Entrepreneurship: Successfully Launching New Ventures, 4e (Barringer/Ireland) Chapter 11 Unique

Marketing Issues

1) True You Cosmetics, the company profiled in the opening feature in Chapter 11, sells cosmetics
products. The company's marketing efforts to date have focused heavily on: A) Google AdWords and
AdSense B) print advertising C) radio D) social media E) television advertising

2) Andy Sanders owns a sporting goods store that appeals to hunters and fishermen. The market that
Andy is trying to appeal to is called his: A) focal market B) objective market C) target market D) critical
market E) intention market

3) The first step in selecting a target market is to study the industry in which the firm intends to compete
and determine the different potential target markets in that industry. This process is called: A) market
positioning B) market splitting C) market targeting D) market subdividing E) market segmentation

4) Which of the following is the correct sequence of events in regard to the process of selecting a target
market and position strategy? A) creating a unique positioning strategy, selecting a target market,
segmenting the market B) segmenting the market, creating a unique positioning strategy, selecting a
target market C) segmenting the market, selecting a target market, creating a unique positioning
strategy D) selecting a target market, creating a unique positioning strategy, segmenting the market E)
creating a unique positioning strategy, segmenting the market, selecting a target market

5) Brenda Berry is thinking about starting a computer company. After doing some research, she has
decided that the computer industry can be divided into the following product categories: handheld
computers, laptops, tablet computers, PCs, minicomputers, and mainframes. She is now trying to decide
which product category she is the most interested in competing in. The process that Brenda is going
through is called: A) market splitting B) market subdividing C) market segmentation D) market dividing E)
market separating

6) Once a firm has segmented the market, the next step is to: A) decide on a position within the segment
B) select a critical market C) select a target market D) select a focal market E) immediately decide on the
"4Ps" of the marketing strategy

7) A ________ is a place within a market segment that represents a narrower group of customers with
similar interests. A) position market B) niche market C) slot market D) spot market E) gap market

8) Research in Motion (RIM) is a handheld computer company that focuses specifically on business users
that need dependable access to e-mail and the Internet while away from their office. For RIM, this
specific type of user within the large business market segment is referred to as its: A) gap market B) task
market C) position market D) hole market E) niche market

9) A(n) ________ is the set of attributes—positive or negative—that people associate with a company.
A) emblem B) logo C) symbol D) brand E) trade name
10) Which of the following selections is incorrect regarding a firm's "positioning" strategy? A) Position is
concerned with how the firm is situated relative to its competitors. B) A firm's decision about how to
position itself relative to its competitors starts with a product or service idea that is tested and refined
through feasibility analysis and marketing research. C) Position is concerned with how a firm is situated
relative to competitors. D) Once a firm positions itself in a certain way, it must be able to follow through
with a product or service offering that lives up to the image it has created. E) After selecting a
positioning strategy, the firm's next step is to select a target market.

11) A ________ illustrates a firm's positioning strategy relative to its major rivals. A) product attribute
map B) positioning analysis grid C) positioning plot

D) competitive analysis grid E) positioning diagram

12) A product attribute map is used to help a firm determine: A) if it is emphasizing benefits rather than
features B) if its branding strategy is appropriate C) if its market segmentation is correct D) if its
positioning strategy is appropriate E) if its target market is appropriate

13) Nike's familiar phrase "Just do it" is an example of a(n): A) attention-line B) tagline C) notice-line D)
catchline E) grabline

14) InstyMed's phrase "We make patients better quicker" is an example of a(n): A) tagline B) grabline C)
notice-line D) catchline E) attention-line

15) Which of the following statements is correct regarding the concept of branding? A) Brands cannot
be built through advertising, public relations, sponsorships, social media, or similar techniques. B) A
company doesn't normally want its customers to identify with its brand. C) Startups usually start with an
established brand. D) A brand can be one of a company's most valuable assets. E) A brand can denote a
negative impression of a company.

16) Some companies monitor the integrity of their brands through a program of: A) brand
administration B) brand persistence C) brand determination D) brand resolution E) brand management

17) The What Went Wrong feature in Chapter 11 focuses on Ugobe, the company that made Pleo, a
small robotic baby dinosaur. Ugobe failed primarily because it didn't establish a clear: A) positioning
strategy B) branding strategy C) social media strategy D) financial strategy E) advertising strategy

18) According to the textbook, a brand is all of the following except: A) reputation B) collection of
memories C) a pledge D) a promise E) a written warranty

19) Creating ________ means creating awareness and a sense of anticipation about a company and its
offerings. A) ruckus B) noise C) clatter D) clamor E) buzz

20) Which of the following statements is incorrect regarding the process of building a company's brand?
A) A firm's name, logo, Web site design, and even its letterhead are part of its brand. B) One of the keys
to effective branding is to create a strong personality for a firm. C) Some companies monitor the
integrity of their brands through brand management. D) Startups must build a brand from scratch,
which starts with selecting the company's name. E) Most experts recommend a heavy reliance on
advertising in building a firm's brand.

21) ________ is a term that denotes the set of assets and liabilities that are linked to a brand and enable
it to raise a firm's valuation. A) Trademark equity B) Brand equity C) Logo equity D) Trademark value-
added E) Trade name strength

22) According to the textbook, a successful brand can increase the market value of a company by: A) 5
to 10 percent B) 20 to 30 percent C) 40 to 50 percent D) 50 to 75 percent E) 75 to 100 percent

23) The Savvy Entrepreneurial Firm feature in Chapter 11 focuses on Airbnb, the company that created a
marketplace for people to list, discover, and book unique spaces in people's homes or apartments while
traveling. According to the feature, Airbnb was able to generate substantial buzz about its service via the
use of: A) Facebook B) Google AdSense

C) blogs D) newspaper ads E) Twitter

24) A firm's ________ is the set of controllable, tactical marketing tools that it uses to produce the
response it wants in the target market. A) tactical mix B) promotional blend C) organizational mix D)
marketing mix E) selling mix

25) Which of the following is not one of the four elements that constitute a firm's marketing mix? A)
price B) promotion C) passion D) place (or distribution) E) product

26) A firm's marketing mix consists of the following four elements: A) product, price, promotion, and
place B) passion, pride, promotion, and place C) passion, pleasure, product, and price D) enthusiasm,
passion, product, and price E) place, promotion, passion, and product

27) A firm's ________, in the context of its marketing mix, is the good or service it offers to its target
market. A) conception B) idea C) formation D) product E) invention

28) A ________ is something that takes on a physical form, such as an MP3 player or a laptop computer.
A ________ is an activity or benefit that is intangible, such as an airplane trip or advice from an attorney.
A) product, service B) service, component C) component, service D) formation, service E) service,
product

29) A(n) ________ is an early user of a firm's product who is willing to give a testimonial regarding his or
her experience with the product. A) tribute account

B) reference account C) approval report D) appreciation account E) acknowledgment report

30) Before Kim Green opened her jiffy print store, she processed several large print jobs for local
merchants for free, to demonstrate the quality of her service and to solicit feedback. Two of the
merchants wrote favorable reviews of Kim's service, and agreed to let Kim post the reviews on her
company's Web site. The companies that wrote the favorable reviews are referred to as: A) appreciation
reports B) acknowledgement accounts C) referent accounts D) tribute reports E) approval reports

31) The amount of money consumers pay to buy a product is its: A) price B) fee C) value D) cost E)
charge

32) Which element of the marketing mix is the only one that produces revenue? A) product B) place (or
distribution) C) advertising D) price E) promotion

33) In ________, the list price of an item is determined by adding a markup percentage to a product's
cost. A) cost-based pricing B) compliance-based pricing C) value-based pricing D) competitive-based
pricing E) economic-based pricing

34) Pat Walker owns an environmental services company. The way Pat prices her services is to figure her
cost and then add a 22 percent markup. The method that Pat uses to determine her prices is called: A)
economic-based pricing B) value-based pricing C) competitive-based pricing D) cost-based pricing E)
conformity-based pricing

35) In ________, the list price is determined by estimating what consumers are willing to pay for a
product and then backing off a bit to provide a cushion. A) value-based pricing B) tactical pricing C)
strategic pricing D) cost-based pricing E) economic-based pricing

36) Michael Jones owns a Web design firm. The way Michael prices his products is to determine what
consumers are willing to pay, and then he backs off a bit to provide a cushion. The method that Michael
used to determine his prices is called: A) predatory pricing B) technical pricing C) cost-based pricing D)
competitive-based pricing E) value-based pricing

37) According to the textbook, most experts recommend ________ pricing because it hinges on the
perceived value of a product or service. A) value-based B) cost-based C) competitive-based D) tactical E)
strategic

38) Karen Simon recently purchased a digital camera. She considered three cameras, a Kodak that was
priced at $139.00, a Panasonic priced at $189.00, and a Nikon priced at $229.00. Karen couldn't tell
much difference between the cameras, so she bought the Nikon, figuring that because it was the most
expensive of the three, it must be the best. According to the textbook, Karen was making a: A) price-
quality attribution B) price-merit attribution C) cost-value acknowledgement D) cost-worth attribution E)
price-worth acknowledgement

39) ________ refers to the activities the firm takes to communicate the merits of its product to its target
market. A) Sponsorship B) Advertising C) Endorsement D) Promotion E) Price

40) The Google program called ________ allows advertisers to buy keywords on the Google Home Page.
A) AdSense

B) Adcenter C) AdWords D) Search Marketing E) AdGoogle

41) Efforts to establish and maintain a company's image with the public are referred to as: A) open
relations B) public relations C) civic relations D) community relations E) advertising

42) Every year thousands of electronic products manufacturers gather in Las Vegas to display their
products and to see what their competitors are up to. This type of event is called a: A) trade show B)
promotions show C) deal show D) goods show E) skill show

43) Twitter, Facebook and company blogs are examples of: A) public media B) group media C) shared
media D) social media E) community media

44) The idea behind blogs is that they: A) familiarize people with a business and help build an emotional
bond between a business and its customers B) are an effective recruiting tool and they help businesses
network with government officials C) help build an emotional bond between a business and its
customers and are an effective platform for product development D) are an effective tool for product
development and familiarize people with a business E) are an effective tool for recruiting and they
familiarize people with a business

45) The Partnering for Success feature in Chapter 11 focuses on Moxsie, an online retailer that sells
fashion items made by independent designers. Moxsie has accelerated its growth by: A) partnering with
an influential Web site and soliciting feedback from customers B) running Google AdSense ads and
soliciting feedback from customers C) utilizing viral marketing and putting in place a formal sales process
D) utilizing guerrilla marketing techniques and entering into a strategic alliance with Google E) co-
branding its site with another online retailer and putting a formal sales process in place

46) ________ marketing is a low-budget approach to marketing that relies on ingenuity, cleverness, and
surprise rather than traditional techniques. A) Rebel B) Bug C) Catching D) Guerrilla E) Revolutionary

47) A(n) ________ is a route a product takes from the place it is made to the customer who is the end
user. A) trade channel B) product channel C) allotment channel D) promotion channel E) distribution
channel

48) A firm's sales process: A) is typically not put in place until a year or more after a startup launches B)
describes a firm's branding strategy C) depicts the steps it goes through to identify prospects and close
sales D) describes its social media strategy E) depicts the steps it goes through to identify its target
market and positioning strategy

49) The first step in the formal sales process described in the book is: A) qualify the lead B) make the
sales presentation C) prospect for sales leads D) meet objections and concerns E) make the initial
contact

50) 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 build uniformity into the process. B) Following a
formal or structured process to generate and close sales benefits a firm. C) A "sales process" is equally
valuable whether a firm is selling directly to customers or through intermediaries. D) A firm's sales
process depicts the steps it goes through to identify its target market. E) A formal sales process involves
a number of identifiable steps.