SMPS CPSM Exam UPDATED ACTUAL
Exam Questions and CORRECT Answers
Action Plan - CORRECT ANSWER - Defines the tasks that must be accomplished to
implement each strategy within the marketing plan and who will be responsible for
accomplishing that task.
Advertising agency - CORRECT ANSWER - Professional services agency to handle
advertising, selection is similar to AEC firm - people and technical qualifications.
Aimed at the Right Audience - CORRECT ANSWER - Advertising directed to those
interested in and needing your service
Alliance - CORRECT ANSWER - A long-term relationship between two parties for
services on several projects. Usually based on a unique service the seller can provide the client,
linking the two where the seller becomes almost an extension of the client. (EX: Design-Build
Relationship)
Alternate Dispute Resolution - CORRECT ANSWER - Alternative methods, besides
litigation, to settle project dispute - mediation or arbitration.
Alternate Dispute Resolution Mediation - CORRECT ANSWER - A procedure in which
the parties submit their disputes, including details of their positions to an independent, third party
mediator. The mediator then discusses the dispute with the parties, including the mediator's view
of the strengths and weaknesses of each party's position. The mediator helps the parties attempt
to reach a settlement of their dispute. If the dispute is not settled, the next step is arbitration or
litigation, depending on the terms of the contract.
Mediation is an example of non-binding dispute resolution
Alternate Dispute Resolution Arbitration - CORRECT ANSWER - In order to have a
binding arbitration agreement, the parties must, in writing, agree to submit any claims or dispute
,to arbitration. Generally the parties agree to submit the arbitration to the AAA per the
Construction Industry Arbitration Rules.
Dictionary.com:
The hearing and determining of a dispute or the settling of differences between parties by a
person or persons chosen or agreed to by them.
Attention Getting - CORRECT ANSWER - Advertising must be: distinctive, repetitive,
unique, words and images must work together.
Audience - CORRECT ANSWER - To whom things are aimed. Qualify and target the
audience.
Benchmarking Studies - CORRECT ANSWER - A standard by which something can be
measured or judged. To measure according to specified standards in order to compare it with and
improve one's product.
Benchmarking - CORRECT ANSWER - Is a comparative measure. Establishes a standard
and shows progress or decline. To compare one's goods, services or processes with recognized
leaders in those areas.
Brand Positioning - CORRECT ANSWER - One sentence distinguishes and differentiates
Brand Equity - CORRECT ANSWER - Good will, value and volume margins
Brochure - CORRECT ANSWER - Firm marketing tool to present salient facts about the
firm at a glance. Cross selling tool explains who you are and what you do.
• Three Year shelf life
• Six months to plan and produce
, Budget Goal-Based Method - CORRECT ANSWER - Also known as the bottom-up
method, this method assigns cost to each item in marketing plan. This method allows you to base
your budgeting on the year's business plan revenue goals and marketing plan implementation
tasks.
Budget Percentage Method - CORRECT ANSWER - Also known as the top-down
method, this method of budgeting allocates a certain percentage of the firm's total operating
revenue to marketing. The percentage usually falls between 5 - 15%.
Budget Projection Method - CORRECT ANSWER - Also known as the comparison
method; relies on using the prior year's costs to develop the upcoming year's budget. This
process works well if the company is stable but it doesn't allow consideration of year's marketing
planning goals or the changing conditions of the market.
Business Plan - CORRECT ANSWER - The business plan establishes the firm's near-term
goals, including gross revenues, net revenues and expenditures by category and profit amounts
and percentages. Marketing plan is part of the overall business plan. Developed yearly. Should
consist of Market Segment analysis.
Contract - CORRECT ANSWER - An exchange of promises between two or more parties
that creates a legal obligation between them. In its simplest form, it is an offer and an acceptance.
Oral and written. Used to appropriately allocate risk and avoid ambiguity.
Signature is not a required element
Commitment - CORRECT ANSWER - A key leadership quality, conveyed through
personal action.
Charge Multiplier - CORRECT ANSWER - Ratio of charge (billable) rate to its payroll
rate. Average for industry is a 3.0 multiplier.
Client Newsletter - CORRECT ANSWER - Provides on-going client contact, pertinent
issues not firm glorification
Exam Questions and CORRECT Answers
Action Plan - CORRECT ANSWER - Defines the tasks that must be accomplished to
implement each strategy within the marketing plan and who will be responsible for
accomplishing that task.
Advertising agency - CORRECT ANSWER - Professional services agency to handle
advertising, selection is similar to AEC firm - people and technical qualifications.
Aimed at the Right Audience - CORRECT ANSWER - Advertising directed to those
interested in and needing your service
Alliance - CORRECT ANSWER - A long-term relationship between two parties for
services on several projects. Usually based on a unique service the seller can provide the client,
linking the two where the seller becomes almost an extension of the client. (EX: Design-Build
Relationship)
Alternate Dispute Resolution - CORRECT ANSWER - Alternative methods, besides
litigation, to settle project dispute - mediation or arbitration.
Alternate Dispute Resolution Mediation - CORRECT ANSWER - A procedure in which
the parties submit their disputes, including details of their positions to an independent, third party
mediator. The mediator then discusses the dispute with the parties, including the mediator's view
of the strengths and weaknesses of each party's position. The mediator helps the parties attempt
to reach a settlement of their dispute. If the dispute is not settled, the next step is arbitration or
litigation, depending on the terms of the contract.
Mediation is an example of non-binding dispute resolution
Alternate Dispute Resolution Arbitration - CORRECT ANSWER - In order to have a
binding arbitration agreement, the parties must, in writing, agree to submit any claims or dispute
,to arbitration. Generally the parties agree to submit the arbitration to the AAA per the
Construction Industry Arbitration Rules.
Dictionary.com:
The hearing and determining of a dispute or the settling of differences between parties by a
person or persons chosen or agreed to by them.
Attention Getting - CORRECT ANSWER - Advertising must be: distinctive, repetitive,
unique, words and images must work together.
Audience - CORRECT ANSWER - To whom things are aimed. Qualify and target the
audience.
Benchmarking Studies - CORRECT ANSWER - A standard by which something can be
measured or judged. To measure according to specified standards in order to compare it with and
improve one's product.
Benchmarking - CORRECT ANSWER - Is a comparative measure. Establishes a standard
and shows progress or decline. To compare one's goods, services or processes with recognized
leaders in those areas.
Brand Positioning - CORRECT ANSWER - One sentence distinguishes and differentiates
Brand Equity - CORRECT ANSWER - Good will, value and volume margins
Brochure - CORRECT ANSWER - Firm marketing tool to present salient facts about the
firm at a glance. Cross selling tool explains who you are and what you do.
• Three Year shelf life
• Six months to plan and produce
, Budget Goal-Based Method - CORRECT ANSWER - Also known as the bottom-up
method, this method assigns cost to each item in marketing plan. This method allows you to base
your budgeting on the year's business plan revenue goals and marketing plan implementation
tasks.
Budget Percentage Method - CORRECT ANSWER - Also known as the top-down
method, this method of budgeting allocates a certain percentage of the firm's total operating
revenue to marketing. The percentage usually falls between 5 - 15%.
Budget Projection Method - CORRECT ANSWER - Also known as the comparison
method; relies on using the prior year's costs to develop the upcoming year's budget. This
process works well if the company is stable but it doesn't allow consideration of year's marketing
planning goals or the changing conditions of the market.
Business Plan - CORRECT ANSWER - The business plan establishes the firm's near-term
goals, including gross revenues, net revenues and expenditures by category and profit amounts
and percentages. Marketing plan is part of the overall business plan. Developed yearly. Should
consist of Market Segment analysis.
Contract - CORRECT ANSWER - An exchange of promises between two or more parties
that creates a legal obligation between them. In its simplest form, it is an offer and an acceptance.
Oral and written. Used to appropriately allocate risk and avoid ambiguity.
Signature is not a required element
Commitment - CORRECT ANSWER - A key leadership quality, conveyed through
personal action.
Charge Multiplier - CORRECT ANSWER - Ratio of charge (billable) rate to its payroll
rate. Average for industry is a 3.0 multiplier.
Client Newsletter - CORRECT ANSWER - Provides on-going client contact, pertinent
issues not firm glorification
