Bell Ringer Activities
For
Marketing Cluster
Describe the uses of grades and standards in marketing.
A grade states the quality of a product. A grade label appears on the packaging of a
product and states the quality of the product. For example, eggs are labeled AA, A and B.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain types of business ownership.
There are four possible forms of business organization: sole proprietorship, partnership,
corporation, and limited liability company (LLC). The choice depends on the financial
and tax situation of the owner, the type of business, the number of employees, and the
level of risk involved. Each has advantages and disadvantages to be explored.
A sole proprietorship is a business owned and operated by one person. A partnership is a
legal agreement between two or more people. The two types of partnerships are general
and limited. A corporation is a legal entity created by a government statute authorizing
individuals to operate an enterprise. A limited liability company is a hybrid of a
partnership and a corporation. In an LLC the owners are shielded from personal liability
while all profits/losses pass directly to the owners without taxation of the business itself.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
How can you demonstrate active listening skills?
Demonstrating active listening skills includes making eye contact, identifying a purpose,
asking clarification questions and providing feedback.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the nature of effective verbal communications.
Effective verbal communications includes showing respect, knowing the purpose of why
you are speaking, using your voice effectively, using enumeration where appropriate, and
providing examples.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Discuss the nature of law and sources of law in the United States.
Laws are enforceable rules of society that reflect the culture and circumstances that create
them. Laws may be grouped into an organized form called a code. They should be both
predictable and flexible. A number of forms of law exist, including common law,
positive law, English common law, and equity.
In the U.S., sources of law include the Constitution, state constitutions, statutes,
ordinances, administrative regulations, and criminal or civil cases.
Source: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th
ed.). Mason, OH: South-Western.
What can you do to demonstrate a customer-service mindset?
A customer-service mindset is an attitude that customer satisfaction always comes first.
To demonstrate a customer-service mindset, employee should: make customers feel
welcome, be willing to answer questions or find answers to questions.
Source: Clark, B.; Sobel, J. & Basteri, C. G. (2010) Marketing Dynamics (2nd Edition).
Tinley Park, IL: The Goodheart-Willcox Company, Inc.
What are some tips for handling difficult customers?
A recommended process for handling customer complaints includes: x
Listen
x Take the customer aside to discuss the complaint
x Repeat the facts to show that you understand what the customer has stated x
Get assistance from a supervisor, if necessary x Establish a plan that
determines the next action step
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain how organizations adapt to today’s markets.
Organizations adapt to today’s markets by using tools like SWOT Analysis and
environmental scans to identify ways the business can improve. A SWOT Analysis
assesses a company’s strengths and weaknesses and the opportunities and threats that
surround it. An environmental scan is an analysis of outside information that may have an
impact on an organization. A business is constantly engaged in the process of renewal
when they choose to use this data.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Identify sources that provide relevant, valid written material.
Sources for written material may be obtained internally or externally. Internal sources
include such data as a company’s monthly sales records or previously collected market
research. External sources include the Internet, government, specialized research
companies, and business/trade publications and associations.
The Internet provides a nearly limitless source of free or fee-based information from
companies’ own websites or business clearinghouses. Data collected by government
agencies is available online regarding topics such as demographics, product and
economic news, and legislative trends. Government agencies also serve as good sources
for written material, such as the Small Business Administration, U.S. Census Bureau,
Securities and Exchange Commission, etc. Specialized research companies sell
demographic data, sales forecasts, and other business data they have collected.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the role of ethics in customer relationship management.
Customer relationship management involves finding customers and keeping them
satisfied through a variety of means. It is useful for developing and maintaining customer
relationships. The sharing of customer information among businesses has led to privacy
issues. The government has regulations protecting the privacy of consumers, including
offering customers the option of being added to mailing lists.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
How can you demonstrate initiative?
Demonstrating initiative means taking action and completing tasks without being
specifically asked to do so. An example of taking initiative is developing a new idea for
a marketing campaign and conducting the research to show that your idea has viability.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Describe the marketing functions.
There are seven functions of marketing:
Channel Management is the process of deciding how to get goods into customer’s
hands.
Market Planning is understanding the analysis needed to target specific marketing
strategies to a select audience.
Marketing Information Management is gathering and analyzing information
related to market, product and segmentation decisions.
Pricing is how much to charge for goods and services to create a profit.
Product/Service Management is obtaining, developing, maintaining, and
improving a product or product mix in response to market opportunities.
Promotion is to inform, persuade, or remind potential customers about a product
or service.
Selling is providing a customer with a good or service they want.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain communication techniques that support and encourage a speaker.
Communication techniques include using your own body language and facial expressions
to respond to the speaker. For example, sit up straight or lean toward the speaker to show
that you are interested. React to the speaker with comments or questions. Taking notes
keeps you involved in listening to the speaker and shows your level of interest. Maintain
eye contact and minimize distracting thoughts and activities.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th
ed.). New York, NY: Glencoe/McGraw Hill.
Explain customer buying behavior.
Buying behavior is the process that customers use to decide what they will buy, where
they will buy it, and from whom they will buy it.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
What are some ways you can maintain a safe work environment?
Creating a safe work environment is important due to the significant financial impact
these policies can have on a business. Many companies develop an accident management
program that includes complying with federal and state health and safety regulations,
documenting workplace incidents, providing employees with protective clothing and
equipment, offering safety training and information and providing opportunity for safety
and health training.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Why is it important to follow established security procedures/policies?
Established security procedures allow employees to know what to do in certain situations
without them making a personal judgment. Security policies protect the business from
negative financial impacts from both employees and customers.
Source: Clark, B.; Sobel, J. & Basteri, C. G. (2010) Marketing Dynamics (2nd Edition).
Tinley Park, IL: The Goodheart-Willcox Company, Inc.
Describe legal issues affecting businesses.
Among the legal issues affecting businesses are the following. Consumer protection
issues include product safety (for everything from toys to furniture), zoning laws to
protect real estate value and quality of life, public health (i.e. at restaurants), and
licensing for personal service providers (such as hairstylists and electricians). Employee
protection issues include minimum wage standards, equal opportunity employment
provisions, guidelines for workplace safety, and the Family and Medical Leave Act.
Other legal issues businesses must be aware of include laws protecting investors and the
environment as well as maintaining competition in the marketplace. The Securities and
Exchange Commission regulates the sale of stocks and bonds and investigates deals
among corporations. Businesses must follow various other laws to protect human health
and the environment in regard to pollution, waste disposal, and recycling. Companies are
also faced with legal standards that protect against anti-competitive mergers and business
practices. Laws also exist that regulate the distribution of products such as alcohol and
tobacco.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain how to handle telephone calls in a businesslike manner.
Because in a phone conversation your listener cannot see you, a pleasant voice is very
important, whether answering or initiating a call. You should enunciate clearly and speak
directly into the mouthpiece, speaking loudly enough to be heard but do not shout. It is
important to make sure all of the necessary information is conveyed between you and the
other party, so you may wish to write down key points before or during the call. Listen
actively, and do not interrupt the speaker. When answering, be prepared to take a
message. A proper message includes the date and time of the call, the caller’s name and
message, a return phone number. It is courteous to repeat the name and phone number of
the caller to ensure it is correct.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
As a buyer, what criteria should you use when selecting vendors?
Buyers must be aware of several criteria when selecting suppliers to work with. These
include production capabilities, past experiences, product quality, special buying
arrangements, special services, and pricing. Buyers should have clearly defined
expectations and standards so that vendors are aware of what should be delivered.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain career opportunities in marketing.
There are various careers that can be obtained in the field of marketing including several
job levels including entry-level, career-sustaining, marketing specialist, marketing
supervisors and managers and CEOs/owners. There are 21 areas or applications within
the field of marketing including advertising, entrepreneur, market research and retail
management.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain effective note-taking strategies.
Note taking helps you remember facts and keeps your attention focused. Do not try to
write down everything that is said; focus on key words and main ideas. Jot down
summaries in your own words. Take note of actions you need to take. Use bulleted lists,
asterisks, and arrows to show relationships among ideas. Review your notes to make sure
you understand concepts and instructions. If you cannot take notes, make mental notes of
the main points.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th
ed.). New York, NY: Glencoe/McGraw Hill.
Explain the nature and scope of channel management.
Channel management is the supervision of a good or service through the manufacturing
process to the final user. This process can include manufacturers, wholesalers, retailers,
direct and indirect distribution and agents. As a good or service moves in this process,
channel management can include the selection of a transportation systems and services as
well as inventory storage.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the relationship between customer service and channel management.
Customer satisfaction is a goal of any profitable businesses. In order to meet the needs
and wants of customers, channel management must work effectively to deliver a product
at the right time to the right place. A business’ ability to select the appropriate
distribution channel, transportation and inventory will impact the customer’s choices
when making a purchase.
Explain forms of financial exchange. (cash, credit, debit, electronic funds transfer,
etc...)
Credit enables a business or individual to purchase goods and services in exchange for a
promise to pay later. It is most helpful when consumers want to make major purchases,
though it is often used for more common, less expensive items. Customers are typically
issued a credit card from a bank to make such purchases. Debit is a variation of credit.
Consumers using a debit card authorize a seller to withdraw funds directly from the
consumer’s bank account at the time of sale. A cash sale is any transaction in which the
customer pays for the item with cash or a check.
Other forms of retail sales transactions include layaway, on-approval, and cashondelivery (COD). Layaway means removing merchandise from stock and keeping it in
a separate storage area until the customer pays. In an on-approval sale, an agreement is
made permitting a customer to take merchandise home for further consideration before
paying. A COD sale is a transaction that occurs when a customer pays for goods at the
time they are delivered.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain how to organize information.
First of all, you must decide if a piece of information is important. Information you do
not need becomes clutter. Try to do something with important information the first time
you look at it. Put information you will look at later in a file or folder. Categorize
information by type and label each file or folder. Avoid putting each document in a
separate file and do not let files get too large—divide them by subtopics. Color-code
files, folders, or labels. Maintain your files on a regular basis.
Organize your writing by using a logical order, such as chronological order or order of
importance. Use heading and subheadings when writing longer documents.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th
ed.). New York, NY: Glencoe/McGraw Hill.
Explain the nature of effective written communications.
Effective written communications require some basic considerations: knowing your
audience, knowing your purpose, and knowing your subject. You must assess who your
target audience consists of in order to which form of communication to use. Next,
knowing your purpose for writing helps you organize your thoughts. You must decide if
you are trying to inform, confirm, inquire, answer, or persuade the audience. Lastly,
written communication requires that you have in-depth knowledge of the subject and how
to relate what you know to the intended audience.
The form of written communication you choose to use will depend on the above
considerations. Letters are formal methods of communicating outside the business.
Email is an informal method used to reach those inside or outside the company. Memos,
while being replaced by e-mail, are a more formal way to communicate within a
company. Business reports are for lengthy topics, typically for internal use or for
stockholders. Similarly, company publications may be used internally (for company
policies) or externally (for marketing purposes).
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the nature of channels of distribution.
A channel of distribution is the road that a product or service takes from production to
end user. Products and services may use direct or indirect distribution channels to arrive
to a customer. Direct distribution is when the producer sells the product to the end user.
Indirect distribution involves one or more intermediaries who aid in moving the product
from producer to end user. Factors including whether it is a consumer or industrial
product affect what channel of distribution is selected.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Describe the use of technology in the channel management function.
Technology has created a new channel of distribution known as e-tailing where customers
and industrial buyers make purchases using the Internet. The online shopping location is
known as an e-marketplace.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Describe the use of technology in customer relationship management.
Customer relationship management (CRM) involves finding customers and keeping them
satisfied through a variety of means, and is useful for developing and maintaining
customer relationships. Database marketing is the element of CRM that is the process of
creating and maintaining customer lists. These lists can be developed from face-to-face
sales, direct mail responses, phone or e-mail purchases, service requests, Web site visits,
or they can be purchased from a third party. CRM data is also obtained through customer
satisfaction surveys, often giving a customer a reward while sharing demographic and
purchase information with the company.
Modern CRM software applications are Internet-enabled web applications. They allow a
customer to create and check accounts and orders online while the company collects
valuable data. Touch-screen computers are becoming popular in retail marketing.
Customers like them and the costs to operate them are low. Interactive TV is a modern
method of allowing viewers to interact with the programming. This method gives
customers instant access to product information, links to online stores, and downloads for
additional content, among other benefits.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain legal considerations in channel management.
The Clayton Antitrust Act of 1914 prevents businesses from exclusionary tactics that
could keep other companies from accessing a channel of distribution if this would create
a monopoly or lessen competition.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Identify tips for making oral presentations.
Start off by knowing your purpose for speaking. It may be to greet, to inform, to request
to persuade, or to propose. Sometimes you may have overlapping purposes. Next you
need to know your audience. Who are your listeners? What are their beliefs, values, and
interests? What do they already know about the subject and what do they need to know?
What does the audience expect to learn? Next you must know your subject and organize
your thoughts. Relate your subject to the audience and decide how to clearly make your
point(s). The best approach is to be clear, brief, and direct.
Good speaking skills are important, and your delivery, style, and attitude are as important
as your message. Speak at an appropriate volume and speed. Use inflection and tone of
your voice to stress key ideas. Try to make emotional contact with your audience, and
make eye contact. Use posture and body language that match your message. Avoid
nonwords, such as uh and um. Pronounce words correctly and enunciate clearly. Project
enthusiasm and a positive attitude.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th
ed.). New York, NY: Glencoe/McGraw Hill.
Distinguish between economic goods and services.
In economic terms, goods are tangible items that have monetary value and satisfy your
needs and wants (such as cars and clothing). Services are intangible items (meaning you
cannot physically touch them) that have monetary value and satisfy your needs and
wants. Services involve a task, such as cooking food or repairing a computer.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Describe ethical considerations in channel management.
The American Marketing Association lists the following as responsibilities in channel
management: not manipulating the availability of a product for purpose of exploitation,
not using coercion, and exerting undue influence over the reseller’s decision to handle the
product.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Identify how to assess personal strengths and weaknesses.
When assessing your strengths and weaknesses, many areas can be explored.
Interpersonal skills that can be assessed include self esteem, attitude, initiative, self
control, creativity, flexibility, stress management, and time management skills. You will
also want to assess more concrete skills and abilities. These are things that you will be
asked to do in the workplace, such as selling a product or organizing an activity.
Complete a self-assessment by asking yourself if you have these types of skills and taking
inventory of your workplace values and needs. Determine what skills you are lacking
and where you can make improvements. Develop your skills and abilities by reading,
observing, and working in a real-world situation.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management.
New York, NY: Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Explain the nature of channel-member relationships.
Channel members need to work together to bring a product to the consumer. Each
participant in the distribution channel needs to work effectively to keep costs low and
profits increasing for each member. These relationships should be evaluated on an
annual basis.
Source:
Clark, B.; Sobel, J. & Basteri, C. G. (2010) Marketing Dynamics (2nd Edition). Tinley
Park, IL: The Goodheart-Willcox Company, Inc.
Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western CENGAGE
Learning.
Describe the need for marketing information.
Marketing information is needed for businesses so that they make effective decisions
about their products, pricing and promotion strategies, competitor awareness and to
ensure that they understand what the customer wants and needs. Marketing information
has a significant financial impact on a business’s profit.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain how to write persuasive messages.
People act in order to have their own needs met. Thus, it is important to show your
reader why he/she has a need to do what you want. To plan a persuasive document, first
identify your objective. Then identify the main idea to show that the requested action
will meet the reader’s needs. Determine the supporting information that will convince
the reader to do what you wish. Finally, adjust the content to the reader, considering
his/her values and concerns.
Organize a persuasive document by 1) gaining the reader’s attention, 2) showing the
reader that he/she has a need, 3) explaining your solution to that need, 4) present the
supporting information, and 5) end by asking for a specific action. Persuasive documents
might include sales letters, collection letters, proposals, and newsletters. To be effective
in drafting persuasive documents, you should also present a solution that is clear, logical,
and practical.
Source: Means, T. (2004). Business Communications. Mason, OH: South-Western.
Identify information needed for marketing decision making.
Marketers need various types of information to make effective decisions. Generally, this
information falls in to three categories: customers, marketing mix and business
environment.
Marketers want to know demographic and psychographic information about their target
market as well as buying behavior information. Marketing mix information can include
features and benefit topics, product packaging, selling choices and promotional strategies.
The business environment topics can include information related to economics,
government regulations, legal issues and SWOT analysis.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
Explain the nature and scope of the marketing information management function.
The marketing information management function includes the activities related to
gathering information on various aspects of the marketplace and analyzing the data to
determine an effective marketing strategy. Various forms of market research are used in
this function on a regular basis to support the decision making process so that marketing
strategies are effective and profitable.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the nature of business ethics.
Ethics are guidelines for good behavior, based on knowing the difference between right
and wrong. Behaving ethically means being truthful, fair, open, and mindful of the law.
In marketing, business ethics involves a company’s efforts to protect individual
consumers and society as a whole. Businesses must keep consumers informed and
protected against fraud and deceit, and they must not produce unsafe goods. Another
ethical consideration for marketers is price gouging, or pricing products unreasonably
high. In sales, ethical issues to be aware of concern bribes, kickbacks, and high pressure
tactics.
Businesses must behave ethically in management, as well, including personnel and
accounting issues. The standards of ethics within a business are in large part determined
by the owner’s principles and values. Remember, people do not all share the same ethical
values. As a result, businesses should create a clear policy on ethics standards.
Sources: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business
Management. New York, NY: Glencoe/McGraw-Hill.
Explain the role of ethics in marketing-information management.
Marketers have a responsibility to be ethical when gathering and storing information. As
market research is conducted, private and competitive information must be held
confidential. Gaining access to private or otherwise protected information in an unethical
way should be avoided as well as pressuring individuals to supply information.
Companies are encouraged to set standards for their employees to follow when
conducting marketing research.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
Describe the use of technology in the marketing-information management function.
Technology has had a significant impact on the ability to successfully manage marketing
information management activities. The Internet has increased a marketer’s ability to
measure effectiveness, track customer buying behavior, conduct research and manage
data. Market research can use technology to automate telephone research and provide
interactive focus groups online.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain how to write an executive summary.
An executive summary may also be called an abstract or a synopsis. Its purpose is to
summarize the key points of a report to the reader. An executive summary is often used
with the report is long and/or technical so that busy readers can get the main points
quickly without having to read the entire report.
The format of an executive summary should match the main report. If the report is
written in direct order, write the executive summary in direct order. An executive
summary is typically a one-page document. The formatting may not match exactly the
report that follows. Line spacing and headings may be different between the two, and it
is usually not numbered in sequence with the body of the report.
Source: Means, T. (2004). Business Communications. Mason, OH: South-Western.
Explain the types of economic systems.
An economic system, or economy, is the way a nation provides for the needs and wants
of its people. It defines how a country will use its resources to produce and distribute
goods and services. Four types of economic systems exist: traditional, market, command,
and mixed.
A traditional economy determines the use of its resources based on the cultural or
religious traditions that have been used for generations. Mostly small, developing nations
use this type of economy today. In a market economy, there is no government
involvement in the decision making process regarding economic resources. The
marketplace determines what, how, and for whom goods will be produced. A command
economy is a system in which a nation’s government makes all of these economic
decisions. The government also controls the factors of production in this system. No
country, however, is a purely traditional, market, or command economy. There are
always influences that make it somewhat mixed.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Describe the regulation of marketing-information management.
The Federal Trade Commission has guidelines for managing and protecting consumer
information. This includes the management of the “Do Not Call Registry” that allows
consumers to manage who they receive solicitation phone calls from at their home.
Source: http://www.ftc.gov/bcp/menus/business/marketing.shtm
_____________________________________________________________________
Explain the nature of marketing research.
Marketing research is a process that involves identifying a problem, gathering and
analyzing data, developing solutions, implementing actions and monitoring results.
Marketing research is used to understand customer behavior, product uses, learn about
competitors, and understand brand awareness. There are two types of market research:
qualitative and quantitative. Qualitative research is used to answer questions beginning
with “why” or “how”. Quantitative research answers questions that start with “how
many” or “how much”.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the role of finance in business.
Finance is the function of business that pertains to money management. A financial plan
is an important element of an overall business plan. Elements that pertain to the role of
finance in a business include start up/equity financing, debt financing, and growth
financing. Various financial statements, such as a balance sheet and income statement,
provide a way to analyze a company’s overall financial standing.
Managing your business’ finances will include planning for profits by forecasting sales,
evaluating profit potential, controlling costs, and budgeting. Business financing also
requires managing taxes and credit.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management.
New York, NY: Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Identify how to prepare simple written reports.
Two types of simple written reports exist. A formal report is generally long, analytical,
and impersonal, often containing preliminary and supplementary parts. An informal
report is shorter and written in a less formal style. They generally have no preliminary or
supplemental parts and are concerned with everyday topics. Both types of reports may be
organized in direct order (if the report is routine or you expect a favorable response from
the reader) or indirect order (when persuasion is necessary or if the subject matter is
negative).
The steps in planning both formal and informal reports are to 1) identify the problem, 2)
decide on areas to investigate, 3) determine the scope, 4) plan the research, 5) develop a
preliminary outline, 6) collect the data, and 7) analyze the data, draw conclusions, and
make recommendations. Three parts of an informal report include opening, body, and
closing. The parts of a formal report are the preliminary parts, body, and supplementary
parts. Most formal reports follow specific formatting guidelines with respect to margins,
spacing, and headings.
Source: Means, T. (2004). Business Communications. Mason, OH: South-Western.
Explain the nature of positive customer relations.
A positive customer relations mindset means believing that your customers: deserve the
very best, are your employers, deserve your focused attention, have the right to expect
things of me, and have important problems and complaints. Positive customer relations
yield benefits to the business, the employees, and the customer. Businesses benefit by
being more competitive, obtaining repeat business, and greater profits. Employees may
receive customer compliments and perhaps a raise or promotion for good customer
service skills. Customers benefit by having a more pleasant, satisfactory buying
experience. This creates an atmosphere of goodwill.
Positive customer relations need to be demonstrated when speaking to customers in
person, over the phone, or online. It should also be evident while handling complaints,
inquiries, and requests. Demonstrate good customer relations by doing the following:
considering and attempting to meet their needs, concentrating on them without
distractions, following up with them, following through on what you say you are going to
do, and being efficient in handling issues.
Source: Customer-Service Mindset. (Human Relations LAP 32: Career-Sustaining
Level). (1999). Columbus, OH: Marketing Education Resource Center.
Discuss the nature of marketing research problems/issues.
A marketing research problem is a way to identify objectives that should be met during
the data gathering process. The market research problem will guide decisions regarding
what data needs to be collected and how it will be used to identify a solution. This step
of the market research also focuses the marketer on a specific issue to resolve.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Describe methods used to design marketing research studies.
Market research studies may use qualitative and quantitative data to create solutions to a
marketing problem. Qualitative research typically obtains information from large
numbers of people. The information is gathered using surveys or questionnaires.
Quantitative research usually involves a smaller number of people and may include using
personal interviews as a method to obtain information.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Determine ways of reinforcing the company’s image through employee
performance.
Employee performance can reinforce a company’s image through suggestion selling,
order processing and fulfillment, and effective selling skills. Suggestion selling is useful
for making the customer happier with his/her original purchase. Sales employees can
improve customer satisfaction by the speed and care in which they handle orders. This
applies, as well, to handling returns and refunds.
Selling skills, such as an appropriate, pleasant greeting and a reassuring departure are
useful tools in maintaining a good image. Offer helpful comments during and after a sale
and always thank the customer in order to build a good relationship. Follow up on all
promises made to a customer, and check on their level of satisfaction after a purchase.
Positive customer-client relations require compassionate and immediate action when
dealing with complaints and inquiries.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the purposes and importance of credit.
Credit enables businesses or individuals to obtain products or money in exchange for a
promise to pay later. Businesses use credit to buy materials and supplies from other
businesses. Credit makes it possible for millions of people and companies to purchase
goods and services who otherwise would not have the means to do so. By extending
credit, businesses provide a purchasing incentive to customers, thus enhancing their sales
revenue and supporting the overall economy.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the concept of self esteem.
Self esteem is the way you perceive your worth or value as a person. It is an important
interpersonal skill that allows you to believe in yourself and helps you relate positively to
others. You can demonstrate positive self esteem by treating others with respect and
friendliness, dressing appropriately on the job, and behaving in a confident yet courteous
manner.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Identify factors affecting a business’s profit.
Profit is the monetary return a business’ owner receives for taking the risk of investing in
the business. In simple terms, profit equals income less expenses. More specifically,
there are two types of profit: gross profit and net profit. Gross profit is the money left
over after the cost of goods is subtracted from income from sales. Net profit is the money
left over after operating expenses are subtracted from gross profit.
Factors that affect profit include demand for the good/service, expenses, prices, the
economy, and chance. To try to increase profit, a business can increase worker
efficiency, increase sales, and/or decrease expenses.
Source: Profit. (Economics LAP 2: Career-Sustaining Level). (1997). Columbus, OH:
Marketing Education Resource Center.
Explain how to interpret others’ nonverbal cues.
Nonverbal communication refers to communication other than spoken language,
including distance, eye contact, facial expressions, and gestures. Nonverbal cues can
help you determine another’s attitude and personal feelings. The distance you place
between yourself and another can convey messages of attraction, interest, status, or
respect. When you maintain eye contact, you show sincerity, interest, and confidence.
Facial expressions are sometimes conscious and sometimes unconscious. They convey
meaning, emotion, and attitude. Positive gestures, or hand movements, are often open,
natural, and smooth. Negative gestures, such as crossing your arms, are more closed and
rigid.
Source: Ciletti, D. (2004). Marketing Yourself. Mason, OH: South-Western.
Explain the principles of supply and demand.
In a market-oriented economy like in the United States, supply and demand determine the
prices and quantities of goods and services produced. Supply is the amount of goods and
services producers are willing to make and sell. Demand is the willingness and ability of
consumers to buy goods and services. Supply and demand interact in the marketplace
resulting in a state of equilibrium, surplus, or shortage.
The law of supply states that price and quantity supplied move in the same direction (a
direct relationship). Thus, as price increases, the amount of goods and services supplied
increases. Conversely, the law of demand states that as price increases, the amount
desired by consumers will decrease (an inverse relationship). When the amount of a
product/service being supplied equals the amount being demanded, equilibrium exists in
the marketplace at that price. If, however, there is more supply than demand for a
product a surplus exists, potentially leading to lower prices. A shortage exists when
demand exceeds supply, a condition that can lead to rising prices.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the concept of competition.
Competition is the struggle among businesses for customers. As an essential component
of the free enterprise system, competition forces businesses to produce quality goods at
reasonable prices. Competition also encourages businesses to develop new products,
enhance or improve existing products, and expand product selection in order to attract
new customers. Businesses compete in two ways: price and nonprice competition.
Price competition assumes that, with all other considerations being equal, a customer will
buy the lowest-priced product. Nonprice competition is where businesses compete on
factors such as product quality, business location and reputation, customer service, and
payment or financing options available.
A monopoly exists when there is no competition in the market for a particular good or
service. Monopolies are not permitted in a free enterprise system.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Analyze impact of specialization/division of labor on productivity.
Productivity is the measure of worker output over a given period of time. Specialization
and division of labor are important elements to increasing productivity. The theory
behind this is that work can be completed faster and more efficiently when workers
specialize in a certain area of production. An assembly line is an example of
specialization and division of labor.
Automation is the use of machines to do the work of people. It can cut production time,
reduce errors, and simplify procedures, leading to greater overall productivity of the
business.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management.
New York, NY: Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Identify desirable personality traits important to business.
There are many characteristics of successful businesspeople, including persistence,
creativity, responsibility, confidence, and enthusiasm. A businessperson should be
inquisitive, goal-oriented, independent, a risk taker, and action oriented. Essential skills
for running a business include the following: communication, math, problem solving,
technology, decision making, organizing, teamwork, social, and basic business skills.
Source: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business
Management. New York, NY: Glencoe/McGraw-Hill.
Describe options businesses use to obtain marketing-research data.
Businesses may use internal and external resources to collect market research data.
Internal information can include customer records, sales reports, production and
operations reports, and performance information. External information can be provided
from trade associations, business publications and market research companies.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
_____________________________________________________________________
Discuss the nature of sampling plans.
A sample is a smaller group of a group of people a business is interested in
understanding. In order for a sample to reflect the larger group, researchers often use
random sampling for fairness. The larger the sample evaluated, the more accurate the
data will be. The size of a sample is determined by the budget and degree of accuracy
requested by the company.
Source:
Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western CENGAGE
Learning.
Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the impact of the law of diminishing returns.
The change in total product output that results from hiring one more worker is called the
marginal product. Diminishing returns is experienced when the number of workers being
utilized causes output to increase at a decreasing rate. Utilizing too many workers may
actually cause production to decrease.
Source: Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
Explain the use of feedback for personal growth.
The way feedback is given often affects the way you accept it. Destructive criticism
focuses just on the bad things and gives the recipient no help. Conversely, constructive
criticism is designed to be helpful. It is said calmly with a focus on the problem, not the
person, and suggestions for improvements are given. Anyone who is new to a job must
expect criticism.
One can control his/her reaction to feedback. Maintain a positive attitude and try to avoid
getting defensive. People who respond to negative feedback in a positive way generally
impress others. Those who work on correcting their weaknesses tend to move ahead in
their careers. When giving feedback, it is important that your message be clear and easily
understood. Give feedback in a nonthreatening manner, discussing problems with others
one-on-one when possible.
Source: Kelly-Plate, J. & Volz-Patton, R. (1991). Career Skills (2nd ed.). New York, NY:
Glencoe/McGraw-Hill.
Describe the concept of price stability as an economic measure.
Price stability is a factor that can enable economic growth. When prices are stable,
investors and businesses know what to expect in the marketplace and in government.
Businesses can make long-term plans knowing that market conditions will not change
drastically and that the government will not run out of money. Globally, investors are
more likely to put their money into countries with price stability, leaving behind nations
that could use those investments for economic expansion.
Source: Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
Describe data-collection methods.
Market research can be collected using primary and secondary data. Primary data is
collected using the survey method (information is gathered through surveys), observation
method (information is gathered by watching and recording people’s actions) and
experimental method (using controlled conditions to observe the results of changing
variables). Secondary data is collected using internal and external resources including the
Internet, Government source, specialized research companies, and trade organizations.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain characteristics of effective data-collection instruments.
Effective data-collection tools provide accurate data, are measurable and reliable, may be
easily used, use market research budgets effectively, and have a high response rate.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
____________________________________________________________________
Describe types of rating scales.
Rating scales may be created based on the market research problem. Examples include: x
Very satisfied to very dissatisfied
x Excellent to poor x Level of agreement questions using strongly agree to
strongly disagree.
x Numerical
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the nature of stress management.
Stress is a person’s reaction to pressures from the outside world. It can be mental or
physical. Managing stress is important to a healthy lifestyle and effectiveness in the
workplace. Stress can be harmful, causing undue anxiety and suppressing the body’s
immune system.
Three things are essential to help prevent or reduce stress: regular exercise, a balanced
diet, and enough sleep. Researchers emphasize engaging in recreational activities as a
way to manage stress. In times of stress, it is important to make reasonable compromises
and learn to accept those things you cannot change about the world around you.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Discuss the measure of consumer spending as an economic indicator.
Consumer spending is also called consumption, and it includes all spending by
households on durable goods, nondurable goods, and services. Consumer spending is one
variable used to calculate Gross Domestic Product, along with investment, government
spending, and net exports. The amount of money actually available for consumer
spending is called disposable personal income. Consumer spending, then, is one measure
of the overall health of an economy.
Source: Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
Explain the use of diaries.
A market researcher can collect specific information through a research participant diary
that is kept over a period of time. A diary may be open-question or forced choice,
depending on the time allowed for the market research study. Diaries are used most often
to collect data on how people use their time and spend their money. Diaries may allow a
market researcher to understand opinions better and allow follow-up from an interview.
However, the use of diaries can be costly and have a large dropout rate.
Source: Clark, B.; Sobel, J. & Basteri, C. G. (2010) Marketing Dynamics (2nd Edition).
Tinley Park, IL: The Goodheart-Willcox Company, Inc.
_____________________________________________________________________
Describe techniques for processing marketing information.
Marketing information processing is completed using a variety of technology including
databases and spreadsheet programs. Marketers may also utilize customized marketing
information systems to routinely update and analyze data. Data mining is a computer
process that can identify data trends when analyzing a large amount of data.
Source:
Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western CENGAGE
Learning.
Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
How can you show empathy for others?
Empathy is an understanding of another person’s situation or frame of mind. On the job,
you should be open-minded, realizing that many people are under pressure. Treat others
considerately, and call on your own experiences. Before you react to someone, think of
the position the other person is in. You may see things differently, and your reaction may
be more effective. Be aware of how you appear to someone else, trying not to hurt or
offend them. Speak carefully, and think about the way others will feel when they hear
what you have to say. Let other people know you are interested in them, smile, and make
them feel important. Do not assume that certain behaviors and views are universal; many
people in the world have ideas that are very different from yours.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the concept of Gross Domestic Product.
Gross Domestic Product (GDP) is the output of goods and services produced by labor and
property located within a country. GDP is one measure of a nation’s productivity, or the
output of workers in a given period of time. GDP is made up of several elements: private
investment, government spending, personal spending, net exports of goods, and change in
business inventories. Two types of GDP are nominal GDP and real GDP. Nominal GDP
is stated in the price levels in which the GDP was measured; real GDP is the nominal
GDP adjusted for changes in prices.
Calculate GDP as follows: add private business spending, government spending, and
personal spending. Then either add a trade surplus or subtract a trade deficit, and either
add expanding inventories or subtract shrinking inventories. A similar measure to GDP
is Gross National Product. GNP is the total dollar value of goods and services produced
by a nation, including those produced outside of its own territory by its own citizens.
Sources:
Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Discuss the impact of a nation’s unemployment rates.
There are three main impacts of lingering unemployment on an economy: efficiency,
inequality, and discouraged workers. Unemployment is inefficient in that it wastes
human resources. It leads to inequality because those with the least experience tend to
lose their jobs first, which are usually minorities and the young. Lastly, unemployed
people tend to get discouraged about themselves and their abilities, and may give up their
search for work.
Unemployment is an important indicator of the overall strength of an economy. The
higher the unemployment rate, the greater the chances of an economic slowdown.
Likewise, the lower the unemployment rate, the greater the chances of an economic
recovery. When more people are working, more people are spending money and paying
taxes to help the economy grow.
Sources:
Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Describe the economic impact of inflation on business.
Inflation refers to rising prices; it is an indicator of the stability of an economy. A low
level of inflation (between 1 and 5 percent per year) is considered good because it
indicates a stable economy. Higher levels of inflation are harmful to businesses. Rising
prices cause consumers to spend less, slowing the overall economy. Inflation also leads
to higher wages. A high level of inflation may cause wages to increase beyond what
businesses can afford to pay, which can lead to layoffs and downsizing. Interest rates rise
in periods of inflation. Rising interest rates mean that borrowing money becomes more
expensive. Businesses are, thus, less likely to borrow money to expand their operations.
With inflation, the value of a dollar decreases so businesses and individuals cannot buy as
much with the same dollar as they could before.
Inflation can be helpful to individuals and businesses who are borrowers. Those who
borrow at a fixed rate of interest can repay the debt with dollars that are worth less, which
makes their repayments smaller than they would have been without inflation.
Sources:
Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Explain the use of descriptive statistics in marketing decision making.
After data is collected, descriptive statistics can be used to understand the market research
problem. Research may be presented in graphics including tables, charts and graphs
along with a description of what the data represents.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
________________________________________________________________________
Describe the concept of insurance.
An insurance policy is a contract between a business or individual and an insurance
company to cover risks. Business risks include economic risks, natural risks, and human
risks. Insurance companies estimate the probability of loss due to risk and determine a
rate to charge for the policy, called a premium.
Property insurance is one common type of insurance, which covers loss or damage to
buildings and equipment. Property insurance can be purchased to cover full replacement
cost, automatic increase protection, and business interruption. Liability insurance is a
form of insurance that protects against damages for which a business or individual may
be liable, including injury or property damage to others.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Determine the impact of business cycles on business activities.
A business cycle is a series of recurring changes in economic activity. Four phases make
up a business cycle: expansion, recession, trough, and recovery. During expansion, the
economy is flourishing. It is a good time for businesses to start up or expand due to the
increased output of goods and services. Recession is a time of economic slowdown
lasting at least two quarters. Companies reduce their output during a recession, and
consumers have less money to spend on goods and services. A prolonged recession is
called a depression.
A trough is the low point in a business cycle. It marks the beginning of the transition
from recession/depression to recovery when signs of economic growth are near. In the
recovery phase, demand increases and businesses respond by hiring more workers and
supplying more goods.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the nature of marketing research briefs.
A marketing research brief includes the following items:
x Title Page
x List of market research team members x
Data charts
x Introduction that includes an explanation of the market research problem, definitions
and
assumptions x Research Information x Description of research methodology x
Results x Recommendations x Conclusions x Appendix
x Bibliography
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
____________________________________________________________________
Describe the nature of emotional intelligence.
Emotional intelligence is a set of personal skills in the following areas.
x Foster self-understanding to recognize the impact of personal feelings on others.
x Develop personal traits to foster career advancement. x Apply ethics to
demonstrate trustworthiness in working with others. x Exhibit techniques to
manage emotional reactions to people and situations.
x Identify with others’ feelings, needs and concerns to enhance interpersonal
relations.
x Use communication skills to foster open, honest communications. x
Use communication skills to influence others’ point of view.
x Apply problem solving techniques to obtain solutions to issues and questions.
x Manage stressful situations to minimize negative workplace situations.
x Implement teamwork techniques to accomplish goals. x Employ
leadership skills to achieve workplace objectives.
x Manage internal and external business relationships to foster positive interactions.
Source: Ohio Department of Education. (2008). Marketing Career Field Content
Standards Document. Columbus, OH: Author.
Describe factors that affect the business environment.
A number of factors affect the business environment, therefore it is important to research
the industry and understand the surrounding economy. Industry trends and patterns of
change in areas such as sales growth and government regulation should be considered.
Understanding the competition will help you plan a strategy of success. Barriers to entry
in an industry may exist, such as a dominant competitor, economies of scale, and
customer brand loyalty. Other industry factors include threats from substitute products,
supply sources, and technology.
A critical area to analyze is the demographics of your business environment, including
number of companies, annual revenues, and average number of workers employed.
Assessing the competition includes looking at market share and analyzing the position of
your company relative to others in the marketplace.
Source: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business
Management. New York, NY: Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Identify sources of error and bias.
Error and bias in market research can occur when a study tries to predetermine an
outcome. This may also occur if a research participant has to guess, make assumptions or
interpret a market research tool which creates inconsistent data.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the concept of ethical work habits.
Ethics are the basic values and moral principles that guide behavior. Characteristics of
ethical work habits include honesty, respect, and equity. Being honest is more than just
telling the truth. It means maintaining confidentiality and having respect for company
property. Honesty is the basis for a trustworthy business relationship. Another solid base
for business/customer relations is showing respect. This means listening to others with
an open mind and responding with courtesy and tact. Equity means that everyone has
equal rights and opportunities. Because people expect to be treated the way those around
them are treated, it is important to be fair and equitable in dealing with others.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the nature of effective communications.
Communication is the process of exchanging messages between a sender and a receiver.
Effective communicators need to understand channels of communication and media,
effective listening skills, barriers to communication, and non-verbal cues. In addition,
one must be prepared to read for meaning, speak properly, and write effectively.
Channels (or media) are the avenues through which a message can be delivered. The
choice of medium depends on the nature and importance of the message. Effective
listening allows a person to identify the purpose of the speaker, give feedback, and
evaluate the speaker’s message. Communication may be impeded by a number of
barriers, including physical such as distance and position from the speaker, and verbal as
in using vague or unclear language. Lastly, a person’s non-verbal cues—such as his or
her tone of voice, emphasis, and body language—are critical because they often
communicate as much as the speaker’s actual words.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Evaluate questionnaire design.
A market research questionnaire should provide data that is valid and reliable. Questions
should measure what is intended in the market research problem and be clear, properly
written, formatted and conducted. Another major decision in questionnaire development
is to select questions. A questionnaire may have open-ended and/or forced-end
questions. Questions should be selected based on the goal of the market research.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Assess appropriateness of marketing research for the problem/issue.
Market research should be used for a problem/issue that will have direct financial impact
on the business. The decision to use market research is guided by the threat the market
research problem imposes on the business’s operations and profitability and how much
time and money must be spent to understand the issue.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
_____________________________________________________________________
Explain the impact of political relationships within an organization.
A company’s culture affects the way it is organized. A formal culture may include a
strict chain of command, with one person at the top making all decisions. Several levels
of management, or bureaucracy, may follow. Job titles are important as indicators of
power and status within a company in a business with a formal culture. Making changes
and passing down decisions in such an organization can be complicated and time
consuming.
Other companies have an informal culture, where employees are encouraged to make
their own decisions. In such a company, job titles are not as important as creativity and
teamwork.
Source: Brown, B. J. & Clow, J. E. (2006). Introduction to Business. New York, NY:
Glencoe/McGraw-Hill.
Describe the use of technology in human resources management.
Technology is used more and more in the area of recruiting and hiring employees.
Effective sources for locating prospective employees now include Internet career services
and company websites. Many companies ask applicants to fill out an application online
or at a computer terminal at the company’s location. New employee orientation also
makes use of technology for job training and disseminating company policies. Payroll
functions are automated in many companies.
Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.).
Mason, OH: South-Western Cengage Learning.
Explain how to utilize negotiation skills in business.
Negotiation is the process of working with or among the parties in a conflict to find a
resolution, and requires a willingness to work together to achieve a mutually-agreeable
solution. No company will completely avoid conflict in the workplace, so learning and
practicing negotiation skills is important. Six effective techniques for negotiating conflict
are:
1) show respect
2) recognize and define the problem
3) seek a variety of possible solutions
4) collaborate, or work together
5) be reliable
6) preserve your relationship
The two most important negotiation skills are speaking and listening.
Each party must first present the problem from their point of view. Use a non-aggressive
tone and “I statements” to make your point, trying not to cast blame. Active listening on
your part shows you are interested in the other person’s ideas and feelings. Try to
empathize with the person who is speaking. The problem is solved only when both/all
parties reach a common agreement.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the concept of marketing strategies.
Marketing strategies are used to develop a good or service, determine where to make the
product or service available to a customer, how much to charge for the good or service
and how to make customers aware of the good or service. Successful marketing
strategies will ensure the product is available to the consumer in the right place, at the
right time for the right price.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the concept of market and market identification.
A market is a group of consumers who have a common interest, need or want of a given
good or service. This group of consumers also must be able to purchase the product.
Identifying a market is an important activity in marketing as products will not appeal to
everyone. Marketers identify markets’ common interests by classifying consumer’s
demographic, geographic and psychographic information. Examples of this information
include age, income, education, zip code, buying behavior, and leisure activities.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the use of consensus building skills.
A consensus is a decision upon which each member of a group agrees. It is a critical
component of teamwork as well as negotiation. To achieve a consensus, it is helpful to
allow all members to state their opinions. It will often require members of the group to
be flexible and accept a compromise. Allowing team members to be involved in setting
and achieving the team’s goals is important and often results in increased company
loyalty and a stronger team spirit. Consensus building is also beneficial in that it leads to
extra motivation and a sense of ownership among team members.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management.
New York, NY: Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Explain methods for motivating team members.
A variety of methods can be useful for management to motivate team members. Factors
that motivate employees are achievement, recognition, responsibility, advancement,
growth, and the reward from doing the work itself. The use of rewards for good work can
be effective. When giving rewards, identify those workers who are effective and
efficient, and not those who simply get the work done. Also, reward and recognize
longterm employees for their loyalty to the company.
Employees are also motivated by the freedom to be creative. Encouraging them to show
creativity without risk of penalty often yields positive and ingenious results.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management.
New York, NY: Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Explain the nature of marketing plans.
A marketing plan is a detailed file that guides marketing strategy for a period of time.
Elements of a marketing plan include an executive summary, situation analysis,
objectives, marketing strategies, implementation decisions, evaluation measures and
appendices.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the role of situation analysis in the marketing planning process.
Situation analysis helps marketers to understand influences on marketing strategy both
within the business and in the marketplace. Two common tools used in situation analysis
are the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis and an
environmental scan. Both provide a business with an opportunity understand how they
can react effectively to changes in the market.
Source:
Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western CENGAGE
Learning.
_____________________________________________________________________
Describe the nature of income statements.
An income statement is a summary of a business’ income and expenses during a specific
period of time. Often called a profit and loss statement, it is used to calculate revenue,
costs and expenses, and profit/loss.
Income statements have several major parts: total sales, net sales, cost of goods sold,
gross profit, operating expenses, other income/expenses, net profit/loss before taxes, and
net profit/loss after taxes. Some of these figures must be estimated or projected, such as
total sales and business expenses.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the concept of accounting.
Financial information for a business can be recorded, summarized, and reported in a
variety of ways. The way in which information is kept and reported is determined by the
size, type, and complexity of a business. Businesses should also consider the types of
decisions that will be made when designing an accounting system. Types of information
to be gathered include purchases, sales, expenses, and payroll. There are two basic types
of accounting methods: cash and accrual. In the cash accounting method, income and
expenses are recorded at the time the money changes hands. The accrual method of
accounting records transactions at the time they occur even if no money changes hands at
that time.
Accounting records show changes and the current account balance of each asset, liability,
and owners’ equity account. The recording of debit and credit parts of a transaction is
called double-entry accounting. A record summarizing the information relevant to a
single item in the accounting equation is called an account. With every action, at least
two accounts will change. A group of accounts is called a ledger. A form for recording
transactions is called a journal.
Sources:
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th
ed.). Mason, OH: South-Western Cengage Learning.
Nature of Accounting. (Marketing and Business LAP 9: Career-Sustaining Level).
(1996). Columbus, OH: Marketing Education Resource Center.
Explain marketing and its importance in a global economy.
Marketing is the process of planning, pricing, promoting, and distributing ideas, goods,
and services to create exchanges that satisfy customers. The benefits of marketing are
numerous. It provides the means for competition in the marketplace, leading to lower
prices and higher quality goods and services. Marketing generates new and improved
products and adds value (or utility) to existing products. The global marketplace benefits
from marketing because of the need to trade with each other.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the nature of sales forecasts.
A sales forecast makes an effort to predict future sales for an existing product. To
conduct a sales forecast, a marketer must determine the size of the market and analyze
competitor information.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the need for accounting standards.
All accountants follow the same set of rules to prepare financial reports. The Financial
Accounting Standards Board issues rules referred to as generally accepted accounting
principles (GAAP). These principles provide a way to communicate financial
information in a form understood by those interested in the operations and financial
condition of a business. Accounting reports are used by individuals outside the business
as well as inside. Outside the business, investors, lenders, consumers, competitors, and
government may be interested. Workers, union leaders, and management all may have a
need to see and clearly understand a business’ financial situation.
Source: Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting:
Real-World Applications & Connections. New York, NY: Glencoe/McGraw-Hill.
Explain types of investments.
There are several main types of investment vehicles. Common stock is a unit of
ownership of a company that entities the owner to voting privileges. Preferred stock is a
type of stock that gives the owner the advantage of receiving cash dividends before
common stockholders receive them. Stocks are attractive as an investment because
owners share in the success of the company. A corporate bond is a corporation’s written
pledge to repay a specific amount of money, plus interest. Similarly, a government bond
is the written pledge of a government or municipality to repay a specific amount of
money, plus interest. When you buy a bond, you are lending money to a corporation or
government entity for a period of time.
Mutual funds are investments in which investors pool their money to buy stock, bonds,
and/or other securities. The investments are selected by professional managers who work
for an investment company. Their expertise can be beneficial to inexperienced investors.
A final form of investment is to own real estate. The goal of this is to own property that
increases in value so you can sell it at a profit or receive rental income.
Source: Kapoor, J. R., Dlabay, L. R., Hughes, R. J., & Hoyt, W. B. (2007). Business and
Personal Finance. New York, NY: Glencoe/McGraw-Hill.
Discuss the role of ethics in accounting.
The AICPA Code of Professional Conduct outlines a number of rules regarding ethics in
accounting. A company must keep an accurate, honest, and complete record of its
accounting transactions. Company audits should be carried out by an independent party.
Confidentiality must be maintained with regard to clients’ personal information as well as
company information. Efforts must be made to avoid conflicts of interest between
employees and customers. Ethical accountants exercise due care in the performance of
their professional services. They should also be educated about insider trading as an
unethical practice. Accountants must refrain from misrepresenting the facts to achieve
short-term goals that are contrary to a business’ long-term objectives.
Internal auditors work independently within a business to review and improve the
company’s operations. They use strict standards to ensure the business sticks to its
agreements, to design plans to protect assets, and to make the best use of company
resources.
Sources:
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th
ed.). Mason, OH: South-Western Cengage Learning.
Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting:
RealWorld Applications & Connections. New York, NY: Glencoe/McGraw-Hill.
Explain the use of technology in accounting.
Most businesses use some type of accounting software to record and report their business
transactions. Even when using an automated system, you still need to collect and keep
your source documents and each business transaction must be separated into its debit and
credit parts. Computerized posting to accounts is faster and eliminates accounting errors
that a person might make doing it manually. Daily, weekly, monthly, and annual reports
can be generated quickly and accurately. Software is also available for tax collection and
reporting.
Source: Kapoor, J. R., Dlabay, L. R., Hughes, R. J., & Hoyt, W. B. (2007). Business and
Personal Finance. New York, NY: Glencoe/McGraw-Hill.
Describe connections between company actions and results. (e.g., influence buying
behavior, etc.)
Company actions that affect consumers include: advertising, pricing, product mix, supply
of goods, sales and promotions, product development and improvement, product safety,
payment options, etc.
Company actions that affect the competition include: advertising, pricing, product mix,
supply of goods, sales and promotions, distribution methods and locations, etc.
Company actions that affect employees include: the use of technology in production and
record keeping, managerial ethics, human resources management, production planning
and scheduling, risk management, investing, etc.
Other actions to be considered include company actions that affect things like the
environment, the global economy, etc.
Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.).
Mason, OH: South-Western Cengage Learning.
Explain the nature and scope of the pricing function.
The pricing function includes all activities that determine how much to charge for a good
or service. This is an important business activity as it directly impacts the financial
success for the company. The price of a good or service can affect brand image, market
share and profits. The goal of pricing a product is to earn a return on investment (ROI),
gain market share, and face competition.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Describe the role of business ethics in pricing.
Ethical practices as it relates to pricing include understanding price fixing, price
discrimination, and unit pricing. Price fixing happens when competitors agree to sell
their product at a certain price. Price discrimination occurs when different customers in
similar situations are charged different prices. Unit measure lets consumers determine the
unit cost of items. All these situations require a business to make fair decisions for the
consumer and not work with other businesses to take advantage of the market.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain legal considerations for accounting.
The most significant changes to corporate governance and accounting practice came with
the Sarbanes-Oxley Act of 2002. The act requires that CEOs, financial officers,
accountants, and auditors comply with regulations and procedures designed to ensure
accurate representation of companies’ financial positions. It prohibits most loans to
directors and executive officers, and forces company insiders to report changes in
ownership within two days after a transaction has been executed. Securities regulation
ensures that purchasers can learn the true nature of the securities they buy by providing a
way to uncover fraud and unfair practices.
Sources:
Brown, G. W. & Sukys, P. A. (2006). Understanding Business and Personal Law. New
York, NY: Glencoe/McGraw-Hill.
Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting:
RealWorld Applications & Connections. New York, NY: Glencoe/McGraw-Hill.
Describe the nature of cash flow statements.
A cash flow statement is a monthly plan that tracks when you anticipate that cash will
come into a business and when you expect to pay out cash. One purpose of a cash flow
statement is to determine whether you will have enough money to pay your bills on time.
Another purpose is to secure a business loan, as most lenders will request at least a
firstyear cash flow statement.
A cash flow statement itemizes how much cash you started with, what your projected
cash expenditures are, and how and when you plan to receive cash. It also shows when
you will need to seek out additional funds or when you will have additional cash
remaining.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the nature of balance sheets.
A balance sheet is a summary of a business’ assets, liabilities, and owners’ equity. Assets
are anything of monetary value that you own and are classified as current or fixed. A
current asset is cash or anything that can be converted into cash in a year. A fixed asset is
something used over a period of time to operate your business, like property and
equipment.
Liabilities are the amounts that a business owes and are classified as current or long-term.
A current liability is a debt the business must pay back during the upcoming year. A
long-term liability is a debt that is due after 12 months’ time, such as a long-term loan.
Owners’ equity (or net worth) is the amount of ownership interest in the business. The
difference between assets and liabilities equals the owners’ equity.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the use of technology in the pricing function.
Technology allows marketers access to a wealth of information that can affect the price of
a product using both internal data and competitor data in the marketplace. Technology
can provide real-time prices to consumers online or by scanning bar codes in retail stores.
Retailers can also change prices for products using technology effectively.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain legal considerations for pricing.
Pricing decisions are impacted by the Robinson-Patman Act (1936), the Consumer Goods
Pricing Act (1975), Federal Trade Commission guidelines and minimum price laws (these
vary by state). The Robinson-Patman Act regulates businesses ability to change prices on
consumers purchasing similar products in similar situations. The Consumer Goods
Pricing Act controls the pricing relationship between manufacturers and retailers.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the role of ethics in information management.
Businesses that maintain databases of personal customer information have a
responsibility to keep that information private. Many companies that collect information
about their customers often sell that information to others. This exchange of customers’
personal information among businesses has led to invasion of privacy complaints. Many
businesses now also offer clients the choice of being added to mailing lists.
Confidentiality must be maintained with regard to employees’ and clients’ personal
information. Accountants must refrain from misrepresenting the facts to achieve
shortterm goals that are contrary to a business’ long-term objectives.
Sources:
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th
ed.). Mason, OH: South-Western Cengage Learning.
Discuss the role of ethics in finance.
Ethics are guidelines for good behavior, based on knowing the difference between right
and wrong. Behaving ethically means being truthful, fair, open, and mindful of the law.
Companies and their executives can now be held accountable for misinformation or
improper recording of a company’s financial situation. A company must keep an
accurate, honest, and complete record of its accounting transactions. Finance
professionals should be educated about insider trading and other unethical practices.
They must refrain from misrepresenting the facts to achieve short-term goals.
Confidentiality must be maintained with regard to clients’ personal information as well as
company information. Efforts must also be made to avoid conflicts of interest between
employees and customers.
Sources: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th
ed.). Mason, OH: South-Western Cengage Learning.
Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting:
RealWorld Applications & Connections. New York, NY: Glencoe/McGraw-Hill.
Explain legal considerations for finance.
The federal government regulates interstate commerce through the commerce clause of
the U.S. Constitution. Securities regulation, especially the Securities Act of 1933 and the
Securities Exchange Act of 1934, have been enacted to protect investors. These laws
ensure that purchasers can learn the true nature of the securities they buy and provide a
way to discover fraud and unfair practices. Included in the definition of securities are
corporate stocks, interests in savings and loans, interests in racehorses or sports teams,
and sales of coins. The Securities and Exchange Commission administers the laws
regulating securities sales, brokers, dealers, and bankers who sell securities.
The Federal Trade Commission was created in 1914 to protect businesses from the
wrongful acts of other firms, especially referring to competitive practices. The Sherman
Antitrust Act of 1890 was passed to stop the formation of monopolies. The
SarbanesOxley Act of 2002 contains important rules affecting the reporting and corporate
governance of public companies and their officers.
Source: Brown, G. W. & Sukys, P. A. (2006). Understanding Business and Personal Law.
New York, NY: Glencoe/McGraw-Hill.
Explain factors affecting pricing decisions.
There are four market factors that affect pricing decisions: costs and expenses, supply and
demand, consumer perceptions, and competition. When costs to produce a good or
service change, so can the price of that product. The economic conditions in a
marketplace can also affect price; if demand for a product is high then a retailer has a
choice to increase price. Consumer perceptions of the business and product can affect
how much a customer is willing to pay for a good or service. Competition influences
pricing decisions depending on how price conscious consumers are regarding the product.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the nature and scope of the product/service management function.
The product/service management function relates to all decision affecting the product mix
of a business including developing, maintaining, and improving the product mix.
Commonly referred to as product planning, this is a constant activity of a business to
ensure that they are providing a good or service that meets the needs and wants of a
consumer.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Describe the nature of budgets.
A budget is a formal, written statement of expected revenue and expenses for a future
period of time. To be effective, a budget should be evaluated periodically with actual
income and expenses. Revenues may include cash sales, collections on accounts
receivable, and other income. Expenses include purchases, insurance, taxes, payroll, and
many other things.
As part of budgeting, one should follow the following steps. Set goals and prioritize
them. Estimate your income. Budget for unexpected events, fixed expenses, and for
variable expenses. Record what you spend. Review your spending patterns and revise
your goals as needed.
Source: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business
Management. New York, NY: Glencoe/McGraw-Hill.
Explain the role of ethics in human resources management.
An ethics policy for employees may discuss working hours, wages and benefits.
incentives, flexibility, safety and health issues, and termination procedures. Ethical
operations will maintain fairness and safety for all employees and customers, be open and
up-front about their policies, and handle problems promptly and equitably. Train your
employees in safety and emergency procedures, then reinforce the training with signage
in the workspace. Ethical behavior must be maintained in employee evaluation, as well
as when giving consideration for promotions, transfers, and bonuses.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management.
New York, NY: Glencoe/McGraw-Hill.
Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason,
OH: South-Western Cengage Learning.
Identify the impact of product life cycles on marketing decisions.
The product life cycle affects various marketing decisions as it relates to the product mix
of a business. When a product is in the introduction phase, a company must create
awareness through promotion. When a product is in the growth stage, a company may
need to focus on customer service and adapting the product to the needs of the consumer.
When a product is in the maturity stage, a company may need to monitor competition
more frequently. When a product is in the decline stage, a company has to make product
decisions that affect its continued viability.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Describe the use of technology in the product/service management function.
Technology has a direct impact on the product/service management function.
Technology can create opportunities for new products, make production of products more
efficient, make products easier to use, and make products obsolete.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
____________________________________________________________________
Identify methods for evaluating vendor performance.
The criteria for selecting and evaluating vendors include production capabilities, past
experience, product quality, the availability of special buying arrangements or services,
and pricing. When dealing with a vendor for the first time, buyers might solicit references
to determine the vendor’s reputation. Many businesses maintain resource files and
journals that document past experience with vendors. Such a journal may include an
evaluation of product quality, delivery performance, and customer service. Returns
relating to the quality of products may cause a vendor to be dropped.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Evaluate quality and source of information.
To evaluate source data, consider the following: Is the subject matter consistent with the
defined problem or issue? Do the data apply to the population and/or time period of
interest? Do the data appear in the correct units of measurement? Do the data cover the
subject in adequate detail? Is the data accurate and timely? Can the accuracy of the data
be verified? Is/are the data source(s) reputable? Is the cost of data acquisition worth it?
Is there a possibility of bias?
Source: Zikmund, W. G. (1991). Exploring Marketing Research. (4th ed.) Orlando, FL:
The Dryden Press.
Explain legal issues associated with information management.
The government has regulations regarding protecting the privacy of consumers.
Businesses of all types offer detailed privacy policies to their customers that ensure the
protection of their customers’ personal information. Businesses must not share personal
information they collect with anyone unless you give them permission to do so, according
to law.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Describe the nature of business records.
Technology has made it easier and more efficient to maintain business records through
management information systems (MIS). The functions of an MIS are to gather, analyze,
store, and report on data. Records are kept regarding financial information, production
and inventory, marketing and sales, and human resources. Data sources may be external,
such as from financial institutions or government agencies; or they may be internal,
including data from accounting, inventory, and sales figures. Business record keeping
requires one to: identify the information needs of the organization, obtain the data,
process and analyze the data, organize the data in a useful manner, distribute information
to those who need it to make decisions, and update the data and records as needed.
Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.).
Mason, OH: South-Western Cengage Learning.
Explain business ethics in product/service management.
Business ethics that relate to product/service management relate to making customers
aware of product information that can affect safety and health when the product is used.
This can include product recalls, allergy information and labeling, and clear instructions
on how to use the good or service.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
How can one identify product opportunities?
New product opportunities can come from a variety of sources including consumers,
competitors, manufacturers, wholesalers, and internal research and development teams.
The use of creativity is an inherent part of this process. Ideas can be generated during the
market research process through both customers and competitive analysis. Internal teams
may be put together to evaluate new product decisions including all departments of the
business.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
What are some methods/techniques to generate a product idea?
Ideas can be generated during the market research process through both customers and
competitive analysis. Internal teams may be put together to evaluate new product
decisions including all departments of the business.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
How can someone generate product ideas?
Tools used to generate product ideas can include brainstorming, creative thinking
processes and problem solving sessions. A company can generate product ideas by
conducting consumer and sales force focus groups.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
_____________________________________________________________________
Explain how to maintain customer records.
Data about customers and their buying habits is kept in a computer program called a
database. Data can be about customers’ contact or other personal information, or it can
be about their purchase/account history. This data can be developed from face-to-face
sales, direct mail responses, phone or e-mail purchases, service requests, website visits,
customer comment cards, or they can be purchased from a third party. Database
programs act like filing cabinets that allow you to sort, find, choose, and organize
information.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Describe current business trends.
Assessing current business trends is important to both business and professional growth.
Business owners and entrepreneurs should keep up-to-date through a variety of means.
Classes are offered at vocational/technical schools, two- and four-year colleges, and
online. Joining a professional association or club is an excellent way to stay current with
trends and knowledge relevant to an industry. Another way to stay up-to-date is by
reading journals, professional trade publications, news sources, websites, and blogs.
Attend professional conferences, meetings, seminars, and speakers. These activities also
provide the opportunity for networking, wherein you can learn from colleagues by
sharing insight and experience.
Source: Bailey, L. J. (2003). Working: Career Success for the 21st Century (3rd ed.).
Mason, OH: South-Western.
Describe how to monitor internal records for business information.
The functions of an information system are to gather, analyze, store, and report on data.
Records are kept regarding financial information, production and inventory, marketing
and sales, and human resources. Internal data includes accounting records, inventory
information, company sales figures, and more.
A company’s balance sheet, cash flow statement, and income statement are records that
are monitored during a specific period of time. They are used to calculate revenue,
evaluate costs and expenses, and measure profit/loss.
Sources:
Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason,
OH: South-Western Cengage Learning.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Explain how to conduct an environmental scan to obtain business information.
An environmental scan is an analysis of outside influences that may have an impact on an
organization. It is a methodical look at the world that includes political, economic,
sociocultural, and technological areas. It is important to understand how each of these
areas may be changing in order to determine the potential for opportunity or threat to a
business.
Political factors include the stability of a government and its laws and regulations that
affect business. Economic factors include infrastructure, quality and cost of labor,
employee wages and benefits, taxes, the standard of living, and possibly foreign exchange
rates. In international business, socio-cultural factors include understanding another
country’s language, values, traditions, and social/business etiquette. Keeping up to date
with technology and using it properly are other factors of an environmental scan.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Describe how to interpret statistical findings.
Statistics are used to describe and summarize data in order to make the date more
meaningful and easier to understand. Commonly used statistics in business include
distribution, central tendency, and dispersion.
Distribution is a summary of the frequency of values for a variable. The central tendency
is an estimate of the center of a distribution of values, including mean, median, and mode.
Dispersion is the spread of values around the central tendency, measured with the range.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the role of information systems.
An information system is a set of procedures and methods that generate, store, analyze,
and distribute information for use in making business decisions. Such systems organize,
collect, and store data for current use or future decisions. Most information systems rely
on data about current customers, sales reports, and inventory levels. Businesses use this
information to make decisions about advertising, product planning, and pricing.
Information can be secured through the use of primary data, including company records
or government data, or secondary data, such as customer surveys.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting:
RealWorld Applications & Connections. New York, NY: Glencoe/McGraw-Hill.
Describe health and safety regulations in business.
Businesses must adhere to health and safety regulations established by the U.S.
Department of Labor. Workplace safety regulations are enforced by the Occupational
Safety and Health Administration (OSHA) through inspections and fines. Employers
must maintain health and safety records and provide safety training. They must stay
upto-date on OSHA standards and resolve violations promptly.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management.
New York, NY: Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Explain warranties and guarantees.
Warranties are a promise to the consumer that a good or service will meet certain
expectations that relate to materials, quality and performance. An express warranty is in
writing or communicated verbally to convince the buyer to purchase a product. A full
warranty guarantees that if a product is found defective it will be repaired or replaced
with no charge to the customer. Limited warranties may exclude certain parts of a
product from the warranty. Implied warranties are those that protect consumers based on
state laws.
Guarantees are used in promotional strategies including money-back guarantee, results
guaranteed, guaranteed for time of use, or satisfaction guaranteed.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill, Page 674
_____________________________________________________________________
Identify consumer protection provisions of appropriate agencies.
Consumers are protected by both federal and state provisions. The Federal Trade
Commission enforces the Magnuson-Moss Consumer Product Warranty Act that sets
minimum standards for warranties. The Consumer Product Safety Commission monitors
product safety by issuing standards for constructions, testing, packaging and
performance. The Food and Drug Administration enforces the Food, Drug and
Cosmetics Act which sets standards for pure, wholesome and effective products in these
categories. States have various forms of lemon laws and Better Business Bureaus to
protect consumers.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the concept of product mix.
Product mix includes all of the goods and services that are produced and sold by a
business. The type and number of products a business sells should meet the businesses
objectives, image and market. Within a product mix a business will have product lines
and product items. Product width describes the number of product lines a business has
and product depth describes how many items are offered in each product line.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain procedures for handling accidents.
Always survey an accident scene before you do anything. Do not make any assumptions.
Figure out what has already happened, and determine what may happen next. If someone
is injured, administer first aid and get help if needed. Do not move a victim who may
have a back or neck injury. Clear the victim’s airway and check to see if he/she is
breathing. Check for a pulse or severe bleeding.
In the event of a fire, leave the building immediately using the stairs or a window. If you
cannot leave, stay close to the floor to avoid smoke. Before opening a door, put your
hand on it to feel if it is hot. If your clothes catch fire, stop, drop to the floor, and roll to
put the fire out. Do not try to put out the flames yourself.
During an earthquake, stay inside and move to a doorway or under a table. If you are
outside, stand out in the open away from things that may fall. If a tornado threatens, go
indoors and stay away from windows. Cover yourself with a mattress or blanket. If you
are outside and cannot get inside, dive into a ditch or other low ground area and stay
down.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th
ed.). New York, NY: Glencoe/McGraw Hill.
Explain the nature and scope of purchasing.
A person who purchases goods for business purposes is called an organizational buyer.
The types of purchasing situations include: new task purchase, in which a purchase is
made for the first time; modified rebuy, where the buyer has had experience buying the
good or service but some aspect of the purchase has changed; and straight rebuy, when a
buyer routinely orders the goods or services from the same vendor(s) as in the past.
Suppliers should be selected using the following criteria: production capabilities, past
experiences, special buying arrangements, and special services. Purchasing also involves
the skill of negotiation. Items to be negotiated include prices, dating terms, delivery
arrangements, and discounts.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain the need for ongoing education as a worker.
The average American has at least seven jobs before he/she reaches age thirty. People
can expect to change employers several more times before they retire. While some
people end up losing their jobs due to downsizing, everyone is affected by it. If managers
are cut, individual workers may acquire more responsibilities. The skills you will need to
manage new responsibilities may require more education. You may need to update your
skills or learn new ones to keep pace with employment trends, as job opportunities shift
from one industry to another. The competitive global market puts added demands on
workers, as businesses try to stay up-to-date with technology and ways of doing business.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th
ed.). New York, NY: Glencoe/McGraw Hill.
Explain the concept of production.
Production is the process of creating, expanding, manufacturing, or improving on goods
and services. It is a function of business found in all industries and service-related
operations. There are three main forms of production: extraction and cultivation,
processing, and manufacturing. The three categories of products used by businesses and
consumers are natural resources, agricultural products, and processed goods. Four types
of businesses that are responsible for production are producers, extractors, farmers, and
manufacturers.
Company leaders focus on efficient production and consider the many situations that may
affect it. Companies that want to be industry leaders strive to produce the most
innovative products as efficiently as possible.
Sources:
Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason,
OH: South-Western Cengage Learning.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Discuss the role of ethics in operations.
Ethical considerations include those that deal with employees and those that deal with
customers. An ethics policy for employees may discuss working hours, overtime pay,
flexibility, safety, and health issues. Regarding customers, operational ethics deals with
product and consumer safety, credit concerns, delivery policies, hours of operation,
customer service policies, and return policies. Ethical operations will maintain fairness
and safety for all employees and customers, be open and up-front about their policies, and
handle problems promptly and equitably.
Source: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business
Management. New York, NY: Glencoe/McGraw-Hill.
Describe the nature of product bundling.
Marketers may use product bundling to package two or more complementary goods and
services, usually for a lower price than had the products been purchased separately. For
example, if customer goes to the spa for a manicure and pedicure the price may be lower
than if that customer purchased a manicure and pedicure separately.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Describe factors used by marketers to position products/services.
Factors used by marketers to position a product or service include price, quality, features,
benefits, competition and relation to another product. Positioning based on price and
quality demonstrates a connection between a high price and high quality and a low price
as an example of value. Positioning based on features and benefits focuses on the
customer benefit that is valued. Positioning based on competition is based on creating an
advantage over the other business. Positioning based on another product allows a
consumer to distinguish between goods and services.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the nature of product/service branding.
Branding of a product or service is focused on creating a consumer identification using a
name, term, design, symbol or combination of those factors. The use of a brand name or
mark allows a consumer to recognize a product easily. There are several types of brands
including national, private distributor, and generic. National brands are owned by
national manufacturers, such as Hershey. Private distributor brands are also known as
“store brands”. Generic brands do not have any company’s identity on the packaging.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the nature of corporate branding.
Trade names or corporate branding are used to identify and promote an entire company or
department in a business. A trade name is the legal name of the business and is used to
promote its various activities as an organization.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Describe factors used by businesses to position corporate brands.
Factors used to position corporate brands include price, quality, features and benefits and
relationship to the competition.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the role of promotion as a marketing function.
Promotion as a marketing function includes all the activities to inform, persuade, and/or
remind consumers about products and services. Promotion is persuasive communication
that prompts a target market to take action.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the types of promotion.
The types of promotion are personal selling, advertising, public relations, and sales
promotion. Personal selling is direct contact between a salesperson and customer.
Advertising is a form of nonpersonal promotion. Public relations is the development of a
favorable image for a company, its products or its policies. Sales promotion includes
activities that are used to create purchases and sales not related to the other types of
promotion.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
____________________________________________________________________
Identify the elements of the promotional mix.
The elements of the promotion mix are personal selling, advertising, public relations, and
sales promotion. Personal selling is direct contact between a salesperson and customer.
Advertising is a form of nonpersonal promotion. Public relations is the development of a
favorable image for a company, its products or its policies. Sales promotion includes
activities that are used to create purchases and sales not related to the other types of
promotion.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Describe the use of business ethics in promotion.
Marketers have a responsibility for ethical behavior in promotion as it relates to
advertising and sales. Marketers should avoid false or misleading advertising for
products and services as well as pressure or misleading sales tactics and promotions.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
_____________________________________________________________________
Describe the use of technology in the promotion function.
The use of technology in promotion changes constantly. Technology creates new
platforms for distributing information to consumers. Recently we have seen online sales,
new media outlets including the Internet develop, creation of social media, and delivery
of sales promotions via cell phones.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Describe the regulation of promotion.
The Federal Trade Commission is the main regulator of promotional practices overseeing
issues related to advertising and endorsements. Trade associations and consumers also
play a role in regulating promotion strategies. The primary topics that are discussed are
deceptive advertising practices including advertising to children, privacy, contests, false
testimonials, bait and switch advertising, free offers, and misleading demonstrations.
Source: Promotion and Integrated Communications by Richard J. Semeniak
www.swlearning.com/marketing/semenik/first_edition/.../ch06.ppt
______________________________________________________________
Explain types of advertising media.
Types of advertising media include print, broadcast, online, specialty and social. Print
media include newspaper, magazine, direct mail, directory, outdoor, and transit.
Broadcast media include television and radio advertising. Online advertising are all
forms of that use the Internet or e-mail including banner and pop-up ads. Specialty media
are items used for distribution with the company’s branding message. Social media
includes platforms including Facebook, Twitter, and mobile media applications.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Describe word-of-mouth channels used to communicate with targeted audiences.
Word-of-mouth channels allow consumers to promote a product or service. Channels of
communication for this method include after-sale follow-up, recognition of purchase in
media, incentive programs, buzz marketing, providing samples, and interactive
promotions such as e-mails, entertainment, Youtube videos, and social media
interactions.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
_____________________________________________________________________
Explain the nature of direct marketing channels.
Direct marketing channels include those methods targeting a specific group of consumers.
This usually means delivering a message via direct mail to a home or business or by email. Direct marketing channels are guided by the CAN-SPAM Act of 2003 which
requires marketers to provide opt-out options and creates standards for delivering
electronic promotion information.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Identify communication channels used in sales promotion.
Sales promotion channels are divided in to trade and consumer promotion categories.
Trade promotions include promotional allowances, cooperative advertising, slotting
allowances, sales force promotions and trade shows and conventions.
Consumer promotions include coupons, premiums, deals, incentives, product
samples, sponsorship, product placement, promotional tie-ins, loyalty programs and
point-of-purchase displays,
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain communication channels used in public-relations activities.
Public relations can use a variety of tools to develop media coverage. A main tool is a
press release that is sent to appropriate media for the company and/or product. Other
channels of communication include press kits and press conferences.
Source:
Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Clark, B.; Sobel, J. & Basteri, C. G. (2010) Marketing Dynamics (2nd Edition). Tinley
Park, IL: The Goodheart-Willcox Company, Inc.
Explain the components of advertisements.
The elements of an advertisement are the headline, copy, illustrations, signature and
slogan. The headline is a sentence that gets a consumers attention. The copy explains the
product or service. The illustrations use graphic elements to demonstrate the product or
service. The illustrations may also grab the consumer’s attention to the advertisement.
The signature is an identification symbol of the business. The slogan is a quick message
about the product or company.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the importance of coordinating elements in advertisements.
Each element of an advertisement needs to work together as a cohesive message for a
product, service or business. Before placement, marketers check to ensure that the ad
stands out on a page, the layout is clean, the text is easy to read and understand, the
signature can be distinguished and that the message relates to the target market.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Identify types of public-relations activities.
Types of public relations activities include sponsoring product, sports, cultural or
charitable events, awarding scholarships, and donations. Another aspect of public
relations is creating news releases, an announcement that a company sends to the news
media.
Source:
Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Clark, B.; Sobel, J. & Basteri, C. G. (2010) Marketing Dynamics (2nd Edition). Tinley
Park, IL: The Goodheart-Willcox Company, Inc.
_____________________________________________________________________
Discuss internal and external audiences for public-relations activities.
Public relations activities are designed to influence the perceptions of a specific group of
people. For example, an internal audience is a company’s employees. A business may
choose to create a public relations campaign to change attitudes or create awareness of
policies for employees. For example, an external audience is a market of consumers who
live near a new sports stadium. A business may choose to create a public relations
campaign to increase awareness for game day traffic.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain how businesses can use trade-show/exposition participation to communicate
with targeted audiences.
A trade show is an exhibit of products of interest to a specific industry. By participating
in a trade show, a business can target a specific target market who has self-selected their
interest in the industry. When you participate in a trade show you have the ability to have
direct interaction with consumers, demonstrate your product and gather contact
information.
Source: Clark, B.; Sobel, J. & Basteri, C. G. (2010) Marketing Dynamics (2nd Edition).
Tinley Park, IL: The Goodheart-Willcox Company, Inc.
_____________________________________________________________________
Explain considerations used to evaluate whether to participate in trade
show/expositions.
A tradeshow may be a cost effective form of promotion and market research. It is
important to evaluate previous attendee lists, size of the show and other vendors to
determine whether participation is a wise budget choice.
Source: http://www.exportnh.org/faq.aspx#3
_____________________________________________________________________
Explain the nature of a promotional plan.
A promotional plan is a description of the promotional mix decisions for a business. The
promotional plan includes relevant market information, details about the target market,
identifies promotional objectives and budget and defines the mix of promotional tools.
The promotional plan has a common theme and takes a purposeful planning approach.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
_____________________________________________________________________
Give an example of coordinating activities in the promotional mix.
Each type of promotion serves a specific purpose and marketers need to consider the
objectives of the product or service to determine how the mix should be used effectively.
For example, if a soda company was coordinating the promotional mix, they may decide
to use broadcast media (advertising), sponsor a sporting event (public relations) and give
away product samples and coupons (sales promotion). Personal selling would not be a
part of the promotional mix since soda is a low cost product.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
_____________________________________________________________________
Explain the nature and scope of the selling function.
The selling function provides consumers with the products or services that they want or
need. This includes all members of the distribution channel. The selling process is a
personalized communication and influences the purchase of a product or service and
future sales.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the role of customer service as a component of selling relationships.
Customer relationship management (CRM) is an important part of selling relationships.
Companies use CRM as a method to develop customers and their loyalty and maintain
those relationships. Actions taken through the customer service process will impact future
sales as well.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain key factors in building a clientele.
Factors involved with building a clientele include knowing who makes purchase
decisions, industry trends, and customer referrals. When developing a group of
prospective clients, a sales representative needs to know who will ultimately make a
decision so that the right customer is targeted with information. Industry trends can
affect whether purchases are able to be made. Customer referrals can significantly impact
a business’s ability to grow the market.
Source:
Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western CENGAGE
Learning.
Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland
Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain company selling policies.
Company selling policies guide the rules for training, compensation, legal and ethical
issues and sales quotas. Company policies for training ensure that sales representatives
know the product or service they are selling and present those in a way reflective of the
business. Compensation and sales quotas of a company are communicated through
various policies to ensure clear expectations for the sales force. Company sales policies
also instruct sales representatives on how to conduct legal contracts and ethical sales
practices.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain business ethics in selling.
Ethics in selling are related to sales representatives not engaging in high-pressure tactics
in order to get a sale. The sales force also needs to use ethical boundaries to deliver
correct information about deliveries, what products can safely do and promotion rules.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Describe the use of technology in the selling function.
Information is a necessary tool for a sales person and technology now makes this
available at all times. Technology also reduces the amount of time a sales representative
uses for research and makes them a more effective resource for business. Examples of
technology used in sales include Bluetooth technology, laptops, PDA’s, CRM software,
e-mail, text messages, social media, etc.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
_____________________________________________________________________
Describe the nature of selling regulations.
Selling regulations are growing in local and state governments. Regulations can include
guidelines related to sales tax, where products may be sold and how promotions can be
communicated.
_____________________________________________________________________
What are some ways to acquire product information for use in selling?
Product information can be found through four channels: direct experience, written
publications, other people, and formal training. In addition, product demonstrations or
product manufacturing can help a salesperson acquire product information. Printed
materials can include user guides, warranties, catalogs and labels. Formal training is
considered the method for information gathering about a product.
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Discuss why it is important to analyze product information to identify product
features and benefits.
Product information provides detailed information that allows a sales representative to
understand how a product will benefit a customer through a feature. A feature is a
physical attribute of the product. Benefits are the advantages or satisfaction a customer
receives from the product. Knowledge of product information allows a salesperson to
match the appropriate product to fill a customer’s needs. For example, a t-shirt may be
made of brushed cotton (feature) which means it will be extra soft to the touch (benefit).
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Explain the selling process.
The selling process includes the following steps:
Approaching the customer
Determining the customer’s needs
Presenting the product to the customer
Overcoming customer objections
Closing the sale
Suggestion selling
Relationship building
Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
_____________________________________________________________________
Discuss motivational theories that impact buying behavior.
Abraham Maslow’s Hierarchy of Needs assists marketers to understand how consumers
make decisions about their wants and needs. The Hierarchy of Needs identifies five areas
of needs including physiological, security, social, esteem and self-actualization. It is
important for marketers to understand what level of needs a customer is trying to meet so
they can deliver the appropriate product.
Source: Burrow, J. L. (2009) Marketing (3rd Edition) Mason, OH: South-Western
CENGAGE Learning.
_____________________________________________________________________
Assess personal interests and skills needed for success in business.
Skills needed for success in business include: verbal communication skills, written
communication skills,bdiversity/cultural awareness, interpersonal communication and
ability to work on a team, leadership ability, critical thinking skills, technical skills, and
business knowledge
Source: http://www.class.umn.edu/business_and_cla_degrees/business_skills.html
____________________________________________________________________