SBA Marketing Techniques & Customer Relations 3 — Questions and Answers
Question 1: A small retailer wants to increase average order value. Which tactic directly addresses this goal?
- Reducing advertising spend
- Offering product bundles at a slight discount (Correct answer)
- Expanding store hours
- Hiring additional cashiers
Correct answer: Offering product bundles at a slight discount
Product bundling encourages customers to purchase more items together, increasing the average order value while providing perceived savings.
Question 2: Which digital marketing approach delivers the highest average ROI for small businesses, according to industry benchmarks?
- Display advertising
- Email marketing (Correct answer)
- Podcast sponsorships
- Banner ads
Correct answer: Email marketing
Email marketing consistently delivers one of the highest ROIs among digital channels, with industry estimates often citing $36-42 returned for every $1 spent.
Question 3: A business uses demographic, geographic, psychographic, and behavioral data to divide its market. This process is called:
- Market positioning
- Market segmentation (Correct answer)
- Market penetration
- Market cannibalization
Correct answer: Market segmentation
Market segmentation divides a broad target market into subsets of consumers with common needs so the business can tailor its marketing approach.
Question 4: What is a key advantage of content marketing over traditional advertising for small businesses?
- It delivers immediate, guaranteed sales results
- It builds long-term audience trust and generates organic traffic over time (Correct answer)
- It requires no upfront investment
- It eliminates the need for a sales team
Correct answer: It builds long-term audience trust and generates organic traffic over time
Content marketing builds credibility and attracts organic search traffic over time, providing compounding returns unlike paid ads that stop when spending stops.
Question 5: When a business collects customer feedback after a service interaction, this is known as:
- Pre-sale qualification
- Post-purchase follow-up or after-action survey (Correct answer)
- A/B testing
- Competitive benchmarking
Correct answer: Post-purchase follow-up or after-action survey
Post-purchase follow-up surveys collect customer feedback after a transaction to measure satisfaction and identify improvement opportunities.
Question 6: A small business offers existing customers a discount for referring new customers. This is an example of:
- Push marketing
- A referral or word-of-mouth marketing program (Correct answer)
- Inbound marketing
- Direct response advertising
Correct answer: A referral or word-of-mouth marketing program
Referral programs incentivize existing customers to bring in new ones, leveraging word-of-mouth marketing which is highly trusted by consumers.
Question 7: In the customer journey, the 'awareness' stage is best addressed by:
- Offering loyalty rewards to repeat buyers
- Creating educational content and broad-reach advertising (Correct answer)
- Sending reorder reminders via email
- Providing post-purchase customer support
Correct answer: Creating educational content and broad-reach advertising
The awareness stage requires broad-reach tactics like SEO content, social media, and advertising to help potential customers discover the business for the first time.
SBA Marketing Techniques & Customer Relations 3
A small retailer wants to increase average order value.
Which tactic directly addresses this goal?