MMS

1.If all of the individuals who own a business share unlimited liability for the business's losses, these individuals are part of a(n)

A.close corporation. C."S" corporation.

B.general partnership. D.public corporation.

2.A local store will hold its annual sale in six months, but the store will receive a sizeable discount if it purchases merchandise now. The store decides to take advantage of the discount, purchase the goods, and place them in storage. Which of the following distribution activities is being demonstrated:

A.Stock handling C.Transportation

B.Warehousing D.Inventory control

3.Packaging a product in a biodegradable or recyclable container is one way a channel member can participate in the ethical concept of

A.green marketing. C.social awareness.

B.consumer protection. D.international marketing.

4.What might result if a manufacturer wants prompt payment for goods, but the intermediary wants to defer payment for as long as possible?

A.Increased risk C.Limited variety

B.Channel conflict D.Illegal activity

5.Which of the following is often a characteristic of products that use the exclusive level of distribution strategy:

A.Available everywhere C.No service required

B.Purchased infrequently D.Priced inexpensively

6.The costs associated with Channel Member V are 15 percent of the total costs of the distribution channel for a three-month period. If the total costs for the distribution channel are $985,260 for the three-month period, what are the costs associated with Channel Member V?

A.$147,789 C.$148,150

B.$147,895 D.$148,257

7.What element of a complex written report may be important to executives who are too busy to read the entire report?

A.Summary C.Message

B.Conclusion D.Appendix

8.When conducting staff meetings, what might managers do to make sure they cover all of the topics on the agenda?

A.Limit discussion time C.Schedule an all-day session

B.Present information in visual form D.Ask for written feedback

9.Which of the following is a businesslike way for employees to handle a situation in which they must obtain information requested by customers and call the customers back:

A.Ask the customers when it would be convenient to call them

B.Tell the customers exactly when they will be called

C.Explain how much effort will be required to get the requested information

D.Ask the customers to call back if they don't receive a call within 24 hours

10.Which of the following is the best way to handle suspicious customers:

A.Serve them nonemotionally.

B.Ask simple, polite questions with options.

C.Explain and demonstrate good service as many times as you need to.

D.Help them along by not overwhelming them.

11.Roc's Burger Palace recently began accepting credit cards, which gives customers another method of payment. Accepting credit cards helps to create ___________ utility.

A.time C.possession

B.place D.form

12.An example of a country that has a socialist command economy is

A.Japan. B. Great Britain.C.China.D.North Korea.

13.The tax that businesses pay on the profits they earn is an example of __________ tax.

A.property C.sales

B.excise D.income

14.Hertz and Avis car-rental companies are considered __________ competitors.

A.unfair C.direct

B.indirect D.regulated

15.Simplified worker training, increased employee interest and satisfaction, increased production rates, and ease of transferring to similar positions are all __________ of labor specialization.

A.advantages C.types

B.risks D.categories

16.People having job skills but being out of work because the jobs that require those skills do not currently exist is an example of __________ unemployment.

A.organizational C.structural

B.national D.industrial

17.High levels of investment in new plants and equipment indicate producers expect a(n)

A.shortage of consumer goods. C.increase in retail sales.

B.decrease in retail sales. D.decrease in sales-stock ratio.

18.People adapt to new situations by ________ their behavior.

A.adjusting C.inventing

B.justifying D.overlooking

19.In every work environment, employees need to rely on one another for various reasons. This means that these workers are

A.independent. C.interrelated.

B.interdependent.D.dependable.

20.One of the reasons that teams are important to businesses is that they can increase

A.productivity. C.costs.

B.conflicts. D.procrastination.

21.Which of the following approaches would help workers involved in conflict to negotiate a solution to the problem that is satisfactory to all:

A.Being willing to compromise C.Knowing how to manipulate

B.Being determined to win D.Having a set outcome in mind

22.Which of the following is an example of economic risk:

A.Tornadoes C.Dishonesty

B.Competition D.Perishability

23.A bank denies a business owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review?

A.Budget C.Income statement

B.Balance sheet D.Operating budget

24.What is a company's return on investment if its total assets are $600,000 and its net profit is $96,000?

A.14.8% C.16%

B.13.2% D.17%

25.A business had net sales of $17,540 for the month. The cost of goods sold was $6,950, and operating expenses were $3,930. The net profit for the month is

A.$10,590. C.$13,610.

B.$6,660. D.$20,560.

26.If last year's sales totaled $2,765,000 and the company is allocating six percent of last year's sales to the new marketing budget, what is the dollar amount of the company's marketing budget?

A.$165,900 C.$197,200

B.$276,500 D.$255,600

27.Calculate the percentage rate of return on the marketing investment (ROMI) for a sales promotion, if the sales promotion generated $12,000 in revenue and all marketing expenses were $8,000.

A.60 percent C.45 percent

B.50 percent D.40 percent

28.Why do interviewers usually focus on asking questions that are related to a job applicant's performance?

A.To plan future training C.To understand complaints

B.To take remedial action D.To determine qualifications

29.A business wants to hire an employee for a newly created position. What should the supervisor first do to select the best applicant to fill the position?

A.Prepare an ad for the local newspaper. C.Contact local recruitment sources.

B.Choose employee selection devices. D.Determine the duties of the job.

30.Many businesses use their company manuals as a source of information in order to __________ new employees.

A.select C.manage

B.recruit D.orient

31.Which of the following should be done first to resolve an employee complaint:

A.Consider solutions C.Identify the problem

B.Follow up D.Check effects of solution

32.A basic requirement of a marketing-information management system is that it should

A.handle whatever amount of information the business needs.

B.operate in a hit-or-miss fashion.

C.make marketing data easily accessible to competitors.

D.provide scattered information.

33.When conducting a product/brand situation analysis, a business finds that eight out of ten consumers are willing to pay 20% more to buy the business's product than another brand. If the other brand sells for $22.50, what price could the business charge for its product?

A.$25.50 B. $27.00C.$28.50 D.$26.00

34.Measure the audience of a newspaper if it has 325,000 subscribers and 45% of them pass on the newspaper to one coworker.

A.325,000 B. 471,250C.390,300 D.423,070

35.Predict brand share if total sales in one market for a certain product are $750,000 and a business estimates that its brand will generate $250,000 in sales.

A.25% C.50%

B.33% D.47%

36.A business wanting to determine the quality of potential vendors' products might request

A.credit histories. C.samples.

B.primary data. D.premiums.

37.Which of the following is an important aspect to consider when a business begins to assess its marketing information needs:

A.Technology C.Production

B.Government D.Competition

38.Before a business begins developing a marketing-information management system, it should identify the types of data that will be

A.useful. B. trivial.C.intellectual. D.imprecise.

39.Enjoying an improved standard of living is one way that society benefits from the marketing function of

A.planning. B. buying.C.selling.D.financing.

40.The owner of a business in a small town is considering moving to a nearby larger city but is concerned that current customers will not travel the additional 50 miles. What marketing element is involved in this situation?

A.Promotion C.Product

B.Price D.Place

41.Which of the following is an aspect of a business's marketing strategy that might need to be revised to appeal to international customers:

A.Purchasing C.Advertising

B.Warehousing D.Scheduling

42.Which of the following represents division of a market on the basis of consumers' lifestyles and personalities:

A.Geographic segmentation C.Psychographic segmentation

B.Demographic segmentationD.Behavioral segmentation

43.What is a business usually better able to do when it selects a certain target market?

A.Control expenses and increase profits

B.Focus marketing decisions on a specific group of people

C.Eliminate ethical dilemmas

D.Change the variable-cost margin to quickly achieve break-even point

44.When conducting an external environmental analysis, businesses often focus on

A.marketing goals. C.industry growth.

B.previous demand. D.financial costs.

45.Which of the following questions is it important to ask to determine the business's strengths when conducting a SWOT analysis:

A.Where are we making money? C.What economic trends are beneficial to us?

B.What are our competitors doing? D.What obstacles do we face?

46.When determining whether to market its products internationally, The HIJ Company should consider economic factors such as the

A.binding trade agreements. C.currency exchange rates.

B.language barriers. D.court jurisdiction.

47.A business had $815,250 in sales last year and expects an 8% increase this year. What is the sales forecast for the coming year if prices remain the same and the business plans to spend $62,000 remodeling its offices?

A.$862,140 B. $877,250C.$880,470D.$895,630

48.An important reason why businesses set clear marketing goals and objectives is to

A.state what the business hopes to achieve. C.establish a time frame to succeed in the market.

B.decide the amount of profit to forecast. D.find out how to appeal to the right customer base.

49.Which of the following is an example of an objective that a business might develop as part of its marketing plan:

A.Control expenses to reduce next year's costs by 5%

B.Eliminate 15% of part-time workforce within six years

C.Revise pay structure to increase commission rate by 2%

D.Expand advertising to increase sales by 10% in one year

50.A business that continuously monitors its marketing plan should take corrective action when its

A.competitors are not meeting their quotas.

B.sales objectives are met for three consecutive months.

C.output is equivalent to product demand.

D.performance does not meet the established standards.

51.How have technological advancements positively impacted the marketing function?

A.Better problem solving C.Quicker response time

B.Fewer interpersonal conflicts D.Lower turnover rates

52.To increase efficiency among channel members, which type of software allows for the secure transfer of information via the Internet:

A.Client network C.Internet service provider

B.Intranet system D.Virtual private network

53.Not allowing employees to bring personal belongings into the work area helps to prevent

A.burglary. B. robbery.C.fraud. D.shoplifting.

54.What kind of conversion process is being used in an assembly line that produces soft drinks?

A.Unit B. Labor-intensiveC.Capital-intensiveD.Batch

55.When project managers ask members of the group to give short status reports, the managers are

A.organizing activities. C.monitoring progress.

B.answering questions. D.providing information.

56.Which of the following is a reason why businesses track their operating costs:

A.To determine selling price C.To estimate property value

B.To calculate inventory needsD.To develop commission rates

57.Which of the following is a way that employees who handle sales transactions can help to save the business money:

A.Counting out too much change C.Watching for counterfeit money

B.Neglecting to validate credit cards D.Accepting third-party checks

58.What do businesses need to maintain in order to produce goods and services for customers?

A.Copies of invoices C.Schedule of accounts

B.List of vendors D.Inventory of supplies

59.When the marketing manager makes changes to a project-status report, it's important for him/her to distribute copies of the updated report to

A.all of the people who are affected by the changes.

B.the marketing staff members and sales representatives.

C.the governmental agency that regulates promotional activities.

D.all of the company's middle- and upper-level managers.

60.When a marketing department develops an operational plan for marketing activities, it is important to

A.change the marketing strategies. C.obtain the necessary external resources immediately.

B.make sure that the schedule is inflexible. D.coordinate efforts with other departments.

61.Building trust among team members is often a challenge when

A.initiating a performance evaluation. C.establishing a daily work routine.

B.setting professional goals. D.managing cross-functional projects.

62.It is important to set goals that are realistic and attainable, which means that they should be

A.challenging to your creativity.C.appropriate to you and your abilities.

B.specific rather than vague or general.D.for a specific time period.

63.Which of the following usually is a characteristic of a trade show:

A.Features specialized category of goodsC.Promotes community charitable events

B.Supports wide variety of exhibitorsD.Attracts limited number of visitors

64.An entry-level marketing professional who is interested in career advancement with his/her current employer should

A.express an interest in assuming more responsibilities.

B.ask for a promotion even if a position is not available.

C.develop positive social relationships with coworkers.

D.obtain a recommendation for the next available promotion.

65.Which of the following aspects of marketing management involves making decisions about what will be done and how it will be accomplished:

A.Organizing B. StaffingC.Planning D.Distributing

66.When marketing employees face questionable business circumstances, they apply the principles outlined in the industry's code of conduct because the code

A.prevents employees from acting socially responsible.

B.forces people to act the same way in every situation.

C.provides guidelines for ethical behavior.

D.allows the employees to adopt a new belief system.

67.When an employee always puts in a full day but never seems to get any work done, s/he needs to focus on

A.fellow workers' methods. C.worrying more about the job.

B.time management. D.delegating all responsibility.

68.Taking web-based courses, attending marketing seminars, and pursuing a master's degree are forms of

A.career advancement. C.remedial education.

B.professional development. D.social networking.

69.Developing a pricing structure that encourages customers to buy additional services that they don't need in order to obtain the original product is often a(n) __________ tactic.

A.accepted B. predatoryC.unethicalD.illegal

70.Which of the following is an example of price fixing:

A.Two different types of businesses export goods and sell the items below cost.

B.One business agrees to sell a brand item to a customer for 10 percent less than its competitor.

C.One business acquires another business so that it can expand its product line.

D.Two competing businesses agree to set the same price for similar items in their product lines.

71.Operating expenses, such as rent and utilities, that affect a firm's selling prices are called __________ costs.

A.merchandise B. fixedC.variable D.current

72.When evaluating their pricing decisions, retail merchandisers often consider the relationship between

A.cash and credit. C.assets and debts.

B.price and profit. D.expenses and costs.

73.Which of the following is a true statement concerning product/service management:

A.Small businesses usually have their own new-product departments.

B.Product-planning committees take up very little of company executives' time.

C.The smaller a business, the less time that can be devoted to product planning.

D.Venture teams are permanent departments that deal with product/service management.

74.When a business considers the feasibility of a product idea, it should determine if the product idea is consistent with the company's

A.policies. B. advertising.C.warranties. D.image.

75.The Magnuson-Moss Warranty Act of 1975 provides that warranties must

A.be interpreted. C.not give the name of the warrantor.

B.be clearly expressed. D.not state how long a period is covered.

76.The first factor that a business should consider when it is deciding if it should sell a product is the

A.promotional strategy. C.storage space.

B.taxation rate. D.market demand.

77.Carol would rather have one product but will purchase another one if her favorite item is not available. This is an example of brand

A.responsiveness. C.insistence.

B.preference. D.recognition.

78.One of the factors managers must consider when offering customer services is the cost of

A.providing the service. C.the inventory on hand.

B.operating the business. D.the product being sold.

79.Which of the following is a strategy that a business might use to position an existing product that is losing popularity:

A.Increase sales C.Promote new uses

B.Analyze attributes D.Identify competitors

80.A brand name that has been given legal protection is referred to as a

A.slogan. B. symbol.C.registered trademark. D.descriptive name.

81.Which of the following is a product-development activity that businesses usually assess:

A.Management styles C.Production capabilities

B.Communication methods D.Organizational tactics

82.Which of the following usually is one of the objectives of product development:

A.To satisfy customer needs C.To purchase component parts

B.To create qualify knockoffs D.To negotiate low prices

83.The way in which the promotional message is communicated should be

A.different each time. C.suited to the product.

B.selected by the market. D.the same in each case.

84.Carlton's Electrical Service sells highly technical and expensive computers that include additional, advanced features. What promotional mix element would most likely be used to promote the computer successfully?

A.Personal selling C.Publicity

B.Sales promotion D.Advertising

85.Critics claim that promotion poses an ethical dilemma because it encourages __________ attitudes in society.

A.resourceful B. inflexibleC.materialistic D.responsive

86.The type of copy that provides facts about a good or service is the

A.feature. B. endorsement.C.tag line. D.claim.

87.Which form of traditional direct mail is the most expensive to produce and distribute?

A.Two-color flyer B. Sales letterC.Postcard D.Four-color catalog

88.Businesses often coordinate their promotional activities in order to attract customers and

A.increase sales. C.collect data.

B.survey opinions. D.conduct research.

89.Which of the following do businesses often consider when assessing their relationship with an outside advertising agency:

A.Competitive advantage C.Creative performance

B.Product development D.Positioning technique

90.A business evaluates its promotional budget of $75,000 which currently allocates 35% of that amount to sales promotion and the remainder to advertising. If the business decides to allocate an additional 7% to advertising, what amount will be available for sales promotion?

A.$21,000 B. $26,250C.$23,750 D.$18,500

91.Samantha never uses "strong-arm tactics" or attempts to pressure her customers into making a purchase. Which characteristic of a successful salesperson does Samantha display?

A.Belief in selling as a service C.Creativity

B.Education and training D.Personal appearance

92.Salespeople who strive to provide superior service are more likely to

A.meet challenging operating quotas. C.earn the respect of their competitors.

B.build long-lasting customer relationships. D.develop long-term contracts with vendors.

93.Which of the following is a reason why some businesses prefer to have unwritten selling policies:

A.Consistency B. FlexibilityC.ConformityD.Regimentation

94.What technology allows salespeople to develop up-to-date lists of potential customers who are interested in their specific products?

A.Direct-response advertising C.Computerized presentations

B.Educational seminars D.Electronic data processing

95.Advertisements, marketing plans, marketing-research reports, information sheets, and product manuals can all be used by salespeople to

A.determine customer buying motives. C.overwhelm indecisive consumers.

B.obtain product information. D.trick customers into buying a substandard product.

96.Steve is a manager of production at the Ice-Off Company. Because his monthly bonus is based on how many ice scrapers are produced, Steve spends time each day communicating with employees who work on the assembly line to motivate them to increase their efficiency and productivity. What management function is Steve performing?

A.Directing B. StaffingC.OrganizingD.Controlling

97.A business's planners should study the competition because learning about the competition will enable the business to

A.obtain a share of the competition's market.C.offer advantages the competition doesn't offer.

B.implement the marketing concept effectively.D.remain in business when the industry has problems.

98.As one element of its marketing performance assessment system, the Corbin Company measures its product returns to net sales rate. If the total returns for a three-month period are $6,000, and net sales for the period are $200,000, what is the returns to net sales percentage?

A.5 percent B. 4 percentC.7 percent D.3 percent

99.A business's goal is to gain 25 percent of its sales through its direct-mail catalog. If the business has an overall goal of $845,600 in sales, and it is halfway through the sales period, how much revenue should the business have earned from its direct-mail catalog sales so far?

A.$200, 375 B. $211,400C.$155, 450 D.$105,700

100.Effective strategic planning involves considering the input of

A.select customers. C.the board of directors.

B.middle management. D.several sources.

2008 DECA Ontario Provincials

Test 951 MARKETING MANAGEMENT SERIES 1

2008 DECA Ontario Provincials

Test 951 MARKETING MANAGEMENT SERIES 2

1.BGeneral partnership. With a general partnership, all partners are liable for the debts of the business. If one partner refuses to pay her/his share of the debts, the other partners will be responsible for paying them. Owners of close, public, and "S" corporations have limited liability.

SOURCE:BL:003

SOURCE:BA LAP 7Own It Your Way

2.BWarehousing. Warehousing involves placing goods in safe locations until they are needed or are ready to be sold. The store will purchase the merchandise and store the stock in the warehouse until the sale. Stock handling is the loading, unloading, and handling of goods. Transportation is the act of moving anything from one place to another or the method by which it is moved. Inventory control is keeping track of the amount of stock on hand, sold, and on order.

SOURCE:CM:001

SOURCE:DS LAP 1Distribution

3.AGreen marketing. Green marketing refers to the practice of pricing, promoting, and distributing products in such a way that they do not harm the natural environment. Most manufacturers choose to participate in this practice because of their code of ethics. Consumer protection deals with safety features and product labeling standards that protect the consumer. Social awareness is a term used to describe the practice of enlightening the community of business actions to promote social welfare. International marketing refers to marketing goods and services in foreign countries.

SOURCE:CM:006

SOURCE:Pride, W.M., & Ferrell, O.C. (2000). Marketing: Concepts and strategies (2000e) [pp. 86-87]. Boston: Houghton Mifflin.

4.BChannel conflict. Channel conflict occurs when there are differences among members in the same channel of distribution. One of the causes of channel conflict is the purchase terms. For example, manufacturers often want prompt payment for goods, but intermediaries often want to defer paying the manufacturers for as long as possible. The manufacturers and the intermediaries must be able to resolve the conflict in order to distribute the products. The manufacturer and the intermediary disagreeing about payment does not result in increased risk, limited variety, or illegal activity.

SOURCE:CM:008

SOURCE:Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 371-372]. Mason, OH: South-Western.

5.BPurchased infrequently. Exclusive distribution is appropriate for specialty goods and luxury items. Products that are usually purchased infrequently and consumed over a long period of time utilize an exclusive level of distribution. The producer wants to maintain an exclusive image. Products that are purchased infrequently include expensive jewelry. Products that are available everywhere, require little or no service, and are priced inexpensively use the intensive level of distribution strategy.

SOURCE:CM:009

SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 455). New York: Glencoe/McGraw-Hill.

6.A$147,789. A total cost analysis shows a business exactly how much money is being spent and where it is spending it in the distribution channel. A cost analysis often helps a business determine if the supply channel is operating efficiently and might indicate how the business can better control costs. To calculate the costs associated with Channel Member V, multiply the total costs for the distribution channel by 15 percent ($985,260 x .15 = $147,789).

SOURCE:CM:013

SOURCE:Monczka, R., Trent, R., & Handfield, R. (2002). Purchasing and supply chain management (2nd ed.) [p. 409]. Mason, OH: South-Western.

7.ASummary. The summary of a complex written report is the element that briefly presents all the pertinent information contained in the report. It includes a succinct description of the purpose of the report, the conclusions based on research, and recommendations. Business executives often read only the summary of a complex written report in order to obtain the information they need to make decisions. The conclusion describes in detail the findings of the research. The appendix contains supporting documentation. The message is the main body of the complex written report.

SOURCE:CO:009

SOURCE:Lesikar, R.V., Pettit, J.D., Jr., & Flatley, M.E. (1999). Lesikar's basic business communication (8th ed.) [p. 359]. Boston: Irwin/McGraw-Hill.

8.ALimit discussion time. If there are a lot of important topics on the agenda, a manager might limit discussion time on each topic in order to cover all of the topics. This might involve opening the floor for 5 or 10 minutes of discussion or stopping the discussion if it goes on for a long time. If the topic cannot be resolved in that time period, a manager might table the topic and put it on the next agenda for continued discussion. The goal is to cover all of the topics while limiting the meeting to a reasonable length of time. Presenting information in visual form will not ensure that all of the topics on the agenda are covered. Staff meetings usually are an hour or so in length rather than all day. After covering all of the topics, a manager might give participants an opportunity to provide additional feedback in written form.

SOURCE:CO:140

SOURCE:Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 349-350]. Boston: Irwin/McGraw-Hill.

9.AAsk the customers when it would be convenient to call them. When employees must gather information requested by customers and call them later, the employees should ask the customers when the customers would like to be called. The call should be scheduled to suit the customers' convenience, not that of the business. The employees should explain that the information is not available at the moment but will be obtained. Explaining how much effort will be required to obtain the information sounds like a complaint about the customers' request. Employees should make sure that they follow through on their promise of a return call, rather than asking customers to call back if they don't receive a call.

SOURCE:CR:006

SOURCE:Miculka, J.H. (1999). Speaking for success (pp. 111-112). Cincinnati: South-Western Educational.

10.CExplain and demonstrate good service as many times as you need to. The best way to deal with suspicious customers is to explain and demonstrate good service as many times as you need to. Some customers just "get it" more slowly than others. Asking simple, polite questions with options is the best way to deal with argumentative customers. Serving nonemotionally is the best way to deal with insulting customers. Helping them along by not overwhelming them is the best way to deal with slow/methodical customers.

SOURCE:CR:009

SOURCE:EI LAP 1Making Mad Glad

11.CPossession. Possession utility is usefulness created when ownership of a product is transferred from the seller to the buyer. Place utility is created by making sure that goods and services are available at the place where they are needed or wanted by customers. Form utility is usefulness created by altering or changing the form or shape of a good to make it more useful to customers. Time utility is usefulness created when products are available at the time they are needed or wanted by customers.

SOURCE:EC:004

SOURCE:EC LAP 13Use It

12.BGreat Britain. A socialist command economy means that the government owns the major means of production and determines how products will be distributed, but there is private ownership of business. Japan has a market economic system. China and North Korea have communist command economic systems.

SOURCE:EC:007

SOURCE:EC LAP 17Economic Systems

13.DIncome. Income tax is a tax on profit. When businesses earn a profit from supplying goods and services to consumers, they pay a certain percentage of that profit to the government. The tax that businesses pay on the profits they earn is not an example of excise or sales tax. Property tax is a tax on material goods rather than on profit.

SOURCE:EC:072

SOURCE:Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 181-183]. Cincinnati: South-Western.

14.CDirect. Direct competition occurs between or among businesses that offer similar types of goods or services. Indirect competition occurs among businesses that offer dissimilar goods or services. There is no evidence that Hertz and Avis compete unfairly. Monopolies, in which a market is controlled by one supplier and there are no substitute products readily available, are regulated by the government.

SOURCE:EC:012

SOURCE:EC LAP 8Ready, Set, Compete!

15.AAdvantages. These advantages also include increased level of skill and increased quality of work. Disadvantages include the risks of increased interdependency, increased boredom, decreased pride in work, decreased morale, increased chance of obsolescence, and increased chance of not being able to change to similar positions. Categories, or types, of labor specialization include trade or profession, stage of production, and task.

SOURCE:EC:014

SOURCE:EC LAP 7Specialization of Labor

16.CStructural. Structural unemployment results when people have job skills but the jobs that require those skills do not currently exist. For example, if new technology eliminates the need for certain types of jobs, the people who held those jobs may be terminated. These people have skills, but the structure of the jobs has changed and they are no longer needed. National unemployment affects workers throughout the country. If a business reorganizes, certain jobs may be eliminated or combined, which may result in unemployment. Industrial is not a type of unemployment.

SOURCE:EC:082

SOURCE:McConnell, C.R., & Brue, S.L. (2005). Economics: Principles, problems, and policies (16th ed.) [pp. 136-137]. Boston: McGraw-Hill/Irwin.

17.CIncrease in retail sales. Producers are not willing to build new plants or buy new equipment unless they feel the economy is growing and expanding. The expansion phase of a business cycle is a time of economic prosperity. When there is a shortage of consumer goods, demand has exceeded supply, and the business cycle has peaked. A decrease in retail sales and a decrease in sales-to-stock ratio occur in a period of economic contraction.

SOURCE:EC:018

SOURCE:EC LAP 9Business Cycles

18.AAdjusting. People who adapt to new situations are exhibiting the ability or capacity to adjust to new circumstances. When people justify their behavior, they are explaining their actions. Explanations do not necessarily make people adaptable. Invent is a term that means to create or make up. Because everyone exhibits some form of behavior, it can be adjusted but not created or made up. When people overlook circumstances, they ignore or disregard them. People who ignore circumstances are not adapting to new situations.

SOURCE:EI:006

SOURCE:QS LAP 15Stuff Happens

19.BInterdependent. People who depend upon one another are interdependent, rather than independent. They may or may not be dependable, or reliable. They would not be interrelated, or related to each other.

SOURCE:EI:037

SOURCE:EI LAP 5Can You Relate?

20.AProductivity. Productivity is the amount and value of goods and services produced (outputs) from set amounts of resources (inputs). The overall output of all employees is often increased when businesses use teams because workers who feel they are an important part of a team often work harder and produce more. Other reasons that teams are important to businesses are that they reduce costs and workplace conflicts. Teams do not increase procrastinationputting off until tomorrow what should have been done today.

SOURCE:EI:045

SOURCE:HR LAP 26Teamwork

21.ABeing willing to compromise. Some kind of compromise is necessary to the solution of most conflicts. Individuals seeking to resolve the conflict need to be open-minded and willing to make concessions in order to find a solution that everyone involved can accept. Being determined to win at all costs, having a set outcome in mind, and trying to manipulate others in the group are negative approaches that are more likely to hinder resolution of the conflict than to resolve it.

SOURCE:EI:062

SOURCE:Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for success (2nd ed.) [p. 332]. Cincinnati: South-Western Educational.

22.BCompetition. Competition can be an economic risk to a business. For example, a business might be forced to lower its prices because a competitor introduces a new or similar product. Tornadoes and perishability are examples of natural risks. Dishonesty is an example of a human risk.

SOURCE:FI:084

SOURCE:BA LAP 2Risk Management

23.BBalance sheet. A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. This includes the liabilities, or debts, that the business owes. The bank found that the owner's current liabilities were too high to be extended. Budgets show estimated income and expenses but not what is currently owed. Income statements would include the income and expenses for a specific period of time but would not include outstanding debts.

SOURCE:FI:085

SOURCE:FI LAP 5Show Me the Money (Nature of Accounting)

24.C16%. Businesses use financial ratios as tools to review and evaluate relationships among dollars, numbers, and percentages. This information helps the business determine many things about its performance, such as its profitability. For example, if the profitability ratio is too low, the business knows that it needs to take corrective action so it can compete in the marketplace. To determine the percentage of profit that the company is making on its return on investment, it divides its net profit by its total assets ($96,000 / $600,000 = .16 or 16%).

SOURCE:FI:097

SOURCE:Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 418-419]. Cincinnati: South-Western.

25.B$6,660. Net sales for the month of $17,540, minus cost of goods sold of $6,950, equals a gross profit of $10,590 ($17,540 - $6,950 = $10,590). A gross profit of $10,590 minus operating expenses of $3,930 equals a net profit for the month of $6,660 ($10,590 - $3,930 = $6,660).

SOURCE:FI:102

SOURCE:Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 234-239). Cincinnati: South-Western Educational.

26.A$165,900. A marketing budget is an estimate of income and expenses associated with marketing activities for a specific time. One method that businesses use to allocate funds for the marketing budget is the percentage-of-sales method. This method involves allocating a set percentage of money from the previous year's sales to the marketing budget. To calculate the dollar amount of the new marketing budget, multiply $2,765,000 by 6 percent, which equals $165,900 ($2,765,000 x .06 = $165,900).

SOURCE:FI:320

SOURCE:Grewal, D., & Levy, M. (2008). Marketing (pp. 476-477). New York: McGraw-Hill.

27.B50 percent. A business would calculate the return on marketing investment (ROMI) to determine if the money that it spent on a marketing activity generated enough sales to justify the expenses. To calculate the ROMI for the sales promotion, subtract the expenses from the revenue that the sales promotion generated to obtain the profit amount ($12,000 - $8,000 = $ 4,000). Then, divide the profit by the expenses to obtain the percentage of the return on marketing investment ($4,000 / $8,000 = .5 or 50 percent).

SOURCE:FI:321

SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 528-529). New York: Glencoe/McGraw-Hill.

28.DTo determine qualifications. The purpose of an interview is to determine if the applicant meets the qualifications to perform the job. Therefore, the interview questions should relate directly to the job in terms of the applicant's education, skills, training, and work history. Businesses often take remedial action with current employees who are not performing well on the job. Applicants usually do not complain during job interviews. Interviewers usually do not plan future training while asking questions during a job interview.

SOURCE:HR:355

SOURCE:Gatewood, R.D., & Field, H.S. (2001). Human resource selection (5th ed.) [pp. 537-538]. Orlando, FL: Harcourt.

29.DDetermine the duties of the job. The business must decide exactly what the worker will be doing on the job in order to choose the job applicant whose skills are most appropriate. After the job duties are defined, the firm can decide which methods to use in screening and selecting applicants, and advertise the job opening or contact a local recruitment source for applicants.

SOURCE:HR:356

SOURCE:Gatewood, R., & Field, H.S. (2001). Human resource selection (5th ed.) [p. 18]. Orlando, FL: Harcourt.

30.DOrient. One of the main sources of printed information that businesses use in order to orient new employees is the company manual. A manual usually contains the information that a new employee needs to know about company benefits, vacation policy, absenteeism, etc. Businesses usually encourage new employees to thoroughly read the company manual because it will answer most of their questions about routine policies. Businesses do not use their company manuals as a source of information to recruit, manage, or select new employees.

SOURCE:HR:360

SOURCE:Dessler, G. (2000). Human resource management (8th ed.) [p. 249]. Upper Saddle River, NJ: Prentice Hall.

31.CIdentify the problem. The first major step in resolving employee complaints is to identify the problem. This involves demonstrating a helpful, honest attitude; showing a sincere desire to resolve the complaint; giving the employee a time frame in which to expect action to be taken; avoiding jumping to conclusions; determining the real cause of the complaint; and keeping personal judgments to a minimum. The other alternatives occur later in the complaint-handling process.

SOURCE:HR:366

SOURCE:MN LAP 45Handling Employee Complaints

32.AHandle whatever amount of information the business needs. A large company probably will need an elaborate, computerized system, while a smaller company may use microcomputers or buy information from research companies. The system should protect the information and operate continuously. Scattered information will have to be processed so that it is in a format useful to the business.

SOURCE:IM:001

SOURCE:IM LAP 2Marketing-Information Management

33.B$27.00. Businesses periodically conduct a product/brand situation analysis to determine the product's or brand's current situation. They want to know how consumers feel about a product or brand, and if they prefer to buy that brand. Businesses are able to use this information to set prices, particularly if the analysis indicates that many consumers are willing to pay more to buy a specific brand. In this example, eight out of ten consumers are willing to pay 20% more to buy a specific brand than another brand that sells for $22.50. To determine the price the business could charge for its product, multiply the price of the other brand by 20% and add that amount to the price of the other brand ($22.50 x 20% or .20 = $4.50; $22.50 + $4.50 = $27.00).

SOURCE:IM:325

SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 656). New York: Glencoe/McGraw-Hill.

34.B471,250. The audience of a newspaper includes all of the people who subscribe as well as others who read the paper but do not subscribe. Knowing the size of the audience is important to businesses when deciding which medium to use to promote their products. In this example, the newspaper has 325,000 subscribers that make up its audience. However, the newspaper has a secondary audience of people who read the paper but are not subscribers. To determine the total audience, multiply the number of subscribers by the percent that pass on the newspaper to others (325,000 x 45% or .45 = 146,250). Add that number to the number of subscribers to measure the audience (325,000 + 146,250 = 471,250).

SOURCE:IM:374

SOURCE:Lane, W.R., King, K.W., & Russell, J.T. (2005). Kleppner's advertising procedure (16th ed.) [pp. 337-339]. Upper Saddle River, NJ: Pearson/Prentice Hall.

35.B33%. Brand share is one brand's percentage of sales in a specific market. To predict brand share, divide one brand's estimate of sales by total sales in the market ($250,000 / $750,000 = .333). Then, multiply that figure by 100 to determine percent of brand share (.333 x 100 = 33%).

SOURCE:IM:384

SOURCE:Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 228-229, 262-263). Tinley Park, IL: Goodheart-Willcox.

36.CSamples. If a business is considering buying a product from a supplier, it might request that the supplier send the business a product sample. By having an actual sample of the product, the business can examine it to determine if the product meets the business's quality standards. Primary data, the supplier's credit history, and premiums will not help a business determine the quality of a particular product.

SOURCE:IM:311

SOURCE:Monczka, R., Trent, R., & Handfield, R. (2002). Purchasing and supply chain management (2nd ed.) [p. 274]. Mason, OH: South-Western.

37.DCompetition. Businesses need to understand their competitors and analyze their competitors' products in order to remain successful. Therefore, part of assessing marketing needs involves deciding what would be important to know about the competition. For example, a business might decide to obtain information about a competitor's advertising or special sales activities. Then, a business might use this information to develop similar strategies to reach the target market. Businesses usually do not consider the government, production, or technology when assessing its marketing information needs.

SOURCE:IM:182

SOURCE:Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 235-237). Tinley Park, IL: Goodheart-Willcox.

38.AUseful. Because businesses provide different products to different target markets, their marketing information needs to differ. So, before developing a marketing-information management system, a business should consider its needs and wants. A business that has limited resources (e.g., staff, money) may not be able to develop a system that has everything it wants, so it must determine which information will be the most useful. Examples of useful information are the business's sales records and customer profiles. Marketing information should be precise, but it does not need to be trivial or intellectual.

SOURCE:IM:163

SOURCE:Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [pp. 99-100]. Upper Saddle River, NJ: Prentice Hall.

39.CSelling. All businesses have something to sell, and everyone benefits from selling. Society benefits because selling raises the standard of living, which is the general conditions in which people live, the quality of life. The marketing function of selling encourages economic growth, which makes more products available. Selling also contributes to high employment, which means that more people have more money to spend on goods and services which, in turn, improves their standard of living. Buying is the process of purchasing goods and services; however, it is not a marketing function. Planning is the management function that decides what will be done and how it will be accomplished. Financing is a business function that involves determining the need for and availability of financial resources to aid in business activities.

SOURCE:MK:002

SOURCE:MK LAP 1Work the Big Six (Marketing Functions)

40.DPlace. The place, or distribution, element of marketing involves moving, storing, locating, and/or transferring ownership of goods and services. Making products available where customers are willing to go is also a concern of place. Price involves determining and adjusting prices to maximize return and meet customers' perceptions of value. Product refers to what goods, services, or ideas will be offered to customers. Promotion refers to the various strategies that marketers use to communicate information about goods, services, images, and/or ideas to achieve a desired outcome.

SOURCE:MP:001

SOURCE:IM LAP 7Pick the Mix

41.CAdvertising. Businesses often need to modify and revise their marketing strategies to appeal to international customers. A main consideration is advertising which may have its meaning changed when the message is translated into another language. Also, some colors have negative associations in some countries, while some photographs might be considered offensive. Companies that fail to consider the impact their advertising might have in other countries run the risk of insulting customers and losing business. Purchasing is a business activity responsible for obtaining goods and services. Warehousing is placing goods in safe locations until they are needed or are ready to be sold. Scheduling is the production activity that establishes the timetable to be followed in production.

SOURCE:MP:002

SOURCE:Kotler, P. (2000). Marketing management (10th ed.) [p. 383]. Upper Saddle River, NJ: Prentice Hall.

42.CPsychographic segmentation. Psychographic segmentation groups consumers by lifestyle (e.g., interest in running, health products) and personality (e.g., aggressive, passive). Behavioral segmentation is based on consumers' response to a product. Geographic segmentation is based on where the consumer lives. Demographic segmentation is based on the characteristics people have in common that affect their purchasing power.

SOURCE:MP:003

SOURCE:IM LAP 9Have We Met? (Market Identification)

43.BFocus marketing decisions on a specific group of people. The purpose of identifying a target market is to narrow the market down to only those consumers who are the most likely to buy a business's product. This information is helpful in making many marketing decisionsfrom product development to pricing strategies. Selecting a target market will not eliminate ethical dilemmas. Selecting a target market might help a business increase profits but would not necessarily help it control expenses. Changing the variable-cost margin is an operational decision unrelated to the selection of a target market.

SOURCE:MP:005

SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 23]. Woodland Hills, CA: Glencoe/McGraw-Hill.

44.CIndustry growth. Many businesses focus on industry growth when conducting an external environmental analysis because the marketing strategies that a business develops often depend on how fast the industry is growing. If an industry is growing rapidly, a business needs to develop a marketing plan to attract and maintain customers and deal with increasing competition. If the industry is at the saturation level, a business can only grow if it develops a marketing plan to try to take customers away from competitors. A business conducts an environmental analysis to determine the current situation rather than to focus on previous demand. Conducting an environmental analysis helps a business to determine its marketing goals and the financial costs involved in meeting those goals.

SOURCE:MP:008

SOURCE:Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.) [pp. 98-99]. Boston: Irwin/McGraw-Hill.

45.AWhere are we making money? A strength is any resource or capability your business has that can help you gain a competitive advantage in your industry. To discover what your business's strengths are, ask where the business is making money. If a particular location or a specific target market generates significant income, that is a strength that the business can build on to become even more successful. Businesses identify threats by asking what their competitors are doing, and what obstacles they face. Businesses identify possible opportunities by asking what economic trends are beneficial.

SOURCE:MP:010

SOURCE:IM LAP 8Analyze This! (SWOT Analysis)

46.CCurrency exchange rates. By watching economic trends, a business may find that a foreign country presents a market opportunity for the business. One economic factor that a business considers is the strength of the country's currency, or the value of the country's currency in relation to another country's currency. Businesses located in one country often do not want to market products in a country with a substantially less valuable currency because the weak currency is not worth as much. Language barriers are social factors, and trade agreements and court jurisdiction are political/legal considerations.

SOURCE:MP:011

SOURCE:Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 105-106, 108-109]. Mason, OH: Thomson/South-Western.

47.C$880,470. If the business expects an 8% increase in sales, the total forecast for the coming year is $880,470. In order to determine the total, multiply last year's sales by 8% to find the increase ($815,250 x 8% or .08 = $65,220). Then, add the amount of increase to last year's sales to calculate the forecast ($815,250 + $65,220 = $880,470). The amount of money the business will spend to remodel its offices does not have an effect on next year's sales forecast.

SOURCE:MP:013

SOURCE:IM LAP 3Nature of Sales Forecasts

48.AState what the business hopes to achieve. Clear marketing goals and objectives state what the business hopes to achieve. If businesses do not know what they want to achieve, they cannot develop marketing strategies, which are the plans of action for achieving those goals and objectives. For example, by setting a goal of increasing sales by 5% next year, a business can focus on doing what is necessary to accomplish that goal. Businesses do not set clear marketing goals and objectives to decide the amount of profit to forecast or to find out how to appeal to the right customer base. One aspect of an effective marketing goal is establishing a time frame to achieve the goal.

SOURCE:MP:015

SOURCE:Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 42]. Mason, OH: Thomson/South-Western.

49.DExpand advertising to increase sales by 10% in one year. The objectives in a marketing plan are intended to lead to sales. When preparing its marketing plan, a business develops specific objectives to follow that should be clear and measurable and that should be achieved in a certain amount of time. For example, a business will be able to monitor its expanded advertising program in order to determine if sales are increasing by the desired amount. If sales do not increase by 10% in one year, the business will be able to revise its marketing plan and establish new objectives. Reducing costs, increasing commission rates, and eliminating workers are not marketing objectives.

SOURCE:MP:018

SOURCE:Burrow, J.L. (2002). Marketing (pp. 238-243). Mason, OH: South-Western.

50.DPerformance does not meet the established standards. A marketing plan is a set of procedures or strategies for attracting the target market to the business. To determine if the strategies outlined in the marketing plan are working, the business needs to evaluate the marketing plan's performance based on the business's standards. Standards are the specifications that the business uses to compare or judge its goods or services. If the business finds that its marketing plans strategies are not working, it needs to make changes to improveit needs to take corrective action. For example, if newspaper advertising is not generating the results that the business wants, it may consider changing to radio commercials. The business does not usually need to take corrective action if the business is meeting its sales objectives and maintaining output to meet consumer demand. Although the business wants to monitor its competitors' activities, corrective action is not necessary if the competitors are losing market share.

SOURCE:MP:022

SOURCE:Churchill, G.A., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.) [pp. 543-545]. Irwin/McGraw-Hill.

51.CQuicker response time. Computer software, the Internet, scanning equipment, and cell phones are examples of technology that have facilitated response time. For example, computer software can calculate numerical data very quickly, saving marketers the time of calculating the information themselves. A business's web site provides product information that allows customers to access information any time of the day or night. This saves the customers time because they do not need to telephone or visit the business during certain hours. Technology does not reduce interpersonal conflicts, make people better problem solvers, or lower turnover rates.

SOURCE:NF:094

SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 10, 514). New York: Glencoe/McGraw-Hill.

52.DVirtual private network. Software refers to the programs that instruct computers to perform specific operations. Software that instructs the computer to transfer certain information to specific computer systems through a secure Internet exchange is a virtual private network (VPN). When channel members' computer systems are linked together by this type of software, the necessary information (e.g., purchase orders) can be transferred quickly from one channel member to another, which increases the efficiency of the entire distribution process. An Intranet software system allows information flow among a company's employees. An Internet service provider (ISP) is a company that provides access to the Internet, usually for a fee. A client network refers to a client, usually a business, which has its own Intranet.

SOURCE:NF:106

SOURCE:Gaspar, J.E., Bierman, L., Kolari, J.W., Hise, R.T., Smith, L.M., and Arrelola-Risa, A. (2006). Introduction to business (pp. 617-618). Boston: Houghton Mifflin.

53.CFraud. Fraud is deceiving or cheating an individual or a business out of money or property. Not allowing employees to bring personal belongings into the work area reduces the possibility that employees will try to conceal goods and carry them out of the business. Robbery is theft that involves the use of force, violence, or fear. Burglary is any illegal entry into a building to commit a theft. Shoplifting is theft of goods by customers.

SOURCE:OP:013

SOURCE:RM LAP 4Security Precautions

54.CCapital-intensive. Capital-intensive conversion processes depend upon the use of equipment. The mass production of soft drinks depends on the use of equipment. Labor-intensive conversion processes rely on the skills of workers. The amount of product that is produced depends on a business's method of production. Batch and unit are two of the methods of production. Unit produces one item at a time or items in small quantities. Batch is the production of items in specific amounts.

SOURCE:OP:017

SOURCE:BA LAP 1Nature of Production

55.CMonitoring progress. An important part of project management involves monitoring the progress of the project. Managers monitor the progress to make sure all the members are doing their job. One way they do this is by asking members of the group to give short status reports that explain the progress they are making in completing their assignments. Managers also answer questions and organize activities as part of project management, but these tasks do not involve asking members to give short status reports. Asking for status reports is an example of obtaining information rather than providing information.

SOURCE:OP:002

SOURCE:QS LAP 18Make It Happen

56.ATo determine selling price. One reason why businesses track their operating costs is to determine selling price. Since overhead costs are a part of the cost of doing business, they must eventually find their way back to the product. Businesses must include in the selling price all the costs involved in making and selling the product in order to realize a profit. Businesses do not track their operating costs in order to calculate inventory needs, estimate property value, or develop commission rates.

SOURCE:OP:024

SOURCE:MN LAP 57Operating Expenses

57.CWatching for counterfeit money. Employees who handle sales transactions have excellent opportunities to save the business money. They can do this by watching for counterfeit money. An employee who accepts counterfeit money actually costs a business money because the counterfeit currency is worthless. In effect, the business has given away a good or service free of charge. Most businesses do not accept third-party checks. Employees should always validate credit cards and count out the exact amount of change.

SOURCE:OP:025

SOURCE:MN LAP 56Employee Role in Expense Control

58.DInventory of supplies. All businesses need to maintain an inventory of supplies in order to produce goods and services for customers. Small businesses may only need office supplies while retailers also need supplies to wrap packages. Large manufacturing businesses need vast inventories of resources to produce products. Without an inventory of supplies, businesses will not be able to do even simple tasks. The result might be a loss of customers and a loss of income. Some businesses may need only one vendor rather than a list of vendors. Businesses do not need to maintain a schedule of accounts or copies of invoices to produce goods and services for customers.

SOURCE:OP:031

SOURCE:Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 360). Tinley Park, IL: Goodheart-Willcox.

59.AAll of the people who are affected by the changes. To maximize efficiency, busy marketing departments need to streamline their communication efforts. Because many projects occur simultaneously, the marketing manager might maintain a project-status report to keep track of all the marketing activities. Because the business's marketing team, buyers, salespeople, and vendors are often involved in certain projects, it is important that all of these people receive information that potentially affects their jobs. Therefore, anyone who is involved with a project should receive a copy of the project-status report, which may or may not include other departments' managers. In most situations, governmental agencies do not need copies of the business's project status reports.

SOURCE:OP:168

SOURCE:Gido, J., & Clements, J.P. (2003). Successful project management (2nd ed.) [p. 376]. Mason, OH: South-Western.

60.DCoordinate efforts with other departments. A marketing operational plan is a set of policies and procedures that controls and monitors the day-to-day activities relating to the marketing function. Because marketing activities often affect many aspects of the business, it is important that the operational plan include policies for communicating with other departments. For example, a sales promotion for a specific product usually affects the sales department and the purchasing department because the salespeople sell the products, and the purchasing department buys the products so they are available when they are needed. The operational plan should be flexible, and external resources should be obtained when they are needed. The business would not change marketing strategies unless the existing strategies were ineffective.

SOURCE:OP:170

SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 367). New York: Glencoe/McGraw-Hill.

61.DManaging cross-functional projects. Cross-functional projects involve working with employees from other departments to accomplish a common goal or task. Because a variety of skills and knowledge are often necessary to complete a cross-functional project, several people may become a work group or team for the duration of the project. When employees come from different departments, they have different experiences and backgrounds, so it often takes time to build trust and a sense of teamwork. Teamwork is not usually necessary when a person is setting his/her professional goals, establishing a daily work routine, and initiating a performance evaluation for one other person.

SOURCE:OP:177

SOURCE:Gibson, J.L., Ivancevich, J.M., Donnelly, J.H., & Konopaske, R. (2003). Organizations: Behavior, structure, processes (11th ed.) [pp. 234-235]. Boston: Irwin/McGraw-Hill.

62.CAppropriate to you and your abilities. You must set goals that you are capable of reaching. Setting inappropriate goals results in frustration. Having time limits, being specific, and being challenging are other characteristics of good goals.

SOURCE:PD:018

SOURCE:HR LAP 6Goal Setting

63.AFeatures specialized category of goods. Most trade shows concentrate on displaying a particular type of good or related goods. An example of a trade show would be an exhibition that featured manufacturers of computers and computer equipment and software. All of the equipment on display relates to computers and is of interest to any business that uses or wants to purchase computer systems. Trade shows are intended to attract a large number of visitors. Trade shows usually support a limited variety of exhibitors, only those related to the featured category. Trade shows do not promote community charitable events.

SOURCE:PD:036

SOURCE:CD LAP 1Trade Associations and Professional Organizations

64.AExpress an interest in assuming more responsibilities. An employee who has mastered his/her current job responsibilities and wants to pursue a career in marketing should advise his/her supervisor of an interest in assuming more responsibilities. By approaching the supervisor and expressing an interest in taking on additional duties, the employee is taking initiative, which is an important trait for individuals who want to advance their careers. Developing positive working relationships with coworkers is important, but developing social relationships does not always help the employee to advance her/his career. Asking for a promotion that is not available would not be an appropriate action. Obtaining a recommendation from another employee might be helpful for the right promotion opportunity. The next available job promotion is not always one that the employee is qualified to perform.

SOURCE:PD:132

SOURCE:Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 486-488). New York: Glencoe/McGraw-Hill.

65.CPlanning. Marketing management involves all of the systematic processes that companies use to develop and deliver products to their customers and to communicate how those products provide customer value and satisfaction. In order to implement effective marketing processes and strategies, businesses must carefully plan them. Planning is the management function of deciding what will be done and how it will be accomplished. Staffing is the management function of finding workers for the business. Organizing is the management function of setting up the way the business's work will be done. Distributing involves moving, storing, locating, and/or transferring the ownership of goods and services.

SOURCE:PD:136

SOURCE:Kotler, P., & Keller, K. L. (2006). Marketing management (12th ed.) [pp. 6-7]. Upper Saddle River, NJ: Prentice-Hall/Pearson Education.

66.CProvides guidelines for ethical behavior. Professional marketing organizations develop codes of conduct, which provide employees with guidelines about acceptable, ethical business practices. Ethics can vary by person, and situations are not always clearly right or wrong; so a written code of conduct helps clarify the industry's overall ethical standards and provides employees with guidance so they can make informed decisions. The code of conduct doctrine cannot force someone to take a certain course of action, but encourage the person to behave in a socially responsible manner while adhering to their personal beliefs.

SOURCE:PD:138

SOURCE:Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 52-53]. Mason, OH: South-Western.

67.BTime management. Organizing the workday and setting goals and priorities should improve overall job performance. Although it may be necessary to delegate some responsibility, it is seldom advisable to delegate all responsibility. Not being able to get the work done would not necessarily mean that s/he worries too little about the job; it could mean that s/he already worries too much. Methods that are successful for one worker may not be helpful to another.

SOURCE:PD:019

SOURCE:OP LAP 1About Time (Time Management in Business)

68.BProfessional development. When an individual takes steps to enhance or improve skills or traits that s/he needs to excel in her/his career or profession, the individual is engaging in professional development activities. Taking web-based courses, attending marketing seminars, and pursuing a master's degree are examples of professional development activities and forms of continuing education, not remedial education. Engaging in these activities often, but not always, helps marketing professionals advance their careers. Social relationships often form when people take classes and attend seminars; however, forming social relationships is not the primary reason for taking web-based courses, attending marketing seminars, and pursuing masters' degrees.

SOURCE:PD:147

SOURCE:Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (p. 101). New York: Glencoe/McGraw-Hill.

69.CUnethical. An unethical pricing tactic is one that is dishonest or immoral. Developing a pricing structure that encourages customers to buy additional services that they don't need in order to obtain the original product may be unethical. If customers are lead to believe that they need the additional services even though they don't, the business is deceiving customers, which is an unethical tactic. Businesses have an obligation to be fair with customers and not trick them into buying items that they don't need. Although this tactic is often unethical, it is not illegal. Predatory pricing involves setting very low prices on certain goods or services in order to hurt competitors and try to drive them out of business. This tactic is often illegal. It is not an accepted pricing tactic to encourage customers to buy items that they don't need in order to obtain the original product.

SOURCE:PI:015

SOURCE:Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.) [pp. 327-328]. Boston: Irwin/McGraw-Hill.

70.DTwo competing businesses agree to set the same price for similar items in their product lines. Price fixing is an illegal business agreement in which businesses agree on prices of their goods or services resulting in little choice for the consumer. Selling a brand item for less than a competitor sells the item, acquiring another business, and two businesses selling different products below cost are not examples of price fixing.

SOURCE:PI:017

SOURCE:Kotler, P., & Armstrong, G. (1999). Principles of marketing (8th ed.) [p. 344]. Upper Saddle River, NJ: Prentice Hall.

71.BFixed. Fixed costs are costs that are not affected by changes in sales volume. For example, rent will not increase or decrease as the firm's sales go up or down. Variable costs are costs that change according to changes in sales volume. Examples include the costs of labor, shipping, and sales commissions. Current costs or expenses are the debts of a business that are due within a relatively short period of time. Merchandise costs are the costs of buying goods for resale and are not part of operating expenses.

SOURCE:PI:002

SOURCE:PI LAP 3Factors Affecting Selling Price

72.BPrice and profit. Retailers make decisions about pricing to attract customers and sell merchandise. In most cases, retailers want to set prices at a level that will attract customers and encourage them to buy. However, they also want to set prices at a level that will earn the desired amount of profit. Therefore, the relationship between price and profit is extremely important. A very slight change in price, one way or the other, will have an impact on the amount of profit. When evaluating their pricing decisions, retailers do not consider the relationship between cash and credit or between assets and debts. Expenses and costs are the same. Retailers often consider expenses and costs, but not the relationship between them.

SOURCE:PI:057

SOURCE:Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.) [pp. 431-432]. Upper Saddle River, NJ: Prentice Hall.

73.CThe smaller a business, the less time that can be devoted to product planning. In fact, most small firms have no formal system for planning new products. Management often conducts product planning while doing other things such as checking the competition, talking with salespersons or customers, or even by looking at catalogs from other companies. One drawback of product-planning committees is that a great deal of executive time is consumed. New-product departments are typically found in large companies and often answer directly to the president of the company. Venture teams are small, separate groups formed within a business. After a product has been developed, the venture team may be disbanded.

SOURCE:PM:001

SOURCE:PP LAP 5Product/Service Planning

74.DImage. Product research and development is an expensive process for a business. Before a business invests time, personnel, and money to take an idea and turn it into a product, it must determine if the product is feasible or practical to make and market successfully. One aspect that the business must consider is if the product idea is compatible with the company's image or brand. A business addresses advertising, warranties, and policies after the product idea is deemed feasible.

SOURCE:PM:129

SOURCE:Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 281). Tinley Park, IL: Goodheart-Willcox.

75.BBe clearly expressed. The Magnuson-Moss Warranty Act provides that warranties must be clearly expressed, easy to understand, give the name of the warrantor, and state how long a period the warranty covers. The Act, thereby, provides guidelines for businesses offering warranties and guarantees with their products.

SOURCE:PM:020

SOURCE:PP LAP 4Warranties and Guarantees

76.DMarket demand. Often, a business must change its product offerings to accommodate its customers' changing wants and needs. To determine if a product change, addition, or deletion should be made, the business must evaluate the market demand for the product. If customer demand for certain goods or services is high, the business is likely to add new products or change existing products. Businesses do not usually consider taxation rates as a first or primary factor when identifying products to sell their customers. Storage space and promotional strategy are considerations after the business evaluates the market demand for a product.

SOURCE:PM:130

SOURCE:Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [p. 222]. Boston: McGraw-Hill/Irwin

77.BPreference. Brand preference is the level of brand loyalty in which customers desire one brand over another but will accept substitutes if the brand is not available. Brand insistence is the level of brand loyalty in which customers will accept only one brand. Brand recognition is the level of brand loyalty in which customers are aware of a brand but not necessarily through personal experience. Responsiveness is not a level of brand loyalty.

SOURCE:PM:021

SOURCE:PM LAP 6It's a Brand, Brand, Brand World! (The Nature of Branding)

78.AProviding the service. The cost must not outweigh the benefits the business receives for providing the service. The costs of operation, inventory, and the products are not a part of the customer-service area.

SOURCE:PM:013

SOURCE:PM LAP 1Customer Service Supersized!

79.CPromote new uses. When existing products start to lose popularity, businesses often try to develop new uses for those products and promote the new uses in order to position the product as current and worthwhile. Over the years, businesses have developed new ways to use many existing products and have positioned them as diverse and effective for several purposes. A good example is Arm & Hammer baking soda which the company promotes as also effective in eliminating odors in refrigerators. In the process of developing new uses to promote, a business would analyze the attributes of the product and identify possible competitors. Businesses use strategies, which are plans of action for achieving goals, to position existing products that are losing popularity in the hope of developing new markets and increasing sales. Increasing sales is a goal rather than a strategy.

SOURCE:PM:043

SOURCE:Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 360-361]. Mason, OH: Thomson/South-Western.

80.CRegistered trademark. A registered trademark is a brand that has been registered with the U.S. Patent and Trademark Office for legal protection. It is usually designated by the symbol . A slogan is an easily remembered message used in an advertisement. A descriptive name is a brand name that has fallen into everyday use, e.g., aspirin.

SOURCE:PM:126

SOURCE:PM LAP 10Building Your Business's Brand (Brand Development)

81.CProduction capabilities. When developing a new product, businesses assess their production capabilities to determine if they have the means to produce the product. Based on the design or specifications of a product, a business may determine that it needs to make adjustments to the production process or to the product itself in order to produce it. In some cases, a business might determine that it is impractical to produce the product because of the cost involved in producing it. Communication methods, management styles, and organizational tactics are not product-development activities that businesses usually assess.

SOURCE:PM:212

SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 637-638). New York: Glencoe/McGraw-Hill.

82.ATo satisfy customer needs. One of the main objectives of product development usually is to develop products that satisfy customer needs so customers will buy the products. Businesses develop products to sell, so it is important to develop products that customers want. If there is no market for the product, it is pointless to develop it. Therefore, the objective is to develop what customers want and need. To achieve the objective, businesses might create quality knockoffs and purchase component parts to assemble the product. Negotiating low prices is not one of the objectives of product development.

SOURCE:PM:222

SOURCE:Solomon, M.R., & Stuart, E.W. (2000). Marketing: Real people, real choices (2nd ed.) [pp. 237-243]. Upper Saddle River, NJ: Prentice Hall.

83.CSuited to the product. The method of communicating the promotional message must be appropriate to the product which is being promoted. The right method for one product might be wrong for another. The message should also be appropriate to the market, but it would not be selected by the market. If a method of communication is effective, it would not need to be different each time.

SOURCE:PR:001

SOURCE:PR LAP 2Promotion

84.APersonal selling. Personal selling should be emphasized for products having any of the following characteristics: (1) highly technical, (2) require demonstration, (3) expensive, and (4) require installation. The computer has all of these characteristics. Advertising is appropriate for inexpensive and self-service merchandise. Sales promotion is appropriate for inexpensive merchandise. Publicity is appropriate for new or improved merchandise.

SOURCE:PR:003

SOURCE:PR LAP 1Promotional Mix

85.CMaterialistic. A person has a materialistic attitude when s/he obsesses about accumulating money and/or things, which often provides him/her with a feeling of status, importance, or security. Some people think that advertising and other promotional activities encourage materialistic attitudes because the primary goal of these efforts is to get people to buy products. Critics argue that ethical issues occur when people become more concerned about obtaining things than they are about making a positive difference in the world. Although some people think that promotion encourages uncompromising, resourceful, and responsive attitudes in society, it is materialism that most often associated with ethics in a negative way.

SOURCE:PR:099

SOURCE:Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 215-216). Mason, OH: South-Western.

86.AFeature. Copy is the text of an advertisement that provides readers with information about a good or service, such as its characteristics. Feature copy is a type of advertising copy that provides the reader with detailed facts about the product. An endorsement is statement of approval by a reputable external source. A tag line is an advertisement's slogan. A claim is a brief, simple declaration about a business or product, which may include a statement about benefits.

SOURCE:PR:014

SOURCE:PR LAP 7Parts of Print Ads

87.DFour-color catalog. Direct mail is a form of advertising in which the promotional medium comes to consumers' homes or businesses. A catalog is a booklet that includes graphics, specifications, and information about a business's products. Four-color catalogs are expensive to produce because the pre-press and printing processes are more complex than they are for promotional materials that use one or two colors of ink. Also, catalogs tend to be larger and heavier than sales letters, postcards, and two-color flyers, which increases postage costs.

SOURCE:PR:089

SOURCE:O'Guinn, T.C., Allen, C.T., & Semenik, R.J. (2003). Advertising and integrated brand promotion (3rd ed.) [pp. 683-685]. Mason, OH: South-Western.

88.AIncrease sales. One of the main reasons that businesses coordinate promotional activities is to attract customers and increase sales. For example, a radio commercial promoting a special sale could be coordinated with an in-store display reminding customers of the sale. Consumers who are attracted by the promotions often make purchases and may frequent the business again. Surveying opinions and collecting data are part of conducting research and are not part of coordinating promotional activities.

SOURCE:PR:076

SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 302-304]. Woodland Hills, CA: Glencoe/McGraw-Hill.

89.CCreative performance. Businesses usually assess their relationship with an outside advertising agency on a regular basis to make sure they are satisfied with the agency's work. An important aspect to consider is the quality of the agency's creative performance. For example, do the print ads attract attention or do the television commercials generate interest? If the ads and commercials are routine and lack creativity, a business might decide that it is time to change agencies to give a new look to the business's advertising. Product development, competitive advantage, and positioning technique are issues that a business considers when evaluating its own performance in the marketplace rather than its relationship with an outside advertising agency.

SOURCE:PR:265

SOURCE:Lane, W.R., King, K.W., & Russell, J.T. (2005). Kleppner's advertising procedure (16th ed.) [pp. 190-191]. Upper Saddle River, NJ: Pearson/Prentice Hall.

90.A$21,000. Businesses often evaluate the allocation of funds for promotional activities and make changes in the amounts budgeted if necessary. The goal is to spend money on the promotional activities that most effectively achieve the business's objectives. In this situation, the business decides to allocate an additional 7% to advertising, which means it is decreasing the amount spent on sales promotion by 7%. To calculate the amount that will be available for sales promotion, subtract the percentage that will go to advertising from the current percentage for sales promotion (35% - 7% = 28%). Then, multiply the amount of the promotional budget by the new percentage ($75,000 x 28% or .28 = $21,000).

SOURCE:PR:304

SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 367-368). New York: Glencoe/McGraw-Hill.

91.ABelief in selling as a service. Samantha displays her belief in selling as a service by refusing to use "strong-arm tactics" or pressure her customers into making a purchase. Education and training, creativity, and personal appearance are all characteristics of successful salespeople, but they are not displayed by Samantha in this situation.

SOURCE:SE:017

SOURCE:SE LAP 117Sell Away (The Nature and Scope of Selling)

92.BBuild long-lasting customer relationships. Customer service refers to the activities and benefits provided by a business to its customers to create goodwill. Salespeople who service their customers by following up with them, answering questions, and showing appreciation for their business are fostering ongoing, positive relationships, which facilitates repeat sales and sales leads. Salespeople are often expected to meet sales quotas rather than operating quotas. Salespeople do not provide superior service in order to earn their competitors' respect or to develop long-term contracts with vendors.

SOURCE:SE:076

SOURCE:SE LAP 130Go Beyond the Sale

93.BFlexibility. Selling policies may be in writing or simply understood by employees. Opinions vary as to whether policies should be put in writing. Those against written policies claim they are too inflexible and restrictive. Some businesses prefer to have unwritten selling policies because of the flexibility that enables them to make frequent changes. Written selling policies tend to be more consistent, regimented, and conforming.

SOURCE:SE:932

SOURCE:SE LAP 121Selling Policies

94.DElectronic data processing. Electronic data processing allows salespeople to develop computerized databases of potential customers. Salespeople can prepare up-to-date lists of prospective customers who are interested in their products, or they can purchase computerized databases from companies that specialize in collecting such information. For example, many organizations maintain databases about their members that they sell to others. These computerized databases contain the members' names, addresses, and information about their interests that will help salespeople decide if they are qualified prospects. Salespeople often use computerized presentations to demonstrate goods and services. Direct-response advertising involves sending promotional materials through the mail. Educational seminars are not a type of technology.

SOURCE:SE:107

SOURCE:Manning, G.L., & Reece, B.L. (1998). Selling today: Building quality partnerships (p. 176). Upper Saddle River, NJ: Prentice Hall.

95.BObtain product information. Informed salespeople need to have excellent product information in order to match customer needs and wants to the appropriate products. There are many ways in which salespeople can obtain information about products, such as advertisements, marketing plans, marketing-research reports, information sheets, and product manuals. Other sources of information could include (but are not limite