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MBA MFT Study Questions With Verified
Answers.
Major segmentation variables (4) - answer✔(1) geographic, (2) demographic, (3) psychographic,
(4) behavioral
penetrated market - answer✔set of customers who are buying the company's product
target market - answer✔qualified available market the company decides to pursue
available market - answer✔set of consumers who have interest, income, and access to a
particular offer
potential market - answer✔set of consumer with a sufficient level of interest in a market offer
corporate culture - answer✔shared experiences, stories, beliefs, & norms that characterize an
organization
strategic marketing plan - answer✔lays out the target market and the firm's value proposition,
based on an analysis of the best market opportunities
5 stages of consumer buying process decision process - answer✔(1) need recognition, (2)
information search, (3) evaluation of alternatives, (4) purchase decision, (5) post-purchase
behavior
8 steps of business purchasing process - answer✔(1) identify need, (2) select specific product,
(3) appoint purchase team, (4) specify technicalities, (5) budget for purchase, (6) research
potential suppliers, (7) solicit bids, (8) award contracts
4 factors influencing consumer behavior - answer✔(1) cultural, (2) social, (3) personal, (4)
psychological
4 factors that influence business purchasing behavior - answer✔(1) environmental, (2)
organizational, (3) interpersonal, (4) individual
competitive intelligence - answer✔defining, gathering, analyzing, & distributing intelligence
about products, customers, competitors, and any aspects of the environment needed to support
executives & managers making strategic decisions for an organization
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managerial decision making process steps (6) - answer✔(1) establish the objective, (2) define the
problem, (3) identify possible solutions, (4) evaluate alternative courses of action, (5) implement
the decision, (6) acquire feedback
8 major models of marketing communication - answer✔(1) advertising, (2) sales promotion, (3)
events & experiences, (4) public relations & publicity, (5) direct marketing, (6) interactive
marketing, (7) word-of-mouth marketing, (8) personal selling
pull strategy - answer✔the manufacturer uses advertising and other communication to persuade
consumers to demand the product from intermediaries, thus inducing intermediaries to order it
push strategy - answer✔uses the manufacturer's sales force, trade promotion money, or other
means to induce intermediaries to carry, promote, & sell the product to end users
points-of-parity (POPs) - answer✔attributes or benefit associations that are not necessarily
unique to the brand but may be shared with other brands
points-of-difference (PODs) - answer✔attributes of benefits that consumers strongly associate
with a brand, positively evaluate, and believe they could NOT find to the same extent with a
competitive brand
posititioning - answer✔the act of designing a company's offering and image to occupy a
distinctive place in the minds of the target market
supersegment - answer✔set of segments sharing some exploitable similarity
5 key criteria market segments must rate favorably on to be useful - answer✔(1) measurable, (2)
sustainable, (3) accessible, (4) differentiable, (5) actionable
pyschographic - answer✔the science of using psychology & demographics to better understand
consumers
variables of demographic segmentation (6) - answer✔(1) age and life-cycle stage, (2) life stage,
(3) gender, (4) income, (5) generation, (6) race & culture
investment banking - answer✔a specific division of banking related to the creation of capital for
other companies, governments, and entities
weak form - answer✔assumes that all info contained in past price movements is reflected in the
current market price. info about recent trends in a stock price is no use in selecting a stock
semi-strong form - answer✔states the current market price reflects all publicly available
information. to gain abnormal returns insider info is needed
information efficiency - answer✔all relevant information about a stock is reflected in its price
(this is in a perfect world)
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strong form efficient - answer✔all info -- public and insider -- is reflected in the market price. no
abnormal returns
market efficiency - answer✔the degree to which stock prices reflect all available relevant
information
money market - answer✔a segment of the financial market in which financial instruments with
high liquidity and very short maturities are traded
capital markets - answer✔markets for buying and selling equity and debt instruments
security - answer✔a financial instrument that represents an ownership in a publicly-traded
corporation (stock), a creditor relationship with governmental body or corporation (bond) or
rights to an ownership as represented by an option
most common underlying assets of derivatives - answer✔stocks, bonds, commodities, currencies,
interest rates, market indexes
derivative - answer✔a security with a price that is dependent upon or derived from one or more
underlying assets. its value is determined by fluctuations in the underlying assets
futures - answer✔financial contracts obligating the buyer to purchase an asset (or the seller to
sell an asset) at a predetermined future date and price
option - answer✔a financial derivative that represents a contract sold by one party (option writer)
to another party (option holder). the contract offers the buyer the right to call or put a security at
an agreed upon price (strike price) during a certain period of time or on the exercise date
2 types of financial instruments - answer✔(1) cash instruments, (2) derivative instruments
financial instruments - answer✔assets that can be traded
INVENTORY TURNOVER = - answer✔SALES/INVENTORY
AVERAGE COLLECTION PERIOD = - answer✔DAYS (ACCOUNTS
RECEIVABLE)/CREDIT SALES
WORKING CAPITAL RATIO= - answer✔CURRENT ASSETS/CURRENT LIABILITIES
working capital managment - answer✔a company's managerial accounting strategy designed to
monitor and utilize the 2 component of working capital -- current assets and current liabilities
3 main dividend policies - answer✔(1) residual dividend policy, (2) dividend stability policy, (3)
hybrid dividend policy
