Ch 5 Study Guide for Quiz

Which things should you do when doing a competitive analysis? Choose 3.

• Learn the Competitor's Weaknesses and Strengths.

• Discover the competitor's leadership style.

• Learn about the competitors branding.

• Identify who the competitor's customers are.

You want to start a customer loyalty program to keep and reward your customers. Which two programs will work to this end?

• Referral program - give reward for referrals.

• Points Program - earn points towards discounts.

• Annual Sale

• Coupons

The following are customer acquisition costs, choose 3.

• Training Programs

• Affiliate Programs

• SEO Marketing

• Engagement programs

Answer explanation

SEO stands for “search engine optimization.” In simple terms, it means the process of improving your site to increase its visibility when people search for products or services related to your business.

Affiliate marketing program is when you sell somebody else's product online for a commission. For example, an entrepreneur or an established company may have a product or a catalog of products, either digital or physical. They let others promote and sell those products, paying them a commission every time they sell something.  This would be an example of a Customer Acquisition program since you are essentially paying them to get new customers. 

Please choose all true statements about an Online Marketplace. Examples of online Marketplaces are: Amazon, eBay, and Craigslist.

• An online marketplace is an e-commerce site that connects sellers with buyers.

• It’s often known as an electronic marketplace and all transactions are managed by the website owner.

• Companies use online marketplaces to reach customers who want to purchase their products and services.

• Business can reach customers they might otherwise not be able to reach.

• There are no fees associated with Online Marketplaces.

Please choose all benefits to a business that uses an online Marketplace?

• Customer Acquisition

• Competition and Brand Awareness

• Trust Factor

• Little Competition

• No Fees

Answer explanation

Trust factor

Marketplace platforms also have the advantage of the trust factor. Rather than buying from an unknown web store they’ve never heard of, first-time buyers of a new brand feel more at ease buying from a name they know and trust like eBay and Amazon.

So is extending your business to the online world worth the money? Are there really benefits to owning your own e-commerce channel?  Definitely.

Competition and brand awareness

A keyword search on a marketplace site displays your goods and services in a list with other brands and distributors. This kind of high competition could be an advantage for you, depending on how you rank when it comes to pricing and customer reviews

A keyword search on a marketplace site displays your goods and services in a list with other brands and distributors. This kind of high competition could be an advantage for you, depending on how you rank when it comes to pricing and customer reviews.

One of the biggest advantages of using online marketplaces is that they can make it easier to acquire new clients and expand your customer base. Marketplaces help small businesses reach a wider variety of customers who may not have heard of their product otherwise.

What does SEO Stand for and what does it mean?

• SEO stands for “search engine optimization.” it means the process of correcting your site so that all links and information are correct.

• SEO stands for “Salaried Employee Opportunity.” it is offering an employee a Salaried $ position/career.

• SEO stands for “Senior Executive Officer” it means the head of the company, the "boss".

• SEO stands for “search engine optimization.” it means the process of improving your site to increase its visibility when people search for products or services related to your business in a search engine.

Answer explanation

SEO stands for “search engine optimization.” it means the process of improving your site to increase its visibility when people search for products or services related to your business in a search engine.

It cost 5 times as much to attract/acquire *(acquisition) new customers than to keep/retain (retention) an existing customer.

• True

• False

Demographic segmentation describes what customers think about and value, and how they live their lives.

• True

• False

Affiliate programs offer commissions to companies who sell their products.

• True

• False

You need to create a better social media presence for your company. What 2 things should you do?

• Create a TV infomercial

• Use direct mail flyers

• Create email subscriptions

• Create your company profiles on several popular social media platforms.

• Create an online community for customers.