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
A _______ was considered a unique competitive advantage just 10 years ago; today; today, it is an expectation.
web page
Samuel, an entrepreneur, plans to promote his newly opened fast-food joint located in a city. Identify the effective marketing activities that e can purse to reach potential customers in the city.
Advertising on location-specify apps in the city. Sponsoring events in the city.
Why do customers look to Web pages?
Basic company information information about products and services ability to purchase online
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?
By looking at the close competitors in another similar area By looking at the direct rival firms in that target area
Which of the following statements are true regarding mail-order catalog businesses?
Identifying customers is a critical part of the process A useful means to identify customers is to buy a mailing list from a group with common interests Understanding and targeting the customer is very important
Once the geographic area is defined, the entrepreneur should:
Invest money in marketing efforst aimed at the target area.
Which of the following statements are true regarding newspapers as a form of pure promotion?
It is standard method of promotions. It involves paying for views by individuals who will never be customers. It is a broad-based "shotgun" type of advertising.
Which of the following are true of 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
Which of the following are promotions available on the Internet?
Pop-up ads Promotional placements Banner ads Search engines
In the context of pricing, match the concepts
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.
_________ promotions are strictly financial arrangements in which a business pays for some output.
Pure
Which of the following are examples of virtually free promotions?
Speaking at schools Presentations to the Kiwanis Club Participating in a morning talk show
Which of the following statements are true regarding the cost-plus pricing method?
The method can be difficult to implement effectively 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
Identify the true statements about independent sales agents as a distribution channel.
They agree to sell or distribute each of the products for a percentage of the sales price. They can be used to sell industrial products.
Which of the following characteristics differentiate Internet customers?
They are not limited by geographical limits
New businesses must target the right geographic area nad do so with the rihgt marketing rool to be successful.
True
Pricing a service requires a firm to identify and include the cost of overhead expenses and the cost of the owner's experience.
True
Which of the following groups should be the focus of a business's marketing efforts?
all individuals likely to buy
Web pages should:
be maintained so that information is timely and accurate
Companies that have a(n) _______ _______ force provide independent salespeople with a wide variety of experiences and contacts on a contract basis.
contract sales
For price-sensitive customers, as the price goes ______ customer flow goes up.
down
A(n) _________-________ promotion costs something but also has an element of community support.
mixed model
________ is the means by which businesses make their products or services known to potential customers.
promotion
The methods employed to and the individuals who build and maintain relationships with customers are referred to as ________ ________.
sales management
In the context of creating a marketing plan, a new firm's marketing efforts need to focus on
the firm's mission statement.
Which of the following organizations are typically in need of sponsors?
Church Schools
Which type of distribution channel can be used by businesses that force purely on Internet sales or by those that use it as a supplement to the other marketing effects of the firm?
web pages
In the context of determining pricing models, which of the following best defines cost-plus pricing?
A model in which a desired profit margin is added to the cost of a product as deemed appropriate
Which of the following caveats should entrepreneurs of new businesses remember when establishing pricing?
A new business should offer a greater value for the money charges to build a customer base than establish 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
Which 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?
By looking at the close competitors in another, similar area By looking at the direct rival firms in the target area
Before the entrepreneur can define a particular segment of the market that he is seeking to serve, the entrepreneur must:
Define the geographic area
A business built on the Software as a Service model should price its services based on the experience of its staff.
False
The cost of Search Engine Optimization (SEO) advice is relatively expensive compared with other promotional approaches used by a business.
False
Which type of distribution channel utilizes a publication that displays a consistent set of products and provides a means to order these products typically over the phone?
Mail-order catalogs
Which categories of promotions encompasses the majority of promotional effects targeted by the firm?
Pure promotions
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?
Radio advertisements Television advertisements The Internet
Which of the following groups allow entrepreneurs to promote their business and help out the community in a way that targets their customers base?
Schools Churches
______ _______ ______ (SEO) is a term for all the efforts made by a business to increase the visibility and placement of business information and isone of the best promotional approaches available.
Search Engine optimization
Which of the following should be following 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
What are the drawbacks of hiring a consultant at start-up to develop a marketing plan?
The owner lose valuable information by not performing the research themselves. Expenses can be very high
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 regarding flyers?
They can be printed clearly They can be delivered with low-cost labor They can be changed frequently
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
A contract sales force consists of independent salespeople with a wide range of experiences and contacts. These salespeople are employees of a company on a contract basis
True
True or false: 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
_________ promotions are also referred to as bootstrap marketing, because they require little capital.
Virtually free
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.
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 method
The critical part of using a mail order catalog is identifying the
customers
Customer demand and market potential are two methods of _________
estimating sales
The marketing plan is developed by a business to specify:
how customers might be attracted to the company who the best customers are
As the number of competitors in an area ______, the distance customers are willing to travel will _______
increase; decrease
A(n) ______ leader can become quite a burden if customers buy the leader without buying the other services or products of the company
loss
Which distribution channel incurs difficulty with handling credit sales and returns.
mail-order catalogs
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
Identify the target customers, determining a pricing policy that is in line with the strategy of the firm, and developing promotion are elements associated with the ________ plan.
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 desires.
mission or strategy statement
Market potential methods used by a firm to forecast sales take a macro look at the market and estimate potential sales for the firm primarily based on the ______________.
number of prospective consumers in the target area