Entrepreneurship B MId Term Review

Network marketing relies on distributors at multiple levels.

• True

• False

Answer explanation

Network marketing involves a structure where distributors operate at various levels, allowing them to earn commissions not only on their sales but also on the sales made by their recruits. Therefore, the statement is True.

On a positioning map, what do the x and y axes represent?

• components of the marketing mix

• multiple levels of distribution

• customer communication strategies

• dimensions of customer perceptions

Answer explanation

On a positioning map, the x and y axes represent dimensions of customer perceptions, illustrating how customers view different products or brands relative to each other.

Which equation is used to determine a company's market share?

• business sales divided by industry sales

• direct sales multiplied by product sales

• total customers divided by total products

• market share divided by total customers

Answer explanation

The correct equation for determining a company's market share is 'business sales divided by industry sales'. This formula calculates the proportion of a company's sales relative to the total sales in its industry.

Knecht Home Centers sells its products and services to which markets?

• only consumer markets.

• neither consumer nor industrial markets.

• only industrial markets.

• both consumer and industrial markets.

Answer explanation

Knecht Home Centers serves both consumer and industrial markets, offering a range of products and services suitable for individual customers as well as businesses, making the correct choice 'both consumer and industrial markets'.

Julia is creating a detailed profile of the ideal customer for her meal prep delivery service. What is Julia creating?

• customer persona

• marketing mix

• unique selling proposition

• positioning statement

Answer explanation

Julia is creating a customer persona, which is a detailed representation of her ideal customer. This helps her understand their needs and preferences for her meal prep delivery service.

When Carter decided to start a luxury cologne company, he hired a wealthy aristocrat from France as his primary spokesperson. Which aspect of the marketing mix does this action focus on?

• Positioning

• Price

• Unique selling proposition

• Personal selling

Answer explanation

Carter's choice to hire a wealthy aristocrat as a spokesperson emphasizes positioning, as it aims to associate the cologne with luxury and prestige, appealing to a target market that values high-status endorsements.

Which type of customer segmentation includes climate, city size, and population density?

• Behaviorgraphics

• Demographics

• Psychographics

• Geographics

Answer explanation

Geographics is the type of customer segmentation that focuses on location-based factors such as climate, city size, and population density, making it the correct choice for this question.

Garrett decided to stand in front of his barbecue restaurant wearing a sandwich sign. Which term BEST describes this activity?

• advertising

• personal selling

• sales promotion

• public relations

Answer explanation

Garrett's use of a sandwich sign in front of his restaurant is a form of advertising, as it promotes his business to passersby. This activity aims to attract customers and increase awareness of his barbecue restaurant.

A group of people who were born and lived during the same time period are known as a

• bunch of old people

• generation

• I have no idea

Answer explanation

A group of people born and living during the same time period is referred to as a 'generation.' This term captures the shared experiences and characteristics of individuals within that time frame.

Which is an example of a business selling to a consumer market?

• a coffee shop selling drinks to college students

• an online accounting company that sells consulting services to its business clients

• a bakery supply company that sells premixed ingredients to local bakeries

• a catering company that specializes in corporate event planning

Answer explanation

A coffee shop selling drinks to college students is a clear example of a business targeting the consumer market, as it directly sells products to individual customers for personal use.