SMPS CPSM Exam – Study Guide, Revision Notes, and Practice Questions for
Certification Preparation
Action Plan - correct answer ✔✔Defines the tasks that must be accomplished to implement
each strategy within the marketing plan and who will be responsible for accomplishing that
task.
Advertising agency - correct answer ✔✔Professional services agency to handle advertising,
selection is similar to AEC firm - people and technical qualifications.
Aimed at the Right Audience - correct answer ✔✔Advertising directed to those interested in
and needing your service
Alliance - correct answer ✔✔A long-term relationship between two parties for services on
several projects. Usually based on a unique service the seller can provide the client, linking the
two where the seller becomes almost an extension of the client. (EX: Design-Build Relationship)
Alternate Dispute Resolution - correct answer ✔✔Alternative methods, besides litigation, to
settle project dispute - mediation or arbitration.
Alternate Dispute Resolution Mediation - correct answer ✔✔A procedure in which the parties
submit their disputes, including details of their positions to an independent, third party
mediator. The mediator then discusses the dispute with the parties, including the mediator's
view of the strengths and weaknesses of each party's position. The mediator helps the parties
attempt to reach a settlement of their dispute. If the dispute is not settled, the next step is
arbitration or litigation, depending on the terms of the contract.
Mediation is an example of non-binding dispute resolution
,Alternate Dispute Resolution Arbitration - correct answer ✔✔In order to have a binding
arbitration agreement, the parties must, in writing, agree to submit any claims or dispute to
arbitration. Generally the parties agree to submit the arbitration to the AAA per the
Construction Industry Arbitration Rules.
Dictionary.com:
The hearing and determining of a dispute or the settling of differences between parties by a
person or persons chosen or agreed to by them.
Attention Getting - correct answer ✔✔Advertising must be: distinctive, repetitive, unique,
words and images must work together.
Audience - correct answer ✔✔To whom things are aimed. Qualify and target the audience.
Benchmarking Studies - correct answer ✔✔A standard by which something can be measured or
judged. To measure according to specified standards in order to compare it with and improve
one's product.
Benchmarking - correct answer ✔✔Is a comparative measure. Establishes a standard and shows
progress or decline. To compare one's goods, services or processes with recognized leaders in
those areas.
Brand Positioning - correct answer ✔✔One sentence distinguishes and differentiates
Brand Equity - correct answer ✔✔Good will, value and volume margins
Brochure - correct answer ✔✔Firm marketing tool to present salient facts about the firm at a
glance. Cross selling tool explains who you are and what you do.
, • Three Year shelf life
• Six months to plan and produce
Budget Goal-Based Method - correct answer ✔✔Also known as the bottom-up method, this
method assigns cost to each item in marketing plan. This method allows you to base your
budgeting on the year's business plan revenue goals and marketing plan implementation tasks.
Budget Percentage Method - correct answer ✔✔Also known as the top-down method, this
method of budgeting allocates a certain percentage of the firm's total operating revenue to
marketing. The percentage usually falls between 5 - 15%.
Budget Projection Method - correct answer ✔✔Also known as the comparison method; relies
on using the prior year's costs to develop the upcoming year's budget. This process works well if
the company is stable but it doesn't allow consideration of year's marketing planning goals or
the changing conditions of the market.
Business Plan - correct answer ✔✔The business plan establishes the firm's near-term goals,
including gross revenues, net revenues and expenditures by category and profit amounts and
percentages. Marketing plan is part of the overall business plan. Developed yearly. Should
consist of Market Segment analysis.
Contract - correct answer ✔✔An exchange of promises between two or more parties that
creates a legal obligation between them. In its simplest form, it is an offer and an acceptance.
Oral and written. Used to appropriately allocate risk and avoid ambiguity.
Signature is not a required element
Commitment - correct answer ✔✔A key leadership quality, conveyed through personal action.
Certification Preparation
Action Plan - correct answer ✔✔Defines the tasks that must be accomplished to implement
each strategy within the marketing plan and who will be responsible for accomplishing that
task.
Advertising agency - correct answer ✔✔Professional services agency to handle advertising,
selection is similar to AEC firm - people and technical qualifications.
Aimed at the Right Audience - correct answer ✔✔Advertising directed to those interested in
and needing your service
Alliance - correct answer ✔✔A long-term relationship between two parties for services on
several projects. Usually based on a unique service the seller can provide the client, linking the
two where the seller becomes almost an extension of the client. (EX: Design-Build Relationship)
Alternate Dispute Resolution - correct answer ✔✔Alternative methods, besides litigation, to
settle project dispute - mediation or arbitration.
Alternate Dispute Resolution Mediation - correct answer ✔✔A procedure in which the parties
submit their disputes, including details of their positions to an independent, third party
mediator. The mediator then discusses the dispute with the parties, including the mediator's
view of the strengths and weaknesses of each party's position. The mediator helps the parties
attempt to reach a settlement of their dispute. If the dispute is not settled, the next step is
arbitration or litigation, depending on the terms of the contract.
Mediation is an example of non-binding dispute resolution
,Alternate Dispute Resolution Arbitration - correct answer ✔✔In order to have a binding
arbitration agreement, the parties must, in writing, agree to submit any claims or dispute to
arbitration. Generally the parties agree to submit the arbitration to the AAA per the
Construction Industry Arbitration Rules.
Dictionary.com:
The hearing and determining of a dispute or the settling of differences between parties by a
person or persons chosen or agreed to by them.
Attention Getting - correct answer ✔✔Advertising must be: distinctive, repetitive, unique,
words and images must work together.
Audience - correct answer ✔✔To whom things are aimed. Qualify and target the audience.
Benchmarking Studies - correct answer ✔✔A standard by which something can be measured or
judged. To measure according to specified standards in order to compare it with and improve
one's product.
Benchmarking - correct answer ✔✔Is a comparative measure. Establishes a standard and shows
progress or decline. To compare one's goods, services or processes with recognized leaders in
those areas.
Brand Positioning - correct answer ✔✔One sentence distinguishes and differentiates
Brand Equity - correct answer ✔✔Good will, value and volume margins
Brochure - correct answer ✔✔Firm marketing tool to present salient facts about the firm at a
glance. Cross selling tool explains who you are and what you do.
, • Three Year shelf life
• Six months to plan and produce
Budget Goal-Based Method - correct answer ✔✔Also known as the bottom-up method, this
method assigns cost to each item in marketing plan. This method allows you to base your
budgeting on the year's business plan revenue goals and marketing plan implementation tasks.
Budget Percentage Method - correct answer ✔✔Also known as the top-down method, this
method of budgeting allocates a certain percentage of the firm's total operating revenue to
marketing. The percentage usually falls between 5 - 15%.
Budget Projection Method - correct answer ✔✔Also known as the comparison method; relies
on using the prior year's costs to develop the upcoming year's budget. This process works well if
the company is stable but it doesn't allow consideration of year's marketing planning goals or
the changing conditions of the market.
Business Plan - correct answer ✔✔The business plan establishes the firm's near-term goals,
including gross revenues, net revenues and expenditures by category and profit amounts and
percentages. Marketing plan is part of the overall business plan. Developed yearly. Should
consist of Market Segment analysis.
Contract - correct answer ✔✔An exchange of promises between two or more parties that
creates a legal obligation between them. In its simplest form, it is an offer and an acceptance.
Oral and written. Used to appropriately allocate risk and avoid ambiguity.
Signature is not a required element
Commitment - correct answer ✔✔A key leadership quality, conveyed through personal action.
