Deck 11: Small Business Marketing: Strategy and Research

Question 1

A sales forecast based on an estimate of total market potential for a specific market and projecting the market share a business can capture in any given area at any given time is using what approach?

A) build-up
B) guesstimate
C) break-down
D) pro forma

Answer 1

C

Question 2

Market segmentation is the process of dividing the total market for a product into ______.

A) general markets
B) novice markets
C) target markets
D) mass markets

Answer 2

C

Question 3

The most common marketing strategy of the 1960s was ______.

A) individualized marketing
B) niche marketing
C) services marketing
D) mass marketing

Answer 3

D

Question 4

Babies 'n Things is an independently owned retail store that aims to compete with the local supercenter by targeting exclusively to young mothers in the upper-middle class. Babies 'n Things is using which marketing strategy?

A) individualized marketing
B) niche marketing
C) services marketing
D) mass marketing

Question 5

A sales forecast based on estimation of daily sales that are then projected for weeks, months, and years with seasonal adjustments is using what approach?

A) build-up
B) guesstimate
C) break-down
D) pro forma

Question 6

Adjusting the marketing mix of a business to treat individual persons as separate target markets is known as ______.

A) mass marketing
B) niche marketing
C) individualized marketing
D) personalized marketing

Question 7

The number of products a business plans to sell during a future time period is known as the ______.

A) product projections
B) sales predictions
C) sales forecast
D) sales estimates

Question 8

The philosophy of a business in which the wants and needs of customers are determined before goods and services are produced is referred to as the ______.

A) marketing concept
B) production concept
C) relationship concept
D) demand concept

Question 9

The book by Seth Godin discussed at the beginning of the chapter describes a unique approach to visualizing competitive advantage. What is its title analogy?

A) Pink Hearts
B) Purple Cows
C) Yellow Dogs
D) Red Ryders

Question 10

A ______ can be defined as what the marketing efforts of a business intend to accomplish and how the business will achieve them.

A) management strategy
B) financing strategy
C) marketing strategy
D) company strategy

Question 11

Why might a marketing strategy be especially important to a small business in a service industry?

A) some services are ones the customer could perform for themselves such as lawn mowing
B) it is more difficult to establish a brand image with intangible services than tangible products
C) both A and B
D) none of these

Question 12

Samantha, an intern at an advertising agency, is asked to review how local markets compare based on geographic, demographic, and psychographic differences. Samantha learns that these are most commonly referred to as ______.

A) population segments
B) segmentation variables
C) diversity statistics
D) market segments

Question 13

Employees at People 1st Credit Union are encouraged by management to establish long-term buyer-seller relationships. They strive to learn each customer's name so that they can be greeted as they walk in the door. This is an example of which business concept?

A) marketing concept
B) production concept
C) relationship marketing
D) customer marketing

Question 14

When a business attempts to provide its customers with the product or service that the customer wants rather than simply trying to sell goods and services, the business is applying ______.

A) the production concept
B) the marketing concept
C) a focus on quality
D) a focus on innovation

Question 15

William, owner of a small hardware store, likes to forecast sales to better prepare for seasonal fluctuations. He identifies as many target markets as possible and predicts the sales for each based on one-day sales at different times of the year. He then combines the predictions for the various segments to create a total sales forecast. Which sales forecasting method is William using?

A) build-up method
B) break-down method
C) qualitative method
D) quantitative method

Question 16

Breaking down populations of people into groups or target markets is referred to as ______.

A) consumer recognition
B) market diversity
C) market segmentation
D) regression analysis

Question 17

A sales forecast that uses extensive historical sales data looking for a relationship between a dependent variable (past sales) and different independent variables is using what approach?

A) build-up
B) regression analysis
C) break-down
D) time series

Question 18

Peter Drucker stated that businesses have ______ basic functions.

A) two
B) three
C) four
D) five

Question 19

The philosophy where companies concentrate their efforts on the product being made is known as which of the following philosophies?

A) "If you make it, they will buy it" philosophy
B) "If they won't buy it, why make it" philosophy
C) production concept
D) marketing concept

Question 20

A forecasting method that uses historical sales data to identify patterns over a period of time is referred to as ______.

A) build-up method analysis
B) regression analysis
C) time series analysis
D) qualitative analysis

Question 21

One creative discount merchant conducted an in-store marketing research project using ______.

A) trash
B) finger paint
C) peanuts
D) marshmallows

Question 22

Closeness to customers is a/an ______ to small businesses in understanding the internal influences that are occurring in customers' minds.

A) disadvantage
B) advantage
C) method
D) competitive advantage

Question 23

The average American household spends approximately ______ hours per week watching television.

A) 20
B) 50
C) 65
D) 92

Question 24

A clearly stated, concisely worded problem must be created in order to generate ______.

A) a plan
B) a conclusion
C) usable information
D) data

Question 25

The first step in the decision-making process that leads to a purchase is ______.

A) problem recognition
B) information search
C) alternate evaluation
D) post-purchase evaluation

Question 26

The black box title is appropriate because it represents ______.

A) what goes into the customer's mind that remains hidden from the business
B) what customers do not want others to know
C) what businesses do not want others to know
D) what goes into the mind of the business that remains hidden from customers

Question 27

______ is the remorse that potential buyers feel after making a major purchase.

A) Purchase remorse
B) Cognitive dissonance
C) Post-purchase stress
D) Cognitive dispersion

Question 28

Most businesses spend between ______ and less than ______ conducting marketing research on their last product or service launched.

A) one to six months; $1,000
B) seven to eight months; $1,500
C) one to six months; $1,500
D) seven to eight months; $1,000

Question 29

Buyer's remorse is also known as ______.

A) evoked set
B) cognitive dissonance
C) black box consumer behavior
D) market segmentation

Question 30

______ is a way to answer questions about customers' changing wants and needs.

A) Market search
B) Market research
C) Market tests
D) Market analysis

Question 31

The five steps of the marketing research process, in order, are which of the following?

A) develop plan, identify problem, collect data, analyze data, and draw conclusions
B) identify problem, develop plan, collect data, analyze data, and draw conclusions
C) identify problem, collect data, develop plan, analyze data, and draw conclusions
D) draw conclusions, identify problem, develop plan, analyze data, and collect data

Question 32

Many people have a hard time with identifying the problem, the first step of the marketing research process, because they ______.

A) are novices
B) are too experienced to follow the correct procedures
C) confuse problems with symptoms
D) draw conclusions too quickly

Question 33

The black box stimulus-response model of consumer behavior is based upon the work of ______.

A) Henry Mintzberg
B) Frederic Herzberg
C) Henri Fayol
D) Kurt Lewin

Question 34

Segmenting populations of people into smaller target markets is known as ______.

A) individualized marketing
B) personalized marketing
C) sub-target marketing
D) niche marketing

Question 35

The steps of the decision-making process in order are ______.

A) purchase, post-purchase evaluation, problem recognition, information search, and alternative evaluation
B) information search, problem recognition, alternative evaluation, purchase, and post-purchase evaluation
C) problem recognition, information search, alternative evaluation, purchase, and post-purchase evaluation
D) problem recognition, alternative evaluation, information search, purchase, and post-purchase evaluation

Question 36

The primary factor that looms as a reason for an increase in the amount of time and money that small businesses should spend on marketing research is ______.

A) poor economy
B) lawsuits
C) competition
D) changing conditions

Question 37

Which of the following is a black box influence that is internal to the consumer's mind?

A) demographic factors
B) lifestyle
C) method of payment
D) motives and needs

Question 38

Sandra is excited about going shoe shopping with her friends later in the day. Before she goes, she thinks about the stores she wants to visit and the brands that she would like to try. These are all part of Sandra's ______.

A) evoked set
B) cognitive dissonance
C) black box
D) market segment

Question 39

Small businesses are interested primarily in which of the following?

A) why people desire products
B) why people want products
C) why people purchase products
D) why people comparison shop for products

Question 40

______ can be defined as the function which links consumers to marketers in order to improve marketing efforts.

A) Market research
B) Market tests
C) Market strategies
D) Market analysis

Question 41

Scenario 11-3. Mark is considering purchasing a new pickup truck. The model that he is looking at features an all new diesel engine, state of the art design, and beautiful upholstery. The electronics package and options have all been updated to the point where there are not many more items that Mark could have installed on his new truck. He likes everything about the truck except the price tag. The price could be lowered if Mark would remove some of the options, but he must have them all to maintain his image.

-In Scenario 11-3, what approach would you use to help Mark?

A) focus on all the positive features of the product and help him ignore any negatives
B) recognize that Mark cannot get everything he wants and forget trying to sell to him
C) try to redirect Mark into a different product
D) apply the marketing concept by helping Mark through his decision making process

Question 42

Primary data that cannot be analyzed statistically is called ______.

A) quantitative data
B) qualitative data
C) objective data
D) perfect data

Question 43

Scenario 11-1. Lori has just graduated from Willy Wonka Candy College. Lori owns her own candy store and has envisioned a new flavor of lollipop for her candy store. The new flavor will be a swirl of other flavors--a complete flavor thrill. However, she is not sure if her customers will purchase the new lollipop. Lori decides to consult some of her college marketing textbooks for information.

-In Scenario 11-1, Lori needs to conduct ______.

A) a financial statement analysis
B) marketing research
C) market tests
D) market analysis

Question 44

Qualitative data produces useful results if the researcher is looking for ______.

A) a yes or no answer
B) a numerical bottom line answer
C) open-minded responses to probing questions
D) a statistical analysis

Question 45

Secondary data can be defined as being ______.

A) data sources which are not as good as the initial data found
B) data sources which already exist
C) data sources which should be listed after primary data sources in the bibliography
D) data sources which must be collected by the researcher and analyzed

Question 46

Potential problems with ______ is that it may not be specific or detailed enough for the needed purpose.

A) preliminary information
B) primary information
C) secondary information
D) subsequent information

Question 47

Arthur, a grocery store manager, politely asks customers to fill out a three-question survey about their shopping experience as they are leaving the store. The data collected from these surveys would best be described as ______.

A) tertiary data
B) secondary data
C) primary data
D) relative data

Question 48

Alex is creating a marketing plan for his best friend's restaurant. He visits the local library to gather data on the restaurant industry. Alex is collecting what kind of data?

A) primary data
B) secondary data
C) tertiary data
D) qualitative data

Question 49

Marketing data that a business collects for its own specific purposes is referred to as ______.

A) primary data
B) secondary data
C) tertiary data
D) quantitative data

Question 50

Marketing research that enables you to be proactive is important because ______.

A) you need to know what has happened in the past
B) you need to identify who is to blame for anything that has gone wrong
C) both A and B
D) you need to know what to do in the future

Question 51

Scenario 11-1. Lori has just graduated from Willy Wonka Candy College. Lori owns her own candy store and has envisioned a new flavor of lollipop for her candy store. The new flavor will be a swirl of other flavors--a complete flavor thrill. However, she is not sure if her customers will purchase the new lollipop. Lori decides to consult some of her college marketing textbooks for information.

-In Scenario 11-1, Lori can expect to spend approximately ______ and ______ conducting her research project.

A) one to six months; $1,000
B) seven to eight months; $1,500
C) one to six months; $1,500
D) seven to eight months; $1,000

Question 52

The process of determining what the responses to research mean is referred to as ______.

A) problem identification
B) information overload
C) information inquiry
D) data analysis

Question 53

Scenario 11-3. Mark is considering purchasing a new pickup truck. The model that he is looking at features an all new diesel engine, state of the art design, and beautiful upholstery. The electronics package and options have all been updated to the point where there are not many more items that Mark could have installed on his new truck. He likes everything about the truck except the price tag. The price could be lowered if Mark would remove some of the options, but he must have them all to maintain his image.

-In Scenario 11-2, if George were to adjust his marketing mix to treat individual clients as separate target markets, he would be using ______.

A) mass marketing
B) niche marketing
C) individualized marketing
D) standardized marketing

Question 54

______ sources of information should be checked first since they are less expensive.

A) Primary
B) Preliminary
C) Secondary
D) Subsequent

Question 55

Scenario 11-3. Mark is considering purchasing a new pickup truck. The model that he is looking at features an all new diesel engine, state of the art design, and beautiful upholstery. The electronics package and options have all been updated to the point where there are not many more items that Mark could have installed on his new truck. He likes everything about the truck except the price tag. The price could be lowered if Mark would remove some of the options, but he must have them all to maintain his image.

-In Scenario 11-2, George should have an estimate of how many customers his business will service in the coming year. This would be known as a ______.

A) sales analysis
B) service analysis
C) sales forecast
D) service estimate

Question 56

Scenario 11-1. Lori has just graduated from Willy Wonka Candy College. Lori owns her own candy store and has envisioned a new flavor of lollipop for her candy store. The new flavor will be a swirl of other flavors--a complete flavor thrill. However, she is not sure if her customers will purchase the new lollipop. Lori decides to consult some of her college marketing textbooks for information.

-In Scenario 11-1, Lori may face a problem if she chooses ______ data since it may not be specific or detailed enough to suit her needs.

A) primary
B) preliminary
C) secondary
D) subsequent

Question 57

Marketing research can provide a business with a picture of ______.

A) what people have wanted in the past from products
B) what people want in the future from products
C) what people currently want from products
D) what people ultimately will always want from products

Question 58

Scenario 11-1. Lori has just graduated from Willy Wonka Candy College. Lori owns her own candy store and has envisioned a new flavor of lollipop for her candy store. The new flavor will be a swirl of other flavors--a complete flavor thrill. However, she is not sure if her customers will purchase the new lollipop. Lori decides to consult some of her college marketing textbooks for information.

-In Scenario 11-1, Lori should search for which of the following types of data first, since it is less expensive?

A) primary
B) preliminary
C) secondary
D) subsequent

Question 59

Marketing research is good for which of the following?

A) fine tuning concepts for known products
B) fine tuning concepts for products to be invented
C) fine tuning new concepts for old products
D) gathering data about what consumers will want in the future

Question 60

Scenario 11-3. Mark is considering purchasing a new pickup truck. The model that he is looking at features an all new diesel engine, state of the art design, and beautiful upholstery. The electronics package and options have all been updated to the point where there are not many more items that Mark could have installed on his new truck. He likes everything about the truck except the price tag. The price could be lowered if Mark would remove some of the options, but he must have them all to maintain his image.

-In Scenario 11-3, the dealership that carries Mark's new truck will not know everything that goes through Mark's mind as he makes his purchasing decision. This is known as ______.

A) the internal consumer
B) the black box
C) customer deception
D) hidden consumer behavior

Question 61

Market segmentation is the process of dividing the total market for a product into identifiable groups or target markets.

Question 62

The product alternatives that come into a consumer's mind when considering a purchase are called the elicited set.

Question 63

Characteristics or ways to group people which make them more likely to purchase a product are known as segmentation variables.

Question 64

Purple cows represent the creation of a competitive advantage.

Question 65

In order to identify the most attractive target markets for a business, characteristics that affect the buying behavior of people should be analyzed.

Question 66

Your sales forecast will affect all sections of your marketing plan.

Question 67

Two factors leading to more individualized marketing are clutter and technology.

Question 68

Scenario 11-3. Mark is considering purchasing a new pickup truck. The model that he is looking at features an all new diesel engine, state of the art design, and beautiful upholstery. The electronics package and options have all been updated to the point where there are not many more items that Mark could have installed on his new truck. He likes everything about the truck except the price tag. The price could be lowered if Mark would remove some of the options, but he must have them all to maintain his image.

-In Scenario 11-3, the product alternatives that enter Mark's mind when he considers purchasing a new truck are called the ______.

A) elicited set
B) evoked set
C) analyzed set
D) proper set

Question 69

Business began adopting the marketing concept in the 1970s.

Question 70

Niche marketing occurs when the marketing mix is adjusted to treat individual persons as separate target markets.

Question 71

Scenario 11-3. Mark is considering purchasing a new pickup truck. The model that he is looking at features an all new diesel engine, state of the art design, and beautiful upholstery. The electronics package and options have all been updated to the point where there are not many more items that Mark could have installed on his new truck. He likes everything about the truck except the price tag. The price could be lowered if Mark would remove some of the options, but he must have them all to maintain his image.

-In Scenario 11-3, the remorse that Mark is likely to feel after purchasing his new truck is known as ______.

A) cognitive Dissonance
B) post-purchase stress
C) purchase remorse
D) cognitive dispersion

Question 72

The build-up method of forecasting sales begins with an estimate of the total market potential for a specific product or an entire industry.

Question 73

According to Peter Drucker, the two basic functions of business are marketing and innovation.

Question 74

Cognitive dissonance is the feeling of internal satisfaction that follows a major purchase.

Question 75

Scenario 11-3. Mark is considering purchasing a new pickup truck. The model that he is looking at features an all new diesel engine, state of the art design, and beautiful upholstery. The electronics package and options have all been updated to the point where there are not many more items that Mark could have installed on his new truck. He likes everything about the truck except the price tag. The price could be lowered if Mark would remove some of the options, but he must have them all to maintain his image.

-In Scenario 11-3, the dealership could find information on Mark's behavior from all but which of the following fields of education?

A) psychology
B) sociology
C) theology
D) biology

Question 76

Treating entire populations of people as potential customers for specific products is known as niche marketing.

Question 77

Marketing objectives can be broken into two groups: marketing performance objectives and marketing support objectives.

Question 78

Whereas market segmentation tells a business owner who might buy the product, developing an understanding of consumer behavior is helpful to learn why people buy the product.

Question 79

Marketing strategies should state what should be accomplished and the process to be used to achieve that goal.

Question 80

Marketing is more than selling or advertising.