Deck 9: Building a Bootstrap Marketing Plan

Question 1

Most marketing experts contend that the greatest marketing mistake small businesses make is:

A)failing to identify the target market.
B)spending too little on advertising.
C)underpricing their products and services.
D)spending too little on quality improvement.

Answer 1

A

Question 2

When it comes to the target market,most successful businesses:

A)have broad target markets,permitting them to offer a wide variety of products.
B)have little concern for the image of their company,focusing solely on how their products meet target market needs.
C)have well-defined "portraits" of the customers they want to attract.
D)don't have a clue as to their target market but put forth enough effort to succeed anyway.

Answer 2

C

Question 3

Market research:

A)provides the information that is foundational to the marketing plan.
B)is the process used to set the goals and objectives of the marketing plan.
C)is prohibitively expensive for the small business owner.
D)is relatively unimportant to the small business owner if the owner is close to his/her customers.

Answer 3

A

Question 4

A business plan for the small business owner:

A)is of relatively little importance due to the dynamic nature of the marketplace.
B)is synonymous with the marketing plan.
C)tends to stress how the entrepreneur will operate rather than detailing what he/she wants to accomplish.
D)contains both a marketing plan and a financial plan.

Question 5

One-to-one marketing is a marketing strategy that:

A)gathers data on individual customers and then tailors an appeal to their needs and tastes.
B)uses technology to make customers feel like they are being treated special.
C)focuses on the use of personal selling and consultative advising of customers.
D)relies heavily on geographic data but ignores demographic and psychographic data.

Question 6

The primary goal of marketing research is to:

A)discover potential competitors.
B)reduce the risks associated with business decisions.
C)determine how to allocate distribution resources.
D)help management choose the appropriate promotional tool.

Question 7

________ is the process of creating and delivering desired goods and services to customers,and involves all of the activities associated with winning and retaining loyal customers.

A)Marketing
B)Personal selling
C)Promotion
D)Advertising and public relations

Question 8

Market research answers what important question for the small business owner?

A)How shall I set up my distribution system?
B)What should my goals and objectives be in my marketing plan?
C)Who are my customers and what are they looking for?
D)What form of business ownership would be most effective in this market?

Question 9

Small businesses can compete with larger rivals with bigger budgets by employing unconventional,low-cost creative techniques known as:

A)market research.
B)astonishing customer service.
C)bootstrap marketing techniques.
D)psychographics.

Question 10

The focus of the small company's marketing plan is:

A)its product or service.
B)the customer.
C)attracting capital.
D)an evaluation of key competitors.

Question 11

When it comes to gathering market research on customers,most small companies tend to be:

A)as good at it as large companies.
B)at a severe disadvantage in comparison to large companies.
C)data rich,lots of facts,but information poor,little in a useful form.
D)less effective at defining the research problem than larger companies.

Question 12

________ is a process in which computer software that uses statistical analysis,database technology,and artificial intelligence finds hidden patterns,trends,and connections in data so that business owners can make better marketing decisions and predictions about customer's behavior.

A)Customer relationship management
B)Data mining
C)Data discovery
D)Simulation

Question 13

John wants to answer the question,"What drives my customers' buying behavior?" The best information to address this question comes from:

A)demo/geographics data.
B)geographics data.
C)demographics data.
D)psychographics data.

Question 14

The marketing plan builds a strategy for success:

A)from the customer's point of view.
B)as described by the marketing manager.
C)based on eliminating all competition.
D)by focusing on product development and market management.

Question 15

The marketing plan should include certain key objectives,such as:

A)determining product costs through market research.
B)pinpointing the specific target markets a small business will serve.
C)determining what costing strategies to use.
D)discovering what the company's ETDB index is.

Question 16

Shifting patterns in the age,income,education,race,and other characteristics of the population are the subject of ________ and exert a potent force on a company's marketing plan.

A)psychographics
B)geographics
C)demographics
D)geo-demographics

Question 17

The marketing goal of a small business is to treat each customer as a(n):

A)individual.
B)group.
C)profit center.
D)cost center.

Question 18

Market research for a small business can be:

A)arbitrary.
B)informal.
C)random.
D)haphazard.

Question 19

Entrepreneurs who recognize demographic,social,and cultural trends as they emerge have the opportunity to ________ their companies from the competition in meaningful ways.

A)integrate
B)differentiate
C)placate
D)mediate

Question 20

Effective one-to-one marketing involves:

A)identifying your best customers.
B)treating each customer as an individual.
C)developing a marketing plan designed specifically to appeal to their customer needs,tastes and preferences.
D)All of these

Question 21

________ puts the customer at the center of a company's thinking,planning,and action and shifts the focus from a product or service to customers and their needs and wants.

A)Guerilla marketing strategy
B)Data mining
C)Customer relationship management (CRM)
D)Entertailing

Question 22

Clementine,DataScope Pro,GoldMine,and MineSet are what type of software packages?

A)Customer relationship management
B)Data mining
C)Data discovery
D)Word processing

Question 23

The total quality management (TQM)concept:

A)strives to achieve quality not just in the product or service itself,but in every aspect of the business and its relationship with the customer.
B)relies on quality inspections through an army of quality control inspectors.
C)focuses on reducing the time it takes to fulfill a customer's request for a product.
D)is built on market research.

Question 24

Companies do a number of things to focus on their customers,including:

A)fixing customer complaints quickly.
B)conducting market research on what superior customer service is.
C)offering quality products at low prices.
D)implementing a TCM management system in their production facility.

Question 25

The key to marketing success is:

A)economy of scale in promotion by creating broad-based ad campaigns.
B)understanding customers' unique needs,wants and preferences.
C)the use of direct-marketing and e-commerce.
D)catering to teenagers.

Question 26

To build an effective customer service program,it is important to:

A)offer low prices.
B)train key employees to watch for and intervene when there are problems.
C)swiftly discipline employees who mistreat customers.
D)let managers wait on customers occasionally.

Question 27

Companies with strong reputations for quality follow certain guidelines,such as:

A)establishing long-term relationships with suppliers.
B)fostering individual effort and pride of workmanship.
C)rewarding employees for compliance to rules and procedures.
D)building an extensive quality inspection system with many quality inspectors.

Question 28

Small businesses are able to maintain a leadership role in innovation by:

A)using their size,flexibility,and speed to their advantage.
B)spending much more money on R & D than large companies do.
C)foreseeing trends better and far enough in advance that they can spread innovation costs over several years.
D)making better use of technology than large companies.

Question 29

________ is drawing customers into a store by creating a kaleidoscope of sights,sounds,smells,and activities,all designed to entertain and,of course,to sell.

A)Retailing
B)Entertailing
C)Etailing
D)Merchandising

Question 30

TCM is the acronym for:

A)total customer management.
B)time compression management.
C)total customer marketing.
D)total compression management.

Question 31

________ recognizes that any improvement in quality may improve a company's competitive ability.

A)Customer service
B)Return on quality
C)Total quality management
D)Total customer satisfaction

Question 32

Numerous surveys have concluded that the most important element of service is:

A)the personal touch.
B)convenient business hours.
C)speedy transactions.
D)innovative product design.

Question 33

A company's competitive edge is:

A)dependent on the availability of its products.
B)largely a function of its pricing strategies.
C)the superiority of its market research.
D)based on customers' perception of its products and services.

Question 34

A key to effective innovation by the entrepreneur is:

A)dedicating at least 20% of pre-tax revenues to R & D.
B)always looking for new product and service ideas.
C)hiring managers with a track record for innovation.
D)None of these

Question 35

The worst marketing catastrophe to befall any business would be to:

A)encourage customers to complain and have employees give management feedback on the complaints.
B)have great advertising and poor quality products.
C)have poor customer service and a highly effective promotional campaign.
D)have a great product and an inaccessible location.

Question 36

The majority of customers who stop patronizing a particular store do so because:

A)its prices are too high.
B)its quality is too low.
C)an indifferent employee treated them poorly.
D)it failed to advertise enough.

Question 37

Studies show that customers want ________ from businesses almost more than anything else.

A)quality
B)low cost
C)cutting edge technology
D)convenience

Question 38

________ puts the customer at the center of a company's thinking,planning,and action and shifts the focus from a product or service to customers and their needs and wants.

A)Pull strategy
B)Entertailing
C)Customer relationship management (CRM)
D)Interactivity

Question 39

Small companies with limited financial resources can often use ________ as a way to differentiate themselves from larger competitors.

A)innovation
B)lower prices with higher quality
C)high price and high quality
D)customer service

Question 40

One "natural" advantage small businesses have over large businesses,which can be a significant competitive advantage,is:

A)relationship marketing.
B)their ability to conduct market research.
C)their lower costs.
D)their ability to serve many highly diverse target markets.

Question 41

A ________ is a small number of customers who give you feedback on specific issues in your business-quality,convenience,hours of operation,service,and so on.

A)survey
B)questionnaire
C)focus group
D)All of the above

Question 42

The most common channel of distribution for consumer goods is:

A)manufacturer → consumer.
B)manufacturer → retailer → consumer.
C)manufacturer → wholesaler → retailer → consumer.
D)manufacturer → broker → consumer.

Question 43

________ is the process of creating and delivering desired goods and services to customers and involves all of the activities associated with winning and retaining loyal customers.

A)Retailing
B)Selling
C)Marketing
D)None of the above

Question 44

________ refers to developing,maintaining,and managing long-term relationships with customers so that they will want to keep coming back.

A)Customer relationship management
B)Customer retention management
C)Customer management software
D)Customer reassurance management

Question 45

The cost of marketing a product is highest in the:

A)introductory stage.
B)growth and acceptance stages.
C)maturity stage.
D)saturation stage.

Question 46

Which strategy allows a small company to maximize the advantages of its smallness and to compete effectively even in industries dominated by giants?

A)Grand market strategy
B)Mass strategy
C)Niche strategy
D)None of the above

Question 47

Bootstrap marketing also is sometimes known as:

A)ambush marketing.
B)target marketing.
C)customer marketing.
D)guerilla marketing.

Question 48

The primary opportunity for time compression management (TCM)lies in its application to:

A)the purchasing process.
B)the production process.
C)the administrative process.
D)the marketing process.

Question 49

Time compression management (TCM)involves:

A)speeding new products to market.
B)enhancing the quality of existing products.
C)decreasing the time it takes a product to move from introduction to the maturity stage of the product life cycle.
D)shortening the sales clerks' response time to customers entering the retail store and then being served.

Question 50

The right price for a product depends on which factors?

A)A small company cost structure
B)The desired image the company wants to create in its customers' minds
C)An assessment of what the market will bear
D)All of the above

Question 51

One of the objectives that a bootstrap marketing plan should accomplish is:

A)it should pinpoint the target market.
B)it should determine customer needs,wants and characteristics.
C)it should identify company vendor potential.
D)Both A and B

Question 52

________ is the vehicle for gathering the information that serves as the foundation for the marketing plan.

A)Target market identification
B)Market research
C)Banker identification
D)Competitive analysis

Question 53

Customer surveys and questionnaires should:

A)be short.
B)not give biased results.
C)use simple ranking systems.
D)All of the above

Question 54

Surveys,questionnaires,and focus groups are considered to be:

A)primary research.
B)secondary research.
C)data collation.
D)All of the above

Question 55

________ is a process in which computer software that uses statistical analysis,database technology,and artificial intelligence finds hidden patterns,trends,and connections in data so that business owners can make better marketing decisions and predictions about their customers' behavior.

A)Demographic collection
B)Target marketing
C)Data mining
D)None of the above

Question 56

The product life cycle concept means that small businesses must:

A)constantly be involved in product innovation.
B)track demographic and psychographic trends carefully.
C)create both place and time utility if they are to survive.
D)use a market penetration strategy if they are to be successful.

Question 57

One of the first steps in building a marketing plan is identifying a small company's ________,the group of customers at whom the company aims its products and services.

A)target market
B)competitors
C)customers
D)Both A and C

Question 58

Free trial offers,free delivery,lengthy warranties,and money back guarantees are examples of:

A)promotion.
B)product differentiation.
C)non-price competition.
D)customer discounts.

Question 59

The time span between stages in the product life cycle:

A)generally runs about six months to one year per stage.
B)is highly influenced by the amount of promotion that is done.
C)depends entirely on the type of products involved.
D)depends on the types of market strategy the small business owner is pursuing.

Question 60

One of the objectives of a bootstrap marketing plan is to find the ________ in the market.

A)"pain points"
B)"entry point"
C)"skimming point"
D)"unique point"

Question 61

The primary general goal of market research is to identify and profile the target market and most profitable customer in it.

Question 62

Small companies are at a definite disadvantage compared to larger ones when it comes to conducting market research since it is so expensive.

Question 63

The product or service offered is the foundation of any marketing-oriented business.

Question 64

Small business owners can use market research to uncover potential market opportunities.

Question 65

Individualized marketing requires business owners to gather and assimilate detailed information about their products.

Question 66

A bootstrap marketing plan should have four objectives: profit,profit,profit,and profit.

Question 67

The increasing diversity of our population is creating a marketing "threat" to small businesses because they can't profitably serve small niches.

Question 68

The primary goal of any business,according to Theodore Levitt,is to create and keep a customer.

Question 69

The marketing function cuts across the entire company,affecting every aspect of its operation.

Question 70

The marketing approach that companies of all sizes strive to achieve is mass marketing.

Question 71

Small businesses have found out that social media such as Facebook and Twitter are expensive.

Question 72

While market research is a sophisticated and complex process,the small business owner can conduct some of it for him/herself,but will need assistance interpreting it.

Question 73

The most effective way to market to the diversity of the American market is to choose a single ethnic segment and market to it as if it were a homogeneous market.

Question 74

A target market is the group of customers at whom the company aims its products and services.

Question 75

What drives my customers' buying behavior? Are they receptive to new products or are they among the last to accept them? What values are most important to them? These questions are to identify:

A)psychographic data.
B)geographic data.
C)demographic data.
D)All of the above

Question 76

Market research frequently only confirms the intuition of the small business owner.

Question 77

Too often,business plans describe in great detail what the entrepreneur intends to accomplish but pay too little attention to how he plans to accomplish it.

Question 78

Most marketing experts contend that the greatest marketing mistake small businesses make is defining their target market too specifically or clearly.

Question 79

Tracking demographic trends is interesting,but it is not essential to building or implementing a successful marketing plan.

Question 80

The goals of one-to-one marketing are to attract,retain and increase the purchases by the target customer.