Marketing Issues for Entrepreneurs

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Questions and Answers

What is the main advantage of using Google AdWords for advertisers?

It is entirely free for advertisers.

It allows ads to be shown to users who are searching for relevant products. (correct)

It only targets local customers.

It guarantees a high volume of sales.

How are advertisers charged when using Google AdSense?

Based on the number of social media shares.

Per click or per thousand impressions. (correct)

A flat monthly fee.

By subscription plan only.

What distinguishes public relations from traditional advertising?

Public relations does not have direct costs associated with it. (correct)

Public relations is always more expensive than advertising.

Public relations directly pays for placement of ads.

Public relations focuses only on digital campaigns.

Which statement is true about Google AdWords?

It shows ads on Google’s home page based on keyword searches. Signup and view all the answers

What is the primary benefit of using public relations as a promotional activity?

It helps to establish and maintain a company's public image. Signup and view all the answers

Under what circumstance would an advertiser choose to use Google AdSense?

When they prefer to reach audiences on various websites relevant to their product. Signup and view all the answers

What is a common misconception about the costs of Google AdWords?

It guarantees top placement in search results. Signup and view all the answers

Which option best describes the nature of advertisements under Google AdWords?

They are linked to keywords used in searches. Signup and view all the answers

What is the primary purpose of blogging within social media for businesses?

To familiarize people with a business Signup and view all the answers

Which of the following best describes guerrilla marketing?

An approach relying on creativity and surprise Signup and view all the answers

What is a significant consideration when deciding on the distribution of a product?

Whether to sell directly or through intermediaries Signup and view all the answers

What is the primary goal of viral marketing?

To encourage sharing of a marketing message Signup and view all the answers

How do businesses typically use Facebook and Twitter in their marketing strategies?

To build communities around their products Signup and view all the answers

Which technique is focused on passing along a marketing message efficiently?

Viral marketing Signup and view all the answers

What should businesses consider when establishing a presence on social media?

Ways to build an emotional bond with customers Signup and view all the answers

What aspect of place (distribution) directly impacts a firm's selling strategy?

The choice of selling directly or via intermediaries Signup and view all the answers

What primarily determines the list price in cost-based pricing?

A markup percentage added to the product’s cost Signup and view all the answers

In value-based pricing, how is the list price determined?

By estimating what consumers are willing to pay Signup and view all the answers

What is one disadvantage of advertising as a promotional activity?

It has low credibility among consumers Signup and view all the answers

Which of the following is NOT a common promotional activity that entrepreneurs use?

Legal compliance Signup and view all the answers

What is a potential downside of advertising in terms of message delivery?

Message clutter in a crowded marketplace Signup and view all the answers

What message does Oakley convey by charging premium prices for their sunglasses?

Their products are innovative and state-of-the-art Signup and view all the answers

Which of the following is a common goal of advertising?

To explain a product's features and benefits Signup and view all the answers

What is a key characteristic of promotional pricing strategies?

They primarily focus on short-term sales boosts Signup and view all the answers

Study Notes

Unique Marketing Issues for Entrepreneurship

Entrepreneurial firms use a three-step process to identify customers: segmenting the market, selecting a target market, and establishing a unique marketing position.
Defining a brand is critical to a firm's marketing efforts. A brand is a promise, a guarantee of performance, and an indicator of trust and reduced risk.
The 4Ps of marketing activities used by entrepreneurial firms are Product, Price, Promotion, and Place (distribution).
The seven-step sales process used by entrepreneurial firms identifies prospects and closes sales.
Start-ups need to define their target customers to succeed.
Segmenting the market involves identifying groups of customers who share similar needs and preferences.
Selecting a target market is choosing the specific group of customers that a firm will focus on.
Establishing a unique position involves differentiating the firm from its competitors in the minds of customers.
Market segmentation includes product type, geography (city, state, region), and demographic variables.
A strong brand is a valuable asset, increasing the market value of a company by 50-75%.
Over 50% of consumers say a known and trusted brand influences their purchase decisions.
Brands allow companies to charge prices consistent with their image.
The product a firm offers is crucial, with the initial rollout being critical.
Reference accounts, early users who provide testimonials, are helpful for new-product marketing.
A product encompasses the good or service offered and its various attributes.
Entrepreneurs use cost-based or value-based pricing to set prices.
Cost-based pricing determines the price by adding a markup to the product's cost.
Value-based pricing estimates the price by considering what customers are willing to pay.
Promotion communicates a product's value to the target market, including advertising, public relations, and social media.
Advertising raises awareness, explains features, and connects products to lifestyles.
Effective advertising involves identifying the ad's purpose, target audience, medium, placement, ad creation, and fulfilling customer expectations.
Google AdWords and AdSense programs allow advertisers to buy keywords and place ads on different platforms.
Advertisers pay for ads based on click-throughs or impressions.
Public relations is a cost-effective strategy to build and maintain a company's public image.
It uses techniques like press releases, social media, blogging, and community involvement.
Social media, including Facebook and Twitter, provides a platform for connecting with customers and building a community around a product.
Viral marketing encourages the spread of marketing messages through users' networks, while guerrilla marketing is a lower-budget approach that uses cleverness and surprise.
Place (distribution) encompasses the activities in moving a product from production to the consumer. Businesses must decide whether to sell directly to consumers or through intermediaries (like wholesalers and retailers).
The decision to sell directly or through intermediaries depends on how a firm believes its target market wants to purchase products.
The sales process outlines the steps involved in identifying prospects and closing sales.
A formal sales process is recommended in order to generate higher prospects and close sales.
Useful steps include prospecting, contacting, qualifying leads, presentation, meeting objections, closing the sale, and follow-up.

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Description

This quiz explores unique marketing challenges faced by entrepreneurial firms. It emphasizes the importance of market segmentation, target market selection, brand definition, and the 4Ps of marketing. Understand how these concepts apply to start-ups and their strategic marketing positioning.