Small Business Management Entrepreneurship And Beyond 5th Edition By Timothy S. Hatten – Test Bank

chapter 11

Small Business Marketing: Strategy and Research

True/False Questions

1. T F    Marketing is more than selling or advertising.

Ans:  True       LO:  1       Page:  265  AACSB:  Analytic

2. T F    According to Peter Drucker, the two basic functions of business are marketing and innovation.

Ans:  True     LO:  1       Page:  265    AACSB:  Analytic

3. T F    Business began adopting the marketing concept in the 1970s.

Ans:  False       LO:  1       Page:  266  AACSB:  Analytic

4. T F    Purple cows represent the creation of a competitive advantage.

Ans:  True       LO:  1       Page:  266  AACSB:  Analytic

5. T F    Marketing strategies should state what should be accomplished and the process to be used to achieve that goal.

Ans:  True       LO:  2       Page:  267  AACSB:  Analytic

6. T F    Marketing objectives can be broken into two groups; marketing performance objectives and marketing support objectives.

Ans:  True       LO:  2       Page:  267  AACSB:  Analytic

7. T F    Small businesses in production industries must pay special attention to marketing.

Ans:  False     LO:  2       Page:  267  AACSB:  Analytic

8. T F    The build-up method of forecasting sales begins with an estimate of the total market potential for a specific product or an entire industry.

Ans:  False     LO:  2       Page:  269  AACSB:  Analytic

9. T F    Market segmentation is the process of dividing the total market for a product into identifiable groups or target markets.

Ans:  True     LO:  2       Page:  269    AACSB:  Analytic

10. T F    In order to identify the most attractive target markets for a business, characteristics that affect the buying behavior of people should be analyzed.

Ans:  True       LO:  2       Page:  270  AACSB:  Analytic

11. T F    Characteristics or ways to group people which make them more likely to purchase a product are known as segmentation variables.

Ans:  True       LO:  2       Page:  270  AACSB:  Analytic

12. T F    Treating entire populations of people as potential customers for specific products is known as niche marketing.

Ans:  False       LO:  2       Page:  271  AACSB:  Analytic

13. T F    Two factors leading to more individualized marketing are clutter and technology.

Ans:  True       LO:  2       Page:  271  AACSB:  Analytic

14. T F    Niche marketing occurs when the marketing mix is adjusted to treat individual persons as separate target markets.

Ans:  False     LO:  2       Page:  271  AACSB:  Analytic