London Central DECA Team



ADC1.John, Robert, and Charles were college friends who wanted to start a public relations business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is aA.merger. B. partnership.C.franchise.D.corporation. 2.An advertising agency might ask a client to sign an exclusivity contract because it ensures that the agency will haveA.the right to obtain royalties from the client's copyrighted or trademarked materials. B.sole rights to perform specific activities on the client's behalf for a certain period of time. C.the right to sue the client if the client does not follow governmental regulations. D.unlimited liability in the event that the client declares bankruptcy after signing the contract. 3.As a specialty advertising product moves from producer to consumer, it takes a channel of distribution. This is the __________ the product takes.A.mode of transportation C.waterwayB.time D.route 4.What is one of the advantages to specialty advertising businesses of using electronic data processing and computerized inventory systems in the distribution function?A.Reduces turnover C.Increases overheadB.Saves time D.Increases average stock on hand 5.As a result of effectively coordinating distribution with other marketing activities such as promotion, a business is often able to provideA.attractive product displays. C.free delivery. B.good customer service. D.flexible credit terms. 6.After evaluating channel members and identifying problems, why do most graphic design businesses try to work with channel members to improve their performance?A.Less costly to maintain a relationship than to locate new channel members B.More effective to use traditional transportation systems C.Makes it possible to reduce inventory levels D.Reduces the amount of time it takes to negotiate purchasing terms 7.To contribute in a useful way, you avoidA.talking about what's on your mind. C.blurting out statements without thinking. B.letting others know if you're stating D.paying attention when others are speaking. a fact or opinion. 8.In order for an unsolicited sales letter to be effective, the first sentence should be designed toA.include a positive testimonial. C.gain the reader's attention. B.provide supporting information. D.give the reader technical data. 9.A request made by an advertising agency employee to a supervisor is an example of what type of communication?A.Horizontal B. DownwardC.GrapevineD.Upward 10.Chris is a supervisor who finds that her graphic design staff often do not understand her instructions. Chris can improve the situation byA.asking a staff member to give all instructionsC. making the instructions longer and more complexB.planning what she will say beforehandD. constantly checking to see that instructions are followed11.Why is it important for Internet businesses to write promotional content for their web-site home pages that is interesting as well as concise?A.Message is complex. C.Design is simple.B.Access is restricted. D.Space is limited.12.What type of customer may be haughty or overbearing to an employee of a quick-print shop?A.Slow/Methodical C.DishonestB.Domineering/SuperiorD.Suspicious 13.What should you do to be prepared to answer customer questions?A.Make eye contact when talking with customers.B.Find out what you need to know to do your job well.C.Give customers a chance to express themselves fully.D.Use facial expressions to indicate interest in customers.14.Which economic resources enable specialty advertising businesses to operate?A.Inputs B. RevenuesC.SalesD.Outputs 15.Which of the following levels of governmental purchases are included in the calculation of GDP:A.State and local C.Federal, state, and localB.Federal and state D.Federal 16.Which of the following types of economic systems is used in the United States:A.Market B. mandD.Traditional17.Risks that may result in a loss, no change, or a gain areA.insurable. B. uninsurableC.avoidable.D.unimportant.18.Research and development programs can increase productivity byA.trying to prevent conflicts between employees.C. discovering better methods of production.B.offering workers the option of flextime.D. offering "perks" to improve the work-life quality.19.Which of the following is a factor that measures the condition of a country's economy:A.Price stability B. Fiscal policyC.Profit margin D.Financial cycle 20.Jeremy is resisting some new circumstances. What can he do to increase his adaptability?A.Lower his expectations C.Examine his attitude B.Increase his level of fear D.Ignore the situation 21.How important are human relations skills in the business world?A.Not essential B. Very importantC.Not beneficialD.Somewhat important22.Leaders who share a belief in justice, a desire to do the right thing, and an awareness of the rights of other people can be said to haveA.integrity. B. competence.C.emotional intelligence. D.credibility. 23.When bringing members of a work team together, it is important that each member understand the group's objectives and that theyA.actively participate in team meetings.C.learn to avoid conflict at all times.B.work to create an indecisive environment.D.develop personal friendships with each member.24.Which of the following speculative risks would most likely increase a specialty advertising business's income:A.Receiving a settlement for fire damage C.Buying inexpensive liability insuranceB.Offering health benefits to employees D.Investing in developing a new product 25.Why would a promotional business's stockholders be interested in the business's accounting records?A.To know when to send in their next dividendC.To find out whether the business plans changesB.To find out what benefits employees receiveD.To know whether they have made a good investment26.If a photography studio which normally has gross sales of $15,800 per week forecasts an increase in sales of 8%, forecasted weekly sales would beA.$16,200. B. $15,800.C.$17,064.D. $11,264. 27.What might result if a specialty advertising business's merchandising budget called for purchasing more goods than customers wanted?A.Surplus profit C.Increased costs B.Additional sales D.Expanded market28.Which of the following is the net income for a photography studio with net sales of $92,500, cost of merchandise sold of $48,250, and operating expenses of $31,100:A.$13,150 C.$14,750B.$12,500 D.$15,25029.Which of the following would be a legal question on an employment application:A.Have you ever been arrested? C.Have you ever been convicted?B.Have you ever been indicted? D.Have you ever been prosecuted?30.Why should new advertising agency employees be given an organizational chart?A.Clarifies who is best qualified to answer a new employee's questionsB.Helps employees quickly learn expected standards of behaviorC.Makes workers have positive attitudes about their jobsD.Increases employees' confidence in their abilities to perform the job31.Which of the following is a false statement about instructional objectives for a training and development program:A.They guide selection of course content. C.They consist of two components. B.They help in program evaluation. D.They identify what trainees should know. 32.What do advertising agencies need to develop to effectively assess employee performance?A.Evaluation criteria C.Job descriptions B.Appropriate feedback D.Recognition systems33.What is one way that a specialty advertising business might use marketing information?A.To develop new products C.To calculate statisticsB.To interpret findings D.To identify new vendors 34.The Big Sign Company has questioned customers about their needs for a specific promotional sign the company may decide to produce. What kind of marketing information is this company collecting?A.Economic C.Primary B.Secondary D.Systematic35.Descriptive research is a type of marketing research that is used by public relations agencies when they need toA.obtain specific information related to the agency's situation. B.decide which direction to take in a given situation.C.try several theories to see what solution would work best.D.make predictions of the agency's future sales. 36.One of the ways in which marketing benefits people is by improving munity relations. C.planned economy.B.standard of living.D.family ties. 37.When Ken Ditioner, owner of Shine Shampoo, considers how to package the items he produces, he is making a __________ decision.A.place C.product B.price D.promotion38.A specialty advertising business that includes target marketing in its business activities is trying toA.keep its operating expenses within the budget.B.forecast how much profit the business can make.C.find out whether there is a market for its products.D.determine how many people have heard of the business.39.Which of the following is a psychographic characteristic that advertising agencies often use to identify market segments:A.Number of family members C.Quality of health B.Style of living D.Type of dining habits 40.What does a promotional business try to identify as a result of conducting a situational analysis?A.Goods and services C.Threats and opportunitiesB.Revenues and expenses D.Profits and losses 41.Once a SWOT analysis identifies an internal strength, a media production business can use that strength to take advantage of a(n)A.marketing strategy. C.external opportunity. B.operating procedure. D.promotional technique. 42.Which of the following is a question that should be asked when selecting a sales forecasting method:A.What are the operating expenses of the promotional business? B.What are the promotional business's past sales? C.What changes are occurring in the promotional business? D.What information is available to use?43.Which of the following is an example of an effective marketing objective that a graphic design business might set:A.Increase profits by 6% next year C.Decrease the level of spending B.Hire additional salespeople D.Identify new local vendors 44.In which of the following situations should a specialty advertising business consider its competitors' prices when developing a marketing plan:A.Introducing a new product C.Selecting a new anizing a new division D.Analyzing a new database45.What does a commercial printing business use to compare the actual performance of its marketing efforts in relation to its marketing objectives?A.Standards B. SWOT analysisC.Appraisals D.Classification audit 46.One reason companies may not be placing as many advertisements in newspapers and magazines as they did twenty years ago is becauseA.more consumers are getting information from the Internet.B.print advertising is becoming more and more expensive.C.consumers are not buying as many goods and services.D.advertising messages contain too much technical information.47.Why do advertising agencies often use specialized computer programs to present information to clients?A.To eliminate questions C.To record client feedback B.To create visual appeal D.To provide hard copies 48.Which of the following types of software programs would best be suited for creating a web page:A.Desktop publishing C.DatabaseB.Web-page editor D.Spreadsheet49.One way that advertising agencies maintain the security of data that they send over the Internet to clients is by using a software program that prevents a(n)A.virus from being downloaded. C.attachment from being included. B.document from being forwarded. D.search engine from being used. 50.Not allowing employees to bring personal belongings into the work area helps to prevent A.robbery. B. fraud.C.burglary.D.shoplifting.51.How does marketing-research data help a specialty advertising business's production planning?A.By determining how products will be producedC.By identifying resources needed in productionB.By identifying consumers' needs and wantsD.By setting the timetable to use in production52.To determine if a manufacturing company is maximizing the output of its specialty advertising goods, it should analyze its __________ efforts.A.production B. promotionalC.warehousing D.sales 53.An important benefit of project management is that it allows the manager toA.work with interesting people. C.make all of the decisions. B.have power and authority. D.identify and correct problems. 54.A small public relations agency that often pays costly penalties to the Internal Revenue Service for forgetting to deposit withheld payroll taxes on time might decide to hire an outside payroll-processing company in order toA.prepare estimates. C.explain errors.B.provide excuses. D.control expenses. 55.Which of the following is an important advantage to a promotional business of maintaining the business's building on a regular basis:A.Protection of investment C.Control of sales volume B.Reduction of operating efficiencyD.Reduction of risk management56.Why do goal-setting experts recommend that you share your goal with supportive people?A.To make sure your goal is realistic C.To obtain the approval of othersB.To inspire others to set goalsD.To help you be committed to the goal57.Which of the following advertising agency employees work directly with the client company and the agency creative staff:A.Account executives C.CopywritersB.Art directors D.Illustrators 58.Which of the following is the most desirable outcome for a job seeker who sends a letter of application to an advertising agency:A.A job interview for the applicant C.A telephone call from the agency B.A letter from the agency D.A request for a résumé from the applicant 59.Many businesspeople take advantage of unexpected free time during the work day to handleA.major issues. C.routine items. B.personal matters. D.new problems.60.Which of the following technological tools is commonly used to calculate simple mathematical computations such as unit selling prices:A.Fax machine C.ScannerB.CalculatorD.Palm pilot 61.Which of the following is an internal factor that affects the pricing of a specialty advertising business's goods or services:A.Standard of living ernment regulationB.Production/Operating costsD.Buying power of customers62.Quick-print businesses calculate break-even in dollars so they know theA.total dollar sales needed to reach break-even.B.amount of the business's after-tax earnings.C.total dollar value of the stock on hand.D.amount the business can spend on new purchases. 63.Which of the following is a reason that a specialty advertising business might decide to mark down merchandise:A.To maximize profits C.To sell excess goodsB.To cover rising costs D.To achieve objectives64.Which of the following does effective product/service management help advertising agencies to do:A.To recruit C.To barterB.To prospect D.To compete65.When sales and profits for a promotional product have fallen, the product is in what stage of the product life cycle?A.Introduction C.MaturityB.Growth D.Decline 66.Technological innovations now allow a business to tailor a standard product to meet the specific needs of a particular advertising agency, which is commonly calledA.modified obsolescence. C.interactive transformation. B.reverse standardization. D.mass customization. 67.Which of the following is a source that businesses often consider when generating ideas for promotional display products:A.Design costs C.Customer complaints B.Test results D.Promotional plans 68.A specialty advertising business that sells personalized clock radios provides purchasers with an assurance that any problem with the radios will be repaired or the radios will be replaced if they stop working within a year's time. This promise by the seller is an example of aA.warranty. B. limited warranty.C.guarantee.D.money-back guarantee.69.Which federal agency administers laws against false and misleading advertising, discrimination through prices, and price fixing?A.Federal Communications Commission C.Federal Advertising Administration B.Securities and Exchange Commission D.Federal Trade Commission70.If a graphic design company's follow-up activities indicate that a customer had a positive buying experience, the company is likely to obtainA.sales quotas. C.free advertising. B.unfavorable publicity. D.repeat sales. 71.The first factor that a specialty advertising business should consider when it is deciding if it should sell a product is theA.taxation rate. B. market demand.C.storage space. D.promotional strategy. 72.Web-based specialty advertising businesses take advantage of technology by allowing customers toA.purchase products over the telephone.C.access information online.B.hack into the business's web server.D.return unwanted merchandise to a local store.73.One reason why it may be difficult to evaluate the effectiveness of advertising services is because these services are oftenA.new and creative. petitive.B.legal and ethical. D.expensive. 74.An advertising agency's strengths and competitive advantages are critical in brand development and can often be found in the agency'sA.press releases. B. FAQs on the Internet.C.name and slogan.D.business plan.75.When negotiating a contract, it is important to include details about the advertising project's specifications, billing rates, and payment terms so that each party is aware of the other'sA.requests and personal preferences. C.ideas and risks. B.plans and strategies. D.responsibilities and expectations. 76.One of the main objectives of promotional activities is toA.enhance business image. C.attract customers.B.increase sales. D.increase name recognition.77.The use of samples or cents-off coupons on grocery items is an example ofA.personal selling. B. sales promotion.C.advertising.D.publicity. 78.Which of the following is an example of an ethical issue affecting personal selling practices:A.Using high-pressure selling tactics C.Distributing product coupons B.Explaining notable product features D.Up-selling goods and services 79.Misleading or deceptive advertising is considered to be an unfairA.trade practice. B. business policy.C.sales trend.D.marketing plan.80.Determine the type of error made in the following line of advertising copy that appears on a proof: Prices are good though Saturday.A.Spacing B. PunctuationC.Spelling D.Grammar81.What challenge does a business encounter when it sends promotional e-mail messages?A.Incorrect feedback C.Undeliverable mail B.Irrelevant message content D.Unreasonable lead time82.Determine the cost per thousand (CPM) for the following newspaper advertisement: Total cost of the ad: $600 Circulation of the newspaper: 60,000A.$.10 B. $10.00C.$1.00D.$.01 83.When a business places print advertisements in a magazine that has a specific readership reach, it is basing its buying decisions on the publication'sA.reputation. B. circulation.C.motivation. D.participation.84.The travel section of Sunday newspapers is an effective place for airlines, bus companies, and cruise lines to advertise their services because itA.contains colorful photographs. C.promotes competitive pricing.B.is intended for businesspeople. D.is read by potential customers.85.Which of the following is a technique that businesses can use to get their news releases presented:A.Mention advertising C.Play favoritesB.Meet media deadlinesD.Pressure the editor 86.Which of the following is a guideline to follow in lettering display signs:A.The color of the letters should blend in with the display.B.Block letters should be used to make the sign more readable.C.Lettering should be large enough for customers to read at a distance.D.Lettering should be small so customers have to come close to read the sign.87.Which of the following statements is true regarding the development of a sales promotion plan:A.Because many governments do not regulate promotional activities, event planning is minimal.B.Successful sales promotions often use consistent themes that are coordinated with advertising efforts. C.Conducting sales promotion activities at infrequent intervals usually boosts long-term sales goals.D.For optimal success, sales promotion planning should focus efforts on one media vehicle.88.An important step in promotional planning is determining the promotional mix, which involvesA.selecting the forms of promotion that will be used.B.monitoring the promotions used by competitors.C.deciding whether to use a push or pull strategy.D.identifying the available forms of promotion.89.Businesses often coordinate promotional and selling activities by displaying the products being promoted in a(n) __________ the business.A.area adjacent to C.unused part ofB.special location within D.restricted section of90.Which of the following data about past advertisements would be useful in planning future ads:A.Names of ad personnel involved C.Sales results of past ads B.Time spent preparing past ads D.Results of product concept tests91.If a business plans an advertising budget that is intended to help the business reach specific goals, the business is using the __________ method.petitive parity C.percentage of past salesB.objective and task D.percentage of anticipated sales92.Which of the following is the main goal of buzz marketing:A.To influence emotions C.To encourage buying B.To change attitudes D.To get people talking 93.A business that decides to advertise in the local newspaper, send direct-mail pieces to potential customers, sponsor a contest, and offer rebates is establishing itsA.selling policy. C.promotional mix. munication plan. D.distribution strategy. 94.The investment made by companies in building and promoting goodwill is partially repaid byA.increased selling costs. C.decreased sales volume.B.the loyalty shown by repeat customers.D.the use of effective follow-up techniques.95.A specialty advertising salesperson who meets with a customer in person might bring a laptop computer to the meeting so s/he can place the customer's order and A.write a sales proposal. C.analyze the bill of lading. B.send a promotional message. D.check stock availability. 96.Which of the following is a type of company promotional material that can be used as a source of information for selling:A.Magazine article C.Training manualB.Employee handbook D.Annual report 97.Which of the following is a type of product benefit that a specialty advertising salesperson must explain to a customer:A.Quantitative B. ObviousC.Limited D.Hidden 98.When pitching promotional ideas to a client, an advertising agency's account executive should communicate his/her knowledge about the client's product andA.ask the prospect to hold his/her questions. C.possess excellent presentation skills. B.make sure to present highly-detailed execution plans. D.try to avoid discussing the agency's track record. 99.Setting the overall goals for a public relations agency, guiding the activities of the agency, and keeping the agency moving toward its goals are part of the role ofA.employees. B. managers.C.consultants.D.supervisors. 100.What is the most likely outcome for a media production business that decides it will keep the same marketing strategies, goals, and objectives throughout the life of the business?A.The business will earn substantial profits. C.The business will eventually close its doors.B.The business will be stable and successful.D.The business will be imitated by competitors1.BPartnership. A partnership is a form of business ownership in which the business is owned by two or more persons. Often, the purpose of forming a partnership is to combine the capital, the experience, and the abilities of the partners. A corporation is a form of business ownership owned by stockholders who have purchased stock. A franchise is an agreement between a parent company and a franchisee to distribute goods and services. A merger is the absorption of one company by another.SOURCE:BL:003SOURCE:BA LAP 7—Own It Your Way 2.BSole rights to perform specific activities on the client's behalf for a certain period of time. It is a common practice for an advertising agency and its client to develop a legal contract that outlines the responsibilities of each party when they agree to do business. Exclusivity contracts state that the client promises that it will not take its business to the advertising agency's competitors. The advertising agency may also promise the client that it will not perform business activities for the client's direct competitors. Most contracts are valid for a specific period of time, which allows both parties the option to renew or renegotiate the agreement or end the relationship. Unless specific contract terms state that the agency can obtain royalties from the client's copyrighted material and that the agency can sue the client if it does not follow governmental regulations, a legal exclusivity agreement generally does not ensure the agency these rights. Clients would probably not agree to those terms, anyway. Unlimited liability means that a party assumes responsibility for all debts. An advertising agency would not assume a client's debt if it declares bankruptcy.SOURCE:BL:050SOURCE:. (n.d.). Exclusivity. Retrieved October 26, 2007, from 3.DRoute. Some channels are direct—the product goes directly from the producer to the consumer. Other channels are indirect—the product goes from the producer to intermediaries and then to consumers. Modes of transportation are the various types of physical transportation such as ship, train, and truck. A waterway is a river or other body of water that may be used in transporting goods. The time required for the product to pass through the channel will be determined by the length of the channel and the type of transportation used.SOURCE:CM:003SOURCE:MB LAP 3—Channels of Distribution 4.BSaves time. The advantage of using new technology in the distribution function is that it saves time. The use of computerized inventory systems allows specialty advertising businesses to keep track of exactly how much inventory is in stock at any one time, and the use of electronic data processing allows businesses to place orders electronically, which shortens the order cycles. The new technology allows businesses to communicate instantly, place orders when needed, and receive the goods quickly. This reduces the amount of inventory they need to carry because they can quickly obtain whatever they need. The technology also helps to increase turnover by identifying excess inventory that should be marked down in order to sell. Increased overhead would be a disadvantage to businesses.SOURCE:CM:004SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [p. 442]. Woodland Hills, CA: Glencoe/McGraw-Hill. 5.BGood customer service. Distribution is one of the marketing functions that must work with the other marketing activities to get goods and services from producers to consumers. The goal of marketing is to satisfy consumer wants and needs while achieving company goals. Businesses cannot satisfy those needs and provide quality customer service unless all the marketing activities work together. For example, businesses are only able to serve customers when they have the advertised items on hand and at the right price. Not all businesses need or use product displays, provide free delivery, or offer flexible credit terms.SOURCE:CM:007SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 367). New York: Glencoe/McGraw-Hill. 6.ALess costly to maintain a relationship than to locate new channel members. Graphic design businesses usually try to work with channel members to improve their performance because it is less costly to maintain a relationship than to locate new channel members. During an evaluation, a business might detect certain problems, many of which may be small and easy to correct. Helping a channel member correct problems is usually inexpensive. However, it is time consuming to search for new channel members and to develop new relationships. Also, changing channel members might involve changing other procedures which may be costly to a business. It is not always more effective to use traditional transportation systems. Improving the performance of channel members does not necessarily make it possible to reduce inventory levels, or reduce the amount of time it takes to negotiate purchasing terms. SOURCE:CM:011SOURCE:Kotler, P. (2000). Marketing management (10th ed.) [pp. 501-503]. Upper Saddle River, NJ: Prentice Hall. 7.CBlurting out statements without thinking. To contribute in a useful way, you avoid blurting out statements without thinking. You take a moment to decide what you'll say—and the best way to say it. You do let others know if you're stating a fact or opinion. You do talk about what's on your mind. And, you do pay attention when others are speaking.SOURCE:CO:053SOURCE:QS LAP 29—Put In Your Two Cents 8.CGain the reader's attention. Many companies send unsolicited sales letters to customers in order to generate new business. However, these letters are often scanned quickly and discarded. In order for an unsolicited sales letter to be effective, the first sentence should gain the reader's attention and persuade him/her to continue reading. Businesses use various attention-getting techniques in the first sentence such as making a startling announcement, asking a question, or offering a unique benefit. Once the first sentence has gained the reader's attention, the body of the sales letter provides supporting information such as a positive testimonial or technical data.SOURCE:CO:179SOURCE:Lehman, C.M., & DuFrene, D.D. (1999). Business communication (12th ed.) [pp. 268-277]. Cincinnati: South-9Western College. 9.DUpward. Upward communication is defined as communication that moves up the chain of command, e.g., employee to supervisor. Downward communication moves down the chain from management to employees. Horizontal communication is communication with someone on the same level within the business. Grapevine communication is unofficial messages passed among fellow employees.SOURCE:CO:014SOURCE:Adler, R.B., & Elmhorst, J.M. (1999). Communicating at work: Principles and practices for business and the professions (6th ed.) [pp. 13-16]. Boston: McGraw-Hill College.10.BPlanning what she will say beforehand. Organizing her thoughts first will help Chris to give instructions that are clear and easy to understand rather than long and complex. Turning this responsibility over to a staff member on a regular basis would not be appropriate since giving directions is part of a supervisor's responsibilities. Constantly checking on employees is time consuming and will probably alienate them.SOURCE:CO:139SOURCE:Miculka, J.H. (1999). Speaking for success (pp. 113-114). Cincinnati: South-Western Educational.11.DSpace is limited. The promotional content of a web site has a significant effect on the success of the site. Content that is well written, interesting, and to the point is easier for users to read and understand. Also, it is important for the content to be concise because space on the home page is often limited. For example, a homepage should not go on forever, but contain important information to attract attention and lead users to more specific content on other pages. Furthermore, these pages should provide interesting and relevant information and guide users to more detailed pages if users want more information. Users will lose interest if a home page is unnecessarily long and includes lengthy content. Not all messages are complex; some are very simple and straightforward. Access to most web sites is not restricted unless the site requires registration or membership. The design of a web page may be simple or complex, but the content should be both interesting and concise.SOURCE:CO:180SOURCE:Kleindl, B.A. (2001). Strategic electronic marketing: Managing e-business (p. 64). Cincinnati: South-Western College Publishing.12.BDomineering/Superior. These customers are overly confident and feel that they know more and are better than the average person. They will often behave in an arrogant manner toward employees. Suspicious customers question everything and may want facts and proof before being convinced that something is true. Dishonest customers intentionally attempt to avoid paying for the good or service by deceiving the salesperson. Slow/Methodical customers require a lot of time to make a purchase because of shyness or difficulty in making a choice or buying decision.SOURCE:CR:009SOURCE:EI LAP 1—Making Mad Glad (Handling Difficult Customers)13.BFind out what you need to know to do your job well. You should take the responsibility to gather information you will need to answer customer questions. Facial expression and eye contact are used when interacting with customers. Giving customers a chance to express themselves fully is a key aspect of handling customer complaints.SOURCE:CR:004SOURCE:HR LAP 32—Customer-Service Mindset14.AInputs. Economic resources are items used to produce goods and services. Without resources, or inputs, there would be no outputs, or production. Revenues are income, some of which is usually from sales.SOURCE:EC:003SOURCE:EC LAP 14—Economic Resources15.CFederal, state, and local. In the United States, all three levels are included in the governmental purchases category. For example, federal governmental purchases include those for military defense and the space program; state governments make purchases for highway development and college support; and local governmental purchases include fire and police vehicles and health facilities.SOURCE:EC:017SOURCE:EC LAP 1—Gross Domestic Product16.AMarket. The United States has a market economy in which the means of production and distribution are owned and controlled by individuals and businesses. In a traditional economy, people produce only what they must have in order to exist. A command economy is one in which all or many of the means of production and distribution are owned and controlled by the government. In a socialist, or modified, command economy, government owns the basic means of production, but there is private ownership of businesses as well.SOURCE:EC:007SOURCE:EC LAP 17—Economic Systems17.BUninsurable. These risks are speculative risks that may be the result of such unavoidable factors as changes in customer buying habits, weather conditions, or business conditions. All risks are important to businesses, and most businesses try to protect themselves from pure risks by purchasing insurance.SOURCE:EC:011SOURCE:EC LAP 3—Lose, Win, or Draw (Business Risk)18.CDiscovering better methods of production. In addition, research and development programs can increase productivity by developing new products, discovering effective ways to combine resources, finding new ways to meet customer needs, locating new sources of resources, and determining the best ways to invest the company's profits. The other alternatives are ways that businesses can create a good quality of work life.SOURCE:EC:013SOURCE:EC LAP 18—Productivity19.APrice stability. Price stability means that price levels remain fairly constant. When prices are stable, they do not drastically fluctuate up or down. Price stability is one way to measure the condition of a country's economy. If prices are stable, the economy is also stable. Large upswings or downswings in prices indicate that the economy is not stable. Fiscal policy is the government policy that sets levels of government spending and taxation. Profit margin is a ratio of net profit divided by net sales that reflects the profit per dollar of sales. Financial cycle is not a factor that measures the condition of a country's economy.SOURCE:EC:080SOURCE:McConnell, C.R., & Brue, S.L. (2005). Economics: Principles, problems, and policies (16th ed.) [pp. 8-9]. Boston: McGraw-Hill/Irwin.20.CExamine his attitude. One characteristic of an adaptable person is a positive or “can-do” attitude. A person who resists new situations or circumstances often has a negative attitude. By being aware of personal attitudes and being willing to change them, a person can effectively adapt to new circumstances. A person's expectations can be defined as the anticipated outcome of a specific action. Low expectations do not necessarily make a person adaptable. Fear is a negative effect of low adaptability. Ignoring the situation, or pretending that it doesn't exist, does not generally increase a person's adaptability.SOURCE:EI:006SOURCE:QS LAP 15—Stuff Happens21.BVery important. On the job, you might be required to interact frequently with supervisors, coworkers, and customers. You must be able to deal effectively with all of these people if you are to perform your job well. It is also important to the career success of the individual since more people lose their jobs because they can't get along with others than for any other reason.SOURCE:EI:037SOURCE:EI LAP 5—Can You Relate?22.AIntegrity. People with integrity adhere to an established set of personal ethics and sound moral principles. Leaders tend to share a belief in justice, a desire to do the right thing, and an awareness of the rights of other people. Competence, emotional intelligence, and credibility are other, separate leadership activities. Competence is the ability to do what needs to be done. Emotional intelligence is the ability to recognize and manage emotions in ourselves and in others. Credibility is how much people believe what you say.SOURCE:EI:009SOURCE:QS LAP 27—Follow Me23.AActively participate in team meetings. Although many factors determine the success or failure of a work team, it is important for each group member to understand the overall objective of the group or project. It is also important for all members to participate in team meetings. Active participation often brings new ideas to the group. Participation in group meetings can also improve communication in terms of clarification of ideas, goals, or task responsibility. Groups that operate in an environment that cannot make decisions are often unproductive. Conflict cannot always be avoided in all situations. Members often have different views about situations and should feel free to express those views. Therefore, conflict is not necessarily harmful for the group; it just needs to be managed appropriately. It is important that each team member respect and try to work with one another to accomplish goals. However, it is not necessary to develop personal friendships or social relationships with each team member for the group to be successful.SOURCE:EI:044SOURCE:Hilgert, R.R., & Leonard, E.C. (2001). Supervision: Concepts and practices of management (8th ed.) [p. 511]. Cincinnati: South-Western College Publishing.24.DInvesting in developing a new product. Investing in the development of a new product is a speculative risk because there is a chance of loss, no change, or gain. However, if the new product is the type that customers want and will buy, selling the new product has the potential of increasing a specialty advertising business's income. Businesses take risks when they invest in new products, but they do so because they hope to earn a profit. Offering health benefits to employees is a pure risk because the business can purchase medical insurance. Buying liability insurance is a way that businesses manage pure risks. Businesses usually obtain insurance coverage to protect them from loss due to pure risks such as fire.SOURCE:FI:080SOURCE:Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management: Teacher's manual (2nd ed.) [p. 387]. New York: Glencoe/McGraw-Hill.25.DTo know whether they have made a good investment. Individuals who have invested their money in a promotional business are its stockholders, and they are interested in the profits shown on the firm's accounting reports. This information tells them whether they have made a good investment or should change their investment to another company. Stockholders usually receive dividends from the business. Accounting reports do not show planned changes or employee benefits.SOURCE:FI:085SOURCE:FI LAP 5—Show Me the Money26.C$17,064. Many businesses, such as photography studios, forecast sales based on sales trends. A business whose sales had been increasing at a rate of 8% might use that percent of increase to forecast future sales. In this case, to calculate the new sales figure, multiply the gross sales by the percentage of increase ($15,800 x 8% or .08 = $1,264) and add the product to gross sales ($15,800 + $1,264 = $17,064).SOURCE:FI:096SOURCE:IM LAP 4—Forecasting Sales27.CIncreased costs. Merchandising budgets determine inventory levels by regulating and planning for the amount of products expected to be sold to customers. When there is more merchandise available than customers want, the specialty advertising business's costs increase for storing, protecting, and insuring the excess merchandise. Accurate merchandising budgets help prevent this situation. Purchasing more goods than customers want to buy will not help a business to increase its sales, expand its market, or generate surplus profit.SOURCE:FI:106SOURCE:FI LAP 3—Money Tracks (Nature of Budgets)28.A$13,150. A photography studio calculates net income by subtracting the cost of merchandise sold from the net sales to determine gross margin ($92,500 - $48,250 = $44,250). Then the studio deducts total operating expenses from gross margin to calculate net income ($44,250 - $31,100 = $13,150).SOURCE:FI:102SOURCE:Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 234-237). Cincinnati: South-Western Educational.29.CHave you ever been convicted? A prospective employer is allowed to ask about convictions. Questions about being arrested, indicted, or prosecuted cannot be asked on an employment application or during an interview because people can be arrested, prosecuted, or indicted for crimes, yet are not convicted and thus have no criminal record.SOURCE:HR:356SOURCE:. (n.d.). Articles and resources on legal hiring. Retrieved October 26, 2007, from who is best qualified to answer a new employee's questions. In addition, reviewing an organizational chart shows the new workers where they fit into the chain of command, their relationship to the overall company picture, and the channels of communication which they should use. The overall job orientation helps employees quickly learn expected standards of behavior and increases employees' confidence in their ability to perform the job. The orientation might encourage positive attitudes, but it won't make workers have positive attitudes.SOURCE:HR:361SOURCE:MN LAP 44—Orienting New Employees31.CThey consist of two components. Instructional objectives should contain three components: performance, conditions, and criterion. An instructional objective is defined as a statement that identifies what trainees, or learners, should know or be able to do as a result of instruction. The benefits of using instructional objectives are that they can guide selection of course content and instructional methods, and they can guide evaluation.SOURCE:HR:363SOURCE:MN LAP 50—Manager/Supervisor Training32.AEvaluation criteria. Before assessing employee performance, advertising agencies need to develop evaluation criteria which are the standards or behaviors that will be assessed. Agencies often develop specific criteria such as attendance, attitude, productivity, etc. For example, customer service is important; therefore, an important criterion might be an employee's ability to be friendly and helpful while providing service to customers. Criteria provide the basis for assessing employee performance. Job descriptions are developed before hiring employees to fill certain positions. After an employee's performance has been assessed, an agency provides appropriate feedback. Employees who receive good or excellent assessments often are recognized for their performance.SOURCE:HR:368SOURCE:Jackson, S., & Schuler, R. (2003). Managing human resources through strategic partnerships (8th ed.) [pp. 461-465]. Cincinnati: Thomson/South-Western.33.ATo develop new products. Specialty advertising businesses often use marketing information to analyze what customers want and need in order to develop new products. Many businesses maintain internal records that indicate the types of products that currently are selling well and to which customers are attracted. Businesses can use this information to develop similar products that will appeal to specific markets. In order to use marketing information, businesses often need to calculate statistics and interpret findings. Businesses do not use marketing information to identify new vendors, although vendors are often a source of marketing information.SOURCE:IM:012SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 602-603, 636-637). New York: Glencoe/McGraw-Hill.34.CPrimary. Primary data are facts collected for use in one particular situation. They are gathered in a systematic manner to solve a problem, explore an opportunity, or for any purpose useful to the business. Some ways in which primary data are gathered include questioning salespeople, customers, or competitors or hiring a marketing-research company to obtain the data. Secondary data are facts already collected for some other purpose. Economic data are facts collected regarding the economy as a whole. These data may be primary or secondary in nature.SOURCE:IM:001SOURCE:IM LAP 2—Marketing-Information Management35.AObtain specific information related to the agency's situation. This information might include specific characteristics of a market, economic data that directly affect the agency, or information about the agency's nearest competitors. Predictive research is used to estimate the agency's future sales or other future developments. Exploratory research collects information to help the agency define its situation, problem, or concern and to decide which direction to take in order to address it. Causal research focuses on cause and effect and tests "what if" theories.SOURCE:IM:010SOURCE:IM LAP 5—Nature of Marketing Research36.BStandard of living. Standard of living is the way, or manner, in which people live. It is usually measured by the quantity and quality of the goods and services that people own and use. Our marketing system has given the United States one of the highest standards of living in the world. Community relations refers to a company's involvement or relationship with the community. Family ties are intrafamily relationships. A planned economy is an economic system in which the government makes all the decisions.SOURCE:MK:001SOURCE:BA LAP 11—Have It Your Way!37.CProduct. Packaging is a product decision in the marketing mix. It involves enclosing products in protective wrap or containers before they are sold. The place, or distribution, element of marketing focuses on considerations in getting the selected product in the right place at the right time. Promotion refers to the various types of communications that marketers use to inform, persuade, or remind customers of their products. The price element requires marketers to determine the amount of money they will ask in exchange for their products.SOURCE:MP:001SOURCE:IM LAP 7—Pick the Mix (Marketing Strategies)38.CFind out whether there is a market for its products. Target marketing is the identification and selection of markets for a business or for a product. Specialty advertising businesses need to know whether there are consumers who are likely to buy from them in order to know what to sell and how to sell it. Identifying the target market will not enable the business to predict the amount of profit that it can earn. Finding out how many consumers have heard of the business is not a purpose of target marketing since those who have heard about the business still may not buy from it. Identifying the target market does not help to control operating expenses, the costs of running the business.SOURCE:MP:003SOURCE:IM LAP 9—Have We Met?39.BStyle of living. Psychographic segmentation is the division of a market on the basis of consumers' lifestyles and personalities. Many advertising agencies identify market segments based on psychographics in order to understand the way in which people lead their daily lives, which often is determined by their income, interests, and activities. By identifying these various market segments, agencies will be able to understand their different wants and needs. The number of family members, quality of health, and type of dining habits are demographic characteristics.SOURCE:MP:004SOURCE:Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 235]. Mason, OH: Thomson/South-Western.40.CThreats and opportunities. One of the purposes of conducting a situational analysis is to identify the threats and opportunities in the business environment. The changing nature of the business environment brings with it many opportunities for promotional businesses as well as potential threats. In order to be prepared to take advantage of the opportunities or deal with the threats, a business must first analyze the environment to find out exactly what those opportunities or threats are. A business does not conduct a situational analysis to identify profits and losses, revenues and expenses, or goods and services.SOURCE:MP:008SOURCE:Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 41-44]. Mason, OH: South-Western.41.CExternal opportunity. A SWOT analysis is the systematic evaluation of a business's internal strengths and weaknesses and external opportunities and threats. Once the analysis identifies an internal strength, media production businesses generally use that strength to take advantage of an external opportunity that has been identified. Being able to match strengths to opportunities is one of the advantages of conducting a SWOT analysis. For example, having modern production facilities is a strength that allows a business to take advantage of the opportunity to expand into new markets. A marketing strategy is a plan of action for achieving marketing goals and objectives. Operating procedures are the steps a business follows to perform certain tasks. Promotional techniques are methods of achieving promotional goals.SOURCE:MP:010SOURCE:IM LAP 8—Analyze This!42.DWhat information is available to use? To determine whether to use quantitative or qualitative forecasting methods, a promotional business should ask how much the forecasting method will cost, how accurate the method will be, and what information is available to use. After a forecasting method is chosen, the business should examine its internal changes that could affect the sales forecast. Past sales records are an excellent source of internal information that can be used in forecasting sales; however, the amount of previous sales is not needed in order to select a forecasting method. The business's operating expenses might affect the nature of the sales projection but would not influence the choice of forecasting method.SOURCE:MP:013SOURCE:IM LAP 3—Nature of Sales Forecasts43.AIncrease profits by 6% next year. Marketing objectives are the goals a graphic design business seeks to reach with the marketing plan. To be effective, marketing objectives should be specific and indicate a certain time period. Increase profits by 6% next year is an effective objective because it clearly states the goal to achieve, which is a 6% increase in profits. It also includes a period of time, which is to achieve that goal next year. Once a business sets a specific objective, it can develop marketing strategies to achieve the objective. Hiring additional salespeople and identifying new local vendors might be strategies a business will develop to achieve the goal. Decreasing the level of spending is not an effective objective because it is not specific and does not state a time period.SOURCE:MP:015SOURCE:Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 42]. Mason, OH: Thomson/South-Western.44.AIntroducing a new product. Specialty advertising businesses usually develop a marketing plan before introducing a new product. They take into consideration a variety of factors that may have an effect on the success of the new product such as the prices that competitors are charging for similar products. When introducing a new product, businesses usually want to set prices that are comparable to, or lower than, the prices offered by their competitors in order to attract customers and build market share. Businesses do not consider their competitors' prices when organizing a new division, selecting a new supplier, or analyzing a new database.SOURCE:MP:018SOURCE:Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.) [pp. 98-100]. Boston: Irwin/McGraw-Hill.45.AStandards. Standards are specifications or statements that are used as a basis for comparing or judging goods or services. A SWOT analysis is a summary of a business's situation in terms of strengths, weaknesses, opportunities, and threats. An appraisal is an estimated value of an item (e.g., building, property, jewelry). Classification audit is not a term commonly used to describe a method of measuring the performance of marketing activities.SOURCE:MP:022SOURCE:Farese, L. S., Kimbrell, G., & Woloszyk C. A. (2006). Marketing essentials (4th ed.) [p. 36]. Woodland Hills, CA: Glencoe/McGraw-Hill.46.AMore consumers are getting information from the Internet. With the development of PCs and Internet capabilities, the means of communicating information quickly has increased dramatically. Many publishers are putting full or partial forms of their magazines and newspapers on their web sites. Contemporary consumers are pressed for time and disposable income to purchase the print collateral. Therefore, more and more consumers are turning on computers and getting the information they need, when they want it; and many are not buying as many newspapers or magazines as in the past. Consumers are buying more than they did twenty years ago. Print advertising is not becoming more expensive. Advertising messages usually do not contain a lot of technical information.SOURCE:MP:030SOURCE:Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.) [pp. 288-292]. Upper Saddle River, NJ: Prentice Hall.47.BTo create visual appeal. Advertising agencies often use specialized computer programs, such as PowerPoint, to develop audiovisual presentations that they intend to show to clients. One reason for using these programs is to create presentations that are visually appealing. Most presentation software programs allow agencies to include graphics, animation, sound, etc., which make the presentations more interesting and appealing. Also, the audiovisual presentation often makes it easier for clients to view and understand complex information. Using specialized computer programs to present information to clients does not eliminate questions, record client feedback, or provide hard copies. SOURCE:NF:037SOURCE:Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 140-141]. Boston: Irwin/McGraw-Hill.48.BWeb-page editor. A web-page editor (e.g., Microsoft FrontPage or Macromedia Dreamweaver) automatically creates the HTML coding that produces the components of a web page including links, headings, and tables. Desktop publishing software such as Adobe Pagemaker and QuarkXPress combine text and graphics to create professional-looking printed materials such as newsletters, catalogs, and brochures. Database software organizes, sorts, and stores information and facts so that businesses can easily access things such as inventory and customer information. Spreadsheet software such as Microsoft Excel and Lotus 1-2-3 works around a grid system to organize information, perform calculations, and produce reports.SOURCE:NF:053SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 163-166]. Woodland Hills, CA: Glencoe/McGraw-Hill.49.BDocument from being forwarded. Some advertising agencies use software programs that help maintain the security of data they send over the Internet to clients. These programs prevent documents from being forwarded to others so the information does not end up in the hands of competitors. Also, these programs prevent others from copying, editing, or printing the documents which helps maintain the information in its original form. These software programs do not prevent a virus from being downloaded, an attachment from being included, or a search engine from being used. SOURCE:OP:064SOURCE:Oelkers, D.B. (2002). E-Commerce: Business 2000 (pp. 126-128). Cincinnati: South-Western Educational.50.BFraud. Fraud is deceiving or cheating an individual or a business out of money or property. Not allowing employees to bring personal belongings into the work area reduces the possibility that employees will try to conceal goods and carry them out of the business. Robbery is theft that involves the use of force, violence, or fear. Burglary is any illegal entry into a building to commit a theft. Shoplifting is theft of goods by customers.SOURCE:OP:013SOURCE:RM LAP 4—Security Precautions51.BBy identifying consumers' needs and wants. A wide variety of marketing-research data is available from libraries, government agencies, and trade publications. Or, the specialty advertising business can conduct its own research. The data can help the business to produce products that consumers need or want and are willing to buy. Determining how products will be produced is a planning step that involves deciding what equipment will be needed, the number of workers, and the time required. Identifying the resources needed in production is part of the purchasing function. Setting the timetable to be used in production is part of scheduling.SOURCE:OP:017SOURCE:BA LAP 1—Nature of Production52.AProduction. A procedure is a step-by-step process for performing a specific task. A company must conduct many tasks to keep the business running. To make sure that the business is operating efficiently, it may evaluate its procedures to see if the business should make improvements so it can reach its various goals. Production is the process or activity of producing goods. To determine if it is producing the maximum amount of specialty advertising goods, a manufacturing company would review its production systems and procedures. Promotional efforts consist of activities that communicate information about the business or its products. Warehousing efforts refer to product storage activities. Sales activities involve influencing and facilitating a customer's purchase of a business's goods or services.SOURCE:OP:022SOURCE:Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 288, 330, 530]. Cincinnati: South-Western.53.DIdentify and correct problems. An important benefit of project management is that it allows the manager to identify problems and make corrections. By monitoring the project, it is usually possible to detect problems early and save the project from failure. When the manager notices that the project is not going as planned or is encountering difficulties, there is time to take action to correct the problem. Benefits of project management do not include allowing the manager to make all of the decisions, have power and authority, or work with interesting people.SOURCE:OP:002SOURCE:QS LAP 18—Make It Happen54.DControl expenses. Finding ways to control expenses is important to businesses. Some small public relations agencies that prepare their own payrolls may forget to deposit the withheld payroll taxes on time and be charged a costly penalty by the Internal Revenue Service. If this situation occurs frequently, a small agency may end up paying a significant amount in penalties. One way to eliminate the problem and control expenses is to hire an outside payroll-processing company which will prepare all the federal and state payroll tax deposits and make sure the agency pays them on time. The cost of hiring an outside payroll-processing company is less than continually paying costly penalties to the IRS. An outside payroll-processing company will not provide excuses or explain errors. The company does not prepare estimates but exact documents and forms that are required by the IRS.SOURCE:OP:029SOURCE:CCH Inc. (n.d.). Outside payroll processing. Business Owner's Toolkit. Retrieved October 26, 2007, from of investment. Promotional businesses have a lot of money invested in their buildings. Regular maintenance keeps buildings looking good and in good repair so that their value stays the same or increases. Maintenance is part of risk management since it helps to prevent accidents and injuries. Effective maintenance usually increases operating efficiency. It may increase sales since attractive facilities are more appealing to customers, but it doesn't control sales.SOURCE:OP:032SOURCE:Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.) [pp. 318-320]. Upper Saddle River, NJ: Prentice Hall.56.DTo help you be committed to the goal. Sharing your goal with supportive individuals helps you to be committed to the goal, to clarify it, and to make it real. Supportive people are likely to approve your goal, and your goal may inspire others, but those are not purposes of talking to others. Having a goal that is appropriate to you and your abilities makes it realistic.SOURCE:PD:018SOURCE:HR LAP 6—Goal Setting57.AAccount executives. Account executives must determine the client's point of view and communicate it to the agency staff that will create the ad. Art directors are a part of the creative staff and oversee the design and production process of the advertisements. Copywriters write the words for print ads, radio spots, and television spots. Illustrators draw the pictures and artwork for ads.SOURCE:PD:052SOURCE:Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.) [p. 86]. Upper Saddle River, NJ: Prentice Hall.58.AA job interview for the applicant. A letter of application is often called a cover letter because it is usually sent along with a résumé. The intent of the job applicant is to obtain a job interview by introducing him/herself in the letter and presenting background information in the résumé. A job seeker who receives a letter in response to a letter of application is not likely to be receiving good news since most advertising agencies use letters to reject applicants. The agency may respond by telephoning the applicant or asking for a résumé if none has been sent, but setting up an interview is the most desirable outcome for the applicant.SOURCE:PD:030SOURCE:Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 54-56]. Mason, OH: South-Western.59.CRoutine items. Businesspeople often handle daily, routine items during waiting times or unexpected free times. Routine items are those activities that occur regularly and need to be handled, but they are not urgent. Businesspeople who are effectively managing their time take advantage of unexpected free time to handle those routine items. Employees are not expected to handle their personal matters during the work day. Major issues and new problems usually are important activities that receive top priority for completing rather than being handled during unexpected free time.SOURCE:PD:019SOURCE:OP LAP 1—About Time (Time Management in Business)60.BCalculator. Calculators are devices that are used to compute numerical data. Calculators are widely used and are available in many forms, including battery-operated models and traditional electrical models. They are often found on computers and personal organizers such as palm pilots. A fax machine is used to transmit documents via telephone lines. Scanners are technological devices that transmit images or information to computers.SOURCE:PI:016SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.) [pp. 126-127]. Woodland Hills, CA: Glencoe/McGraw-Hill.61.BProduction/Operating costs. When determining the price for goods and services, the seller must include the costs of utilities, rent, raw materials, or transportation in order to recover those costs. The buying power of customers is determined by their income, which also determines their standard of living. These are external factors of which the business should be aware. Government regulation is also an external factor.SOURCE:PI:002SOURCE:PI LAP 3—Factors Affecting Selling Price62.ATotal dollar sales needed to reach break-even. Break-even can be expressed in units or dollars. Calculating break-even in dollars shows the quick-print business the total dollar value of the sales the business needs to make to reach the break-even point. The amount of the business's after-tax earnings is the amount of profit. The amount the business can spend on new purchases is called open-to-buy. An inventory control system provides information about the dollar value of stock on hand.SOURCE:PI:006SOURCE:PI LAP 4—Tipping Point (Calculate Break-Even)63.CTo sell excess goods. One of the main reasons for marking down merchandise is to sell excess goods. Specialty advertising businesses know that not all goods will sell at their original prices for a variety of reasons, such as they were overpriced or the business overestimated consumer demand. When businesses have excess goods in stock, they often mark down the prices in order to sell those goods and make room for new merchandise. A business might increase the price of merchandise in order to cover rising costs. Marking down merchandise does not maximize profits, because goods are sold for less than the desired price. A business's objective is usually to sell goods at the original price rather than at reduced prices.SOURCE:PI:008SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 556, 574-575). New York: Glencoe/McGraw-Hill.64.DTo compete. Product/Service management helps businesses, such as advertising agencies, to compete effectively. Because many new products are being introduced to the marketplace all the time, competition is fierce in many areas. Effective product/service management helps advertising agencies to be prepared for new services that their competitors may introduce to the marketplace. It also helps advertising agencies to develop new services of their own, so they can stay ahead of competitors. Recruiting is the process of finding workers for a business. Prospecting is the process of identifying and locating potential clients. Bartering is trading or exchanging one item for another.SOURCE:PM:001SOURCE:PP LAP 5—Product/Service Planning65.DDecline. In the decline stage of the product life cycle, the promotional product has lost its popularity, and sales and profits have fallen, or declined. Sales and profits have not risen to a point at which they could fall in the introductory stage. Sales and profits are rising in the growth stage, and both level off during maturity.SOURCE:PM:024SOURCE:Boone, L.E., & Kurtz, D.L. (2002). Contemporary marketing (pp. 347-348). Mason, OH: South-Western.66.DMass customization. Ongoing technological advancements are helping businesses take their standard products and customize them for many people or businesses in an efficient, cost-effective way. For example, a basic software application can be adapted or programmed to fit a particular advertising agency's needs. Another example of mass customization is when a manufacturer customizes packaging for its authorized distributors. Reverse standardization, interactive transformation, and modified obsolescence are fictitious terms.SOURCE:PM:039SOURCE:Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 308-309]. Mason, OH: South-Western.ustomer complaints. Product ideas come from many sources such as customer complaints. If a business receives many complaints about a promotional display product, it might decide to think of a way to redesign the product or develop a new product that will satisfy customers. Since customers are the ones who use a product, their comments and complaints often help businesses generate ideas to solve problems with existing products. After generating ideas, businesses often test the concept and evaluate the cost of design. Promotional plans are intended to make customers aware of a new or updated product.SOURCE:PM:128SOURCE:Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an e-commerce world (7th ed.) [pp. 286-287]. Mason, OH: South-Western.68.AWarranty. A warranty is a promise made by the seller or the producer to the consumer that the seller will repair or replace a product that does not perform as expected. A guarantee is a promise made by the seller to the consumer that the seller will refund the consumer's purchase price if the product does not perform as expected. A limited warranty does not contain the provisions of a full warranty but may be limited to specific parts or repairs. Guarantees are often called money-back guarantees because they promise a refund to the customer if the good/service does not meet expectations.SOURCE:PM:020SOURCE:PP LAP 4—Warranties and Guarantees69.DFederal Trade Commission. The FTC protects consumers by enforcing laws governing fair competition. The Federal Communications Commission regulates forms of communication including radio, television, and telephone. The Securities and Exchange Commission regulates the buying and selling of stocks and bonds. The Federal Advertising Administration is not a federal agency.SOURCE:PM:017SOURCE:PP LAP 7—Consumer Protection in Product Planning70.DRepeat sales. Graphic design companies evaluate their customers' experiences to determine how well they are satisfying their customers' needs and wants. If a company is not providing the customers with positive experiences, the business can take corrective action. If a company is providing its customers with positive experiences, the customers are more likely to buy again from the company. When customers buy from the same business again, it is called repeat sales. A company that is providing positive customer experiences will be likely to receive favorable rather unfavorable publicity. Advertising is a promotional media for which a business pays. Sales quotas are specific sales goals.SOURCE:PM:138SOURCE:Armstrong, G., & Kotler, P. (2000). Marketing: An introduction (5th ed.) [pp. 8-9]. Upper Saddle River, NJ: Prentice Hall.71.BMarket demand. Often, a specialty advertising business must change its product offerings to accommodate its customers' changing wants and needs. To determine if a product change, addition, or deletion should be made, the business must evaluate the market demand for the product. If customer demand for certain goods or services is high, the business is likely to add new products or change existing products. Businesses do not usually consider taxation rates as a first or primary factor when identifying products to sell their customers. Storage space and promotional strategy are considerations after the business evaluates the market demand for a product. SOURCE:PM:130SOURCE:Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [p. 222]. Boston: McGraw-Hill/Irwin72.CAccess information online. The wonderful thing about web-based specialty advertising businesses (e.g., e-tailing) is that customers can serve themselves by accessing important information online, including the answers to Frequently Asked Questions and product information. A web-based business puts security measures into place so that people won't hack into its web site and cause all kinds of damage. Although being able to return unwanted merchandise to the business's local store is a beneficial service, it does not take advantage of technology. Web-based businesses encourage customers to buy online rather than over the telephone by making it easy to buy within three clicks or less.SOURCE:PM:013SOURCE:PM LAP 1—Customer Service Supersized!73.ANew and creative. The needs of each client are different; therefore, the advertising services provided to each client are unique. Although the basic services are the same, the way they are delivered are often new and creative, which makes it difficult to evaluate their effectiveness. For example, copywriting is a basic service. However, writing ad copy for a new product involves creativity and new ideas. What worked for one product might not work for a new product. There's not a specific formula to follow, which means that there is no guarantee that the services will be effective. Although advertising services may be expensive, legal, ethical, and competitive, those are not the reasons why it is sometimes difficult to evaluate their effectiveness.SOURCE:PM:108SOURCE:Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.) [pp. 323-324]. Upper Saddle River, NJ: Prentice Hall.74.DBusiness plan. Developing a successful brand depends on clearly identifying and defining the advertising agency's strengths and competitive advantages. It is often helpful for advertising agency owners to go back and review (or write, if they don't exist) their business plans to glean this information. Press releases may describe the advertising agency's strengths, and as representations of the brand, an advertising agency's name and slogan may imply its strengths or competitive edge. Although some advertising agencies allude to their strengths and competitive advantages on the Internet, they would not use their FAQs to address these issues.SOURCE:PM:126SOURCE:PM LAP 10—Building Your Business's Brand75.DResponsibilities and expectations. A contract is a legally binding agreement between two parties that documents a promise to perform specific business activities. Advertising agencies often put a lot of time and money into servicing their clients (e.g., television commercials). They often request their clients to sign contracts to protect themselves from a client who defaults on contract stipulations, such as payment. The contract should provide enough detail so that each party understands their own, as well as the other party's responsibilities and expectations. Contracts do not always document specific information about plans, strategies, ideas, risks, requests, and personal preferences. SOURCE:PM:264SOURCE:Duncan, A. (n.d.). How to create a freelancing contract. Retrieved October 29, 2007, from sales. Promotional activities inform potential consumers about goods, services, images, or ideas to achieve a desired outcome. One of the main outcomes is an increase in sales. Attracting customers, enhancing image, and increasing name recognition are means to achieving this goal.SOURCE:PR:001SOURCE:PR LAP 2—Promotion77.BSales promotion. Sales promotion is promotional activities other than advertising, personal selling, and publicity which stimulate consumer purchases. It is used to supplement advertising and selling efforts. Advertising is any paid form of nonpersonal presentation of ideas, goods, or services. Personal selling is the use of planned, personalized communication in order to influence purchase decisions and to ensure satisfaction. Publicity is nonpersonal promotion which is not paid for by the company or individual which benefits from it. An example would be a newspaper article about the opening of a new business.SOURCE:PR:003SOURCE:PR LAP 1—Promotional Mix78.AUsing high-pressure selling tactics. It is unethical for a salesperson to use high-pressure tactics (e.g., fear) to close a sale. Explaining notable product features, distributing product coupons, and up-selling goods and services are not unethical promotional activities unless the salesperson misrepresents the company or product in some way.SOURCE:PR:099SOURCE:Semenik, R.J. (2002). Promotion and integrated marketing communications (p. 220). Mason, OH: South-Western.79.ATrade practice. Misleading or deceptive advertising is considered to be an unfair trade practice because it may have a negative effect on competition. Deceptive advertising may confuse or mislead customers who will be unable to make buying decisions based on fact. When that occurs, the businesses using deceptive advertising often have an unfair advantage over competitors who are providing truthful information to customers. A business policy is a general rule or statement the business follows. A sales trend is the direction in which sales are moving. A marketing plan is a set of procedures or strategies for attracting the target customer to a business.SOURCE:PR:101SOURCE:Russell, J.T., & Lane, W.R. (1999). Kleppner's advertising procedure (14th ed.) [pp. 654-655]. Upper Saddle River, NJ: Prentice Hall.80.CSpelling. The letter "r" has been left out of the word "through." The grammar, punctuation, and spacing are all correct. Advertisers should check all advertising proofs carefully to prevent errors in final ads, and make the necessary corrections. SOURCE:PR:130SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (p. 433). New York: Glencoe/McGraw-Hill.81.CUndeliverable mail. Many times, an e-mail marketer receives mail back that cannot be delivered to the intended recipient. Sometimes the e-mail address is entered incorrectly in the organization's database. In other cases, people change Internet providers, which also changes their e-mail addresses. When these changes occur and the business is not notified, the message cannot be delivered to the intended receiver. Time can be considered a benefit for many e-mail marketers. Unlike print advertising that needs to be developed and produced long before appearing in a publication, e-mail messages can generally be constructed and executed much quicker, which requires less lead time. When customers provide companies with feedback on their products, it is a personal opinion that does not have a right or wrong answer. Therefore, the feedback cannot be incorrect. Irrelevant content refers to information that does not relate to the message. Businesses have control when developing message content and strive to make the information relevant to the audience. Therefore, irrelevant content is not generally considered an obstacle that e-marketers encounter when sending promotional messages.SOURCE:PR:165SOURCE:PR LAP 13—E-Mail as a Marketing Tool82.B$10.00. Cost per thousand (CPM) is a quantitative measure of the cost efficiency of a media vehicle based on the cost of exposing 1,000 people to a promotional message. It is calculated by multiplying the cost of the ad by 1,000, then dividing this number by the target audience ($600 x 1,000 = $600,000; $600,000 ÷ 60,000 = $10).SOURCE:PR:009SOURCE:PR LAP 6—Calculating Media Costs83.BCirculation. Circulation is defined as the number of people reached by a media vehicle. A company with a well-known brand might want to reach as many people as possible. As a result, it places ads in nationally distributed publications instead of local publications. Motivation is an influence or reason that causes someone to take action. Reputation often refers to the image or status of an entity. Businesses often consider a publication's reputation when buying advertising; however, a business's reputation does not always indicate details regarding the publication's readership or reach. For example, it is possible for a magazine to have a good reputation and small reach. It is also possible for a publishing company to have some negative aspects in terms of overall reputation and still maintain a sizable reach. Participation is the ability or willingness to take part or share something. A publication's participation in a variety of activities does not necessarily reflect its circulation in terms of size and demographics.SOURCE:PR:104SOURCE:Arens, W.F. (1999). Contemporary advertising (7th ed.) [p. 454]. Boston: Irwin/McGraw-Hill.84.DIs read by potential customers. The travel section of Sunday newspapers is an effective place for travel companies to advertise because people thinking about traveling often read that section in order to get ideas, compare prices, and find out what is currently available. People frequently book trips or make travel reservations by contacting the transportation companies that advertise in the travel section, which is designed specifically to appeal to people interested in travel. Transportation companies do not advertise in the travel section because it contains colorful photographs or promotes competitive pricing. The travel section is intended for travelers, which might include businesspeople, although businesspeople are not the main audience.SOURCE:PR:132SOURCE:Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.) [pp. 260-261]. Upper Saddle River, NJ: Prentice Hall.85.BMeet media deadlines. All media have deadlines for the material they use. Businesses should find out what these deadlines are and get their news releases to each medium on time. Businesses should not pressure the editor, mention advertising, or play favorites when trying to get their news releases presented as these tactics are not well received by the media.SOURCE:PR:057SOURCE:PR LAP 10—Writing News Releases86.CLettering should be large enough for customers to read at a distance. The sign should encourage the customer to approach the display. The lettering should stand out in order to attract the customer's attention. Lettering must be legible, but that does not mean that it has to be block style.SOURCE:PR:109SOURCE:Newman, A., & Cullen, P. (2002). Retailing: Environment & operations (pp. 264-265). London: Thomson Learning.87.BSuccessful sales promotions often use consistent themes that are coordinated with advertising efforts. When using consistent themes throughout all promotional efforts, consumers are more likely to remember the product. Using something as simple as a tag line in all promotion efforts (e.g., Nike's "just do it") often increases product recognition and usage. Sales promotions are generally used to boost short-term sales. For example, a retailer might discount a specific product to deplete an inventory overstock. Sales promotion is usually most effective if different media vehicles (e.g., Internet, print) are used. Event planning is crucial for marketers that employ sales promotion activities. Some governments have very specific regulations regarding how information is communicated to promotion participants. For example, a government might require that the sponsor of a contest clearly communicate the rules and conditions for the event.SOURCE:PR:094SOURCE:Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 408-410). Mason, OH: South-Western.88.ASelecting the forms of promotion that will be used. The promotional mix is the combination, or blend, of marketing communication channels that a business uses to send its messages to consumers. Selecting the combination that is most appropriate for the business is part of promotional planning. Deciding whether to use a push or pull strategy, or a combination of the two, is another step in planning. Most businesses do not need to identify the available forms of promotion as they are aware of their existence and availability. Monitoring the promotions used by competitors may be part of promotional planning or budgeting.SOURCE:PR:073SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 363-367). New York: Glencoe/McGraw-Hill.89.BSpecial location within. Many businesses coordinate promotional and selling activities by placing the products being promoted in special locations that are designed to attract attention. The products being promoted are prominently displayed in special areas that are accessible to customers. Businesses would not display products being promoted in unused parts of a business, in restricted sections, or in areas adjacent to the business because customers would not be likely to find them.SOURCE:PR:076SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 367, 385-387). New York: Glencoe/McGraw-Hill.90.CSales results of past ads. Businesses need to maintain a file of data on each advertisement that they run so that the information can guide their future advertising efforts. Data that could be maintained include the cost of the advertisement, how long it was run and in which media, the ad's size, the products advertised, when the advertisement appeared, how much sales increased after the ad appeared, and other activities and circumstances that might have influenced the effectiveness of the ad. The names of the ad personnel and the time spent preparing past ads would not be considered significant. Product concept tests are conducted when new products are being developed to determine which product idea would best meet the needs of the target market and result in the highest profit for the business.SOURCE:PR:075SOURCE:Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.) [pp. 140-144]. Upper Saddle River, NJ: Prentice Hall.91.BObjective and task. The objective and task method sets objectives for advertising, calculates how much advertising will be needed to reach those objectives, and budgets funds to cover the costs involved. The competitive parity method bases the advertising budget on what competitors are spending for their advertising. The percentage of past sales method budgets a certain percent of last year's sales for advertising, and the percentage of anticipated sales bases the advertising budget on the sales forecast.SOURCE:PR:160SOURCE:Burrow, J.L. (2002). Marketing (pp. 436-437). Mason, OH: South-Western.92.DTo get people talking. The main goal of buzz marketing is to get people talking about something such as a product or an idea. Buzz marketing often involves the use of someone who is well known or influential who will talk about the product or idea and generate interest. Then, the general public starts to talk and the message spreads by word of mouth. Depending on what is being marketed, a secondary goal of buzz marketing might be to change attitudes, encourage buying, or influence emotions. However, the main goal is to get people talking to spread the message.SOURCE:PR:229SOURCE:Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.) [pp. 168-169]. Upper Saddle River, NJ: Prentice Hall.93.CPromotional mix. This is the combination, or blend, of marketing communication channels that a business uses to send its messages to consumers. These channels include advertising, sales promotion, personal selling, and publicity. Advertising in the local newspaper and sending direct-mail pieces to potential customers are forms of advertising. Sponsoring a contest and offering rebates are sales promotions. A business that decides to reach potential customers by advertising and using sales promotions is not establishing its communication plan, selling policy, or distribution strategy. SOURCE:PR:237SOURCE:Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 363-365). New York: Glencoe/McGraw-Hill.94.BThe loyalty shown by repeat customers. Although the steps taken to build and promote goodwill cost money, businesses are able to offset these costs from the results of customer loyalty: reduced selling costs, positive word-of-mouth advertising, and increased sales volume. The use of effective follow-up techniques is one of the steps taken in building a clientele for which businesses must pay.SOURCE:SE:828SOURCE:SE LAP 115—Keep Them Loyal (Building Clientele)95.DCheck stock availability. Technology tends to increase the efficiency in processing a sale. Because laptop computers are small and portable, specialty advertising salespeople can easily take them to sales calls. The salesperson can access the company's network to place orders and also to get important information for the customer, such as checking to see if a certain product is available to ship. A bill of lading is a contract between a shipper and the transportation company. Salespeople often use laptop computers to send promotional messages, write sales proposals, and analyze shipping information, but they would not usually complete those tasks during a sales call.SOURCE:SE:107SOURCE:Hite, R., & Johnston, W. (1998). Managing salespeople: A relationship approach (pp. 109-110, 115). Mason, OH: South-Western.96.DAnnual report. An annual report is a promotional publication prepared by many businesses that explains the economic condition of the company. This publication usually contains information about the business's activities such as plans for expansion, new product testing, market trends, and current and projected profit. Salespeople can use this type of information to promote the company's stability and good reputation with customers and encourage sales. An employee handbook contains information about benefits and how employees are expected to act on the job. A magazine article usually is not written by the business. A training manual contains information that teaches employees how to perform on the job.SOURCE:SE:062SOURCE:Burrow, J.L. (2002). Marketing (p. 466). Mason, OH: South-Western.97.DHidden. A hidden benefit is an advantage of the specialty advertising product that is not recognizable unless a salesperson points it out. An obvious benefit is a product advantage that is apparent, plain to see, and easily recognizable. Limited and quantitative are not commonly used terms that describe a type of product benefit.SOURCE:SE:109SOURCE:SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)98.CPossess excellent presentation skills. When an advertising account executive pitches promotional ideas to a client, s/he is selling the advertising agency's expertise and services. To develop promotional ideas for a client, an advertising agency must understand the business, its target markets, and its products. When pitching the ideas, the account executive must communicate that the agency understands the client's business and tie the promotional ideas to that understanding. To do this, the account executive should possess excellent presentation skills. If the account executive presents the ideas effectively, it is more likely that the client will approve of the ideas. Because the client has not approved the ideas, a detailed execution plan has not been developed. Therefore, the account executive does not need to present all the details for executing a promotional campaign. Asking the client to hold his/her questions would be rude. Discussing the agency's track record may reinforce the agency's expertise for the client. SOURCE:SE:347SOURCE:Arens, W.F. (2004). Contemporary advertising (9th ed.) [p. 121]. New York: McGraw-Hill.99.BManagers. Managers are responsible for setting the overall goals and motivating their employees to work towards accomplishing them so the public relations agency can be successful. Employees are responsible for working towards the goals of the agency, but they are not responsible for setting goals. Consultants do not set goals for businesses other than their own. Supervisors guide employees in carrying out the activities of the agency.SOURCE:SM:001SOURCE:BA LAP 6—Manage This!100.CThe business will eventually close its doors. Media production businesses operate in an environment of change. The business must respond to these changes by adjusting its goals, objectives, and strategies, or it will not be able to remain open. The business may be stable and successful, or earn substantial profits in the beginning, but these trends will not last. The business is not likely to be imitated by competitors who want to succeed.SOURCE:SM:011SOURCE:MN LAP 43—External Planning Considerations ................
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