Deck 7: The Marketing Plan

Question 1

Because of the costs involved, it is typical for a business to formulate only a single sales forecast.

Answer 1

False

Question 2

Determining market potential is the process of locating and investigating buying units that have purchasing power and needs that can be satisfied with the product or service being offered.

Answer 2

True

Question 3

Small business marketing is best defined as the performance of distribution activities that affect the flow of goods and services from producer to consumer or user.

Answer 3

False

Question 4

Researchers typically achieve higher response rates from mail and telephone surveys than from personal interviews.

Question 5

Regardless of the type of business, the consumer-oriented marketing philosophy is the best choice among the competing alternatives.

Question 6

Because many small business owners have strong production skills, they often attend mostly to the marketing side of the business to compensate.

Question 7

Marketing research is an effective supplement, but not a replacement, for the intuitive judgment of entrepreneurs.

Question 8

Customer satisfaction is not the means to achieving a certain goal-it is the goal.

Question 9

Small business owners can now buy inexpensive personal computer software that can perform statistical calculations and generate report-quality graphics.

Question 10

In a small business, the entrepreneur's marketing philosophy typically shapes the firm's marketing activities.

Question 11

A market is best defined as a geographical area that is of commercial interest to the entrepreneur.

Question 12

In order to achieve market success, a firm merely needs to concentrate on either providing an excellent product/service or devising an insightful marketing strategy.

Question 13

A detailed analysis of competitors is an important part of a firm's formal marketing plan.

Question 14

Marketing research is defined as the gathering, processing, reporting, and interpreting of marketing information.

Question 15

Personal interview surveys are attractive as a marketing research method because these are inexpensive to conduct.

Question 16

Because of the considerable cost, time, and effort associated with pre-testing, it is generally considered necessary only in the case of extensive, complex questionnaires.

Question 17

Small businesses typically conduct less marketing research than big businesses, partly because they lack an understanding of the basic marketing research process.

Question 18

A marketing philosophy that says everything originating with consumer needs is market-oriented.

Question 19

The marketing strategy section provides the most detailed information in a formal marketing plan.

Question 20

If an entrepreneur anticipates several target markets, each individual segment must have its own corresponding customer profile.

Question 21

U.S. businesses have recently shifted their focus toward a ____ orientation.

A) market
B) consumer
C) production
D) sales

Question 22

In recent years, the emphasis in U.S. businesses has been on

A) consumers.
B) production.
C) sales.
D) time-honored values.

Question 23

The distribution strategy is a section of the marketing strategy.

Question 24

Creators Plus, a modest-size manufacturer of quality crafts, expends considerable resources to ensure that its products are created in the most efficient manner. According to the owner, distribution and promotion are secondary considerations to managing an expedient production process. Creators Plus subscribes to the ____ marketing philosophy.

A) process-oriented
B) market-oriented
C) sales-oriented
D) production-oriented

Question 25

A firm's marketing mix consists of ____ activities.

A) pricing, promotion, and distribution
B) product, pricing, and promotion
C) product, promotion, and distribution
D) product, pricing, promotion, and distribution

Question 26

Small business marketing involves a number of activities, including

A) creating, developing, preparing, communicating, and delivering a bundle of satisfaction to a target market.
B) planning for optimal production efficiency.
C) identifying alternative technologies.
D) establishing a sales-oriented marketing philosophy.

Question 27

A firm's marketing philosophy determines how strategic marketing activities are used to achieve

A) efficiency.
B) customer response.
C) desirable thought patterns.
D) business goals.

Question 28

Sales forecasts are typically expressed in dollars or units.

Question 29

Because sales forecasts revolve around specific target markets, the market should be defined as precisely as possible.

Question 30

Because of the relatively inconsequential amount of sales conducted by a typical small business, the majority of entrepreneurs need not be concerned with formulating accurate sales forecasts.

Question 31

The forecasting process can be characterized by the point at which the process is started and the nature of the predicting variable.

Question 32

It is best to write a marketing plan before collecting marketing research data.

Question 33

The ____ marketing philosophy is the preferred approach for all businesses.

A) product-oriented
B) market-oriented
C) sales-oriented
D) consumer-oriented

Question 34

A chain-ratio method of sales forecasting, or a buildup process, is frequently used for consumer products forecasting.

Question 35

The name of the product and/or service and the name of the business are not important, so they don't need to be defended by registering them with the proper agencies.

Question 36

Traditionally, marketing philosophies have been categorized as

A) consumer-oriented and market-oriented.
B) consumer-oriented, product-oriented, market-oriented, and volume-oriented.
C) consumer-oriented, market-oriented, sales-oriented, and process-oriented.
D) consumer-oriented, production-oriented, and sales-oriented.

Question 37

A buildup process requires a small business to identify all potential buyers in a target market's submarkets and then combine these estimates to determine the calculated demand.

Question 38

When a strategist divides the total market for a product or service into groups with similar needs, so that each group is likely to respond to the same marketing strategy, he or she is engaging in a practice called market segmentation.

Question 39

A small business can determine whether a market is adequate for its plans by checking the sales forecast.

Question 40

Every day, associates of Sewell Motors, a Dallas-based auto retailer, strive to exceed the company's expectations of treating the customer as its number one priority. Every action, policy, and ultimate sale is conducted professionally, with consumers' needs in mind. Sewell Motors subscribes to the ____ marketing philosophy.

A) consumer-oriented
B) market-oriented
C) sales-oriented
D) product-oriented

Question 41

The description of potential customers in a target market is commonly called a

A) customer profile.
B) demographic detailing.
C) Simpkins matrix.
D) target picture.

Question 42

John Smith, a car repair shop owner, is developing the warranty and repair policies for his business. What area of the marketing strategy is he addressing?

A) Promotional plan
B) Total product or service
C) Distribution plan
D) Pricing plan

Question 43

The market analysis section of the marketing plan should include

A) sales options.
B) a customer profile.
C) a statement of marketing tendencies.
D) a summary of market philosophies.

Question 44

The types of sales forecasts that should ideally be prepared include the ____ scenario.

A) rapidly shifting
B) pessimistic
C) predominant
D) contingency

Question 45

The initial step in the marketing research process is to

A) select a data collection method.
B) identify consumer/business segments of interest.
C) identify informational needs.
D) conduct a preliminary information search.

Question 46

The marketing plan should include

A) a competitor analysis.
B) a summary of market assumptions.
C) an analysis of alternative markets.
D) a sales forecast broken down by government industrial classifications.

Question 47

At minimum, the price of a product or service

A) must cover the cost of bringing it to market
B) must demonstrate a substantial profit
C) must be at or below the competition
D) must be based exclusively on a break-even analysis

Question 48

In considering its marketing strategy a new venture will typically concentrate on

A) mass marketing
B) a multi-segmented market
C) a select few target markets or just one
D) the internet

Question 49

Adopting a consumer-oriented marketing philosophy is most consistent with

A) quickly gaining highly profitable market returns.
B) eventually achieving long-term market success.
C) the revenue stabilizing effect of large market shares.
D) focusing on the single most profitable consumer segment.

Question 50

In an effort to ascertain the average dollar amount of credit card purchases at their store, managers of Component City, a stereo and appliance dealer, reviewed in-store copies of credit card sales receipts from the previous three months to evaluate the store's credit card acceptance policies. Component City's managers are conducting marketing research by collecting and analyzing

A) primary data.
B) observational data.
C) questioning data.
D) secondary data.

Question 51

Primary data collection methods are often classified as

A) expensive or inexpensive.
B) observational or questioning.
C) broad or comprehensive.
D) issue-related or concept-related.

Question 52

One section of the competitor analysis of a formal marketing plan should include all of the following, except

A) competitor's strengths and weaknesses.
B) a list of related products currently being marketed or tested by competitors.
C) the likelihood that competitors will enter the firm's target market.
D) the competitiveness of plans such as warranty and repair policies.

Question 53

Holly Fields, when developing a marketing plan for Spira, focused on

A) mass media
B) direct mail advertising
C) word-of-mouth
D) its website

Question 54

Koldpak has focused principally on the development of revolutionary new ways of containerizing fresh produce for grocery stores. The firm's marketing philosophy is

A) consumer-oriented.
B) market-oriented.
C) production-oriented.
D) sales-oriented.

Question 55

The most detailed and scrutinized section of a formal marketing plan is the

A) competitor analysis.
B) marketing strategy.
C) market analysis.
D) consumer analysis.

Question 56

The areas of marketing strategy that should be addressed within the marketing plan are

A) promotional, pricing, distribution, and product/service plans.
B) promotional and pricing plans.
C) promotional and distribution plans.
D) promotional, pricing, and distribution plans.

Question 57

The consumer-oriented approach to marketing

A) is just one more business philosophy.
B) focuses on "pushing the product".
C) recognizes first and foremost the need for attaining production efficiency goals.
D) is the recommended philosophy for all types of businesses.

Question 58

Its decision to produce flavored spring water ice cubes in response to requests from its customers reflects Norway Ice Company's ____ marketing philosophy.

A) production-oriented
B) sales-oriented
C) consumer-oriented
D) response-oriented

Question 59

Irene Anderson, an experienced entrepreneur, is evaluating her customer profile. She should check

A) her financial ratios to make sure they were calculated correctly.
B) the stability of her funding.
C) her customer benefits to make sure they are consistent with the "Products and Services" section of her business plan.
D) her customer benefits to make sure her competitors offer the same benefits.

Question 60

In the analysis of a market, the customer profile should include a

A) description of consumer weaknesses.
B) summary of production plans.
C) a detailed discussion of major customer benefits provided by the product and/or service.
D) a profile of major markets not targeted.

Question 61

Mary Delany, owner of Delany Salsas, is curious to know whether the new packaging for her line of salsas is being noticed by supermarket consumers. Accordingly, she ventures out to the local supermarket and passively watches the reactions of shoppers as they pass by one of the many Delany Salsas displays. Mary Delany is collecting ____ data through ____ methods.

A) secondary/observational
B) primary/questioning
C) primary/observational
D) secondary/questioning

Question 62

Techniques used to collect primary data are often classified as ____ and ____ methods.

A) internal/external
B) observational/questioning
C) exploratory/descriptive
D) focus/comprehensive

Question 63

A ____ estimates how much of a product or service will be purchased within a market over a defined period of time.

A) market forecast
B) market analysis
C) sales forecast
D) sales analysis

Question 64

The section of the marketing plan which describes the entrepreneur's approach to creating customer awareness of the product or service is the

A) product or service section
B) promotion section
C) distribution section
D) pricing section

Question 65

Problems typically associated with the use of secondary data include all of the following except

A) outdated material.
B) inconsistent units of measure.
C) lack of credibility.
D) limited number of data sources.

Question 66

Which of the following statements about observational methods is not true?

A) They can be very economical.
B) They avoid potential biases.
C) They can be conducted by a human or by mechanical devices.
D) They are a form of secondary data collection.

Question 67

The sales forecasting procedure in which the forecaster begins with a variable that has a very large scope and then systematically works down to the sales forecast is known as the

A) breakdown process.
B) buildup process.
C) chain-linkage method.
D) bottom-up method.

Question 68

A ____ is defined as a group of customers or potential customers who have purchasing power and unsatisfied needs.

A) consumer segment
B) target market
C) market
D) consumer market

Question 69

Which of the following is not one of the limitations encountered by small businesses when they forecast sales?

A) Entrepreneurial inexperience
B) Limited familiarity with the forecasting process
C) Deficient quantitative analysis skills
D) Lack of sources of current information about business trends

Question 70

In order to be appropriately considered a market, a group of customers or potential customers must have

A) purchasing power.
B) market power.
C) satisfied needs.
D) correlated needs.

Question 71

The basic instrument used to guide the researcher and the respondent when surveys are taken is known as a

A) questionnaire.
B) questioning form.
C) interview outline.
D) guide form.

Question 72

Which of the following is not a good source of secondary data for small businesses?

A) libraries of higher education
B) the Small Business Administration
C) personal interviews
D) the internet

Question 73

Using the number of births in a historical record to predict the number of driver licenses issued in subsequent years is an example of the use of a(n) ____ variable in forecasting.

A) approximating
B) indirect
C) surrogate
D) terminating

Question 74

With regard to market demand estimation, ____ determines whether the sales forecasting process is direct or indirect.

A) the industry orientation of the firm
B) the nature of the predicting variable
C) the ultimate goal of the entrepreneur
D) the marketing philosophy of the startup

Question 75

Forecasting sales for a new venture

A) is simplified because the firm's product or service offerings are focused on one or a few areas.
B) should always be done with the assistance of outside consultants.
C) is extremely difficult.
D) is not all that important to the future operation of the firm.

Question 76

Entrepreneurs should base their market assessments, production schedules, inventory policies, and personnel decisions on

A) techniques of observation.
B) qualitative analysis.
C) intuition alone.
D) the sales forecast.

Question 77

If a firms method of product delivery is exportation, then which of the following is not an important area to discuss in the distribution section of the marketing strategy?

A) Relevant laws concerning exportation
B) Product presentation
C) Knowledge of exchange rates between currencies
D) Relevant regulations concerning exportation

Question 78

The _____ method is probably the oldest form of research in existence.

A) questioning
B) secondary research
C) observational
D) interpretive

Question 79

Identifying all buyers in a market's submarkets and then adding up the estimated demand is known as the _____ sales forecasting approach.

A) breakdown process
B) buildup process
C) chain-ratio method
D) bottom-up

Question 80

Ideas Unlimited is a recently established consulting firm that specializes in providing retailers with information about regional sales trends. Typically, retail establishments are classified into three categories (specialty, niche, and general retailers). The current CEO of Ideas Unlimited wants to know the estimated demand in the market for its services. Accordingly, she instructs the firm's marketing department to identify all buyers in each category of retailers and derive a full demand assessment. The CEO is requesting a market demand estimate based on the

A) breakdown forecasting process.
B) aggregate forecasting process.
C) buildup forecasting process.
D) indirect forecasting process.