Question 1

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

Cash cows are products in low-growth markets that have already received heavy investment and are now generating excess funds that can be used to support other products. Stars are products in high-growth markets that require heavy investment to sustain their growth, question marks are products in high-growth markets that require significant investment to maintain or increase their market share, and dogs are products in low-growth markets that are not generating enough revenue to justify continued investment. Anchors are not a term used in BCG portfolio analysis.

Question 2

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 market growth rate as the basis for determining market attractiveness. The other factors listed may be considered when evaluating specific products within the market.

Question 3

The strategic marketing planning process:

Accepted Answer

The strategic marketing planning process is not always sequential, as different steps may need to be revisited or adjusted throughout the process.

Question 4

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 involves reaching new markets with existing products. In this case, Quitman is targeting international students abroad with his existing language dictionary, which fits the description of market development. The other options (product proliferation, market penetration, diversification, and product development) do not accurately describe Quitman's strategy to expand his business.

Question 5

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

Accepted Answer

Market development involves using existing products to target new markets.

Question 6

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 7

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

Accepted Answer

The answer of Using the BCG portfolio analysis,a "dog" should...

Question 8

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

Market development involves expanding into new markets with existing products, which is what H&R would be doing by targeting the military base. The other options do not fit the scenario as well - product proliferation involves offering more products in the same market, market penetration involves increasing market share in an existing market, diversification involves expanding into new markets with new products, and product development involves creating new products for an existing market.

Question 9

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 is experiencing high growth and dominance in its market would be classified as a star in the BCG portfolio analysis. Stars require a significant amount of investment to maintain their growth and market dominance, which is why Fernando is thrilled about the recent investment in his product.

Question 10

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 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(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 are related in some way, whether it's because they are used together, share similar features, or fulfill the same basic need. Examples of product lines include different flavors of soda by a single brand, or a range of skincare products from the same company.

Question 13

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

Market development involves expanding into new geographic areas or markets. Licensing requirements create barriers to entry for out-of-state professionals, thus limiting market development strategies.

Question 14

Introducing newly developed products or services to a market segment the company is not currently serving is called:

Accepted Answer

The answer of Introducing newly developed products or services to...

Question 15

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 16

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 17

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

Accepted Answer

The four major growth strategies are market penetration, market development, diversification, and product development. Segment development is not one of the four main strategies.

Question 18

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 is a growth strategy pursued by a company to increase its market share of its existing products or services by increasing advertising, promotions, or adding new sales representatives in the existing market. This is exactly what Adrienne is doing.

Question 19

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

Market penetration is a growth strategy where a company focuses on selling more of its current products or services to its current customers, and in this case, the bank is using customer relationship software to offer additional banking services to its existing customers. This strategy aims to increase revenues and profitability by increasing the customer base and getting customers to use more of the bank's services.

Question 20

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

Accepted Answer

Product development refers to introducing new products or services to existing markets. This growth strategy is focused on increasing revenue from existing customers rather than seeking out new ones. Product proliferation involves introducing multiple variations of a product, while market development targets new customer segments. Market penetration is about increasing market share within an existing market, and diversification involves entering new markets with new products or services.

Quiz 2: Developing Marketing Strategies and a Marketing Plan