Marketing Essentials
4th EditionGrady Kimbrell
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Principles of Marketing
18th EditionGary Armstrong, Philip Kotler
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Marketing Management
15th EditionKevin Keller, Philip Kotler
177 solutions
M: Marketing
7th EditionDhruv Grewal, Michael Levy
143 solutions
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Terms in this set (276)
The corporate entrepreneur encourages teamwork and uses a multidisciplined approach, which violates organizational practices and structures taught in most business schools.
true
In corporate entrepreneurship, trial and error are encouraged.
true
A dual process model of coping with negative emotions is an approach to negative emotions based on both avoidance and a proactiveness toward secondary sources of stress arising from a major loss.
false
When would an entrepreneur be pronounced to have recovered from the grief of a lost business?
When thoughts about the events surrounding, and leading up to the loss of the business, no longer generate a negative emotional response
Entrepreneurial activities tend to immediately affect the bottom line, and hence are seldom overlooked and receive extensive funding and support.
false
Organizations that require a rapid return on investment and a high sales volume usually encourage and support new ideas.
false
In creating a culture for corporate entrepreneurship leadership is important.
true
Entrepreneurs focus on how to minimize resources needed whereas traditional firms focus on accumulating resources.
true
Which of the following is true?
Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.
In encouraging a culture for corporate entrepreneurship, using older, proven, technology is recommended in order to increase stability in the organization.
false
Most managers in a corporation are capable of being successful corporate entrepreneurs with the correct training.
false
A sufficient time for top management to be committed to corporate entrepreneurship is:
at least 3 years
Which of the following is true about corporate entrepreneurship?
A company must be willing to invest money without a guarantee of a return in the short term
Entrepreneurially run firms are driven by controlled resources whereas traditionally managed firms are driven by perception of opportunity.
false
For an organization with a traditional environment, it is best to facilitate an external process to establish an entrepreneurial environment.
true
Corporate entrepreneurship is most strongly reflected in entrepreneurial activities as well as in top management orientations in organizations.
true
Which of the following is not a leadership characteristic of a corporate entrepreneur according to the text?
Encourages colleagues to follow hierarchy
Which of the following is true?
Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly
Corporate entrepreneurship is most strongly reflected in entrepreneurial activities as well as in top management orientations in organizations.
true
Self-renewal includes the redefinition of the business concept, reorganization, and the introduction of system-wide changes to increase innovation.
true
An entrepreneur's recovery from grief is detrimental to society.
false
Generally, independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.
false
Internal corporate venturing consists of creating something new of value either by redefining the company's current products or services, developing new markets, or forming more formally autonomous or semiautonomous units or firms.
true
For an organization with a traditional environment, it is best to facilitate an external process to establish an entrepreneurial environment.
true
Entrepreneurial endeavors consist of new business venturing, innovativeness, self-renewal, and reactiveness.
false
An entrepreneur with loss-orientation would talk about the business-failure with a close friend or relative.
true
Traditionally managed firms typically punish failure.
true
Entrepreneurs focus on how to minimize resources needed whereas traditional firms focus on accumulating resources.
true
Developing a spirit of entrepreneurship within the existing organization, called corporate entrepreneurship, can lower resistance to flexibility, growth, and diversification.
true
One study found that new ventures started within a corporation performed better than those started independently by entrepreneurs.
false
The three major risk reduction strategies discussed in the text are narrow scope, broad scope and imitation.
false
Key success factors are the requirements that any firm must meet to successfully compete in a particular industry.
true
When the window of opportunity is open, the environment is unfavorable for entrepreneurs to exploit a new product or enter a new market with an existing product.
false
To overcome customer uncertainty, the venture should educate customer through demonstration and documentation on how to use the product.
true
The ________ is less about whether an opportunity really exists and more about whether the entrepreneur believes they can make it work.
assessment of a new entry's attractiveness
The basic building blocks to a firm, or the inputs into the production process, are:
resources
Changes needed to adapt to environmental changes:
are more difficult because of the tendency to escalate commitment.
________ are used to protect the owner of the technology from people imitating the technology
Patents
Customer uncertainty can take all of the following forms except:
not knowing where to buy the product
Imitation of other products increases the risk of downside loss associated with new entry.
false
If a company has a superior product, customers will always be willing to pay a higher price for higher value
false
Franchising is an example of a new entry strategy that increases the risk of downside loss for the franchisees.
false
Offering a small product range to a small number of customer groups is:
a narrow-scope strategy.
A narrow scope strategy reduces the risks associated with competition.
true
The entrepreneur's market knowledge is deeper than the knowledge that could be gained through market research.
true
Which of the following statements is true?
Knowledge based on experience is unlikely to be learned in a classroom.
Which of the following is not a reason that first movers are better positioned to satisfy their customers?
They have less uncertainty over the nature of the market
An error of omission occurs when an entrepreneur:
decides not to enter a market that is, in fact, desirable.
A ________ strategy that copies products that already exist and attempts to build an advantage through minor variations.
me-too
An entrepreneurial strategy is the set of decisions, actions, and reactions that protect the firm from new entrants.
false
An error of omission occurs from the decision not to act of a new entry opportunity when in hindsight they should have.
true
Lack of informal communication systems is one of the assets of newness.
false
First movers face:
demand uncertainty.
An entrepreneurial strategy has three key stages—the generation of a new entry opportunity, the exploitation of a new entry opportunity, and a feedback loop back to the first stage.
true
The window of opportunity is part of:
assessing the attractiveness of a new entry opportunity.
irst movers can monitor changes in the market that might be difficult or impossible to detect for those firms not participating in the market.
true
Barriers to entry include all of the following except:
environmental instability
Competition within an industry always has a negative effect on industry growth.
false
A new entry can be either offering a new product to a new market or creating a new organization.
true
The knowledge needed to generate innovation cannot be easily learned from a textbook.
true
Regarding entry into a new market, which of the following is true?
First movers gain expertise through participation.
The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry is called the window of opportunity.
true
When conducting research on a new entry:
extensive research is expensive in terms of time and money.
A narrow scope strategy offers a small product range to a small number of customer groups.
true
the purpose of a franchise is to protect the owner of a unique technology from people imitating that technology.
false
Entrepreneurs that delay entry have the advantage of more information about market demand.
true
Experience is idiosyncratic—unique to the life of the individual.
true
The late mover is able to operate in the industry for a grace period under conditions of limited competition.
false
Which is the best way to gain knowledge about a potential new entry?
Entrepreneur's market experience and knowledge
By entering a market later,
customer uncertainties have already been substantially reduced.
The long-run performance of a firm is dependent upon the ability to generate and exploit numerous new entries.
true
the ________ is less about whether an opportunity really exists and more about whether the entrepreneur believes they can make it work.
assessment of a new entry's attractiveness
Emerging industries are industries that have been around for years but are just starting to experience explosive growth.
false
Building customers' switching costs decreases barriers to entry for other firms.
false
Newness of a new entry is always an advantage.
false
Technological uncertainty:
occurs because an alternative technology could be introduced by competitors.
A narrow scope strategy is better than a broad scope strategy in an environment high in uncertainty.
false
By delaying entry, late movers:
can learn from the actions of first movers without incurring the same costs.
Entrepreneurs are unable to carefully assess each and every innovative idea and opportunity.
true
In the concept stage, the refined idea is tested to determine consumer acceptance.
true
Trends often provide one of the greatest opportunities for starting a new venture.
true
ow many stages are in the product planning and development process?
five
The focus group is an excellent method for initially screening ideas and concepts.
true
Brainstorming groups should:
try to generate as many ideas as possible.
Attribute listing is an idea-finding technique that requires the entrepreneur to list the attributes of an item or problem and then look at each from a variety of viewpoints.
true
This problem-solving method involves developing new ideas by thinking without constraints.
big-dream approach
The entrepreneur should always design and build his own webpage to maintain strategic control.
false
The entrepreneur's ability to recognize a business opportunity is a result of his or her knowledge and experience.
true
Developing a new idea through a chain of word associations is known as the checklist method.
false
In the product development stage, consumer reaction to the physical product/service is determined.
true
In the checklist method, a new idea is developed through a list of related issues or suggestions.
true
Brainstorming is an unstructured process used for generating possible ideas about a problem within a limited time frame through the spontaneous contributions of participants.
true
Forced relationships is a method of forcing confrontations in focus groups.
false
One evaluation method successfully used in the concept stage is the systematic market evaluation checklist.
false
Creative synthesis is closely connected to the technique of parameter analysis.
true
An online company's front-end operations involve integration of customer orders with distribution channels.
false
Patents filed with the U.S. Patent Office:
frequently suggest other new products.
The Gordon method, like most other methods, begins with group members not knowing the exact nature of the problem.
false
Which of the following problem-solving techniques begins with group members not knowing the exact nature of the problem?
gordon method
The drawback with problem inventory analysis is that it is not effective in relating known products to suggested problems.
false
Which of the following was not discussed in the text as a breakthrough innovation?
spanx
Most of the ideas generated by a brainstorming group progress into further development.
false
The opportunity recognition process contains all of the following except:
reformation
When a firm classifies a new product the two key factors used are market and technology newness.
true
Results from product inventory analysis need minimal evaluation as they most likely reflect a new business opportunity.
false
Brainwriting is a written form of brainstorming.
true
Only the test marketing phase of product planning provides actual sales results to judge the product's customer appeal.
true
the largest source of new product ideas is:
the entrepreneur's research and development.
Continuous innovations are described as:
having the least disrupting influence on established consumption patterns.
Three major types of political risks that might be present are operating risk, transfer risk, and ownership risk
true
A vertical merger is the combination of two firms that produce one or more of the same or closely related products in the same geographical area.
false
Transfer risk is the risk in attempting to shift assets or other funds out of the country.
true
All of the following is true of the General Agreement on Tariffs and Trade except:
it has extensive authority to enforce trade practices due to its voluntary membership.
Primary data is:
original information collected by the entrepreneur.
An opportunity assessment plan has four sections—two major sections and two minor sections.
true
Which among the following influences whether customers are able to use the good or service properly and whether they are able to understand the firm's advertising or other promotional messages?
education
The laws governing business arrangements have been standardized over 150 international legal systems
false
The General Agreement on Tariffs and Trade is an attempt to impose significant tariffs on business between nations.
false
Profits and tax benefits are common motivations for going global.
true
A disadvantage of using licensing as an entry strategy for a foreign market is the high amount of risk involved.
false
For a global entrepreneur, technological environment variations are minimal since firms produce mostly standardized, relatively uniform products that can be sorted to meet industry standards.
false
The objectives of the General Agreement on Tariffs and Trade was to liberalize trade by eliminating or reducing tariffs.
true
For a U.S.-based entrepreneurial firm, the 75 percent of the world's population living outside the United States offers a very large market opportunity.
false
SCORE is a for-profit organization that provides online and in-person assistance in about 100 locations throughout the United States.
false
A product extension merger occurs when acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other.
true
Gifts related to business proceedings are illegal in most other countries and should not be offered to foreign business partners.
false
All of the following statements concerning opportunity assessment plans are correct except:
the first major section of the opportunity assessment plan develops a time line indicating what steps need to be take to successfully launch the venture.
McDonalds has learned to adapt its restaurants to local design preferences and the U.S. government tries to design their local embassies with local architectural considerations. These are examples of which aspect of culture?
Aesthetics
Nonverbal or hidden language of a culture accounts for a small percentage of all understood communication.
false
The North American Free Trade Agreement (NAFTA) is between which of the following countries?
The United States, Canada, and Mexico
The General Agreement on Tariffs and Trade is an attempt to impose significant tariffs on business between nations
false
________ is a type of merger in which acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other.
Product extension merger
International entrepreneurship is the process of an entrepreneur conducting business activities across national boundaries.
true
________ are both government sources of information that might be helpful in gathering the information needed to start a business.
NAICS and SIC codes
An opportunity assessment plan:
focuses on the opportunity, not the venture.
Which of the following statements is not true?
Major events often are the beginning of slow shifts in public opinion or buying habits.
Reference groups in any culture provide values and attitudes that influence behavior.
true
Transfer risk is the risk in attempting to shift assets or other funds out of the country.
true
In Kenya, the tribe where an individual is from can play a significant role in employer relations. This best exemplifies which aspect of culture?
social structure
What term describes the practice of paying for goods indirectly through another source?
barter
________ provides information on industries such as aerospace, energy, healthcare and defense.
Frost and Sullivan
Three major types of political risks that might be present are operating risk, transfer risk, and ownership risk.
true
Copyrights can protect all of the following except:
molded plastic parts.
Copying a product and improving it may not be patent infringement.
true
While dealing with leaking of trade secrets, legal action can be taken only after the secret has been revealed.
true
_______ is a contract between the government and an inventor.
patent
To minimize patent risk, an entrepreneur should seek a patent attorney who has experience in their product line.
true
The ________ patent is granted for a 14-year term.
design
Licensing agreements generate revenue while minimizing risk and start-up investment costs.
true
Copyright law does not apply to music, especially when downloaded from the Internet.
false
Which of the following statements concerning the Sarbanes-Oxley Act is not true?
The Act applies to both private and public companies.
Which government office is responsible for the federal registration of trademarks?
Patent and Trademark Office
The initial registration for a trademark lasts:
10 years
Which of the following statements concerning trademarks is not true?
Unlike a patent, trademarks last indefinitely.
To file for trademark protection only intent to use is necessary.
true
To apply for a trademark:
intent to use the mark is required.
Once accepted, the trademark is published in the Trademark Official Gazette to allow any party ________ days to oppose or request an extension to oppose the use of the mark.
30
The ________ is filed to establish a date of conception of an invention and replaces what used to be known as a disclosure document.
provisional patent
Copyrights are registered with:
the Library of Congress.
A copyright protects original works of authorship.
true
It takes approximately ________ to obtain a trademark.
13 months
A trademark is given a 50-year registration with no renewal.
false
Which of the following is a contract that grants the owner protection, based on the appearance of an object?
design
Casualty insurance may include fire, burglary and theft, and business interruption coverage.
false
Intellectual property is any patents, trademarks, copyrights, or trade secrets held by an entrepreneur.
true
What type of insurance would cover fire or burglary damage?
property
The three major parts of a patent application are the introduction, description and warranty sections.
false
A copyright can be used to protect sculptures or blueprints.
true
The term of a copyright is the author's life plus:
70 years
Trade secrets are protected:
state law
Licensing requires the licensee to pay a royalty to the licensor in return for permission to copy the patent, trademark, or copyright.
true
Licensing a trademark generally involves a franchising agreement.
true
The section of the patent application that includes engineering specifications, materials and components is the:
description of invention
Trade secrets can be protected for:
unlimited
What type of insurance is mandatory in some states?
worker's comp
written document describing all relevant internal and external elements and strategies for starting a new venture, best describes:
business plan
The four Cs of credit are computers, capital, compromise, and collateral.
false
Most entrepreneurs have little difficulty with gathering market information.
false
Which of the following is not a part of the introductory page?
The names and addresses of all managers
Planning is a process that never ends and is extremely important in the early stages of any new venture.
true
Which of the following statements is true?
The business plan describes both internal and external elements.
Keep the goals and objectives as general as possible to make the business plan easier to control and implement.
false
The introductory page of the business plan should contain the amount of financing needed.
true
Investors often spend a lot of time conducting background checks.
true
The business plan addresses only short-term decision making.
false
Which of the following interested parties should not have access to the venture's business plan?
competitors
Facebook is a good source of market information on competitors.
true
The organization plan describes the business':
form of ownership
It is recommended that an entrepreneur avoid using the Internet as a resource for finding information to write a business plan because the information found there is often incorrect and unreliable.
false
When collecting marketing information the entrepreneur should:
identify competitors
Bankers agree that most business failures are due to the entrepreneur's inability to obtain financing.
false
When gathering financial information, the entrepreneur should develop a budget that includes expected sales and expense figures for the first year.
true
The business plan presentation for potential investors:
should enable the entrepreneur to "sell" his or her business concept in a designated period of time.
To assess the potential profitability of a venture, the entrepreneur needs to ascertain expected sales and expense figures for the first:
year
When determining how much help is needed to write the business plan an entrepreneur should conduct a self-assessment. In this self-assessment which skill set would not be considered?
venture capital
Typically, business plan projections are made in a 36-month schedule.
false
Standard & Poor's and the U.S. government are good sources of industry and market data.
true
An evaluation of cultural changes is irrelevant to the venture and should not be included in the business plan.
false
Bankers agree that most business failures are due to the entrepreneur's inability to obtain financing
false
Letters from customers, distributors, or subcontractors are examples of information that should be included in the executive summary of a business plan.
false
The depth and detail in the business plan depend on the size and scope of the proposed new venture.
true
Which of the following statements on contingency planning issues is not true?
To protect the reputation of the company, media should not be contacted during a crisis.
The business plan is designed to guide the entrepreneur:
through the first year of operations.
The Internet is a useful tool to access information but is generally not a good vehicle for marketing goods and services.
false
To determine the figures in the budget, the entrepreneur should identify benchmarks or norms in the industry.
true
Operations information that may be needed for the business plan include—location, manufacturing operations, raw materials, equipment, labor skills, space, and technology.
true
Plans may differ in function and scope but they all have one important purpose: to provide guidance and structure to management in a rapidly changing market environment.
true
Middlemen such as wholesalers have lower distribution costs because they operate with economies of scale.
true
Management needs to look at the marketing plan as a guide for implementing marketing decision making and not as a generalized, superficial document.
true
A focus group should consist of:
10-12
Manufacturer's agents take title to products and resell them.
false
Major considerations in channel of distribution selection include degree of directness and number of channel members.
true
When preparing the industry analysis section of the business plan, using secondary sources is not appropriate.
false
Marketing research involves the gathering of information in order to determine who will buy the product and what the most effective promotion strategy would be.
true
Observation, interviewing, and focus groups are examples of collecting:
primary data
Which of the following is not a key element in the pricing strategy?
distribution
Personal, face-to-face, surveys are the most effective and most expensive.
true
One of the pitfalls of a social media plan is when companies use every post to promote their brand.
true
Marketing research begins with:
definition of objectives or purpose.
Interviewing or surveying is the most common approach used to gather primary market data.
true
The process of dividing the market into smaller homogeneous groups is called market segmentation.
true
The marketing mix consists of the following variables: external environmental factors, internal environmental factors, and marketing strategy.
false
Focus groups are an informal method for gathering in-depth marketing information.
true
The target market is not important in a social media strategy because the information is online for all to see.
false
The first step in conducting a competitive analysis is to document the pricing strategy of each competitor.
false
The marketing plan is designed to answer three basic questions: where have we been, where do we want to go, and how do we get there?
true
Which survey method is the most expensive?
personal
Which of the following is a pitfall of social media?
Promoting your product in every post
When budgeting the marketing strategy, a reasonable budget is a percentage of forecasted total production costs.
false
All efforts to develop an effective social media plan start with:
the company website
Telephone surveys have the poorest response rate.
false
An effective way to begin defining the purpose of a marketing plan, is to make a list of all the information needed to prepare the marketing plan.
true
Marketing information that already exists is called secondary data.
true
The ________ is the specific group of potential customers toward which a venture aims its marketing plan.
target market
Recent tax changes for pass through businesses such as proprietorships, S-Corps, LLC's, and partnerships are permanent changes to the tax structure.
false
A ________ can raise capital through bonds, stock and debt.
corporation
In a partnership, the general partners usually share the amount of personal liability according to their capital contributions.
false
When entrepreneurs are unwilling to give up responsibility to others, it becomes difficult to transition from a start-up to a growing, well-managed business.
true
Which of the following combines the tax advantages of the partnership and the corporation?
s corp
The hiring process is one area of business operation that the entrepreneur should not cut back on to save time.
true
In an S Corporation, ownership can be freely transferred as long as the buyer is an individual.
true
Bonds can be used to raise capital in which form of ownership?
corp
The corporation has the most continuity of the forms of business.
true
Compensation for board members can take the form of all of the following except:
perks, such as vacations.
In a limited liability partnership (LLP), the death or withdrawal of a partner dissolves the partnership.
false
The board of directors should be an even number of members.
false
S corporation status means:
the corporation pays no tax.
When hiring employees for the venture, the entrepreneur should consider the candidate's skills and abilities and avoid considering the individual's personality.
false
In a limited liability company:
laws governing its formation differ from state to state.
In 2018, all C Corporations receive a permanent tax cut from 35 percent to 21 percent.
true
The limited liability company is the only form of organization that allows members to share liability.
false
The proprietor is only personally liable for all aspects of the business when gross negligence occurs.
false
Shareholders in an S corporation have the same liability protection as shareholders in a C corporation.
true
In an LLP, the transfer of interest of one limited partner is typically not allowed.
true
With the new tax laws passed in 2017, all pass through businesses receive:
a temporary 20 percent reduction of their business income.
In a limited liability company, every member has limited liability.
true
Sole proprietorships:
have no time limit on how long they may exist
In the partnership, profit and loss distribution is determined by the partnership agreement.
true
In order for a corporation to be legally formed the owners have to register the name and articles of incorporation and meet statutory requirements.
true
Once the board of advisors have been hired, the entrepreneur should not question their advice.
false
The S corporation can deduct most fringe benefits for shareholders.
false
Design decisions reflect the formal structure of the organization and the informal structure is the organization culture that evolves over time.
true
The sales budget:
should be prepared before developing the pro forma income statement.
A ________ summarizes all the projected sources and applications of funds available to the venture and how these funds will be disbursed.
pro forma sources and applications of funds statement
In projecting cash flows the most difficult problem is in determining the exact amount of monthly receipts and disbursements.
true
Many profitable firms fail because of lack of cash.
true
Which of the following statements concerning financial software is not true?
A spreadsheet program may be the easiest to use since numbers rarely change during the budget process.
formula for break-even analysis is:
total fixed costs divided by selling price minus variable cost per unit.
Large positive cash flows usually occur in the first months of a new venture.
false
Inventory is considered a source of funds because of the revenue it brings in.
false
Profit from the business would be included on the balance sheet in which section?
owner's equity
Sales in excess of the break-even point will result in a profit, as long as the selling price remains above the cost to produce each unit.
true
As long as the selling price is less than the variable cost per unit, some contribution will be made to cover fixed costs.
false
Depreciation is considered a source of funds because it does not represent an out-of-pocket expense.
true
Assets represent the net worth of the firm.
false
Owner's equity represents:
the net worth of the business.
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