Deck 7: The Marketing Plan

Question 1

An entrepreneur with a strong background in sales but weak in marketing will most likely focus on marketing to compensate for his or her lack of knowledge in the area.

Answer 1

False

Question 2

Marketing research should be viewed as a supplement to, not a replacement for, good judgment and cautious experimentation in launching new products and services.

Answer 2

True

Question 3

A consumer-oriented philosophy is used more often by firms than a production-oriented philosophy or a sales-oriented philosophy.

Answer 3

False

Question 4

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

Question 5

A small business typically conducts less marketing research than a big business, partly because the entrepreneur does not understand the basic research process.

Question 6

If a business owner envisions several target markets, each segment must have a corresponding customer profile.

Question 7

The information on marketing strategy forms the most detailed section of a marketing plan.

Question 8

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

Question 9

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

Question 10

Inexpensive personal computer software is now available to perform statistical calculations and generate report-quality graphics.

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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 16

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

Question 17

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.

Question 18

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

Question 19

Consumer orientation is put into practice by applying a two-stage process that underlies all marketing efforts: identifying customer needs and satisfying those needs.

Question 20

A brief discussion of competitor's overall strengths and weaknesses should be part of a firm's marketing plan.

Question 21

Traditionally, marketing philosophies have been categorized 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 22

Both short-term and long-term sales forecasts are needed for a well-constructed marketing plan.

Question 23

The term market means different things to different people.

Question 24

Sales forecasts are typically expressed in dollars or units.

Question 25

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 26

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

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

Question 27

The consumer-oriented marketing philosophy

A) utilizes a "build-a-better mousetrap" approach.
B) focuses on "pushing the product."
C) recognizes first and foremost the need for attaining production efficiency goals.
D) believes that everything, including production and sales, centers on the consumer and his or her needs.

Question 28

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

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

Question 29

Due to the high costs, new ventures seldom use established intermediaries to handle the distribution of their product.

Question 30

Abigail purchased a container of salt. Which of the following statements is true?

A) The core product is seasoning for her food and the actual product is the salt itself.
B) The core product is the salt itself and the augmented product is seasoning for her food.
C) The actual product is seasoning for her food and the core product is the salt itself.
D) The augmented product is the salt itself and the core product is seasoning for her food.

Question 31

Marketing consists of those business activities that direct the

A) creation, development, preparation, communication, and delivery of a bundle of satisfaction from the creator to the target market.
B) plan for optimal production efficiency.
C) identification of alternative technologies.
D) establishment of a sales-oriented marketing philosophy.

Question 32

Adopting a consumer-oriented marketing philosophy is most consistent with

A) quickly gaining highly profitable market returns.
B) achieving long-term success in many areas, not just marketing.
C) the revenue stabilizing effect of large market shares.
D) focusing on the single most profitable consumer segment.

Question 33

Every day, associates of Sewell Motors, a Dallas-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) production-oriented

Question 34

The decision to produce flavored 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 35

A firm'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 36

Forecasting is used less frequently by small firms than by large firms.

Question 37

In the case of a pair of shoes, the core product is

A) basic protection for the feet.
B) the shoes themselves.
C) greater comfort.
D) increased running speed.

Question 38

A firm's marketing philosophy determines how its marketing activities are developed in the marketing plan and used to achieve

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

Question 39

Observation is probably the oldest form of research in existence.

Question 40

The _____ marketing philosophy is the most consistent with long-term success for a small business.

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

Question 41

The most detailed and closest scrutinized section of a formal marketing plan is the

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

Question 42

In her marketing plan, Candace is describing the laws of a foreign country and providing information about the exchange rate between currencies. It is likely Candace is considering _____ as a method of distribution.

A) importing
B) exporting
C) Internet marketing
D) air transport

Question 43

It is strongly recommended that all new businesses begin with a(n) _____ orientation.

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

Question 44

The price of an item should be

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

Question 45

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 46

The name of a new business should

A) be simple, memorable, and descriptive of the benefit provided by the product or service.
B) be simple, memorable, and descriptive of the product or service.
C) include the family name of the founder and be descriptive of the product or service.
D) be simple and memorable, and include the name of the founder.

Question 47

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 48

The logic behind selecting the company _____ should be explained in the product/service section of a marketing plan.

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

Question 49

A SWOT analysis should tell an entrepreneur

A) what actions he or she might take to avoid a threat.
B) where the business stands relative to the competition.
C) how competitors are likely to react when a new marketing tactic is tried.
D) All of these are correct.

Question 50

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 51

All of the following are major components of the marketing plan EXCEPT

A) market segmentation.
B) the competition.
C) marketing strategy.
D) market analysis.

Question 52

Irene, owner of a small retail shop, is evaluating her customer profile. Which of the following items 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 data
C) The customer benefits to verify they are reasonable
D) The customer demographics to determine new customers

Question 53

Which of the following is NOT part of the market analysis component of a marketing plan?

A) A customer profile
B) A SWOT analysis
C) An actual sales forecast
D) A detailed discussion of the major benefits to customers provided by the product and/or service

Question 54

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

A) Promotion section
B) Product and/or service section
C) Distribution section
D) Pricing section

Question 55

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

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

Question 56

Miguel 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. Miguel is preparing the _____ section of his marketing plan.

A) product/service
B) distribution
C) price
D) promotion

Question 57

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 58

A _____ philosophy focuses on "pushing the product."

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

Question 59

Allison is gathering information about competitors in her industry for inclusion in the _____ section of her marketing plan.

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

Question 60

The product/service section of the marketing plan should include all of the following EXCEPT

A) the name of the business and why it was selected.
B) any legal protections obtained for the name of the product or service.
C) the entrepreneur's approach to creating customer awareness of the product or service.
D) the name of the product or service and why it was selected.

Question 61

The first step in the marketing research process is to

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

Question 62

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 63

Marta'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. Marta is using the _____ method to gather _____ data.

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

Question 64

Which of the following is NOT a drawback of using secondary data?

A) The units of measure may not fit the current problem.
B) It can be much more expensive than gathering primary data.
C) Information may be outdated.
D) The sources may suffer from a lack of credibility.

Question 65

The risk of being the lower-cost producer of a product 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 the competition offers a lower price.

Question 66

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

A) Libraries of higher education institutions
B) The Small Business Administration
C) Blogs
D) Software programs

Question 67

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 analyzing _____ data.

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

Question 68

A simple but effective form of observational research is

A) focus groups.
B) questionnaires.
C) mystery shopping.
D) statistical analysis.

Question 69

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 70

Odessa 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 in a market 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.

Question 71

Which of the following statements about conducting marketing research is true?

A) It is recommended that a small business conduct marketing research without the assistance of an expert, as the cost of hiring such help is often not worth it.
B) An entrepreneur should be open to using all research techniques, including ones he or she is not familiar with.
C) Before committing to research, an entrepreneur should always estimate the projected cost of marketing research and compare it with the benefits expected.
D) All of these are correct.

Question 72

_____ and _____ are questioning methods that involve contact with respondents.

A) Questionnaires; telemarketing
B) Observations; surveys
C) Mystery shopping; surveys
D) Surveys; focus groups

Question 73

To prepare the market analysis section of a marketing plan, an entrepreneur needs a proper understanding of the term

A) strategy.
B) product.
C) consumer.
D) market.

Question 74

When designing and testing a questionnaire, an entrepreneur should

A) pretest a questionnaire by administering it to a small sample of respondents who are representative of the group to be surveyed.
B) ask the more sensitive questions near the beginning of the questionnaire.
C) ask questions that relate both directly and indirectly to the issue under consideration.
D) ask more multiple-choice questions than open ended-questions, as respondents are more likely to answer multiple-choice questions.

Question 75

Techniques used in accumulating primary data are often classified as _____ and _____ methods.

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

Question 76

A(n) _____ is the basic instrument used to guide the researcher who administers a survey and the respondent who takes it.

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

Question 77

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 78

The _____ section of the marketing plan describes the entrepreneur's approach to creating customer awareness of the product or service and explains why customers will be motivated to buy

A) product/service
B) promotion
C) distribution
D) pricing

Question 79

Which of the following is a disadvantage of mail surveys?

A) They are very expensive to conduct.
B) They usually yield low response rates.
C) They are inefficient when target respondents are widely dispersed.
D) They often suffer from poor design.

Question 80

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

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