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Entrepreneurship: Starting & Operating a Small Business, 4e (Mariotti)
Chapter 5 Developing the Right Marketing Mix and Plan
1) Which of the following is one of the four Ps of marketing?
A) population
B) publicity
C) product
D) packaging
Learning Object.: 5.1 Combine the Four P's - product, price, place, promotion - into a market
mix.
AACSB Category: Analytical thinking
2) Promotion consists of ________.
A) devices such as discount coupons and giveaways
B) advertising
C) publicity
D) All of the above.
Learning Object.: 5.1 Combine the Four P's - product, price, place, promotion - into a market
mix.
AACSB Category: Analytical thinking
3) Finding a retail site that has more than ample parking, excellent access and walk-in trade
potential is an example of maximizing which of the marketing Ps?
A) promotion
B) price
C) product
D) place
Learning Object.: 5.1 Combine the Four P's - product, price, place, promotion - into a market
mix.
AACSB Category: Analytical thinking
2
4) ________ is free (non-purchased) mention of your business or brand in newspapers,
magazines, radio or TV.
A) Publicity
B) Advertising
C) Promotion
D) Product marketing
Learning Object.: 5.1 Combine the Four P's - product, price, place, promotion - into a market
mix.
AACSB Category: Analytical thinking
5) Define promotion, advertising and publicity.
Learning Object.: 5.1 Combine the Four P's - product, price, place, promotion - into a market
mix.
AACSB Category: Analytical thinking
6) Which of the following is not an example of successful branding?
A) A product represents luxury to customers.
B) Customers associate a product with high ethical standards.
C) Customers confuse a business's logo with that of another business.
D) Associate your company with a charity.
Learning Object.: 5.2 Choose the attributes of your product or service.
AACSB Category: Reflective thinking
7) When you build a brand, try to focus tightly on one key ________.
A) feature
B) benefit
C) product
D) product line
Learning Object.: 5.2 Choose the attributes of your product or service.
AACSB Category: Reflective thinking
3
8) A product is something that exists in nature or is made by human industry, usually to be sold,
whereas a service is ________.
A) intangible
B) tangible
C) physical
D) free
Learning Object.: 5.2 Choose the attributes of your product or service.
AACSB Category: Reflective thinking
9) Ford's Edsel is an example of a product that failed because it lacked ________.
A) name recognition
B) focus
C) competitiveness
D) options
Learning Object.: 5.2 Choose the attributes of your product or service.
AACSB Category: Reflective thinking
10) Nike's "swoosh" is an example of a(n) ________.
A) advertisement
B) logo
C) marketing message
D) None of the above.
Learning Object.: 5.2 Choose the attributes of your product or service.
AACSB Category: Application of knowledge
11) The key to building a successful brand is to focus tightly on the primary benefit you want
customers to associate with your business.
Learning Object.: 5.2 Choose the attributes of your product or service.
AACSB Category: Analytical thinking
4
12) Explain why a business should focus on its brand.
Learning Object.: 5.2 Choose the attributes of your product or service.
AACSB Category: Analytical thinking
13) What is the smartest price strategy?
A) Choose a pricing strategy that incorporates the psychology of pricing.
B) Pick a pricing strategy that is different from the competition's strategy.
C) Offer the lowest price that you can afford to offer.
D) Find the lowest cost products from your suppliers.
Learning Object.: 5.3 Price your products for success.
AACSB Category: Reflective thinking
14) According to author Jay Levinson, when consumers in the furniture industry rated factors
affecting their purchase decision, ________.
A) price was the ninth most important variable
B) price was not deemed to be a critical or relevant variable in the purchase decision
C) price was by far the most important variable
D) price was the second most important variable
Learning Object.: 5.3 Price your products for success.
AACSB Category: Application of knowledge
15) ________ pricing is offering "more for less" by underscoring a product's quality, while at the
same time featuring its price.
A) Prestige
B) Cost-plus
C) Penetration
D) Value
Learning Object.: 5.3 Price your products for success.
AACSB Category: Analytical thinking
5
16) Pricing strategies include ________.
A) penetration
B) skimming
C) cost plus
D) All of the above.
Learning Object.: 5.3 Price your products for success.
AACSB Category: Analytical thinking
17) Although there are numerous pricing strategies to use in the beginning, it really doesn't
matter since price is really guess work.
Learning Object.: 5.3 Price your products for success.
AACSB Category: Reflective thinking
18) How is penetration pricing different from skimming pricing?
Learning Object.: 5.3 Price your products for success.
AACSB Category: Analytical thinking
19) Location and distribution are major components of the "place" component.
Learning Object.: 5.4 Find the best location for maximum efficiency and effectiveness of
distribution.
AACSB Category: Analytical thinking
20) What is a banner ad?
A) an ad that runs on a Web site
B) an ad attached to the back of an airplane
C) an ad that runs in the newspaper
D) an ad that is attached to an email
Learning Object.: 5.5 Select the mix of promotion to use for your business.
AACSB Category: Analytical thinking
6
21) ________ is the use of advertising and publicity to get your marketing message out to your
customers.
A) Communication
B) Marketing
C) Promotion
D) Imagery
Learning Object.: 5.5 Select the mix of promotion to use for your business.
AACSB Category: Analytical thinking
22) ________ is promotion that combines education and entertainment to make a more lasting
impression upon an audience.
A) Marketing
B) Word-of-mouth marketing
C) Edutainment
D) Cause-related marketing
Learning Object.: 5.5 Select the mix of promotion to use for your business.
AACSB Category: Reflective thinking
23) ________ is an announcement sent to the media to generate publicity.
A) A press release
B) Advertising
C) A sales promotion
D) Public relations
Learning Object.: 5.5 Select the mix of promotion to use for your business.
AACSB Category: Analytical thinking
24) A press release should answer six questions. Which of the following is not one of the six?
A) who?
B) how?
C) when?
D) why not?
Learning Object.: 5.5 Select the mix of promotion to use for your business.
AACSB Category: Reflective thinking
7
25) ________ advertising provides information about an organization rather than a specific
product and is intended to create awareness about the firm and enhance its image.
A) Product
B) Trade
C) Bulk
D) Institutional
Learning Object.: 5.5 Select the mix of promotion to use for your business.
AACSB Category: Analytical thinking
26) In doing your pitch letter you will want to address ________.
A) how your business changed you or helped your community
B) obstacles you have overcome to start your business
C) what you and your business have done that is interesting and unique
D) Any or all of the above.
Learning Object.: 5.5 Select the mix of promotion to use for your business.
AACSB Category: Analytical thinking
27) In terms of the pitch letter, you should always ________.
A) follow up your pitch letter by phone
B) only make one attempt to get to a journalist
C) be polite and persistent
D) A and C combined.
Learning Object.: 5.5 Select the mix of promotion to use for your business.
AACSB Category: Analytical thinking
28) There is no single correct way to determine your promotional budget.
Learning Object.: 5.5 Select the mix of promotion to use for your business.
AACSB Category: Reflective thinking
29) Marketing inspired by a commitment to a social, political or environmental issue is called
________.
A) socially responsible business
B) philanthropy
C) cause-related marketing
D) person marketing
Learning Object.: 5.6 Add the fifth P, philanthropy, to your business.
AACSB Category: Analytical thinking
8
30) Why are nonprofit corporations tax exempt?
A) because they use the money they collect to help improve society
B) because they donate money to foundations
C) because they pay a different form of tax than regular corporations
D) they are too few in number to matter to the government
Learning Object.: 5.6 Add the fifth P, philanthropy, to your business.
AACSB Category: Reflective thinking
31) A nonprofit organization that uses donated money to help others is called a ________.
A) philanthropy
B) foundation
C) tax exempt
D) community organization
Learning Object.: 5.6 Add the fifth P, philanthropy, to your business.
AACSB Category: Reflective thinking
32) Expressing concern for social issues by giving money, time, or advice is called ________.
A) philanthropy
B) cause-related marketing
C) foundation
D) social responsibility
Learning Object.: 5.6 Add the fifth P, philanthropy, to your business.
AACSB Category: Analytical thinking
33) Which of the following is a way to use cause-related marketing in your business?
A) Pay employees to volunteer some time toward community service.
B) Advertise that you support a social, political, or environmental cause, without actually
giving any money or time to the cause.
C) Donate a small percentage of your revenue to a cause, but don't tell anyone.
D) Substitute it for publicity.
Learning Object.: 5.6 Add the fifth P, philanthropy, to your business.
AACSB Category: Reflective thinking
34) Cause-related marketing is a rather difficult way to work philanthropy into your business.
Learning Object.: 5.6 Add the fifth P, philanthropy, to your business.
AACSB Category: Reflective thinking
9
35) Define philanthropy and explain why some marketing experts call philanthropy "the fifth P,"
and why it is important to entrepreneurs.
Learning Object.: 5.6 Add the fifth P, philanthropy, to your business.
AACSB Category: Reflective thinking
36) Which of the following is a role of the marketing plan?
A) convincing skeptical investors that your plan has merit
B) identifying the target market for the organization
C) detailing the advertising plan
D) All of the above.
Learning Object.: 5.7 Recognize the importance of a marketing plan.
AACSB Category: Analytical thinking
37) Good marketers know that a(n) ________ is the heart of the marketing plan.
A) researching suppliers
B) sales forecast
C) analysis of the market
D) price/profit schedule
Learning Object.: 5.7 Recognize the importance of a marketing plan.
AACSB Category: Reflective thinking
38) Marketing should not be budgeted as a percentage of sales but rather as money that is needed
to drive sales. Therefore it is part of the business's ________.
A) variable costs
B) sales forecast
C) fixed costs
D) intermediate costs
Learning Object.: 5.7 Recognize the importance of a marketing plan.
AACSB Category: Reflective thinking
10
39) Discuss the concept of fixed costs. How are they different from variable costs?
Learning Object.: 5.7 Recognize the importance of a marketing plan.
AACSB Category: Analytical thinking
40) To break even, a business must ________.
A) sell enough units to cover all its costs
B) sell enough units to cover its fixed costs
C) sell enough units to earn a profit
D) sell enough units to cover variable costs
Learning Object.: 5.8 Apply breakeven analysis to evaluate your marketing plan.
AACSB Category: Analytical thinking
