ch 7 pt 3 – Flashcard

question

Oliver figured if people were willing to pay for bottled water, they would also be willing to pay for bottled air. Oliver has forgotten that customers will buy only if they have:
answer

unsatisfied needs.
question

Paul is a CPA (certified public accountant). He offers a variety of services depending on the needs of his customers. Some hire him to perform bookkeeping activities; others have him prepare their tax return. Pau’s market is segmented based on:
answer

benefit variables.
question

Rhoda describes her typical customer as female between the ages of 22 and 35 with at least two years of college and a household income above $50,000 annually. Rhoda is using _________ to describe her customers.
answer

demographic variables
question

Morton sells salt; Domino sells sugar. The best strategy for either of these products would be:
answer

the unsegmented strategy.
question

Meredith is opening a high end shoe store specializing in designer shoes. Which approach is probably the wisest strategy for the marketing efforts of this company?
answer

Multi-segment strategy since she could concentrate on persons wanting shoes for different reasons.
question

In considering its marketing strategy a new venture will typically concentrate on
answer

a single-segment approach.
question

People of all backgrounds, occupations, and income levels wear watches but Rolex focuses only on the high-income portion of the market. Rolex uses a(n) ____________ strategy.
answer

single-segment
question

A ____ estimates how much of a product and/or service will be purchased within a market over a defined period of time.
answer

sales forecast
question

Richard is trying to figure out how many of his product his new business could reasonably expect to sell in its first year. Richard is working on the:
answer

sales forecast.
question

Entrepreneurs should base their market assessments, production schedules, inventory policies, and personnel decisions on
answer

the sales forecast.
question

Forecasting sales for a new venture will be the most difficult when
answer

the owner is unfamiliar with quantitative analysis.
question

Because he lacks strong forecasting skills, Stan should:
answer

all of the above.
question

Shiloh has begun the sales forecasting procedure with a variable that has a very large scope and then systematically is working down to the sales forecast. Shiloh is using the:
answer

breakdown process.
question

Theodore has identified all the buyers in a market’s submarkets and then totaled the estimated demand for all the submarkets. Theodore used the:
answer

buildup process
question

Ideas Unlimited is a consulting firm that provided retailers with information about regional sales trends. To estimate demand in the market for its services, the firm’s marketing department identifies all buyers in each category of retailers and determines how much business is possible. The market demand estimate is based on the
answer

buildup forecasting process.
question

What determines whether the sales forecasting process is direct or indirect?
answer

the nature of the predicting variable
question

Using the number of births in a historical record to predict the number of driver licenses issued in subsequent years is an example of the use of a(n) ____ variable in forecasting.
answer

surrogate
question

Sheena is using her last three years’ sales to forecast next year’s sales. Sheena is using the _________ method.
answer

direct
question

Sullivan just bought a new pickup truck with a snow plow. He contacted the National Weather Service to get information about snowfalls to help prepare his sales forecast. Sullivan is using:
answer

a surrogate variable.
question

In preparing a sales forecast, it is desirable to have forecasts covering the “most likely”, “best case” and “_____ case” scenarios
answer

worst
question

Allison is gathering information about other producers in her industry for inclusion in the ______________ section of her marketing plan.
answer

Competition
question

Brenda is creating the marketing plan for her bakery. Many of the recipes she will use were handed down through her family and she would like to keep them secret. These recipes will be considered:
answer

intellectual property.
question

Special consideration should be given to the selection of the ____________ and the logic of this selection should be explained in the marketing plan.
answer

Company name
question

The risk of being the lower-cost producer of a good or
answer

customers will abandon your business when someone else offers a lower price.
question

why would a small business conduct less marketing research than a larger, established firm
answer

Marketing research is expensive.
question

A ____ is defined as a group of customers or potential customers who have purchasing power and unsatisfied needs.
answer

Market
question

Odessa is writing the marketing plan for her bed and breakfast. She has written that her market inlcudes everyone from infants to the elderly. This is incorrect because
answer

customers must have purchasing power.

Get instant access to
all materials

Become a Member