ENT3003 EXAM 2 STUDY GUIDE: KEY CONCEPTS AND

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ENT3003 EXAM 2 STUDY GUIDE: KEY CONCEPTS AND

DEFINITIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -100 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Market sizing

Answer:

is a method of estimating the number of potential customers and possible revenue or profitability of a product or service. It is important for investors to see that you have thought through the size of the market you intend to target. If you cannot prove that you have a good chance of penetrating the local market, then they will be unable to see the growth potential of your business.

Question 2: Innovation

Answer:

create a whole new market in which new customers are offered a new product or service

Question 3: How do you move from a start-up to a scalable business?

Answer:

requires evidence that is gathered from talking to people, investigating and asking lots of questions, testing assumptions, iterating, and learning continuously.

Question 4: Imitation

Answer:

Existing customers for existing products or services

Question 5: Experimentation template

Answer:

What is the hypothesis?What is the pass/fail metric?Who are the participants in the experiment?How many participants are needed?How are you going to get participants?How will the experiment be run?How long is the experiment?

Question 6: Consumer

Answer:

Customers become consumers when they actually use the product or service.

Question 7: Main street

Answer:

Following the tornado, your business is likely to enter a period of calm. Your product has proven to be a success in the market and has been widely adopted. However, there is still work to be done. Now is the time to leverage your market position by further enhancing your offering to ensure that your customers do not switch to a competitor.

Question 8: The infrastructure

Answer:

generally includes all the resources (people, technology, products, suppliers, partners, facilities) that an entrepreneur must have in order to deliver the CVP.

Question 9: End user profile

Answer:

-demographics -psychographics -proxy product -watering holes -day in the life -biggest fears and motivators.

Question 10: customer value proposition (CVP)

Answer:

-which describes why a customer should buy and use your product or service. The "value" part of the CVP means how much your product or service is worth to your customers.-For instance, it might only cost a plumber $40 to fix a burst pipe at a customer's house ($5 for travel, $5 for materials, and $30 for an hour's labor), but the value to the customer for having the problem fixed is far greater, which is why the plumber can afford to charge more -Perhaps the most important part of your business model

Question 11: Day in the life

Answer:

One of the most useful ways entrepreneurs can create a profile of their end users is to walk in their shoes for a day. This method is particularly effective after you have spent some time observing and talking to a group of end users. Creating this real-world story puts all the data into perspective and provides a deeper insight into the behavior of your potential customers. As serial entrepreneur Les Harper says, "If you can get into their shoes and see their needs from their point of view, then you can take your experience and your entrepreneurial drive and really satisfy them."

Question 12: Social capital

Answer:

which refers to our personal social networks populated with people who willingly cooperate, exchange information, and build trusting relationships with each other. Like physical capital (materials) and human capital (skills and knowledge), social capital is a productive asset. In other words, it's valuable.

Question 13: Structural dimension (social capital)

Answer:

The structural dimension describes the components of your network, such as the type of social ties you may or may not have (i.e., the contacts in your network) and the degree to which these ties may be formal or informal.

Question 14: Segmented market

Answer:

is divided into groups according to customers' different needs and problems. For example, a bank might provide different services to its wealthier clients than to people with an average income, or offer different products for small versus large businesses. Segmenting customers is a good way of generating more business.

Question 15: 3 factors that define a beachhead market

Answer:

-The customers in that market buy similar products.-Those customers have similar expectations of value.-The customers use word of mouth to communicate to others in similar regions or professional organizations.

Question 16: Disruption

Answer:

Existing customers are offered new product or service

Question 17: Demographics

Answer:

Demographics are useful data in identifying your target end user, but they may not be entirely accurate when it comes to understanding your end user. For example, if you find out that your end users are all men in their 30s living in a particular geographic location, it doesn't tell you much about their attitudes or likes and dislikes. It is important to analyze demographics, but don't place too much emphasis on them.

Question 18: Problem

Answer:

Startups too often build something that doesn't solve a problem, so problem understanding and validation is essential. If you already have a product or service in mind, then what is the problem you are solving for your customers? Is it a big enough problem? Conversely, start with the problem first, validate it's an actual problem, and then create a solution.

Question 19: Advertising

Answer:

Advertising involves spreading the word about your business using brochures or social media directed to your relevant target market and assessing the level of response.

Question 20: MVP (minimum viable product)

Answer:

An MVP is a version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort. In other words, entrepreneurs need to build products that have the most important features and benefits without overbuilding. Overbuilding a product wastes precious resources that entrepreneurs don't have in the startup stage