ch 7 T/F

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.
F
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.
F
Regardless of the type of business, the consumer-oriented marketing philosophy is the best choice among the competing alternatives.
T
Because many small business owners have strong production skills, they often attend mostly to the marketing side of the business to compensate.
F
If an entrepreneur anticipates several target markets, each individual segment must have its own corresponding customer profile.
T
A detailed analysis of competitors is an important part of a firm’s formal marketing plan.
T
The marketing strategy section provides the most detailed information in a formal marketing plan.
T
It is best to write a marketing plan before collecting marketing research data.
F
Marketing research is defined as the gathering, processing, reporting, and interpreting of marketing information.
t
Small businesses typically conduct less marketing research than big businesses, partly because they lack an understanding of the basic marketing research process.
T
11. Researchers typically achieve higher response rates from mail and telephone surveys than from personal interviews.
F
12. Because of the considerable cost, time, and effort, pre-testing is generally considered necessary only in the case of extensive, complex questionnaires.
F
13. Personal interview surveys are attractive as a marketing research method because these are inexpensive to conduct.
F
14. Small business owners can now buy inexpensive personal computer software that can perform statistical calculations and generate report-quality graphics.
T
15. Marketing research is an effective supplement, but not a replacement, for the intuitive judgment of entrepreneurs.
T
16. A market is best defined as a geographical area that is of commercial interest to the entrepreneur.
F
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.
T
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.
T
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.
F
Sales forecasts are typically expressed in dollars or units.
T
Because sales forecasts revolve around specific target markets, the market should be defined as precisely as possible.
T
The forecasting process can be characterized by the point at which the process is started and the nature of the predicting variable.
T
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.
T
A chain-ratio method of sales forecasting, or a buildup process, is frequently used for consumer products forecasting.
F
When prior sales information is available, indirect forecasting is the best method to predict future sales.
F