Question 1

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

If the growth rate of the industry is low, then according to the BCG matrix, the brand with the highest market share would most likely be a Cash Cow, which is a product that has high market share in a low-growth market.

Question 2

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 matrix. Cash cows generate a high amount of income due to their dominant market share, but they are unlikely to experience significant growth in the future. Therefore, they require less investment than stars and question marks, which are high-growth products but require heavy investment.

Question 3

A company attempts to increase its market share by engaging in aggressive promotional activities.The company increases its spending on advertising and sales promotions.Which of the following strategies has been used by the company in the given scenario?

Accepted Answer

The company is engaging in market penetration strategy by increasing its spending on advertising and sales promotion to increase its market share in the existing market. Product diversification involves developing new products for new markets, market development involves entering new markets with existing products, product development involves developing new products for existing markets, and market diversification involves entering new markets with new products.

Question 4

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

In the BCG product portfolio analysis, a product with a high market share in a high-growth market is referred to as a "Star."

Question 5

In the Boston Consulting Group (BCG)portfolio analysis,products that are in low-growth markets and have relatively low market shares are called:

Accepted Answer

Products that are in low-growth markets and have relatively low market shares are called "dogs" in the BCG portfolio analysis.

Question 6

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 a strategic business unit (SBU) because it operates independently in terms of management, is responsible for its own profitability, and focuses on a specific product line (office furniture). SBUs are often used to help companies better manage their diversified portfolio of businesses.

Question 7

Which of the following best describes a market penetration strategy?

Accepted Answer

A market penetration strategy focuses on increasing sales of existing products in an existing market. Obtaining new customers from an existing target market is an example of a market penetration strategy.

Question 8

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

MM Manufacturing's low market share and high growth market signify a "question mark" offering in the BCG matrix. This suggests that the firm's product has the potential to become a star in the future, but requires significant investment to increase its market share.

Question 9

Market growth rate is the:

Accepted Answer

Market growth rate refers to the annual rate of growth of the specific market in which a product competes. It is a measure of how fast the market is expanding or contracting, and is important for firms to understand in order to set realistic growth targets and develop effective marketing strategies.

Question 10

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

The BCG matrix categorizes products into four categories: stars, cash cows, question marks, and dogs. Board games have been identified as a low-growth market, which means they are not generating significant profits for the company. Therefore, the company's offering of board games is a dog.

Question 11

A market penetration strategy requires:

Accepted Answer

A market penetration strategy focuses on increasing sales of existing products in existing markets. Intensified distribution efforts would help reach more customers in those markets, increasing sales without substantially increasing marketing efforts or reducing advertising spending. Developing a highly innovative product or entering a new geographic market would fall under a different strategy.

Question 12

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

Accepted Answer

According to the BCG matrix, a product that is classified as a dog has low market share and low market growth, indicating that it is not generating substantial revenue for the firm. In this case, it is best for the firm to phase out the product and concentrate on other more profitable strategic business units. Investing significant resources, launching an intense media campaign, starting a new production facility, or using extra resources to sustain the product would be unwise as it would not likely result in generating significant revenue or adding value to the firm.

Question 13

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 are marketed and sold under a single brand or category. They are likely to be used together or perceived as similar in some way, whereas a product mix refers to all the products that a company sells, regardless of whether they are related or not. Product portfolio typically refers to a company's entire range of products, and a niche market refers to a small but specific and profitable segment of the market. Market mix refers to the various elements a company can use to promote its products, such as the four Ps (product, price, place, and promotion).

Question 14

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

The given information suggests that Denthrill Inc. produces a range of dental products such as toothbrushes, toothpastes, and breath fresheners. These products belong to a unified group of related items and form a product line. Therefore, the correct choice is D) product line.

Question 15

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

Accepted Answer

Relative market share is a measure that compares the sales of a company's product or brand to its competitors in a particular market, indicating the product's strength or position in that market. A higher relative market share indicates a stronger position in the market. Therefore, D is the correct choice. The other options are not directly related to measuring a product's strength in a particular market.

Question 16

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

In the BCG matrix, a product with low market share in a high growth market is referred to as a "question mark" or "problem child." These products typically require significant investment to maintain or increase their market share in order to become a "star" or "cash cow" in the future.

Question 17

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

Accepted Answer

A star in the BCG matrix represents a business unit that has a high market share in a growing industry. Such a business unit has strong potential for continued growth and future profitability. Therefore, the firm should consider investing resources in the unit to fuel its growth and maximize returns.

Question 18

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 stars and question marks represent products in high growth-rate markets, with stars having high market share and question marks having low market share. Both have the potential to generate considerable revenue for their respective firms. However, stars have surplus resources remaining after production, while question marks require significant resources to maintain and potentially grow market share. Neither are specifically used to boost the sales of other products.

Question 19

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 focuses on increasing sales of existing products to existing customers, using the same marketing mix. The other options refer to different strategies that involve introducing new products or reaching out to new markets/customers.

Question 20

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

Market leader indicates that Rex Telecom has a high relative market share in the Slakavian telecom market, which is a characteristic of a star in the BCG matrix. Additionally, the fact that the telecom sector in Slakavia has been growing at a fast pace also supports the idea that Rex Telecom is a star as it operates in a high-growth market.

Quiz 2: Developing Marketing Strategies and a Marketing Plan

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?

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:

A company attempts to increase its market share by engaging in aggressive promotional activities.The company increases its spending on advertising and sales promotions.Which of the following strategies has been used by the company in the given scenario?

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?

In the Boston Consulting Group (BCG) portfolio analysis,products that are in low-growth markets and have relatively low market shares are called:

Which of the following best describes a market penetration strategy?

Market growth rate is the:

A market penetration strategy requires:

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

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?

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:

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

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?

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

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

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: