Question 1

The most common marketing strategy of the 1960s was

Accepted Answer

The most common marketing strategy of the 1960s was mass marketing, which involved creating products that appealed to a large audience and then promoting those products through mass media channels such as TV, radio, and newspapers. This approach was favored by many companies at the time because it allowed them to reach a wide audience with a single message, making it easier and more cost-effective to promote their products.

Question 2

Small businesses are interested primarily in which of the following?

Accepted Answer

Small businesses are primarily interested in why people purchase products because this helps them understand their customers' behavior and make informed decisions about marketing, pricing, and product development. Knowing why people desire or want products may also be helpful, but ultimately it is understanding the buying decision that is most important for small businesses. The reason for comparison shopping is also important, but it is not the most relevant factor for small businesses to consider.

Question 3

Samantha, an intern at an advertising agency, is asked to review how local markets compare based on geographic, demographic, and psychographic differences. Samantha learns that these are most commonly referred to as

Accepted Answer

Geographic, demographic, and psychographic differences are commonly referred to as segmentation variables. This means they are used as a basis for segmenting or dividing a larger market into smaller groups with unique needs and characteristics. The other options, population segments and market segments, are related but do not specifically refer to the variables used for segmentation. Diversity statistics are a measure of the variety within a population and do not necessarily relate to market segmentation.

Question 4

The Black Box stimulus-response model of consumer behavior is based upon the work of

Accepted Answer

The Black Box model of consumer behavior is based on the work of Kurt Lewin, a psychologist who proposed that consumer behavior is the result of an interaction between the consumer's internal characteristics and external stimuli. The Black Box represents the consumer's mind or decision-making process, which is not directly observable, but can be inferred from observable stimuli and responses.

Question 5

Babies 'n Things is an independently-owned retail store that aims to compete with the local supercenter by targeting exclusively to young mothers in the upper-middle class. Babies 'n Things is using which marketing strategy?

Accepted Answer

Babies 'n Things is using niche marketing by targeting exclusively to young mothers in the upper-middle class, which is a specific segment of the market.

Question 6

A sales forecast that uses extensive historical sales data looking for a relationship between a dependent variable (past sales) and different independent variables is using what approach?

Accepted Answer

Regression analysis looks for a relationship between a dependent variable and multiple independent variables, making it suitable for forecasting with extensive historical sales data. The other options (build-up, break-down, and time series) do not involve analyzing multiple independent variables to forecast sales.

Question 7

Which of the following is NOT a segmentation variable difference?

Accepted Answer

Needing the product is not a segmentation variable difference as all customers who purchase the product would have some level of need for it, otherwise they wouldn't be interested in buying it. Segmentation variables are characteristics that differ among groups of customers and help marketers create different target market segments. Factors such as location, demographic characteristics, psychographic traits, and desired benefits are commonly used as segmentation variables.

Question 8

The average American household spends approximately __________ hours per week watching television.

Accepted Answer

The answer of The average American household spends approximately __________...

Question 9

Business markets that will succeed must have all but which of the following?

Accepted Answer

One-quarter of the population wanting the business is not a necessary condition for the success of a business market. It is more important for a business market to have a need that the product can satisfy, sufficient potential customers to generate profit, and customers with the willingness and ability to spend money.

Question 10

Market segmentation is the process of dividing the total market for a product into __________.

Accepted Answer

Market segmentation is the process of dividing the total market for a product into target markets. A target market is a specific group of consumers with distinct needs, characteristics, and preferences that a company identifies and chooses as the focus of its marketing efforts. By segmenting the market and focusing on a specific target market, companies can tailor their marketing strategies and messaging to better resonate with their intended audience and increase the effectiveness of their marketing efforts.

Question 11

Breaking down populations of people into groups or target markets is referred to as

Accepted Answer

Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar wants, needs or characteristics. This allows companies to tailor their marketing strategies and products to the specific needs of each segment, resulting in more effective marketing and higher profits. Consumer recognition refers to a company's ability to identify and acknowledge individual customers, not necessarily breaking them into segments. Market diversity refers to the variety of markets a company operates in, not the process of segmenting a single market. Regression analysis is a statistical tool used to model the relationship between variables and is not related to market segmentation.

Question 12

A forecasting method that uses historical sales data to identify patterns over a period of time is referred to as

Accepted Answer

The method described in the question is time series analysis, which involves analyzing historical sales data to identify recurring patterns or trends over a period of time. The other options, build-up method analysis, regression analysis, and qualitative analysis, involve different techniques for forecasting and do not specifically rely on historical sales data in the same way that time series analysis does.

Question 13

Segmenting populations of people into smaller target markets is known as

Accepted Answer

Segmenting populations into smaller target markets is known as niche marketing. Niche marketing involves targeting a specific, well-defined market segment with a unique product or service offering. It allows businesses to tailor their marketing efforts to the specific needs and preferences of a particular group of consumers, which can lead to more effective and efficient marketing campaigns.

Question 14

In the Entrepreneurial Snapshot, who is the primary, niche target market for Jones Soda?

Accepted Answer

Jones Soda targets teens and twenty-somethings as their primary, niche target market. This is evident in their unique flavors, edgy branding, and marketing strategies that appeal to this demographic.

Question 15

A sales forecast based on estimation of daily sales that are then projected for weeks, months, and years with seasonal adjustments is using what approach?

Accepted Answer

The build-up approach involves estimating daily sales and then projecting them for longer periods of time, while also accounting for seasonal fluctuations.

Question 16

Adjusting the marketing mix of a business to treat individual persons as separate target markets is known as

Accepted Answer

Individualized marketing refers to tailoring the marketing mix to treat each person as a separate target market, based on their individual preferences, needs, and behavior. It involves the use of data and technology to gather information about each customer, and then tailoring products, services, promotions, and communications to meet their specific needs. This approach is different from mass marketing, which treats everyone as a single market, and niche marketing, which focuses on a specific subgroup of customers who share similar needs or characteristics. Personalized marketing is similar to individualized marketing, but it typically involves a higher degree of customization and personalization, such as using the customer's name in communications or offering customized products based on their preferences.

Question 17

A sales forecast based on an estimate of total market potential for a specific market and projecting the market share a business can capture in any given area at any given time is using what approach?

Accepted Answer

The answer of A sales forecast based on an estimate...

Question 18

William, owner of a small hardware store, likes to forecast sales to better prepare for seasonal fluctuations. He identifies as many target markets as possible and predicts the sales for each based on one-day sales at different times of the year. He then combines the predictions for the various segments to create a total sales forecast. Which sales forecasting method is William using?

Accepted Answer

William is using the build-up method, which involves breaking down the total forecast into smaller forecasts for different segments, such as target markets, and then combining those forecasts to create a total forecast. This is a quantitative method of sales forecasting.

Question 19

In the Competitive Advantage: Innovation and Sustainability titled "Sometimes the Best Marketing strategy is a Good Defense," the point is made that not all customers are created equal. Customers are classified by their _____ and _____.

Accepted Answer

The article discusses how customers can be classified by their value (as high or low) and their vulnerability (as strong or weak). This categorization helps companies determine which customers are most important to defend and retain, and which ones may be worth sacrificing in order to focus resources on other areas.

Question 20

Information on consumer behavior comes from all but which of the following fields?

Accepted Answer

Geology is not a field that typically provides information on consumer behavior, as it primarily focuses on the study of the Earth's structure, materials, and processes. Psychology, sociology, and biology all provide valuable insights into how consumers make decisions and interact with products and services.

Quiz 11: Small Business Marketing: Strategy and Research