Deck 6: Entrepreneurial Marketing

Question 1

Entrepreneurs should not initially consider their resources and capabilities when first developing their marketing strategies.

Answer 1

False

Question 2

Customer acquisition and retention are the core processes of marketing.

Answer 2

True

Question 3

Marketing communications convey messages to the market; messages about the company's products and services, as well as about the company itself.

Answer 3

True

Question 4

The marketing of products and services are similar.

Question 5

The scope of marketing ranges only from advertising to promotion.

Question 6

Marketing is at the heart of an organization because its role is to identify and serve customers' needs.

Question 7

New ventures cannot survive in competition with larger corporations, since the latter can spend intimidating sums on marketing research, testing their strategies, or designing marketing campaigns.

Question 8

Intuition, personal expertise and passion are usually enough to fully assess opportunities in an entrepreneur's marketplace.

Question 9

During the introduction phase of the product life cycle, marketers must cultivate customer loyalty and build the brand.

Question 10

Many entrepreneurs rely heavily on their cash expenditures to achieve a compelling image in a noisy marketplace.

Question 11

New ventures must differentiate their product or service to make its distinctiveness and value clear to customer.

Question 12

Marketing helps entrepreneurs acquire resources by selling their ideas to potential investors and partners.

Question 13

A segment is a group of customers defined by certain commonalities or characteristics that may be demographic, psychographic, or behavioral.

Question 14

The cost-based method of pricing is marking up a product based on its cost plus a desired profit margin.

Question 15

Two inexpensive ways to identify the appropriate target market are to pursue multiple markets or to wait for one to emerge.

Question 16

The stages of the product life cycle are introduction, growth, maturity, and introduction again.

Question 17

Entrepreneurs frequently stumble in their marketing, because of personal biases and beliefs.

Question 18

The three primary types of sales promotion are consumer promotions, trade promotions, and sales force promotions.

Question 19

Distribution is not as problematic for service-based ventures as it is for those that manufacture goods.

Question 20

Price promotions are short term and use regular price levels as a base from which to discount.

Question 21

Positioning describes a company's offering relative to the product attributes that are most important to whom?

A) Investors
B) Shareholders
C) Competitors
D) Customers
E) Marketers

Question 22

Effective guerrilla marketing tactics appeal to emotion and create drama.

Question 23

The core product is______, while the augmented product set of attributes is peripherally related to it.

A) The brand
B) The technology
C) The cost
D) The essential good or service.
E) None of the above

Question 24

Guerrilla marketing consists of activities that are non-traditional, grassroots, and captivating, which gain consumers' attention and build awareness of the company.

Question 25

Early stage companies often find it necessary to scale up or change focus.

Question 26

Studies show that accurate pre-venture market analysis can reduce the failure rates of new ventures by what percent?

A) 10%
B) 30%
C) 60%
D) 80%
E) 95%

Question 27

In addition to acquiring and retaining customers, marketing spans the boundaries between___.

A) Sales and service
B) A company and its customers
C) Products and services
D) None of the above
E) All of the above.

Question 28

Entrepreneurs market to which of the following audiences?

A) Investors
B) Business partners
C) Customers
D) Employees
E) All of the above

Question 29

A positioning statement has which of the following:

A) Target group and need
B) Brand and concept
C) Point of difference
D) All of the above
E) None of the above

Question 30

Brand equity is always a positive influence for your company.

Question 31

______ are key marketing dimensions that set the strategic framework.

A) Segmentation, targeting, and positioning
B) Price, Promotion and Product
C) Global Brand Awareness
D) Price setting
E) None of the choices above

Question 32

The entrepreneur's decision on how to segment a market is critical because___.

A) the entrepreneurs cannot go back to revise them in the future
B) waiting for one to emerge is an expensive strategy.
C) the segmentation function will often be outsourced to a marketing firm who requires clear instructions.
D) None of the above

Question 33

Guerrilla tactics have become increasingly difficult to execute in recent years, because corporate marketing executives are now employing non-traditional tactics as well and have much larger budgets at their disposal.

Question 34

People usually use guerrilla tactics in wide-spread advertising, rather than in personal selling.

Question 35

Brand equity is the combined result of brand awareness and brand image.

Question 36

The customer's actual experience with the brand has a strong effect on brand image.

Question 37

Customer understanding enables the entrepreneur to ______:

A) create value.
B) capture value.
C) communicate value.
D) deliver value.
E) All of the above

Question 38

Channel partnerships and relationships have important implications for entrepreneurs. In fact, the channel member with the most power will often prevail in a competitive market.

Question 39

It is difficult for small companies to save money on "media buys" because ___.

A) their range of advertising is limited.
B) their marketing is not creative enough to generate viral exposure.
C) their product mix is too diverse.
D) they are the first in a new market.
E) None of the above.

Question 40

An important part of gaining the market's acceptance is___.

A) Building brand awareness
B) Reducing the product's cost of goods sold
C) Franchising the brand
D) Building celebrity client network
E) None of the above.

Question 41

Entrepreneurs discover the unique value they deliver by ___.

A) Examining the total benefits of the venture.
B) Differentiating their value from existing competitors.
C) Validating its value with its customers.
D) All of the above.
E) None of the above.

Question 42

The selection of a company's key communication tools is determined by:

A) Cost
B) Target market
C) Timing
D) All of the above
E) None of the above

Question 43

If a company can cultivate brand equity, what type of price can it expect loyal customers to pay?

A) A fair price
B) A minimum price
C) A premium price
D) A discounted price
E) All of the above

Question 44

Price discrimination happens when a company charges different prices to different ____ segments.

A) product
B) customer
C) risk
D) A or B
E) none of the above

Question 45

Which of the following most directly affects revenue, profits, and how consumers perceive a product's position in the market?

A) Pricing
B) Promotion
C) Place
D) Product
E) None of the above

Question 46

While segmentation profiles a company's customers, what does positioning outline?

A) Customer perceptions
B) Cost
C) Operational advantage
D) Revenue
E) None of the above

Question 47

Which of the following is an approach to Guerrilla Marketing?

A) Identifying challenges and developing creative solutions.
B) Using the "inherent drama" in your offerings to your benefit.
C) Capturing people's attention by targeting the local news media with a public, promotional event.
D) Creating an entertaining digital video that can be viewed and shared online.
E) All of the above

Question 48

Brand awareness is created through a customer's exposure to what?

A) Advertising or publicity
B) Social media
C) Education
D) Promotion
E) Price reductions

Question 49

The attractiveness of a market segment is related to its size, growth rate, and ___.

A) cost
B) price
C) competitive advantage
D) potential profit
E) none of the above

Question 50

What type of strategy aims to proactively move the volume of products through the channel using tools such as trade promotions, trade shows, and personal selling to distributors?

A) Pull strategy
B) Push strategy
C) Penetration pricing
D) Product differentiation
E) None of the above

Question 51

Some methods employed to develop a "listening system" include:

A) Transactional surveys
B) Customer advisory panels
C) Cookies planted in customers' computers when they visit a ventures web page.
D) B and C only
E) A and B only

Question 52

______ is the customer's ability to recognize and recall the brand.

A) Technique awareness
B) Brand awareness
C) Value awareness
D) All of the above
E) None of the above

Question 53

All entrepreneurs face the need for brand building, which is ___.

A) the task of building brand awareness.
B) the task of building brand equity.
C) the dual task of building brand awareness and building brand equity.
D) building either brand awareness, or brand equity.
E) the task of building other issues.

Question 54

Entrepreneurs must obtain information that will allow them to understand consumer buying behavior and customer expectations related to:

A) Product design, pricing, and distribution
B) Product design, pricing, or distribution
C) Product design or pricing
D) Pricing and distribution
E) Pricing or distribution

Question 55

Why must a company continue new product development even after launching a successful product into the market?

A) To gain an advertising advantage
B) Competition
C) To keep the firm profitable
D) To ensure maturity in the market
E) Both B & C

Question 56

Price discrimination is a pricing strategy that:

A) Limits sales to a specific demographic.
B) Charges different prices to different customer segments.
C) Prices below the prevailing market prices in order to gain market share.
D) Sets the price at a predetermined level above the per unit cost of production.
E) None of the above

Question 57

The communications mix includes:

A) Advertising, cross selling, investor relations, personal selling, and direct marketing.
B) Advertising, sales promotion, public relations, personal selling, and direct marketing.
C) Sales promotion, advertising, consumer relations, multi-level reselling, personal selling.
D) A and C only.
E) A and B only.