MGT pt3

___ are wealthy individuals who invest part of their assets in high-risk, high-return ventures.

Angel capitalists

Which of the following is a strategy used by companies with a reputation for superior marketing?

Attention to packaging

Which of the following is an opportunity available for small firms interested in global operations?

Expansion of markets and product diversification

_____ are those capital requirements that are of a relatively permanent nature and are necessary for the functioning of a business.

Fixed assets

_____ advertising tries to get potential customers to buy a product within a short period of time so that the reaction can be easily measured.

Immediate-response

_____ are long, usually half-hour TV ads that can be effective in helping small firms keep growing and enter markets once dominated by giant competitors.

Infomercials

_____ is the use of a combination of truck, rail, or ship to transport goods.

Intermodal shipping

In the context of small businesses, which of the following statements is true of asset-based financing?

It accepts the assets of a firm as collateral in exchange for a loan.

Which of the following statements is true of database marketing?

It is a quick and efficient process for obtaining meaningful consumer information and making marketing decisions to acquire customers.

Which of the following statements best describes leader pricing?

It is a strategy wherein certain products are chosen for their promotional value and priced low to entice customers into retail stores.

Identify a true statement about institutional advertising.

It is selling an idea about the company to consumers.

Which of the following statements is true of small company offering registration (SCOR)?

It is the sale of common stock to the public through a regulated board.

What is meant by the term competitive edge?

It refers to a particular characteristic that makes one firm more attractive to customers than other firms.

In the context of small businesses, which of the following statements is true of common stock?

It represents an owner's interest and consists of many identical shares.

In the context of small businesses, which of the following statements is true of preferred stock?

It usually conveys no voting rights to its holder.

Which of the following is a risk for small firms interested in global operations?

Low skill levels of workers in underdeveloped countries

In the context of small businesses, which of the following statements is true of debt securities?

Small companies rely on loans from commercial banks.

Which of the following statements is true of the marketing concept?

Special consideration must be given to the needs, desires, and wishes of present and prospective customers.

Which of the following statements is true of venture capital firms?

They prefer to back small firms with opportunities for fast growth.

____ play an important role in shipping because of their flexibility in operation and the improved highway systems.

Trucks

In the context of small businesses, what is financial leverage?

Using fixed-charge financing, usually debt, to fund a business's operation

The most popular method of setting an advertising budget that depends on a manager's experience and intuition is the _____ method.

executive decision

The sales of a product are rising rapidly and profits are peaking. This product is in the _____ stage of the product life cycle.

growth

A _____ is a contract that permits the use of someone else's property for a specified time period.

lease

A(n) _____ is a long-term debt that is secured by real property.

mortgage loan

John wants to start his own fruit juice and beverage company. He is aware of the large number of competitors in this industry and of the fact that his product should not be very costly. To differentiate his product from that of his competitors, he decides to sell his beverages in specially designed containers that keep the juice fresh for 7 days even without refrigeration. John is focusing on the _____ component of the marketing mix.

packaging

With the _____ method, advertising costs have a consistent relationship to a firm's sales volume and/or profit level.

percentage of sales or profits

Small business investment companies are:

private firms licensed and regulated by the Small Business Administration to make "venture" investments in small firms.

Market segmentation refers to the:

process of identifying and evaluating various layers of a market.

Marketing mix refers to the ____

proper blending of the basic elements of product, price, promotion, and place into an integrated marketing program

A _____ price is one which is set relatively high initially in order to obtain the "cream" of the target market before competitors enter.

skimming

Equity financing in a corporation is evidenced by shares of either common or preferred _____

stock

A primary marketing research technique used by most companies is _____

telephone surveys

An exhibition of products or services by companies in the same industry is known as a ____

trade show

The _____ method of setting an advertising budget is useful for specialty goods and in situations where outside factors limit the amount of product available.

units of sales

Questionnaires used for primary research should:

use familiar jargon.

_____ is a form of debt security with a standard denomination, method of interest payment, and method of principal repayment.

Bond

____ involves prodding businesses to improve the quality of their products and to expand consumer knowledge.

Consumerism

Which of the following statements is true of debt securities?

Debt securities are usually in the form of bonds or loans.

____ is the effective physical movement of a product from the production line to the final consumer.

Distribution

_____ is an owner's share of the assets of a company.

Equity

Which of the following statements is true of the introduction stage of the product life cycle?

Many products never get beyond this stage.

____ is the systematic gathering, recording, and analyzing of data about the merchandising of goods and services.

Market research

Which of the following statements characterizes the growth stage of the product life cycle

Marketing strategy in this stage typically encourages strong brand loyalty.

In which stage of the product life cycle does competition become more aggressive with declining prices and profits?

Maturity

____ is the promotional effort made for a product or service in retailing firms, especially at the point of purchase.

Merchandising

In the context of small businesses, which of the following statements is true of selling products to different ethnic groups?

Most ethnic groups constitute a better market for durable goods than traditional markets.

Which of the following statements is true of exporting by small American firms?

Overseas markets represent unlimited sales opportunities.

In the context of small businesses, which of the following statements is true of global marketing?

Overseas markets represent wide sales opportunities.

What happens during the maturity stage of the product life cycle?

Promotion costs climb, and competitors cut prices to attract business.

Which mode of transportation has the disadvantage of operating on fixed routes and on a fixed schedule?

Railroads

An electronics store provides discount coupons to its customers when they buy a product. Which marketing activity, other than advertising, does this situation illustrate?

Sales promotion

_____ of a company is its current assets, less current liabilities, that a firm uses to produce goods and services and to finance the extension of credit to customers.

Working capital

A penetration price refers to:

a price set relatively low to secure market acceptance.

In the context of small businesses, _____ comes from lenders who will be repaid at a specified interest rate within a specified time span.

debt financing

Promotion efforts may be cut and plans may be made to phase out a product during the _____ stage of the product life cycle.

decline

The absolute cost of an advertising media is the:

actual expenditure of running an advertisement.

Working capital needs of a company are projected by estimating what out-of-pocket expenses will be incurred and when the revenues from sales are to be collected, which is done by _____.

cash budgets

A debt backed by some physical asset other than land, such as machinery, equipment, or inventory, is termed _____

chattel mortgage loan

Marketing activities that include the use of coupons, trading stamps, and samples that stimulate buyer purchasing and dealer effectiveness is incorporated in ____

consumer promotion