ACTUAL EXAM(2025) QUESTIONS AND
(elaborated) WITH COMPLETE
SOLUTIONS
product, including production, marketing, and the provision of
after-sales service - ANSWER//Value chain A profit center that
focuses on product offering and market segment -
ANSWER//Strategic business units (SBUs) Company assets,
attributes, or abilities that are difficult to duplicate or exceed
and provide a superior or favorable long-term position over
competitors - ANSWER//Sustainable competitive advantage
Customer loyalty, location, distribution and information
systems (Getting products at a cheap price and selling them at
a reasonable price), unique merchandise, vendor relations,
customer service, and multiple source advantage (being widely
recognized by your strengths) - ANSWER//Factors that can help
a business develop a sustainable competitive advantage The
use of data in an enterprise to facilitate decision-making -
ANSWER//Business intelligence (BI) Large, complex data sets
that require non-traditional data processing software to predict
trends and forecasts - ANSWER//Big data analytics A written
code of ethics and standards. Ethics training to executives,
managers, and employees. Availability of advice on ethical
situations (advice lines or ethics offices). A system for
confidential reporting. - ANSWER//Four elements that make up
ethical behavior within an organization The careful
coordination of all promotional activities—media advertising,
sales promotion, personal selling, and public relations, as well
as direct marketing, packaging, and other forms of promotion—
to produce a consistent, unified message that is customer
focused - ANSWER//Integrated marketing communications
,(IMC) Identifying consumer needs and then producing the
goods or services that will satisfy those needs while making a
profit for the organization - ANSWER//Marketing concept
Advertising, sales promotion, and publicity, or creating new
sales channels or new products - ANSWER//Promotional
techniques The combination of advertising, personal selling,
sales promotion, and public relations used to promote a
product - ANSWER//Promotional mix The model assumes
consumers are passive and marketers are active during most of
the buying process. - ANSWER//The main limitation of the AIDA
model The AIDA model assumes that the customer experience
ends at the purchase while the six-step process considers the
after-purchase relationship with the customer. -
ANSWER//What is the main difference between the AIDA
model of the buyer's journey and the six steps model of the
buying process? Focuses on short-term, often single,
transactions. - ANSWER//Transactional selling Focused on long-
term relationship building to keep customers satisfied and
consequently convince them to return and make multiple
purchases. - ANSWER//Relationship selling Using social styles to
customize a sales approach to the specific customer -
ANSWER//Adaptive selling A model that categorizes people
according to personality traits and how they interact with
others - ANSWER//Social style matrix Focus on "how,"include
facts, do not challenge their facts, demonstrate results,
mention guarantees and warranties, give them time to decide,
communicate the pros and cons, and provide history, data,
financial details. Low responsiveness and low assertiveness -
ANSWER//Analyticals Focus on "what," get to the point quickly,
provide options, use facts, focus on results, provide timelines,
and make them feel in control. Low responsiveness and high
assertiveness - ANSWER//Drivers Focus on "why," establish a
personal relationship, demonstrate personal commitment, and
work as a team. High responsiveness and low assertiveness -
ANSWER//Amiables Focus on "who," take extra time to discuss
,everything, give them recognition and approval, ask them how
they feel about the product or service, focus on the big picture,
and use facts and figures to demonstrate what is possible. High
responsiveness and high assertiveness - ANSWER//Expressives
Sales approach where the seller becomes a trusted advisor to
the customer and builds a relationship to truly understand his
or her needs - ANSWER//Consultative selling A prediction of
the net profit attributed to the entire future relationship with a
customer - ANSWER//Customer lifetime value (CLV) A metric
that measures how much value a business can create per
customer - ANSWER//Return on customer investment An
innovation, service, or feature intended to make a company or
product attractive to customers - ANSWER//Value proposition
Clear (short and direct), compelling (motivates), and
differentiating (sets the offering aprt). - ANSWER//A value
proposition should be ROI = net profit ÷ investment × 100 -
ANSWER//Equation for ROI A performance measure used to
evaluate the efficiency of an investment or compare the
efficiency of a number of different investments -
ANSWER//Return on investment (ROI) CLV = dollar value of
purchases x gross profit percent x number of purchases -
ANSWER//Equation for CLV A way of bringing products or
services to market so they can be purchased by consumers -
ANSWER//Sales channels A chain of businesses or
intermediaries through which a good or service passes until it
reaches the final buyer or the end consumer -
ANSWER//Distribution channels Their main job is to represent
the producer to the final user in selling a product. -
ANSWER//Agents or brokers They sell the products to other
intermediaries, such as retailers, for a higher price than they
paid. They buy in bulk and store the products in their own
warehouses and storage places until it is time to resell them.
They are independently owned, and they own the products
that they sell. - ANSWER//Wholesalers They take ownership of
the product, store it, and sell it at a profit to retailers or other
, intermediaries. However, the key difference is that distributors
ally themselves to complementary products -
ANSWER//Distributors Whatever their size, retailers purchase
products from market intermediaries and sell them directly to
the end user for a profit - ANSWER//Retailers A salesperson
who provides information to an individual who will influence
the purchase decision - ANSWER//Missionary salespeople Sales
people who are experts in a specific product or service area.
They promote and sell the product by demonstrating how it
works along with the benefits it can offer potential customers -
ANSWER//Technical salespeople A salesperson who calls on
retailers and helps them display, advertise, and sell products to
consumers - ANSWER//Trade salespeople People who routinely
work inside the business taking orders and handling
transactions - ANSWER//Inside salespeople Sales personnel
who go out into the field to meet with customers -
ANSWER//Outside salespeople Maintaining a long-term
relationship with customers who purchased from the firm in
the past - ANSWER//Account management Concentrates sales
and marketing resources on a clearly defined set of target
accounts within a market and employs personalized campaigns
designed to resonate with each account - ANSWER//Account-
based marketing (ABM) Developing and maintaining long-term,
sustainable and mutually beneficial relationships with key
accounts (customer) - ANSWER//Key account management
(KAM) Clients who have not made a purchase for a specified
period of time - ANSWER//Inactive accounts Have consistent
transactions and engagement with the business -
ANSWER//Active accounts Clients who have established an
ongoing relationship with the company through its website and
may or may not have a recurring order - ANSWER//Passive
accounts Suggests that 20 percent of your activities will
account for 80 percent of your results - ANSWER//80/20 rule
The law of the vital few, or the principle of factor sparsity,