Chapter 3: Test Bank



Chapter 3: Revision Questions

1. The _________ is a blueprint that links the firm’s e-business strategy with technology driven marketing strategies and details the plan for implementation.

a. e-marketing plan

b. business model

c. situation analysis

d. strategic plan

2. The two most common types of e-marketing plans are known as the venture capital plan and the:

a. Nike plan

b. tablecloth plan

c. ad hoc plan

d. napkin plan

3. The equivalent of the napkin plan used by a large company is known as the

a. Nike plan

b. Just-do-it plan

c. Venture capital plan

d. Strategic plan

4. By far the largest source of capital for entrepreneurs is

a. banks

b. friends and family

c. angel investors

d. venture capitalists

5. When selecting an e-business investment venture capitalists are looking for a well composed business plan and

a. sufficient capital

b. a great location

c. c. a good team of people

d. follow through

6. A well composed business plan should contain enough data and logic to prove that

a. the e-business idea is solid

b. the entrepreneur has some idea of how to run the business

c. the entrepreneur has some idea of the costs associated with the business

d. all of the above

7. Venture capitalists expect to

a. get their money out of an investment immediately

b. get their money out of an investment within a few years

c. take over ownership of their investments

d. see a return on every investment they make

8. An initial public offering of a company is viewed by the invested venture capitalist as

a. a golden exit plan

b. a threat to his/her investment

c. a chance to gain a higher percentage of ownership

d. none of the above

9. Situation analysis should review the firm’s

a. environment and SWOT analysis

b. existing marketing plans

c. e-business objectives, strategies and performance metrics

d. all of the above

10. A ___________ is used to identify target stakeholders

a. SWOT Analysis

b. Balanced Scorecard

c. Marketing Opportunity Analysis (MOA)

d. Environment, Strategy and Performance (ESP)

11. The purpose of ______________ is to assist in forecasting segment profitability as well as to find competitive advantages to exploit in the online market.

a. a situation analysis

b. a supply analysis

c. an evaluation plan

d. budgeting

12. In order to decide how online prices will compare to offline equivalents, marketers must consider:

a. differing costs of sorting and delivering

b. competitive concerns

c. market concerns

d. all of the above

13. The strategy of applying different price levels for different customers or situations is known as

a. dynamic pricing

b. online bidding

c. direct marketing

d. agent e-business models

14. Formulating an objective should take into consideration all of the following elements except

a. task

b. measurable quality

c. time frame

d. cost

15. A graphical device that helps marketers better understand their implementation requirements is known as a

a. product matrix

b. objective-strategy matrix

c. business model

d. evaluation plan

16. _________ tactics are especially important to e-marketers because information technologies are especially adept at automating these processes

a. Business process

b. Budgeting

c. Information gathering

d. Evaluation plan

17. During which of the following steps will marketers closely monitor actual revenues and costs to make sure that results are on track for accomplishing the objectives.

a. situation analysis

b. formulating objectives

c. plan implementation

d. strategy formulation

18. Firms consider the money saved through Internet efficiencies

a. soft revenue

b. hard currency

c. profit

d. mark-ups

19. All of the following are e-marketing costs incurred by site developers except

a. technology cost

b. building costs

c. salary costs

d. marketing communication costs

20. Once the e-marketing plan is implemented, its success depends on

a. funding

b. planning

c. continuous evaluation

d. formulating objectives

1. The ad hoc, napkin plan is a sure recipe for failure.

a. True

b. False

2. Since the dot-com crash venture capitalists are unwilling to invest in e-business entrepreneurs.

a. True

b. False

3. A good venture capitalist will nurture a business and be willing to help in times of trouble.

a. True

b. False

4. Feedback mechanisms are a negligible part of the e-marketing plan.

a. True

b. False

5. When planning for e-marketing it is possible and even advisable to build off of existing business and marketing plans.

a. True

b. False

6. The design of tier two strategy development should be done in conjunction with tier one strategies.

a. True

b. False

7. Firms should not attempt to create new brands for the online market; they should stick with current or enhanced products in that channel in order to reap the greatest rewards.

a. True

b. False

8. E-marketing plans must focus on a single objective.

a. True

b. False

9. A strategic plan must identify expected returns from an investment.

a. True

b. False

10. Since intangible benefits of e-marketing are difficult to establish it is often not worth the added expense to tie a financial figure to these benefits.

a. True

b. False

Essay

1. In the creation of an e-marketing plan what are the advantages and draw backs of both the napkin plan and the venture capital plan?

2. In your own words, what is the argument for the distinction between tiers one and two of the e-marketing strategies? Make sure to define the elements of each tier.

3. What are some of the typical objectives of e-marketing plans?

4. What are some of the intangible benefits of e-marketing strategies and how can financial figures be tied to these benefits?

5. Use the web to research companies that use dynamic pricing. How profitable is it and what are some of the potential drawbacks of this pricing method?

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