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2008 DECA Ontario Provincials
Test 959
SPORTS AND ENTERTAINMENT TEAM DECISION
1. The form of business organization that limits the losses or the risks of the owner(s) is a
A. corporation.
C. consignment.
B. general partnership.
D. sole proprietorship.
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2. Which of the following is not a benefit of winning a major league championship in a market economy:
A. Increased licensed merchandise sales
C. Increased ticket sales
B. Increased payroll
D. Increased sponsorship fees
3. Sporting-goods manufacturers often like to use the producer to wholesaler to retailer to consumer distribution channel
because
A. wholesalers usually buy in large quantities.
C. it enables them to control channel activities.
B. wholesalers do not take title to the goods.
D. it enables them to reach large retailers directly.
4. In an attempt to eliminate unfair competition and to make it possible for channel members to operate independently,
most countries have established
A. tariff systems to increase revenues.
C. laws regulating distribution activities.
B. strict import and export requirements.
D. methods of monitoring shipments.
5. Which of the following is an unethical distribution practice that involves forcing a sporting-goods company to carry
another business's products:
A. Deception
B. Outsourcing
C. Bundling
D.
Coercion
6. Which of the following often is able to avoid conflict within a channel of distribution:
A. Strong leadership
C. Customer service
B. Modern technology
D. Governmental control
7. Which of the following is a reason why it is important for sports-apparel businesses to regularly evaluate channel
members and make modifications:
A. Market share is consistent.
C. Product life cycle is changing.
B. Distribution system is effective.
D. Legal assistance is necessary.
8. A characteristic of simple memorandums written by a hockey organization's employees is that they usually are
intended to be read by a(n)
A. group of suppliers.
C. planning committee.
B. board of directors.
D. internal audience.
9. Which of the following types of complex written reports usually presents and interprets facts:
A. Periodic
B. Informal
C. Analytical
D.
Informational
10. Which of the following would most benefit from a customer-service mindset that helps to reduce complaints and
increase profits:
A. Golf-store's competitors
C. Baseball fans
B. Sportswear company's employees
D. Event-planning businesses
11. Special events, demonstrations, contests, and coupons are activities that are controlled by a sporting-goods store's
____________ policies.
A. service
B. employee
C. promotional
D.
product
12. Which of the following would be classified as a service complaint:
A. Wrong size
B. Late delivery
C. Defective product
D.
Empathetic behavior
13. When negotiations between a players' union and the owners' organization cannot be reached, the players might vote to
determine if they should
A. become free agents.
C. go on strike.
B. play for international leagues.
D. ask for fan support.
2008 DECA Ontario Provincials
Test 959
SPORTS AND ENTERTAINMENT TEAM DECISION
14. Which of the following statements is true about the relationship between GDP and consumer saving:
A. The growth of GDP is supported by consumer saving.
B. GDP and consumer saving increase at the same rate.
C. The amount of consumer saving does not affect GDP.
D. Consumer saving is counted in GDP as part of transfer payments.
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15. What forms of utility are being created by a fitness-equipment store that extends its hours of operation and offers credit
to customers?
A. Possession and place
C. Time and possession
B. Place and time
D. Price and possession
16. Monica would like to open a fitness center in her area. However, she does not have enough capital saved at this time.
What business activity should Monica address first?
A. Accounting
C. Financial analysis
B. Information management
D. Marketing
17. In a private enterprise economic system, consumers can choose from a variety of sport products as a result of
A. the collection of taxes.
C. inflation.
B. limited government control.
D. competition.
18. Colleen will vote next week on the new contract that her union has negotiated with the soccer league’s management.
Union and management are in the __________ stage of the collective-bargaining process.
A. ratification of contract
C. preparation and research
B. tentative agreement
D. contract settlement
19. Seasonal unemployment results from changes in the weather or demand for certain products, while cyclical
unemployment is related to
A. environmental conditions worldwide.
C. industries dependent on calendar cycles.
B. the manufacture of more products.
D. swings in the business cycle.
20. Which of the following is a true statement regarding the new circumstances that people encounter:
A. Everyone experiences new circumstances at some time.
B. People can control most of the new circumstances they face.
C. Very few people experience anticipated circumstances.
D. People can usually avoid new circumstances by planning ahead.
21. One way that sport/event marketers can be ethical when communicating information to customers is by using
A. accurate language.
C. everyday slang.
B. complex terminology.
D. simple wording.
22. Rewards and recognition fulfill a very basic human need for
A. safety.
B. self-esteem.
C. understanding.
D.
friendship.
23. One of the reasons that sport/event businesses and consumers use credit is because it provides
A. reassurance.
C. interest.
B. convenience.
D. collateral.
24. A sporting-goods store employee marks and sells a volleyball set at the incorrect price. This is an example of a(n)
__________ business risk.
A. human
C. natural
B. economic
D. information
25. What is the first step for a new fitness-equipment retailer that wants to forecast its sales?
A. Study the past sales of similar businesses
B. Ask for advice from outside investors
C. Ask the chamber of commerce for assistance
D. Look at what is happening now in the marketplace
2008 DECA Ontario Provincials
Test 959
SPORTS AND ENTERTAINMENT TEAM DECISION
26. One reason sport marketers conduct a cost/benefit analysis is to evaluate
A. procedures.
C. resources.
B. alternatives.
D. specialties.
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27. A sport facility's management team would refer to the __________ budget before replacing an obsolete elevator
system.
A. income statement
C. merchandising
B. cash
D. capital
28. Which of the following is the major purpose of interviewing job applicants for a marketing position with a football
organization:
A. To fulfill legal requirements
C. To determine the applicant's qualifications
B. To identify job duties
D. To determine job descriptions
29. Which of the following situations might require the business to provide training and development:
A. A company-wide computer system has been installed for sports-apparel managers.
B. Mr. Garcia has placed an advertisement in a sports magazine.
C. Fitness Equipment Unlimited's affirmative-action program has not been changed.
D. Ms. Collins' sales staff met their quarterly sales quotas for the team's ticket sales.
30. A local children's theater group seeks volunteers to help with registration, meals, costumes, and ticket collection. An
important factor to remember when organizing volunteers for these activities is to
A. inform them of their financial responsibilities to the organization.
B. remind them that they are secondary to the performers.
C. evaluate their performance and give annual feedback.
D. make them feel they are valued contributors to the event.
31. Sport marketers often do business in distant countries, which makes it necessary for them to
A. overlook local traditions.
C. gather marketing information.
B. obtain government financing.
D. support political systems.
32. Using marketing research to find out how many consumers are in a sportswear store's market, where they live, and
what kinds of products they buy would help the store to
A. keep the sportwear store up-to-date.
C. describe the target market.
B. forecast economic trends.
D. maintain the sportswear store's image.
33. During an in-house staff meeting, what do athletic-department managers often use to explain complex report findings
and recommendations to employees?
A. Computer-generated presentations
C. Testimony from industry experts
B. Videoconferencing systems
D. Examples of customer questionnaires
34. What type of internal record might provide a sporting goods company with marketing information about the competition
and changes in the marketplace?
A. Sales activity reports
C. Customer comment cards
B. Accounts receivable reports
D. Employee performance reviews
35. Why do sport/event organizations maintain sales and accounting records?
A. To calculate salary information
C. To measure economic impact
B. To prepare promotional material
D. To determine household income
36. To improve a sport organization's effectiveness in providing customer satisfaction, the sport organization's marketing
activities and its other business functions should be
A. eliminated.
C. coordinated.
B. contrasted.
D. publicized.
37. The marketing of sport goods and services involves a __________ focus.
A. local
B. wholesale
C. retail
D.
personal
2008 DECA Ontario Provincials
Test 959
SPORTS AND ENTERTAINMENT TEAM DECISION
38. Sport/Event marketers know that obstacles to their plan might arise because
A. situations might change.
C. prices might increase.
B. technology might improve.
D. competitors might move in.
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39. A sporting-goods store directed its advertising to the majority of its customers who had been loyal to the store and its
merchandise for many years. The sporting-goods store had segmented the market based on
A. behavior.
C. demographics.
B. psychographics.
D. geographics.
40. Professional sport leagues often segment their target markets into which of the following three primary areas:
A. Psychographic, sociological, promotional
C. Demographic, productive, rational
B. Geographic, economic, technological
D. Demographic, psychographic, geographic
41. When conducting an external environmental analysis, bicycle manufacturers often focus on
A. marketing goals.
C. industry growth.
B. previous demand.
D. financial costs.
42. What is a potential threat a fitness-center manager might identify in a SWOT analysis?
A. Economy rebounding
C. Weak market image
B. Growing government regulation
D. Cost advantages
43. When determining whether to market its athletic shoes internationally, the Comfort-Fit Shoe Company should consider
economic factors such as the
A. court jurisdiction.
C. binding trade agreements.
B. language barriers.
D. currency exchange rates.
44. Which of the following is a factor that a sporting-goods distributor should consider in choosing a method of preparing its
sales forecasts:
A. Versatility of use
C. Marketability of data
B. Accuracy of prediction
D. Quantity of copies
45. An objective of a professional soccer team's marketing plan is to increase ticket sales by increasing the amount spent
on promotion. If current ticket sales are $2,350,750 and the soccer team spends 7% of that on promotion, how much
more will it spend if it increases the promotional budget to 9%?
A. $47,015
C. $48,975
B. $46,350
D. $49,230
46. Which of the following is an example of a treadmill manufacturer using sales analysis to control marketing planning:
A. Forecasting sales for future periods
C. Setting sales goals for all salespersons
B. Comparing sales goals with actual sales
D. Preparing sales reports for territories
47. Sport/Event businesses can evaluate the effectiveness of their marketing activities by comparing the original allocation
of resources with the
A. operating expenses.
C. fixed costs.
B. rate of depreciation.
D. return on investment.
48. What might result if an event promoter scheduled a major concert in a facility that consumers considered to be located
in an unsafe area?
A. Reduced sales
C. Limited access
B. Decreased parking
D. Shortened hours
49. Which of the following should a sporting-goods store employee do to prevent back injury when lifting objects:
A. Bend the spine.
C. Use leg muscles.
B. Stand up straight.
D. Avoid flexing knees.
2008 DECA Ontario Provincials
Test 959
SPORTS AND ENTERTAINMENT TEAM DECISION
50. What is one way that many large sporting-goods retailers decentralize their purchasing operations?
A. Dividing the country into districts
C. Warehousing items until needed
B. Organizing departments into one
D. Requisitioning sufficient quantities
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51. If an event marketer considers possible future problems during the process of developing a project plan, the event
marketer might be able to
A. eliminate resources.
C. negotiate contracts.
B. schedule employees.
D. control costs.
52. Which of the following is a method that sport/event marketers use to predict variable costs:
A. Analyze inventory records
C. Forecast profit margin
B. Review income data
D. Estimate sales volume
53. What should the people responsible for buying sportswear for resale or for use in the sportswear business do to control
expenses?
A. Entertain suppliers
C. Pay dividends
B. Negotiate discounts
D. Sign contracts
54. Which of the following is usually the responsibility of a sport/event facility's housekeeping department:
A. Ordering furniture
C. Repairing equipment
B. Storing cleaning supplies
D. Monitoring security systems
55. John is a cashier at the concession stand and is responsible for all sales transactions in the afternoon. John was given
the following funds: 2 rolls of pennies, 1 roll of nickels, 1 roll of dimes, 2 rolls of quarters, 10 one-dollar bills, 5 fivedollar bills, 1 ten-dollar bill and 1 twenty-dollar bill. Verify John's change fund.
A. $85.00
B. $93.00
C. $93.50
D.
$100.00
56. Writing your goals down helps you to __________ them.
A. change
B. remember
C. measure
D.
share
57. Sport/Event businesses often consider an employee's knowledge of the job, abilities, and skills when deciding whether
to __________ the employee.
A. counsel
B. evaluate
C. promote
D.
interview
58. One of the most effective ways of finding and obtaining a job is through the use of
A. prospecting.
B. interviewing.
C. cold calling.
D.
networking.
59. Chris, an event planner, wrote down the following information:1. Complete project by Friday. 2. Write news release. 3.
Schedule staff picnic. What step in the time-management process was Chris using?
A. Identifying time wasters
C. Setting objectives
B. Delegating tasks to others
D. Using free time effectively
60. What is one way that sport/event businesses often use spreadsheet software programs when deciding prices to charge
for certain products?
A. To print price tickets
C. To prepare financial reports
B. To analyze various possibilities
D. To organize customer lists
61. An advantage of profit-oriented pricing is that the sport/event business
A. can be more competitive.
C. is more likely to achieve its profit goals.
B. knows what prices will be most profitable.
D. is focused on making money.
62. Sportswear stores calculate break-even in units so they know
A. how much profit they will earn after they break even.
B. which products they should purchase for resale.
C. which costs are variable and which are fixed.
D. how many products they must sell to break even.
2008 DECA Ontario Provincials
Test 959
SPORTS AND ENTERTAINMENT TEAM DECISION
63. Materials, packaging, and advertising are expenses known as __________ costs.
A. fixed
B. unstable
C. variable
D.
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total
64. Which stage in the product life cycle uses advertising to persuade customers to try the sport product?
A. Introduction
B. Growth
C. Decline
D.
Maturity
65. Which of the following situations is an example of an unethical business practice in relation to product management:
A. Issuing a recall for defective products
B. Using environmentally friendly materials
C. Implementing ongoing obsolescence strategies
D. Taking precautions to protect packaging
66. Which of the following are creative-thinking techniques that people use to generate sport/event product ideas:
A. Observation and forced analogies
C. Unconscious problem solving and research
B. Brainstorming and mind mapping
D. Morphological analysis and observation
67. During the process of generating product ideas, sport/event businesses often bring together groups of employees to
A. arrange distribution.
C. review marketing techniques.
B. organize production.
D. screen the possibilities.
68. Baker Manufacturing designed a new model of a popular piece of fitness equipment that failed to meet the minimum
industry standards when the new model was tested. Baker Manufacturing should not
A. sell it at a lower price than older models.
C. scrap the model and design a new model.
B. rework the model to meet the standards.
D. sell it at the same price as older models.
69. The government agency ordered the sporting-goods company to recall a faulty product and send refunds to customers.
The recall and refunds were so expensive that the sporting-goods company was forced to
A. go out of business.
C. hire more employees.
B. increase production.
D. increase salaries.
70. When evaluating the customer experience, it is usually more effective for sport/event businesses to ask customers
A. to write reports.
C. for referrals.
B. about competitors.
D. specific questions.
71. Which of the following is a type of concession that sports franchises often operate in the sporting facility:
A. Coat-check area
C. Child-care center
B. Customer-service office
D. On-site retail shop
72. One reason sport/event marketers often bundle extra amenities with tickets is to
A. increase revenue.
C. improve coverage.
B. manage distribution.
D. control publicity.
73. What often occurs when a sport/event business fails to plan its services so that it can accommodate anticipated
increases in demand?
A. Higher market share
C. Lower competition
B. Economic slowdown
D. Customer defection
74. A sport/event business that says it tries harder because its product is not number one, is using product positioning to
A. compete.
B. organize.
C. upgrade.
D.
motivate.
75. Why do sportswear businesses want customers to demonstrate brand insistence for them?
A. Customers will bypass other sportswear brands because they are brand loyal and will buy only the desired
brand.
B. Sportswear businesses will not have to market themselves or advertise as much.
C. Research shows that customers will pick their brand in a double-blind test 95% of the time.
D. Their touch points pretty much take care of themselves.
2008 DECA Ontario Provincials
Test 959
SPORTS AND ENTERTAINMENT TEAM DECISION
76. What portion of the license agreement specifies the exact begin and end dates of the contract?
A. License grant
C. Warranties and obligations
B. Term
D. Restrictions and requirements
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77. A sporting-goods retailer arranges its merchandise so that the aisles and displays run parallel to one another. This is
an example of the __________ layout.
A. boutique
B. free-form
C. grid
D.
informal
78. What type of consumer information should sport marketers be able to provide businesses in order to encourage them
to sponsor certain sporting events?
A. Religious
B. Personality
C. Demographic
D.
Stereotypic
79. Why should a small sport/event business that takes advantage of the Internet as a marketing tool make sure its brand
stands out and connects with customers?
A. There are many things that distract people as they surf the Web.
B. The Internet is so slow-paced that people often become bored.
C. Most people become aware of brands from Internet advertisements.
D. Branding on the Internet is not very effective.
80. Which of the following is considered to be a disadvantage of promotion:
A. Promotion can encourage consumers to buy unwanted goods.
B. Promotional activities educate consumers.
C. Promotion encourages a higher standard of living.
D. Promotion may enhance a company's image.
81. An advantage in using technology such as television, radio, and the Internet is that a golf course can promote its
products to many people
A. at the same time.
C. without much effort.
B. with minimal cost.
D. under difficult circumstances.
82. What form of advertising involves a company paying an athlete to appear in a television commercial or newspaper ad?
A. Testimonial
C. Promotion
B. Endorsement
D. Broadcast
83. To determine the cost efficiency of a media vehicle, an advertiser should consider
A. advertising development costs.
C. total cost of using media.
B. cost per thousand.
D. weighted cost per thousand.
84. An athletic shoe company that has no association with the Olympic games runs a television commercial congratulating
a track star for winning two gold medals. This is an example of
A. copyright infringement.
C. sales promotion.
B. ambush marketing.
D. nondesignated sponsorship.
85. A stadium deciding to place messages and team logos on electronic boards is an example of selecting
A. event signage.
C. sponsorships.
B. media usage.
D. network support.
86. One of the advantages of using specialty promotions is that they are
A. difficult to evaluate.
C. expensive to implement.
B. often ignored by customers.
D. effective for many businesses.
87. When stating the promotional objectives in a sport/event business's promotional plan, a sport/event marketer should
include realistic time frames and
A. market characteristics.
C. budgeting strategies.
B. product features.
D. measurement methods.
2008 DECA Ontario Provincials
Test 959
SPORTS AND ENTERTAINMENT TEAM DECISION
88. Which of the following is a reason why athletic shoe stores coordinate their promotional activities:
A. To expand operations
C. To attract customers
B. To increase advertising
D. To develop strategies
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89. A primary characteristic of an effective advertising campaign is that the sport/event marketer promotes products by
using a variety of media vehicles to communicate a
A. personalized message.
C. price advantage.
B. variety of illustrations.
D. similar theme.
90. The type of sale that is more profitable than others for a sport/event business is __________ sales.
A. repeat
B. initial
C. first
D.
singular
91. Customers often judge a fitness-equipment manufacturer's ethical standards on the basis of their initial and ongoing
contact with the manufacturer's
A. maintenance crew.
C. sales staff.
B. board of directors.
D. receiving personnel.
92. What information could a sportswear salesperson obtain by examining a ski jacket?
A. Price
B. Care
C. Value
D.
Texture
93. If a customer wants information about a treadmill's construction and materials, which of the following questions would
the customer ask:
A. What does this product do?
C. How is this product made?
B. When will I need to replace this product?
D. Is this a one-of-a-kind product?
94. Which of the following is one of the main features of a sport product:
A. Franchises
B. Athletes
C. Tickets
D.
Extensions
95. Suggestion selling is a technique used in the selling process to
A. reaffirm the buyer-seller relationship.
C. prescribe solutions to problems.
B. establish relationships with customers.
D. discover customers' needs.
96. A beginning step in the selling process when the sporting-goods salesperson greets the customer is referred to as the
A. "ice breaker."
B. approach.
C. acknowledgment.
D.
selling signal.
97. Which of the following is a good way to create interest during your sponsorship presentation:
A. Emphasize tangible components rather than benefits.
B. Avoid using quotes or statistics.
C. Provide demographic characteristics of your fan base.
D. Ask for the sale right away.
98. One of the main reasons for offering advance sale of tickets to sporting events is to facilitate
A. advertising.
B. purchasing.
C. planning.
D.
licensing.
99. What do amateur sport organizations often solicit in order to be able to operate?
A. Playing time
B. Media coverage
C. Free publicity.
100. The function of managerial control involves comparing what was planned with the
A. operating policies.
C. actual results.
B. primary goals.
D. established strategies.
D.
Grant money
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
9
1. A
Corporation. One of the advantages of a corporation is that the owners' losses or risks are limited to their investment in
the corporation. In a general partnership, the losses and risks are shared equally by both parties. A sole proprietor
bears all the business's losses or risks. Consignment is a purchase arrangement whereby products are sent to a
retailer who pays for the products only upon their sale.
SOURCE: BL:003
SOURCE: BA LAP 7—Own It Your Way
2. B
Increased payroll. The quest for a major league championship is a pursuit of corporate excellence. Winning teams
amass great numbers of fans. Great numbers of fans equal increases in revenue from ticket sales, licensed
merchandise sales, and sponsorship fees. A winning team might have an increased payroll, but that is a disadvantage
for the management rather than a benefit.
SOURCE: BL:058
SOURCE: BA LAP 10—Cover Your Bases
3. A
Wholesalers usually buy in large quantities. Many sporting-goods manufacturers cannot afford to fill requests for small
orders; however, small retailers are usually unable to place large orders. Therefore, wholesalers help to fill the gap
between producers and small retailers by buying large quantities and selling smaller quantities to individual retailers.
By using intermediaries, the sporting-goods manufacturers are giving up some of their channel control. Wholesalers do
take title to goods, but agents do not. Sporting-goods manufacturers use the producer to retailer to ultimate consumer
channel to reach large retailers indirectly.
SOURCE: CM:003
SOURCE: MB LAP 3—Channels of Distribution
4. C
Laws regulating distribution activities. Most countries throughout the world have established laws regulating distribution
activities to eliminate unfair competition and to make it possible for channel members to operate independently. These
laws benefit each country's economy because they prevent one business from having an unfair competitive advantage
over another business. Therefore, all businesses have an opportunity to succeed. Furthermore, the regulation of
distribution gives consumers more choices because they are not forced to buy from only one or two suppliers. Import
and export requirements, tariff systems, and methods of monitoring shipments do not eliminate unfair competition or
make it possible for channel members to operate independently.
SOURCE: CM:005
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 375-376]. Mason, OH: South-Western.
5. D
Coercion. Coercion occurs when one business forces another business to carry its products. The use of force is
unethical although it might not be illegal. For example, Business A tells a sporting-goods company that it must buy
Business A's products if the sporting-goods company expects Business A to buy the products of the sporting-goods
company. Business A is forcing the sporting-goods company to buy its products. Outsourcing involves obtaining
assistance from outside the business to achieve the business's objectives. Bundling involves selling several products
together as one package. Deception involves trickery and deceit.
SOURCE: CM:006
SOURCE: Monczka, R., Trent, R., & Handfield, R. (2002). Purchasing and supply chain management (2nd ed.) [pp.
526-527]. Mason, OH: South-Western.
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
10
6. A
Strong leadership. Strong leaders have the authority and power to influence others and direct the actions of others. A
channel of distribution that has strong leadership is often able to avoid conflict within the channel because the leader
has the authority to set goals for the entire channel and demand cooperation, which reduces the possibility of conflict.
The leader's authority makes it possible for the leader to assign specific responsibilities to each channel member and
persuade members to accomplish their individual tasks. When each member is cooperating and working for the good
of the channel, there is less chance of conflict. Modern technology, customer service, and governmental control are not
able to avoid conflict within a channel of distribution.
SOURCE: CM:008
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [pp. 444-445]. Mason, OH:
Thomson/South-Western.
7. C
Product life cycle is changing. Goods and services move through various stages from the time they are introduced on
the market until they are taken off the market. These changes in life cycle often make it necessary for sports-apparel
businesses to evaluate channel members and make modifications because different channels are more effective
during different stages of a product's life. For example, trendy new products may sell better if distributed in a specialty
store, while products that have reached the maturity stage may sell better if distributed by mass merchandisers. To
remain effective, a sports-apparel business must evaluate channel members based on the product's life cycle and
make modifications when necessary. Channel members usually do not provide legal assistance to sports-apparel
businesses. If the distribution system is effective and the market share is consistent, sports-apparel businesses
probably would not need to modify the way products are distributed.
SOURCE: CM:011
SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [pp. 503-504]. Upper Saddle River, NJ: Prentice Hall.
8. D
Internal audience. Memorandums are a type of simple written report that a hockey organization's employees often
prepare to provide information to others within the hockey organization. Since memorandums are usually intended to
be read by an internal audience, they are less formal and shorter than traditional business letters. They often provide
information about the progress of current projects or an explanation of upcoming events. Not all businesses have
boards of directors or planning committees. However, these are examples of internal audiences that may, or may not,
receive memorandums. A group of suppliers is an external audience.
SOURCE: CO:094
SOURCE: Lesikar, R.V., & Flatley, M.E. (2005). Basic business communication: Skills for empowering the Internet
generation (10th ed.) [pp. 97-99]. Boston: McGraw-Hill/Irwin.
9. C
Analytical. An analytical report is a type of complex written report that usually presents information, analyzes it, reaches
a conclusion, and makes recommendations. The purpose of the analytical report is to interpret data and offer
suggestions that would be useful to business managers in making decisions. An informal report is a simple written
report such as a memorandum. A periodic report is a simple report issued at certain times such as daily or weekly. An
informational report is a complex written report that only presents the facts.
SOURCE: CO:009
SOURCE: Locker, K.O. (2000). Business and administrative communication (5th ed.) [pp. 405-407]. Boston:
Irwin/McGraw-Hill.
10. D
Event-planning businesses. Reduced complaints, repeat business, and greater profits are normally the results of
having a customer-service mindset. Benefits to employees may include promotions or raises. Benefits to the baseball
fans would include having a more satisfactory experience when attending a baseball game. Golf-store competitors
would not benefit from another golf store practicing a customer-service mindset.
SOURCE: CR:004
SOURCE: HR LAP 32—Customer-Service Mindset
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
11
11. C
Promotional. Sporting-goods stores develop promotional policies to govern such activities as contests, coupons, prizes,
and special events intended to attract customers and to increase sales. Product policies involve the kinds of products
that sporting-goods businesses decide to offer for sale. Employee policies explain how employees are to act and how
they are to deal with customers. Service policies involve special features, such as repairs and delivery, that a sportinggoods business offers to encourage customers to choose the business rather than another.
SOURCE: CR:007
SOURCE: HR LAP 25—Interpreting Business Policies
12. B
Late delivery. The quality of service provided customers can result in complaints. For example, customers will complain
when deliveries are late. A defective item or incorrect size are product complaints. Empathetic behavior should result in
customer satisfaction rather than in customer complaints.
SOURCE: CR:010
SOURCE: HR LAP 23—Handling Customer Complaints
13. C
Go on strike. The purpose of players' unions is to protect each player's rights and interests in terms of playing
conditions, contracts, and salaries as a single unit. If players and owners cannot agree on terms (e.g., NHL and salary
caps), the players might decide to not play or to go on strike. Since games are not occurring, revenue is not being
generated, employees are not working, and consumer spending decreases. Free agency refers to an athlete's ability to
negotiate his/her contract with his/her existing team or with another team. Since contract requirements vary among
sport leagues, rules regarding players becoming free agents vary and, therefore, are not always a union voting option.
Depending on the terms of the players' contracts, players might decide to play for international leagues individually
rather than as a group or union. Players do not generally vote to determine if they should ask for their fans' support.
SOURCE: EC:053
SOURCE: Parks, J.B., & Quarterman, J. (2003). Contemporary sport management (2nd ed.)
[pp. 302-304]. Champaign, IL: Human Kinetics.
14. A
The growth of GDP is supported by consumer saving. When consumers increase their savings, financial institutions
have more money to loan to businesses for the purchase of capital goods. This helps businesses and the GDP to
grow. There is no ratio between the growth of GDP and consumer saving. Consumer saving is not part of transfer
payments—payments made by the government for which no goods or services are received in exchange.
SOURCE: EC:017
SOURCE: EC LAP 1—Gross Domestic Product
15. C
Time and possession. Time utility is the usefulness created when products are available at the time consumers need
them. Time utility may be created by extending hours so the fitness-equipment store is open when the customer wants
to buy. Possession utility is the usefulness created when ownership of a fitness product is transferred from seller to
user. Credit will often help to create possession utility by making it easier for customers to buy. Place utility is not
affected by increasing hours or offering credit. Price is not a form of utility but a marketing function.
SOURCE: EC:004
SOURCE: EC LAP 13—Use It
16. C
Financial analysis. This is the process of planning, maintaining, monitoring, controlling, and reporting the use of
financial resources. Aspects of this activity involve obtaining funds and using them to achieve the goals of the
business. The accounting activities keep and interpret financial records. Information management is the process of
coordinating the resources pertaining to business knowledge, facts, or data. Marketing is the process of creating,
communicating, and delivering value to customers and managing customer relationships in ways that benefit the
organization and its stakeholders.
SOURCE: EC:071
SOURCE: EC LAP 19—Strictly Business
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
12
17. D
Competition. Competition, the rivalry among businesses to attract scarce customer dollars, results in a variety of
benefits. These benefits include consumers' getting what they want, when they want it, and where they want it; efficient
production; consumers' having a variety of products from which to choose; consumers' being protected from shoddy
merchandise; lack of market domination; and fair prices. Limited government control is a characteristic of a private
enterprise economy. The government collects taxes to obtain funds it needs to operate the system. Inflation is a rapid
rise in prices, usually occurring when demand exceeds supply.
SOURCE: EC:009
SOURCE: EC LAP 15—People Power (The Private Enterprise System)
18. B
Tentative agreement. Tentative agreement is the stage at which union and the soccer league's management have
agreed on the terms of a contract but still need union members to approve or reject the contract. Preparation and
research occur before labor negotiations begin. A ratified contract is one that union members have approved. Contract
settlement occurs when a ratified contract has been signed by union and the soccer league's management.
SOURCE: EC:015
SOURCE: EC LAP 5—Organized Labor
19. D
Swings in the business cycle. During a recession, people may delay buying certain kinds of durable goods, such as
new homes, cars, or appliances. With slower sales, manufacturers often have to lay off employees until the economy
recovers. Even though this is a serious occurrence, employees who have been laid off under these circumstances
often get their jobs back when the economy improves, so many try to "wait out" a recession. The manufacture of more
products often increases the employment rate. Cyclical unemployment is not related to calendar cycles or to
environmental conditions worldwide.
SOURCE: EC:082
SOURCE: Gottheil, F.M. (1999). Principles of economics (2nd ed.) [p. 511]. Cincinnati: South-Western College.
20. A
Everyone experiences new circumstances at some time. All people experience new circumstances during their lives.
Therefore, new circumstances are unavoidable. People cannot always control the new situations or circumstances that
occur in their lives, but they can learn how to manage them. People experience both expected and unexpected
circumstances. Although it is possible to plan for some new circumstances in advance, people also experience
unexpected circumstances. Unexpected circumstances require people to react without preparation.
SOURCE: EI:006
SOURCE: QS LAP 15—Stuff Happens
21. A
Accurate language. Being ethical when communicating information to fans or customers involves telling the truth and
not misrepresenting the sport/event business or its products. One way that sport marketers can be ethical is by using
accurate language that clearly explains or describes goods, services, or other issues. The use of accurate language
helps sport/event marketers to avoid providing misleading information. The use of simple wording, complex
terminology, and everyday slang may be unethical if the language is inaccurate and people are misled.
SOURCE: EI:038
SOURCE: Hyden, J.S., Jordan, A.K., Steinauer, M.H., & Jones, M.J. (1999). Communicating for success (2nd ed.) [p.
10]. Cincinnati: South-Western Educational.
22. B
Self-esteem. Humans have a very basic need for feeling important and respected. Self-esteem and self-respect are
shaped in part by the messages we receive from those around us, including recognition for our efforts and
contributions. Safety, understanding, and friendship also are very basic human needs, but they are not fulfilled by
rewards and recognition.
SOURCE: EI:014
SOURCE: QS LAP 13—Gimme Five!
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
13
23. B
Convenience. Credit allows sport/event businesses and consumers to pay for several different purchases at one time
with a single payment. It reduces the need to carry cash and provides the convenience of ordering by telephone.
Collateral is anything of value belonging to the borrower which is pledged to the lender to guarantee that the loan will
be repaid. Interest is the fee which lenders charge borrowers for the use of credit. Credit does not provide reassurance,
or comfort.
SOURCE: FI:002
SOURCE: FI LAP 2—Credit and Its Importance
24. A
Human. Human risks are chances of loss resulting from human weakness and unpredictability. Examples include
carelessness and incompetence, human traits that can cause losses for businesses. Natural risks result from natural
causes such as fires and floods. Economic risks are risks related to changes in the market that force a lowering of
prices, a change of product, or even failure of businesses. Information is not a type of business risk.
SOURCE: FI:084
SOURCE: BA LAP 2—Risk Management
25. A
Study the past sales of similar businesses. Since a new business has no past sales records of its own, the business
should study the past sales of other, similar businesses. Such information is available from industry publications,
government reports, or trade associations. The next step would be to look at what is happening now in the
marketplace. Not all businesses have outside investors, and their advice about future sales may not be helpful. The
chamber of commerce offers other kinds of assistance to new businesses.
SOURCE: FI:096
SOURCE: IM LAP 4—Forecasting Sales
26. B
Alternatives. Sport marketers often conduct a cost/benefit analysis when making economic decisions. One reason to
do this is to evaluate the various alternatives before making a decision. For example, a sport organization that is
planning to expand would consider the cost of building a new location, renting an existing facility, sharing space with
another business, etc. These are alternatives. The sport organization analyzes the cost of each alternative and the
benefit to decide which alternative is the best choice. Sport marketers do not conduct a cost/benefit analysis to
evaluate procedures, resources, or specialties.
SOURCE: FI:357
SOURCE: Clayton, G.E. (2005). Economics: Principles & practices (pp. 19-24). New York: Glencoe/McGraw-Hill.
27. D
Capital. The capital budget is a financial plan for replacing fixed assets. A cash budget estimates all income and
payments. A merchandising budget enables management to plan and control purchases of merchandise for resale. An
income statement budget shows expected sales, costs, and expenses for a specific future period.
SOURCE: FI:099
SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.)
[pp. 396-398]. Cincinnati: South-Western.
28. C
To determine the applicant's qualifications. Interviewing job applicants gives employers (e.g., football organizations) the
opportunity to evaluate the applicant's background, interests, goals, and personal characteristics. The interviewer can
also answer any questions the applicant may have about the organization. There is no law requiring job interviews. Job
descriptions and identification of job duties are completed prior to interviewing prospective candidates.
SOURCE: HR:356
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 812, 817-818). New York:
Glencoe/McGraw-Hill.
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
14
29. A
A company-wide computer system has been installed for sports-apparel managers. The introduction of new equipment
often creates the need for training and development. This helps employees and the business to derive maximum
benefit from the equipment. The other alternatives describe situations in which training and development are not
currently needed since no change has been made or work is proceeding satisfactorily.
SOURCE: HR:363
SOURCE: MN LAP 50—Manager/Supervisor Training
30. D
Make them feel they are valued contributors to the event. This creates a positive environment in which they will be glad
to give their time and energy. Generally, volunteers do not have financial responsibilities. It is advisable to monitor
volunteers' performance and carefully give constructive feedback on a regular basis rather than an annual basis. Make
them feel they are important, not secondary to others.
SOURCE: HR:382
SOURCE: McNamara, C. (n.d.). Developing and Managing Volunteer Programs. Retrieved October 17, 2007, from
http://www.mapnp.org/library/staffing/outsrcng/volnteer/volnteer.htm#anchor1270094.
31. C
Gather marketing information. Sport-Marketing information has become essential to the success of modern businesses
in the sport/event industry. Sport marketers today often do business in areas which are far from the company's original
location or home office. Managers need to gather and analyze information about these distant markets in order to
make decisions concerning them. Sport-Marketers that operate in foreign countries usually try to avoid becoming
involved in local politics. They are mindful of local traditions and make every attempt to act accordingly. Many
businesses in the sport/event industry are privately owned and do not need government financing in order to operate in
foreign countries.
SOURCE: IM:001
SOURCE: IM LAP 2—Marketing-Information Management
32. C
Describe the target market. The target market is the group of consumers to whom the sportswear store wants to sell its
products. Sportswear stores use marketing research to determine the size of the target market, its location, and the
products the market is most likely to buy. Economic trends can be forecasted by gathering information about past and
present economic conditions. Describing the target market does not keep the sportswear store up-to-date or maintain
its image, although the information could be useful in those efforts.
SOURCE: IM:010
SOURCE: IM LAP 5—Nature of Marketing Research
33. A
Computer-generated presentations. Using computer-generated presentations is often an effective way to explain
complex report findings and recommendations to groups. With the use of computer software, athletic-department
managers can create a wide range of multimedia presentations that include text, graphics, sound, and video. These
presentations hold the viewers' attention and graphically explain material that may be complex. Also, computergenerated presentations can be projected on a large screen, which makes them effective for groups.
Videoconferencing is used to communicate with employees who are in other locations rather than attending in-house
meetings. An athletic-department manager probably would not invite industry experts to participate in an in-house staff
meeting. An athletic-department manager might include an example of a customer questionnaire in a computergenerated presentation.
SOURCE: IM:193
SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach for the new
millennium (pp. 624-625). Boston: Irwin/McGraw-Hill.
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
15
34. A
Sales activity reports. Individual sales representatives who work for a sporting-goods company usually prepare monthly
sales activity reports that contain information not only about sales, but also about competitors' activities and any
changes that occur in the marketplace. Salespeople deal with customers daily and are in a position to find out what
their competitors are doing in order to sell their products. This might include information about sales techniques,
special pricing, unique services, or credit arrangements. Salespeople also find out when customers' preferences
change and when they may have more money available to spend. A sporting-goods company reviews this type of
marketing information in order to remain competitive and meet customers' changing needs. Accounts receivable
reports indicate all the monies owed to a business by its customers. Customer comment cards provide information
about how customers rate the business's overall performance. Employee performance reviews evaluate performance
on the job.
SOURCE: IM:186
SOURCE: Hair, J.F., Jr., Bush, R.P., & Ortinau, D.J. (2000). Marketing research: A practical approach for the new
millennium (pp. 96-97). Boston: Irwin/McGraw-Hill.
35. C
To measure economic impact. Organizations need to measure the economic impact that the sport/event has on the
organization. Organizations want to know if the sport/event generated a profit and if it was a sufficient profit for the
effort involved. To measure the economic impact, organizations maintain sales and accounting records that contain
information about income and expenses. Sport/Event organizations do not maintain sales and accounting records to
prepare promotional material, calculate salary information, or determine household income.
SOURCE: IM:255
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 86-87]. Champaign, IL:
Human Kinetics.
36. C
Coordinated. A sport organization that applies the marketing concept must focus all of its planning and activities on
satisfying customer needs. This requires the coordination of all marketing activities with each other and with all other
business functions. No viable marketing activities should be eliminated. Contrasting or publicizing the activities would
not improve customer satisfaction.
SOURCE: MK:001
SOURCE: BA LAP 11—Have It Your Way! (Marketing)
37. C
Retail. The marketing of sport goods and services involves a retail focus because it is directed towards the consumers
of sport. The purpose is to encourage fans and participants to buy certain sport goods and services. It is what
influences your decision to buy a certain brand or shop at a certain store. This type of marketing is not personal or local
because it is directed to all potential customers throughout the world. Wholesale involves the use of intermediaries to
move goods between producers and retailers.
SOURCE: MK:012
SOURCE: BA LAP 8—The Wide, Wide World of Sports Marketing
38. A
Situations might change. Sport/Event marketers know that obstacles to their plan may arise because situations might
change. Situations that might complicate the plan include an improvement in technology and economic ups-anddowns. The relocation of competitors and price increases are two likely outcomes of economic changes.
SOURCE: MP:001
SOURCE: IM LAP 7—Pick the Mix
39. A
Behavior. Behavior is the division of a market based on consumers' responses to a product. A type of behavioral
segmentation is the loyalty response, which involves those customers who purchase from one business regardless of
price or availability of other products. Demographics is the division of a market based on its physical and social
characteristics. Psychographics is the division of a market based on consumers' lifestyles and personalities.
Geographics is the division of a market based on where the consumers are located.
SOURCE: MP:003
SOURCE: IM LAP 9—Have We Met?
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
16
40. D
Demographic, psychographic, geographic. These are the three main ways to segment a target market. Demographic
segmentation is the division of a market on the basis of its physical and social characteristics. Psychographic
segmentation is the division of a market on the basis of consumers' lifestyles and personalities. Geographic
segmentation is the division of a market on the basis of where consumers are located. Productive, rational,
sociological, promotional, economic, and technological are not ways of segmenting target markets.
SOURCE: MP:005
SOURCE: Meyer, E.C., & Allen, K.R. (2000). Entrepreneurship and small business management: Teacher's manual
(2nd ed.) [pp. 92-93]. New York: Glencoe/McGraw-Hill.
41. C
Industry growth. Many bicycle manufacturers focus on industry growth when conducting an external environmental
analysis because the marketing strategies that a bicycle manufacturer develops often depend on how fast the industry
is growing. If the industry is growing rapidly, a bicycle manufacturer needs to develop a marketing plan to attract and
maintain customers and deal with increasing competition. If the industry is at the saturation level, a bicycle
manufacturer can only grow if it develops a marketing plan to try to take customers away from competitors. A bicycle
manufacturer conducts an environmental analysis to determine the current situation, rather than to focus on previous
demand. Conducting an environmental analysis helps a bicycle manufacturer to determine its marketing goals and the
financial costs involved in meeting those goals.
SOURCE: MP:008
SOURCE: Churchill, G.A., Jr., & Peter, J.P. (1998). Marketing: Creating value for customers (2nd ed.) [pp. 98-99].
Boston: Irwin/McGraw-Hill.
42. B
Growing government regulation. Growing government regulation is a potential threat that a SWOT (strengths,
weaknesses, opportunities, threats) analysis might identify. A cost advantage is an example of a potential strength. A
rebounding economy is an example of potential opportunity. Weak market image is an example of a potential
weakness.
SOURCE: MP:010
SOURCE: Dessler, G. (1998). Management: Leading people and organizations in the 21st century
(3rd ed.) [pp. 182-183]. Upper Saddle River, NJ: Prentice Hall.
43. D
Currency exchange rates. By watching economic trends, an athletic shoe company may find that a foreign country
presents a market opportunity for the business. One economic factor that an athletic shoe company considers is the
strength of the country's currency, or the value of the country's currency in relation to another country's currency.
Businesses located in one country often do not want to market athletic shoes in a country with a substantially less
valuable currency because the weak currency is not worth as much. Language barriers are social factors, and trade
agreements and court jurisdiction are political/legal considerations.
SOURCE: MP:011
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.)
[pp. 105-106, 108-109]. Mason, OH: Thomson/South-Western.
44. B
Accuracy of prediction. There are many factors for a sporting-goods distributor to consider in choosing a method of
preparing its sales forecasts. One of the main considerations is how accurate it will be. The method chosen must
provide a sales forecast that is as accurate as possible in order for it to be of the most use to the sporting-goods
distributor. A sporting-goods distributor does not consider quantity of copies or versatility of use when choosing a sales
forecast method. It also does not market the data presented.
SOURCE: MP:013
SOURCE: IM LAP 3—Nature of Sales Forecasts
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
17
45. A
$47,015. The objectives in a professional soccer team's marketing plan are usually intended to lead to an increase in
ticket sales. When preparing its marketing plan, a professional soccer team often establishes the amount it will spend
on promotional activities in order to achieve a specific objective. Many sport organizations base the amount spent on
promotion on the amount of ticket sales. If the goal is to increase ticket sales by increasing promotion, the soccer team
usually will allocate more money for the promotional budget. To determine how much more a professional soccer team
will spend by increasing the promotional budget, first calculate the existing budget by multiplying current ticket sales by
the percentage spent on promotion ($2,350,750 x 7% or .07 = $164,552.50). Then, calculate the amount if the
percentage spent on promotion is increased ($2,350,750 x 9% or .09 = $211,567.50). Next, subtract the current
amount from the proposed amount to determine the increase ($211,567.50 - $164,552.50 = $47,015).
SOURCE: MP:018
SOURCE: U.S. Small Business Administration. (n.d.). Marketing plan components: Marketing objectives and
strategies. Retrieved October 18, 2007, from
http://www.sba.gov/smallbusinessplanner/manage/marketandprice/serv_whatdoyouwant.html
46. B
Comparing sales goals with actual sales. When a treadmill manufacturer compares and evaluates actual sales with the
sales goals, it is conducting a sales analysis. The purpose of a sales analysis is to measure performance in order to
make adjustments in the marketing plan, if necessary. If a treadmill manufacturer fails to achieve its sales goal, it
knows that it must make changes in order to increase sales. Part of a sales analysis also involves trying to identify the
reasons for not making goal. Sales analysis does not involve forecasting sales for future periods, setting sales goals for
all salespersons, or preparing sales reports for territories.
SOURCE: MP:019
SOURCE: Kotler, P. (2000). Marketing management (10th ed.) [p. 697]. Upper Saddle River, NJ: Prentice Hall.
47. D
Return on investment. The return on investment (ROI) is the profit that a sport/event business gains (e.g., sales
revenue) from the implementation of a specific activity (e.g., advertisement) in relation to the initial investment of time,
money, and personnel to carry out the activity. Depreciation refers to the reduction of value of goods occurring over
time. Fixed costs are business costs that are not affected by changes in sales volume. Operating expenses are all of
the expenses involved in running a sport/event business.
SOURCE: MP:022
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 528-529).
New York: Glencoe/McGraw-Hill.
48. A
Reduced sales. The location of a sports or entertainment facility often has an effect on sales. If consumers feel that a
facility is located in an unsafe area, they may be reluctant to purchase tickets to events. This would result in reduced
sales. Event promoters should be aware of consumers' concerns for safety and schedule events in appropriate
facilities. The location of a facility does not necessarily limit access or decrease parking. The length of an event would
not be shortened because of the facility's location.
SOURCE: OP:084
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 283-284]. Champaign, IL:
Human Kinetics.
49. C
Use leg muscles. The part of the body that is most likely to be injured on the job is the back. One way to prevent back
injury when lifting objects is to use leg muscles rather than the upper arm or back muscles. The sporting-goods store
employees should use their leg muscles to lift the load and to push themselves into a standing position. The sportinggoods store employees also should bend their knees and crouch as low to the object as possible rather than standing
up straight. When lifting, they should try to keep their spines as straight as possible to prevent strain.
SOURCE: OP:009
SOURCE: RM LAP 3—Handling Accidents
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
18
50. A
Dividing the country into districts. Some sporting-goods retailers have grown so large that central buying can no longer
effectively purchase for geographically distant locations. In response to this development, many large sporting-goods
retailers have decentralized their purchasing operations. This has been accomplished by dividing the country into
districts and delegating part of central buying's responsibility to district managers who are more familiar with local
businesses. Sporting-goods retailers do not decentralize purchasing operations by organizing departments into one,
warehousing items until needed, or requisitioning sufficient quantities.
SOURCE: OP:015
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials (pp. 488-489).
New York: Glencoe/McGraw-Hill.
51. D
Control costs. An effective project plan helps to control costs by considering potential problems that may arise. By
addressing problems in the planning stage, an event marketer is able to develop a method of dealing with potential
problems, which often eliminates the need to make costly changes while completing the project. Scheduling employees
is a routine part of developing a project plan but does not involve considering future problems. Considering future
problems does not help an event marketer to negotiate contracts or eliminate resources.
SOURCE: OP:001
SOURCE: DuBrin, A.J. (2003). Essentials of management (6th ed.) [pp. 114-115]. Mason, OH: South-Western.
52. D
Estimate sales volume. A sport/event marketer that is able to make a fairly accurate estimate of what its sales volume
will be can predict its variable costs. Sport/Event marketers use their past sales figures as a guide in estimating future
sales. The volume of future sales gives a sport/event marketer a fairly clear picture of the amount of expenditures that
will be needed to handle that volume. Sport/Event marketers do not analyze inventory records, review income data, or
forecast profit margin in order to predict variable costs.
SOURCE: OP:024
SOURCE: MN LAP 57—Operating Expenses
53. B
Negotiate discounts. Since employees with buying responsibilities are spending the company's money, they are in a
good position to help the sportswear business to control expenses. These employees should make sure that they
obtain the best possible purchasing terms when they buy. That includes negotiating for any available discounts that will
reduce the purchase price and save money. Entertaining suppliers and signing contracts are not ways of controlling
expenses. Corporations, not purchasing agents, pay dividends to stockholders.
SOURCE: OP:025
SOURCE: MN LAP 56—Employee Role in Expense Control
54. B
Storing cleaning supplies. A sport/event facility's housekeeping department usually is responsible for storing the
cleaning supplies it needs to perform its duties. Housekeeping departments often have their own storage areas that are
secured in order to prevent theft. All the necessary supplies and equipment are kept in that one location and logged in
and out so that the housekeeping manager knows exactly what is in stock and when additional supplies should be
ordered. A sport/event facility's purchasing department usually is responsible for ordering furniture. The maintenance
department is responsible for making repairs. The security staff is responsible for a sport/event facility's security
system.
SOURCE: OP:032
SOURCE: Educational Institute of the American Hotel & Motel Association. (1999). Lodging management program:
Year one (pp. 237-239). Lansing, MI: Author.
55. B
$93.00. To verify the amount of money in a change fund, total all change and currency. In this situation, John had
$93.00 in the change fund (2 rolls of pennies = $1.00; 1 roll of nickels = $2.00; 1 roll of dimes = $5.00; 2 rolls of
quarters = $20.00; 10 one-dollar bills = $10.00; 5 five-dollar bills = $25.00; 1 ten-dollar bill = $10.00; and 1 twenty-dollar
bill = $20.00 for a total of $ 93.00).
SOURCE: OP:194
SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 152-154). Cincinnati: SouthWestern Educational.
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
19
56. B
Remember. Putting the goal down in black and white makes the goal real, and it also serves as a reminder. Sharing is
telling others about your goals, which helps you to be committed to your goals. Writing goals down will not help you to
measure them, and it does not change them.
SOURCE: PD:018
SOURCE: HR LAP 6—Goal Setting
57. C
Promote. An employee who understands the job and has the appropriate abilities and skills is often considered for
promotion. Many sport/event businesses prefer to promote from within and review an employee's performance in order
to make a decision. Employees who develop and improve their skills and abilities often move up the career ladder and
are rewarded with promotions and additional responsibilities. A good evaluation might lead to an interview for a more
important position and a promotion. Sport/Event businesses counsel employees when they are not performing as
expected.
SOURCE: PD:035
SOURCE: Daggett, W.R. & Miles, J.E. (1998). The dynamics of work: Introduction to occupations
(2nd ed.) [pp. 137-139]. Cincinnati: South-Western Educational.
58. D
Networking. Networking is the process of exchanging information with others for the purpose of professional or
business development and/or advancement. Networking is an effective way to find and obtain jobs because it involves
talking with friends, relatives, and former employers who know about certain industries and businesses. These contacts
can pass on information about openings and make referrals. After applying for a job, individuals usually interview with
the business. Cold calling involves making unannounced visits to a business. Prospecting is the act of identifying any
person or organization with the potential to buy a product.
SOURCE: PD:037
SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 112-114).
New York: Glencoe/McGraw-Hill.
59. C
Setting objectives. By setting objectives, Chris defined what needed to be accomplished. Activities are delegated when
others are asked to do them. Free time is time left after tasks are completed or planned activities are canceled. Time
wasters, including procrastination and unorganized work areas, should be identified and minimized.
SOURCE: PD:019
SOURCE: OP LAP 1—About Time (Time Management in Business)
60. B
To analyze various possibilities. Computer technology and advanced spreadsheet software programs make it possible
for businesses to analyze various possibilities and experiment with different prices before deciding on the actual price
to charge for certain products. A sport/event business can plug in different prices for various products to find out what
effect each price will have on profit. The software program analyzes and calculates the financial data. Sport/Event
businesses use spreadsheet programs to determine which price will be the most profitable as well as the most
appealing to customers before setting the price. Spreadsheet software programs do not print price tickets. A
sport/event business would use word-processing software to prepare financial reports. A sport/event business would
use database software to organize customer lists.
SOURCE: PI:016
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 162-167]. Woodland Hills, CA: Glencoe/McGraw-Hill.
61. C
Is more likely to achieve its profit goals. The sport/event business is more likely to earn the amount of profit it wants
because it has set specific profit goals. Since market conditions are always changing, it is difficult for sport/event
businesses to predict what prices will be profitable over time. The fact that the sport/event business is focused on
making money can be a disadvantage if not enough attention is paid to other areas such as the activities of
competitors.
SOURCE: PI:002
SOURCE: PI LAP 3—Factors Affecting Selling Price
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
20
62. D
How many products they must sell to break even. Break-even can be expressed in units or dollars. Calculating breakeven in units shows the sportswear store the number of units that must be sold to reach the break-even point. The
profit that will be earned beyond that point can only be estimated. Classifying costs as variable or fixed is part of the
process of calculating break-even. Selecting appropriate products for resale is part of the purchasing function.
SOURCE: PI:006
SOURCE: PI LAP 4—Tipping Point (Calculate Break-Even)
63. C
Variable. Expenses that change along with the amount of production are called variable costs. These costs include
expenses such as materials, packaging, and advertising. Fixed costs are expenses that stay the same no matter how
much of a sport/event product is being produced. Total costs are the sum of fixed and variable costs. Unstable costs
accurately describes variable costs, but it is not the correct term.
SOURCE: PI:047
SOURCE: PI LAP 7—Gauge Your Prices
64. A
Introduction. In the introduction stage, advertising is used to attract customers to a new sport product. In the growth
and maturity stages, planners must be ready to adjust advertising according to consumer acceptance. The decline
stage will focus on whether to keep the sport product or remove it from the market.
SOURCE: PM:001
SOURCE: PP LAP 5—Product/Service Planning
65. C
Implementing ongoing obsolescence strategies. Ethics are the basic principles that govern a person's or business's
behavior. If a business lacks morals or does not act in a socially responsible way, it may be behaving in an unethical
manner. Obsolescence is the state of being outdated. Some people believe that planned obsolescence for the sole
purpose of maximizing profits is unethical. For example, if a business designs a supplementary product so that
consumers must purchase updated versions of the supplementary product in order to use the primary product, the
business may be acting unethically. This is because most people have limited incomes and cannot afford to upgrade
expensive items every few months. Examples of ethical behavior include using environmentally friendly materials,
issuing recalls for defective products, and taking precautions to protect packaging.
SOURCE: PM:040
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 312-313]. Woodland Hills, CA: Glencoe/McGraw-Hill.
66. B
Brainstorming and mind mapping. Creative-thinking techniques are the specific processes that people use to generate
unique ideas, goods, or services. Most creative-thinking techniques can be used by one person or by a group of
people. Some creative-thinking techniques are brainstorming, mind mapping, forced analogies, unconscious problem
solving, and morphological analysis. Observation is a form of research, which people use to identify market
opportunities rather than to generate product ideas.
SOURCE: PM:127
SOURCE: PM LAP 11—Unleash Your Oh! Zone (Product Idea Generation)
67. D
Screen the possibilities. Sport/Event businesses often generate many ideas, but all of them are not realistic or possible.
To find the best idea, sport/event businesses often bring together groups of employees to screen the many product
possibilities. The employees analyze the ideas and consider whether they are appropriate for the sport/event business
and the business's current product mix. At this point, some ideas will be rejected as too risky or not profitable. Once
ideas are accepted and finalized, groups of employees might organize production, review marketing techniques, and
arrange distribution.
SOURCE: PM:129
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [pp. 286-288]. Mason, OH: South-Western.
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
21
68. D
Sell it at the same price as older models. Customers would expect the new model to meet the same standards as the
original model. Since the new model does not meet these standards, it might confuse and possibly irritate customers if
this model was sold at the same price as older models. Baker might scrap the new model and design a new model that
meets the standards or rework the new model so that it meets the standards. Baker should sell the new model at a
lower price because it does not meet the minimum industry standards.
SOURCE: PM:019
SOURCE: PM LAP 8—Grades and Standards
69. A
Go out of business. Companies that make unsafe or faulty products, even unintentionally, face the possibility of
expensive recalls and refunds that may force them out of business. Government agencies regulate the safety of
consumer products in order to protect customers and may order recalls and refunds. Companies in such a situation
would not increase production, hire more employees, or increase salaries.
SOURCE: PM:017
SOURCE: PP LAP 7—Consumer Protection in Product Planning
70. D
Specific questions. Sport/Event businesses evaluate the customer experience to find out if customers are satisfied with
the business and if the business is meeting the customers' expectations. To do that, sport/event businesses often send
questionnaires to customers or meet with customers to obtain feedback. The information they obtain from customers
helps sport/event businesses evaluate how they are doing as far as satisfying customers. If the feedback indicates
problems, sport/event businesses can make changes to provide a more satisfactory customer experience. Sport/Event
businesses do not send questionnaires to customers or meet with customers to develop a database, analyze the
competition, or organize information.
SOURCE: PM:138
SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 35-36). Mason, OH: South-Western.
71. D
On-site retail shop. Sports franchises have found a lucrative market in selling sports-related items at on-site retail
shops. These concessions usually offer fans a wide variety of sports-related equipment, clothing, and novelty items.
Sports franchises that operate on-site retail shops usually generate significant revenue by selling these goods to fans.
Customer-service offices are intended to provide information and assistance to consumers. Most sports franchises do
not provide child-care centers or coat-check areas.
SOURCE: PM:086
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 282, 295-296]. Champaign,
IL: Human Kinetics.
72. A
Increase revenue. Bundling extra amenities with tickets involves including certain additional products along with the
ticket. For example, a ticket to an event might also provide the individual with a souvenir T-shirt and a boxed lunch. The
price for the bundle is a little more than the price of only a ticket, but people are willing to pay more to obtain the extra
amenities. The higher price of the bundle increases revenue, which is one reason why sport/event marketers often
bundle amenities with tickets. Sport/Event marketers do not bundle amenities with tickets to manage distribution,
improve coverage, or control publicity.
SOURCE: PM:148
SOURCE: Supovitz, F. (2005). The sports event management and marketing playbook (pp. 306-307). New York:
John Wiley & Sons.
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
22
73. D
Customer defection. When customers are dissatisfied with a sport/event business's goods and services, they often go
to the sport/event business's competitors to purchase products—this is called customer defection. Sport/Event
businesses often have busy seasons and need to increase staffing to accommodate the customers' service needs. For
example, retailers often hire temporary help to work through the December holiday season because demand for gift
items and services is high. When a sport/event business does not plan to accommodate demand increases, customers
often become frustrated because they must wait to obtain products. And, because the customers' needs are not being
met, they go to another sport/event business that can provide the goods and services when the customers want them.
An economic slowdown does not occur when one sport/event business fails to plan for demand increases. Failing to
plan services to accommodate demand increases often results in more competition for the sport/event business and
lowers market share if customers go to the competition to have their needs met.
SOURCE: PM:036
SOURCE: Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: Concepts, strategies,
& cases (2nd ed.) [p. 56]. Orlando, FL: Harcourt.
74. A
Compete. Sport/Event businesses often position their products to compete successfully with other, similar products.
Saying that they try harder because their products are not number one is a way of positioning products to compete.
The goal is to make the product stand out and draw attention to the fact that, although the product is the same as
competitors' products, the sport/event business will try harder to satisfy customers. A sport/event business saying it
tries harder is not using product positioning to motivate, organize, or upgrade.
SOURCE: PM:042
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 559-561]. Woodland Hills, CA: Glencoe/McGraw-Hill.
75. A
Customers will bypass other sportswear brands because they are brand loyal and will buy only the desired brand.
Customers develop brand loyalty—a relationship with or preference for a particular brand—through repeated, positive
experiences. When customers refuse all other sportswear brands except the single brand they want, brand insistence
exists. Sportswear businesses try to cultivate brand insistence in customers so that they will repeatedly purchase their
items and will not be tempted to try something different. When customers demonstrate brand insistence, it does not
mean that sportswear businesses will no longer have to market themselves or advertise. The marketplace is dynamic,
ever-changing, and highly competitive. Sportswear businesses must nurture their customer relationships and
communicate with their customers on an ongoing basis in order to preserve their loyalty. Likewise, even when
customers are brand insistent, it does not mean that a sportswear business's touch points, or opportunities to interact
with customers, can be left to chance. Sportswear businesses must nurture relationships with even the most loyal
customers with just as much passion as they attempt to woo new ones. While most sportswear businesses would be
pleased to have customers select their brand in any kind of research, that is not why they want to develop customers
who are brand insistent. The proof of unwavering brand loyalty is in the depth and breadth of the relationships with
those customers, which translates into ongoing sales for the sportswear business.
SOURCE: PM:021
SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (The Nature of Branding)
76. B
Term. The term section of the license agreement specifies the exact begin and end dates of the contract and describes
the processes for contract renewal. The license grant part of the contract specifies exactly which rights and properties
are being licensed and what types of merchandise will be produced. The warranties and obligations section lists the
reasons the license can be terminated and spells out what will happen if either party violates the agreement.
Restrictions and requirements are a separate section of the license agreement.
SOURCE: PM:153
SOURCE: PM LAP 14—Permission Granted
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
23
77. C
Grid. A grid layout arranges merchandise in a rectangular shape and creates distinct, well-defined aisles for customer
movement. Because a grid arrangement is orderly, it provides customers the ability to move efficiently through the
store. A free-form layout incorporates a variety of displays in terms of size, shape, and style. The free-form layout is
designed to encourage customers to browse or "window" shop. The boutique layout separates merchandise displays
into distinct and separate areas, creating the illusion of a store within a store. Informal is a general term and is not
widely used to describe store layouts.
SOURCE: PM:034
SOURCE: Dunne, P., Lusch, R., & Griffith, D. (2002). Retailing (4th ed.) [pp. 506, 508]. Mason, OH: South-Western.
78. C
Demographic. Demographic information is descriptive consumer characteristics, such as age, gender, occupation,
income, education, health, and marital status. Sport marketers who are trying to attract sponsors for certain events
should obtain demographic information about the consumers who attend those events. Then, sport marketers can
contact potential sponsors who want to reach the type of market identified by the demographic information. Personality,
religious, and stereotypic information usually is not available, nor would it be particularly helpful to sport marketers in
obtaining sponsorships.
SOURCE: PM:157
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 259-261]. Champaign, IL:
Human Kinetics.
79. A
There are many things that distract people as they surf the Web. Not only does the Internet consist of millions of web
pages, it is plagued with pop-up ads, sweepstakes, and contests of all kinds. This makes it very easy for a person to
start out with a research goal in mind only to find themselves somewhere completely different from where they set out
to be. All of this can happen with a single click of the mouse button in a relatively fast-paced manner, which many
people consider to be far from boring. Traditional advertising through print, broadcast, and out-of-home media is still
the primary method in which people learn about brands. Amazon.com and Yahoo! are two great examples of how
powerful and effective branding on the Internet can truly be.
SOURCE: PM:126
SOURCE: PM LAP 10—Building Your Business's Brand
80. A
Promotion can encourage consumers to buy unwanted goods. Therefore, some people consider promotion to be
manipulative. In many cases, promotion is considered either to be in bad taste, vulgar, or insulting to human
intelligence. The fact that promotional activities educate, encourage a higher standard of living, and enhance a
company's image are advantages of promotion.
SOURCE: PR:002
SOURCE: PR LAP 4—Know Your Options (Types of Promotion)
81. A
At the same time. Many forms of technology allow businesses (e.g., golf courses) to communicate promotional
messages to many people simultaneously. Television and radio commercials are broadcast through electronic
airwaves, which have the capacity to reach thousands of people at the same time. In addition, satellite technology
allows many people to access the same Internet web site at the same time. Certain forms of technology, such as
television commercials, are expensive methods of communicating promotional messages and often take a lot of effort
to produce. An individual's difficult circumstances do not necessarily provide the business with an advantage when
using technology to promote products.
SOURCE: PR:100
SOURCE: Zikmund, W., & d'Amico, M. (2001). Marketing: Creating and keeping customers in an
e-commerce world (7th ed.) [p. 507]. Mason, OH: South-Western.
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
24
82. B
Endorsement. An endorsement is approval by a reputable external source. If a company pays an athlete to appear in
an advertisement, it is a celebrity endorsement. Endorsements are a form of advertising because the celebrity is
promoting a product. Endorsements are a common form of advertising in the sport/event industry. For example, an ad
for American Express featuring Tiger Woods is an endorsement. Broadcast is promotional media such as radio and
television. A testimonial is a statement by an identified user of a product proclaiming the benefits received from the use
of a product. Promotion is a marketing function needed to communicate information about goods, services, images,
and/or ideas to achieve a desired outcome.
SOURCE: PR:177
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 191-193]. Champaign, IL:
Human Kinetics.
83. D
Weighted cost per thousand. Cost efficiency is the cost of reaching potential prospects. The weighted cost per
thousand refers to the cost of reaching those individuals in the media's audience who are also in the advertiser's target
market. The cost per thousand refers to how much it costs to reach a thousand people through the media vehicle. The
total cost of using the media considers only the cost of the media, not how many people or prospects it will reach.
Advertising development costs refer to the expense of preparing an ad for the media and are not a measure of media
cost efficiency.
SOURCE: PR:010
SOURCE: PR LAP 5—Selecting Advertising Media
84. B
Ambush marketing. Ambush marketing is a promotional technique whereby a nonsponsoring business tries to
associate with an event in order to gain recognition as a sponsor. There are many strategies businesses can use to
engage in ambush marketing. One strategy involves associating with or sponsoring a specific athlete, performer, or
team. Sponsoring a person or team is often less expensive than sponsoring a large event such as the Olympics. When
a nonsponsor places advertising during a high-profile event and makes an association (e.g., congratulating a medal
winner) with someone or something related to the event, it is engaging in ambush marketing tactics. Sales promotion
refers to promotional activities other than advertising, personal selling, and publicity that stimulate customer sales.
Copyright infringement refers to individuals or organizations that use copyrighted material and are not authorized to do
so. Sponsorship is an agreement that allows a company to pay a fee to a team or an event for the right to affiliate itself
with that team or event.
SOURCE: PR:198
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [p. 370]. Champaign, IL: Human
Kinetics.
85. A
Event signage. A stadium uses signage to promote events and activities. The purpose of signage is to communicate
messages such as names of teams or sponsors. Electronic boards are a popular type of signage because messages
and logos can be changed quickly throughout the event. Also, this type of signage is graphically appealing and
encourages spectators to read the messages. Deciding to place messages and team logos on electronic boards is not
an example of selecting media usage, sponsorships, or network support.
SOURCE: PR:190
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 189-190]. Champaign, IL:
Human Kinetics.
86. D
Effective for many businesses. There are many types of specialty promotions, which means that most businesses will
be able to use one or several that are effective. As a result, advertisers in virtually every business segment now use
many different forms of specialty promotion. A study sponsored by the Specialty Advertising Association of Greater
New York suggests that consumers use these items and have a positive attitude toward the advertiser. Today,
specialty promotion is considered a necessary and effective part of the promotional mix because customers are often
influenced by it. Specialty promotions are often inexpensive to implement and easy to evaluate because they generate
an immediate response.
SOURCE: PR:106
SOURCE: Wells, W., Burnett, J., & Moriarty, S. (2003). Advertising principles and practice (6th ed.)
[pp. 430-433]. Upper Saddle River, NJ: Prentice Hall.
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
25
87. D
Measurement methods. A sport/event marketer must determine the appropriate techniques to use to measure the
sport/event business's promotional activities based on the established objectives. It is important to establish
measurement standards so the sport/event business can determine if the promotional activities are successful.
Product features and market characteristics are generally discussed in the situational analysis rather than the section
of the promotional plan that discusses objectives. A budgeting strategy refers to the manner in which sport/event
businesses allocate financial resources for business activities.
SOURCE: PR:073
SOURCE: Semenik, R.J. (2002). Promotion and integrated marketing communications (pp. 68, 81). Mason, OH:
South-Western.
88. C
To attract customers. One of the main reasons why athletic shoe stores coordinate their promotional activities is to
attract as many customers as possible. Promotional activities such as advertising, special events, and visual
merchandising are expensive; and the stores want to obtain the most benefit for their investment. Well-coordinated
activities have a better chance of reaching the most customers. Increasing advertising, expanding operations, and
developing strategies are not reasons for coordinating promotional activities.
SOURCE: PR:076
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2002). Marketing essentials (3rd ed.)
[pp. 302-304]. Woodland Hills, CA: Glencoe/McGraw-Hill.
89. D
Similar theme. An advertising campaign is a series of advertisements planned around a central theme or idea.
Although advertising campaigns might include a variety of illustrations, it is not a primary characteristic among all
advertising campaigns. Personalized messages(direct marketing) might be used in an advertising campaign as well as
emphasis on price; however, these are not characteristics of every advertising campaign.
SOURCE: PR:079
SOURCE: Boone, L.E., & Kurtz, D.L. (2004). Contemporary marketing (11th ed.) [p. 539]. Mason, OH:
Thomson/South-Western.
90. A
Repeat. It is very much to the sport/event organization's advantage to develop a loyal clientele because the cost of
making an initial, or first, sale to a customer is higher than the cost of making repeat sales. Therefore, repeat sales to a
client are more profitable for the sport/event business. Singular sales occur only once and have the same expense as
initial sales.
SOURCE: SE:828
SOURCE: SE LAP 115—Keep Them Loyal (Building Clientele)
91. C
Sales staff. Salespeople are usually the employees with whom customers are in ongoing contact. Therefore, it is
important for salespeople to make a good impression. Part of making a good impression is exhibiting ethical behavior
by being honest, trustworthy, and sincere. If the salesperson makes a positive impression on customers, the customers
will generally have a positive impression of the firm. Most customers do not have ongoing contact with a fitnessequipment manufacturer's board of directors, maintenance crew, and receiving personnel.
SOURCE: SE:106
SOURCE: SE LAP 129—Keep It Real—In Sales (Sales Ethics)
92. D
Texture. A lot of information is found by examining the product itself. A sportswear salesperson can determine a
product's texture by holding and touching the item. Through careful examination and observation, a salesperson should
be able to acquire product knowledge about any item. Information about price, care, and value cannot always be
obtained by examining a product.
SOURCE: SE:062
SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2006). Marketing essentials
(pp. 261-262, 266, 268). New York: Glencoe/McGraw-Hill.
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
26
93. C
How is this product made? Because customers want to make informed decisions, they often ask questions about
products' (e.g., treadmills) features before making their purchases. So, it is important for the sporting-goods
salesperson to know about a product's features to make the sale. If a customer wants to know how a treadmill is made,
s/he is requesting information about the construction or production process. So, a common question sport-equipment
salespeople encounter is, how is this product made? A question about a product's replacement cycle is about the
product's durability. When a customer asks about a product function or what it does, s/he wants to know about the
product's uses. A question about a one-of-a-kind product indicates that the customer wants to know about the product's
uniqueness or novelty.
SOURCE: SE:109
SOURCE: SE LAP 113—Find Features, Boost Benefits (Feature-Benefit Selling)
94. B
Athletes. The athletes are the stars, the main features, of a sport product such as a basketball game or a tennis match.
Without the athletes, there wouldn't be a sports product. Fans attend the game or match to see the athletes participate
and compete against each other. Fans often attend specific events because they want to watch certain athletes
perform. A franchise is a type of business ownership, and many professional sports teams are franchises. Tickets
provide admission to sporting events. Extensions are products that are related to the main event, such as team T-shirts
and ball caps.
SOURCE: SE:188
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 117,136]. Champaign, IL:
Human Kinetics.
95. A
Reaffirm the buyer-seller relationship. The final phase in the selling process involves reaffirming the buyer-seller
relationship. One technique that salespeople use to reaffirm the relationship is to use suggestion selling, which involves
recommending complementary products. By suggesting other products salespeople are reassuring customers that their
business is important. Before salespeople use suggestion selling, they prescribe solutions to problems, establish
relationships with customers, and discover customers' needs.
SOURCE: SE:048
SOURCE: SE LAP 126—The Selling Process
96. B
Approach. The approach is an attempt to gain the customer's attention. It is successful if you do, in fact, get the
attention of the customer. Acknowledging the customer's presence or using an "ice breaker" are different methods that
can be used in the approach. Selling signal is a distractor.
SOURCE: SE:110
SOURCE: SE LAP 101—Opening the Retail Sale
97. C
Provide demographic characteristics of your fan base. Providing demographic characteristics of your fan base is a
good way to create interest in the sponsorship opportunity. Potential sponsors will be interested to know if their target
market is the same as yours. In this step, you shouldn't address the tangible components or intangible benefits of the
sponsorship yet, nor are you ready to ask for the sale. Using quotes and statistics is helpful and always a good idea.
SOURCE: SE:321
SOURCE: SE LAP 127—Selling Sponsorships
98. B
Purchasing. The purpose of offering advance sale of tickets to sporting events is to make it easy for consumers to
purchase the tickets. Advance ticket sales make the tickets readily available when consumers want to buy. The goal of
advance tickets is to improve the distribution system that will lead to increased sales. The reason for offering advance
sale of tickets is not to facilitate advertising, planning, or licensing.
SOURCE: SE:276
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 296-298]. Champaign, IL:
Human Kinetics.
Test 959
SPORTS AND ENTERTAINMENT MARKETING — KEY
27
99. D
Grant money. Many amateur sport organizations are nonprofit groups that rely on government support or contributions
so they are able to operate. These organizations often solicit grant money from foundations or other groups that give
money to worthy causes. For example, youth athletic programs often solicit grant money from local foundations to
purchase equipment and uniforms. Amateur sport organizations do not solicit media coverage or free publicity in order
to be able to operate. Organizations solicit playing locations, such as school gymnasiums, rather than playing time.
SOURCE: SE:348
SOURCE: Mullin, B.J., Hardy, S., & Sutton, W.A. (2000). Sport marketing (2nd ed.) [pp. 260-261]. Champaign, IL:
Human Kinetics.
100. C
Actual results. Control is the management function that involves comparing what was planned with the actual results.
To be successful, businesses must be able to achieve what they plan. By monitoring the actual results, managers will
know if the business is performing as planned or if changes need to be made. Goals are the objectives the business
plans to achieve. Managerial control does not involve comparing what was planned with the operating policies or the
established strategies.
SOURCE: SM:004
SOURCE: Eggland, S.A., Dlabay, L.R., Burrow, J.L., & Ristau, R.A. (2000). Intro to business (4th ed.) [pp. 72-73].
Cincinnati: South-Western Educational.