Small business management

1) The marketing plan should include certain key objectives, such as:

a. determining product costs through market research
b. determining what costing strategies to use
c. pinpointing the specific target markets a small business will serve
d. discovering what the company's ETDB index is

2) A demographic trend is like a train for the small business owner in that:

a. the small business will be "run over" if it doesn't get out of the way and try to work with the "spin-offs" from the trend
b. he/she needs to catch it and ride it to wherever it is going
c. he/she needs to discover where it is going early and decide whether or not to get on board
d. it is a slow process that is easily caught at several points, and the small business owner has lots of time to consider his/her options

3) ________ 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 and predictions about customer's behavior.

a. Customer Relationship Management
b. Simulation
c. Data Mining
d. Data Discovery

4) To build an effective customer service program, it is important to:

a. swiftly discipline employees who mistreat customers
b. offer low prices
c. train key employees to watch for and intervene when there are problems
d. let managers wait on customers occasionally

5) Time compression management (TCM) involves:

a. decreasing the time it takes a product to move from introduction to the maturity stage of the product life cycle
b. enhancing the quality of existing products
c. speeding new products to market
d. shortening the sales clerks' response time to customers entering the retail store and then being servedUnit 3 Examination 141 BAM 418 - Small Business Management

6) The primary opportunity for time compression management (TCM) lies in its application to:

a. the administrative process
b. the marketing process
c. the purchasing process
d. the production process

7) The cost of marketing a product is highest in the:

a. saturation stage
b. introductory stage
c. growth and acceptance stages
d. maturity stage

8) The choice of advertising medium is primarily determined by:

a. what media the competition uses
b. the unique selling proposition and budget
c. the target audience and the message
d. what media the industry focuses on

9) Radio:

a. can reach nearly any target market
b. is the one medium that customers spend the most time paying attention to
c. is the most expensive advertising medium in terms of relative costs
d. is very susceptible to "zapping"

10) Radio ads are limited to ________ or less.

a. 15-seconds
b. 30-seconds
c. 60-seconds
d. 10-seconds

11) Which of the following times would be considered radio "prime time?"

a. 7 P.M. to Midnight
b. 4 P.M. to 7 P.M.
c. 6 A.M. to 10 A.M.
d. both B and C Unit 3 Examination 142 BAM 418 - Small Business Management

12) An important advantage of specialty advertising is its:

a. potentially broad reach
b. low specific costs
c. versatility
d. ability to significantly lower the cost of sales calls

13) A successful public relations technique used by local businesses to sponsor and promote fund-raising activities of nonprofit groups is called:

a. cooperative advertising
b. shared advertising
c. integrated marketing
d. cause marketing

14) When pricing products, it is important to remember that:

a. pricing is more an intuitive than a quantitative process
b. a customer orientation in price setting is most important
c. there is an ideal price that customers will pay for a given product or service
d. once the acceptable price range is found, prices should not be changed again

15) ________ is the average markup required on all merchandise to cover the cost of items, incidental expenses, and a profit.

a. Initial markup
b. Cost plus markup
c. Contributing margin
d. Direct markup

16) Which price strategy is mostly used for moving stale, outdated, damaged merchandise?

a. Markdown pricing
b. Bundling
c. Multiple pricing
d. Skimming

17) ABC manufactures computer hardware. The marketing executives, in order to increase the market share, forced a business to accept a suggested retail price and not to sell the items below the stated price. This is a violation of what?

a. As long as the manufacturer offer rebates, they can do whatever they want.
b. This practice violates the Fair Price Protection Act
c. This practice violates the Sherman Antitrust Act.
d. There is no violation. The manufacturer has the rights to tell a business at what price they should resell the computer.

18) Most often, small business owners ________ their goods and services, believing that ________ prices are the only way they can achieve a competitive advantage.

a. under price, low
b. over price, high
c. under price, high
d. over price, low

19) ________ involves a transaction in which a company selling goods in a foreign country agrees to promote investment and trade in that country.

a. Bartering
b. Countertrade
c. Export
d. Import

20) A/an ________ is a government or privately-owned company established in a foreign country for the purpose of buying goods made there.

a. foreign distributor
b. export trading company
c. export merchants
d. resident buying office

21) When collecting for the sale of foreign goods, a small business will use a ________, an agreement between their bank and the foreign buyer's bank that guarantees payment.

a. letter of credit
b. tariff voucher
c. foreign sales agreement
d. bank draft

22) Understanding the customer needs and desires is a component of:

a. market access
b. social / cultural environment
c. product potential
d. demographic / physical environment

23) The items purchased most often online are:

a. clothing and books
b. computer hardware
c. travel services
d. all of the above Unit 3 Examination 144 BAM 418 - Small Business Management

24) In regards to strategies for E-success, which goal(s) of e-commerce are no different from traditional off-line businesses?

a. boost profits
b. improve efficiency
c. to increase sales
d. all of the above

25) Another word for browse-to-buy is:

a. controller
b. conversion
c. browse-to-purchase
d. tracker.