Deck 7: The Marketing Plan

Question 1

Small business marketing is best defined as the performance of distribution activities that affect the flow of goods and services from producer to consumer or user.

Answer 1

False

Question 2

Determining market potential is the process of locating and investigating buying units that have purchasing power and needs that can be satisfied with the product and/or service being offered.

Answer 2

True

Question 3

Researchers typically achieve higher response rates from mail and telephone surveys than from personal interviews.

Answer 3

False

Question 4

The marketing strategy section provides the most detailed information in a formal marketing plan.

Question 5

A detailed analysis of competitors is an important part of a business's formal marketing plan.

Question 6

Small business owners can now buy inexpensive personal computer software that can perform statistical calculations and generate report-quality graphics.

Question 7

Regardless of the type of business, the consumer-oriented marketing philosophy is the best choice among the competing alternatives.

Question 8

Marketing research is defined as the gathering, processing, reporting and interpreting of marketing information.

Question 9

A market is best defined as a geographical area that is of commercial interest to the entrepreneur.

Question 10

The most difficult forecasting situation is when an entrepreneur is inexperienced and has a new idea.​

Question 11

Because of the relatively inconsequential amount of sales conducted by a typical small business, the majority of entrepreneurs need not be concerned with formulating accurate sales forecasts.

Question 12

If an entrepreneur anticipates several target markets, each individual segment must have its own corresponding customer profile.

Question 13

Personal interview surveys are attractive as a marketing research method because these are inexpensive to conduct.

Question 14

Small businesses typically conduct less marketing research than big businesses, partly because they lack an understanding of the basic marketing research process.

Question 15

Because many small business owners have strong production skills, they often attend mostly to the marketing side of the business to compensate.

Question 16

Marketing research is an effective supplement, but not a replacement, for the intuitive judgment of entrepreneurs.

Question 17

It is best to write a marketing plan before collecting marketing research data.

Question 18

In order to achieve market success, a business should concentrate on either providing an excellent product and/or service or devising an insightful marketing strategy.

Question 19

When a strategist divides the total market for a product and/or service into groups with similar needs, so that each group is likely to respond to the same marketing strategy, he or she is engaging in a practice called market segmentation.

Question 20

Because of the considerable cost, time, and effort, pretesting is generally considered necessary only in the case of extensive, complex questionnaires.

Question 21

Joel recently opened a neighbourhood grocery.He chats briefly with each customer, carefully bags or boxes their purchases, and offers to load them into the customers' cars.Joel has learned that:

A)a business provides a bundle of satisfaction to its customers, not just the product they have bought.
B)customer relationships are more important than profits.
C)how his customers feel is just as important as their satisfaction with their purchases.
D)keeping customers is easier than finding new ones.

Question 22

A business's marketing philosophy determines how strategic marketing activities are used to achieve:

A)efficiency.
B)customer response.
C)desirable thought patterns.
D)business goals.

Question 23

Andrew is considering two models of cars.The size, price, and options are identical.However, one model gets better fuel mileage.This fact would be considered a(n):

A)core product.
B)actual product.
C)augmented product.
D)ancillary product.

Question 24

Every day, associates of Sewell Motors, a Johannesburg-based auto retailer, strive to exceed the company's expectations of treating the customer as its number one priority.Every action, policy and ultimate sale is conducted professionally, with consumers' needs in mind.Sewell Motors subscribes to the ____ marketing philosophy.

A)consumer-oriented
B)market-oriented
C)sales-oriented
D)product-oriented

Question 25

Traditionally, marketing philosophies have been categorised as:

A)consumer-oriented and market-oriented.
B)consumer-oriented, product-oriented, market-oriented and volume-oriented.
C)consumer-oriented, market-oriented, sales-oriented and process-oriented.
D)consumer-oriented, production-oriented and sales-oriented.

Question 26

Koldpak has focused principally on the development of revolutionary new ways of containerising fresh produce for grocery stores.The business's marketing philosophy is:

A)consumer-oriented.
B)market-oriented.
C)production-oriented.
D)sales-oriented.

Question 27

Creators Plus, a modest-size manufacturer of quality crafts, expends considerable resources to ensure that its products are created in the most efficient manner.According to the owner, distribution and promotion are secondary considerations to managing an expedient production process.Creators Plus subscribes to the ____ marketing philosophy.

A)process-oriented
B)market-oriented
C)sales-oriented
D)production-oriented

Question 28

The decision to produce flavoured spring water ice cubes in response to requests from its customers reflects Norway Ice Company's ____ marketing philosophy.

A)production-oriented
B)sales-oriented
C)consumer-oriented
D)response-oriented

Question 29

The forecasting process can be characterised by the point at which the process is started and the nature of the predicting variable.

Question 30

The ____ marketing philosophy is the preferred approach for all businesses.

A)product-oriented
B)market-oriented
C)sales-oriented
D)consumer-oriented

Question 31

A business's marketing mix consists of ____ activities.

A)pricing, promotion and distribution
B)product, pricing and promotion
C)product, promotion and distribution
D)product, pricing, promotion and distribution

Question 32

When prior sales information is available, indirect forecasting is the best method to predict future sales.

Question 33

Small business marketing involves a number of activities, including:

A)creating, developing, preparing, communicating and delivering a bundle of satisfaction to a target market.
B)planning for optimal production efficiency.
C)identifying alternative technologies.
D)establishing a sales-oriented marketing philosophy.

Question 34

A chain-ratio method of sales forecasting, or a build-up process, is frequently used for consumer products' forecasting.

Question 35

Because sales forecasts revolve around specific target markets, the market should be defined as precisely as possible.

Question 36

A build-up process requires a small business to identify all potential buyers in a target market's submarkets and then combine these estimates to determine the calculated demand.

Question 37

When Abigail buys salt, the core product and the actual product are:

A)seasoning for her food and the salt itself.
B)the salt itself and seasoning for her food.
C)not related.
D)the same.

Question 38

Adopting a consumer-oriented marketing philosophy is most consistent with:

A)quickly gaining highly profitable market returns.
B)eventually achieving long-term market success.
C)the revenue stabilising effect of large market shares.
D)focusing on the single most profitable consumer segment.

Question 39

Sales forecasts are typically expressed in dollars or units.

Question 40

The consumer-oriented approach to marketing:

A)is just one more business philosophy.
B)focuses on "pushing the product".
C)recognises first and foremost the need for attaining production efficiency goals.
D)is the recommended philosophy for all types of businesses.

Question 41

The most detailed and scrutinised section of a formal marketing plan is the:

A)competitor analysis.
B)marketing strategy.
C)market analysis.
D)consumer analysis.

Question 42

John, a car repair shop owner, is developing the warranty and repair policies for his business.What area of the marketing strategy is he addressing?

A)Promotional plan
B)Product and/or service plan
C)Distribution plan
D)Pricing plan

Question 43

The areas of marketing strategy that should be addressed within the marketing plan are:

A)promotional, pricing, distribution and product and/or service plans.
B)promotional and pricing plans.
C)promotional and distribution plans.
D)promotional, pricing and distribution plans.

Question 44

Spira Footwear, Inc., produces running and walking shoes with a patented technology.Therefore the company's profile should concentrate the most on:

A)the features the shoes offer the customer.
B)the uniqueness of the product.
C)the benefits to the customers.
D)All of the above are equally important.

Question 45

Wilson is so confident of the benefits of his product, he is sure people will line up to buy it if only they knew about it.Wilson will most likely subscribe to the _______________ marketing philosophy.

A)production-oriented
B)sales-oriented
C)consumer-oriented
D)promotion-oriented

Question 46

Mike is deciding how to get his product to his customers.His options include a fixed location, a mobile location, working out of his home and the Internet.Mike is making the ___________ decision.

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

Question 47

The description of potential customers in a target market is commonly called a:

A)customer profile.
B)demographic detailing.
C)Simpkins matrix.
D)target picture.

Question 48

At a minimum, the price of a product or service must cover:

A)the owner's expected return on investment.
B)the cost of bringing it to customers.
C)all costs of the business plus the profit margin.
D)production and distribution costs.

Question 49

Allison is gathering information about other producers in her industry for inclusion in the ______________ section of her marketing plan.

A)market analysis
B)marketing research
C)SWOT analysis
D)competition

Question 50

Bennett left his job as production manager and launched his own company because he was sure his methods of making the same type of product would be more profitable and efficient.Bennett is likely to employ the __________ marketing philosophy.

A)efficiency-oriented
B)sales-oriented
C)production-oriented
D)consumer-oriented

Question 51

Irene, owner of a small retail shop, is evaluating her customer profile.Which item is the most critical for her customer profile?

A)The financial ratios to see how much her product costs the customer.
B)Whether the marketing research was completed with primary or secondary information.
C)The customer benefits to verify they are consistent with the customer needs.
D)The customer demographics to determine new customers.

Question 52

The price of an item should be:

A)based solely on the break-even analysis.
B)less than what the competition is charging.
C)what purchasers are willing to pay.
D)total costs plus a margin of profit.

Question 53

Special consideration should be given to the selection of the ____________ and the logic of this selection should be explained in the marketing plan.

A)company logo
B)company name
C)company slogan
D)company philosophy

Question 54

The market analysis section of the marketing plan should include:

A)sales options.
B)a customer profile.
C)a statement of marketing tendencies.
D)a summary of market philosophies.

Question 55

Brenda is creating the marketing plan for her bakery.Many of the recipes she will use were handed down through her family and she would like to keep them secret.These recipes will be considered:

A)patent-protected.
B)copyrighted.
C)intellectual property.
D)family heirlooms.

Question 56

In her marketing plan, Carol is describing the laws of a foreign country and comments about the exchange rate.It is likely Carol is considering ______________ as a method of distribution.

A)importation
B)exportation
C)Internet marketing
D)air transport

Question 57

In preparing a sales forecast, it is desirable to have forecasts covering the "most likely", "best case" and "_____ case" scenarios.

A)rapidly shifting
B)pessimistic
C)predominant
D)worst

Question 58

In the analysis of a market, the customer profile should include a:

A)description of consumer weaknesses.
B)summary of production plans.
C)detailed discussion of major customer benefits provided by the product and/or service.
D)profile of major markets not targeted.

Question 59

The name of a new business should be:

A)simple, memorable and descriptive of the benefits.
B)simple, memorable and descriptive of the product.
C)the family name of the founder and descriptive of the product.
D)simple, memorable and include the name of the founder.

Question 60

XYZ Corporation faces little competition for its product and can barely keep up with demand.The marketing philosophy most likely in place at XYZ is the ____________ philosophy.

A)production-oriented
B)sales-oriented
C)consumer-oriented
D)efficiency-oriented

Question 61

___________ and ____________ are questioning methods that involve contact with respondents.

A)questionnaires, telemarketing
B)observations, surveys
C)mystery shopping, surveys
D)surveys, experimentation

Question 62

Oliver figured if people were willing to pay for bottled water, they would also be willing to pay for bottled air.Oliver has forgotten that customers will buy only if they have:

A)correlated needs.
B)inversely related needs.
C)unsatisfied needs.
D)unrecognised needs.

Question 63

The basic instrument used to guide the researcher and the respondent when surveys are taken is known as a:

A)questionnaire.
B)questioning form.
C)interview outline.
D)guide form.

Question 64

Nadia has completed her market research but now feels overwhelmed by the large amount of data.It might be helpful to her to:

A)use a program like Excel to help her interpret the data.
B)use a program like PowerPoint to create a slide show for her investors.
C)hire a consultant to summarise the data.
D)work with college students to sort the data.

Question 65

Which source of data would be the least helpful for secondary data use?

A)Libraries of higher education.
B)The Small Business Administration.
C)Blogs.
D)The Internet

Question 66

Mary, owner of Delany Salsas, is curious to know whether the new packaging for her line of salsas is being noticed by supermarket consumers.To collect information, she passively watches shopper reactions as they pass by the Delany Salsas display.Mary is collecting ____ data through ____ methods.

A)secondary/observational
B)primary/questioning
C)primary/observational
D)secondary/questioning

Question 67

The risk of being the lower-cost producer of a good or service is:

A)your business will fail more quickly.
B)your business will generate excess cash and will incur higher taxes.
C)your business will have problems keeping up with demand.
D)customers will abandon your business when someone else offers a lower price.

Question 68

The section of the marketing plan which describes the entrepreneur's approach to creating customer awareness of the product or service is the:

A)product and/or service section.
B)promotion section.
C)distribution section.
D)pricing section.

Question 69

The _____ method is probably the oldest form of research in existence.

A)questioning
B)secondary research
C)observational
D)interpretive

Question 70

A ____ is defined as a group of customers or potential customers who have purchasing power and unsatisfied needs.

A)consumer segment
B)target market
C)market
D)consumer market

Question 71

Nolan was just about ready to begin his market research when an unknown rival launched a similar product in the market.Nolan's best course of action would be:

A)to go ahead with the research to support future decisions.
B)to wait and see how well the rival's product sells.
C)to dispense with the research and launch his own product.
D)to scrap his original product idea and come up with something else.

Question 72

In order to be appropriately considered a market, a group of customers or potential customers must have:

A)purchasing power.
B)market power.
C)satisfied needs.
D)correlated needs.

Question 73

To determine credit card average purchases, managers of Component City Stereo and Appliances reviewed credit card sales receipts from the previous three months.Managers are conducting marketing research by collecting and analysing:

A)primary data.
B)observational data.
C)questioning data.
D)secondary data.

Question 74

Caution is advised when relying on blogs for secondary data because:

A)bloggers are very opinionated.
B)information in blogs may not be factually correct.
C)blogs may be outdated.
D)blogs may be censored.

Question 75

Techniques used to collect primary data are often classified as ____ and ____ methods.

A)internal/external
B)observational/questioning
C)exploratory/descriptive
D)focus/comprehensive

Question 76

Martha's job involves asking shoppers in the mall about their experience with specific products.She works from a list given to her by the products' producers.Martha is using the _________ method to gather ____________ data.

A)observational, secondary
B)questioning, primary
C)observational, primary
D)questioning, secondary

Question 77

Marketing research should be viewed as a supplement to, not a replacement for, _____.

A)the observational method.
B)questionnaires.
C)mail surveys.
D)intuitive judgement.

Question 78

Why would a small business conduct less marketing research than a larger, established business?

A)The entrepreneur can rely on intuition and observations.
B)Marketing research is expensive.
C)Marketing research is not necessary for the start-up business.
D)Data is not generally available for new business ideas.

Question 79

The initial step in the marketing research process is to:

A)select a data collection method.
B)identify consumer/business segments of interest.
C)identify informational needs.
D)conduct a preliminary information search.

Question 80

Eunice is writing the marketing plan for her bed and breakfast.She has written that her market includes everyone from infants to the elderly.This is incorrect because:

A)customers must have purchasing power.
B)the elderly are not likely to have unsatisfied needs.
C)infants cannot write.
D)infants do not make buying decisions.