2004 MMS Exam and Key

7/21/2019 2004 MMS Exam and Key

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Test 772 2004 DECA Ontario Provincials MARKETING MANAGEMENT

1(. Deterine the assets of a business given the following inforation: cash (5;;;5 accounts receivable -5-;;5inventory 1;5;-;5 and fi2ed assets 451;;.

A. 1/5/;; C. "(5/-;B. "151-; D. "/5/-;

1). *o persuade eployees to perfor in a certain way5 anagers should appeal to the eployees%

A. needs. C. goals.B. wants. D. desires.

1-. A fre0uently used ethod of teaching individual eployees how to perfor specific ob tas#s is #nown asA. on+the+ob training. C. role+playing.B. classroo instruction. D. eployee orientation.

1/. Which of the following is confidential inforation that would be unethical for an eployee to provide to others withoutperission fro the business:

A. Posting of available positions C. Well+publici?ed e2pansion plansB. ist of eployees who will be prooted D. Dates of an upcoing special sale

1. A good way to a#e nuerical facts in a cople2 written report easy for readers to grasp is to present the facts in anE,,,,,,,,,, forat.

A. illustrated C. separateB. descriptive D. technical

14. A facility that siply holds goods until they are needed and is owned and operated by the business that uses it is called aA. public storage warehouse. C. private storage warehouse.B. public distribution center. D. private distribution center.

19. >2clusive dealing is considered illegal in all of the following e2cept if theA. sales revenue involved is si?able.B. e2clusive arrangeent is violatedF then shipents are cut off.C. anufacturer is uch larger and ore intiidating than the dealer.D. e2clusive deal bloc#s copetitors fro as uch as 1;G of the ar#et.

";. A supplier prepares an invoice with ters of (81;5 net (; on an order of four ites at 14.-; each. What is the total due if

the custoer ta#es the discountA. /)"./; C. ;4./(B. /9".-4 D. 1).-;

"1. A business that deals with fragile or perishable goods should consider using ,,,,,,,,,, storage facilities.A. special C. groundB. standard D. general

"". What is a business doing when it a#es sure a sufficient supply of advertised ites is available for a special saleA. Arranging a ethod of transportation C. Counicating inforation about a productB. Developing a relationship with a vendor D. Coordinating distribution with prootion

"(. Successful channel eber evaluations are often conducted on the basis ofA. perforance standards. C. perforance bonds.

B. personal relationships. D. international copetitiveness.

"). What type of utility is created when ownership of a product is transferred fro the seller to the buyerA. *ie C. 'orB. Possession D. Place

"-. Which of the following is considered the priary incentive for starting a business:A. Profit otive C. CopetitionB. Supply and deand D. Private property

"/. When anageent and union leaders negotiate but cannot reach an agreeent5 either one ay call for anEA. inunction. C. arbitrator.B. grievance. D. probation.


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". *he Consuer Price (;. Hr. and Hrs. Sith are planning to purchase a new5 ")+foot5 caper trailer. Which of the following types of credit would bebest for the Siths if they now have less than half the purchase price:

A. $pen credit C. @egular creditB. @evolving credit D.


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)1. $ne of the ain portions of a ar#eting report describes the data collection procedures and theA. writing styles. C. preliinary costs.B. research ethods. D. local regulations.

)". i?a has always wanted a horse5 and she has finally saved enough oney to buy one. nvironental scanning D. Psychological profiling

)). An iportant tool used in forecasting sales is the business%sA. past sales. C. credit ters.B. profit argin. D. planned purchases.

)-. What is the aor reason that people lose their obsA. *hey lac# technical #nowledge. C. *hey cannot carry out ob tas#s.B. *hey are unable to counicate. D. *hey are unable to get along with others.

)/. As eployees go about their daily activities5 their actions should be driven by whether the actions willA. be witnessed by custoers. C. benefit the business.B. result in additional sales. D. result in custoer satisfaction.

). Businesses should view negotiation as a way toA. get soething done. C. get the action they want.B. build strong relationships. D. #eep negative people 0uiet.

)4. *he nuber of people who are supervised by an individual is calledA. accountability. C. unity of coand.B. span of control. D. line+and+staff organi?ation.

)9. Brown%s Departent Store has deterined that full+tie salespeople in the en%s departent should achieve sales of

1)/ per hour. *his is an e2aple of anE ,,,,,,,,,, ob standard.A. 0ualitative C. specificB. attitudinal D. 0uantitative

-;. *he ain advantage of e2ternal recruiting of eployees over internal recruiting is that itA. is less e2pensive. C. retains good eployees.B. encourages eployees to see# prootions. D. brings in ore applicants.

-1. Which of the following is a benefit of hiring the right eployee for a ob:A.


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--. Which of the following is a beginning step to ta#e in handling an eployee coplaint:A. Consider all possible solutionsB. Docuent the resolution to the coplaintC. lectronic ar#ing

B. $ptical scanning D. Hagnetic transferring

/-. *he aount that a seller charges for a good or a service is #nown asA. cost of goods. C. profit.B. selling price. D. cash flow.

//. A seasonal discount entitles a business to a 1-G reduction in the price of holiday decorations. What would be the finalcost to the business for an order of holiday ites priced at 15";;

A. 99- C. 15;)B. 15;"; D. 1519-

/. A trade discount is aA. reduction off the list price. C. prootional allowance.B. discount allowed for returned goods. D. price offered to custoers.


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/4. What is an iportant step that businesses ust ta#e in order to set the prices of goods or servicesA. $btain credit reports C. @eview advertising dataB. Iather cost inforation D. Analy?e ar#eting plans

/9. When the Pepsi copany first introduced Diet Hountain Dew5 the product was only available in one specific area. *his isan e2aple of

A. concept testing. C. test ar#eting.B. product developent. D. product screening.

;. During which of the following stages in a product%s life cycle can businesses e2pect to earn significant profits:A. Decline C. IrowthB.


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41. *he Bedford Copany wants to easure the effectiveness of a television coercial it recently ran. Which of thefollowing would the Bedford Copany be ost li#ely to use:

A. @ecall test C. Har#et testB. Portfolio test D. @ecognition test

4". Which of the following types of inforation about a business are custoers ost li#ely to believe:

A. !ews releases C. Direct ailB. Paid advertising D. *elear#eting

4(. $ne of the purposes of using contests or gaes to proote a business is that this #ind of specialty prootionA. is not regulated by any laws. C. attracts attention and creates e2citeent.

B. involves little or no e2pense. D. is li#ely to create positive public attitudes.

4). Businesses should base the obectives of a prootional plan on the inforation obtained froA. vendor surveys. C. budget analysts.B. ar#et research. D. local publicity.

4-. Which of the following is the best e2aple of the coordination of prootional activities:A. Advertising an upcoing sale a wee# ahead of tieB. Ksing personal selling to earn a sales coission

C. $btaining publicity for the fir%s new product lineD. Sending out saples of a new product that is on display

4/. Which of the following is an e2aple of cooperative advertising: A. *e2aco%s offer of a 1;G senior citi?ens% discount on *uesdays

B. A Petro+Canada station%s coupon for free glasses with a gasoline fill+upC. Shell $il Copany%s paying -;G of the cost of a Shell station%s prootionD. A BP station%s advertising a free 0uart of oil with the purchase of three

4. ocating potential clients is referred to asA. follow+up. C. a service attitude.B. prospecting. D. a sales presentation.

44. Salespeople who give e2pensive gifts to custoers in an attept to obtain their business are often considered guilty of

A. unethical behavior. C. accepting bribes.B. overstating e2penses. D. violating local laws.

49. A representative for a weight+loss progra ight be re0uired to eet with at least "- clients per wee#. *his is an e2apleof anE ,,,,,,,,,, 0uota.

A. profit C. activityB. financial D. e2pense8budget

9;. When a salesperson e2plains to a custoer that a product is safe for all age groups to use5 the salesperson is pointing outanE ,,,,,,,,,, benefit.

A. obvious C. costlyB. e2clusive D. hidden

91.


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9).


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Test 772 2004 DECA Ontario Provincials MARKETING MANAGEMENT KEY

1;;. Which of the following instructional ethods is considered the ost effective way to teach selling s#ills in a classroosetting: A. ectures C. Case studies B. @ole+playing D. Prograed instruction

1. APlacing the order. Placing the order cannot ta#e place until all the decisions have been ade about what to buy5 fro

who5 and for what price. Selecting the ethod of delivery5 deciding on the goods5 and negotiat+ing the price are steps inthe buying process that occur before an order is placed.S$K@C>: BA:;;S$K@C>: p. )""5 Har#eting >ssentials. 'arese5 .S.F &ibrell5 I.F Wolos?y#5 C.A.5 Ilencoe HcIraw+Jill5 (rd ed.5

";;".

". B$btaining the vendor%s agreeent to cancel orders. Canceling an order causes additional wor# for a vendor and should beavoided if possible. : pp. -1(+-1)5 Sall Business Hanageent: An >ntrepreneurial >phasis. ongenec#er5 =.I.F Hoore5 C.W.F

Petty5 =.W.5 *hoson8South+Western5 1"th ed.5 ";;(.

(. CDiscounts. A discount is the aount by which the original price of goods and services is reduced. Hany businesses offerdiscounts to custoers who pay in cash rather than with credit cards. A receipt is a written stateent that oney has beenreceived for the purchase of goods or services. A coupon is a printed for offering oney off the purchase of a specifiedite. A warranty is a proise ade by the seller to the con+suer that the seller will repair or replace a product that doesnot perfor as e2pected.S$K@C>: BA:;1-S$K@C>: HA AP -(++Calculating !et Sales

). C3alue. *he value of a business%s stoc# depends on how uch profit the business has been able to a#e over tie and thepotential of the business to continue a#ing profit. : BA:;";S$K@C>: H! AP /1++Profit+and+oss Stateents

-. B*o avoid financial crisis. Budgets are vital in preparing for financial crisis. With a budget5 a business can plan for savingsso that bills get paid even when planned sales goals aren%t et. *he oney budgeted to savings can be used to paye2penses and help avoid a financial crisis. Businesses do not budget oney to savings in order to pay stoc#holders5prevent governental control5 or satisfy custoers.S$K@C>: BA:;")S$K@C>: H! AP -9++!ature of Budgets

/. A*eawor#. *eawor# is a cooperative effort of two or ore people wor#ing together to reach a coon goal. *eawor#is iportant to business success. When eployees wor# together and with the business to iprove theselves and theproducts of the business5 the result is usually 0uality. *he cobination of continual iproveent and teawor# creates0uality products5 a 0uality atosphere in the business5 and 0uality service for the custoers. Businesses that have a0uality culture often develop goodwill with the counity and custoers. @esearch and security ay contribute toiproveent5 but teawor# is also needed to develop a 0uality culture.S$K@C>: BA:;"-S$K@C>: p. 95 Business Principles and Hanageent. >verard5 &.F Burrow5 =.5 South+Western5 11th ed.5 ";;1.

. ACellular phones. Hany businesses provide their outside salespeople with cellular phones5 which enables the business tocounicate with salespeople when they are traveling. *he benefit of using cell phones is that salespeople can call in


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orders fro distant locations or receive iportant inforation fro the business that will help the in selling to custoers.Data processing gathers and analy?es inforation but does not co+unicate with salespeople while they are traveling.'a2 achines are not widely used to counicate with salespeople while they are traveling fro one custoer to anotheralthough a business ight fa2 inforation to a salespersonOs hotel. 3oice recognition is a feature of soe cell phones.S$K@C>: BA:;(;S$K@C>: p. 1-45 Har#eting >ssentials. 'arese5 .S.F &ibrell5 I.F Wolos?y#5 C.A.5 Ilencoe HcIraw+Jill5 (rd ed.5

";;".4. B6P7 and 68P7. *he hypertag 6P7 tells the browser to begin a new paragraph and 68P7 tells it to end that paragraph.!otice there is a differenceF the end sybol includes a slash ar#. Both ar#ings are neces+sary if the browser is to wor#correctly on the page. Ksing 6P7 twice siply repeats the new paragraph hypertag. *he sybols 6startP7 and 6endP75and 6para7 and 6para7 are not hypertags.S$K@C>: BA:"1S$K@C>: !ational Center for Supercoputing Applications !CSAE. n.d.E. A Beginner's Guide to HTML. @etrieved

August -5 ";;(5 fro http:88archive.ncsa.uiuc.edu8Ieneral8: BA:;1)S$K@C>: HB AP 9++!ature of Accounting


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*est " MARKETING MANAGEMENT KEY

1). A!eeds. A need is soething re0uired or essential that is lac#ing. Hanagers should identify and appeal to eployees%needs when persuading the to perfor in a certain way. 'or e2aple5 if a anager wants to transfer an eployee toanother location5 the anager should identify what need will persuade the eployee to accept the transfer. *he need aybe basic such as ore oney to support the faily5 or the need ay be to be prooted and recogni?ed as an achiever.Hanagers are ore li#ely to successfully persuade eployees if they appeal to their needs. Wants are desires that ay oray not be re0uired. Ioals are obective to achieve.S$K@C>: C$:;")S$K@C>: pp. (")+("-5 Counicating for Success. Jyden5 =.S.F =ordan5 A.&.F Steinauer5 H.J.F

=ones5 H.=.5 South+Western >ducational Publishing5 "nd ed.5 1999.

1-. A$n+the+ob training. Businesses fre0uently use on+the+ob training to teach eployees how to perfor their obs.$n+the+ob training involves having the new eployee wor# with a ore e2perienced eployee in the real obsituation to learn the various ob tas#s by actually doing the. Classroo instruction and role+playing are ethods ofteaching groups of eployees how to perfor their obs. >ployee orientation is the overall process of ac0uaintingnew eployees with the business.S$K@C>: C$:1(9


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S$K@C>: pp. "(-+"(/5 @etailing. ewison5 D.H.5 Prentice+Jall5 /th ed.5 199.

1/. Bist of eployees who will be prooted. Certain inforation is considered confidential5 and businesses e2pect eployeeswho have access to that inforation to #eep it private. 'or e2aple5 inforation about planned prootions is confidentialand should not be divulged until the business is ready to a#e the announceent. : C$:;)(S$K@C>: pp. 14-+14/5 Succeeding in the World of Wor#: *eacher%s Wraparound >dition. &ibrell5 I.F 3ineyard5 B.S.5

Ilencoe8HcIraw+Jill5 /th ed.5 1994.

1. A: C$:;;9S$K@C>: pp. )-4+)-95 Business and Adinistrative Counication. oc#er5 &.$.5


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*est " MARKETING MANAGEMENT KEY

";. B/9".-4. ssential Hath S#ills: *eacher%s >dition. Stull5 W.A.5 South+Western >ducational

Publishing5 1999.

"1. ASpecial. *here are several types of special storage facilities that are capable of effectively storing fragile orperishable goods. Soe of these facilities provide refrigeration or controlled environents that prolong the life offragile or perishable goods. Standard5 general5 and ground storage facilities are designed to store goods that do notneed special handling.S$K@C>: DS:;1(


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*est " MARKETING MANAGEMENT KEYS$K@C>: pp. ")+"-5 'undaentals of ogistics Hanageent. abert5 D.H.F Stoc#5 [email protected]

>llra5 .H.5 : pp. )(1+)("5 Har#eting. >vans5 [email protected] Beran5 B.5 Prentice+Jall5 th ed.5 199.

"(. APerforance standards. Perforance standards5 or another for of rating syste5 provide a benchar# for easuring the0ualifications8perforance of a channel eber. *he standards also provide a eans for those sae channel ebersto copare their perforance to others. Personal relationships are not an effective way to evaluate channel ebers. Aperforance bond is a ris#+anageent easure ta#en to insure copletion of a contract. : DS:;-1S$K@C>: pp. (-)+(--5 Har#eting Hanageent. C?in#ota5 [email protected] &otabe5 H.5 South+Western Publishing Co.5 "nd ed.5

";;1.

"). BPossession. Possession utility is usefulness created when ownership of a product is transferred fro the seller to the user: >C:;;)S$K@C>: >C AP 1(++Ktility

"-. AProfit otive. *he profit otive is the hope of a#ing a profit that serves as an incentive for individuals to assue ris#sinvolved in investing in business. : >C:;1;S$K@C>: >C AP "++Profit

"/. C


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*est " MARKETING MANAGEMENT KEYArbitrator. Soeties anageent and union leaders cannot reach an agreeent. When this occurs5 either sideay call in an arbitrator5 a person who will a#e decisions concerning the final contract. : >C:;1- S$K@C>: >C AP -++$rgani?ed abor


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". A


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*est " MARKETING MANAGEMENT KEYconoics. Wilson5 =.J.F Clar#5 [email protected] South+Western >ducational Publishing5 199.

"4. D


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*est " MARKETING MANAGEMENT KEY*rends in the world econoy. *rade balances are affected by trends in the world econoy. A nation e2per+iencingeconoic growth ipacts on other nations by increasing its level of e2ports. A nation e2periencing econoic lossight be unable to purchase goods and services fro other nations5 or to produce goods to e2port. Standards ofliving5 cultural events of nations5 and doestic investents do not ipact on trade balances.


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S$K@C>: >C:;1/S$K@C>: >C AP )++: '< AP "++Credit and : ': pp. -;-+-;/5 Har#eting Practices and Principles. Hason5 @.>.F @ath5 P.H.F Justed5 S.W.F ynch5 @..5

Ilencoe5 Hacillan8HcIraw+Jill School Publishing Co.5 -th ed.5 199-.

((. C Har#eting research. Har#eting research is the systeatic gathering5 recording5 and analy?ing of data about a specific

issue5 situation5 or concern. Soe situations call for ore specific data than are generated by the ar#eting+inforationanageent systeF therefore5 ar#eting research is needed. Har#eting strategy is a plan of action for achievingar#eting goals and obectives.


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(). DSurveying a liited group of siilar respondents to represent a broader universe. : vans5 [email protected] Beran5 B.5 Prentice+Jall5 th ed.5 199.

(/. C Sales. A business whose sales are e2pected to increase #nows it ay need ore wor#ers5 while a business whose sales

are e2pected to decline or to reain the sae will not need ore wor#ers. Decisions about prootion5 finance5 andpurchases are all based on anticipated sales.S$K@C>: : : : pp. 9/+95 Har#eting @esearch: A Practical Approach for the !ew Hillenniu. Jair5 =.'.F

Bush5 @.P.F $rtinau5 D.=.5


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);. AHean5 edian5 ode. Hean is the average5 edian is the e2act iddle5 and ode is the ost coon response. Whenthe ean5 edian5 and ode coincide in statistics5 you have norally distributed data that is indicated by a syetrical5pictorial representation curveE. *he alternatives do not indicate norally distributed data.S$K@C>: : pp. )"9+)(;5 )94+-;15 Har#eting @esearch. Burns5 A.C.F Bush5 @.'.5 Prentice Jall5 (rd ed.5 ";;;.

)1. B@esearch ethods. $ne portion of a ar#eting report contains a detailed e2planation and description of the researchethods and how the data were collected. *his section should e2plain what types of secondary data were used and howthe priary data were collected 0uestionnaire5 telephone survey5 etc.E. *his section also should provide a description ofthe 0uestions that were as#ed and a profile of the people who were surveyed. A detailed description of research ethodsand data collection procedures adds credibility to the report. Har#eting reports do not describe writing styles5 outlinepreliinary costs5 or list local regulations.S$K@C>:


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). BBuild strong relationships. !egotiation can be a eans of strengthening long+ter relationships with cus+toers5suppliers5 cowor#ers5 and other businesses. !egotiation deands a spirit of cooperation. >ntering negotiation with theidea of getting a certain action5 #eeping negative people 0uiet5 or getting soething done will not produce a situation thatallows everyone to feel they have gained through the process.S$K@C>: : H!:1""S$K@C>: pp. )+-5 Hanager%s Portfolio of Hodel Perforance >valuations. *oropov5 B.5 Prentice+Jall5 1999.

-;. DBrings in ore applicants. >2ternal recruiting see#s new eployees outside the business. *his creates a larger pool ofcandidates fro which the business can choose than internal recruiting. : H!:;1S$K@C>: pp. 1()+1-95 Juan @esource Hanageent. Dessler5 I.5 Prentice Jall5 4th ed.5 ";;;.

-1. DDecreased cost of selection. Careful selection of eployees can save oney through reduced costs associated withhiring and training and through increased levels of productivity. $ther benefits of good eployee selection are reducedris# of poor eployee orale5 reduced ris# of poor ob perforance5 reduced eployee turnover5 and tie savings.S$K@C>: H!:;14S$K@C>: H! AP -1++Selecting !ew >ployees

-". A: H! AP ))++$rienting !ew >ployees

-(. Beadership is a style or way of perforing. Hanageent and leadership are not the sae5 or synonyous. Hanageentis the process of getting things done5 and it includes planning5 organi?ing5 directing5 otivating5 and controlling.eadership is a way or style of doing things that achieves the desired results. : H!:;(;S$K@C>: H! AP )1++*a#e the eadU


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-). CHaslow%s Jierarchy of !eeds. *his is the ost widely recogni?ed need+classification schee. !eeds are arranged in ahierarchy such that individuals attept to satisfy soe needs before oving on to others. *he five levels of needs arephysiological5 safety8security5 social5 estee5 and self+actuali?ation. >0uity *heory suggests that people are otivated toclose the gap between their efforts and the aount of reward they receive. >2pectancy *heory states that otivation isthe result of coparing the outcoes that one desires with one%s estiate of the prospect of attaining those desired

outcoes. Jer?berg%s *wo+'actor *heory classifies needs into two categories: hygiene factors and otivation factors.S$K@C>: H!:;"9S$K@C>: H! AP )++Staff Hotivation

--. Cployee coplaints do not always address the actual proble but only theresults of a proble. Before a coplaint can be resolved5 the proble that has caused the coplaint ust be identified.*he individual investigating the coplaint should do so in an obective anner without letting personal udgent interferein the investigation. Considering all possible solutions and docu+enting the resolution to the coplaint are later steps indealing with coplaints.S$K@C>: H!:;()S$K@C>: H! AP )-++Jandling >ployee Coplaints

-/. B

@eorder point. *he reorder point is the level at which a business needs to place an order for new supplies. *he reorderpoint will be different for each business depending on individual use of supplies5 such as wrap+ping paper and bags.Businesses want to #eep in stoc# the right aount of supplies to eet their needs without running short. &nowing thereorder point helps businesses aintain supplies at the appropriate level. *he final cost5 prie rate5 and contract price arenot involved in aintaining supplies at the appropriate level to eet needs.S$K@C>: H!:1-/S$K@C>: pp. 1;9+11;5 Jospitality Har#eting: odging. Kpchurch5 @.S.5 Ilencoe5 HcIraw+Jill5 199-.

-. ASales. A sales budget reflects the aount of oney a business e2pects to earn fro sales over a certain period of tie.*his figure usually is close to the total funds a business will have available to spend. A business starts with this figurewhen developing all other budgets because a business #nows that it cannot plan to spend ore oney than it e2pects toearn. *he incoe budget includes revenue fro sales as well as any interest fro dividends5 savings accounts5 etc. Acash budget estiates all oney coing into the business fro every possible source. A capital budget estiatese2penditures for replacing fi2ed assets such as buildings and e0uipent.S$K@C>: H!:;4(S$K@C>: p. "495 Sall Business Hanageent: An >ntrepreneur%s Iuide to Success. Hegginson5 W..F Byrd5 H.=.F

Scott5 [email protected] Hegginson5 .C.5 : H!:1/"S$K@C>: pp. --+-/5 Herchandising Hatheatics: Jigh Hargin @eturns for @etailers and 3endors. Paidar5 H.5 Delar

Publishers : pp. 1(;+1("5 >ssentials of Hanageent. DuBrin5 A.=.5 *hoson8South+Western5 /th ed.5 ";;(.


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*est " MARKETING MANAGEMENT KEY/;. D


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*est " MARKETING MANAGEMENT KEYWhat if. . . . *he what if. . . techni0ue is siilar to role+playing and is an e2cellent eans of finding all the hidden aspectsof a proble. A business anager using this techni0ue ight ta#e the ideas that were gener+ated in a brainstoringsession5 apply the to a situation5 and then as# what if. *he anager ight as# whatif the shape of the bottle was changed5 or what if children instead of adults were used in coercials. @edefin+inginvolves loo#ing at a proble fro a different angle if no solution sees apparent. *he sleep+on+it tech+ni0ue involvesputting an idea aside for a day or two. Who+said is not a techni0ue for increasing creativity.S$K@C>: PD:;1"


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S$K@C>: PD AP "++Creativity

/1. A Activities that ust be done ne2t onth. A daily L*o DoL list contains the activities that a person plans to accoplish the

ne2t day rather than in the ne2t onth. *his list should be prepared at the end of one day for the ne2t day and should bebased on the activities that appear on a wee#ly aster list5 activities that were previously scheduled for the upcoing day5

and new activities that have surfaced during the day and ust be copleted the ne2t day.S$K@C>: PD:;19S$K@C>: PD AP 1++*ie Hanageent

/". D!uber of eployees. Association dues ay be a flat fee5 a percentage of annual sales5 or a figure based upon thenuber of eployees. *he location of the business5 its age5 and the type of ownership have no bearing on tradeassociation dues.S$K@C>: PD:;(/S$K@C>: CD AP 1++*rade Associations8Professional $rgani?ations

/(. B Services. Pricing would be a relatively siple process if businesspeople only had to consider the cost of the physical

product when setting pricesF however5 they ust actually price the physical product and its asso+ciated services such ascredit5 delivery5 etc. 'eatures are the physical characteristics of a product. 3alue is the aount of satisfaction a productwill provide the custoer. Benefits are the advantages custoers obtain fro using a product.S$K@C>: P: P< AP "++Pricing

/). C>lectronic ar#ing. >lectronic ar#ing is a procedure that allows businesses to use a device to code prices onto tags ortic#ets. *hese electronically ar#ed prices can be read and processed by optical scanners at chec#out counters. *heprice inforation then is transitted through the business%s coputer syste which autoatically deletes the product froinventory. *he electronic ar#ing syste allows businesses to ain+tain accurate inforation about the product. $pticalscanning is a ethod of reading prices that are ar#ed electronically. Hagnetic transferring and digital processing are notways of attaching prices to products.S$K@C>: P: pp. )(9+));5 @etailing. ewison5 D.H.5 Prentice+Jall5 /th ed.5 199.

/-. BSelling price. Selling price is usually thought of as the dollar figure shown on the price tag of products. Cash flow is theoveent of funds into and out of a business. Cost of goods is the cost to the business of obtain+ing products for resale.Profit is the funds a business has left fro its sales incoe after paying its costs and e2penses.S$K@C>: Pssential Hath S#ills: *eacher%s >dition. Stull5 W.A.5 South+Western >ducational

Publishing5 1999.

/. A@eduction off the list price. *rade discounts are price reductions given to channel ebers as payent for servicesrendered. A prootional allowance or discount is a reduction in wholesale price in return for a retailer%s proise toproote a product. A trade discount is not a price but a reduction in price.S$K@C>: P: pp. -94+-995 Business Principles and Hanageent. >verard5 &.F Burrow5 =.5 South+Western5 11th ed.5 ";;1.

/4. BIather cost inforation. An iportant step in setting the prices of goods or services is gathering coplete inforation onthe cost of selling the good or service. *his inforation includes how uch it costs to pro+duce5 buy5 transport5 ar#et5etc.5 the specific good or service. Businesses need this inforation in order to set prices that ade0uately cover all theselling costs and also earn a profit. $btaining credit reports5 review+ing advertising data5 and analy?ing ar#eting plans


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are not steps in setting the prices of goods or services.S$K@C>: P: pp. "4-+"4/5 Har#eting Practices and Principles. Hason5 @.>.F @ath5 P.H.F Justed5 S.W.F ynch5 @..5

Ilencoe5 Hacillan8HcIraw+Jill School Publishing Co.5 -th ed.5 199-.

/9. C

*est ar#eting. *est ar#eting is the process of introducing a new product to a liited ar#et to deterine what itsacceptance will be. Concept testing is the e2ploring of the concept5 or idea5 for a product in order to obtain feedbac#.Product developent involves the creation of a new product in which a wor#ing odel ay be tested5 odified5 andretestedF production costs are estiatedF and final details of the product are planned. Product screening is the process ofconsidering each idea for a new product and discarding those that see unwor#able.S$K@C>: PH:;;1S$K@C>: PP AP -++Product8Service Planning

;. CIrowth. Irowth is the product life+cycle stage in which sales rise rapidly. During that stage5 businesses can e2pect anincrease in sales which results in significant profits. *he introduction stage is when the product first appears in thear#etplace. Decline is the stage in which sales and profits fall rapidly. Haturity is the stage where the product reaches aplateau.S$K@C>: PH:;")S$K@C>: pp. (()+((5 Conteporary Har#eting. Boone5 .>.F &urt?5 D..5 *hoson8South+Western5 11th ed.5 ";;).

1. C *o protect products and consuers. *he original intent of pac#aging was to protect the product and to pre+sent it to

consuers in an appealing anner. *oday%s pac#aging is often designed to protect the consuer5 as well5 by preventinganyone fro tapering with the product or using the product iproperly. Soe types of pac#aging do secure the contentsof the pac#age and protect products fro brea#age5 but these are secondary goals. Businesses would not want todecrease the e2tent of product usage.S$K@C>: PH:;1S$K@C>: PP AP ++Consuer Protection in Product Planning

". AA pi??a carryout added 2perience with a brand doesnot always generate sales. Consuers who have developed resistance to a brand or obect to it for soe reason are notli#ely to buy it repeatedly.S$K@C>: PH:;"1S$K@C>: PH AP /++: PH:1"/S$K@C>: PH AP 1;++Building Mour Business%s Brand


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-. D Select appropriate products. Prootion helps the custoer deterine which product is the right one for hi8 her5 or the

ost appropriate. Prootion introduces new products to consuers and assists with decision a#ing. : P@ AP "++Prootion

/. DPersonal selling. Products sold to industrial consuers are usually technical5 e2pensive5 and re0uire deon+stration.Because of these characteristics5 personal selling should be ephasi?ed. *he alternatives could be used to supportpersonal selling.S$K@C>: P@:;;(S$K@C>: P@ AP 1++Prootional Hi2

. CMoung children have a liited ability to evaluate inforation. *heir understanding is often literal5 and any ties theyaccept what they hear without 0uestion. *o be ethical5 advertisers should be truthful and not islead children.>2aggerated clais do not necessarily give ore details. Children often believe what they are told. Hany of the havethe capacity to understand detailed inforation.

S$K@C>: P@:;99S$K@C>: Children%s Advisory @eview Knit. ";;15 DeceberE. Self-egulator! Guidelines for "#ildren's Advertising.@etrieved August -5 ";;(5 fro http:88www.caru.org8guidelines8inde2.asp

4. CSlogan. A slogan is a phrase that is easy to reeber. : P@ AP ++Parts of Print Ads

9. CHa#e sure the copy includes as any clichNs as possible. *ry to eliinate clichNsRoverused e2pressions such asLguaranteed lowest price anywhere.L Copy should contain accurate inforationF avoid isleading the reader by usingisleading stateents or withholding inforation consuers need in order to copare productsF and be free fro spelling5punctuation5 and graatical errors.S$K@C>: P@:;1/S$K@C>: P@ AP 9++Preparing Print Ad Copy

4;. D$utdoor and transit edia. $utdoor and transit edia offer any cost+effective choices5 such as billboards located onbusy streets or ads on the sides of buses5 and would be highly visible to the healthy5 active people who are out enoyingthe suer. *elevision spots are not cost+effective5 and viewing is uch lower in the suer because people are outenoying the warer weather. Direct ail is li#ely to be thrown out as un# ail by busy people. *he advertising costs fornational aga?ines tend to be 0uite high.S$K@C>: P@:;;9S$K@C>: P@ AP /++Calculating Hedia Costs

41. A@ecall test. A recall test involves as#ing consuers whether they reeber an advertiseent. *he test ay include0uestions about specific aspects of the ad in order to deterine the ad%s ipact. A portfolio test is used to pretest adsbefore they are presented. A recognition test is used to evaluate the effectiveness of print advertiseents. A ar#et testintroduces a product to a liited target ar#et in order to forecast the product%s success in the whole ar#et.S$K@C>: P@:;1(S$K@C>: pp. -(/+-(45 Principles of Har#eting. ab5 C.W. =r.F Jair5 =.'. =r.F HcDaniel5 C.5 South+Western Publishing

Co.5 "nd ed.5 199).

4". A!ews releases. A news release is a factual announceent sent to the edia to be used as a news ite. Sending outnews releases usually is a successful techni0ue because the public generally has ore confi+dence in and is ore li#ely tobelieve the news stories about the business than the business%s paid adver+tising. Paid advertising is any paid for ofnonpersonal presentation of ideas5 goods5 or services. Direct ail is a prootional ediu that coes to consuers%


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hoes in the for of letters5 catalogs5 postcards5 and folders. *elear#eting is personal selling that ta#es place over thetelephone.S$K@C>: P@:;-S$K@C>: P@ AP 1;++Writing !ews @eleases

4(. C

Attracts attention and creates e2citeent. Hany businesses use contests and gaes to attract attention and bring orecustoers into the business. *his type of specialty prootion creates e2citeent and attracts custoers5 with thepossibility of winning a pri?e. *he result of such a prootion often is increased sales because ore people are visiting thebusiness in the hopes of being a winner. *hese prootional activities should be planned with care because they ustconfor to current laws. *here are e2penses involved5 including direct ail or advertising of the prootion5 setting up thegae or contest5 deterining the winner5 and paying for the pri?esE. Public relations5 rather than specialty prootion5 isintended to create positive public attitudes.S$K@C>: P@:1;/S$K@C>: pp. )(1+)((5 Advertising Principles Practice. Wells5 W.F Burnett5 =.F Horiarty5 S.5 Prentice Jall5 /th ed.5

";;(.

4). BHar#et research. Har#et research is the gathering5 analysis5 and interpretation of inforation about a specific ar#eting0uestion or proble. Businesses use the inforation they obtain fro ar#et research to develop realistic prootionalobectives. *he research helps businesses to identify target ar#ets and to develop strategies that will effectively reachthose custoers. *he obectives should be developed before the budget is prepared in order not to scale down theobectives because of the e2pense. ocal publicity and vendor surveys do not provide the type of inforation that is usedin developing prootional obectives.S$K@C>: P@:;(S$K@C>: pp. -()+-(/5 Har#eting 'oundations and 'unctions. Burrow5 =.F >ggland5 S.5 South+Western Publishing5

199-.

4-. DSending out saples of a new product that is on display. : P@:;/S$K@C>: pp. (;"+(;)5 Har#eting >ssentials. 'arese5 .S.F &ibrell5 I.F Wolos?y#5 C.A.5 Ilencoe HcIraw+Jill5 (rd ed.

";;".

4/. CShell $il Copany%s paying -;G of the cost of a Shell station%s prootion. Cooperative advertising is an arrangeentbetween a producer or vendor and a local business to share in the costs of prootion. *he arrangeent benefits the localbusiness by a#ing its advertising dollars go further and benefits the larger copany because it can buy advertising atlocal rates. *he other alternatives are different types of proo+tions that are being carried out by service stations on theirown.S$K@C>: P@:;1S$K@C>: pp. )4/+)45 Advertising Principles Practice. Wells5 W.F Burnett5 =.F Horiarty5 S.5 Prentice Jall5 /th ed.5

";;(.

4. B Prospecting. Prospecting is the act of identifying any person or organi?ation with the potential to purchase a good or

service and copiling that inforation in an organi?ed anner for future use. 'ollow+up is contact with custoers after asales presentation regardless of whether a sale has resulted. A service attitude reflects a strong coitent to the clientand his8her needs. A sales presentation is that part of the selling process in which the salesperson shows the custoerthe benefits of a product%s features and includes the sales tal# and product deonstration.S$K@C>: S>:4"4S$K@C>: S> AP 11-++Building Clientele

44. AKnethical behavior. Host businesses have guidelines that cover specific situations that ay create ethical probles forsalespeople. $ne of these situations involves entertaining or giving gifts to custoers. Hany salespeople routinely ta#ecustoers to lunch or send the saples of new products. *hese activities are considered ethical and part of doingbusiness. Jowever5 giving custoers e2pensive gifts is usually consid+ered to be unethical because such gifts ay beconstrued as bribes. Salespeople who give e2pensive gifts are not overstating e2penses or violating local laws.


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Salespeople who give gifts ay be offering bribes rather than accepting the.S$K@C>: S>:1;/S$K@C>: pp. 44+495 'undaentals of Selling: Custoers for ife. 'utrell5 C.H.5


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*est " MARKETING MANAGEMENT KEYActivity. Activity 0uotas control the ways that salespeople use their tie and efforts. Profit 0uotas encourage salespeopleto be profit oriented5 rather than volue oriented. 'inancial 0uotas attept to relate sales to an organi?ation%s totale2penses or profit. >2pense8Budget 0uotas encourage sales+people to spend less than the allotted budget by offeringbonuses.S$K@C>: S>:4/)


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S$K@C>: S> AP 114++Sales Tuotas

9;. DJidden. Jidden benefits are advantages that cannot be seen or understood without the assistance of a salesperson. *hesafety of soe products is a benefit that ay not be apparent unless the salesperson e2plained it. *he salesperson ayneed to point out certain product features and e2plain why those features a#e the product safe in order to describe the

benefits. $bvious benefits are advantages that need little e2planation by the salesperson. An e2clusive benefit is the onlyone of its #ind. Costly is not a type of benefit.S$K@C>: S>:1;9S$K@C>: S> AP 11(++'eature+Benefit Selling

91. DCustoer. *he custoer%s situation is iportant in precall planning. : S>:;/S$K@C>: p. )-15 Har#eting: Principles and Perspectives. Bearden5 W.$.F ither trait could affect a specific purchasedecision5 but the custoer%s overall buying decisions will be dictated by his8her personality. *he salesperson%s coissionwould not affect a custoer%s decision to buy.S$K@C>: S>:41;S$K@C>: S> AP 11"++Addressing : S>:44(S$K@C>: S> AP 1;"++Ksing Buying Hotives Part


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by the ta2 rate ".-; 2 )G or .;) ".9;EF then5 add the subtotal and the sales ta2 ".-; X ".9; -.);E.S$K@C>: S>:11S$K@C>: HA AP )4++Copleting Sales Chec#s

94. A>ndless+chain. : S>:;;1S$K@C>: S> AP 11/++Prospecting

99. B*erritory B. Sales reports often contain statistical inforation about proected sales for both the business and for specificterritories. :;-/S$K@C>: pp. -";+-"5 Sales 'orce Hanageent. Churchill5 I.A.F 'ord5 !.H.F Wal#er5 $.C.F

=ohnston5 H.W.F *anner5 =.'.5


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*est " MARKETING MANAGEMENT1;;. B

@ole+playing. @ole+playing is a siulated selling situation in which one trainee plays salesperson and anotherplays custoer. *rainees are forced to becoe personally involved in a selling situation that pre+sentsprobles they are li#ely to encounter in the field. @ole+plays are often videotaped for later review. ecturesare appropriate for presenting factual inforation such as copany history or industry trends. Case studiesencourage counication aong participants and develop proble+solving s#ills. Prograed instruction isuseful in conveying #nowledge.S$K@C>: S>:;--S$K@C>: S> AP 1"(++Sales *raining

2004 MMS Exam and Key

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