Chapter 11 Connect

Which distribution channel provides independent salespeople with a wide variety of experiences and contacts on a contract basis?

A contract sales force

In an industry such as toy manufacturing, there is an annual ___ ___ in which all toy manufacturers display their products to sell to retailers.

trade show

When using the customer demand method to forecast sales, a business's founder should estimate how many individuals it will take to break even, make X profit, and so on. true or false

true

Promotions that have very limited financial cost but have time-commitment requirements from individuals in a new business are called ___ ___, promotions.

virtually free

Market potential methods used by a firm to forecast sales take a macro look at the market and estimate potential sales for the firm mainly based on the _____.

number of prospective consumers in the target area

Which type of promotion is a strictly financial arrangement in which a business pays for some output?

pure promotion

Which category of promotions encompasses the majority of promotional efforts targeted by the firm?

pure promotions

What refers to the methods and means necessary to build and maintain relationships with customers?

sales management

Which of the following are characteristics of virtually free promotions available to a new business?

A time-commitment requirement from someone in the firm A very limited financial cost

The marketing plan should include:

forecasting sales. identifying the market. developing a pricing policy. specifying the target customer. developing promotion.

A ______ was considered a unique competitive advantage just 10 years ago; today, it is an expectation.

web page

All companies must have a well-designed ______.

web page

Which type of distribution channel can be used by businesses that focus purely on Internet sales or by those that use it as a supplement to the other marketing efforts of the firm?

web pages

Which of the following are true about the customer demand method used by a business to forecast sales?

It takes a micro look at the market. It primarily estimates how many customers the business can handle given its location, staffing, and other details.

One approach to ______ is to value your products for what you believe they are worth to the market.

pricing

What is the break-even point or the lowest amount that can be charged for a product or service while still making a minimal profit?

pricing floor

What are the resources available to aid you in developing a marketing plan?

Consulting companies Business courses

Which of the following should an entrepreneur typically consider when determining the desired profit margin in cost-plus pricing?

How competitors price their products How much overhead the business has

Which of the following methods is most effective in defining a geographic market?

Make a reasonable estimate of what can be done with the least amount of resources to reach the most people.

(SEO) is a term for all the efforts made by a business to increase the visibility and placement of business information and is one of the best promotional approaches available.

Search Engine Optimization

What are the drawbacks of hiring a consultant at start-up to develop a marketing plan?

The owners lose valuable information by not performing the research themselves. Expenses can be very high.

The most common approach that entrepreneurs of new businesses use to determine the "plus" aspect of cost-plus pricing is adding _____.

a given percentage to the cost basis for the business

Companies that have a(n) ___ ___ force provide independent salespeople with a wide variety of experiences and contacts on a contract basis.

contract sales

The higher the ______ appears to be, the faster the competitors will challenge the business.

higher

___ promotions are strictly financial arrangements in which a business pays for some output.

pure

The methods employed to and the individuals who build and maintain relationships with customers are referred to as ___ ___

sales management

Promotions that have very limited financial cost but have time-commitment requirements from individuals in a new business are called ___ ___ promotions.

virtually free

Which of the following pricing methods requires a firm to determine its costs and then add some level of profit?

Cost-plus pricing

What type of promotion costs something but also has an element of community support?

Mixed-model promotion

Which of the following statements are true regarding promotion?

Promotion must be targeted to the market and customer groups within the industry. Promotional efforts should reach specific target markets efficiently.

Which of the following would be considered pure promotions?

Radio Web pages Signs Trade shows

Samuel, an entrepreneur, plans to promote his newly opened fast-food joint located in a city. Identify the effective marketing activities that he should ideally pursue to reach the potential customers within the city.

Sponsoring events in the city Advertising on location-specific apps in the city

Which of the following statements are true regarding a new business's marketing efforts.

The entrepreneur should concentrate its efforts on reaching only those individuals most likely to buy from the business.

Which of the following are true statements about the cost-plus pricing method?

The method requires the firm to determine the cost and add a level of profit. The method requires the business to determine the total cost of a particular product.

Customer demand and market potential are two methods of _______.

estimating sales

When establishing pricing, an entrepreneur of a new business should typically refrain from _____.

including small increments of money regardless of the exact percentage of margin desired

As the number of competitors in an area ______, the distance customers are willing to travel will ______.

increases; decreases

Agents for a variety of products for a number of companies in a given domain who try to sell those products are called _____.

independent representatives

Which type of distribution channel utilizes a publication that displays a consistent set of products and provides a means to order those products typically over the phone?

mail-order catalogs

The marketing plan is developed by a business to specify:

who the best customers are. how customers might be attracted to the company.

Which of the following groups should be the focus of a business's marketing efforts?

All individuals likely to buy

What is the next step in the process once the geographic area has been defined?

Define the particular segment of the market to be served.

Which of the following caveats should entrepreneurs of new businesses keep in mind when establishing pricing?

Entrepreneurs should decide if they want to offer a quantity discount based on the nature of the business they establish. A new business should offer a greater value for the money charged to build a customer base than established businesses.

Identify the possible ways to estimate the likely percentage of potential consumers that will be attracted to a business as part of the market potential method to forecast sales.

Looking at the direct rival firms in the target area Looking at close competitors in another, similar area

Which of the following are true statements about independent representatives as a distribution channel?

They can be used to sell industrial products. They agree to sell or distribute each of the products for a percentage of the sales price.

Virtually free promotions are also widely referred to as:

bootstrap marketing.

The two methods, described in the text, for estimating sales without any history are:

customer demand market potential

A pricing __ is a break-even point or the lowest amount that can be charged for a product and still make a minimal profit.

floor

A(n) ___ leader can become quite a burden if customers buy the leader without buying the other services or products of the company.

loss

When a business sells a product at a loss to simply get customers to patronize the business, it is referred to as a _______.

loss leader

Because of the complexity associated with defining the best customer, there are consulting companies and business courses available to aid entrepreneurs in developing their ___ plans.

marketing

Identifying the target customer, determining a pricing policy that is in line with the strategy of the firm, and developing promotion are elements associated with the ______ plan.

marketing

The ______ plan is developed by a business to specify who the best customers are and how they might be attracted to the company.

marketing

Focusing the business's marketing efforts on a(n) ______ helps a new business market the firm's products to those customers that are most likely to buy its products at the price desired.

mission statement

A(n) ___ - ___ promotion costs something but also has an element of community support.

mixed-model