Competency-Based

Competitive Events
*Written Exam*
for State/Province Use

Test Number 1290

Booklet Number _____

Marketing Cluster Exam

AAM – Apparel and Accessories Marketing Series Event
ASM – Automotive Services Marketing Series Event
BSM – Business Services Marketing Series Event
BTDM – Buying and Merchandising Team Decision Making Event
FMS – Food Marketing Series Event
IMCE – Integrated Marketing Campaign–Event
IMCP – Integrated Marketing Campaign–Product
IMCS – Integrated Marketing Campaign–Service
MCS – Marketing Communications Series Event
MTDM – Marketing Management Team Decision Making Event
PSE – Professional Selling Event
RMS – Retail Merchandising Series Event
SEM – Sports and Entertainment Marketing Series Event
STDM – Sports and Entertainment Marketing Team Decision Making Event

INSTRUCTIONS: This is a timed, comprehensive exam for the occupational area

identified above. Do not open this booklet until instructed to do so by the
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Bank and represent a variety of instructional areas. Performance indicators for this exam are at the
prerequisite, career-sustaining, and specialist levels. A descriptive test key, including question sources
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Test 1290 MARKETING CLUSTER EXAM 1

1. When a business presents an item to the marketplace by emphasizing its economic value, the business is
positioning the product on the basis of its
A. features.
B. price.
C. competitors.
D. benefits.

2. Which of the following sample designs is similar to “drawing names out of a hat”:
A. Simple random sampling
B. Systematic random sampling
C. Stratified random sampling
D. Cluster sampling

3. The most common grades of eggs found in supermarkets are grades

A. AAA, AA, and A.
B. AA and B.
C. A, B, and C.
D. AA and A.

4. It is usually most effective for goals to be phrased in __________ terms.

A. complex
B. simple
C. general
D. specific

5. Researchers are studying a company's past sales invoices as part of their current marketing research project.
The sales invoices are examples of
A. units of analysis.
B. primary data.
C. secondary data.
D. relevant variables.

6. The owner of a business in a small town is considering moving to a nearby larger city but is concerned that
current customers will not travel the additional 50 miles. What marketing element is involved in this situation?
A. Promotion
B. Place
C. Product
D. Price

7. Some large retailers have successfully integrated information sharing between channel members by
incorporating __________ between suppliers, warehouse, and store checkout.
A. bar codes and PLUs
B. outsourcing and EDI
C. PLUs and invoices
D. bar codes and EDI

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM 2

8. What is wrong with a survey question that asks, “How would you rate our customer service and product
quality?”
A. It asks respondents to assess two different topics at the same time.
B. It influences the respondent's answer by inserting an opinion.
C. It uses unfamiliar terminology that could confuse respondents.
D. It is an open-ended question that limits the respondent's answer.

9. Rent, salaries, and advertising are all examples of

A. fixed costs.
B. cost of goods sold.
C. variable costs.
D. operating expenses.

10. You are a marketing-research specialist for a company and have been asked to develop ideas for a new
product that the company might produce. To compile age, income, and geographic information on possible
customers, you should obtain
A. primary data from marketing-research companies.
B. primary data from industry organizations.
C. secondary data from government agencies.
D. secondary data from company sales records.

11. Salespeople may risk losing a sale to a potential customer if they are unable to explain a business's
__________ policies.
A. employee
B. operating
C. purchasing
D. selling

12. When Aaron receives what looks like an email from his bank asking him to verify his account information, he
replies with his account number, phone number, and social security number. However, Aaron soon finds out
that the email wasn't from his bank at all—it was from a scammer. Aaron is the victim of
A. a computer virus.
B. a break-in.
C. phishing.
D. key logging.

13. Which of the following are primary ethical factors that a business considers when changing its products'
packaging:
A. Environmental issues
B. Market dominance
C. Color and quality
D. Pricing objectives

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM 3

14. To build collaborative relationships with coworkers, it is necessary for each person to
A. change their personal opinions.
B. be willing to share information.
C. possess the same skills and attitudes.
D. develop a competitive spirit.

15. Massimo's Corner Grocery sells a variety of fruits and vegetables to consumers within the community.
Massimo's is considered a(n)
A. producer.
B. agent.
C. wholesaler.
D. retailer.

16. Jerry walks into his first job interview with his resume and job application. He is wearing jeans, a T-shirt, and a
baseball cap. Jerry had the skills and background necessary for the job but did not get the job. Which of the
following concepts should Jerry consider for his next interview:
A. Additional paperwork such as references and cover letters are required at job interviews.
B. Appearance is critical in the workplace.
C. Researching a workplace before the interview is crucial.
D. Personal appearance does not always reflect a person's attitude.

17. Why should a brand name be distinctive?

A. So that it can be used in multinational marketing
B. So that it can easily be changed over time
C. So that it gives the product a generic image
D. So that it sets the product apart from other products

18. A business might have an excess of goods available for sale if it fails to gather marketing information and
makes decisions using the __________ approach to marketing.
A. low-priced
B. short-term
C. best-guess
D. data-based

19. The Power Good Company is attempting to project how much profit its brand new product is likely to generate.
What is the company doing?
A. Generating facts
B. Making estimates
C. Building data sets
D. Making predictions

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM 4

20. Naomi's company purchases property for the location of a new motorcycle dealership. A month later, she runs
the numbers again and discovers it doesn't make financial sense to open a new store. She convinces herself
that the new location will bring in plenty of money and that the company shouldn't worry. Naomi's decision-
making is affected by
A. obedience to authority.
B. loss aversion.
C. incrementalism.
D. sunk costs.

21. Which of the following demonstrates responsible behavior on the part of employees:
A. Being cooperative with coworkers
B. Letting others take the blame for their mistakes
C. Scheduling long meetings
D. Performing pleasant tasks first

22. Which of the following is the best place to start looking for data about competitors:
A. The company's internal records
B. The company's call reports
C. The company's website
D. The local newspaper

23. When preparing her tax return, Lynnette listed the interest that she paid on her student loan as
A. investment income.
B. an itemized deduction.
C. a tax-exempt investment.
D. taxable earnings.

24. Tonia was just hired as an assistant brand manager at Drake Goodwin. She is amazed at the fast-pace of the
office. Everyone looks very busy, especially her supervisor. This morning when she arrived, there was a note
from her supervisor on her desk explaining what she should do today. After reading it several times, she thinks
she understands her assignment, but isn't positive. She can see her supervisor is busy on a phone call. What
should she do?
A. After her supervisor ends the call, ask her to clarify the instructions
B. Work on the task to the best of her ability
C. Work on a different task that she is comfortable doing
D. Ask a coworker to read the note and help her understand it

25. After a Korean auto manufacturer built a plant in Ames, Iowa, Kwan noticed a substantial growth of Korean
residents in the area, many of whom were relocated to Ames to work for the plant. Kwan decided to import
Korean goods and sell them in a small Korean specialty store near town. This is an example of a product
opportunity resulting from
A. shifts in population ethnicity.
B. advancements in technology.
C. differences in priorities.
D. changes in travel habits.

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM 5

26. If you take a positive approach toward others, you can expect to have
A. fewer friends.
B. more conflicts.
C. less competition.
D. better relationships.

27. What do businesses create to help answer the research problem?

A. Procedures
B. Objectives
C. Activities
D. Strategies

28. One way that a manufacturer can foster positive relationships with its channel members is by
A. encouraging a competitive culture.
B. using aggressive tactics.
C. selling directly to end users.
D. providing training programs.

29. For legal purposes, what should a business do when it collects marketing information from its online
customers?
A. Post its privacy policies on its website
B. Store the information at an insecure site
C. Purchase surge-protection insurance
D. Develop confidential selling strategies

30. The Federal Trade Commission protects consumers from high-pressure selling tactics by enforcing a regulation
that gives consumers a(n)
A. update on motor vehicle safety.
B. three-day cooling-off period.
C. list of harmful ingredients.
D. standard for prescription drug use.

31. Which of the following activities plays an important interactive role in securing client goodwill and patronage:
A. Managing
B. Selling
C. Promoting
D. Purchasing

32. Which of the following situations is an example of a nonresponse error:

A. Jenny coded a survey respondent's answer with the number two instead of the number three.
B. Ben found that the sample group was not representative of the target market.
C. Angela developed a written survey containing open-ended questions.
D. Tim did not answer the last two questions on a written survey.

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM 6

33. What is the primary goal of corporate promotion?

A. To sell a product
B. To publicize a service
C. To explain a specific feature
D. To create a certain image

34. Alyssa and Tyrone are working on a report together. They need to finish the report by Monday, but both of them
will be out of town for the weekend. What tool would best help Alyssa and Tyrone finish their assignment on
time without compromising teamwork?
A. A collaborative software application such as Google Docs
B. A single-user word-processing software such as Notepad
C. A multimedia presentation software application such as PowerPoint
D. A mathematical spreadsheet program such as Microsoft Excel

35. Why are Universal Product Codes (UPCs) often preprinted on products before the manufacturer ships the
products to the business?
A. To simplify the price-marking function
B. To reduce the possibility of theft
C. To improve the transportation system
D. To increase the product turnover rate

36. Warehousing and shipping methods are operations considerations related to

A. expense control.
B. maintenance needs.
C. logistics.
D. scheduling.

37. When examining a market, marketers primarily notice its

A. records.
B. merchants.
C. categories.
D. leaders.

38. Which of the following is a true statement about qualitative research:

A. It uses large samples of the population.
B. It is often conducted through experiments.
C. It is based on statistics and facts.
D. It is conducted during a short time frame.

39. Which of the following is a key subject that should be covered by a situation analysis:
A. Collaborators
B. Marketing objectives
C. Product strategy
D. Financial plans

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM 7

40. What are producers most likely to do if they decide their incomes are inadequate?
A. Continue to buy more resources
B. Choose not to make goods and services
C. Continue to increase production
D. Choose not to supply needed resources

41. Which of the following statements best describes the concept of customer relationship management (CRM) in
business:
A. Customizing a wide variety of goods and services that will encourage customers to continue buying from a
specific business
B. Obtaining and applying information about a customer's preferences and needs in ways that will build an
ongoing buyer/seller relationship
C. Using nonpersonal promotion to communicate product information to customers for the purpose of obtaining
repeat sales
D. Acquiring and manipulating external data to appeal to new market segments and gain market share from
the competition

42. A customer asked, "What ties would you suggest with this shirt?" The salesperson responded, "Let me show
you some that would look wonderful with it." The salesperson is demonstrating
A. boredom and indifference.
B. a negative attitude.
C. extensive product knowledge.
D. interest and enthusiasm.

43. The major reason why most employees lose their jobs is that they simply lack
A. technical knowledge.
B. the ability to get along well with others.
C. basic math and verbal skills.
D. the ability to carry out job tasks.

44. A disadvantage to a business of using traditional direct-mail advertising is that

A. the business has little control over who receives the message.
B. a direct-mail package can only be used once.
C. it cannot be used for soliciting repeat customers.
D. it can be expensive to produce and distribute.

45. Which of the following are examples of things that can be protected by a copyright:
A. Literary or musical works
B. Name or phrase
C. Symbol or design
D. Invention or process

46. Public relations efforts aimed at a company's own employees are often attempting to
A. maintain employee goodwill.
B. educate the public about the company.
C. take advantage of employees.
D. sell products and services.

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM 8

47. Which of the following factors helps determine if a manufacturer is illegally using closed sales territories for
distribution purposes:
A. Limited risk
B. Reduced competition
C. Increased intensity
D. Perishable goods

48. Which of the following is an external factor that affects the role of promotion in marketing:
A. The product to be promoted
B. Government regulations
C. The price of the product
D. Distribution of the product

49. Intermediate-range sales forecasts are used to

A. plan yearly budgets.
B. aid in scheduling.
C. make strategic plans.
D. aid in staffing.

50. Why is it necessary for a business to price its products very carefully?
A. To track competitors' activities
B. To get a fair share of the market
C. To attract employees to the business
D. To create goodwill in the community

51. If several countries implement tariffs on imports, global trade often decreases. To reduce the negative effects of
this form of trade protectionism, countries often negotiate
A. domestic subsidies.
B. trade agreements.
C. export limits.
D. import restrictions.

52. A common goal shared by labor and management is to

A. establish a labor organization.
B. keep the business operating smoothly and effectively.
C. increase the number of fringe benefits provided to employees.
D. pay workers maximum wages.

53. What is an effective data-collection method that provides accurate information about how people behave under
normal circumstances?
A. Experiment
B. Survey
C. Observation
D. Interview

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Test 1290 MARKETING CLUSTER EXAM 9

54. As an audience member, which of the following should you do to encourage a speaker during an oral
presentation?
A. Quietly discuss the speech with the person sitting next to you.
B. Keep a straight face to communicate that you are serious.
C. Refrain from asking questions.
D. Smile.

55. What kind of team would take full responsibility for an entire line of products?
A. Project team
B. Quality circle
C. Work team
D. Short-term committee

56. If a bank doubles its interest rates on loans, the demand for money will
A. decrease.
B. remain the same.
C. continue to increase.
D. double.

57. During the execution-and-monitoring stage of project management, the project manager's job is to
A. secure enough funding to complete the project.
B. assign roles to team members.
C. make sure the project stays on track.
D. deliver the project's final product.

58. The salesperson says, "Mrs. Jones, the Model 2XY upright vacuum cleaner has attachments that allow you to
remove dust from furniture, draperies, and ceiling fans. It also has a steamer that deep cleans carpets." This is
an example of a salesperson describing the product's
A. durability.
B. construction.
C. multiple uses.
D. unique style.

59. Which of the following is a stage of a product's life cycle:

A. Adolescence
B. Death
C. Birth
D. Maturity

60. A retailer buys a variety of toys from a number of different producers and makes them all available for sale in
the same place. The retailer is reducing a discrepancy of
A. quantity.
B. promotion.
C. installation.
D. assortment.

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM 10

61. Every year, the MXQ Company contacts its customers to verify their phone numbers, shipping and billing
information, and email addresses. The primary purpose of this activity is to
A. update the company's customer records.
B. establish goodwill through public relations.
C. achieve the company's sales quotas.
D. determine the customers' buying intentions.

62. A sporting goods manufacturer has spent $1 million on magazine advertising featuring well-known sports
figures. As a salesperson, how should you use these promotions during a sales presentation?
A. To build customer confidence
B. To prove the equipment is the best buy
C. To shorten the sales presentation
D. To forecast sales

63. Oreo's, Chips Ahoy, and Teddy Grahams are all cookies produced by Nabisco. The cookies are an example of
a product
A. mix.
B. assortment.
C. item.
D. line.

64. The Sandlot Company promotes its products to intermediaries who then promote the products to customers.
The Sandlot Company is using a(n) __________ promotional strategy.
A. push
B. pull
C. increasing
D. decreasing

65. What is an advantage in using the internet to promote products?

A. Reduces businesses' need to use traditional publicity efforts
B. Increases businesses' annual sales volume by 10%
C. Enables tracking of users' viewing and purchasing habits
D. Creates a loyal customer base for businesses.

66. What is an ethical issue that affects the promotional efforts of many businesses?
A. Children's advertising
B. Brand positioning
C. Integrated marketing
D. Personal selling

67. What is a regulatory factor that affects promotion on an international level?

A. Culture of specific countries
B. Cost of media placement
C. Types of products being advertised
D. Price of comparable products

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM 11

68. A sample indicates that the average income in the northwest region is $31,257. This is an example of
__________ statistical information.
A. descriptive
B. unilateral
C. multivariate
D. sequential

69. Salespeople offer solutions to customers' needs by demonstrating their products and encouraging customers to
__________ the products.
A. handle
B. approve
C. admire
D. watch

70. Abdul is in the market for an engagement ring. When he decides on the ring he would like to purchase, the
salesperson informs him of the company's lifetime warranty on engagement rings. Abdul decides to opt in for
the warranty and signs a written contract. This is an example of a(n)
A. implied warranty.
B. express warranty.
C. strategy.
D. guarantee.

71. What is an example of an amplified word-of-mouth strategy?

A. A customer shares their opinion of a new product with a friend.
B. A company asks customers to share product reviews on a website.
C. Fans share the release date for a new product on Facebook.
D. Customers post comments about a company on Instagram.

72. Which of the following is a belief that is necessary to be assertive:

A. I have the right to express my feelings any way I choose.
B. I should avoid asking other people for help.
C. I am worthy of my own respect and the respect of others.
D. I should try to agree with everyone.

73. When determining personal net worth, how are personal liabilities handled?
A. They have to be eliminated first.
B. They are not used in the calculations.
C. They are subtracted from the net worth subtotal.
D. They are subtracted from the total of assets.

74. Which of the following is a characteristic of a persuasive sales message:

A. Discredits the competition
B. Reminds customer of the product
C. Contains loaded language
D. Makes the product appealing

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Test 1290 MARKETING CLUSTER EXAM 12

75. To be reimbursed for business expenses, Luke must obtain and complete an expense-reimbursement form,
attach the original transaction receipts to the completed form, and submit the documentation to his manager for
approval. What is Luke doing?
A. Evaluating company feedback
B. Assessing company guidelines
C. Following company procedures
D. Developing company policies

76. What should employees do after interacting with each customer?

A. Take a short rest break
B. Talk to the manager about the customer
C. Thank the customer for coming
D. Prepare a sales report

77. Determine whether the following statement is true or false: Identifying the reason the business needs to do
marketing research is the easiest step in the marketing research process.
A. True; identifying the reason for the research is an easy and inexpensive step.
B. True; this step is easy because businesses know what their research needs are.
C. False; outside experts must be hired to identify the reason for the research.
D. False; identifying the real reason for the research can be a very difficult step.

78. Which of the following statements regarding corporate branding is true:

A. A business's core values identify the beliefs that the business stands for.
B. Brand cues are used primarily to identify the company in its advertising.
C. Customer service representatives are responsible for corporate branding.
D. Customer touch points typically occur before sales transactions.

79. Ollie is designing a magazine ad, and he wants to draw attention to one main feature. To do so, Ollie should
A. use white space.
B. keep his audience in mind.
C. change fonts often.
D. avoid clashing colors.

80. What barrier to creativity is being described in the following situation: "We've been working around the clock for
weeks to meet the deadline on our project. It's getting harder and harder to come up with new ideas."
A. Need to be right the first time
B. Criticism
C. Stress
D. Limiting code of behavior

81. A business might be involved in the illegal activity of deceptive pricing if it

A. changes prices according to current demand.
B. offers special prices on a discontinued item.
C. misleads customers about the true value of a product.
D. sells products at a limited number of predetermined price points.

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM 13

82. The electric grinder you use to grind castings has an on-off switch that does not work properly. You feel that the
tool is unsafe and should be repaired. What should you do?
A. Ask a coworker for help.
B. Report it to your supervisor.
C. Attempt to fix it yourself.
D. Use it until the switch no longer works.

83. Your store is purchasing a new display case. Which type of newspaper advertisement would be most
appropriate to use to sell the old display case?
A. Special advertising
B. Classified advertising
C. Classified display advertising
D. Display advertising

84. Telling a brand story is important because it

A. is a fun activity for the company.
B. is entertaining for customers.
C. connects the brand with customers.
D. eliminates the need for a corporate brand.

85. Identify the type of product utility being described in the following situation: A retail store decides to locate in a
suburban shopping center.
A. Possession
B. Place
C. Time
D. Form

86. Which of the following is a marketing activity that a business should coordinate with distribution to successfully
sell its product:
A. Production
B. Promotion
C. Training
D. Operations

87. Which of the following examples illustrates the use of the cause and effect method of formatting for structuring
oral presentations:
A. We will discuss the basic steps used in developing effective time management techniques, and the first step
is to prioritize all of your commitments.
B. Monet and Cezanne were both impressionist artists; however, their painting techniques and use of color
differed greatly.
C. The use of toxic chemicals in the environment can result in the extinction of many species of waterfowl.
D. The public supports increased spending on national security, and a survey reports that over 70% of the
citizens fear future terrorist attacks.

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Test 1290 MARKETING CLUSTER EXAM 14

88. Which of the following is a result of evaluating vendor performance:

A. More defects in the supply chain
B. Fewer opportunities for communication
C. Less cooperation from the vendor
D. Better overall risk management

89. Businesses are being socially responsible to their customers when they
A. provide safe working environments.
B. contribute to community causes.
C. offer employees job training.
D. test the safety of their products.

90. Which of the following is an ongoing population trend that affects how businesses market their goods and
services:
A. Migration
B. Lifestyle
C. Consumption
D. Behavior

91. Being able to put yourself in another person's place means that you have
A. perspective.
B. respect.
C. understanding.
D. empathy.

92. During what phase of a product's life cycle is a business most likely to develop advertising campaigns to remind
customers about the product or promote features added to the product?
A. Obsolescence
B. Introduction
C. Maturity
D. Decline

93. One advantage to businesses using electronic funds transfer technology to collect accounts receivable is that it
eliminates
A. payee outsourcing.
B. check processing.
C. liquidity reporting.
D. sales discounting.

94. Von is a very thorough record keeper. He always carefully files his company's bills, receipts, and cancelled
checks because he knows that the company has a responsibility to prove the expenses it lists on its tax return.
Von's company bears a
A. tax return proof.
B. burden of proof.
C. responsibility to prove.
D. record burden.

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Test 1290 MARKETING CLUSTER EXAM 15

95. To outdo competitors, a company may choose air freight to distribute its products. Which of the four P's of
marketing is affecting the product's price?
A. Packaging
B. Place
C. Promotion
D. Product

96. Which marketing career is usually in charge of writing press releases?

A. Marketing operations
B. Customer service
C. Marketing research
D. Public relations

97. Customers' service expectations are

A. based on past experiences.
B. not affected by advertising.
C. one size fits all.
D. dependent on the needs of others.

98. Which of the following is an example of a product being sold to an organization for resale:
A. A potter sells pottery at a flea market.
B. A retailer sells a small refrigerator to a coffee shop.
C. A wholesaler sells candy to a concession stand.
D. A farmer sells produce to a restaurant.

99. Why are some business professionals reluctant to generate new product ideas?
A. They are afraid of risk.
B. They like to explore.
C. They are lateral thinkers.
D. They think "outside the box."

100. When processing marketing information, assigning numeric value to different responses or types of data is
known as
A. interpreting.
B. formulating.
C. editing.
D. coding.

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

KEY
Test Number 1290

Marketing Cluster Exam

AAM – Apparel and Accessories Marketing Series Event
ASM – Automotive Services Marketing Series Event
BSM – Business Services Marketing Series Event
BTDM – Buying and Merchandising Team Decision Making Event
FMS – Food Marketing Series Event
IMCE – Integrated Marketing Campaign–Event
IMCP – Integrated Marketing Campaign–Product
IMCS – Integrated Marketing Campaign–Service
MCS – Marketing Communications Series Event
MTDM – Marketing Management Team Decision Making Event
PSE – Professional Selling Event
RMS – Retail Merchandising Series Event
SEM – Sports and Entertainment Marketing Series Event
STDM – Sports and Entertainment Marketing Team Decision Making Event

CAUTION: Posting these materials on a website is a copyright violation.

This comprehensive exam was developed by MBA Research exclusively for DECA’s 2023-2024
Competitive Events Program. Items have been randomly selected from the MBA Research Test-Item
Bank and represent a variety of instructional areas. Performance indicators for this exam are at the
prerequisite, career-sustaining, and specialist levels. A descriptive test key, including question sources
and answer rationale, has been provided to the DECA chartered association advisor.

Copyright © 2024 by Marketing & Business Administration Research and Curriculum

Center®, Columbus, Ohio (dba MBA Research). Each individual test item contained herein is the exclusive
property of MBA Research. Items are licensed to DECA only for use as configured within this exam, in its
entirety. Use of individual items for any purpose other than as specifically authorized is prohibited.
Possession of this exam, without written authorization, under any other circumstances is a
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Test 1290 MARKETING CLUSTER EXAM—KEY 1

1. B
Price. Product positioning is the customer's image or impression of a product as compared to that of competitive
products. For example, the Ford Focus (automobile) is positioned to emphasize the car's ability to provide
customers with a mode of transportation at a relatively low price. Benefits are the advantages that the customer
receives from using the product. Features are the product's attributes or characteristics. A business competitor
is a rival business that seeks to attract the same scarce customer dollars. Some businesses position their
products to compete with similar products offered by other (rival) businesses.
SOURCE: PM:042 Describe factors used by marketers to position products/services
SOURCE: Landman, P. (2022). Price positioning. Retrieved September 18, 2023, from
https://www.xotels.com/en/glossary/price-positioning

2. A
Simple random sampling. Simple random sampling is a probability sampling method in which every sampling
unit has a known and equal chance of being selected--akin to drawing names out of a hat. Stratified random
sampling is a probability sampling method in which researchers break the target population down into non-
overlapping groups and draw simple random samples from each one. Cluster sampling is a probability sampling
method in which researchers divide the target population into non-overlapping sub-populations that are
determined by geography and then randomly sample each one. Systematic random sampling is a probability
sampling method in which researchers place sampling units into a random list and draw a sample using a skip
interval.
SOURCE: IM:285 Discuss the nature of sampling plans (i.e., who, how many, how chosen)
SOURCE: LAP-IM-285--Take Your Pick (Nature of Sampling Plans)

3. D
AA and A. Eggs are graded according to their quality. The top grades are AA and A, which are suitable for
cooking in several different ways. Grade B is the next level of quality, and B-grade eggs would be suitable for
baking or general cooking. There is no AAA grade, and grade C is not usually sold by retailers.
SOURCE: PM:019 Describe the uses of grades and standards in marketing
SOURCE: LAP-PM-019--Raise the Bar (Grades and Standards)

4. D
Specific. Goals should be as specific as possible, not stated in general terms. A time limit should be set for
achieving the goals. These guidelines apply to both simple and complex goals.
SOURCE: PD:018 Set personal goals
SOURCE: LAP-PD-918--Go for the Goal (Goal Setting)

5. C
Secondary data. The sales invoices are examples of secondary data, or facts, figures, and statistics that
already exist and have been used for purposes other than the marketing research study. Primary data are new
facts, figures, or statistics gathered for the specific marketing research project being conducted. Relevant
variables are the types of information studied in a marketing research project (e.g., brand awareness, customer
satisfaction). Units of analysis are the entities or elements that are being studied in market research (e.g.,
individual, household).
SOURCE: IM:282 Discuss the nature of marketing research problems/issues
SOURCE: LAP-IM-282--What's the Problem? (Marketing Research Problems)

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Test 1290 MARKETING CLUSTER EXAM—KEY 2

6. B
Place. The place, or distribution, element of marketing involves moving, storing, locating, and/or transferring
ownership of goods and services. Making products available where customers are willing to go is also a
concern of place. Price involves determining and adjusting prices to maximize return and meet customers'
perceptions of value. Product refers to what goods, services, or ideas will be offered to customers. Promotion
refers to the various strategies that marketers use to communicate information about goods, services, images,
and/or ideas to achieve a desired outcome.
SOURCE: MP:001 Explain the concept of marketing strategies
SOURCE: LAP-MP-001--Pick the Mix (Nature of Marketing Strategies)

7. D
Bar codes and EDI. Bar codes are a way of marking products that allows for electronic data interchange (EDI).
This is an example of integrated information sharing that has advanced most areas of physical distribution.
Merchandise information stored on the magnetic bar code is used for pricing, inventory control, reordering,
market research, etc. PLUs or price look-ups are codes assigned to merchandise that typically changes price
frequently. The number is entered into the checkout system and the assigned price ID rung. Outsourcing
requires an outside business to complete a specified task.
SOURCE: CM:004 Describe the use of technology in the channel management function
SOURCE: Transalis. (2023, April 6). 50 years of the barcode: How EDI advances business
automation. Retrieved September 18, 2023, from https://www.transalis.com/blogs/industry-news-
and-updates/50-years-of-the-barcode-how-edi-advances-business-automation

8. A
It asks respondents to assess two different topics at the same time. The survey question "How would you rate
our customer service and product quality?" is an example of a double-barreled question, which requests a
single answer for two different topics (customer service and product quality). It is not an open-ended question
limiting the respondent's answer. The survey question does not insert an opinion or use unfamiliar terminology.
SOURCE: IM:293 Evaluate questionnaire design (e.g., types of questions, question wording, routing,
sequencing, length, layout)
SOURCE: SurveyMonkey. (1999-2023). Best practices for writing good survey and poll questions. Retrieved
September 18, 2023, from https://www.surveymonkey.com/mp/writing-survey-questions

9. D
Operating expenses. Operating expenses are the costs of running a business. They may be variable or fixed
but do not include the costs of items purchased for resale, or the cost of goods sold. Fixed costs are business
costs that are not affected by changes in sales volume. An example is rent. Variable costs are business costs
that change according to changes in sales volume. An example would be increased salary expense due to the
hiring of more salespeople.
SOURCE: OP:024 Explain the nature of overhead/operating costs
SOURCE: Kenton, W. (2023, August 24). Operating expense (OpEx) definition and examples. Retrieved
September 18, 2023, from https://www.investopedia.com/terms/o/operating_expense.asp

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Test 1290 MARKETING CLUSTER EXAM—KEY 3

10. C
Secondary data from government agencies. Secondary data are information that have been collected for
purposes other than the project at hand. Government agencies are a good source of secondary data because
they compile extensive information on the general public, including median age and income statistics in
geographic areas throughout the country. Company sales records would not contain age, income, and
geographic information on customers. Information from marketing-research companies and industry
organizations is considered to be secondary data rather than primary data.
SOURCE: IM:001 Explain the nature and scope of the marketing-information management function
SOURCE: LAP-IM-001--Get the Facts Straight (Marketing-Information Management)

11. D
Selling. Selling policies are general rules established by management to guide the personal selling effort and
outline how things must be done. Salespeople may encounter problems when they are not knowledgeable
about their company's selling policies and are unable to explain them to potential customers. Salespeople may
risk losing a sale if they are unable to explain policies about issues such as credit terms and delivery service.
Operating policies regulate the actual running of a business. Employee policies are guidelines explaining how
employees are to act and how they are to deal with customers. Purchasing policies are guidelines that direct
purchasing decisions.
SOURCE: SE:932 Explain company selling policies
SOURCE: LAP-SE-932--Sell Right (Selling Policies)

12. C
Phishing. Phishing occurs when an email that appears to be from a reputable source (like your bank, a store, a
credit card company, or an online auction site) is actually from a scam artist. The email might ask for personal
information like account numbers, which the scammer is likely to use to access the victim's funds. Key loggers
record your keystrokes, enabling someone to record your passwords and account numbers as you type them.
Aaron is not the victim of key logging, a break-in, or a computer virus.
SOURCE: FI:073 Protect against identity theft
SOURCE: O'Shea, B. (2023, February 7). Identity theft: What it is, how to prevent it, warning signs and tips.
Retrieved September 18, 2023, from https://www.nerdwallet.com/article/finance/how-to-prevent-
identity-theft

13. A
Environmental issues. Discarded product packaging--boxes, cans, bottles, and wrapping--eventually go to
landfills and dumping grounds, which negatively affect the natural environment. An ethical business will try to
develop recyclable and/or biodegradable packaging to reduce damage to the environment. Market dominance,
color, quality, and pricing objectives are not primary ethical factors that a business considers when changing its
products' packaging.
SOURCE: PM:040 Explain business ethics in product/service management
SOURCE: LAP-PM-040--Safe and Sound (Ethics in Product/Service Management)

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Test 1290 MARKETING CLUSTER EXAM—KEY 4

14. B
Be willing to share information. Collaboration involves working together in a cooperative manner. It requires
honesty, trust, and a willingness to share information to accomplish common goals. It is not necessary for
people to possess the same skills and attitudes or to change their values or opinions to effectively collaborate.
An overly competitive attitude may hinder collaboration because people may become more interested in their
own agendas rather than focusing on the group's goals.
SOURCE: EI:061 Maintain collaborative partnerships with colleagues
SOURCE: Herrity, J. (2023, March 10). 8 ways to build strong relationships in the workplace. Retrieved
September 18, 2023, from https://www.indeed.com/career-advice/career-development/how-to-build-
relationships

15. D
Retailer. A retailer is a business that buys goods and sells them to the final consumer. Wholesalers are
intermediaries who buy goods from producers or agents and resell them to other businesses. Agents are
intermediaries who assist in the sale of goods but do not take title to them. Producers are growers, providers, or
manufacturers of goods and services.
SOURCE: CM:003 Explain the nature of channels of distribution
SOURCE: LAP-CM-003--Channel It (Channels of Distribution)

16. B
Appearance is critical in the workplace. Employers often judge potential employees based on first impressions.
You can expect an interviewer to examine your personal appearance carefully and to interpret it as an indicator
of the way you might perform on the job. Researching a workplace and bringing appropriate paperwork to the
interview are important but may not be significant if a negative first impression is given. Personal appearance
does not always reflect a person's attitude, but one must assume that the appearance of your clothing will help
determine whether the interview would be a waste of the employer's time.
SOURCE: PD:002 Maintain appropriate personal appearance
SOURCE: LAP-PD-002--Brand Me (Personal Appearance)

17. D
So that it sets the product apart from other products. The brand name should not be too common or too similar
to those used by competitors. It should be appropriate and even clever, if possible. A brand name's adaptability
makes it useable in multinational marketing and prevents it from needing to be changed over time. A distinctive
brand name gives the product a specific image, not a generic image.
SOURCE: PM:021 Explain the nature of product/service branding
SOURCE: LAP-PM-021--It's a Brand, Brand, Brand World! (Nature of Product Branding)

18. C
Best-guess. The information gathered through the marketing-information management function enables
business owners and managers to make informed decisions about what to sell and to whom to sell, rather than
relying on a "best-guess" approach to marketing. Without the data from marketing-information management,
businesspeople can only guess at what and how much to offer for sale. An incorrect guess could leave
businesses with excess goods that no one wants to buy. The low-priced approach involves selling goods at low
prices. The short-term approach involves making decisions to solve immediate problems. The data-based
approach involves relying on research and information to make decisions.
SOURCE: MK:002 Describe marketing functions and related activities
SOURCE: LAP-MK-002--Work the Big Seven (Marketing Functions)

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Test 1290 MARKETING CLUSTER EXAM—KEY 5

19. B
Making estimates. Estimates are approximations of data--or put more simply, educated guesses. Since the
product is brand new, the company doesn't have any past sales on which to base its projection. Instead, it has
to formulate its best guess for how much profit the product will generate. A prediction is based on past sales
and current market data. Facts are data that can be verified. Because the product is new, there is no way data
can be verified for it. Data sets may be the foundation for estimates or predictions, but there's no indication that
the business in this situation is building data sets.
SOURCE: IM:012 Describe the need for marketing data
SOURCE: LAP-IM-012--Data Do It (Need for Marketing Data)

20. D
Sunk costs. Sunk costs are costs that have already been incurred and thus cannot be recovered. If you have
already invested in something, it is difficult to admit that it was not the right decision, especially when there is
nothing you can do about it. Loss aversion is the tendency to avoid a loss at all costs, even when attempting to
avoid that loss can lead to negative consequences. Obedience to authority refers to the natural tendency to
want to please authority figures. Incrementalism refers to the diminishing of ethical values over time.
SOURCE: FI:355 Discuss the role of ethics in finance
SOURCE: LAP-FI-355--Money Morals (The Role of Ethics in Finance)

21. A
Being cooperative with coworkers. Responsible workers work cooperatively with others and do not create
problems for them. They also take the blame for their own mistakes. Performing pleasant tasks before
unpleasant ones and scheduling long meetings are not characteristics of responsible behavior.
SOURCE: EI:021 Demonstrate responsible behavior
SOURCE: LAP-EI-021--Make the Honor Role (Acting Responsibly)

22. C
The company's website. Finding data about competitors can be difficult. The best place to start looking is
usually the “Investors” section of the company's website. You would not have access to the company's internal
records or call reports. You may or may not find useful data in the local newspaper.
SOURCE: IM:184 Identify data monitored for marketing decision making
SOURCE: LAP-IM-184--Data Diving (Identifying Marketing Data)

23. B
An itemized deduction. The government allows taxpayers to itemize or list certain expenses on their tax returns
to reduce the amount of taxable income. These expenses include charitable donations, a percentage of medical
expenses, business expenses, and interest paid on some types of loans. Investment earnings, such as dividend
payments, are taxable income. The federal government does not tax certain types of investments, such as
municipal bonds.
SOURCE: FI:074 Prepare personal income tax forms
SOURCE: IRS. (2023, April 6). Topic number 456, student loan interest deduction. Retrieved September 19,
2023, from https://www.irs.gov/taxtopics/tc456

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Test 1290 MARKETING CLUSTER EXAM—KEY 6

24. A
After her supervisor ends the call, ask her to clarify the instructions. It is always best to get clarification straight
from the source of the information. Most supervisors will appreciate an employee who knows how to collect
facts and then do a job well instead of an employee who guesses and then wastes time completing the wrong
thing. Asking a coworker may lead to an incorrect guess as well. Proceeding without clarification may lead to
time and effort wasted. Working on something else means that Tonia ignored her supervisor's wishes for the
tasks to be done today.
SOURCE: PD:020 Analyze employer expectations in the business environment
SOURCE: Atkins, I. (2023, July 31). Setting clear expectations for employees. Retrieved September 18, 2023,
from https://www.businessnewsdaily.com/9451-clear-employee-expectations.html

25. A
Shifts in population ethnicity. A product opportunity is a favorable circumstance that presents itself to provide a
good or service that customers are willing to buy. Kwan discovered a product opportunity to sell Korean goods
when a Korean plant built and relocated Korean workers in his community. Because the number of Korean
residents increased, the community experienced changes or shifts in population ethnicity. Kwan's store is a way
to meet the unfulfilled needs of a very specific market. The example is not a product opportunity resulting from
changes in travel habits, differences in priorities, or advancements in technology.
SOURCE: PM:134 Identify product opportunities
SOURCE: Kelley, K. (2023, March 14). Understanding your customers: How demographics and psychographics
can help. Retrieved September 18, 2023, from https://extension.psu.edu/understanding-your-
customers-how-demographics-and-psychographics-can-help

26. D
Better relationships. Positive people usually have better personal relationships than others because they are
cheerful, kind, considerate, and interested in others. This means they have many friends, which makes their
lives richer. Being positive does not necessarily increase the number of conflicts they encounter or reduce the
amount of competition.
SOURCE: EI:019 Exhibit a positive attitude
SOURCE: LAP-EI-003--Opt for Optimism (Positive Attitude)

27. B
Objectives. There is a strong relationship between the research purpose and the research objectives, which are
the goals of the research. Businesses create research objectives to help answer the research problem. For
example, if the problem is service, one objective might be to determine customer satisfaction with delivery.
Strategies are plans of action, or activities, for achieving goals and objectives. A procedure is the step-by-step
process personnel follow in performing a specific task.
SOURCE: IM:284 Describe methods used to design marketing research studies (i.e., descriptive, exploratory,
and causal)
SOURCE: Indeed. (2023, February 16). Research objectives: Definition and how to write them. Retrieved
September 18, 2023, from https://www.indeed.com/career-advice/career-development/research-
objectives

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM—KEY 7

28. D
Providing training programs. Positive channel relationships require collaboration among channel members.
Collaboration involves sharing relevant information, setting mutually beneficial goals, and developing a team-
oriented attitude. Channel leaders have the most power or leverage in the channel, and can implement tactics
to foster positive relationships. Providing channel members with product training programs helps channel
members be successful in selling the products. Encouraging a competitive culture among channel members,
using aggressive tactics, and selling directly to end users are more likely to create conflict and have a negative
impact on channel relationships.
SOURCE: CM:008 Explain the nature of channel-member relationships
SOURCE: Magentrix Corporation. (2018, March 20). PRM 101: Training and certification. Retrieved September
18, 2023, from https://www.magentrix.com/articles/blog/Partner-Relationship-Management-101-1-19-
3-2018

29. A
Post its privacy policies on its website. Privacy policies are a business's guidelines about how it maintains and
uses its customers' information such as credit, purchasing habits, and addresses. To protect consumers'
privacy, governments often legislate how businesses can obtain and use customer information. Jurisdiction
refers to the authority (e.g., location, subject matter) a court has to resolve a legal issue. For example, one
state, province, or country may require a business to disclose to customers that it allows third parties access to
certain customer information, while another state, province, or country may not have the same law. Therefore,
businesses should post their privacy policies on their websites to reduce the risk of lawsuits that may be
initiated by customers in other jurisdictions. Storing information at an unsafe site is a poor business practice and
may be grounds for a lawsuit in some jurisdictions. A surge protector is a device that individuals and businesses
use to prevent excessive bursts of electricity from damaging computers. Some insurance companies provide
businesses with insurance to cover losses associated with power surges. Selling strategies are the plans of
action for the selling function, which do not always affect consumers' privacy.
SOURCE: IM:419 Describe the regulation of marketing-information management
SOURCE: Pegarella, S. (2019, July 16). Privacy policies are mandatory by law. Retrieved September 18, 2023,
from https://www.termsfeed.com/blog/privacy-policy-mandatory-law

30. B
Three-day cooling-off period. The Federal Trade Commission enforces a regulation that gives consumers a
three-day cooling-off period after signing a purchase contract for consumer goods or services. Consumers
cannot be penalized by the seller for canceling a contract within the three-day period. This protects consumers
from their own hasty decisions or from high-pressure selling tactics that have influenced them. The Consumer
Product Safety Commission requires businesses to list harmful ingredients. The National Highway Traffic Safety
Administration provides updates on motor vehicle safety. The Food and Drug Administration issues standards
for prescription drug use.
SOURCE: PM:017 Identify consumer protection provisions of appropriate agencies
SOURCE: LAP-PM-007--Protect and Serve (Consumer Protection)

31. B
Selling. Selling activities involve approaching the prospective customer and attempting to make a sale. Through
these important interactive activities, salespeople build rapport with customers, thereby building goodwill for the
business and solidifying customer/client relationships. None of the other alternatives involves regular interaction
with customers. Promoting involves informing customers about goods and services. Managing is the process of
coordinating resources to accomplish an organization's goals. Purchasing is the planning and procedures
necessary to obtain goods and services for resale.
SOURCE: SE:828 Explain key factors in building a clientele
SOURCE: LAP-SE-828--Keep Them Loyal (Key Factors in Building Clientele)

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM—KEY 8

32. D
Tim did not answer the last two questions on a written survey. Nonresponse errors occur when respondents do
not answer a question or complete a survey. These errors may affect the quality of the overall data and the
analysis process. Because Tim didn't answer two questions on a survey, a nonresponse error occurred. Errors
may be intentional or unintentional. For example, a respondent might refuse to answer a question because they
believe it is too personal, while another respondent might not answer a question because they did not see it.
Incorrect coding is an editing error. When a sample group is not representative of the target market, a
procedural error occurs. Developing open-ended survey questions does not indicate a nonresponse error.
SOURCE: IM:292 Identify sources of error in a research project (e.g., response errors, interviewer errors, non-
response errors, sample design)
SOURCE: Statistics Canada. (2021, September 9). 3.5.3 Non-sampling error. Retrieved September 18, 2023,
from https://www150.statcan.gc.ca/n1/edu/power-pouvoir/ch6/nse-endae/5214806-eng.htm

33. D
To create a certain image. The primary goal of corporate promotion is to create a certain image of the company
in the eyes of the consumer. This is accomplished by informing consumers about the company, its ideas, and
its philosophy. Unlike product promotion, institutional or corporate promotion does not attempt to sell a good or
service. The goal of corporate promotion is not to explain a specific feature.
SOURCE: PR:002 Explain the types of promotion (i.e., institutional, product)
SOURCE: LAP-PR-902--Know Your Options (Product and Institutional Promotion)

34. A
A collaborative software application such as Google Docs. Collaborative groupware applications such as
Google Docs can help teams work together in real time, even if group members are in different locations.
Collaborative software would likely be Alyssa and Tyrone's best choice for completing their report by Monday
without sacrificing teamwork. Notepad, PowerPoint, and Excel would not necessarily help them work on their
report together in real time.
SOURCE: NF:011 Demonstrate collaborative/groupware applications
SOURCE: Fisher, S. (2018, July 18). Your guide to collaborative document editing with Google Docs. Retrieved
September 18, 2023, from https://www.mojomedialabs.com/blog/your-guide-to-collaborative-
document-editing-with-google-docs

35. A
To simplify the price-marking function. The Universal Product Code (UPC) label is encoded with product
information such as price, brand, size, etc., to be read by an electronic scanner. Technology allows
manufacturers to preprint this data on packages before shipping them to businesses. The preprinted data
simplify the price-marking function because the business does not need to mark a price on each product. The
UPC data contain the necessary pricing information. Preprinting UPCs on products does not increase the
product turnover rate, reduce the possibility of theft, or improve the transportation system.
SOURCE: PI:016 Explain the use of technology in the pricing function
SOURCE: GSI. (2023). Guide to UPC codes. Retrieved September 18, 2023, from https://www.gs1us.org/upcs-
barcodes-prefixes/guide-to-upcs

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM—KEY 9

36. C
Logistics. Operations are the day-to-day activities for continued business functioning. Logistics refers to the
function of operations that manages the flow of goods and services from production to consumption. Logistics
includes all the people, information, and processes involved in storing (e.g., type of warehouse) and
transporting goods (e.g., shipping method). Scheduling is the production activity that establishes the timetable
to be followed in production. Maintenance needs refer to the routine maintenance and repair of business
facilities and equipment. The operations function controls many activities within the business, which means that
this function encounters a lot of expenses incurred by the business. Therefore, expense control is an important
operations activity because it focuses on efficiency and keeping the business's costs low for its day-to-day
activities.
SOURCE: OP:189 Explain the nature of operations
SOURCE: LAP-OP-189--Smooth Operations (Nature of Operations)

37. C
Categories. Marketers look at markets to divide them into groups or categories according to what customers
have in common. Merchants, market leaders, and records have little to do with finding categories.
SOURCE: MP:003 Explain the concept of market and market identification
SOURCE: LAP-MP-003--Have We Met? (Market Identification)

38. D
It is conducted during a short time frame. Qualitative research is conducted during a short time frame. It uses
small samples of the population and is based on subjective data--thoughts, feeling, experiences, emotions, etc.
Quantitative research uses experiments as a method; qualitative research relies more on questionnaires, focus
groups, informal interview, etc.
SOURCE: IM:281 Describe options businesses use to obtain marketing research data (i.e., primary and
secondary research)
SOURCE: LAP-IM-281--What's the Source? (Obtaining Marketing-Research Data)

39. A
Collaborators. The situation analysis should look at the company, the customers, the competitors, the
collaborators, and the climate (external factors). These areas are sometimes known as the 5 C's. Collaborators
include any partnerships or relationships that a company has. Marketing objectives and financial plans have
their own respective sections of the marketing plan. Product strategy falls under the marketing strategies and
programs section of the marketing plan.
SOURCE: MP:007 Explain the nature of marketing plans
SOURCE: LAP-MP-007--A Winning Plan (Nature of Marketing Plans)

40. B
Choose not to make goods and services. Producers must receive enough income so that they are able to
continue making or providing goods and services. If they decide that their incomes are inadequate, they may
choose not to make goods and services, and production would cease. If their incomes are inadequate,
producers probably would not buy more resources or continue to increase production. Resource owners, not
producers, supply needed resources.
SOURCE: EC:001 Describe the concepts of economics and economic activities
SOURCE: LAP-EC-901--Are You Satisfied? (Economics and Economic Activities)

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Test 1290 MARKETING CLUSTER EXAM—KEY 10

41. B
Obtaining and applying information about a customer's preferences and needs in ways that will build an ongoing
buyer/seller relationship. Customer relationship management (CRM) is the strategies, processes, and policies
used by businesses to build, maintain, and maximize the long-term value of customer relationships. To build a
loyal relationship with a customer, a business must know a customer's needs, wants, and preferences and take
steps to accommodate these needs, wants, and preferences on an ongoing, consistent basis. To maintain
customer loyalty, a business must be able to effectively communicate with the customer in many ways--both
personal and nonpersonal. Not all businesses can or want to customize their product mix; however, they can
use technological applications to personalize the messages that they send to customers. Although a business
might want to use CRM strategies to increase market share by appealing to new market segments, this does
not always involve manipulating external data.
SOURCE: CR:016 Discuss the nature of customer relationship management
SOURCE: Hargrave, M. (2023, July 31). What is CRM? Customer relationship management defined. Retrieved
September 18, 2023, from
https://www.investopedia.com/terms/c/customer_relation_management.asp

42. D
Interest and enthusiasm. The salesperson has shown an immediate interest in the customer's request and
given an enthusiastic response. The salesperson does not have a negative attitude, which would be
characterized by boredom and indifference. The extent of their product knowledge cannot be judged by the
response to a single question.
SOURCE: EI:020 Demonstrate interest and enthusiasm
SOURCE: Escalicas, R. (2016, May 15). 3 tips for exceptional customer service. Retrieved September 18,
2023, from https://www.go1.com/blog/post-3-tips-exceptional-customer-service

43. B
The ability to get along well with others. Approximately 85% of employees who lose their jobs do so because
they are not able to get along well with others. The alternatives may be reasons why persons lose their jobs, but
they're not the primary reason.
SOURCE: EI:037 Foster positive working relationships
SOURCE: LAP-EI-037--Can You Relate? (Fostering Positive Working Relationships)

44. D
It can be expensive to produce and distribute. Direct-mail is a promotional medium that comes to consumers'
homes and businesses. Traditional direct-mail advertising involves the production and distribution of
promotional materials that are delivered by a postal or delivery service to consumers' mailboxes. The high cost
per piece means a business will need to calculate carefully the response rate needed to break even. It is ideal
for getting repeat customers and can be timed for the mailings to arrive at crucial periods, such as the beginning
of a sales promotion. In many situations, packages can be designed for reuse or to be reused with very little
updating.
SOURCE: PR:089 Explain the nature of direct marketing channels
SOURCE: Wolski, C. (n.d.). The disadvantages of direct mail. Retrieved September 18, 2023, from
https://smallbusiness.chron.com/disadvantages-direct-mail-1436.html

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM—KEY 11

45. A
Literary or musical works. A copyright is a legal protection of books and other artistic works granted by
government that gives their creators sole rights to them for a certain period of time. Literary, musical, dramatic,
and architectural works, along with sound recordings and computer programs, are some examples of things that
can be protected by a copyright. Inventions or processes are examples of things that can be protected by a
patent--a legal protection of an invention or a process granted by government to its owners for a certain number
of years. Symbols, designs, names, or phrases are examples of things that can be protected by a trademark--a
word, name, symbol, or device used by a manufacturer or merchant to identify and distinguish its goods from
those manufactured and sold by others.
SOURCE: BL:051 Describe methods used to protect intellectual property
SOURCE: Entrepreneur. (2023). Intellectual property. Retrieved September 18, 2023,
from https://www.entrepreneur.com/encyclopedia/intellectual-property

46. A
Maintain employee goodwill. Public relations efforts that are aimed at employees are often attempts to enhance
employee morale and maintain employee goodwill toward the business. Educating the public about the
company is the purpose of other types of public relations, such as those that are aimed at consumers. Taking
advantage of employees is not usually a purpose of public relations. Selling products and services is an indirect
goal of public relations aimed at the public, but it is not the ultimate purpose.
SOURCE: PR:253 Discuss internal and external audiences for public-relations activities
SOURCE: Advameg, Inc. (2023). Public relations. Retrieved September 19, 2023, from
https://www.referenceforbusiness.com/small/Op-Qu/Public-Relations.html

47. B
Reduced competition. A distribution channel consists of all the businesses and individuals that move products
from the producer to the end user. Governments develop laws to monitor and regulate distribution activities so
that individuals and businesses operate in a consistent, fair manner. When a channel member attempts to
reduce competition, it may be violating certain laws. One activity that may reduce competition is a manufacturer
closing a sales territory to keep its competitors from obtaining access to the market. High distribution intensity,
product type (e.g., perishable), and risk level are not factors that determine if a manufacturer is illegally using
closed sales territories in relation to the distribution process.
SOURCE: CM:005 Explain legal considerations in channel management
SOURCE: ZABANGA Marketing. (2023, August 6). Legal and ethical issues in channel relations. Retrieved
September 18, 2023, from https://www.zabanga.us/sales-force/legal-and-ethical-issues-in-channel-
relations.html

48. B
Government regulations. Government regulations are an external factor affecting promotion by putting
restrictions on its use. For example, government regulations prohibit cigarettes from being promoted on TV or
radio. The product that is to be promoted, the channels of distribution, and the price of the product are all
internal factors within the control of the business.
SOURCE: PR:001 Explain the role of promotion as a marketing function
SOURCE: LAP-PR-901--Razzle Dazzle (Nature of Promotion)

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Test 1290 MARKETING CLUSTER EXAM—KEY 12

49. A
Plan yearly budgets. Intermediate-range sales forecasts cover periods of three months to two years. They are
used to plan budgets and make determinations regarding capital expenditures. Long-range sales forecasts are
used in strategic planning. Short-range sales forecasts are used to aid in day-to-day decision-making regarding
scheduling, staffing, inventory, etc.
SOURCE: MP:013 Explain the nature of sales forecasts
SOURCE: LAP-MP-013--Futurecast (The Nature of Sales Forecasts)

50. B
To get a fair share of the market. Gaining market share is often an important pricing goal. Businesses may
lower prices to attract new customers and increase their market share. This could create goodwill in the
community, but that is not the purpose of the tactic. Price levels are not used to attract employees. Competitors'
activities would be tracked before prices were set.
SOURCE: PI:002 Explain factors affecting pricing decisions
SOURCE: Kramer, L. (2023, April 8). What strategies do companies employ to increase market
share? Retrieved September 18, 2023,
from https://www.investopedia.com/ask/answers/031815/what-strategies-do-companies-employ-
increase-market-share.asp

51. B
Trade agreements. Global trade is an intricate balancing act. When one or more key players in the global
economy begins reducing its participation in trade, the entire economy can suffer. To reduce the negative
effects of import tariffs and other trade restrictions, countries often negotiate trade agreements with one
another. Trade agreements attempt to strike deals among several countries to encourage cross-country trade.
Domestic subsidies are often used as a form of trade protectionism, not as a method for encouraging global
trade. Export limits and import restrictions would also fall into the category of trade protectionism.
SOURCE: BL:145 Explain the nature of import/export law
SOURCE: Amadeo, K. (2021, October 25). What are exports? Retrieved September 18, 2023, from
https://www.thebalancemoney.com/exports-definition-examples-effect-on-economy-3305838

52. B
Keep the business operating smoothly and effectively. If a business is successful, workers have a better chance
of getting higher wages and better working conditions. In addition, management has a better chance of
increasing the business's profits. Workers are responsible for establishing labor unions to strengthen their
bargaining power with management. Obtaining more fringe benefits and high wages for employees is one of the
main purposes of labor unions.
SOURCE: EC:015 Explain the concept of organized labor and business
SOURCE: LAP-EC-915--Get United (Organized Labor)

53. C
Observation. Observation is a marketing-research method that gathers data by watching consumers. It is an
effective research approach that provides information about what they do and how they interact with others.
People do not know they are being observed so they behave in a normal way that provides useful information.
The survey, experiment, and interview methods involve contact with people so they may not provide the most
truthful or accurate information about what they do.
SOURCE: IM:289 Describe data-collection methods (e.g., observations, mail, diaries, telephone, Internet,
discussion groups, interviews, scanners, tracking tools)
SOURCE: LAP-IM-289--Hunting and Gathering (Data-Collection Methods)

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Test 1290 MARKETING CLUSTER EXAM—KEY 13

54. D
Smile. A smile shows the speaker that you support and encourage them. It is a good idea to ask questions
when given the opportunity. It shows interest in the topic. A straight face is difficult for a speaker to interpret. It
may mean a person is upset, daydreaming, or seriously listening. Talking to others during a presentation is rude
to the speaker and may cause them to lose their train of thought.
SOURCE: CO:082 Explain communication techniques that support and encourage a speaker
SOURCE: Robinson, L., Segal, J., & Smith, M. (2023, August 15). Effective communication. Retrieved
September 18, 2023, from https://www.helpguide.org/articles/relationships-communication/effective-
communication.htm

55. C
Work team. A work team is a group of employees who are responsible for carrying out an entire work process.
This might include all the steps in producing a product, performing a service, or running a section of the
business. A quality circle is a problem-solving group of coworkers who are given work situations or problems to
study and discuss to recommend solutions to management. A project team is a team of employees from
different parts of the company who are assigned to work together on a specific project. A short-term committee
has an immediate goal, such as obtaining speakers for a conference.
SOURCE: EI:045 Participate as a team member
SOURCE: LAP-EI-045--Team Up (Participating as a Team Member)

56. A
Decrease. The higher interest rate will make it more expensive to borrow money, so fewer borrowers will be
seeking loans while interest rates are high. The demand for money will not double or continue to increase. It will
be affected so it cannot remain the same.
SOURCE: EC:084 Explain the economic impact of interest-rate fluctuations
SOURCE: Kramer, L. (2023, August 14). How do governments fight inflation? Retrieved September 18, 2023,
from https://www.investopedia.com/ask/answers/111314/what-methods-can-government-use-
control-inflation.asp

57. C
Make sure the project stays on track. During the execution-and-monitoring stage of project management, the
actual work of the project is performed. The project manager's job at this point is to make sure the project stays
on track and to take corrective measures if it doesn't. Delivering the final product occurs during the closing
stage. Securing funding for the project is often the project champion's task and occurs before the project is
authorized. Assigning roles to team members occurs during the planning-and-development stage.
SOURCE: OP:158 Explain the nature of project management
SOURCE: LAP-OP-158--Projected to Win (Nature of Project Management)

58. C
Multiple uses. Salespeople are more likely to make a sale if they clearly communicate a product's features and
benefits. Some products perform multiple functions, which are features that provide benefits--customers do not
need to buy individual items to perform each function. The vacuum cleaner can perform several functions--it
sucks up dirt from carpets and floors; it has attachments to remove dust from furniture, draperies, and ceiling
fans; and it deep cleans carpets. The example does not communicate information about the vacuum cleaner's
construction, durability, or style.
SOURCE: SE:109 Analyze product information to identify product features and benefits
SOURCE: LAP-SE-109--Find Features, Boost Benefits (Feature-Benefit Selling)

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Test 1290 MARKETING CLUSTER EXAM—KEY 14

59. D
Maturity. A product life cycle is the course that a product follows in the market. It includes the stages of
introduction, growth, maturity, and decline. Introduction is the stage of the product life cycle when the product
first appears in the marketplace. Growth is the stage in the product life cycle in which sales rise rapidly. Maturity
is the stage in the product life cycle in which sales peak and then increase at a slower rate or start to decline.
Decline is the final stage of the product life cycle. During this stage, sales and profits fall rapidly. Birth,
adolescence, and death are stages of the human life cycle.
SOURCE: PM:001 Explain the nature and scope of the product/service management function
SOURCE: LAP-PM-017--Serving Up Products (Nature of Product/Service Management)

60. D
Assortment. The retailer is reducing a discrepancy of assortment by making a variety of toys available in one
place. Reducing a discrepancy of quantity means breaking down a large quantity of a product into smaller
quantities for final consumers to buy. There is no such thing as a discrepancy of installation or a discrepancy of
promotion.
SOURCE: CM:001 Explain the nature and scope of channel management
SOURCE: LAP-CM-001--Chart Your Channels (Channel Management)

61. A
Update the company's customer records. When customers change phone numbers and email addresses,
move, or go out of business, a company needs to update its customer database to reflect the changes. A
company with outdated customer information is more likely to experience financial losses. For example, a
company may not be able to collect payment on overdue accounts if it cannot reach its customers by phone to
follow up. Also, a company's promotional mailings are likely to be returned if it does not have current mailing
addresses for its customers. In this situation, the company has wasted money in postage. The primary purpose
of updating customer contact information is not to achieve sales quotas, determine the customers' buying
intentions, or establish goodwill through public relations.
SOURCE: NF:002 Maintain customer records
SOURCE: Evans, D. (2020, February 28). How to maintain your CRM database. Retrieved September 18,
2023, from https://www.yokellocal.com/blog/how-to-maintain-your-crm-database

62. A
To build customer confidence. Prospective customers pay attention to statements from experts in the field who
are willing to recommend a product. They feel if the product satisfies the expert, it will satisfy them. The
testimonial may not shorten the sales presentation, and that should not be the salesperson's intention. A
testimonial ad cannot help predict what sales of a product will be or prove that it is a better buy than another
product. Advertising campaigns do not necessarily guarantee the best buy.
SOURCE: SE:062 Acquire product information for use in selling
SOURCE: Patel, S. (2023, July 18). The top 13 sales methodologies to consider for your business. Retrieved
September 19, 2023, from https://mailshake.com/blog/sales-methodologies

63. D
Line. These items are part of a product line, which is a group of related product items. Product items are
individual goods or services that a business offers for sale. Product mix is the particular assortment, or variety,
of products that a business offers in order to meet its market's needs and its company's goals.
SOURCE: PM:003 Explain the concept of product mix
SOURCE: LAP-PM-003--Mix & Match (The Nature of Product Mix)

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Test 1290 MARKETING CLUSTER EXAM—KEY 15

64. A
Push. In addition to determining which promotional mix elements to emphasize when promoting their products,
manufacturers must also decide to whom they want to promote their products. Producers who utilize push
promotional strategies promote their products to intermediaries who then promote the products to customers.
Rather than promoting their products to intermediaries, producers who adopt pull promotional strategies
promote their products directly to the ultimate consumer or industrial user to generate customer interest in the
products. Intermediaries then purchase the products from manufacturers to meet customer demand. Increasing
and decreasing promotional strategies are fictitious terms.
SOURCE: PR:003 Identify the elements of the promotional mix
SOURCE: LAP-PR-903--Spread the Word (Nature of the Promotional Mix)

65. C
Enables tracking of users' viewing and purchasing habits. Promotion is a term that refers to the various types of
communications that marketers use to inform, persuade, or remind customers of their products. Technological
advancements (e.g., internet) have made it possible for a business to track its customers' (visitors') behavior in
relation to their website hits, inquiries, and purchases. The ability to track this online information often helps the
business to determine its customers' needs and preferences, and to determine the best way to meet these
needs and preferences. Because other factors influence a business's success, using the internet to promote
products does not always increase annual sales volume or create a loyal customer base. Using the internet as
one method of promotion does not necessarily mean that a business should reduce its traditional publicity
efforts.
SOURCE: PR:100 Describe the use of technology in the promotion function
SOURCE: Linton, I. (2019, March 6). Six benefits of internet marketing. Retrieved September 18, 2023,
from https://smallbusiness.chron.com/six-benefits-internet-marketing-31382.html

66. A
Children's advertising. Children are often the target of advertising because they have significant buying power
and also influence the buying decisions of many adults. Advertising to children frequently becomes an ethical
issue for businesses because messages that are suitable for adults may not be suitable for children.
Businesses must be cautious not to take advantage of children by giving them information or making claims that
they will not understand. Businesses have an ethical obligation to be fair and truthful when advertising to
children. Brand positioning involves creating a certain image or impression of a brand as compared to those of
competitors' brands. Integrated marketing is not an ethical issue. Personal selling is the form of promotion that
determines client needs and wants and responds through planned, personalized communication that influences
purchase decisions and enhances future business opportunities.
SOURCE: PR:099 Describe the use of business ethics in promotion
SOURCE: Brenner, M. (2017, November 27). The ethics of marketing to children and teens. Retrieved
September 18, 2023, from https://marketinginsidergroup.com/content-marketing/ethics-marketing-
children-teens

67. C
Types of products being advertised. Regulations regarding promotion differ throughout the world. When
businesses want to promote their products in other countries, they need to be aware of different regulations.
One regulatory factor often involves the types of products being advertised. For example, charities may not
advertise on TV in the United Kingdom. In France, diet products may not be advertised on TV. The cost of
media placement and the price of comparable products are not regulatory factors that affect promotion. Culture
is not a regulatory factor; however, culture has an impact on the regulations that affect promotion on an
international level.
SOURCE: PR:101 Describe the regulation of promotion
SOURCE: Studious Guy. (2023). Factors that affect marketing and advertising. Retrieved September 18, 2023,
from https://studiousguy.com/factors-affect-marketing-advertising

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM—KEY 16

68. A
Descriptive. Descriptive statistics are derived by summarizing information gathered from a sample of a
population. Multivariate statistics are derived by analyzing two variables at the same time. Sequential and
unilateral are not common terms used to define types of statistical information collected and analyzed by market
researchers.
SOURCE: IM:191 Explain the use of descriptive statistics in marketing decision making
SOURCE: College of St. Benedict and St. John's University. (n.d.). Descriptive statistics. Retrieved September
18, 2023, from http://www.physics.csbsju.edu/stats/descriptive2.html

69. A
Handle. Salespeople demonstrate products to show customers how the products will solve customers' problems
or meet their needs. Salespeople try to appeal to customers' senses by getting the product into the customers'
hands and showing them how it works. Handling a product makes customers feel a sense of ownership and
encourages them to buy. Having customers handle the product is more likely to encourage customers to buy
than letting them watch the salesperson handle the product. The final objective of any demonstration is not just
to have the customer admire or approve of the product but to purchase it.
SOURCE: SE:048 Explain the selling process
SOURCE: Robertson, K. (2021, January 8). How to create a powerful sales presentation: Seven presentation
tips for making a presentation that makes the sale. Retrieved September 19, 2023, from
https://www.liveabout.com/how-to-create-a-powerful-sales-presentation-2948462

70. B
Express warranty. An express warranty is a warranty that is written or expressed verbally. Because the
salesperson verbally informed Abdul of the lifetime warranty and he signed a written contract, this is an example
of an express warranty. An implied warranty is an unwritten, unspoken warranty understood by the customer
and the seller that the product will perform as expected. A guarantee (often called a money-back guarantee) is
a promise made to the consumer that a product's purchase price will be refunded if that product is not
satisfactory. A strategy is a plan of action for achieving goals and objectives.
SOURCE: PM:020 Explain warranties and guarantees
SOURCE: LAP-PM-920--Promises, Promises (Warranties and Guarantees)

71. B
A company asks customers to share product reviews on a website. Amplified word-of-mouth strategy involves a
business asking others to help spread the word about its products, such as requesting customers to share
product reviews on a website. Customers sharing the release date for a new product on Facebook, posting
comments about a company on Instagram, and sharing their opinions of a new product with a friend are
examples of organic word-of-mouth because they were created by consumers, not the company.
SOURCE: PR:247 Describe word-of-mouth channels used to communicate with targeted audiences
SOURCE: Hayes, A. (2022, August 23). Word-of-mouth marketing: Meaning and uses in business. Retrieved
September 19, 2023, from https://www.investopedia.com/terms/w/word-of-mouth-marketing.asp

72. C
I am worthy of my own respect and the respect of others. To be assertive, you need to believe in your own
worth, have self-respect, and expect respect from others. You do not have the right to express your feelings in
any way you choose if it will offend or hurt others. Being able to ask others for help is a characteristic of
assertiveness. It is not always possible to agree with everyone.
SOURCE: EI:008 Use appropriate assertiveness
SOURCE: LAP-EI-008--Assert Yourself (Assertiveness)

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM—KEY 17

73. D
They are subtracted from the total of assets. To determine personal net worth, a person's assets are first
totaled, and then personal liabilities are subtracted. Net worth does not appear as a subtotal and cannot be
determined before liabilities are subtracted. It is not necessary to eliminate liabilities before calculating personal
net worth.
SOURCE: FI:562 Determine personal net worth
SOURCE: Ganti, A. (2023, March 9). Net worth: What it is and how to calculate it. Retrieved September 18,
2023, from https://www.investopedia.com/terms/n/networth.asp#toc-how-to-calculate-net-worth

74. D
Makes the product appealing. Persuasive messages usually are intended to encourage someone to do
something. In the case of a sales message, the goal usually is to persuade a customer to buy a product. To do
this, the message should make the product appealing to the customer so the customer will understand the
benefit of buying and want to buy. The sales message should persuade the customer to spend money.
Persuasive sales messages are not intended to simply remind the customer of the product or discredit the
competition. Persuasive messages should not use loaded language, which is often biased and stereotypical.
SOURCE: CO:031 Write persuasive messages
SOURCE: Gerard, Y. (2022, June 22). How to write persuasive sales messages. Retrieved September 18,
2023, from https://www.linkedin.com/pulse/how-write-persuasive-sales-messages-yvonne-gerard

75. C
Following company procedures. Policies are the general rules to be followed by company personnel. For
example, a business owner may develop a policy that states the company will reimburse employees for certain
business-related expenses. A procedure is the step-by-step process that personnel follow in performing a
specific task. In the example, Luke was following certain steps to obtain reimbursement for out-of-pocket
expenses that he incurred--obtaining and completing the appropriate form, attaching receipts, and submitting
the documentation to his manager. In the example, Luke did not develop the policies, evaluate company
feedback, or assess company guidelines.
SOURCE: CO:057 Analyze company resources to ascertain policies and procedures
SOURCE: Bizmanualz, Inc. (n.d.). What's the difference between policies and procedures? Retrieved
September 18, 2023, from https://www.bizmanualz.com/writing-policies-and-procedures/whats-the-
difference-between-policies-and-procedures.html

76. C
Thank the customer for coming. It is important to thank each customer for visiting or doing business with your
company. Thanking customers makes them feel welcomed and appreciated, and they are more likely to work
with your business in the future. Talking to a manager about the customer is likely unnecessary unless a
question came up during your interaction with the customer. Preparing a sales report after interacting with each
customer is inefficient and unnecessary. Sales reports are more likely to be prepared for an extended period of
time such as a week, month, quarter, or year. Although rest breaks are important, it's not feasible to take a short
break after every customer.
SOURCE: CR:004 Demonstrate a customer service mindset
SOURCE: LAP-CR-004--Set Your Mind to It (Customer Service Mindset)

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM—KEY 18

77. D
False; identifying the real reason for the research can be a very difficult step. The reason that this is true is that
the business cannot always identify a concern, situation, or problem accurately to determine what information it
needs. While outside experts may be helpful in some cases, it is not always necessary to hire them. Usually,
personnel within the business are in the best position to identify the reason why the business needs to use
marketing research because of their familiarity with the business.
SOURCE: IM:010 Explain the nature of marketing research
SOURCE: LAP-IM-010--Seek and Find (Marketing Research)

78. A
A business's core values identify the beliefs that the business stands for. A corporate brand consists of all of the
combined customer impressions and experiences associated with a particular company. Many different
elements, including the company's core values, brand cues, brand personality, brand promise, and touch points,
make up a corporate brand's identity. A business's core values, also known as its brand values, are the beliefs
or qualities that a brand stands for and is built around. The first step of building a corporate brand involves
defining the company's core values. Customer touch points, which are all the opportunities that businesses
have to connect with customers and reinforce their brand values, occur before, during, and after sales
transactions. Everyone in the company is responsible for corporate branding--not just the customer service
representatives. Employees must understand and embrace the brand's values, personality, and promise for the
corporate brand to take hold and be a success. Brand cues are elements that remind customers and employees
of brands and their values. They appear throughout the workplace and community as well as in advertising.
SOURCE: PM:207 Describe factors used by businesses to position corporate brands
SOURCE: Couchman, H. (2023). The search for value: How to define clear brand values for your company.
Retrieved September 18, 2023, from https://fabrikbrands.com/how-to-define-brand-values

79. A
Use white space. White space is blank space in a print advertisement that is unoccupied by text or illustrations.
White space helps put focus on a specific aspect of an advertisement. Ollie could use white space to draw
attention to one main feature in his ad. Changing fonts often is not necessarily a good design practice. Keeping
his audience in mind and avoiding clashing colors are good design practices for Ollie to follow, but they are not
necessarily related to drawing attention to a specific feature of an ad.
SOURCE: PR:251 Explain the importance of coordinating elements in advertisements
SOURCE: Stribely, M. (2023). 10 rules of composition all designers live by. Retrieved September 19, 2023,
from https://www.canva.com/learn/visual-design-composition

80. C
Stress. Worry and fatigue tense both physical and mental muscles. Stress blocks the flow of creative ideas.
Limiting code of behavior is a pattern of behavior that limits creativity because people become convinced that a
problem is unavoidable and don't look for solutions. People who need to be right the first time can't take the
chance of being wrong. Creativity requires people to explore alternatives and to take risks. Creative people
need to avoid limiting the number and quality of ideas by being critical.
SOURCE: PD:012 Demonstrate appropriate creativity
SOURCE: LAP-PD-012--Imagine That (Demonstrating Creativity)

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM—KEY 19

81. C
Misleads customers about the true value of a product. Deceptive pricing is an illegal pricing tactic because it
misleads customers about the true value of a product. An example of deceptive pricing is setting a high price on
a product and then advertising a big discount which actually reduces the price to a realistic, or normal, level.
Customers buy the item because they think they are saving money when, in fact, they are paying what the item
is actually worth. Price lining involves selling products at a limited number of predetermined price points.
Variable pricing involves changing prices according to current demand. Promotional pricing involves offering
special prices on certain products such as discontinued items. These pricing activities are not illegal.
SOURCE: PI:017 Explain legal considerations for pricing
SOURCE: McCormick, M. (2017, May 30). Are your prices ethical? Retrieved September 18, 2023, from
https://blog.blackcurve.com/are-your-prices-ethical

82. B
Report it to your supervisor. All unsafe conditions, unsafe acts, and injuries should be reported immediately to
the appropriate supervisor. Employees should never try to fix a hazard if they don't know how to repair it. Using
a tool that is not in good working order endangers you and others. Asking a coworker for help will not solve the
problem.
SOURCE: OP:007 Follow safety precautions
SOURCE: Atlantic Training. (n.d.). Workplace safety tips: A comprehensive resource. Retrieved September 18,
2023, from https://www.atlantictraining.com/safety-tips/workplace-safety-tips.php

83. B
Classified advertising. This type would be best to sell the display case because the ad can be put into an
appropriate category, such as used business equipment. The ad would also be at a low cost, and no illustration
is needed. Display advertising is more expensive because it uses one or more elements such as illustrations,
headlines, variations in type and white space. Classified display advertising includes illustrations/special typeset
in addition to the ad. Special advertising usually consists of notices such as public and legal notices.
SOURCE: PR:007 Explain types of advertising media
SOURCE: LAP-PR-007--Ad-quipping Your Business (Types of Advertising Media)

84. C
Connects the brand with customers. A corporate brand's story is all about communicating the company's image
and connecting with customers. Entertaining customers and having fun as a company are not the main reasons
for telling a brand story. Telling the brand's story is a way to communicate the corporate brand; it does not
eliminate the need for a corporate brand.
SOURCE: PM:206 Explain the nature of corporate branding
SOURCE: LAP-PM-206--Corporate Identity (Nature of Corporate Branding)

85. B
Place. The store is making goods and services available at the place (location) they are wanted or needed by
consumers. Time utility is making products available at the time they are wanted or needed by consumers.
Form utility is altering or changing the form or shape of a product to make it more useful to the consumer.
Possession utility is created when the ownership of a product is transferred from the seller to the person who
will use it.
SOURCE: EC:004 Determine economic utilities created by business activities
SOURCE: LAP-EC-013--Use It (Economic Utility)

Copyright © 2024 by MBA Research and Curriculum Center®, Columbus, Ohio

Test 1290 MARKETING CLUSTER EXAM—KEY 20

86. B
Promotion. Promotion is a marketing function that communicates information about goods, services, images,
and/or ideas to achieve a desired outcome. To successfully sell its product, a business needs to coordinate all
the components of marketing, which include distribution, promotion, product, and price. For example, if a
business develops an effective distribution system but fails to promote the product, customers will not know
about the product or want it, although it is readily available. Operations is the business function that handles the
day-to-day activities necessary to run the business. Production is the operations activity that involves the
creation of goods and services from economic resources. Training is a human resources activity.
SOURCE: CM:007 Coordinate channel management with other marketing activities
SOURCE: BYJU'S (2023). What is promotion? Types of promotion. Retrieved September 18, 2023, from
https://byjus.com/commerce/what-is-promotion

87. C
The use of toxic chemicals in the environment can result in the extinction of many species of waterfowl. This
example indicates that the extinction of waterfowl (the end result or effect) is caused by the use of toxic
chemicals (the cause). The public supports increased spending on national security, and a survey reports that
over 70% of the citizens fear future terrorist attacks--this is an example of the use of a generalization with an
example method of presentation organization. Monet and Cezanne were both impressionist artists; however,
their painting techniques and use of color varied greatly--this is an example of the compare and contrast
method of presentation organization. An example of the enumeration method of presentation organization is as
follows: We will discuss the basic steps used in developing effective time management techniques, and the first
step is to prioritize all of your commitments.
SOURCE: CO:025 Make oral presentations
SOURCE: Fulton, S. (2006-2023). How to use cause and effect in presentation storytelling. Retrieved
September 18, 2023, from https://ethos3.com/use-cause-effect-presentation-storytelling

88. D
Better overall risk management. Most businesses depend on the continuous flow of supplies to survive; if this
flow is interrupted because of issues with a vendor, problems for the company will follow. Evaluating vendor
performance ensures that the vendor is reaching company expectations, and makes sure that the vendor is
delivering quality supplies within the desired time frame. This reduces potential risks for the company.
Evaluating vendor performance leads to fewer defects in the supply chain--not more. When a company
evaluates its vendors, it increases the communication between company and vendor, usually leading to more
cooperation from the vendor, not less.
SOURCE: OP:162 Evaluate vendor performance
SOURCE: Xometry. (2023, February 9). 5 key factors to consider when conducting a supplier
evaluation. Retrieved September 18, 2023, from
https://www.xometry.com/resources/procurement/conducting-a-supplier-evaluation

89. D
Test the safety of their products. Every business has the responsibility of producing and offering safe, quality
products. If businesses fail to be sensitive to the well-being of their product users, the businesses will probably
fail. Providing safe working environments and offering job training are ways businesses can be socially
responsible to their employees. Contributing to community causes demonstrates social responsibility toward the
community.
SOURCE: EC:070 Explain the role of business in society
SOURCE: LAP-EC-070--Business Connections (Business and Society)

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Test 1290 MARKETING CLUSTER EXAM—KEY 21

90. A
Migration. Migration is a population trend that indicates movement of people throughout the country as well as
into and out of the country. Migration trends are important to businesses because businesses need to know
where their customers are located. For example, many people are leaving colder climates and migrating to what
is considered the Sunbelt. This movement affects businesses because the types of products they sell and the
way they sell them will change. Also, the increased migration of ethnic groups into the country creates a need
for new goods and services that meet the needs of a multicultural population. Lifestyle, consumption, and
behavior are not population trends; however, these factors also affect how businesses market their goods and
services.
SOURCE: NF:013 Describe current business trends
SOURCE: Cromwell, J. (n.d.). Do changes in population as well as changes in lifestyle directly affect business
operations? Retrieved September 18, 2023, from https://smallbusiness.chron.com/changes-
population-well-changes-lifestyle-directly-affect-business-operations-34395.html

91. D
Empathy. Empathy is the ability to put yourself in another person's place or to relate to the feelings, thoughts,
and experiences of other people. Respect is honor and esteem. Perspective is the way in which people view
life. Understanding is the ability to comprehend or to think and learn.
SOURCE: EI:030 Show empathy for others
SOURCE: LAP-EI-030--Have a Heart (Showing Empathy for Others)

92. C
Maturity. During the maturity phase, sales peak and then slowly start to decline. Because there are more
competitors that market similar products, a business uses advertising to remind customers about its goods and
services. Businesses often make small changes to their products to make them appealing to the market's
evolving needs and wants. This might involve adding new sizes or colors to the existing product line. During the
decline phase, sales drop sharply, and businesses tend to reduce advertising. Obsolescence, which is the state
of being outdated or unfashionable, occurs during the decline phase of the product's life cycle. At this point,
businesses determine whether to continue to offer the product. Businesses communicate that their products are
available during the introduction phase.
SOURCE: PM:024 Identify the impact of product life cycles on marketing decisions
SOURCE: LAP-PM-024--Get a Life (Cycle) (Product Life Cycles)

93. B
Check processing. The technology of electronic funds transfer makes it possible for customers to pay invoices
electronically so the cash is transferred from their bank account to the business's bank account. This eliminates
the need for the business to handle checks, fill out deposit slips, and send the checks to the bank for
processing. The cash is available immediately, and the business does not need to wait for a check to be
processed before it can access the funds. The use of electronic funds transfer to collect accounts receivable
does not eliminate liquidity reporting, sales discounting, or payee outsourcing.
SOURCE: FI:352 Explain the use of technology in accounting
SOURCE: EBANX. (n.d.). Electronic funds transfer (EFT). Retrieved September 18, 2023, from
https://www.ebanx.com/en/resources/payments-explained/electronic-funds-transfer-eft

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Test 1290 MARKETING CLUSTER EXAM—KEY 22

94. B
Burden of proof. It's important to keep good records because you are responsible for proving the expenses you
deduct on your tax return. This includes things like bills, receipts, and cancelled checks. Von carefully files
these items so that they can be easily found. Responsibility to prove, record burden, and tax return proof are
not commonly used terms.
SOURCE: NF:014 Monitor internal records for business information
SOURCE: IRS. (2023, May 2). Recordkeeping. Retrieved September 18, 2023, from
https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping

95. B
Place. The place element of marketing involves shipping, handling, and storing of items and determining when
and where they will be available. Getting products to destinations faster inevitably means paying extra money.
This extra cost to the company will become part of the product's price. Product decisions involve deciding what
goods, services, or ideas to produce or to sell to satisfy customers' needs and wants. Packaging is not one of
the four P's of marketing but the enclosing of products in appropriate wrappings or containers. Promotion is a
marketing function which communicates information about goods, services, images, or ideas to customers or
clients.
SOURCE: PI:001 Explain the nature and scope of the pricing function
SOURCE: LAP-PI-001--The Price Is Right (Nature of Pricing)

96. D
Public relations. People in public relations are in charge of creating a good image for their business or
organization. Part of this includes writing and sending out press releases. Marketers in marketing research,
marketing operations, and customer service do not generally write press releases.
SOURCE: PD:024 Explain employment opportunities in marketing
SOURCE: LAP-PD-024--Career Opportunities in Marketing

97. A
Based on past experiences. Customers’ service expectations can often be based on past experiences. If a
customer has received customer service from you before, they will expect the same quality of service from you
now. Customers can also compare your service to past service they’ve received from competitors. Customers’
service expectations are not dependent on the needs of others--instead, they are dependent on individual
needs. Customer service expectations are not one size fits all. They are affected by promotion.
SOURCE: SE:076 Explain the role of customer service as a component of selling relationships
SOURCE: LAP-SE-076--Go Beyond the Sale (Customer Service in Selling)

98. C
A wholesaler sells candy to a concession stand. A wholesaler selling candy to a concession stand is an
example of a product being sold to an organization for resale. A retailer selling a small refrigerator to a coffee
shop is an example of a product being sold for use in general business operations. A farmer selling produce to
a restaurant is an example of a product being sold to an organization for use in producing other goods. A potter
selling pottery at a flea market is an example of a product being sold directly to the user for ultimate
consumption.
SOURCE: SE:017 Explain the nature and scope of the selling function
SOURCE: LAP-SE-017--Sell Away (The Nature and Scope of Selling)

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Test 1290 MARKETING CLUSTER EXAM—KEY 23

99. A
They are afraid of risk. Many business professionals are reluctant to generate new product ideas. Some are
worried about the unknowns and risks that come with new products. Some are not good at thinking "outside the
box." Others are afraid to voice new product ideas due to criticism and ridicule that their ideas may attract from
close-minded coworkers and supervisors. Lateral thinkers, who typically are good at thinking outside the box
and like to explore, are likely to generate and share their ideas.
SOURCE: PM:127 Identify methods/techniques to generate a product idea
SOURCE: LAP-PM-127--Unleash Your Mind (Techniques for Generating Product Ideas)

100. D
Coding. Coding is the process of assigning a numeric value to the various responses on a marketing
questionnaire or survey. Once the responses are coded, researchers are able to tabulate the responses, rate
the agreement to each answer, and compute a total score. Coding helps researchers determine the importance
of various responses or types of data. Editing, interpreting, and formulating do not involve assigning numeric
value to marketing information.
SOURCE: IM:062 Explain techniques for processing marketing data
SOURCE: McGee, V. (2023, September 7). What is coding and what is it used for? Retrieved September 18,
2023, from https://www.computerscience.org/resources/what-is-coding-used-for

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