Entrepreneurship Marketing and Customer Development 2 — Questions and Answers
Question 1: What is content marketing?
- Paying for ad placements in magazines and newspapers
- Creating and distributing valuable content to attract and engage a target audience (Correct answer)
- Hiring influencers to promote products
- Designing product packaging to stand out on shelves
Correct answer: Creating and distributing valuable content to attract and engage a target audience
Content marketing involves producing relevant, valuable content—blogs, videos, podcasts—to attract, educate, and retain a defined audience and drive profitable action.
Question 2: What is search engine optimization (SEO)?
- Paying Google to display ads at the top of search results
- Optimizing a website to rank higher in organic search engine results (Correct answer)
- Designing a mobile-friendly website layout
- Creating email campaigns for returning customers
Correct answer: Optimizing a website to rank higher in organic search engine results
SEO is the practice of improving a website's content, structure, and authority to increase its visibility in unpaid search engine results.
Question 3: What is customer lifetime value (CLV or LTV)?
- The price a customer pays on their first purchase
- The total revenue a business can expect from a single customer over the entire relationship (Correct answer)
- The maximum credit limit extended to a customer
- The number of years a customer has been with a company
Correct answer: The total revenue a business can expect from a single customer over the entire relationship
Customer lifetime value estimates the total net profit a business generates from a customer throughout the entire duration of the relationship.
Question 4: What is viral marketing?
- A marketing strategy that uses email spam to reach large audiences
- A technique that encourages customers to share marketing messages, growing reach organically (Correct answer)
- A paid advertising format on social media
- A strategy for marketing health and wellness products
Correct answer: A technique that encourages customers to share marketing messages, growing reach organically
Viral marketing relies on existing customers to spread a message or product recommendation, enabling organic, exponential audience growth at low cost.
Question 5: What does 'churn rate' measure?
- The number of new customers acquired per month
- The percentage of customers who stop doing business with a company in a given period (Correct answer)
- The rate at which employees leave a company
- The speed at which inventory is sold
Correct answer: The percentage of customers who stop doing business with a company in a given period
Churn rate measures the percentage of customers who cancel or stop purchasing during a specific timeframe, indicating customer retention health.
Question 6: What is the marketing mix (4Ps)?
- Price, Promotion, People, Positioning
- Product, Price, Place, Promotion (Correct answer)
- Performance, Profit, People, Process
- Product, Publicity, Placement, Profit
Correct answer: Product, Price, Place, Promotion
The 4Ps of marketing—Product, Price, Place, and Promotion—are the core elements entrepreneurs manage to effectively bring a product to market.
Entrepreneurship Marketing and Customer Development 2
What is content marketing?