NPTEL Online Certification Courses

Indian Institute of Technology Kharagpur

Entrepreneurship Essentials
Assignment- Week 3
TYPE OF QUESTION: MCQ/MSQ
Number of questions: 10 Total mark: 10 X 1 = 10
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Question 1:
Which of the following statements concerning marketing research is correct?
a. Marketing research is relevant when the enterprise is ready with their product and is
planning to go to market the product.
b. Primary market research can be performed by designing a suitable questionnaire.
c. An enterprise does marketing research even before they develop the product and
marketing research continues as long as the product exists.
d. The company should do marketing research when it reaches to the saturation stage so
that they can find new customers to achieve further growth.
Answer: c
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Detailed solution
Marketing begins even before you decide what business to start. You identify a 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 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 product or
service 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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Question 2:
Which of the following statements concerning marketing research is correct?
a. Secondary data can be organized in-house through a questionnaire survey.
b. Secondary market research (gathering secondary data) is quicker than primary market
research.
c. Data obtainable from secondary sources helps to understand the unique needs of the
customers.
d. Secondary research (gathering secondary data) involves personal interviews with the
potential customers, and thus, is costlier than primary data collection.

ANSWER: b
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Detailed solution
Secondary research is to collect data from available/existing sources that have already been
collected by someone or some organization for some purpose other than the present context. One
can access these data immediately without requiring any activity. Therefore, secondary market
research is quick and cheap.
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QUESTION 3:
Which of the following is NOT part of the secondary sources of data?
a. Survey
b. Census data.
c. Data collected by government agencies.
d. Newspaper.

Correct Answer: a
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Detailed Solution:

Survey data are primary source of data as these are collected for specific purpose. Census data are
for election or consumption of government and thus are secondary data for any other agency. So
are data collected by government agencies. The company that uses the data is 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. 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.
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QUESTION 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 barrier for new entrants and
limited pricing power.
c. Monopolists have unique and simple type of products with great barrier for new entrants.
d. Companies in a perfect competition market have high pricing power and high entry barriers
against competition.

Answer: d
Detailed Solution
Perfect competition market has many sellers and many buyers. If one of the sellers increases the
price, customers will go to another seller. They do not have pricing power and do not enjoy entry
barrier. A new venture can easily enter into that market. Oligopolistic market has limited number
of sellers with product differentiations. Because of the differentiations, they enjoy some pricing
power with limited chance of losing customers for price increase. New entrant find it very
difficult enter into an oligopolistic market. There can be no doubt that monopolists have unique
and simple product with no competition.
QUESTION 5:
You are targeting a market with potential size of ₹50 crore within your geographical reach and in
the exact segment that you would like to serve. The size of the aggregate market, including all
sub-segments, 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 crore, ₹ 250 crore & ₹ 1000 crore

b. ₹ 250 crore, ₹50 crore, ₹ 1000 crore
c. ₹ 1000 crore, ₹250 crore, ₹50 crore
d. ₹ 1000 crore, ₹50 crore, ₹ 250 crore
Correct Answer: d
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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 crore), SOM is the portion of the market you can
potentially serve (50 crore).
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QUESTION 6:
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 7:
Difference between the use of ‘public relation’ and ‘advertisement’ in marketing. Choose the
best answer.

a. Public relation is creation of awareness and is associated with the term ‘content
marketing’.
b. Public relation is creation of awareness through social media.
c. Message can be sharper and more focused on the values of the product or service in case
of advertisement than public relation.
d. Advertisement content is filtered through a reporter.

Correct answer: c
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Detailed solution

Use of public relations for creation of awareness is done through articles in print and other media
filtered through a reporter or journalist. A good example is the article about Warby Parker in the
Vogue journal with the heading “The Netflix of Eye Wear” that attracted overwhelming response
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from people at large. Advertisement is paid media. Therefore, one can literally mention granular
details of the value proposition and whatever message one thinks appropriate.

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Question 8
Choose the right answer: Marketing funnel or sales funnel is
a. A logistic funnel through which products make their journey from the factory to the
customers.
b. It is the channel through which marketing and sales personnel are promoted to higher
position based on their performance and company sales.
c. It is the journey of a prospect to become a customer helping a venture to formulate
strategies for customer acquisition.
d. It is the model for determining sales or revenue of an enterprise.

Correct answer: c
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Detailed Solution:

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

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QUESTION 9:
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:

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.
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They made customers aware of the benefits of hugs and in the process customers chose their
products.

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QUESTION 10:
Which of the following purpose is not directly fulfilled by market segmentation?

a. To understand the customers, their unique requirements, and liking better

b. To understand competitors, their offerings, and pricing strategies
c. Understand market size, growth, and how to position your product
d. It helps to understand competition and the demand-supply gap

Correct Answer: b
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Detailed solution
Segmentation does not have a direct relationship with competitors. Segmentation helps to
understand the customers better and helps to design the product to meet specific needs.
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