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Entrepreneurship: Successfully Launching New Ventures, 6e (Barringer/Ireland)
Chapter 11 Unique Marketing Issues
1) Real Time Cases, the company profiled in the opening feature in Chapter 11, sells live
business cases for classroom use. According to the case, which of the following was NOT a
marketing strategy for the firm?
A) Attend trade conferences to meet CEOs.
B) Issue press releases through local and regional news outlets.
C) Apply for every start-up competition and pitch event available.
D) Reach out to personal networks.
E) All of the above were marketing strategies used by the firm.
2) Kyle White owns a sporting goods store that appeals to hunters and fishers. 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
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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
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
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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
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 as a
________ market.
A) gap
B) task
C) position
D) hole
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.
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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
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
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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
14) A firm’s target market is the limited group of individuals or businesses that it goes after or
tries to appeal to.
15) The proper sequence in selecting a target market and positioning strategy is (1) craft a unique
16) Markets can be segmented in a number of ways, including by geography, demographic
variables, psychographic variables, behavioral variables, and product type.
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17) A niche market is a place within a market segment that represents a narrow group of
customers with similar interests.
18) A firm’s “position” is concerned with how it is situated relative to its rivals.
19) A product attribute map illustrates the strength of a firm’s niche (or target) market relative to
competing markets.
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.
21) What is the purpose of market segmentation? How are markets typically segmented? Can a
company segment its market on more than one dimension?
22) What is a tagline? Provide an example of a popular tagline, and discuss why you think it has
been effective.
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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
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
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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
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
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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
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32) A brand is the set of attributes—positive or negative—that people associate with a company.
33) Creating buzz means creating awareness and a sense of anticipation about a company and its
offerings.
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.
35) What is a brand? How does a new firm develop a brand?
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
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