Question 1

Entrepreneurs should base their market assessments, production schedules, inventory policies and personnel decisions on:

Accepted Answer

Entrepreneurs should base their market assessments, production schedules, inventory policies and personnel decisions on the sales forecast to ensure that their decisions align with the predicted demand for their product or service. A sales forecast is a quantitative analysis that takes into account past performance, industry trends, and other relevant factors to estimate future sales. This provides a more reliable basis for decision-making than intuition or qualitative analysis, although techniques of observation can also be valuable. Therefore, the sales forecast is the best choice for making informed, data-driven decisions in entrepreneurship.

Question 2

Paul is a CA (certified accountant).He offers a variety of services depending on the needs of his customers.Some hire him to perform bookkeeping activities; others have him prepare their tax return.Paul's market is segmented based on:

Accepted Answer

Paul's market is segmented based on the benefits his customers are looking to receive from his services, such as bookkeeping or tax preparation. This is an example of benefit segmentation. Demographic variables, income levels, and basic needs are not explicitly mentioned in this scenario as factors that determine Paul's market segmentation.

Question 3

In considering its marketing strategy a new venture will typically concentrate on:

Accepted Answer

As a new venture, it is often best to focus on a single-segment approach to better understand and serve the needs of a particular target market before expanding to multiple segments. This approach allows for more personalized and tailored marketing efforts, which can lead to higher customer satisfaction and brand loyalty. Mass marketing may be too broad and inefficient for a new venture, and a multi-segmented approach may be too overwhelming to manage. The Internet can be utilized as a marketing channel within the chosen single segment approach.

Question 4

Compare and contrast the three marketing philosophies discussed in the text.Give supporting evidence on why one method is stronger than the others.

Accepted Answer

The answer of Compare and contrast the three marketing philosophies...

Question 5

Richard is trying to figure out how many units of his product his new business could reasonably expect to sell in its first year.Richard is working on the:

Accepted Answer

Sales forecasting is the process of estimating future sales. Richard is specifically trying to estimate how many units his business could sell in the first year, which is a sales forecast. Therefore, the best choice is D.

Question 6

Ideas Unlimited is a consulting firm that provided retailers with information about regional sales trends.To estimate demand in the market for its services, the firm's marketing department identifies all buyers in each category of retailers and determines how much business is possible.The market demand estimate is based on the:

Accepted Answer

The build-up forecasting process involves identifying all potential buyers in each category and estimating the amount of business each buyer is likely to give. This process aligns with the approach used by Ideas Unlimited to estimate demand in the market for its services. The other options - aggregate forecasting process, breakdown forecasting process, and indirect forecasting process - are not relevant or appropriate in this scenario.

Question 7

Using the number of births in a historical record to predict the number of driver's licences issued in subsequent years is an example of the use of a(n) ____ variable in forecasting.

Accepted Answer

The use of the number of births as a proxy for the number of driver's licences issued assumes a correlation between the two variables. In this case, the number of births is used as a surrogate variable to predict the number of driver's licences issued in subsequent years.

Question 8

Sheena is using her last three years' sales to forecast next year's sales.Sheena is using the _________ method.

Accepted Answer

The answer of Sheena is using her last three years'...

Question 9

Meredith is opening a high end shoe store specialising in designer shoes.Which approach is probably the wisest strategy for the marketing efforts of this company?

Accepted Answer

A multi-segment strategy would allow Meredith to tailor her marketing efforts to different groups of people who may have varying needs for designer shoes. For example, some customers may be interested in shoes for special occasions while others may be more interested in comfortable every day wear. By targeting different segments, Meredith can create more targeted and effective marketing campaigns. A single-segment approach (choice C) would be too limiting and exclude potential customers who may not fit the stereotypical profile of a wealthy woman.

Question 10

After identifying the three levels of a product and/or service's benefit, provide an example for the SA Postal Service.

Accepted Answer

The answer of After identifying the three levels of a...

Question 11

Martin sells salt; Don sells sugar.The best strategy for either of these products would be:

Accepted Answer

Salt and sugar are basic commodities with little differentiation, making an un-segmented strategy, which targets the entire market with a single offer, the most efficient approach.

Question 12

Theo has identified all the buyers in a market's submarkets and then totalled the estimated demand for all the submarkets.Theodore used the:

Accepted Answer

Theodore used the build-up process where he first identified the buyers in submarkets and then added up their estimated demand to get the total market demand.

Question 13

People of all backgrounds, occupations, and income levels wear watches but Rolex focuses only on the high-income portion of the market.Rolex uses a(n) ____________ strategy.

Accepted Answer

Rolex focuses only on the high-income portion of the market, which indicates a single-segment strategy. Rolex targets a specific group of customers who have the purchasing power to afford their high-end products rather than trying to reach a broader market.

Question 14

Forecasting sales for a new venture will be the most difficult when:

Accepted Answer

The answer of Forecasting sales for a new venture will...

Question 15

What determines whether the sales forecasting process is direct or indirect?

Accepted Answer

The nature of the predicting variable determines whether the sales forecasting process is direct or indirect. Direct forecasting uses actual sales data to project future sales, while indirect forecasting uses non-sales data to predict future sales, such as economic indicators or consumer behavior trends. The other options - industry orientation, entrepreneur goal, and marketing philosophy - may play a role in determining the forecasting approach, but they are not the determining factor.

Question 16

Saul just bought a new open-truck for his furniture transport company as he can transport larger items of furniture with an open-truck.He contacted the National Weather Service to get information about rain to help prepare his sales forecast.Saul is using:

Accepted Answer

The answer of Saul just bought a new open-truck for...

Question 17

A ____ estimates how much of a product and/or service will be purchased within a market over a defined period of time.

Accepted Answer

A sales forecast estimates the amount of product and/or service that will be purchased within a market over a defined period of time. A market forecast estimates the overall size of the market, while a market analysis examines trends, competitors, and other factors within the market. Sales analysis involves reviewing past sales data to identify patterns and trends, but does not make predictions about future sales.

Question 18

Rhoda describes her typical customer as female between the ages of 22 and 35 with at least two years of college and a household income above R50 000 annually.Rhoda is using _________ to describe her customers.

Accepted Answer

Rhoda is using demographic variables, which include age, education, and income, to describe her typical customer.

Question 19

Sheila has begun the sales forecasting procedure with a variable that has a very large scope and then systematically is working down to the sales forecast.Sheila is using the:

Accepted Answer

Sheila is using the breakdown process, which starts with a broad scope and narrows down to specific forecasts.

Question 20

Because he lacks strong forecasting skills, Stanley should:

Accepted Answer

Becoming a member of his trade association can provide him with access to industry experts and resources that can help with forecasting. Subscribing to trade journals can keep him up-to-date with industry trends and information. Reading magazines focused on small businesses can offer insights and best practices that can aid in decision-making. All of these options combined can strengthen his forecasting skills.

Quiz 7: The Marketing Plan