30 Questions
What is the purpose of the Business Screen?
To categorize products based on their competitive capabilities
Which model is recommended to track external uncontrollable factors?
PESTEL Analysis Model
What does the Internal Environment Analysis focus on evaluating?
Internal competencies like marketing and organizational strengths
Which is NOT considered a factor in PESTEL Analysis Model?
Supply chain analysis
In the External Environment Analysis, which model can be used to assess the competitive forces in an industry?
Porter's 5 Forces Model
Which dimension is NOT typically evaluated in assessing a business using the Business Screen?
Technological advancements
What does the six-step approach aim to clarify?
Different kinds of demands in strategic decision making
How is Gross-margin return on inventory investment different from Sales per square foot?
It measures profit return instead of sales return
What is a key factor in calculating Gross margin return per square foot?
Sales per square foot
Which method of productivity analysis involves looking at the responsiveness of sales to various expenditures?
Analysis of Historical Relationships
What do most marketing managers rely on for productivity estimates?
Competitive Parity Analysis
What is the equivalent of Sales per square foot multiplied by gross profit margin percentage?
Gross margin return per square foot
What are semi-fixed costs?
Costs that do not change regardless of volume increases
What does productivity analysis in marketing involve?
Evaluating the influence of marketing programs on sales
How are sales-response functions used?
To represent relationships between price or marketing expenditure and sales
What does a Conventional Profit and Loss Statement reveal about changes in costs affecting sales volume?
Provides few clues on the impact of cost changes on sales volume
What aspect must retailers assess apart from margins and fixed costs to determine profitability?
Physical assets like space and financial assets like inventory investment
Which ratio is used to calculate the relationship between a product’s sales and the average dollar value of inventory held for that product?
Inventory Turnover ratio
What factor can influence the rate of adoption of a new product?
Value or experience compatibility
In the context of selective demand, what are managers primarily interested in understanding?
Alternative brands or suppliers
Which type of risk may exist when consumers believe there is a strong likelihood of making a poor decision with significant consequences?
Economical or financial risk
What type of risk is associated with the potential for using up a large amount of time in purchasing or using a product?
Time or convenience risk
When faced with many alternatives, consumers use decision rules to narrow down brands to a subset they would consider purchasing. What process is this referred to?
Identifying types of decision processes
What can slow down the rate of adoption of a new product if it conflicts with customers' prior usage experiences or broader value systems?
Value or experience compatibility
Who is involved in the buying center for a product?
All individuals involved in the buying decision
What does customer turnover refer to?
The rate at which an organization replaces individuals in its market due to buyer's characteristics change
How can primary demand be increased according to the text?
By improving willingness and ability to buy
What is the main determinant of the willingness to buy a product form or class?
Buyer's perception of the product's utility for one or more usage situations
Why may usage be limited for a product according to the text?
Availability of related products and services essential to satisfactory usage
What is important when identifying usage problems according to the text?
Identifying situations where usage problems occur
Test your knowledge on the SIX-STEP approach in strategic decision making for sales. Learn about concepts like sales per square foot, defining the relevant market, and gross-margin return on inventory investment.
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