Week five quiz

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

False

Using a single reputable source is adequate when performing secondary analysis

False Explanation It is wise not to depend entirely on one source when performing secondary analysis.

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

False Explanation The core product is the most general description of a business, and the one that captures the smallest amount of what is special about a business.

The relation of product or company capabilities to customer pains and gains is the augmented product you offer your customers.

False Explanation The relation of product or company capabilities to customer pains and gains is the value proposition you offer your customer.

Distribution channels are important as they differ in terms of the number of intermediaries between you and the eventual customer.

True

Leasing, rather than building or buying, is an option with a considerably lower initial cash outlay and is often the only feasible choice for new businesses.

True

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

True

Which of the following can be exercised only when presented with specified shipping records?

a documentary draft

Catalogs, brochures, direct faxing, email, and daily coupon sites like Groupon are all examples of

direct mail.

Which of the following is not an example of a direct sales method?

word of mouth

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. Claude is thinking about starting an online business selling high-end men's leather accessories—wallets, boots, hats, and belts. When looking at market size during his secondary research, Claude is first interested in the TAM. Which statistic would help Claude determine the TAM for his business?

49.2 percent of the U.S. population is male.

Which of the following answer options is an example of a direct mail approach?

A new dentist in town sends out a letter to all town residents introducing himself and announcing the opening of his practice. Explanation The letter sent to all town members from the dentist is a form of direct mail, in this case a form of sales letter introducing himself and announcing the opening of his practice.

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. Which of the following statements is not true of a stand-alone marketing plan?

A stand-alone marketing plan may take time to prepare, but once it is written it can be used for many years.

Which of the following statements is true of pricing strategy?

An entrepreneur's first goal in pricing is to set the price as high as they think they can. Explanation An entrepreneur's first goal in pricing is to set the price as high as they think they can.

The relation of product or company capabilities to customer pains and gains is the augmented product you offer your customers. Group starts

False Explanation The relation of product or company capabilities to customer pains and gains is the value proposition you offer your customer.

Skimming is setting a price above that of the competition to indicate a higher quality.

False Explanation This is the definition for premium pricing, not skimming.

________ uses creative and relatively inexpensive ways such as door-knob hangers, T-shirts, balloons, flyers under windshield wipers to reach customers.

Guerilla marketing

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. Which of the following statements is true of marketing research?

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

Which of the following is true of business locations?

Target market customers are essential factors for selecting business locations. Explanation Target market customers, the type of business, skilled labor, proximity of raw materials and competitors are some of the other essential factors to consider while selecting business locations.

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. Which of the following statements is not true of surveying questions?

The most expensive method of obtaining survey answers is by mail. Explanation In person tends to be the most expensive method of obtaining survey answers, but mail has its limitations too.

Which of the following statements is true of making mail order ads work?

Unless your company name is famous, leave it out of the headline Explanation The only true statement here is that unless your company name is famous, it should not be included in the headline of the ad.

You have identified three catalogs you believe your product would fit in nicely. Now, the key person you will be trying to find—by phone, mail, or online—is called

a buyer

Which of the following business location options requires you giving them a stake in your company?

accelerator Explanation Accelerators generally offer cash investment, space, mentoring, and free or low-cost access to professionals like lawyers and accountants. In return, they get a stake in your business.

Which of the following has low overhead and unlimited shelf space and thereby can afford to take on an unknown firm or product?

an e-tailer

Sales promotion techniques used to introduce your brand to customers without an immediate call to purchase are ________ techniques.

contest

Using a single reputable source is adequate when performing secondary analysis.

false Explanation It is wise not to depend entirely on one source when performing secondary analysis.

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. 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 Marcie is playing the customer role of

decision maker

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. A customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained is the

decision maker.

In ________, products are sold to foreign buyers or distributors without any intermediaries.

direct exporting

In ________, an advertisement is placed in a magazine, newspaper, radio, billboard, or television and includes an order blank with a phone number, e-mail, or snail-mail address with the intent of having customers place immediate orders.

direct response advertising

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. A customer role that describes the person who eventually makes actual use of a product or service in their personal or work life is the

end user

The research and development team of Leonide Inc. has generated five different product ideas. All five ideas are being rated against each other on their characteristics such as product uniqueness, idea profitability, protectable intellectual property, and product team quality. Based on their ranking in this stage, only three ideas will make it to the immediate next step which will be the stage of

feasibility study.

Which of the following layouts is more typically found in upscale department stores?

free-form layout

The first time Jena visited Blue Corals Inn, a restaurant in her neighborhood, she was delighted with the food and service quality. However, the next time she dined at the same place, the restaurant's food and service seemed to have lost its quality. This scenario best illustrates the ________ characteristic of services.

heterogeneity

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. Tony is a wise business man and has knowledgeable staff helping him. At what stage of the new product development process should Tony place his inventions?

idea evaluation

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

introductory

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. Which of the following is not one of the three most important numbers for a marketing plan?

long-term value

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. A marketing concept that refers to the revenue (or profit) generated by one customer over their lifetime dealing with one firm is their

long-term value.

Neil places an advertisement for his pastry shop, Neil's Pastries, in the local newspaper. He includes his phone number, website, email address, and postal address in the advertisement so that prospective customers have the option to contact him in the way they feel most comfortable. Neil is a

multichannel marketer. Explanation If you include in your classified ad your phone number, your website, and your email address, then you are a multichannel marketer. One customer may pick up the phone. Others will email or browse your website. This simply allows your customers to contact you in the way they feel most comfortable.

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. While conducting research for a new product, the Kitchen Widget, Cheryl and her employees observed current customers and competitors, interviewed and surveyed potential customers. Cheryl and her employees were conducting

primary research.

When segmenting your market, ________ segmentation looks at what drives the person, for example hobbies, cultural interests, or health concerns.

psychographic

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. A customer role that describes an individual or institution that pays for or obtains a product or service is the

purchaser.

Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. 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 Marcie is playing the customer role of

purchaser.

A(n) ________ is a middleman business which sells to consumers or end-users of a product, typically in single or small quantities.

retailer

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. Mike worked as an employee in an automotive repair shop. Many of his repairs were fixing botched stereo installations. Mike learned he was very good at correctly installing car stereo systems. He also learned that the chain stores that sold the car stereo systems, and offered "free" installation, were not good at installing their own stereos. Mike began to think about opening his own stereo installation specialty shop. He listened to his customer's complaints and decided there was a need in his area for just this type of service. This is an example of

the customer development process.

In microinventories, you try to buy your product or prepare your service after

you get an order.

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. Laura developed an innovative handy cleaning tool. She perfected and then replicated the tool several times over, providing gifts of the tool to all of her friends. They made great birthday or special occasion gifts. Eventually, Laura started her own successful company producing her innovative cleaning tool idea. This is an example of

the product development process.

Scenario: Kitchen Helpers Tony is a whiz in the kitchen. Not only does he make great food but he has invented about a dozen time-saving kitchen gadgets along the way. These are all home-made inventions made either by using new materials or by modifying existing gadgets to work in new, better ways. He has made duplicate gadgets for friends and some say they use the gadget every day. Tony quit his construction job to concentrate on his kitchen gadgets—he started his own company, Kitchen Helpers. When comparing a stand-alone marketing plan to the marketing section of the business plan, evaluation and control is included in

the stand-alone plan. Explanation Evaluation and control information is included in the stand-alone marketing plan but not in the marketing section of the business plan.