Deck 6: Small Business Marketing, Product, and Pricing Strategies

Question 1

Marketing analysis is best defined as an evaluation process that encompasses market segmentation,marketing research,and sales forecasting.

Answer 1

True

Question 2

Market analysis refers to identifying the types of customers to whom you will sell.

Answer 2

True

Question 3

Putting emphasis on moving merchandise often creates customer dissatisfaction,especially if high-pressure selling is used with little regard for customers' needs.

Answer 3

True

Question 4

Because the method takes into consideration both fixed and variable costs,average pricing is always an appropriate pricing approach for small businesses.

Question 5

With a skimming price strategy,prices for products or services are set lower than normal long-range market prices in order to gain more rapid market acceptance or to increase market share.

Question 6

A variable pricing strategy takes into consideration special market conditions and practices of competitors in arriving at a final product or service price.

Question 7

A small business can be successful only if an adequate market exists for its product or service.

Question 8

Small business managers are often too focused on the present.

Question 9

Under certain circumstances,local and federal laws must be considered in setting prices in a small business.

Question 10

Psychographic variables are related to visible characteristics of the market such as age and gender.

Question 11

The marketing strategy is frequently referred to as the marketing mix within the formal marketing plan.

Question 12

The combination of product pricing,promotion,and distribution activities is known as the marketing mix.

Question 13

The objective of a break-even analysis is to determine the quantity at which the product,at an assumed price,will generate enough revenue to start earning a profit.

Question 14

A company's major product strategy should be based on the nature of the firm's product offering and the unique features that separates it from the competition.

Question 15

Pricing and credit decisions are vital because they affect both revenue and cash flows.

Question 16

A trademark is an identifying feature used to distinguish a manufacturer's product.

Question 17

Pricing indirectly affects sales quantity.

Question 18

Total variable costs are costs that vary with the quantity produced or sold.

Question 19

A consumer-oriented philosophy expresses the belief that everything including production and sales depends entirely upon market conditions.

Question 20

A break-even analysis is typically presented by formulas or graphs.

Question 21

Price is a specification of what a seller requires in exchange for transferring ownership or use of a product or service.

Question 22

A market is best defined as a geographical area of marketing concern to the entrepreneur.

Question 23

Markup pricing has emerged as a manageable pricing system for retailers who must quickly price hundreds of products.

Question 24

A production-oriented philosophy emphasizes the product as the most important part of the business.

Question 25

A brand is a verbal and/or symbolic means of identifying a product.

Question 26

A follow-the-leader strategy is a marketing approach that uses a particular competitor as a model in setting prices.

Question 27

Prestige pricing requires that a firm's product have a real or perceived competitive advantage in the consumer market.

Question 28

The state of competition never affects a firm's orientation.

Question 29

The marketing plan should focus on marketing analysis and strategy and therefore exclude descriptions of the competition.

Question 30

A market must have buying units or customers.

Question 31

Credit involves a disagreement between buyer and seller in terms of payment.

Question 32

Total fixed costs are costs that remain constant as the quantity produced or sold varies.

Question 33

In general,it is desirable to include several forecasts covering the three sales scenarios: "most likely," "pessimistic," and "optimistic."

Question 34

Markup pricing is a cost-plus method of pricing that arrives at a markup percentage high enough to cover operating expenses,subsequent price reductions,and desired profit levels.

Question 35

A brand of jalapeno dipping olive oil would be considered a product item in a product mix.

Question 36

Benefit variables are related to product features.

Question 37

The sales forecast is the typical indicator of market adequacy.

Question 38

In conducting a comprehensive break-even analysis,a firm must examine both its revenue-cost relationships and its sales forecasts.

Question 39

A warranty is a promise that a product will perform at a certain level or meet certain standards.

Question 40

Segmenting variables are labels that identify the particular dimensions that distinguish one form of market behaviour from another.

Question 41

Price lining refers to the systematic determination of the right price for a product or service.

Question 42

Flexible pricing is a marketing approach that offers different prices to reflect differences in customer demand.

Question 43

Roger wants to develop a reputation for his company so that when people hear its name they think quality,service,and satisfaction.What is Roger concerned with?

A) the company's brand
B) the company's warranty policy
C) the company's product features
D) the company's delivery process

Question 44

Following the completion of the market analysis,the entrepreneur is ready to write the formal marketing plan.

Question 45

Service mark is a term indicating the non-exclusive right to use a brand to identify a service.

Question 46

Market segmentation,marketing research,and sales forecasting are the activities that make up what is commonly called market analysis.

Question 47

Packaging and labelling are unimportant in the process of marketing a product.

Question 48

What scenarios should sales forecasts cover?

A) most likely,least likely,and optimistic
B) pessimistic,least likely,and optimistic
C) pessimistic,optimistic,and most likely
D) least likely,pessimistic,and most likely

Question 49

A penetration pricing strategy is most practical when there is little threat of short-term competition in the market or when start-up costs must be recovered rapidly.

Question 50

ManMaid,a residential home cleaner,has fixed costs of $5,000 per month.It bills each client $150 for a cleaning service and incurs variable costs of $100.What is the breakeven point for ManMaid?

A) 33.33 cleanings per month
B) 50 cleanings per month
C) 100 cleanings per month
D) 150 cleanings per month

Question 51

Today,marketing is viewed as activities that direct the flow of goods and services from producer to consumer,or user.

Question 52

Donovan runs a candle manufacturing company.The baked goods candles,which look and smell like pies,tarts,and muffins,are a best seller.What would a butter tart candle represent?

A) product line
B) product item
C) product mix
D) product strategy

Question 53

Which marketing philosophy is considered to be short-sighted?

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

Question 54

Jason is making sure the quality control process is functioning properly to maintain his objective to provide the most reliable hand tools to his clients.What is Jason concerned with?

A) product vision
B) product mission
C) product strategy
D) product analysis

Question 55

Sales associates of Sewell Motors strive to exceed the company's expectation of treating the customer as its number one priority.Every action,policy,and ultimate sale is conducted professionally,with the needs of potential customers in mind.Which type of marketing philosophy does Sewell Motors subscribe to?

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

Question 56

Why is the consumer-oriented approach to marketing the preferred philosophy for all types of businesses?

A) It reminds employees of the importance of sales and to support the sales staff as much as is needed.
B) It addresses the need for sales people to do whatever it takes to close the sale.
C) It emphasizes that everything,including production,depends on consumer needs.
D) It evaluates how well the company is meeting its sales and profit objectives.

Question 57

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

Question 58

Oscar decides to remove the line of water filters that he had added to his office supply products because the filters are not selling.What is Oscar performing?

A) return on investment analysis
B) business analysis
C) break-even analysis
D) distribution analysis

Question 59

Christina has a line of silver jewellery.She feels some earring designs will be attractive for older women,some necklaces would be desired by professional women,and some bracelets would be suitable for both young female and male adults.What variable is Christina considering?

A) marketing
B) segmentation
C) production
D) design

Question 60

Cameron sells large bags of sawdust used to clean up spills in production processes.What type of customer does Cameron sell to?

A) individuals
B) professionals
C) home-makers
D) business users

Question 61

What is a promise,written or unwritten,that a product will do certain things or meet certain standards?

A) trademark
B) copyright
C) warranty
D) label

Question 62

Evan wants to make sure consumers don't become confused when reviewing the items he puts out for sale.He decides to remove desk lamps from the display that includes staplers,paperclips,and writing tools.What is Evan concerned with?

A) product item consistency
B) product mix consistency
C) product line consistency
D) product group consistency

Question 63

How does price have a dual influence on total sales revenue?

A) directly as part of the sales revenue equation and indirectly through its impact on demand
B) directly as part of the cost equation and indirectly through its impact on quality
C) directly as part of the markup equation and indirectly as part of the revenue equation
D) directly through its impact on demand indirectly through its impact on quality

Question 64

As the sales of desks increase at a furniture company,the raw material costs increase as well.What kind of cost are material costs?

A) fixed costs
B) variable costs
C) total costs
D) marginal costs

Question 65

Penelope is reviewing the features of the kitchen appliance line her company sells and is wondering if she should lower prices,allow free shipping,and then create an advertising blitz.What activity is Penelope engaged in?

A) marketing design
B) marketing promotions
C) marketing mix
D) marketing segmentation

Question 66

Colourful Concoctions,a maker of children's crayons,decides to price its boxes of crayons below the long-term market price.The firm agrees to reduce its profit margin from 30 percent to 5 percent in the short term in order to increase market share and discourage other firms from entering the crayon market.What strategy is Colourful Concoctions implementing?

A) variable pricing
B) skimming price
C) penetration pricing
D) price-lining

Question 67

What term refers to the total bundle of satisfaction offered to customers in an exchange transaction?

A) product
B) service
C) experience
D) satisfier

Question 68

Devon lives in a small town and sells stock plans to younger investors and government bonds to investors close to retirement age.What variable is Devon focusing on to make sales?

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

Question 69

A marketing professor is teaching her class about marketing philosophies by describing successful companies and their philosophies.Which philosophy would these companies most likely have in common?

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

Question 70

Rachel's company sells furniture for the home and furniture for the office.What would a kitchen table and kitchen chairs be part of?

A) product items
B) product mix
C) product line
D) product group

Question 71

What should the customer profile in a market analysis include?

A) a SWOT analysis of the competition
B) marketing research information
C) only primary data describing the customer
D) only secondary data describing the customer

Question 72

Constance allocates 90% of her overall budget to making the company's cyber security software easy to use and bullet-proof against attacks from hackers.Which type of marketing philosophy does Sewell Motors subscribe to?

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

Question 73

What is a rule to follow when choosing a name for a product?

A) easy to spell with few consonants in a row
B) has the same meaning in several mainstream languages
C) easy to pronounce and remember
D) has less than three syllables

Question 74

Jeremy is reviewing the company's various customer groups,gathering information about current market trends,and developing a sales forecast.What activity is Jeremy engaged in?

A) small business marketing
B) cash cow
C) market analysis
D) market strategy

Question 75

What must a group of customers or potential customers possess to be appropriately considered a market?

A) purchasing power
B) marketing power
C) retail power
D) pricing power

Question 76

A company sold 1,000 truck tires and has total variable costs of $40,000,total fixed costs of $30,000,and sales revenue of $110,000.What is the average cost per tire?

A) $30
B) $40
C) $70
D) $110

Question 77

To appeal the daring nature of teenagers and young adults,Bonnie started promoting her off trail bikes showing riders completing hair-raising jumps.What variable is Bonnie focusing on to make sales?

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

Question 78

A new high-end steak house sets its prices very high to appeal to high-income clients that desire top quality cuisine and prestige service.What pricing strategy is this restaurant using?

A) skimming
B) penetration
C) variable
D) prestige

Question 79

What areas of marketing strategy should be addressed within the marketing plan?

A) promotional,pricing,distribution,and product/service decisions
B) promotional,product/service decisions,sales support,and pricing plans
C) promotional,product/service decisions,supplier reliability,and distribution plans
D) promotional,pricing,supplier reliability,and distribution plans

Question 80

Happy with the company's success,Jude reduces further investment in R & D to increase distribution channels and widen the geographic coverage of his company's energy drink.Which marketing philosophy does Jude subscribe to?

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