Entrepreneurship: Successfully Launching New Ventures, Ventures, 5e (Barringer/Ireland) Chapter 11 Unique Marketing Issues
1) Wink Natural Cosmetics, the company profiled in the opening feature in Chapter 11, sells cosmetics products. According to the case, the company's initial marketing efforts were aimed at ________. A) uilding the company's rand !) finding strategic partners C) finding the right target market ") uilding a social media presence #) effecti$ely e%ecuting a &oogle AdWords AdWords campaign Answer A "iff 1 (age ef *++ - 11.1 #%plain #%plain the three steps segmenting segmenting the market, selecting a target target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! eflecti$e hinking 2) 3yle White owns a sporting goods store that appeals to hunters and fishermen. he market that 3yle is trying to appeal to is called his ________ market. A) focal !) o4ecti$e C) target ") critical #) intention Answer C "iff 1 (age ef *+5 - 11.1 #%plain #%plain the three steps segmenting segmenting the market, selecting a target target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! Analytical hinking *) he first step in selecting a target market is to study the industry in which the firm intends to compete and determine d etermine the different potential target markets in that industry. industry. his process is called ________. A) market positioning !) market splitting C) market targeting ") market sudi$iding #) market segmentation Answer # "iff 2 (age ef *+5 - 11.1 #%plain #%plain the three steps segmenting segmenting the market, selecting a target target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! eflecti$e hinking
1 Copyright 6 271+ (earson #ducation, 8nc.
9) Which of the following is the correct se/uence of e$ents to the process of selecting a target market and position strategy: A) Create a uni/ue positioning strategy, 0elect a target market, 0egment the market !) 0egment the market, Create a uni/ue u ni/ue positioning strategy, strategy, 0elect a target market C) 0egment the market, 0elect a target market, Create a uni/ue positioning strategy ") 0elect a target market, Create a uni/ue positioning strategy, strategy, 0egment the market #) Create a uni/ue positioning strategy, 0egment the market, 0elect a target market Answer C "iff * (age ef *+5 - 11.1 #%plain #%plain the three steps segmenting segmenting the market, selecting a target target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! eflecti$e hinking ;) 3atherine
9(s> of the marketing strategy Answer C "iff 2 (age ef *+? - 11.1 #%plain #%plain the three steps segmenting segmenting the market, selecting a target target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! eflecti$e hinking
2 Copyright 6 271+ (earson #ducation, 8nc.
5) A ________ market is a place within a market segment that represents a narrower group of customers with similar interests. A) position !) niche C) slot ") spot #) gap Answer ! "iff 2 (age ef *+? - 11.1 #%plain the three steps segmenting the market, selecting a target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! Analytical hinking ?) !roadway "ance Center in New @ork City targets serious dancers who aspire to earn a li$ing dancing in !roadway plays. his specific portion of the o$erall dance industry is referred to a ________ market. A) gap !) task C) position ") hole #) niche Answer # "iff 2 (age ef *+? - 11.1 #%plain the three steps segmenting the market, selecting a target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! Analytical hinking ) Which of the following selections is incorrect regarding a firm's >positioning> strategy: A) (osition is concerned with how the firm is situated relati$e to its competitors. !) A firm's decision aout how to position itself relati$e to its competitors starts with a product or ser$ice idea that is tested and refined through feasiility analysis and marketing research. C) "etermining which position in a market to occupy and compete in is a strategic call on the part of a company ased on its mission, its o$erall approach to the marketplace, and its competiti$e landscape. ") -nce a firm positions itself in a certain way, it must e ale to follow through with a product or ser$ice offering that li$es up to the image it has created. #) After selecting a positioning strategy, the firm's ne%t step is to select a target market. Answer # "iff * (age ef *+ - 11.1 #%plain the three steps segmenting the market, selecting a target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! Analytical hinking
* Copyright 6 271+ (earson #ducation, 8nc.
17) A ________ illustrates a firm's positioning strategy relati$e to its ma4or ri$als. A) product attriute map !) positioning analysis grid C) positioning plot ") competiti$e analysis grid #) positioning diagram Answer A "iff 2 (age ef *+ - 11.1 #%plain the three steps segmenting the market, selecting a target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! eflecti$e hinking 11) A product attriute map is used to help a firm determine if ________. A) it is emphasiBing enefits rather than features !) its randing strategy is appropriate C) its market segmentation is correct ") its positioning strategy is appropriate #) its target market is appropriate Answer " "iff 2 (age ef *+ - 11.1 #%plain the three steps segmenting the market, selecting a target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! eflecti$e hinking 12) Nike's familiar phrase >ust do it> is an e%ample of an) ________. A) attentionDline !) tagline C) noticeDline ") catchline #) graline Answer ! "iff 2 (age ef *57 - 11.1 #%plain the three steps segmenting the market, selecting a target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! Application of 3nowledge
9 Copyright 6 271+ (earson #ducation, 8nc.
1*) !ircho%'s phrase >he !o% is Eonthly, the "isco$eries are #ndless> is an e%ample of an) ________. A) tagline !) graline C) noticeDline ") catchline #) attentionDline Answer A "iff 2 (age ef *57 - 11.1 #%plain the three steps segmenting the market, selecting a target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! Application of 3nowledge 19) A firm's target market is the limited group of indi$iduals or usinesses that it goes after or tries to appeal to. Answer F# "iff 1 (age ef *+5 - 11.1 #%plain the three steps segmenting the market, selecting a target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! eflecti$e hinking 1;) he proper se/uence in selecting a target market and positioning strategy is 1) craft a uni/ue positioning strategy, 2) select a target market, and *) segment the market. Answer
; Copyright 6 271+ (earson #ducation, 8nc.
1?) A firm's >position> is concerned with how it is situated relati$e to its ri$als. Answer F# "iff 2 (age ef *+ - 11.1 #%plain the three steps segmenting the market, selecting a target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! Analytical hinking 1) A product attriute map illustrates the strength of a firm's niche or target) market relati$e to competing markets. Answer
+ Copyright 6 271+ (earson #ducation, 8nc.
22) What is a tagline: (ro$ide an e%ample of a popular tagline, and discuss why you think it has een effecti$e: Answer ust do it.> he Nike tagline implies that people don't need to e told they should e%erciseDthey already know that. he challenge is to >ust do it.> he eauty of this simple threeDword e%pression is that it applies e/ually to a 21DyearDold triathlete and a +;D yearDold mall walker. his cle$er tagline, along with Nike's positioning strategy, helped it e%pand its product line eyond running shoes to athletic products for all age groups. "iff 2 (age ef *57 - 11.1 #%plain the three steps segmenting the market, selecting a target market, and estalishing a uni/ue market position) entrepreneurial firms use to identify their customers. AAC0! eflecti$e hinking 2*) An) ________ is the set of attriutesDpositi$e or negati$eDthat people associate with a company. A) emlem !) logo C) symol ") rand #) trade name Answer " "iff 2 (age ef *57 - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! eflecti$e hinking 29) Which of the following statements is correct regarding the concept of randing: A) !rands cannot e uilt through ad$ertising, pulic relations, sponsorships, social media, or similar techni/ues. !) A company doesn't normally want its customers to identify with its rand. C) 0tartups usually start with an estalished rand. ") A rand can e one of a company's most $aluale assets. #) A rand can denote a negati$e impression of a company. Answer " "iff 2 (age ef *57 - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! eflecti$e hinking
5 Copyright 6 271+ (earson #ducation, 8nc.
2;) 0ome companies monitor the integrity of their rands through a program of rand ________. A) administration !) persistence C) determination ") resolution #) management Answer # "iff 2 (age ef *51 - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! eflecti$e hinking 2+) According to the te%took, a rand is all of the following e%cept an) ________. A) firm's reputation !) firm's credentials C) indicator of trust and reduced risk ") description of a company's nature #) written warranty Answer # "iff * (age ef *51 - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! Application of 3nowledge 25) Creating ________ means creating awareness and a sense of anticipation aout a company and its offerings. A) ruckus !) noise C) clatter ") clamor #) uBB Answer # "iff 2 (age ef *52 - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! eflecti$e hinking
? Copyright 6 271+ (earson #ducation, 8nc.
2?) When ed !ull was first eing introduced into the Fnited 0tates, the company would hand out free samples of its product at e%treme sports e$ents e.g., skateoarding, wakeoarding and mountain iking competitions). ed !ull's o4ecti$e was to create ________ surrounding its product. A) uBB !) noise C) clatter ") clamor #) ruckus Answer A "iff 2 (age ef *52 - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! Analytical hinking 2) Which of the following statements is incorrect regarding the process of uilding a company's rand, particularly for young firms: A) A firm's name, logo, We site design, and e$en its letterhead are part of its rand. !) -ne of the keys to effecti$e randing is to create a strong personality for a firm. C) 0ome companies monitor the integrity of their rands through rand management. ") 0tartups must uild a rand from scratch, which starts with selecting the company's name. #) Eost e%perts recommend a hea$y reliance on ad$ertising in uilding a firm's rand. Answer # "iff * (age ef *5* - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! eflecti$e hinking *7) ________ is a term that denotes the set of assets and liailities that are linked to a rand and enale it to raise a firm's $aluation. A) rademark e/uity !) !rand e/uity C) ogo e/uity ") rademark $alueDadded #) rade name strength Answer ! "iff 2 (age ef *5* - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! eflecti$e hinking
Copyright 6 271+ (earson #ducation, 8nc.
*1) According to the te%took, a successful rand can increase the market $alue of a company y ________ to ________ percent. A) ;H 17 !) 27H *7 C) 97H ;7 ") ;7H 5; #) 5;H 177 Answer " "iff * (age ef *5* - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! eflecti$e hinking *2) A rand is the set of attriutes=positi$e or negati$e=that people associate with a company. Answer F# "iff 2 (age ef *57 - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! eflecti$e hinking **) Creating uBB means creating awareness and a sense of anticipation aout a company and its offerings. Answer F# "iff 2 (age ef *52 - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! eflecti$e hinking *9) >!rand premium> is the term that denotes the set of assets and liailities that are linked to a rand and enale it to raise a firm's $aluation. Answer
17 Copyright 6 271+ (earson #ducation, 8nc.
*;) What is a rand: Gow does a new firm de$elop a rand: Answer A rand is the set of attriutesDpositi$e or negati$eDthat people associate with a company. hese attriutes can e positi$e e.g., trustworthy and dependale) or they can e negati$e e.g., cheap and unreliale). he customer loyalty a company creates through its rand is one of its most $aluale assets. o de$elop a rand, a new firm must ha$e meaning in its customers' li$esDsomething for which customers are willing to pay. -n a more pragmatic le$el, rands are uilt through a numer of techni/ues, including ad$ertising, pulic relations, sponsorships, and good performance. "iff 2 (age ef *57 - 11.2 "efine a rand and e%plain why it is important to an entrepreneurial firm's marketing efforts. AAC0! eflecti$e hinking *+) he 9(s of marketing refer to a company's ________. A) tactical mi% !) promotional lend C) organiBational mi% ") marketing mi% #) selling mi% Answer " "iff 2 (age ef *5* - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking *5) Which of the following is not one of the four elements that constitute a firm's marketing mi%: A) (rice !) (romotion C) (assion ") (lace or distriution) #) (roduct Answer C "iff 1 (age ef *5* - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking
11 Copyright 6 271+ (earson #ducation, 8nc.
*?) A firm's marketing mi% consists of ________. A) product, price, promotion, and place !) passion, pride, promotion, and place C) passion, pleasure, product, and price ") enthusiasm, passion, product, and price #) place, promotion, passion, and product Answer A "iff 2 (age ef *5* - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking *) A firm's ________, in the conte%t of its marketing mi%, is the good or ser$ice it offers to its target market. A) conception !) idea C) formation ") product #) in$ention Answer " "iff 1 (age ef *5* - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! Application of 3nowledge 97) A ________ is something that takes on a physical form, such as a smartphone or a laptop computer. A ________ is an acti$ity or enefit that is intangile, such as an airplane trip or ad$ice from an accountant. A) productH ser$ice !) ser$iceH component C) componentH ser$ice ") formationH ser$ice #) ser$iceH product Answer A "iff 21 (age ef *5* - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking
12 Copyright 6 271+ (earson #ducation, 8nc.
91) he (artnering for 0uccess feature in Chapter 11 focuses on Cariou Coffee and !ruegger's !agels, two companies that ha$e estalished a coranding relationship. Coranding is when two companies ________. A) pool their resources to uy ad$ertising space to market their indi$idual rands !) locate their usinesses in close pro%imity to one another ecause their rands are complementary C) form a partnership to comine their rands ") employ the same ad$ertising agency to promote their rands #) pool their resources to license a rand from a third company Answer C "iff * (age ef *59 - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! Analytical hinking 92) An) ________ is an early user of a firm's product who is willing to gi$e a testimonial regarding his or her e%perience with the product. A) triute account !) reference account C) appro$al report ") appreciation account #) acknowledgment report Answer ! "iff 2 (age ef *5; - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking 9*) !efore 3imerly Campell opened her 4iffy print store, she processed se$eral large print 4os for local merchants for free, to demonstrate the /uality of her ser$ice and to solicit feedack. wo of the merchants wrote fa$orale re$iews of 3imerly's ser$ice, and agreed to let 3imerly post the re$iews on her company's We site. he companies that wrote the fa$orale re$iews are referred to as ________. A) appreciation reports !) acknowledgement accounts C) referent accounts ") triute reports #) appro$al reports Answer C "iff 2 (age ef *5; - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! Analytical hinking
1* Copyright 6 271+ (earson #ducation, 8nc.
99) he amount of money consumers pay to uy a product is its ________. A) price !) fee C) $alue ") cost #) charge Answer A "iff 1 (age ef *5+ - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking 9;) Which element of the marketing mi% is the only one that produces re$enue: A) (roduct !) (lace or distriution) C) Ad$ertising ") (rice #) (romotion Answer " "iff 2 (age ef *5+ - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking 9+) 8n ________Dased pricing, the list price of an item is determined y adding a markup percentage to a product's cost. A) cost !) compliance C) $alue ") competiti$e #) economic Answer A "iff 2 (age ef *5+ - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking
19 Copyright 6 271+ (earson #ducation, 8nc.
95) 3e$in ackson owns a general contracting company. he way 3e$in prices his ser$ices is to figure his cost and then add a ** percent markup. he method that 3e$in uses to determine his prices is called ________Dased pricing. A) economic !) $alue C) competiti$e ") cost #) conformity Answer " "iff 2 (age ef *5+ - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! Analytical hinking 9?) 8n ________ pricing, the list price is determined y estimating what consumers are willing to pay for a product and then acking off a it to pro$ide a cushion. A) $alueDased !) tactical C) strategic ") costDased #) economicDased Answer A "iff 2 (age ef *5+ - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking 9) Annie Clarke owns a smartphone app de$elopment firm. he way Annie prices her products is to determine what consumers are willing to pay, and then she acks off a it to pro$ide a cushion. he method that Annie used to determine her prices is called ________ pricing. A) predatory !) technical C) costDased ") competiti$eDased #) $alueDased Answer # "iff 2 (age ef *5+ - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking
1; Copyright 6 271+ (earson #ducation, 8nc.
;7) According to the te%took, most e%perts recommend ________ pricing ecause it hinges on the percei$ed $alue of a product or ser$ice. A) $alueDased !) costDased C) competiti$eDased ") tactical #) strategic Answer A "iff 2 (age ef *5+ - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking ;1) 3aren 0imon recently purchased a digital camera. 0he considered three camerasDa 0ony that was priced at I2*.77, a Canon priced at I*1.77, and a Nikon priced at I*.77. 3aren couldn't tell much difference etween the cameras, so she ought the Nikon, figuring that ecause it was the most e%pensi$e of the three, it must e the est. According to the te%took, 3aren was making a ________. A) priceD/uality attriution !) priceDmerit attriution C) costD$alue acknowledgement ") costDworth attriution #) priceDworth acknowledgement Answer A "iff * (age ef *55 - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! Analytical hinking ;2) ________ refers to the acti$ities the firm takes to communicate the merits of its product to its target market. A) 0ponsorship !) Ad$ertising C) #ndorsement ") (romotion #) (rice Answer " "iff 2 (age ef *55 - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking
1+ Copyright 6 271+ (earson #ducation, 8nc.
;*) he What Went Wrong feature in Chapter 11 focuses on a series of missteps at C(enney under the tenure of then C#- on ohnson. According to the feature, ohnson's three most damaging marketingDrelated mistakes were ________. A) no testing of ideas in ad$ance, poor product /uality, and poor sales training for employees !) reluctance to emrace online sales, a shift from $alueDased to costDased pricing, and poor sales training for employees C) poor product /uality, a total misread of C(enney's rand, and poor use of social media ")
15 Copyright 6 271+ (earson #ducation, 8nc.
;+) #$ery anuary thousands of electronic products manufacturers gather in as Jegas to display their products and to see what their competitors are up to. his type of e$ent is called a ________ show. A) trade !) promotions C) deal ") goods #) skill Answer A "iff 2 (age ef *?2 - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! Application of 3nowledge ;5) he 0a$$y #ntrepreneurial
1? Copyright 6 271+ (earson #ducation, 8nc.
;) An) ________ channel is a route a product takes from the place it is made to the customer who is the end user. A) trade !) product C) allotment ") promotion #) distriution Answer # "iff 2 (age ef *?+ - 11.* 8dentify and e%plain the 9(s of marketing acti$ities product, price, promotion, and place) used y entrepreneurial firms. AAC0! eflecti$e hinking +7) A firm's marketing mi% is the assortment of products and ser$ices that it sells. Answer
1 Copyright 6 271+ (earson #ducation, 8nc.
+9) 8n costDased pricing, the list price is determined y estimating what customers are willing to pay for a product and then acking off a it to pro$ide a cushion. Answer
27 Copyright 6 271+ (earson #ducation, 8nc.
+) "escrie the concept of guerrilla marketing. Why is guerrilla marketing particularly suitale for entrepreneurial firms: Answer &uerrilla marketing is a lowDudget approach to marketing that relies on ingenuity, cle$erness, and surprise rather than traditional techni/ues. he point is to create awareness of a firm and its products, often in uncon$entional and memorale ways. &uerrilla marketing is particularly suitale for entrepreneurial firms, which are often on a tight udget ut ha$e creati$ity, enthusiasm, and passion to draw from.
21 Copyright 6 271+ (earson #ducation, 8nc.
52) he first step in the formal sales process descried in the ook is ________. A) /ualify the lead !) make the sales presentation C) prospect for sales leads ") meet o4ections and concerns #) make the initial contact Answer C "iff 2 (age ef *?? - 11.9 "escrie the se$enDstep sales process an entrepreneurial firm uses to identify prospects and close sales. AAC0! eflecti$e hinking 5*) Which of the following statements is untrue regarding a firm's sales process: A) A formal sales process helps a firm fine tune its approach to sales and uild uniformity into the process. !) sales process> is e/ually $aluale whether a firm is selling directly to customers or through intermediaries. ") A firm's sales process depicts the steps it goes through to identify its target market. #) A formal sales process in$ol$es a numer of identifiale steps. Answer " "iff 2 (age ef *?? - 11.9 "escrie the se$enDstep sales process an entrepreneurial firm uses to identify prospects and close sales. AAC0! eflecti$e hinking 59) he final step in the formal sales process descried in the ook is ________. A) /ualify the lead !) make the sales presentation C) followDup ") closing the sale #) meeting o4ections and concerns Answer C "iff 2 (age ef *? - 11.9 "escrie the se$enDstep sales process an entrepreneurial firm uses to identify prospects and close sales. AAC0! eflecti$e hinking 5;) A firm's sales process depicts the steps it goes through to identify prospects and close sales. Answer F# "iff 2 (age ef *?5 - 11.9 "escrie the se$enDstep sales process an entrepreneurial firm uses to identify prospects and close sales. AAC0! eflecti$e hinking
22 Copyright 6 271+ (earson #ducation, 8nc.
