Marketing Cluster Exam Vocab

Question 1

Slotting allowance

Answer 1

cash premium manufacturers pay to businesses to cover the costs in carrying a new product

Question 2

Gray marketing

Answer 2

buying from unauthorized distributors

Question 3

Contract

Answer 3

One party does something in return for what is provided

Question 4

Which factors dictate a business ownership structure?

Answer 4

personal circumstances, financial needs, type of business

Question 5

Relationship between agent and client (principal)

Answer 5

Fiduciary

Question 6

Communication from management to employee

Answer 6

Downward communication

Question 7

Financial audit

Answer 7

Examination of financial statement

Question 8

Private enterprise system (aka free market economy, capitalistic system, free enterprise)

Answer 8

individuals own and control means of production, rather than the government

Question 9

Investment bank

Answer 9

Financial intermediary

Question 10

What does a finance company do?

Answer 10

purchases borrowers’ contracts from sellers and receives their payments

Question 11

What does a credit union do?

Answer 11

Financial cooperative set up to provide savings and credit services

Question 12

What does an asset-management firm do?

Answer 12

Invest client money in different securities by pooling their assets

Question 13

Advantage of sampling?

Answer 13

Represents a larger group

Question 14

Advantage to paying a card statement in full?

Answer 14

No interest to be paid

Question 15

Advantage to paying card in cash?

Answer 15

No spiraling card debt

Question 16

Fixed cost

Answer 16

Does not change with sales volume

Question 17

Variable Cost

Answer 17

Changes with sales volume (ie commission, delivery charges, cost of goods sold)

Question 18

Which software for text documents?

Answer 18

Word-processing software

Question 19

Scanner fraud

Answer 19

overcharging customers

Question 20

Predatory pricing

Answer 20

lowering price to drive out competition

Question 21

Grades

Answer 21

Ratings assigned to food products (dictating what level of ingredient)

Question 22

Stages of brand loyalty

Answer 22

• insistence (will not buy from another brand)
• preference
• recognition (made aware of the brand)

Question 23

Advantage of advertising in newspapers

Answer 23

Demonstrate consumer interest in ads, because TV and radio commercials are tuned out

Question 24

Management functions

Answer 24

• controlling (monitors work effort)
• planning
• directing
• organizing

Question 25

Marketing mix (elements of marketing)

Answer 25

Product, price, place, promotion

Question 26

What increases business costs?

Answer 26

Surplus of inventory

Question 27

Example of external marketing data

Answer 27

Web-based information services

Question 28

Test marketing

Answer 28

Introducing a new product to a limited market

Question 29

Examples of internal marketing data

Answer 29

Sales reports, accounts receivable summaries, inventory records

Question 30

Channel management

Answer 30

Process of coordinating channel members to move goods and services to the end user

Question 31

Express contracts

Answer 31

contracts expressed verbally or in writing

Question 32

Why is it difficult to change distribution channels?

Answer 32

Changes flow of goods usually

Question 33

Protectionism

Answer 33

Governmental policy to protect domestic businesses from foreign competition

Question 34

Anti-trust laws

Answer 34

protect individuals and businesses from unfair practices that restrain trade

Question 35

Probate laws

Answer 35

Estate issues

Question 36

Zoning laws

Answer 36

Regulate property use

Question 37

Infringement laws

Answer 37

intellectual property issues

Question 38

Memorandum

Answer 38

A written message in business (to, from, date, subject)

Question 39

Increasing returns

Answer 39

When output is greater than input

Question 40

Transfer payments

Answer 40

Not counted in GDP (ie retirement plans)

Question 41

Unemployment rate

Answer 41

Seasonally adjusted and does not include discouraged workers

Question 42

Difference between consumer and industrial good

Answer 42

Who makes the purchase

Question 43

When can currency lose value

Answer 43

Due to political instability

Question 44

Environmental scan

Answer 44

Analysis of external forces that influence a business' success

Question 45

Operations process

Answer 45

Day to day activities required for continued business functioning

Question 46

How does technology benefit operations process

Answer 46

Computerizes purchasing function

Question 47

Retail buyer

Answer 47

Analyzes sales data, trends, and supplies when selecting products for the store to sell

Question 48

Receiving manager

Answer 48

Supervises acceptance, handing, and distribution of orders

Question 49

Organic marketing

Answer 49

Long-term digital marketing strategy that builds a foundation

Question 50

Shill marketing

Answer 50

Advertises a product to people without them knowing they are being marketed

Question 51

Why is planned obsolescence of products an ethical issue?

Answer 51

Natural resources are needed to produce them

Question 52

Intensive vs exclusive distribution strategy

Answer 52

Selling a product in as many outlets as possible vs very few

Question 53

Steps to do an environmental scan

Answer 53

1. identify participants and responsibilities 2. identify and analyze important trends 3. select trends to act on

Question 54

Tort

Answer 54

Civil wrongdoing

Question 55

Conversion

Answer 55

taking personal property from owner to someone else

Question 56

Corporation

Answer 56

owned by stockholders

Question 57

Cooperative

Answer 57

Owned and operated by user-owners

Question 58

Arbitration

Answer 58

Use of an arbitrator to settle disputes

Question 59

Rebates

Answer 59

Return of part of the price a customer pays for a good or service

Question 60

Excise tax

Answer 60

Tax imposed on sale of goods

Question 61

sugging

Answer 61

selling under the guise of research

Question 62

frugging

Answer 62

fundraising under the guise of research

Question 63

institutional public service

Answer 63

inform consumers of noncontroversial issues in public's best interest

Question 64

examples of sales promotion

Answer 64

couponing, displays, free samples, general stimulation of purchases

Question 65

demographic segmentation

Answer 65

similar characteristics

Question 66

institutional public relations

Answer 66

inform consumers of controversial issues in public's best interest & related to the company

Question 67

exchange price vs exchange rate

Answer 67

amount sellers and customers are willing to pay/accept vs rate of conversion of two currencies

Question 68

price skimming

Answer 68

setting prices high to recover intro costs

Question 69

penetration pricing

Answer 69

setting prices low to achieve rapid market development during intro stage

Question 70

cease and desist order

Answer 70

stop running an ad

Question 71

business cycle

Answer 71

contraction & expansion

Question 72

credit

Answer 72

purchase now, pay later

Question 73

business sustainability

Answer 73

maximize long term profitability

Question 74

accounts receivable

Answer 74

expenses, money received, money owed

Question 75

primary data

Answer 75

solve specific problems

Question 76

touchpoint

Answer 76

company connects with customers

Question 77

certificates of deposit

Answer 77

savings certificates

Question 78

money orders

Answer 78

used as checks

Question 79

Phishing

Answer 79

occurs when a scammer sends out an email pretending to be a legitimate company