Entrepreneurship Marketing and Customer Development

Question 1

What is market segmentation?

Accepted Answer

Dividing a target market into distinct subgroups with similar needs or characteristics

Answer

Market segmentation divides a broad market into smaller groups of consumers with shared characteristics so businesses can tailor their marketing effectively.

Question 2

What does 'customer acquisition cost' (CAC) measure?

Accepted Answer

The total cost of sales and marketing divided by the number of new customers acquired

Answer

CAC is the average cost a business spends on sales and marketing to acquire each new customer.

Question 3

What is a 'customer persona'?

Accepted Answer

A fictional representation of an ideal customer based on research and data

Answer

A customer persona (or buyer persona) is a semi-fictional profile representing your ideal customer, built from demographic data, behaviors, and motivations.

Question 4

What is the 'customer journey'?

Accepted Answer

The complete experience a customer has from first awareness through purchase and beyond

Answer

The customer journey maps every touchpoint a customer has with a brand—from first awareness to purchase, use, and loyalty—to identify opportunities for improvement.

Question 5

What does 'brand positioning' mean?

Accepted Answer

How a brand differentiates itself and occupies a distinct place in the minds of target customers

Answer

Brand positioning is the strategic process of defining how a brand should be perceived in relation to competitors in the minds of target customers.

Entrepreneurship Practice Test

Entrepreneurship Practice Test

Entrepreneurship Marketing and Customer Development