with Questions and Correct Latest
Updated 2026-2027
Functional relationships - CORRECT ANSWERS-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 - CORRECT ANSWERS-Divides the business into small, tightly knit
strategic business units (SBUs), which focus on specific elements of the organizational
process
Value chain - CORRECT ANSWERS-The process or activities by which a company adds
value to a product, including production, marketing, and the provision of after-sales service
Strategic business units (SBUs) - CORRECT ANSWERS-A profit center that focuses on
product offering and market segment
Sustainable competitive advantage - CORRECT ANSWERS-Company assets, attributes,
or abilities that are difficult to duplicate or exceed and provide a superior or favorable long-
term position over competitors
Factors that can help a business develop a sustainable competitive advantage -
CORRECT ANSWERS-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) - CORRECT ANSWERS-The use of data in an enterprise to
facilitate decision-making
Big data analytics - CORRECT ANSWERS-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 - CORRECT
ANSWERS-A written code of ethics and standards. Ethics training to executives,
managers, and employees. Availability of advice on ethical situations (advice lines or
ethics offices). A system for confidential reporting.
,Integrated marketing communications (IMC) - CORRECT ANSWERS-The careful
coordination of all promotional activities—media advertising, sales promotion, personal
selling, and public relations, as well as direct marketing, packaging, and other forms of
promotion—to produce a consistent, unified message that is customer focused
Marketing concept - CORRECT ANSWERS-Identifying consumer needs and then
producing the goods or services that will satisfy those needs while making a profit for the
organization
Promotional techniques - CORRECT ANSWERS-Advertising, sales promotion, and
publicity, or creating new sales channels or new products
Promotional mix - CORRECT ANSWERS-The combination of advertising, personal
selling, sales promotion, and public relations used to promote a product
The main limitation of the AIDA model - CORRECT ANSWERS-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? - CORRECT ANSWERS-The AIDA model assumes
that the customer experience ends at the purchase while the six-step process considers
the after-purchase relationship with the customer.
Transactional selling - CORRECT ANSWERS-Focuses on short-term, often single,
transactions.
Relationship selling - CORRECT ANSWERS-Focused on long-term relationship building
to keep customers satisfied and consequently convince them to return and make multiple
purchases.
Adaptive selling - CORRECT ANSWERS-Using social styles to customize a sales
approach to the specific customer
Social style matrix - CORRECT ANSWERS-A model that categorizes people according to
personality traits and how they interact with others
Analyticals - CORRECT ANSWERS-Focus on "how,"include facts, do not challenge their
facts, demonstrate 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 - CORRECT ANSWERS-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 - CORRECT ANSWERS-Focus on "why," establish a personal relationship,
demonstrate personal commitment, and work as a team. High responsiveness and low
assertiveness
Expressives - CORRECT ANSWERS-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 - CORRECT ANSWERS-Sales approach where the seller becomes a
trusted advisor to the customer and builds a relationship to truly understand his or her
needs
Customer lifetime value (CLV) - CORRECT ANSWERS-A prediction of the net profit
attributed to the entire future relationship with a customer
Return on customer investment - CORRECT ANSWERS-A metric that measures how
much value a business can create per customer
Value proposition - CORRECT ANSWERS-An innovation, service, or feature intended to
make a company or product attractive to customers
A value proposition should be - CORRECT ANSWERS-Clear (short and direct),
compelling (motivates), and differentiating (sets the offering aprt).
Equation for ROI - CORRECT ANSWERS-ROI = net profit ÷ investment × 100
Return on investment (ROI) - CORRECT ANSWERS-A performance measure used to
evaluate the efficiency of an investment or compare the efficiency of a number of different
investments
Equation for CLV - CORRECT ANSWERS-CLV = dollar value of purchases x gross profit
percent x number of purchases
Sales channels - CORRECT ANSWERS-A way of bringing products or services to market
so they can be purchased by consumers
Distribution channels - CORRECT ANSWERS-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 - CORRECT ANSWERS-Their main job is to represent the producer to
the final user in selling a product.
Wholesalers - CORRECT ANSWERS-They sell the products to other intermediaries, such
as retailers, for a higher price than they paid. They buy in bulk and store the products in
, their own warehouses and storage places until it is time to resell them. They are
independently owned, and they own the products that they sell.
Distributors - CORRECT ANSWERS-They take ownership of the product, store it, and sell
it at a profit to retailers or other intermediaries. However, the key difference is that
distributors ally themselves to complementary products
Retailers - CORRECT ANSWERS-Whatever their size, retailers purchase products from
market intermediaries and sell them directly to the end user for a profit
Missionary salespeople - CORRECT ANSWERS-A salesperson who provides information
to an individual who will influence the purchase decision
Technical salespeople - CORRECT ANSWERS-Sales people who are experts in a
specific product or service area. They promote and sell the product by demonstrating how
it works along with the benefits it can offer potential customers
Trade salespeople - CORRECT ANSWERS-A salesperson who calls on retailers and
helps them display, advertise, and sell products to consumers
Inside salespeople - CORRECT ANSWERS-People who routinely work inside the
business taking orders and handling transactions
Outside salespeople - CORRECT ANSWERS-Sales personnel who go out into the field to
meet with customers
Account management - CORRECT ANSWERS-Maintaining a long-term relationship with
customers who purchased from the firm in the past
Account-based marketing (ABM) - CORRECT ANSWERS-Concentrates sales and
marketing resources on a clearly defined set of target accounts within a market and
employs personalized campaigns designed to resonate with each account
Key account management (KAM) - CORRECT ANSWERS-Developing and maintaining
long-term, sustainable and mutually beneficial relationships with key accounts (customer)
Inactive accounts - CORRECT ANSWERS-Clients who have not made a purchase for a
specified period of time
Active accounts - CORRECT ANSWERS-Have consistent transactions and engagement
with the business
Passive accounts - CORRECT ANSWERS-Clients who have established an ongoing
relationship with the company through its website and may or may not have a recurring
order