D.E.C.A. BMTD Ultimate Guide

Overview: The Buying and Merchandising Team Decision Making Event positions get the product into the hands of the customer through forecasting, planning, buying, displaying, selling and providing customer service.

Vertical Integration: Performing more than one marketing channel function

Organizational Chart: Diagram that depicts a company's corporate structure

Full Line Discounter: Carry low-priced brands not found in department stores; Wal Mart, Kmart

Buyer: Buys and prices merchandise; composes assortments for customer needs; prices goods to be competitive

Private Company: Few owners; stock is private; not traded on stock exchange

Direct Competing Stores: Stores that offer the same merchandise mix

Planner: Projects sales and inventories based on history and market trends

Discounter: Retailer that sells goods at prices lower than other retailers

Distributor: Allocates orders to stores

Specialty Store: Caters to the needs of a narrow group; limited number of merchandise categories

Indirect Competing Stores: Stores offer the same type of merchandise but with different assortments of brands and prices

Product Developer: Determines which products will be developed for private label

Department Store: Caters to the needs of several groups of customers

Complementary Stores: Stores that stimulate each other's sales

Public Company: Many owners or shareholders; stock traded on stock exchange

Market: Group of customers with potential to buy

Target Marketing: Responding to wants and needs of niche markets with a marketing strategy including a mix of products, services, and advertising

Basic Goods: Functional goods that rarely change and are considered necessities

Tariff: Taxes by government on imported merchandise

Wholesaler: Facilitates distribution of goods from producer to retailer

Fashion Goods: Have strong aesthetic qualities that change frequently

Private Label: Merchandise that bears the name of the retail store where sold

Branded Merchandise: Identified by a name or symbol associated with certain characteristics

Brand Extension: Producers add related products to existing line or develops a new product with the same brand name

Trade Show: Temporary exhibits of vendor's merchandise usually in a convention center or hotel; few days to a week

Advertising: Conveys message to mass consumers through newspaper, radio, or TV

Mass Market: Large group of customers with similar characteristics

Brand Loyal: Consumer consistently purchases the same brand

Niche Market: Smaller group of consumers with wants that differ from the mass market

Cash Flow: Balance of cash going in and out of an organization

Gross Margin: Difference between sales and cost of goods sold

Turnover: Number of times an average inventory is sold within a time period

Balance Sheet: Statement of assets, liabilities, and owners' equity at a particular time

Average Inventory: Average amount of inventory on hand within a given time period

Stock to Sales Ratio: Relationship between BOM and sales for the same month

Sales per Square Foot: Measures the amount of sales generated relative to the amount of space dedicated to presenting the goods

LIFO: Goods acquired at the end of the period and sold before the goods purchased at the 1st of the period

FIFO: Goods acquired at the 1st of the period and sold first

Income Statement: Statement of an organization's profit performance for a specific period

GMROI: Measures the amount of gross margin dollars generated per average dollar of inventory invested

Physical Inventory: Counting and evaluating an inventory item by item

Cost: Price retailer pays

FOB Factory: Retailer pays transportation charges from supplier factory

Markup: Amount added to the cost to establish a retail price

Cash Discount: Discount on invoice when payment is made on or before a specific date

Promotional Pricing: Discounted price that is less than the regular price

Dating: Period allowed for payment of invoice

4-5-4 Calendar: Accounting calendar used by retailers to structure their fiscal year

Invoice: Vendor's itemized statement of merchandise shipped, unit cost, extended cost, and transportation charges

Purchase Order: Agreement between retailer and vendor in which terms of merchandise, prices, delivery dates, and payment terms are specified

FOB Destination: Vendor pays transportation charge until merchandise reaches the retailer

Floor Ready Merchandise: Negotiated agreement to packaging, folding, hanging, ticketing merchandise, so that it is ready for the selling floor

Control: Measuring actual performance against goals and reacting to any deviations

Anticipation: Additional discount for paying invoice prior to cash discount period

Initial Markup: Markup added to the cost to establish the first retail price

Cumulative Discount: Discount that applies to orders placed over a period of time

Markdown: Downward adjustment in retail price

Open-to-Buy: Amount of merchandise a buyer needs to order to support planned sales

Quantity Discounts: Discount on cost of goods based on the amount of merchandise ordered

Assortment Planning: Determining the right inventory through price, style, brands, and color

Distribution Centre: Expedites and processes shipments to get merchandise to stores

Keystoning: Doubling an item's cost to establish a retail price

Vendor Partnership: Long-term relationship between the retailer and supplier to reduce distribution costs, control inventory, increase sales, and improve gross margin

Maintained Markup: Difference between the cost of merchandise and actual selling price; indicator of how well merchandise sustains markup

Cooperative Advertising: Retailer and vendor share advertising expenses

Market Segmentation: Process of identifying niche markets that are dissatisfied with current market offerings

Fashion: Expression widely accepted by a large group of people over time

Trend: Direction or movement of fashion

Positioning: The place a product occupies in the marketplace in relation to other products in the same category

Micromerchandising: Tailoring a store's product mix to a local market based on loyal tastes and demographics

Fad: Trends that rise and fall quickly in popularity

Independent Sales Rep: Manufacturers contract services through these reps to sell their goods

Classic: Long, enduring, timeless fashion

Direct Sales Force: Manufacturers' internal sales staff to sell products to retailers

Licensing Agreement: Owner of property permits producer to use property for a fee or royalty

Manufacturer: Uses labor and machinery to convert raw materials into finished products

Chain: 2 or more stores under the same ownership or identity

Bankruptcy: Occurs when a company is unable to pay its debts

Conglomerate: Referred to as a Parent Company of operating divisions called subsidiaries

Merger: 2 or more companies combine to form a new company

Off Price Discounters: Retailer that buys irregulars, 2nds, overruns, closeouts, returns, etc.

Centralization: Performing merchandising functions for a retailer from a single location

Acquisition: Takeover - One company purchases another company

Divisional Merchandise Manager: Responsible for a merchandise division; monitors sales and inventories; reports to the General Merchandise Manager

Mall: Enclosed shopping center where stores are located inside and parking surrounds

General Merchandise Manager: Vice President level; manages group related divisions

Shopping Centre: Commercial complex with onsite parking; owned and managed as a unit

Department Manager: Responsible for a department or division of a store; reports to the Store Manager

Store Manager: Responsible for the merchandise and operation of a store

Category Killer: Offers a deep assortment of branded merchandise in a single category

Manufacturers Outlet: Discount store operated by the producer

What is Buying and Why are Buyers Important in this Process?

Buying is one of the most important roles in the retail and consumer sector. It is the buyers who decide what products the company is going to sell, and from where it is going to be sourced.

What are Merchandisers?

Merchandisers will decide how the products will be displayed and packaged. Increasingly, that means looking at how the products will be displayed in shops, online or in apps, as well as deciding where to allocate stock around the network.

What is Branding?

The marketing practice of creating a name, symbol, or design that identifies and differentiates a product from other products; it's a promise to your customers.

What is Product Branding?

How a product interacts with its consumer audience through design, logo, and messaging.

What is a Distribution Channel?

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors, and even the internet itself.

What is Marketing Mix?

A combination of factors that can be controlled by a company to influence consumers to purchase its products.

Explain the nature of product/service branding.

It is how a product interacts with its consumer audience through design, logo, and messaging, and how it distinguishes itself from competitors.

Explain the nature of corporate branding.

Corporate branding refers to the practice of promoting the brand name of a corporate entity, as opposed to specific products or services. The activities and thinking that go into corporate branding are different from product and service branding because the scope of a corporate brand is typically much broader.

Describe factors used by businesses to position corporate brands.

Factors include competitive positioning, market profile (size, competitors, stage of growth), customer segments (groups with similar wants and needs), competitive analysis (strengths, weaknesses, opportunities, threats), and methods for delivering value.

What is brand equity?

The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.

What is the Presented Brand?

The company's presented brand is the communication that the company controls and that is intended for the customers to see.

What are External Brand Communications?

The information about the company that is uncontrolled by the company itself (e.g., word of mouth/publicity).

Discuss the nature of customer relationship management.

Customer relationship management involves finding customers and keeping them satisfied through various means. The sharing of customer information among businesses has led to privacy issues.

Describe the use of technology in the promotion function.

Involves finding customers and keeping them satisfied through various means. Database marketing is the element of CRM that creates and maintains customer lists from various sources.

Identify communications channels used in sales promotion.

1. Advertising

2. Sales promotion

3. Events and experiences

4. Public relations and publicity

5. Direct marketing

6. Personal selling

Identify the elements of the promotional mix.

Personal selling involves direct contact between a salesperson and customer. Advertising is a form of non-personal promotion. Public relations develop a favorable image for a company, its products, or its policies. Sales promotion includes activities that create purchases and sales.

Describe factors used by marketers to position products.

Factors include price, quality, features, benefits, competition, and relation to another product.

Explain the nature of a promotional plan.

A promotion plan outlines the promotional tools or tactics you plan to use to accomplish your marketing objectives.

Coordinate activities in the promotional mix.

All the different types of advertising.

Describe factors used by businesses to position corporate brands.

Factors include price, quality, features and benefits, and relationship to the competition.

Explain the nature and scope of the product/service management function.

Product management includes developing a product plan that defines goals and objectives, specifies tasks, resources needed, budgets, and timelines for completion.

Identify the impact of product life cycles on marketing decisions.

The product life cycle affects marketing decisions related to product mix at each stage: Introduction, Growth, Maturity, and Decline. Each stage requires management decisions and adjustments to ensure continued sales.

Explain the nature and scope of the product/service management function.

Product/service management involves obtaining, distributing, and developing products or services, maintaining and changing them throughout the product life cycle to ensure an optimal mix for the target market.

Identify the impact of product life cycles on marketing decisions.

Each stage of the product life cycle necessitates different management decisions to maintain sales and adjust the product mix:

- Introduction: Draw customer attention.

- Growth: Adjust the mix to surpass competition.

- Maturity: Address upcoming competition and customer relations.

- Decline: Decide on product retention or exit strategies.

Describe the nature of product bundling.

Product bundling offers two or more complementary goods and services at a lower price than if purchased separately.

Describe factors used by businesses to position corporate brands.

They include price, quality, features and benefits, and relationship to the competition.

Identify customer touch points.

A touch point is any time a potential customer comes in contact with your brand, including social media, testimonials, word of mouth, staff, website, billing, marketing emails, and follow-ups.

Explain the nature of product/service branding.

Product/service branding is how a product interacts with customers through design, logo, and messaging, distinguishing itself from competitors. Branding builds product recognition and customer loyalty, ensures quality and consistency, and capitalizes on brand exposure.

Describe the role of customer voice in branding.

Customer voice is important for creating branding based on customer likes and dislikes to appeal to them effectively.

Describe factors used by marketers to position products/services.

Positioning focuses on the image the product/service projects, aiming to set it apart from competition. Factors include price, quality, features, benefits, and relation to competitors.

What are the 5 Factors of Brand Positioning?

1. Brand attribution: what the brand delivers through features/benefits.

2. Consumer expectations: what people expect to receive from the brand.

3. Competitor attributes: features/benefits offered by competitors.

4. Price: your prices vs. competitor prices.

5. Consumer perceptions: perceived quality and value of the brand's products.

Identify communication channels used in sales promotion.

Includes advertising, sales promotion, events and experiences, public relations, interactive marketing, word-of-mouth marketing, and personal selling.

What is Distribution?

The process of making a product/service available for use or consumption by a consumer or business user, utilizing direct or indirect means.

What is a Direct Channel of Distribution?

Model used to move products from production to buyer without using wholesalers and retailers, eliminating parties to realize savings.

What is an Indirect Channel of Distribution?

Relies on intermediaries to perform distribution functions, where profit passes through additional steps before reaching the consumer.

Explain the relationship between customer service and channel management.

Maintain good customer service by delivering products timely and communicating effectively, ensuring correct shipping information and handling customer complaints.

Explain the nature of channels of distribution.

The path a product takes from its producer to the final destination, whether direct or indirect, involving the best means to reach the target market.

Explain the nature of channel-member relationships.

Manufacturer → Intermediaries → Consumer.

Determine factors affecting business risk.

1. Human (employees)

2. Natural

3. Economic

4. Growth rate

5. Sensitivity to the economy

6. Competitors' intensity

7. Service vs. necessary products

8. Market growth

Examples of Customer Touch Points Before Purchase.

Social Media, Ratings and Reviews, Testimonials, Word of Mouth, Community Involvement, Advertising, Marketing/PR.

Examples of Customer Touch Points During Purchase.

Store or Office, Website, Catalog, Promotions, Sales Team/Staff, Phone System, Point of Sale.

Examples of Customer Touch Points After Purchase.

Billing, Transactional Emails, Marketing Emails, Service and Support Teams, Online help center, Follow Ups, Thank You cards.

Explain the relationship between customer service and channel management.

Customer satisfaction is key for profitable businesses. Meeting customer needs requires effective channel management to deliver a product at the right time and place.

Explain the nature and scope of channel management.

Channel management supervises a product/service through manufacturing to the final user, involving manufacturers, wholesalers, retailers, and distribution methods.

Explain the role of customer service as a component of selling relationships.

Customer relationship management is vital for building customer loyalty, impacting future sales significantly.hat is Buying and Why are Buyers Important in this Process?

Buying is one of the most important roles in the retail and consumer sector. It is the buyers who decide what products the company is going to sell, and from where it is going to be sourced.

What are Merchandisers?

Merchandisers will decide how the products will be displayed and packaged. Increasingly, that means looking at how the products will be displayed in shops, online or in apps, as well as deciding where to allocate stock around the network.

What is Branding?

The marketing practice of creating a name, symbol, or design that identifies and differentiates a product from other products; it's a promise to your customers.

What is Product Branding?

How a product interacts with its consumer audience through design, logo, and messaging.

What is a Distribution Channel?

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors, and even the internet itself.

What is Marketing Mix?

A combination of factors that can be controlled by a company to influence consumers to purchase its products.

Explain the nature of product/service branding.

It is how a product interacts with its consumer audience through design, logo, and messaging, and how it distinguishes itself from competitors.

Explain the nature of corporate branding.

Corporate branding refers to the practice of promoting the brand name of a corporate entity, as opposed to specific products or services. The activities and thinking that go into corporate branding are different from product and service branding because the scope of a corporate brand is typically much broader.

Describe factors used by businesses to position corporate brands.

Factors include competitive positioning, market profile (size, competitors, stage of growth), customer segments (groups with similar wants and needs), competitive analysis (strengths, weaknesses, opportunities, threats), and methods for delivering value.

What is brand equity?

The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.

What is the Presented Brand?

The company's presented brand is the communication that the company controls and that is intended for the customers to see.

What are External Brand Communications?

The information about the company that is uncontrolled by the company itself (e.g., word of mouth/publicity).

Discuss the nature of customer relationship management.

Customer relationship management involves finding customers and keeping them satisfied through various means. The sharing of customer information among businesses has led to privacy issues.

Describe the use of technology in the promotion function.

Involves finding customers and keeping them satisfied through various means. Database marketing is the element of CRM that creates and maintains customer lists from various sources.

Identify communications channels used in sales promotion.

1. Advertising

2. Sales promotion

3. Events and experiences

4. Public relations and publicity

5. Direct marketing

6. Personal selling

Identify the elements of the promotional mix.

Personal selling involves direct contact between a salesperson and customer. Advertising is a form of non-personal promotion. Public relations develop a favorable image for a company, its products, or its policies. Sales promotion includes activities that create purchases and sales.

Describe factors used by marketers to position products.

Factors include price, quality, features, benefits, competition, and relation to another product.

Explain the nature of a promotional plan.

A promotion plan outlines the promotional tools or tactics you plan to use to accomplish your marketing objectives.

Coordinate activities in the promotional mix.

All the different types of advertising.

Describe factors used by businesses to position corporate brands.

Factors include price, quality, features and benefits, and relationship to the competition.

Explain the nature and scope of the product/service management function.

Product management includes developing a product plan that defines goals and objectives, specifies tasks, resources needed, budgets, and timelines for completion.

Identify the impact of product life cycles on marketing decisions.

The product life cycle affects marketing decisions related to product mix at each stage: Introduction, Growth, Maturity, and Decline. Each stage requires management decisions and adjustments to ensure continued sales.

Explain the nature and scope of the product/service management function.

Product/service management involves obtaining, distributing, and developing products or services, maintaining and changing them throughout the product life cycle to ensure an optimal mix for the target market.

Identify the impact of product life cycles on marketing decisions.

Each stage of the product life cycle necessitates different management decisions to maintain sales and adjust the product mix:

- Introduction: Draw customer attention.

- Growth: Adjust the mix to surpass competition.

- Maturity: Address upcoming competition and customer relations.

- Decline: Decide on product retention or exit strategies.

Describe the nature of product bundling.

Product bundling offers two or more complementary goods and services at a lower price than if purchased separately.

Describe factors used by businesses to position corporate brands.

They include price, quality, features and benefits, and relationship to the competition.

Identify customer touch points.

A touch point is any time a potential customer comes in contact with your brand, including social media, testimonials, word of mouth, staff, website, billing, marketing emails, and follow-ups.

Explain the nature of product/service branding.

Product/service branding is how a product interacts with customers through design, logo, and messaging, distinguishing itself from competitors. Branding builds product recognition and customer loyalty, ensures quality and consistency, and capitalizes on brand exposure.

Describe the role of customer voice in branding.

Customer voice is important for creating branding based on customer likes and dislikes to appeal to them effectively.

Describe factors used by marketers to position products/services.

Positioning focuses on the image the product/service projects, aiming to set it apart from competition. Factors include price, quality, features, benefits, and relation to competitors.

What are the 5 Factors of Brand Positioning?

1. Brand attribution: what the brand delivers through features/benefits.

2. Consumer expectations: what people expect to receive from the brand.

3. Competitor attributes: features/benefits offered by competitors.

4. Price: your prices vs. competitor prices.

5. Consumer perceptions: perceived quality and value of the brand's products.

Identify communication channels used in sales promotion.

Includes advertising, sales promotion, events and experiences, public relations, interactive marketing, word-of-mouth marketing, and personal selling.

What is Distribution?

The process of making a product/service available for use or consumption by a consumer or business user, utilizing direct or indirect means.

What is a Direct Channel of Distribution?

Model used to move products from production to buyer without using wholesalers and retailers, eliminating parties to realize savings.

What is an Indirect Channel of Distribution?

Relies on intermediaries to perform distribution functions, where profit passes through additional steps before reaching the consumer.

Explain the relationship between customer service and channel management.

Maintain good customer service by delivering products timely and communicating effectively, ensuring correct shipping information and handling customer complaints.

Explain the nature of channels of distribution.

The path a product takes from its producer to the final destination, whether direct or indirect, involving the best means to reach the target market.

Explain the nature of channel-member relationships.

Manufacturer → Intermediaries → Consumer.

Determine factors affecting business risk.

1. Human (employees)

2. Natural

3. Economic

4. Growth rate

5. Sensitivity to the economy

6. Competitors' intensity

7. Service vs. necessary products

8. Market growth

Examples of Customer Touch Points Before Purchase.

Social Media, Ratings and Reviews, Testimonials, Word of Mouth, Community Involvement, Advertising, Marketing/PR.

Examples of Customer Touch Points During Purchase.

Store or Office, Website, Catalog, Promotions, Sales Team/Staff, Phone System, Point of Sale.

Examples of Customer Touch Points After Purchase.

Billing, Transactional Emails, Marketing Emails, Service and Support Teams, Online help center, Follow Ups, Thank You cards.

Explain the relationship between customer service and channel management.

Customer satisfaction is key for profitable businesses. Meeting customer needs requires effective channel management to deliver a product at the right time and place.

Explain the nature and scope of channel management.

Channel management supervises a product/service through manufacturing to the final user, involving manufacturers, wholesalers, retailers, and distribution methods.

Explain the role of customer service as a component of selling relationships.

Customer relationship management is vital for building customer loyalty, impacting future sales significantly.

1. Which of the following is an important factor that affects the legal procedure: **jurisdiction**

2. The form of business organization that limits the losses or the risks of the owners is a: **Corporation**

3. Producers are able to match their production to the needs of consumers or industrial users because intermediaries: **develop an assortment of goods**

4. If a wholesaler objects to a supplier's policies restricting trade or competition, it is illegal for the supplier to: **Refuse to deal**

5. Millie is reading a book to learn how to knit. She wants to make her sister a scarf for Christmas, but it's only a week away, and she doesn't have much time. Millie decides to skip ahead of the directions, and the scarf winds up looking more like a potholder. Which of the following tips for following directions did Millie ignore: **don't rush**

6. Which of the following is an example of a good listening skill? **Asking appropriate questions**

7. What should Jake do after giving verbal directions to his classmates? **Verify their understanding**

8. When delivering an oral presentation, the speaker should: **Monitor his/her own nonverbal language**

9. A memorandum is typically used for communication that takes place: **within a business**

10. One way that employees can provide efficient, quick service to customers is by being: **organized**

11. A salesperson who frequently handles customer complaints should think of each complaint as an opportunity to: **Satisfy the customer**

12. One effect of an exclusive distribution relationship between a supplier and a retailer is that retailers are: **Forced to limit their brand selection for certain products**

13. What is one way that an efficient receiving process can help an auto-parts store to control marking expenses? **By ordering premarked goods**

14. What should receiving employees do if they find that 10 cartons of an order of paper cups have been crushed and severely damaged during shipment? **File a claim with the carrier**

15. Retailers often remove certain merchandise from the shelves at the end of each season to: **Make room for new stock**

16. Large retailers that store merchandise often keep the excess items in: **Warehouses**

17. Which of the following is the primary factor that businesses consider when determining how often to reorder goods? **Frequency of sale**

18. In which of the following ways is inventory shrinkage usually expressed? **In units**

19. Shelley has a $25 gift certificate and is having difficulty making a choice between a sweater and a pair of earrings. If she chooses the sweater, what is the opportunity cost of this decision? **Earrings**

20. Why do many socially responsible businesses offer their employees benefits such as counseling, retirement planning, and additional training? **To increase employee satisfaction**

21. What is most likely to occur when a business exhibits ethical behavior by being fair and honest? **Goodwill**

22. What was the original economic intent of communism? **The people would own everything**

23. George is trying to decide if his company should increase its production. To get an accurate idea of whether to increase production, he should chart a graph that illustrates ______ and ________. **Marginal cost; marginal revenue**

24. Low unemployment levels lead to higher wages for employees. Which often result in an increase in the: **Inflation rate**

25. What effect do tariffs and other trade barriers usually have on retailers? **They raise prices, making it more difficult to sell those goods**

26. The way you feel about your view of yourself is referred to as your: **Self-esteem**

27. Why is it important to assess personal strengths and weaknesses before interviewing for a job? **Interviews often ask you to discuss your strengths and weaknesses**

28. If some of a new employee's job tasks are unfamiliar and seem complicated, he/she should: **Seek clarification from the supervisor**

29. When you indicate to others who have suffered some kind of serious loss that you know how they feel, you are demonstrating: **Empathy**

30. A business that deliberately provides complex information about its products that most customers will be unable to understand is: **Behaving unethically**

31. Which of the following is one of the drawbacks of using consensus building as a decision-making tool? **Takes time**

32. One way for Sidney to motivate her team members to accomplish a certain goal in a specific amount of time is by: **Providing an incentive**

33. Employees who have an achievement orientation usually have a: **Positive attitude**

34. Which of the following is a true statement about change? **Everyone reacts differently to change**

35. Which credit legislation gives consumers the right to inspect their credit history files? **Fair credit reporting act**

36. Which of the following statements about understanding your spending habits is true? **The first step in creating a financial plan**

37. Which of the following is the type of organization that a person can contact to verify that his/her credit history report is accurate? **Authorized credit bureau**

38. A customer's stealing money from an open cash register is an example of _____ risk. **Human**

39. One of the reasons why a business should examine its profit and loss statement is to: **Understand its entire financial situation**

40. Legal considerations for finance often involve a business's use of: **Credit**

41. A business's sales budget estimates $865,500 in sales for the coming year. If the business pays each of its three salespeople a base salary of $45,000 and each of them a 2% commission on total sales, how much should it budget for their compensation? **$186,930**

42. Which of the following is a situation that demonstrates the use of technology to recruit employees? **The TRN company posts its current job openings on its website**

43. Marketers at GG Unlimited are using the company's marketing-information management system (MkIS) to learn more about the effectiveness of the company's latest advertising campaign. This is an example of how the MkIS can be used to evaluate: **promotional strategies**

44. Marketing research is used in problem-solving and decision-making in all areas of the marketing mix, which includes: **Promotion**

45. Managers and researchers have decided to conduct their marketing research study by looking at individual customers rather than at households. They have determined the: **Unit of analysis**

46. Because the Hubert Company is not sure how to define its marketing problem, it should begin examining the issue by: **conducting exploratory research.**

47. What is the advantage of using personal interviews to collect marketing data? **High flexibility**

48. When marketing researchers code the various responses on a questionnaire, they are __________ to each answer. **Assigning a numeric value**

49. Which function of marketing determines how much gross profit a business will make in a food or service? **Pricing**

50. Al's hardware wants to know whether to carry a new type of electric saw. This is a question that can be solved through: **Marketing**

51. Which of the following is part of the promotional element in marketing? **Advertising**

52. One way that businesses use environmental monitoring in the marketing planning process is to: **Identify changes that might be opportunities**

53. Which of the following is a situation that involves the illegal use of copyrighted material? **An online business allows its customers to download and share music without the recording artist's consent**

54. Which of the following is a standard function of most spreadsheet software programs? **Performing financial calculations**

55. The primary purpose of collaborative software applications in the business environment is to: **Share information**

56. When developing a web page, it is best to: **use short blocks of text.**

57. What is the computerized system linking cash registers to a central processing point that transmits information to the central database, thereby allowing apparel stores to instantly update perpetual inventory records, place reorders, take markdowns, and balance inventories? **Point-of-sale**

58. Hospitality and tourism businesses maintain accurate records of their income and expenses in order to comply with the government's: **Tax laws**

59. Operations managers must work closely with managers and employees in: **All other parts of the business**

60. A company trained you for five days on how to run a high-speed printing press. Now you are working by yourself, but you have forgotten a step in the process although the machine seems to be operating correctly. What should you do? **Ask for help**

61. Why is it important to define your project precisely? **So you can achieve your objectives**

62. Purchasing can help manufacturing businesses to sharpen their competitive edge by: **Keeping their prices down.**

63. An auto producer decided to produce a new car called the "Shark." Since the parts of the car will be easily interchangeable and the company expects to produce a large quantity of cars, the best method of production would be: **Mass production**

64. Employees who handle company property correctly so it needs less repair often help the business to: **Save money**

65. A cashier opened the register with one roll of quarters, two rolls of dimes, one roll of nickels, and one roll of pennies. What is the total amount of change in the drawer? **$22.50**

66. To calculate the total cash received for the day, what should you remember to subtract from the total cash drawer amount on your fault balance form? **Opening change fund**

67. Becoming more orderly and systematic can cause you to feel more self-: **Esteem**

68. Why do many businesses expect their employees to do their jobs according to strict guidelines? **To create a safe environment**

69. Who is it a good idea to take a small dictionary with you when completing a job application form? **To create a positive impression by spelling the words correctly**

70. A job applicant who wants to write a follow-up letter should follow the guidelines for: **writing a business letter**

71. In what type of market do companies compete by making their products different from each other as to quality, service, styles, and prices? **Monopolistic competition**

72. Because people buy benefits rather than features, product planning should be approached from the ______ point of view: **Consumers**

73. Henderson Soap Company introduced a liquid soap containing a new chemical that caused many of the customers who tried the soap to develop skin rashes and irritations. The government intervened and required the company to recall the product until further study could be made. This type of business and government activity is called: **Consumer protection**

74. What is the primary purpose of offering customers a few months of free access to a well-known Internet portal when they purchase new computer systems? **It increases the probability of long-term internet use and service**

75. Focusing on its product's superior attributes is a way that a business positions the product: **Above the market leader**

76. An illustration of a hollow tree "inhabited" by Keebler elves appears on boxes of Keebler Town House Crackers. These elves are known as: **Trade characters**

77. If annual sales are $500,000 and the average monthly inventory at retail is $50,000, the rate of stock turnover by the retail method is: **10 stock turns per year.**

78. One reason why retailers write purchase orders when buying merchandise from manufacturers is to establish a: **Legal contract**

79. Calculate the stock turnover rate if a store keeps an average of 687 packages of AA batteries in stock and sells 6,183 packages of AA batteries a year: **9**

80. An online cookware store sold 750 sets of carving knives last year and is on track to sell 900 sets this year. How many sets of carving knives should they buy to sell next year if they expect another 20% increase in sales? **1080**

81. A long-range benefit that a business may derive from promoting its company image is: **Customer loyalty**

82. Technological advancements have made it possible for a business to use promotional activities to target specific markets so the business can: **Build close and ongoing customer relationships**

83. The HiTech Electronics company is determining if it should offer its customers a coupon or a rebate as a promotion for a new electronics product that is releasing. Determine which of the following is the better promotional offer for customers if the product sells for $799: **The coupon. By using the coupon, the customer will pay $679.15; by using the rebate, the customer will pay $689.**

84. Which is one of the functions of certain types of public relations activities? **Damage control**

85. A modern method of producing promotional signs for displays is through the use of: **Logo types**

86. The type of visual merchandising that is used to draw customers into the business is: **Window displays**

87. A display designer who creates a display featuring a different number of items on each half of the display is using which principle of design? **Balance**

88. When dismantling displays, why is it important for stores to carefully examine the furniture pieces that have been used to display accessories? **To evaluate their condition**

89. What is one of the main reasons that a business develops a promotional plan? **To create consumer demand**

90. Many businesses coordinate a wide variety of promotional activities such as advertising, special events, and displays in order to: **Reach a large audience**

91. The salesperson who sells goods and services by visiting customers in their homes is using the: **Direct selling method**

92. Lindsey tells her salesperson, Pablo, that Sam might be interested in purchasing products from him. This is an example of the salesperson receiving: **A referral**

93. Which of the following are not likely to offer product information to salespersons? **Competitors**

94. A salesperson explaining that a product is inexpensive to operate and lasts a long time is an example of the: **Customer-benefit approach**

95. When customers are provided the most satisfactory goods, they have positive feelings about the company and often: **Tell others about the business**

96. A benefit of suggestion selling to the salesperson is that it can: **Increase a salesperson's total sales**

97. Which of the following is an example of a special order? **A customer requests a tote bag with a monogram embroidered on it**

98. When processing a telephone order for a computer printer ink cartridge, a salesperson should always have the customer provide: **The manufacturer and model number of the computer printer**

99. Which of the following is not a benefit of using an electronic cash register? **Increased sales**

100. The number of levels of management that a business needs usually depends upon the: **Size of the business**

**Question:** Which of the following types of laws is most likely to affect students?

**Answer:** Child labor laws

---

**Question:** One of the main functions of the legal procedure is to

**Answer:** B. resolve disputes.

---

**Question:** Which type of business ownership would help a small business by taxing its owners as individuals?

**Answer:** A. Subchapter "S" corporation

---

**Question:** What form of technology allows channel members to track a product's movement through the supply chain in real time?

**Answer:** B. Radio frequency identification (RFID)

---

**Question:** A business should communicate inventory needs with its vendors before a planned sales promotion to ensure that the vendors

**Answer:** A. have the products available to ship.

---

**Question:** Which of the following techniques would help an employee understand and follow the manager's instructions about operating office equipment?

**Answer:** A. Asking appropriate questions

---

**Question:** Jerry is in a staff meeting when his colleague makes a statement that he doesn't quite understand. Jerry raises his hand and asks, "To make sure I'm getting this right, you're saying that the company is $5,000 over budget this fiscal year?" This is an example of a __________ question.

**Answer:** A. clarifying

---

**Question:** Before Diann presents her new idea to her boss, she searches the Internet and jots down two statistics that reinforce the idea. This is an example of

**Answer:** C. supporting ideas with evidence.

---

**Question:** While reading over her writing, Danielle noticed that a sentence seemed out of place, so she moved it to a new paragraph. This is part of the __________ process.

**Answer:** C. revising

---

**Question:** Which of the following types of customers is easy to handle but requires a lot of the salesperson's time?

**Answer:** A. Slow/Methodical

---

**Question:** The benefit that a brand promises to its target customers must be

**Answer:** D. important to them.

---

**Question:** Customer trust can provide a business with

**Answer:** C. a competitive advantage.

---

**Question:** What step in the receiving process should a business complete before paying the invoice?

**Answer:** C. Verifying charges

---

**Question:** Which of the following methods of moving stock would require the least physical effort on the part of receiving workers?

**Answer:** B. Conveyor system

---

**Question:** A merchandise planning decision that involves how much merchandise to place on the selling floor, how much to place in a stockroom, and whether to use a warehouse is concerned with the __________ of merchandise.

**Answer:** A. distribution

---

**Question:** What type of inventory control involves counting inventory at certain times of the year?

**Answer:** D. Periodic

---

**Question:** Which element of marketing refers to the various types of communication that marketers use to inform, persuade, or remind customers of their products?

**Answer:** B. Promotion

question: answer format

**liquidate:** to pay a debt, settle an account; to eliminate

**what happens when you file chapter 7 bankruptcy:** you lose control of the company. The bankruptcy trustee takes over the business assets and determines if it’s in the best interests of the creditors to sell the business as a whole or sell off the assets.

**Most nations' federal agencies must function within certain limits identified in the specific enabling legislation that gave the agencies their powers. These limits on the federal agencies' activities are an example of:** Statutory control. Methods to limit federal agencies include statutory control, political control, judicial review, and informational control.

**Agents are usually hired to perform channel functions for:** Producers. Agents manage selling, storing, grading, etc., without taking title to the goods.

**What advantage do distribution channel members have in using satellite technology?** Offers real-time shipment tracking.

**Which of the following is a legal example of exclusive dealing:** A small manufacturer enters a new market.

**ethical business practices:** ensure that appropriate standards of conduct are maintained by everyone who is a part of the business and with anyone affected by the business.

**Which of the following is an example of a business that is coordinating marketing activities with channel members:** A wholesaler follows up with a producer to ensure that it will ship products to arrive in time for a retailer's scheduled promotion.

**What is one technique that businesses can use to build positive customer/client relations:** Being consistent.

**contingency plans:** alternative courses of action that can be implemented based on how the future unfolds.

**obsolescence:** situation in which older products and processes become out-of-date.

**According to the law of diminishing returns, continuing to hire additional employees will eventually cause the workers' individual production level to:** Decrease.

**structural unemployment:** unemployment that occurs when workers' skills do not match the jobs that are available.

**Cyclical Unemployment:** unemployment that rises during economic downturns and falls when the economy improves.

**frictional unemployment:** A type of unemployment caused by workers voluntarily changing jobs and by temporary layoffs.

**Which of the following statements regarding requirements for international business travel is accurate:** An official passport is typically required to visit and conduct business in foreign countries.

**Melanie's parents could not afford to go to college, so one of Melanie's priorities is to get her degree. This is an example of:** Family can be a source of values.

**revolving credit agreement:** a line of credit that's guaranteed but usually comes with a fee.

**installment plan:** A payment plan that allows customers to make payments at set intervals over a period of time until the total debt is paid.

**What is one way you can prevent identity theft?:** Memorize your social security number, and keep your card at home.

**All business must comply to fundraising laws because:** Fundraising activities are regulated by law.

**Jurisdiction:** (n.) an area of authority or control; the right to administer justice.

**When a business collects marketing information from its customers, what should it consider about its consumer-privacy laws?** Varies by jurisdiction.

**relational databases:** Database technology involving tables (relations) representing entities and primary/foreign keys representing relationships.

**exclusive manufacturer:** Contracts that would prevent the business from entering into a contract with another supplier of the goods.

**distribution channels:** the path through which products or services get to customers.

**producer:** A person, company, or country that makes, grows, or supplies goods or commodities for sale.

**wholesaler:** A type of business that buys goods in large amounts and resells them to other businesses in smaller lots.

**retailer:** An intermediary who sells to consumers.

**distributor:** an agent who supplies goods to stores and other businesses that sell to consumers.

**intermediary:** go-between; mediator.

**Radio Frequency Identification (RFID):** A small computer chip that is attached to the item, containing product information.

**formal communication:** communication that takes place within prescribed organizational work arrangements.

**Vertical Communication:** Communication that flows up and down the organization, usually along formal reporting lines.

**horizontal communication:** communication that flows among managers and workers who are at the same organizational level.

**outputs:** the goods, services, and ideas that result from the conversion of inputs.

**frugging:** unethical fundraising practice pretending to conduct research to solicit donations.

**tort:** a wrongful act leading to civil legal liability.

**Warrant agreement:** an agreement giving the holder the option to purchase stock within a certain period for a set price.

**exploratory research:** Research conducted to gather more information about a problem.

**antitrust laws:** laws that encourage competition in the marketplace.

**executive summary:** A brief recounting of the key points in a business plan.

**sin tax:** federal tax on alcohol and tobacco.

**judicial lien:** when the court awards the creditor a judgment against the debtor.

**investment bank:** a financial intermediary helping firms raise financial capital.

**surge protection insurance:** protection in electronic issues, including outbursts.

**puffery:** legal exaggeration of praise for a product.

**product growth stage:** Sales increase, new competitors enter the market, price stability or decline to increase volume, consumer education, profits increase.

**Product Branding:** The marketing practice of creating a name, symbol, or design that identifies and differentiates a product from other products. An effective brand strategy provides a competitive edge in increasingly crowded markets.

**Service Branding:** Branding for service-based small businesses presents challenges greater than those faced by product-driven companies. Negative customer experiences can significantly harm a brand's service reputation.

**Corporate Branding:** This practice involves promoting the brand name of a corporate entity rather than focusing on specific products or services.

**Customer Touch Points:** These are the various points of contact between your brand and customers throughout their journey. This includes online presence, advertising, ratings and reviews, retail experiences, and customer service interactions.

**Channels of Distribution:** A distribution channel is a pathway through which goods or services travel until they reach the end consumer. It encompasses wholesalers, retailers, distributors, and even online platforms.

**Customer Service:** This involves providing assistance to customers before, during, and after a purchase. The success of these interactions often relies on employees' ability to adapt to each customer's personality.

**Channel Management:** Channel Management refers to the process whereby a company develops marketing techniques and sales strategies to reach a broader customer base through various outlets.

**Business Risk:** This is the potential for a company to experience profits lower than expected or to incur losses instead of making a profit. Business risk is shaped by factors including sales volume, pricing, input costs, competition, economic conditions, and regulatory influences.

**Rationale:** A rationale consists of a set of reasons or logical basis for a particular course of action or belief.

acquisition: the purchase of one organization by another, called takeover

balance sheet: a statement of an organization's assets, liabilities, and owners' equity

basic goods: remain the same from one season to another

better line: an apparel line priced at the upper end of a department store's selection

bidding war: a series of counter-offers by two or more parties interested in acquiring the same organization

cash dating: payment arrangements with no provision for discount or payment periods

centralization: performing functions for an organization's remote facilities from a single location, usually the corporate office

closed-sell fixture: a store fixture that restricts customer access to the merchandise, requiring salesperson assistance for making selections

commissionaire: an agent who represents retailers that wish to purchase goods in foreign markets

component percentage: ratio that expresses an income statement component as a percentage of net sales

consignment goods: not paid for by retailer until they are sold

contract carrier: provides services to individual shippers based on negotiated agreements

cost complement: difference between markup and 100 percent

cumulative markup: an aggregate percentage markup on goods with varying markup percentages

current ratio: ratio of organization's current assets to current debts

customer touchpoint: interactions between business and customers like welcome letters and direct mail

decentralization: individual stores within a multistore organization are responsible for buying their own merchandise

depth: selection within an assortment of goods

Determine factors affecting business risk: Economic- changes in business conditions; Human- mistakes, customer/employee dishonesty; Natural- floods, weather, fire

destination merchandise: a consumer purchase that is typically planned

distributor: allocates arriving shipments of merchandise to individual stores based on a store's capacity, current sales trends, and inventory levels

diversification: entering a new line of business that differs from present businesses

economies of sales: savings associated with conducting large-scale business

extra dating: adds additional days to payment and discount periods of an invoice

factor: a financial intermediary who buys manufacturers' receivables at discounted rates and then collects payment from retailers

fill-in order: an order to replenish sold-out sizes/styles/colors of basic inventory assortment

friendly takeover: the acceptance of acquiring a company by another organization

gross margin return on investment: a measure of performance that combines gross margin and turnover

impact of technology on retailing: reaches a wider audience

indirect competition: when stores offer the same merchandise categories but different prices and brands

internal buyout: the acquisition of an organization by its employees

invoice: a vendor's itemized statement of the goods shipped, their unit and extended cost, and any additional charges for transportation and/or insurance

junk bonds: high-yield, high-risk commodities issued by retailers to finance acquisitions

liquidity: the likelihood of assets being converted to cash

maintained markup: the difference between the cost of merchandise and the actual selling price

marketing channel: the flow of goods from point of production to point of consumption; also called distribution channel or pipeline

Nature of channel management: process by which a marketer ensures the effectiveness of its middlemen

Nature of channels of distribution: steps a product goes through from extraction to end user; for example, bread

nature of corporate branding: being consistent, having an image for customers to recognize; examples include McDonald's golden arches

Nature of positive customer relations: remembering the customer is always right, keeping a positive business image, and building relationships

Nature of product/service branding: brand is the identity of the product or business, affecting the company's personality; a positive image allows customers to associate it with the product

nature of product/service management function: making decisions about the production and sale of products, including packaging, labeling, warranties, branding, and product mix