Vocabulary
A company's ability to turn customers into repeat buyers and prevent them from switching to a competitor.
What is Customer Retention?
What three types of information can be found on a balance sheet? Pick three. (Must have all three correct to get the point)
Investment
Equity
Assets
Liabilities
Manufacturing costs
What are Assets, Liabilities, and Equity?
What is the formula for determining selling price?
A) Selling Price=(Cost-Desired PM)/Cost
B) Selling Price=(Cost x Desired PM)+ Cost
C) Selling Price= (Cost x Desired PM) - Cost
D) Selling Price= (Cost/Desired PM)- Cost
What is B. (Cost x Desired PM)+ Cost
Statistical data relating to the population, such as age, income, education level, and occupation used in the market segmentation
What are Demographics?
Landon's Legos Toy company wants to create a product/market fit hypothesis for a new toy. What element of the hypothesis involves writing a statement explaining what the new toy does and how it is different from the competition?
A) Identify underserved customer needs
B) UX
C) Value Proposition
D) Determining the target market
What is C) Value Proposition?
A system of maintaining standards in manufactured products by testing a sample of the output against the specification.
What is Quality Control?
Jaime is a barber. He recently invented a plastic tool that allows barbers to line up edge lines and cut on an angle. He wants to sell his invention to other barbers. How should he protect his intellectual property?
A) Trademark B) Copyright C) Utility Patent D) Intangible
What is C) Utility Patent?
True or False...
Fixed Cost change on the production of Volume?
What is False?
Fixed costs remain the same regardless of the volume of production
Segmentation that describes what customers think about value and how they live their lives
What are Psychographics?
Christian wants to create a new water gun to compete with Super Soaker and Nerf. He has a prototype already created, but before he makes any more decisions regarding design and research, what would be the best way for him to get some valuable feedback from consumers especially his target audience of 8-12 year olds?
A) Surveys
B) Randomly going door to door
C) Conducting Focus Groups
D) Calling 8-12 yr olds on the phone
What is C) Conducting Focus Groups?
This would allow him to ask questions and interview the customer (kids in this case) who would be able to tell him things that they would want in a water gun (More pressure, holds more water, a crossbody strap to wear it, fun colors, etc.)
A systematic method to improve the value of goods or products and services by using an examination of function.
What is Value Engineering?
Brand recognition, trade secrets, mineral rights, trademarks, air rights, domain names, and intellectual property are kinds of this type of asset?
What are Intangible Assets?
Justice owns a car dealership. She just received a shipment of Mercedes Benzes. She paid $50,000 for each vehicle and wants to make 25% on each car sale. What is Justice's selling price?
A) $72,500 B) $62,500 C) $65,500 D) $37,000
What is B) $62,500?
($50,000 x .25) + $50,000
(Cost x Desired PM) + Cost
This segment describes where customers are located and how they can be reached.
What are Geographics?
The point at which its sales exactly cover its expenses.
A) Touchpoint
B) Breakeven
C) Counterpoint
D) Equal point
What is B) Breakeven?
What are the 5 stages of the Business Lifecycle? (Must be in order)
What is1) Existence 2) Survival of the Fittest 3)Success 4) Takeoff 5) Maturity?
Brayren wants a special pair of Nikes for his 17th birthday. However, he has been unable to find a pair he likes (#drip) in any of the shoe stores. He has decided go online to order a custom pair from Nike. By doing, so this is an example of which sales channel:
A) Wholesale
B) B2B
C) Distribution
D) Direct to Customer
What is D) Direct to Customer?
Derek owns a sporting goods store. He just manufactured his own bicycle brand and needs to figure out what the selling price should be. The manufacturing cost per bike $65, and his desired profit margin is 15%. What is Derek's selling price?
A)$76.25 B) $74.75 C)$75.75 D) $75.50
What is B) $74.75?
This segment describes the benefits to customers based on their wants and needs.
What is Behavioral?
A computer training business needs to hire a consultant for a project to revamp the training courseware. Once the courseware is revamped, the consultant's services are complete. Which business compensation structure will pay the consultant and lead to the smallest payroll tax liability for the business?
A) Salary B) Commission C) Hourly D) Contract
What is D) Contract?
What is the primary characteristic or all primary and digital sales channels?
A) B2B B) Market dominance C) Branding D) Closing Sales
What is D) Closing Sales?
What does the letters in SWOT Analysis stand for?
What is Strength, Weakness, Opportunities, and Threats?
A hair salon acquired 100 new customers last year.
Costs in the marketing and sales areas were the following:
*Marketing costs = $3,000
*Sales costs = $20,000
*Salaries = $96,000
What was the customer acquisition cost?
A) $230 B) $1,190 C) $300 D) $960
What is A) $230
To calculate customer acquisition cost, divide all the costs spent on acquiring new customers (Marketing + Sales costs) / by the number of customers acquired
$3,000 marketing + $20,000 Sales costs/ 100 customers = $230
Salaries are not a part of marketing or sales costs and should not be calculated.
A company selling luxury cars to high-income individuals in big cities who value status and convenience is combining these four segmentation strategies.
Must list all four for credit
What are demographics, psychographics, geographics, and behavioral?
Sophia owns an organic pet food store and would like to analyze the sales data to determine if the business is growing, declining or remaining flat. She has the following data:
*Sales Revenue Last Year=$350,000
*Sales Revenue Current Year = $402,500
What is the sales growth percentage?
A) 15% B) 10% C) 13% D) 17%
What is A) 15%
To calculate sales growth, subtract sales revenue for the last year from the current year and then divide by the sales revenue from last year. (i.e. New-Old/Old) Multiply by 100 for the sales growth percentage
$402,500-$350,000=$52,500
$52,500/$350,000=0.15
0.15* 100=15%