Deck 5: Identifying and Analyzing Domestic and International Opportunities

Question 1

As described in the Opening Profile to Chapter 5, Spin Master Ltd has been successful breaking into the toy industry primarily by using mass advertising campaigns to reach its target markets.

Answer 1

False

Question 2

The industry analysis section of the business plan should be completed after the marketing plan is written, to avoid duplication of effort.

Answer 2

False

Question 3

When preparing the industry analysis section of the business plan, secondary sources of information should not be needed if the entrepreneur already has experience in the specific industry.

Answer 3

False

Question 4

Marketing research involves the gathering of information in order to better understand customer needs, competitors' strengths and weaknesses, and to help make decisions on product, pricing, promotion, and distribution.

Question 5

The first step in deciding how to position a new venture in a marketplace is to analyze the strengths, weaknesses, and positioning of key competitors.

Question 6

An entrepreneur seeking to research a market will have difficulty gathering information about potential competition as this information is normally kept private and closely guarded.

Question 7

The first step in conducting marketing research is to define the objectives or purposes of doing it.

Question 8

What is guerrilla marketing and what are some examples of the efforts that can be taken to affect this.

Question 9

Describe the steps involved in preparing the marketing plan, as presented in the text

Question 10

Commercial data sources used for marketing research are widely available but may be cost prohibitive for the individual entrepreneur.

Question 11

When conducting marketing research, primary data is information that is new and collected through various methods, such as observation, networking, interviewing, focus groups, or experimentation.

Question 12

Discuss the importance of need segmentation and the five characteristics of a segmentation strategy that make it more effective.

Question 13

The most common approach to gathering market information is the focus group discussion, due to its simplicity.

Question 14

When comparing survey methods of gathering primary data, mail surveys can be cheaply done but suffer from a poor response rate and length of time to complete.

Question 15

When comparing survey methods of gathering primary data, the personal interview rates high on flexibility, response rate, and amount of detail but suffers from being the most expensive and time consuming method.

Question 16

An effective marketing plan should be based on facts and valid assumptions, not merely the opinions of the writer.

Question 17

Market segmentation is most simply defined as breaking a marketplace down into categories of buyers who share similar characteristics.

Question 18

To be useful, a market segmentation strategy must have the following characteristics: meaningful, mutually exclusive, measurable, substantial, and actionable.

Question 19

Describe the characteristics of an effective marketing plan.

Question 20

The purpose of distribution is to create utility for the consumer.

Question 21

As described in the Opening Profile to Chapter 5, the key to Spin Master Ltd.'s success has been __________.

A) large budget, mass communications campaigns aimed directly at their target market, children
B) ingenuity and a combination of public relations and grassroots marketing
C) innovative product development and flexible manufacturing techniques
D) intensive retail distribution
E) None of the answers apply.

Question 22

As described in the Opening Profile to Chapter 5, Spin Master Ltd, with their product Air Hogs; rather than launch a massive retail and marketing campaign, they decided to focus on

A) large budget, mass communications campaigns aimed directly at their target market, children
B) ingenuity and a combination of public relations and grassroots marketing
C) innovative product development and flexible manufacturing techniques
D) selling the product to specialty educational toy stores and through the Sears catalogue
E) None of the answers apply.

Question 23

The primary focus of the industry analysis section of the marketing plan is to __________.

A) show why the competitive strategy for the new venture makes sense
B) provide sufficient knowledge of the environment that can affect marketing strategy decision making
C) describe the assumptions that were made when determining product strategy
D) compare the marketing strategy of the new venture to its competition
E) None of the answers apply.

Question 24

The industry analysis section of the business plan __________.

A) begins with broad-based assessment of environmental and industry trends
B) provides insight into competitor strengths and weaknesses
C) is used to formulate the market positioning strategy
D) All of the answers are correct.

Question 25

An entrepreneur can use which of the following to complete the competitor analysis section of the marketing plan?

A) printed materials such as catalogues, brochures, and flyers
B) scanning websites
C) newspaper and magazine articles
D) personal visits to competitors' facilities
E) All of the answers are correct.

Question 26

The purpose of conducting a competitor analysis as part of the marketing plan is to __________.

A) decide how to best position the new venture within the existing marketplace
B) meet the competition on their own turf
C) avoid making the same mistakes
D) determine who has the most customers available for stealing
E) None of the answers apply.

Question 27

Compare the characteristics of the three different survey methods for gathering primary data.

Question 28

Marketing research __________.

A) costs may vary significantly
B) may be conducted by the entrepreneur or an external supplier
C) begins with a definition of objectives or purpose
D) All of the answers are correct.
E) None of the answers apply.

Question 29

Marketing research should begin with __________.

A) definition of objectives or purpose
B) gathering data from primary sources
C) determining the budget for the research effort
D) gathering data from secondary sources
E) None of the answers apply.

Question 30

The easiest way for an entrepreneur to define the purpose or objectives of conducting marketing research is to __________.

A) look at marketing research studies already completed for similar business ventures
B) review the results of the competitor analysis and look for gaps
C) think in terms of what information is needed to prepare the marketing plan
D) review their marketing strategy for the new venture and look for inconsistencies
E) None of the answers apply.

Question 31

Compare and contrast the different methods of gathering primary data when conducting marketing research.

Question 32

Sources of secondary data can include which of the following?

A) commercial sources such as Nielson Indexes or Dun and Bradstreet
B) government sources such as Statistics Canada
C) newspaper, magazine, or other published articles
D) the Internet
E) All of the answers are correct.

Question 33

When conducting marketing research, secondary data is collected before primary data for which of the following reasons?

A) Secondary data is cheaper to use than primary data.
B) Secondary data can be used to avoid making the same mistakes.
C) Secondary data is typically much faster to collect than primary data.
D) Secondary data can be used to help shape the collection of primary data.
E) All of the answers are correct.

Question 34

Primary data collection procedures include which of the following?

A) observation
B) experimentation
C) interviewing
D) focus groups
E) All of the answers are correct.

Question 35

Briefly discuss the four steps in conducting marketing research for a new venture.

Question 36

In comparison to other primary data collection methods, observation is __________.

A) the simplest approach
B) the fastest approach to gathering information
C) the most comprehensive approach
D) the least engaging approach to gathering information
E) None of the answers apply.

Question 37

As a primary data collection method, networking __________.

A) is the most common approach to gathering information
B) is the simplest approach to gathering information
C) is the least focused approach to gathering information
D) can be a valuable, low-cost method to learn about the marketplace
E) None of the answers apply.

Question 38

As discussed in the text, the most common approach to gathering primary information is __________.

A) observation
B) focus groups
C) experimentation
D) interviewing
E) None of the answers apply.

Question 39

Interviewing as a primary data collection method can include which of the following?

A) telephone
B) personal
C) mail
D) online
E) All of the answers are correct.

Question 40

The primary data collection method that is fast, inexpensive, flexible, and has a high response rate but provides the least amount of detail possible would be which of the following?

A) telephone
B) mail
C) personal
D) online
E) None of the answers apply.

Question 41

The primary data collection method that is inexpensive and provides some depth in potential responses, but suffers from less flexibility, being slow and the poorest response rate would be which of the following?

A) telephone
B) mail
C) personal
D) online
E) None of the answers apply.

Question 42

The primary data collection method that is the most flexible, has the most potential for detail and the highest response rate, but suffers from being slow and also the most expensive would be which of the following?

A) telephone
B) mail
C) personal
D) online
E) None of the answers apply.

Question 43

Questions used in surveys in marketing research should be designed to __________.

A) be easy to answer
B) not bias the respondent
C) be clear and concise
D) All of the answers are correct.
E) None of the answers apply.

Question 44

As a primary data collection method, focus groups __________.

A) should be led by the entrepreneur
B) consist of 20 to 30 potential customers
C) are an informal method of gathering market information
D) can gather large amounts of quantitative data for relatively little cost
E) All of the answers are correct.

Question 45

As discussed in the text, the strongest argument for conducting marketing research as part of the entrepreneurship process is which of the following?

A) It takes relatively few people to produce a statistically valid and accurate sample for a large market.
B) Only marketing research will give you unbiased opinions of your ideas, versus those of your friends, family, and associates.
C) Properly segmenting a market takes research to know what groups exist and how they are different from each other.
D) The costs of business failure are much higher than the cost of conducting marketing research, which if done properly, can help to avoid failure in the first place.
E) All of the answers are correct.

Question 46

The primary function of the marketing plan is to __________.

A) establish how the entrepreneur will effectively compete and operate in the marketplace
B) show where the money will be spent to generate the desired level of sales revenue
C) determine who will be responsible for the sales function within the organization
D) determine how the venture will communicate with its target customers
E) None of the answers apply.

Question 47

Which of the following is not one of the basic questions that a marketing plan should answer, as discussed in the text?

A) Where have we been?
B) Where do we want to go?
C) How do we get there?
D) How do we know when to stop?

Question 48

Each year, the entrepreneur should prepare an annual marketing plan __________ any decisions are made regarding production or manufacturing, personnel changes, or financial resources needed.

A) before
B) in conjunction with
C) after
D) None of the answers apply.

Question 49

Effective marketing plans __________.

A) are based on facts and valid assumptions
B) are simple and short
C) are flexible
D) should specify performance criteria that will be monitored and controlled
E) All of the answers are correct.

Question 50

In developing a Web site, an entrepreneur needs to remember that a Web site is a communication vehicle and should address the following questions:

A) Who is the audience?
B) What are the objectives for the site?
C) What do you want consumers to do upon visiting the site?
D) Is the Web site an integral part of the venture's total communication program?
E) All of the answers are correct.

Question 51

As discussed in the text, the __________ identifies the major interacting components, both internal and external to the firm, that enables the firm to successfully provide products and/or services to the marketplace.

A) marketing plan
B) marketing mix
C) marketing system
D) marketing structure
E) None of the answers apply.

Question 52

Generally speaking, entrepreneurs see the external environment as __________ but need to be recognized as part of the marketing plan.

A) uncontrollable
B) marginally influential
C) largely influential
D) predictable
E) None of the answers apply.

Question 53

Which of the following would be considered an external environmental factor?

A) technology
B) culture
C) the economy
D) competition
E) All of the answers are correct.

Question 54

Which of the following would not be considered an external environmental factor?

A) the economy
B) competition
C) suppliers
D) technology
E) culture

Question 55

Internet marketing allows entrepreneurs to present consumers with a significant amount of Information ___________________________.

A) to establish controls on the process
B) to redirect or modify the effort
C) to track the process
D) at lower cost than traditional methods.

Question 56

Which of the following would be considered an internal environmental variable?

A) financial resources
B) suppliers
C) goals and objectives
D) management team
E) All of the answers are correct.

Question 57

While PR is sometimes lumped in the same category with guerrilla marketing, it is important to note that they are different. PR is concerned with generating a positive company image and impacting consumer attitudes toward a company, while guerrilla marketing focuses on

A) Generating sales
B) a more direct channel of distribution than consumer markets
C) to steal as many customers from your competition as possible
D) All of the answers are correct.

Question 58

As described in the text, the essense of guerilla marketing is __________.

A) to get the maximum amount of exposure for a minimum of expenditure
B) to steal as many customers from your competition as possible
C) using subversive tactics that will be noticed by your target market(s)
D) using conventional promotional tactics more effectively
E) None of the answers apply.

Question 59

As defined in the text, the combination of product, price, promotion, and distribution and other marketing activities needed to meet marketing objectives are known as __________.

A) the marketing mix
B) 3 P's and a D
C) marketing tactics
D) the marketing plan
E) None of the answers apply.

Question 60

Decisions related to quality of materials, style, features, options, brand name, packaging, sizes, service availability, and warranties belong under which of the following marketing mix elements?

A) product
B) price
C) distribution
D) promotion
E) None of the answers apply.

Question 61

Decisions related to quality image, quantity, discounts, allowances, credit and payment terms belong under which of the following marketing mix elements?

A) product
B) price
C) distribution
D) promotion
E) None of the answers apply.

Question 62

Decisions related to the use of wholesalers and retailers, how many and what type to use, geographic coverage, inventory, and transportation belong under which of the following marketing mix elements?

A) product
B) price
C) distribution
D) promotion
E) None of the answers apply.

Question 63

Decisions related to media alternatives, message, budget, role of personal selling, sales promotion, and publicity belong under which of the following marketing mix elements?

A) product
B) price
C) distribution
D) promotion
E) None of the answers apply.

Question 64

The first step in preparing the marketing plan is to __________.

A) define the business situation by conducting a situation analysis
B) set marketing objectives that are specific and measurable
C) determine marketing strategies and prepare action programs with assigned responsibilities
D) match feasibility of programs against available resources
E) None of the answers apply.

Question 65

The second step in preparing the marketing plan is to __________.

A) define the business situation by conducting a situation analysis
B) set marketing objectives that are specific and measurable
C) determine marketing strategies and prepare action programs with assigned responsibilities
D) match feasibility of programs against available resources
E) None of the answers apply.

Question 66

The third step in preparing the marketing plan is to __________.

A) define the business situation by conducting a situation analysis
B) set marketing objectives that are specific and measurable
C) determine marketing strategies and prepare action programs with assigned responsibilities
D) match feasibility of programs against available resources
E) None of the answers apply.

Question 67

The fourth step in preparing the marketing plan is to __________.

A) define the business situation by conducting a situation analysis
B) set marketing objectives that are specific and measurable
C) determine marketing strategies and prepare action programs with assigned responsibilities
D) match feasibility of programs against available resources
E) None of the answers apply.

Question 68

As defined in the text, pursuing traditional goals of profit and revenue through unconventional means is known as __________.

A) guerilla marketing
B) tactical marketing
C) lean marketing
D) strategic marketing
E) None of the answers apply.

Question 69

The promotional plan should include which of the following?

A) objectives
B) timelines
C) budget
D) controls
E) All of the answers are correct.

Question 70

As discussed in the text, the problem with traditional approaches to market segmentation is __________.

A) they rely too much on behavioural research of questionable validity
B) they are too focused on demographic variables and not enough on psychographics and buyer behaviour
C) they produce segments that are too small to be of interest to an entrepreneur
D) they are too focused on psychographic variables and not enough on demographic factors
E) None of the answers apply.

Question 71

As discussed in the text, need-based segmentation must include which of the following characteristics to be useful?

A) meaningful
B) mutually exclusive
C) measurable
D) substantial
E) All of the answers are correct.

Question 72

Which of the following would not be a characteristic of need-based segmentation, as discussed in the text?

A) measurable
B) actionable
C) substantial
D) differentiable
E) mutually exclusive

Question 73

An entrepreneur might use which of the following criteria when choosing a target market?

A) the cost of each transaction
B) the time involved to serve each customer
C) the method of communication necessary
D) cost of goods sold
E) All of the answers are correct.

Question 74

When segmenting and choosing a target market, entrepreneurs often make the mistake of __________.

A) assuming that the highest revenue-producing segment will be the most profitable for them to serve
B) using too many segmentation variables, thus producing very large segments
C) assuming that their competition has already chosen another segment to focus on
D) using buyer behaviour as the sole criteria for segmentation
E) None of the answers apply.

Question 75

As discussed in the text, once target market(s) have been selected, a comprehensive customer profile should be developed based on __________.

A) what the venture has to offer them
B) their needs and buying behaviour
C) what the venture's competitors have to offer
D) the market opportunity that has been identified
E) None of the answers apply.

Question 76

Developing a comprehensive customer profile would take into consideration which of the following?

A) demographic factors
B) quantities and frequency of purchase
C) why the customer buys the product
D) influence of advertising and other forms of promotion
E) All of the answers are correct.

Question 77

The concept of proper relationship marketing is based on __________.

A) appealing to the largest group of customers in the target market
B) the law of averages and big numbers
C) selective retention of high profile customers who share common characteristics
D) the realization that the majority of profits will likely come from a small percentage of the venture's customers
E) None of the answers apply.

Question 78

The key to an effective relationship marketing program is __________.

A) the use of technology to gather information on different customer groups
B) to ignore traditional market segmentation methods and target all customers in the beginning
C) to be able to identify who the most profitable customers are to a business
D) to allocate the promotional budget towards many different groups rather than only a few
E) None of the answers apply.

Question 79

Marketing goals and objectives should __________.

A) be specific
B) be realistic
C) be measurable
D) represent key areas to ensure marketing success
E) All of the answers are correct.

Question 80

Marketing goals and objectives may be set in terms of __________.

A) market share
B) profits
C) sales
D) All of the answers are correct.
E) None of the answers apply.