Functional relationships - ANSWER Limited, ongoing relationships that develop when a
buyer continues to purchase a product from a seller out of habit, as long as its needs are
met
Modular structure - ANSWER Divides the business into small, tightly knit strategic busi-
ness units (SBUs), which focus on specific elements of the organizational process
Value chain - ANSWER The process or activities by which a company adds value to a prod-
uct, including production, marketing, and the provision of after-sales service
Strategic business units (SBUs) - ANSWER A profit center that focuses on product offering
and market segment
Sustainable competitive advantage - ANSWER Company assets, attributes, or abilities
that are difficult to duplicate or exceed and provide a superior or favorable long-term posi-
tion over competitors
Factors that can help a business develop a sustainable competitive advantage - ANSWER
Customer loyalty, location, distribution and information systems (Getting products at a
cheap price and selling them at a reasonable price), unique merchandise, vendor relations,
customer service, and multiple source advantage (being widely recognized by your
strengths)
Business intelligence (BI) - ANSWER The use of data in an enterprise to facilitate decision-
making
1
,Big data analytics - ANSWER Large, complex data sets that require non-traditional data
processing software to predict trends and forecasts
Four elements that make up ethical behavior within an organization - ANSWER A written
code of ethics and standards. Ethics training to executives, managers, and employees. Availa-
bility of advice on ethical situations (advice lines or ethics offices). A system for confidential
reporting.
Integrated marketing communications (IMC) - ANSWER The careful coordination of all
promotional activities—media advertising, sales promotion, personal selling, and public rela-
tions, as well as direct marketing, packaging, and other forms of promotion—to produce a
consistent, unified message that is customer focused
Marketing concept - ANSWER Identifying consumer needs and then producing the goods
or services that will satisfy those needs while making a profit for the organization
Promotional techniques - ANSWER Advertising, sales promotion, and publicity, or creat-
ing new sales channels or new products
Promotional mix - ANSWER The combination of advertising, personal selling, sales pro-
motion, and public relations used to promote a product
The main limitation of the AIDA model - ANSWER The model assumes consumers are
passive and marketers are active during most of the buying process.
What is the main difference between the AIDA model of the buyer's journey and the six
steps model of the buying process? - ANSWER The AIDA model assumes that the cus-
tomer experience ends at the purchase while the six-step process considers the after-pur-
chase relationship with the customer.
Transactional selling - ANSWER Focuses on short-term, often single, transactions.
2
,Relationship selling - ANSWER Focused on long-term relationship building to keep cus-
tomers satisfied and consequently convince them to return and make multiple purchases.
Adaptive selling - ANSWER Using social styles to customize a sales approach to the spe-
cific customer
Social style matrix - ANSWER A model that categorizes people according to personality
traits and how they interact with others
Analyticals - ANSWER Focus on "how,"include facts, do not challenge their facts, demon-
strate results, mention guarantees and warranties, give them time to decide, communicate
the pros and cons, and provide history, data, financial details. Low responsiveness and low
assertiveness
Drivers - ANSWER Focus on "what," get to the point quickly, provide options, use facts,
focus on results, provide timelines, and make them feel in control. Low responsiveness and
high assertiveness
Amiables - ANSWER Focus on "why," establish a personal relationship, demonstrate per-
sonal commitment, and work as a team. High responsiveness and low assertiveness
Expressives - ANSWER Focus on "who," take extra time to discuss everything, give them
recognition and approval, ask them how they feel about the product or service, focus on the
big picture, and use facts and figures to demonstrate what is possible. High responsiveness
and high assertiveness
Consultative selling - ANSWER Sales approach where the seller becomes a trusted advisor
to the customer and builds a relationship to truly understand his or her needs
3
, Customer lifetime value (CLV) - ANSWER A prediction of the net profit attributed to the
entire future relationship with a customer
Return on customer investment - ANSWER A metric that measures how much value a
business can create per customer
Value proposition - ANSWER An innovation, service, or feature intended to make a com-
pany or product attractive to customers
A value proposition should be - ANSWER Clear (short and direct), compelling (motivates),
and differentiating (sets the offering aprt).
Equation for ROI - ANSWER ROI = net profit ÷ investment × 100
Return on investment (ROI) - ANSWER A performance measure used to evaluate the effi-
ciency of an investment or compare the efficiency of a number of different investments
Equation for CLV - ANSWER CLV = dollar value of purchases x gross profit percent x num-
ber of purchases
Sales channels - ANSWER A way of bringing products or services to market so they can be
purchased by consumers
Distribution channels - ANSWER A chain of businesses or intermediaries through which a
good or service passes until it reaches the final buyer or the end consumer
Agents or brokers - ANSWER Their main job is to represent the producer to the final user
in selling a product.
4
buyer continues to purchase a product from a seller out of habit, as long as its needs are
met
Modular structure - ANSWER Divides the business into small, tightly knit strategic busi-
ness units (SBUs), which focus on specific elements of the organizational process
Value chain - ANSWER The process or activities by which a company adds value to a prod-
uct, including production, marketing, and the provision of after-sales service
Strategic business units (SBUs) - ANSWER A profit center that focuses on product offering
and market segment
Sustainable competitive advantage - ANSWER Company assets, attributes, or abilities
that are difficult to duplicate or exceed and provide a superior or favorable long-term posi-
tion over competitors
Factors that can help a business develop a sustainable competitive advantage - ANSWER
Customer loyalty, location, distribution and information systems (Getting products at a
cheap price and selling them at a reasonable price), unique merchandise, vendor relations,
customer service, and multiple source advantage (being widely recognized by your
strengths)
Business intelligence (BI) - ANSWER The use of data in an enterprise to facilitate decision-
making
1
,Big data analytics - ANSWER Large, complex data sets that require non-traditional data
processing software to predict trends and forecasts
Four elements that make up ethical behavior within an organization - ANSWER A written
code of ethics and standards. Ethics training to executives, managers, and employees. Availa-
bility of advice on ethical situations (advice lines or ethics offices). A system for confidential
reporting.
Integrated marketing communications (IMC) - ANSWER The careful coordination of all
promotional activities—media advertising, sales promotion, personal selling, and public rela-
tions, as well as direct marketing, packaging, and other forms of promotion—to produce a
consistent, unified message that is customer focused
Marketing concept - ANSWER Identifying consumer needs and then producing the goods
or services that will satisfy those needs while making a profit for the organization
Promotional techniques - ANSWER Advertising, sales promotion, and publicity, or creat-
ing new sales channels or new products
Promotional mix - ANSWER The combination of advertising, personal selling, sales pro-
motion, and public relations used to promote a product
The main limitation of the AIDA model - ANSWER The model assumes consumers are
passive and marketers are active during most of the buying process.
What is the main difference between the AIDA model of the buyer's journey and the six
steps model of the buying process? - ANSWER The AIDA model assumes that the cus-
tomer experience ends at the purchase while the six-step process considers the after-pur-
chase relationship with the customer.
Transactional selling - ANSWER Focuses on short-term, often single, transactions.
2
,Relationship selling - ANSWER Focused on long-term relationship building to keep cus-
tomers satisfied and consequently convince them to return and make multiple purchases.
Adaptive selling - ANSWER Using social styles to customize a sales approach to the spe-
cific customer
Social style matrix - ANSWER A model that categorizes people according to personality
traits and how they interact with others
Analyticals - ANSWER Focus on "how,"include facts, do not challenge their facts, demon-
strate results, mention guarantees and warranties, give them time to decide, communicate
the pros and cons, and provide history, data, financial details. Low responsiveness and low
assertiveness
Drivers - ANSWER Focus on "what," get to the point quickly, provide options, use facts,
focus on results, provide timelines, and make them feel in control. Low responsiveness and
high assertiveness
Amiables - ANSWER Focus on "why," establish a personal relationship, demonstrate per-
sonal commitment, and work as a team. High responsiveness and low assertiveness
Expressives - ANSWER Focus on "who," take extra time to discuss everything, give them
recognition and approval, ask them how they feel about the product or service, focus on the
big picture, and use facts and figures to demonstrate what is possible. High responsiveness
and high assertiveness
Consultative selling - ANSWER Sales approach where the seller becomes a trusted advisor
to the customer and builds a relationship to truly understand his or her needs
3
, Customer lifetime value (CLV) - ANSWER A prediction of the net profit attributed to the
entire future relationship with a customer
Return on customer investment - ANSWER A metric that measures how much value a
business can create per customer
Value proposition - ANSWER An innovation, service, or feature intended to make a com-
pany or product attractive to customers
A value proposition should be - ANSWER Clear (short and direct), compelling (motivates),
and differentiating (sets the offering aprt).
Equation for ROI - ANSWER ROI = net profit ÷ investment × 100
Return on investment (ROI) - ANSWER A performance measure used to evaluate the effi-
ciency of an investment or compare the efficiency of a number of different investments
Equation for CLV - ANSWER CLV = dollar value of purchases x gross profit percent x num-
ber of purchases
Sales channels - ANSWER A way of bringing products or services to market so they can be
purchased by consumers
Distribution channels - ANSWER A chain of businesses or intermediaries through which a
good or service passes until it reaches the final buyer or the end consumer
Agents or brokers - ANSWER Their main job is to represent the producer to the final user
in selling a product.
4
