BUSMHR 2500 Chapter 8 The Marketing Plan

The marketing plan of a new venture primarily establishes the ways in which an entrepreneur will _____.

effectively compete and operate in the marketplace

A difference between a business-to-business market and a consumer market is that advertising and promotion for the business-to-business market _____.

include more direct sales and trade shows

the least successful ventures focus on

general economic and demographic trends

Shane plans to start a venture that sells customized furniture. Before starting the venture, he conducts market research. Which of the following steps should be taken by Shane as part of the research?

He should determine the most appropriate mode of selling the furniture.

Jason is a manufacturing representative of Share Notes Inc., a company that manufactures notebooks, and is a supplier of office stationery for different offices in his city. He adds Share Notes Inc.'s notebooks as a complement to other products that he supplies. Which of the following is true about Jason in this scenario?

He would be paid a commission only when a notebook is sold.

Which of the following should be determined by an entrepreneur as part of the first step of marketing research? (Check all that apply.)

How much would prospective customers be ready to pay for the entrepreneur's product or service? Where would prospective customers prefer to buy the entrepreneur's product or service?

Which of the following is considered the primary data in the marketing research for a new venture?

Information that is new

_____ is the most common approach used to gather market information for a new venture.

Interviewing

What is the implication of knowing the target market for a product or service?

It is the basis for deciding the appropriate marketing action strategy that will effectively meet the market's needs.

Identify the true statements about the marketing plan of a new venture. (Check all that apply.)

It should be integrated with the venture's more long-term strategic plan. It should be created annually, evaluating the goals and objectives for the next year.

Identify the requirements for a firm's marketing plan to be effective. (Check all that apply.)

It should be supported by facts and valid assumptions. It should provide a strategy for achieving the firm's mission or goal.

A questionnaire is a data collection instrument used by an entrepreneur to gather primary data in the marketing research for a new venture. Identify a true statement about a questionnaire.

It should have questions specifically created to achieve objectives the entrepreneur listed earlier.

A description of past and present business achievements of a new venture is called a(n) __ __. It is part of preparing a marketing plan for a new venture.

Situation analysis

Which of the following represents the definition of marketing strategy and action plan?

Specific activities outlined to meet a venture's business plan goals and objectives

Which of the following is true about the definition of a product in a marketing plan?

The definition of a product is more than its physical components.

Which of the following is true about the definition of a product or service in the marketing plan?

The product or service definition may consider more than the physical characteristics.

What is the implication of the upside-down pyramid approach to industry analysis by an entrepreneur of a new venture?

The upside-down pyramid approach helps the entrepreneur understand competitors' strengths and weaknesses.

Identify the true statements about middlemen in the context of the distribution of a product or service in the market. (Check all that apply.)

They are able to provide functions such as storage, delivery, a sales staff, promotion or advertising, and maintenance. They possess important experience in the marketplace that can help an entrepreneur build his or her marketing strategy.

Which of the following are true about manufacturers' representatives used by new ventures for product distribution? (Check all that apply.)

They can be used to market to the consumer or household market. Their role is to act on behalf of noncompeting companies that will share the cost of their services.

In the context of the distribution of a product or service in the market, which of the following is true about manufacturers' representatives who help an entrepreneur reach retailers or end users?

They do not take title or physical possession of a product or service.

Identify a true statement about decisions on the marketing strategy and action plan of a new venture.

They reflect on the marketing mix variables.

Raj, an entrepreneur, prepares a marketing plan for his new venture. As part of preparing the plan, Raj seeks to identify candidate communities that would match the user profile. In this situation, which of the following tools should be used by Raj as a logical starting place that reveals demographic data on income, ages of children, and employment?

Town census research

True or false: All marketing goals and objectives of a new venture must be quantified.

false

Identify the reasons why business-to-business marketing strategy typically involves a more direct channel of distribution than does a consumer market. (Check all that apply.)

Because of the volume of each transaction Because of the need to relate product knowledge to business buyers

Ryan, an entrepreneur, plans to develop a marketing plan for his new venture. As part of the process, he divides the market into smaller groups based on buying situations. What are the factors he should consider in this process of dividing the market? (Check all that apply.)

Benefits desired by customers Usage by customers

In the context of the upside-down pyramid approach to industry analysis, how should an entrepreneur of a new venture begin competitor analysis?

By documenting the present strategy of each primary competitor

Which of the following is a factor of the marketing mix that provides utility to the customer?

Distribution

Which of the following are conducted as part of marketing research for a new venture? (Check all that apply.)

Estimating the size of the potential market Determining who are the prospective buyers for the product

True or false: Focus groups are a more formal method for gathering in-depth information as part of the marketing research for a new venture than questionnaires.

False

True or false: Market segmentation prevents an entrepreneur from responding to the needs of homogeneous consumers.

False

A true statement about a focus group, which is used to gather primary data as part of the marketing research for a new venture, is that it _____.

is a group of 10 to 12 potential customers who are invited to engage in a discussion relating to an entrepreneur's research objectives

Roger, an entrepreneur, plans to segment and target customers of his firm as part of developing a marketing plan. Arrange the steps he should take to segment and target the customers in the correct order of occurrence.

1. Determine 2. Segment 3. Choose 4. Build

What is the most important purpose of reviewing secondary sources as part of the marketing research for a new venture?

To gather information that will help an entrepreneur make the best decisions regarding the marketing of a product or service

What is the primary focus of the industry analysis carried out by an entrepreneur of a new venture?

To give sufficient knowledge of the environment that impacts marketing strategy decision making

True or false: An entrepreneur of a new venture can gain information on competitors initially by utilizing as much public information as possible and then complementing this with a marketing research project.

True

the most successful ventures focus on

competitors, the customer, and the industry, using networking, trade associations, and recent publications

As the first step of marketing research, an entrepreneur should _____.

define the purpose of the research study

The process of dividing the market into small homogeneous groups is known as _____.

market segmentation

Statements of level of performance desired by a new venture are known as _____.

marketing goals and objectives

The written statement of marketing objectives, strategies, and activities to be followed in a business plan is known as a(n) .

marketing plan

Interacting internal and external factors that affect a venture's ability to provide goods and services to meet customer needs are identified by a(n) .

marketing system

Isabella, an entrepreneur, prepares a marketing plan for her new venture that manufactures consumer goods. To make her venture's marketing plan effective, she should ensure that the plan _____.

mentions performance criteria that will be monitored and controlled

A specific group of potential customers toward which a venture aims its marketing plan is known as a(n) .

target market

Identify the basic questions that a new venture's marketing plan answers. (Check all that apply.)

where have we been where do we want to go how do we get there

As part of preparing a marketing plan for a new venture, an entrepreneur should define the business situation. When defining the business situation, the entrepreneur should _____.

evaluate past performance of the product and the company

In the marketing research for a new venture, secondary resources should be _____.

exhausted before gathering information from primary sources

When considering the pricing of a product or service in a situation where the product or service is unique in the marketplace, an entrepreneur should _____.

have a precise understanding of the inherent costs

Sheila, an entrepreneur, prepares a marketing plan for her new venture. After identifying the target market, Sheila's first decision should be to _____.

identify candidate communities that would match the user profile

A marketing plan of a new venture differs from its business plan in that the marketing plan _____.

is a standalone document that should be managed on a short-term basis to ensure whether the venture is meeting its goals and objectives

A feature of a questionnaire, which is a data collection instrument used to gather primary data in the marketing research for a new venture, is that it should include _____.

questions that are clear and concise and are easy to answer