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Indian Institute of Technology Kharagpur

Entrepreneurship Essentials
Assignment- Week 3
TYPE OF QUESTION: MCQ/MSQ
Number of questions: 15 Total mark: 15 X 1 = 15
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Question 1:
In the life-cycle of a new enterprise, when is ‘marketing research’ relevant?
a) When the enterprise is ready with their product and is ready to go to market, and it is
relevant till the product find acceptance by the customers.
b) When the company finds it difficult to find customers they should do marketing research
to reach out to acquire new customers and grow the business.
c) The company should do marketing research when it reaches the saturation stage so that it
can find new customers to achieve further growth.
d) Starting from the idea stage till the end of the company.
e) Beginning from the idea to the time when the company is in the growth phase.
Answer: d
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Detailed solution
Marketing research begins even before you decide what business to start. You identify pain in a
group of people or enterprises. You think that you can come up with a solution that is far
superior compared to whatever is available. Before taking any action forward you would like to
know what customers think about such a solution and what is the size of the market and the
affordability of the target customers so that you can start investing time and money on it. You
want to do market research to know it.
Marketing research is about understanding why customers buy or do not buy certain products or
services and what should be done to improve product-market-fit. Therefore, market research is
relevant at every stage of an enterprise beginning from the idea stage till the time an enterprise
exists.
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2. Which of the following statements concerning marketing research is correct?

A. Secondary data can be organized in-house through a questionnaire survey.
B. Data obtainable from secondary sources are used for in-depth analysis of market
acceptance of a product.
C. Secondary research (gathering secondary data) involves personal interviews with
potential customers, and thus, is costlier than primary data collection.
D. Secondary market research (gathering secondary data) is quicker than primary research.
E. The primary market research (primary data collection) is often a useful precursor to
secondary research.

ANSWER: d
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Detailed solution
Secondary research is to collect data from available sources that are already collected by
someone or some organization for whatever purpose and not originating any process to gather
data for the first time. Therefore, secondary market research is quick and cheap.
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QUESTION 3:
Which of the following is NOT part of the primary sources of data?
a) Survey
b) Questionnaire through the internet.
c) Focused group and interviews thereof.
d) Newspaper.
e) Observation

Correct Answer: d
Detailed Solution:

A newspaper publishes data either from existing sources or make their own research and then
make it available to the public at large, particularly those who purchase the newspaper. The
company that uses the data is in no way connected to the data collection process neither they
order the newspaper owners to collect the data for the company. Therefore, such data sources are
called secondary source and NOT a primary source.
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4. Select the INCORRECT statement.

A. Markets with perfect competition have homogenous products without any pricing
power.
B. Oligopolistic markets have differentiated product types with high barriers for new
entrants and limited pricing power.
C. Companies in a perfect competition market have high pricing power and high entry
barriers against competition.
D. Monopolists have simple types of products with great barriers for new entrants.
E. A perfect competition market exerts hardly any resistance to new entrants.

ANSWER: C
Question 5
Which of the following is NOT true?
a) Growth is the most important for the success of the business and the higher the growth
better it is.
b) Premature growth may ruin your business and waste your resources.
c) Growth without support by product-market-fit may not be sustainable.
d) Startups take the help of growth hackers to achieve super growth.
e) Create a viral loop, choose the right growth engine, and leverage everywhere including
marketing to achieve high growth.
Answer: a
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Detailed solution
Growth is very important for entrepreneurial ventures. However, growth alone is not good
enough for success. So, higher growth per se may not bode well. Premature growth may ruin
your business and waste your resources. Growth without support by product-market-fit may not
be sustainable. Startups take the help of growth hackers to achieve super growth. Create a viral
loop, choose the right growth engine, and leverage everywhere including marketing to achieve
high growth.
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Question 6
Which of the following is NOT correct about marketing mix?
a) Marketing mix includes ‘product’ and it focuses on the product-market-fit, competitive
advantage in terms of differentiators, quality, efficacy, branding, and such.
b) Marketing mix includes ‘process’ and it includes how the process technology can help
the company to optimize resources and offer the best value for the customers’ money.
c) Marketing mix includes ‘promotion’ including advertisement, public relation, social
network, content marketing, and more.
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d) Marketing mix includes ‘place’ such as delivery channels, purchase & payment method,
and after-sales services.
e) Marketing mix includes ‘pricing’ to enhance sales by offering a competitive price, easy
payment terms, bundle offer, etc.
Answer: b
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Marketing mix does not include ‘Process’. It consists of ‘Product’, ‘Place’, ‘Promotion’, and
‘Price’
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QUESTION 7:
You have come up with an idea for a new product and would like to understand whether it can be
transformed into a new business. The first thing you are interested in is to understand whether the
target market actually needs this product. Which of the following market research you should adopt?
[Hint: you do not want to spend a fortune doing the market research and you really do not need to be
too accurate at the early stage when the company has not yet developed the product]

a) By source: primary, by method: quantitative, by objective: descriptive

b) By source: primary, by method: quantitative, by objective: exploratory
c) By source: primary, by method: qualitative, by objective: descriptive
d) By source: secondary, by method: quantitative, by objective: descriptive
e) By source: secondary, by method: qualitative, by objective: exploratory

Correct Answer: e

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Detailed Solution:

At the early stage, you are not sure if you will really take up this business. You do not want to spend a lot
of money at this stage. Secondary data are cheap, and available immediately, and you want to get some
rough idea, which is exploratory in nature. Since you are relying on secondary data, information may be
qualitative or quantitative in nature. Therefore, option ‘e’ is the most appropriate.
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QUESTION 8:
You have a business of manufacturing and selling bread. Now, you want to diversify your product range.
You think that customers are interested in sugar-free sweet bread. However, before investing in all
infrastructure for manufacturing and going to market with the sugar-free sweet bread, you want to get
real data on consumer preferences. So, you want to commission a market research to know this for
sure. Which of the following you will adopt?
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a) By source: primary, by method: quantitative, by objective: descriptive

b) By source: primary, by method: quantitative, by objective: exploratory
c) By source: primary, by method: qualitative, by objective: descriptive
d) By source: secondary, by method: quantitative, by objective: descriptive
e) By source: secondary, by method: qualitative, by objective: exploratory

Correct Answer: a

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Detailed Solution:

For taking a decision to launch a very special product, you need to get the data correct. So, you need to
collect real data from real customers who are supposed to eventually buy this product. You would also
like to have some quantitative estimates to plan the manufacturing capacity. So, you need primary
quantitative data that describe the market well.
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Question 9
Which of the following combination is INCORRECT?
a) Product = customer solution that relieves their pain
b) Place = Communicate with customers and deliver the goods or services.
c) People = the product-market-fit and try alleviating the pain as far as possible.
d) Promotion = Convenience to the customer.
e) Price = Cost to the customers or pain to the customers.
Answer: c
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Detailed solution
People are not part of the product mix.
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QUESTION 10:
You are targeting a market with a potential size of ₹50 crores within your geographical reach. The size of
the market in the whole country is ₹1000 crore. The size of the market in the market segment that you
cater to in the whole country is ₹250 crore.
What are TAM, SOM, & SAM

a. ₹50 crores, ₹ 250 crores & ₹ 1000 crore

b. ₹ 250 crores, ₹50 crores, ₹ 1000 crore
c. ₹ 1000 crore, ₹50 crores, ₹ 250 crore
d. ₹ 1000 crore, ₹250 crores, ₹50 crore
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e. ₹50 crores, ₹ 1000 crore, ₹250 crore

Correct Answer: c
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Detailed Solution:

TAM is the total demand in the entire market (1000 crore), SAM is the total demand in the
particular segment of the entire market (250 crores), SOM is the portion of the market you can
potentially service (50 crores).

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QUESTION 11:
Which is the right chronological order of the process of customer acquisition through the sales
funnel?

a) Interest, awareness, consideration, intent, evaluation, purchase

b) Consideration, awareness, Interest, intent, evaluation, purchase
c) Awareness, interest, consideration, intent, evaluation, purchase
d) Intent, awareness, Interest, consideration, evaluation, purchase
e) Evaluation, awareness, interest, consideration, intent, purchase

Correct Answer: c

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Detailed Solution:

Awareness, interest, consideration, intent, evaluation, purchase is the correct order.

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QUESTION 12:
Difference between ‘public relation’ and ‘advertisement’. Choose the best answer.

a. Public relation is the creation of awareness and is associated with the term ‘content
marketing’.
b. Public relation is awareness creation through free media, advertisement is a paid media.
c. Public relation is the creation of awareness through social media.
d. People trust advertisement more than public relation initiative.
e. Advertisement content is filtered through a reporter.
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Correct answer: b
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Detailed solution

The use of public relations for the creation of awareness is done through articles in print and
other media filtered through a reporter or journalist. A good example is an article about Warby
Parker in the Vogue journal with the heading “The Netflix of Eye Wear” that attracted an
overwhelming response from people at large.

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Question 13
Marketing or sales funnel is
a. Channel of step-wise customer acquisition
b. Channel for market segment identification
c. A funnel for innovative marketing strategy
d. A funnel for evaluation of customer satisfaction
e. A logistic funnel through which products make their journey from the factory to the
customers.
Correct answer: a
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Detailed Solution:

Marketing or sales funnel is a chronological step for customer acquisition.

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QUESTION 14:
The storytelling example of Huggies is about______________
a) Online marketing
b) Social media marketing
c) Content marketing
d) Public Relation marketing
e) Marketing through messaging

Correct Answer: c
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Detailed Solution:
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Content marketing is about making customers aware of the various features of a product in
general or about the subservient benefits. In a way, it aims to empower customers with
information to make informed decisions while choosing a product. Huggies did exactly this.
They made customers aware of the benefits of hugs and in the process, customers chose their
products.

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QUESTION 15:
The purpose of market segmentation?

a) To understand the customer better

b) To create product differentiation
c) Understand market size
d) It helps to understand competition and the demand-supply gap
e) All of the options are true

Correct Answer: e
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Detailed solution
Segmentation is done for the purposes mentioned under all the options.
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