Barringer entrepreneurship 2p91 test-bank chapter 11 PDF

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Entrepreneurship: Successfully Launching New Ventures, 5e (Barringer/Ireland) Chapter 11 Unique Marketing Issues 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 _...

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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 Answer: A Diff: 1 Page Ref: 366 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking 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 Answer: C Diff: 1 Page Ref: 367 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Analytical Thinking 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 Answer: E Diff: 2 Page Ref: 367 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking

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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, 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 Answer: C Diff: 3 Page Ref: 367 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking 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 Answer: C Diff: 2 Page Ref: 367 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking 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 Answer: C Diff: 2 Page Ref: 368 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking

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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 Answer: B Diff: 2 Page Ref: 368 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Analytical Thinking 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 Answer: E Diff: 2 Page Ref: 368 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Analytical Thinking 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. Answer: E Diff: 3 Page Ref: 369 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Analytical Thinking

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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 Answer: A Diff: 2 Page Ref: 369 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking 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 Answer: D Diff: 2 Page Ref: 369 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking 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 Answer: B Diff: 2 Page Ref: 370 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Application of Knowledge

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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 Answer: A Diff: 2 Page Ref: 370 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Application of Knowledge 14) A firm's target market is the limited group of individuals or businesses that it goes after or tries to appeal to. Answer: TRUE Diff: 1 Page Ref: 367 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking 15) The proper sequence in selecting a target market and positioning strategy is (1) craft a unique positioning strategy, (2) select a target market, and (3) segment the market. Answer: FALSE Diff: 2 Page Ref: 367 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking 16) Markets can be segmented in a number of ways, including by geography, demographic variables, psychographic variables, behavioral variables, and product type. Answer: TRUE Diff: 2 Page Ref: 367 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking 17) A niche market is a place within a market segment that represents a narrow group of customers with similar interests. Answer: TRUE Diff: 2 Page Ref: 368 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking

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18) A firm's "position" is concerned with how it is situated relative to its rivals. Answer: TRUE Diff: 2 Page Ref: 369 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Analytical Thinking 19) A product attribute map illustrates the strength of a firm's niche (or target) market relative to competing markets. Answer: FALSE Diff: 2 Page Ref: 369 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Analytical Thinking 20) A tagline is a catchy phrase that's used consistently in a company's literature, advertisements, and even invoices and thus becomes associated with a company to reinforce its position in the market. Answer: TRUE Diff: 2 Page Ref: 370 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking 21) What is the purpose of market segmentation? How are markets typically segmented? Can a company segment its market on more than one dimension? Answer: 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 niche or target markets in that industry. This process is called market segmentation and is important because a new firm typically only has enough resources to target one market segment, at least initially. Markets can be segmented in many ways, such as by geography (city, state, country), demographic variables (age, gender, family size, income), psychographic variables (personality, lifestyle, values), behavioral variables (benefits sought, product usage rate, brand loyalty) and product type (varies by product). Sometimes a firm segments its market on more than one dimension to drill down to a specific market that the firm thinks it is uniquely capable of serving. For example, in its market segmentation, GreatCall, the cell phone service provider for older people, probably segmented the cell phone market by age and by benefits sought. Diff: 2 Page Ref: 367 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking

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22) What is a tagline? Provide an example of a popular tagline, and discuss why you think it has been effective? Answer: Firms often develop a tagline to reinforce the position they have staked out in their market, or a phrase that is used consistently in a company's literature, advertisements, promotions, stationery, and even invoices and thus becomes associated with that company. An example is Nike's familiar tagline, "Just do it." The Nike tagline implies that people don't need to be told they should exercise-they already know that. The challenge is to "Just do it." The beauty of this simple three-word expression is that it applies equally to a 21-year-old triathlete and a 65year-old mall walker. This clever tagline, along with Nike's positioning strategy, helped it expand its product line beyond running shoes to athletic products for all age groups. Diff: 2 Page Ref: 370 LO: 11.1: Explain the three steps (segmenting the market, selecting a target market, and establishing a unique market position) entrepreneurial firms use to identify their customers. AACSB: Reflective Thinking 23) 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 Answer: D Diff: 2 Page Ref: 370 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Reflective Thinking 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. Answer: D Diff: 2 Page Ref: 370 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Reflective Thinking

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25) Some companies monitor the integrity of their brands through a program of brand ________. A) administration B) persistence C) determination D) resolution E) management Answer: E Diff: 2 Page Ref: 371 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Reflective Thinking 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 Answer: E Diff: 3 Page Ref: 371 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Application of Knowledge 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 Answer: E Diff: 2 Page Ref: 372 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Reflective Thinking

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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 Answer: A Diff: 2 Page Ref: 372 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Analytical Thinking 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. Answer: E Diff: 3 Page Ref: 373 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Reflective Thinking 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 Answer: B Diff: 2 Page Ref: 373 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Reflective Thinking

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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 Answer: D Diff: 3 Page Ref: 373 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Reflective Thinking 32) A brand is the set of attributes—positive or negative—that people associate with a company. Answer: TRUE Diff: 2 Page Ref: 370 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Reflective Thinking 33) Creating buzz means creating awareness and a sense of anticipation about a company and its offerings. Answer: TRUE Diff: 2 Page Ref: 372 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Reflective Thinking 34) "Brand premium" is the term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm's valuation. Answer: FALSE Diff: 2 Page Ref: 372 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Analytical Thinking

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35) What is a brand? How does a new firm develop a brand? Answer: A brand is the set of attributes-positive or negative-that people associate with a company. These attributes can be positive (e.g., trustworthy and dependable) or they can be negative (e.g., cheap and unreliable). The customer loyalty a company creates through its brand is one of its most valuable assets. To develop a brand, a new firm must have meaning in its customers' lives-something for which customers are willing to pay. On a more pragmatic level, brands are built through a number of techniques, including advertising, public relations, sponsorships, and good performance. Diff: 2 Page Ref: 370 LO: 11.2: Define a brand and explain why it is important to an entrepreneurial firm's marketing efforts. AACSB: Reflective Thinking 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 Answer: D Diff: 2 Page Ref: 373 LO: 11.3: Identify and explain the 4Ps of marketing activities (product, price, promotion, and place) used by entrepreneurial firms. AACSB: Reflective Thinking 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 Answer: C Diff: 1 Page Ref: 373 LO: 11.3: Identify and explain the 4Ps of marketing activities (product, price, promotion, and place) used by entrepreneurial firms. AACSB: Reflective Thinking

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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 Answer: A Diff: 2 Page Ref: 373 LO: 11.3: Identify and explain the 4Ps of marketing activities (product, price, promotion, and place) used by entrepreneurial firms. AACSB: Reflective Thinking 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...