Q&A Hero

Q: Manufacturer's representatives are marketing middlemen that: A.take title and physical possession of the product. B.take physical possession of the product. C.work exclusively for the entrepreneur. D.are paid a commission when a sale is made.

Q: Intensive, selective and exclusive are all part of which major consideration in channel selection? A.Degree of directness B.Number of channel members C.Criteria in selection of channel members D.Number of channels

Q: Market conditions, product attributes, cost benefits and venture attributes are all part of which major consideration in channel selection? A.Degree of directness B.Number of channel members C.Criteria in selection of channel members D.Number of channels

Q: The _________ element of the marketing mix involves decisions as to what is the most appropriate channel. A.product B.price C.distribution D.promotion

Q: When products cannot be easily differentiated: A.there is little room for price variations from the competition. B.a skimming price strategy is appropriate. C.a higher price can be charged. D.the lowest possible price must be charged.

Q: Which of the following is(are) not a key element in the pricing strategy? A.Cost B.Margin or markup C.Competition D.Distribution

Q: The number of goals and objectives in the marketing plan should be: A.2-4 B.4-6 C.6-8 D.8-10

Q: In establishing goals and objectives, it is important to: A.quantify all aspects of the goals. B.limit the number of goals. C.set standards that are ideal. D.measure it for control purposes.

Q: Once the marketing goals and objectives have been established, the entrepreneur can begin to develop the __________ and __________ to achieve them. A.marketing plan; industry analysis B.marketing mix; consumer research C.marketing strategy; action plan D.market research; industry analysis

Q: Market segmentation is the process of: A.describing market conditions. B.dividing the market into smaller homogeneous groups. C.presenting future opportunities. D.exploring new market opportunities.

Q: Which is the first step in preparing a marketing plan? A.Identifying strengths and weaknesses B.Defining the target market C.Establishing goals and objectives D.Defining the business situation

Q: The __________ is the specific group of potential customers toward which a venture aims its marketing plan. A.target market B.external environmental factor C.channel of distribution D.consumer market

Q: The marketing mix consists of: A.product, price, research, and promotion. B.product, research, distribution, and promotion. C.product, price, distribution, and promotion. D.product, price, distribution, and research.

Q: The four variables that affect short-term marketing decisions are referred to as the: A.marketing mix. B.market segment. C.marketing plan. D.marketing system.

Q: Financial resources and the management team are both examples of the: A.external environment. B.marketing mix decision variables. C.internal environment. D.feedback system.

Q: Which of the following is an internal environmental variable? A.The economy B.Technology C.Industry demand D.Financial resources

Q: Generally speaking, entrepreneurs see the external environment as: A.marginally influential. B.uncontrollable. C.largely influential. D.predictable.

Q: The major interacting components that enable a firm to successfully provide products to the marketplace are called the: A.marketing plan. B.marketing mix. C.marketing system. D.marketing structure.

Q: The _________ is the written statement of marketing objectives, strategies, and activities to be followed in the business plan. A.marketing plan B.marketing mix C.marketing system D.marketing structure

Q: Which of the following is not a major question that should be addressed by the marketing plan? A.Where have we been? B.Where do we want to go in the short term? C.Where do we want to go in the long term? D.How do we get there?

Q: Focus groups: A.should be led by the entrepreneur. B.consist of 20 to 30 potential customers. C.discuss information in a formal and standardized procedure. D.are an informal method of gathering market information.

Q: A focus group should consist of: A.6-8 potential customers B.10-12 potential customers C.14-16 potential customers D.18-20 potential customers

Q: Which survey method is the most expensive? A.Telephone B.Mail C.Personal D.Internet

Q: Which survey method results in the worst response rate? A.Telephone B.Mail C.Personal D.Internet

Q: Which survey method results in the most in-depth information and the best response rate? A.Telephone B.Mail C.Personal D.Internet

Q: Which survey method is the fastest method for obtaining data? A.Telephone B.Mail C.Personal D.Internet

Q: The most common approach to gathering primary information is: A.observation. B.focus groups. C.experimentation. D.interviewing.

Q: The simplest approach to gathering primary information is: A.observation. B.focus groups. C.experimentation. D.interviewing.

Q: Observation, interviewing, and focus groups are examples of collecting: A.marketing data. B.primary data. C.secondary data. D.target data.

Q: Information that already exists is called: A.secondary data. B.primary data. C.marketing data. D.target data.

Q: Which stage of marketing research is considered to be the most difficult for an entrepreneur due to lack of knowledge or experience in marketing? A.Analyzing and interpreting the results B.Gathering data from primary sources C.Gathering data from secondary sources D.Defining the purpose or objectives

Q: Marketing research begins with: A.setting the advertising budget. B.definition of objectives or purpose. C.identifying direct marketing strategy. D.collecting a list of primary and secondary sources of information.

Q: _____ is the process of gathering information in order to determine who will buy the product and what is the most appropriate distribution channel. A.Market segmentation B.Marketing planning C.Market mixing D.Marketing research

Q: Competitor analysis begins with: A.gathering samples of the competitors product(s). B.discovering each competitors advertising budget. C.documenting the current strategy of each primary competitor. D.identifying which competitors are most successful.

Q: Which of the following statements is(are) not true? A.Primary focus of an industry analysis is to provide sufficient knowledge of the environment that can affect marketing strategy decision-making. B.Industry analysis needs to be conducted using only primary research data. C.Industry analysis begins with the broadest-based assessment of environmental and industry trends. D.The information-seeking process of industry analysis is known as an upside-down pyramid.

Q: Warby Parker was started by: A.Neal Blumenthal B.Sergy Bryn C.Mark Zuckerberg D.Google

Q: Unrealistic goals are a common reason for failure of the marketing plan.

Q: The marketing plan is not meant to be a commitment by the entrepreneur to a specific strategy.

Q: Promotion using television is more expensive than promotion using the Internet and direct mail.

Q: Manufacturer's agents take title to products and resell them.

Q: Middlemen such as wholesalers have lower distribution costs because they operate with economies of scale.

Q: Major considerations in channel of distribution selection include degree of directness and number of channel members.

Q: The final price of a product or service is the sum of total cost plus profit margin.

Q: It is harder to charge a high price if the company operates in a differentiated product market.

Q: When products cannot be easily differentiated, the entrepreneur is forced to charge a lower price than the competition.

Q: When making decisions about pricing strategy, the entrepreneur should consider only costs directly associated with the product and ignore overhead.

Q: All marketing goals and objectives should be quantifiable in physical units, time units, or price units.

Q: A marketing strategy and action plan is defined as specific activities outlined to meet the venture's business plan goals and objectives.

Q: It is recommended that the entrepreneur limit the number of marketing goals to no more than four.

Q: It is a good idea to have several marketing goals, since it provides better clarity to the entrepreneur.

Q: The process of dividing the market into smaller homogeneous groups is called market segmentation.

Q: The first step in preparing the marketing plan is to define the target market.

Q: The situation analysis describes past and present business achievements of the new venture.

Q: The marketing mix consists of the following variables: external environmental factors, internal environmental factors, and marketing strategy.

Q: The management team and the venture's company mission are examples of external environmental factors.

Q: The marketing system identifies the major interacting components, both internal and external to the firm.

Q: An updated marketing plan should be prepared by the entrepreneur every two years.

Q: A marketing plan need not provide for the use of existing resources, allocation of all equipment, financial resources, and human resources, since this is part of a production plan.

Q: Management needs to look at the marketing plan as a guide for implementing marketing decision making and not as a generalized, superficial document.

Q: The marketing plan is designed to answer three basic questions: where have we been, where do we want to go, and how do we get there?

Q: Focus groups typically consist of 10-12 potential customers.

Q: Focus groups should be led by the entrepreneur.

Q: Focus groups are an informal method for gathering in-depth marketing information.

Q: Telephone surveys have the poorest response rate.

Q: Personal, face-to-face, surveys are the most effective and most expensive.

Q: Interviewing is less expensive than observation.

Q: Interviewing or surveying is the most common approach used to gather primary market data.

Q: The simplest approach to gathering primary information is by developing a questionnaire.

Q: Networking can be used as an informal method of gathering primary data.

Q: Private data sources, such as Information Resources, Inc. and Nielsen Indexes, are a low-cost secondary data source.

Q: The Internet is a good source for primary information, but does not provide many secondary sources.

Q: Marketing information that already exists is called secondary data.

Q: Defining the purpose or objectives of marketing research is often the most difficult stage for an entrepreneur.

Q: An effective way to begin defining the purpose of a marketing plan, is to make a list of all the information needed to prepare the marketing plan.

Q: Marketing research involves the gathering of information in order to determine who will buy the product and what the most effective promotion strategy would be.

Q: The first step in conducting a competitive analysis is to document the pricing strategy of each competitor.

Q: When preparing the industry analysis section of the business plan, using secondary sources is not appropriate.

Q: Neal Blumenthal is the founder of Warby Parker a company that sells prescription eyeglasses over the internet.

Q: List three sources of Financial and Industry Operating Ratios from the text.

Q: Draw the Upside-Down Pyramid Approach to Gathering Market Information.