Business Part 2 Midterm

Customer Relationship Management

focuses on understanding customer as individuals

Data that helps you determine where your potential customers live and how far they will travel to do business with you is called

geographic data

A(n) ____________ strategy, or exit strategy, is the way an entrepreneur intend to extract his or her money from a business after it is operating successfully

harvest

A good questionnaire should

have easy to answer questions

The marketing section of your plan explains

how you plan to enter the market, who your prospective customers are, and your advantages over the competition

A business plan should

identify target customers,show how your business will earn a profit,and detail on who will run your business

Secondary data are found

in government publications , in news papers , and on the internet

Demographics are data that describes a group of people in terms of their

income

Competition by a business that makes only a small amount of money selling the same or similar products or services as another business is __________ competition

indirect

A small business selling specialty items will likely face ___________ from a large retailer

indirect competition

Psychographics are data that describes a group of people in terms of their

lifestyle habits, opinions, and personality traits

All of the following are strategies designed to maintains customer loyalty except

locating in a city center

Customer feedback is considered a type of

market research

Touch points are areas where a customer

might have contacts with a company

Information about necessary equipment for your business is included in the

operations section

Competitors should be analyzed concerning their

prices, locations, strengths and weaknesses

Information collected for the first time by observation or survey is _____ data

primary

The data collected in a telephone survey are

primary data

A financial statement based on projected revenues and expenses is called a(n)_________ financial statement

pro forma

Part of understanding your customers is knowing their demographics and _____________

psychographics

Competitive analysis does all of the following except

research a competitor's business plan

Market ________ are groups of customers that share common characteristics

segments

Trade associations provide all of the following to entrepreneurs except

small loans

A questionnaire or _______ can be read over the phone or mailed to respondents

survey

The appendix of a business plan might include

tax returns of the business owner, letters of recommendation, and a copy of required licenses

Which of the following is an independent agency of the federal government that helps Americans start,build, and grow businesses?

the SBA

Before lenders will loan money to a new business

they need to be convinced that the people running the business have the necessary skills to succeed

Which of the following is not a purpose of the business plan?

to describe the backgrounds and experience of your suppliers

T/F: A business plan provides financial information that shows how your business will earn a profit

true

Data that helps you determine how often potential customers use a particular service is called

use-based data

A business plan explains how your product or service

will be produced, will be sold, and is either new or better than existing products or services

T/F: A brief explanation of why you are asking for a loan and what you plan to do with the money is called an executive summary

False

T/F: A business plan will not help you think about all the aspects of your busines

False

T/F: A customer profile should include demographic data but not psycho graphic data

False

T/F: A few customer complaints are not important if your business has a better location and better prices than your competition

False

T/F: A financial statement based on projected revenues is called an informal finical statement

False

T/F: A handwritten business plan is acceptable if it is neat, well organized, and inviting to read

False

T/F: After your business is up and running, you will rarely use your business plan

False

T/F: Analyzing the strengths and weaknesses of your competition is a waste of resources

False

T/F: Business must have completely new products or services to convince investors that the idea is solid

False

T/F: Data that helps you determine how often potential customers use a particular service is called a customer profile

False

T/F: Demographics describe a group of people in terms of their tastes, opinions, personality traits, and life style habits

False

T/F: Entrepreneurs can hire experts from trade associations to help them prepare business plan

False

T/F: Entrepreneurs should avoid seeking advice from bankers or accountants because doing so will make them appear inexperienced and unqualified to run a business

False

T/F: Focus groups are quick interviews with target customers

False

T/F: How a business will get and keep customers is not a part of a business plan

False

T/F: Observation is the best research method if you want to find out people's opinions

False

T/F: One reason why small entrepreneurs can compete successfully with large retailers is because large retail chains carry more than one product line

False

T/F: Only corporations need to include a form of ownership section in a business plan

False

T/F: The Internet is not a trusted source of information on how to develop a business plan

False

T/F: The only person who should read a business plan is the owner and potential investors

False

T/F: Writing an effective business plan should only take 24 hours

False

T/F:A business plan does not give suppliers much confidence when it comes to extending credit

False

T/F:To gather information for market research, you can use either secondary data or primary data but not both

False

A business plan may help you secure ______ for your business

Financing

A(n) ____________ is a written document that describes all the steps necessary for opening and operating a successful business

Business plan

The _______ section of your business plan should describe your products and services and explain how they are different from those already on the market

Marketing

Which of the following is least likely to be helpful resource for your business plan?

National Geographic

The US ____________ is an independent agency of the federal government that was created to help Americans start, build,and grow businesses

S.B.A

The__________ is made up of thousands of retired executives who volunteer their time to provide entrepreneurs with real world advice and know-how

S.C.O.R.E

Identifying your _______ market helps you to reach the people you most want to sell to

Target

The customer you would most like to attract are referred to as your

Target market

Organizations made up of professionals in a specific industry are called _______

Trade associations

T/F: A good business plan includes sales projections for the short, medium, and long term and sets forth future business plans

True

T/F: A local Chamber of Commerce can provide information on trends affecting local businesses,local resources, and zoning and licensing infromation

True

T/F: A market segment is made up of people with common characteristics

True

T/F: A survey question should not be included if the response serves no specific purpose

True

T/F: An opportunity for success exists when a customer need is being unmet by a competitor

True

T/F: Collecting primary data can be expensive and time consuming

True

T/F: Copies of resumes help show that the owners are qualified to manage a business

True

T/F: Counselors from Small Business Development Centers and volunteers from SCORE can provide advice and workshops to help you develop your business plan

True

T/F: Describing how you came up with the idea for your business can help others understand how your business will operate

True

T/F: Entrepreneurs estimate demand for their products and services by identifying their target maket

True

T/F: Information collected for the very first time to fit a specific purpose is primary data

True

T/F: Large businesses often drive out smaller businesses by offering lower prices and more jobs

True

T/F: Lenders require a business plan before they will consider financing a business

True

T/F: Martial status, family size, and age are useful data for identifying your target market

True

T/F: Secondary data are found in already published sources

True

T/F: Secondary data resources and observation can help you learn about your direct competitors

True

T/F: The backgrounds and experience of the people who will be running the business help lenders make financing decisions

True

T/F: The financial section of your business plan should state how much money you need to borrow and how much you are investing in the businesss

True

T/F: The marketing section of your business plan should describe the location of your business

True

T/F: To convince customers to buy from you instead of your competition, you need information about your competitors

True

T/F: Understanding your customers allows you to meet customer demands

True

T/F: Writing a business plan can force entrepreneurs to think about their goals

True

T/F: Writing a business plan can help you identify problems you might encounter in the future

True

T/F:An undefined target market can ruin a business plan

True

T/F:Superior service, easy return policies,and frequent- buyer programs are some of the strategies you can use to maintains customer loyalty

True

Before they will consider financing a business, lenders require

a business plan

The personal financial statement of the owner would be included in the ________ to the business plan

appendix

Small businesses may have difficulty competing large retailers because large retailers

can keep lager quantities of products in stock

An opportunity exists for an entrepreneur when a customer need is going unmet by a(n)

competitor

A letter that introduces and explains an accompanying document is called a(n)

cover letter

A letter that introduces and explains an accompanying document or set of documents is called a(n)____________

cover letter

A description of the characteristics of the person or company that is likely to purchase a product or service is

customer profile

A description of the characteristics of the person or company that is likely to purchase a product or service is a(n)

customer profile

Without _______, companies cannot remain in business

customers

Finding hidden patterns and relationships in customer data is called

data mining

The last step in the market research process is _________

evaluation

A(n) ____________ is a short restatement of your business plan

executive summary