Q&A Hero

Q: Entrepreneurship is important to every industry sector in the United States.

Q: Which of the following is least likely to increase the life of a product without involving product changes? A) Product extension B) Product adaption C) Rebranding D) New product placement E) Reintroduction

Q: The main difference between an entrepreneurial venture and a small business is size.

Q: During the product life cycle, when do sales begin to slow down even though profit levels are high? A) Decline B) Maturity C) Introduction D) Growth E) Promotion

Q: Small businesses are the same as entrepreneurial ventures.

Q: During the product life cycle, when do sales begin to climb and the product begin to show profit? A) Ascending B) Mature C) Initial D) Growth E) Accelerated

Q: If Camden wants his new business to be a good corporate citizen, he should ________. A) hire only union labor B) minimize the risks his business takes C) consider community goals in his business plan D) observe all the local ordinances and employment laws

Q: When a wholesaler or retailer develops a brand name and has the manufacturer place that name on the product, what is that product name called? A) National brand B) Private brand C) Luxury brand D) Licensed brand E) Manufacturer brand

Q: To demonstrate social responsibility, entrepreneurs are encouraged to ________. A) consider community goals in their business plans B) use recycled materials in their production processes C) participate in community organizations such as Kiwanis and Rotary D) sponsor youth sports teams

Q: What is selling the rights to place a brand name on products such as t-shirts referred to as? A) International branding B) National branding C) Private branding D) Regional branding E) Licensed branding

Q: Belinda has found a business opportunity she believes will be successful, but there are already a couple companies in that market. To be successful, Belinda will need to ________. A) pinpoint a competitive advantage B) patent her idea C) pursue a joint venture with them D) write her mission statement

Q: Why is speed to market so important?

Q: The purpose of examining the state of the economy, the regulatory situation, social trends, and the local labor supply is to ________. A) identify possible customers and employees B) locate resources for use in the new business C) determine who are the major players in the market D) identify opportunities and possible competitive advantages

Q: What is involved in service process design?

Q: Brandon is examining the state of the economy, the regulatory situation, social trends, and the local labor supply. This would indicate Brandon is ________. A) performing a SWOT analysis B) exploring the entrepreneurial context C) self-employed D) a small business owner

Q: Where do organizations get new product ideas?

Q: ________ is a process of changing, experimenting, transforming, and revolutionizing. A) Developing B) Research C) Innovating D) Inventing

Q: Why is new product development expensive?

Q: Rob is a CPA who works out of an office in his home. His business is named "Friendly Accounting Services." Eventually Rob would like to grow his business to include partners and bookkeepers. We would classify Rob as ________. A) self-employed B) an entrepreneur C) an employee D) a franchisee

Q: In the screening stage of product development, companies use market research to get consumers' input about benefits and prices.

Q: Annabel operates a local hardware store that she inherited from her parents. When she took over, she updated the point-of-sale equipment and installed a customer database. Annabel is a(n) ________ A) entrepreneur B) opportunist C) venture capitalist D) small business owner

Q: For many companies, speed to market with a product is as important as care in developing it.

Q: People who engage in ________ take advantage of opportunities to create new products or services, or change existing ones. A) social responsibility B) social engineering C) venture capitalism D) entrepreneurship

Q: The process of product development begins with concept testing.

Q: Arthur has an idea. After performing a SWOT, he has identified a market that is not being served so he is planning to start a new business and introduce a new product. Arthur is a(n) ________. A) strategist B) dreamer C) entrepreneur D) independent business developer

Q: Speed to market increases the chance that a new product will survive.

Q: Hendricks Ceramics sells items it buys from ceramic factories. If it were to purchase one of these factories, it would be engaging in ________ integration. A) forward vertical B) backward vertical C) horizontal D) concentrated

Q: Most ideas for new products eventually reach the market.

Q: In ________ integration, the organization becomes its own supplier so it can control its inputs. A) concentrated B) backward vertical C) forward vertical D) horizontal

Q: Which of the following includes the tangible and intangible features that characterize a service? A) Process selection B) Service process design C) Product life cycle D) Benefits E) Service value package

Q: Emily's Bakery's customers have asked her to open a second location in a neighboring town offering the same menu as the original location. If Emily decides to do this, she will be following a ________ strategy. A) focus B) differentiation C) concentration D) diversification

Q: What is the next step in the product development process when test marketing is positive for a product? A) Prototype development B) Business analysis C) Concept testing D) Commercialization E) Product diversification

Q: An organization that grows using ________ focuses on its primary line of business and increases the number of products offered or markets served in this primary business. A) diversification B) horizontal integration C) vertical integration D) concentration

Q: Why do firms conduct product testing? A) To determine potential profitability of the product B) To allow for gradual commercialization over time C) To ensure the prototype meets performance requirements D) To determine how well the product fits in with the goals of the organization E) To determine the potential mesh with the firm's objectives

Q: Organizations grow by using strategies of ________. A) concentration, integration, or diversification B) concentration, integration, or stabilization C) integration, diversification, or differentiation D) integration, diversification, or functionalization

Q: During which step of the product development stage does a company conduct market research on benefits and prices? A) Screening B) Concept testing C) Prototype development D) Benefits analysis E) Product idea

Q: A ________ strategy is when an organization expands the number of markets served or the products offered. A) growth B) renewal C) stability D) retrenchment

Q: During what step of the product development stage does the firm consider how well a product or idea supports the firm's objectives? A) Screening B) Concept testing C) Prototype development D) Benefits analysis E) Product idea

Q: What are the three main types of corporate strategies? A) stability, focus, and turnaround B) growth, stability, and renewal C) growth, cost leadership, and differentiation D) stability, differentiation, and focus

Q: Why is speed to market critical to market demand? A) It reduces overall cost of product development. B) It allows more time for product recalls. C) It allows the company to conduct more concept testing. D) It produces stronger outcomes on the business analysis process. E) It allows the company to become entrenched in the marketplace.

Q: How can a company establish market leadership for a product? A) Introduce the product with a lower price than competitors. B) Do not introduce the product until success is certain. C) Be sure the product supports the overall goals and strategies of the organization. D) Introduce the product before competitors. E) Introduce a product that supports the rest of the product line.

Q: A(n) ________ strategy determines what businesses a company is in or wants to be in, and what it wants to do with those businesses. A) competitive B) functional C) operating D) corporate

Q: After a new product is developed, about 9 out of 10 fail for what reason? A) Cost B) Minimal marketing efforts C) Lack of significant difference D) The product is too regional E) Failure in FDA testing

Q: Lower-level managers are responsible for ________ strategies. A) functional B) stability C) corporate D) tactical

Q: On average, how many new product ideas are needed to generate one that reaches the consumer market? A) 25 B) 50 C) 75 D) 100 E) 500

Q: Top-level managers are responsible for ________ strategies. A) tactical B) corporate C) competitive D) functional

Q: Identify the six steps in the strategic management process and briefly explain what happens in each step.

Q: What is frequently the most time-consuming stage of product development? A) Testing B) Market analysis C) Design D) Speed to market E) Product idea

Q: The final step in the strategic management process is implementing the objectives.

Q: In which of the following ways is product development different for services than for physical goods? A) Instead of gathering product ideas, the company goes immediately to the testing phase. B) Instead of screening ideas, the company tests all of them, since no prototype is needed. C) Instead of creating a prototype, the company develops a service process design. D) The business analysis step is not needed, since there are no production costs with services. E) The commercialization step is gradual for services, but rapid for physical goods.

Q: Which of the following activities describes the development stage of commercialization? A) Building a prototype B) Testing the product to see if it meets performance requirements C) Selling the product on a trial basis in limited areas D) Beginning full-scale production and marketing E) Testing consumer reaction to the product in limited areas

Q: A SWOT analysis includes an analysis of an organization's environmental opportunities and threats.

Q: When conducting a SWOT analysis, threats are activities the organization doesn't do well or resources it needs but doesn't possess.

Q: Identify the ways small businesses can benefit from an understanding of the marketing mix.

Q: Exceptional or unique organizational resources are known as core capabilities.

Q: What advantages do smaller companies have over larger competitors when it comes to the distribution aspect of the marketing mix?

Q: Activities that an organization does well or resources that it has available are called capabilities.

Q: What do most small businesses fail to estimate correctly, often resulting in the business failing? A) Price B) Promotion C) Product D) Public relations E) Place

Q: When a small business identifies themselves and their products with local groups and events, what aspect of marketing are they pursuing? A) Price B) Promotion C) Product D) Public relations E) Place

Q: Evaluating an organization's intangible assets is part of conducting an internal analysis in the strategic management process.

Q: A firm's reputation in the marketplace would be considered a resource.

Q: In what area can a small business create an advantage over larger competitors? A) Value B) Price C) Response time D) Marketing E) Shipping costs

Q: The first step in the strategic management process is analyzing the external environment.

Q: How does a realistic market potential estimate affect small business success? A) It allows small business owners to know how to modify a product for consumers. B) It allows small business owners to have a clear picture of their target segments. C) It allows for better use of social media based marketing efforts. D) It increases the ability to be flexible in pricing strategy. E) It provides a more accurate understanding of fixed and variable costs.

Q: The final step in the strategic management process allows an organization to understand the ________. A) effectiveness of the strategies used B) implementation of the strategies C) external environment D) resources and capabilities it possesses

Q: Discuss the three categories of B2B markets.

Q: After the SWOT analysis is complete, managers are ready to ________. A) begin production B) identify competitors C) formulate strategies D) review the analysis

Q: Discuss the issues of international promotion.

Q: The combined external and internal analyses are called ________. A) competitor analysis B) industry analysis C) market analysis D) SWOT analysis

Q: Companies with an existing distribution network are at a disadvantage in the global context.

Q: The major value-creating capabilities of the organization are known as its ________. A) strengths B) competitive advantages C) core competencies D) resources

Q: B2B sellers rarely have long-term relationships with buyers.

Q: Harness International, a global wiring harness company, allows each customer to access its engineering drawings on the company's extranet, speeding up the design process for every project. Harness would consider this to be a(n) ________. A) resource B) capability C) competitive advantage D) opportunity

Q: The reseller market includes farmers, manufacturers, and some retailers.

Q: The B2B market includes industrial, reseller, and government/institutional markets.

Q: An organization's financial, physical, human, and intangible assets are known as its ________. A) resources B) capabilities C) strengths D) core competencies

Q: The institutional market is made up of businesses that buy goods to be converted into other products or that are used up during production.

Q: A bank estimates the capabilities of its customer service employees prior to implementing a new training program designed to change their method of providing customer service. The bank is ________. A) conducting an external analysis B) formulating its competitive strategies C) performing an internal analysis D) performing an employee audit

Q: Bella Vista Clothing targets teenage girls with a range of affordable ready-to-wear clothing. The company is opening two new outlets, as sales have been excellent. Which one of the following represents a strength for the company? A) The company's in-house designers have a knack for identifying and popularizing fashion trends. B) Disposable income is rising and consumers will have more money to spend on clothes. C) Bella Vista has excess production capacity. D) A long-time competitor recently went out of business and Bella Vista can cut down on its advertising budget.

Q: Which of the following do firms use to enhance public relations and branding while stimulating chatter about a product within a target market? A) Consumer-seller relationships B) Segmentation C) Company specialist D) Corporate blogs E) Enduring buyer-seller relationships