Exam 2 - Chapter 10

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?

Identify customers

Business owners can figure how to better target ads or promotions to particular types of customers if:

They link sales and purchase basis to the type of customer.

What is a characteristic feature of sales packets?

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

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

True (T)

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 (T)

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

True (T)

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 (T)

_____ is a strategy whose goal is growth, based on selling in areas or to groups previously not served by the business.

Market expansion

The steps in Blank and Dorf's "Get Customers" funnel are awareness, interest, consideration, and purchase. Here, consideration refers to:

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

Trendiness refers to:

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

Diversification is a strategy whose goal is growth, based on:

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

What term refers to a concept in public importance which alludes to the degree to which the issue is immediate in its impact?

Currency

_____ is a type of CRM report that segments by customer or customer group on purchases or dates of purchase.

Customer vector

What is true of follow-up?

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

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

F (False)

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

F (False)

Advertising costs are usually based on cost per hundred thousand.

False (F)

Brochures and flyers are types of promotional novelties.

False (F)

Personal selling decreases business owners' flexibility in their presentation.

False (F)

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

False (F)

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

False (F)

_____ refers to business owners doing what they said they would do.

Follow-through

What statement is true of sales forecasting?

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

What is an advantage of personal selling?

It allows business owners to find out the buyers' main concerns and address them.

What is true of customer retention?

It handles problems that crop up after a sale.

_____ is a strategy whose goal is growth, based on selling more of the firm's product or service to the existing customer base.

Market penetration

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

T (True)

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

T (True)

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

T (True)