Small business Development Ch 7 In class exam review

Because many small business owners have strong production skills, they often attend mostly to the marketing side of the business to compensate.

False

Because of the relatively inconsequential amount of sales conducted by a typical small business, the majority of entrepreneurs need not be concerned with formulating accurate sales forecasts.

False

It is best to write a marketing plan before collecting marketing research data

False

Personal interview surveys are attractive as a marketing research method because these are inexpensive to conduct.

False-Primary data sources are expensive

A detailed analysis of competitors is an important part of a firm's formal marketing plan.

True

Because sales forecasts revolve around specific target markets, the market should be defined as precisely as possible.

True

Determining market potential is the process of locating and investigating buying units that have purchasing power and needs that can be satisfied with the product and/or service being offered.

True

If an entrepreneur anticipates several target markets, each individual segment must have its own corresponding customer profile.

True

Marketing research is an effective supplement, but not a replacement, for the intuitive judgment of entrepreneurs.

True

Marketing research is defined as the gathering, processing, reporting, and interpreting of marketing information

True

Small businesses typically conduct less marketing research than big businesses, partly because they lack an understanding of the basic marketing research process.

True

When a strategist divides the total market for a product and/or service into groups with similar needs, so that each group is likely to respond to the same marketing strategy, he or she is engaging in a practice called market segmentation.

True

Regardless of the type of business, the consumer-oriented marketing philosophy is the best choice among the competing alternatives.

True-