question

Explain why you do not have to be number one in a market to have a successful business

answer

competitive advantage you can attack the market at a different angle.

question

What are needs, and how do they differ from desires (wants) or demands?

answer

Needs: Northwestern University professor Philip Kotler's classic marketing textbook defines human needs as "states of felt deprivations." Wants: Kotler defines wants as "the form taken by human needs as they are shaped by culture and individual personality." Wants are objects that will satisfy a need. "I'm hungry; I want a Big Mac," a New Yorker might say. "I'm hungry; I want jerk chicken," a Jamaican might say. Demands: Demands, Kotler says, are wants that are backed by buying power. A poor student might translate hunger into a demand for a Big Mac, while a well-to-do lawyer might translate hunger into a demand for an expensive steak dinner. People demand the products and services that best satisfy their wants within the limitations of their resources.

question

Explain the basics of the product life cycle.

answer

1. Introduction- this stage is where the product will be introduced to its potential costumer. 2. Growth- this stage is where the product will attract attention from your competitive. 3. Maturity- consumers know about you and you competitors 4. Decline- your competitive advantage weakened and sales profits are declining.

question

Which is not a method of market segmentation?

answer

competitive

question

Which of the following is not true of secondary market research ?

answer

it is the place to start

question

Which of the following is not true of secondary market research?

answer

Correct it is less expensive than primary research

question

Which of the following is not true of secondary market research?

answer

Correct it is a possible solution

question

Market research that is guided through group discussions is called:

answer

focus groups

question

The first step of developing a marketing plan is:

answer

consumer analysis.

question

Marketing is the satisfying of customer needs

answer

at a profit.

question

Demographics are:

answer

statistics that describe a population in detail.

question

Most business experts agree that a business should develop its marketing plan:

answer

first

question

The first step of developing a marketing plan is:

answer

consumer analysis.

question

Smart marketers emphasize a product's:

answer

benefits

question

Demographics are:

answer

statistics that describe a population in detail.

question

Behavioral segmentation is:

answer

dividing the market by purchase behaviors that have been observed.

question

Why is it important to consider opportunity cost when making a decision?

answer

It is important to consider opportunity cost because cost/benefit analysis is incomplete without considering opportunity cost.

question

A business opportunity is not necessarily the same as a business idea.

answer

True

question

A free enterprise system discourages entrepreneurs who waste limited resources.

answer

True

question

A service is intangible, meaning

answer

you can't actually touch it.

question

A small business is one that has fewer than 600 employees, and sales of products and services less than $7 million in one year.

answer

False

question

An entrepreneur can be both an employee and an owner.

answer

True

question

An entrepreneur must strike an excellent balance between being a risk taker and someone who carefully evaluates a decision.

answer

True

question

Explain how a business opportunity differs from a business idea.

answer

For an idea to be an opportunity, it must lead to the development of a product or service that is of value to a customer.

question

Opportunity cost is:

answer

the cost of your next-best investment.

question

The desire to make money is:

answer

in itself not a good enough reason to start a business a great reason to start a business

question

Why is it important to show that you have "skin in the game" in a business plan?

answer

Because it will show your audience that you are devoted, intellegent, and economical invested in the business.

question

What three financial statements should be included in a business plan, give a brief explanation of each.

answer

. income statement - sum up profit and loss over a time period. 2. cash flow- is receipts cash taken in and out 3. balance sheet - shows what a bsiness own,owe and worth

question

A well-written business plan can save an entrepreneur time.

answer

True

question

An IPO is the most common way entrepreneurs exit their companies.

answer

False

question

Entrepreneurs should not show losses in their business plans.

answer

False

question

Making the beliefs, values, and behavioral norms explicit and intentional builds the __________ of an organization.

answer

culture

question

Writing a business plan can ensure that an entrepreneur

answer

figures out how to make her business work.

question

Financial projections should be very optimistic to attract financing.

answer

False

question

The quick verbal summary of a business plan is called a(n)

answer

elevator pitch.

question

The cover page of a business plan should contain

answer

contact information.

question

The ______________ section of the business plan should be written last.

answer

executive summary

question

Explain why a competitive advantage must be sustainable.

answer

A competitive advantage must be sustainable, meaning that you can keep it going.

question

For a business to be successful, a competitive advantage must be:

answer

sustainable.

question

The cost of goods sold is:

answer

the cost of producing one additional unit of a product.

question

To be successful, a business must:

answer

satisfy a consumer need at a price that provides the business with a profit.

question

Total revenue - Total cost of goods sold =

answer

total gross profit

question

What is a "competitive advantage?"

answer

whatever you can do better than the competition that will attract customers to your business

question

What does an entrepreneur use as the unit of sale when he/she sells more than one product?

answer

An entreprenur uses combination as the unit of sale.Average sale per customer - Average cost of sale per customer = Average gross profit per customer

question

Which is not one of the six factors of competitive advantage?

answer

Correct opportunity

question

Which is not one of the four basic types of business?

answer

customer service

question

A competitive advantage must be sustainable because you want to be able to keep your word on your competitive advantage.

answer

A competitive advantage must be sustainable, meaning that you can keep it going. If you decide to beat the competition by selling your product at a lower price, your advantage will not last long if you cannot afford to continue at that price. Small business owners should realize that price alone is probably not going to work as an advantage for long. A bigger business can almost always beat you on price because it can buy larger quantities from its suppliers, who will be more willing to give them a lower price.

question

Competitive strategy combines:

answer

business definition + competitive advantage.

question

ist the types of fixed costs? (USAIIRD) How do they compare to variable cost? Why is understanding what your fixed costs are each month crucial to the success of your business?

answer

Fixed costs are costs that do not vary with sales. They can be remembered as USAIIRD: Fixed cost need to be paid whether you sell one hamburger or 5000. Variable costs only are cost when you sell something. You only buy as many buns as your are going to sell.

question

Breakeven is the point at which:

answer

Correct a business sells enough units to cover its fixed costs.

question

When companies build a brand they focus on one key

answer

benefit.

question

Which of the following is considered public relations?

answer

public speaking

question

Which is not one of the four P's of marketing?

answer

publicity

question

Successful advertising can achieve all of these objectives except:

answer

ensuring growth of declining products.

question

How can you pick a pricing strategy that will be right for your business?

answer

choose a pricing strategy that communicates your competitive advantage

question

A press release should be __________ long.

answer

several paragraphs

question

A banner ad is:

answer

Correct an ad that runs on a web site.

question

Cause-related marketing is:

answer

inspired by a commitment to a social, political, or environmental cause.

question

How does a pitch letter differ from a press release?

answer

Correct a pitch letter explains the story behind a press release

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