ACTUAL EXAM QUESTIONS AND
ANSWERS (VERIFIED AND UPDATED)
Limited, ongoing relationships that develop when a buyer continues to purchase a product from
a seller out of habit, as long as its needs are met - ANS Functional relationships
Divides the business into small, tightly knit strategic business units (SBUs), which focus on
specific elements of the organizational process - ANS Modular structure
The process or activities by which a company adds value to a product, including production,
marketing, and the provision of after-sales service - ANS Value chain
A profit center that focuses on product offering and market segment - ANS 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 - ANS 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
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,service, and multiple source advantage (being widely recognized by your strengths) -
ANS Factors that can help a business develop a sustainable competitive advantage
The use of data in an enterprise to facilitate decision-making - ANS Business intelligence (BI)
Large, complex data sets that require non-traditional data processing software to predict trends
and forecasts - ANS 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. - ANS 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 -
ANS 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 - ANS Marketing concept
Advertising, sales promotion, and publicity, or creating new sales channels or new products -
ANS Promotional techniques
The combination of advertising, personal selling, sales promotion, and public relations used to
promote a product - ANS Promotional mix
The model assumes consumers are passive and marketers are active during most of the buying
process. - ANS The main limitation of the AIDA model
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,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. - ANS 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. - ANS Transactional selling
Focused on long-term relationship building to keep customers satisfied and consequently
convince them to return and make multiple purchases. - ANS Relationship selling
Using social styles to customize a sales approach to the specific customer - ANS Adaptive
selling
A model that categorizes people according to personality traits and how they interact with
others - ANS 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 -
ANS 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 -
ANS Drivers
Focus on "why," establish a personal relationship, demonstrate personal commitment, and work
as a team. High responsiveness and low assertiveness - ANS Amiables
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, 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 -
ANS Expressives
Sales approach where the seller becomes a trusted advisor to the customer and builds a
relationship to truly understand his or her needs - ANS Consultative selling
A prediction of the net profit attributed to the entire future relationship with a customer -
ANS Customer lifetime value (CLV)
A metric that measures how much value a business can create per customer - ANS Return on
customer investment
An innovation, service, or feature intended to make a company or product attractive to
customers - ANS Value proposition
Clear (short and direct), compelling (motivates), and differentiating (sets the offering aprt). -
ANS A value proposition should be
ROI = net profit ÷ investment × 100 - ANS Equation for ROI
A performance measure used to evaluate the efficiency of an investment or compare the
efficiency of a number of different investments - ANS Return on investment (ROI)
CLV = dollar value of purchases x gross profit percent x number of purchases - ANS Equation
for CLV
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