BUS 310 Final
Which of the following are examples of a "need?"
1. Entertainment 2. Communication 3. Transportation and mobility 4. Health and well-being
1. Startups are about 2. Big companies are about
1. Search 2. Execution
When was the Dutch East India Co., the first "modern corporation" developed?
1602
Rank the following channels based on complexity by matching with 1 being the least complex, 4 the most. System Integrator Dealer Direct sales Web
4 2 3 1
According to Blank, what percentage of software features are "unwanted by customers"?
85-95%
What is a traffic partner? Select one: a. A partner who makes sure that your packaging and shipping are efficient b. The company that manages your importing paperwork, customs, etc. c. The company that manages your web site for you. d. A company that drives online customers to affiliate sites
A company that drives online customers to affiliate sites.
What is meant by product-channel fit? Select one: a. A manufactured product fits well into the shipping packaging for optimized profit b. A company uses the best possible distribution channel to maximize profit and reach customers c. A company uses the fastest channel to reach customers d. A company designs a well run, complex channel to distribute their product
A company uses the best possible distribution channel to maximize profit and reach customers
Which of the following is NOT an example of a strategic partnership? Select one: a. A deal to buy computers at a significant discount when you are starting an accounting firm. b. An arrangement for your product to manufactured and assembled by a firm in China c. A conference and show sponsored by you and three of your biggest competitors to create awareness of the new market you are all creating. d. A deal with a consulting firm to introduce you to their customers and implement your product.
A deal to buy computers at a significant discount when you are starting an accounting firm.
If you have a multi-sided market, you must have which of the following? Select one: a. A different business plan for each market segment b. A different value proposition and revenue model for each customer segment c. A strategic alliance with a influencer in each market d. All of the above e. None of the above
A different value proposition and revenue model for each customer segment
Which of the following is an example of a product that creates customer's gains? Select one: a. A better cast to help broken legs heal b. A drug to relieve symptoms of asthma c. A dishwasher that takes the dishes out and puts them on the shelf d. A system that delivers cheaper textbooks
A dishwasher that takes the dishes out and puts them on the shelf
What is the difference between a pivot and an iteration? Select one: a. Pivot is when just the value proposition changes. Iteration is when the revenue model changes b. A pivot is a substantive change to the business model. Iteration is a minor change. c. A pivot is minor, an iteration is a major change to feature se d. A pivot affects your profit, iteration your revenue e. Any one of the above
A pivot is a substantive change to the business model. Iteration is a minor change.
If you are creating a new market, do you need to do customer development? Select one: a. Absolutely b. Depends on if it is a tech insight company or a market insight company c. It depends on the situation and kind of product. d. No. There is no way to do customer development in a new market. Just ask Steve Jobs.
Absolutely
How do you determine your best hypotheses about how big your TAM, SAM and target markets are? Select one: a. Research in online databases b. Google searches for information c. Make some estimates based upon discussions with some experts d. Get out of the building and talk to customers e. All of the above f. Pick just one of the first four options and concentrate on it alone.
All of the above
Which of the following are examples of virtual channels? Select one: a. The cloud b. A website c. A mobile app d. All of the above
All of the above
Which of the following companies use a Web-based distribution channel? Select one: a. Amazon b. Zynga c. Groupon d. All of the above
All of the above
Which of the following is a common mistake people make regarding their MVP? Select one: a. It's just a feature set of someone else's product b. It's "nice to have" instead of "got to have" c. Not enough people care about it d. All of the above e. None of the above
All of the above
Why is having a customer archetype important? Select one: a. To determine how to reach customers b. To know who to talk to during customer development c. To help define the MVP d. All of the above e. To guide hypothesis formation during product development f. None of the above
All of the above
If you don't find a product-market fit, what elements of your business model canvas can you change? Select one: a. Value proposition and customer segment b. Revenue and resources c. Key partners and activities d. Any or all
Any or all
According to Blank, what is the best company in the 21st Century that turned a problem into a need? Select one: a. Samsung b. Apple c. Twitter d. Amazon
Apple
What, according to Blank, is the "greatest strategic alliance ever"? Select one: a. Google and YouTube b. Facebook and Whatsapp c. Apple and the record labels d. GE and Westinghouse e. Taco Bell and Fritos
Apple and the record labels
What, according to Blank, is the "worst business decision of the 21st Century"? Select one: a. Apple partnering with record labels b. Boeing outsourcing the 787 to partners around the world c. Ford building F150s in China d. Microsoft creating the Xbox
Boeing outsourcing the 787 to partners around the world
How should you rank "Pain Killers"? Select one: a. By frequency and intensity b. By Maslow's hierarchy of need c. On a scale of one to ten d. By opportunities for profit
By frequency and intensity
What is a "unit of desire"? Select one: a. How many units of an item you want to buy b. Something you really, really have to have c. Common need shared by a group of customers d. The subjective price a customer places on solving a problem
Common need shared by a group of customers
Which, of the following, is the most important activity for a startup at the beginning?
Customer development
Which comes first, Customer Validation or Customer Discovery?
Customer discovery
According to Blank, "...you need to see people's eyes _________ when they see and like your product." Select one: a. Blink b. Dilate c. Glaze over d. Cry
Dilate
What is the goal of the Customer Segment section of your Business Model Canvas? Select one: a. Discover customer archetype b. Figure out if you need to develop a physical or virtual channel c. Develop MVP d. Identify total available market
Discover customer archetype
What is the goal of the Value Proposition segment of the Business Model Canvas? Select one: a. Set your pricing b. Discover how large the market opportunity is c. Find your first customers d. Discover what needs or problems your MVP must address
Discover what needs or problems your MVP must address
Which is the proper order of the four phases of customer development? Select one: a. Discovery, validation, creation, building a company b. Customer validation, customer creation, building a company, customer discovery c. Building a company, discovery, creation, validation d. Creation, validation, discovery, building a company
Discovery, validation, creation, building a company
According to Blank, when you are in a startup, you aren't selling to mainstream customers, but instead: Select one: a. Alpha consumers b. Secondary markets c. Earlyvangelists d. Niche markets
Earlyvangelists
According to Blank, there are four types of markets for startups. They are... Select one: a. Foreign, domestic, black-market and underground b. Web, mobile, cloud and infrastructure c. E-commerce, retail, business-to business and services d. Existing, re-segmented, new and clone
Existing, re-segmented, new and clone
T/F A company will be more successful if their continued cost of servicing a customer is high and their cost of customer acquisition is also high.
False
T/F According to Blank, customers care the most about how cool your technology is.
False
T/F According to Blank, the TAM (total available market) is much larger for a problem than a need
False
T/F According to Geoffrey Moore, author of "Crossing the Chasm", the chasm is widest and most dangerous in an existing market
False
T/F All changes create opportunity
False
T/F It is important to create a five-year business plan as the first thing to do when you have an idea for a company.
False
T/F Steve Blank thinks it's important for marketers to get out of the building and talk to customers, but founders need to stay busy in the office setting the vision and leading the company.
False
T/F The more you rely upon recurring revenue, the lower your customer service expenses will be.
False
T/F Your lawyer is always considered a strategic partner.
False
According to Blank, how does a startup turn their guesses into fact? Select one: a. Get out of the building and talk to potential customer b. Study other companies c. Hire a bunch of smart MBAs to assess the company d. Conduct extensive market analysis
Get out of the building and talk to potential customer
Which of these companies has a multi-sided market Select one: a. Google b. Tesla c. Amazon d. Apple
What are the three most important parts of customer relationships? Select one: a. Leverage, exploit and demand b. How to get, keep and grow c. Service, pricing and marketing d. Sales, returns and rebates
How to get, keep and grow
What is the problem with "Waterfall Engineering"?
It assumes from day one that you know what the customer wants
"Intel Inside" is an example of which of the following? Select one: a. Strategic alliance b. Brand acquisition c. Co-opetition d. Joint business development
Joint business development
Is Twitter an example of a tech insight company or a market insight company? Select one: a. Market insight b. Tech insight
Market insight
What does OEM stand for?
Original Equipment Manufacturer
What name do we give to the successful matching of a value proposition and a customer segment? Select one: a. Business development b. Product-market fit c. Strategic marketing discovery d. Customer development
Product-market fit
Over the long run, how does a company measure success?
Profits
What is the purpose of a start-up?
Search for a repeatable and scalable business model
Which of the following is an example of an "earned" way to get customers and create demand? Select one: a. Email and direct mail b. Trade shows c. Public relations d. Advertising e. Social media
Social media
Which of the following is an example of a re-segmented market? Select one: a. Google b. Yelp c. Southwest Airlines d. Snapchat e. None of the above
Southwest Airlines
Which of the following is an example of a partnership risk? Select one: a. Startups make quick decisions; partnerships can slow you down b. A large established partner may try to acquire your startup c. Partners may give you an unfair advantage and cause your competition to react. d. Partnerships are short term; company building is long term e. All of the above
Startups make quick decisions; partnerships can slow you down
When planning an initial product, what is the most important? Select one: a. Matching competitor features b. Sufficient features to match all the customer's needs c. Sufficient features to solve a key focused problem for a known group of customers d. None of the above
Sufficient features to solve a key focused problem for a known group of customers
What metaphor does Blank use to describe the difference between TAM (total available market) and SAM (served available market)? Select one: a. TAM is the whole banana. SAM is the banana tree b. TAM is a great sandwich. SAM is a steak dinner c. TAM is the ocean. SAM is a lake d. TAM is the whole pie. SAM is a slice of that pie
TAM is the whole pie. SAM is a slice of that pie
Before you start doing customer validation, what do you have to believe? Select one: a. That you have a product-market fit b. That you've filled out your Business Model Canvas in detail c. That your team has created a product that they think will work d. That you can raise money from investors
That you have a product-market fit
What does "economies of scale" mean? Select one: a. The rule that larger economies have greater sales opportunities b. The cost advantage that arises with increased output of a product c. People pay more for better products d. The increase in profit for larger consumer items
The cost advantage that arises with increased output of a product
What is the "Valley of Death"? Select one: a. When a startup has to wait a long time to get venture capital funds b. When a startup discovers it has strong competitors c. When a company's market share starts to erode d. The painful years between early market and mainstream market adoption
The painful years between early market and mainstream market adoption
Why do most startups fail?
They have a lack of customers
What is a business model?
To describe how a company creates value while delivering products/services to customers
Why is it is important to create a customer archetype? Select one: a. To know which magazines to run ads in b. To be able to sterotype your customers c. To develop a detailed sales and marketing plan d. To develop a detailed hypothesis about who your customers are and how they behave
To develop a detailed hypothesis about who your customers are and how they behave
What is the primary function of a Business Model Canvas?
To serve as a scorecard in the search for a business plan
What company has been using Agile Engineering Process for years?
Toyota
T/F According to Blank, if you are not solving a top 5 problem for your customers, you are in the wrong customer segment.
True
T/F According to Blank, most partnerships tend to fail
True
T/F One drawback to creating a partnership is that it can delay how fast you get your product or service to market.
True
T/F Typically, a company makes higher profits when conducting direct sales as opposed to selling through stores.
True
What is a viral loop? Select one: a. The result of earned and paid media campaign b. When a customer buys or uses a product and raves about it to all their friends, helping create accelerated demand c. When a company becomes huge and their brand becomes ubiquitous d. When a vigorous social media campaign goes viral and has tons of followers
When a customer buys or uses a product and raves about it to all their friends, helping create accelerated demand
According to Blank, you know you have a startup worth pursuing when: Select one: a. When you get someone who wants to invest in your company b. When people literally start trying to shove money at you or can't stop using your product/service c. When your engineering team comes up with a cool new product that people seem to think is great d. Any of the above
When people literally start trying to shove money at you or can't stop using your product/service
The "type" of market a startup enters determines which of the following: Select one: a. market size b. cost of entry c. how to launch d. competitive barriers e. all of the above f. none of the above Feedback
all of the above
On day one, startups start with a series of ___________ about their customer segment Select one: a. hypotheses b. details c. market analyses d. photographs
hypotheses
