How could a video rental outlet stand out above their competitors in a positive way?
Guaranteeing availability of all videos 0.0%
Charging more by claiming better quality 100.0%
Having less staff and creating longer waiting time 0.0%
Having fewer locations and thus making it exclusive 0.0%
How detailed should a business plan be?
As detailed as possible, making each section very clear and specific 100.0%
Very vague, leaving the reader having to ask several questions 0.0%
Somewhat clear, answering general questions but including nothing specific 0.0%
None of the above 0.0%
How does a company assess the performance of its marketing efforts?
By looking at the total revenue and assuming part of it came from marketing 0.0%
By dividing marketing expenses by revenue 0.0%
By just assuming the more the company spends on marketing, the more it makes 0.0%
By tracking where customers are coming from and weighing the cost of marketing against the number of customers and their spending 100.0%
How far into the future should revenue be projected in a business plan?
2 years 0.0%
6 months 0.0%
1 year 0.0%
5 years 100.0%
How is "distribution and delivery" defined?
How a company receives its inventory 0.0%
How a customer pays for its product 0.0%
How a customer learns about its product 0.0%
How a customer actually receives its product 100.0%
How might a company learn more about its market and what drives the customers to purchase their product?
Contact focus groups and gain valuable information directly from the customers 0%
Make assumptions and go with them 0%
Ask the competitors and assume it's the same for your company 0%
There is no way to find out 0%
In which section of a business plan would the company's mission statement be located?
Business Model 0%
Financial Projections 0%
Market 0%
Management 0%
In which section of a business plan would you talk about the CEO?
Management 0%
Financial Projections 0%
Market 0%
SWOT 0%
What are core competencies?
Things your company is not good at 0%
What your competition is good at 0%
The management team 0%
Things that you and your company are the strongest at 0%
What are the minimum financial statements that should be included in a business plan?
Statement of Retained Earnings and P&L 0%
Income Statement, Balance Sheet, Statement of Cash Flow 0%
Only profit projections for five years 0%
Cash Flow, Balance Sheet and Statement of Retained Earnings 0%
What best describes a cost-leadership strategy?
Focus on product quality 0%
Focus on marketing 0%
Focus on pricing 0%
None of the above 0%
What best describes a differentiation strategy?
Emphasis on the unique benefits of the product or service 0%
Focus on product pricing 0%
Focus on marketing 0%
None of the above 0%
What has been the trend in marketing in the last few decades?
Marketing to mass markets 0%
Moving towards smaller marketing schemes, more direct to the customer 0%
Spending less on marketing as it does not really reward the company 0%
Getting away from the internet and spending more on television advertising 0%
What is a "Pay Per Click" marketing campaign?
Television advertising based on channel changing 0%
Radio advertising 0%
Online advertising where a company pays each time their advertisement is clicked on, typically on a website where the company's target market would often be found 0%
Print ads distributed with newspapers 0%
What is a business model?
A marketing plan 0%
A financial plan 0%
A description of what your company does and how it makes money by doing it 0%
A mini model of the company's headquarters 0%
What is a characteristic of a market leader strategy?
Follows the strongest company in the industry 0%
Goes out of business first 0%
Copy cats other companies 0%
Makes the first moves and distinguishes itself as the prominent player in the industry 0%
What is a competitive advantage?
A feature which distinguishes your company from the others and will help it to achieve success 0%
A listing of competitors 0%
A marketing strategy 0%
An advantage your competitors have over you 0%
What is a value chain?
The sequence of activities a business takes to add value to its products and services 0%
A list of questions directed at past clients 0%
An award given to industry leaders 0%
A marketing strategy 0%
What is a way to segment the market?
By their looks 0%
By their geographical location 0%
By their dreams 0%
By their library status 0%
What is an advantage of making a competitor analysis?
It is required by law 0%
It fills out sections of the business plan so it looks impressive 0%
It find weaknesses in competitors business models and exploit them 0%
It can lead to lower tax obligations 0%
What is Blockbuster Videos business model?
It sells candies 0%
It hires unemployed war veterans 0%
It sells high quality goods at discounted prices 0%
It rents dvds for a fee 0%
What is meant by "market segments"?
Different areas of the market 0%
Different categories of customers 0%
Different ways to reach the customer 0%
The various product lines of the company 0%
What is meant by "top down" budgeting?
Starting with specific forecasts by department and then rolling them up 0%
Starting with high level numbers and breaking down into subcategory amounts 0%
Allowing several people to contribute to the budget 0%
Budgeting for the next 10 years 0%
What is meant by Market Demographics?
The number of people in the market 0%
Age, gender, racial, educational, occupational, religious characteristics 0%
The population of the country being marketed to 0%
Buying trends of the market 0%
What is meant by Relationship Marketing?
Placing ads on the television 0%
Going door to door to market the company 0%
Sending out coupons to customers 0%
The opposite of Mass Marketing — connecting with customers directly, one to one 0%
What is meant by Target Marketing?
Placing a television ad during prime time spots 0%
Directing your marketing efforts towards a specific demographic or customer type 0%
Handing out flyers at a football game 0%
Marketing outside of the Target retail store 0%
What is meant by Value Proposition?
The same as by marketing strategy 0%
How a company plans to raise capital 0%
How a company plans to price their product 0%
A promise of value to be delivered and a belief from the customer that value will be experienced. 0%
What is meant by vertical integration?
A product sold to marketing firms 0%
Being involved in many stages of the industry 0%
Focusing on one aspect of your industry 0%
Using new age software 0%
What is one of the criteria that a flower delivery company could distinguish itself by on the market?
Charging more 0%
Timeliness of the deliveries 0%
Their delivery people are all over age 45 0%
They have the latest cash register on the market 0%
What is one of the reasons for the failure of companies?
Their product sells too well 0%
They fail to make a marketing plan 0%
Lack of long term vision and planning 0%
The management is over qualified 0%
What is one of the ways to establish who your competitors are?
Conduct a survey 0%
Ask the government 0%
Pay a detective firm to find out 0%
Determine your customer base and look at their alternatives 0%
What is one of the ways to track your competitors?
To keep track of publicly available financial statements 0%
Ask your employees to spy on them 0%
Bribe one of their employees 0%
Assume they do better than you 0%
What is the DuPont formula?
The basic balance sheet formula 0%
The basic P&L formula 0%
A formula to show how cash flow is calculated 0%
A formula created by the DuPont company to help capture all the ingredients of Return on Equity 0%
What is the purpose of a cash flow forecast?
To forecast the company's cash flow and also see if and when the company will ever run out of cash at all 0%
To fulfill a legal requirement 0%
To predict profit and loss 0%
To show if the company can afford to take on investors 0%
What is the purpose of a what-if analysis?
It is required by law 0%
It shows the preparer is intelligent 0%
It shows the forecasted numbers under different scenarios, both good and bad 0%
It shows what happens if the firm doesn't receive investment capital 0%
What is the purpose of creating a valuation statement of the company?
It is required for financial statements 0%
To work with investors and determine what percentage of equity to give away for investments 0%
To entice private investors by giving them an unrealistic view of what the company is worth 0%
The IRS will require it with the tax return 0%
What market segment is an airline offering no frills targeting?
Price sensitive people 0%
Rich people 0%
Time sensitive people 0%
Anyone who will fly their airline 0%
What marketing method is a gas station most likely to use?
Door to door sales 0%
Online advertisements 0%
Television ads 0%
Coupons distributed locally to the residents 0%
What policy should be followed regarding employees and the company strategy?
Never let employees know the strategy; they are there just to do their job and nothing more 0%
Only let top executives know the company's strategy 0%
Let everyone know the company strategy and how they will accomplish it 0%
Require employees to sign a non disclosure before reading it 0%
What role does marketing play in a company's business life?
It creates a tax obligation 0%
It is how it makes potential customers aware of its products and services 0%
It is part of the ordering process 0%
It is part of the financial reporting process 0%
What section of the financial forecast would expenditure on telephones be forecasted under?
Revenue 0%
Cost of goods sold 0%
Short term liabilities 0%
SG&A 0%
What section would SWOT analysis typically be in?
Financial Highlights 0%
Executive Summary 0%
Business Model 0%
Market 0%
What should a company do if they do not have a marketing plan?
Omit the marketing section completely 0%
Leave the section blank or write N/A 0%
Determine the company's marketing plans and realize every company needs some form of marketing 0%
Copy someone else's marketing plan 0%
What should be considered while deciding a firm's strategy?
The competitors and the strategy they have employed 0%
How much the company wants to spend on payroll 0%
If there is a potential for a lawsuit 0%
None of the above 0%
What should be the minimum length of a business plan?
2 pages at the most 0%
At least 50 pages 0%
At least 100 pages 0%
There are no predefined standards 0%
What strategy should a new company wanting to enter a market employ?
Market to everyone on earth and see what happens 0%
Look at the market leader and attempt to steal all of their clients 0%
Spend every cent they can on online advertising 0%
Focus on smaller, ignored territories to gain a foothold 0%
What type of company would never need a business plan?
A hockey equipment manufacturer 0%
A new online service based company 0%
A shoe retailer 0%
None of the above 0%
What would a Market Follower strategy be distinguished by?
A company who attacks the market leader 0%
A company who turns a few heads but does not challenge the market leader 0%
A company on the verge of going out of business 0%
A company who wants to enter new markets 0%
What would be the best methodology to follow while creating a forecast?
Be conservative 0%
Be extravagant 0%
Base it on a competitor's 0%
Copy someone else's so you don't have to take any pains 0%
What would sending coupons to prior customers directly be considered?
Target Marketing 0%
Mass Marketing 0%
Radio Marketing 0%
Coupon Forwarding Marketing 0%
Where might a potential competitor come from?
An established company in a different industry could easily expand into your market 0%
Any company in any industry is a threat 0%
Some employees may leave and start their own companies 0%
Some members of the management could leave and start their own company 0%
Where would company valuation be discussed?
Market 0%
Marketing 0%
Financial section 0%
Executive Summary 0%
Where would the Financial Projections typically be located in a business plan?
In the middle of the plan 0%
In the final section before the appendix 0%
In the first section before the executive summary 0%
In the section after the executive summary 0%
Which of the following could be a core competency of a company?
No marketing plan in place 0%
Ability to change direction quickly 0%
High labor burden rates 0%
Inexperienced management team 0%
Which of the following factors would be used in estimating revenue?
Current telephone rates 0%
Number of employees 0%
Market size 0%
Interest rates 0%
Which of the following is a traditional method of marketing?
Pay Per Click 0%
Television advertisements 0%
Search Engine Optimization 0%
None of the above 0%
Which of the following is one of the groups a business plan is meant to inform?
The SEC 0%
Government entities 0%
Potential investors 0%
The IRS 0%
Which of the following strategies has warehouse reseller Costco taken?
High prices, selected goods 0%
A strategy similar to that of a regular grocery store 0%
Low priced items but a limited selection 0%
A wide variety, low price, no frills shopping experience with a membership 0%
Which of the following terms best describes how a company can make itself stand out from the competitors?
Differentiation 0%
Marketing 0%
Doing a business plan 0%
Stealing employees 0%
Which of the following would be a mistake in forecasting?
Using unrealistic expectations 0%
Creating a detailed revenue projection 0%
Creating a set of assumptions on which the forecast is built 0%
Making a forecast for several years 0%
Which of the following would be a value proposition?
Wal-Mart offers the cheapest prices around on a wide range of merchandise. 0%
Wal-Mart uses coupons to entice visitors to the store 0%
Wal-Mart hires elderly people 0%
Wal-Mart is always busy 0%
Which of the following would not typically be a section in a business plan?
Executive Summary 0%
Financial Projections 0%
Market 0%
Payroll Policies 0%
Which of the following would you factor into long term liabilities?
Loans the company has to take 0%
Interest rates 0%
Current depreciation rates 0%
Revenue projections 0%
Which of the items below is NOT a purpose of a business plan?
Informing potential investors of the company's business model 0%
Offering shares of the company for sale 0%
Letting the employees know the purpose of the business 0%
Helping the management by providing them with a road map 0%
Why are companies able to stay in business during turbulent financial market times?
They have saved up enough money; they can use these savings to bolster their earnings 0%
They frequently lay off people thus running a bare bones company 0%
They have designed a flexible business model that can adapt to change 0%
They don't; most if not all companies go out of business 0%
Why is it important to have an executive summary?
It is required by law 0%
It urges the reader to read the entire plan to learn more 0%
It gives the reader a quick 1 to 2 page summary of the entire business plan without having to read the whole document 0%
It can be used to sell the shares of the company 0%
Why is it important to hire intelligently early on?
You can pay lower rates if you hire early on 0%
It is easier to fire people who were hired early 0%
There are tax benefits 0%
Having key management people in place is important as they will aid in making important decisions early on 0%
Why is it important to identify your market segments?
It is required by law 0%
The company will fail without the information 0%
It is required for budgeting 0%
You need to tailor your marketing strategy and products to each market segment differently 0%
Why is it important to know the entire potential market even if your company can only focus on a small segment?
The total market dictates what the individual market size will be and what the maximum potential size is 0%
It is needed for company financial reports 0%
You can expand the company to reach the entire market 0%
There is no real reason to know 0%
Why is it important to talk about competition?
It is not important; competition should be ignored 0%
You want to compliment them in your plan so they like you and your company 0%
They can sue you if you ignore that they exist and lie to the reader 0%
Everyone has competition. It is best to address the competition and plan how your firm will stack up against it 0%
Why is it important to talk about market timing?
There are laws about entering a market in an off time 0%
There are no preferred times to enter a market, it is irrelevant 0%
While there is no good time to enter a market, it is important to discuss them 0%
Several industries are cyclical and there are advantages in entering a market which is just beginning on an upswing 0%
Why is it important to track your competitors?
They might be indulging in illegal activities 0%
You can steal their employees 0%
To look for the moves they are making which could impact your business 0%
You can steal their proprietary ideas 0%
Why is it okay to let some competitors' moves go unanswered?
Companies should focus on their own initiatives rather that constantly respond to other companies actions 0%
Let the competitors succeed or fail first before responding to their moves 0%
It is better to be a follower and always follow the competition 0%
Competitors always make stupid decisions 0%
Why should a business plan be revisited annually?
To make sure the company gets its money's worth out of the business plan cost 0%
Because the company's values, objectives, strategies and forecasts keep changing 0%
It is required by law 0%
It helps the management to look intelligent to the employees 0%
Why would a company with a very rigid business plan possibly face trouble?
Competitors will more easily mimic their business model 0%
They will run out of money quicker 0%
The management will not stay with the company 0%
It will be unable to change as the market changes 0%
Why would a company's website be considered a part of its marketing effort?
It is a way to reach out to current and potential customers with information about its product and its value proposition 0%
It falls under the marketing budget 0%
The web designer's salary falls under marketing 0%
The company can offer coupons to customers by creating it 0%
Why would a new company spend most of their budget on marketing?
Investors want to see their money spent on marketing 0%
There is nothing else to spend the money on in the early stages 0%
It is a requirement of SEC for new companies 0%
To establish a client base early on 0%
Would a company that produces a complementary product to yours be considered a competitor (e.g. a tennis ball maker and a tennis racket maker)?
Yes, they will try to put you out of business for sure 0%
Yes, they could expand into your market with their industry expertise 0%
No, they are restricted by law against entering your market 0%
No, they won't know how to enter your market 0%
Would you ever consider talking to your competitors directly?
No, you do not want to give away any information about the company 0%
Only if you can get them to talk without you having to talk 0%
Yes, but only if they pay you for information 0%
Yes, companies often discuss their business models with competitors as it is often not a secret, and both parties can benefit 0%