Managing Small Business An Entrepreneurial Emphasis International Edition 16th Edition by J. William Petty – Test Bank

Managing Small Business An Entrepreneurial Emphasis International Edition 16th Edition by J. William Petty – Test Bank

Chapter 7—The Marketing Plan

TRUE/FALSE

1. Small business marketing is best defined as the performance of distribution activities that affect the flow of goods and services from producer to consumer or user.

ANS: F
Small business marketing involves numerous activities, many of which occur even before a product is created or made ready for distribution or sale.

PTS: 1 REF: p. 200 OBJ: 7-1 TYPE: D
NAT: Communication | Value Creation

2. In order to achieve market success, a firm should concentrate on either providing an excellent product and/or service or devising an insightful marketing strategy.

ANS: F
As suggested by the consumer-oriented philosophy, a firm must also pursue customer satisfaction if it is to be successful.

PTS: 1 REF: p. 201 OBJ: 7-1 TYPE: C
NAT: Communication | Value Creation

3. Regardless of the type of business, the consumer-oriented marketing philosophy is the best choice among the competing alternatives.

ANS: T PTS: 1 REF: p. 201 OBJ: 7-1 TYPE: C
NAT: Ethics | Value Creation

4. A marketing philosophy that originates with consumer needs is market-oriented.

ANS: F
It is a consumer-oriented marketing philosophy that begins with customer needs.

PTS: 1 REF: p. 201 OBJ: 7-1 TYPE: D
NAT: Ethics | Value Creation

5. In a small business, the entrepreneur’s marketing philosophy typically shapes the firm’s marketing activities.

ANS: T PTS: 1 REF: p. 201 OBJ: 7-1 TYPE: C
NAT: Ethics | Value Creation

6. Customer satisfaction is not the means to achieving a certain goal—it is the goal.

ANS: T PTS: 1 REF: p. 202 OBJ: 7-1 TYPE: C
NAT: Communication | Value Creation

7. Because many small business owners have strong production skills, they often attend mostly to the marketing side of the business to compensate.

ANS: F
Many small business owners have strong production skills and are weak in marketing ability, and therefore they attend primarily to production considerations.

PTS: 1 REF: p. 201 OBJ: 7-1 TYPE: C
NAT: Communication | Dynamics

8. A detailed analysis of competitors is an important part of a firm’s formal marketing plan.

ANS: T PTS: 1 REF: p. 203 OBJ: 7-2 TYPE: C
NAT: Communication | Value Creation

9. Because of the costs involved, it is typical for a business to formulate only a single sales forecast.

ANS: F
Typically, the sales forecast is a composite of several sales forecasts that are merged together.

PTS: 1 REF: p. 204 OBJ: 7-2 TYPE: C
NAT: Communication | Finance

10. If an entrepreneur anticipates several target markets, each individual segment must have its own corresponding customer profile.

ANS: T PTS: 1 REF: p. 203 OBJ: 7-2 TYPE: C
NAT: Communication | Value Creation