Deck 8: Building a Powerful Bootstrap Marketing Plan

Question 1

________ 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 1

A

Question 2

Bootstrap 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

Answer 2

A

Question 3

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

Answer 3

True

Question 4

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 5

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 6

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

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) Bootstrap marketing

Question 8

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

Question 9

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 10

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

Question 11

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

Question 12

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 she/he wants to accomplish
D) contains both a marketing plan and a financial plan

Question 13

Which of the following is not one of the objectives a bootstrap 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 14

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 15

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

Question 16

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) bootstrap marketing strategies
D) psychographics

Question 17

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 18

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 19

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

Question 20

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

A) market segmentation
B) bootstrap marketing
C) niche marketing
D) target market

Question 21

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 22

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

Question 23

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 24

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

Question 25

Why is it important for small business owners to clearly define their target market(s) as part of their marketing strategies?

Question 26

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

Question 27

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 28

Your friend has decided to conduct market research to assist in making informed decisions for her/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 29

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 30

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 31

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

Question 32

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 33

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 34

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 35

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 36

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 37

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

Question 38

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

Question 39

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 known as ________.

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

Question 40

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

Question 41

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 42

Your friend Maria is experiencing declining sales in the business she has owned and successfully operated for three years. She has asked for your guidance in determining the course(s) of action she should take. Your recommendation to her is to undertake a marketing research project. Briefly outline the steps involved in market research. She is concerned that market research will be too expensive and sophisticated for a small business such as hers. Is this true? Explain.

Question 43

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 44

________ 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 45

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 46

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

A) Keep in close contact with customers with "thank you's" 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 47

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

A) 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 48

Why is it important for small business owners to track demographic trends? How can small companies become effective trend trackers?

Question 49

The best way to find out what customers really want and value is to ask them.

Question 50

Small entrepreneurial companies are at a definite disadvantage compared to larger ones when it comes to conducting market research since it is so expensive.

Question 51

________ 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 52

Market research requires a business owner to define the objective, collect data, analyze and interpret that data, and draw conclusions and act.

Question 53

Which of the following was not identified as one of the bootstrap 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 54

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 55

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 56

One of the most effective bootstrap marketing tactics is to create an image of ________ for the business.

A) uniqueness
B) similarity
C) seriousness
D) all of the above

Question 57

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

A) bootstrap marketing
B) entertailing
C) public relations
D) data mining

Question 58

Mini-Case 8-1: Customers: Key to Success
Lloyd Dixon has owned and operated a small dress shop for the past three years. Each fashion season, Lloyd attends the apparel shows and he is always very impressed by the glamour and the hundreds of different manufacturers, all with the merchandise that they say will be this season's biggest sellers. Lloyd caters to an older market and baby boomers. He hopes to tap into the upscale market.
After his first year of operation, Lloyd recognized that some of his merchandise was not selling. The "inventory close-out sale" did rescue his investment in this merchandise but did not make him a profit or contribute much to his overhead. Lloyd knew that it was not reasonable to expect to sell everything you bought, but he was not sure exactly how much of his inventory was comprised of slow movers. Lloyd believed that when he went into business he knew what women wanted in dresses. He had always prided himself on having good taste. When he had the opportunity to open this store, he was confident that he could choose merchandise that would be well received. In the first three years of operations, sales have not met Lloyd's expectations.
Faith Popcorn offers several ways Lloyd Dixon could collect information about his customers and competitors. Explain at least five of those ways.

Question 59

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

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

Question 60

Unlike television ads, uploading a video to YouTube costs ________.

A) a lot
B) nothing
C) less
D) plenty

Question 61

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 62

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) bootstrap marketing
D) customer experience management, or CEM

Question 63

Superior service companies devote ________ percent of their employees' work hours to training, concentrating on how to meet, greet, and serve customers.

A) 2-7
B) 3-8
C) 1-5
D) 7-10

Question 64

________ 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 65

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 66

The best companies seek to go beyond customer satisfaction, striving for customer ________.

A) automation
B) aggrandizement
C) apprehension
D) astonishment

Question 67

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 68

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 69

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 70

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 71

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 72

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 73

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 74

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 75

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) bootstrap marketing

Question 76

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 77

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 78

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

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

Question 79

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 80

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

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