Chapter 11 Study Guide- Introduction to Business

Neema owns an antique shop, and she sells her antiques exclusively to people who plan to enjoy them in their homes. In what type of market does Neema operate her shop?

A Consumer Market

Tombe owns a commercial glass manufacturing shop. He sells his glass products exclusively to wholesalers, who in turn sell the products to customers for a profit. In what type of market does Tombe operate his shop?

A reseller Market

Felipe, the owner of a landscaping business, has prepared an estimate of the amount of landscaping services he expects to sell in the upcoming year, keeping his marketing budget the same as it is in the current year. What has Felipe prepared?

A sales forecast

Aurora owns a custom wood shop that exclusively crafts pews for churches. As a very religious person herself, Aurora operates her business on a very slim profit margin, giving her church customers large price concessions on the pews she sells them. Aurora considers this a way to "give back" to the greater church community. In what type of market does Aurora operate her shop?

An institutional market

Malik recently graduated from university and accepted his first job, a pharmaceutical sales position, in Boston, Massachusetts. Malik received the first direct deposit of his pay last Wednesday, and he eagerly checked online to see the amount of his deposit. Malik was shocked at how much lower his actual pay was relative to his overall monthly salary, but then he realized that the difference was based on state and local taxes. Realizing this did not make him feel any better. What type of income is the reason for Malik's discontent?

Disposable

Aoi, a self-proclaimed "budding entrepreneur" who would like to open her own tattoo parlor, recently completed a continuing education course at her local community college entitled "How to Succeed in Business: Managing Your Marketing Mix." Which of the following is not part of a business's marketing mix?

Ethics

In the marketing plan for his start-up company, Alvaro included for easy reference a one-page synopsis of the entire plan. Which component of the marketing plan is this?

Executive summary

After having driven her old-but-reliable Honda Civic for the past 12 years and 210,000 miles, Camille has decided to purchase a new car. Her best friend, Claudia, highly recommends the Toyota Corolla, and Camille has conducted extensive online research comparing prices, features, expert reviews, and consumer reviews of the Civic and the Corolla. Camille has yet to make up her mind; after all, she has enjoyed her Civic for years, but she is also interested in a new experience driving a different make and model of car. Camille plans to drive her new car for at least another 12 years. What type of decision making is presented in this scenario?

Extended

Demarco owns a furniture manufacturing plant. His plant takes, wood, cloth, metal, and other materials and converts them into beautiful chairs and couches that are in high demand both domestically and internationally. Based on the information emphasized in this scenario, which of the following types of utility does Demarco's plant create?

Form

Krisha, a marketing manager for General Motors Company (GM), is about to attend a very important company meeting. In the meeting, Krisha will be presenting to GM's executive management team the company's quarterly sales figures, product and marketing costs, and inventory levels. What type of marketing data will Krisha be sharing with executive management?

Internal

As a long-time small business owner, Clara has become very skilled in customer relationship management (CRM). Which of the following is correct regarding CRM?

It focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

Having recently completed her Master of Business Administration (MBA) degree, Mitsuki understands how important identifying and satisfying the target market is to entrepreneurial success. Which of the following is false regarding the target market?

It includes individuals, but not organizations.

In her last Introduction to Business video lecture, Hina's professor emphasized to students the importance of market segmentation to business success. Which of the following is not true regarding market segmentation?

It is also known as the undifferentiated approach.

As a small business owner, Emil understands the importance of sales forecasting to entrepreneurial success. Which of the following is correct regarding a sales forecast?

It is an estimate of the amount of a product that an organization expects to sell during a certain period of time.

As the owner of a hair salon, Vincente has decided to adopt a customer orientation. Which of the following is correct regarding the customer orientation marketing concept?

It recognizes that an organization must first determine what customers need and then develop goods and services to fill those particular needs.

In her Principles of Marketing class, Sai's professor has repeatedly emphasized how important relationship marketing is to the success of a business. Which of the following is correct regarding relationship marketing?

It refers to marketing decisions and activities focused on achieving long-term, satisfying relationships with customers.

As the owner of an automobile repair shop, Anish has adopted a production orientation. Which of the following is false regarding the production orientation marketing concept?

It utilizes customer relationship management tools and technology to try to retain and increase long-term profitability through customer loyalty.

In the marketing plan for a restaurant she recently purchased, Naroa has included an explanation of how the firm will measure and evaluate the results of the plan after its implementation. Which part of the marketing plan is this?

Performance evaluation

Oban owns a pre-owned car lot in Lansing, Michigan. Most of Oban's customers cannot afford to pay cash for their purchases; in fact, many cannot even afford to make a down payment. Oban's message to his customers is always "no money, no problem," since he offers zero down payment, "buy here, pay here" financing for his vehicles. Based on the information emphasized in this scenario, which of the following types of utility does Oban's car lot create?

Possession

Suppose that Jack in the Box, a fast-food restaurant, plans to introduce a new type of chicken sandwich to its menu. Before doing so, however, the company will conduct focus groups to gather customer opinions on the sandwich. What kind of marketing research data will Jack in the Box gather from its focus groups?

Primary

In her Introduction to Business class, Chiara's professor has emphasized the importance of recognizing customer lifetime value (CLV) to the success of a business. Which of the following is not true regarding CLV?

Since life expectancies vary and constitute mere projections, it is very difficult to calculate.

Susana's father, Victor, owned a pizza shop in the 1990s and sold it in 2000 to take a job working in a United States Postal Service warehouse. Victor has repeatedly told Susana that he regrets selling the pizza shop. According to Victor, he knew all his customers personally and considered them friends, and they would often sit in his restaurant way past their lunch hour, discussing life's "ups and downs" with him. Victor was known to give free pizza to his customers on their birthdays, and he would even attend the weddings and funerals of his customers or their family members. Victor misses the contact he had with customers. Which of the following marketing concepts is most closely associated with this scenario?

The Relationship Orientation

Aneko owns and operates a Christmas tree farm in upstate New York. His farm is open only from the day after Thanksgiving until December 24th, since customers would have little use for a cut Christmas tree outside of the holiday season. Based on the information emphasized in this scenario, which of the following types of utility does Aneko's farm create?

Time

As a marketing professor, Advik always makes sure to emphasize to his students how important the external marketing environment is to the success or failure of a business. Forces that make up the external marketing environment include all but which of the following?

Utilitarian

As the owner of an information technology firm, Anaya is very aware of the impact the external marketing environment has on her business. Forces that make up the external marketing environment include all but which of the following?

Utility