CHAPTER 11 - MARKETING

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 caveats should entrepreneurs of new businesses remember when establishing pricing? (Check all that apply.)

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

Arrange the steps that are necessary for developing a Web page in the correct order starting from the first step to the third step.

- Acquire a domain name - Purchase time on a server - Design a Web page

What are 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? (Check all that apply.)

- By looking at close competitors in another, similar area - By looking at the direct rival firms in the target area

Which of the following statements are true regarding flyers? (Check all that apply.)

- Changed frequently - Delivered with low-cost labor - Printed cheaply

Which of the following groups allow entrepreneurs to promote their business and help out the community in a way that targets their customer base? (Check all that apply.)

- Churches - Schools

Which of the following should be followed by entrepreneurs when designing a radio or television advertisement? (Check all that apply.)

- Designed to make an entrepreneur's points - Sufficiently creative to draw customers to the business

The marketing plan should include: (Check all that apply.)

- Developing promotion - Forecasting sales - Specifying the target customer - Identifying the market - Developing a pricing policy

What are the drawbacks of hiring a consultant at start-up to develop a marketing plan? (Check all that apply.)

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

Why do customers look to Web pages? (Check all that apply.)

- Information about products and services - Basic company information - Ability to purchase online

Which of the following statements are true regarding newspapers as a form of pure promotion? (Check all that apply.)

- It involves paying for views by individuals who will never be customers - It is a broad-based "shotgun" type of advertising - It is a standard method of promotion

Which of the following are true of the customer demand method used by a business to forecast sales? (Check all that apply.)

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

The two methods, described in the text, for estimating sales without any history are: (Check all that apply.)

- Market potential - Customer demand

Which of the following are examples of virtually free promotions? (Check all that apply.)

- Presentations to the Kiwanis Club - Participating in a morning talk show - Speaking at schools

Which of the following statements are true regarding Web pages as distribution channels? (Check all that apply.)

- Provide a means to ask questions about the products - Display the products and ways to purchase the products - Are used as a means of promotion as well as distribution

Which of the following organizations are typically in need of sponsors? (Check all that apply.)

- Schools - Churches

Samuel, an entrepreneur, plans to promote his newly opened fast-food joint located in a city. Identify the effective marketing activities that he can pursue to reach potential customers in the city. (Check all that apply.)

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

Identify the true statements about independent sales agents as a distribution channel. (Check all that apply.)

- 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

Which of the following would be considered pure promotions? (Check all that apply.)

- Web pages - Trade shows - Signs - Radio

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

A contract sales force

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

All individuals likely to buy

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

Cost-plus

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

True or False: Radio and television advertisements are qualitatively less difficult and financially less draining for entrepreneurs than the other promotional approaches.

False

Katelyn is in the process of identifying her target market for her new salon. She has realized that her target market is spread out across three separate zip codes. Katelyn has found that a given zip code covers 85% of the market she plans to target. The other 15% of her target geographic area is split between the two other zip codes. The cost of addressing the two smaller zip codes exceeds the addressing cost of the 85% zip code area. In attempting to identify her market, what is the most reasonable thing for Katelyn to do this stage?

Limit the target market to the zip code producing 85% of the target

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

Mail-order catalogs

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.

In the context of pricing,

Products - Entrepreneurs have a potential price floor based primarily on costs Services - Entrepreneurs have time as the primary operational cost, and the principal value inputs are their education and experience

What is the means by which businesses make their product or service known to potential customers?

Promotion

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

Pure

______ ______ ______ (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

Which of the following characteristics differentiate internet customers?

They are not limited by geographic limits.

______ promotions are also referred to as bootstrap marketing, because they require little capital.

Virtually free

All companies must have a well-designed ______.

Web page

The most common approach that entrepreneurs use to determine the "plus" aspect of cost-plus pricing is ______.

adding a given percentage to the cost basis for the business

Web pages should:

be maintained so that information is timely and accurate

For price-sensitive customers, as the price goes ______ customer flow goes up.

down

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

When establishing pricing, an entrepreneur of a new business should typically avoid ______.

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

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

independent sales agents

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

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

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

pricing

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

sales management

Google, Yahoo!, Bing, and Firefox are examples of ______.

search engine companies

A ______ is an oft-overlooked means of advertising a company that comes on a building or on the street, and on the letterhead, checks, or business cards of the company.

sign

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