Deck 16: Marketing Strategy

Question 1

Using the BCG matrix, a company's brands or products are classified solely according to whether each has a strong or weak market share.

Answer 1

False

Question 2

In the spirit of a product's life cycle, withdrawing marketing support can propel a brand into faster decline.

Answer 2

True

Question 3

Product development is the riskiest strategy in Ansoff's product-market growth matrix.

Answer 3

False

Question 4

To increase profitability, we have to increase sales volume or raise prices.

Question 5

Growing profit is the ultimate goal of any company.

Question 6

Cost leadership means distinguishing one's products as unique in the industry.

Question 7

Cash cows don't need much marketing attention.

Question 8

Low prices and low margins necessitate the hassle of having to deal in large volume.

Question 9

A brand with a relatively large share in a growing market is called a "star."

Question 10

The formula for sales revenue is Sales revenue = Sales volume + Price.

Question 11

In the General Electric model, judgments about the brand's performance are implicit, not explicit.

Question 12

A brand with small share in a market that is NOT growing is called a "dog."

Question 13

Brands referred to as "dogs" should be moved "north" to become cash cows.

Question 14

It is a good idea to try new products and new customer bases at the same time.

Question 15

Customers usually believe that high prices are a cue to higher quality.

Question 16

The formula for profit is Profit = (Sales volume × Price) + (Variable coasts × Fixed costs).

Question 17

The four classes in the BCG matrix are a star, a dog, a question mark, and a cash cow.All of the classes are essentially equal.

Question 18

In the General Electric model, the dimensions that are measured are market strength and business attractiveness.

Question 19

Arlin owns a firm that specializes in producing and marketing cosmetics and hair care products.Arlin wants to examine his portfolio.The BCG matrix is the strategic framework you should recommend to Arlin to evaluate his portfolio.

Question 20

Whereas the cost leadership and differentiation approaches are said to be broad, the focused strategy is narrower.

Question 21

Some companies revisit strategic assumptions from time to time just because they are thoughtful and reflective.

Question 22

Customer satisfaction is a major goal classification.

Question 23

Jacques is contemplating the possible moves his camping equipment firm can make to become more competitive in the marketplace.At the highest level of analysis, there are really three strategies available for Jacques's firm to achieve its goals: (1) do nothing, (2) do nothing different from the status quo, and (3) do something different.

Question 24

An important assessment in strategic thinking is to know your company's strengths and weaknesses.

Question 25

Reasons to revisit strategic planning questions are easily discoverable by SWOT analyses.

Question 26

Goals regarding better promotional communications can include spending advertising dollars more wisely and figuring out which media make the most sense to customer segments.

Question 27

If a company's mantra is "We're efficient," it is probably pursuing a focus strategy.

Question 28

Operational excellence involves knowing your customers' needs and tailoring your product to meet those needs.

Question 29

Strategic planning involves a reflection on our corporate identity.

Question 30

It's completely possible for a company to be a leader for some of its brands and more of a follower for its other brands.

Question 31

The first company to market a new product or idea is in a good position because truly new products always capture the attention of customers.

Question 32

When the gauges on a company dashboard head to the center or to the left, it means it's time to panic.

Question 33

A company's tendency toward offensive or defensive actions correlates with its size.

Question 34

Many companies want to be considered quick-followers because it is a safer route to success than being the first to market with an innovative product.

Question 35

When business drops or competitors step up, a status quo strategy will yield good results.

Question 36

The Treacy and Wiersema strategies are operational leadership, product excellence, and customer intimacy.

Question 37

All firms assume either a leader or follower status in the marketplace.

Question 38

Sales goals should be stated in terms of profits.

Question 39

Strategic goals must integrate all 4Ps.

Question 40

Typically, we have control over all the 5Cs.

Question 41

Which strategy in the Ansoff's product-market growth matrix combines new markets and new products?

A) market development
B) product development
C) market penetration
D) diversify

Question 42

Which of the following is the correct formula for sales revenue?

A) Sales volume - Cost
B) Sales volume × Price
C) Sales volume + Price
D) Sales volume/Cost

Question 43

Which of the following is the correct formula for Variable Costs?

A) Variable unit cost + Sales volume (in units)
B) Variable unit costs × Sales volume (in units)
C) Variable unit costs/Sales volume (in units)
D) Variable unit costs - Sales volume (in units)

Question 44

Which strategy in the Ansoff's product-market growth matrix is the riskiest?

A) market penetration
B) product development
C) market development
D) diversification

Question 45

Which strategy in the Ansoff's product-market growth matrix combines current markets and new products?

A) market penetration
B) product development
C) diversify
D) market development

Question 46

Which strategy in the Ansoff's product-market growth matrix combines new markets and current products?

A) market development
B) diversify
C) market penetration
D) product development

Question 47

All of the following may be considered part of the class known as "question marks" EXCEPT

A) products in development.
B) products entering a different market.
C) new technologies.
D) products with a small share in a non-growing market.

Question 48

Aliya is the marketing manager at JumpyInk.The strategic tool JumpyInk uses forces her to make judgments about the company's performance based on market attractiveness and business strength.Which tool does Aliya use?

A) Ansoff's product-market growth matrix
B) BCG matrix
C) General Electric model
D) Porter strategies

Question 49

The CEO of Winchester Inc.always says, "It's all about sales growth!" Which marketing strategy framework is he most likely to use?

A) Ansoff's product-market growth matrix
B) BCG matrix
C) General Electric model
D) Porter strategies

Question 50

If a company wants to increase its profitability, it needs to __________ sales volume, __________ prices, or __________ costs.

A) increase, change, decrease
B) decrease, change, increase
C) change, decrease, increase
D) decrease, increase, change

Question 51

Which of the following is the correct formula for profit?

A) (Sales volume + Price) / (Variable costs × Fixed costs)
B) (Sales volume + Price) - (Variable costs × Fixed costs)
C) (Sales volume × Price) / (Variable costs + Fixed costs)
D) (Sales volume × Price) - (Variable costs + Fixed costs)

Question 52

Because BCD brand has a strong market share in a non-growth industry, it is best classified as a

A) star.
B) dog.
C) cash cow.
D) question mark.

Question 53

Which strategy in Ansoff's product-market growth matrix combines current markets and current products?

A) market development
B) product development
C) market penetration
D) diversify

Question 54

Looking for suppliers who are cheaper than our current ones but still high quality is an example of a way to

A) increase sales volume.
B) change our prices.
C) decrease variable costs.
D) decrease fixed costs.

Question 55

What is a company's ultimate goal?

A) growing profit
B) expanding into as many segments as possible
C) being a leader
D) pleasing customers

Question 56

Like most companies, ABC wants to optimize the number of its

A) stars.
B) cash cows.
C) dogs.
D) question marks.

Question 57

Because Brand X has a low market share in a high growth industry, it is classified as a

A) question mark.
B) star.
C) cash cow.
D) dog.

Question 58

Because ABC brand has a small share in a market that is not growing, it is classified as a

A) dog.
B) star.
C) cash cow.
D) question mark.

Question 59

ABC Company has produced the XYZ brand.Because it has a relatively large share in a growing market, it is best classified as a

A) cash cow.
B) star.
C) question mark.
D) dog.

Question 60

Karen is working on classifying all her company's products in terms of whether they have strong or weak market share and whether this share is in a slow or growing market.What type of strategic framework is she using?

A) Ansoff's product-market growth matrix
B) BCG matrix
C) General Electric model
D) Porter strategies

Question 61

Which is NOT one of the four classes of goals?

A) focus on making money
B) pleasing customers
C) being a leader
D) repositioning ourselves in the market space

Question 62

The firm Patrick started nearly a decade ago is commonly referred to as a market leader.Upon reflecting on the leadership status of his company, Patrick considered the qualities that could eventually bring a firm to a leading position in the marketplace.Which of the following is likely NOT a reason in Patrick's mind for a company being classified as a "leader"?

A) Sometimes a company is said to be the leader because it has the largest market share.
B) Sometimes a company is said to be a leader because it was first to market.
C) Sometimes a company is said to be a leader because it is a consistent and profitable follower.
D) Sometimes a company is known for being innovative or quick to improve some other company's ideas.

Question 63

When high-tech and electronics companies churn out new products constantly, it demonstrates that they are competing for

A) operational excellence.
B) product leadership.
C) customer intimacy.
D) cost excellence.

Question 64

According to Porter, __________ refers to producing goods and services more efficiently than the competition.

A) cost leadership
B) differentiation
C) focus
D) excellence

Question 65

A company whose mantra is, "We do one thing very well" is probably pursuing which of the following strategies?

A) cost leadership
B) differentiation
C) focus
D) price leadership

Question 66

Which of the following is NOT true about a company dashboard?

A) They can take any shape.
B) If a gauge is in the center, the company is in trouble.
C) They can include financial information.
D) They can include HR information.

Question 67

A company whose mantra is "We are efficient" is probably pursuing which of the following strategies?

A) cost leadership
B) differentiation
C) focus
D) product excellence

Question 68

Think about the following questions: What channels do our target customers find most desirable? Do we need to continue offering and managing multichannel touch points? Can we move some of our customer segments to self-service or lower cost channel interactions? Would it make sense to off load and outsource some of our business functions to our current partners? Would they be capable of stepping in, or must we seek new partners? If a company is evaluating questions/topics such as these, with which of the goals listed below is the company most likely concerned?

A) delighting customers
B) making more money
C) enhancing product offerings
D) redefining its position

Question 69

Which of the following is NOT one of the Treacy and Wiersema strategies?

A) cost leadership
B) operational excellence
C) product leadership
D) customer intimacy

Question 70

The dimensions used in the General Electric model are analogous to elements used in

A) SWOT analysis.
B) Porter's strategy.
C) the BCG matrix.
D) Ansoff's product-market growth matrix.

Question 71

The General Electric model uses the external element of _________ and the internal element of __________.

A) market risk, business flexibility
B) market flexibility, business risk
C) market strength, business attractiveness
D) market attractiveness, business strength

Question 72

What does ROM stand for?

A) revenue or money
B) reflux of markets
C) return on marketing
D) respect of materials

Question 73

Kenneth is convinced that many indicators of his company's success exist, but is unsure of how to critically evaluate and link these factors.Kenneth should consider establishing a __________ to gauge his company's performance.

A) strategy
B) dashboard
C) scoreboard
D) metrics-based report

Question 74

According to Porter, __________ is an attempt to distinguish one's products as unique in the industry.

A) cost leadership
B) differentiation
C) focus
D) excellence

Question 75

Which of the following is an old, traditional management adage?

A) Leadership above management.
B) Measure twice, manage once.
C) You can only manage one thing at a time.
D) You can't manage what you don't measure.

Question 76

Company ABC has a mature brand in a stable market, so managers maintain business as usual-same price, same marketing support, etc.What strategy are they using?

A) doing nothing
B) doing nothing differently
C) doing something different
D) doing everything differently

Question 77

Imagine your boss wants you to investigate ways your company might be able enhance customer satisfaction, create an attractive loyalty program, and reward your customers.Most likely, your company's immediate goal is to

A) delight customers.
B) make more money.
C) enhance product offerings.
D) redefine its position.

Question 78

Bill advises Mary that there are essentially three strategies to achieving goals.Assuming Bill is correct, how would he describe these three strategies?

A) do nothing, do nothing different from status quo, do something different
B) segment, target, position
C) customer satisfaction, customer loyalty, customer retention
D) be the leader, be a quick-follower, be a follower

Question 79

It is not unusual for a company to be more ____________ in its youth and to age toward ____________ when it has market share, sales, and customers to protect.

A) stable, instability
B) of a follower, leadership
C) aggressive, conservatism
D) passive, liberalism

Question 80

A package delivery company or a cell phone company wouldn't go far if it could not deliver products smoothly and reliably.This means that __________ is necessary for these industries.

A) operational excellence
B) product leadership
C) customer intimacy
D) cost leadership