Question 1

Which of the following usually describes a company's major business thrusts,customer orientation,or business philosophy,in general terms?

Accepted Answer

A mission statement is a broad statement that outlines a company's purpose, values, and direction. It typically describes a company's major business thrusts, customer orientation, and/or business philosophy in general terms.

The other options listed are more specific concepts within marketing. A value proposition is a statement that describes the clear benefit that a product or service provides to its target customer. The marketing mix is a set of tactical tools that a company uses to promote its products or services to its target audience. Product positioning is the way in which a company's product is perceived in the market in comparison to its competitors.

Question 2

A ________ strategy targets customers who have not yet purchased the product or service.

Accepted Answer

Market development strategy targets customers who have not yet purchased the product or service by focusing on entering new markets and attracting new customers. Market formation, market penetration, and market modification strategies involve targeting existing or established markets and customers.

Question 3

"Increasing market share" and "increasing profit" is a poor objective because:

Accepted Answer

Both objectives are poorly defined because they are not stated in quantitative terms. However, this is the only flaw mentioned in the question, so the answer is solely B.

Question 4

Five sets of factors should be considered when deciding on how to enter a new foreign market.Identify the key feature of country characteristics.

Accepted Answer

Country characteristics in the context of entering a new foreign market typically refer to the market size and growth potential, as these factors determine the attractiveness and potential profitability of the market.

Question 5

There is often tension between objectives of increasing market share and increasing profits because:

Accepted Answer

Increasing market share requires increasing sales, which may involve activities such as price reductions, increased advertising, and expanded distribution channels. These activities can all lower profit margins and increase costs, making it difficult to increase both market share and profitability simultaneously.

Question 6

Customers who have purchased your product or service are familiar with its benefits.Assuming that your customers enjoyed the consumption experience,there is often potential left in the market from the current customers who could be persuaded to buy more.You,as a marketing manager,should therefore prioritize:

Accepted Answer

The best strategy to pursue in this scenario is a market penetration strategy. This strategy involves focusing on increasing sales of existing products to existing customers. Since these customers are already familiar with the benefits of the product or service, it is easier to persuade them to buy more. This can be achieved through tactics such as targeted promotions, loyalty programs, and cross-selling. Market development strategy is focused on expanding into new markets, which is not relevant in this scenario. Diversification strategy involves developing new products for new markets, which is also not relevant. A product development strategy would involve creating new products for existing markets, which is not the best approach in this scenario.

Question 7

The value proposition is operationalized and represented in the customers' minds through:

Accepted Answer

Product positioning is the process of creating an image for the product in the minds of the customers. It involves highlighting the unique features and benefits of the product that differentiate it from competitors and creating a perception of value for the customers. Therefore, product positioning is the most relevant option for operationalizing and representing the value proposition in customers' minds. The mission statement and annual reports provide information about the company's goals and financial performance, while effective sales pitches are a communication tool to persuade customers to buy the product. However, none of these options directly link to how customers perceive the value proposition.

Question 8

It easier to persuade a competitor's customer to switch to product or service in the:

Accepted Answer

In the maturity stage of the product life cycle, the market is saturated, and customers are familiar with the available options, making them more open to considering alternatives if presented with compelling reasons to switch.

Question 9

Which of the following is a characteristic of a good objective statement?

Accepted Answer

A good objective statement should be stated in measurable terms so that it can be objectively evaluated and tracked for progress. Assigning individual responsibility, being defined in qualitative terms, and not being too challenging are not necessarily characteristics of a good objective statement.

Question 10

Identify the statement that addresses the mode of entry.

Accepted Answer

Option C directly addresses the mode of entry by suggesting a joint venture with a firm that already has a strong presence in the market. The other options address pricing strategies and supply chain management, but do not specifically address mode of entry.

Question 11

The ________ is the criterion by which the success or failure of the strategy is measured.

Accepted Answer

The objective is the specific goal that the strategy aims to achieve, and it serves as the criterion for evaluating the success or failure of the strategy. Customer targets and competitor targets are important factors in developing a strategy, but they are not the criteria for measuring its success or failure. The marketing mix refers to the combination of product, price, promotion, and distribution strategies used to achieve the objectives of the strategy.

Question 12

Marketing managers use a market penetration strategy to target:

Accepted Answer

Market penetration strategy focuses on increasing the market share of an existing product or service among existing customers or customers of direct competitors. The goal is to convince these customers to switch to the company's product or service. Therefore, option C is the best choice as it includes the individuals who are either buying the company's product or service or its direct competitors.

Question 13

Which of the following is an example of a trade barrier?

Accepted Answer

Quota is a policy of restricting quantity or imposing a limit on the number of imported goods to protect domestic markets from foreign competition. It is a form of a trade barrier that restricts the volume of trade between nations. Credit and inflation are not related to trade barriers, and "Quote" is likely a misspelling of "Quota" and therefore the same as answer B.

Question 14

Once the decision has been made to enter a country,the most important decision is:

Accepted Answer

The mode of entry is the most important decision because it determines how the company will establish itself in the foreign market and how much control it will have over its operations. Different modes of entry have their own advantages and disadvantages, and the company needs to choose the mode that best aligns with its goals and resources. The cost of entry, distribution strategy, and pricing can all be adjusted based on the mode of entry chosen, making it the most crucial decision.

Question 15

Which of the following is often referred to as the "4Ps" of marketing?

Accepted Answer

The "4Ps" of marketing refers to the marketing mix which includes product, price, promotion, and place.

Question 16

Entering foreign markets is an example of a:

Accepted Answer

Entering foreign markets is a market development strategy, as it involves expanding the company's market reach into new geographical locations. A product development strategy involves creating new products or modifying existing ones, while a market penetration strategy focuses on increasing market share in existing markets. A market modification strategy refers to changing the target market, such as by adjusting the pricing or distribution strategy.

Question 17

Identify the factor that can be controlled by a company while entering a foreign market.

Accepted Answer

A company can control its country selection while entering a foreign market by evaluating various factors such as market size, market growth rate, competition, political stability, and legal and cultural environments in different countries.

Question 18

The ________ communicates the reasons to buy a product/ service to a specific customer group.

Accepted Answer

The core strategy of a business includes the target market and value proposition, which communicate the reasons to buy a product/service to a specific customer group. A mission is a broad statement of the company's purpose, objectives are specific goals, and the marketing mix includes tactics related to product, price, promotion, and place. None of these options specifically address communicating reasons to buy to a customer group.

Question 19

When marketing managers consider the alternative differentiation possibilities and determine what differential advantages are to be emphasized and communicated to the target customer,they are engaging in:

Accepted Answer

Product positioning involves determining the differential advantages of a product and how these should be communicated to the target customer.

Question 20

Identify the correct statement about market development strategy.

Accepted Answer

Market development strategy is usually implemented in markets where growth rate is slowing. It focuses on finding new markets or new uses for existing products to increase sales, rather than trying to increase market share with existing customers. Option A and Option D are incorrect as market development strategy can be risky and expensive. Option C is incorrect as customer persuasion is the objective of market penetration strategy, not market development strategy.

Quiz 2: A Strategic Marketing Framework