Question 1

To determine how attractive a particular market is in using the BCG portfolio analysis,__________________ is established as one axis.

Accepted Answer

The BCG portfolio analysis uses a matrix with market growth rate established as one axis and relative market share established as the other axis to determine how attractive a particular market is. The market growth rate represents the potential for future growth and profitability in the market.

Question 2

The strategic marketing planning process:

Accepted Answer

The strategic marketing planning process is not always a strict sequential process, as it often involves iterative and flexible decision-making. Different steps may be revisited or adjusted based on changes in the market or other factors.

Question 3

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy.

Accepted Answer

Product development involves creating new products or modifying existing ones to offer to existing customers. This strategy aims to increase sales and profits by satisfying the needs and wants of the company's current customer base.

Question 4

When pursuing a market development strategy,expanding into international markets is generally:

Accepted Answer

The answer of When pursuing a market development strategy,expanding into...

Question 5

Maryam called her auto insurance agent to renew her policy.The agent told her about new types of insurance that are now available--to cover her apartment,or even the engagement ring she just got from her fiancé.The agent was pursuing a ________________ growth strategy.

Accepted Answer

The answer of Maryam called her auto insurance agent to...

Question 6

Using the BCG portfolio analysis,a "dog" should be phased out unless:

Accepted Answer

A "dog" in the BCG matrix has low market share and low growth. However, if it complements or boosts the sales of another product, it may still be valuable to the company and worth keeping.

Question 7

H&R is a small,local heating and air conditioning business.The area military base is a potential source of growth,and H&R already installs and services the type of equipment the military would require,but it is difficult to get established as a certified government contractor.H&R is considering a ____________ growth strategy.

Accepted Answer

H&R is considering market development as they are looking to expand their business by entering a new market (military base) while still offering the same type of products and services they currently provide.

Question 8

A(n)___________ is a group of products that consumers may use together or perceive as similar in some way.

Accepted Answer

A product line is a group of products that consumers may use together or perceive as similar in some way. A product line may include different variations of a product or different products that all serve a similar purpose.

Question 9

Most banks now have customer relationship software which,when a customer contacts the bank,tells the service representative what types of accounts,loans,and credit cards the customer currently has.Service representatives use this information to sell some of the other services the bank currently offers to these customers.This is a ___________________ growth strategy.

Accepted Answer

This is an example of market penetration, which involves selling more of the same products or services to existing customers. By utilizing customer relationship software to identify the types of accounts, loans, and credit cards the customer currently has, the bank is able to offer them additional services to increase their share of the customer's wallet. Product proliferation, product development, and diversification involve offering new products or services, while market development involves expanding into new markets.

Question 10

Quitman sells his business language dictionary to college students throughout the United States.He wants to start selling the book to international students abroad.Quitman wants to pursue a __________________ growth strategy.

Accepted Answer

Market development refers to expanding sales of existing products to new international markets, which aligns with Quitman's goal of selling his existing business language dictionary to international students abroad. Product proliferation, product development, and diversification all involve creating or offering new products, which is not Quitman's current goal. Market penetration involves increasing sales within an existing market, but Quitman is seeking to enter new international markets.

Question 11

For many years,because of the size of the U.S.economy,domestic companies ignored international markets,preferring instead to develop new product offerings for existing customers.These companies were pursuing a ________________ strategy.

Accepted Answer

The answer of For many years,because of the size of...

Question 12

A ______ growth strategy employs the existing marketing offering to reach new market segments.

Accepted Answer

Market development involves using the existing products or services to enter new markets. This growth strategy aims to expand the customer base by selling to new geographic or demographic segments.

Question 13

Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems.Adrienne is pursuing a __________ growth strategy.

Accepted Answer

Market penetration strategy refers to increasing sales of existing products in existing markets. By adding new sales representatives and increasing advertising in the existing market, Adrienne is trying to penetrate deeper into the market and increase her market share.

Question 14

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants)designed to restrict entry into their market by professionals from other states.This strategy limits ____________ growth strategies.

Accepted Answer

Licensing requirements restrict entry into a state's market by professionals from other states, which limits market development strategies.

Question 15

Heather has been assessing a number of her firm's products using the Boston Consulting Group approach to portfolio analysis.She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors.Heather is trying to determine:

Accepted Answer

The answer of Heather has been assessing a number of...

Question 16

In BCG portfolio analysis,products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called:

Accepted Answer

Products in low-growth markets with excess funds available to support other products are called cash cows. They are considered to have high market share but low market growth, and therefore are expected to generate significant cash flows which can be invested in other products.

Question 17

Sarah has decided to pursue a market penetration strategy for her French cookware product line.She will likely increase advertising and sales promotion.She may also consider:

Accepted Answer

Getting the stores who carry her products to promote them more heavily is aligned with the market penetration strategy as it aims to increase sales and market share within the existing market. Investing in a travel agency or shifting resources into a new line of products would be a diversification strategy rather than a market penetration strategy, while expanding into new geographic regions may be considered as a market development strategy. Offering French cooking classes may support the sales of the cookware products but it may not directly contribute to market penetration.

Question 18

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing.He knows that even with its recent high rate of growth and the fact that it dominates its market,he would need more money to establish it firmly.Using the BCG portfolio analysis,his product would be classified as a(n):

Accepted Answer

A product that dominates its market and has high growth rate is classified as a star in the BCG portfolio analysis. This means that it requires further investment to establish it firmly in the market.

Question 19

In most companies,marketing resource allocation decisions are made at the SBU or ___________ level of the firm.

Accepted Answer

SBU stands for Strategic Business Unit, and marketing resource allocation decisions are generally made at this level or at the product line level. Corporate level decisions tend to be related to overall strategy and resource allocation for the company as a whole, while customer care, sales representative, and accounting decisions relate to specific functions within the company rather than overall marketing resource allocation.

Question 20

Which of the following is NOT one of the four major growth strategies marketers typically utilize?

Accepted Answer

The four major growth strategies consist of market penetration (selling more of the same product to the same market), market development (selling the same product to different markets), product development (developing and selling new products to the same market), and diversification (developing and selling new products to new markets). Segment development is not typically considered one of the four major growth strategies.

Quiz 2: Developing Marketing Strategies and a Marketing Plan