Question 1

The ________ is the ratio of the market share index to the share potential index.

Accepted Answer

The Share Development Index (SDI) is the correct answer because it is a measure used in marketing to assess the sales performance of a product or brand in a specific market, calculated as the ratio of the market share index to the share potential index. This helps businesses understand their position relative to the total potential in the market.

Question 2

Which of the following is a factor used to determine the share potential index?

Accepted Answer

The answer of Which of the following is a factor...

Question 3

Lucy has determined that along the share-development path,her business should perform at a 74% level of product awareness,68% in product preference,92% in intentions to purchase,and 85% in rate of purchase.If the share potential index for Lucy's business is 18%,at what level of product availability should her business perform?

Accepted Answer

The answer of Lucy has determined that along the share-development...

Question 4

Which of the following fundamental offensive strategic market plans is most likely be pursued in the core strategy of invest to enter new markets?

Accepted Answer

The core strategy of invest to enter new markets typically focuses on developing new markets. This could involve identifying new geographic regions that the company has not yet entered or identifying new customer segments that the company can target. The emphasis is on expanding the company's reach and growing its customer base.

Question 5

Maurice has determined that along the share-development path,his business should perform at a 90% level of product awareness,80% in product preference,50% in intentions to purchase,80% in product availability,and 70% in rate of purchase.What is the approximate share potential index for Maurice's business?

Accepted Answer

The answer of Maurice has determined that along the share-development...

Question 6

A business with a share development index equal to 45 means that the business ________.

Accepted Answer

Share development index (SDI) shows the potential market share that a business can achieve in a specific market. If the SDI is 45, it means that the business has achieved only 45 percent of its potential market share.

Question 7

Norton has determined that along the share-development path,his business should perform at an 85% level of product awareness,76% in product preference,68% in product availability,and 92% in rate of purchase.If the share potential index for Norton's business is 25%,at what level of purchase intentions should his business perform?

Accepted Answer

The answer of Norton has determined that along the share-development...

Question 8

Martha has determined that along the share-development path,her business should perform at a 91% level of product awareness,73% in product preference,86% in intentions to purchase,and 76% in product availability.If the share potential index for Martha's business is 26%,at what level of purchase rate should her business perform?

Accepted Answer

To determine the required level of purchase rate, we need to multiply the share potential index with the levels of product awareness, product preference, intentions to purchase, and product availability.

Required purchase rate = Share potential index x product awareness x product preference x intentions to purchase x product availability
Required purchase rate = 0.26 x 0.91 x 0.73 x 0.86 x 0.76
Required purchase rate = 0.104 or 10.4%

Therefore, Martha's business should perform at a level of purchase rate of 60% (closest to 10.4%) to achieve its share potential index of 26%. The correct answer is option D - 60%.

Question 9

A business's market share is 6% and it has a share development index of 72.Calculate its share potential index.

Accepted Answer

The answer of A business's market share is 6% and...

Question 10

The growth in the gaming console market led to the emergence of a gaming consoles segment for products priced under $1,000.Though its current product line-up begin at $3,000,Sentinel Inc. ,an American gaming equipment manufacturer,responded to this need by launching a product,the Cerebro Console,priced at $920,designed for the price-performance needs of the segment.Which of the following offensive strategies did Sentinel Inc.use?

Accepted Answer

Sentinel Inc. launched a product targeting a new market segment for gaming consoles priced under $1,000. This indicates that the company used the offensive strategy of entering new market segments.

Question 11

A firm uses a core offensive strategic market plan of investing to improve competitive position.The strategic objective of the firm is to improve margins.Which of the following strategies is the firm most likely to use?

Accepted Answer

The firm's core offensive strategic plan of investing to improve competitive position implies that it aims to strengthen its position in its existing market. Improving marketing productivity would help the firm generate more revenue from its existing customers and also attract new customers, thereby improving its competitive position and margins. Conversely, reducing market focus, harvesting for cash flow, entering unrelated new markets, or divesting for cash flow would not necessarily improve the firm's competitive position or margins.

Question 12

Delta Motors,an American multinational automaker,was the first company to develop an affordable electric car.Delta Motors aimed to diversify its growth by launching an environment-friendly,affordable electric car.Which of the following offensive strategies is Delta Motors pursuing?

Accepted Answer

Delta Motors is pursuing an offensive strategy called "enter related new market segments." By developing an affordable electric car, they are entering a new market segment related to their current business. This strategy aims to grow and diversify the company's revenue streams while leveraging their existing capabilities and resources.

Question 13

Victor has determined that along the share-development path,his business should perform at a 90% level of product awareness,75% in intentions to purchase,75% in product availability,and 65% in rate of purchase.If the share potential index for Victor's business is 30%,at what level of product preference should his business perform?

Accepted Answer

The answer of Victor has determined that along the share-development...

Question 14

Which of the following formulas is used to calculate the share development index?

Accepted Answer

The formula for calculating Share Development Index is Share Development Index = Market Share Index/Share Potential Index, which is provided in option A. Option B, C, D, and E do not provide the correct formula for calculating the Share Development Index.

Question 15

Bruce has determined that along the share-development path,his business should perform at a 70% level of product awareness,80% in product preference,60% in intentions to purchase,90% in product availability,and 80% in rate of purchase.His business's share development index is 25.What is the business's approximate market share index?

Accepted Answer

The answer of Bruce has determined that along the share-development...

Question 16

The ________ is equal to current market demand divided by market potential.

Accepted Answer

The market development index (MDI) measures market potential by calculating current market demand divided by market potential. The other choices (SDI, BSI, MSI, SGI) do not directly involve this calculation.

Question 17

Kate has determined that along the share-development path,her business should perform at a 85% level of product awareness,75% in product preference,60% in intentions to purchase,90% in product availability,and 70% in rate of purchase.Kate's share development index is 50.What is the market share index for Kate's business?

Accepted Answer

The market share index is calculated by multiplying the share development index by the product awareness percentage. In this case, the share development index is 50 and the product awareness percentage is 85%, so the market share index is 50 * 0.85 = 42.5.

Question 18

A firm uses a core offensive strategic market plan of investing to grow sales in existing markets.The strategic objective of the firm is to grow in existing markets.Which of the following strategies is the firm most likely to use?

Accepted Answer

The firm's core offensive market plan of investing to grow sales in existing markets suggests that they want to increase demand for their products within their current markets. Therefore, the most likely strategy they will use is to expand market demand.

Question 19

Alex has determined that along the share-development path,his business should perform at an 80% level in product preference,50% in intentions to purchase,90% in product availability,and 70% in rate of purchase.If the share potential index for Alex's business is 20%,at what level of product awareness should his business perform?

Accepted Answer

The answer of Alex has determined that along the share-development...

Question 20

Helen has determined that along the share-development path,her business should perform at a 80% level of product awareness,50% in product preference,80% in intentions to purchase,90% in product availability,and 70% in rate of purchase.Helen's actual market share is equal to 9%.What is the approximate share development index (SDI)for Helen's business?

Accepted Answer

The answer of Helen has determined that along the share-development...

Quiz 12: Offensive Strategies