MARKETING
The primary reason for developing a marketing research brief is to
A. explain the survey's rating scale.
B. summarize the raw data.
C. clarify the purpose of the research.
D. identify changes in the marketplace
C. clarify the purpose of the research.
A marketing research brief is a proposed plan for approaching the marketing research study. The brief defines or clarifies the issue or problem, states the objectives of the study, and suggests ways in which to approach the research process. Marketing researchers collect raw data after developing the marketing research brief. Identifying changes in the marketplace may be a purpose for conducting the research. The research process may or may not involve conducting a survey.
One of the purposes of developing a business plan before starting a new business is to
A. understand the risks involved.
B. organize the operation.
C. identify a maintenance system.
D. create a safe work environment.
A. understand the risks involved.
A business plan is the written document that is developed before starting a business. It explains the goals and objectives of the company and how the company intends to achieve those goals. Developing a business plan helps the business understand the risks it might face and develop strategies to overcome possible problems. All businesses face some type of risk, and being aware of that often helps the business be successful. A business plan is not developed to organize the operation, create a safe work environment, or identify a maintenance system.
Which of the following is a benefit of networking for a finance professional:
A. Improving marketing skills
B. Prevention of job loss
C. Growth in technical knowledge
D. Gaining insider information about other companies
C. Growth in technical knowledge
By forming relationships with other finance professionals, you can gain technical knowledge and improve your own skills by learning from others. Networking cannot necessarily prevent job loss, although it might help inform you about changes, risks, or opportunities in the industry. Generally, professional relationships in finance should not and do not include sharing insider information about different companies, as this is unethical, if not illegal. Finally, improving marketing skills does not necessarily relate to building professional relationships in finance.
A company hangs a poster with its brand promise in its customer service department to make sure employees have the brand in mind. This is an example of a
A. logo.
B. brand cue.
C. private brand.
D. touchpoint.
B. brand cue.
Brand cues are simple reminders of the brand's identity and values. Brand cues are a great way to remind employees about the brand values and brand promise. Touchpoints are all the opportunities that businesses have to connect with customers and reinforce their brand. Logos are distinctive symbols, designs, or groups of letters. A private brand is owned by the intermediary (retailer, wholesaler, or other distributor) that sells the brand rather than the manufacturer.
Premiere Office Supplies used to make enough revenue through existing customer reorders, but lately, many customers have begun ordering from YourOffice, a new retailer. Therefore, Premiere Office Supplies had to change its sales process to increase revenue due to
A. growth.
B. technology.
C. regulation.
D. competition
D. competition
Competition is one reason that businesses might need to change their processes. When YourOffice entered the market, Premiere Office Supplies had to change its sales process because it can no longer rely on its previous process (relying on reorders). While growth, technology, and regulation are also reasons that a business might need to change its processes, these reasons are not related to the given situation.
What is an ethical issue that affects the promotional efforts of many businesses?
A. Children's advertising
B. Personal selling
C. Integrated marketing
D. Brand positioning
A. Children's advertising
Children are often the target of advertising because they have significant buying power and also influence the buying decisions of many adults. Advertising to children frequently becomes an ethical issue for businesses because messages that are suitable for adults may not be suitable for children. Businesses must be cautious not to take advantage of children by giving them information or making claims that they will not understand. Businesses have an ethical obligation to be fair and truthful when advertising to children. Brand positioning involves creating a certain image or impression of a brand as compared to those of competitors' brands. Integrated marketing is not an ethical issue. Personal selling is the form of promotion that determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities.
What element of the marketing mix most directly deals with supply chain management?
A. Promotion
B. Product
C. Price
D. Place
D. Place
Supply chain management (SCM) is the career area in which employees supervise the flow of goods and services as well as all processes that transform raw materials into final products, and getting those products into the marketplace. Place is the marketing mix element that deals with SCM because SCM involves the process of taking goods and services from their raw beginnings to customers. The place element of the marketing mix focuses on getting a product in the right place at the right time. The product element of the marketing mix focuses on what goods, services, or ideas a business will offer its customers. The price element deals with the amount of money marketers will ask in exchange for their products. The promotion element refers to the various types of communications that marketers use to inform, persuade, or remind customers of their products.
Which of the following situations would cause prices to rise:
A. The corn crop is unusually large one summer.
B. Animal rights activists march in front of a fur store.
C. A newspaper article describes poor service provided by a hotel.
D. Insects destroy a large cotton crop.
D. Insects destroy a large cotton crop.
The decrease in the supply of cotton will cause an increase in prices. An increase in the corn crop will cause excess supply resulting in a decrease in prices. Negative comments about a hotel or by activists will probably decrease demand and cause prices to fall.
Which user studies a balance sheet to determine a company's creditworthiness?
A. Bank
B. The business's manager
C. A business student
D. Investor
A. Bank
Banks lend money to businesses; they often study balance sheets to determine how much credit they should extend. The business's manager studies the balance sheet to determine the company's current strengths and weaknesses. A business student may study a balance sheet for any number of reasons, but most likely, they aren't extending credit to a business. Investors study balance sheets to determine whether or not the company is a good investment.
How can an organization promote knowledge management from the top down?
A. Rewarding individual achievement
B. Providing the right technology
C. Valuing competitiveness
D. Encouraging a quiet workplace
B. Providing the right technology
An organization can promote knowledge management by providing helpful tools such as a company intranet or other knowledge management technology. Rewarding individual achievement can discourage knowledge management; instead, top-level management should recognize collaboration and teamwork. Instead of encouraging a quiet workplace, organizations should encourage communication and regular meetings. Finally, valuing competitiveness can decrease knowledge management because employees might look out for their own self-interest rather than share knowledge with one another.
What is a regulatory factor that affects promotion on an international level?
A. Culture of specific countries
B. Price of comparable products
C. Cost of media placement
D. Types of products being advertised
D. Types of products being advertised
Regulations regarding promotion differ throughout the world. When businesses want to promote their products in other countries, they need to be aware of different regulations. One regulatory factor often involves the types of products being advertised. For example, charities may not advertise on TV in the United Kingdom. In France, diet products may not be advertised on TV. The cost of media placement and the price of comparable products are not regulatory factors that affect promotion. Culture is not a regulatory factor; however, culture has an impact on the regulations that affect promotion on an international level.
Repeated exposure to the largest, most diverse population of people is a benefit of __________ advertising.
A. out-of-home
B. newspaper
C. directory
D. radio
A. out-of-home
Certain spots (e.g., bus stations) outside of the home attract a large percentage of people from different backgrounds, thereby providing the perfect opportunity to expose them to a message over and over again. Radio advertisements last for only as long as they are on the air, and they are targeted at a very specific group of listeners. Once people are finished reading newspapers, they typically throw them away. In addition, not as many people read newspapers as drive by public places over and over again. Directory advertising is a great opportunity to appeal to people who are looking for the business's contact information, but rarely is there repeated exposure to an ad.
In the lean approach to accounting, inventory is treated as a(n)
C. liability.
Unlike traditional accounting, in which inventory is considered an asset, lean accounting treats inventory as a liability because having an inventory requires labor, storage, and other expenses. Inventory is viewed as an asset in traditional accounting methods because it is a value owned and not owed. Inventory cannot be considered a revenue until it is sold and ceases to be inventory. Equity refers to the amount of value that a shareholder has invested in a business.
A hotel owner plans to conduct secondary research to learn more about guest satisfaction. Which of the following options would be the most appropriate method of secondary research for the hotel owner:
A. Interview the hotel staff members about guests' attitudes
B. Create a satisfaction survey to provide to all new guests
C. Observe hotel guests to determine their satisfaction
D. Review customer comments in the hotel database
D. Review customer comments in the hotel database
Secondary research examines information that was previously collected for other purposes. Reviewing customer comments stored in a database is an example of secondary research since the data were previously collected. Creating a survey, interviewing staff members, and observing guests are primary research activities since they are designed to collect information specific to the research goal.
Brendon admires professional basketball players and often purchases products that players have endorsed. Which of the following groups is influencing Brendon's buying behavior:
A. Subculture group
B. Membership group
C. Reference group
D. Association group
C. Reference group
Even social groups that people don't belong to can affect their buying behavior. These are called reference groups, and they include groups someone aspires to be a part of as well as groups they want to distance themselves from. In this example, Brendon's buying behavior is being influenced by a reference group—specifically, professional basketball players. His behavior is not being influenced by a membership group or a subculture in this example. A membership group is a group that someone is a part of, such as a church or sports team. A subculture is a culture within a larger culture, such as Hispanics in the United States. An association group is not generally a term used to describe a particular influence on buying behavior.
The Sandlot Company promotes its products to intermediaries who then promote the products to customers. The Sandlot Company is using a(n) __________ promotional strategy.
A. pull
B. decreasing
C. increasing
D. push
D. push
In addition to determining which promotional mix elements to emphasize when promoting their products, manufacturers must also decide to whom they want to promote their products. Producers who utilize push promotional strategies promote their products to intermediaries who then promote the products to customers. Rather than promoting their products to intermediaries, producers who adopt pull promotional strategies promote their products directly to the ultimate consumer or industrial user to generate customer interest in the products. Intermediaries then purchase the products from manufacturers to meet customer demand. Increasing and decreasing promotional strategies are fictitious terms.
Specialty advertising is being used by firms when they
A. give away useful products to customers.
B. display the firm's name in lights.
C. sell premiums to potential customers.
D. hire specialists to do the firm's advertising.
A. give away useful products to customers.
Companies using specialty advertising typically place company and product information on useful items, such as calendars and key rings, and then distribute these items to current and potential customers. Specialists who prepare advertisements are advertising agencies. The firm's name in lights on a building is out-of-home advertising. Premiums are given, not sold, to customers.
“Big Q” focuses on
A. exceeding customer expectations.
B. improving factory conditions.
C. designing and developing products.
D. conforming to specifications.
A. exceeding customer expectations.
“Big Q” focuses on ingraining quality into every aspect of the organization to meet and exceed customer expectations. “Little Q” focuses on conforming to specifications. Neither approach to quality management specifically focuses on improving factory conditions or designing and developing products, although those may certainly be important goals of a quality-management system.
Which of the following is an indicator that human resources needs may change:
A. Managerial opinion
B. Lack of competition
C. A stable economy
D. Organizational growth
D. Organizational growth
When an organization grows or expands, it usually indicates that human resources need to grow as well. A stable economy or a lack of competition would indicate that HR should stay the same. Managerial opinion may be insightful, but it's not necessarily a solid indicator of the need for human resources changes.
Which of the following is an accurate statement about how customer records should be maintained:
A. Companies should avoid adding suppliers and competitors to customer records because it reduces the accuracy of those records.
B. Customers' addresses and phone numbers change frequently, so customer records should only be updated every three years.
C. Since customer information changes frequently, it is important to enable any employee to update customer records.
D. It's not necessary to collect full records on customers because a quick internet search can easily discover any missing information.
A. Companies should avoid adding suppliers and competitors to customer records because it reduces the accuracy of those records.
Adding suppliers and competitors to customer records could cause confusion. Supplier and competitor information should be stored in separate records where the information can be used effectively. The process of updating customer information should be limited to a few employees to ensure that changes are made accurately and that the information is kept confidential. Information changes frequently, so customer records should be updated at least once a year to maintain accurate information. Information found on the internet may not be reliable, so complete records should be created by asking the customer to provide the necessary information.
Your store is purchasing a new display case. Which type of newspaper advertisement would be most appropriate to use to sell the old display case?
A. Classified display advertising
B. Special advertising
C. Display advertising
D. Classified advertising
D. Classified advertising
This type would be best to sell the display case because the ad can be put into an appropriate category, such as used business equipment. The ad would also be at a low cost, and no illustration is needed. Display advertising is more expensive because it uses one or more elements such as illustrations, headlines, variations in type and white space. Classified display advertising includes illustrations/special typeset in addition to the ad. Special advertising usually consists of notices such as public and legal notices.
What is a communications channel used in sales promotion?
A. Television commercials
B. Discount coupons
C. Newspaper ads
D. Package labels
B. Discount coupons
Sales promotion involves promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases. Couponing is a sales promotion activity. Discount coupons are printed certificates that entitle the holder to a reduced purchase price. Coupons are a communication channel used in sales promotion because they are a means of providing information to others. Package labels, newspaper ads, and television commercials are not communications channels used in sales promotion.
Which of the following elements are needed to determine the future value of money that is placed in a savings account for one year
A. Interest rates and annual income
B. Principal amount and interest rate
C. Late fees and insurance rates
D. Quarterly wages and principal amount
D. Quarterly wages and principal amount
When a customer keeps their money in a financial institution (e.g., bank), they earn interest on the amount (principal) that they put into their savings account. The interest is paid to the customer's account by the financial institution. Over time, the customer earns money on the principal by accumulating interest, which increases the future value of the savings account. To calculate the future value of the savings account, it is necessary to know the principal amount, the interest rate, and the length of time that the principal is in the account. Quarterly wages, late fees, annual income, and insurance rates are not elements that will help a person calculate the future value of money in a savings account.
After ordering a new phone case, Heather was so satisfied with her purchase that she decided to share her opinion by writing a positive review online. She also told several of her family members, friends, and colleagues about the case. This is most likely an example of the __________ moment of truth.
A. second
B. ultimate
C. first
D. zero
B. ultimate
Heather writing a positive review of the phone case and sharing the information with her family members, friends, and colleagues is an example of the ultimate moment of truth. The ultimate moment of truth is the final stage in shaping a meaningful experience for the customer. It is when the customer begins to share their experiences with others and thus creates more zero moments of truth (the first possible moment of contact between a brand or product and the customer). When a problem arises, the customer will go searching for a solution. The first moment of truth occurs when the potential customer first comes into contact with a specific product. It focuses on the impression they form when they see the product for the first time and learn more about it. The second moment of truth takes place when the customer truly experiences what the company is offering. It is the ongoing relationship with a product and the things customers can think, see, hear, touch, or smell about the product or brand over the lifetime of the relationship.
Which of the following circumstances might be addressed in a project plan's change-management document:
A. A project's changing purpose
B. A natural disaster
C. A holiday such as Christmas or Hanukkah
D. A team member receiving a requested promotion
B. A natural disaster
A natural disaster is something that might be addressed in a project plan's changemanagement document because it is an unforeseen circumstance that can't be planned for. A holiday is a known, scheduled occurrence—a project manager can plan ahead and schedule around it. A project's purpose should not change once it is underway. A team member receiving a requested promotion would fall under risk management because it is a known possibility.