ENES210 Quizzes

Having a product or service that is faster, cheaper and better is not enough to make it compelling. (True/False)

True

In the sales process, the act of looking for potential customers is called: Prospecting Pitching Market research

Prospecting

To raise the funding that's often critical to grow their startup, founders are forced to relinquish a level of control of their startup.

True

Throughout the life cycle of a product, it is best to maintain one consistent type of promotional activity and a singular strategy.

False

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

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

True

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 - Agents - Retailers

- Wholesalers - Retailers

If you sell 20% of your company today to an angel investor for $20,000, and your company is acquired a year from now for $5 million, how much will you angel investor receive? $400,000 $20,000 $1,000,000

1 million

What are the typical goals of a startup's promotional activities? Select all that apply. Acceptance of a new product Significant near term return on investment Improved brand equity Increase in sales Addressing competitor's actions

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

What are the prerequisites for co-founders? Choose all that apply. - Bring a pre-existing friendship - Offer complementary skill sets - Share a common vision and values

- Offer complementary skill sets - Share a common vision and values

When selling a product or service to a business, which two problem criteria are most influential to the buying decision? - Critical - Concealed - Conspicuous - Craving

- Critical - Conspicuous

How is digitization upending many core tenets of competition among industries? Choose all that apply.

By providing high-speed ways to scale up enterprises. By lowering the cost of entering markets.

According to Andy Rachleff, which is more influential to the future success of a startup? Being the first to product-market fit Being the first product in the market

Being the first to product-market fit

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

True

You should interview potential customers before you have a prototype to get their insights on what features and values matter to them.

True

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

Variable costs

Partnerships between a firm and its suppliers or distributors are called:

Vertical Partnerships

In the sales process, when the prospective customer agrees to purchase the product or service and pays, this is called: Assessing the needs Closing the sale Presenting the sales pitch

Closing the sale

What are the 4Us of problem definition? Choose the four that apply. - Urgent - Unworkable - Underserved - Unavoidable - Undesireable

- Urgent - Unworkable - Underserved - Unavoidable

Which techniques are valuable to gathering competitive intelligence? Check all that apply. -Analyze their websites and marketing materials. -Evaluate their marketing and advertising campaigns. -Visit their locations, if they have an offline presence.

All of them

What is the difference between an angel investor and a venture capitalist? Select all that apply. Angels investors typically invest significantly less money in a startup than venture capitalists. Angel investors are investing their own money, while venture capitalists are typically investing other people's money. Angel investors are typically smarter on how to grow a startup than venture capitalists.

Angels investors typically invest significantly less money in a startup than venture capitalists. Angel investors are investing their own money, while venture capitalists are typically investing other people's money.

Businesses that offer low-priced value propositions, a high degree of automation, and outsourcing of costly functions are typically described as: Value-driven Cost-driven

Cost-driven

In the sales process, the act of finding out what the needs of your prospects are is called: Presenting the sales pitch Cross questioning and identification Assessing the needs

Cross questioning and identification

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 scope Economies of scale

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 Economies of scale

Economies of scope

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

False

To build rapport with the management team, a startup advisor will typically work for free for several months before expecting compensation.

False

What are the typical benefits to producers for using distribution channels? Select all that apply. Faster delivery times Cost savings Increased exposure to customers Promotional assistance Improved communication control

Faster delivery times Cost savings Increased exposure to customers Promotional assistance

To improve your success in step 6 of the sales process, addressing concerns, what techniques are valuable? Select all that apply. Get back to the conversation Listen patiently Argue your key points Show concern Check back with a solution

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

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

Hacker

A person with design and user experience (UX) know-how to improve UX and conversion is often called the:

Hipster

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

Horizontal Partnerships

What are the typical major targets of promotional activities? Select all that apply. Influencers Customers Distributers Investors

Influencers Customers Distributers

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: Assessing Pitching Pre-approach

Pre-approach

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: Transaction Revenues Recurring Revenues

Recurring Revenues

The Lean Product Process consists of six steps. Which of these is NOT one of these six steps? - Specify your Minimum Viable Product (MVP) feature set - Determine your target customer - Create your MVP prototype - Test your MVP with customers - Identify underserved customer needs - Select a market where customers are satisfied with existing solutions - Define your value proposition

Select a market where customers are satisfied with existing solutions

What are the qualifications of an adviser that startup teams should desire? Select all that apply. Skills in communicating and networking A "big name" that is recognizable in the industry Excitement for the startup's idea Experience in the industry, market, and/or technology of the startup

Skills in communicating and networking Excitement for the startup's idea Experience in the industry, market, and/or technology of the startup

To determine the best distribution channels for a product, the producer should ask what key questions? Select all that apply. How can I have complete control over the product? What successful channels are competitors using? Where do customers seek to purchase the product?

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

As an aspiring entrepreneur, when should you feel most comfortable in investing the resources required to build your product? - When you've completed all six steps of the lean product process? - When you've revised your hypotheses based on what you've learned in the lean product process? - When you've repeated the lean product process for additional waves with customers demonstrating positive feedback, ease of use, and high value.

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: Are there enough customers? Will they pay for your solution? Who is the customer? What are their needs and wants?

Who is the customer?

What is the purpose of a value proposition? Check all that apply. - Explains how your product solves customers' problems or improves their situation - Defines specific benefits that will be delivered by your product Correct! - Tells the target customer why they should buy from you and not from the competition - Describes the technical specifications of your solution

1, 2, and 3

What is the first step to creating a winning value proposition? Define Measure Evaluate Build Imagine

Define

How would you assess this sample value proposition: "ABC, Inc. delivers revenue-focused marketing automation and sales effectiveness solutions to unleash collaboration throughout the revenue generation ecosystem". - It's unclear and succinct. - It's clear and not succinct. - It's unclear and not succinct. - It's clear and succinct.

It's unclear and not succinct.

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

True

Entrepreneurs should only take investment when it is necessary. True False

True

When entrepreneurs raises money from investors, they sell a piece of their company. True False

True

What are the 3Ds for evaluating a value proposition? Choose 3. - Disruptive business model - Defensible technology - Dynamic solution - Discontinuous innovation

- Disruptive business model - Defensible technology - Discontinuous innovation

According to Ben Horowitz, which of these are widely held, but false, beliefs? Check all that apply. - Once you have product/market fit, you don't have to sweat the competition. - It's patently obvious when you have product/market fit. - Product market fit is always a discrete, big bang event. - Once you achieve product/market fit, you can't lose it.

All

Competitive analysis is valuable to your startup plans in what ways? Choose all that apply. It helps you understand your competition. You may identify changes that you should make to your business strategies. You may take advantage of competitors' weaknesses.

All

Is dilution bad? Select all that apply. Yes, because you are losing control of your company. No, because your pie is getting bigger with each investment.

All

What key questions should an entrepreneur consider when developing their revenue model? Select all that apply. How are customers paying for these benefits today? 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? What benefits are customers currently paying for?

All

When creating your business model, what cost related questions should you consider: (Select all that apply.) Is your business more value driven or cost driven? What activities create costs in your business? Are these activities matched to the Value Propositions for your business?

All

Based on their innovative nature, startups are less vulnerable to competition than established companies.

False

To distribute low-priced products that may be impulse purchases, which distribution strategy is best? Selective Distribution Intensive Distribution Exclusive Distribution

Intensive Distribution

What are the risks of partnering? Select all that apply. Loss of autonomy and control Lack of attention in managing the relationship Incompatible cultures Slower time-to-market Loss of intellectual property, particularly trade secrets

Loss of autonomy and control Lack of attention in managing the relationship Incompatible cultures Loss of intellectual property, particularly trade secrets

What are the possible negative outcomes to producers for using distribution channels? Select all that apply. Lost revenue Lost product importance Lower customer satisfaction Lower exposure to customers Lost communication control

- Lost revenue - Lost product importance - Lost communication control

Which characteristics are helpful for you to categorize consumers into customer segments? Choose all that apply. Each consumer group feels strongly enough to pay for a different version of the product or service, tailored to their preferences. The groups require relationships of different kinds. The customer groups have a particular need which justifies the creation of a product to match this need. There is a very clear difference in the level of profitability each group represents for the organization. The group needs a separate distribution channel to be reached.

All