MGMT 305 Midterm- Jim Litton

What are the steps to get customers in the example for a physical channel?

1. Awareness 2. Interested 3. Consideration 4. Purchase

What are three examples of how companies can create demand through paid activities?

1. Public Relations 2. Advertising 3. Webinars

Cody recently launched an online subscription service providing insight to high school football coaches. He decided to mail information to 10,000 different coaches. It cost him $1.00 per piece that he mailed. In response to the mailer, 1,000 coaches visited the website and signed up for a free trial and 25% of those coaches ended up paying for the service the next month. What is Cody's customer acquisition cost?

40

According to the video lectures, which of the following startups would be most attractive to investors?

A company with "A" employees in a "B" market

Why would a company want to utilize other channels instead of using a direct sales force or its own website?

A company would utilize other channels if their product is a component of other products, if they want a lower selling cost, if another channel will promote more sales for the product, etc.

Which of the following are reasons for startups to have partners? Please select all that apply.

Access to all markets Unique customer knowledge or expertise More efficient use of capital Faster time to market

Which of the following are focused primarily on helping advance your company's success? Please select all that apply.

Advisor

Mortgage companies that rely on Lending Tree or similar companies utilize which type of channel?

Aggregator

Andy is excited because his new book on legal issues for entrepreneurs just sold its 10,000th copy this year at college campuses. He is getting ready to send out an email to all of his customers and offer them a chance to purchase study aids and a summary review sheet that will help students using the textbook. This is an example of which attempt to grow customers?

Cross Sell

Trade Secret

Customer lists

A company that sells its products on its own website is using which type of channel?

Dedicated e-commerce

If I rely on my channel partner to secure placement of my physical product in various stores, which type of channel am I using?

Distributor

Which of the following are types of jobs described as jobs to be done for customers? Please select all that apply.

Emotional jobs Satisfying basic needs

A revenue stream is the price I charge customers.

False

A value proposition is all about a company's idea or product.

False

Entrepreneurs should rank pain killers based on the intensity for customers and the potential cost savings to the company.

False

Financial statements (income statement, balance sheet, and cash flow statement) include the most important metrics for a startup.

False

If your company can solve any customer pain, then you can build an attractive business model around that solution.

False

In a physical channel, the term "customer acquisition cost" refers to the amount of money a company has to spend to make customers aware of their product.

False

In getting customers in a web/mobile channel, "activate" refers to getting customers to the website, app, etc.

False

More startups fail from a failure of product development than from a lack of customers

False

Product Market Fit is focused on the relationship between a company's value proposition and costs.

False

Solving a problem will provide a company with a larger available market than solving a need.

False

Strategic alliances and joint partnerships are generally needed early on in a resegmented market.

False

There are no competitors in a resegmented market.

False

Copyright

Films, music, software

Which of the following are risks that startups should manage in a partnership? Please select all that apply.

IP issues Difficult to end relationship Objectives may be different Lack of clear ownership of customer

Ebay is an example of which revenue strategy?

Intermediation Fee

In which of the following ways is the Business Model Canvas valuable to entrepreneurs? Please select all that apply.

Keeps record of progress Helps to organize your thinking

Which of the following are examples of differences between countries that allow for clone markets to be successful? Please select all that apply.

Language Culture

Trademark

Logos, marks, slogans

In which type of market is the chasm between early adopters and the mass market the largest?

New

The "hockey-stick" revenue forecast is associated with which type of market?

New

Patent

New technology

ACU is considering other software options to replace Canvas as its primary learning management system. The university's IT department has been tasked to select the new software. The IT department has surveyed students and tested the product with a select group. It also has created a committee of faculty to review the options and provide formal feedback to the IT department. Eventually, the IT department will need to get approval from the CFO's office to secure funding for the contract. In this situation, what role does the committee of faculty play?

Recommender

Which of the following defines a partner? Please select all that apply.

Shared economics Common customers Co-development / invention Mutual success / failure

Which of the following are common mistakes in developing value propositions? Please select all that apply.

Simply creating a feature of someone else's product It's a "nice to have" instead of a "got to have"

The iPod partnership described in the video lectures is an example of which type of partner relationship?

Strategic Alliance

A business model is how a company creates value for itself while delivering products or services for customers.

True

A common mistake made by startups is that its price has to be less than its competitor's price.

True

A common mistake that startups make in their pricing tactics is to set the price based on the cost of their product or service.

True

A common startup mistake is not understanding why a potential partner needs your startup as a partner.

True

A startup is not just a smaller version of a larger company.

True

Based on the examples in the video lectures, a company that uses a direct sales force instead of an outside channel will make more profit on each unit it sells.

True

Customer needs in an existing market are focused on performance.

True

If your company sells to an OEM, it is generally selling a component that is used to manufacture a certain end product that is then sold to customers.

True

It's generally more expensive to get a customer than to keep a customer.

True

Most of the partnerships described in the video lectures fail in the long run.

True

Startups in a multi-sided market may care about gaining users before generating revenue.

True

The two types of key suppliers are outsource suppliers and direct suppliers.

True

A company that sells its product on Amazon is using which type of channel?

Two-step distribution

Product-Market Fit is focused on the relationship between which of the following:

Value proposition and the customers

Which of the following are good questions to ask as you consider the cost structure of your startup?

What are your most expensive activities? What are your most expensive resources? What is the relationship between fixed and variable costs?

Which of the following are examples of dynamic pricing tactics? Please select all that apply.

Yield Management Negotiation Real-time Markets Auctions

In selecting a distribution channel, entrepreneurs need to decide how the product will get from our __________ to the ____________.

company, customer

The "Customer Relationships" component of the business model canvas is all about how your company will _________, ___________, and ___________ customers.

get, keep, grow

A revenue stream is the _______ a company uses to generate ________ from each ___________________.

strategy, cash, customer segment