QUESTIONS AND (ELABORATED) WITH COMPLETE SOLUTIONS
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 - (answers)Functional relationships
Divides the business into small, tightly knit strategic business units (SBUs), which focus on specific
elements of the organizational process - (answers)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 - (answers)Value chain
A profit center that focuses on product offering and market segment - (answers)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 - (answers)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) - (answers)Factors that can help
a business develop a sustainable competitive advantage
The use of data in an enterprise to facilitate decision-making - (answers)Business intelligence (BI)
Large, complex data sets that require non-traditional data processing software to predict trends and
forecasts - (answers)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. - (answers)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 - (answers)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 - (answers)Marketing concept
Advertising, sales promotion, and publicity, or creating new sales channels or new products -
(answers)Promotional techniques
The combination of advertising, personal selling, sales promotion, and public relations used to promote
a product - (answers)Promotional mix
The model assumes consumers are passive and marketers are active during most of the buying process.
- (answers)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. - (answers)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. - (answers)Transactional selling
Focused on long-term relationship building to keep customers satisfied and consequently convince them
to return and make multiple purchases. - (answers)Relationship selling
Using social styles to customize a sales approach to the specific customer - (answers)Adaptive selling
A model that categorizes people according to personality traits and how they interact with others -
(answers)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 - (answers)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 - (answers)Drivers
Focus on "why," establish a personal relationship, demonstrate personal commitment, and work as a
team. High responsiveness and low assertiveness - (answers)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 - (answers)Expressives
Sales approach where the seller becomes a trusted advisor to the customer and builds a relationship to
truly understand his or her needs - (answers)Consultative selling
A prediction of the net profit attributed to the entire future relationship with a customer -
(answers)Customer lifetime value (CLV)
A metric that measures how much value a business can create per customer - (answers)Return on
customer investment
An innovation, service, or feature intended to make a company or product attractive to customers -
(answers)Value proposition
Clear (short and direct), compelling (motivates), and differentiating (sets the offering aprt). - (answers)A
value proposition should be
ROI = net profit ÷ investment × 100 - (answers)Equation for ROI
A performance measure used to evaluate the efficiency of an investment or compare the efficiency of a
number of different investments - (answers)Return on investment (ROI)
CLV = dollar value of purchases x gross profit percent x number of purchases - (answers)Equation for CLV
, A way of bringing products or services to market so they can be purchased by consumers -
(answers)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 - (answers)Distribution channels
Their main job is to represent the producer to the final user in selling a product. - (answers)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. - (answers)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 -
(answers)Distributors
Whatever their size, retailers purchase products from market intermediaries and sell them directly to
the end user for a profit - (answers)Retailers
A salesperson who provides information to an individual who will influence the purchase decision -
(answers)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 -
(answers)Technical salespeople
A salesperson who calls on retailers and helps them display, advertise, and sell products to consumers -
(answers)Trade salespeople
People who routinely work inside the business taking orders and handling transactions - (answers)Inside
salespeople