Small Business Management Exam 3 Questions With Verified Answers

Which of the following is true of the marketing concept? - Answer Business owners must give serious considerations to the needs, desires, and wants of current and prospective customers Which of the following is a primary market research technique? - Answer Telephone Surveys Market segmentation refers to the: - Answer Process of identifying and evaluating various layers of a market Information related to age, income, education, race, and other characteristics of customers are the of __________________ and exert a potent force on a company's marketing plan. - Answer Demographics Market Research answers what important question for the small business owner? - Answer Who are my customers and what are their needs, wants, and desires? John wants to answer the question, "What drives my customers' buying behavior?" The best information to address this question comes from: - Answer Psychographics data The key to marketing success is: - Answer Understanding customers' unique needs, wants, and preferences. One "natural" advantage small businesses have over large businesses, which can be a significant competitive advantage, is: - Answer Relationship marketing __________ Puts the customer at the center of a company's thinking, planning, and action and shifts the focus from a product or service to customers and their needs and wants. - Answer Customer Relationship Management (CRM) Small companies with limited financial resources can often use________ as a way to differentiate themselves from larger competitors - Answer Customer Service ________ refers to developing, maintaining, and managing long-term relationship with customers so that they want to keep coming back - Answer Customer Relationship Management The cost of marketing a product is highest in the: - Answer Introduction Stage The time span between stages in the product life cycle: - Answer Depends entirely on the type of product involved The most common channel of distribution for consumer goods is: - Answer Manufacturer --> Wholesaler ---> Retailer ---> Consumer Low cost but highly effective marketing is also known as: - Answer Guerrilla Marketing One of the first steps in building a marketing plan is identifying a small company's __________, the group of customers at whom the company aims its products and services - Answer target market Surveys, questionnaires, and focus groups are considered to be: - Answer Primary Research The most meaningful unique selling proposition: - Answer Describes the primary benefit of the product The choice of advertising medium is primarily determined by: - Answer The target audience and the message The ___________ cost of an advertising medium compares the actual dollar cost of an ad with the number of potential customers it reaches - Answer Relative One disadvantage of radio as an advertising medium is: - Answer The need for repetition Which advertising medium offers the greatest ability to selectively target a specific audience? - Answer Direct Mail The key to the success of direct mail advertising is: - Answer The accuracy of the customer mailing list The most commonly used method of establishing an advertising budget for a small business is: - Answer The percentage of sales method The __________ method is the most difficult and least used technique of establishing an advertising budget, but is usually the most effective. - Answer Objective-and-task The final price set by the small business owner for products depends on: - Answer The desired image for the products __________ pricing strategy introduces a new product at a low price to gain quick acceptance and extensive distribution in a mass market - Answer Penetration