Small Business Management Final (11, 12, and 15)

Wink Natural Cosmetics, the company profiled in the opening feature in Chapter 11, sells cosmetics products. According to the case, the company’s initial marketing efforts were aimed at ________.
building the company’s brand
Kyle White owns a sporting goods store that appeals to hunters and fishermen. The market that Kyle is trying to appeal to is called his ________ market.
target
The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets in that industry. This process is called ________.
market segmentation
Which of the following is the correct sequence of events to the process of selecting a target market and position strategy?
A) Create a unique positioning strategy, Select a target market, Segment the market
B) Segment the market, Create a unique positioning strategy, Select a target market
C) Segment the market, Select a target market, Create a unique positioning strategy
D) Select a target market, Create a unique positioning strategy, Segment the market
E) Create a unique positioning strategy, Segment the market, Select a target market
Segment the market, Select a target market, Create a unique positioning strategy
Katherine Ford is thinking about starting a computer company. After doing some research, she has decided that the computer industry can be divided into the following product categories — handheld computers, laptops, tablet computers, PCs, work stations, minicomputers, mainframes and super computers. She is now trying to decide which product category she is the most interested in competing in. The process that Katherine is going through is called market ________.
segmentation
Once a firm has segmented the market, the next step is to ________.
select a target market
A ________ market is a place within a market segment that represents a narrower group of customers with similar interests.
niche
Broadway Dance Center in New York City targets serious dancers who aspire to earn a living dancing in Broadway plays. This specific portion of the overall dance industry is referred to a ________ market.
niche
Which of the following selections is incorrect regarding a firm’s “positioning” strategy?

A) Position is concerned with how the firm is situated relative to its competitors.
B) A firm’s decision about how to position itself relative to its competitors starts with a product or service idea that is tested and refined through feasibility analysis and marketing research.
C) Determining which position in a market to occupy and compete in is a strategic call on the part of a company based on its mission, its overall approach to the marketplace, and its competitive landscape.
D) Once a firm positions itself in a certain way, it must be able to follow through with a product or service offering that lives up to the image it has created.
E) After selecting a positioning strategy, the firm’s next step is to select a target market.

After selecting a positioning strategy, the firm’s next step is to select a target market.
A ________ illustrates a firm’s positioning strategy relative to its major rivals.
product attribute map
A product attribute map is used to help a firm determine if ________.
its positioning strategy is appropriate
Nike’s familiar phrase “Just do it” is an example of a(n) ________.
tagline
Birchbox’s phrase “The Box is Monthly, the Discoveries are Endless” is an example of a(n) ________.
tagline
A firm’s target market is the limited group of individuals or businesses that it goes after or tries to appeal to.
TRUE
The proper sequence in selecting a target market and positioning strategy is (1) craft a unique positioning strategy, (2) select a target market, and (3) segment the market.
FALSE
Markets can be segmented in a number of ways, including by geography, demographic variables, psychographic variables, behavioral variables, and product type.
TRUE
A niche market is a place within a market segment that represents a narrow group of customers with similar interests.
TRUE
A firm’s “position” is concerned with how it is situated relative to its rivals.
TRUE
A product attribute map illustrates the strength of a firm’s niche (or target) market relative to competing markets.
FALSE
A tagline is a catchy phrase that’s used consistently in a company’s literature, advertisements, and even invoices and thus becomes associated with a company to reinforce its position in the market.
TRUE
A(n) ________ is the set of attributes-positive or negative-that people associate with a company.
brand
Which of the following statements is correct regarding the concept of branding?
A) Brands cannot be built through advertising, public relations, sponsorships, social media, or similar techniques.
B) A company doesn’t normally want its customers to identify with its brand.
C) Startups usually start with an established brand.
D) A brand can be one of a company’s most valuable assets.
E) A brand can denote a negative impression of a company.
A brand can be one of a company’s most valuable assets.
Some companies monitor the integrity of their brands through a program of brand ________.
management
According to the textbook, a brand is all of the following except a(n) ________.

A) firm’s reputation
B) firm’s credentials
C) indicator of trust and reduced risk
D) description of a company’s nature
E) written warranty

written warranty
Creating ________ means creating awareness and a sense of anticipation about a company and its offerings.
buzz
When Red Bull was first being introduced into the United States, the company would hand out free samples of its product at extreme sports events (e.g., skateboarding, wakeboarding and mountain biking competitions). Red Bull’s objective was to create ________ surrounding its product.
Which of the following statements is incorrect regarding the process of building a company’s brand, particularly for young firms?
A) A firm’s name, logo, Web site design, and even its letterhead are part of its brand.
B) One of the keys to effective branding is to create a strong personality for a firm.
C) Some companies monitor the integrity of their brands through brand management.
D) Startups must build a brand from scratch, which starts with selecting the company’s name.
E) Most experts recommend a heavy reliance on advertising in building a firm’s brand.
Most experts recommend a heavy reliance on advertising in building a firm’s brand.
________ is a term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm’s valuation.
Brand equity
According to the textbook, a successful brand can increase the market value of a company by ________ to ________ percent.
50; 75
A brand is the set of attributes—positive or negative—that people associate with a company.
TRUE
Creating buzz means creating awareness and a sense of anticipation about a company and its offerings.
TRUE
“Brand premium” is the term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm’s valuation.
FALSE
The 4Ps of marketing refer to a company’s ________.
marketing mix
Which of the following is not one of the four elements that constitute a firm’s marketing mix?
A) Price
B) Promotion
C) Passion
D) Place (or distribution)
E) Product
Passion
A firm’s marketing mix consists of ________.
product, price, promotion, and place
A firm’s ________, in the context of its marketing mix, is the good or service it offers to its target market.
product
A ________ is something that takes on a physical form, such as a smartphone or a laptop computer. A ________ is an activity or benefit that is intangible, such as an airplane trip or advice from an accountant.
product; service
The Partnering for Success feature in Chapter 11 focuses on Caribou Coffee and Bruegger’s Bagels, two companies that have established a cobranding relationship. Cobranding is when two companies ________.
form a partnership to combine their brands
A(n) ________ is an early user of a firm’s product who is willing to give a testimonial regarding his or her experience with the product.
reference account
Before Kimberly Campbell opened her jiffy print store, she processed several large print jobs for local merchants for free, to demonstrate the quality of her service and to solicit feedback. Two of the merchants wrote favorable reviews of Kimberly’s service, and agreed to let Kimberly post the reviews on her company’s Web site. The companies that wrote the favorable reviews are referred to as ________.
referent accounts
The amount of money consumers pay to buy a product is its ________.
price
Which element of the marketing mix is the only one that produces revenue?
Price
In ________-based pricing, the list price of an item is determined by adding a markup percentage to a product’s cost.
cost
Kevin Jackson owns a general contracting company. The way Kevin prices his services is to figure his cost and then add a 33 percent markup. The method that Kevin uses to determine his prices is called ________-based pricing.
cost
In ________ pricing, the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.
value-based
Annie Clarke owns a smartphone app development firm. The way Annie prices her products is to determine what consumers are willing to pay, and then she backs off a bit to provide a cushion. The method that Annie used to determine her prices is called ________ pricing.
value-based
According to the textbook, most experts recommend ________ pricing because it hinges on the perceived value of a product or service.
value-based
Karen Simon recently purchased a digital camera. She considered three cameras-a Sony that was priced at $239.00, a Canon priced at $319.00, and a Nikon priced at $399.00. Karen couldn’t tell much difference between the cameras, so she bought the Nikon, figuring that because it was the most expensive of the three, it must be the best. According to the textbook, Karen was making a ________.
price-quality attribution
________ refers to the activities the firm takes to communicate the merits of its product to its target market.
Promotion
The What Went Wrong feature in Chapter 11 focuses on a series of missteps at JCPenney under the tenure of then CEO Ron Johnson. According to the feature, Johnson’s three most damaging marketing-related mistakes were ________.
Fair and Square Pricing, no testing of ideas in advance, and a total misread of JCPenney’s brand
The Google program called ________ allows advertisers to buy keywords on the Google Home Page.
AdWords
Efforts to establish and maintain a company’s image with the public are referred to as ________.
public relations
Every January thousands of electronic products manufacturers gather in Las Vegas to display their products and to see what their competitors are up to. This type of event is called a ________ show.
trade
The Savvy Entrepreneurial Firm feature in Chapter 11 focuses on Airbnb, the company that created a marketplace for people to list, discover, and book unique spaces in people’s homes or apartments while traveling. According to the feature, Airbnb was able to generate substantial buzz about its service via the use of ________.
blogs
________ marketing is a low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques.
Guerrilla
A(n) ________ channel is a route a product takes from the place it is made to the customer who is the end user.
distribution
A firm’s marketing mix is the assortment of products and services that it sells.
FALSE
An important distinction should be made between a firm’s core product and its actual product. While the core product may be a CD that contains an antivirus software program, the actual product may have a number of characteristics, including a quality level, features, design, a brand name, and packaging.
TRUE
A referent account is an early user of a firm’s product who is willing to give a testimonial regarding his or her experience with the product.
TRUE
Price is the only element in the marketing mix that represents a cost—all other elements produce revenue.
FALSE
In cost-based pricing, the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion.
FALSE
Because of the weaknesses associated with advertising, most startups do not advertise their products broadly.
TRUE
The Google AdWords program allows advertisers to buy ads that will be shown on other Web sites instead of Google’s Home Page.
FALSE
Many startups emphasize advertising over public relations primarily because it’s cheaper and helps build the firm’s credibility.
FALSE
Social plugins are tools that Web sites can use to provide users with personalized social experiences.
TRUE
A firm’s sales process ________.
depicts the steps it goes through to identify prospects and close sales
The first step in the formal sales process described in the book is ________.
prospect for sales leads
Which of the following statements is untrue regarding a firm’s sales process?
A firm’s sales process depicts the steps it goes through to identify its target market.
The final step in the formal sales process described in the book is ________.
follow-up
A firm’s sales process depicts the steps it goes through to identify prospects and close sales.
TRUE
The opening feature focuses on DripCatch, a company that makes a device that catches water that drips off of glassware when it comes out of the dishwasher. The central form of intellectual property that DripCatch is hoping to benefit from is a(n) ________.
patent
Which of the following is an example of intellectual property?
Nike’s swoosh logo
Which of the following is not an example of intellectual property?
A) Proactiv’s formula for acne medication
B) Apple’s trademark
C) Internet domain name www.dripcatch.com
D) Microsoft’s Windows operating system
E) A computer monitor
A computer monitor
Which of the following was not identified in the textbook as one of the common mistakes that entrepreneurs make regarding intellectual property?
A) Not fully recognizing the value of their intellectual property
B) Not properly identifying all their intellectual property
C) Not properly registering their Internet domain names
D) Not using their intellectual property as part of their overall plan for success
E) Not taking sufficient steps to protect their intellectual property
Not properly registering their Internet domain names
There are two primary rules of thumb for deciding if intellectual property protection should be pursued for a particular intellectual asset. First, a firm should determine if the intellectual property has value in the marketplace. Second, a firm should determine if its intellectual property ________.
is directly related to its competitive advantage
Which of the following are the four key forms of intellectual property protection?
A) Patents, copyrights, trademarks, and trade secrets
B) Discoveries, covenants, trademarks, patents
C) Patents, official documents, copyrights, inventions
D) Discoveries, Internet domain names, innovations, trademarks
E) Convents, inventions, opportunities, and copyrights
Patents, copyrights, trademarks, and trade secrets
Which of the following is not one of the four key forms of intellectual property protection?
A) Innovations
B) Copyrights
C) Trademarks
D) Trade secrets
E) Patents
Innovations
Intellectual property is any product of human intellect that is intangible but has value in the marketplace.
TRUE
Patents, trademarks, copyrights, and licenses are the four key forms of intellectual property.
FALSE
A grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for a specific period of time is referred to as a(n) ________.
patent
Which form of intellectual property protection is the only one expressly mentioned in the original articles of the U.S. Constitution?
Patents
The first patent, which was granted for a process of making potash, an ingredient in fertilizer, was signed by ________.
George Washington
Since the first patent was granted, there have been over ________ patents granted in the United States.
8.7 million
Which of the following selections correctly identifies the three types of patents?
A) Manufacturing; process; plant
B) Usefulness; purpose; genetic
C) Explicit; implicit; plant
D) Utility; design; plant
E) Manufacturing; service; other
Utility; design; plant
Amazon.com’s one-click ordering system and Priceline.com’s “name-your-price” business model are examples of ________ patents.
There are three basic requirements for a patent to be granted. The subject of the patent application must be ________.
The average time for the approval of a patent is approximately seven months.
Since the first patent was granted in 1790, the USPTO has granted 8.7 million patents.
TRUE
A utility patent can be obtained for a new product or process or the “idea” for a new product or process.
FALSE
Which of the following is not generally eligible for trademark protection?
A) Trade dress
B) Shapes
C) Words
D) Surnames
E) Designs or logos
Surnames
Which of the following symbols is the copyright bug?
A) ç
B) €
C) ¢
D) ©
E) ™
©
A trademark is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work.