ch 7 T/F – Flashcard
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If an entrepreneur anticipates several target markets, each individual segment must have its own corresponding customer profile.
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A detailed analysis of competitors is an important part of a firm's formal marketing plan.
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The marketing strategy section provides the most detailed information in a formal marketing plan.
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It is best to write a marketing plan before collecting marketing research data.
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Marketing research is defined as the gathering, processing, reporting, and interpreting of marketing information.
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Small businesses typically conduct less marketing research than big businesses, partly because they lack an understanding of the basic marketing research process.
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11. Researchers typically achieve higher response rates from mail and telephone surveys than from personal interviews.
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12. Because of the considerable cost, time, and effort, pre-testing is generally considered necessary only in the case of extensive, complex questionnaires.
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13. Personal interview surveys are attractive as a marketing research method because these are inexpensive to conduct.
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14. Small business owners can now buy inexpensive personal computer software that can perform statistical calculations and generate report-quality graphics.
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15. Marketing research is an effective supplement, but not a replacement, for the intuitive judgment of entrepreneurs.
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16. A market is best defined as a geographical area that is of commercial interest to the entrepreneur.
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17. Determining market potential is the process of locating and investigating buying units that have purchasing power and needs that can be satisfied with the product and/or service being offered.
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18. When a strategist divides the total market for a product and/or service into groups with similar needs, so that each group is likely to respond to the same marketing strategy, he or she is engaging in a practice called market segmentation.
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19. Because of the relatively inconsequential amount of sales conducted by a typical small business, the majority of entrepreneurs need not be concerned with formulating accurate sales forecasts.
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Sales forecasts are typically expressed in dollars or units.
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Because sales forecasts revolve around specific target markets, the market should be defined as precisely as possible.
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The forecasting process can be characterized by the point at which the process is started and the nature of the predicting variable.
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A buildup process requires a small business to identify all potential buyers in a target market's submarkets and then combine these estimates to determine the calculated demand.
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A chain-ratio method of sales forecasting, or a buildup process, is frequently used for consumer products forecasting.
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When prior sales information is available, indirect forecasting is the best method to predict future sales.
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