Q&A Hero

Q: Which of the following statements is true of exporting? A. Agents and export trading companies are extensively used in direct exporting. B. Unstable governments and economies are a good market to export goods. C. Shipping documentation and paperwork are generic to all products and countries. D. Insurance is essential for export payments to overcome the risk of default.

Q: Which of the following is true of payment procedures? A. A letter of credit can be exercised only with specified shipping documents. B. Providing credit to customers is a risk to the customers. C. Up-front cash payment is a risk to the customers. D. A documentary draft involves only two partiesthe company and the customer.

Q: A _____ is a document issued by a bank that guarantees a buyer's payment for a specified period of time upon compliance with specified terms. A. documentary draft B. letter of credit C. mail order D. bill of lading

Q: Which of the following can be exercised only when presented with specified shipping records? A. A documentary draft B. A letter of credit C. A mail order D. A codicil

Q: _____ are specialists in export-related activities including tariff schedules, shipping, insurance, packing, transportation arrangements, customs clearing, and other export details. A. Born internationals B. Freight forwarders C. Contract manufacturers D. Traffic generators

Q: _____ uses agents, export management companies, or export trading companies as intermediaries to handle most of the exporting process. A. Indirect exporting B. Freight forwarding C. Contract manufacturing D. Direct exporting

Q: In _____, products are sold to foreign buyers or distributors without any intermediaries. A. indirect exporting B. freight forwarding C. contract manufacturing D. direct exporting

Q: Which of the following international strategies is usually inexpensive, quick to start, easy to change, and less risky than the others? A. Exporting B. Joint venture C. Franchising D. Licensing

Q: While teaching strategy at Farrell University, Jessica developed an interactive strategy-simulation game to inculcate the concept of strategy to her students. She found that they were able to grasp the concept much better from the game rather than from reading books. For two years Jessica used the game to teach students. Eventually she removed possible glitches and perfected the game. She wanted students at other universities to benefit from the simulation. The result was the launch of Simulate Strategy, Inc. Some of Jessica's students suggested that she create a Web site for Simulate Strategy, Inc. Her company is fairly new and opening a Web site immediately would expose her company to customers from around the world. In this scenario, Simulate Strategy is an example of a _____. A. freight forwarder B. born international C. sheltered workshop D. contract manufacturer

Q: A(n) _____ refers to a new firm that opens a Web site immediately, thus being exposed to customers from around the world. A. freight forwarder B. sheltered workshop C. born international D. contract manufacturer

Q: Which of the following has low overhead and unlimited shelf space and thereby can afford to take on an unknown firm or product? A. An e-tailer B. A wholesaler C. A retailer D. An agent

Q: Which of the following statements is true of nondirect distribution? A. A product's final price is more than the manufacturing cost if intermediaries are involved. B. An agent sells products to consumers or end-users, typically in small quantities. C. Distributors and wholesalers tend to take on start-up products due to zero setup charges. D. A retailer represents a manufacturer's product to other business-to-business middleman firms.

Q: A(n) _____ refers to a middleman business which represents a manufacturer's products or services to other business-to-business middleman firms. A. retailer B. wholesaler C. manufacturer D. agent

Q: Wholesalers, retailers, distributors, agents are commonly referred to as ______. A. freight forwarders B. intermediaries C. born internationals D. traffic generators

Q: A(n) _____ is a middleman business which buys and sells to businesses rather than consumers. A. manufacturer B. agent C. wholesaler D. retailer

Q: A(n) _____ is a middleman business which sells to consumers or end-users of a product, typically in single or small quantities. A. manufacturer B. agent C. wholesaler D. retailer

Q: A _____ will warehouse products, pack and ship them, and send an automated e-mail to customers to let them know that the product is on its way. A. contract manufacturer B. traffic generator C. sheltered workshop D. fulfillment center

Q: Neil places an advertisement for his pastry shop, Neil's Pastries, in the local newspaper. He includes his phone number, website, e-mail address, and postal address in the advertisement so that prospective customers have the option to contact him in the way they feel most comfortable. Neil is a _____. A. guerilla marketer B. multichannel marketer C. telemarketer D. direct seller

Q: In _____, several different outlets such as a website, direct mail, and traditional retailing are used to reach customers. A. guerilla marketing B. Internet marketing C. multichannel marketing D. direct sales

Q: _____ uses creative and relatively inexpensive ways such as door-knob hangers, T-shirts, balloons, flyers under windshield wipers to reach customers. A. Direct mail B. Guerilla marketing C. Telemarketing D. Direct sales

Q: _____ is a form of direct response advertising that reaches local people but does not permit a lot of details. A. Radio B. Billboard C. Magazine D. Newspaper

Q: _____ advertisements provide both geographic and demographic segmentation with a highly distracted audience. A. Television B. Radio C. Magazine D. Newspaper

Q: A(n) _____ allows specific geographic segmentation. A. newspaper B. magazine C. e-mail D. video

Q: Which of the following forms of direct response advertising allows very specific targeting and is appropriate for business-to-business selling? A. Television B. Radio C. Magazine D. Billboard

Q: Which of the following forms of direct response advertising attracts a large audience and is a good way to demonstrate a product? A. Television B. Radio C. Magazine D. Billboard

Q: In _____, an advertisement is placed in a magazine, newspaper, radio, billboard, or television and includes an order blank with a phone number, e-mail, or snail-mail address, using which customers can place immediate orders. A. telemarketing B. direct response advertising C. guerilla marketing D. direct selling

Q: Which of the following statements is true of telemarketing? A. Outbound telemarketing is the result of direct response advertising. B. It is the least expensive form of direct marketing. C. It is found to be a very annoying form of marketing to most customers. D. Inbound telemarketing involves the company calling customers.

Q: Which of the following forms of direct marketing is the most expensive? A. Direct sales B. Telemarketing C. Direct mail D. Guerilla marketing

Q: _____ involves contacting customers via telephone for the express purpose of selling a product or service. A. Telecasting B. Guerilla marketing C. Telemarketing D. Teleprocessing

Q: Which of the following forms of direct mail is the least expensive? A. Catalog B. Sales letter C. Leaflet D. E-mail

Q: A(n) _____ refers to having only sufficient amount of products on the shelves to meet immediate purchases and usually requires frequent shipment from the supplier. A. just-in-time inventory B. macro inventory C. micro inventory D. in-process inventory

Q: A(n) _____ refers to a set of goods or services that consists of only one or a few items. A. in-process inventory B. macro inventory C. just-in-time inventory D. micro inventory

Q: Which of the following statements is true of catalogs? A. Catalogs do not target particular types of consumers. B. Creating and disseminating catalogs online increases company costs. C. Most part-time entrepreneurs typically use existing catalogs for their products. D. Catalogs do not focus on any particular types of products.

Q: Which of the following statements is true of a direct mail approach? A. It is a challenge to find the right market using this method. B. It involves major inventory investments. C. It is seen by most customers as a form of home invasion. D. It does not need adequate preparation before selling a product.

Q: Which of the following is a modern form of direct mail? A. Catalogs and brochures B. Direct faxing and e-mailing C. Sales letters and mail orders D. Postcards and leaflets

Q: A _____ is a form of direct mail. A. door-to-door sale B. party sale C. brochure D. vending machine

Q: _____ refers to a method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are shipped straight to customers from which they can mail, call, or e-mail an order. A. Guerilla marketing B. Direct sales C. Contract manufacturing D. Direct mail

Q: _____ offer the flexibility of having a product available around the clock and at convenient locations. A. Party sales B. Farmers' markets C. Vending machines D. Door-to-door sales

Q: Which of the following direct sales methods is effective for products that need demonstrations or detailed explanations? A. Industrial sales B. Door-to-door sales C. Vending machines D. Flea market

Q: Door-to-door sales and party sales are examples of _____. A. direct sales B. telemarketing C. direct response advertising D. contract manufacturing

Q: Which of the following is usually the first technique an entrepreneur uses to get customers? A. Franchising B. Guerilla marketing C. Telemarketing D. Word-of-mouth

Q: _____ refers to selling goods or services to consumers without intermediaries, typically to select customer groups and typically with tracking of the results. A. Nondirect distribution B. Direct marketing C. Benchmarking D. Contract manufacturing

Q: Wholesalers and retailers who connect manufacturers to consumers are referred to as _____. A. traffic generators B. manufacturing agents C. distribution channels D. business franchisors

Q: Leasing is an option with a considerably lower initial cash outlay and is often the only feasible choice for new businesses.

Q: Differentiate between follow-through and follow-up.

Q: What are the different steps in customer relationship management (CRM)?

Q: What is customer relationship management (CRM)? What are the different strategies of CRM?

Q: What are the different steps involved in the process of personal selling?

Q: What are the different ways of generating publicity?

Q: What is a press release? How can entrepreneurs write a good press release?

Q: List the key elements of creating a corporate identity?

Q: (p. 316, 323) Briefly describe any two ways by which business owners convey their promotional message.

Q: What is segmentation? What are the typical ways of dividing the market into different segments?

Q: Define value proposition. How can a business owner develop a value proposition?

Q: Which of the following is true of follow-up? A. It increases cognitive dissonance in customers. B. It is typically done only once after a sale. C. Electronic approaches to follow-up dramatically lower the cost of marketing efforts. D. It refers to business owners doing what they said they would do.

Q: _____ refers to the contacts business owners periodically make with customers in order to remind them of their business, and their interest in customers' business. A. Follow-up B. Customer service C. Follow-through D. Mat release

Q: _____ refers to business owners doing what they said they would do. A. Trendiness B. Cognitive dissonance C. Follow-up D. Follow-through

Q: The proof of a CRM effort is seen in: A. high levels of cognitive dissonance in customers. B. more tracked prospects making initial purchases. C. low levels of customer loyalty in new customers. D. high levels of inconsistency among customers in terms of experience and belief.

Q: Business owners can figure how to better target ads or promotions to particular types of customers if: A. they track sales of their competitors. B. they identify the defects in their products. C. they use the diversification strategy rather than the product expansion strategy. D. they link sales and purchase basis to the type of customer.

Q: If business owners track sales by purchase basis: A. they can minimize the cognitive dissonance experienced by their customers. B. they can predict the performance of their competitors. C. they can easily decide which marketing efforts to continue. D. they can find the defects in their products.

Q: Which of the following is most likely to be true regarding customer vector? A. It considerably increases cognitive dissonance. B. It makes it difficult to decide which marketing efforts to continue or expand. C. It helps marketers in identifying prospective customers. D. It helps entrepreneurs decide how to operate several key aspects of their marketing efforts.

Q: _____ is a type of CRM report that segments by customer or customer group on purchases or dates of purchase. A. Customer vector B. Sales report C. Customer service D. Interim report

Q: In the case of existing customers, _____ gives the information on the date and type of contact, since in many sales situations, it can take repeated contacts before a sale is made. A. channel data B. performance data C. intercommunication data D. sales data

Q: Which of the following gives the particulars on existing customers? A. Contact data B. Performance data C. Product data D. Service data

Q: Which of the following is the key to customer relationship management (CRM)? A. Displaying accurate financial records in annual reports B. Educating customers about a new product or service C. The data on current or prospective customers D. The press release and press kit

Q: Diversification is a strategy whose goal is growth, based on: A. selling more of the firm's product or service to the existing customer base. B. selling in areas or to groups previously not served by the business. C. selling existing customers a product or service they have never bought before. D. adding new products or services to the firm's existing collection of offerings.

Q: _____ is a strategy whose goal is growth, based on selling in areas or to groups previously not served by the business. A. Market penetration B. Market expansion C. Product expansion D. Diversification

Q: Which of the following is used when selling to existing customers? A. Market expansion B. Market penetration C. Diversification D. Vertical integration

Q: Which of the following strategies is central to the process of upselling? A. Market penetration B. Market expansion C. Product expansion D. Diversification

Q: Product expansion is a strategy whose goal is growth, based on: A. selling more of the firm's product or service to the existing customer base. B. selling in areas or to groups previously not served by the business. C. selling existing customers a product or service they have never bought before. D. adding new products or services to the firm's existing collection of offerings.

Q: Customer loyalty programs focus on developing a strategy that is based on: A. selling more of the firm's product or service to the existing customer base. B. selling in areas or to groups previously not served by the business. C. selling existing customers a product or service they have never bought before. D. adding new products or services to the firm's existing collection of offerings.

Q: _____ is a strategy whose goal is growth, based on selling more of the firm's product or service to the existing customer base. A. Market penetration B. Product expansion C. Market expansion D. Diversification

Q: Which of the following is true of customer retention? A. It focuses on increasing customers' cognitive dissonance. B. It focuses on satisfying prospective customers to make a sale successful. C. It handles problems that crop up after a sale. D. The CRM aspect of customer retention is based on short-term monitoring of customers.

Q: Which of the following is true of cognitive dissonance? A. It is the consistency between experience and belief. B. It happens frequently especially with more expensive items. C. It almost always happens with purchases that are not considered risky. D. It is a doubt that occurs before making a purchase.

Q: An inconsistency between experience and belief refers to: A. value proposition. B. segmentation. C. trendiness. D. cognitive dissonance.

Q: Doubt that occurs after a purchase has been made is called _____. A. cognitive dissonance B. customer vector C. segmentation D. trendiness

Q: While closing a sales call, when a sales person says "I'll just need your credit card for payment," he is using the sales closing technique of _____. A. try-before-you-buy close B. assumptive close C. chances-are close D. urgency close

Q: Closing a sale refers to: A. asking for a referral from a prospective customer. B. being turned down by a prospective customer. C. delaying the decision to make a new product. D. obtaining a commitment from the customer.

Q: In personal selling, _____ means cleaning up the list to remove potential clients that are unable or unlikely to buy a business owner's product. A. prospecting B. prequalifying C. polarizing D. closing

Q: In personal selling, _____ means finding out about the clients before approaching them. A. evaluation B. closing C. prospecting D. preparation