Deck 8: Building a Powerful Marketing Plan

Question 1

One of the greatest marketing mistakes 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

________ 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

Answer 2

A

Question 3

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

Answer 3

D

Question 4

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 5

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 6

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 7

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 8

Entrepreneurs can find the right match based on trends, their products or services, and the appropriate target markets through:

A) expecting "more of the same" for the future.
B) looking back and not forward.
C) following their intuition.
D) market research.

Question 9

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 10

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 11

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.

Question 12

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 13

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 14

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 15

The specific group of customers at whom a company aims its good or services is referred to as a:

A) market segmentation.
B) guerrilla marketing.
C) niche marketing.
D) target market.

Question 16

Guerilla marketing is a marketing approach that takes an unconventional, low-cost and creative approach to marketing that can give ________ a competitive edge over ________ competitors.

A) small companies; larger
B) larger companies; smaller
C) small companies; entrepreneurial
D) entrepreneurs; small

Question 17

A common mistake 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 18

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 19

The foundation of every business is:

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

Question 20

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 21

How can a company achieve stellar customer service and satisfaction?

A) Listen to customers and define superior service.
B) Set standards and measure performance.
C) Hire the right employees and treat them with respect.
D) All the above

Question 22

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 23

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.

Question 24

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 25

Some of the most successful companies interact with their customers regularly, intentionally, and purposefully to create meaningful and lasting:

A) relationships.
B) sales.
C) obligations.
D) memories.

Question 26

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 27

The unique selling proposition (USP) focuses on:

A) a feature that is unlike others found in competing products that answers the question: What is different?
B) a unique customer benefit that answers the question: What's it in for me?
C) a premier priced product that answers the question: What product offers the highest quality?
D) emulating the most successful products in the industry.

Question 28

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

A) by building a community with customers and connecting with them on an emotional level.
B) their ability to conduct market research.
C) their lower costs.
D) their ability to serve many highly diverse target markets.

Question 29

________ 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 30

Which of the following guerrilla marketing tactic(s) allow a small company to utilize relationship marketing successfully?

A) Keep in close contact with customers with "thank yous" and other personal communication techniques.
B) Organize and sponsor a service- or community-oriented project.
C) Launch a loyalty or frequent buyer program .
D) All of the above

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 combination of news covered by the media that boosts sales without having to pay is best described by the term:

A) guerilla marketing
B) entertailing
C) public relations.
D) data mining

Question 33

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

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

Question 34

An effective approach to creating effective online videos is to take an ________ approach to present information in an entertaining way.

A) "entertainment"
B) "edutainment"
C) "entertailing"
D) "entrepreneurial"

Question 35

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 36

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 37

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 38

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 39

________ 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) Blogging

Question 40

Examples of ________ include a presence on Facebook, LinkedIn and Twitter.

A) Web sites
B) blogging
C) social media marketing
D) online advertising

Question 41

Location, delivery services, effective use of easy-to-use technology and multiple communication options are examples of:

A) convenience.
B) customer service.
C) blogging.
D) social media marketing.

Question 42

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 43

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

A) Seeing the customer's point of view.
B) Get total commitment to superior customer service from everyone in the organization.
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 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

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 46

A marketing strategy that relies on three principles to speed products to market, shorten customer response times in manufacturing, and deliver and reduce the administrative time required to fill an order is:

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

Question 47

A recent survey reports that ________ percent of customers say that they will return to a business after a negative customer service experience if the company offers an apology, a discount, or proof that its customer service will improve.

A) 32
B) 52
C) 72
D) 92

Question 48

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 49

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 50

A study by the National Science Foundation concluded that when pay is linked to performance, employees' motivation and productivity climb by as much as ________ percent.

A) 36
B) 56
C) 63
D) 75

Question 51

A global customer loyalty consulting firm reports that a company must land ________ to ________ new customers to offset the impact of one lost loyal customer.

A) 2; 12
B) 6: 18
C) 12: 20
D) 20; 30

Question 52

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 53

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

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

Question 54

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 55

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

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

Question 56

________ is the key to future success and small companies can detect and act on new opportunities faster than large companies.

A) Innovation
B) Speed
C) Convenience
D) Technology

Question 57

________ pay the bills: without them, you have no business.

A) Accountants
B) Employers
C) Employees
D) Customers

Question 58

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 59

The philosophy of producing a high-quality product or service and achieving quality in every aspect of the business and its relationship with the customer, with a focus on continuous improvement in the quality delivered to customers is.

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

Question 60

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 61

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

Question 62

In addition to treating employees with respect, smart entrepreneurs see customer service as an investment that builds long-term value for their companies through:

A) listening to customers and providing superior service.
B) setting standards and measuring performance.
C) examining the company's service cycle and empowering employees.
D) All the above build long-term customer service value.

Question 63

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

Question 64

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

Question 65

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

Question 66

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 67

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

Question 68

A critical marketing step is to clearly define their target market.

Question 69

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

Question 70

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 71

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.

Question 72

Secondary research data is less time consuming and less costly to gather than primary research data.

Question 73

The Internet offers entrepreneurs tools 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 74

Primary research data is less time consuming and less costly to gather than secondary research data.

Question 75

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 76

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

Question 77

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

Question 78

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

Question 79

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

Question 80

To attract potential customers, a ________ can serve multiple business purposes, including keeping customers updated on new products, enhancing customer service, and promoting the company.

A) newspaper advertisement.
B) brochure.
C) blog
D) radio promotion