Small Bus & Entrep- Smartbook 11 & 12
What is a marketing plan?
A plan developed by a business to specify who the customers are and how they will be attracted to the company
Sean plans to start a fast-food joint aiming at students. He has a seed capital of $150,000. Which of the following locations should he ideally choose for the joint?
A university shopping center
What is the first step in developing a Web page?
Acquire a domain name.
Financial considerations in choosing a location for a new business owner include
All of the answers are correct.
Which of the following is an example of initial payments that a new small business has to make?
All of the answers are correct.
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
_______ are events established around a particular theme where businesses are allowed to set up booths in order to promote their goods or services.
trade shows
Many new business owners ______ the time it takes to begin operations, and their business is harmed.
underestimate
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
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
According to the video, Zappos' quirky corporate culture and overwhelming promotional success have led the company to
offer consulting services to other companies.
One approach to ______ is to value your products for what you believe they are worth to the market.
pricing
Mama's Hot Dogs Store is a leading fast-food restaurant that sells a variety of hot dogs. This restaurant is known for its impeccable customer service. It provides a playground for kids, maintains clean tables and restrooms, and provides free Wi-Fi. John, an entrepreneur, wants to start a fast-food restaurant and compete against Mama's Hot Dogs Store. Which of the following strategies would most probably help John to be more successful than Mama's Hot Dogs Store?
providing better quality of food and service
The critical part of using a mail-order catalog is identifying the
right customers
The methods employed to and the individuals who build and maintain relationships with customers are referred to as _____ _____.
sales management
According to Deming, if business owners allow quality goals to drive every action, the firm might make _____.
short-term decisions that are detrimental to the business's overall direction
A strategic alliance can help a firm _____.
develop more consistent, high-quality products
In the context of promotions, ________ is a term for all the efforts made to increase the visibility and placement of business information on the Web.
Search Engine Optimization (SEO)
Business incubators help build a new business's perceived legitimacy _____.
with the look of a more professional presentation as well as the endorsement provided by the operator
The ______ plan is developed by a business to specify who the best customers are and how they might be attracted to the company.
marketing
Which of the following caveats should entrepreneurs of new businesses keep in mind when establishing pricing?
-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.
Which of the following are characteristics that describe a strip shopping center?
-A one-story retail center -Located parallel to a well-traveled road
Identify the examples of an anchor store.
-A regional department retailer -A national home improvement chain
Which of the following are examples of virtually free promotions?
-Participating in a morning talk show -Presentations to the Kiwanis Club -Speaking at schools
Which of the following groups allow entrepreneurs to promote their business and help out the community in a way that targets their customer base?
Churches Schools
Which of the following pricing methods requires a firm to determine its costs and then add some level of profit?
Cost-plus pricing
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 statements is true of critical path analysis developed by entrepreneurs?
Entrepreneurs should modify the critical path analysis during the process of actually accomplishing the tasks.
Radio and television advertisements are qualitatively less difficult and financially less draining for entrepreneurs than the other promotional approaches.
False
The more an entrepreneur becomes involved in establishing a business and its operations, the less people will wish to visit with the entrepreneur about the business.
False
Which form of pure promotion may be useful if the entrepreneur can target a very specific geographic area and identify a likely customer profile?
Flyers
Which type of distribution channel typically does not have a fixed location but instead reaches customers through the mail?
Mail-order catalogs
______ is the first step in the entrepreneurial development process.
Planning
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 is the means by which businesses make their product or service known to potential customers?
Promotion
______ is the means by which businesses make their products or services known to potential customers.
Promotion
_____ promotions are strictly financial arrangements in which a business pays for some output.
Pure
Which type of promotion is a strictly financial arrangement in which a business pays for some output?
Pure promotion
Creating a critical path chart can help with which of the following new business start-up problems?
Taking up to two or three times longer for the business to generate revenues
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.
Why is the importance of a production management system exaggerated in the early stages of a new business?
The firm has only limited resources and strong time pressures to perform well at the outset.
Which of the following is true of the opening time of a business?
The timing of start is a function of the general environment and lifestyle issues.
Which of the following is NOT a legitimate reason to not pursue a business idea?
There is too much research that needs to be done.
Which of the following characteristics differentiate Internet customers?
They are not limited by geographic limits.
Which type of pure promotions is established around a particular theme where individuals are allowed to set up booths to promote their goods or services?
Trade shows
A potential entrepreneur should select the time to enter the market based on when it provides the greatest competitive advantage.
True
SevenStar Inc. hires a team of salespeople from another organization to sell its products. These salespeople come with a variety of expertise in identifying customers and selling products. The team works with SevenStar Inc. for one year, and in this time, it boosts sales figures for the company by almost 150 percent. In the context of sales management, the people hired by SevenStar Inc. are most likely
a contract sales force.
Web pages should:
be maintained so that information is timely and accurate.
The basic equipment necessary to start a business _____.
can be a quite expensive investment
According to Dr. W. Edwards Deming, business owners should _____.
change one thing at a time
In production management, the two most important elements are
charting and quality.
Before the entrepreneur can define a particular segment of the market that he is seeking to serve, the entrepreneur must:
define the geographic area.
Customer demand and market potential are two methods of _______.
estimating sales
Planning is the ______ step in the entrepreneurial development process.
first
Which of the following have well-established methods of operation?
franchises
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
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
When a business has gained legitimacy in the eyes of its stakeholders, it _____.
is considered to be a genuine business that will still be in operation next year
The decision not to start a business ______ legitimate and ______ made during the initial investigation.
is; is best
The term ______ describes a business that has been accepted by key stakeholders who believe that the firm is genuine.
legitimacy
A critical path chart should be updated ________ as entrepreneurs develop the plan for a business.
constantly
The higher the ______ appears to be, the faster the competitors will challenge the business.
profit
Locations can be evaluated by
the amount of traffic that they draw.
Which category of promotions encompasses the majority of promotional efforts targeted by the firm?
Pure promotions
Which of the following statements regarding quality is correct?
Quality is an assumed standard in most manufacturing and service industries.
Marketing efforts for a new business need to be as clearly stated as the business's mission statement.
True
New businesses are required to target the right geographic area and do so with the right marketing tool to be successful.
True
One important consideration related to all aspects of a business is the owner's investment in quality.
True
The key thing for an entrepreneur of a new business to remember as he or she designs signage is that "simple but distinctive" is the goal.
True
Which of the following statements about being an entrepreneur is correct?
True entrepreneurs put their research into action.
Marketing efforts that require little capital are called ________.
bootstrap marketing
According to the book, which of the following terms is used to discuss the acceptance by key stakeholders that your business is more than just a "start-up" and will be successful?
legitimacy
Which of the following terms is used by key stakeholders for acceptance of a company as a reputable ongoing business?
legitimacy
The new business owner should consider how quickly _____.
the business may outgrow the piece of equipment
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
Which of the following statements are true regarding mail-order catalog businesses?
-A useful means to identify customers is to buy a mailing list from a group with common interests. -Identifying customers is a critical part of the process. -Understanding and targeting the customer is very important.
Which of the following statements regarding the decision on whether to purchase new or used equipment are correct?
-Business owners should calculate the immediate cost and impact on cash flow and the impact on quality and long-term growth. -Business owners should consider how long before a particular piece of equipment will need to be replaced. -Business owners should compare the positives and negatives of each.
What are the steps involved in developing a newspaper advertisement?
-Designing the ad -Placing the ad
Which of the following statements about selecting a location are correct?
-Entrepreneurs should carefully consider matching their business with the type of location best suited. -Both the business's short- and long-term needs should be considered when looking for the right location. -Business locations can be graded by the type and amount of traffic that the locations draw.
Which of the following should entrepreneurs do when analyzing a strip shopping center location for their new business?
-Examine the area's customer demographics -Know the area's traffic patterns
Which of the following factors should an entrepreneur primarily consider when deciding the time to start a business?
-General market environment -Lifestyle issues -Cycles in purchasing or supply patterns
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 statements regarding purchasing new equipment are true?
-It guarantees that it is the most current available. -There could be significant delays if the equipment is back ordered. -Most often, the equipment is delivered directly to the new business.
Which of the following are the benefits of a critical path chart?
-It helps entrepreneurs visualize activities that must get done. -It can be customized to the level of detail the entrepreneur needs.
Which of the following statements are true regarding newspapers as a form of pure promotion?
-It is a standard method of promotion. -It involves paying for views by individuals who will never be customers. -It is a broad-based "shotgun" type of advertising.
Identify the purposes of a critical path chart.
-It shows which tasks can be handled concurrently. -It shows which tasks must be performed sequentially.
Which of the following show the ways in which a strip shopping center's location can affect its vacancy rate?
-Its location is often a driver of year-round sales. -A good location can bring additional customers to the center's stores.
Identify the steps that will help business owners manage their time during the start-up process.
-Keeping a notebook or electronic diary to track what must be accomplished that day -Prioritizing tasks by the level of importance
Which of the following are typical initial payments or fees that a new business may pay before starting operations?
-License and inspection fees -Initial advertising expenses -Security deposits
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 the two most important elements to production management systems?
-Production charting -Quality
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 should be followed by entrepreneurs when designing a radio or television advertisement?
-The advertisement must be sufficiently creative to draw customers to the business. -The advertisement must be designed to make an entrepreneur's points.
Which of the following are true regarding the design of a Web page?
-The content of the Web page must be timely and accurate. --Customer patience is very short when navigating a Web page. -The design should minimize the number of clicks for the clients to achieve what they wish to accomplish.
Which of the following are true statements about the cost-plus pricing method?
-The method requires the business to determine the total cost of a particular product. -The method requires the firm to determine the cost and add a level of profit.
Which of the following characteristics make Amazon.com a good example of a Web page distribution channel?
-The site allows customers to purchase, pay, and arrange for shipping. -The site provides the customer with valuable information. -The site allows customers to browse through thousands of products.
Which of the following statements are true about critical path charts?
-They are imperative for organizing the start-up process. -They are useful for keeping track of deadlines.
Which of the following statements are true regarding flyers?
-They can be printed cheaply. -They can be delivered with low-cost labor. -They can be changed frequently.
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.
Identify the ways in which business incubators help new businesses build legitimacy in the market.
-They provide the businesses with services such as receptionists, conference room facilities, and basic office equipment. -They offer the businesses office space at reduced rates.
Which of the following statements are true about production charts used by businesses?
-They take readers step by step through the processes necessary to provide customers with finished goods. -They start with an order being received by a firm and finish with the final delivery to the customer.
Which of the following statements are true regarding Web pages as distribution channels?
-Web pages display the products and ways to purchase the products. -Web pages provide a means to ask questions about the products. -Web pages are used as a means of promotion as well as distribution.
The marketing plan should include:
-developing promotion. -forecasting sales. -specifying the target customer. -developing a pricing policy. -identifying the market.
The marketing plan is developed by a business to specify:
-how customers might be attracted to the company. -who the best customers are.
The two methods, described in the text, for estimating sales without any history are:
-market potential -customer demand
Arrange the steps that are necessary for developing a Web page in the correct order starting from the first step to the third step.
1. acquire a domain name 2. purchase time on a server 3. design a web page
What percentage of businesses have a production process?
100
Many entrepreneurs learn that it takes a business ______ longer for their business to be able to generate revenues. This problem can be solved by a critical path chart.
2 or 3 times
It is common for a piece of new equipment to depreciate _____% or more during its first year.
50
Which distribution channel provides independent salespeople with a wide variety of experiences and contacts on a contract basis?
A contract sales force
_____ businesses have a production process.
All
Which of the following groups should be the focus of a business's marketing efforts?
All individuals likely to buy
A marketing plan should include
All of the answers are correct.
Which of the following is typical when purchasing new equipment instead of used equipment?
All of the answers are correct.
Which of the following questions should one try to answer after the target population has been identified?
All of the answers are correct.
Which of the following can be considered part of a company's promotional mix?
All of these are part of the promotional mix.
_____ are major retail stores, such as department stores.
Anchor stores
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
Which of the following is NOT a production process for a retail store?
Manufacturing goods for sale in the store
What type of promotion costs something but also has an element of community support?
Mixed-model promotion
Which organization would a mail-order business for hunting equipment consider buying a mailing list from?
National Rifle Association
What refers to the methods and means necessary to build and maintain relationships with customers?
Sales management
________ refers to the individuals who build and maintain relationships with customers.
Sales management
Which of the following organizations are typically in need of sponsors?
Schools Churches
Which of the following statements regarding creating processes are true?
Spending time developing production systems prior to starting up often results in financial savings.
An entrepreneur of a new business should match the type of business and the amount of money that he or she wishes to invest in the first years of operation.
True
_____ promotions are also referred to as bootstrap marketing, because they require little capital.
Virtually free
Which of the following would be considered pure promotions?
Web pages Radio Signs Trade shows
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
Which of the following gives a detailed understanding about a firm's method of operation and its sequence?
a production chart
Businesses with specialized equipment needs should _____.
accurately evaluate their equipment needs and understand that there is a wide choice in the type, age, and acquisition methods
The difference between someone with an idea and an entrepreneur is _____.
action
Entrepreneurs should typically locate their business based on the _____.
actual strategy of the business
Which of the following aspects needs to be considered while developing a marketing plan?
all of these are correct
Both suppliers and customers _____.
are concerned that the new business will be around in the future before they will consider conducting business with that firm
Entrepreneurs should _____.
be generous when estimating the time a task will take, because critical steps often take more time than originally planned
Why is social media such an effective marketing tool for Zappos?
because it encourages two-way conversations between customers and the company
Which of the following correctly depicts the typical cycle of the economy?
boom, slowdown, recession, growth, and boom
Virtually free promotions are also widely referred to as:
bootstrap marketing.
How does Zappos deliver exceptional service to customers directly on calls to the company?
by allowing customers to dictate how the call should go
Companies that have a(n) _____ _____ force provide independent salespeople with a wide variety of experiences and contacts on a contract basis.
contract sales
A small business determines the cost of providing a product or service and then adds a given percentage to it based on the level of profit determined to be appropriate. This is called
cost-plus pricing.
A major difficulty of operating a mail order catalog is the handling of
credit cards
A ______ chart shows how the activities necessary to start a business fit together and build on each other.
critical path
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 production management system defines the steps that are involved in moving _____.
from the product or service offering to the point where the business receives payment
Leasing equipment can ______ for a new business.
have the lowest initial cost
The main purpose of a critical path chart is to _____.
help focus an entrepreneur's efforts so they are not slowed down by some simple, unanticipated activity
An old marketing axiom about the key to business success is _____.
location, location, and location
A(n) _____ leader can become quite a burden if customers buy the leader without buying the other services or products of the company.
loss
Marshmallow Systems is a start-up equipment manufacturer, and its main product is a smartphone. The firm sells the smartphone at cost, that is, the price is exactly the actual cost of production. The firm's intention behind pricing the phone this way is to build its customer base. In the context of pricing models, the strategy used by Marshmallow Systems is the
loss leader strategy.
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
Business owners should put monitoring and ______ systems in place in order to deliver quality products or services.
measuring
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
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
Leasing equipment can be ______ expensive over the long term.
more
One of the ______ important steps in starting a business is identifying and either purchasing or leasing a business location.
most
A ______ management system defines the steps that are involved in moving from the product or service offering to the point where the business receives payment.
production
A chart that provides a detailed understanding of a firm's production process is called a(n) _____ _____.
production chart
One purpose of a critical path chart is to _____.
show which activities can occur concurrently and which must already be in place before the next activity can occur
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
A(n) ______ is when two or more firms join together to form a long-term, mutually beneficial relationship.
strategic alliance
Universal Studios, which made the Indiana Jones movies, ties up with Burger King to put advertisements for a movie on their drink cups. This is an example of a ________.
strategic alliance
A small retail center located along a major road is called a(n) ________.
strip shopping center
A small retail center typically located along a major road is called a _____.
strip shopping center
Your ability to obtain critical supplies may dictate your ________ time and ________ time.
supply:lead
According to the video, Zappos doesn't spend the majority of its promotional budget on "traditional" forms of advertising. Which of the following is considered a traditional form of advertising?
television
Business incubator tenants gain a perception of legitimacy due to having _____.
the endorsement of the incubator operator
Financing initial operations begins with a variety of initial payments and ends with _____.
the first completed sale
When inputs are not of high quality, _____.
the output has no chance to be high quality
Dr. W. Edwards Deming is considered the father of _____ in the United States.
the quality movement
According to Deming, companies should focus on _____.
the quality of a supplier's inputs
According to Dr. W. Edwards Deming, when it comes to creating quality goods and services, businesses should be guided by _____.
the scientific method
An owner who does not set ________ and ________ risks the possibility of losing funds and valuable resources.
timetables; responsibilities
