Chapter 4 Entrepreneurship

a. Viral segmentation b. Geographic segmentation C. Business demographics d. Psychographic segmentation

a. Viral segmentation

In a combination segmentation, which two types of segmentation are combined? a. Ethnic and Psychographic segmentation b. Demographic and Psychographic segmentation C. Demographic and Geographic segmentation d. Geographic and Viral segmentation

C. Demographic and Geographic segmentation

All of the following are key steps to becoming a one-to-one marketer except: a. Link customers' identities to their transactions b. Calculate individual customer lifetime value C. Mass market to customers using generic approach to satisfy all d. Practice just-in-time marketing

C. Mass market to customers using generic approach to satisfy

What type of pricing objective aims to attract customers, even at a loss, typical of grand-opening sales? a. Revenue oriented b. Operations oriented C. Patronage oriented d. Viral oriented

C. Patronage oriented

All of the following are factors that often underlie hidden profit potential except: a. Profit from Price Premium b. Profit from Reduced Operating Costs C. Profit Derived from Decreased Purchases d. Profit from Referrals to Other Customers

C. Profit Derived from Decreased Purchases

17. is the difference between variable cost of selling an extra unit of service and the money received from the buyer of that service.

Contribution

After the trade show, the company should develop screening questions to identify solid sales leads

False

Fortunately, market research is not a costly exercise for a startup company.

False

Given the rising cost of target marketing, generic marketing is the strategy used by most successful businesses today.

False

Google also offers free software tools to monitor web site effectiveness called Google Maps.

False

Once the marketing analysis and competition review are established, the entrepreneur should begin to develop the product research plan.

False

The advantage of using sales agents is that they usually sell other competitors' products or services as part of a complete line.

False

The __________is the first step in determining what further information is required to build out a marketing plan, and is the basis for a method for collecting information, analyzing results, and communicating findings.

embedded survey

marketing required learning the profile or details about individual customers to identify which are most valuable to the company. Ans:

One-to-one marketing

is the process of establishing and maintaining a distinctive place in the market for the start-up and/or its products offerings.

Positioning

segmentation divides customers into cultural groups, value groups, social sets, or other interesting categories that might be useful for classifying customers.

Psychographic

are good places to exhibit and sell products.

Trade shows

Entrepreneurs usually engage in marketing research for two reasons: (1) to identify the need and opportunity for the venture and (2) to understand marketing and customer issues that relate to the product or service.

True

Marketing objectives are likely to be based on sales revenues and market share.

True

Marketing plans often place a great deal of emphasis on acquisition but not on customer loyalty.

True

One-to-one marketing is rapidly becoming a competitive imperative.

True

is a term used to describe mechanisms by which customers are triggered and motivated to recommend a product or service to other potential customers.

Viral marketing

Market Segmentation by Demographics includes: a. Defining targeted customers by income level. b. Defining targeted customers by value groups. C. Defining targeted customers by business level. d. Defining targeted customers by location.

a. Defining targeted customers by income level.

segmentation is very important for retail businesses, restaurants, and services addressing their local surroundings only. a. Geographic segmentation b. Business demographics C. Ethnic segmentation d. Viral segmentation

a. Geographic segmentation

Which type of marketing is a small segment of a large market ignored by other companies? a. Niche marketing b. Mass marketing c. Value marketing d. Just-in-time marketing

a. Niche marketing

is the process of establishing and maintaining a distinctive place in the market for the start-up and/or its product offerings. a. Positioning b. Viral marketing c. Combination segmentation d. Mass marketing

a. Positioning

What is the key to the process of controlling costs and showing a profit? a. Pricing b. Market analysis c. Supply and demand d. Sales strategy

a. Pricing

What type of pricing objective aims to maximize the surplus of income over expenditures? a. Revenue oriented b. Operations oriented C. Patronage oriented d. Contribution oriented

a. Revenue oriented

Which type of segmentation is somewhat uncomfortable for people living in a county with a history of ethnic-based discrimination? a. Combination segmentation b. Ethnic segmentation C. Psychographic segmentation d. Demographic segmentation

b. Ethnic segmentation

The best advocate for a company's products or services is the: a. New customer b. Existing customer C. Entrepreneur d. Sales Representative

b. Existing customer

Which of the following works as a subcontractor to sell products or services? a. Direct salesforce b. Sales Agents c. Trade shows d. Entrepreneurs

b. Sales Agents

Which type of cost represents expenses that rise or fall in stepwise fashion as the business volume increases or decreases? a. Fixed b. Variable C. Semivariable d. Contribution

b. Variable

All of the following are disadvantages of using sales agents except: a. The entrepreneur has little control over the sales agents. b. Sales agents usually sell other products or services as part of a complete line. c. Sales costs are not incurred until the product is sold. d. Sales agents tend to push the easier-to-sell products or services.

c. Sales costs are not incurred until the product is sold.

Demonstrating ___________is part of pricing a new strategy. a. rationale b. costs c. value d. contribution

c. value

Which type of cost is the difference between variable cost of selling an extra unit or service and the money received from the buyer of that service? a. Fixed b. Variable c. Semivariable d. Contribution

d. Contribution

To determine the best type of advertising, entrepreneurs should consider all of the following except: a. Variables of targeted audience b. Type of product с. Cost d. Entrepreneurial personality

d. Entrepreneurial personality

Demographic segmentation divides a market by all of the following except: а. age b. income c. gender d. geography

d. geography

The is a group of salespeople who work directly for the company and are paid straight salary, salary plus bonus, or straight commission.

direct salesforce

A(n) is a small segment of a large market ignored by other companies.

niche market

Marketing tactics are developed for each target market, which is called

strategic market segmentation