MGMT 475 Quiz 2 Review

Securing outside investment

What ensures that a new business will be critically examined by outsiders who have no vested interest in the owners' idea, product, or service?

help find new niches

What is an advantage of using open-ended questions? a. help find new niches b. differential advantage c. cost advantage d. marketing advantage

See Page 159

What is the best indicator of successful start-ups?

allows a business to precisely reach a consumer with specific needs and wants.

What is the importance of market segmentation and target market?

lenders, investors, family, own money

What is the most likely source of outside funds for most startup businesses?

geographically, demographically, psychographically, behaviorally

What ways can markets be segmented?

High Margins

__________________________ is a buffer for the mistakes made by a start-up business. a. Franchise b. Start-Up c. Revolving Credit d. High Margins

Start-ups

a business that is started from scratch, start with a clean slate; can provide other things that may not be available a. Franchise b. Start-Up c. Revolving Credit d. High Margins

Revolving Credit

a credit agreement that allows the borrower to pay all or part of the balance at any time; as the loan balance is paid off, it becomes available to be borrowed again. a. Franchise b. Start-Up c. Revolving Credit d. High Margins

Indirect Competition

companies that provide alternatives that are dissimilar to your product/service that consumers might choose to meet a similar need. a. value b. concentrated strategy c. indirect competition d. mission statement

indirect competition

companies that provide alternatives that are dissimilar to your product/service that consumers might choose, to meet a similar need a. geographic research b. benefit research c. demographic research d. indirect competition

company description

part of the business plan that describes the vision statement and mission statement, specific goals and objectives, company background, and history of the business. a. company description b. product/service description c. industry description d. market and target customer description

product/service description

part of the business plan that describes your firm's product/service in order to help the reader understand what you are selling and how it could help your target customers. a. company description b. product/service description c. industry description d. market and target customer description

differential advantage

the characteristic that separates one company from another in product, price, promotion, and/or distribution. a. help find new niches b. differential advantage c. cost advantage d. marketing advantage

growth stage

the life cycles stage in which customer purchases increase at a dramatic rate a. introduction stage b. growth stage c. boom stage d. shake-out stage

Total Product

the overall quantity of output that a firm produces, usually specified in relation to a variable input a. Total Product b. Start-Up c. Revolving Credit d. Franchise

market segmentation

the process of dividing the market into groups that have somewhat homogeneous needs for a product/service. a. market segmentation b. geographic segmentation c. geographic segmentation d. benefit segmentation

maturity stage

the third life cycle stage, marked by a stabilization of demand, with firms in the industry moving to stablize or improve profits through cost strategies. a. maturity stage b. decline stage c. retrenchment stage d. introduction stage

the financials

this is the part of the plan that includes an income statement, balance sheet, and cash flow statement. a. the organization description b. the financials c. industry description d. market and target customer description

the organization description

this part of the business plan includes the legal and organization structures, key personnel, related service providers, and the location. a. the organization description b. the financials c. industry description d. market and target customer description

Scaler question

type of question that is on a scale of 1-5 a. focus group b. scaler question c. dichotomous question d. open-ended question

commercialization

when you take your product to market for sale; already tested the product; last stage a. executive summary b. behaviors c. commercialization d. marketing plan

value

If a firm is able to create a premium image in its customer's mind by offering a custom product or extra service, it should typically claim _____ as its pricing strategy and use it as a differential advantage. a. value b. concentrated strategy c. indirect competition d. mission statement

retrenchment stage

an organizational life cycle stage in which established firms must find new approaches to improve the business and its chances for survival. a. maturity stage b. decline stage c. retrenchment stage d. introduction stage

ethnographic

Data gathered by a simple observation that involves seeing what customers do rather than asking them refers to _____ research. a. ethnographic b. geographic c. psychographic d. behavior

A mission statement is what we already are and a vision statement is what we aspire to be.

Describe the difference between mission statement and vision statement.

income statement, cash flow statement, balance sheet

Explain the three types of financial statements.

behaviors

Markets are also segmented based on _____________________. Adventure seekers buy different products (or for different reasons) than more timid people. Hobbies, sports interests, religion, cultural interests, and similar individual factors can determine the likelihood of people purchasing certain products. a. executive summary b. behaviors c. commercialization d. marketing plan

Primary

Primary/Secondary Research? Information is tailored to you.

Secondary

Primary/Secondary Research? Not exactly tailored to what you need.

Primary

Primary/Secondary Research? Requires more time and money.

Secondary

Primary/Secondary Research? Research for this is inexpensive.

delivering value to the customer

Service or product quality is most likely to be crucial in a business plan for _____.

False

T/F In terms of market research, asking closed-ended questions does not limit answers.

True

T/F? Gather enough information to minimize the risk.

True

T/F? In terms of market research, asking open-ended questions, we can get a great deal of wealth of answers.

Focus Group

a form of data gathering using a small group led by a moderator; goal is to get participants to talk about their impression of a product, service, company, or concept a. focus group b. scaler question c. dichotomous question d. open-ended question

Franchise

a legal agreement that allows a business to be operated using the name and business procedures of another firm a. Franchise b. Start-Up c. Revolving Credit d. High Margins

decline stage

a life cycle stage in which sales and profits of the firms in the industry begin a falling trend. a. maturity stage b. decline stage c. retrenchment stage d. introduction stage

concentrated strategy

a marketing strategy in which a marketer selects one specific group of consumers and designs marketing mixes specifically for that group. a. value b. concentrated strategy c. indirect competition d. mission statement

Dichotomous question

a question with two choices a. focus group b. scaler question c. dichotomous question d. open-ended question

Executive Summary

a short document or section of a document, produced for business purposes, that summarizes a longer report or proposal or a group of related reports in such a way that readers can rapidly become acquainted with a large body of material without having to read it all. a. executive summary b. behaviors c. commercialization d. marketing plan

introduction stage

a stage of the product life-cycle in which the product or service is being invented and initially developed. a. introduction stage b. growth stage c. boom stage d. shake-out stage

boom stage

a type of life cycle growth stage marked by a very rapid increase in sales in a relatively short time. a. introduction stage b. growth stage c. boom stage d. shake-out stage

shake-out stage

a type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry a. introduction stage b. growth stage c. boom stage d. shake-out stage

closed-ended question

establish how things currently are; less types of answers a. closed-ended question b. scaler question c. dichotomous question d. open-ended question

secondary research

information already collected for some other purpose than the current problem or questions; someone has already collected this research a. marketing research b. primary research c. secondary research

primary research

new information collected to solve a problem at hand or answer current question; we collect this information on our own. a. marketing research b. primary research c. secondary research

marketing strategy

part of the business plan that focuses on the overall strategy your firm pursues in the market, the sales plan that shows the specific ways you apply strategy to secure sales from your customers, and the longer-term competitive plan that shows how you protect your firm from efforts of the competition to unseat you. a. competitive advantage description b. marketing strategy c. industry description d. market and target customer description

competitive advantage description

part of the business plan that identifies major competitors and explains why your product/service is better than theirs. a. competitive advantage description b. marketing strategy c. industry description d. market and target customer description

industry description

part of the business plan that tells the reader about the other firms producing this product or service, the competition. a. company description b. product/service description c. industry description d. market and target customer description

market and target customer description

part of the business plans that talks about who the business wants to sell to and the size of the market a. company description b. product/service description c. industry description d. market and target customer description

demographic research

quantifiable characteristics of a given population. a. geographic research b. benefit research c. demographic research d. indirect competition

open-ended question

questions that allow respondents to express themselves as they choose; get at how the person wants things to be. a. focus group b. scaler question c. dichotomous question d. open-ended question

geographic research

research done in a specific region a. geographic research b. benefit research c. demographic research d. indirect competition

benefit research

research done on specific benefits people are looking for in a product/service a. geographic research b. benefit research c. demographic research d. indirect competition

marketing research

systematic collection and interpretation of data to support future marketing decisions a. marketing research b. primary research c. secondary research

marketing plan

systematically articulates the price, market strategy a. executive summary b. behaviors c. commercialization d. marketing plan