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Descriptive Statements:
- Apply basic marketing principles, including the four Ps of product, placement, price, and promotion.
- Apply strategies for conducting market research, collecting and interpreting marketing data, and developing a marketing plan.
- Analyze marketing strategies, including market segmentation; factors affecting marketing decisions; and methods of evaluating markets and forecasting sales.
- Analyze the role of marketing in product/service design and development, the product life cycle, and strategies for determining the product mix.
- Apply principles and procedures related to product/service placement and distribution.
- Apply knowledge of consumer behavior and consumer decision making, the selling process, and strategies for increasing customer satisfaction.
Sample Item:
At which of the following stages in the product life cycle would a marketing strategy
of differentiating the product by producing related product lines be most advantageous?
- Introduction
- Growth
- Maturity
- Decline
Correct Response and Explanation (Show Correct ResponseHide Correct Response)
C. This question requires the examinee to analyze the product life cycle
and strategies for determining the product mix. Differentiating a product by producing
related product lines is most advantageous during the Maturity phase of a product's life
cycle. During the Maturity phase, the product is well established, but sales are no
longer increasing and will likely begin to decline as competing products capture a larger
share of the market. Differentiating the product breaks up the target market for the
product into a number of smaller niche markets, each with its own, more narrowly targeted,
product. Although sales of each element of the product line will likely be less than
those of the original product, the line of related products as a group may enter a new
period of sales growth.
Descriptive Statements:
- Demonstrate knowledge of types of e-commerce, the impact of e-commerce on the global economy, and the advantages and disadvantages of marketing goods and services over the Internet.
- Analyze market research, marketing strategies, product/service planning and placement, and product distribution for Internet businesses.
- Compare e-commerce and conventional business characteristics, tactics, and strategies.
- Analyze strategies and issues related to starting an Internet business and factors that influence the success or failure of Internet start-ups.
Sample Item:
Which of the following best describes one use of e-commerce for one-to-one marketing?
- Banner ads for health supplements appear on the pages of a Web site that deals
with fitness and health issues.
- Users logging on to a store's Web site are greeted by product recommendations
based on previous purchases from that store.
- Several companies that sell different products to the same target audience place
links to one another's Web sites on their own Web sites.
- E-mails advertising a sale at a regional department store chain are sent to people
living in the store's geographical region.
Correct Response and Explanation (Show Correct ResponseHide Correct Response)
B. This question requires the examinee to demonstrate knowledge of types
of e-commerce. E-commerce marketing efforts may target very wide audiences (e.g., pop-ups)
or very narrow audiences (e.g., narrowly targeted e-mails). Internet technology allows a
company to collect data about a customer's purchases from a Web site and analyze those
purchases to develop a profile of the customer's preferences. The company can use this
profile to suggest products that the customer might be interested in when he or she logs
on to the site in the future. This is an example of extremely narrow, essentially
one-to-one marketing, where a company's marketing message is tailored to fit each customer's
demonstrated preferences.
Descriptive Statements:
- Analyze the role of entrepreneurs in business, the characteristics of successful entrepreneurs, and the advantages and disadvantages of business ownership.
- Identify types of business ownership and the characteristics, advantages, and disadvantages of each type.
- Analyze factors, procedures, and issues related to starting a new business and developing a business plan for a new business.
Sample Item:
Which of the following best describes one role of venture capitalists in U.S. business?
- providing funds to start up new businesses
- serving as intermediaries between buyers and sellers of stocks
- purchasing assets of bankrupt companies
- providing short-term loans to established businesses
Correct Response and Explanation (Show Correct ResponseHide Correct Response)
A. This question requires the examinee to analyze factors and issues
related to starting a new business. Starting a new business requires access to sufficient
capital to get the business off the ground and offset expected losses until the business
is well established. Unless the entrepreneur uses personal capital, he or she will have
to approach other individuals, banks, or other lending institutions for funds. Unlike
banks, venture capitalists provide capital to start a business in return for a stake in
the business, rather than for a guaranteed return in the form of interest on a loan.
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