lOMoAR cPSD| 21240056

Entrepreneurship: Successfully Launching New 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) building the company's brand
B) finding strategic partners
C) finding the right target market
D) building a social media presence
E) effectively executing a Google AdWords campaign

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

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 to the process of selecting a target
market and position strategy?
A) Create a unique positioning strategy, Select a target market, Segment the market
B) Segment the market, create a unique positioning strategy, and Select a target market
C) Segment the market, Select a target market, Create a unique positioning strategy
D) Select a target market, Create a unique positioning strategy, Segment the market
E) Create a unique positioning strategy, Segment the market, Select a target market

1
Copyright © 2016 Pearson Education, Inc.
 lOMoAR cPSD| 21240056

5) Katherine Ford 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, work stations, minicomputers,
mainframes and super computers. She is now trying to decide which product category she is the
most interested in competing in. The process that Katherine is going through is called market
________.
A) splitting
B) subdividing
C) segmentation
D) dividing
E) separating

6) Once a firm has segmented the market, the next step is to ________.
A) decide on a position within the segment
B) settle on pricing
C) select a target market
D) establish the company's brand
E) immediately decide on the "4Ps" of the marketing strategy

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

8) Broadway Dance Center in New York City targets serious dancers who aspire to earn a living
dancing in Broadway plays. This specific portion of the overall dance industry is referred to a
________ market.
A) gap
B) task
C) position
D) hole
E) niche

2
Copyright © 2016 Pearson Education, Inc.
 lOMoAR cPSD| 21240056

9) 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) Determining which position in a market to occupy and compete in is a strategic call on the
part of a company based on its mission, its overall approach to the marketplace, and its competitive
landscape.
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.

10) 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

11) A product attribute map is used to help a firm determine if ________.

A) it is emphasizing benefits rather than features
B) its branding strategy is appropriate
C) its market segmentation is correct
D) its positioning strategy is appropriate
E) its target market is appropriate

12) 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

13) Birchbox's phrase "The Box is Monthly, the Discoveries are Endless" is an example of a(n)
________.
A) tagline
B) grabline
C) notice-line
D) catchline
E) attention-line

3
Copyright © 2016 Pearson Education, Inc.
 lOMoAR cPSD| 21240056

22) 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

24) 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.

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

26) According to the textbook, a brand is all of the following except a(n) ________.
A) firm's reputation
B) firm's credentials
C) indicator of trust and reduced risk
D) description of a company's nature
E) written warranty

27) 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

4
Copyright © 2016 Pearson Education, Inc.
 lOMoAR cPSD| 21240056

28) When Red Bull was first being introduced into the United States, the company would hand
out free samples of its product at extreme sports events (e.g., skateboarding, wakeboarding and
mountain biking competitions). Red Bull's objective was to create ________ surrounding its
product.
A) buzz
B) noise
C) clatter
D) clamor
E) ruckus

29) Which of the following statements is incorrect regarding the process of building a company's
brand, particularly for young firms?
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.

30) ________ 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

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

36) The 4Ps of marketing refer to a company's ________.

A) tactical mix
B) promotional blend
C) organizational mix
D) marketing mix
E) selling mix

5
Copyright © 2016 Pearson Education, Inc.
 lOMoAR cPSD| 21240056

37) 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

38) A firm's marketing mix consists of ________.

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

39) 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

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

41) The Partnering for Success feature in Chapter 11 focuses on Caribou Coffee and Bruegger's
Bagels, two companies that have established a cobranding relationship. Cobranding is when two
companies ________.
A) pool their resources to buy advertising space to market their individual brands
B) locate their businesses in close proximity to one another because their brands are
complementary
C) form a partnership to combine their brands
D) employ the same advertising agency to promote their brands
E) pool their resources to license a brand from a third company

6
Copyright © 2016 Pearson Education, Inc.
 lOMoAR cPSD| 21240056

42) 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

43) Before Kimberly Campbell 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 Kimberly's service, and agreed to let
Kimberly 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

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

45) 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

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

7
Copyright © 2016 Pearson Education, Inc.
 lOMoAR cPSD| 21240056

47) Kevin Jackson owns a general contracting company. The way Kevin prices his services is to
figure his cost and then add a 33 percent markup. The method that Kevin uses to determine his
prices is called ________-based pricing.
A) economic
B) value
C) competitive
D) cost
E) conformity

48) In ________ pricing, 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
B) tactical
C) strategic
D) cost-based
E) economic-based

49) Annie Clarke owns a smartphone app development firm. The way Annie prices her products
is to determine what consumers are willing to pay, and then she backs off a bit to provide a
cushion. The method that Annie used to determine her prices is called ________ pricing.
A) predatory
B) technical
C) cost-based
D) competitive-based
E) value-based

50) 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

8
Copyright © 2016 Pearson Education, Inc.
 lOMoAR cPSD| 21240056

51) Karen Simon recently purchased a digital camera. She considered three cameras-a Sony that
was priced at $239.00, a Canon priced at $319.00, and a Nikon priced at $399.00. 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

52) ________ 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

53) The What Went Wrong feature in Chapter 11 focuses on a series of missteps at JCPenney
under the tenure of then CEO Ron Johnson. According to the feature, Johnson's three most
damaging marketing-related mistakes were ________.
A) no testing of ideas in advance, poor product quality, and poor sales training for employees
B) reluctance to embrace online sales, a shift from value-based to cost-based pricing, and poor
sales training for employees
C) poor product quality, a total misread of JCPenney's brand, and poor use of social media
D) Fair and Square Pricing, no testing of ideas in advance, and a total misread of JCPenney's
brand
E) poor use of social media, Fair and Square Pricing, and poor sales training for employees

54) 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

9
Copyright © 2016 Pearson Education, Inc.
 lOMoAR cPSD| 21240056

55) 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

56) Every January 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
________ show.
A) trade
B) promotions
C) deal
D) goods
E) skill

57) 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

58) ________ 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

10
Copyright © 2016 Pearson Education, Inc.
 lOMoAR cPSD| 21240056

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

60) A firm's sales process ________.

A) is typically not put in place until a year or more after a startup launches
B) describes its 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

72) 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

73) 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.

74) The final step in the formal sales process described in the book is ________.
A) qualify the lead
B) make the sales presentation
C) follow-up
D) closing the sale
E) meeting objections and concerns

11
Copyright © 2016 Pearson Education, Inc.