Deck 12: Marketing Plans: Saying How Youll Get Salespart Four: Cash, Accounting, and Finance in the Small Business

Question 1

The process of dividing the market into groups that have heterogeneous needs for a product or service is referred to as market segmentation.

Answer 1

False

Question 2

An entrepreneur should take the time to decide what he or she wants to accomplish next-increase sales,introduce a new product,move into a new market,and the like-and regularly revise the marketing plan to reflect this next step.

Answer 2

True

Question 3

Unlike other firms,prestige firms lose customers by lowering prices because the product is perceived to be not quite so good.

Answer 3

True

Question 4

By asking the same survey questions to each respondent,a researcher can accurately compare answers and even statistically analyze these answers.

Question 5

The easiest way to find selling prices for products these days is on the Internet.

Question 6

A marketing plan is not required if a person plans to use his or her own personal savings and direct marketing.

Question 7

An undifferentiated marketing strategy is used when a firm targets one particular segment on which to focus all its efforts.

Question 8

Direct competition refers to a strategy where companies provide alternatives that are dissimilar to a firm's product/service that consumers might choose to meet a similar need.

Question 9

It is much easier to compare groups and to statistically analyze data with close-ended questions than it is with open-ended questions.

Question 10

It is a good idea for a start-up company to charge the lowest price in the market for its products or services.

Question 11

One frequent type of open-ended question used by researchers is the scalar question.

Question 12

A stand-alone marketing plan will include financial data and projections in the form of balance sheets and income statements.

Question 13

If a product or service is a component of another product or tied directly to another product or service,its estimated sales can be calculated as a portion of this known number.

Question 14

Ethnographic research primarily consists of asking potential customers to fill out questionnaires.

Question 15

Hiring marketing research firms is a much more inexpensive option than online surveys for small businesses.

Question 16

The marketing plan is a one-time process that should not be revised once formulated.

Question 17

Identifying competition helps a business get an idea of how crowded a market is.

Question 18

If a business is able to create a prestige image in its customer's mind,it can charge much higher prices than the going rate.

Question 19

In person survey has the lowest return rate and does not allow for much flexibility when compared to mail or telephone surveys.

Question 20

Among surveys,in-person survey tends to be the least expensive method,with telephone coming in second,and mail the most expensive.

Question 21

Naomi had always been complimented for her excellent cooking skills.Hence,she decided to commercialize this ability by starting a restaurant.Before starting the restaurant,she invited a few friends and neighbors over for dinner to taste her dishes and provide feedback that she could incorporate in her business venture.This is a typical example of conducting an informal _____.

A) secondary research
B) focus group research
C) ethnographic study
D) branching survey

Question 22

A manufacturing company is planning to test market its new product,a shampoo.It has tied up with a retailer to research on the product's packaging.The retailer has hired students as interns to observe customers' reactions toward the new shampoo in its stores.All of the research is conducted without directly interacting with the customers.This is a typical example of _____.

A) focus group research
B) survey research
C) ethnographic research
D) secondary research

Question 23

A(n)_____ is a data-collection method using a questionnaire-in person,on phone,on paper,or on the Internet.

A) desk research
B) survey
C) focus group research
D) ethnographic research

Question 24

Creating a _____ is the first step in putting together a business plan.

A) codicil
B) marketing plan
C) technical plan
D) capital plan

Question 25

Which of the following is a problem associated with secondary research?

A) It is expensive.
B) It is time-consuming.
C) It includes data that may not be timely.
D) It requires multiple researchers to design questions.

Question 26

Mark has a brilliant business idea that he intends to explain to a venture capitalist.However,the venture capitalist agrees to invest in Mark's idea provided he prepares a report that explains the product,price,distribution,and promotion strategy.The venture capitalist also wants Mark to include an analysis of the existing competition and to clearly indicate his target customers in the report.Mark has been typically asked to prepare a _____ by the venture capitalist.

A) letter of credit
B) balance sheet
C) documentary draft
D) marketing plan

Question 27

A _____ systematically articulates a business's product,price,distribution,and promotion strategy,and it also clearly identifies the business's target market and competition.

A) marketing plan
B) balance sheet
C) documentary draft
D) mission statement

Question 28

Skygull,Inc.is planning to launch a new generation of cell phones.Being the first entrant in this market makes it difficult for the company to decide the means to reach its potential customers,the advertising medium to use,and the optimum price for each cell phone.Skygull,Inc.can best tackle this problem by conducting a(n)_____.

A) social audit
B) variance analysis
C) operational benchmarking
D) marketing research

Question 29

_____ is best defined as the systematic collection and interpretation of data to support future marketing decisions.

A) Marketing quotation
B) Marketing research
C) Marketable security
D) Market capitalization

Question 30

A _____ is best described as a small group (8 to 20 people)that is asked to meet to discuss a series of questions about a particular product or service.

A) focus group
B) strategic group
C) reference group
D) command group

Question 31

Danielle,a graduate in fashion technology,always found it tough to find clothes for her as she belonged to the category of plus-size.Hence,she launched her clothing brand "Taurus Trends" that catered to the needs of plus-size and extremely tall women.Before the launch of her store,Danielle decided to observe the shopping habits of plus-size women and record how many left the stores without making a purchase because they could not find the right fit.This would typically be a(n)_____ research.

A) secondary
B) ethnographic
C) focus group
D) survey

Question 32

Danielle,a graduate in fashion technology,always found it tough to find clothes for her as she belonged to the category of plus-size.Hence,she launched her clothing brand "Taurus Trends" that catered to the needs of plus-size and extremely tall women.If Danielle had to collect data already existing on the Internet,such as the number of stores catering to the clothing needs of plus-size women and their pricing,it would typically be a(n)_____ research.

A) focus group
B) survey
C) ethnographic
D) secondary

Question 33

_____ is a category of marketing research that is best defined as the new information collected to solve a problem at hand or answer current questions.

A) Primary research
B) Secondary research
C) Data binding
D) Data testing

Question 34

Data gathered by simple observation that involves seeing what customers do rather than asking them refers to _____ research.

A) focus group
B) survey
C) ethnographic
D) secondary

Question 35

Which of the following primary research methods is the least expensive for small businesses?

A) Conducting in-person surveys
B) Conducting formal focus group interviews
C) Using online survey services
D) Hiring marketing research firms

Question 36

With regard to marketing research,_____ refers to information already collected for some other purpose than the current problem.

A) primary research
B) field research
C) first-hand research
D) secondary research

Question 37

Which of the following is a way to collect secondary data?

A) Researching on the Internet
B) Conducting a survey with the help of questionnaires
C) Observing the target consumers
D) Interviewing a focus group

Question 38

Danielle,a graduate in fashion technology,always found it tough to find clothes for her as she belonged to the category of plus-size.Hence,she launched her clothing brand Taurus Trends that catered to the needs of plus-size and extremely tall women.Danielle invited 8-10 plus-size women for coffee so that she could ask them a series of questions and encouraged them to discuss their shopping experiences among each other as well as their likes and dislikes about the available apparel choices.Danielle's research method is an example of a(n)_____ research.

A) survey
B) ethnographic
C) focus group
D) secondary

Question 39

Which of the following statements is true about the focus group method of market research?

A) It is a form of secondary research.
B) It involves observing the participants without interacting with them.
C) It is a large group of more than 50 participants.
D) It is led by a moderator who is skilled to ask questions the right way.

Question 40

Myro Labs,Inc.has organized for a formal discussion between 12 potential customers to test a new drug product's packaging and pricing.The company's marketing head has been carefully questioning the participants in order to effectively bring out their reactions toward the new product.This is a typical example of a(n)_____.

A) ethnographic research
B) secondary research
C) focus group research
D) survey research

Question 41

Gold Pelican,Inc.is a small e-commerce company that sells custom made briefcases to customers spread across the globe.The company is now planning to expand its operations by opening stores in many countries.Hence,the company decides to conduct a survey to understand what its existing customers think about it as a brand,its product quality,pricing,and their future expectations.Keeping in mind the budget constraints of a small business and the need to cover customers all over the world,which of the following is the most appropriate way to conduct a survey?

A) Internet
B) In person
C) Telephone
D) Focus group

Question 42

Which of the following survey methods has the lowest return rate and does not allow for much flexibility?

A) Mail
B) Face To Face
C) Telephone
D) Internet

Question 43

A _____ is defined as a Web-based program that uses artificial intelligence techniques to automate tasks such as searches.

A) blog
B) bot
C) cache
D) lock-box

Question 44

The characteristic that separates one company from another in product,price,promotion and/or distribution,is referred to as _____.

A) differential advantage
B) volatility
C) liquidity
D) external legitimacy

Question 45

Love Polka Inc. ,a clothing brand,realized after a market research that the clothing needs of pregnant women and new mothers were not met adequately.Hence,it launched the first ever maternity-based store in the market under the brand name Maternity and More.Thus,the company,by tapping a marginally served market,has typically gained _____.

A) volatility
B) differential advantage
C) replacement value
D) liquidity

Question 46

The question "On a range of 1 to 10,how would you rate the service in this restaurant?" is an example of a(n)_____.

A) categorical question
B) scalar question
C) dichotomous question
D) open-ended question

Question 47

When compared to open-ended questions,close-ended questions:

A) can be answered in many ways.
B) provide data that are more difficult to tabulate.
C) limit the information a researcher gets.
D) take considerably more time to ask and evaluate.

Question 48

Which of following survey methods is the most expensive?

A) Mail
B) Telephone
C) In person
D) Online

Question 49

Differential advantage is typically the result of a business:

A) adopting a code of conduct that is different from other businesses.
B) exhibiting heterogeneity each time it provides its services.
C) being distinct from other businesses in terms of product,price,place,and promotion.
D) going through different stages of new product development and product life cycle.

Question 50

If a researcher wants to be able to ask for clarification from participants of a survey,have participants expand on their answer,or even change the next question based on their responses,he or she should conduct _____ survey.

A) mail
B) in-person
C) online
D) telephone

Question 51

Which of the following statements about open-ended questions is true?

A) They can only be answered in a "yes" or "no" fashion.
B) They make tabulation and comparison of data easy.
C) They are best used for gathering preliminary information.
D) They are best applied when samples are large.

Question 52

By using multiple screens of questions in online surveys,respondents can select the screen they will see based on their responses to an earlier question.In Internet survey terms,this is known as _____.

A) factoring
B) bootstrapping
C) benchmarking
D) branching

Question 53

Which of the following is an advantage of using open-ended questions?

A) They make it easy for researchers to compare respondent groups.
B) Relative to close-ended questions,it takes lesser time to ask and evaluate them.
C) They help find new niches and perfect a product before it is introduced.
D) They are the most convenient method when the sample size is large.

Question 54

Gerald,a student at a local university,has prepared a questionnaire for his research on consumer behavior.The questions in his survey allow respondents to answer in either a "Yes" or a "No." Which of the following question types is the questionnaire typically using?

A) Open-ended
B) Categorical
C) Scalar
D) Dichotomous

Question 55

The question "What is your ethnicity?" with answer options such as White,African American,Hispanic,Asian,and other,is an example of a(n)_____ question.

A) open-ended
B) categorical
C) dichotomous
D) scalar

Question 56

Which of the following best exemplifies dichotomous questions?

A) "On a scale of 1 to 5,how would you rate this dining experience?"
B) "What did you dislike about your today's dining experience?"
C) "Have you ever purchased a product online?"
D) "Which are your favorite restaurants in this city?"

Question 57

Questions that allow respondents to express themselves as they choose are called _____ questions.

A) open-ended
B) categorical
C) dichotomous
D) scalar

Question 58

Which of the following best exemplifies close-ended questions?

A) What aspects about a spa appeal the most to you?
B) How can we improve this spa?
C) Is this your first visit to the spa?
D) How has the spa helped improve your life?

Question 59

_____ questions provide data that are difficult to tabulate and compare.

A) Categorical
B) Open-ended
C) Scalar
D) Dichotomous

Question 60

A disadvantage of open-ended questions when compared to close-ended questions is that they:

A) limit the information one can get.
B) can be answered only in very limited ways.
C) are more difficult to interpret when the sample size is large.
D) are not useful for gathering preliminary information.

Question 61

Peace Cut,Inc.manufactures "one size fits all" unisex pajamas.This is a typically an example of _____ marketing strategy.

A) customization
B) concentrated
C) niche
D) undifferentiated

Question 62

Which of the following best exemplifies personality segmentation?

A) Shoe Soul,Inc.produces three lines of sport shoes that cater to the high-end,mid-end,and low-end customers.
B) Shoe Soul,Inc.makes different shoes for customers from the hilly areas and for those from the plains.
C) Shoe Soul,Inc.segments its shoes as adventure shoes,limited edition shoes,and couture shoes.
D) Shoe Soul,Inc.has shoes it brands as toddler series,teenage series,young adult series,and family series.

Question 63

Danielle,a graduate in fashion technology,always found it tough to find clothes for her as she belonged to the category of plus-size.Hence,she launched her clothing brand Taurus Trends that catered to the needs of plus-size and extremely tall women.In catering to the clothing needs of plus-size women,Danielle has typically adopted a(n)_____ marketing strategy.

A) differentiated
B) undifferentiated
C) mass
D) concentrated

Question 64

Danielle,a graduate in fashion technology,always found it tough to find clothes for her as she belonged to the category of plus-size.Hence,she launched her clothing brand Taurus Trends that catered to the needs of plus-size and extremely tall women.In developing a marketing plan,Danielle should typically begin by defining the _____.

A) target market
B) current situation
C) 4 Ps
D) marketing strategy

Question 65

Munch More's potato wafers are available in two different variants-the fried variant and the baked variant.With the deep-fried wafers the firm aims to target customers for whom taste matters the most,and with the baked version it caters to the needs of those customers who are health-conscious.Munch More is typically following a(n)_____ marketing strategy.

A) differentiated
B) concentrated
C) mass
D) analogous

Question 66

E and C Inc.produces two categories of woolen clothes under the brand names "extreme" and "cool." The brand "extreme" is sold in areas that have harsh winters,and the brand "cool" is sold in areas that have warm summers.This is a typical example of _____ segmentation.

A) psychographic
B) behavioral
C) demographic
D) geographic

Question 67

Which of the following is the first step of a business's marketing plan?

A) Examining the current situation of the business
B) Discussing the target market of the business
C) Creating a detailed marketing strategy and objectives
D) Addressing the 4 P's of the business

Question 68

In a(n)_____ marketing strategy,a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet their needs.

A) mass
B) concentrated
C) differentiated
D) undifferentiated

Question 69

_____ segmentation typically divides customers into groups based on what advantages they seek when making product or service decisions.

A) Geographic
B) Demographic
C) Benefit
D) Ethnographic

Question 70

United One Bank has designed various loan schemes tailored according to the needs of students,differently abled,single parent,and retirees.The bank has typically adopted a(n)_____ marketing strategy.

A) mass
B) concentrated
C) differentiated
D) analogous

Question 71

While most cosmetic brands sell their products in specialty stores or departmental stores,Snowbird Inc.is the only cosmetic brand that uses direct marketing as a means to reach its customers.However,it prices its products close to that of its competitors.Hence,the company has carved a differential advantage typically in terms of its _____ strategy.

A) people
B) place
C) product
D) pricing

Question 72

In a(n)_____ marketing strategy,a marketer selects one specific group of consumers and designs a marketing mix specifically for that group.

A) undifferentiated
B) concentrated
C) differentiated
D) mass

Question 73

The process of dividing the market into groups that have somewhat homogeneous needs for a product or service is called _____.

A) product differentiation
B) market degradation
C) market segmentation
D) benchmarking

Question 74

The Kent Automobile Company segments its cars as sports cars,safety cars,capacity cars,and premium cars based on the gains or the utility consumers seek.Which of the following segmentation types has the Kent Automobile Company adopted?

A) Psychographic
B) Geographic
C) Ethnographic
D) Benefit

Question 75

Drugs sold under the Myko Pharmaceuticals brand comes in two different quality standards.The high quality and high-priced drugs are exported to countries that have high per capita income,whereas the low-priced drugs are sold in countries that have low per capita income.This is an example of _____ segmentation.

A) demographic
B) benefit
C) behavioral
D) psychographic

Question 76

Dividing the market by categories such as age,income,education level,ethnicity,or sex is termed as _____ segmentation.

A) geographic
B) demographic
C) trench
D) psychographic

Question 77

If a firm is able to create a premium image in its customer's mind by offering a custom product or extra service,it should typically claim _____ as its pricing strategy and use it as a differential advantage.

A) loss leader
B) penetration pricing
C) going rate
D) prestige pricing

Question 78

While the competitors of Premium Airlines cater to both the business and economy class customers along with the executive class customers,the company aims at focusing all its service efforts on customers who prefer to travel in style and comfort.Hence,the firm's airplanes only have executive seats.This is an example of a(n)_____ marketing strategy.

A) differentiated
B) concentrated
C) undifferentiated
D) mass

Question 79

Maya runs a home-based apparel business called Round Polka catering only to the needs of pregnant women.Identify the type of marketing strategy involved.

A) Differentiated strategy
B) Concentrated strategy
C) Undifferentiated strategy
D) Mass strategy

Question 80

A(n)_____ marketing strategy assumes that all consumers have virtually identical needs and can be reached by the same marketing mix.

A) undifferentiated
B) concentrated
C) differentiated
D) customization