MGMT 3850 CHAPTER 8 HOMEWORK QUESTIONS AND ANSWERS

MGMT 3850 CHAPTER 8
HOMEWORK QUESTIONS AND
ANSWERS
Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough)
Chapter 8 Building a Powerful Marketing Plan

1) ________ is the process of creating and delivering desired goods and services to customers
and involves all of the activities associated with winning and retaining loyal customers.
A) Marketing
B) Personal selling
C) Promotion
D) Customer service
Answer: A
Diff: 1 Page Ref: 271
AACSB: Communication
Learning Obj.: 1

2) For an entrepreneur, a business plan:
A) is of relatively little importance due to the dynamic nature of the marketplace.
B) is synonymous with the marketing plan.
C) tends to stress how the entrepreneur will operate rather than detailing what he/she wants to
accomplish.
D) contains both a marketing plan and a financial plan.
Answer: D
Diff: 2 Page Ref: 271
AACSB: Communication
Learning Obj.: 1

3) The focus of a small company's marketing plan should be on:
A) preparing accurate financial forecasts.
B) the customer.
C) describing how its products or services are superior to those of competitors.
D) the competition.
Answer: B
Diff: 1 Page Ref: 271
AACSB: Communication
Learning Obj.: 1

4) Small businesses can compete with larger rivals with bigger budgets by employing
unconventional, low-cost creative techniques known as:
A) market research.
B) astonishing customer service.
C) guerrilla marketing strategies.
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,D) psychographics.
Answer: C
Diff: 1 Page Ref: 271
AACSB: Communication
Learning Obj.: 1




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,5) Warren Cassell, owner of Just Books, a very small book store, makes special orders for
customers at no extra charge, provides free gift-wrapping, conducts out-of-print book searches,
offers autographed copies of books, hosts "Meet the Author" breakfasts, and publishes a
newsletter for book lovers. By offering his customers lots of "extras" they do not get at larger
bookstores, Cassell has won a growing base of loyal customers. Cassell is relying on which
marketing strategy?
A) Demographic marketing
B) Transaction selling
C) Individualized marketing
D) Guerrilla marketing
Answer: D
Diff: 2 Page Ref: 271-272
AACSB: Communication
Learning Obj.: 1

6) Guerilla marketing is a marketing approach that takes an unconventional, low-cost and
creative approach to marketing that can give ________ a competitive edge over ________
competitors.
A) small companies; larger
B) larger companies; smaller
C) small companies; entrepreneurial
D) entrepreneurs; small
Answer: A
Diff: 2 Page Ref: 271
AACSB: Analytic Skills
Learning Obj.: 1

7) Which of the following is not one of the objectives a guerrilla marketing plan should
accomplish?
A) Determine customer needs and wants through market research.
B) Determine how the company will be able to serve all customers.
C) Analyze the firm's competitive advantages and build a marketing strategy around them.
D) Create a marketing mix that meets customer needs and wants.
Answer: B
Diff: 2 Page Ref: 273
AACSB: Communication
Learning Obj.: 1




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, 8) The specific group of customers at whom a company aims its good or services is referred to as
a:
A) market segmentation.
B) guerrilla marketing.
C) niche marketing.
D) target market.
Answer: D
Diff: 3 Page Ref: 273-274
AACSB: Reflective Thinking
Learning Obj.: 2

9) Successful marketing requires a business owner to:
A) understand target customers' needs, demands, and wants.
B) offer customers products and services that will satisfy their needs, demands, and wants.
C) provide customers with service, convenience, and value so that they will return.
D) All of the above
Answer: D
Diff: 1 Page Ref: 273-274
AACSB: Communication
Learning Obj.: 2

10) The foundation of every business is:
A) its products and services.
B) satisfying the customer through a customer-driven marketing strategy.
C) doing whatever it takes to earn a profit.
D) operating in a socially responsible manner.
Answer: B
Diff: 2 Page Ref: 274
AACSB: Communication
Learning Obj.: 2

11) Which of the following statements concerning a company's target market is false?
A) Marketing experts contend that the greatest marketing mistake small companies make is
failing to clearly define the target market to be served.
B) A "shotgun approach" to marketing-trying to appeal to everyone rather than to only a small
market segment-is the most effective way to compete with large companies and their bigger
marketing budgets.
C) Small companies are usually better suited to pinpointing target markets that their larger rivals
overlook or consider too small to be attractive.
D) Most successful small businesses have well-defined portraits of the customers they are trying
to attract.
Answer: B
Diff: 3 Page Ref: 273-274
AACSB: Analytic Skills
Learning Obj.: 2


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