EXAM(2026) QUESTIONS AND (ELABORATED) WITH
COMPLETE SOLUTIONS
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.
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
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
Marketing concept
Advertising, sales promotion, and publicity, or creating new sales channels or new products
Promotional techniques
The combination of advertising, personal selling, sales promotion, and public relations used
to promote a product
Promotional mix
The model assumes consumers are passive and marketers are active during most of the
buying process.
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.
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.
Transactional selling
,Focused on long-term relationship building to keep customers satisfied and consequently
convince them to return and make multiple purchases.
Relationship selling
Using social styles to customize a sales approach to the specific customer
Adaptive selling
A model that categorizes people according to personality traits and how they interact with
others
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
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
Drivers
Focus on "why," establish a personal relationship, demonstrate personal commitment, and
work as a team. High responsiveness and low assertiveness
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
Expressives
Sales approach where the seller becomes a trusted advisor to the customer and builds a
relationship to truly understand his or her needs
Consultative selling
A prediction of the net profit attributed to the entire future relationship with a customer
Customer lifetime value (CLV)
A metric that measures how much value a business can create per customer
Return on customer investment
,An innovation, service, or feature intended to make a company or product attractive to
customers
Value proposition
Clear (short and direct), compelling (motivates), and differentiating (sets the offering aprt).
A value proposition should be
ROI = net profit ÷ investment × 100
Equation for ROI
A performance measure used to evaluate the efficiency of an investment or compare the
efficiency of a number of different investments
Return on investment (ROI)
CLV = dollar value of purchases x gross profit percent x number of purchases
Equation for CLV
A way of bringing products or services to market so they can be purchased by consumers
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
Distribution channels
Their main job is to represent the producer to the final user in selling a product.
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.
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
Distributors
Whatever their size, retailers purchase products from market intermediaries and sell them
directly to the end user for a profit
, Retailers
A salesperson who provides information to an individual who will influence the purchase
decision
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
Technical salespeople
A salesperson who calls on retailers and helps them display, advertise, and sell products to
consumers
Trade salespeople
People who routinely work inside the business taking orders and handling transactions
Inside salespeople
Sales personnel who go out into the field to meet with customers
Outside salespeople
Maintaining a long-term relationship with customers who purchased from the firm in the
past
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
Account-based marketing (ABM)
Developing and maintaining long-term, sustainable and mutually beneficial relationships
with key accounts (customer)
Key account management (KAM)
Clients who have not made a purchase for a specified period of time
Inactive accounts
Have consistent transactions and engagement with the business
Active accounts