Market Strategy Entry T/F Test Bank Docx Chapter 4

Chapter 4: Engaging Customers, Analyzing Competitors, for Market Entry Strategy True/False

1. Entrepreneurs usually engage in marketing research for two reasons: (1) to identify the need and opportunity for the venture and (2) to understand marketing and customer issues that relate to the product or service.
2. Fortunately, market research is not a costly exercise for a startup company.
3. Google also offers free software tools to monitor web site effectiveness called Google Maps.
4. Marketing objectives are likely to be based on sales revenues and market share.
5. Digital marketing techniques can be used to test many aspects of the product or service before committing the business fully to one path.
6. One-to-one marketing is rapidly becoming a competitive imperative.
7. Marketing plans often place a great deal of emphasis on acquisition but not on customer loyalty.
8. Influencer identification is a key new focus of loyalty marketing because influencers have large followings, an affinity for the product or topic and their followers or readership demonstrate engagement or activation potential.
9. The advantage of using sales agents is that they usually sell other competitors’ products or services as part of a complete line.
10. After the trade show, the company should develop screening questions to identify solid sales leads.
11. Although customer interviews can be conducted in a semi-informal manner, preparation should be structured and well-organized.
12. Good sources of primary market research include information extracted from industry studies, books and journals.
13. There are many digital tools available to help determine the size of potential markets, but the tools are not often used because they are costly.
14. Digital tools can be used to determine the size of the market, pricing models and competitor’s products.
15. Activities to learn about competitors include: visiting trade shows, constructing the competitor’s road map, and collecting competitive literature and advertising.

Short Answer / Fill in the Blank

1. ________ describes mechanisms by which customers are triggered and motivated to recommend a product or service to other potential customers.
2. A(n) ________ is a small segment of a large market ignored by other companies.
3. Marketing tactics are developed for each target market, which is called ________.
4. _________ marketing required learning the profile or details about individual customers to identify which are most valuable to the company.
5. _________ is the process of establishing and maintaining a distinctive place in the market for the start-up and/or its products offerings.

21. The ________ is a group of salespeople who work directly for the company and are paid straight salary, salary plus bonus, or straight commission.

1. _________ are good places to exhibit and sell products.
2. ________focuses on content creation, used to generate rankings and social media visibility, to establish a brand or business as an expert in its field with valuable, useful content for potential customers of its products or services.

Multiple Choice

24. Which type of marketing is a small segment of a large market ignored by other companies?

• 1. Niche marketing
  2. Mass marketing
  3. Value marketing
  4. Just-in-time marketing

1. All of the following are key steps to becoming a one-to-one marketer except:
   1. Link customers’ identities to their transactions
   2. Calculate individual customer lifetime value
   3. Mass market to customers using generic approach to satisfy all
   4. Practice just-in-time marketing
2. All of the following are factors that often underlie hidden profit potential except:
   1. Profit from Price Premium
   2. Profit from Reduced Operating Costs
   3. Profit Derived from Decreased Purchases
   4. Profit from Referrals to Other Customers
3. Demographic segmentation divides a market by all of the following except:
   1. age
   2. income
   3. gender
   4. geography
4. All of the following are ways that a market can be segmented except:
   1. Viral segmentation
   2. Geographic segmentation
   3. Business demographics
   4. Psychographic segmentation
5. __________ segmentation is very important for retail businesses, restaurants, and services addressing their local surroundings only.
   1. Geographic segmentation
   2. Business demographics
   3. Ethnic segmentation
   4. Viral segmentation

1. Market segmentation by geography includes:
   1. Defining targeted customers by where they were born.
   2. Defining targeted customers by where they went to school.
   3. Defining targeted customers by the value group they belong to.
   4. Defining targeted customers by where they live.
2. To identify which businesses will provide the most competition, ask questions in all areas of competition except which one of the following?
   1. Product or service
   2. Price
   3. Financial
   4. Personal
3. _______ is the process of establishing and maintaining a distinctive place in the market for the start-up and/or its product offerings.
   1. Positioning
   2. Viral marketing
   3. Combination segmentation
   4. Mass marketing
4. What is the key to the process of controlling costs and showing a profit?
   1. Pricing
   2. Market analysis
   3. Supply and demand
   4. Sales strategy
5. Demonstrating _________ is part of pricing a new strategy.
   1. rationale
   2. costs
   3. value
   4. contribution
6. Which of the following works as a subcontractor to sell products or services?
   1. Direct sales force
   2. Sales Agents
   3. Trade shows
   4. Entrepreneurs

40.All of the following are disadvantages of using sales agents except:

• 1. The entrepreneur has little control over the sales agents.
  2. Sales agents usually sell other products or services as part of a complete line.
  3. Sales costs are not incurred until the product is sold.
  4. Sales agents tend to push the easier-to-sell products or services.

1. Which of the following is not an advantage of trade shows?
   1. The competition cannot be quickly assessed.
   2. The company can initiate a business relationship by inviting the customer to a follow-up meeting.
   3. It is an excellent opportunity to interact with many people in the industry whom the entrepreneur might not have otherwise met.
   4. The company can demonstrate the products and answer any questions from prospective customers about the product or service.
2. To determine the best type of advertising, entrepreneurs should consider all of the following except:
   1. Variables of targeted audience
   2. Type of product
   3. Cost
   4. Entrepreneurial personality
3. The best advocate for a company’s products or services is the:
   1. New customer
   2. Existing customer
   3. Entrepreneur
   4. Sales Representative
4. Which type of marketing describes mechanisms by which customers are triggered and

motivated to recommend a product or service to other potential customers?

• 1. Viral marketing
  2. Niche marketing
  3. One-to-one marketing
  4. Value marketing

1. ________________ are not just those with large followings – they also need to have an affinity for the product or topic, and their followers or readership must demonstrate engagement or activation potential.
   1. Sales agents
   2. Digital channels
   3. E-commerce companies
   4. Influencers