ENTR 187 Final

Face-to-face meetings with the client are infrequent if the services are provided at the client's location

False

For me-too products, the stages of new product development are always extensively long

False

Personal selling decreases business owners' flexibility in their presentation.

False

The total product is the most general description of a business, and the one which captures the smallest amount of what is special about a business.

False

Operational plans and private placement memos are the only two types of plans that add material to a full business plan

True

Promotion includes getting the message out to the target market so that they can make decisions about a product or service

True

The final goal for developing and testing your value proposition is how it stacks up against and will compete against the other offering available to your customers.

True

The financial statements in a business plan include income statements, cash flow, balance sheet, and their respective assumptions.

True

The goal of appendixes is to provide supporting information that helps detail or support the key selling points of a business plan.

True

Marketing and new product experts believe that most of the small business failures could have been avoided by following the new product development (NPD) process.

True

In Connie's business plan, which of the following components is most likely to be of interest to Mr. Johnson? A. Cash flow and cash cycle B. Growth rate C. Competitive advantage D. Amounts and schedules for returns

A. Cash flow and cash cycle

_____ is a type of CRM report that segments by customer or customer group on purchases or dates of purchase. A. Customer vector B. Sales report C. Customer service D. Interim report

A. Customer vector

Which of the following statements is true of sales forecasting? A. In many cases, the best sales forecast you can come up with is an educated guess. B. It is better to have a high sales projection initially and adjust as actual sales happen. C. Using traditional retailers and distributors does not change the price you set at the factory. D. Ignore your capacity when identifying your potential market as you will not be serving the entire potential market.

A. In many cases, the best sales forecast you can come up with is an educated guess.

According to the Panel Study of Entrepreneurial Dynamics (PSED), when an entrepreneur comes up with the idea from others, the single greatest idea source is from: A. discussions with friends and family. B. discussions with potential or existing customers. C. discussions with existing suppliers or distributors. D. discussions with potential or existing investors or lenders.

A. discussions with friends and family.

Small business owners' unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition is known as: A. value proposition. B. long-term value. C. tangibility. D. total product.

A. value proposition

Which of the following statements is not true concerning marketing and marketing plans? A. For start-ups, marketing plans help define how the firm will build its brand and relationship with customers. B. When building your marketing plan, there is low-cost help available in several ways. C. For established businesses, a marketing plan helps the company maintain customer relationships. D. Not all business plans have a marketing section.

D. Not all business plans have a marketing section

When pitching your business plan to an influential person they are likely looking at your passion for the business; your expertise about the business and the plan; how professional you are in your work; and how easy it would be to work with you.

True

When pricing your product, the optimum price is the highest price that will produce your desired level of sales in your intended market

True

In the context of a business plan, a firm's responsiveness to customers is a key concern of bankers.

False

Something that is essential to how you live and does not have many substitutes or alternatives is called an elastic product

False

The method of advertising is least likely to be used by businesses to convey their message to potential customers.

False

The process of dividing the market into smaller portions of people that have certain common characteristics is called stereotyping.

False

The purchasing process is the term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization

False

When coming up with a new idea in the product development process, the focus is on the pains and gains of customers

False

Which of the following is most likely to be the key information that joint venture partners seek in a business plan? A. Asset or collateral base B. Cash flow and cash cycle C. Intellectual property protection D. Stability of firm

C. Intellectual property protection

Advertising costs are usually based on cost per hundred thousand.

False

_____ is a strategy whose goal is growth, based on selling more of the firm's product or service to the existing customer base. A. Market penetration B. Product expansion C. Market expansion D. Diversification

A. Market penetration

Brochures and flyers are types of promotional novelties.

False

If Connie gets her family and friends involved as investors, which of the following is most likely to be their concern? A. Cash flow and cash cycle B. Intellectual property protection C. Monitoring compliance D. Amounts and schedules for returns

D. Amounts and schedules for returns

A product can include goods, services, and ideas.

True

Access for employees and reasonable cost are critical for businesses with low customer contact. T

True

Advertising is often used to support the corporate identity and value propositions that are established through public relations efforts

True

Every business faces risks in the real world, so every business plan needs to spend some time addressing them

True

When considering the service life cycle, which of the following statements is not true? A. It can be more difficult to extend the life cycle of a service over that of a product. B. Services go through the same four stages of the life cycle. C. New services will take a little time to attract customers. D. Initial advertising efforts will be to educate your clients about the service.

A. It can be more difficult to extend the life cycle of a service over that of a product.

When writing your elevator pitch, remember that elevator pitches have four success factors. Which of the following is not one of those success factors? A. The length. B. The purpose. C. The delivery. D. The hook.

A. The length.

The steps in Blank and Dorf's "Get Customers" funnel are awareness, interest, consideration, and purchase. Here, consideration refers to: A. the process of getting into the prospective customer's final list of brands of products or services they may purchase. B. the process of prospective customers taking some action to learn more about the product or service you offer. C. the process of getting your message out as much as you can to your target market. D. the end of the initial promotional funnel.

A. The process of getting into the prospective customer's final list of brands of products or services they may purchase.

A(n) _____ is a one-page document on letterhead that introduces the business plan and owner to the recipient and indicates why the recipient is being asked to read the plan. A. executive summary B. cover letter C. appendix D. title page

B. cover letter

Marketing data gathered by simple observation - seeing what customers do, rather than asking them is: A. secondary research. B. a focus group. C. ethnographic research. D. branching.

C. ethnographic research

The sales plan of a marketing strategy focuses on: A. the longer-term partnerships to be sought. B. the new markets to be pursued. C. the ways to leverage a firm's assets. D. the day-to-day specifics of how sales are achieved.

D. the day-to-day specifics of how sales are achieved

Business owners can figure how to better target ads or promotions to particular types of customers if: A. they track sales of their competitors. B. they identify the defects in their products. C. they use the diversification strategy rather than the product expansion strategy. D. they link sales and purchase basis to the type of customer.

D. they link sales and purchase basis to the type of customer

A direct mail approach needs major inventory investment.

False

A screening plan provides information on the company, product/service, market, and critical risks to prospective business.

False

Distributors and wholesalers prefer taking on start-up products as there are no setup charges involved.

False

Executive summaries are written in a formal style, suitable for investors, bankers, and lawyers to read.

True

Giveaways, samples, and tastings are all examples of introductory techniques used in sales promotion.

True

In the context of a business plan, product quality, its benefits, service quality, and the competitive advantage are the primary concerns of potential customers.

True

Guerilla marketing is a form of communication that encourages the customer to act immediately, such as coupons, sales, or contests.

False

Press relations are a form of communication that encourage the customer to take immediate action.

False

Selling your product or service in a limited area, for a limited time is known as parallel marketing

False

Services have separability of production and consumption

False

When the fear appeal used by a marketing message is a too strong, it always causes the audience to react positively.

False

Which of the following statements is true of business plans? A. Firms without a business plan are less likely to close down than firms with plans. B. External legitimacy for a firm is best established by creating business plans. C. Typically, the higher-performing firms in any industry tend to be those who do not have any business plan. D. Having a business plan guarantees higher profits.

B. External legitimacy for a firm is best established by creating business plans.

A business plan that provides information to potential licensees is referred to as a(n) _____ plan. A. screening B. invention C. operational D. concept

B. Invention

Which of the following is true of a private placement memo? A. It provides information to potential licensees. B. It is a complex legal document and should be drafted by a lawyer. C. It is a special form of informational plan posted on the Internet. D. It is designed to be used internally for management purposes.

B. It is a complex legal document and should be drafted by a lawyer.

Which of the following statements best describes the process of idea screening in new product development? A. It involves specifying the details of each idea's technological feasibility, its cost, how it can be marketed, and its market potential. B. It is the process of selecting the most promising ideas to be further evaluated for feasibility. C. It involves creating the first versions of products called prototypes which are used in further consumer testing. D. It is the process of mass producing a new product so that consumers can avail it.

B. It is the process of selecting the most promising ideas to be further evaluated for feasibility.

Which of the following statements is true of an elevator pitch? A. It is shorter than a vision statement or tagline. B. Its goal is to sell the idea of a business to another. C. It does not sound like a sales pitch. D. It is a summary of the business, its business models, and immediate goals.

B. Its goal is to sell the idea of a business to another

_____ is a strategy whose goal is growth, based on selling in areas or to groups previously not served by the business. A. Market penetration B. Market expansion C. Product expansion D. Diversification

B. Market expansion

Which of the following is a type of informational plan that solicits information on customer interests? A. Invention plan B. Proof-of-concept website C. Private placement memorandum D. Operational plan

B. Proof-of-concept website

Which of the following statements is not true of the product life cycle? A. There are four stages to the product life cycle. B. Stages in the product life cycle are not similar to those of the firm's life cycle. C. Not all products survive the introduction phase of the product life cycle. D. Most small businesses can only afford to launch a product on a small scale.

B. Stages in the product life cycle are not similar to those of the firm's life cycle

Which of the following statements is not true of creating a customer profile? A. The process for a start-up should begin with face-to-face interviews with potential customers. B. It should be typically applied at the decline stage of the product life cycle Analyze the results of interviews by first looking at the problems your interviewees were trying to solve. C. The goal of these interviews is to get as many responses as possible. D. The hardest part of preparing the interview is figuring out what the problem context is.

C. The goal of these interviews is to get as many responses as possible.

Trendiness refers to: A. a concept in public interest which alludes to events with a broad appeal within the market or population. B. a concept in public recognition which alludes to how close the issue being discussed is to you, your family or business. C. a concept in public interest which alludes to the graphic interest held by an event. D. a concept in public recognition which alludes to the fit of the topic to current fashion or public interest.

D. A concept in public recognition which alludes to the fit of the top to current fashion or public interest.

_____ refers to business owners doing what they said they would do. A. Trendiness B. Cognitive dissonance C. Follow-up D. Follow-through

D. Follow-through

It is customary for a small business to concentrate its efforts on one target market at the beginning and consider secondary ones later.

True

It is nearly impossible to design a message that will appeal universally or to find media that will reach all consumers.

True

Radio advertisements provide both geographic and demographic segmentation of a product or service.

True

Sales leads who actually make some sort of effort to learn more about the product, service, or business in anticipation of a possible purchase are known as prospects.

True

Skimming, odd-even pricing, and price lining are three possible pricing strategies available to small businesses.

True

E-tailers have high overhead and limited shelf space.

False

Exporting is usually expensive, difficult to start, and more risky than licensing, franchising, or joint ventures

False

Which of the following is not one of the three tests of the approach when crafting a customer-focused value proposition? A. How many customer pains can you solve? B. How many customer gains can you provide? C. How closely does your product or service fit the customer's job? D. How does your price compare to competitors' prices?

D. How does your price compare to competitors' prices?

Which of the following is a disadvantage of leasing? A. It requires a considerably high initial cash outlay than building or buying. B. It is expensive than building or buying a property that are of the same value. C. Lease expenses are not deductible business expenses. D. Renovation options are limited in a leased property.

D. Renovation options are limited in a leased property

The primary areas for conflict resolution in exporting include nonpayment and contract default issues.

True

The value delivered to the customer is second in order of importance to the pricing decision.

True

When your product or service already exists but your firm is the first of its kind in your market, it is considered a(n) _____ business. A. entry-level B. pioneering C. substitutive D. new entrant

D. new entrant

It is good to opt for distributors when a whole line of products need to be bought or warehoused.

True

The concept of total product includes how customers describe one's good or service.

True

The new product development process is likely to be easier for services than for innovative goods.

True

A customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained is the __________. A. decision maker B. purchaser C. end user D. influencer

A. decision maker

Which of the following terms refers to a concept in public importance which alludes to the degree to which the issue is immediate in its impact? A. Proximity B. Currency C. Power D. Cultural resonance

B. Currency

Which of the following is a characteristic feature of sales packets? A. They are usually large enough to read by passing traffic. B. They provide potential customers an education in a firm's product or service. C. They generally consist of pens or small calendars which are printed with the name and slogan of the company. D. They are generally hand-written.

B. They provide potential customers an education in a firm's product or service

Which of the following statements is true of the target market? A. Your Total Available Market (TAM) represents the customers that you think would be interested in your particular product or service. B. Your target market is the same as your Serviceable Obtainable Market (SOM). C. Your Penetrated Market (PM) is your target market divided by your actual number of customers. D. Your Serviceable Available Market (SAM) is never the same as your Total Available Market (TAM).

B. Your target market is the same as your Serviceable Obtainable Market (SOM).

From an entrepreneur's perspective, marketing is all about connecting your customer to your product or service. The first step in this process is: A. connecting the two through price. B. connecting the two through the value proposition. C. connecting the two through promotion. D. connecting the two through product placement.

B. connecting the two through the value proposition

Marcie works at a public library and she is responsible for purchasing all audiobooks for the library. Marcie reads reviews of the titles from the available monthly circulars, choosing the titles she would like to add to the collection. Marcie then sends the order to the technical services department where Linda places the order. In this case Linda is playing the customer role of _________. A. decision maker B. purchaser C. influencer D. end user

B. purchaser

Your hit rate is how many prospects or leads you need to approach in order to make one sale. Also called the conversion rate

True

Which of the following statements is true of the company section of a business plan? A. The overall description of the business financials forms the core part of this section. B. The product/service subsection mentions any protection through a proprietary technology. C. The company background subsection includes information about the pilot sales efforts and the floor plans. D. The tagline and elevator pitch of the business form the subsections of company description.

B. the product/service subsection mentions any protection through a proprietary technology.

Which of the following statements is true of a vision statement? A. An overview of a business and its immediate goals form a vision statement. B. A vision statement describes a firm's goal and its competitive advantages. C. A tagline or a slogan is a good way to present vision statements. D. A vision statement gives more detail about a business than an executive summary.

C. A tagline or a slogan is a good way to present vision statements.

Which of the following statements is not true of a product in the decline stage of the product life cycle? A. One reason for the decline of a product may come from the introduction of new technology. B. Some products' decline is permanent. C. Characteristics of the decline stage differ for each product. D. One reason for the decline of a product may be caused by a shift in consumer preferences.

C. Characteristics of the decline stage differ for each product

Which of the following is true of follow-up? A. It increases cognitive dissonance in customers. B. It is typically done only once after a sale. C. Electronic approaches to follow-up dramatically lower the cost of marketing efforts. D. It refers to business owners doing what they said they would do.

C. Electronic approaches to follow-up dramatically lower the cost of marketing efforts

Which of the following statements is true of the financial statements and reports found in a business plan? A. The financial statements include the balance sheet, cash flow, and expense accounts. B. The assumptions accompanying the financial statements are not as important as other components of the financials. C. For all types of business plans, a set of financial reports or projections are the central component of the Appendix. D. The assumptions are simply what you assume will happen in the first year.

C. For all types of business plans, a set of financial reports or projections are the central component of the Appendix.

Which of the following statements is true of a business plan presentation? A. Typically, a business plan presentation does not follow the content of a business plan. B. The content of a business plan presentation remains the same for different audiences. C. Handouts are mailed or distributed when the business plan changes frequently. D. Listeners check presentations for the content and not for the professionalism and passion of the presenter.

C. Handouts are mailed or distributed when the business plan changes frequently.

Serial entrepreneurs Steve Blank and Bob Dorf came up with a more inclusive approach than the standard marketing funnel. Which of the following is not one of the major goals of their new approach? A. Grow customers B. Get customers C. Identify customers D. Keep customers

C. Identify customers

There are two points in the presentation where your listeners will be giving you value. Which of the following are those two points? A. In the contacts you make and the experience you gain. B. In the questions they ask and the contacts you make. C. In the questions they ask and the feedback they give. D. In the feedback they give and the experience you gain.

C. In the questions they ask and the feedback they give.

Which of the following is an advantage of personal selling? A. It helps in easily establishing and promoting a favorable opinion by the media. B. It helps business owners in generating finance for their business. C. It allows business owners to find out the buyers' main concerns and address them. D. It increases business owners' publicity.

C. It allows business owners to find out the buyer's main concerns and address them.

Which of the following is true of customer retention? A. It focuses on increasing customers' cognitive dissonance. B. It focuses on satisfying prospective customers to make a sale successful. C. It handles problems that crop up after a sale. D. The CRM aspect of customer retention is based on short-term monitoring of customers.

C. It handles problems that crop up after a sale.

Which of the following statements is true of an executive summary? A. It is written in an informal style for investors and lawyers. B. It gives fewer details about the business than an elevator pitch. C. It is the single most widely distributed written description of a business. D. It is typically put at the end of a business plan.

C. It is the single most widely distributed written description of a business

Which of the following statements is true of marketing research? A. Marketing research can falls into one of three categories. B. Marketing research can verify the size of the potential market but does not tell you where potential customers are likely to shop. C. Marketing research can tell you what customers consider a reasonable price. D. Marketing research cannot verify the size of the potential market.

C. Marketing research can tell you what customers consider a reasonable price

What is the goal of appendixes? A. To inform customers and partners about a firm and its products B. To establish marketing strategies and identify major competitors C. To provide supporting information that helps detail the key selling points of a plan D. To explain the growth plan and competitive strategies

C. To provide supporting information that helps detail the key selling points of a plan

Which of the following statements is not true of target customers? A. Target customers are described in terms of demographics. B. What target customers are looking for should be based on discussions with potential customers. C. Hopefully the desires of your target customers closely match the value benefits your product offers. D. Usually you only have one type of target customer.

D. Usually you only have one type of target customer

Diversification is a strategy whose goal is growth, based on: A. selling more of the firm's product or service to the existing customer base. B. selling in areas or to groups previously not served by the business. C. selling existing customers a product or service they have never bought before. D. adding new products or services to the firm's existing collection of offerings.

D. adding new products or services to the firm's existing collection of offerings.

Your estimated number of prospective customers multiplied by your hit rate multiplied by the amount of each sale equals your sales forecast.

True