Chapter 14—Developing a Startup Marketing Plan
TRUE/FALSE
1. Promotion tends to be more price-focused or incentive-focused and therefore is usually considered a
push strategy.
2. For most entrepreneurs, making a big financial investment in advertising and promotion makes sense.
3. Launch objectives are the key goals for the marketing campaign.
4. Building brand equity requires that customers form an emotional attachment to a brand.
5. Strategies deal with the needs of the customer and what is being offered to satisfy those needs.
6. The Yellow Pages do not effectively generate awareness of new products/services in the early stages.
7. Tactics include the media, channels, and delivery mechanisms used to reach the customer and create
brand awareness.
8. Advertising and promotion are both used to create awareness of the company’s products, services, and
pricing to influence customers to buy.
9. Traditional advertising⎯a push strategy⎯consists of print and broadcast media.
10. Giving customers something for nothing makes sense in an environment where it is hard to get
customers’ attention.
MULTIPLE CHOICE
1. The ____ paradigm describes a statistical phenomenon where niche markets, when aggregated,
account for a significant portion of total sales in some consumer sectors.
a.
diffusion
b.
relationship marketing.
c.
long tail
d.
tornado
e.
chasm
2. To the extent that entrepreneurs can predict the points of takeoff (optimism) and slowdown
(pessimism) in the ____, they can better manage demand.
a.
life cycle
b.
marketing plan
c.
diffusion cycle
d.
promotion plan
e.
None of these choices
3. Geoffrey Moore’s modification of the adoption/diffusion curve shows the ____, a period when the
early adopters have been exhausted and the technology stops selling.
a.
long tail
b.
life cycle
c.
tornado
d.
chasm
e.
void
4. The American Marketing Association defines ____ as a “name, term, design, symbol, or any other
feature that identifies one seller’s good or service as distinct” from other sellers.
a.
advertising
b.
promotion
c.
brand equity
d.
brand image
e.
brand
5. ____ generally employs a pull strategy, focusing on non-price benefits and targets end-users.
a.
Personal selling
b.
Relationship marketing
c.
Advertising
d.
Promotion
e.
Viral marketing
6. ____ marketing is widely used to describe a marketing strategy that entices customers to pass on the
marketing message to others.
a.
Personal
b.
Relationship
c.
Guerilla
d.
Viral
e.
Complaint
7. ____ Readers provide a way to find out what others are saying about an entrepreneur’s company by
enabling the entrepreneur to subscribe to blogs and podcasts.
a.
RSS
b.
SEM
c.
SEO
d.
Viral
e.
None of these choices
8. ____ is simply a tool for increasing the level of visibility of a website when customers search for
specific key words.
a.
Search engine marketing
b.
Search engine optimization
c.
RSS reader
d.
Both “Search engine marketing” and “Search engine optimization”
e.
Both “Search engine marketing” and “RSS reader”
9. ____, such as banner exchange programs, is/are strategic partnerships intended to increase website
traffic.
a.
Vodcasts
b.
Affiliate programs
c.
Social media
d.
Crowdsourcing
e.
Search engine marketing
10. A/An ____ is one of the best places to meet and negotiate with sales representatives and to gather
contact information for a mailing list.
a.
website
b.
blog
c.
affiliate program
d.
online community
e.
trade show
11. Viewing customers as contributing members of the team rather than a series of transactions is the
essence of ____.
a.
personal selling
b.
customer relationship management
c.
financial planning
d.
market segmentation
e.
traditional marketing
12. One way to stem complaints at the source is to provide ____.
a.
sales promotion
b.
publicity
c.
satisfaction surveys
d.
public relations
e.
complaint forms
13. A living guide to how the company plans to build customer relationships over its life in order to fulfill
the mission statement in the business plan is a ____.
a.
guerrilla plan
b.
marketing schedule
c.
public relations forum
d.
marketing plan
e.
public relations plan
14. All of the following are steps to take prior to writing a marketing plan except ____.
a.
build brand equity
b.
identify core values
c.
define channel strategies
d.
identify a niche
e.
define the message
15. The marketing message or pitch presents the ____ of a product/service as a solution to the problem the
customer is experiencing.
a.
goals
b.
benefit
c.
sales
d.
promotion
e.
None of these choices
16. All of the following are part of the “5 P’s” of marketing except ____.
a.
purpose
b.
product
c.
place
d.
people
e.
promotion
17. ____ marketing mimics the elaborate marketing strategies of larger companies but allows the
entrepreneur to save valuable time and money.
a.
Guerrilla
b.
Relationship
c.
Complaint
d.
Just-in-time
e.
Viral
18. Two of the most effective entrepreneurial marketing tools around, because they do not cost the
company any money, are word-of-mouth and ____.
a.
publicity
b.
advertising
c.
personal selling
d.
service promotion
e.
guerrilla marketing
19. Print (such as newspapers) and broadcast (such as radio) are two categories of ____.
a.
product branding
b.
distribution strategies
c.
traditional advertising
d.
pricing strategies
e.
guerilla marketing
20. An effective news release should contain all of the following except ____.
a.
the release date
b.
the name of the person to contact for more information
c.
a phone number
d.
a customer referral
e.
a descriptive headline
21. ____ combine(s) technology, training, and business strategy in a system for gathering and using
information on current and prospective customers.
a.
Trade shows and exhibits
b.
Online marketing
c.
Customer relationship management
d.
Advertising
e.
Personal selling
22. ____ can be thought of as a bundle of ____ benefits that a company is providing to its customers, and
these benefits reflect the company’s core values.
a.
Management / tangible
b.
Marketing / tangible
c.
Marketing / intangible
d.
Management / intangible
e.
None of these choices
23. About 30,000 new consumer products launch each year and ____ percent of them fail, primarily
because they don’t meet customer needs.
a.
50
b.
60
c.
70
d.
80
e.
90
24. The book Diffusion of Innovations identifies the group of customers who tend to purchase a product
only if they absolutely have to as the ____.
a.
adopters
b.
early majority
c.
late majority
d.
laggards
e.
innovators
25. All of the following factors except ____ are included in the discussion of adoption/diffusion cycles and
the rate at which a new product is adopted across the various customer segments.
a.
usability
b.
perceived benefit
c.
the learning curve
d.
switching costs
e.
relationship marketing
26. On average, a customer will see an ad ____ times before actually purchasing the product.
a.
5 to 10
b.
10 to 20
c.
15 to 20
d.
20 to 25
e.
10 to 15
27. ____ benefits that customers appreciate include such things as access, saving money, saving time,
convenience, and health.
a.
Tangible
b.
Material
c.
Intangible
d.
Niche
e.
Advertising
28. The term ____ refers to a customer’s perceived preference for, and evaluation of, product attributes,
attribute performances, and consequences arising from use that facilitates (or blocks) achieving the
customer’s goals and purposes in use situations.
a.
customer value
b.
customer relationships
c.
customer costs
d.
customer savings
e.
customer satisfaction
29. ____ is a set of decisions about a product’s position in the marketplace.
a.
The marketing plan
b.
A marketing tactic
c.
Brand strategy
d.
Brand building
e.
Brand equity
30. Even though the term ____ has negative connotations, it is widely used to describe a marketing
strategy that entices customers to pass on marketing messages to others.
a.
search engine marketing
b.
viral marketing
c.
affiliate program
d.
word-of-mouth referral
e.
Internet marketing
SHORT ANSWER
1. Define and discuss customer relationship marketing.
2. Briefly discuss some of the effective ways to stem complaints.
3. What are the advantages of trade shows and exhibits?
4. Briefly discuss what it means to become a value-added company.
5. Briefly discuss affiliate programs.
6. What is viral marketing? What do most successful viral marketers do?
7. What should the marketing plan in one paragraph include?
8. Describe the techniques that entrepreneurs can use to improve their personal selling skills.
9. Define marketing and publicity. What is the relationship between the two?
ANS:
10. Define and discuss search engine marketing.