Small Business Management Study Questions - Ch 7 the Marketing Plan

Small Business Management Study Questions

Chapter 7—The Marketing Plan TRUE/!"SE

1. Small Small busi busines nesss marke marketin ting g is is best best define defined d as as the the perf perform ormanc ancee of of dist distrib ributi ution on activi activitie tiess that that affect the flow of goods and services from producer to consumer or user. A N S: F Small business marketing involves numerous activities, many of which occur even before a  product is created or made ready for for distribution or or sale. !S: 1 "#F: p. $%%  NA!:  NA!: -ommunication  /alue /alue -reation

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$. 0n ord order er to to achi achiev evee mark market et suc succe cess ss,, a firm firm shou should ld con conce cent ntra rate te on on eith either er pro provi vidi ding ng an an ecellent product and2or service or devising an insightful marketing strategy. strategy. A N S: F As suggested by the consumer*oriented consumer*oriented philosophy, philosophy, a firm must also pursue customer satisfaction if it is to be successful. !S: 1 "#F: p. $%1  NA!:  NA!: -ommunication  /alue /alue -reation

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3. "egard "egardles lesss of of the the type type of busine business, ss, the consum consumer er*or *orien iented ted market marketing ing philos philosoph ophy y is is the the  best choice among the competing competing alternatives. alternatives. ANS: ! !S: 1  NA!:  NA!: #thics  /alue /alue -reation 4.

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A mar marke keti ting ng phil philos osop ophy hy tha thatt orig origin inat ates es wit with h cons consum umer er need needss is mark market et*o *ori rien ente ted. d.

A N S: F 0t is a consumer*oriented marketing philosophy that begins with customer needs. !S: 1 "#F: p. $%1  NA!:  NA!: #thics  /alue /alue -reation

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5. 0n a smal smalll busi busines ness, s, the the entr entrepr eprene eneur6 ur6ss mark marketi eting ng philos philosoph ophy y typi typical cally ly shapes shapes the the firm firm6s 6s marketing activities.

ANS: ! !S: 1  NA!:  NA!: #thics  /alue /alue -reation 7.

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-ust -ustom omer er sat satis isfa fact ctio ion n is not not the the mean meanss to ach achie ievi ving ng a cert certai ain n goal goal8i 8itt is the the goal goal..

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). 'ecaus 'ecausee many many small small busine business ss owner ownerss have have strong strong produc productio tion n skil skills, ls, they they often often attend attend mostly to the marketing side of the business to compensate. A N S: F 9any small business owners have strong production skills and are weak in marketing ability, and therefore they attend primarily to production considerations. considerations. !S: 1 "#F: p. $%1  NA!:  NA!: -ommunication  ynamics ynamics .

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A detail detailed ed anal analysi ysiss of compe competit titors ors is an impo importa rtant nt part part of of a firm firm6s 6s formal formal market marketing ing plan. plan.

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;. 'ecaus 'ecausee of of the the costs costs invol involved ved,, it is typica typicall for for a busi busines nesss to to form formul ulate ate only only a singl singlee sales sales forecast. A N S: F !ypically, ypically, the sales forecast is a composite of several sales forecasts that are merged together. together. !S: 1 "#F: p. $%4  NA!:  NA!: -ommunication  Finance

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1%. 0f an entr entrepr eprene eneur ur antic anticipa ipates tes seve several ral tar target get mark markets ets,, each each indivi individua duall segmen segmentt must must have have its own corresponding customer profile. ANS: ! !S: 1  NA!:  NA!: -ommunication  /alue /alue -reation

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11. 11. !he market marketing ing strate strategy gy sect section ion provid provides es the the most most deta detaile iled d infor informat mation ion in a form formal al marketing plan. A N S: ! !S: 1  NA!:  NA!: -ommunication  /alue /alue -reation

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1$. "esear "esearche chers rs typic typicall ally y achiev achievee highe higherr respon response se rates rates from from mail mail and and telep telephon honee survey surveyss than than from personal interviews. A N S: F ersonal interviews and telephone surveys typically achieve higher response rates than mail surveys.

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13. 0f an an entre entrepre preneu neurr is using using thei theirr last last name name in the the comp company anyust >ust one d. the 0nte 0ntern rnet et.. ANS: !S: 1  NA!:  NA!: -ommunication  /alue /alue -reation

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$5. $5. At mini minimu mum, m, the the pri price ce of of a pro produ duct ct and2 and2or or ser servi vice ce a. must must cover cover the the cost cost of bring bringing ing it it to marke market. t.  b. must demonstrate a substantial substantial profit. c. must must be at or or below below the the compe competit tition ion.. d. must be based based eclu eclusivel sively y on a break*even break*even analysis. analysis. ANS: A !S: 1  NA!:  NA!: -ommunication  /alue /alue -reation

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$7. !he sectio section n of the the marke marketin ting g plan plan whic which h descri describes bes the ent entrep repren reneur< eurective for the the company. company. 0t reemphasies production production and customer customer preferences. !his approach is often used by new owners with a high knowledge of sales. K A consumer*oriented consumer*oriented philosophy believes that all aspects of the marketing and company should concentrate on the consumer