ENES210

What is the purpose of a value proposition? Select all that apply.

To explain how your product solves customers' problems or improves their situation To tell the target customer why they should buy your product or service instead of the competition's To define the specific benefits that will be delivered by the product or service to the customer

What are the objectives of customer discovery? Select all that apply.

To validate the fit of your solution to that problem. To validate the problem.

Of all things that you can show an investor, what is typically the most important item that will convince them to invest in your startup company?

Traction of the company

Asking existing customers for referrals to prospective customers is a valuable sales technique.

True

Most successful startup teams are comprised of individuals with different skill sets that align with specific roles on the team.

True

Product-market fit means being in a good market with a product that can satisfy that market.

True

Businesses that focus on the creation and delivery of high-value value propositions, to include those that may be customized to the customer segments' preferences, are typically described as:

Value-driven

Business expenses that are heavily dependent on the volume of output a company produces are:

Variable costs

What questions should a winning value proposition address? Select all that apply.

What is the benefit of using it? What makes your product or service unique versus competitors? What product or service is your company selling? Who the product or service is for?

Which questions are most critical to consider when developing your value proposition? Select all that apply.

What kind of disruptive business model can you bring to market? What solution can you deliver uniquely well? What problems do you understand uniquely well?

To determine the best distribution channels for a product, the producer should ask what key questions? Select all that apply.

What successful channels are competitors using? Where do customers seek to purchase the product?

What key questions should an entrepreneur consider when developing their revenue model? Select all that apply.

What type and frequency of payment would be preferable to the status quo? What percentage of the total revenues does each revenue stream represent? Are there unrealized benefits that customers would pay more for? How are customers paying for these benefits today? What benefits are customers currently paying for?

What is a typical compensation rate for an adviser for one year of service in terms of startup equity?

1%

Which activities should startups perform before determining the price of their product or service? Select all that apply.

Develop the Marketing Strategy Assess the Environment Estimate the Demand Curve Set Pricing Objectives Calculate Costs

To prepare for advisers, which questions should the startup team consider? Select all that apply.

Does the candidate adviser care about your industry and solution? What does the startup team need right now? How will the adviser be compensated?

What type of distribution channel is most likely to result in a user experience that may vary, and an inconsistent image for the company's product?

Dual Distribution Channel

When costs fall with higher volumes that spread fixed costs more thinly, thereby making the cost per unit fall dramatically, the producer is experiencing:

Economies of scale

When there is a reduction of costs when a producer invests in multiple markets or a larger breadth of operations, the producer is experiencing:

Economies of scope

An engineer and developer type person that can build the functional prototype (MVP) and alpha is often called the:

Hacker

When a company uses an intermediary to sell a product to the consumer, this is called a:

Indirect Distribution Channel

What are the 4Us of problem definition? Select all that apply.

Is fixing the problem Unavoidable? Is the problem Unworkable? Is the problem Urgent? Is the problem Underserved?

Competitive analysis is valuable to your startup plans in what ways? Select all that apply.

It helps you understand your competition. You may take advantage of competitors' weaknesses. You may identify changes that you should make to your business strategies.

How would you assess this sample value proposition: "We deliver revenue-focused marketing automation and sales effectiveness solutions to unleash collaboration throughout the revenue generation ecosystem".

It's unclear and not succinct.

To improve your success in step 6 of the sales process, addressing concerns, what techniques are valuable? Select all that apply.

Listen patiently Show concern Check back with a solution Get back to the conversation

When estimating first-year costs for a startup, which item is commonly calculated as a percentage of revenues?

Marketing

When a low price is initially set by the company to build up sales and market share, with the plan of later raising prices once its market position is established, this pricing strategy is called:

Penetration Pricing

What are the typical benefits of inbound marketing? Select all that apply.

Powered by creativity and talent instead of budget and repetition Generates momentum for future promotional efforts Lower average cost to acquire customers

In the sales process, the act of planning the method of approach for potential customers with a deal or sales pitch that they may be interested in is called:

Pre-approach

What are the 4Ps of the marketing mix? Select four.

Price Promotion Product Place

If you are unsure of the right price to charge, the best choice is to:

Start with a higher price, and lower the price later if needed.

What is Squarespace's revenue model?

Subscription

A competitive analysis should exclusively focus on direct competitors.

False

A startup adviser is an individual who provides advice on running your startup and controls the management team.

False

Based on Noam Wasserman's research, the more power retained by founders, the more valuable their companies are likely to become.

False

If a thorough competitive analysis is done when you are starting your company, you do not need to conduct a competitive analysis on a regular basis.

False

Partnerships formed between partners operating in the same business area are called:

Horizontal Partnerships

The most effective entrepreneurial leaders typically demonstrate which aspects? Select all that apply.

Humility to realize that their learning and development is never done. Encouraging of other's sharing of ideas and advice. Vulnerable enough to acknowledge that they don't have all of the answers.

The team member that can find a way to sell the product or service, scale customer acquisition, and distribute the product or service is often called the:

Hustler

The aim of asking the question of "Is the problem worth solving?" is to discern:

If there are enough customers willing to pay.

What are the typical benefits to producers for using distribution channels? Select all that apply.

Promotional assistance Cost savings Faster delivery times Increased exposure to customers

In the sales process, the act of looking for potential customers is called:

Prospecting

When a startup's promotional strategy is to create advertising, media campaigns, and buzz about a product, this is called a:

Pull Strategy

When a startup's promotional strategy is to place the product with retailers, trade shows, and other venues for the customer to experience, this is called a:

Push Strategy

Revenues earned from consistent ongoing payments rendered to the company for either the delivery of the value proposition or after sales care for the customer are called:

Recurring Revenues

According to Steve Jobs, focus means:

Saying no to the hundred other good ideas that there are

Which techniques are valuable to gathering competitive intelligence? Select all that apply.

Search blogs and Twitter feeds as well as review and recommendation sites. Visit competitors' locations, if they have an offline presence. Evaluate competitors' marketing and advertising campaigns. Search the Internet for news, public relations, and other mentions of your competition. Analyze competitors' websites and marketing materials.

What are the prerequisites for co-founders? Select all that apply.

Share a common vision and values Offer complementary skill sets

Which characteristics are helpful for you to categorize consumers into customer segments? Select all that apply.

The group needs a separate distribution channel to be reached. Each consumer group feels strongly enough to pay for a different version of the product or service, tailored to their preferences. The customer groups have a particular need which justifies the creation of a product to match this need. The groups require relationships of different kinds.

Which of these conditions typically motivate new competitors to enter the market? Select all that apply.

The industry enjoys relatively high profit margins. Entering the market is relatively easy and inexpensive. The market is growing.

What are best practices for managing advisers? Select all that apply.

Be specific with when and how to meet by setting base expectations. Ask advisers for their strategies, ideas, advice, contacts, etc. Be timely with payments.

The MVP approach is aimed at:

Building only what is needed to create enough value in the eyes of your target customer to validate that you are heading in the right direction

In the sales process, the act of finding out what the needs of your prospects are is called:

Cross questioning and identification

What are the typical major targets of promotional activities? Select all that apply.

Customers Influencers Distributors

What is the first step to creating a winning value proposition?

Define the problem to determine whether it's a problem worth solving

What is the first step to developing your marketing mix?

Defining the Unique Selling Proposition

The Lean Product Process consists of six steps. Which of these is the first step?

Determine your target customer

What are the typical goals of a startup's promotional activities? Select all that apply.

Acceptance of a new product Increase in sales Improved brand equity Addressing competitor's actions

As an aspiring entrepreneur, when should you feel most comfortable in investing the resources required to build your product?

When you've repeated the Lean Product Process for additional waves with customers demonstrating positive feedback, ease of use, and high value.

To define your target market and understand its problems or desires, the first question to ask is:

Who is the customer?

What types of intermediaries typically purchase the product and gain ownership before selling the product to the next intermediary or end user? Select all that apply.

Wholesalers Retailers