Deck 8: Building a Powerful Marketing Plan

Question 1

Companies whose products or services are ________ from major social,demographic,and economic trends rather than ________ with them must change their course or run the risk of failing.

A)converging; separating
B)diverging; fragmenting
C)converging; diverging
D)diverging; converging

Answer 1

D

Question 2

Which of the following is not one of the objectives a guerrilla marketing plan should accomplish?

A)Determine customer needs and wants through market research.
B)Determine how the company will be able to serve all customers.
C)Analyze the firm's competitive advantages and build a marketing strategy around them.
D)Create a marketing mix that meets customer needs and wants.

Answer 2

B

Question 3

Which of the following is not a primary market research source?

A)Customer surveys
B)Focus groups
C)Daily transactions
D)All of the above are sources of primary market research.

Answer 3

D

Question 4

________ 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)Customer service

Question 5

An individualized (one-to-one)marketing campaign requires business owners to:

A)collect information on their customers,linking their identities to their transactions.
B)calculate the long-term value of their customers so they know which ones are most desirable and most profitable.
C)practice "just-in-time marketing" by knowing what their customers' buying cycle is and time their marketing efforts to coincide with it.
D)All of the above

Question 6

Which of the following statements concerning a company's target market is false?

A)Marketing experts contend that the greatest marketing mistake small companies make is failing to clearly define the target market to be served.
B)A "shotgun approach" to marketing trying to appeal to everyone rather than to only a small market segment is the most effective way to compete with large companies and their bigger marketing budgets.
C)Small companies are usually better suited to pinpointing target markets that their larger rivals overlook or consider too small to be attractive.
D)Most successful small businesses have well-defined portraits of the customers they are trying to attract.

Question 7

Warren Cassell,owner of Just Books,a very small book store,makes special orders for customers at no extra charge,provides free gift-wrapping,conducts out-of-print book searches,offers autographed copies of books,hosts "Meet the Author" breakfasts,and publishes a newsletter for book lovers.By offering his customers lots of "extras" they do not get at larger bookstores,Cassell has won a growing base of loyal customers.Cassell is relying on which marketing strategy?

A)Demographic marketing
B)Transaction selling
C)Individualized marketing
D)Guerrilla marketing

Question 8

Tracking ________ patterns can enable entrepreneurs to adjust their strategies accordingly to better position them to take advantage of the opportunities these trends may create.

A)population
B)demographic
C)weather
D)traffic

Question 9

Which of the following techniques does marketing consultant Faith Popcorn recommend to small business owners interested in tracking market trends?

A)Hire a top-10 market research firm to track trends for you.
B)Watch what the large corporations in your industry are doing.
C)Read as many current publications as possible.
D)Talk with two to three people at random each week to hear what they are buying and why.

Question 10

The focus of a small company's marketing plan should be on:

A)preparing accurate financial forecasts.
B)the customer.
C)describing how its products or services are superior to those of competitors.
D)the competition.

Question 11

Which of the following statements concerning marketing research is false?

A)Market research is the vehicle for gathering the information that serves as the foundation for the company's marketing plan,helps avoid costly marketing mistakes,and can uncover unmet customer needs the business can serve.
B)Market research involves systematically collecting,analyzing,and interpreting data pertaining to the small company's market,customers,and competitors.
C)Small companies are at a distinct disadvantage compared to larger ones when conducting market research since it is so expensive.
D)Small businesses cannot afford to miss their target markets and market research can help them focus their efforts.

Question 12

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.

Question 13

One of the worst and most common mistakes entrepreneurs make is:

A)assuming that a market exists for their product or service.
B)taking too much time to conduct planning and research.
C)conducting informal research.
D)conducting online research,which is too impersonal and does not yield accurate information.

Question 14

Studies of shifting patterns in age,income,education,race,and other population characteristics are the subject of:

A)psychographics.
B)demographics.
C)sociographics.
D)paleontology.

Question 15

For an entrepreneur,a business plan:

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 16

The foundation of every business is:

A)its products and services.
B)satisfying the customer.
C)doing whatever it takes to earn a profit.
D)operating in a socially responsible manner.

Question 17

Successful marketing requires a business owner to:

A)understand target customers' needs,demands,and wants.
B)offer customers products and services that will satisfy their needs,demands,and wants.
C)provide customers with service,convenience,and value so that they will return.
D)All of the above

Question 18

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 customers' behavior is know as:

A)guerilla marketing.
B)data mining.
C)individualized marketing.
D)total quality management.

Question 19

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)guerrilla marketing strategies.
D)psychographics.

Question 20

Your friend has decided to conduct market research to assist in making informed decisions for his small business.What should you recommend as the first step in the market research process?

A)Collect data
B)Define the objective
C)Design the research
D)Determine the relevant information

Question 21

Companies with a customer focus typically ask their customers all but which of the following questions?

A)What are we doing right?
B)What have we done wrong?
C)What can we do in the future?
D)What have our competitors done wrong?

Question 22

Which of the following is not a suggestion of a means of focusing on the customer?

A)Discourage customer complaints.
B)Get total commitment to superior customer service from top managers.
C)Carefully select and train everyone who will deal with the customer.
D)Actually,all of the above are suggested as a means of focusing on the customer.

Question 23

________ can be an effective part of a guerrilla marketing strategy,enabling an entrepreneur to economically communicate with large numbers of customers.

A)Frequent emails
B)Brand awareness
C)Direct mail
D)Business blogging

Question 24

________ is the process of communicating a company's unique selling proposition to its target customers in a consistent and integrated manner.

A)Branding
B)Selling
C)Entertailing
D)Marketing

Question 25

Which of the following is not a secondary source of market research data?

A)Census data
B)Trade publications
C)Focus groups
D)Magazines

Question 26

The process of systematically creating the optimum experience for the customer every time they interact with a company is called:

A)total quality management,or TQM.
B)time compression management,or TCM.
C)guerilla marketing.
D)customer experience management,or CEM

Question 27

The typical business loses ________ percent of its customers each year.

A)20
B)30
C)40
D)50

Question 28

Which of the following features allows a small company to utilize relationship marketing successfully?

A)Close contact with its customers
B)Personal attention to its customers
C)Emphasis on superior service for its customers
D)All of the above

Question 29

Attracting a new customer costs ________ as much as keeping an existing one.

A)twice
B)five times
C)half
D)three-fourths

Question 30

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 31

A marketing concept designed to draw customers into a store by creating a kaleidoscope of sights,sounds,smells,and activities,all designed to entertain and of course,sell,is:

A)entertailing.
B)entertaining.
C)retailing.
D)branding.

Question 32

A ________ is a company's "face" in the marketplace and communicates a key message to the target market.

A)blog
B)logo
C)unique selling proposition (USP)
D)brand

Question 33

In your training program,you stress to all new employees the importance of customer satisfaction,citing the fact that ________ of the average company's sales come from present customers.

A)a small amount
B)about one-half
C)a majority
D)an undetermined percentage

Question 34

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 35

Which of the following was not identified as one of the guerrilla marketing principles in your text?

A)Strive to be like everyone else so that your company "fits in."
B)Create an identity for your business.
C)Connect with customers on an emotional level.
D)Do not just sell entertain.

Question 36

A study by The Jay H.Baker Retailing Initiative at the University of Pennsylvania and the consulting firm Verde Group reports that for every 100 customers who have a negative experience with a business,the company stands to lose ________ to ________ current customers or potential customers.

A)10: 15
B)25: 28
C)32: 36
D)55: 60

Question 37

The worst 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)spend an excessive amount of money attracting new customers.
D)have a great product and an inaccessible location.

Question 38

Research shows that repeat customers spend ________ percent more than new customers.

A)5
B)52
C)67
D)97

Question 39

A key customer benefit of a product or service that sets it apart from the competition answers the critical questions every customer asks: "What's in it for me?" and is known as:

A)its brand identity.
B)the unique selling proposition (USP).
C)total quality management (TQM).
D)branding.

Question 40

The marketing approach that is most effective today for a small business is:

A)mass marketing.
B)market segmentation.
C)niche marketing.
D)individualized (one-to-one)marketing.

Question 41

Profits normally reach their peak in the ________ stage of the product life cycle,while sales normally reach their peak in the ________ stage of the product life cycle.

A)growth and acceptance; maturity
B)maturity and competition; market saturation
C)growth and acceptance; market saturation
D)introduction; growth

Question 42

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)None of the above

Question 43

The typical product's life cycle lasts ________ years,but the length of that cycle appears to be ________.

A)1 to 2; increasing
B)4 to 6; increasing
C)10 to 14; shrinking
D)15 to 20; shrinking

Question 44

The key ingredient in the superior customer service equation is:

A)state-of-the-art equipment.
B)standards and measurements of customer service.
C)the support of managers.
D)friendly,courteous,well-trained people delivering customer service.

Question 45

When applied as a marketing tool,the Internet allows entrepreneurs to provide existing and potential customers with meaningful information:

A)in a passive,one-directional manner.
B)for those with advanced high-tech skills.
C)in a complex and difficult-to-manage method.
D)in an interactive rather than passive setting.

Question 46

Time compression management (TCM)involves:

A)speeding new products to market.
B)reducing the administrative time required to fill an order.
C)shortening customer response time in manufacturing and delivery.
D)All of the above

Question 47

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 larger 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 48

Which of the following factors do American consumers rank as the top component of quality?

A)Low price
B)Reliability
C)Ease of use
D)Durability

Question 49

The five characteristics of a great product are:

A)deep,indulgent,complete,elegant and emotive.
B)deep,intelligent,complete,elegant and emotive.
C)deep,indulgent,competitive,elegant and emotive.
D)deep,indulgent,complete,elegant and evolutionary.

Question 50

What can a company do to achieve stellar customer service and satisfaction?

A)Listen to customers with the help of suggestion boxes,focus groups,surveys,and other tools.
B)Define what "superior service" means so that customers and employees know exactly what to expect and what to provide.
C)Hire friendly,courteous sales and service representatives.
D)All of the above

Question 51

Which of the following is not an element of the marketing mix?

A)Product
B)Place
C)Profit
D)Promotion

Question 52

Your ETDBW ("Easy To Do Business With")index is based on customer convenience factors,including which of the following?

A)Is your business located near your customers,and does it provide easy access?
B)Are your business hours suitable to your customers?
C)Are your employees trained to handle business transactions quickly,efficiently,and politely?
D)All of the above

Question 53

A recent Harris Poll reports that ________ percent of customers say that they will never return to a business after a negative customer service experience.

A)20
B)40
C)60
D)80

Question 54

Which of the following is not a suggestion for using time compression management (TCM)to turn speed into a competitive advantage?

A)Instill speed in the company's culture.
B)Use technology to find shortcuts wherever possible.
C)Pay workers more if they do their jobs the same way only faster.
D)Set aggressive goals for time reduction and stick to them.

Question 55

Most customers never complain to the business; in fact,for every complaint that a company receives,there are ________ other complaint that go unspoken.

A)2
B)7
C)10
D)17

Question 56

Which of the following is a way to improve customer service?

A)Encourage customers to complain.
B)Ask employees for feedback on improving customer service.
C)Develop a service theme that communicates the importance of customer service in the company.
D)All of the above

Question 57

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 58

To attract potential customers,a Web site should be:

A)easy to navigate.
B)interactive.
C)inviting,offering more than a "laundry list" of items for sale.
D)All of the above

Question 59

A study by McKinsey and Company found that high-tech products that come to market on budget but are six months late:

A)experience no significant profit difference over the next five years.
B)earn 3 percent less profit over the next five years.
C)earn 13 percent less profit over the next five years.
D)earn 33 percent less profit over the next five years.

Question 60

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)securing employees' commitment to the quality philosophy; it is not important to secure top management's full support,as the employees are the ones who work more closely with the products and the customers.
D)All of the above

Question 61

An effective marketing program depends on a clear,concise definition of the firm's target market.

Question 62

A business plan is a written statement of what an entrepreneur plans to accomplish in both quantitative and qualitative terms and how she plans to accomplish it.

Question 63

Too many business plans describe in great detail what an entrepreneur intends to accomplish and pay little,if any,attention to the strategies to achieve those targets.

Question 64

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

Question 65

Demographics is the study of important population characteristic such as age,income,education,race,and others.

Question 66

Small companies that spot demographic trends and act on them early can gain a distinctive edge in the market.

Question 67

The ________ stage of the product life cycle describes a point where sales rise and profits peak.

A)introductory
B)growth and acceptance
C)maturity and competition
D)market saturation

Question 68

The company's target customer should permeate the entire business,from the merchandise purchased,in the layout and decor of the store,and on their Web site.

Question 69

The goal of ________ is to inform and persuade consumers.

A)promotion
B)place
C)price
D)product

Question 70

The most common channel of distribution for consumer goods is:

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

Question 71

Watching the top ten TV shows,seeing the top ten movies,or listening to her children are all ways a small business owner could conduct market research.

Question 72

The specific group of customers at whom a company aims its goods and services is its target market.

Question 73

A marketing plan should identify a small company's target customers and describe how the business will attract and keep them.

Question 74

To be useful,market research must be structured,formal,and highly sophisticated.

Question 75

Most marketing experts contend that the greatest marketing mistake small businesses make is failing to clearly define their target market.

Question 76

The right price for a product or service depends on three main factors.Which of the following is not one of the main three factors?

A)Cost structure
B)What the market will bear
C)Desired image the company wants to create in its customer's minds
D)Competitors' prices

Question 77

A "shotgun approach" to marketing is the small business's secret to competing successfully with larger rivals and their bigger marketing budgets.

Question 78

Because they lack the size and financial resources of their larger competitors,small companies are powerless when it comes to developing effective marketing strategies.

Question 79

Market research is a valuable tool for defining the firm's target market,its needs,and its potential profitability.

Question 80

By using guerrilla marketing strategies unconventional,low-cost,creative techniques small companies can get as much "bang" for their marketing bucks as their larger rivals.