MARKETING CLUSTER EXAM 1

What should the first section of an executive summary contain? A. A letter of authorization B. A recommended course of action C. A statement of the report's purpose D. An acknowledgement of the report's sponsors

A statement of the report's purpose. The executive summary provides an overview of the entire report and contains the most important information included in the body of the report. The first section of the executive summary should inform the reader about the purpose of the report—the reason the report exists. For example, if the report addresses a specific business problem, the report should cite the problem in the purpose statement of the executive summary. Recommendations are addressed in the recommendations section of the report. A letter of authorization might be included in a proposal that a business submits to a potential client. By signing the letter of authorization, the client provides approval to proceed with an activity or project. The first section of an executive summary does not acknowledge sponsors. Sponsors support activities, events, or projects rather than reports.

What does a businessperson need to do when preparing for an upcoming negotiation? A. Develop a strategy that avoids conflict B. Analyze the other person's position C. Embrace an all or nothing attitude D. Adopt an aggressive negotiating style

Analyze the other person's position. Understanding the other person's position—what s/he believes or feels about an idea or issue—is an important aspect of preparing for a negotiation. By understanding the other person's position, the businessperson can determine the common interests s/he shares with the other person, and emphasize those points during the negotiation. If the other person believes that the businessperson wants to reach a mutually beneficial agreement, a win-win outcome is more likely to occur. If each party agreed on every point, there would be no conflict to begin with, and no need for negotiation. Embracing an all or nothing attitude and adopting an aggressive negotiating style tends to create defensiveness and distrust, making a satisfactory outcome unlikely.

In relation to career success, it important for individuals to assess their strengths and weaknesses so they can A. change their personalities. B. apply their talents where they are best used. C. improve their relationships with friends. D. eliminate conflict.

Apply their talents where they are best used. People who use their talents are more likely to succeed in their careers. To know what their talents are, individuals must determine their personal strengths and weaknesses. For example, a very artistic person is probably going to be happier and more successful as a graphic artist than if s/he were to work as an accountant, which involves working with a lot of numerical data. While it is important for people to try to improve weaknesses (e.g., procrastination), this does not mean that they change their personalities. Improving relationships with friends is a personal goal rather than one that will help a person succeed in his/her career. Everyone experiences conflict at some time, and it cannot be eliminated.

Effective note-taking involves summarizing key concepts in ways that A. reflect proper punctuation and grammar. B. are meaningful to the note-taker. C. make sense to the speaker. D. include personal opinion and bias.

Are meaningful to the note-taker. Effective note-taking involves writing down the most important information or key points for future reference. Writing or typing key phrases, words, or symbols that are meaningful to the note-taker are ways of capturing the most important information. Because the notes are for personal use, they do not need to reflect proper punctuation and grammar or make sense to the speaker. Notes do not always include personal opinion and bias.

When participating in a project-status meeting, it is important for a participant to ... A. be prepared to provide an update. B. monopolize the conversation. C. provide information about new company policies. D. take notes for the group.

Be prepared to provide an update. It is important for a meeting participant to be prepared to present the required information at a scheduled meeting. Being unprepared is unprofessional and inconsiderate of the other participants' time. Without the necessary information, the meeting may need to be rescheduled. Meeting participants should not monopolize the conversation. New company policies would be relevant only if they affect the project. Otherwise, they should be communicated outside the project-status meeting. It is not always necessary to take notes for the group.

What component is important to include in all types of inquiry letters? A. Attention-getting title B. Personal qualifications C. Project specifications D. Contact information

Contact information. An inquiry is a request for information. Letters of inquiry are requests for information such as job openings with businesses, product specifications, prices, proposals, etc. To respond to an inquiry, the letter recipient must know to whom the information should be sent. Therefore, all inquiry letters should contain contact information—the inquirer's name, telephone number, mailing address, and/or e-mail address. Skills and qualifications might be included in a letter of inquiry that a job seeker sends to a potential employer. Project specifications might be included in a request for proposal. Letters of inquiry do not contain attention-getting titles.

Sasha has just received a fax order from a customer. The customer has requested six each of a certain product, but has not indicated the desired color. What can Sasha do to make sure that the customer receives the desired product? A. Contact the customer and ask him/her what color s/he wants B. Select the color based on the most available in stock C. Have the warehouse staff ship one in each color D. E-mail the customer to advise him/her that the order is incomplete

Contact the customer and ask him/her what color s/he wants. An important aspect of customer service is making sure the customer gets what s/he wants when s/he needs it. If Sasha has incomplete information to process the order, then she should contact the customer to obtain that information. When contacting the customer, Sasha should indicate why the order is incomplete and what information is needed to process the order. If Sasha was to select and ship products based on the colors available in inventory or was to ship one of each color available, the customer may not get what s/he wants, and send the products back, which is costly to the business.

Slotting allowances are an ethical issue that businesses must consider because these types of fees can... A. increase customers' choices. B. encourage high tariffs. C. discourage innovation. D. decrease channel reliability.

Discourage innovation. A slotting allowance (fee) is a cash premium that manufacturers pay to businesses to cover the costs involved in carrying a new product. Because larger manufacturers tend to have more money than small manufacturers, they are often awarded shelf space for new products because they can afford to pay higher slotting allowances. Consequently, this limits the small manufacturers' exposure in the marketplace and their ability to effectively compete in the marketplace. When small manufacturers believe that that they cannot compete, they are less likely to act on new product ideas. When fewer products are on the market, customers have fewer choices. Tariffs are taxes on imports and are levied by governments. Slotting allowances do not always decrease channel reliability.

A jurisdiction's judicial system strives to treat all parties fairly by... A. developing contracts. B. implementing flexible laws. C. interrogating witnesses. D. following legal procedure.

Following legal procedure. Legal procedure refers to the methods that are used to protect an individual's or business's legal rights. Each jurisdiction's court system requires that certain procedures be followed to ensure fair treatment to both the plaintiff and the defendant. This involves following legal procedures to file complaints with the court, to serve documents to the opposition, and to exhibit proper behavior with witnesses and jurors during court proceedings. The purpose of legal procedures is to provide consistent and fair treatment to all parties involved in a legal dispute. The judicial system does not develop contracts or implement laws; it rules on contract validity by interpreting laws.

As an employee of Simpson and Associates, Kevin performs a variety of activities each day, sets his own work pace, and has the authority to make many business decisions. Kevin's job involves __________ scope and __________ depth. A. low, high B. high, low C. high, high D. low, low

High, high. Scope is the number of tasks involved in a job and the frequency with which they occur. Because Kevin performs a lot of different activities, the scope of his job is high. If Kevin were to repeat the same tasks, his job scope would be low. Depth refers to the amount of control and decision-making an employee has in a job. Because Kevin sets his own pace and has the authority to make many decisions, the depth of his job is high. If Kevin had little control over his work and did not have the authority to make major decisions about his work, his job depth would be low.

A primary reason that businesses expand their operations in foreign countries is to ... A. eliminate tax obligations. B. increase revenues. C. condense their market shares. D. promote environmental issues.

Increase revenues. By expanding operations in foreign countries, businesses have the opportunity to sell goods and services in another market. If the market buys the business's products, the business increases both its market share and its revenues. Foreign expansion doesn't eliminate the business's tax responsibility. A business exists to make a profit, so its primary goal is to earn money to keep operating. Promoting environmental issues may be an important goal to some international businesses; however, the businesses must focus on generating revenues, so they are around to promote environmental issues or other issues of organizational importance.

What type of software program allows a business employee and a customer to communicate in real time from a computer by typing text? A. Call tracking B. Procurement C. Database D. Instant messaging

Instant messaging. Instant messaging software allows two or more people to communicate in real time by typing text into computers. Many online businesses use instant messaging as an element of the customer service that they provide their customers. For example, a customer can type a question into a text field on the business's web site, and the business's customer-service representative can respond immediately to the question by posting a reply message. Having this form of technology helps businesses manage their customer relationships in an efficient, positive way. A database is computerized storage for information and facts.

During lunch in the company's cafeteria, McKenzie overheard her coworker, Abby tell Kyle that she has a job interview with another firm next week. To respect Abby's privacy, McKenzie should A. drop vague hints to her supervisor that Abby is unhappy and looking for another job. B. keep the information to herself and not say anything to anyone. C. promise Kyle that she will not tell anyone about his conversation with Abby. D. tell Abby that she overheard the conversation, and assure Abby that her secret is safe.

Keep the information to herself and not say anything to anyone. An important aspect of respecting a person's privacy is not to talk to about things that do not affect or concern you. If McKenzie tells other people—including her supervisor, Abby, and Kyle—about a confidential conversation that she overheard, she may gain the reputation of being a gossip, which can greatly reduce her trustworthiness and credibility in the workplace.

A good indication that you may be making an unethical choice is if you... A. make excuses to justify your behavior. B. attempt to be objective. C. maintain confidential information. D. disagree with the rules.

Make excuses to justify your behavior. Making excuses means that you are trying to convince yourself that what you are doing or thinking of doing is okay—that you are justifying a wrong or inappropriate choice. Maintaining confidential information (unless it is harmful to others) and being objective are ethical behaviors. Simply disagreeing with certain rules does not always indicate that you are making an unethical choice.

What is a potential benefit to an employee who demonstrates initiative on the job? A. More advancement opportunities B. Fewer performance reviews C. Decreased job responsibilities D. Increased emotional intelligence

More advancement opportunities. Initiative is the willingness to act without having to be told to do so. People who demonstrate initiative are willing to accept and seek out additional or even unpleasant duties. Employers notice employees who demonstrate initiative because employees who take initiative can positively impact the business. Employees who take initiative often benefit because employers are more likely to promote these individuals and provide them with more job responsibilities, which can help them advance in their careers. Employees who demonstrate initiative often receive higher ratings on their job performance reviews.

It is often best for a business to use an exclusive distribution pattern when it... A. needs to maintain tight control over a product. B. prefers to have its intermediaries promote the product. C. chooses to eliminate intermediaries. D. wants the product to be available in all possible locations.

Needs to maintain tight control over a product. Exclusive distribution involves selling a product through one intermediary or middlemen, in a geographic area. Exclusive distribution is often preferred for specialty, highly complex, and technical products, or products that require special handling or training, such as airplanes or large machinery. When a business wants to deal with intermediaries that will do the best job to promote and sell their products, it would use selective distribution. Selective distribution means selling a product through a limited number of wholesalers and retailers in a geographic location. A business that wants to bypass middlemen (intermediaries) would choose a direct-distribution strategy. Intensive distribution involves selling a product (e.g., candy bars) through every available wholesaler and retailer in a geographic area where consumers might look for the product.

Chadwell's Toy Palace is planning a "buy one, get one free" sale for some popular toys. What will the store need to do to ensure that there are enough products available to meet the changing demand? A. Send copies of the promotional literature to the store's vendors B. Hire additional warehouse staff for the duration of the sale C. Change the distribution strategy from selective to intensive D. Purchase higher quantities of the sale items in a timely manner

Purchase higher quantities of the sale items in a timely manner. Channel management is the process by which marketers ensure that products are distributed to customers efficiently and effectively. Coordinating channel management with other marketing activities is important because the store must have items available to sell to the customers. This involves ordering the appropriate amount of items and ensuring that the items are delivered to the store before the promotional event or sale.

A government establishes an organization that monitors and ensures that businesses are complying with advertising laws. This organization is an example of a A. regulatory agency. B. lobbying group C. legislative body. D. watchdog corporation.

Regulatory agency. Established by the government, a regulatory or watchdog agency is an organization that monitors business activities and ensures that businesses follow the law. Some regulatory agencies have the authority to impose fines or other types of punishment on businesses that violate the law. The legislative body consists of government officials who develop and enact the laws. Lobbying groups are special-interest organizations that work to influence government policies. The government does not establish corporations to monitor businesses and enforce laws.

Which of the following is a situation in which horizontal conflict may occur among channel members: A. Scrambled merchandising B. Chargebacks C. Direct selling D. Franchisor restrictions on franchisees

Scrambled merchandising. Horizontal channel conflict occurs among channel members at the same level (e.g., retailers). Scrambled merchandising is a situation in which intermediaries add products lines to their product mix that were traditionally sold by other businesses, thereby creating a more competitive environment. For example, many pharmacy chains are adding perishable food items (milk, eggs) to their product lines. By doing so, they are now competing with grocery and convenience stores for scarce customer dollars, which creates horizontal conflict. Chargebacks (penalties), direct selling (bypassing intermediaries), and franchisor restrictions on franchisees often create vertical conflict among channel members. Vertical conflict occurs among channel members at different levels in a distribution channel.

The primary advantage to businesses using electronic data interchange (EDI) systems in the channel management function is that the systems... A. ensure that product quality standards are achieved. B. provide buyers with a greater selection of goods and services. C. allow sellers to track the transportation route of orders. D. streamline communication between buyers and sellers.

Streamline communication between buyers and sellers. Electronic data interchange (EDI) systems allow businesses to use their computers to send information to another business's computers. Businesses use an EDI system to monitor inventory and order products. EDI systems reduce paperwork and streamline communication, which result in better channel efficiency. EDI systems do not always provide buyers with a greater selection of products, nor do they ensure that product quality standards are achieved. Businesses use global positioning systems (GPS) to track the shipments.

One way to demonstrate active listening is by... A. focusing your attention on distractions. B. interrupting the speaker to ask questions. C. taking steps to minimize barriers. D. concentrating only on the points that you want to hear.

Taking steps to minimize barriers. Active listening involves the use of nonverbal cues, paraphrasing, questioning, and other techniques to let a speaker know that a message has been heard and understood. Barriers such as telephone calls, loud music, and other noises can hinder the ability to focus on what the speaker is saying. Taking steps to minimize barriers, such as closing a door, or letting a phone call go to voice mail can decrease distractions and improve active listening. Active listeners wait until a speaker has finished talking before asking questions. Interrupting the speaker is rude and distracting. If the listener pays attention only to the points s/he wants to hear, the message may be misunderstood.

Consumers may be prompted to increase their spending when A. the government implements expansionary monetary policies. B. unemployment rates steadily increase over an extended period of time. C. businesses purchase fewer raw materials. D. their confidence levels in the health of the economy decline.

The government implements expansionary monetary policies. Government monetary policies involve making decisions about the amount of money that will be in circulation and the level of interest rates. The government considers the state of the economy when determining in what ways, if any, it should change monetary policies. If trends indicate a recession is or may occur, the government will implement strategies to prevent the recession or to jumpstart the economy during a recession. To jumpstart the economy, the government might lower interest rates and/or expand the money supply. Lowering interest rates often stimulates borrowing and having more money in circulation often encourages consumer spending

What is the first thing you need to do when you want to persuade others to take a certain course of action? A. Understand your audience B. State your case C. Express a need or want D. Communicate clearly

Understand your audience. When you are persuading others, you are trying to get them to see things a certain way or to take a certain course of action. Before you can persuade people, you must first know what appeals to them. When you have a general idea about their likes, dislikes, opinions, and needs, you will be able to prepare a message that will appeal to them. After you understand your audience, and you know how to present your message in a way that will appeal to them, you can state your case using clear communication, which may include expressing a particular want or need.

An important aspect of fulfilling a company's brand promise is to... A. develop different trade characters for different market segments. B. change the company's slogan on a regular basis. C. establish different policies for different types of customers. D. use touch points to create positive customer experiences.

Use touch points to create positive customer experiences. The brand promise is a company's agreement (spoken or unspoken) with customers that it will consistently meet their expectations and deliver on its brand characteristics and values. To build and maintain customer relationships, a company's brand promise should strive to create positive experiences for customers—experiences that will encourage them to return to the business again and again. Companies use various touch points to create these experiences for their customers. Touch points are all of the opportunities that a company has to connect with its customers and reinforce its brand value. Touch points may include the company's employees, product attributes and packaging, and technological systems (e.g., telephone, web site). A slogan (tag line) is a phrase that is easy to remember, such as "Nationwide is on your side." A trade character is a symbol that is personified (e.g., Tony the Tiger).

Which of the following is a legal factor that may affect the business environment: A. Market trends B. Wage regulations C. International tensions D. Interest rates

Wage regulations. Many external factors can affect the business environment. Laws that govern what businesses can and cannot do are legal factors. Wage regulations require businesses to follow certain laws in relation to the ways in which employees are compensated. For example, minimum-wage laws set the lowest amount of hourly wages that a business may pay its employees. Minimum-wage regulations are designed to protect employees from unfair treatment by businesses. If businesses fail to follow wage regulations, the government is likely to penalize them. Market trends are social factors that affect the business environment. International tensions are political factors that affect the business environment. Interest rates are economic factors that affect the business environment.