Question 1

Because companies are likely to be most familiar with their own operations, ____________ opportunities are usually the easiest to pursue.

Accepted Answer

Market penetration involves selling more of an existing product to an existing market. Since companies are already familiar with their own products and markets, this is generally the easiest opportunity to pursue. Product development, market development, and diversification all involve developing or entering new markets or creating new products, which can be more challenging and require more resources and expertise.

Question 2

When Sony Corp., an electronics producer, purchased the Pebble Beach golf course in California, it was pursuing what type of opportunity?

Accepted Answer

Purchasing a golf course would not directly relate to Sony's core business of electronics production, indicating a move towards diversification.

Question 3

______ means moving into totally different lines of business, perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.

Accepted Answer

Diversification refers to expanding into new and different lines of business, which could be in unfamiliar products, markets or production levels. Market development, product development, differentiation, and market penetration refer to specific strategies within an organization's existing line of business.

Question 4

Heinz, in order to boost its sales, came up with ketchup in gross green and funky purple colors. It packaged the ketchup in EZ Squirt dispensers molded to fit little hands. This is an example of:

Accepted Answer

Product development involves creating new products or improving existing ones to better meet the needs or wants of a target market. In this case, Heinz developed new colors and packaging designed to appeal to children, which can be considered a form of product development. Market development involves expanding into new markets with existing products, diversification involves entering new markets with new products, and market penetration involves increasing sales of existing products in existing markets. None of these options fully capture the actions taken by Heinz in this scenario.

Question 5

A beer distributor, concerned about increasing regulation of alcoholic beverages, decides to start a new business distributing children's toys. This company seems to be pursuing

Accepted Answer

The beer distributor is pursuing diversification, as they are entering a completely new industry (toys) that is unrelated to their current business (alcoholic beverages). Market development involves expanding into new markets with existing products, product development involves creating new products for existing markets, and market penetration involves increasing sales in existing markets with existing products.

Question 6

Professional Dental Supply has been successfully selling dental instruments to dentists for the past twenty years, and has developed strong customer relations. When looking for new marketing opportunities, Professional Dental Supply will most likely look first at

Accepted Answer

The answer of Professional Dental Supply has been successfully selling...

Question 7

Which of the following statements is True regarding international opportunities in marketing?

Accepted Answer

It is true that a product with slow sales growth in a domestic market may experience faster growth in another country. International markets may have different consumer preferences, cultural values, and economic conditions that can create new opportunities for products. The other options are incorrect. A firm should always consider international opportunities regardless of the state of the domestic market. International trade is increasing, not decreasing, and small firms can also engage in international marketing.

Question 8

Hewlett-Packard decided that too many other companies were attracting its customers by advertising their computer printers as "having all of the features of Hewlett-Packard's LaserJet." So Hewlett-Packard designed a new color printer with a completely new set of features which no competitors' equipment offered. Hewlett-Packard then introduced it to the same market with the hope that it could develop a larger and more profitable share. This was an effort at:

Accepted Answer

Hewlett-Packard's decision to design a new color printer with a completely new set of features is an example of product development. Product development is the strategy of introducing new products to existing markets with the aim of increasing sales and profits. In this case, Hewlett-Packard aimed to differentiate its product from competitors and attract more customers by offering unique features.

Question 9

The most risky and challenging opportunities usually involve:

Accepted Answer

Diversification involves entering into new markets with new products, which is the riskiest and most challenging opportunity. Market penetration and product development involve expanding within existing markets or improving existing products, which may be less risky. Market development, while involving entering new markets, does not involve new products, which may be less challenging.

Question 10

The most risky types of marketing opportunity to pursue usually involve

Accepted Answer

Diversification involves venturing into new markets with new products, which is the most risky type of marketing opportunity to pursue. This is because there is no guarantee that the new market will accept the new product. In addition, the company is likely to lack experience and expertise in the new market, adding to the risk. Market development, market penetration, and product development are less risky options as they involve expanding into existing markets or developing new products in existing markets where the company has more familiarity and knowledge.

Question 11

All of the following are reasons why international opportunities should be considered by managers, EXCEPT

Accepted Answer

The statement "favorable trends at home and unfavorable trends in other countries make international marketing particularly attractive" is incorrect as unfavorable trends in other countries would not make international marketing attractive.

Question 12

Zippo is pursuing _____ opportunities with its Multi-Purpose Lighter that is designed to light candles, fireplaces, grills, and more.

Accepted Answer

Product development involves creating new products or modifying existing ones to meet the changing needs of the market. In this case, Zippo is modifying its Multi-Purpose Lighter to make it more versatile and appealing to a wider range of customers.

Question 13

Industrial Plastics Corporation has decided to manufacture and sell electric motors for fishing boats. The firm appears to be pursuing a ______________ opportunity.

Accepted Answer

The firm is entering a new market with a new product, which is characteristic of a diversification strategy.

Question 14

When a firm tries to increase its total sales by offering new products to new markets, it's pursuing:

Accepted Answer

Diversification involves a company expanding its operations by adding new markets, products, services, or stages of production to its existing portfolio. It's a strategy aimed at entering new markets with new products, thus spreading out its risk and opportunities.

Question 15

A producer of home burglar alarm devices decides to start manufacturing portable video cameras for use in industrial security situations. This is an example of

Accepted Answer

Diversification refers to a strategy where a company enters into a new market or industry that is different from its core business. In this case, the producer of home burglar alarm devices is entering into the market of portable video cameras for industrial security, which is a different industry from its core business.

Question 16

Cheese manufacturer, Ashe Mountain Corp., started a new chain of movie theaters called Ashe Mountain's Movie World. The theaters have been a major success and significantly increased the revenues of Ashe Mountain Corp. This is an example of:

Accepted Answer

Diversification involves a company entering into a new market with new products or services, which is what Ashe Mountain Corp. did by starting a chain of movie theaters, a venture different from their original cheese manufacturing business.

Question 17

In developing trails for hiking and biking to bring its winter ski customers back in the summer, Mountain High Ski Resort is pursuing what type of opportunity?

Accepted Answer

Mountain High Ski Resort is developing new products (hiking and biking trails) to appeal to its existing customers (winter ski customers). This is an example of product development.

Question 18

To improve its profits, Delta Tool Corp. has redesigned its entire line of rechargeable power drills--adding several new or improved features and three new models. Apparently, Delta Tool is pursuing a ______________ opportunity.

Accepted Answer

Delta Tool Corp. has redesigned its entire line of rechargeable power drills and added new features and models, which indicates that they are pursuing a product development opportunity.

Question 19

If a cola producer bought out a Mango juice producer in an attempt to appeal to health-conscious consumers who do not drink soft drinks, it would be pursuing a ______________ opportunity.

Accepted Answer

Diversification involves entering a new market with a new product. In this case, the cola producer is diversifying by acquiring a mango juice producer, which allows them to appeal to health-conscious consumers who may not drink soft drinks. Market development involves expanding within an existing market, market penetration involves selling more of an existing product within an existing market, and product development involves creating and introducing new products in an existing market.

Quiz 2: Marketing Strategy Planning