Question 1

Match the term with its definition.
-The parameters used to distinguish one form of market behavior from another

Accepted Answer

A) actual product/service 
B) augmented product/service 
C) core product/service 
D) customer profile 
E) demographic variables
F)marketing
G)primary data
H)sales forecast
I)secondary data
J)segmentation variables 
A) actual product/service 
B) augmented product/service 
C) core product/service 
D) customer profile 
E) demographic variables
F)marketing
G)primary data
H)sales forecast
I)secondary data
J)segmentation variables

Question 2

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

Accepted Answer

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. 
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 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

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. 
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.

Question 5

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

Accepted Answer

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

Question 6

The name of a new business should

Accepted Answer

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. 
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 7

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

Accepted Answer

A) True 
 B)False

Question 8

Match the term with its definition.
-The division of a market into several smaller groups, each with similar needs

Accepted Answer

A) benefit variables 
B) customer acquisition costs 
C) market 
D) market analysis 
E) market segmentation
F)marketing mix
G)marketing research
H)multisegment strategy
I)single-segment strategy
J)unsegmented strategy (mass marketing) 
A) benefit variables 
B) customer acquisition costs 
C) market 
D) market analysis 
E) market segmentation
F)marketing mix
G)marketing research
H)multisegment strategy
I)single-segment strategy
J)unsegmented strategy (mass marketing)

Question 9

What are the problems with secondary data use? How can a new entrepreneur neutralize these problems?

Accepted Answer

The use of secondary data has several dr

Question 10

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

Accepted Answer

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

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The term market means different things to different people.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

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

Question 16

Which of the following is a disadvantage of mail surveys?

Accepted Answer

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. 
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 17

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

A)  production schedule. 
B)  marketing research. 
C)  inventory policy. 
D)  sales forecast. 
A)  production schedule. 
B)  marketing research. 
C)  inventory policy. 
D)  sales forecast.

Question 18

If a small business will be using the services of an advertising agency, all of the following should be mentioned in the promotion section of the marketing plan EXCEPT

Accepted Answer

A)  the name of the agency. 
B)  the credentials of the agency. 
C)  how the agency's employees are compensated. 
D)  a brief mention of successful campaigns supervised by the agency. 
A)  the name of the agency. 
B)  the credentials of the agency. 
C)  how the agency's employees are compensated. 
D)  a brief mention of successful campaigns supervised by the agency.

Question 19

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

Accepted Answer

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

Question 20

The price of an item should be

Accepted Answer

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. 
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.

Exam 7: The Marketing Plan

Match the term with its definition. -The parameters used to distinguish one form of market behavior from another

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

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

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

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

The name of a new business should

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

Match the term with its definition. -The division of a market into several smaller groups, each with similar needs

What are the problems with secondary data use? How can a new entrepreneur neutralize these problems?

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

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.

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

The term market means different things to different people.

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

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.

Which of the following is a disadvantage of mail surveys?

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

If a small business will be using the services of an advertising agency, all of the following should be mentioned in the promotion section of the marketing plan EXCEPT

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

The price of an item should be

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