Entrepreneurship Chapter 11
Which of the following aspects needs to be considered while developing a marketing plan?
1) determining sales management procedures 2) specifying the ideal and general target customer 3) identifying your market 4) all of these
A small business can promote itself by sponsoring
1) school activities 2) sports activities 3) fundraising activities 4) all of these
Promotion is the means by which businesses make their product or service known to potential customers. Which of the following is the most commonly used form of promotion
1) viewed on the internet 2) heard on a radio station 3) seen on television 4) all of these
Virtually free promotions are also known as bootstrap marketing
True
Virtually free promotions have very limited financial cost, but have some time commitment from individuals in the firm
True
When an owner calculates the floor cost of a product, he or she excludes marketing costs from the calculation
True
When an owner designs signage for a business, the goal should be for a simple but distinctive sign
True
When pricing a product, a price that eneds in 99 cents is perceived as a value ot the custoemr
True
These types of promotions have very limited financial costs, but have time commitment requirements from individuals in the firm.
Virtually free
Forecasting sales requires _______ to make attainable goals
Data history
A cost leader is a product or service that is sold at a non-operating loss
False
Small businesses must use their resources efficiently, thus distinguishing them from large businesses
True
A marketing effort that requires little capital
Bootstrap marketing
A marketing plan should include
1) Identifying your market 2) pricing policy 3) developing promotions 4) all of these
Web pages can be used as a
1) means of promotion 2) distribution channel 3) both of these
This is when a company hires independent salespeople with a variety of experiences and contacts on a CONTRACT basis
CONTRACT sales force
List and define the three basic types of promotion
Coupons/discounts-money off your purchase Free samples-try before you buy Recognition programs-frequent buyer incentives (buy 10 pizzas, get the 11th free)
A major difficulty of operating a mail order catalog is the handling of
Credit cards
The critical part of using a mail order catalog is identifying your
Customers
This distributor is a sales representative for a variety of products
Independent distributor
Promotion of a product or service is considered
Marketing
John needs to know who his customers are and how to attract them. He needs a(n):
Marketing Plan
Marketing efforts need to be based on the
Mission statement
Define pure promotions and list five examples
Pure promotion is strictly a financial arrangement in which a company pays for an output 1) radio ad 2) magazine ad 3) billboard 4) TV ad 5) newspaper ad 6) email campaign
Strictly financial agreements in which a business pays for some outputs, such as TV advertisements
Pure promotions
Events established around a particular theme where businesses are allowed to set up booths in order to promote their goods or services
Trade shows
A contract sales force is independent sales people with a wide range of experiences and contacts. These sales people are employees of a company on a contract basis.
True
A marketing plan should identify a company's market and determine a pricing policy
True
A sales management system starts with the hiring of a sales force
True
Due to credit card fraud, businesses have to add some percentage to the price of the product/service
True
A small business determines the cost of providing a product or service, and then adds some level of profit determined to be appropriate. This is called
cost-plus pricing method
Dennis determines that a new blinking slinky will cost him $3.50; he adds 20 percent to make the new cost $4.20. This pricing is called cost-plus pricing
True
Independent representatives who are not employees of a firm can be used to sell industrial products
True
John needs to know who his customers are and how they will be attracted to his business. he will create a marketing plan to accomplish this
True
Pricing a service requires a firm to identify and include the cost of overhead expenses and the cost for the owner's experience
True
Pure promotion is strictly a financial arrangement in which a company pays for an output like radio advertisements
True
Pricing floor is the break-even point or the lowest amount that can be charged for a product or service while still making a minimum profit
True
A small business owner providing a service should recognize that pricing is a valuable tool to __________ customer flow.
Balance
Sales management refers to how the whole sales process is managed
True
A micro method of forecasting sales is to take the average sale and multiply it by the number of customers who will make purchases from business during the day
False
A sales relationship is the definition of the individuals who build and maintain relationships with customers
False
Forecasting sales is not guesswork if the sales manager knows who the customers are
False
Mixed model promotions cross television and radio ads for the product
False
Promotion is the means that a small business makes the product/service available to potential customers
False
The use of a mission statement ensures that a firm is focused and will seek to be all things to all people
False
Using the cost-plus pricing method, a firm will compare their product/service with similar products already on the market in order to determine what price to charge
False
What has been trouble to the mail order business; owners need to include the cost of this in the pricing of their products.
Fraud
These types of promotions cost something but also have an element of community support.
Mixed model
Pricing something that ends in 99 cents makes a big difference in the buying of a product. This is because of a consumer's
Perception
What is a marketing plan?
Plan developed by a business to specify who the CUSTOMERS are and how they will be attracted to the company
This refers to the individuals who build and maintain relationships with customers
Sales management
What is the cost-plus pricing method?
The firm determines its cost and then adds some level of profit it determines to be appropriate