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Func onal rela onships - Answers Limited, ongoing rela onships that develop when a buyer
con nues to purchase a product from a seller out of habit, as long as its needs are met
Modular structure - Answers Divides the business into small, ghtly knit strategic business
units (SBUs), which focus on specific elements of the organiza onal process
Value chain - Answers The process or ac vi es by which a company adds value to a product,
including produc on, marke ng, and the provision of a)er-sales service
Strategic business units (SBUs) - Answers A profit center that focuses on product offering and
market segment
Sustainable compe ve advantage - Answers Company assets, a,ributes, or abili es that are
difficult to duplicate or exceed and provide a superior or favorable long-term posi on over
compe tors
Factors that can help a business develop a sustainable compe ve advantage - Answers
Customer loyalty, loca on, distribu on and informa on systems (Ge0ng products at a cheap
price and selling them at a reasonable price), unique merchandise, vendor rela ons, customer
service, and mul ple source advantage (being widely recognized by your strengths)
Business intelligence (BI) - Answers The use of data in an enterprise to facilitate decision-
making
Big data analy cs - Answers Large, complex data sets that require non-tradi onal data
processing so)ware to predict trends and forecasts
,Four elements that make up ethical behavior within an organiza on - Answers A wri,en code
of ethics and standards. Ethics training to execu ves, managers, and employees. Availability of
advice on ethical situa ons (advice lines or ethics offices). A system for confiden al repor ng.
Integrated marke ng communica ons (IMC) - Answers The careful coordina on of all
promo onal ac vi es—media adver sing, sales promo on, personal selling, and public
rela ons, as well as direct marke ng, packaging, and other forms of promo on—to produce a
consistent, unified message that is customer focused
Marke ng concept - Answers Iden fying consumer needs and then producing the goods or
services that will sa sfy those needs while making a profit for the organiza on
Promo onal techniques - Answers Adver sing, sales promo on, and publicity, or crea ng
new sales channels or new products
Promo onal mix - Answers The combina on of adver sing, personal selling, sales promo on,
and public rela ons used to promote a product
The main limita on of the AIDA model - Answers The model assumes consumers are passive
and marketers are ac ve 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? - Answers The AIDA model assumes that the customer
experience ends at the purchase while the six-step process considers the a)er-purchase
rela onship with the customer.
Transac onal selling - Answers Focuses on short-term, o)en single, transac ons.
,Rela onship selling - Answers Focused on long-term rela onship building to keep customers
sa sfied and consequently convince them to return and make mul ple purchases.
Adap ve selling - Answers Using social styles to customize a sales approach to the specific
customer
Social style matrix - Answers A model that categorizes people according to personality traits
and how they interact with others
Analy cals - Answers Focus on "how,"include facts, do not challenge their facts, demonstrate
results, men on guarantees and warran es, give them me to decide, communicate the pros
and cons, and provide history, data, financial details. Low responsiveness and low asser veness
Drivers - Answers Focus on "what," get to the point quickly, provide op ons, use facts, focus
on results, provide melines, and make them feel in control. Low responsiveness and high
asser veness
Amiables - Answers Focus on "why," establish a personal rela onship, demonstrate personal
commitment, and work as a team. High responsiveness and low asser veness
Expressives - Answers Focus on "who," take extra me to discuss everything, give them
recogni on 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 asser veness
Consulta ve selling - Answers Sales approach where the seller becomes a trusted advisor to
the customer and builds a rela onship to truly understand his or her needs
Customer life me value (CLV) - Answers A predic on of the net profit a,ributed to the en re
future rela onship with a customer
, Return on customer investment - Answers A metric that measures how much value a business
can create per customer
Value proposi on - Answers An innova on, service, or feature intended to make a company
or product a,rac ve to customers
A value proposi on should be - Answers Clear (short and direct), compelling (mo vates), and
differen a ng (sets the offering aprt).
Equa on for ROI - Answers ROI = net profit ÷ investment × 100
Return on investment (ROI) - Answers A performance measure used to evaluate the efficiency
of an investment or compare the efficiency of a number of different investments
Equa on for CLV - Answers CLV = dollar value of purchases x gross profit percent x number of
purchases
Sales channels - Answers A way of bringing products or services to market so they can be
purchased by consumers
Distribu on channels - Answers A chain of businesses or intermediaries through which a good
or service passes un l it reaches the final buyer or the end consumer
Agents or brokers - Answers Their main job is to represent the producer to the final user in
selling a product.
Wholesalers - 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