Com 3930 test 2 ch.5
The key skills for managing growth are understanding and listening to the customer and building a visible and enduring brand. The former is important in understanding consumer buying behavior and expectations and will help clarify the best way to communicate with customers and influence their actions. The latter is important because it affects the customers purchase behaviors towards the brand including how much they are willing to pay for a product.
10) What are the key skills for managing growth and why?
A
10) Which of the following most directly affects revenue, profits, and how consumers perceive a product's position in the market? A. Pricing B. Promotion C. Place D. Product E. None of the above
D
11) The selection of a company's key communication tools is determined by: A. Cost B. Target market C. Timing D. All of the above E. None of the above
B
12) What type of strategy aims to proactively move the volume of products through the channel using tools such as trade promotions, trade shows, and personal selling to distributors? A. Pull strategy B. Push strategy C. Penetration pricing D. Product differentiation E. None of the above
E
13) Which of the following is an approach to Guerrilla Marketing? A. Identifying challenges and developing creative solutions. B. Using the "inherent drama" in your offerings to your benefit. C. Capturing people's attention by targeting the local news media with a public, promotional event. D. Creating an entertaining digital video that can be viewed and shared online. E. All of the above
A
14) Entrepreneurs must obtain information that will allow them to understand consumer buying behavior and customer expectations related to: A. Product design, pricing, and distribution B. Product design, pricing, or distribution C. Product design or pricing D. Pricing and distribution E. Pricing or distribution
B
15) ______ is the customer's ability to recognize and recall the brand. A. Technique awareness B. Brand awareness C. Value awareness D. All of the above E. None of the above
A
16) Brand awareness is created through a customer's exposure to what? A. Advertising or publicity B. Social media C. Education D. Promotion E. Price reductions
A
17) ______ are key marketing dimensions that set the strategic framework. A. Segmentation, targeting, and positioning B. Price, Promotion and Product C. Global Brand Awareness D. Price seeting E. None of the choices above
B
18) Price discrimination happens when a company charges different prices to different ____ segments. A. product B. customer C. risk D. A or B E. none of the above
E
19) Why must a company continue new product development even after launching a successful product into the market? A. To gain an advertising advantage B. Competition C. To keep the firm profitable D. To ensure maturity in the market E. Both B & C
A
2) It is difficult for small companies to save money on "media buys" because ___. A. they do not have a large enough advertising expenditure. B. their marketing is not creative enough to generate viral exposure. C. their product mix is too diverse. D. they are the first in a new market. E. None of the above.
Marketing is a vital process for entrepreneurs, because it builds awareness of your product and your company. Without brand awareness, even customers that would benefit from your service and would want to purchase your product will not. • Marketing builds brand equity and imprints an image of your products in the minds of customers.
2) Why is marketing critical for entrepreneurs?
D
20) The attractiveness of a market segment is related to its size, growth rate, and ___. A. cost B. price C. competitive advantage D. potential profit E. none of the above
A
21) While segmentation profiles a company's customers, what does positioning outline? A. Customer perceptions B. Cost C. Operational advantage D. Revenue E. None of the above
E
22) If a company can cultivate brand equity, what type of price can it expect loyal customers to pay? A. A fair price B. A minimum price C. A premium price D. A discounted price E. All of the above
C
23) All entrepreneurs face the need for brand building, which is ___. A. the task of building brand awareness. B. the task of building brand equity. C. the dual task of building brand awareness and building brand equity. D. building either brand awareness, or brand equity. E. the task of building other issues.
E
3) Entrepreneurs market to which of the following audiences? A. Investors B. Business partners C. Customers D. Employees E. All of the above
The "4 P's" of marketing are: product, price, place, and promotion. • The process of acquiring and retaining customers is at the core of marketing. Entrepreneurs must create the offer (design the product and set the price), take the offer to the market (place and distribution), and, at the same time, tell the market about the offer (promotion).
3) What are the "4 P's" of marketing, and which activities define them?
D
4) Positioning describes a company's offering relative to the product attributes that are most important to whom? A. Investors B. Shareholders C. Competitors D. Customers E. Marketers
Entrepreneurial marketing is different from marketing done by established companies for a number of reasons: • First, entrepreneurial companies typically have limited resources - both financial limitations and time constraints. • Entrepreneurs have little or no market share and a confined geographic market. As a result, they enjoy few economies of scale. • Not only is market information limited, but decision-making can be muddled by strong, personal biases and beliefs. Early-stage companies often stumble in their marketing because of a product focus that is excessively narrow.
4) Why is the marketing done by entrepreneurs different from marketing done by established companies?
C
5) Studies show that accurate pre-venture market analysis can reduce the failure rates of new ventures by what percent? A. 10% B. 30% C. 60% D. 80% E. 95%
If possible approach perceived value pricing with pre-market price testing, estimating the number of units customers will purchase at different price points also the selling effort for a product must match its price
5) What methods can an entrepreneur leverage to identify the most appropriate price for his or her product?
D
6) The core product is______, while the augmented product collection of offerings are peripherally related to it. A. The brand B. The technology C. The cost D. The essential product E. None of the above
A price skimming strategy focuses on maximizing profits by charging a high price for early adopters of a new product, then gradually lowering the price to attract thriftier consumersPenetration pricing occurs when a company launches a low-priced product with the goal of securing market share. For example, a sponge manufacturer might use a penetration pricing strategy to lure customers from current competitors and to discourage new competitors from entering the industry. The skimming strategy will work best for entrepreneurs with a product that brings something new to the marketplace. Unless your channels of distribution are well established a penetration pricing strategy is hard to implement.
6) What is the difference between price skimming and penetration pricing, and when will a skimming strategy be best? Why?
D
7) A positioning statement has which of the following: A. Target group and need B. Brand and concept C. Point of difference D. All of the above E. None of the above
Intensive coverage: Works for consumer goods and other fast-moving products. The carbonated soft drink industry is one of the most intensively distributed: Products are sold in supermarkets, drugstores, convenience stores etc.., Selective distribution brings the product to specific distributors, often limiting selection geographically by establishing a dealer network. Exclusive distribution is often used for luxury products. For some time Neiman Marcus had exclusive rights to distribute the Hermes line of fashion accessories.
7) Distribution channel strategy includes three types of channel coverage, please define them.
E
8) Customer understanding enables the entrepreneur to ______: A. create value. B. capture value. C. communicate value. D. deliver value. E. All of the above
Marketing activities that are nontraditional, grassroots, and captivating-that gain consumers' attention and build awareness of the company. The main categories are buzz marketing, word-of-mouth marketing, and Viral marketing.
8) What is guerrilla marketing, and what are the main categories of guerrilla marketing?
B
9) Price discrimination is a pricing strategy that: A. Limits sales to a specific demographic. B. Charges different prices to different customer segments. C. Prices below the prevailing market prices in order to gain market share. D. Sets the price at a predetermined level above the per unit cost of production. E. None of the above
Guerrilla marketing is heard above the noise in the marketplace and makes a unique impact. I makes people talk about the product and company but is very difficult to execute effectively
9) Why is defining what guerrilla marketing does easier than defining what it is?
True
A segment is a group of customers defined by certain commonalities or characteristics that may be demographic, psychographic, or behavioral
False
Brand equity is always a positive influence for your company.
True
Brand equity is the combined result of brand awareness and brand image.
False
Distribution is not as problematic for service-based ventures as it is for those that manufacture goods.
False
During the introduction phase of the product life cycle, marketers must cultivate customer loyalty and build the brand.
True
Early stage companies often find it necessary to scale up or change focus.
True
Entrepreneurs frequently stumble in their marketing, because of personal biases and beliefs.
True
Guerrilla marketing consists of activities that are non-traditional, grassroots, and captivating, which gain consumers' attention and build awareness of the company.
True
Guerrilla tactics have become increasingly difficult to execute in recent years, because corporate marketing executives are now employing non-traditional tactics as well and have much larger budgets at their disposal.
False
Intuition-based decision making should always supersede other methods in planning a marketing campaign for an entrepreneurial startup.
False
Many entrepreneurs rely heavily on their cash expenditures to achieve a compelling image in a noisy marketplace.
True
Marketing communications convey messages to the market; messages about the company's products and services, as well as about the company itself.
True
Marketing helps entrepreneurs acquire resources by selling their ideas to potential investors and partners.
True
Marketing is at the heart of an organization because its role is to identify and serve customers' needs. The scope of marketing ranges only from advertising to promotion.
False
New ventures cannot survive in competition with larger corporations, since the latter can spend intimidating sums on marketing research, testing their strategies, or designing marketing campaigns.
True
New ventures must differentiate their product or service to make its distinctiveness and value clear to customer
True
People usually use guerrilla tactics in wide-spread advertising, rather than in personal selling.
True
Price promotions are short term and use regular price levels as a base from which to discount.
True
The cost-based method of pricing is marking up a product based on its cost plus a desired profit margin.
True
The customer's direct experience with the brand has a strong effect on brand image.
False
The stages of the product life cycle are introduction, growth, maturity, and introduction again.
True
The three primary types of sales promotion are consumer promotions, trade promotions, and sales force promotions.
A
1) An important part of gaining the market's acceptance is___. A. Building brand awareness B. Reducing the product's cost of goods sold C. Franchising the brand D. Building celebrity client network E. None of the above.
An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders.
1) In your own words, define "marketing".
True
Channel partnerships and relationships have important implications for entrepreneurs. In fact, the channel member with the most power will often prevail in a competitive market.
