MGT 241 Ball State Ch 8 Quiz

____________ marketing strategies are unconventional, low-cost, creative marketing strategies designed to give small companies an edge over their larger, richer, more powerful rivals.
Bootstrap
What is the primary focus of a small​ company’s marketing​ plan?
the customer
The average company in the US spends _____ percent of its sales on marketing efforts.
4
Which of the following statements about the U.S. population and its characteristics is
false?
By 2020, Baby Boomers’ spending will increase dramatically, driving the U.S. economy forward
​__________ marketing involves gathering data on individual customers and developing a marketing program designed to appeal to their particular​ needs, tastes, and preferences.
Individualized (one-to-one)
The study of important population characteristics, such as age, income, education, race, and others is called
Demographics
Which type of market research is data that an entrepreneur collects himself or herself; for example, from a survey of potential customers, and then analyzes?
Primary
Which type of market research relies on data that has already been compiled and is available, often at a reasonable cost or even free?
Secondary
Effective marketing requires access to important information about a​ company’s customers.​ ________ is a process in which computer software that uses statistical​ analysis, database​ technology, and artificial intelligence finds hidden​ patterns, trends, and connections in data so that business owners can make better marketing decisions.
Data mining
Which of the following market research tools is an example of primary research?
survey of existing customers’ views about a new product line that an entrepreneur is considering selling.
Any commercial news covered by the media that boosts sales but for which a small company does not pay is called:
Publicity
The “formula” for a business to identify the right cause to support is:
mission statement + entrepreneur’s personal passion + customer demographics = ideal cause
When making a product or service purchase decision, ____ percent of Americans consider a company’s business practices.
82
A company’s _________ answers the critical question that every customer asks, “What’s in it for me?”
unique selling proposition
Which of the following statements about a company’s unique selling proposition (USP) is
false?
The best way to define a powerful USP is to focus on the tangible benefits that the company and its products or services provide rather than on their intangible, psychological, or emotional benefits
Which of the following social media tools are most popular among entrepreneurs for marketing their​ businesses?
LinkedIn, Facebook, and Twitter
When using Twitter to connect with customers, about _____ percent of the content a business sends out should be about customers, and _____ percent should be about the business.
80 / 20
___________ percent of companies now use blogs as part of their marketing strategies
62
Which of the following statements about blogs is false?
High pressure sales pitches work best in the blogging world.
Which of the following statements about providing outstanding customer service is
false?
The majority of customers who have a negative customer service experience with a company are not willing to return to that​ business, but they do not tell others about their negative experience.
For every complaint that a company receives from a customer, ____ other complaints go unspoken.
17; Customers who complain actually help business owners that cannot fix a problem if they do not know about it.
Retaining existing customers is important for every business. Suppose that a small company’s customer base is increasing at 25 percent a year; however, it retains only 80 percent of its existing customers. This company’s effective growth rate is
5 percent
Dunnhumby, a global customer loyalty consulting firm, reports that a company must land ____ new customers to offset the impact of one lost loyal customer.
12 to 20
Attracting a new customer costs the typical business ______ as much as keeping an existing customer.
seven to nine times
The total quality management philosophy focuses on:
achieving continuous improvement in the quality a company provides to customers
Which of the following statements about total quality management is false?
The best way to create a quality product is to inspect, inspect, and inspect finished products before they are shipped to customers
When evaluating the quality of a product, what factor is most important to Americans?
reliability​ (average time between​ failures)
Research shows that companies that use time compression management strategies have discovered that manufacturing takes up ____ percent of the total time between receiving an order and getting the product into the customer’s hands; the rest is consumed by administrative and clerical tasks.
5 to 10