BUSMHR 2500 Chapter 8

Raj, an entrepreneur, prepares a marketing plan for his new venture. As part of preparing the plan, Raj seeks to identify candidate communities that would match the user profile. In this situation, which of the following tools should be used by Raj as a logical starting place that reveals demographic data on income, ages of children, and employment? Multiple choice question.

Town census research

The process of dividing the market into small homogeneous groups is known as _____. Multiple choice question. market capitalization dissolving market segmentation demarketing

market segmentation

A description of past and present business achievements of a new venture is called a(n) ________ ________. It is part of preparing a marketing plan for a new venture.

situational analysis

True or false: All marketing goals and objectives of a new venture must be quantified.

Reason: This is false. Not all goals and objectives of a new venture must be quantified. It is possible for a firm to establish such goals or objectives as research customer attitudes toward a product, set up a sales training program, improve packaging, change name of product, or find new distributor.

Which of the following are conducted as part of marketing research for a new venture? (Check all that apply.) Multiple select question. Determining who are the prospective buyers for the product Evaluating the skills of prospective employees Estimating the size of the potential market Sharing ideas related to sales promotion with competitors

Determining who are the prospective buyers for the product Estimating the size of the potential market

Which of the following is a factor of the marketing mix that provides utility to the customer? Multiple choice question. Pricing Manufacturing Promotion Distribution

Distribution

Which of the following is true about the definition of a product in a marketing plan? Multiple choice question. The definition of a product is more than its physical components. The definition of a product changes at each stage of the development. The definition of a product is based on the definition of products used by competitors. The definition of a product is independent of the marketing strategy of the venture.

The definition of a product is more than its physical components.

A difference between a business-to-business market and a consumer market is that advertising and promotion for the business-to-business market _____. Multiple choice question. include trade magazine advertising to a smaller extent lack the need to relate product knowledge to business buyers include more direct sales and trade shows involve a more indirect channel of product distribution

include more direct sales and trade shows

A true statement about a focus group, which is used to gather primary data as part of the marketing research for a new venture, is that it _____.

is a group of 10 to 12 potential customers who are invited to engage in a discussion relating to an entrepreneur's research objectives

Statements of level of performance desired by a new venture are known as _____. Multiple choice question. market capitalization rates marketing goals and objectives market segments marketing mix

marketing goals and objectives

Isabella, an entrepreneur, prepares a marketing plan for her new venture that manufactures consumer goods. To make her venture's marketing plan effective, she should ensure that the plan _____. Multiple choice question. primarily aims at obtaining a manufacturing license for the venture primarily aims at training prospective employees of the venture includes all details about the manufacturing processes mentions performance criteria that will be monitored and controlled

mentions performance criteria that will be monitored and controlled

Stella, an entrepreneur, plans to develop a marketing plan for her new venture. As part of the process, she divides the market into smaller groups based on characteristics of the customer. Match the factors she should consider in this process of dividing the market (in the left column) with their components (in the right column).

Geographic - State, country, city, or region Demographic - Age, sex, occupation, education, income, or race Psychographic - Personality or lifestyle

Identify the true statements about the marketing plan of a new venture. (Check all that apply.) Multiple select question. It should be created annually, evaluating the goals and objectives for the next year. It should clearly detail the processes involved in the manufacturing and operations of the venture. It should include a detailed plan on the safety procedures to be followed in times of disaster. It should be integrated with the venture's more long-term strategic plan.

It should be created annually, evaluating the goals and objectives for the next year. It should be integrated with the venture's more long-term strategic plan.

True or false: Focus groups are a more formal method for gathering in-depth information as part of the marketing research for a new venture than questionnaires.

Reason: This is false. Focus groups are a more informal method for gathering in-depth information as part of the marketing research for a new venture than questionnaires. A focus group discusses issues in an informal, open format, enabling an entrepreneur to ascertain certain information.

What is the implication of the upside-down pyramid approach to industry analysis by an entrepreneur of a new venture? Multiple choice question. The upside-down pyramid approach helps the entrepreneur avoid conducting competitor analysis. The upside-down pyramid approach helps the entrepreneur understand competitors' strengths and weaknesses. The upside-down pyramid approach helps the entrepreneur focus solely on secondary competitors. The upside-down pyramid approach helps the entrepreneur create a marketing plan as a superficial document to outside financial suppliers.

The upside-down pyramid approach helps the entrepreneur understand competitors' strengths and weaknesses.

Shane plans to start a venture that sells customized furniture. Before starting the venture, he conducts market research. Which of the following steps should be taken by Shane as part of the research? Multiple choice question. He should attend workshops on designing furniture. He should determine the ideal tools that should be used for the production of furniture. He should collaborate with local entrepreneurs to manufacture furniture. He should determine the most appropriate mode of selling the furniture.

He should determine the most appropriate mode of selling the furniture.

True or false: Market segmentation prevents an entrepreneur from responding to the needs of homogeneous consumers.

Reason: This is false. Market segmentation allows an entrepreneur to more effectively respond to the needs of more homogeneous consumers. Otherwise, the entrepreneur would have to identify a product or service that would meet the needs of everyone in the marketplace.

True or false: An entrepreneur of a new venture can gain information on competitors initially by utilizing as much public information as possible and then complementing this with a marketing research project.

Reason: This is true. An entrepreneur of a new venture can gather information on competitors initially by using as much public information as possible and then complementing this with a marketing research project. Newspaper articles, Web sites, catalogs, promotions, interviews with distributors and customers, and any other marketing strategy or company information available should be reviewed.

Which of the following represents the definition of marketing strategy and action plan? Multiple choice question. Process of dividing a market into definable groups for purposes of targeting marketing strategy Specific activities outlined to meet a venture's business plan goals and objectives Specific group of potential customers toward which a venture aims its marketing plan Statements of level of performance desired by a new venture

Specific activities outlined to meet a venture's business plan goals and objectives

Based on a study of new ventures, match the types of ventures based on their growth rate (in the left column) with the areas on which they concentrated to gather primary data in the marketing research (in the right column).

The most successful ventures - Competitors, the customer, and the industry, using networking, trade associations, and recent publications The least successful ventures - General economic and demographic trends General economic and demographic trends

Which of the following are true about manufacturers' representatives used by new ventures for product distribution? (Check all that apply.) Multiple select question. Their role is to act as commercial wholesale retailers of individual companies. They are wholesalers and retailers that add important value to the product. They can be used to market to the consumer or household market. Their role is to act on behalf of noncompeting companies that will share the cost of their services.

They can be used to market to the consumer or household market. Their role is to act on behalf of noncompeting companies that will share the cost of their services.

Identify a true statement about decisions on the marketing strategy and action plan of a new venture. Multiple choice question. They reflect on the marketing mix variables. They are independent of the aspects related to competitions in the marketplace. They are independent of the aspects of the product or service offered by the venture. They disregard the results of marketing research.

They reflect on the marketing mix variables.

As the first step of marketing research, an entrepreneur should _____. Multiple choice question. gain knowledge about past research define the purpose of the research study collect information from primary sources gather data from secondary sources

define the purpose of the research study

The marketing plan of a new venture primarily establishes the ways in which an entrepreneur will _____. Multiple choice question. effectively compete and operate in the marketplace share ideas with other entrepreneurs in the marketplace ensure the profits are equally distributed among stakeholders choose his or her successor

effectively compete and operate in the marketplace

As part of preparing a marketing plan for a new venture, an entrepreneur should define the business situation. When defining the business situation, the entrepreneur should _____. Multiple choice question. prepare action programs dates for accomplishment determine marketing strategies evaluate past performance of the product and the company explain the target market

evaluate past performance of the product and the company

In the marketing research for a new venture, secondary resources should be _____. Multiple choice question. considered after exhausting commercial sources of information more credible than commercial sources of information used after gathering information from primary sources exhausted before gathering information from primary sources

exhausted before gathering information from primary sources

When considering the pricing of a product or service in a situation where the product or service is unique in the marketplace, an entrepreneur should _____. Multiple choice question. understand that reducing costs is the only way to increase profits in this situation avoid considering the aspects of profit margins have a precise understanding of the inherent costs realize that there is little room for price variations from the competition

have a precise understanding of the inherent costs

A marketing plan of a new venture differs from its business plan in that the marketing plan _____. Multiple choice question. is a standalone document that should be managed on a short-term basis to ensure whether the venture is meeting its goals and objectives is the primary road map for the entire organization over time focuses on marketing issues and decisions as research and development, personnel, financial projections and analysis, and future growth strategies focuses on decisions in operations and manufacturing

is a standalone document that should be managed on a short-term basis to ensure whether the venture is meeting its goals and objectives

A feature of a questionnaire, which is a data collection instrument used to gather primary data in the marketing research for a new venture, is that it should include _____. Multiple choice question. questions that are clear and concise and are easy to answer questions that are specifically designed to bias respondents only open-ended questions only closed-ended questions

questions that are clear and concise and are easy to answer

Which of the following is considered the primary data in the marketing research for a new venture? Multiple choice question. Information gathered from unauthorized surveys Information that is new Information gathered from old trade magazines Information that is untrue

Information that is new

_____ is the most common approach used to gather market information for a new venture. Multiple choice question. Observing Analyzing political views of the majority Interviewing Checking historical data

Interviewing

Which of the following is true about the definition of a product or service in the marketing plan? Multiple choice question. The product or service definition may consider more than the physical characteristics. The product or service definition is always dependent on the customer base. The product or service definition is tied to the marketing goals. The product or service definition may include only a one-word description.

The product or service definition may consider more than the physical characteristics.

In the context of the distribution of a product or service in the market, which of the following is true about manufacturers' representatives who help an entrepreneur reach retailers or end users? Multiple choice question. They typically do not act on behalf of any noncompeting company. They do not take title or physical possession of a product or service. They are not part of the original marketing strategy. They cannot be used to market to the consumer or household market.

They do not take title or physical possession of a product or service.

What is the most important purpose of reviewing secondary sources as part of the marketing research for a new venture? Multiple choice question. To disregard the upside-down pyramid approach to industry analysis To assist an entrepreneur in documenting the current financing strategies of secondary competitors To prove the credibility of commercial sources of information To gather information that will help an entrepreneur make the best decisions regarding the marketing of a product or service

To gather information that will help an entrepreneur make the best decisions regarding the marketing of a product or service

Sheila, an entrepreneur, prepares a marketing plan for her new venture. After identifying the target market, Sheila's first decision should be to _____. Multiple choice question. identify candidate communities that would match the user profile identify various types of channels to distribute her product globally determine marketing actions and decision strategies establish the goals and objectives of marketing research

identify candidate communities that would match the user profile

Click and drag on elements in order Roger, an entrepreneur, plans to segment and target customers of his firm as part of developing a marketing plan. Arrange the steps he should take to segment and target the customers in the correct order of occurrence.

1. Determine the general market or industry he wishes to pursue 2. Segment the market into smaller groups based on characteristics of the customer or buying situations 3. Choose segment or segments of the marketing to target 4. Build a marketing plan integrating product, price, distribution, and promotion

Identify the reasons why business-to-business marketing strategy typically involves a more direct channel of distribution than does a consumer market. (Check all that apply.) Multiple select question. Because of the lack of manufacturing units and direct sales Because of the absence of trade magazine advertising Because of the volume of each transaction Because of the need to relate product knowledge to business buyers

Because of the volume of each transaction Because of the need to relate product knowledge to business buyers

Match the components used to gather primary data in the marketing research for a new venture (in the left column) with their descriptions (in the right column). Instructions

A data collection procedure - Involves observation or networking Involves observation or networking A data collection instrument - Involves a questionnaire Involves a questionnaire

Match the plans involved in starting a venture (in the left column) with their descriptions (in the right column).

A marketing plan - It primarily concentrates on all marketing activities of a venture for one year or more. A business plan - It involves marketing, research and development, operations, manufacturing, personnel, financial projections and analysis, and future growth strategies.

Match the situations in the market that are related to the distribution of a product or service (in the left column) with the guidelines an entrepreneur should follow in those situations (in the right column).

A situation in which the market for a new venture is highly concentrated, such as a major metropolitan area - It is advisable for an entrepreneur to consider direct sales to the customer or to a retailer rather than using a wholesaler. A situation in which the market is dispersed across a wide geographic area - It is advisable for an entrepreneur to utilize a longer channel with wholesalers and retailers as the cost of direct sales may be prohibitive.

Based on the marketing strategy and action plan of a new venture, match the situations of a marketplace (in the left column) with its effects on the pricing of a product or service (in the right column).

A situation where a product or service is in a nondifferentiated market - An entrepreneur has little room for price variations from the competition. A situation where a product or service is unique in the marketplace - An entrepreneur has flexibility for price variations from the competition.

In the context of the upside-down pyramid approach to industry analysis, how should an entrepreneur of a new venture begin competitor analysis? Multiple choice question. By gathering information about secondary competitors from primary competitors By defining the purpose of business goals By documenting the present strategy of each primary competitor By identifying secondary competitors

By documenting the present strategy of each primary competitor

Jason is a manufacturing representative of Share Notes Inc., a company that manufactures notebooks, and is a supplier of office stationery for different offices in his city. He adds Share Notes Inc.'s notebooks as a complement to other products that he supplies. Which of the following is true about Jason in this scenario? Multiple choice question. He would be restricted from acting as a manufacturing representative for other noncompeting companies. He would take title along with the physical possession of Share Notes Inc.'s notebooks. He would be paid a commission only when a notebook is sold. He would be allowed to work only on the basis of a retainer fee.

He would be paid a commission only when a notebook is sold.

Which of the following should be determined by an entrepreneur as part of the first step of marketing research? (Check all that apply.) Multiple select question. What are the characteristics of the prospective customers based on the data gathered by researchers on the field? How much would prospective customers be ready to pay for the entrepreneur's product or service? Where would prospective customers prefer to buy the entrepreneur's product or service? What is the response rate of prospective customers to survey questionnaires sent to them as part of the research study?

How much would prospective customers be ready to pay for the entrepreneur's product or service? Where would prospective customers prefer to buy the entrepreneur's product or service?

What is the implication of knowing the target market for a product or service? Multiple choice question. It makes an entrepreneur identify a product or service that would meet the needs of everyone in the marketplace. It diminishes the effects of market segmentation on profit gains. It is the basis for deciding the appropriate marketing action strategy that will effectively meet the market's needs. It prevents an entrepreneur from addressing the needs of homogeneous consumers.

It is the basis for deciding the appropriate marketing action strategy that will effectively meet the market's needs.

Identify the requirements for a firm's marketing plan to be effective. (Check all that apply.) Multiple select question. It should primarily focus on operations and manufacturing. It should be the primary road map for the entire firm over time. It should be supported by facts and valid assumptions. It should provide a strategy for achieving the firm's mission or goal.

It should be supported by facts and valid assumptions. It should provide a strategy for achieving the firm's mission or goal.

A questionnaire is a data collection instrument used by an entrepreneur to gather primary data in the marketing research for a new venture. Identify a true statement about a questionnaire. Multiple choice question. It should include only closed-ended questions. It should include only open-ended questions. It should have questions specifically created to achieve objectives the entrepreneur listed earlier. It should have questions that are specifically designed to bias respondents.

It should have questions specifically created to achieve objectives the entrepreneur listed earlier.

Identify the true statements about middlemen in the context of the distribution of a product or service in the market. (Check all that apply.) Multiple select question. They are able to provide functions such as storage, delivery, a sales staff, promotion or advertising, and maintenance. They are the manufacturer's representatives who typically take title of the product or service. They set the price of the product or service by considering costs, margins or markups, and competition. They possess important experience in the marketplace that can help an entrepreneur build his or her marketing strategy.

They are able to provide functions such as storage, delivery, a sales staff, promotion or advertising, and maintenance. They possess important experience in the marketplace that can help an entrepreneur build his or her marketing strategy.

What is the primary focus of the industry analysis carried out by an entrepreneur of a new venture? Multiple choice question. To increase the costs of storage and shipping of a product or service To serve as a superficial document to outside financial supporters or suppliers To give sufficient knowledge of the environment that impacts marketing strategy decision making To let manufacturers' representatives take title or physical possession of a product or service

To give sufficient knowledge of the environment that impacts marketing strategy decision making

Raj, an entrepreneur, prepares a marketing plan for his new venture. As part of preparing the plan, Raj seeks to identify candidate communities that would match the user profile. In this situation, which of the following tools should be used by Raj as a logical starting place that reveals demographic data on income, ages of children, and employment? Multiple choice question. Random sampling Focus groups Town census research Brainstorming

Town census research

A specific group of potential customers toward which a venture aims its marketing plan is known as a(n) ________ ________.

target market