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Marketing/Selling
Directions:
Use the text “Start & Operate a Small Business”, chapter 12-18 to find the
following answers.
1. Match the terms and definitions below:
Terms:
 Statistics  Surveys  Demographics Definitions:
o A. a way of collecting information by asking questions of a
number of people
o B. numerical facts about particular groups of people
o C. numerical facts of many kinds
2. What is the purpose of market research?
3. Define “competitive advantage”-
4. Pick 1 (one) business you go to as a customer and describe their
competitive advantage.
5. Explain the difference between “tactics” and “strategy”. Use a real-life
business example in your explanation.
6. What does a mission statement express about a business?
7. What does it mean to be a “market-driven” entrepreneur?
8. What is the number one factor for customers when they are making a
purchase?
9. What are the 4 steps of the marketing process?
1.
2.
3.
4.
10. Define “market segment”
11. What are the four ways to analyze a market?
1.
2.
3.
4.
12. The four factors that communicate the entrepreneur’s vision to the
consumer are:
1.
2.
3.
4.
13. If you buy an item wholesale for $9.00 and keystone it, what is the
price you will be charging at the retail level?
14. Describe two other pricing strategies besides just trying to charge lower
price than the competition.
1.
2.
15. Why is it important to know the product you are selling thoroughly?
16. Why do you think so many successful entrepreneurs started out as
salespeople?
MARKETING ANSWER KEY
11/3/2010 7:44:00 PM
Directions:
Use the text “Start & Operate a Small Business”, chapter 12-18 to find the
following answers.
1. Match the terms and definitions below:
Terms:
 Statistics C
 Surveys A
 Demographics B
Definitions:
o A. a way of collecting information by asking questions of a
number of people
o B. numerical facts about particular groups of people
o C. numerical facts of many kinds
2. What is the purpose of market research?
ANY REASONABLE ANSWERS RELATED TO ITEMS SUCH AS SIZE, COLOR,
STYLING, PRICE , PERFORMANCE, COMPARISION WITH OTHER CARS, ETC.
3. Define “competitive advantage”COMPETITIVE ADVANTAGE IS SOMETHING YOU CAN DO BETTER THAN THE
COMPETITION THAT WILL ATTRACT CUSTOMERS TO YOUR BUSINESS.
4. Pick 1 (one) business you go to as a customer and describe their
competitive advantage.
EXAMPLE: MCDONALD’S- THE FOOD QUALTIY IS THE SAME AT EVERY
MCDONALD’S AND IS ENEXPENSIVE AND SERVED FAST.
5. Explain the difference between “tactics” and “strategy”. Use a real-life
business example in your explanation.
STRATEGY-A PLAN FOR OUTPERFORMING THE CURRENT AND POTENTIAL
COMPETITION
TACTICS- THE WAYS IN WHICH A STRATEGY IS CARRIED OUT
EXAMPLE: MCDONALD’S STRATEGY IS TO HAVE ALL ITS RESTAURANTS
AROUND THE WORLD OFFER THE SAME FOOD QUALITY AND FAST SERVICE.
ONE TACTIC FOR CARRYING OUT THIS STRATEGY IS THE CAREFUL TIMING
OF ALL COOKING AND SERVING, WHICH IS TAUGHT TO THE EMPLOYEES SO
THAT FRENCH FIRES FROM A MCDONALD’S IN MINNESOTA TASTE THE
SAME AS THEY DO IN NEW YORK.
6. What does a mission statement express about a business?
THE MISSION STATEMENT EXPRESSES THE BUSINESS’S REASON FOR
EXISTING
7. What does it mean to be a “market-driven” entrepreneur?
A MARKET-DRIVEN ENTREPRENEUR STUDIES HIS OR HER MARKET AND
USES THAT MARKET RESEARCH TO MAKE ALL BUSINESS DECISIONS, SUCH
AS WHERE TO LOCATE A STORE OR HOW MUCH TO CHARGE FOR A
PRODUCT.
8. What is the number one factor for customers when they are making a
purchase?
CONFIDENCE IN THE PRODUCT OR SERVICE
9. What are the 4 steps of the marketing process?
1.CONSUMER ANALYSIS
2.MARKET ANALYSIS
3.DEVELOPMENT OF A MARKETING MIX
4.BREAK-EVEN ANALYSIS
10. Define “market segment”
A MARKET SEGMENT IS A GROUP OF CONSUMERS WHO HAVE SIMILAR
RESPONSE TO A CERTAIN TYPE OF MARKETING
11. What are the four ways to analyze a market?
1.BY LOCATION
2.BY POPULATION
3.BY PERSONALITY
4.BY BEHAVIOR
12. The four factors that communicate the entrepreneur’s vision to the
consumer are:
1.PRODUCT
2.PRICE
3.PLACE
4.PROMOTION
13. If you buy an item wholesale for $9.00 and keystone it, what is the
price you will be charging at the retail level?
$18
14. Describe two other pricing strategies besides just trying to charge lower
price than the competition.
1. CHARGE A HIGH PRICE FOR A PRODUCT AND EMPASIZE THE
EXPENSIVENESS AND QUALITY OF ITS INGREDIENTS OR PARTS.
PEOPLE EXPECT TO PAY MORE FOR QUALITY AND SOMETIMES A
HIGHER PRICE IS CONSIDERED PROOF OF HIGHER QUALITY. THIS
STRATEGY WORKS WELL WITH A MARKET SEGMENT THAT CARES
MORE ABOUT QUALITY THAN PRICE.
2.CHARGE A LOW INTRODUCTORY PRICE FOR YOUR PRODUCT OR
SERVICE IN ORDER TO GET CUSTOMERS TO TRY IT. YOU CAN RAISE
THE PRICE LATER IF YOU CAN SHOW CUSTOMERS THAT YOUR
PRODUCT OR SERVICE OFFERS ANOTHER COMPETITIVE ADVANTAGE
BESIDES PRICE.
15. Why is it important to know the product you are selling thoroughly?
ANY REASONABLE ANSWER
16. Why do you think so many successful entrepreneurs started out as
salespeople?
ANY REASONABLE ANSWER EXPLAINING THAT SELLING PUTS YOU IN
TOUCH WITH CUSTOMER NEEDS AND WANTS IN DIRECT, DAY-TO-DAY
SITUATION.
11/3/2010 7:44:00 PM