Deck 5: Entrepreneurial Marketing

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

The scope of marketing ranges only from advertising to promotion.

Question 9

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

Question 10

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 11

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

Question 12

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

Question 13

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 14

Customer acquisition and retention are the core processes of marketing.

Question 15

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

Question 16

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

Question 17

Guerilla marketing is, at its essence, an asymmetric manner of competing in which a low resource entrant seeks to outmatch competitors by concentrating creativity, boldness, agility, and local knowledge within their marketing methods that are practically (if not economically)difficult for larger competitors to imitate or keep pace with.

Question 18

The marketing of products and services are similar.

Question 19

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

Question 20

Targeting is essentially a linear process that is completed at the beginning of strategy formulation and is not repeated in the start-up phase.

Question 21

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

Question 22

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 23

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

Question 24

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 25

In addition to acquiring and retaining customers, marketing serves the venture by function as its___.

A)Moral compass
B)"Eyes and ears" in the marketplace
C)Talent scouts.
D)None of the above
E)All of the above.

Question 26

Entrepreneurs market to which of the following audiences?

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

Question 27

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 28

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

Question 29

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 30

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

Question 31

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 32

Brand equity is always a positive influence for your company.

Question 33

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

Question 34

Customer understanding enables the entrepreneur to ______:

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

Question 35

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 36

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

Question 37

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

A)they do not have a large enough advertising expenditure.
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 38

Intuition-based decision making should always supersede other methods in planning a marketing campaign for an entrepreneurial startup.

Question 39

The core product is______, while the augmented product collection of offerings are peripherally related to it.

A)The brand
B)The technology
C)The cost
D)The essential product
E)None of the above

Question 40

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)segmentation becomes the lens through which the market is viewed, and the choice of a particular lens can both highlight and obscure different critical aspects of the actual market.
C)the segmentation function will often be outsourced to a marketing firm who requires clear instructions.
D)None of the above

Question 41

______ 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 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

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 44

Why is the marketing done by entrepreneurs different from marketing done by established companies?

Question 45

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 46

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 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

In your own words, define "marketing".

Question 49

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 50

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 51

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 52

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 53

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 54

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 55

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 56

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 57

______ 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 58

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.

Question 59

Why is marketing critical for entrepreneurs?

Question 60

What are the "4 P's" of marketing, and which activities define them?

Question 61

What might be some common marketing mistakes likely to be made by an entrepreneur who is part of a one or two person marketing team?

Question 62

What methods can an entrepreneur leverage to identify the most appropriate price for his or her product?

Question 63

Describe how an entrepreneur may think about selected primary and secondary target audiences from a segmented market.
$\bullet$ Consider how critical your value proposition is to the customer segment.Are you selling "oxygen or Tylenol?" How essential is your product or service to THIS segment?

Question 64

What are the key skills for managing growth and why?

Question 65

Why is defining what guerrilla marketing does easier than defining what it is?

Question 66

Distribution channel strategy includes three types of channel coverage, please define them.

Question 67

What is the difference between price skimming and penetration pricing, and when will a skimming strategy be best? Why?

Question 68

For a rapidly growing company seeking greater growth, a large established channel partner who wishes to place large orders at high prices would seem like a great opportunity.What factors could make this a terrible idea for a new venture, that an entrepreneur must first look at?
$\bullet$ Will you need to incur fixed costs to serve this channel partner, and what share of your present, and near-term revenue is this partner representing? This is necessary to avoid entering into a situation where your channel partners bargaining power is too great and where you will be unable to cover your fixed costs if they demand a lower price or volume in the future.

Question 69

With all the discussion of the disadvantages an entrepreneur faces in marketing, what would be some of the advantages?

Question 70

Explain how your marketing listening system and market segmentation are intertwined.

Question 71

What is guerrilla marketing, and what are the main categories of guerilla marketing?