SAMPLE EXAM

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Posted online March 2023 by DECA Inc.

SAMPLE

EXAM

MARKETING CAREER CLUSTER

THE MARKETING CAREER CLUSTER EXAM IS

USED FOR THE FOLLOWING EVENTS:

APPAREL AND ACCESSORIES MARKETING SERIES AAM

AUTOMOTIVE SERVICES MARKETING SERIES ASM

BUSINESS SERVICES MARKETING SERIES BSM

BUYING AND MERCHANDISING TEAM DECISION MAKING BTDM

FOOD MARKETING SERIES FMS

INTEGRATED MARKETING CAMPAIGN–EVENT IMCE

INTEGRATED MARKETING CAMPAIGN–PRODUCT IMCP

INTEGRATED MARKETING CAMPAIGN–SERVICE IMCS

MARKETING COMMUNICATIONS SERIES MCS

MARKETING MANAGEMENT TEAM DECISION MAKING MTDM

PROFESSIONAL SELLING PSE

RETAIL MERCHANDISING SERIES RMS

SPORTS AND ENTERTAINMENT MARKETING SERIES SEM

SPORTS AND ENTERTAINMENT MARKETING TEAM DECISION MAKING STDM

Test 1264 MARKETING CLUSTER EXAM 1

, Columbus, Ohio

What effect do some environmental laws have on businesses?

Control exterior landscapes

Require more employees

Increase operating costs

Limit equipment purchases

The purpose of customs regulations is to

uphold the longstanding traditions of the country.

ensure that nothing foreign enters the country.

prevent immigration into the country.

control the flow of goods into and out of the country.

Walmart, Domino's, and Avis Rent-a-Car are examples of

retailers.

wholesalers.

agents.

industrial distributors.

One common barrier to the use of technology in channel management is

the overwhelming number of technology options.

employees' inability to master new technology.

the possibility for increased productivity and efficiency.

companies' refusal to implement new tools.

When a channel leader requires another channel member to purchase and use an expensive electronic data

interchange system in order to maintain its position in the distribution chain, the channel leader is engaging in

the unethical practice of

diplomacy.

control.

deception.

coercion.

One reason a channel of distribution that has strong leadership is often able to avoid conflict within the channel

is because the leader has the

authority to demand cooperation.

ability to provide training.

capacity to regulate change.

personality to develop friendships.

Which of the following is an example of an affinity partnership:

A restaurant gives discounts to those who join its rewards program.

An airline offers frequent flyer miles to travelers.

A credit card company offers cards with sports teams' logos.

A bank pays to have its name on a local concert venue.

Test 1264 MARKETING CLUSTER EXAM 2

, Columbus, Ohio

Communication among coworkers and supervisors should be

an optional formality.

an opportunity for feedback.

saved for individual performance reviews.

contained in one meeting.

When should a visual aid be shown during a presentation?

At the end of the presentation to summarize

When the audience gets bored and restless

During the entire presentation to maintain interest

When the speaker shares relevant information

10.

Which of the following is an open question:

What is your presentation about?

Is your presentation finished?

Do you need a projector for your presentation?

Are you ready for your presentation?

11.

A primary use of flowcharts in business documents or presentations is to

identify trends.

explain relationships.

compare and contrast data.

summarize numerical data.

12.

A basic purpose of writing a daily activity report is to provide a(n)

permanent record of simple but important facts.

overview of work completed and planned.

basis for recommendations to employees.

evaluation of the achievement of company goals.

13.

What should employees do to maintain a customer-service mindset?

Decide how to spend their break time

Listen to the words of soothing songs

Devote their full attention to customers

Maximize conversations with coworkers

14.

Which of the following is an example of ethical behavior in marketing-information management:

Changing survey feedback to reflect a positive research outcome

Distributing the phone numbers of customers without their permission

Implementing procedures to protect the privacy of survey respondents

Using complex processes for customers to opt out of emails

Test 1264 MARKETING CLUSTER EXAM 3

, Columbus, Ohio

15.

By promoting their goods and services and offering a number of purchasing arrangements, businesses help to

create __________ utility.

financial

time

possession

place

16.

Why are consumer goods often poor quality in a communist command economy?

People in a communist command economy consume everything that they produce.

People in a communist command economy do not need quality consumer goods.

The government pays workers based on quantity rather than quality.

High taxes take resources away from producers.

17.

What should economists do to account for the effects of inflation on GDP?

Avoid double counting

Use only nominal GDP

Use a price deflator

Use the balance of trade

18.

What situation often exists when the economy is in a downturn, and many people are unemployed and cannot

buy more than the basic necessities?

Trade deficit

Inflation

Excess demand

Recession

19.

Kelly runs a small home bakery. To help her fulfill more orders, she hired three part-time employees. The

additional workers increased her output, so she hired another three workers. To her surprise, Kelly's output

actually decreased once she added the last three workers. This example best demonstrates the

harm of taking business risks.

law of diminishing returns.

danger of hiring employees.

need for effective employee training.

20.

Which of the following circumstances is most likely to cause interest rates to increase:

Low inflation

Consistent investment spending

Economic recession

Tight money supply

21.

Feedback can be extremely valuable because it

reinforces your own opinions.

shows you what areas to improve.

gives you a chance to be defensive.

points out others' strengths.

Test 1264 MARKETING CLUSTER EXAM 4

, Columbus, Ohio

22.

Which of the following indicates a high level of self-esteem:

Believing that you should always put others ahead of yourself

Making a mistake and thinking that you are good at making mistakes

Seeing an advertisement for a job and feeling that you could handle it

Imagining how you would feel if you had already graduated

23.

Which of the following remarks represents a negative attitude:

"There's nothing fun about working except getting paid."

"Most of my coworkers aren't personal friends, but they're all right."

"My job's not the best, but it's not the worst either."

"There are some policies that are okay, and some that I don't like."

24.

Fulfilling one's obligations through words and actions in a dependable manner is __________ behavior.

routine

responsible

assertive

aggressive

25.

When people make you angry or upset, you may be able to maintain your self-control if you

frown to indicate your displeasure.

make an effort to remain calm.

use language to vent your anger.

adopt a defensive attitude.

26.

An increase in the amount of income tax people must pay is a change brought about by

government.

technology.

individuals.

society.

27.

What type of words should Rebecca use to describe her skills and accomplishments when writing her resume?

Jargon

Passive

Action

Vague

28.

What type of negotiating style often involves a "no-compromise" attitude?

Accommodating

Combative

Collaborative

Flexible

Test 1264 MARKETING CLUSTER EXAM 5

, Columbus, Ohio

29.

During the staff meeting, Madeline said, “Although I don't have all of the information that I would like to have

about the new system, I am confident that we will be able to work together and effectively handle any issues

that we may encounter along the way.” What characteristic is Madeline demonstrating in this situation?

Self-control

Recognition of others' achievements

Tolerance for ambiguity

Personal vision

30.

Hazel started her own childcare network where she connects families to available babysitters at her school.

Hazel could be described as a(n)

wholesaler.

direct salesperson.

entrepreneur.

franchiser.

31.

Mike and Sue need a source of credit to finance the purchase of their first home. Which of the following sources

of credit would best fit their need:

Sales finance companies

Credit unions

Savings and loan associations

Commercial banks

32.

Which of the following is fiat money:

A $20 bill

A check

A credit card

Gold

33.

Each pay period, Kendra has her employer automatically deposit her paycheck into her checking account so the

funds are available for use when she needs them. In this situation, money is functioning as a(n)

store of value.

medium of exchange.

form of cash.

unit of measure.

34.

Lisa charges another sole proprietor to use the extra office in the building she owns. Which of the following is

Lisa's source of income:

Interest

Rent

Dividends

Salary

35.

Broadcast advertising is an example of __________ media.

out-of-home

transit

promotional

direct mail

Test 1264 MARKETING CLUSTER EXAM 6

, Columbus, Ohio

36.

Balancing the business's objective to make a profit with the interests of all the business's stakeholders is a

primary consideration related to the business's

creative processes.

financial ethics.

forecasting methods.

maintenance activities.

37.

Which of the following phrases is most likely to be listed in an official job description:

“Edit company newsletter”

“Have 10-15 years' experience”

“Possess an associate's degree or higher”

“Able to work closely with others”

38.

One reason why a business might gather marketing information is to

manipulate data.

remain competitive.

control customers.

eliminate risks.

39.

One of the advantages of obtaining and using marketing information is that it helps business managers to

train and direct employees.

prepare documents and reports.

review and understand regulations.

predict and control risks.

40.

To handle customer complaints effectively, the first thing that employees should do is

take the customers' problems personally.

state the business's policies to prevent misunderstandings.

give the customers what they want to make them happy.

listen to the customers to understand their concerns.

41.

When Rebecca's research for her school project is complete, she's not quite sure what to do with her data. Her

friend Allison suggests coding the data, and she decides to give it a try. Why should Rebecca use coding to

organize her research findings?

It is the only method to interpret data in a meaningful way.

It prevents data entry mistakes such as omissions or duplications.

It saves time by eliminating the need to check the data for flaws and errors.

It turns large amounts of data into a form that is more easily understood.

42.

One of the goals of qualitative research is to answer questions about

"how many."

"why."

"how to."

"who."

Test 1264 MARKETING CLUSTER EXAM 7

, Columbus, Ohio

43.

Which of the following activities helps managers make smart decisions regarding the problems and

opportunities facing their businesses:

Conducting marketing research

Providing customer service

Advertising and sales promotion

Hiring new employees

44.

A company wants to collect information from various sources to determine if it should consider expanding to

international markets. What research method should the company use if it does not want to spend a lot of time

or money to obtain the information?

Experimental

Exploratory

Interview

Causal

45.

Which of the following is a type of non-probability sampling design:

Systematic random sampling

Cluster sampling

Stratified random sampling

Judgment sampling

46.

What type of data-collection method is being used when a researcher conducts a focus group?

Telemarketing

Statistical

Interview

Probability

47.

Which situation is an example of SUGGING?

A salesperson offers a customer the opportunity to try an expensive product free of charge.

A business promotes a product by sending samples to its customers without authorization.

A marketer tells a customer that they are conducting research, and then begins a sales pitch.

A telemarketer asks a customer if they know anyone who would want to buy a certain product.

48.

One reason that a business might conduct primary research rather than use secondary marketing information is

because the

secondary information may be outdated.

primary information is always error-free.

primary information is less expensive to obtain.

secondary information is usually irrelevant.

49.

Which of the following marketing functions focuses on informing all current and potential customers about the

business's products:

Marketing-information management

Promotion

Product/Service Management

Pricing

Test 1264 MARKETING CLUSTER EXAM 8

, Columbus, Ohio

50.

The owner of a business is meeting with the company's managers and supervisors to set objectives for the next

year. This group is developing the company's

market share.

business goals.

channels of distribution.

promotional mix.

51.

Marketers divide their markets by grouping customers according to their

similarities.

differences.

hobbies.

occupations.

52.

An international soft-drink company that wants to add bottled spring water to its product mix has determined

there are four major brands that currently hold the majority of the market share for that product. The strengths

and weaknesses of each potential competitor have been examined. This is an example of a(n)

purpose and mission.

action plan.

marketing strategy.

situation analysis.

53.

Which of the following is an example of how a business uses sales forecasts:

To plan purchases

To organize inventory

To manage staff

To control trends

54.

Which of the following forms of communication is the most efficient way to bring four coworkers who are located

in different cities together to simultaneously discuss a common business issue:

Video conferencing

Voice memo

Switchboard

Teleprompter

55.

The migration of people from one location to another that affects the types of products that businesses sell is an

example of a

geography issue.

population trend.

transportation route.

social lifestyle.

56.

When developing websites, businesses often use

instant messaging.

data tracking.

design software.

intranet retrieval.

Test 1264 MARKETING CLUSTER EXAM 9

, Columbus, Ohio

57.

Which of the following is an ethical dilemma related to an employee providing information in the workplace:

Steven advises a customer that Simpson Electronics does not provide personal information to other

companies without the customer's consent.

Melinda and two of her coworkers talk about their plans to work overtime next weekend.

Bob's new employer asks him to share confidential information about product-development processes that

his previous employer uses.

A customer asks Kate to email a comprehensive price list to their business.

58.

Analyzing data with Simpson's Paradox in mind can help account for

unconsidered variables or dimensions.

inconsistencies in data generation.

human error.

incorrect assumptions.

59.

Which of the following is a workplace hazard:

A landscaper develops heat stroke.

An employee falls off a ladder while painting a house.

A restaurant kitchen has a slippery spot where someone spilled oil.

A receptionist is diagnosed with carpal tunnel syndrome.

60.

Which of the following is the last step in the industrial purchasing process:

Negotiate discounts.

Select supplier.

Identify needs.

Confirm delivery.

61.

What type of production process would be best suited for a company that makes wool coats and socks that are

not in constant demand?

Intermittent

Continuous

Routing

Unit

62.

XYZ Sports has sales teams that specialize in different products within the same sport. These teams decide

what items to carry in stock, how to display items related to a particular sport, and actively solicit input from

customers to improve the goods and services. XYZ Sports has many of the elements of a __________ culture.

executive

hidden

quality

resistant

63.

Which of the following is a way that businesses often are able to save additional money:

By paying bills on time

By increasing wages and benefits

By renovating facilities

By conducting research

Test 1264 MARKETING CLUSTER EXAM 10

, Columbus, Ohio

64.

Which of the following situations is an example of employees coordinating their work efforts:

Gavin orders inventory based on the forecast that Madelyn has prepared for him.

Ed reviews his monthly financial report to verify his calculations.

Bob unpacks a shipment and places the items on shelves in the warehouse.

Sarah calls a vendor to verify the delivery date of an order, while Shelley sells products.

65.

Self-understanding helps you raise your level of self-esteem because it

identifies social activities you enjoy.

helps you develop personal interests.

compares your skills with others' skills.

gives you a true picture of yourself.

66.

What trait is the most important for marketers who work in marketing operations?

Communication skills

Analytical skills

Creativity

Tech skills

67.

What is one of the benefits of sending a job interview follow-up letter?

Allows the applicant to include a resume

Lets the applicant submit test scores

Reminds the interviewer of the applicant

Provides the interviewer with references

68.

Which of the following guidelines for writing cover letters is true:

Customize your cover letter to the position you are applying for.

Include personal information like your marital status in your cover letter.

Do not include your job qualifications and experience in your cover letter.

In your cover letter, repeat the exact information from your resume.

69.

Why is accepting responsibility for your own actions important to effective human relations skills?

People will not take advantage of you.

People will be able to depend on you.

It helps you be enthusiastic.

It helps you be objective.

70.

What are a business's organizational goals based on?

The employees' input

The customers' opinions

The industry's needs

The business's purpose

Test 1264 MARKETING CLUSTER EXAM 11

, Columbus, Ohio

71.

Businesses might consider increasing their prices during times when

customers have less disposable income.

goods and services are plentiful.

many people are unemployed.

economic conditions are good.

72.

In which kind of market does more competition exist than in any other kind of market:

Oligopoly

Monopolistic competition

Pure competition

Monopoly

73.

Competing businesses that agree to coordinate the discounts and credit terms that they offer their customers

are

target pricing.

unit pricing.

price fixing.

price planning.

74.

One of the main differences between goods and services is that services are

tangible.

physical.

produced.

performed.

75.

Which of the following is a way a business can classify a product line:

Width

Customer group

Depth

Trading up

76.

A common method of determining a product's safety is

developing warranties.

testing the product.

evaluating the product's appeal.

complying with local regulations.

77.

A trade association agrees to a set of standards and grades that will apply to products developed by its

members. How will consumers of the products benefit from these standards?

Guarantee of the same price

Ease of comparison shopping

Assurance of buyers' satisfaction

Guarantee of product availability

Test 1264 MARKETING CLUSTER EXAM 12

, Columbus, Ohio

78.

Which of the following is a purpose of warranties and guarantees:

To avoid a customer-oriented focus for the business

To protect the producer and the seller

To decrease consumer confidence about purchases

To decrease feedback from customers

79.

The Kelp Company always uses a stuffed teddy bear on labels of their products and in their television

commercials. Which of the following is the Kelp Company using:

Brand name

Trademark

Trade character

Trade name

80.

During which stage of the product life cycle is the product failure rate the highest?

Introduction

Growth

Decline

Maturity

81.

Strident Technologies recently released a new model of its popular desktop computer that functions using a

brand new software system. Customers interested in purchasing the new computer will have to buy the new

software, too. This is an example of

destructive advertising.

poor marketing.

product exposure.

planned obsolescence.

82.

Which of the following is an appropriate reason to reposition a product:

Marketers are getting bored with the current position.

The competitive environment has changed.

The company is going out of business.

The Christmas season is around the corner.

83.

Identifying new product opportunities usually requires a person to be

indifferent.

aware.

decisive.

emotional.

84.

Which of the following is an example of a touchpoint:

A reply to a customer question on social media

A company-wide email from the CEO

An in-house health insurance brochure

A staff meeting to discuss brand values

Test 1264 MARKETING CLUSTER EXAM 13

, Columbus, Ohio

85.

Pat's Pizza Place has introduced a new, low-fat pizza crust. In its advertising, it describes how tasty and healthy

the low-fat crust is. Pat's Pizza Place is using which of the following promotional communication characteristics:

Factual

Persuasive

Relevance

Repetitious

86.

An ad featuring a business's support of the Red Cross is an example of __________ advertising.

free

costly

promotional

institutional

87.

Which of the following is true about the promotional mix:

The promotional mix should always stay the same over time.

All businesses can benefit from the same promotional mix.

The promotional mix plays a key role in obtaining customers.

Advertising is the best promotional mix element.

88.

Patrick wants to keep a certain amount of his money in a safe place where he can earn interest on his savings,

and also be able to withdraw his funds without experiencing sizable financial penalties. In what type of financial

institution should Patrick consider placing his money?

The stock market

A holding company

A retirement fund

A retail bank

89.

Ad copy that says a car is "the only sports coupe named to Car and Driver's ten-best list three years in a row" is

showing uses.

making a claim.

using a testimonial.

giving features.

90.

Jenny Bee, who owns a small clothing company, is sending out an email to all of her former customers to offer

them a discount on her newest T-shirt designs. What form of marketing is Jenny Bee using?

Word-of-mouth marketing

Cause marketing

Indirect marketing

Direct marketing

91.

When a business uses a generalized portrayal of someone in its advertising, it's likely reinforcing

sugging.

socialization.

equity labels.

a stereotype.

Test 1264 MARKETING CLUSTER EXAM 14

, Columbus, Ohio

92.

Which of the following is an advantage of using the internet as a promotional tool for your business:

It reaches fewer people than traditional promotion.

Tracking results is difficult and slow.

It is more cost effective than traditional advertising.

It can make it easier for hackers to find information.

93.

What is the government likely to do if it determines that a company has engaged in deceptive advertising?

Rewrite the existing advertising copy

Require the company to place corrective advertising

Imprison the company's chief executive officer

Increase the company's sales-tax rate

94.

Where might a salesperson most likely obtain firsthand product information?

At the library

From competitors

At the factory

From customers

95.

Joaquin, a car salesman, is sure to send out a personalized thank-you note every time he makes a sale. Which

key to customer service is he demonstrating?

Having a good attitude

Keeping in touch

Being prompt

Soliciting feedback

96.

What type of computer software do businesses often use to analyze numerical sales information?

Word processing

Presentation

Spreadsheet

Graphic and design

97.

Your company delivers ice cream to its customers. Other businesses in the area do not offer this service. This is

an example of a

product's use.

unique feature.

product's durability.

business's style.

98.

A sales presentation should be based on

clearly written users' manuals.

the ability to locate new clients.

the fact that the client needs the product.

appropriate use of follow-up techniques.

Test 1264 MARKETING CLUSTER EXAM 15

, Columbus, Ohio

99.

A business may offer financial discounts for things such as early payment or buying in bulk. These discount

policies are categorized as __________ policies.

service

terms-of-sale

selling-activity

installation

100.

Which of the following represents the major functions of management:

Planning, organizing, staffing, directing, controlling

Budgeting, scheduling, developing procedures, delegating

Evaluating, motivating, training

Researching, collecting information, reporting

Marketing Cluster Exam

AAM – Apparel and Accessories Marketing Series Event

ASM – Automotive Services Marketing Series Event

BSM – Business Services Marketing Series Event

BTDM – Buying and Merchandising Team Decision Making Event

FMS – Food Marketing Series Event

IMCE – Integrated Marketing Campaign–Event

IMCP – Integrated Marketing Campaign–Product

IMCS – Integrated Marketing Campaign–Service

MCS – Marketing Communications Series Event

MTDM – Marketing Management Team Decision Making Event

PSE – Professional Selling Event

RMS – Retail Merchandising Series Event

SEM – Sports and Entertainment Marketing Series Event

STDM – Sports and Entertainment Marketing Team Decision Making Event

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This comprehensive exam was developed by MBA Research exclusively for DECA’s 2022-2023

Competitive Events Program. Items have been randomly selected from the MBA Research Test-Item

Bank and represent a variety of instructional areas. Performance indicators for this exam are at the

prerequisite, career-sustaining, and specialist levels. A descriptive test key, including question sources

and answer rationale, has been provided to the DECA chartered association advisor.

Center

, Columbus, Ohio (dba MBA Research). Each individual test item contained herein is the exclusive

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KEY

Test Number 1264

Test 1264 MARKETING CLUSTER EXAM—KEY 1

, Columbus, Ohio

Increase operating costs. Environmental laws are intended to conserve and protect the natural environment.

Many of these laws have an impact on the way businesses operate by requiring them to decrease pollution or

control waste. As a result, businesses often need to spend money to comply with the rules and regulations,

which leads to an increase in operating costs. For example, a business might need to purchase pollution-control

devices. Environmental laws do not require businesses to hire more employees or develop exterior landscapes.

The laws do not limit equipment purchases. In fact, businesses may need to buy more equipment to comply

with the laws.

SOURCE:

BL:073 Discuss the nature of environmental law

SOURCE:

U.S. Chamber of Commerce. (2022, June 28). U.S. Chamber letter on the FY23 interior,

environment, and related agencies appropriations legislation . Retrieved August 12, 2022, from

https://www.uschamber.com/assets/documents/220628_FY23_Interior_HouseApprops_2022-06-28-

190630_mmjj.pdf

Control the flow of goods into and out of the country. Customs regulations are in place to protect a country's

economy, environment, citizens, and jobs by controlling the flow of goods into and out of the country. Customs

regulations are not intended to prevent anything foreign from entering the country, or to prevent immigration.

Customs regulations are not related to the traditions of a country.

SOURCE:

BL:126 Describe the nature of customs regulations

SOURCE:

U.S. Customs and Border Protection. (2017). Customs duty information. Retrieved August 16, 2022,

from https://www.cbp.gov/travel/international-visitors/kbyg/customs-duty-info

Retailers. Retailers are businesses that buy consumer goods or services and sell them to the ultimate

consumer. Walmart, Domino's, and Avis Rent-a-Car all sell directly to consumers. Wholesalers are businesses

that buy goods from producers or agents and sell to retailers. Agents assist in the sale and/or promotion of

goods and services but do not take title to them. Industrial distributors are intermediaries that buy industrial

goods and services and sell them to industrial users.

SOURCE:

CM:003 Explain the nature of channels of distribution

SOURCE:

LAP-CM-003—Channel It (Channels of Distribution)

The overwhelming number of technology options. Using technology is a great way to improve overall channel

management success. However, the sheer number of options for channel management technologies can be

overwhelming for many companies. This is a common barrier to implementing channel management

technology. Companies generally don't refuse to implement new tools because most companies understand the

value of new technology. The possibility for increased productivity and efficiency is a benefit of using channel

management technology, not a barrier to it. Employees are generally able and willing to learn to master new

technologies.

SOURCE:

CM:004 Describe the use of technology in the channel management function

SOURCE:

DeSarbo, J. (2022, May 19). Seven steps to navigate the channel management technology

landscape. Retrieved August 12, 2022, from https://www.zs.com/insights/seven-steps-to-navigate-

the-channel-management-technology-landscape

Test 1264 MARKETING CLUSTER EXAM—KEY 2

, Columbus, Ohio

Coercion. Coercion is an attempt to gain compliance through threats or by bullying. When a channel leader

places unreasonable pressure on a channel member to do something that is not in the best interest of the

channel member, it is using coercion. For example, a channel leader that yields a lot of power in the distribution

chain may set unrealistic sales goals for a dealer, or it may pressure a supplier to lower its prices to a point that

it hurts the supplier's profits. Coercion tends to create channel conflict, leads to unfair and unsatisfactory

business relationships, and often disrupts the distribution process. Control is a management function that

monitors the work effort. Deception is misleading behavior. Diplomacy is tact.

SOURCE:

CM:006 Describe ethical considerations in channel management

SOURCE:

MBA Knowledge Base. (2019, March 26). Power equations of distribution channels. Retrieved

August 16, 2022, from https://www.mbaknol.com/marketing-management/power-equations-of-

distribution-channels/

Authority to demand cooperation. Strong leaders have the authority and power to influence others and direct the

actions of others. A channel of distribution that has strong leadership is often able to avoid conflict within the

channel because the leader has the authority to set goals for the entire channel and demand cooperation, which

reduces the possibility of conflict. The leader's authority makes it possible for the leader to assign specific

responsibilities to each channel member and persuade members to accomplish their individual tasks. When

each member is cooperating and working for the good of the channel, there is less chance of conflict. It is not

necessary for the leader to develop friendships. Channel leaders usually do not provide training. It is not

possible to regulate change, although an effective leader will help channel members adjust to change.

SOURCE:

CM:008 Explain the nature of channel-member relationships

SOURCE:

Reply, S. (2021, October 13). The 6 roles of an effective chief channel officer. Retrieved August 16,

2022, from https://www.thespurgroup.com/blog/chief-channel-officer-roles

A credit card company offers cards with sports teams' logos. Affinity marketing is a strategy in which an

organization solicits responses from a group that shares a common interest or activity. If a credit card has a

sports team's logo on it, fans of that team might be more likely to choose that particular company. An airline that

offers frequent flyer miles is not an affinity partnership because there is no relationship between the airline and

another organization; rather, this is an example of frequency marketing. A restaurant giving discounts to

members of its rewards program is also an example of a frequency marketing strategy. Finally, a bank that pays

to have its name on a local concert venue is engaged in a sponsorship, rather than an affinity partnership.

SOURCE:

CM:021 Explain the nature of affinity partner relationships

SOURCE:

ReferralRock. (2021, April 11). What is affinity marketing? Definition and strategies for

success. Retrieved August 15, 2022, from https://referralrock.com/hub/types-of-marketing/affinity-

marketing/

An opportunity for feedback. Staff communication should not be a one way street. Maintaining open lines of

communication in a business setting is important, and employees need to feel comfortable giving feedback to

their coworkers and supervisors. Staff communication is not an optional formality; it's a crucial part of running a

successful business. It should be continual, not saved for individual performance reviews or contained in one

meeting.

SOURCE:

CO:014 Explain the nature of staff communication

SOURCE:

Go2HR. (2019, June 6). Speak easy: The importance of ongoing employee communications.

Retrieved August 29, 2022, from https://www.go2hr.ca/commication-social-media/speak-easy-the-

importance-of-ongoing-employee-communications

Test 1264 MARKETING CLUSTER EXAM—KEY 3

, Columbus, Ohio

When the speaker shares relevant information. Speakers should show visual aids to enhance their message

when those charts, graphics, videos, etc., correspond with the specific information that they are presenting. It's

not likely that an image will be relevant or appropriate for the entire presentation, and overuse may cause it to

lose its impact. A visual aid might help engage a bored audience but would add little value if it isn't related to the

material being shared. While visual aids may assist a speaker in summarizing their presentation, visual aids can

also be helpful during the introduction or body of a presentation.

SOURCE:

CO:025 Make oral presentations

SOURCE:

LAP-CO-025—Well Said! (Making Oral Presentations)

10.

What is your presentation about? Open-ended questions are those that require more than just a yes or no

answer. If someone asked you what your presentation was about, it would require you to say more than just yes

or no. But if someone asked you if you were ready for your presentation, if your presentation was finished, or if

you needed a projector for your presentation, you would be able to answer with a simple yes or no. These

questions are considered closed-response questions.

SOURCE:

CO:058 Ask relevant questions

SOURCE:

YourDictionary. (n.d.). Examples of open-ended vs. closed-ended questions. Retrieved August 29,

2022, from https://examples.yourdictionary.com/examples-of-open-ended-and-closed-ended-

questions.html

11.

Explain relationships. Graphic aids help clarify, reinforce, and summarize information. Flowcharts help explain

relationships. For example, an organizational chart illustrates a business's chain of command. Flowcharts may

also show the ways in which sequential processes work, such as project management. Line graphs are often

used to illustrate timelines and to identify trends. Bar charts are effective graphic aids to compare and contrast

data. Tables are often used to summarize complex numerical data.

SOURCE:

CO:087 Select and use appropriate graphic aids

SOURCE:

Lucidchart. (2021). What is a flowchart? Retrieved August 27, 2022, from

https://www.lucidchart.com/pages/what-is-a-flowchart-tutorial

12.

Overview of work completed and planned. Daily activity reports are a type of simple written reports that outline

the work completed, problems and concerns, and work to be done. They usually are fairly short. They may, in

some cases, provide a basis for recommendations or a permanent record, but that is not their basic purpose.

Quarterly management reports indicate a company's progress toward meeting its goals and objectives and

evaluate problems hindering achievement of those goals.

SOURCE:

CO:094 Prepare simple written reports

SOURCE:

West, C. (2019, October 30). How to write a report properly and effectively. Retrieved August 12,

2022, from https://www.monster.ca/career-advice/article/business-report-writing-tips

13.

Devote their full attention to customers. Maintaining a customer-service mindset requires employees to set their

minds on customers. They should not become distracted by other things around them, such as songs,

conversations with coworkers, or what they will be doing after work or during breaks. Distractions turn their

focus away from customers and prevent them from providing quality service.

SOURCE:

CR:004 Demonstrate a customer service mindset

SOURCE:

LAP-CR-004—Set Your Mind to It (Customer-Service Mindset)

Test 1264 MARKETING CLUSTER EXAM—KEY 4

, Columbus, Ohio

14.

Implementing procedures to protect the privacy of survey respondents. Taking steps to protect the privacy of

survey respondents is an ethical action. Manipulating feedback, distributing personal information without

permission, and using complex email opt-out processes are unethical behaviors.

SOURCE:

IM:025 Explain the role of ethics in marketing-information management

SOURCE:

Pastor, A. (2021, February 18). What are ethical practices in market research? Retrieved August 15,

2022, from https://www.driveresearch.com/market-research-company-blog/ethical-practices-in-

market-research/

15.

Possession. Possession utility is created when ownership of a product is transferred from the seller to the user.

Possession utility can be created through promotions which increase consumer demand for goods. Businesses

also help create possession utility by offering a number of purchasing arrangements that make it easy for

customers to buy. Financial is not a type of utility. Time utility is having the products available at the time they

are desired. Creating place utility means having the products, both goods and services, available at the place

where they are needed by the consumer.

SOURCE:

EC:004 Determine economic utilities created by business activities

SOURCE:

LAP-EC-013—Use It (Economic Utility)

16.

The government pays workers based on quantity rather than quality. In a communist command economy, most

resources are allocated toward industrial goods rather than consumer goods. The few consumer goods that are

available are often poor quality because the government pays workers based on the quantity, not the quality, of

what they produce. People in communist command economies need consumer goods as much as those in

other economic systems do. High taxes do not necessarily have a direct effect on production of consumer

goods. Finally, people in a communist command economy do not consume everything that they produce; this is

instead a characteristic of a traditional economy.

SOURCE:

EC:007 Explain the types of economic systems

SOURCE:

LAP-EC-907—Who's the Boss? (Economic Systems)

17.

Use a price deflator. Inflation can distort GDP by making it higher, not because production has increased, but

because prices are higher. A price deflator is an economic metric that converts prices to a base dollar value and

allows GDP to be accurately compared over time. Double counting occurs when production is counted more

than once. It is not related to inflation. The balance of trade is the difference between imports and exports. It

does not relate to the effects of inflation on GDP. Nominal GDP is GDP that has not been adjusted to account

for the effects of inflation. GDP that has been adjusted to account for inflation is called real GDP.

SOURCE:

EC:017 Explain the concept of Gross Domestic Product (GDP)

SOURCE:

LAP-EC-917—Measure Up? (Gross Domestic Product)

18.

Recession. A recession is a six-month's contraction in the gross domestic product (GDP). A recession usually

results in rising unemployment and people having less money to spend on consumer goods. Excess demand

exists when consumers want more goods than are available to buy. Inflation is a rise in prices that may occur

when demand exceeds supply. A trade deficit results from more imports than exports.

SOURCE:

EC:018 Determine the impact of business cycles on business activities

SOURCE:

LAP-EC-918—Boom or Bust (Impact of Business Cycles)

Test 1264 MARKETING CLUSTER EXAM—KEY 5

, Columbus, Ohio

19.

Law of diminishing returns. The law of diminishing returns is an economic concept that states that if one input

increases while others are constant, at some point the increases in output will decline. In this example, Kelly

added six new employees to her business without changing anything else. Kelly's business reached the point at

which output could no longer increase unless the inputs also increased. This example demonstrates the law of

diminishing returns, not the need for effective employee training, the harm of taking business risks, or the

danger of hiring employees.

SOURCE:

EC:023 Explain the impact of the law of diminishing returns

SOURCE:

LAP-EC-023—Know Your Limits (Law of Diminishing Returns)

20.

Tight money supply. Many factors affect interest rates, including business cycles, consumer spending, inflation,

and the money supply. If the money supply is low or tight, there is less money available to lend. This causes

interest rates to increase. The government might implement policies to tighten the money supply when the rate

of inflation rapidly increases. When investment spending increases, the money supply is usually loose, so

interest rates are lower—it is cheaper for businesses and individuals to borrow money. During a recession,

businesses are not expanding, unemployment increases, and consumer spending decreases. Because a

recession negatively affects the economy, the government may implement policies that lower interest rates to

stimulate commercial growth and consumer spending.

SOURCE:

EC:084 Explain the economic impact of interest-rate fluctuations

SOURCE:

Heakal, R. (2022, March 28). Forces that cause changes in interest rates. Retrieved August 12,

2022, from https://www.investopedia.com/insights/forces-behind-interest-rates/

21.

Shows you what areas to improve. Feedback can be very valuable because it shows you how you are doing. If

you know what you are doing wrong, you can change that behavior in the future. Feedback does not

necessarily reinforce your own opinions, as others may have a different view of you than you have of yourself.

Feedback should address your strengths and weaknesses, not those of others. You should not allow negative

feedback to make you defensive. People who are defensive are easily angered or upset by criticism or

suggestions perceived as criticism, and this prevents them from benefiting from feedback.

SOURCE:

EI:003 Explain the use of feedback for personal growth

SOURCE:

LAP-EI-903—Grin and Bear It (Using Feedback for Personal Growth)

22.

Seeing an advertisement for a job and feeling that you could handle it. Self-esteem is how you feel about

yourself at any given time. Your level of self-esteem can fluctuate from high to low. Feeling that you could do a

job you have read about would indicate your level of self-esteem is high. Imagining how you would feel if you

had already graduated is an example of visualization that can be used to support self-esteem. Always putting

others ahead of yourself and thinking you are good at making mistakes indicates a low level of self-esteem.

SOURCE:

EI:016 Explain the concept of self-esteem

SOURCE:

Wignall, N. (2019, July 22). 7 ways to build high self-esteem. Retrieved August 27, 2022, from

https://nickwignall.com/high-self-esteem/

23.

"There's nothing fun about working except getting paid." A negative attitude is an outlook that focuses on the

bad side of things. The other alternatives represent indifferent attitudes. They convey an outlook or feeling of

disinterest and unconcern that is neither positive nor negative.

SOURCE:

EI:019 Exhibit a positive attitude

SOURCE:

LAP-EI-003—Opt for Optimism (Positive Attitude)

Test 1264 MARKETING CLUSTER EXAM—KEY 6

, Columbus, Ohio

24.

Responsible. People are able to trust and rely on individuals who display responsible behavior. Assertive

behavior is characterized by respect for one's personal rights as well as for the rights of others. Aggressive

behavior respects personal rights at the expense of the rights of others. Routine behavior or activities are those

that are done on a daily basis.

SOURCE:

EI:021 Demonstrate responsible behavior

SOURCE:

LAP-EI-021—Make the Honor Role (Acting Responsibly)

25.

Make an effort to remain calm. In some cases, acting calm will actually help you be calmer. Using language to

vent your anger indicates you have lost your self-control. Frowning and being defensive are negative responses

that will not help you maintain your self-control.

SOURCE:

EI:025 Demonstrate self-control

SOURCE:

LAP-EI-014—Control Yourself! (Demonstrating Self-Control)

26.

Government. New or revised laws, regulations, policies, public services, leadership, etc., are all types of change

brought about by government. They are often the result of economic changes. Changes brought about by

individuals are changes concerning their bodies, lifestyles, minds, etc. Changes in society are brought about by

shifts in people's values, tastes, habits, etc. Changes brought about by technology are developments,

breakthroughs, and discoveries in the fields of science, engineering, etc.

SOURCE:

EI:026 Adjust to change

SOURCE:

Kagan, J. (2021, April 16). Income tax. Retrieved August 15, 2022, from

https://www.investopedia.com/terms/i/incometax.asp

27.

Action. Using action words in a resume subtly indicates that the job applicant is assertive, on the move, and

actively working to accomplish goals. Action words help the reader visualize the applicant performing a task or

activity. Phrases such as, “managed a long-term marketing project,” or “coordinated a local charity event,”

indicate that the applicant takes action to accomplish a task or goal. Passive or vague words are not likely to

impress or entice the reader to read further. Jargon refers to a specialized language known only to a certain

group of people. Jargon should be used sparingly and only if it is necessary to describe something that is

related to the job.

SOURCE:

PD:031 Prepare a rÃ©sumÃ©

SOURCE:

The OWL at Purdue. (2021). Résumé workshop. Retrieved August 15, 2022, from

https://owl.purdue.edu/owl/job_search_writing/resumes_and_vitas/resume_workshop/index.html

28.

Combative. Those who use the combative style of negotiating are ready to fight for what they want at any cost.

It often involves a "no-compromise" attitude. This style is useful in short-term situations, particularly if you won't

see the other person again. However, it usually does not build long-term relationships. The collaborative style

involves people working together to create an outcome that benefits both parties. A flexible negotiating style

means a willingness to change and adapt while negotiating—these are not traits indicative of a "no-

compromise" attitude. The accommodating style often involves people agreeing to something they don't really

want.

SOURCE:

EI:062 Demonstrate negotiation skills

SOURCE:

LAP-EI-062—Make It a Win-Win (Negotiation in Business)

Test 1264 MARKETING CLUSTER EXAM—KEY 7

, Columbus, Ohio

29.

Tolerance for ambiguity. Tolerance for ambiguity is the willingness to take action despite having incomplete

information or lacking clear direction. In the situation provided, Madeline indicates that she doesn't have

complete information but is confident that her staff will be able to handle unexpected problems after the system

has been implemented. Madeline has a high level of tolerance for ambiguity because she is taking action

without knowing what circumstances she may encounter along the way. Personal vision is the future you wish

to create. Self-control is the ability to restrain your feelings, words, and actions. Madeline may have self-control

and vision; however, there is not enough information provided to indicate that she is using self-control to

manage difficult emotions or that she is implementing the new system to achieve her vision. Madeline indicates

she has confidence in her staff's abilities to handle future issues rather than recognizing their past

achievements.

SOURCE:

EI:092 Develop tolerance for ambiguity

SOURCE:

LAP-EI-092—Embrace the Unknown (Developing a Tolerance for Ambiguity)

30.

Entrepreneur. An entrepreneur is anyone who creates, launches, organizes, and manages a new business and

takes on the risk of that business. Hazel is an entrepreneur because she created and launched a new childcare

business where she is accountable for risk. A franchiser is the owner of a business who gives the rights to

operate a branch of that business to someone else in exchange for a fee and profits. A wholesaler is a

merchant who sells to other businesses for resale or business use. A direct salesperson is someone who sells a

product directly to customers.

SOURCE:

EN:039 Describe the nature of entrepreneurship

SOURCE:

Hayes, A. (2022, July 19). Entrepreneur. Retrieved August 15, 2022, from

https://www.investopedia.com/terms/e/entrepreneur.asp

31.

Savings and loan associations. The majority of real-estate loans are handled by savings and loan associations.

Commercial banks offer full-service banking, checking and savings accounts, secured and unsecured loans,

installment credit, and bank credit cards. Credit unions provide credit and savings services to members, usually

within a business or labor union. Sales finance companies purchase borrowers' contracts from sellers and

receive the borrowers' payments.

SOURCE:

FI:002 Explain the purposes and importance of credit

SOURCE:

LAP-FI-002—Give Credit Where Credit Is Due (Credit and Its Importance)

32.

A $20 bill. Fiat money is money that has no intrinsic value. Instead, its value comes from government backing.

Paper currency such as a $20 bill is an example of fiat money. A check is not fiat money because its value is

not backed by the government. Gold has intrinsic value and is a commodity rather than fiat money. A credit

card's value is also not backed by the government.

SOURCE:

FI:059 Identify types of currency (paper money, coins, banknotes, government bonds, treasury

notes, etc.)

SOURCE:

Investopedia. (2021, September 14). Fiat vs. representative money: What's the difference?

Retrieved August 15, 2022, from https://www.investopedia.com/ask/answers/041615/what-

difference-between-fiat-money-and-representative-money.asp?ad=dirN&qo

Test 1264 MARKETING CLUSTER EXAM—KEY 8

, Columbus, Ohio

33.

Store of value. Money functions as a store of value when it is saved rather than spent. The money can be held

over time, and it retains value for future purchasing power. Money serves as a unit of measure when it is used

to express the value or worth of something. Money serves as a medium of exchange when it is used to obtain

goods and services. Cash is a form of money—currency and coins. Because Kendra's paycheck was

automatically deposited in her bank account, currency and coins have not been touched.

SOURCE:

FI:060 Describe functions of money (medium of exchange, unit of measure, store of value)

SOURCE:

Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.) [p. 45].

Tinley Park, IL: The Goodheart-Willcox Co.

34.

Rent. Income is the money resource owners receive for supplying goods and services. As a resource owner,

Lisa is supplying office space and receiving rent payments from the sole proprietor, so she is receiving income.

A salary is a form of income that is money payment for labor. A dividend is the sum of money paid to an

investor or stockholder as earnings on an investment. Interest is the money payment for the use of borrowed

money.

SOURCE:

FI:061 Describe sources of income (wages/salaries, interest, rent, dividends, transfer payments, etc.)

SOURCE:

Royal, J. (2021, October 15). Funding retirement with rental income. Retrieved August 15, 2022,

from https://www.bankrate.com/investing/how-to-invest-in-real-estate/

35.

Promotional. Promotional media are channels of communication used by businesses to deliver advertising

messages to target groups of consumers. Broadcast media include radio and television, which use radio waves

to reach consumers. Direct mail is a form of promotional media that comes to the consumers' homes in the form

of letters, catalogs, postcards, and folders. Transit media is a form of out-of-home media found in various forms

and locations of mass transportation. Out-of-home media is a form of promotional media to which we are

exposed outside our homes, such as outdoor and transit media.

SOURCE:

PR:007 Explain types of advertising media

SOURCE:

LAP-PR-007—Ad-quipping Your Business (Types of Advertising Media)

36.

Financial ethics. An important aspect of financial ethics is making sure the business makes a profit and serves

the best interests of its stakeholders (e.g., employees, customers, investors). This would include honest

communication, transparent financial reporting, and fair pricing practices. Creative processes, maintenance

activities, and forecasting methods are important business considerations; however, these activities are not

directly related to the business's profitability and the stakeholders' best interests.

SOURCE:

FI:355 Discuss the role of ethics in finance

SOURCE:

Carlson, R. (2021, May 24). The importance of ethics in business. Retrieved August 15, 2022, from

https://www.thebalancesmb.com/how-financial-ethics-and-profitability-are-connected-393247

37.

“Edit company newsletter.” Editing the company newsletter is a task that would be listed in an official job

description. A job description is an explanation of the specific responsibilities associated with a certain job. A job

specification, on the other hand, is an explanation of the skills, knowledge, and characteristics required for a

job. Having 10-15 years of experience, being able to work closely with others, and possessing an associate's

degree or higher are all examples of what might be listed in a job specification.

SOURCE:

HR:410 Discuss the nature of human resources management

SOURCE:

LAP-HR-410—People Pusher (Nature of Human Resources Management)

Test 1264 MARKETING CLUSTER EXAM—KEY 9

, Columbus, Ohio

38.

Remain competitive. Competition among businesses continues to increase. As a result, these businesses must

have up-to-date marketing information to be competitive. They need to know how well the competition is doing,

what competitors' prices are, how effective their promotional methods are, and what changes the competition is

planning to make. Gathering marketing information helps reduce risk but cannot eliminate it. A business would

not gather marketing information to control customers or manipulate data.

SOURCE:

IM:001 Explain the nature and scope of the marketing-information management function

SOURCE:

LAP-IM-001—Get the Facts Straight (Marketing-Information Management)

39.

Predict and control risks. Marketing information is all of the marketing-related data available from inside and

outside the business. It includes information about past situations and what is happening now. By obtaining and

using marketing information, business managers can predict the risks that might occur in the future and take

steps to control those risks. For example, if current marketing information indicates that one product is losing

popularity, a business can modify the product or repackage it to be more appealing. As a result, the business

might avoid losing customers, which is a future risk. Managers often use marketing information to prepare

documents and reports, but that is not an advantage of obtaining and using the information. Business managers

do not obtain and use marketing information to train and direct employees, or to review and understand

regulations.

SOURCE:

IM:012 Describe the need for marketing data

SOURCE:

Totempool. (2022, January 21). How can marketing information management help your business

succeed? Retrieved August 15, 2022, from https://totempool.com/blog/marketing-information-

management/

40.

Listen to the customers to understand their concerns. The first thing an employee should do is to listen to the

customer to try to determine the reason for the complaint. If employees fully understand their customers'

complaints, they will be better able to solve the problem. Employees should express empathy, but they should

not take customers' complaints as personal attacks against them. It is not always possible to give customers

whatever they want to make them happy. In some situations, the business and the customer may need to

compromise. Stating the business's policies before listening to the customers' complaints may frustrate the

customers and make them angry.

SOURCE:

CR:010 Handle customer/client complaints

SOURCE:

LAP-CR-010—Righting Wrongs (Handling Customer Complaints)

41.

It turns large amounts of data into a form that is more easily understood. To make sense of large amounts of

data, the data must be analyzed. Coding can be an extremely useful tool for data analysis by grouping and

assigning value to various responses from the survey. While coding is one way to interpret data in a meaningful

way, it is not the only way. Coding does not prevent data entry mistakes. In many cases, it is still humans who

assign the coding system and manually enter codes into a computer—there is always the possibility of human

error. Data should always be checked for flaws at multiple points during the analysis. Coding should not be

used as a replacement for error checking.

SOURCE:

IM:062 Explain techniques for processing marketing data

SOURCE:

California State University, Long Beach. (n.d.). Data entry issues. Retrieved August 15, 2022, from

https://home.csulb.edu/~msaintg/ppa696/696codes.htm

Test 1264 MARKETING CLUSTER EXAM—KEY 10

, Columbus, Ohio

42.

"Why." Qualitative research is based on obtaining information about opinions and experiences. One of its goals

is to answer questions about "why," such as why do people buy the products they buy. As a result, qualitative

research often involves more detailed interviewing of fewer numbers of people to obtain specific information that

will answer the questions of "why." Quantitative research answers questions about "how many." Qualitative

research does not answer questions about "who" or "how to."

SOURCE:

IM:281 Describe options businesses use to obtain marketing research data (i.e., primary and

secondary research)

SOURCE:

LAP-IM-281—What's the Source? (Obtaining Marketing-Research Data)

43.

Conducting marketing research. Conducting marketing research helps managers make smart decisions and

plan appropriate strategies regarding the problems and opportunities facing their businesses. Advertising and

sales promotion, hiring new employees, and providing customer service are all important business activities, but

they do not provide the information that managers need for decision-making.

SOURCE:

IM:282 Discuss the nature of marketing research problems/issues

SOURCE:

LAP-IM-282—What's the Problem? (Marketing Research Problems)

44.

Exploratory. Exploratory research involves collecting information to help the business define its issue, situation,

or concern, and decide how to proceed with its research. Causal or conclusive research focuses on cause and

effect and tests “what if” theories. Interviews are conversations in which a researcher surveys an individual to

obtain research data. An experiment is a research method that tests “cause and effect” by test marketing new

products or comparing test groups with control groups.

SOURCE:

IM:284 Describe methods used to design marketing research studies (i.e., descriptive, exploratory,

and causal)

SOURCE:

KnowThis. (2021, October 10). Exploratory market research. Retrieved August 15, 2022, from

https://www.knowthis.com/planning-for-marketing-research/exploratory-market-research

45.

Judgment sampling. Judgment sampling, also known as expert sampling, requires researchers to handpick

respondents based on their knowledge or expertise. This is a type of non-probability sampling because it is not

random. Cluster sampling, stratified random sampling, and systematic random sampling are all types of

probability sampling.

SOURCE:

IM:285 Discuss the nature of sampling plans (i.e., who, how many, how chosen)

SOURCE:

LAP-IM-285—Take Your Pick (Nature of Sampling Plans)

46.

Interview. The interview is a common method of collecting data from individuals. There are many types of

interview procedures, and one is the focus group, which is a group formed for the purpose of discussing a

specific topic. In a focus group, a moderator asks questions and guides the group discussion to obtain

information about a specific topic, such as a product. Telemarketing involves contacting people by telephone.

Probability is a type of sampling method of research. Statistics are often information presented in numerical

form.

SOURCE:

IM:289 Describe data-collection methods (e.g., observations, mail, diaries, telephone, Internet,

discussion groups, interviews, scanners, tracking tools)

SOURCE:

George, M. (2017, June 6). Three effective methods of data collection for market research. Retrieved

August 15, 2022, from https://www.crayondata.com/3-effective-methods-of-data-collection-for-

market-research/

Test 1264 MARKETING CLUSTER EXAM—KEY 11

, Columbus, Ohio

47.

A marketer tells a customer that they are conducting research, and then begins a sales pitch. SUGGING is an

acronym for "selling under the guise of research." SUGGING is an unethical practice in which a marketer

pretends to conduct research but, in fact, is really attempting to sell a good or service to a consumer. SUGGING

is deceptive and rarely facilitates a long-term selling relationship. It also harms the integrity of the general

marketing-research field because potential respondents who have been subjected to SUGGING are less likely

to trust researchers and are likely to question their true motives. A telemarketer who asks a person if they know

anyone who might buy a certain product is trying to obtain a referral. Sending samples to consumers is a

promotional technique. A salesperson providing a customer the opportunity to try a product for a certain period

of time is implementing a strategy to make a sale.

SOURCE:

IM:419 Describe the regulation of marketing-information management

SOURCE:

Market Research Society. (2022). Sugging and frugging FAQ. Retrieved August 15, 2022, from

https://www.mrs.org.uk/standards/suggingfaq

48.

Secondary information may be outdated. Secondary information is information collected by others for purposes

other than the project at hand. Though the secondary information may have been relevant at one time, it may

be too old to reflect any changes that have occurred since it was collected. Therefore, the business might

conduct its own research to obtain current results. Primary information is not always error-free and can be

expensive to obtain.

SOURCE:

IM:428 Assess appropriateness of marketing research for the problem/issue (e.g., research

methods, sources of information, timeliness of information, etc.)

SOURCE:

Wolf, A. (2016, May 5). Primary data vs. secondary data: Market research methods. Retrieved

August 15, 2022, from https://blog.marketresearch.com/not-all-market-research-data-is-equal

49.

Promotion. The promotion function focuses on informing customers about new products, improved products,

new uses for existing products, and special values on products. Businesses use a variety of communication

channels to inform customers about products including advertising and sales promotion. The marketing-

information management function focuses on gathering, accessing, synthesizing, evaluating, and disseminating

information to aid business decision-making. The product/service management function focuses on obtaining,

developing, maintaining, and improving a product mix in response to market opportunities. The pricing function

focuses on determining and adjusting prices to maximize return and meet the customers' perceptions of value.

SOURCE:

MK:002 Describe marketing functions and related activities

SOURCE:

LAP-MK-001—Work the Big Seven (Marketing Functions)

50.

Business goals. The goals or objectives of a business are the things the business wants to attain. A particular

share of the industry market might be a business's goal. The promotional mix is the combination of marketing

communication channels that a business uses to send its messages to consumers. Channels of distribution are

the paths, or routes, that goods or services take from the producer to the ultimate consumer or industrial user.

SOURCE:

MP:001 Explain the concept of marketing strategies

SOURCE:

LAP-MP-001—Pick the Mix (Nature of Marketing Strategies)

51.

Similarities. Marketers divide their markets by grouping customers according to their similarities—not their

differences. Customers may be similar in their occupations or hobbies.

SOURCE:

MP:003 Explain the concept of market and market identification

SOURCE:

LAP-MP-003—Have We Met? (Market Identification)

Test 1264 MARKETING CLUSTER EXAM—KEY 12

, Columbus, Ohio

52.

Situation analysis. Information regarding competitors, their products, and their strengths and weaknesses is

collected as part of an external environment analysis. This type of analysis is one aspect of the overall situation

analysis. Gathering such information is not an example of marketing strategy, action plans, or purpose and

mission.

SOURCE:

MP:008 Explain the role of situation analysis in the marketing planning process

SOURCE:

Indeed. (2021, February 22). How to complete a situational analysis (with definition and

elements). Retrieved August 15, 2022, from https://www.indeed.com/career-advice/career-

development/situational-analysis

53.

To plan purchases. Many businesses consider the sales forecast as the cornerstone of their planning. One way

that businesses use the sales forecast is to plan purchases. The projected sales figures tell the business what

amount of raw materials and equipment will be needed to produce the products it expects to sell. These figures

help businesses decide whether to increase or decrease the amount of their purchases. Businesses do not use

sales forecasts to organize inventory, manage staff, or control trends.

SOURCE:

MP:013 Explain the nature of sales forecasts

SOURCE:

Bishop, K. (2020, December 4). Sales forecasting 101: Definition, methods, examples,

KPIs. Retrieved August 16, 2022, from https://www.saleshacker.com/sales-forecasting-101/

54.

Video conferencing. Video conferencing is a communication method that allows several individuals to

simultaneously hold a discussion via a video conferencing platform. Although each person is in a different

location, each person can speak, see, and hear all of the conference participants. Switchboards and

teleprompters are not business tools that allow several people to communicate simultaneously. Video memors

record audio data in a digital format.

SOURCE:

NF:011 Demonstrate collaborative/groupware applications

SOURCE:

Microsoft. (2020, January 21). 10 reasons to use video conferencing. Retrieved August 29, 2022,

from https://www.microsoft.com/en-us/microsoft-365/business-insights-ideas/resources/10-reasons-

to-use-video-conferencing

55.

Population trend. Migration is a population trend that indicates the movement of people throughout the country

as well as into and out of the country. Migration trends are important to businesses because businesses need to

know where their customers are located. For example, many people are leaving colder climates and migrating

to what is considered the Sunbelt. This movement affects businesses because the types of products they sell

and the way they sell them will change. Also, the increased migration of ethnic groups into the country creates a

need for new goods and services that meet the needs of a multicultural population. The migration of people

from one location to another is not a geography issue, a transportation route, or a social lifestyle.

SOURCE:

NF:013 Describe current business trends

SOURCE:

Basteri, C.G., Clark, B., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.) [pp. 198-

199]. The Goodheart-Willcox Company, Inc.

Test 1264 MARKETING CLUSTER EXAM—KEY 13

, Columbus, Ohio

56.

Design software. Developing websites has become easier with advances in technology. Today, web design

software is available , so even small businesses can create and post web pages to promote themselves and

connect to customers. Businesses do not use instant messaging, data tracking, or intranet retrieval to develop

websites.

SOURCE:

NF:042 Create and post basic web page

SOURCE:

Kolowich, L. (2014, June 25). Web Design 101: How HTML, CSS, and JavaScript Work. Retrieved

August 15, 2022, from https://blog.hubspot.com/marketing/web-design-html-css-

javascript#sm.001qvoxy11ebkfnptoy1u7m9vr7lb

57.

Bob's new employer asks him to share confidential information about product-development processes that his

previous employer uses. In many situations, employers require employees to sign a nondisclosure agreement,

which is a promise to maintain the confidentiality of the business's trade secrets. Bob's new employer is asking

him to break the promise that he made to his previous employer and share the information, which presents an

ethical dilemma for Bob. Mailing a price list to a customer, discussing work plans with coworkers, and providing

a customer with accurate information about a company's privacy policy are ethical actions that do not pose a

dilemma.

SOURCE:

NF:111 Explain the role of ethics in information management

SOURCE:

Relkin, J. (2017). 10 ethics issues confronting IT managers. Retrieved August 15, 2022, from

http://www.techrepublic.com/article/10-ethical-issues-confronting-it-managers/

58.

Unconsidered variables or dimensions. Simpson's Paradox occurs when a trend that appears in different groups

of data disappears when the groups are combined. It helps reveal instances where data can be misinterpreted

or variables can be overlooked because data have not been examined from multiple perspectives. Simpson's

Paradox does not necessarily account for human error, inconsistencies in data generation, or incorrect

assumptions about data.

SOURCE:

NF:139 Explain the principles of data analysis

SOURCE:

Reda, G. (2014, March 23). Principles of good data analysis. Retrieved August 15, 2022, from

http://www.gregreda.com/2014/03/23/principles-of-good-data-analysis/

59.

A restaurant kitchen has a slippery spot where someone spilled oil. A workplace hazard is defined as anything

that can harm an employee, whether mentally or physically. A slippery spot on a kitchen floor is a hazard

because an employee could easily fall and injure themself. A hazard is what can cause an injury, not the injury

itself. For this reason, carpal tunnel syndrome and heat stroke are not hazards. In these cases, repetitive

motions and heat would be the hazards. A hazard is also not the event that causes the injury. Falling off a

ladder is not a hazard, but the height which caused the fall is a hazard.

SOURCE:

OP:004 Describe health and safety regulations in business

SOURCE:

Minnesota Department of Health. (n.d.). Occupational health and safety. Retrieved August 15, 2022,

from https://www.health.state.mn.us/communities/occhealth/index.html

60.

Confirm delivery. The final step in the industrial purchasing process is expediting, or following up, to confirm

delivery. Once the purchase order has been accepted, the purchaser usually contacts the vendor as the

agreed-upon delivery date approaches in order to make sure the shipment will arrive on schedule. Selecting

suppliers, negotiating discounts, and identifying needs are earlier steps in the industrial purchasing process.

SOURCE:

OP:015 Explain the nature and scope of purchasing

SOURCE:

LAP-OP-015—Buy Right (Purchasing)

Test 1264 MARKETING CLUSTER EXAM—KEY 14

, Columbus, Ohio

61.

Intermittent. Intermittent production occurs when production periodically stops and restarts. It is generally used

for products that are not in constant demand all of the time. Wool coats and socks are an example because

they are generally only used during the colder winter months in many regions. Continuous production involves

turning out products without stopping. It is used when products are in steady demand all of the time. Unit

production is producing one item at a time or in small quantities. There is no indication that unit production

would be used for wool coats and socks. Routing is a production activity that determines the sequence for the

steps in the production process.

SOURCE:

OP:017 Explain the concept of production

SOURCE:

LAP-OP-017—Can You Make it? (Nature of Production)

62.

Quality. There are several characteristics shared by organizations with quality cultures. These characteristics

include working in teams, involving employees and allowing them to make decisions, and actively seeking

customer input to use to improve quality. A resistant culture is one in which employees are resistant to change

and new ideas. A hidden culture is not readily seen until one has worked in a place for a long time. Executive is

not a type of culture.

SOURCE:

OP:019 Describe crucial elements of a quality culture

SOURCE:

Testify (2021, September 7). A living quality culture as the key to successful quality management.

Retrieved August 15, 2022, from https://www.testify.io/en/qualityculture-for-successful-

qualitymanagement/

63.

By paying bills on time. Controlling expenses not only helps the business to have the necessary funds to pay its

bills but to pay them on time and control its expenses even further. Businesses that pay within a certain amount

of time often receive a discount and save additional money. Conducting research, increasing wages and

benefits, and renovating facilities are ways of using the money that was saved by controlling expenses.

SOURCE:

OP:025 Explain employee's role in expense control

SOURCE:

LAP-OP-025—Buck Busters (Employee Role in Expense Control)

64.

Gavin orders inventory based on the forecast that Madelyn has prepared for him. Gavin does not know the type

and amount of inventory to order until Madelyn provides him with the forecast that she has prepared. Therefore,

Gavin and Madelyn's work activities are interdependent—they must work together and coordinate their work

efforts to achieve the business's goals. Unpacking a shipment, placing the items on shelves, and reviewing a

monthly financial report are not situations that indicate employees are coordinating their work efforts. Sarah and

Shelley are working independently rather than coordinating their efforts.

SOURCE:

OP:230 Coordinate work with that of team members

SOURCE:

Schwarz, R. (2017, March 23). Is your team coordinating too much, or not enough? Retrieved

August 28, 2022, from https://hbr.org/2017/03/is-your-team-coordinating-too-much-or-not-enough

65.

Gives you a true picture of yourself. Self-understanding involves identifying both your strengths and your

weaknesses. When you recognize your strengths, it is easier to accept your weaknesses. This helps you like

and accept yourself, which are essential to raising your level of self-esteem. You may develop personal

interests or identify enjoyable social activities through self-understanding, but they may not affect your level of

self-esteem. Comparing your skills with the skills of others does not necessarily raise your self-esteem.

SOURCE:

PD:013 Assess personal interests and skills needed for success in business

SOURCE:

Michigan Virtual. (2017, March 13). Module 3: Self assessment. [Video]. Retrieved August 15, 2022,

from https://www.youtube.com/watch?v=Qo_5dJ-dlIQ

Test 1264 MARKETING CLUSTER EXAM—KEY 15

, Columbus, Ohio

66.

Analytical skills. Marketing operations is based less on creativity and more on analysis, data, and research.

Because of this, analytical skills are extremely important for market researchers. Creativity, communication

skills, and tech skills are certainly helpful in most marketing careers, but they aren’t the most important trait for

marketing-operations professionals.

SOURCE:

PD:024 Explain employment opportunities in marketing

SOURCE:

LAP-PD-024—Career Opportunities in Marketing

67.

Reminds the interviewer of the applicant. Applicants should send follow-up letters immediately after the job

interview to thank the interviewers for their time. Follow-up letters also remind the interviewer of the specific

applicant and help create a favorable impression. If there are several applicants with comparable qualifications,

an interviewer might select the one who remembered to send a follow-up letter. An applicant's resume,

references, and test scores usually are submitted with the employment application or during the employment

interview.

SOURCE:

PD:029 Write a follow-up letter after job interviews

SOURCE:

Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.) [p. 649].

Tinley Park, IL: The Goodheart-Willcox Co.

68.

Customize your cover letter to the position you are applying for. Cover letters are intended to give employers a

better sense of your unique skills and experiences and should be customized to each specific job. They should

not repeat the exact same information from your resume; rather, they should elaborate on the information from

your resume. It would be inappropriate to include personal information like your marital status in a cover letter.

You should include your job qualifications and experience in a cover letter.

SOURCE:

PD:030 Write a letter of application

SOURCE:

Doyle, A. (2017, July 19). Cover letters. Retrieved August 15, 2022, from

https://www.thebalance.com/cover-letters-4073661

69.

People will be able to depend on you. Taking full responsibility for your own actions and never blaming others

for your mistakes means you are reliable. People will know they can depend on you to do what you say you will

do. This does not help you be objective or enthusiastic, and it will not keep people from trying to take advantage

of you.

SOURCE:

EI:037 Foster positive working relationships

SOURCE:

LAP-EI-037—Can You Relate? (Fostering Positive Working Relationships)

70.

The business's purpose. Organizational goals are the overall objectives that a business wants to achieve.

Effective organizational goals should align with and reflect the business's purpose—why the business exists in

the first place. A business considers many factors related to its customers, its employees, and its industry's

standards (rather than needs) when defining its mission or purpose.

SOURCE:

PD:254 Determine the nature of organizational goals

SOURCE:

Gartenstein, D. (2019, February 12). Why is goal setting important in organizations? Retrieved

August 15, 2022, from http://smallbusiness.chron.com/goal-setting-important-organizations-

2509.html

Test 1264 MARKETING CLUSTER EXAM—KEY 16

, Columbus, Ohio

71.

Economic conditions are good. Businesses need to be willing to adjust their prices. These adjustments can be

increases or decreases, depending on the circumstances faced by the business. When economic conditions are

good, the business might increase its prices because customers are less cautious with their spending.

Businesses often decrease their prices when goods and services are plentiful, when customers have less

money to spend, and when many people are unemployed.

SOURCE:

PI:001 Explain the nature and scope of the pricing function

SOURCE:

LAP-PI-001—The Price Is Right (Nature of Pricing)

72.

Pure competition. In a pure competitive market, there are a great many buyers and sellers of nearly identical

products, and marketers have very little control over pricing. More competition exists in this kind of market than

in any other. Most products are sold at market price—the actual price that prevails in a market at any particular

moment. The market price is controlled by supply and demand. In an oligopoly, competition is more likely to be

based on style or brand than on price. In a monopoly, there is virtually no competition because there is only one

seller or provider of a good or service. In a monopolistic competitive market, there is competition because there

are many buyers and sellers offering different types of products at different prices. There is less competition in

this kind of market than in a pure competitive market.

SOURCE:

PI:002 Explain factors affecting pricing decisions

SOURCE:

LAP-PI-902—Make Cents (Factors Affecting Selling Price)

73.

Price fixing. Price fixing is an illegal business arrangement in which businesses agree on prices of their goods

or services, resulting in little choice for the consumer. Businesses that agree to coordinate the discounts and

credit terms that they offer their customers are guilty of fixing the price of those services. If all the competing

businesses in one area agree to offer the same discounts and credit terms, the customers have no choice in

selecting a business that offers a different price. In target pricing, prices are set to provide a certain rate of

return on an investment. The decisions a business makes concerning which prices to charge is price planning.

Unit pricing is a pricing technique that gives the consumers the price per unit for products.

SOURCE:

PI:015 Describe the role of business ethics in pricing

SOURCE:

Guo, V. (2021, September 6). Ethics and pricing: 5 must know pricing ethics issues and how to avoid

them. Retrieved August 16, 2022, from https://www.priceintelligently.com/blog/bid/164830/5-must-

know-pricing-strategy-ethics-issues

74.

Performed. Goods and services are both products. However, services are intangible products, which means

that they cannot be tasted, felt, seen, heard, or smelled. Services are performed rather than produced. A good

is a tangible, or physical, item that is produced.

SOURCE:

PM:001 Explain the nature and scope of the product/service management function

SOURCE:

LAP-PM-017—Serving Up Products (Nature of Product/Service Management)

75.

Customer group. Product lines that are classified by customer group contain products that appeal to a certain

market, such as the consumer market or the commercial market. Trading up is a product-mix strategy in which

a business adds a higher priced product or product line to its product mix. Depth is a product-mix dimension

referring to the assortments of sizes, colors, flavors, and models offered in a product line. Width is a product-

mix dimension referring to the number of product lines a company carries.

SOURCE:

PM:003 Explain the concept of product mix

SOURCE:

LAP-PM-003—Mix and Match (The Nature of the Product Mix)

Test 1264 MARKETING CLUSTER EXAM—KEY 17

, Columbus, Ohio

76.

Testing the product. Testing the product involves using the product in a variety of situations or ways in order to

evaluate its performance. If a product fails or poses a danger to users, the product is not safe, and the

manufacturer should take steps to make sure it works properly. Product testing is an appropriate way to

determine safety levels for products, such as equipment, appliances, computers, and vehicles. Developing a

warranty, evaluating the product's appeal, and complying with local regulations are not actions that determine a

product's safety.

SOURCE:

PM:017 Identify consumer protection provisions of appropriate agencies

SOURCE:

LAP-PM-007—Protect and Serve (Consumer Protection)

77.

Ease of comparison shopping. Consumers could easily compare similar products developed by the various

members of the trade association because all of the products would meet the same standards. Even though the

products meet the same standards, there is no guarantee that the pricing would be the same. These standards

may or may not affect customer satisfaction levels. Standards do not guarantee that the product will be

available.

SOURCE:

PM:019 Describe the uses of grades and standards in marketing

SOURCE:

LAP-PM-008—Raise the Bar (Grades and Standards)

78.

To protect the producer and the seller. A purpose of warranties and guarantees is to protect the producer and

the seller. Producers and sellers are protected by well-written warranties and guarantees because their

responsibilities to the customer are clearly defined. Informing customers about how problems will be handled

helps prevent purchasers from making unreasonable claims against producers or sellers. Decreasing consumer

confidence is not a purpose of warranties and guarantees, but increasing it is. Decreasing feedback from

customers and avoiding a customer-oriented focus are not purposes of warranties and guarantees; in fact,

increasing them is a benefit a company receives from offering warranties and guarantees with its products.

SOURCE:

PM:020 Explain warranties and guarantees

SOURCE:

LAP-PM-920—Promises, Promises (Warranties and Guarantees)

79.

Trade character. A trade character is a brand mark that has been personified (e.g., the Pillsbury doughboy and

Toucan Sam). A trade name is used to identify a company or an organization. A trademark is a brand that is

owned by a business, designated by a designated symbol. A brand name is the part of a brand that can be

spoken, such as a word, phrase, letter, number, or any combination of these.

SOURCE:

PM:021 Explain the nature of product/service branding

SOURCE:

LAP-PM-021—It's a Brand, Brand, Brand World! (Nature of Product Branding)

80.

Introduction. The product failure rate is highest during the introduction stage of the product life cycle. It might be

because the company neglected to complete its research, because the product is not quite ready, because the

company does not have an effective launch plan, or because the company simply does not have the resources

necessary to market the product successfully. The product failure rate is not as high in the growth, maturity, and

decline stages.

SOURCE:

PM:024 Identify the impact of product life cycles on marketing decisions

SOURCE:

LAP-PM-024—Get a Life (Cycle) (Product Life Cycles)

Test 1264 MARKETING CLUSTER EXAM—KEY 18

, Columbus, Ohio

81.

Planned obsolescence. Planned obsolescence is the practice of designing a product to become obsolete, or

outdated or useless, before it should reasonably need replacement. Designing a new computer that only runs

on a new software is an example of planned obsolescence, not poor marketing, product exposure, or

destructive advertising.

SOURCE:

PM:040 Explain business ethics in product/service management

SOURCE:

LAP-PM-040—Safe and Sound (Ethics in Product/Service Management)

82.

The competitive environment has changed. Repositioning a product can be difficult, but it’s not impossible.

When the competitive environment changes, it’s sometimes necessary to reposition a product. If a company is

going out of business, there is no need for repositioning. Marketers should choose one position for a product or

brand and stick with it. Repositioning for a holiday season or because marketers are bored is not appropriate or

effective.

SOURCE:

PM:042 Describe factors used by marketers to position products/services

SOURCE:

LAP-PM-042—Getting Piece of Mind (Factors Used To Position Products/Services)

83.

Aware. A product opportunity is a favorable circumstance that presents itself to provide a good or service that

consumers are willing to buy. People identify product opportunities by being attentive to their surroundings, by

being aware. Many product opportunities are realized by observing people in various situations. While people

are often emotional, decisive, or indifferent, these qualities do not always help them identify new product

opportunities.

SOURCE:

PM:134 Identify product opportunities

SOURCE:

Forbes. (2020, August 24). 16 top tips for identifying new market opportunities during a

downturn. Retrieved August 15, 2022, from

https://www.forbes.com/sites/forbesbusinesscouncil/2020/08/24/16-top-tips-for-identifying-new-

market-opportunities-during-a-downturn/?sh=30cda78f6874

84.

A reply to a customer question on social media. Touchpoints are all the opportunities that businesses have to

connect with customers and reinforce their brand. This includes interactions with customers on social media.

Staff meetings, in-house brochures, and company emails are not touchpoints, because they are all intended for

employees, not customers.

SOURCE:

PM:206 Explain the nature of corporate branding

SOURCE:

LAP-PM-206—Corporate Identity (Nature of Corporate Branding)

85.

Persuasive. To be a success, promotional messages should be persuasive and convince buyers that the

product that is being sold can meet their needs. Relevance is when the promotional message is relevant to the

audience that it is intended to target—the people that are the most likely to buy the product. Repetitious refers

to the message being repeated, not heard just one time. Factual refers to the fact that the promotional message

should be based on facts, not statements that will mislead the person receiving the message.

SOURCE:

PR:001 Explain the role of promotion as a marketing function

SOURCE:

LAP-PR-901—Razzle Dazzle (Nature of Promotion)

Test 1264 MARKETING CLUSTER EXAM—KEY 19

, Columbus, Ohio

86.

Institutional. Institutional advertising creates a certain image in the eyes of consumers. In this case, promoting

the business's support of a nonprofit humanitarian organization is intended to develop goodwill. Promotional ads

focus on selling goods and services. Advertising is not free and not necessarily costly if it is effective.

SOURCE:

PR:002 Explain the types of promotion (i.e., institutional, product)

SOURCE:

LAP-PR-902—Know Your Options (Product and Institutional Promotion)

87.

The promotional mix plays a key role in obtaining customers. An appropriate blend of the promotional elements

enables businesses to communicate effectively with customers. It increases brand recognition, raises product

awareness, and communicates product benefits. By delivering promotional messages in multiple ways, a

business is more likely to reach its target market than it would be using one form of promotion alone. No one

promotional mix element is the best. Many factors affect the selection of a promotional mix. Marketers know that

a promotional mix that is appropriate for one business may be totally inappropriate for another. Likewise, a

promotional mix that was successful for a company at one time may need to be changed to a new combination

of elements; it should not always stay the same.

SOURCE:

PR:003 Identify the elements of the promotional mix

SOURCE:

LAP-PR-001—Spread the Word (Nature of the Promotional Mix)

88.

A retail bank. Retail banks provide a variety of financial services, including savings and checking accounts for

individuals. Opening a savings account with a properly insured bank will provide Patrick with a safe place to

keep his money, and he will earn interest on the money that he places in his savings account. Patrick will also

be able to remove money to pay bills without incurring the financial penalties he might experience if he

borrowed money from his retirement fund. Investing in the stock market involves risk; however, Patrick may

earn dividends on stocks that perform well. A holding company (parent company) is a business that owns the

majority of another company's shares of stock.

SOURCE:

FI:075 Describe types of financial-services providers

SOURCE:

Majaski, C. (2021, August 26). Retail banking. Retrieved August 15, 2022, from

http://www.investopedia.com/terms/r/retailbanking.asp

89.

Making a claim. This kind of copy makes a general or specific claim for the product. When features are

discussed in an ad's copy, factual information about the product is given, such as the type of engine in an

automobile. When product use is featured in ad copy, the ad tells readers how they can use the product. A

testimonial is someone's personal statement about the benefits of the product.

SOURCE:

PR:014 Explain the components of advertisements

SOURCE:

ChefsBest. (2020, July 16). Ad claims 101: What every marketer needs to know. Retrieved August

15, 2022, from https://www.chefsbest.com/ad-claims-101-what-every-marketer-needs-to-know/

90.

Direct marketing. Direct marketing, which uses direct mail, telemarketing, emails, etc. that are sent directly to a

consumer's home or business, seeks a specific measureable action from a targeted group of consumers.

Indirect marketing uses a third party to attempt to generate buzz about a product or service. Word-of-mouth

marketing is promotion and publicity for a business provided by customers. Cause marketing is a form of

marketing that is intended to positively support causes that benefit the world.

SOURCE:

PR:089 Explain the nature of direct marketing channels

SOURCE:

Leonard, K. (2019, March 5). The advantages & disadvantages of direct marketing & telemarketing.

Retrieved August 15, 2022, from https://smallbusiness.chron.com/advantages-disadvantages-direct-

marketing-telemarketing-54933.html

Test 1264 MARKETING CLUSTER EXAM—KEY 20

, Columbus, Ohio

91.

A stereotype. A stereotype is a set image or an assumption about a person or thing. An advertisement that

portrays someone in a generalized or oversimplified way is likely reinforcing a stereotype. Socialization refers to

the way in which a community organizes itself. Sugging means "selling under the guise of research." Equity

label is a fictitious term.

SOURCE:

PR:099 Describe the use of business ethics in promotion

SOURCE:

Lazzari, Z. (2018, October 19). Types of stereotyping in advertising. Retrieved August 15, 2022, from

https://smallbusiness.chron.com/types-stereotyping-advertising-11937.html

92.

It is more cost effective than traditional advertising. Using the internet to promote your business is often less

expensive than buying traditional advertisements in newspapers, magazines, or on television or radio. It also

makes tracking your results quick; it's easier to see how customers are responding to an online ad or a social

media profile than it is to track how they're responding to a television commercial. Internet promotions can reach

a different group of customers, but it does not necessarily reach fewer people (and if it did, that would not be an

advantage). Hackers finding business information is not an advantage.

SOURCE:

PR:100 Describe the use of technology in the promotion function

SOURCE:

Online Asset Partners. (2021, October). The real benefits of online advertising. Retrieved August 16,

2022, from https://www.onlineassetpartners.co.nz/blog/the-real-benefits-of-online-advertising/

93.

Require the company to place corrective advertising. Corrective advertising involves placing messages in

various media to retract an inaccurate statement or to correct the public's false impression about a product's

features or abilities. Placing corrective advertising is often a major financial cost to a company and may also

negatively affect the company's reputation. The government may also require a company to cease running the

deceptive ads and require the company to pay a fine. The government is not likely to imprison the company's

CEO, and it does not have the jurisdiction to increase the company's sales-tax rate for the purpose of punishing

the company's wrongdoing. It is not enough to rewrite the deceptive advertising copy—the revised or corrected

copy must be communicated to the appropriate audience.

SOURCE:

PR:101 Describe the regulation of promotion

SOURCE:

McDuffey, T. (2022, April 11). What is deceptive advertising? Retrieved August 16, 2022, from

https://www.legalmatch.com/law-library/article/what-is-deceptive-advertising.html

94.

From customers. Satisfied customers are usually quite willing to share their product information and

experiences. Manufacturers, sales training courses, sales manuals, bulletins, sales meetings, promotional

materials, the product itself, company contacts, and publications are also sources of product information.

Firsthand product information is not likely to be found at the library or the factory. Competitors do not usually

share information with one another.

SOURCE:

SE:062 Acquire product information for use in selling

SOURCE:

Riserbato, R. (2021, August 11). Product knowledge: How to train sales on the thing they're

selling. Retrieved August 16, 2022, from https://blog.hubspot.com/sales/product-knowledge-training

Test 1264 MARKETING CLUSTER EXAM—KEY 21

, Columbus, Ohio

95.

Keeping in touch. Good salespeople recognize that keeping in contact with customers is one of the best ways to

maintain their partnerships. Sometimes this involves sending out a thank-you note, as in Joaquin's case.

Sometimes this can be as simple as a follow-up phone call, or for major clients, it may even involve a personal

visit. Soliciting feedback, being prompt, and having a good attitude are all important keys to customer service,

but Joaquin is not demonstrating them in this example.

SOURCE:

SE:076 Explain the role of customer service as a component of selling relationships

SOURCE:

LAP-SE-076—Go Beyond the Sale (Customer Service in Selling)

96.

Spreadsheet. Spreadsheet computer programs (e.g., Excel, Quattro Pro) are used to organize and calculate

numerical information. Spreadsheets can be used in sales to track and evaluate sales volume and sales dollars.

Word-processing software is primarily used to create text documents, such as contracts, memos, and letters.

Presentation software is generally used by salespeople when making a sales or product presentation to

customers. Graphic and design software is often used to create catalogs, brochures, and other professional

illustrations.

SOURCE:

SE:107 Describe the use of technology in the selling function

SOURCE:

Collier, A. (2019, August 5). How to use Excel for sales analysis. Retrieved August 16, 2022, from

https://www.cloudextend.io/blog/using-excel-for-sales-analysis/

97.

Unique feature. This is an example of a unique or novel feature. The company offers a service not available

from the competition. A product’s use focuses on what the product can do and how it can be used, while a

product’s durability involves how long the product will last. Style considerations focus on appearance.

SOURCE:

SE:109 Analyze product information to identify product features and benefits

SOURCE:

LAP-SE-109—Find Features, Boost Benefits (Feature-Benefit Selling)

98.

The fact that the client needs the product. After locating potential clients, salespeople must learn about

prospects’ business needs and problems to determine how their products can meet those needs or solve those

problems. Follow-up techniques are used after sales presentations. Clearly written users’ manuals should

identify business policies and services. A sales presentation does not depend on the location of new clients, but

rather on satisfaction of customer needs.

SOURCE:

SE:828 Explain key factors in building a clientele

SOURCE:

LAP-SE-828—Keep Them Loyal (Key Factors in Building Clientele)

99.

Terms-of-sale. Terms-of-sale policies focus on the aspects of a sale with which customers are most concerned,

such as discount, pricing, and credit policies. Selling-activity policies focus on providing salespeople with

guidelines for interacting with customers or potential customers. They are basic directions that explain how

salespeople should approach and deal with customers and how to best use their time. An installation policy

would be considered a type of service policy. Service policies are designed to govern the support a company

provides to customers after the sale.

SOURCE:

SE:932 Explain company selling policies

SOURCE:

LAP-SE-932—Sell Right (Selling Policies)

Test 1264 MARKETING CLUSTER EXAM—KEY 22

, Columbus, Ohio

100.

Planning, organizing, staffing, directing, controlling. The five main management functions involve planning,

organizing, staffing, directing, and controlling. Budgeting, scheduling, developing procedures, and delegation

are management tools. Evaluating, motivating, training, researching, collecting information, and reporting are

some of the activities involved in performing the major functions of management.

SOURCE:

SM:001 Explain the concept of management

SOURCE:

LAP-SM-001—Manage This! (Concept of Management)