Question 1

Ryan, an insurance salesperson, sells an insurance policy covering hurricane damage to Sean. However, as instructed by his company, Ryan fails to tell Sean that the policy does not include water damage caused by hurricane flooding. In this scenario,

Accepted Answer

Both the insurance company and the salesman can be held accountable for fraudulent sales as Ryan failed to disclose an important aspect of the policy, and the company instructed him to do so. The buyer cannot be expected to read every detail of the policy, and it is the responsibility of the salesperson and the company to provide accurate information about the product they are selling. The fact that water damage from flooding is not covered is a material fact that should have been disclosed to the buyer. Therefore, both the salesman and the company can be held liable for the fraudulent sale.

Question 2

In which of the following cases is a firm making a business decision based on a strength, as identified in a SWOT analysis?

Accepted Answer

Celeborn Foods is leveraging its product development team's significant experience in the market, which is a strength identified in a SWOT analysis.

Question 3

Tim, a musician, was embroiled in an online dispute with an airline company. Tim alleged that his guitar was manhandled by the staff and therefore he set up a blog and released two videos in order to convince others not to use the airline. Which stage of the 4E framework is seen in this scenario?

Accepted Answer

The scenario represents the Engage stage of the 4E framework, as Tim set up a blog and released videos to engage with others about his negative experience with the airline company.

Question 4

Which of the following is true of Millenials?

Accepted Answer

Millennials, also known as Generation Y, are typically defined as those born between 1981 and 1996.

Question 5

Pluto Inc., a market research company, collects data relating to its clients from sources such as Facebook, Twitter, blogs and review websites and assesses customers' feelings toward particular products. Which of the following methods is Pluto Inc., likely to use to achieve desired results?

Accepted Answer

Sentiment analysis is the process of determining what the sentiment expressed in a piece of text is (e.g. positive, negative, neutral). Given that Pluto Inc. collects customer feedback from social media and review websites, sentiment analysis is the most likely method they would use to analyze this data.

Question 6

A company's_____ specifies the marketing activities that a firm will undertake in a specific period of time.

Accepted Answer

A marketing plan is a comprehensive document that outlines a company's overall marketing strategy, including specific tactics and activities to be implemented during a set time period. A mission statement is a broad statement of the company's overall purpose and values, a code of conduct outlines ethical guidelines for behavior, a statement of purpose explains the reason for a company's existence, and the marketing mix refers specifically to the 4 P's of marketing (product, price, promotion, and place).

Question 7

In which of the following cases is a company changing its business strategy in response to a strength identified in a SWOT analysis?

Accepted Answer

Masada Motors is leveraging a strength (customer perception of safety and durability) identified in its SWOT analysis by emphasizing it in advertisements, thus changing its business strategy to capitalize on this strength.

Question 8

_____ is/are also known as the Digital Natives, because people in this group were born into a world that already was full of electronic gadgets and digital technologies, such as the Internet and social networks.

Accepted Answer

Generation Z is the group of people born in the mid-1990s to the mid-2000s, and they are also known as Digital Natives because they grew up in a world that has always been surrounded by digital technology. The other options, such as Generation X, Baby Boomers, Generation Y, and Millennials, may have experienced the advent of digital technology but were not born into it.

Question 9

When advertising content appears to be native to a platform (a news article, independent website, organic search result), the ethical thing to do is to:

Accepted Answer

Conspicuously disclosing when content is sponsored by an advertiser is the ethical thing to do. This allows users to differentiate between genuine content and advertising, and make informed decisions about their engagement with it. Failure to disclose sponsorship can lead to perceived deception and loss of trust in the platform and its advertisers.

Question 10

In conducting a SWOT analysis, Blue Sun Corp. notes that its production process is much more advanced than those of competitors. This will be considered one of the company's _____ in the SWOT analysis.

Accepted Answer

Having a more advanced production process than competitors is a strength as it gives Blue Sun Corp. an advantage in terms of efficiency and quality of products.

Question 11

_____ is a method of prospecting in which salespeople telephone or go to see potential customers without appointments.

Accepted Answer

Cold calling is a method of prospecting in which salespeople make unsolicited calls or visits to potential customers without any prior appointments. This technique is often used in industries such as real estate, insurance, and financial services. It can be challenging as it requires salespeople to quickly build rapport and persuade the prospect to listen to their pitch.

Question 12

BrewCraft Beer is a microbrewery that sells its beer at its own beer gardens in Central City. Though customers were initially unused to the concept of a beer garden, BrewCraft undertook a long-running social media campaign to popularize the concept. It also advertised the fact that all its ingredients were sources locally and sustainably. Which of the following would be considered the service that BrewCraft is selling customers?

Accepted Answer

The service that BrewCraft is primarily selling is the experience that customers have at its beer gardens, which includes the ambiance, atmosphere, and customer service. While the beer and the concept of a beer garden are important elements of this experience, they are not the primary service being sold. The fact that the ingredients are locally and sustainably sourced is a feature of the product, but not the main service. The use of social media is a marketing channel used to promote the service, but not part of the service itself.

Question 13

When a marketer conducts user generated content campaigns, it must:

Accepted Answer

It is important for the marketer to ensure that the users providing the content have the rights and authority over the materials being submitted to avoid any legal issues.

Question 14

Services are:

Accepted Answer

Services are intangible and cannot be separated from the producer. They are benefits that a customer receives in exchange for their payment, such as consulting, education, or healthcare. Physical objects sold in exchange for value are products, not services. The concepts and thoughts about ideas or causes refer to beliefs, not services. The benefits organizations receive in exchange for selling products refers to revenue or profit, not services. The concepts and philosophies that go into creating a good refer to design or development, not services.

Question 15

When conducting a SWOT analysis, an organization will identify opportunities and threats in _____.

Accepted Answer

Opportunities and threats in a SWOT analysis are external factors, and economic changes in the market are external to the organization.

Question 16

Talyn Cosmetics sells high-end cosmetics that are coveted by women, but are priced out of the budgets of most average buyers. Talyn wants to enter the Arian market and is conducting market research to identify the market segment on which it should focus its strategy. Researchers send out a questionnaire to a vast pool of potential customers in Aria and analyze the results. Which of the following questions should research analysts focus on to identify the target segment?

Accepted Answer

Question B directly asks about the participants' interest and budget for purchasing Talyn Cosmetics, which is crucial to identifying the target segment. Question A, C, D, and E may provide valuable insights, but they do not focus on the specific target segment Talyn is trying to identify.

Question 17

Jim was born after World War II in the year 1949 in the U.S. If most of his friends were born between 1957 and 1950, Jim and his friends would be considered part of _____.

Accepted Answer

Jim and his friends, born between 1946 and 1964, are considered baby boomers.

Question 18

If an endorser is represented as an actual user of the marketer's product, the endorsement can only be used as long as:

Accepted Answer

The endorsement can only be used as long as the endorser continues to use the product.

Question 19

Which of the following is considered the second "E" in 4E framework?

Accepted Answer

The answer of Which of the following is considered the...

Question 20

Which of the following is true of rule-of-thumb methods for allocating IMC budgets?

Accepted Answer

Rule-of-thumb methods for allocating IMC budgets typically use prior sales as the basis for determining the current communication budget. This method is often considered less effective than setting communication objectives and budgeting accordingly, as it does not take into account specific goals or market conditions.

Exam 1: Professional Certified Marketer