Question 1

The marketing concept is best thought of as which of the following?

Accepted Answer

The marketing concept is a guiding philosophy that focuses on meeting the needs and wants of customers while achieving the organization's goals. It is a strategic approach that helps companies align their marketing efforts with the needs and desires of their target audience.

Question 2

According to the text the best known product portfolio planning method was developed by ________.

Accepted Answer

The text states that the best known product portfolio planning method was developed by the Boston Consulting Group.

Question 3

Which of the following is a reason that a firm might want to abandon products or markets?

Accepted Answer

If a firm enters into markets or product areas without sufficient experience, it may face difficulties in managing those areas effectively. In such a scenario, the best strategy might be to abandon those areas to focus on the core competencies that the firm possesses. The other options listed do not present a compelling reason for a firm to abandon products or markets.

Question 4

In the BCG matrix, income from ________ can be used to help finance the company's question marks and stars.

Accepted Answer

Cash cows are the products or services that have a high market share in a low-growth market. These products or services generate a lot of income for the company, which can be used to finance the company's question marks and stars. Dogs have a low market share in a low-growth market, so they do not generate much income. SBUs (Strategic Business Units) and overseas operations are not directly related to generating income. Sales revenue is a source of income, but it is not specific to any particular product or service in the BCG matrix.

Question 5

Which of the following is a useful tool for identifying future growth opportunities?

Accepted Answer

The product/market expansion grid is a useful tool for identifying future growth opportunities as it helps in identifying various options for growth by considering existing and new products in existing or new markets. It provides a framework for analyzing and selecting growth strategies, such as market penetration, market development, product development, and diversification. The other options, such as the BCG matrix, business portfolio, value chain, and value delivery network, are useful for different purposes but not specifically for identifying future growth opportunities.

Question 6

If Under Armour, the successful maker of moisture-wicking shirts and shorts, considered introducing a line of Under Armour fitness equipment, the company would be considering ________.

Accepted Answer

Diversification involves expanding a company's product offerings into new markets or industries. Under Armour would be diversifying by introducing a line of fitness equipment, which is not currently part of its product offerings.

Question 7

Mountain Home Farms is now using the product/market expansion grid to develop strategies. The owners of the company have most likely found the grid to be quite useful for identifying ________.

Accepted Answer

The product/market expansion grid is a tool used for identifying growth opportunities for a business. Therefore, the owners of Mountain Home Farms would likely use this tool to identify growth opportunities.

Question 8

In the Boston Consulting Group approach, ________ serve(s)as a measure of company strength in the market.

Accepted Answer

In the Boston Consulting Group approach, relative market share serves as a measure of company strength in the market. The relative market share compares a company's market share with that of its largest competitor in the same market. High relative market share indicates higher competitiveness, which means the company is a leader in its industry and may have more resources to continue to grow and invest.

Question 9

Making more sales to current customers without changing a firm's products is called ________.

Accepted Answer

Market penetration is the strategy where a firm tries to increase its market share by selling more of its existing products to its current customers. It involves increasing sales to current customers without changing the products offered. Market development (A) refers to expanding the customer base by targeting new market segments. Market growth (B) and product development (D) involve introducing new products to the market. Market attractiveness (E) is not a common term used in marketing strategy.

Question 10

Which of the following accurately reflects a problem with a matrix approach to strategic planning?

Accepted Answer

A matrix approach to strategic planning can be costly to conduct due to the resources and time required to gather and analyze data, build the matrix, and develop strategies based on the results.

Question 11

________ entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy.

Accepted Answer

Downsizing is a strategic decision that involves reducing the overall size and scope of a company. This may include eliminating products, services, divisions or even closing down entire business units. The goal of downsizing is to improve the efficiency and profitability of the company by focusing on its core competencies and reducing non-essential or unprofitable activities. In this case, eliminating products that no longer fit the company's overall strategy is a form of downsizing.

Question 12

Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is more ________.

Accepted Answer

Today's strategic planning is more decentralized, meaning it involves input from employees at all levels of the organization, rather than just being conducted by senior managers. This approach promotes collaboration, creativity, and innovation, and allows for a more comprehensive and informed strategic plan.

Question 13

In the BCG approach, ________ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into ________.

Accepted Answer

According to the BCG approach, stars are high-share, high-growth businesses or products that require heavy investment to finance their rapid growth. When their growth slows down, they turn into cash cows. Therefore, stars are the best choice for the first blank and cash cows are the best choice for the second blank.

Question 14

Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________.

Accepted Answer

Most portfolio analysis methods evaluate SBUs (strategic business units) on two dimensions- market or industry attractiveness and the strength of the SBU's position in that market or industry. Market or industry attractiveness is evaluated based on factors like market growth rate, market size, competition intensity, etc. Strength of the SBU's position is evaluated based on factors like market share, relative brand strength, relative cost position, etc. Choice A and B are partially correct but do not cover all the critical factors evaluated in portfolio analysis, while choice D and E do not accurately reflect the dimensions evaluated in portfolio analysis.

Question 15

________ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.

Accepted Answer

Cash cows are low-growth, high share businesses or products that generate a lot of cash. The firm can use this cash to finance other SBUs that require investment, pay their bills or distribute it among the shareholders as dividends. Stars are high-growth, high share businesses or products. Question marks, also known as problem children, are high-growth, low share businesses or products that require a lot of cash to maintain their position in the market. Dogs are low-growth, low share businesses or products. Cats are not a recognized category in the BCG matrix.

Question 16

In the Boston Consulting Group approach, ________ provide(s)a measure of market attractiveness.

Accepted Answer

According to the Boston Consulting Group approach, market growth rate provides a measure of market attractiveness. This is because a high growth rate indicates a large potential for profitability and future success in that market.

Question 17

When dealing with a ________, managers must decide whether to invest in it in an attempt to build it into a star or cash cow or whether to phase it out.

Accepted Answer

The correct answer is "question mark" because in the context of the BCG matrix, a question mark (also known as a problem child) represents a business unit that has a small market share in a rapidly growing market, and managers must decide whether to invest in it to gain market share and turn it into a star, or to divest.

Question 18

Canada's Wonderland is identifying and developing new markets for its current theme parks. Canada's Wonderland is exploring possibilities for ________.

Accepted Answer

Market development involves identifying and developing new markets for existing products or services. This is exactly what Canada's Wonderland is doing by exploring possibilities for new markets for its current theme parks.

Question 19

The BCG growth-share matrix classifies four types of SBUs. They are ________.

Accepted Answer

The BCG growth-share matrix classifies SBUs into four categories: stars, cash cows, question marks, and dogs. Stars have high market share and high growth potential, cash cows have high market share but low growth potential, question marks have low market share but high growth potential, and dogs have low market share and low growth potential. Option A is incorrect as it lists the four Ps of marketing. Option B is incorrect as it mixes different marketing metrics. Option D is incorrect as it lists the four functions of management. Option E is incorrect as it lists the four growth strategies.

Question 20

The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________.

Accepted Answer

The four strategies for each SBU are building (increasing investment), holding (maintaining investment), harvesting (reducing investment while generating cash flow), and divesting (selling or liquidating the SBU). Therefore, the best choice is A, as it correctly lists the two remaining strategies as harvesting and divesting.

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