Question 1

In the Boston Consulting Group (BCG)portfolio analysis, products that are in low-growth markets could be called:

Accepted Answer

In the BCG matrix, products in low-growth markets with high market share are called "cash cows," while those with low market share are referred to as "dogs." This categorization helps companies decide where to invest, develop, or divest.

Question 2

Which of the following is the final step in the marketing planning process of an organization?

Accepted Answer

Evaluating the performance using marketing metrics is the final step in the marketing planning process, as it involves assessing the effectiveness of the marketing strategies and activities that have been implemented, allowing for adjustments and improvements.

Question 3

In the context of the Boston Consulting Group (BCG)portfolio analysis, which of the following is a similarity between the products represented by a star and a question mark?

Accepted Answer

Both products represented by a star and a question mark are in high growth-rate markets, meaning there is potential for significant growth in terms of both revenue and market share. The difference between the two is that a star has a high market share in its market while a question mark has a low market share.

Question 4

MM Manufacturing is a small-scale firm that manufactures optical cables.The firm's market share is significantly lower than most other players in the market.However, optical cable manufacturing is a high-growth market.Hence, the management of the company has decided to allocate more resources for the production of cables.According to the Boston Consulting Group (BCG)matrix, the company's offering is a:

Accepted Answer

The Boston Consulting Group (BCG) matrix is a tool used to analyze a company's product portfolio based on two dimensions - market share and market growth rate. The matrix categorizes products into four categories - stars, cash cows, dogs, and question marks.

Stars have high market share in high-growth markets and require heavy investment to maintain their position. Cash cows have high market share in low-growth markets and generate a lot of cash, hence they require less investment. Dogs have low market share in low-growth markets and offer little potential for growth. Question marks have low market share in high-growth markets and require a lot of investment to increase their share.

From the given information, it can be inferred that MM Manufacturing has a significantly lower market share compared to other players in the market. However, the optical cable manufacturing industry is a high-growth market. Therefore, the company's offering is a question mark, as it has low market share in a high-growth market and needs significant investment to increase its market share.

Question 5

Which of the following refers to a division of a company that can be managed somewhat independently from other divisions of the company since it markets a specific set of products to a clearly defined group of customers?

Accepted Answer

A strategic business unit (SBU) is a division of a company that operates as an independent business with its own strategy and objectives. It is managed somewhat independently from other divisions of the company since it markets a specific set of products to a clearly defined group of customers. SBUs may have their own unique branding, marketing, and operations strategies, and are typically evaluated separately from other business units in terms of their financial performance and strategic goals.

Question 6

Which of the following terms refers to a group of products that consumers are likely to use together or perceive as similar in some way?

Accepted Answer

A product line refers to a group of related products that consumers are likely to use together or perceive as similar in some way. A product mix refers to all the products a company offers for sale. A product portfolio refers to a company's entire collection of products and brands. A niche market refers to a specific, specialized market segment. A market mix refers to the set of marketing tools used by a company to promote its products or services.

Question 7

In the Boston Consulting Group (BCG)portfolio analysis, a product that serves a low-growth market but has a high market share in the industry is a:

Accepted Answer

A product that serves a low-growth market but has a high market share in the industry is a cash cow in the BCG portfolio analysis. Cash cows have high market share in a low-growth market, generating significant cash flows but requiring minimal investment. Therefore, they are strong sources of revenue and profits for the company.

Question 8

Which of the following is the marketing strategy that employs an existing marketing mix and focuses a firm's efforts on existing customers?

Accepted Answer

Market penetration is the marketing strategy that focuses on increasing a firm's sales within existing markets using existing products. It involves increasing the market share of the firm by convincing existing customers to buy more of a product or by attracting new customers to buy the product. The strategy involves using the existing marketing mix to increase the frequency of purchase, encourage repeat purchases, and stimulate referrals from existing customers.

Question 9

Denthrill Inc.is a firm that manufacturers dental products.Denthrill produces a range of products such as toothbrushes, toothpastes, and breath fresheners.These products form a:

Accepted Answer

Denthrill's range of products such as toothbrushes, toothpastes, and breath fresheners form a product line, which is a group of related products offered by a single company.

Question 10

In the context of the Boston Consulting Group (BCG)analysis, a firm whose offering is a star in an industry should:

Accepted Answer

A firm whose offering is a star in an industry should consider resource investments to fuel rapid growth. In the BCG matrix, stars have high market share in a high-growth industry. Therefore, investing in the star business will help it maintain or increase its market share while the industry continues to grow. This will also position the firm for later success when the growth rate slows down and the star business transitions into a cash cow.

Question 11

Capricus Leathers Inc. is a company that manufactures leather apparel and accessories. The company sells two products, Indigo and Tango. Both the products serve in a low-growth market. While Indigo has significant market share in the market, Tango has less than 1 percent market share.
-Which of the following terms is used in the Boston Consulting Group (BCG)product portfolio analysis to refer to a product that has a high market share in a high-growth market?

Accepted Answer

The term "star" is used in the BCG product portfolio analysis to refer to a product that has a high market share in a high-growth market. This is not the case with Indigo or Tango, as they are both in a low-growth market. Cash cow refers to a product with a high market share in a low-growth market, dog refers to a product with low market share in a low-growth market, and question mark refers to a product with low market share in a high-growth market. Neutral factor is not a term used in the BCG product portfolio analysis.

Question 12

Which of the following is a measure of a product's strength in a particular market?

Accepted Answer

Relative market share is a measure of a product's strength in a particular market. It is calculated by dividing the company's sales of a specific product by the total sales of all products in that market. A high relative market share indicates that the product is a market leader, while a low relative market share indicates that the product is struggling to compete in the market.

Question 13

Happy Puppy Inc., a manufacturer of toys, makes a wide variety of toys including board games, action figures, stuffed toys, and model airplanes.Since the market for board games is a low-growth market, the company decides to draw back its products in this market.In the context of the Boston Consulting Group (BCG)analysis, the company's offering of board games is a:

Accepted Answer

In the context of the Boston Consulting Group (BCG) matrix, products in low-growth markets with low market share are classified as "dogs." Since Happy Puppy Inc. decides to draw back its products in the low-growth market of board games, it implies that these products have low market share and are not expected to become leaders in their market, thus fitting the description of a "dog."

Question 14

In the context of the Boston Consulting Group (BCG)analysis, a firm whose product is a dog should:

Accepted Answer

According to BCG analysis, a product that is a dog has low market share and low market growth rate. Therefore, it is not a profitable product and the firm should phase it out and concentrate on other strategic business units that have higher growth potential and market share. Investing significant resources, launching an intense media campaign, starting a new production facility or sustaining the product will not be a wise use of resources for a product that has low market potential.

Question 15

Which of the following terms is used in the Boston Consulting Group (BCG)product portfolio analysis to refer to a product that has low market share in a market characterized by high growth?

Accepted Answer

The term used in BCG product portfolio analysis to refer to a product that has low market share in a market characterized by high growth is called a Question mark.

Question 16

The telecom sector in Slakavia has been growing at a fast pace in the last few years.Rex Telecom is the market leader in the Slakavian telecom market.In the context of the Boston Consulting Group (BCG)matrix, this firm is a:

Accepted Answer

The BCG matrix categorizes companies into four categories based on their market share and market growth rate. Rex Telecom, being the market leader in the fast-growing Slakavian telecom market, is likely to be a star. Stars have a high market share in a fast-growing market, which usually means high profits. Therefore, Rex Telecom has the potential to generate significant returns and is a star.

Question 17

A small non-profit organization ran a campaign on Facebook and Instagram to increase customers' donations.The ad briefly show case the cause and invite customers to donate through the non-profit's website.Which metrics would be the best to assess the effectiveness of this campaign?

Accepted Answer

The ultimate goal of the campaign is to increase donations, so the number of donors before and after the campaign would provide the most accurate metric to measure the effectiveness of the campaign. However, tracking website traffic before and after the campaign could also provide valuable insight into the success of the campaign. Ad exposure, click through rate and ad engagement are also important, but not as essential as the number of donors or website traffic in this case.

Question 18

A market penetration strategy requires:

Accepted Answer

A market penetration strategy aims at increasing market share in existing markets by intensifying distribution efforts. This may involve increasing advertising and promotional activities to persuade customers to switch to the company's product or expanding its sales force to reach more customers. Developing innovative products or entering new geographic markets is more indicative of a product development or market development strategy, respectively. While marketing efforts may be refined, a penetration strategy typically requires increased, not reduced, marketing efforts.

Question 19

Zorbo Furniture Inc.is a firm that manufactures and markets wooden furniture.One of the departments in the firm is devoted to the production and marketing of office furniture.The department is managed independently from other departments and is held accountable for its profitability.In this case, the office furniture department is an example of a(n):

Accepted Answer

The office furniture department is an example of a strategic business unit (SBU), which is a self-contained business entity within a larger organization. The SBU is managed independently and held accountable for its own profitability, which allows for greater focus and flexibility in pursuing its objectives.

Question 20

The growth rate of the soft-drink industry in the country of Norborg has been low for a few years now.Which of the following terms, according to the Boston Consulting Group (BCG)portfolio analysis, can be used to refer to Cranco Inc., the brand that has the highest market share in this industry?

Accepted Answer

The brand with the highest market share in a low-growth industry would be classified as a cash cow, according to the BCG portfolio analysis. Cash cows are characterized by a high market share in a low-growth market and generate significant profits, which can be used to support other products or businesses in the company's portfolio.

Quiz 2: Developing Marketing Strategies and a Marketing Plan

In the Boston Consulting Group (BCG) portfolio analysis, products that are in low-growth markets could be called:

Which of the following is the final step in the marketing planning process of an organization?

In the context of the Boston Consulting Group (BCG) portfolio analysis, which of the following is a similarity between the products represented by a star and a question mark?

Which of the following refers to a division of a company that can be managed somewhat independently from other divisions of the company since it markets a specific set of products to a clearly defined group of customers?

Which of the following terms refers to a group of products that consumers are likely to use together or perceive as similar in some way?

In the Boston Consulting Group (BCG) portfolio analysis, a product that serves a low-growth market but has a high market share in the industry is a:

Which of the following is the marketing strategy that employs an existing marketing mix and focuses a firm's efforts on existing customers?

Denthrill Inc.is a firm that manufacturers dental products.Denthrill produces a range of products such as toothbrushes, toothpastes, and breath fresheners.These products form a:

In the context of the Boston Consulting Group (BCG) analysis, a firm whose offering is a star in an industry should:

Which of the following is a measure of a product's strength in a particular market?

In the context of the Boston Consulting Group (BCG) analysis, a firm whose product is a dog should:

Which of the following terms is used in the Boston Consulting Group (BCG) product portfolio analysis to refer to a product that has low market share in a market characterized by high growth?

The telecom sector in Slakavia has been growing at a fast pace in the last few years.Rex Telecom is the market leader in the Slakavian telecom market.In the context of the Boston Consulting Group (BCG) matrix, this firm is a:

A small non-profit organization ran a campaign on Facebook and Instagram to increase customers' donations.The ad briefly show case the cause and invite customers to donate through the non-profit's website.Which metrics would be the best to assess the effectiveness of this campaign?

A market penetration strategy requires:

The growth rate of the soft-drink industry in the country of Norborg has been low for a few years now.Which of the following terms, according to the Boston Consulting Group (BCG) portfolio analysis, can be used to refer to Cranco Inc., the brand that has the highest market share in this industry?