Strategic Decision Making in Sales: SIX-STEP Approach Quiz
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Questions and Answers

What is the purpose of the Business Screen?

  • To list uncontrollable factors affecting the business
  • To categorize products based on their competitive capabilities (correct)
  • To analyze the financial performance of a business
  • To evaluate the internal and external environments of a business unit

    • Which model is recommended to track external uncontrollable factors?

  • McKinsey 7-2 Model
  • PESTEL Analysis Model (correct)
  • Legislative Environmental Model
  • Porter's 5 Forces Model

    • What does the Internal Environment Analysis focus on evaluating?

  • Competitors' strengths and weaknesses
  • Political and Economical factors
  • Internal competencies like marketing and organizational strengths (correct)
  • PESTEL factors

    • Which is NOT considered a factor in PESTEL Analysis Model?

    <p>Supply chain analysis</p> Signup and view all the answers

    In the External Environment Analysis, which model can be used to assess the competitive forces in an industry?

    <p>Porter's 5 Forces Model</p> Signup and view all the answers

    Which dimension is NOT typically evaluated in assessing a business using the Business Screen?

    <p>Technological advancements</p> Signup and view all the answers

    What does the six-step approach aim to clarify?

    <p>Different kinds of demands in strategic decision making</p> Signup and view all the answers

    How is Gross-margin return on inventory investment different from Sales per square foot?

    <p>It measures profit return instead of sales return</p> Signup and view all the answers

    What is a key factor in calculating Gross margin return per square foot?

    <p>Sales per square foot</p> Signup and view all the answers

    Which method of productivity analysis involves looking at the responsiveness of sales to various expenditures?

    <p>Analysis of Historical Relationships</p> Signup and view all the answers

    What do most marketing managers rely on for productivity estimates?

    <p>Competitive Parity Analysis</p> Signup and view all the answers

    What is the equivalent of Sales per square foot multiplied by gross profit margin percentage?

    <p>Gross margin return per square foot</p> Signup and view all the answers

    What are semi-fixed costs?

    <p>Costs that do not change regardless of volume increases</p> Signup and view all the answers

    What does productivity analysis in marketing involve?

    <p>Evaluating the influence of marketing programs on sales</p> Signup and view all the answers

    How are sales-response functions used?

    <p>To represent relationships between price or marketing expenditure and sales</p> Signup and view all the answers

    What does a Conventional Profit and Loss Statement reveal about changes in costs affecting sales volume?

    <p>Provides few clues on the impact of cost changes on sales volume</p> Signup and view all the answers

    What aspect must retailers assess apart from margins and fixed costs to determine profitability?

    <p>Physical assets like space and financial assets like inventory investment</p> Signup and view all the answers

    Which ratio is used to calculate the relationship between a product’s sales and the average dollar value of inventory held for that product?

    <p>Inventory Turnover ratio</p> Signup and view all the answers

    What factor can influence the rate of adoption of a new product?

    <p>Value or experience compatibility</p> Signup and view all the answers

    In the context of selective demand, what are managers primarily interested in understanding?

    <p>Alternative brands or suppliers</p> Signup and view all the answers

    Which type of risk may exist when consumers believe there is a strong likelihood of making a poor decision with significant consequences?

    <p>Economical or financial risk</p> Signup and view all the answers

    What type of risk is associated with the potential for using up a large amount of time in purchasing or using a product?

    <p>Time or convenience risk</p> Signup and view all the answers

    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?

    <p>Identifying types of decision processes</p> Signup and view all the answers

    What can slow down the rate of adoption of a new product if it conflicts with customers' prior usage experiences or broader value systems?

    <p>Value or experience compatibility</p> Signup and view all the answers

    Who is involved in the buying center for a product?

    <p>All individuals involved in the buying decision</p> Signup and view all the answers

    What does customer turnover refer to?

    <p>The rate at which an organization replaces individuals in its market due to buyer's characteristics change</p> Signup and view all the answers

    How can primary demand be increased according to the text?

    <p>By improving willingness and ability to buy</p> Signup and view all the answers

    What is the main determinant of the willingness to buy a product form or class?

    <p>Buyer's perception of the product's utility for one or more usage situations</p> Signup and view all the answers

    Why may usage be limited for a product according to the text?

    <p>Availability of related products and services essential to satisfactory usage</p> Signup and view all the answers

    What is important when identifying usage problems according to the text?

    <p>Identifying situations where usage problems occur</p> Signup and view all the answers

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