MKTG 445 Exam

You believe you can reach a market share of three percent in a market that is estimated to be $2,000,000 next year. What revenue do you project?

0 or 60000

You have talked to 100 potential customers of your new product, and these people spend an average of $150 per year on a similar product. Each consumer would also indicate how likely they were to purchase your product. Responses were:Very unlikely: 5Unlikely: 15Neither unlikely nor likely: 50Likely: 25Very likely: 5 If 25,000 families live in trade area, how large is the extent of your opportunity, according to the voice-of-consumer approach?

1125000

Imagine you use three segmentation variables (A, B and C). Imagine further that variable A has two levels, variable B has three and variable C has two. Using a combinatorical approach, how many segments emerge?

12

For startups, the marketing budget typically is between _____ and ____ % of forecast sales.

12, 20

Imagine you use two segmentation variables (A and B). Imagine further that variable A has five levels and variable B has three. Using a combinatorical approach, how many segments emerge?

15

Applying the voice-of-consumer approach, an entrepreneur has provided 100 consumers with a short product description and asked them how likely it was that they would buy from her business. The replies were as follows: The consumers spend an average of $100 on a similar product and 100,000 potential customers live in the trade area. What is the projected revenue?

2,500,000

You have talked to 150 potential customers of your new product, and these people spend an average of $60 per year on a similar product. Each consumer would also indicate how likely they were to purchase your product. Responses were:Very unlikely: 30Unlikely: 10Neither unlikely nor likely: 20Likely: 55Very likely: 35 If 25,000 families live in trade area, how large is the extent of your opportunity, according to the voice-of-consumer approach?

900,000

When you collect primary data to better understand your segments, what information can be considered essential (vs. nice to have)?

A measure of your segmentation variable(s)

An entrepreneurial opportunity could stem from (check all answers that apply): An existing product for an existing market Correct! A new product for an existing market Correct! A new market Correct! A new product for a new market

A new product for an existing market Correct! A new market Correct! A new product for a new market

Which is not a growth hacking strategy? Correct! Ambush marketing Advertising Product marketing Content marketing

Ambush marketing

What is growth hacking? A term describing the growth of the umbrella industry. Correct! An umbrella term describing strategies focused on growth. An umbrella term describing strategies to limit non-organic growth. A growth strategy where you hack your competitors' IT.

An umbrella term describing strategies focused on growth.

Which strategies can entrepreneurs use to disrupt an inertia mindset? (Check all that apply.) Correct! Arouse new consumption goals. Improve the objective quality of the product. Correct! Create fear-of-missing-out. Correct! Offer guarantees. Correct! Stimulate variety seeking.

Arouse new consumption goals. Correct! Create fear-of-missing-out. Correct! Offer guarantees. Correct!Stimulate variety seeking.

The VIA (Venture Idea Assessment) approach:

Asks assessors to state their confidence with four statements about the idea's general attractiveness.

Of the below, which phase is part of the A3R3 funnel but not included in the pirate funnel?

Awareness

Which phases constitute the A3R3 Funnel? Awareness, Recall, Activation, Reinforcement, Arousal, Repurchase Correct! Awareness, Acquisition, Activation, Retention, Revenue, Referral Awareness, Activation, Action, Retention, Revenue, Referral Awareness Awareness, Acquisition, Action, Retention, Reselling, Referral

Awareness, Acquisition, Activation, Retention, Revenue, Referral

When you determine market segments in an empirical way based on consumer responses in self-report surveys, the number of segments is typically smaller than that derived with the combinatorical approach. The reason is that some of the theoretical segments are not practically relevant. Which statistical analysis is typically used to determine the segments?

Cluster analysis

From the viewpoint of the consumer, new products can be classified depending on how much behavioral change or new learning is required. How are the three classes called? Radical and Breakthrough Innovations New Product for Existing Market; Existing Product into New Market; New Product for Emerging Market Correct! Continuous; Dynamically Continuous; Discountinuous Innovations Strategically Continuous; Continued Learning; Disconnected Innovations

Continuous; Dynamically Continuous; Discountinuous Innovations

The McMullen-Shepherd model discusses two stages of entrepreneurial action. Which of the following statements are correct? C. Stage 1 is determining whether an opportunity exists for oneself. D. Stage 1 often results in realization that an opportunity is not something for oneself. F. Stage 2 is about the importance of knowledge, motivation, and investor relations. Correct! E. Stage 1 is the realization an opportunity exists for someone.

E. Stage 1 is the realization an opportunity exists for someone.

The goal of segmentation is to reduce uncertainty among consumers that comes with a new brand and product.

F

Entrepreneurial marketing is challenging because, among other things, the entrepreneur must manage existing channels of distribution.

False

If they have the choice, entrepreneurs should always opt for a technology orientation.

False

Which of the following is true of focus group discussions?

Focus group discussions are typically lead by a moderator, who should provide unbiased questions to the group to guide their discussion.

According to the text, what are signs of a bad opportunity?

History repeats itself Entrepreneur acts out of desperation Correct! Big talk but little action

Marketing strategy and action decisions answer the question:

How do we get there?

Typically, which resources are not scarce when entrepreneurs form a new venture?Personnel Time Correct! Ideas Money

Ideas

Which of the following statements are correct?

If a segementation variable level represents a large number of consumers (such as 50% or more of the population), it is advisable to add more levels. If a segementation variable level represents a small number of consumers (such as 5% or less of the population) that are unlikely to purchase your product, it is advisable to merge this level with another appropriate level.

Please indicate which is not a criterion for selecting target segments:

Lifestyle

What are signs that you may need to choose better segmentation variables?

Most segments are rather unattractive. Correct Answer Only one or two segments are reasonably attractive. Correct! You can declare the most attractive segment within seconds.

Which tool can be used to utilize consumer perceptions of product categories and brands within that category for positioning purposes?

Perceptual mapping

To draw a perceptual map, information is needed on:

Purchase criteria deemed important by consumers. Correct! What an "ideal" brand would offer. Correct! Consumer ratings of existing brands on purchase-relevant criteria.

Indicate which combination of purchase criteria is used in most basic perceptual maps:

Quality & Price

What is true about discontinuous innovations? Require some relearning Correct! Require new learning Require no behavioral change Can face reduced acceptance

Require new learning

Marketing goals should be:

S.M.A.R.T.

The uniqueness of a product can be based on different things. Which is not one them? Uniqueness is in the consumer concept Correct! Uniqueness is in the sales price Uniqueness is in the product attributes Uniqueness is in the product package

Sale Price

Disney+ identifies two segments - who should be in segment 1 and 2?

Segment 1: Jade & Damian; segment 2: Nancy

Which four criteria do market segmentation variables fall into?

Socio-demographic, Geographic, Psychographic, Behavioral

Which of the following is not a phase of the overarching marketing process? Understand the marketplace and consumer wants Engage customers, build profitable relationships, and create customer delight Correct!Sorry, you can't trick me. All of the possible answer choices are phases of the overarching marketing process. Construct an integrated marketing program that delivers superior value Capture value from customers to create profits and customer equity Design a customer value-driven marketing strategy

Sorry, you can't trick me. All of the possible answer choices are phases of the overarching marketing process.

List the four entrepreneurial marketing priorities: (Check all that apply.) Sell existing products to existing key customers Correct! Superior customer experience Manage existing distribution methods Correct! New product development Correct! Awareness generation Brand management Correct! Brand building

Superior customer experience New product development Awareness generation Brand building

A smart way to use the VIA approach is to assess more than one idea by more than one person and compare the scores. This way, the entrepreneurial team can pick the best option instead of stopping too early with a mediocre idea.

T

Primary data is of primary importance to entrepreneurs as it can be precisely tailored to their needs and requirements.

T

Which of the following statements is correct?

Targeting is the process of evaluating each market segment's attractiveness & selecting one or more segments to enter

Which of the below statements are correct? Check all that apply. Correct! The entire industry benefits from R&D spendings of a few companies in that industry. Innovative industries perform worse than non-innovative industries. Correct! A single company may not benefit financially from large R&D spending. We have absolutely no idea whether or not it pays off to spend large sums on R&D. Big innovators gain the most from R&D spending in an industry.

The entire industry benefits from R&D spendings of a few companies in that industry. A single company may not benefit financially from large R&D spending.

The VIA (Venture Idea Assessment) approach is concerned with:

The first stage of the McMullen-Shepherd model (third-person opportunity).

Consumer insights provide the foundation for designing a customer value-driven marketing strategy.

True

Despite sharing many similarities, problem inventory analysis is easier for idea generation than focus groups because it is easier to relate known products to suggested problems.

True

Entrepreneurial marketing is challenging because, among other things, the entrepreneur must establish initial price points.

True

Entrepreneurial marketing is challenging because, among other things, the entrepreneur must obtain their "first customer."

True

For the group project, you should launch a survey that helps you generate consumer insights as a basis for making marketing decisions that are backed by data.

True

Forming opportunity beliefs often requires creative mental leaps based on superficial similarities and structural similarities between the source (such as the market) and the destination (such as the technology).

True

Imitation may not be advisable if the first mover is seen as a "founder" as it gives the first mover a clear advantage.

True

Marketing research can be used to examine if consumers accept the product but also what is the most appropriate distribution strategy or what price should be charged.

True

While marketing is part of business plans, a marketing plan is also meant to stand alone.

True

Which of the following is not a phase of the overarching marketing process?Design a customer value-driven marketing strategy You Answered Understand the marketplace and consumer wants Correct Answer Sorry, you can't trick me. All of the possible answer choices are phases of the overarching marketing process. Construct an integrated marketing program that delivers superior value Capture value from customers to create profits and customer equity Engage customers, build profitable relationships, and create customer delight

Understand the marketplace and consumer wants

When you combine two segmentation variables, how many segments will result?

You multiply the number of levels of each segmentation variable.

Pirate Funnel List its elements in chronological order.

Your Answer: 1. Accusation 2. Activation 3. Retention 4. Referral 5. Revenue

When you combine all levels of all segmentation variables to determine market segments, you use _______________.

a combinatorical approach

Which of the following contents do not belong into an entrepreneurial marketing plan? Customer experience design Business growth You Answered Marketing goals STP (Segmentation, Targeting, Positioning) Executive summary Situation analysis

all belong

Ideally, activities that are rewarded should __________ __________ for the business. maximize costs minimize costs Correct! create value be new

create value

There are four segmentation _________: socio-demographic, geographic, psychographic and behavioral.

criteria

When prior consumption behaviors beget further consumption behaviors of the same kind, we speak of: customer engagement Correct! customer inertia variety seeking marketing myopia

customer inertia

The overall purpose of market segmentation and targeting is to answer the question of "who to serve," which at its core:

enables the marketer to effectively and efficiently use resources by developing separate marketing mixes for distinct groups of buyers who have different needs, characteristics or behaviors.

A company that sells personal care products sends a trained observer to watch potential buyers in their homes, to monitor their morning and evening personal care routines. This is an example of ________ research.

experimental

A "less for much less" positioning statement is undesirable for entrepreneurs.

f

A "more for more" statement is more desirable than a "more for less" statement.

f

A meaningful segmentation variable is one that is easily observed. Examples include age, gender and other socio-demographic variables.

f

Because demographics such as age and gender are easy to identify, both can be considered the most useful segmentation variables.

f

If the outcome of a scoring approach to target segment selection differs from what the entrepreneurial team originally believed would be the most attractive segment, there was probably something wrong with the model, and the team should discard the score.

f

Positioning is concerned with the position a product occupies on a retail shelf.

f

The goal of segmentation in the STP process is to select a target segment.

f

When demographic, psychographic, and other variables ares used to describe market segments, statistical analyses are of little value.

f

Brainstorming is a written form of brainwriting.

false

Primary data is of primary importance to entrepreneurs as it exists already and is thus readily available.

false

The two main objectives of an entrepreneurial marketing plan are (1) to establish how the entrepreneur will compete and operate in the marketplace and (2) how the entrepreneur can secure funding.

false

If you are unsure about the exact market share estimate, you can modify the typical opportunity assessment approach and create multiple ______________.

market share scenarios

Cresta, a Swiss manufacturer of electric bikes, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Cresta offers a(n) ________ value proposition.

more-for-more

Entrepreneurial opportunities are those situations in which ______, ______, or ______ can be introduced and sold at greater than their cost of production. Please check all that apply. bricolage Correct! new goods Correct! organizing methods Correct! raw materials

new goods Correct! organizing methods Correct! raw materials

Which is not an imitation strategy?Me too Sorry, you can't trick me. All of the possible answer choices are imitation strategies. Correct! Not me

not me

Understanding consumers and competitors is important for:

positioning

In the article, it is mentioned that gamified elements should be inherently _______________. difficult fast paced individualistic Correct! social

social

'Attitude toward the environment' and 'lifestyle' are two examples of segmentation variables that classify as psychographic segmentation criteria.

t

'Usage rate' and 'engagement' are two examples of segmentation variables that classify as behavioral segmentation criteria.

t

A "less [quality] for more [price]" positioning statement is undesirable for entrepreneurs.

t

A homogenous market segments means that consumers in this group have similar wants, characteristics or behaviors.

t

A meaningful segmentation variable is one that allows identification of groups of consumers that require separate marketing mixes. Examples include attitudes, usage rater and other psychographic or behavioral variables.

t

Because you can always merge levels and thereby reduce the number of levels you work with, it is advisable to start with a more nuanced approach that considers more levels. This is particularly important if you send out surveys to learn about how frequently the different levels exist.

t

Combine Segmentation Variables and Their Levels.

t

For positioning based on the product as a whole (quality and price in relation to competitor products' quality and price) or specific attributes, a technique called perceptual mapping is often used.

t

The goal of segmentation in the STP process is to divide a market into distinct groups of buyers who might require separate marketing mixes.

t

The identification of meaningful segments allows a smarter investment of marketing resources. For example, some segments do not need to be targeted, in other segments it may be particularly hard to achieve the goals, rendering marketing efforts ineffective or at least very inefficient. For other segments, different conclusions regarding the marketing mix can be drawn such as focusing on the sales price versus focusing on the communication message.

t

To improve segmentation outcomes, one can combine two or more variables.

t

Using a systematic approach to market segmentation reduces the risk of neglecting segments and making wrong inferences.

t

Using primary or secondary data can be used to better describe segments and lay the foundation for marketing decisions.

t

When a marketer attempts at describing market segments based on survey data, it is desirable that the sample is representative of the larger population of customers (e.g., US citizens).

t

When you determine the optimal number of levels you need to balance specificity and manageability.

t

While it may sometimes appear as if demographic variables are meaningful segmentation variables, the true reasons for differences in consumer behavior are more likely psychographic or behavioral in nature.

t

While segmentation criteria help to organize all the various segmentation variables that exist, the segmentation variables themselves are the central concepts in segmentation. Choosing the most meaningful segmentation variable(s) is the most important and challenging task in segmentation.

t

Wang and their entrepreneurial team are considering which segment they will target for their marketing mix efforts as a new, local coffee company. One team member advocates that targeting commuters is the best option, as the company's production and staff are tailored toward quickly and efficiently brewing coffee for their customers - a need which is experienced by the commuter segment. Among the several decision criteria used for selecting target segments, the one described would relate to the _________________.

the company's competitive position toward the target segment

Ultimately, market segments represent _____________.

the levels of segmentation variables

Which of the following questions can be impossible to answer for new ventures and thus do not need to go into an entrepreneurial marketing plan?

where have we been