Entrepreneurship Chapter 11

Which of the following aspects needs to be considered while developing a marketing plan?

1) determining sales management procedures 2) specifying the ideal and general target customer 3) identifying your market 4) all of these

A small business can promote itself by sponsoring

1) school activities 2) sports activities 3) fundraising activities 4) all of these

Promotion is the means by which businesses make their product or service known to potential customers. Which of the following is the most commonly used form of promotion

1) viewed on the internet 2) heard on a radio station 3) seen on television 4) all of these

Virtually free promotions are also known as bootstrap marketing

True

Virtually free promotions have very limited financial cost, but have some time commitment from individuals in the firm

True

When an owner calculates the floor cost of a product, he or she excludes marketing costs from the calculation

True

When an owner designs signage for a business, the goal should be for a simple but distinctive sign

True

When pricing a product, a price that eneds in 99 cents is perceived as a value ot the custoemr

True

These types of promotions have very limited financial costs, but have time commitment requirements from individuals in the firm.

Virtually free

Forecasting sales requires _______ to make attainable goals

Data history

A cost leader is a product or service that is sold at a non-operating loss

False

Small businesses must use their resources efficiently, thus distinguishing them from large businesses

True

A marketing effort that requires little capital

Bootstrap marketing

A marketing plan should include

1) Identifying your market 2) pricing policy 3) developing promotions 4) all of these

Web pages can be used as a

1) means of promotion 2) distribution channel 3) both of these

This is when a company hires independent salespeople with a variety of experiences and contacts on a CONTRACT basis

CONTRACT sales force

List and define the three basic types of promotion

Coupons/discounts-money off your purchase Free samples-try before you buy Recognition programs-frequent buyer incentives (buy 10 pizzas, get the 11th free)

A major difficulty of operating a mail order catalog is the handling of

Credit cards

The critical part of using a mail order catalog is identifying your

Customers

This distributor is a sales representative for a variety of products

Independent distributor

Promotion of a product or service is considered

Marketing

John needs to know who his customers are and how to attract them. He needs a(n):

Marketing Plan

Marketing efforts need to be based on the

Mission statement

Define pure promotions and list five examples

Pure promotion is strictly a financial arrangement in which a company pays for an output 1) radio ad 2) magazine ad 3) billboard 4) TV ad 5) newspaper ad 6) email campaign

Strictly financial agreements in which a business pays for some outputs, such as TV advertisements

Pure promotions

Events established around a particular theme where businesses are allowed to set up booths in order to promote their goods or services

Trade shows

A contract sales force is independent sales people with a wide range of experiences and contacts. These sales people are employees of a company on a contract basis.

True

A marketing plan should identify a company's market and determine a pricing policy

True

A sales management system starts with the hiring of a sales force

True

Due to credit card fraud, businesses have to add some percentage to the price of the product/service

True

A small business determines the cost of providing a product or service, and then adds some level of profit determined to be appropriate. This is called

cost-plus pricing method

Dennis determines that a new blinking slinky will cost him $3.50; he adds 20 percent to make the new cost $4.20. This pricing is called cost-plus pricing

True

Independent representatives who are not employees of a firm can be used to sell industrial products

True

John needs to know who his customers are and how they will be attracted to his business. he will create a marketing plan to accomplish this

True

Pricing a service requires a firm to identify and include the cost of overhead expenses and the cost for the owner's experience

True

Pure promotion is strictly a financial arrangement in which a company pays for an output like radio advertisements

True

Pricing floor is the break-even point or the lowest amount that can be charged for a product or service while still making a minimum profit

True

A small business owner providing a service should recognize that pricing is a valuable tool to __________ customer flow.

Balance

Sales management refers to how the whole sales process is managed

True

A micro method of forecasting sales is to take the average sale and multiply it by the number of customers who will make purchases from business during the day

False

A sales relationship is the definition of the individuals who build and maintain relationships with customers

False

Forecasting sales is not guesswork if the sales manager knows who the customers are

False

Mixed model promotions cross television and radio ads for the product

False

Promotion is the means that a small business makes the product/service available to potential customers

False

The use of a mission statement ensures that a firm is focused and will seek to be all things to all people

False

Using the cost-plus pricing method, a firm will compare their product/service with similar products already on the market in order to determine what price to charge

False

What has been trouble to the mail order business; owners need to include the cost of this in the pricing of their products.

Fraud

These types of promotions cost something but also have an element of community support.

Mixed model

Pricing something that ends in 99 cents makes a big difference in the buying of a product. This is because of a consumer's

Perception

What is a marketing plan?

Plan developed by a business to specify who the CUSTOMERS are and how they will be attracted to the company

This refers to the individuals who build and maintain relationships with customers

Sales management

What is the cost-plus pricing method?

The firm determines its cost and then adds some level of profit it determines to be appropriate