Homework 5 MGT 249

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Pennsylvania College Of Technology *

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249

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Marketing

Date

Jan 9, 2024

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docx

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Uploaded by ProfIce15543

Homework 5 – Chs. 9, 10, 11, 18 Name: 1. The focus of the small company's (or any company’s) marketing plan should be: A) its product or service. B) the customer. C) attracting capital. D) an evaluation of key competitors. 2. Market research: A) provides the information that is foundational to the marketing plan. B) is the process used to set the goals and objectives of the marketing plan. C) is prohibitively expensive for the small business owner. D) is relatively unimportant to the small business owner if the owner is close to his/her customers. 3. John wants to answer the question, "What drives my customers' buying behavior?" The best information to address this question comes from: A) demo/geographic data. B) geographic data. C) demographics data. D) psychographics data. 4. Most marketing experts contend that the greatest marketing mistake small businesses make is: A) underpricing their products and services. B) spending too little on advertising. C) failing to identify the target market. D) spending too little on quality improvement. 5. The total quality management (TQM) concept: A) relies on quality inspections through an army of quality control inspectors. B) strives to achieve quality not just in the product or service itself, but in every aspect of the business and its relationship with the customer. C) focuses on reducing the time it takes to fulfill a customer's request for a product. D) is built on market research. 6. Small companies with limited financial resources can often use ________ as a way to differentiate themselves from larger competitors. A) innovation B) lower prices with higher quality C) high price and high quality D) customer service 7. The per unit cost of marketing a product is highest in the: A) introductory stage. B) growth and acceptance stages. C) maturity stage. D) saturation stage. 8. Bootstrap marketing also is sometimes known as: A) ambush marketing. B) target marketing. C) guerilla marketing. D) customer marketing.

9. The most meaningful unique selling proposition: A) identifies as many product features as possible. B) stresses price. C) counters the strengths of the competition. D) describes the primary benefit of the product. 10. The choice of advertising medium is primarily determined by: A) what media the competition uses. B) what media the industry focuses on. C) the target audience and the message. D) the unique selling proposition and budget. 11. Which advertising medium offers the greatest ability to selectively target a specific audience? A) Direct mail B) Television C) Newspaper D) Radio 12. Under the ________ method of establishing an advertising budget, the owner sees advertising not as a necessity, but as a luxury. A) matching competitors B) what-is-affordable C) percentage of sales D) objective-and-task 13. The ________ method is the most difficult and least used, but also the best technique of establishing an advertising budget. A) percentage of sales B) spending what competitors spend C) objective-and-task D) what-is-affordable 14. If a small business owner wants to use television advertising, he/she should: A) go for national advertising to get the maximum absolute cost advantage. B) use specific cable stations that reflect the company’s target market. C) consider radio instead because they have identical advantages. D) remember that television is one of the least flexible media. 15. Small business owners get into trouble when determining their price floor when they: A) focus on what the customer will pay. B) assume their costs are the same as their competitors'. C) begin to track financial ratios to determine what they are doing. D) use the price floor as the minimum price in their acceptable price range. 16. ________ pricing strategy introduces a new product at a low price to gain quick acceptance and extensive distribution in a mass market. A) Penetration B) Skimming C) Discount D) Sliding-down-the-demand-curve

17. The Omega Company introduces products with a higher-than-normal price in an effort to quickly recover the initial developmental and promotional costs of the product. The Omega Company is pursuing a ________ pricing strategy. A) fixed-price B) skimming C) penetration D) loss leader 18. Jerry is developing a pricing strategy for an established line of home care products. His premium products are priced over $4000, his best products are in the $2540 range, and his good products are $1015 range. Jerry is using a ________ strategy. A) penetration pricing B) leader pricing C) price lining D) geographic pricing 19. When a small business is faced with price competition from a much larger competitor, it should consider: A) going head-to-head on prices by lowering its cost structure. B) using non-price competition by offering value added service. C) make rapid, continual price changes to keep the competition off balance. D) move to a premium price strategy by offering higher scale goods and services. 20. If a haberdasher purchases a tie for $12 and plans to sell it for $18, the gross profit margin would be: A) 33%. B) 50%. C) 175%. D) 100%. 21. Most service firms base their prices on: A) fairly stable pricing policies. B) the cost of the service plus an estimate of the value they add in delivering the service. C) market surveys on their respective industries. D) an hourly basis for services rendered. 22. Price wars usually begin when: A) the economy is in turmoil. B) when there are more than 4 competitors. C) when one competitor believes that they can achieve a higher volume through lower price. D) small businesses enter the market dominated by bigger giants. 23. Most often, small business owners ________ their goods and services, believing that ________ prices are the only way they can achieve a competitive advantage. A) over price; high B) under price; low C) over price; low D) under price; high 24. ________ would be most important to someone wishing to locate a manufacturing facility for computers. A) Proximity of the target market B) Business climate C) Labor supply D) Proximity to raw materials

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25. The index of retail saturation is: A) the ratio of a trading area's sales potential to its sales capacity. B) retail expenditures times retail facilities divided by the number of customers. C) a buying power index. D) retail facilities times the number of customers divided by the retail expenditures. 26. A ________ is the traditional center of town. A) central business district B) business area C) hub D) community center 27. Which of the following factors influences the size of a retail store's trading area? A) The location of competitors B) The physical layout of the store C) Zoning regulations D) The location of suppliers 28. As the service economy has grown, a business location being used more and more by service businesses is: A) the industrial park. B) home. C) central business districts. D) outlying areas. 29. When evaluating existing buildings, retailers: A) need to find the lowest cost per-square-foot possible due to the need for maximum display space. B) should locate in store space previously occupied by a similar type of business. C) should recognize that the store's location, appearance, and layout create an image for the customer of the business. D) can neglect the interior appearance of the building if it has a strong exterior appeal. 30. A(n) ________ layout divides a store into a series of individual shopping areas, each with its own theme. This layout can create a distinctive image for a business. A) boutique B) grid C) angled D) free-form

Homework 5 MGT 249

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