EEE 3023 Final exam

Ideally a Beachhead TAM (market segment) Size needs to be "just right". The TAM needs to be large enough to support achieving business financial profitability plus satisfying any required Investor Returns, but not large enough to attract large well-funded competitors. Under this scenario, the most attractive Beachhead TAM size range would be?

$20 to $100 million

"Follow-on TAM" assumptions include: 100,000 potential customers $1,000 unit sale price Customer required to purchase two units per year.

$200 million

Forecast COCA for startup budgetSales Salaries $200,000Marketing brochure $25,000Sales travel $35,000Trade shows $15,000Advertising $25,000

$3,000

Assumptions compute the applicable Beachhead TAM for this Startup. A forecasted 80,000 End Users/Customers exist. This new innovative product price is projected to be $1,000 per Unit. The new innovative product is estimated to last for two years.

$40,000,000

A startup plans to sell a product, via a single upfront unit sale, has a twenty year product life, and absolutely requires no ongoing and/or future maintenance or support services. The product unit sells for $10,000 at an 80% gross profit margin. The best estimate of the customer LTV is _______.

$8,000

The projected aggregate Customer Unit financial or economic Value is $4,000, the forecasted Startup Unit COS is $500, and the targeted Unit Sales Price is $1,000, the Startup Gross Profit Margins is ______ and Customer Value/Benefit ratio multiple is ______.

50%/3X

A prospective customer's financial analyst completed detailed financial analysis of your new product offering in order to quantify its value proposition to there end user employee group. Which of the following financial benefits to cost ratios would represent the best results for your startup?

6X

Based strictly upon the below listed End User/Customer "Benefit/Cost Ratio" (i.e. the customer $ value divided by cost or purchase price or the ROI Multiple within the Unit Value Proposition) for four different Market Segments, which one would be the BEST Beachhead Market Selection?

9.5X

The High-Level Product Spec should normally include which of the following

A "mocked-up visualization" of the proposed Product or Service.

A natural by-product or secondary benefit associated with completing the Next 10 Customer discovery process.

A equality internal sales prospect pipeline list.

Which of the following innovation/creativity techniques predominantly initially starts from the perspective of a market problem/need and therefore launches higher on the "Impact" side?

Aggravations

The persona will predominantly be ______ and possess a ________ overall customer benefit or value to cost ratio.

An early adopter/higher

In order to "test" the identified the key assumptions, ideally ________ test methodology or process that requires some level of definition ______ needs to be designed and repeated several times in order to hopefully validate the key assumption.

An inexpensive/customer action

The Beachhead TAM should be computed using a ______ approach, which is referred to as "counting noises", but then evaluated against a ______ approach, which typically leverages existing related industry reports.

Bottom's up/top down

Consumables, usage based, cost plus, licensing, and subscription are all "generic" example of ______.

Business models

Relative surprising, which of the following statement is false?

Costing data used to compute pricing should be freely available to customer.

Which of the following would most likely not represent a key of Sumption that should be tested within the "customer discovery/validation" methodology?

Determine the best and lowest cost commercial banking relationship

In the Big Sketch Pad which of the following questions does not relate to "impact"?

Do you have any truly distinctive competencies?

Typically with a "Business to Business" (B2B) innovative product or service, the person responsible for making the purchasing decision is not the End User but a Manager or Executive within the business. Within the "Decision Making Unit", this individual would be identified or referred to as the ______.

Economic Buyer

A specific grouping of factors and/or attributes: age, income range, type of occupation, hobbies, geographic location, type of residency, number children, etc.... is normally utilized to support the identifications of _____.

End Users

Which one of the following strategies can be effectively utilized to shorten the overall length of the customers Acquisition process?

Establishing a favorable customer return and warranty policy to reduce the customers perceived risk.

T/F Given the importance of the PERSONA, it should be guarded and treated like a "Trade Secret".

False "Trade Secret".

T/F The Beachhead Market will always be the "largest" Market Segment.

False "largest" Market Segment

T/F The primary goal of the "quantify value proposition" step is to determine the competitive positioning differential relative to all identified major competitors.

False "quantify value proposition"

T/F A Startup is just a "smaller version" of a Large Company.

False "smaller version"

T/F The business CORE strictly equates to the external customer's view of the startup's competitive differentiation or positioning.

False CORE

T/F Within the DMU the economic buyer can never simultaneously be an end user.

False DMU the economic buyer

T/F During the Interview process, Interviews which "invalidate" an innovative idea and/or concept should simply just be ignored or trashed.

False Interview process

T/F The MVBP, which will be sold, must include all product/service features.

False MVBP include all

T/F A longer sales cycle tends to lower the business risk and lower the customer acquisition costs.

False a longer sales cycle

T/F Providing strong customer support after the sale is incredibly improved in order to build customers loyalty and long-term satisfaction, and avoiding all warranty claims is a great illustration of this.

False avoiding all warranty claims is a great illustration of this

T/F The product development plan focus exclusively on creating, developing, and building a commercial grade product/service.

False creating, developing, and building

T/F The high-level spec is a detailed market brochure for the final commercial grade product or service.

False detailed market brochure

T/F The high-level product spec should never include or incorporate pictures.

False high-level product spec

T/F During the interview process ideally only, similar individual prospective customers and/or End Users should Interviewed.

False interview process ideally only

T/F Within the product development plan "the sale transition stages from the follow-on market product/service will always simply repeat or replicated the one for the beachhead market product/service.

False product development plan

T/F The next 10 customer literally will always be the startup's first 10 Customer.

False startup's first 10 Customer.

T/F The identified a key assumption, which are then tested it, should exclusively relate to the technology or product/service.

False technology or product/service

Normally the "benefit or value" achieved from purchasing the product or service must exceed the purchase price. This normally includes both a qualitative evaluation by the economic buyer and/or end-user. This economic justification, especially within B2B, Typically revolves around the new product or service being _____, _______, and/or _______ than other competitor product or services.

Faster/less expensive/increases revenues more

A Market Segment needs to represent a _______ group of End Users/customers that can be reached in a ______ sales process, and share _______ product/service user benefits.

Homogenous/Standardized/similar

The idea Napkin is a "tool or technique" to quickly assess the entrepreneurial value of a new innovative product and/or service offering at a high level. The Idea Napkin contains 5 to 6 Questions equally focused on _______ and ________.

Impact/Feasibility

Which of the following would not contribute to lowering the cost of Customer acquisition (COCA)?

Increase the unit sale price point and illuminate all promotional sale discounts.

The business CORE tends to be _________ focused and should be _________ over time.

Internally/staple

A "key function" on the High-Level Product Spec is improve the equality of feedback and/or input from______.

Interviewees, external vendors, end users

A startup of frequently provides a discount to select ________ customers during the initial or early sales launch timeframe in order to Accelerate to creation of "vocal and/or height profile" customers that will provide valuable testimonials regarding to startup's product/service in order to accelerate sales growth.

Lighthouse

When conducing an interview, which of the following should NOT be done?

Make a PowerPoint Sales presentation.

MVBP stands for______.

Minimum viable business product

While the "key test assumptions" may vary but each start up, they should identify and concentrate on the ________ individual unique assumptions.

Most important

Two required key positive performance metrics or attributes relate to MVBP sales that serve to provide overall business and customer validation?

Multiple and/or repeated customer sales/customer excitement

Which one of the following conceptual category approaches towards innovations or creative "idea generation" is deemed to be the "riskiest"?

New Market Creation

Which are not an input valuable into the computation of the customer lifetime value (LTV)?

Number of average testimonials or referrals per customer

The "Full Life Cycle" spans the complete engagement timeframe from initial product or service awareness through full consumption and disengagement. This "Full Life Cycle" normally is categorized or segmented into three distinctive components for business development purposes. These distinctive generic components are_______, ______, and ______ activities.

Pre-sale/sale/ post sale

Customer Discovery needs to __________ creations of the business infrastructure and full-scale launch of the new business.

Precede

Numerous "Key input" factors should be taken into consideration when designing the business model. Which of the following factors does not need to be factored into designing and/or selecting the business model.

Pricing-volume discount points and percentages.

An advanced technology Startup normally is subject to which of the following major categories of business risks?

Product, Market, Execution.

Which of the following Decision Making Unit (DMU) participants would not be considered as "primary" participant in the typical customer acquisition process.

Purchasing department

When "mapping the customer acquisition process" particular attention needs to be paid to the ______, ______, and ______.

Sales cycles/sales costs/sales obstacles

In order to avoid replicating or repeating a star of product/market risk profile, the strategic path towards the "follow-on TAM should avoid...?

Sell a new product to a new market or a customers.

Describe which "sales process stage": Concentrate on creating customer awareness and demand. Building customer testimonials. Tends to be very "hands-on" or even "missionary" in nature. Business development concentrated.

Short

Given that every Startup dust cross or navigate the "Valley of death", which of the following is the most advantageous statement or action in order to be successfully cross it?

Shorten the timeline or length of time to generate revenues and achieve profitability thru protection "Customer Discovery".

The ultimate collective objective of "identifying and testing" are various key assumptions is to figuratively ________.

Take the startup concepts on the "test driven" before launching the business

Conceptually the goal of the "lean launch" approach towards either a Startup or New Product Development initiative within an existing business is to identify and confirm _______ before activity launching the formal business initiative.

The "market/product fit"

In order to compute the Customer Value, especially within a Business to Business (B2B) market segment, which of the following input factors should NOT be Consider and/or potentially factored into quantifying this Value?

The Startup's unit cost (i.e. COGS or COS) to produce and/or create the innovative unit product/service for sale.

Which of the following does not serve to validate That "the dogs will eat the dog food" for the disciplined entrepreneurship?

The customer agrees to beta test the MVBP

Numerous "Influencing Factors" can qualitatively impact, either upwardly or downwardly, the acceptability of a specific Beachhead TAM size. Which of the following "Influencing Factors" would justify or support accepting a "lower" than normal aggregate TAM size?

The overall Beachhead Market is expected to grow 60% per year.

Designing or mapping the sale process must take into account various fundamental business characteristics or factors associated with a startup. Which of the generic factors would not support or be conducive to create a "direct sales" approach towards the beachhead market?

The product unit price is extremely low in reach customers purchases very frequently.

Which of the following start up "actions" would likely increase the customers LTV?

Through improve customer service is able to significantly improve its overall customer retention rate associated with a recurrent products/service.

Which of the following best represents the formula or approach to estimate the customer cost of acquisition (COCA)?

Total marketing and sale expenses/number of new customers

T/F The developed "Persona" should fall within the range of the prepared "End User Profile".

True "End User Profile".

T/F The "Follow-on Market" initial developmental items can be incorporated into the overall product development plan and typically reside within the later stages.

True "Follow-on Market" initial developmental

T/F Focusing on selling an existing customer a replacement product or an incremental product feature and/or service, within the full life cycle, would be classified as a "Post Sale Activity".

True "Post Sale Activity"

T/F When designing an "experiment" to test a key assumption within a start up the time required to conduct the experiment is a non-factor and should simply be ignored..

True "experiment" to test

T/F Customer purchase and the subsequent realization of value/benefits represents a key "green light" to actual "launch the business ".

True "green light"

T/F Startup targeting prospective customers which exhibit BOTH a high level of "pain and awareness" tend to correlate to a higher "Impact" rating in the Idea Napkin and Big Sketch Pad.

True "pain and awareness"

T/F The product development plan can still in the include periodic "pivots" but there needs to be far fewer than during the early customer discovery phases.

True "pivots"

T/F Normally a "shorter" sales cycle is helpful or beneficial characteristic for a startup.

True "shorter" sales cycle

T/F The "influencer", within the Decision Making Unit (DMU) participants is the only participant that does not have to be a real person

True Decision Making Unit (DMU) real person

T/F During the first steps within the Disciplined Entrepreneurship approach, the Founders should identity a minimum of four Market Segments.

True Disciplined Entrepreneurship approach,

T/F Normally the computed TAM dollar amount is less than the historical reported dollar amount for the most comparable competitive industry or market reports.

True TAM dollar amount

T/F Competing the sale, initial installation/training (if required), and early customer feedback regarding product/service usage-performance are all key components of the "sales activities" within the full life cycle use analysis.

True customer feedback

T/F Typically, the entrepreneurial path to identifying and creating a "market/product fit" resembles a journey through multiple learning experiences and pivots.

True entrepreneurial path

T/F If a company can increase its customer loyalty and retention rates the customer LTV should also increase.

True increase its customer loyalty and retention

T/F The Competitor Position matrix evaluation utilizes the targeted beachhead end user's to most important priorities as the primary basis of comparison and thus insurers a market driven comparative focus.

True matrix evaluation utilizes

T/F The next 10 customer steps focuses on the evaluating the viability of the beachhead market by testing the customers volume, examining the customers consistency around the persona, and the perceived ability to economically reach these customers through repeatable sales processes.

True next 10 customer steps focuses

T/F The CORE is the only predominantly inwardly or internally focused step relative to the Startup business whereas all others are hourly or external focused on the prospective customer.

True prospective customer

T/F The prospective customer's value/benefit must be sufficient to compensate them for the risk of purchasing an innovative new Product or Service.

True prospective customer's value/benefit

T/F Fundamentally within the disciplined entrepreneurship, steps 1-19 are predominantly primary research driven by prospective customer insights obtained through interviews and then steps 20 through 24 quickly translate transitions into a more experimentation approach requiring actual customers actions.

True steps 1-24 disciplined entrepreneurship

T/F The MVBP effectively represents the first integrated tastings of all the combined "key assumptions".

True testing of all the combined

Which majority of startups turn to adopt a version of the ______ Business model because this model tends to maximize the customer's cash payment at the time of transaction, thereby directly accelerating the startup's path to profitability.

Upfront plus

The preferred strategic pricing approach or technique for an early stage advanced technology start up that attempts to reasonably capture the maximum potential probability for the start up while still providing an adequate product/service benefit/value to motivate and compensate the customer for the risk of acquiring a new product/service from and early stage company.

Value add

Which of the following DMU conditions relative to the specified corresponding business implication or impact is not true?

When the end-user and economic buyer are the same person the sales cycle tends to double in time or length.

Ideally the "testing" methodology/technique needs to ________ each key assumption being evaluated or tested.

isolate

The MVBP criteria requires that the customer _________, __________, and __________.

purchase it/ use and talk about it/value it.

The 24 steps of the discipline entrepreneurship are a collection of steps designed to ___________, with normally requires __________, And relies heavily on interviews and even Business experimentation.

validate a "market/product fit"/ pivots modifications.

The product development plan attempts to________.

All of above.

The most frequent "over-looked" competitor when competing the competitive positioning analysis.

Customer "status quo"

T/F An "Influencer" will always be a "real person".

False "Influencer"

Which of the following reflects the least approach towards conducting interviews?

Include a breadth and diversity of prospective customers within the interview process.

The Beachhead "TAM" stands for the Beachhead _______.

Total Addressable Market

T/F The first five steps of the Disciplined Entrepreneurship focuses on the Customer.

True Disciplined Entrepreneurship focuses