ENT 3315 Exam 2 - David Allen

small business marketing

consists of those business activities that direct the creation, development, and delivery of a bundle of satisfaction from the creator to the targeted user.

It is recommended that all new businesses begin with a...

consumer orientation

For many businesses, customer accessibility is an extremely important consideration in...

selecting a location

Represent cash amounts borrowed from a bank or other lending source for 12 months or less

short-term notes

3 ingredients in the definition of marketing

(1) Market must have buying units or customers (2) Customer in a market must have purchasing power (3) Market must contain buying units with unsatisfied needs.

Two-stage process that under-lies all consumer orientation marketing efforts:

(1) identifying customer needs (2) satisfying those needs

Guidelines to be a Corporation

(1) must be domestic (2) no more than 100 stockholders (3) all stockholders must be individuals or certain qualifying estates and trusts (4) only one class of stock can be outstanding (5) Fiscally, must operate on a calendar-year basis (5) partnerships, corporations and nonresident aliens cannot be shareholders.

Under the following conditions, it would be better to use a C Corporation:

(1) you want to provide extensive fringe benefits to owners or employees ( the c corp. can deduct these benefits and they are not treated as taxable income to the employees)

labor-intensive operations (ex: clothing manufacturers) needed to be located near workers with?

appropriate skills and reasonable wage requirements

To ensure balance, a management team should...

comprise both competent insiders and outside specialists

production-oriented philosophy emphasizes...

the product as the single most important part of the business

The five states with the most favorable tax systems, in order...

Nevada, South Dakota, Texas, Wyoming, & Washington

Reports the income it earns to the Internal Revenue Service, but itself does not pay any taxes?

Partnership

Sales (revenue) - Expenses =

Profits (income)

an example of a business that must stay close to its raw materials in oreder to operate economically?

sawmill

Example of B2C flexibility

They are able to change merchandise mixes and prices quickly, and they can easily modify the appearance of their online store.

From the firm's operating profits, we deduct any interest expense incurred from borrowing money (debt) to find profits before taxes, or taxable profits...

a company's taxable income

Customers will not buy unless they are motivated to do so and motivation can occur only when...

a customer recognizes his or her unsatisfied needs

sales-oriented philosophy deemphasizes production efficiencies and customer preferences in favor of...

a focus on "pushing product"

Benefits of leasing

a large cash outlay is avoided, which can be especially important for a new small firm that lacks adequate financial resources

A group will typically make better decisions than...

a single individual working alone

Companies that depend on semiskilled or unskilled workers usually locate in...

an area with surplus labor, while other firms may need to be close to a pool of highly skilled labor.

To form a corporation, one or more persons must...

apply to the secretary of state (At the state level) for permission to incorporate

Provides a snapshot of a business's financial position at a specific point in time?

balance sheet

Sometimes, board members are given a small percentage of the company's profits as a...

bonus for their participation, (some cash-strapped business may grant them stock, often 1-2%)

Not all members of a management team need...

competence in all areas, key is balance

A growing number of entrepreneurs who sell their wares over the Internet do so without....

creating either a website or a storefront (example: Ebay)

Borrowed money that must be repaid within 12 months or less

current debt (short-term liabilities)

Two stage process (consumer orientation) is easy to understand, but...

difficult to implement, given the competitive nature of most markets. (this is what it takes for a company to be successful in the long term)

general partnership

each party bears joint and several liability (business decision by one partner binds all other partners even if they were not consulted in advanced)

bundle of satisfaction

emphasizes the benefits customers will gain from a product or service

The role of a website can range from merely offering information and basic content to...

enabling complex business transaction

consumer-oriented philosophy believes that...

everything, including production and sales, centers on the consumer and his or her needs

Business 2 Consumer enjoy the advantages of...

flexibility

Telephone surveys and personal interview surveys achieve higher...

response rates

location is vital in industries in which cost of shipping the finished product is

high relative to the product's value

The buildup process calls for...

identifying all potential buyers in a target market's submarkets and then adding up the estimated demand

Indicates the amount of profits or losses generated by a firm over a given time period, usually monthly, quarterly or yearly

income statement (profit and loss statement)

Most detailed section of the marketing plan and subject to the closest scrutiny from potential investors?

information on marketing strategy forms

Secondary data

information that has already been compiled

Research shows that many entrepreneurs prefer to launch a part-time enterprise to...

keep the income flowing until they can afford to make a complete transition to the new business

Fixed assets (property, plant, and equipment; PPE) includes

land, buildings, machinery, trucks, computers, and every other physical asset a company owns that will be used in the business for more than a year

More small business owners choose to purchase rather than...

lease their buildings, but the benefits of leasing can sometimes outweigh the gains of owning

What to do with profits?

let the company pay them a dividend out of the profits (which represent a withdrawal of capital from the business)

A group of customers or potential customers who have purchasing power and unsatisfied needs?

market

The process of dividing 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.

market segmentation

Market Analysis

marketing activities including taking the steps necessary to locate and describe potential customers

Marketing activities encompass product and/or service, pricing, promotion and distribution, which combine to form the...

marketing mix

a detailed discussion of the major benefits to customers provided by the new product or service should be included in the...

marketing mix section of the market plan

Collecting secondary data is much less expensive than gathering

new or primary data

Small business entrepreneur should remember how important the sales outlook in the business plan is to...

obtaining financing

The sustainability of the labor supply for a manufacturer depends on...

the nature of its production process

The Small Business & Entrepreneurship Council publishes a "Business Tax Index" each year to...

rank the states in terms of the costs of their tax system on small business

If raw materials required by a company's operations are not readily available in all areas,

regions in which these materials are will offer significant location advantages (especially true fro businesses that are dependent on bulky raw materials that lose size in the manufacturing process.

consumer-oriented philosophy leads to...

success in many ares, not just marketing

Questioning methods that involve contact with respondents?

surveys and experimentation

An S corporation does not pay income taxes, but instead passes..

taxable income or losses on to the stockholders. (allows stockholders to receive dividends from the corporation without double taxation on the firm's profit)

What does a balance sheet show?

the assets a firm owns, the liabilities outstanding or owed, and the amount the owners have invested in the business on that date

All marketing efforts in consumer-oriented philosophy begin and end with...

the consumer

A small business entrepreneur should not neglect?

the forecasting task

Marketing research defined as?

the gathering, processing, interpreting and reporting of market information.

Customer Satisfaction is not a means to achieving a goal, it is...

the goal

Sole proprietorship lacks in what?

there are no limits on the owner's personal liability (the owner has unlimited liability; her personal assets can be taken by business creditors if the enterprise fails)

The chief executive of a small corporation is in no way giving up active control of its operations by...

utilizing the experience of a board of directors, she is just drawing on a large pool of business knowledge

Personal interviews

very expensive, individuals reluctant to grant interview if they think sales pitch is coming