1. C Licenses. Businesses and individuals grant licenses for many things, including technological and intellectual information, formulas, music, and inventions. Operating agreements are developed by LLCs (limited liability companies) to specify each member's role in the hybrid business structure. Exclusive distributorships (or dealerships) are product trade-name franchisees. Royalties are a percentage of the profits many licensees pay to the licensor in addition to an initial licensing fee. SOURCE: BL:003 SOURCE: LAP-BL-003—Own It Your Way (Types of Business Ownership) 2. A Intensive. The typical availability of gum and breath mints at any store exemplifies intensive distribution. Intensive distribution means selling a product through every available wholesaler and retailer in a geographic area where consumers might look for it. Selective distribution means selling a product through a limited number of wholesalers and retailers in a geographic area. Exclusive distribution means selling a product through just one middleman in a geographic area. The term "mild distribution" is fictitious. SOURCE: CM:001 SOURCE: LAP-CM-001—Chart Your Channels (Channel Management) 3. B Producer to wholesaler to retailer to ultimate consumer. Producer to wholesaler to retailer to ultimate consumer is the most common distribution channel for consumer goods. First, the producer makes the good. Next, the wholesaler moves the good from the producer to the retailer. Then, the retailer sells the good, and finally, the ultimate consumer purchases it. An agent is a business or individual that assists in the sale and/or promotion of goods and services but does not buy them from the producer. If an agent is used, their involvement is typically the second step of the process after producer. SOURCE: CM:003 SOURCE: LAP-CM-003—Channel It (Channels of Distribution) 4. C Order tracking. Order tracking is a technological feature that allows customers to follow the progress of an order from placement to delivery. Inventory control involves tracking the amount, the kind, and the value of inventory that a business has on hand. Customer service includes the activities and benefits provided by a business to its customers to create goodwill and customer satisfaction. Starbursting is a brainstorming technique that involves using a star-shaped diagram to ask and answer basic questions about an issue or situation. SOURCE: CM:004 SOURCE: Ingram, D. (2017, November 21). Channel management techniques. Retrieved January 10, 2022, from https://smallbusiness.chron.com/channel-management-techniques-3072.html 5. C Coercion. Coercion, or coercive power, is the use of threats to motivate someone to complete a desired task by setting up consequences for failure. In this scenario, the large retailer has threatened to stop ordering from the small manufacturer unless the latter offers a significant price discount. The gray market refers to unauthorized distribution channels. A slotting allowance, or slotting fee, is a cost manufacturers pay to place their products on shelves. Libel involves writing something untrue that damages a person's or business's reputation. SOURCE: CM:006 SOURCE: Perner, L. (1999-2018). Channel management and conflict. Retrieved January 10, 2022, from https://consumerpsychologist.com/dist_Channel_Management.html 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 12 6. D Place. Place is a marketing element focusing on considerations in getting a selected product in the right location at the right time. When Tara coordinates channel management (the processes by which marketers ensure products are distributed to customers efficiently and effectively) with the place component of the marketing mix, she makes sure each product is in the best location for customer access and purchase. Price is a marketing element requiring marketers to determine the amount of money they will ask in exchange for their products. Product is a marketing element referring to what goods, services, or ideas a business will offer its customers. Promotion is a marketing element referring to the various types of communications that marketers use to inform, persuade, or remind customers of their products. SOURCE: CM:007 SOURCE: Lake, L. (2021, January 6). What the marketing mix is and why it's important. Retrieved January 13, 2022, from https://www.thebalancesmb.com/what-is-a-marketing-mix-2295520 7. A Horizontal conflict. Horizontal conflict is a type of channel conflict that occurs between channel members at the same level (e.g., two retailers). Vertical conflict is a type of channel conflict that occurs between channel members at different levels within the same channel. Dual distribution and multiple distribution mean distributing a product through two or more different channels, respectively. SOURCE: CM:008 SOURCE: Mack, S. (2019, March 5). Horizontal & vertical marketing conflicts. Retrieved January 13, 2022, from https://smallbusiness.chron.com/horizontal-vertical-marketing-conflicts65325.html 8. C Affinity partnership. An affinity partnership exists when two or more organizations partner together to share goods and services in an attempt to reach a wider audience and grow their customer bases. A hybrid structure is a form of business ownership that combines elements of corporations and either sole proprietorships or partnerships. Forced associations is a creativity technique in which a connection is made between two words or objects, or a word and an object. A merger involves two individual businesses combining to form one organization. SOURCE: CM:021 SOURCE: Marketing Schools. (2020, November 12). Affinity marketing: Explore the strategy of affinity marketing. Retrieved January 13, 2022, from https://www.marketing-schools.org/types-ofmarketing/affinity-marketing/ 9. D Gather information. The most common reason for active listening is to gather information. During a social studies lecture, a presentation about a trip, or even a coach's pregame meeting, you listen to collect information so that you can learn. While forming an opinion and connecting with others are reasons for using active listening, they are not shown here. Increasing satisfaction is not necessarily a reason for active listening. SOURCE: CO:017 SOURCE: LAP-CO-017—Listen Up! (Demonstrating Active Listening Skills) 10. C Swaying back and forth. Ineffective nonverbal communication includes distracting gestures and actions such as gripping onto the podium, tapping your foot, twisting your hair, or swaying back and forth. Effective nonverbal communication includes facial expressions, hand gestures, and moving around the stage to create emphasis, interact with your audience, and convey meaning. SOURCE: CO:025 SOURCE: LAP-CO-025—Well Said! (Making Oral Presentations) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 13 11. A Bar graph. The graph that Nia created is a bar graph. Bar graphs are used to compare absolute values or proportions between different groups or categories, and they represent the data using a series of bars across two axes. Because Nia wants to compare the total number, or absolute value, of employees that chose each topping, a bar graph is the best option for her. A pie chart, a circular graph that displays percentages of a whole as if they were slices of a pie, is best to use when trying to compare parts of a whole. Unlike bar graphs, pie charts can't be used to explicitly show absolute number values for each group. A line graph is similar to a bar graph in that it also shows data across two axes. However, line graphs are typically used to track changes over short and long periods of time. There is not a time element in this scenario. A table displays information in rows and columns, not across two axes. SOURCE: CO:087 SOURCE: Johnson, L. (2018, April 23). Difference between a bar graph & pie chart. Retrieved December 28, 2021, from https://sciencing.com/difference-bar-graph-pie-chart-5832998.html 12. C Brand awareness. Brand awareness simply refers to how familiar customers and potential customers are with the brand. Brand loyalty refers to customers' level of commitment to buying the brand. A brand promise is the specific benefit that customers can expect from using the good/service and interacting with the company. A slogan is a memorable phrase used to advertise a product or brand. SOURCE: CR:001 SOURCE: LAP-CR-001—Share the Promise (Identifying Brand Promise) 13. A Technology. Capital goods reflect the state of technology that exists in society. In general, societies that are leaders in technology use or have the most up-to-date capital goods. While developing countries might use hand tools to produce goods and services, industrialized societies take advantage of much more sophisticated (and more readily available) industrial and digital technology. Capital goods do not directly reflect the state of goodwill, farmland, or motivation in society. SOURCE: EC:003 SOURCE: LAP-EC-903—Be Resourceful (Economic Resources) 14. D Negative public image. In business, image can be everything. Unethical actions can damage a company's reputation, sometimes irreversibly. When customers heard about the company's unethical behavior, it changed the way they viewed the business. The consequence the company experienced was an external, not internal, one. There was no mention of lawsuits or jail time in this scenario. SOURCE: EC:106 SOURCE: LAP-EC-106—On the Up and Up (Business Ethics) 15. A Businesses compete by producing cheaply made products. In market economies, competition is a source of some problems. A business may try to capture the entire market for a product by attempting to control the price, output, and employment. Other businesses may try to compete by producing cheaply made products. Governments levy high taxes and individuals have less money to spend in socialist command systems. Consumers deciding what will be produced by casting economic votes is a positive attribute of a market economy. Governments pay workers based on the quantity of production in communist command systems. SOURCE: EC:007 SOURCE: LAP-EC-907—Who's the Boss? (Economic Systems) 16. C Restricting the amount of money in circulation. The government can attempt to fight inflation by restricting the amount of money in circulation. To compensate for a downturn in economic activity, the government can spend more on goods and services, lower the prime interest rate, and increase wages. SOURCE: EC:017 SOURCE: LAP-EC-917—Measure Up? (Gross Domestic Product) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 14 17. A Price fixing. Price fixing occurs when competitors agree to raise, lower, or stabilize their prices of competitive items. Predatory pricing is pricing lower than the competition to drive them out of business. Price discrimination involves charging different prices to different people. Black market pricing is a fictitious term. SOURCE: PI:015 SOURCE: Ellsworth, M. (2019, October 1). 5 unethical pricing pitfalls to avoid. Retrieved January 25, 2022, from https://blog.wiser.com/5-unethical-pricing-pitfalls-to-avoid/ 18. A Critical-thinking skills. Having critical-thinking skills means that you can make reasonable judgments about people, ideas, situations, etc. You might use critical-thinking skills when you see that a friend is upset and you try to understand why. Or you might use critical-thinking skills when you're setting a budget for the student council. Self-control is the ability to restrain your emotions and actions appropriately. Empowerment is taking (or receiving) the right to make decisions and assume control over something (e.g., your own life and future). Victim mentality means believing that you are controlled by the people and circumstances around you, and you may hold them responsible for anything that goes wrong in your life. SOURCE: EI:075 SOURCE: LAP-EI-075—It's Up to You (Taking Responsibility for Decisions and Actions) 19. B Constructive criticism. Constructive criticism is a type of negative feedback that points out mistakes or weaknesses for the purpose of helping a person improve a specific behavior. Constructive criticism is nonjudgmental, immediate, and nonthreatening. Positive feedback is praise or approval. Destructive criticism is a type of negative feedback that points out mistakes and includes a personal attack on the individual. Internal feedback is feedback that comes from within you. SOURCE: EI:003 SOURCE: LAP-EI-903—Grin and Bear It (Using Feedback for Personal Growth) 20. D Greater creativity and innovation. When diverse perspectives, experiences, and strengths are present in the workplace, it allows for greater creativity and innovation. If you fill the room with people who are all very similar, you'll get a lot of the same viewpoints and opinions. However, if you bring in a diverse group of employees, you're a lot more likely to come up with a variety of ideas and solutions. Diverse perspectives might indirectly lead to higher salaries and increased sales, but those would be a result of greater creativity and innovation. Diverse perspectives do not necessarily lead to more collaboration and sympathy. SOURCE: EI:033 SOURCE: LAP-EI-033—Getting To Know You (Cultural Sensitivity) 21. B Complete. Your communications should include all the information the receiver needs to understand your message. By including the date, time, and location of the meeting in his email, Alfredo is engaging in complete communications. There isn't enough information to determine whether his email is concise or uses correct grammar, spelling, punctuation, and syntax. Convenient communication is not a recognized form of effective communication. SOURCE: EI:007 SOURCE: LAP-EI-140—More Than Just Talk (Effective Communication) 22. B Making it personal. By explaining why others should care about what you're saying, you are making it personal so they are interested. Although you're the one doing the persuading, it's not about you—look at things from the other person's point of view and explain why they should care. Promoting benefits and stating your case are other steps in the persuasion process. Using body language is a technique to be more persuasive. SOURCE: EI:012 SOURCE: LAP-EI-912—Win Them Over (Persuading Others) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 15 23. A Mutual fund. A mutual fund is a combination of stocks from different corporations or agencies. One benefit of investing in mutual funds is access to the expertise of the fund's manager, who is directly responsible for deciding which investments best meet the mutual fund's stated purpose. Investing in real estate, money market accounts, and bonds does not use a manager who is responsible for deciding which investments to pursue. SOURCE: FI:077 SOURCE: LAP-FI-077—Invest for Success (Types of Investments) 24. D Public. Public accountants prepare, analyze, and verify financial data for a variety of clients, including the government, corporations, and individuals. They usually work for firms that are hired to audit clients' financial data. Financial accountants provide information to those outside of the organization, including investors, financial analysts, and lenders. Nonprofit accountant is a fictitious term. Managerial accountants provide internal information to organizations. SOURCE: FI:351 SOURCE: LAP-FI-351—With Due Care (The Role of Ethics in Accounting) 25. C $5,000. According to the accounting equation (Assets = Liabilities + Owner's Equity), Amy has $5,000 in assets. Liabilities are debts, while owner's equity is the amount an owner has invested in the business. In this scenario, the $2,000 that Amy invested herself is the owner's equity, and the $3,000 she borrowed from her parents is considered a liability. Adding the owner's equity and liabilities equals $5,000. SOURCE: FI:093 SOURCE: LAP-FI-093—The Right Balance (The Nature of Balance Sheets) 26. D Incrementalism. Incrementalism refers to the diminishing of ethical values over time. One small unethical action can lead to more and more until ethical principles no longer exist at all. Rationalization occurs in situations where there is a conflict between what you are doing and what you know you should be doing. Playing the devil's advocate involves looking for all possible counterpoints to an idea. Self-interest can bias decision-making because it is difficult to make the ethical choice if it goes against your own wellbeing. SOURCE: FI:355 SOURCE: LAP-FI-355—Money Morals (The Role of Ethics in Finance) 27. D Estimate. A budget that outlines the approximate cost to send John and his colleagues to the conference is an example of an estimate. Estimates are approximations, or educated guesses. This aforementioned budget gives the company an idea of how much it will cost to send the employees on the trip. A fact is data that can be verified and can't be disputed. Because the company hasn't paid the costs for the trip yet, the budget is not considered a fact. A sales forecast is a prediction of future sales over a specific period of time. A sales invoice is an itemized statement of money owed for a good or service. The budget has nothing to do with sales, sales forecasts, or sales invoices. SOURCE: IM:012 SOURCE: LAP-IM-012—Data Do It (Need for Marketing Data) 28. C Marketing intelligence. Marketing intelligence is existing marketing data that are gathered informally from internal and external sources. Sources of marketing intelligence include salespeople, suppliers, customer advisory panels, podcasts, and more. Marketing research is the systematic gathering, recording, and analyzing of data about a specific marketing problem or situation. Data processing involves analyzing data collected and putting them into formats useful to a business. Internal data are found inside a business. SOURCE: IM:001 SOURCE: LAP-IM-001—Get the Facts Straight (Marketing-Information Management) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 16 29. D The need for ethics in marketing-information management. Ethics are extremely important to marketinginformation management. It is essential that the data marketers collect are reliable, accurate, and not harmful to anyone. Sally's lack of ethics led to negative consequences for her business and its customers. This example does not demonstrate problems that occur when marketers are objective. It also does not necessarily demonstrate the importance of following the rule of law. SOURCE: IM:025 SOURCE: LAP-IM-025—Info With Integrity (Ethics in Marketing-Information Management) 30. B Company blog. A blog is a website regularly updated (by a person or group) with information or opinions. In this instance, Claire is regularly updating the business's website with content about its products and benefits. Because they often include space for readers to respond, blogs are a technological tool that helps with conducting marketing research. A search engine is a software program that automatically crawls the web looking for information pertaining to specified search terms and displays a list of results. Databases are computerized storage for information and facts. Social media pages include forms of electronic communications through which users build communities, network, share information, etc., separate from a company's website. SOURCE: IM:183 SOURCE: Brookins, M. (n.d.). Tools used in market research. Retrieved January 14, 2022, from https://smallbusiness.chron.com/tools-used-market-research-17205.html 31. D Exploratory. Creating a qualitative survey is an example of exploratory research. Businesses use exploratory research to collect information to help define their issue, situation, or concern and decide how to proceed with their research. Exploratory research typically focuses on qualitative data, such as respondents' opinions and personal interpretations rather than facts and figures. Descriptive research is used to gather specific data related to the identified research problem. Causal research focuses on cause-and-effect relationships and tests “what if” theories. It determines the impact that one item or entity has on another. Predictive research is used to help businesses forecast future business developments, such as estimating future sales, predicting the growth or decline of a market, or projecting consumer tastes. SOURCE: IM:010 SOURCE: LAP-IM-010—Seek and Find (Marketing Research) 32. C Use a marketing research firm. Since obtaining data for marketing research can be such a big job, many companies choose to outsource this task to a commercial marketing research firm. One reason to do so is because the firm can make the research anonymous. Because Deelish Soft Drinks does not want to be identified, using a marketing research firm is a good idea. There is no indication that Deelish Soft Drinks should focus on secondary research, consult its vendors and suppliers, or obtain quantitative data. SOURCE: IM:281 SOURCE: LAP-IM-281—What's the Source? (Obtaining Marketing-Research Data) 33. B Secondary data. The research team is looking at secondary data, which are data—facts, figures, and statistics—that already exist and have been collected for purposes other than the project at hand. Sales invoices, expense reports, and other company records are each considered secondary data. Primary data are new facts, figures, or statistics collected specifically for the problem or project at hand. Units of analysis are entities or elements that are being studied in market research (e.g., individual, household). Relevant variables are the types of information studied in a marketing research project (e.g., brand awareness, customer satisfaction). SOURCE: IM:282 SOURCE: LAP-IM-282—What's the Problem? (Marketing Research Problems) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 17 34. A The research design must match the purpose of the research project. If the research design does not match the purpose of the research project, researchers are likely to obtain inaccurate results. Exploratory research is not appropriate for certain types of research that need more specific answers, and descriptive research would also not always be appropriate. Test marketing is often used for causal research to test hypotheses, but it is not necessarily needed for research exploring a problem or studying a specific aspect of the market. SOURCE: IM:284 SOURCE: LAP-IM-284—Better by Design (Marketing Research Design) 35. D The sample size. A sampling plan includes a determination of the target population, a determination of the sample size, and a determination of the sample design. A skip interval is the number of spaces between each sampling unit drawn for the sample in systematic random sampling. It would not necessarily be included in a sampling plan unless the design was systematic random sampling. Sampling ratio is a fictitious term. The budget would not necessarily be included in the sampling plan. SOURCE: IM:285 SOURCE: LAP-IM-285—Take Your Pick (Nature of Sampling Plans) 36. D Secondary. Data can be sorted into two categories—primary data, which come from original sources, and secondary data, which are already available in some form. Tertiary refers to something that is “third” and is not a common category for data. Data are also not sorted into principal or unusable categories. SOURCE: IM:184 SOURCE: LAP-IM-184—Data Diving (Identifying Marketing Data) 37. B Surveys, tracking, and experiments. Three of the main methods businesses use to collect quantitative data—information that is based on numbers, statistics, or hard facts—are surveys, tracking, and experiments. Personal interviews, focus groups, and observation are methods that businesses can use to collect qualitative data—information that is based on thoughts, feelings, experiences, or opinions and is descriptive and nonstatistical in nature. SOURCE: IM:289 SOURCE: LAP-IM-289—Hunting and Gathering (Data Collection Methods) 38. A Leading. Leading questions are questions that subtly prompt the respondent to answer in a particular way. By calling the support team "amazing," the survey question prompts the respondent to answer in a positive way, which might not elicit truthful responses. Neutral questions avoid opinions and leading prompts. An open-ended question requires more than a simple "yes" or "no" response. Double-barreled questions ask respondents to respond to multiple things in the same question. SOURCE: IM:418 SOURCE: SurveyMonkey. (1999-2022). Writing good survey questions. Retrieved January 18, 2022, from https://www.surveymonkey.com/mp/writing-survey-questions/ 39. C Coding. Coding data means labeling and organizing information into meaningful themes and relationships between them. By identifying themes and patterns from survey responses, Charles-Clair is coding data. Innovation is the creation or discovery of something new, such as a product, process, service, technology, or idea. Estimating is approximating, or taking an educated guess. Sampling is the process of choosing a representative group of consumers to survey. SOURCE: IM:062 SOURCE: Medelyan, A. (2021, September 23). Coding qualitative data: How to code qualitative research. Retrieved January 18, 2022, from https://getthematic.com/insights/codingqualitative-data/ 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 18 40. B Basic. Basic research, also called fundamental or pure research, is done to improve understanding of processes, phenomena, or concepts. In contrast, applied research is done to solve a specific problem impacting humans within society. Action research and evaluation research are types of applied research. Because Michael's research examined a natural process solely for the purpose of improving understanding, the study is an example of basic research. SOURCE: IM:292 SOURCE: Indeed. (2021, July 21). Basic research vs. applied research: Definition and examples. Retrieved January 18, 2022, from https://www.indeed.com/career-advice/careerdevelopment/basic-research-vs-applied-research 41. A It asks respondents to assess two different topics at the same time. The survey question "How would you rate our customer service and product quality?" is an example of a double-barreled question, which requests a single answer for two different topics (customer service and product quality). It is not an openended question limiting the respondent's answer. The survey question does not insert an opinion or use unfamiliar terminology. SOURCE: IM:293 SOURCE: SurveyMonkey. (1999-2022). Writing good survey questions. Retrieved January 18, 2022, from https://www.surveymonkey.com/mp/writing-survey-questions/ 42. B Multiple methods; value to decision makers. Marketing research is the systematic gathering, recording, and analyzing of data about a specific issue, situation, or concern that affects a market and impacts business decision-making. Good marketing research uses multiple methods to increase reliability of findings and provides value to decision makers. Good marketing research does not rely solely on a single method, nor does it collect as much information as possible, as extraneous data gathered might be costly and not relevant or valuable to decision makers. SOURCE: IM:428 SOURCE: QS Study. (n.d.). Characteristics of good marketing research. Retrieved January 18, 2022, from https://qsstudy.com/characteristics-of-good-marketing-research/ 43. B Everywhere. Marketing occurs wherever customers are present—in all kinds of businesses. Customers can be individuals like you, businesses, or institutions such as schools. Marketing can be done online, in an office, in a store, in a school, at home, and in thousands of other locales. While it is true that marketing occurs in businesses, at school, and online, none of those answers best sum up all of the places where marketing occurs. SOURCE: MK:001 SOURCE: LAP-MK-901—Have It Your Way! (Nature of Marketing) 44. C The manufacturer from which to buy the product. When it comes to the place element, getting a selected product in the right place at the right time is all about creating convenience for the customer. When developing the place element of their marketing mix, marketers consider which manufacturer to buy the product from, when to buy the product, and how much of the product to order, among other things. Focusing on how to bring in the revenue that the business needs is something marketers would consider in the price element of the marketing mix. How the product might affect their image is something marketers would consider in the product element. Which messages to send and media to use would be considered in the promotion element. SOURCE: MP:001 SOURCE: LAP-MP-001—Pick the Mix (Nature of Marketing Strategies) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 19 45. D It takes more resources to pull off successfully. Segment marketing is the classification of customers into similar groups to appeal to one or more individual segment(s). One disadvantage of segment marketing is that it takes more resources to pull off successfully. Since the product is usually more complex, it can be more difficult to produce—requiring more creativity during design and more money during production. Two advantages of segment marketing are that it is more precise than mass marketing and that it aims to find out customers' specific needs and meet them. Communicating a broad message to a large audience is an advantage of mass marketing, not a disadvantage of segment marketing. SOURCE: MP:003 SOURCE: LAP-MP-003—Have We Met? (Market Identification) 46. A To increase market share by 5% by the end of the fiscal year. A marketing objective or goal should be SMART—specific, measurable, achievable, realistic, and time-bound. Of the four alternatives provided, only one has a set time limit: to increase market share by 5% by the end of the fiscal year. Although determining how many hours each part-time employee worked last week involves focusing on a specific period of time, it does not have a set time limit or deadline for completing the goal successfully. While identifying 10 wholesale and retail intermediaries and decreasing production costs by 12% are specific and measurable, they are not time-bound. SOURCE: MP:007 SOURCE: LAP-MP-007—A Winning Plan (Nature of Marketing Plans) 47. D External. Environmental scanning involves collecting information about the external environment surrounding a business, such as ethnic/cultural factors, political factors, social factors, technological factors, etc. External factors impacting a company can relate to regulation and/or the environment, but not necessarily so. SOURCE: MP:008 SOURCE: Capozzi, C. (2019, January 11). What is the difference between an environmental analysis & a SWOT analysis? Retrieved January 13, 2022, from https://smallbusiness.chron.com/difference-between-environmental-analysis-swot-analysis20684.html 48. A It is based on expert opinion. Qualitative sales forecasting is based on expert opinion and personal experience. Qualitative sales forecasting lacks a high level of accuracy due to possible errors in judgment, unexpected changes, and potential bias. Quantitative sales forecasting is based on both numerical data and past sales records. SOURCE: MP:013 SOURCE: LAP-MP-013—Futurecast (The Nature of Sales Forecasts) 49. A Expert system. The software program that the mechanic used to diagnose the problem with Gary's company car is an example of an expert system. An expert system is a software program designed to mimic the knowledge of human experts and is commonly used in fields such as medicine, finance, sales, and automotive repair. A database is computerized storage for information and facts. Computer-aided design (CAD) is the use of computer technology to plan, design, and test new products. Voice over Internet Protocol (VoIP) is a technology that allows users to make phone calls over the internet. The mechanic did not utilize a database, CAD, or VoIP. SOURCE: NF:003 SOURCE: LAP-NF-004—TECH-tastic (Technology's Impact on Business) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 20 50. C To time their promotions appropriately. Promotional records are documents containing information about communications that businesses use to inform, persuade, or remind customers of their products, images, or ideas. A key reason it is important for businesses to keep promotional records is to time their promotions effectively. Another primary reason is to evaluate the effectiveness of their promotions. Maintaining adequate inventory levels is a reason that businesses use inventory records, not promotional records. Discussing reasons for an employee's promotion relates to personnel records rather than promotional records. Documenting employees' regular and overtime wages is a reason that businesses use payroll records, not promotional records. SOURCE: NF:001 SOURCE: LAP-NF-001—Record It (Business Records) 51. D Demographics. The data the business received from the survey are an example of demographics—the physical and social characteristics of the population. Age, gender, income, and employment status, among several other factors, are all trends that businesses pay close attention to during an environmental scan. The society and culture information category focuses on remaining sensitive to customer needs and wants based on the changes in society and culture, such as changing family roles or concern for fitness and health. The economy category focuses on making business decisions to satisfy customers and remain profitable. Economic factors that businesses should pay attention to during an environmental scan include interest rates, inflation, and the stage of the business cycle (prosperity, recession, recovery, etc.). The government category deals with political factors that affect business decision-making such as changing laws and regulations, monetary and fiscal policies, and import/export restrictions and regulations, among others. The data collected from the survey were not examples of the society and culture, economy, or government categories of information. SOURCE: NF:015 SOURCE: LAP-NF-015—Get the 4-1-1 (Conducting an Environmental Scan) 52. C Inventory management. Inventory management involves supervising and controlling the number of finished products a company has in stock. Aneeq is experiencing an ethical dilemma in inventory management because he doesn't know how to deal with potentially spoiled inventory due to a storage issue. Purchasing is the buying of goods and services for a business. This scenario does not involve any use of company equipment or potential violations related to the environment. SOURCE: OP:190 SOURCE: LAP-OP-190—Above Board (Ethics in Operations) 53. A Evaluate the project's budget. Evaluating finances is one of the most important ways to know whether or not a project can be considered a success. Ryan already has an idea about the success of his project in terms of customer satisfaction and scope, but he needs to evaluate the budget and expenses to know if it was a financial success. While he might eventually find ways to save money when planning the next dance, Ryan first needs to evaluate the budget to know how well the project did financially. Asking students about their favorite parts of the dance will not help Ryan know how much money was made on ticket sales. Examining the project's schedule also will not help Ryan know how much money was made on ticket sales. SOURCE: OP:521 SOURCE: LAP-OP-521—Making the Grade (Evaluating Project Success)

54. D Make-or-buy decision. When a purchasing specialist needs to decide whether the company can make needed parts or should purchase them from a supplier, they are engaging in a make-or-buy decision. During the competitive bidding process, the purchasing specialist provides specific information about the goods and services that the company needs and asks for a price quote from suppliers. The potential suppliers then bid for the account and the purchasing specialist chooses the best one. A purchasing specialist conducts a supplier performance evaluation after the purchased goods or services have been delivered. Retail-or-wholesale decision is a fictitious term. SOURCE: OP:015 SOURCE: LAP-OP-015—Buy Right (Purchasing) 55. A Cost-based pricing. In cost-based pricing, businesses determine a product's total cost and then charge a predetermined markup to create a profit. The break-even point occurs when a company's total expenses equal their total sales. In price-based costing, businesses determine how much customers will pay for a product, then they figure out how to produce it for a cost that still leaves room for profit. Economies of scale happen when a business creates enough of a product to spread out and dilute its fixed costs. SOURCE: OP:024 SOURCE: LAP-OP-024—Watch Your (Over) Head (Overhead/Operating Costs) 56. D Marketing communications. Marketing communications employees perform marketing activities that inform, remind, and/or persuade the targeted audience of ideas, experiences, goods/services, and/or images. Examples of marketing communications techniques include advertising, direct marketing, social media/digital marketing, publicity/public relations, and sales promotion. Careers in professional selling involve marketing and management activities that determine customer needs/wants and respond through planned, personalized communication to influence purchase decisions and enhance future business operations. Marketing research jobs focus on marketing activities that involve determining information needs, designing data collection processes, collecting data, analyzing data, presenting data, and using data for marketing planning. Merchandising careers include marketing activities that focus on efficient and effective product planning, selection, and buying for resale. SOURCE: PD:025 SOURCE: LAP-PD-025—Go for It! (Careers in Business) 57. D Black hat marketing. Black hat marketing includes unethical strategies and techniques that seek to manipulate search engine rankings, including cookie stuffing and keyword spamming. White space marketing is a form of marketing that uses innovation to meet unspoken customer needs. Keyword cannibalization occurs when too many similar keywords are spread throughout a webpage and compete with each other; this is an ineffective business practice, but not necessarily unethical. Search engine optimization (SEO) is the process of designing and submitting web pages so that they can be found easily by spiders to obtain a good position in the search results. SOURCE: PD:137 SOURCE: Marketing Schools. (2020, November 14). Black hat marketing: Internet marketing using unethical means. Retrieved January 10, 2022, from https://www.marketingschools.org/types-of-marketing/black-hat-marketing/ 58. C Procedure. A procedure is a step-by-step process that employees must follow while performing a specific task. A restaurant might have several procedures in place—a procedure for cleaning up once the day is over and a procedure for putting together specialty sandwiches, for example. A policy is any guideline explaining how employees are to act. "Protocol" is often used to describe an organization's overall set of guidelines rather than a specific rule. A precedent is an earlier event used as an example for subsequent action. SOURCE: PD:250 SOURCE: LAP-PD-250—Do You Follow? (Adhering to Company Protocols and Policies) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 22 59. A Confidentiality. Confidentiality is the practice of keeping information secret or private. Certain information must be kept confidential so the organization can remain competitive, respect stakeholders, and protect individuals' personal privacy. In the workplace, confidentiality is usually applied to business decisions that involve customer data or marketing information or that are not public knowledge. In this scenario, Naomi did not demonstrate a breach in company policy regarding health and safety, conflicts of interest, or use of property. SOURCE: PD:251 SOURCE: LAP-PD-251—Know the Code (Following Rules of Conduct) 60. C Public relations. Marketing/Product communications and media trainer are positions that fall under the marketing career of public relations. People in public relations are in charge of establishing good relationships between their business or organization and the public, as well as building a positive public image. This includes writing and sending out press releases, communicating and developing relationships with the public and media, and managing crises that could threaten reputations. The goal of customer service is to keep customers coming back, and it usually involves dealing directly with customers and creating goodwill. Product/Brand management involves monitoring and developing one or more existing products or brands, and planning the entire life span of them. Digital marketing involves the use of the internet, social media, smartphones, and other technology to promote products and attract customers. SOURCE: PD:024 SOURCE: LAP-PD-024—Career Opportunities in Marketing 61. B More expensive because a business selling an expensive product can afford more expensive research. Pricing affects the type of research conducted, the length of the research project, and the amount of money spent on research. Because Lee wants to sell an expensive product, he can afford to spend more money on the research. Spending more money does not necessarily mean faster results. Sometimes, companies spend millions of dollars to research new products. The specific camera in this scenario has not already undergone research. SOURCE: PI:001 SOURCE: LAP-PI-001—The Price Is Right (Nature of Pricing) 62. C Loss of customers. Discrimination can lead to job loss and damaged relationships. At the institutional level, it can lead to loss of customers, decreased revenue, and damaged investor and public relations. Mental health issues, decreased ability to form positive relationships, and increased difficulty finding enjoyment in life are consequences that individuals might experience as a result of discrimination. SOURCE: EI:017 SOURCE: LAP-EI-917—Don't Jump to Conclusions (Recognizing and Overcoming Personal Biases and Stereotypes) 63. B Airlines. Dynamic pricing uses computer algorithms to adjust prices based on competition, consumer demand, and other factors. Airlines, hotels, and event venues commonly use dynamic pricing strategies. Retailers, freelancers, and restaurants would use other pricing strategies instead of flexible, technologybased dynamic pricing algorithms. SOURCE: PI:016 SOURCE: Decker, A. (2021, June 8). The ultimate guide to pricing strategies. Retrieved January 25, 2022, from https://blog.hubspot.com/sales/pricing-strategy 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 23 64. D Price fixing. By agreeing to implement a high price range for their products, the three drugstore owners are engaging in price fixing. 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. Price discrimination is an illegal activity in which a business charges different customers different prices for similar amounts and types of products. Bait-and-switch advertising involves promoting a low-priced item to attract customers to whom the business then tries to sell a higher-priced item. Unit pricing is a pricing technique which shows the price per unit (ounce, pound, etc.) along with the total price of the item. SOURCE: PI:002 SOURCE: LAP-PI-003—Make Cents (Factors Affecting Selling Price) 65. D Discontinuation. The elimination of weak products is also known as product discontinuation. Weak products are those with declining sales and profitability. Product discontinuation must be planned carefully to prevent damaging the company's image. Some companies eliminate a weak product slowly so that customers have time to find replacements, or they may continue to provide service for a discontinued product for a certain period of time to retain customer goodwill. Product/Service managers must weed out weak products because of their costs to the company. Product annihilation, extermination, and interruption are not recognized terms. SOURCE: PM:001 SOURCE: LAP-PM-017—Serving Up Products (Nature of Product/Service Management) 66. A Maturity. The maturity stage is usually the longest-lasting stage of the product life cycle. Most of the products in widespread use are in the maturity stage right now. In this stage, the product has achieved acceptance by most of its potential buyers. Sales are still high, but sales growth slows down. Profits from the product stabilize or start to decrease a bit. The introduction stage, decline stage, and growth stage are generally more short-lived than the maturity stage. SOURCE: PM:024 SOURCE: LAP-PM-024—Get a Life (Cycle) (Product Life Cycles) 67. B Decline. The typewriter is in the final phase of the product life cycle—decline. Consumers can still purchase typewriters, but demand is low. Desktop computers, laptops, smartphones, and tablets are in the growth and maturity phases. Some artificial intelligence (AI) products are in the introduction phase. SOURCE: PM:039 SOURCE: TWI. (2022). What is a product life cycle? (Definition, stages and examples). Retrieved January 25, 2022, from https://www.twi-global.com/technical-knowledge/faqs/what-is-aproduct-life-cycle 68. B Packaging and labeling. There are many reasons why companies package and label products, including to help sell products, to protect and safeguard products, to create a good impression of products, and to communicate product benefits. These are not purposes of product advertising campaigns, release parties and events, or marketing promotions. SOURCE: PM:040 SOURCE: LAP-PM-040—Safe and Sound (Ethics in Product/Service Management) 69. A Substitute products. In this scenario, streaming services are an example of substitute products—goods and/or services that can be used in place of others. Because streaming services satisfy the same needs/wants of customers, they are considered a substitute for cable or satellite TV. Complementary products are goods and/or services that are used together (e.g., skirts and blouses, software and computers). Lateral thinking is a process used to solve problems and generate ideas in purposely illogical ways. Starbursting is a brainstorming technique that involves using a star-shaped diagram to ask and answer basic questions about an issue or situation. SOURCE: PM:127 SOURCE: LAP-PM-127—Unleash Your Mind (Techniques for Generating Product Ideas) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 24 70. C Time. Time standards are established specifications that monitor the amount of time needed to complete specific business activities. Cindy receiving an email saying her order would be delivered in 30 minutes illustrates time standards. Quantity standards are used to measure the amount of work produced or to be done. Cost standards indicate how much a project or product costs. Quality standards are used to measure the degree of excellence of a good or service. SOURCE: PM:019 SOURCE: LAP-PM-008—Raise the Bar (Grades and Standards) 71. C Express warranty. An express warranty is a warranty that is written or expressed verbally. Because the salesperson verbally informed Aaron of the lifetime warranty and he signed a written contract, this is an example of an express warranty. An implied warranty is an unwritten, unspoken warranty understood by the customer and the seller that the product will perform as expected. A guarantee (often called a moneyback guarantee) is a promise made to the consumer that a product's purchase price will be refunded if that product is not satisfactory. A strategy is a plan of action for achieving goals and objectives. SOURCE: PM:020 SOURCE: LAP-PM-004—Promises, Promises (Warranties and Guarantees) 72. A A food and drug safety regulatory body. A food and drug safety regulatory body, such as the U.S. Food and Drug Administration (FDA), would order that the product be removed from the market. The FDA administers food, drug, medical, and cosmetic laws that protect consumers' health. Among food and drug safety regulatory bodies' several responsibilities are making sure food supply is safe and removing harmful products from the market. Agencies such as the U.S. Federal Trade Commission (FTC) aim to protect consumers by helping them make good buying decisions and by eliminating unfair business competition. Consumer product safety commissions typically carry the bulk of the responsibility for ensuring consumer product safety. Agencies that regulate financial products, including the Consumer Financial Protection Bureau (CFPB) in the United States, work to make financial products safe for consumers by educating and informing them; by supervising banks, credit unions, and other financial services providers; and by studying consumer behavior. SOURCE: PM:017 SOURCE: LAP-PM-007—Protect and Serve (Consumer Protection) 73. D To satisfy customers' desire for variety. Expansion is a product-mix strategy in which a business expands its product mix by adding additional product items or product lines. Satisfying customers' desire for variety is one of several reasons why a business may choose expansion. Differentiating from the competition is a reason why a business may use positioning—a strategy that a business may use to create a certain image or impression of a product in the minds of consumers. Improving products for social good and keeping up with changing consumer preferences are reasons why a business may use alteration—a strategy in which a business makes changes to its products or product lines. SOURCE: PM:003 SOURCE: LAP-PM-003—Mix and Match (The Nature of the Product Mix) 74. D Quick delivery. Positioning a flower shop on its same-day service is positioning by quick delivery. Quick delivery is a strategy that businesses can employ to get their product into customers' hands faster than the competition. Durability refers to how long a product lasts before needing to be replaced or repaired. Ease of purchase refers to businesses making their processes for ordering, shipping, making returns, etc., as simple as possible. Performance is how well a product does the job it was designed to do. The durability, ease of purchase, and performance were not specified in this scenario. SOURCE: PM:042 SOURCE: LAP-PM-042—Getting Piece of Mind (Factors Used To Position Products/Services) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 25 75. C It's easier to add new products to current promotional campaigns. Family branding involves using the same brand for related products in a product line. It's easier to add new products to current promotional campaigns for a family brand, and because the products are part of one big "family," the family brand can take on the image of the company. However, if one product in the family is found to be of poor quality, then the entire brand family could suffer. Individual branding involves using different brands for products owned by one company. Each individual brand has its own unique identity that is unrelated to other brands owned by the parent company. In addition, individual brands allow a business to sell to very different markets. SOURCE: PM:021 SOURCE: LAP-PM-021—It's a Brand, Brand, Brand World! (Nature of Product Branding) 76. D Brand voice. A company's brand voice is like the personality of the business. Winston's Finest Watches is a prestigious, luxury company, so a casual online presence with slang could cost the company customers. The business does not need to reconsider its vision statement, slogan, or target audience. SOURCE: PM:276 SOURCE: Clark, S. (2021, February 17). Does your brand's voice connect with your customers? Retrieved January 25, 2022, from https://www.cmswire.com/digital-marketing/does-yourbrands-voice-connect-with-your-customers/ 77. D Identity. A brand identity consists of those elements that are instantly recognized as representing a particular business or product, like logos, colors, names, images and graphics, and design. A brand personality is the projection of a brand that encompasses its values and emotional connections with consumers. Brand values are beliefs or qualities that a corporate brand stands for and is built around. A brand promise is a business's spoken or unspoken agreement with customers that it will consistently meet their expectations and deliver on its brand characteristics and values. SOURCE: PM:206 SOURCE: LAP-PM-206—Corporate Identity (Nature of Corporate Branding) 78. A Convenience-based. Brand positioning is the strategy a company uses to set itself apart from its competitors. A technology company with automatic software updates and an easy-to-use platform would benefit most from a convenience-based positioning strategy. Based on the description, customer service, price-based, and quality-based positioning strategies would be less effective than a convenience-based strategy. SOURCE: PM:207 SOURCE: Patel, S. (2021, October 4). A complete guide to successful brand positioning. Retrieved January 25, 2022, from https://blog.hubspot.com/sales/brand-positioning-strategy 79. D Before purchase. Customer touchpoints are the instances when brands interact with customers. On the customer journey, stages are separated into before, during, and after purchase. Touchpoints that occur before purchase include commercials and advertisements, social media, company website, search engine optimization (SEO), word of mouth, and others. Touchpoints that occur during the purchase include catalogs, brochures, product demos, customer reviews, and point of sale. After-sale touchpoints include feedback surveys, thank-you messages, email lists, billing, and more. SOURCE: PM:277 SOURCE: QuestionPro. (2021). A guide to customer touchpoints: Definitions, examples, and more! Retrieved December 28, 2021, from https://www.questionpro.com/blog/customertouchpoints/ 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 

80. A Increased product/company awareness. Due to Apple's promotion of its new iPhone, Alexis is aware that the product exists. Promotion helps customers learn that products exist and where they are available. Increased sales are the most obvious way a business benefits from promotion, but the scenario above is not an example of this benefit, because Alexis is not purchasing the iPhone yet. The promotion is not inspiring Alexis to pursue employment with Apple, nor is it diminishing her loyalty to iPhone products. SOURCE: PR:001 SOURCE: LAP-PR-901—Razzle Dazzle (Nature of Promotion) 81. B Product. By putting up a large promotional sign in the window of her coffee shop, Anna's business is using product promotion. The specific goal of product promotion is to persuade customers to buy a particular good or service. It is used to stimulate purchases of goods or services. Institutional promotion (or corporate promotion) does not attempt to sell a good or a service. Rather, it is used to create a certain image of the company in customers' eyes. Public service promotions are a type of institutional promotion used to inform customers about noncontroversial issues that are in the public's best interest. SOURCE: PR:002 SOURCE: LAP-PR-902—Know Your Options (Product and Institutional Promotion) 82. A Specialty. In this scenario, the Porsche is an example of a specialty product. Specialty products are goods and services with special or unique characteristics that customers are willing to exert special efforts to obtain. Shopping products are products purchased after the customers compare goods and stores to get the best quality, price, and/or service, such as cell phone plans or laptops. Cars can be considered shopping products, but because Jacob exerted special effort like researching for hours and saving money for years to buy the sports car, the example is not a shopping product. Convenience products are items purchased quickly and frequently without much thought or effort, such as eggs or toothpaste. Unsought products are products that consumers do not actively seek, such as life insurance or funeral services. SOURCE: PR:003 SOURCE: LAP-PR-001—Spread the Word (Nature of the Promotional Mix) 83. B Tre films videos promoting shoes he's received for free from a brand as if he purchased them. Tre must clearly disclose the business and items he's received for free in exchange for advertising and endorsing the product. An alcohol company verifying website visitors' ages, labeling sponsored posts accordingly, and not requiring personal information from children are examples of ethical scenarios in promotion. SOURCE: PR:099 SOURCE: Indeed. (2021, April 1). Advertising ethics: What they are and how they apply. Retrieved December 28, 2021, from https://www.indeed.com/career-advice/careerdevelopment/advertising-ethics 84. C Obtain parental consent before collecting personal information. Many governments around the world have created laws and regulations to protect children's privacy online. In the United States, for instance, the Children's Online Privacy Protection Act (COPPA) is designed to protect children under the age of 13 from disclosing personal information online. Jordan's company must obtain parental consent before collecting personal information from children online. Parents must be able to access their children's personal information. Companies must retain collected personal information only as long as is necessary to fulfil the reason why it was collected. Children are not required to provide their parents' or their phone numbers. SOURCE: PR:101 SOURCE: Federal Trade Commission. (2020, July). Complying with COPPA: Frequently asked questions. Retrieved December 22, 2021, from https://www.ftc.gov/tips-advice/businesscenter/guidance/complying-coppa-frequently-asked-questions-0 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 27 85. D Product placement. Product placement is a type of "other" advertising media that uses products as props in movies, TV shows, and video games. The main character in Amanda's favorite show driving a Honda and drinking a bottle of Coca-Cola are examples of product placement because the products were used as props and the logos were clearly displayed. Movie theater advertising is shown prior to the screening of a film in a movie theater and also includes posters, standees, and other advertisements present in a movie theater lobby. Telemarketing is an advertising medium that utilizes phone service to promote a product either by calling prospective customers or providing a number for them to call. Directory advertising informs people about how to contact a particular business, often with a phone number, street address, or website. SOURCE: PR:007 SOURCE: LAP-PR-007—Ad-quipping Your Business (Types of Advertising Media) 86. A Evangelist marketing. Evangelist marketing is a form of word-of-mouth marketing in which the organization develops volunteers or advocates and encourages them to spread the word about the organization or product. Influencer marketing involves already established opinion leaders who influence the opinions of others. Product seeding involves gifting samples to influential people to increase reach. Referral programs incentivize happy customers to recommend products to their friends and family. SOURCE: PR:247 SOURCE: Smart Insights. (2019, September 5). Viral & word-of-mouth marketing. Retrieved December 22, 2021, from https://www.smartinsights.com/online-pr/viral-marketing/ 87. A Bruno receives an oil change digital coupon from his mechanic. Direct marketing addresses and communicates with the audience directly instead of via mass media. Direct marketing attempts to personalize the message to its target audience. Indirect marketing is broader and includes TV and radio commercials. Bruno receiving an oil change digital coupon from his mechanic is an example of direct marketing. Joanie, Samira, and Malik all experienced indirect marketing. SOURCE: PR:089 SOURCE: Kenton, W. (2020, October 20). Direct marketing. Retrieved January 25, 2022, from https://www.investopedia.com/terms/d/direct-marketing.asp 88. A Search engine optimization. Pull marketing draws customers to the product and encourages them to seek it out. Push marketing, which is the opposite of pull marketing, brings the brand or product to customers. Pull marketing is also known as inbound marketing, while push marketing is known as outbound or direct response marketing. Examples of pull marketing include search engine optimization (SEO), social media, and cross-promotion. Examples of push marketing include targeted emailing, pointof-sale marketing, and TV advertising. SOURCE: PR:249 SOURCE: Wheeler, R. (2020, December 28). When to push and when to pull: Marketing strategies. Retrieved December 28, 2021, from https://www.fool.com/the-blueprint/push-vs-pullmarketing/ 89. C Call to action. The call to action creates a sense of urgency and prompts readers to send a message, visit a website, purchase today, etc. The headline grabs the reader's attention and explains the benefit the product provides. The image illustrates the offer. The body includes details about the offer, business, and other important information. SOURCE: PR:014 SOURCE: Crown Advantage. (2021). 7 elements of print advertising. Retrieved December 28, 2021, from https://www.crownconnect.com/7-elements-print-advertising/ 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 28 90. D Add white space. Adding white space will help improve readability, create balance, and focus readers' attention. Decreasing the font size, adding more images, and decreasing the margins would make the advertisement more difficult to read and less effective. An advertisement should make the best use of space, characters, and imagery to clearly communicate the message. SOURCE: PR:251 SOURCE: Denver Digital. (2020, April 10). The importance of white space in advertising. Retrieved December 28, 2021, from https://denverdigital.com/blog/2020/04/10/the-importance-of-whitespace-in-advertising/ 91. D Community relations. Community relations focuses on developing a business's relationship with the local community, often by organizing events, visiting schools or businesses, giving back to the community, etc. Public affairs, or lobbying, focuses on government and legislative changes. Crisis management is a business's response after a disaster. Employee relations, or internal public relations, involves employee communications and events. SOURCE: PR:252 SOURCE: Bright Network. (2021). A guide to the different types of PR. Retrieved December 28, 2021, from https://www.brightnetwork.co.uk/career-path-guides/marketing-pr/different-types-pr/ 92. B A cell phone and a smartwatch. A cell phone and a smartwatch are both tangible products, which are physical products that are capable of being touched, smelled, tasted, seen, or heard. A warranty and a social media app are not tangible products. Rather, they are intangible products—assets that are not physical in nature and not capable of being detected through the senses. SOURCE: SE:017 SOURCE: LAP-SE-017—Sell Away (The Nature and Scope of Selling) 93. B Individual needs. Mary Jane's customer experience is influenced by her individual needs. Due to her lack of knowledge of smartphones, Mary Jane needs more guidance throughout the process of buying one than her granddaughter would need. The salesperson will need to cater to her needs to help her make the best purchase. In this case, Mary Jane's customer experience is not influenced by promotion (customer service the business promises through the media), past experience (service she has received before), or word-of-mouth information (service based on recommendations from people she trusts). SOURCE: SE:076 SOURCE: LAP-SE-076—Go Beyond the Sale (Customer Service in Selling) 94. A Offering simple warranties and guarantees for products and services. Customers like to know that businesses stand behind their products and will repair or replace them if needed. However, warranties and guarantees should be simple and clear so customers will know exactly what to expect. You don't want your customers to feel tricked or confused. Companies can also foster loyalty by offering credit, creating simple instructions and user's manuals, and providing quality maintenance and repair services (instead of outsourcing maintenance and repair services to another company). SOURCE: SE:828 SOURCE: LAP-SE-828—Keep Them Loyal (Key Factors in Building Clientele) 95. B Corporate goals and objectives. Internal factors, those forces present within the company itself, can affect selling policies. One example of an internal factor is a company's goals and objectives. A company's goal may be to establish a reputation for quality service after the sale, for example. This would probably affect its return and maintenance policies. The gross domestic product (GDP) is the final market value of the total outputs of all goods and services produced within a country's geographic boundaries during a year's time. The GDP is highly unlikely to impact selling policies. Customer wants and needs and the actions of competitors are examples of external factors influencing selling policies. SOURCE: SE:932 SOURCE: LAP-SE-932—Sell Right (Selling Policies) 2022 HS ICDC MARKETING CLUSTER EXAM—KEY 29 96. B Trusting. Sales laws regulate what salespeople can do, so customers can trust what they say. Just like laws against violence and theft protect our society, selling laws protect both customers and the economy. Without laws, businesses would be free to do whatever they wanted, including lying and misrepresenting their products, to convince customers to buy from them. Businesses also wouldn't have to keep their promises or uphold their warranties. A lack of sales laws would not as strongly affect a customer's ability to buy from, fund, or access a business. SOURCE: SE:106 SOURCE: LAP-SE-106—Keep It Real—In Sales (Legal and Ethical Considerations in Selling) 97. D What styles, colors, and models are available. It's very common for customers to ask if a product comes in another size, color, style, etc. If a salesperson doesn't have the needed product information, they could easily lose the sale. While customers could potentially ask if they can have more time to make a decision and if other people have bought products from the salesperson before, salespeople don't need to be prepared with product knowledge to answer those questions. Customers are unlikely to ask a salesperson about other competitors in the area who sell similar items. SOURCE: SE:062 SOURCE: LAP-SE-062—Get Informed (Acquiring Product Information for Use in Selling) 98. C Hidden. The salesperson has identified a hidden benefit. Hidden benefits are advantages of goods or services that cannot be seen or understood without the assistance of a salesperson. By looking at the two cases, Kelly didn't know about their durability and warranties until the salesperson explained the hidden benefit of the more expensive one. An obvious benefit is an advantage of a product that is apparent, plain to see, and easily recognizable. A unique, or exclusive, benefit is available only from the salesperson's product or service. SOURCE: SE:109 SOURCE: LAP-SE-109—Find Features, Boost Benefits (Feature-Benefit Selling) 99. B It reduces the amount of selling time required for each sale. When salespeople successfully identify customer needs, they are able to quickly suggest appropriate products to satisfy those needs, shortening the sales process. While identifying customer needs certainly helps in closing sales, it does not guarantee a successful close. Successfully identifying customer needs increases the number of customers each salesperson can serve because less time is spent with each customer. Customer returns and exchanges decrease, not increase, when needs are identified because customers obtain products and services that more effectively satisfy their needs. SOURCE: SE:048 SOURCE: LAP-SE-048—Set Your Sales (The Selling Process) 100. D Comfort and convenience. Raina selects a product that will make her life easier and less stressful. Having the luxurious mattress shipped to her home is convenient and will enhance Raina's comfort. Raina does not purchase the mattress out of fear of loss, for security or protection, or out of desire for direct or indirect financial gain.