Question 1

Anna decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Anna is pursuing a ________ growth strategy.

Accepted Answer

Market penetration refers to strategies that involve increasing sales to existing customers in existing markets, which is exactly what Anna is doing by adding new sales representatives and increasing advertising. Segment development, market development, and product development all involve expanding into new markets or creating new products, while diversification involves entering an entirely new industry or market.

Question 2

Tiana is assessing several of her firm's products using the Boston Consulting Group (BCG)approach. She is assessing the strength in a particular market and is looking at the sales of each of the products and the sales of the largest firm in the industry. Tiana is determining

Accepted Answer

Tiana is assessing the strength of the product in a particular market by comparing its sales with the sales of the largest firm in the industry. This is a key factor in determining the product's relative market share, which is a core component of the BCG approach.

Question 3

A(n)________ is a group of products that consumers may use together or perceive as similar in some way.

Accepted Answer

A product line is a group of products that consumers may use together or perceive as similar in some way. It is a subset of a company's overall product portfolio and may be marketed as a cohesive unit. Product lines are often managed as individual entities within a company, with their own branding, pricing, and promotional strategies.

Question 4

Using the BCG portfolio analysis, a "dog" should be phased out unless

Accepted Answer

Dogs in the BCG matrix are typically characterized by low market growth and low market share. However, if a dog product complements or boosts the sales of another product, it might be retained despite its poor standalone performance. This is because its value is derived from the synergistic benefits it provides to other products within the portfolio, rather than its individual performance.

Question 5

Javier was thrilled to learn his company has decided to invest a great deal of money in the product he is managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he needs more money to establish it firmly. Using the BCG portfolio analysis, Javier's product would be classified as a(n)

Accepted Answer

According to the BCG portfolio analysis, a "star" is a product with high market growth rate and high market share. Javier's product is dominating its market and experiencing a high rate of growth, which fits the criteria for a star. Therefore, the best classification for his product would be a star.

Question 6

In most companies, portfolio management is typically done at the SBU or ________ level of the firm.

Accepted Answer

The answer of In most companies, portfolio management is typically...

Question 7

George owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis and has finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will most likely involve determining

Accepted Answer

George's next strategic marketing decision will most likely involve determining how to allocate resources among his four stores. This decision will help him optimize his marketing mix and ensure that each store receives the appropriate amount of resources to meet the needs of the target segments in its specific location. By allocating resources effectively, George can improve his store's profitability and enhance his overall market position.

Question 8

A product that is in a high-growth market but has a low market share would be classified as a ________ on the BCG matrix.

Accepted Answer

A product that is in a high-growth market but has a low market share is classified as a question mark (also known as a problem child or a potential star). This is because the product has potential to become a star with the right investment and marketing strategies, but currently has low market share and high uncertainty about its future success.

Question 9

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business?

Accepted Answer

According to Boston Consulting Group portfolio analysis, Nike's athletic shoe business is likely to produce excess resources that can be invested in other divisions of the company. While some investment is still needed, Nike can prioritize investing in other divisions that may have more potential for growth. Exiting the athletic shoe market or solely investing in it for the sake of boosting sales in other markets would not be the best strategic decision for Nike.

Question 10

Which statement regarding marketing metrics is true?

Accepted Answer

Marketing metrics are used to quantify a trend, dynamic or characteristic of a marketing campaign. They provide valuable insights to marketers on the effectiveness of their strategies and help them make data-driven decisions.

Question 11

In the context of the BCG matrix, which group requires the most significant resources to maintain its market share?

Accepted Answer

Question marks require the most significant resources to maintain or increase their market share because they operate in high-growth markets but have low market share, necessitating substantial investment to improve their position.

Question 12

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called

Accepted Answer

Products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called cash cows.

Question 13

What is one of the four major growth strategies that marketers typically utilize?

Accepted Answer

Market penetration involves increasing market share with existing products or services within the current market. This strategy is typically less risky than other growth strategies and can be achieved through tactics such as increasing advertising, lowering prices, or improving customer service.

Question 14

The first objective in the evaluate performance phase of the marketing planning process is to

Accepted Answer

The first objective in the evaluate performance phase of the marketing planning process is to review implementation programs and results using metrics. This helps to determine whether marketing strategies and tactics were effective or not, and to identify areas for improvement in the future. Adjusting prices, advertising allocations, or target markets may come later in the process after reviewing performance. Finding ways to cut costs may be a consideration but is not typically the first objective in this phase.

Question 15

Webber Enterprises sells its business language dictionary to college students throughout the United States. Joseph Webber, the owner, wants to start selling the book to international students abroad. Webber wants to pursue a ________ growth strategy.

Accepted Answer

Market development involves expanding sales of an existing product or service into new geographic areas or target markets. In this case, Webber Enterprises is expanding its sales to international students, which falls under market development. The other options involve either creating new products or entering new markets entirely, which is not the case here.

Question 16

To determine how attractive a particular market is using the BCG portfolio analysis, ________ is(are)established as the vertical axis.

Accepted Answer

The vertical axis of the BCG portfolio analysis is established as the market growth rate, which determines the potential for future growth and profitability of the market. This allows businesses to evaluate the attractiveness of a particular market based on its potential for growth and decide how to allocate resources accordingly.

Question 17

The growth rate for the iMac desktop, which has a small relative market share in the desktop market, has slowed down in recent years. Although sales have dropped by approximately 3 percent, it remains popular among graphic designers. Given these conditions, in which quadrant of the BCG matrix would the iMac most likely fall?

Accepted Answer

The iMac, with its slowed growth rate and small market share, aligns with the characteristics of a product in the lower right quadrant of the BCG matrix, which represents products in low-growth markets with low market share, often referred to as "dogs."

Question 18

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Stephanie now has to make ________ decisions.

Accepted Answer

Resource allocation decisions involve deciding how to allocate resources such as finances, personnel, and time to support the strategies developed for the four Ps. This includes determining which marketing mix elements (product, price, promotion, and place) to prioritize and how much to invest in each. Competitive response, market growth, product line, and mission statement decisions are also important, but they are not directly linked to implementing the STP analysis and developing strategies for the four Ps.

Question 19

As it pertains to the marketing plan, understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals is important because it

Accepted Answer

Understanding the causes of performance helps firms make appropriate adjustments to improve future performance. This could include adjusting marketing strategies, targeting different customer segments, or reallocating resources.

Question 20

A ________ growth strategy employs the existing marketing offering to reach new market segments.

Accepted Answer

Market development strategy aims to introduce the existing product to new market segments, thereby expanding the customer base. The company leverages its existing products in new markets through different marketing channels, partnerships, or geographical expansion. Product proliferation is about introducing new products in the existing market, product development is about enhancing the existing product, diversification is introducing completely new products in new markets, and market penetration is about increasing sales of existing products in the existing market.

Quiz 2: Developing Marketing Strategies and a Marketing Plan