MGT 3111 Ch.6

An entrepreneur’s market is ________.
A) The building where his or her business is located
B) A three-square-block area surrounding his or her location
C) His or her business’s promotional activities
D) The group of people who are current and possible future customers
E) All of the above
D
What is a focus group?
A) A method of market research that focuses on how the industry is performing
B) A method of market research that involves collecting statistics about a group of people who might use a product
C) A method of market research that involves bringing together some people who might use a product and having a researcher question them about it
D) A method of market research that focuses on competitor strengths
E) All of the above
C
In doing secondary research, there are several choices to help you. Among these are ________.
A) Magazine articles
B) Internet research
C) Business library
D) Books
E) All of the above
E
The product life cycle phases include ________.
A) Growth
B) Maturity
C) Introduction
D) Decline
E) All of the above
E
The marketing term that describes owning a perception in the minds of consumers is called ________.
A) Mind share
B) Consumer perception
C) Consumer influence
D) Market share
E) Market segment
A
________ ask(s) people directly through interviews or questionnaires about their perceptions of a product or service.
A) Surveys and focus groups
B) Secondary research methods
C) Industry research
D) General research
E) Statistical research
A
The set of four stages that a product or market goes through from its beginning until its end is called the ________.
A) Product life cycle
B) Marketing cycle
C) Promotion cycle
D) Merchandise life cycle
E) Phases of product maturity
A
Understanding the status and trends of an industry can be aided by ________.
A) Checking out the internet public library, your local Small Business Administration, chamber of commerce, or local business school or college library
B) Looking for recent articles on the industry in magazines or by using Google or other search engines
C) Looking on competitors’ Web sites
D) All of the above
E) None of the above
D
There is a subtle difference between the ________ and the ________ of a product. One is a fact while the other is a perception.
A) Features, benefits
B) Revenue, costs
C) Sales, marketing
D) Marketing, penetration
E) None of the above
A
Dividing the market by purchase behaviors that have been observed is ________ segmentation.
A) Behavioral
B) Psychographic
C) Demographic
D) Geographic
E) All of the above
A
When has a market become saturated?
A) When there has been so much advertising and publicity that almost every person in the market is aware of the product
B) When competitors have entered the market and forced the price of the product so low that the businesses selling it can no longer earn a profit
C) When most of the people in the market who are interested in the product have already purchased it
D) When nobody wants to buy the product
E) When all customers decide that they do not like the product
C
Which of the following is a step in determining how customers decide to buy a product?
A) Analyze the buying process
B) Think about who might actually buy it
C) Determine the need it meets
D) All of the above
E) None of the above
D
Which business function do experts agree you should focus on first when preparing to start a business?
A) Marketing vision
B) Operations
C) Financing
D) Production
E) Human resources
A
Smart marketers always emphasize ________.
A) Benefits, not prices
B) Benefits, not features
C) Features, not benefits
D) All of the above
E) None of the above
B
Dividing a population on the basis of age, gender, income, or education is ________.
A) Demographics
B) Marketing statistics
C) Behavioral data
D) Psychographics
E) Geographics
A
Which of the following aspects of a product/service is the most important to focus on when selling?
A) Benefits
B) Features
C) Price
D) Friendliness
E) Closing the deal
A
Which of the following is NOT a step in the buying process?
A) Demographic analysis
B) Evaluation of purchase
C) Awareness
D) Information search
E) Evaluation of alternatives
A
Consumers who have a similar response to a certain type of marketing can be classified as a ________.
A) Market segment
B) Market
C) Market section
D) Market part
E) Market division
A
The positioning statement for a business includes its name/brand, its competitive industry/category, its ________, and its audience/target market.
A) Benefits or points of difference
B) Features and points of difference
C) Features and points of similarity
D) Benefits and similarities
E) Features and benefits
A
The most important thing you should do before launching your product or service is ________.
A) Thoroughly research the market
B) Design your logo
C) Raise enough capital
D) Print business cards
E) Have a working prototype
A
Nike sells sneakers, but it also markets sneakers, using ________ to get its message out to customers.
A) Advertising and publicity
B) Advertising
C) Publicity
D) None of the above
A
Positioning your product in the market involves ________.
A) Buying advertising
B) Obtaining publicity
C) Communicating your competitive advantage to the customer
D) Demonstrating the cheapest price
E) Promoting special sales
C
Research carried out indirectly through other existing resources is called ________.
A) Secondary research
B) Tributary research
C) Ancillary research
D) Literature analysis
E) Primary research
A
By teaching customers how to use its products, Home Depot is helping customers see the ________ of its products.
A) Benefits
B) Features
C) Ramifications
D) Structure
E) Qualities
A
Marketing is the satisfying of customer needs ________.
A) At a profit
B) At no profit
C) With no attention to profit
D) Regardless of profit
E) At the breakeven point
A
Market research is typically ________.
A) Ongoing: You always do market research
B) Complete a year after product introduction
C) Complete prior to product introduction
D) Complete within six months after introduction
E) Complete when the product or service is introduced
A
Psychographic analysis and behavioral analyses are examples of methods of ________.
A) Market segmentation
B) Marketing
C) Market research
D) Market study
E) Market investigation
A
Marketing is ________.
A) Satisfying customers at a profit
B) The business function that identifies customers
C) The business function that identifies customer needs
D) The business function that identifies customer wants
E) All of the above
E
Market research can help you get a fix on who your customers are by determining ________.
A) What kind of income they earn
B) What benefit your product or service offers that would best or most attract them
C) How old they are
D) Where they live
E) All of the above
E
What is the third step of deciding who the potential customers are for your business?
A) Understanding who needs your product or services
B) Understanding who might actually buy your product or service
C) Analyzing the buying process that leads customers to your product or service
D) Understanding customer relationships
E) Analyzing family values
C
Statistics dealing with the behavior of groups of people are called geographics.
False
A market is identified by attitudinal, behavioral, demographic, and other characteristics.
True
Industry associations, chambers of commerce, and public agencies frequently collect demographic and statistical data on and for their members or constituents.
True
Marketing is an isolated business function.
False
Large corporations spend very little money on market research before they introduce a product or service.
False
The customer realizes a need in the awareness step of the buying process.
True
The methods to use for industry research do not overlap with those for customer research.
False
Annual reports of competitors can provide information for benchmarking and include industry insights.
True
Written survey questions should be clearly stated, easy to understand, and relatively short.
True
Secondary research is carried out indirectly, through existing resources.
True
In the introduction stage of the product life cycle, your product or service is new to the market and is essentially unknown.
True
Secret shoppers are part of the tracking primary research category.
False
Marketing is the business function that identifies customers and their needs and wants.
True
Online searches are an example of secondary research.
True
Primary research is conducted directly on a subject or subjects.
True