Unit 1.05 Unit 1.05

6. What does a business need in order to 6. What does a business need in order to understand why a product that has been a strong understand why a product that has been a strong seller for a long time is now losing its popularity?seller for a long time is now losing its popularity?

A. marketing informationA. marketing information

B. sales recordsB. sales records

C. secondary dataC. secondary data

D. purchasing documentsD. purchasing documents

A. Marketing informationA. Marketing information

They need to see how rival products are They need to see how rival products are doing and how they are affecting the doing and how they are affecting the product.product.

29. What is one way that businesses use 29. What is one way that businesses use marketing information?marketing information?

A.A. To develop new products To develop new products

B.B. To determine credit scoresTo determine credit scores

C.C. To change economic trendsTo change economic trends

D.D. To prepare sales invoices To prepare sales invoices

A.A. To develop new productsTo develop new products

Businesses need to obtain and analyze a wide variety of marketing Businesses need to obtain and analyze a wide variety of marketing information in order to make decisions for the future. One way information in order to make decisions for the future. One way that businesses use this information is to develop new products that businesses use this information is to develop new products and improve existing products in order to satisfy customers’ and improve existing products in order to satisfy customers’ needs. In order to make marketing decisions that will keep them needs. In order to make marketing decisions that will keep them competitive, businesses are constantly gathering information competitive, businesses are constantly gathering information about customers’ preferences and why customers buy certain about customers’ preferences and why customers buy certain products.products.

Businesses do not use marketing information to prepare sales invoices. Businesses do not use marketing information to prepare sales invoices. Businesses obtain marketing information in order to monitor Businesses obtain marketing information in order to monitor economic trends, but they are not able to change those trends. economic trends, but they are not able to change those trends. Credit scoring is a function of finance that helps a company Credit scoring is a function of finance that helps a company determine a customer’s credit worthiness. determine a customer’s credit worthiness.

30. What does continuously monitoring 30. What does continuously monitoring international marketing information enable international marketing information enable

businesses to do? businesses to do?

A.A. Investigate competitorsInvestigate competitors

B.B. Identify problems Identify problems

C.C. Evaluate market shareEvaluate market share

D.D. Analyze economic changesAnalyze economic changes

B. identify problemsB. identify problems

Marketing information is data available inside (internal) and outside Marketing information is data available inside (internal) and outside (external) the business. Internal marketing information that (external) the business. Internal marketing information that businesses monitor include inventory reports, customers, sales businesses monitor include inventory reports, customers, sales records, customers’ feedback from surveys, etc. Comparing current records, customers’ feedback from surveys, etc. Comparing current and past marketing information can often reveal problems, such as and past marketing information can often reveal problems, such as a sudden drop in sales of a particular product. a sudden drop in sales of a particular product.

A drop in sales may indicate that the business needs to provide new or A drop in sales may indicate that the business needs to provide new or improved products or increase promotional efforts. Businesses need improved products or increase promotional efforts. Businesses need to review various forms of external marketing information to to review various forms of external marketing information to effectively investigate competitors, evaluate market share, and effectively investigate competitors, evaluate market share, and analyze economic changes.analyze economic changes.

31. What is one way that many businesses use the 31. What is one way that many businesses use the marketing information contained in sales reports?marketing information contained in sales reports?

A.A. To monitor expense accountsTo monitor expense accounts

B.B. To qualify potential new customersTo qualify potential new customers

C.C. To improve the effectiveness of To improve the effectiveness of salespeoplesalespeople

D.D. To develop negotiating techniquesTo develop negotiating techniques

C. To improve the effectiveness of salespeopleC. To improve the effectiveness of salespeople

Sales reports contain a variety of information that businesses often use Sales reports contain a variety of information that businesses often use to improve the effectiveness of salespeople. This is information to improve the effectiveness of salespeople. This is information about numbers of new customers, number lost of customers, cost of about numbers of new customers, number lost of customers, cost of selling, time spent with each customer, etc.selling, time spent with each customer, etc.

By reviewing the information, a business can determine if the By reviewing the information, a business can determine if the salesperson is effective, or might need assistance or more training salesperson is effective, or might need assistance or more training to be better able to market the business’s product information that to be better able to market the business’s product information that the salesperson does not have. Then, the business can develop the salesperson does not have. Then, the business can develop materials to provide the detailed information.materials to provide the detailed information.

This will help the salesperson to more effectively work with customers. This will help the salesperson to more effectively work with customers. Businesses do not develop negotiating techniques. Expense Businesses do not develop negotiating techniques. Expense accounts are types of sales reports that often contain marketing accounts are types of sales reports that often contain marketing information.information.

32. By monitoring its sales and its customers’ 32. By monitoring its sales and its customers’ buying habits, what is a business often able to buying habits, what is a business often able to

identify?identify?

A.A. Popular productsPopular products

B.B. Research methodsResearch methods

C.C. Economic resourcesEconomic resources

D.D. Competitors’ activitiesCompetitors’ activities

A.A. Popular productsPopular products

A business that monitors its sales and customers’ buying A business that monitors its sales and customers’ buying habits overtime can determine which products are not habits overtime can determine which products are not popular and which products are not selling. By knowing popular and which products are not selling. By knowing which products are improving well and not so well, the which products are improving well and not so well, the business can make informed decisions about its business can make informed decisions about its product mix.product mix.

For example, a business may decide to offer popular For example, a business may decide to offer popular products in other colors and sizes, or it may decide to products in other colors and sizes, or it may decide to delete slow-moving items from its product mix. delete slow-moving items from its product mix. Research methods are the ways in which a business Research methods are the ways in which a business obtains marketing information. Economic resources obtains marketing information. Economic resources are the human and natural resources and capital are the human and natural resources and capital goods used to produce goods and services. Monitoring goods used to produce goods and services. Monitoring its sales and its customers’ buying habits will not help its sales and its customers’ buying habits will not help the business identify research methods, economic the business identify research methods, economic resources, or competitors’ activities.resources, or competitors’ activities.

33. XYZ Company noticed that the sales of iPads 33. XYZ Company noticed that the sales of iPads in blue have increased in sales. What can the in blue have increased in sales. What can the

business determine about the iPads?business determine about the iPads?

A.A. Popular productsPopular products

B.B. Research methodsResearch methods

C.C. Economic resourcesEconomic resources

D.D. Competitors’ activitiesCompetitors’ activities

A. Popular products A. Popular products

If they’re sold out they’re popular!If they’re sold out they’re popular!

34. What type of internal report would indicate to a 34. What type of internal report would indicate to a business that sales for a specific product have dramatically business that sales for a specific product have dramatically

dropped over the past three months?dropped over the past three months?

A.A. Market demographics analysisMarket demographics analysis

B.B. Accounts-payable summaryAccounts-payable summary

C.C. Annual income statementAnnual income statement

D.D. Quarterly inventory statusQuarterly inventory status

D. Quarterly inventory status.D. Quarterly inventory status.

By monitoring inventory, a business can determine how well a product is By monitoring inventory, a business can determine how well a product is selling. If the status report indicates that the inventory for the item is selling. If the status report indicates that the inventory for the item is turning slowly, then the business knows that sales are down. By turning slowly, then the business knows that sales are down. By monitoring the inventory status report over time, the business might monitoring the inventory status report over time, the business might decide to drop items form the product line that are not selling. decide to drop items form the product line that are not selling.

Accounts-payable reports summarize data related to monies the business Accounts-payable reports summarize data related to monies the business has made or lost over a certain period of time. A demographics has made or lost over a certain period of time. A demographics characteristics (e.g., age, gender, education). An accounts-payable characteristics (e.g., age, gender, education). An accounts-payable summary, an annual income statement, and market demographics summary, an annual income statement, and market demographics analysis will not indicate changes in a product’s sales.analysis will not indicate changes in a product’s sales.

35. What type of marketing data can a business obtain by 35. What type of marketing data can a business obtain by reviewing its inventory reports and customers’ invoices?reviewing its inventory reports and customers’ invoices?

A.A. Product qualityProduct quality

B.B. Customers’ credit limitsCustomers’ credit limits

C.C. Customers’ product preferencesCustomers’ product preferences

D.D. Actual market shareActual market share

C. Customers’ product preferencesC. Customers’ product preferencesInternal records provide businesses with information about their Internal records provide businesses with information about their

customers’ buying habits and product usage. By reviewing customers’ buying habits and product usage. By reviewing inventory reports, a business can determine which products are inventory reports, a business can determine which products are selling well and which products are moving slowly.selling well and which products are moving slowly.

This information may prompt the business to phase out the slow This information may prompt the business to phase out the slow moving product and increase promotional efforts for the products moving product and increase promotional efforts for the products that are selling well. Customers’ invoices provide information that are selling well. Customers’ invoices provide information about an individual customer’s buying preferences and habits.about an individual customer’s buying preferences and habits.

For example, invoices might reveal that certain customers buy a For example, invoices might reveal that certain customers buy a certain quantity of a particular product four times a month. By certain quantity of a particular product four times a month. By knowing this type of information, the business can customize knowing this type of information, the business can customize promotions for its customers and take steps to ensure that it has promotions for its customers and take steps to ensure that it has sufficient product on hand when it is needed.sufficient product on hand when it is needed.

Financial reports provide information about customers’ credit status Financial reports provide information about customers’ credit status and limits. Customer invoices do not provide information about a and limits. Customer invoices do not provide information about a product’s level of quality. Businesses need to analyze industry and product’s level of quality. Businesses need to analyze industry and competitors’ data and compare them with internal data to evaluate competitors’ data and compare them with internal data to evaluate its market share.its market share.