Question 1

Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________.

Accepted Answer

Teenagers are a specific group of consumers with similar characteristics and preferences, making them a distinct market segment that can be targeted with specific marketing efforts.

Question 2

Ron and Gail strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________.

Accepted Answer

Product development refers to creating new products or services to offer to existing markets. Providing new offerings and entertainment options falls under this category.

Question 3

A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________.

Accepted Answer

This is an example of diversification, as the women's apparel manufacturer is expanding its business by acquiring a company in a completely different industry – office furniture.

Question 4

Refer to the scenario below to answer the following questions.
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and the arbors.
"There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful. There is nothing else like Fun-Spot Fun Park in the area. We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like the park's motto at the entrance reads, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
-Fun-Spot's mission is ________.

Accepted Answer

The scenario states that Fun-Spot Fun Park was created to capture an untapped market of weekenders coming to the lakes in the rural area. Additionally, the park's success is attributed to providing a "total package" of entertainment and constantly changing rides and attractions to cater to visitors. This suggests that the park is market-oriented, focused on meeting the needs and wants of its target market to attract and retain visitors.

Question 5

Arrow is "a different kind of company, manufacturing a different kind of a car"; the RoadPro is "like nothing else." Statements such as these reflect a firm's ________.

Accepted Answer

These statements reflect the firm's positioning, which is the way the product is positioned in the mind of consumers relative to competing products.

Question 6

Which of the following is an element of the marketing mix?

Accepted Answer

Place is one of the elements of the marketing mix, which refers to the distribution channels used to make the product or service available to customers. Education, needs, wants, and esteem are not elements of the marketing mix.

Question 7

In the context of a company's marketing mix, ________ includes company activities that make the product available to target consumers.

Accepted Answer

Place refers to the distribution channels and strategies used by a company to make the product available to the target consumers.

Question 8

The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system is known as the ________.

Accepted Answer

The answer of The network made up of the company,...

Question 9

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________.

Accepted Answer

Diversification refers to a strategy of expanding a company's business into new areas that are different from its core business. In this case, Elmo Corp. is expanding into a new business area of office furniture exporting, which is different from their core business of manufacturing computers and printers.

Question 10

Market segmentation can be best described as the process of ________.

Accepted Answer

Market segmentation involves dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors, who might require separate products or marketing programs.

Question 11

Which of the following would be classified as an opportunity in a SWOT analysis of Fun-Spot?

Accepted Answer

The answer of Which of the following would be classified...

Question 12

The marketing logic by which a company hopes to create customer value and achieve profitable customer relationships is referred to as the ________.

Accepted Answer

Marketing logic by which a company hopes to create customer value and achieve profitable customer relationships is referred to as marketing strategy. It involves analyzing customer needs and wants, selecting target markets, and positioning their products or services effectively.

Question 13

RedFin manufactures diving equipment that is highly regarded by customers worldwide. Each department in RedFin contributes to its success and can be thought of as a(n) ________.

Accepted Answer

The term "internal value chain" refers to the process by which a company creates value in its products or services. Each department in RedFin contributes to the overall value created by the company, and can therefore be considered a link in the company's internal value chain.

Question 14

Refer to the scenario below to answer the following questions.
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and the arbors.
"There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful. There is nothing else like Fun-Spot Fun Park in the area. We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like the park's motto at the entrance reads, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
-The Fun-Spot represents a high-growth, high-share business. According to the BCG matrix, it can be classified as a ________.

Accepted Answer

The Fun-Spot is a high-growth, high-share business and provides a unique entertainment package, making it a star according to the BCG matrix.

Question 15

Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.

Accepted Answer

The internal value chain refers to the sequence of activities within a company that contribute to the creation and delivery of a product or service. Each department is a link in this chain, and the overall effectiveness of the chain determines the company's competitive advantage. Choices A, B, C, and E are not as relevant to the concept of internal value chains.

Question 16

The managers of Alfredo's Pizza, a popular pizzeria in New York City, have been increasingly encouraging senior citizens to visit the pizzeria's numerous outlets spread across the city. Anticipating a rise in the population of senior citizens in the area, the management of Alfredo's Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers. In this instance, the managers of Alfredo's Pizza are anticipating company growth through ________.

Accepted Answer

The managers of Alfredo's Pizza are seeking to tap into a new market segment (senior citizens) in order to increase their customer base and company growth. This is an example of market development. Product development refers to creating new products, mass customization refers to tailoring products to individual customers, and niche marketing refers to targeting a specific, small market segment. Product differentiation refers to making a product different from competitors' products. None of these are the best fit for Alfredo's Pizza's strategy of targeting senior citizens.

Question 17

Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________.

Accepted Answer

Diversification refers to expanding the business by adding new products or entering new markets. In this case, Amor, a women's clothing brand, has introduced a line of fitness equipment, which is a new product for the company.

Question 18

FencePro, a local company, has developed an entirely new mounting system for chain link fences. After acquiring a distributor, FencePro now has the ability to market its products nationwide. FencePro is most likely following a ________ strategy.

Accepted Answer

FencePro's acquisition of a distributor and ability to market its products nationwide indicates a move towards market development, which involves expanding into new markets with existing products.

Question 19

Refer to the scenario below to answer the following questions.
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
"My wife, Gail, and I didn't know what we were getting into," commented Ron Hart, the owner. "We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior citizens who enjoy strolling through the gardens and the arbors.
"There's something here for everyone," Gail Hart said with a smile. "Dozens of companies hold annual company picnics here. We have welcomed class field trips. And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in. "We really don't know why we've been so successful. There is nothing else like Fun-Spot Fun Park in the area. We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added. "We provide a 'total package' of entertainment. Plus, we try to change our rides and various attractions from time to time for variety."
Ron and Gail Hart admitted that making every visitor happy is a priority. "That has always been our philosophy," they said. "Like the park's motto at the entrance reads, 'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
-Ron and Gail plan to lower prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning?

Accepted Answer

Ron and Gail's plan to lower prices in order to encourage customers to stay longer, visit more often, and spend more money during each visit is an example of market penetration strategy. This involves increasing sales of existing products or services in existing markets, and is often achieved through price reductions, promotions, and increased advertising.

Question 20

Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.

Accepted Answer

The introduction of a new product, Eva, is an example of product development, as the company has created a new offering to meet customer demand.

Quiz 2: Company and Marketing Strategy: Partnering to Build Customer Relationships