Question 1

What is the last step to bridge the industry sector to target market?
A) To understand what a customer does and how they use your product
B) To understand the environment in which customers use your product
C) To understand the influences impacting your industry
D) To understand the competitive arena

Accepted Answer

Understanding how customers use your product is crucial in creating targeted marketing strategies that appeal to their needs and preferences. This step helps bridge the gap between the industry sector and the target market by identifying key features, benefits, and messaging that resonate with customers. Additionally, it can inform product design and development decisions to better align with the customer's use case scenarios.

Question 2

What is an end-user?
A) The person who buys your product
B) The person who uses the product
C) The person who sells the product
D) The person who offers product support

Accepted Answer

The end-user is the person who actually uses the product or service, so option B is the best choice. Option A refers to the customer or purchaser of the product, option C refers to the seller or retailer of the product, and option D refers to the support staff who assist users in resolving issues.

Question 3

In general, successful entrepreneurs
A) always start capital intensive businesses.
B) create a powerful brand backed by an equally powerful product or service that dramatically improves the customer experience.
C) typically try of offer new solutions that are 20 percent better than existing solutions.
D) do not care about what competitors do in the marketplace.

Accepted Answer

Successful entrepreneurs create a powerful brand backed by an equally powerful product or service that dramatically improves the customer experience. They focus on offering something of value to their customers that sets them apart from the competition. While they may try to innovate and improve upon existing solutions, it's not necessary for them to aim for a 20% improvement. Capital intensity may or may not be a factor depending on the business, and while entrepreneurs may not obsessively focus on their competitors, they do need to be aware of them and adjust their strategies accordingly.

Question 4

Successful entrepreneurs tend to
A) take complicated approaches to market segmentation.
B) avoid the segmentation issue.
C) keep segmentation simple and powerful.
D) target all segments.

Accepted Answer

Successful entrepreneurs know that targeting all segments is not a practical or profitable approach. They also understand that taking overly complicated approaches to market segmentation can be confusing and ineffective. Therefore, they tend to keep segmentation simple and powerful, focusing on the most profitable and accessible segments.

Question 5

Successful startups typically
A) try to be all things to all people.
B) use mass marketing.
C) target a specific industry segment or niche.
D) try to invest the least in acquiring customers.

Accepted Answer

Successful startups typically target a specific industry segment or niche, rather than trying to appeal to everyone. This allows them to focus their resources and provide a unique value proposition to their target market.

Question 6

Innovative customers
A) are cautious about adopting new products, services, or experiences.
B) drag out the buying decision process.
C) are less cautious about adopting new products, services, or experiences.
D) are the same as laggards.

Accepted Answer

Innovative customers are often early adopters and are less cautious about trying new products, services, or experiences. They are open to experimentation and enjoy trying new things, which makes them an attractive target for companies introducing new offerings to the market.

Question 7

A customer who is stuck on a problem and desperate for help is likely to?
A) Look for a cheap solution to their problem
B) Be open to a new solution and pay a high price
C) Wait for a solution to come along
D) Avoid seeking out a new solution

Accepted Answer

A customer who is desperate for help and stuck on a problem is likely to be open to a new solution and willing to pay a high price. They are more concerned with finding a solution to their problem than the cost.

Question 8

For the chocolate example in the book, examples of new market opportunities for the company included:
A) Selling custom printed M&Ms for different types of occasions
B) Great tasting energy bars
C) Healthy, nutritionally tuned snacks for the elderly
D) All of the above

Accepted Answer

Selling custom printed M&Ms could target corporate events, weddings, or other special occasions. Great tasting energy bars could attract fitness enthusiasts or people looking for a quick snack to fuel their day. Healthy, nutritionally tuned snacks for the elderly could be marketed towards the growing population of senior citizens who are becoming more health conscious. Therefore, all of the above options are potential new market opportunities for the chocolate company.

Question 9

What are customer behaviors?
A) Demographic variables
B) Specific desires and frustrations
C) Cognitive values or belief systems
D) Physical activities surrounding the use case

Accepted Answer

The answer of What are customer behaviors?
A) Demographic variables
B) Specific...

Question 10

What is white space?
A) A place where funding is available
B) The concept of growing into new customers
C) Space on a visual map that reveals a new market opportunity
D) The initial concept of your venture

Accepted Answer

White space refers to untapped or unexplored market opportunities, which can be identified through visual mapping. Option A and D are unrelated concepts, while option B is more about customer growth than market exploration.

Question 11

An addressable market ______________.
A) is the size of the industry
B) are the companies competing in an industry
C) are customers in a market
D) is the size, value, and spending of customers within a specific industry

Accepted Answer

An addressable market includes the size, value, and spending of customers within a specific industry. Option A is too broad as it only refers to the size of the industry, while option B only refers to the companies operating in the industry. Option C does refer to customers, but it doesn't encompass the entire set of customers within a specific industry.

Question 12

What is a key characteristic of a customer segment of a market?
A) Customers within that segment have different core needs
B) Customers within that segment are homogeneous
C) Customers are considered a mass market
D) Customers within the segment behave differently

Accepted Answer

A key characteristic of a customer segment is that customers within that segment are homogeneous, meaning they share common characteristics and needs. This allows companies to tailor their marketing efforts and product/service offerings to better meet the needs of that specific group.

Question 13

What are useful segmentation variables for a B2C customer and a B2B customer?
A) Age and gender
B) Gender and size of business
C) Income and education
D) Lifestyle and family size

Accepted Answer

The answer of What are useful segmentation variables for a...

Question 14

What are customer attitudes?
A) Specific desires and frustrations
B) Cognitive values or belief systems of end-users and buyers
C) Physical activities surrounding the use case
D) Demographic variables

Accepted Answer

Customer attitudes refer to their cognitive values or belief systems, which can influence their purchasing decisions and overall behavior towards a product or service. A and C refer to specific aspects of customer behavior or experience, while D refers to demographic information about the customer but doesn't directly relate to their attitudes.

Question 15

Why is it important to identify segments with innovative customers?
A) So R&D becomes more expensive
B) So you can save money on distribution
C) So different distribution opportunities become available
D) Because innovative customers are more likely to try new products

Accepted Answer

Innovative customers are more likely to try new products, which is important for a company looking to introduce new products or services to the market. These customers can also provide valuable feedback and help spread word-of-mouth marketing. Identifying segments with innovative customers can help a company tailor their marketing and product development efforts to better reach and appeal to this audience.

Question 16

What is not considered a vertical market?
A) Banking
B) Manufacturing
C) Running
D) Financial Services

Accepted Answer

Running does not fall under a vertical market as it is not a specific industry or niche market, unlike banking, manufacturing, and financial services.

Question 17

In the farming of the future example in the book, who has become the most interesting "persona" as top priority target customer?
A) The Steady Eddy Farmer, who has worked his farm for thirty plus years
B) The Up and Comer Farmer, who tends to be younger and a heavy user of technology
C) The Sun Downer, who is a part time farmer
D) The Livestock Farmer, whose main focus is raising cattle

Accepted Answer

The answer of In the farming of the future example...

Question 18

What characterizes an emerging niche market?
A) No customers are willing to try new products
B) There are no customers in this niche
C) There is no current niche
D) No companies are addressing the needs of customers

Accepted Answer

Emerging niche markets are characterized by the presence of customer needs that are not currently being met by existing companies, indicating an opportunity for new or existing businesses to address these unmet needs.

Question 19

Identifying the unmet needs of customers in a target market allows you to:
A) Determine competitive solutions
B) Determine if a market opportunity exists
C) Make a distribution decision
D) Compile accurate financial information

Accepted Answer

Identifying unmet needs of customers in a target market helps determine if there is a market opportunity.

Question 20

What is a characteristic of a market segment?
A) Customers have different needs
B) Customers live in different areas
C) Customers have similar core needs
D) Customers look for different alternatives

Accepted Answer

A market segment is a group of customers who share similar core needs and characteristics that distinguish them from other groups in the overall market. Therefore, customers within a specific segment may have different needs, but they share a common set of core needs that differentiate them from customers in other segments. Options A and D describe differences among customers, but they do not necessarily define a segment. Option B relates to geographic differences, which may or may not be a defining characteristic of a segment.

Quiz 2: Defining the Target Customer

What is the last step to bridge the industry sector to target market?

What is an end-user?

In general, successful entrepreneurs

Successful entrepreneurs tend to

Successful startups typically

Innovative customers

A customer who is stuck on a problem and desperate for help is likely to?

For the chocolate example in the book, examples of new market opportunities for the company included:

What are customer behaviors?

What is white space?

An addressable market ______________.

What is a key characteristic of a customer segment of a market?

What are useful segmentation variables for a B2C customer and a B2B customer?

What are customer attitudes?

Why is it important to identify segments with innovative customers?

What is not considered a vertical market?

In the farming of the future example in the book, who has become the most interesting "persona" as top priority target customer?

What characterizes an emerging niche market?

Identifying the unmet needs of customers in a target market allows you to:

What is a characteristic of a market segment?