Question 1

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 (selling more of an existing product to existing customers), market development (selling existing products to new markets), product development (creating and introducing new products to existing markets), and diversification (introducing new products to new markets). Segment development is not one of the four major growth strategies.

Question 2

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 star in the BCG portfolio analysis represents a product with high market share and high market growth. Fernando's product is described as having a recent high rate of growth and dominating its market, which fits the criteria for a star. Additionally, the fact that the company is investing a great deal of money in the product supports its classification as a star, as the investment is likely intended to further fuel its growth and solidify its position in the market.

Question 3

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

The bank is using customer relationship software to identify and sell more services to their existing customer base. This is an example of market penetration, which focuses on growing sales of existing products or services in existing markets.

Question 4

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

Accepted Answer

Marketing resource allocation decisions are typically made at the product line level of the firm, where managers have responsibility for specific product lines and are able to make strategic decisions regarding their marketing budgets and priorities. While corporate-level decisions may also play a role in overall resource allocation, it is typically the product line managers who have the most direct involvement in these decisions. Customer care, sales representatives, and accounting are all functional areas that may be impacted by marketing decisions, but are not typically responsible for making these decisions themselves.

Question 5

The strategic marketing planning process:

Accepted Answer

The strategic marketing planning process is not always sequential and can be completed in a variety of ways that best suit the organization's needs. It may start with any step in the process and be revisited multiple times throughout the planning process.

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 Boston Consulting Group approach to portfolio analysis involves assessing a product's position in the market in terms of its relative market share and the market growth rate. Therefore, Heather's focus on the sales of the product and the overall market, as well as the sales of competitors, aligns with determining the product's relative market share.

Question 7

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 8

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 markets, but licensing requirements restrict entry into certain markets, making this growth strategy difficult to pursue.

Question 9

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 one axis to determine the attractiveness of a particular market. This is because markets with high growth rates tend to have higher profit potential and offer greater opportunities for growth and expansion.

Question 10

Lamar owns four dry cleaning stores in the suburbs of Orlando,Florida.He recently updated his STP analysis,and has just finished adjusting his marketing mix based on the STP results.His next strategic marketing decision will likely involve:

Accepted Answer

Lamar's next strategic marketing decision will likely involve how to allocate resources among his four stores. This is because he has already updated his STP analysis and adjusted his marketing mix based on the results. The next step would be to effectively allocate resources to ensure that each of the four stores is performing optimally. This could include allocating resources for advertising, promotions, employee training, and other operational expenses. Options A, B, D, and E may be important considerations for Lamar's business, but they are not directly related to his next strategic marketing decision.

Question 11

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 related products that share similar characteristics and are marketed together. They may have similar uses, target the same customer segment, fulfill similar needs, or be sold through the same distribution channels. Examples of product lines include Nike's running shoes, Apple's iPhone, and Coca-Cola's soft drinks.

Question 12

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 services for existing markets. This strategy aims to increase sales and profits by offering customers something new or improved and encouraging them to make additional purchases.

Question 13

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps,Monique now has to make _____________ decisions.

Accepted Answer

After conducting STP analysis and developing strategies for each of the four Ps, Monique now needs to allocate her resources effectively in order to implement these strategies. This includes making decisions about how much budget to assign to each marketing mix element, which channels to use to reach her target market, which products to prioritize and invest in, etc. Therefore, option B (resource allocation) is the most appropriate answer. While options A, C, D, and E are all important considerations for a business, they are not directly related to the task of implementing marketing strategies after conducting an STP analysis.

Question 14

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

Accepted Answer

In BCG portfolio analysis, a "dog" is a product with low market share in a low-growth market and is generally considered for divestiture. However, if the dog product complements or boosts the sales of another product, it might be retained because it contributes to the overall portfolio by supporting more profitable products.

Question 15

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 that have received heavy investment and now have excess funds available to support other products are called cash cows. Cash cows are products that have high market share in a low-growth market, allowing them to generate significant cash flow with minimal investment. This excess cash can then be used to support other products in the portfolio.

Question 16

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 strategy described in the statement is product development, as companies are focused on developing new product offerings for existing customers rather than expanding into new markets.

Question 17

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

Adrienne is increasing her market share in her existing market by adding new sales representatives and increasing advertising, which is an example of market penetration strategy.

Question 18

Quitman Enterprises sells its business language dictionary to college students throughout the United States.Joseph Quitman,the owner,wants to start selling the book to international students abroad.Quitman wants to pursue a __________________ growth strategy.

Accepted Answer

Market development involves introducing existing products to new markets. In this case, Quitman Enterprises aims to reach international students, which is a new market for them, while still selling the same business language dictionary.

Question 19

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

Accepted Answer

Market development involves using the existing product or service offering to reach new market segments. Option A (product proliferation), Option C (market penetration), and Option E (product development) all focus on expanding the existing market for the current product/service offering, while diversification refers to developing new products/services for new markets. Therefore, B is the best choice as it describes the strategy of using the existing offering to reach new markets.

Question 20

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 looking to expand their customer base by targeting a new market (the military base). This aligns with the market development growth strategy. The other options (product proliferation, market penetration, diversification, and product development) do not fit the situation described in the scenario.

Quiz 2: Developing Marketing Strategies and a Marketing Plan