Question 1

During the late 1990s and early 2000s,skincare companies began to notice that the number of men using skincare products had increased dramatically.In an effort to leverage this trend,L'Oreal launched a new range known as L'Oreal Men Expert in 2005.This is an example of ________.
A)product development
B)market segmentation
C)market development
D)market penetration
E)repositioning

Accepted Answer

The answer of During the late 1990s and early 2000s,skincare...

Question 2

The growth strategy of diversification involves offering modified or new products to current markets.

Accepted Answer

Diversification involves entering into a new market with new products, which is different from modifying or offering new products to current markets, known as product development.

Question 3

A company should consider downsizing when products of an SBU no longer fit the company's overall strategy.

Accepted Answer

Downsizing is a strategic decision that a company may make when certain products or services of an SBU (strategic business unit) no longer align with the company's overall vision and objectives. This can be due to changes in market demand, technological advancements, or shifts in consumer preferences. In such cases, downsizing can help the company focus its resources and efforts on the most promising and profitable areas of its business.

Question 4

Starbucks has introduced a debit card that lets customers prepay for coffee and snacks.This effort by Starbucks management is an example of ________.
A)market development
B)product development
C)diversification
D)market penetration
E)product adaptation

Accepted Answer

Introducing a prepaid debit card for existing products (coffee and snacks) is an example of market penetration. This strategy aims to increase sales of current products in the current market without changing the product itself.

Question 5

Thinking about the product / market expansion grid,outline marketing activities that could be used to achieve each of the four growth options;market penetration,market development,product development,and diversification.

Accepted Answer

The answer of Thinking about the product / market expansion...

Question 6

More and more companies involve only upper-level management teams in strategic planning.

Accepted Answer

Strategic planning increasingly involves a broader range of stakeholders, including employees at various levels, to ensure diverse perspectives and buy-in across the organization.

Question 7

When designing business portfolios,most companies are well advised to add a broad range of products and businesses to their organisation.

Accepted Answer

Diversifying too broadly can spread resources too thin and detract from a company's core competencies, making it harder to maintain competitive advantages in key areas.

Question 8

What type of strategy should a company use to manage its cash cows?

Accepted Answer

The answer of What type of strategy should a company...

Question 9

The BCG matrix is the only approach to portfolio planning in widespread use today.

Accepted Answer

While the BCG matrix is one commonly used approach to portfolio planning, it is not the only one in widespread use today. Other common approaches include the GE McKinsey matrix, the Product Life Cycle matrix, and the Ansoff matrix, among others.

Question 10

In the product / market expansion grid,two approaches to growth that do not involve new product development are ________ ________ and ________ ________.

Accepted Answer

The answer of In the product / market expansion grid,two...

Question 11

The activity whereby management evaluates the products and businesses that make up the company is known as business ________ ________.

Accepted Answer

The answer of The activity whereby management evaluates the products...

Question 12

When QANTAS airlines launched its low-cost carrier,Jetstar,it soon found that Jetstar's budget prices appealed to a new market segment made up of first-time travellers who had previously been locked-out of air travel due to perceptions of high price.Jetstar's ability to reach first-time travellers is an example of ________ by QANTAS.
A)market segmentation
B)market penetration
C)diversification
D)market development
E)product development

Accepted Answer

Market development is the correct answer because it involves expanding the potential market through new users or new uses for a product. In this case, QANTAS, through Jetstar, reached out to first-time travelers, effectively developing a new market segment that had not been served before.

Question 13

In the BCG matrix,'dogs' by definition are businesses or products that do not generate enough cash to maintain themselves.

Accepted Answer

The answer of In the BCG matrix,'dogs' by definition are...

Question 14

________ entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy.
A)Market segmentation
B)BCG
C)Product line extension
D)Downsizing
E)Market redesign

Accepted Answer

Downsizing is the process of reducing the size or scope of a business, which may include eliminating products that are no longer profitable or do not fit the company's overall strategy. It can involve reducing the number of employees, closing unprofitable locations, or selling off business units that are not performing well.

Question 15

Given the benefits of strategic planning,how can you explain why some companies do not use this type of planning?

Accepted Answer

The answer of Given the benefits of strategic planning,how can...

Question 16

Though companies need to grow to compete effectively and satisfy their stakeholders,growth itself should not be a company's objective.

Accepted Answer

Growth can be a result of a company's efforts to achieve its objective of providing value to its customers and stakeholders. However, if growth becomes the primary objective, companies may compromise on their values, ethics, and long-term sustainability, which can harm their stakeholders and society. Therefore, growth should be a means to an end, and companies should focus on fulfilling their purpose and mission rather than just growing in size or revenue.

Question 17

The agribusiness corporation,Monsanto,which manufactures a herbicide under the brand name,RoundUp,has more recently begun to market herbicide-resistant seeds for assorted agricultural and vegetable crops.This is an example of ________.
A)market penetration
B)market development
C)diversification
D)harvesting
E)product development

Accepted Answer

Product development involves creating new products or improving existing ones. Monsanto is developing new herbicide-resistant seeds, which is an example of product development.

Question 18

Acme Innovations Pty Ltd has modified the production processes of its widgets and gadgets in order to tap into the developing Eastern European market.It is likely following a ________ strategy.
A)market penetration
B)market development
C)diversification
D)harvesting
E)product development

Accepted Answer

The company has modified its production processes in order to tap into a developing market, indicating a market development strategy. Market penetration involves increasing market share in an existing market, diversification involves entering new markets with new products, harvesting involves reducing investment in a product or market, and product development involves creating new products for an existing market. None of these strategies fit the scenario described in the question as well as market development.

Question 19

Which of the following is NOT a reason that a firm might want to abandon products or markets?
A)The market environment has changed,making a product less profitable.
B)The firm has entered areas in which it does not have expertise.
C)The economic climate is showing signs of recovery.
D)The firm has grown too fast.
E)The firm has not properly researched foreign markets which it has entered.

Accepted Answer

The economic climate showing signs of recovery is not a reason for a firm to abandon products or markets. The other options are potential reasons for a firm to discontinue involvement in certain markets or products.

Question 20

In the product / market expansion grid,two approaches to growth that involve new product development are ________ and ________.

Accepted Answer

The answer of In the product / market expansion grid,two...

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

During the late 1990s and early 2000s,skincare companies began to notice that the number of men using skincare products had increased dramatically.In an effort to leverage this trend,L'Oreal launched a new range known as L'Oreal Men Expert in 2005.This is an example of ________.

The growth strategy of diversification involves offering modified or new products to current markets.

A company should consider downsizing when products of an SBU no longer fit the company's overall strategy.

Starbucks has introduced a debit card that lets customers prepay for coffee and snacks.This effort by Starbucks management is an example of ________.

Thinking about the product / market expansion grid,outline marketing activities that could be used to achieve each of the four growth options;market penetration,market development,product development,and diversification.

More and more companies involve only upper-level management teams in strategic planning.

When designing business portfolios,most companies are well advised to add a broad range of products and businesses to their organisation.

What type of strategy should a company use to manage its cash cows?

The BCG matrix is the only approach to portfolio planning in widespread use today.

In the product / market expansion grid,two approaches to growth that do not involve new product development are and .

The activity whereby management evaluates the products and businesses that make up the company is known as business .

In the BCG matrix,'dogs' by definition are businesses or products that do not generate enough cash to maintain themselves.

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

Given the benefits of strategic planning,how can you explain why some companies do not use this type of planning?

Though companies need to grow to compete effectively and satisfy their stakeholders,growth itself should not be a company's objective.

The agribusiness corporation,Monsanto,which manufactures a herbicide under the brand name,RoundUp,has more recently begun to market herbicide-resistant seeds for assorted agricultural and vegetable crops.This is an example of ________.

Acme Innovations Pty Ltd has modified the production processes of its widgets and gadgets in order to tap into the developing Eastern European market.It is likely following a ________ strategy.

Which of the following is NOT a reason that a firm might want to abandon products or markets?

In the product / market expansion grid,two approaches to growth that involve new product development are and .