees, not specifically customers. Apple can exhibit socially responsible behavior toward customers by treating their personal information with respect.

Darren has developed a better type of medication vial for travelers. He is not sure how to develop a marketing program for his product, as there are a few similar ones on the market. What technique can Darren use to analyze data from his competitor's websites, particularly to learn how people search for similar products online?

Keyword analysis With information obtained from keyword analysis, marketers can refine their websites by choosing keywords to use on their site that their customers use.

The elements of the social media engagement process are:

Listening, analyzing, and doing The three-stage process for social media engagement involves listening to what customers have to say, analyzing the information available through various touch points, and finally implementing (or doing) social media tactics to excite customers.

The individual elements of an IMC strategy can be viewed on two axes: __________ (from the consumer's perspective) and ________.

Passive and interactive; offline and online The elements of an IMC strategy can be viewed on two axes: passive and interactive (from the consumer's perspective) and offline and online.

Suppose that Nike wanted to use Facebook to increase awareness of a new line of tennis shoes. Which of the following methods would allow Nike to specifically target Facebook users who have mentioned tennis in their profiles?

Placing a Facebook ad The only method listed that specifically targets users by their profile information is the Facebook ad. In order for the campaign to succeed, though, the ad would need to be engaging and to be well supported on Nike's Facebook page.

A measure termed _______ describes how useful an ad message is to the consumer doing the search.

Relevance This is the definition of relevance.

Which of the following is currently a negative factor for foreign investment in Russia?

Russia is known for corruption, creating ethical dilemmas for firms. Corruption is widespread in Russia, creating ethical dilemmas for firms trying to market their goods and services.

A process called _______ enables customers to scan a product in a store and instantly compare the prices online to see whether a better deal is available.

Showrooming Shopping apps allow consumers to not only make purchases from a smartphone 24/7, but also to do many other tasks, such as comparing prices and creating grocery lists. A process called showrooming enables customers to scan a product in a store and instantly compare the prices online to see whether a better deal is available.

LinkedIn is an example of which type of social media site?

Social Networking LinkedIn is a social networking site.

Which of the primary motivations do consumers spend the least amount of time engaging in on their smartphones?

The need to self-express Individuals have diverse interests and tastes, and as a result, have a need for apps that are tailored to their hobbies and passions that fulfill their need to self-express. Surprisingly, though, the average person spends only about 1 percent of his or her smartphone time engaging in personal interests.

The sender of an IMC message hopes the receivers are

The people for whom the message was originally intended The sender cannot guarantee that the intended target customers will receive the message but will choose the message format and channel with the customer in mind.

The highest level of awareness occurs when customers mention a specific brand name when asked about a product or service. Marketers call this

Top-of-mind awareness Top-of-mind awareness means that the consumer mentions the brand name first when asked about a product.

_______ occurs when members of the marketing channel collude to control the prices passed on to consumers.

Vertical price fixing Vertical price fixing occurs when parties at different levels of the same marketing channel (e.g., manufacturers and retailers) agree to control the prices passed on to consumers.

For which of the following is demand likely to be most sensitive to price increases?

a specific brand of soft drink. A specific brand of soft drink has many substitutes, and so demand is likely to be sensitive to price increases. One exception would be extremely brand-loyal consumers.

When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of

a tariff. A tariff is a tax levied on a good imported into a country, which could account for the higher price of foreign cars.

Apple computer users tend to like the company and love its products. Apple has nurtured this __________ component of its customers' attitudes.

affective The words like and love are important here, as they represent feelings, which make up the affective component of an attitude. The cognitive component would be represented by beliefs (for example, the belief that Apple is better at innovation than its competitors). The behavioral component would be represented by actions (for example, the choice to buy an Apple computer instead of a Windows PC).

Fordham3 Hardware is known for its consensus buying center culture. Recognizing this corporate culture, someone attempting to sell to Fordham3 Hardware should

attempt to facilitate the collective agreement of all members of the buying center. A consensus buying center culture is one in which the members work together until they reach an agreement.

Bob Roberts founded Robertico, an equipment leasing company, three decades ago. Although he is now in his seventies, he still has a "hands on" management style. His employees have learned that there isn't much point in making purchase recommendations for new equipment, because Bob is going to choose whatever he thinks is best regardless of their views. Robertico has a(n) __________ buying center culture.

autocratic An autocratic buying center may have multiple participants, but one person makes the decision alone.

Johnny works at an electronics store. In addition to his salary, he receives 2 percent of the sales dollars he brings in each month. This extra 2 percent is called a

commission. A commission is a financial incentive, paid based on a percentage of sales volume or profitability.

Global segmentation, targeting, and positioning (STP) are more complicated than local STP, in part because

consumers may view their roles differently in different countries. Global segmentation, targeting, and positioning (STP) is complicated because differences in country culture, politics, or the economy may lead consumers to view their roles differently, and these differences can be hard for an entering company to understand. Global consumers are definitely not homogeneous.

For an advertiser, the target audience can be understood as

consumers whom its research designates as its target market. Firms must keep in mind that their target audience may or may not be the same as current users of the product. They must conduct research to identify their target audience.

Business-to-business marketing involves buying and selling goods or services by all of the following except

consumers. Business-to-business (B2B) marketing refers to the process of buying and selling goods or services to be used in the production of other goods and services for consumption by the buying organization and/or resale by wholesalers and retailers. When businesses sell to consumers, it is B2C marketing.

Every year, General Mills issues a report discussing how the firm has performed against its own standards of ethical conduct. This report is part of General Mills' __________ phase of its strategic marketing planning process.

control General Mills is evaluating its performance, which is a part of the control phase.

Before going on his first business trip to China, Brad asked his Chinese American friend to advise him on customs and values common among the Chinese businesspeople he will likely encounter. Brad is trying to avoid __________ business blunders.

cultural Brad is concerned about meanings, beliefs, values, and customs that he will not understand: in other words, the culture in China.

While training for her new job as a pharmaceutical sales representative, Mallory spent several days shadowing an experienced company rep. She watched the rep focus on the benefits of the new drugs while not volunteering pricing information, side effects, or comparison data. Mallory assumed that this reflected part of the pharmaceutical firm's

culture. The organization's culture is a set of values, traditions, and customs that are typically unwritten. Unfortunately, Mallory is observing a lack of regard for ethics that might be characteristic of this one sales rep, or might be an aspect of the company's culture. (Note that this is an issue of ethics, not corporate social responsibility.)

Marketers can take advantage of the variable nature of services by

customizing services to meet customers' needs. The positive side of service variability is that it offers a chance to customize delivery. The reason "strict standardization" is not the right answer is because this is a method used to reduce variability, not to take advantage of it.

The customers at Marielle's coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. The sign in the window promises "Quick, In-and-Out Service," and usually Marielle's keeps that promise. But one morning, customers were frustrated when the staff behind the counter showed more interest in gossiping about their social lives than in waiting on customers. Marielle's shop is suffering from a ________ gap.

delivery Marielle's has standards in place to offer fast service, and this is what its customers expect, so we are not dealing with a knowledge or standards gap. And on most days, this promise is kept, so we are not dealing with a communication gap. But on this particular day, service does not match the standards. This is a delivery gap.

Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company was a major donor to Houston area charities. Enron had unethical business practices, but was also

demonstrating corporate social responsibility. Enron was exhibiting unethical behavior through its financial manipulation, while at the same time demonstrating social responsibility through its charitable donations.

Bhakti was recently promoted to a sales management position. She had been an effective representative, but her strengths and educational background were in management. She was about to begin her first salesperson recruitment campaign. The most important thing Bhakti can do to ensure that she recruits the right people is to

determine exactly what the salesperson will be doing and what traits and abilities job candidates will need to succeed. It is important to determine what traits and abilities a good salesperson needs to have and to seek these traits in job candidates.

To meet or exceed customers' expectations, marketers must

determine what those expectations are. The most important thing a marketer needs to meet or exceed expectations is an accurate sense of what those expectations are; otherwise, the firm is reduced to guessing and hoping for the best.

Which of the following is one of the global entry strategies?

direct investment Direct investment is one of the global entry strategies.

Often, inexperienced salespeople mistakenly believe that during the sales call, they should

do all the talking. Inexperienced salespeople sometimes do all the talking, not realizing that asking questions and then listening carefully to the answers is a critical part of the sales presentation.

The Harvest County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the ethical decision-making framework, its next action should be to

engage in brainstorming alternatives. The school board has completed the first two steps of the ethical decision-making framework. The third step is to assemble the stakeholders to brainstorm for alternatives.

Marketers particularly want their brands and products to be in consumers' __________ sets.

evoked The universal set represents all brands, regardless of whether or not the consumer is aware of them. The retrieval set represents all brands the consumer can recall. The evoked set represents all brands the consumer would consider buying. Marketers want their brands to be in evoked sets, since this gives those brands a serious chance of being selected for purchase.

The __________ occurs when unit cost drops as the quantity sold increases.

experience curve effect The experience curve refers to a drop in unit cost as the quantity sold increases.

The consumer's level of involvement can lead to two types of buying decisions: __________ and __________.

extended problem solving; limited problem solving. Extended problem solving typically occurs under a high level of involvement; limited problem solving typically occurs under a low level of involvement.

Salespeople should be evaluated and rewarded only for those activities and outcomes that

fall under their control. It is important to ensure that any measures used to evaluate salespeople focus on factors they can control. For example, a lucky break with which the sales rep had no involvement should not grant the rep a huge commission.

A key to successful marketing is determining how to meet the correct balance of __________ needs that best appeals to the firm's target markets.

functional and psychological Marketers must understand what needs are most likely to drive customers to consider their products, and design offerings to meet those needs.

Reese and Janelle own a boutique in the United States. Recently they took a trip to China and while there, the couple purchased a large quantity of name-brand handbags for a cost significantly lower than what the manufacturer charges for the same product in the United States. Upon their return, the couple sold the handbags in their store for less than any other store in the area. This is an example of what takes place in a(n) _______ market.

gray A gray market employs irregular but not necessarily illegal methods; generally, it legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer.

Because of __________, many companies have altered their "no questions asked" return policies to include time limits, "restocking" fees, and store-credit-only refunds.

high costs Costs involved in returns have led some retailers to restrict customers' ability to return merchandise.

Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. According to the framework for ethical decision making, the first thing Garrett should do is to

identify issues that need to be addressed. Identifying potential ethical issues is the first step in the ethical decision-making process.

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for children with disabilities. The letter writer is critical of a banner displayed at the event, with the logos of alcoholic beverages and Hisaoki's company name. Hisaoki never considered that this problem might arise. In the framework for ethical decision making, Hisaoki's company failed to

identify issues. Hisaoki failed to identify possible ethical issues in advertising alcoholic beverages at a child-related event.

The process of salespeople creating blogs to draw customers in and generate leads is a process known as

inbound marketing. This is the definition of inbound marketing.

After need recognition and product specification, many firms using the B2B buying process

issue a request for proposals from invited suppliers. The third step, after need recognition and product specification, is for the firm to provide a request for proposals from suppliers detailing what the firm needs to purchase.

For years, the Mogul Sheraton, a four-star hotel overlooking the Taj Mahal in India, offered free elephant and camel rides to hotel visitors. Few customers took advantage of this service. This is an example of a __________ gap in services marketing.

knowledge The Mogul Sheraton believed that customers wanted elephant and camel rides, but in reality customers were evidently not interested in the service. This misunderstanding of customer expectations is an example of a knowledge gap.

Deceptive advertising and promotion of inferior products are examples of ethical issues related to _______.

marketing. These are two major issues related to marketing ethics.

When Walmart considers reordering items for its stores, its buyers are instructed to negotiate price concessions, quality improvements, and/or added options. In this situation, Walmart buyers are engaged in a(n) __________ situation.

modified rebuy A modified rebuy situation is one in which the buyer has purchased similar products in the past, but now wants to modify some specifications.

If a firm in a purely competitive market can differentiate its product or service, it becomes part of a(n) _______ market.

monopolistic competition The difference between pure competition and monopolistic competition is that in pure competition, products are not differentiated, but in monopolistic competition, they are.

Marketers fear negative word of mouth because when consumers are dissatisfied, they

often want to complain to many people. Dissatisfied customers are very likely to complain to others, whereas satisfied customers often tell no one.

The commercial airline industry is considered what type of market?

oligopolistic competition. When a market is characterized by oligopolistic competition, only a few firms dominate.

If a telecommunications company drastically cuts the price for cellular phone service in order to eliminate local competitors, the company could be charged with

predatory pricing. Predatory pricing is the setting of artificially low prices for products with the intention of driving competitors out of business. Predatory pricing is difficult to prove.

Tariffs, quotas, and currency exchange policies affect global

pricing strategies. These are all important issues that will impact the price consumers will pay for a product.

Upscale men's and women's clothing stores, like Nordstrom, Neiman Marcus, or Saks Fifth Avenue, are more likely to appeal to consumers' __________ needs.

psychological Upscale clothing can improve a person's image or make him or her feel a certain way, both of which are examples of psychological needs.

Global marketers are under constant pressure to shorten distribution channels in order to

reduce costs. Distribution channels tend to be longer and more complex within global contexts than in domestic markets. For this reason, distribution channel efficiency is a critical factor in keeping costs down in global marketing.

Brad always buys and uses Nike brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand-loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively

reduced the price elasticity of demand for its products. Brand-loyal customers like Brad are less sensitive to price increases. The more such customers exist in a market, the less price elastic demand will be.

Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluating alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should

reexamine their alternatives. Perhaps the chosen course of action is not truly the best choice. By reexamining the alternatives, the firm may find a better choice.

Malcolm buys overrun clothing from factories around the South. He sells the clothes to discount retailers. Malcolm is a

reseller Resellers include wholesalers, distributors, and retailers. Resellers purchase products from businesses and sell them to other businesses without significantly altering them.

Unlike manufacturers, __________ buy products from other businesses but do not significantly alter the form of the products they buy before selling them.

resellers Resellers—both wholesalers and distributors—buy products from businesses and sell to other businesses, but do not significantly alter the products involved.

Hiro sells building materials to local contractors. He wants to build long-term relationships with his contractors through effective follow-up. After delivering the materials ordered, Hiro can demonstrate __________ by checking with his contractors right after the delivery and addressing any problems promptly.

responsiveness and empathy By checking with contractors immediately after delivery and addressing problems promptly, Hiro can demonstrate responsiveness (dealing with problems quickly) and empathy (having a good understanding of the problems).

Bridgette went to the Gap ready to buy a new shirt, but was not sure which color or style she wanted. The sales representative, sensing Bridgette's buying mode, most likely began with the __________ stage of the selling process.

sales presentation Bridgette was ready to see her options in styles and colors, so the sales rep would move directly to a presentation.

"Black Friday," as the day after Thanksgiving has come to be known in the United States, is a day marked by many special deals in most retail stores, including deep-discounted products available in limited quantities, called "doorbusters," which are designed to get shoppers into the store. But one danger of running out of the doorbuster deals is that a shopper may become angry or discouraged at failing to get the special item and decide not to do any more shopping. This is an example of the impact of __________ on the consumer decision process.

setting high expectations Setting high expectations may cause a store to lose a customer if those expectations aren't met.

Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price

skimming. There are two primary new product pricing strategies: skimming, which focuses on selling at a high price to the innovators and early adopters on the diffusion of innovation curve; and market penetration, which focuses on selling at a low price in order to gain market share as quickly as possible.

André was afraid his new condominium would look shabby to his future in-laws, so he had it painted just before their visit. André was addressing his __________ risk.

social André was worried that his in-laws would judge him by the condition of his condo, which represents a social risk since it relates to the way others see him. If André had done the painting to preserve his self-image, that would be related to psychological risk.

The head of the marketing area told Alex to find the most stringent federal regulations on advertising to create the toughest standards. "If we can pass those, we should be able to get by all regulations." One real problem is

state regulations are not always consistent with federal standards. States have different regulations and are beginning to assert their authority more than in the past, creating confusion since many state laws are more restrictive than U.S. federal law. The same is true of European Union laws regulating advertising—they are typically more restrictive than U.S. law.

There is a saying "Never go to the grocery store hungry." This saying suggests that a consumer's __________ state may adversely affect purchasing decisions.

temporal Hunger is an example of a temporal state, a temporary state of mind that can influence decision making. In this case, the suggestion is that hunger will cause the consumer to purchase things he or she wouldn't buy otherwise.

When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members—who were disturbed by the extravagance while staff salaries were frozen—quit their jobs. This example illustrates

that the impact of unethical actions can affect the organization in unanticipated ways. Hushing up the unethical behavior is not a solution; among other things, if the matter were ever to become public, the embarrassment to the university would be far greater than if it dealt with the situation from the start. The example shows, though, that unethical actions can harm an organization in a variety of ways. Everyone within a firm must share the same understanding of its ethical values and how they translate into the business activities of the firm.

The International Consumer Electronics Show is an example of a(n)

trade show. The International Consumer Electronics Show is a trade show.

The chair of the board of the local Humane Society chose the bank where the organization keeps its money; however, the office manager is the primary person who makes deposits, writes checks, and balances the account every month. The office manager is the __________ in the buying center for the bank account.

user The user is the person who consumes or uses the product or service.

Not knowing the roles of key players in the buying process could cause a sales representative to

waste time and alienate people. A failure to understand the roles and culture of the buying center can cause a sales representative to waste time by focusing too much on the wrong people. The representative might also alienate people by not paying enough attention to key players in the decision.

The beginning of the sales presentation may be the most important part of the selling process, because this is where the salesperson establishes

where the customer is in the buying process. Early in the sales presentation, the sales rep needs to determine where the customer is in the buying process by asking a series of questions.

Brandon is in the process of qualifying leads he received from corporate headquarters. Brandon will assess

whether or not it is worthwhile to pursue these potential customers. Qualifying leads refers to determining whether or not they have the needs and the resources necessary to make them good potential customers.