Question 1

Which of the following statements regarding diversification analysis is most accurate?

Accepted Answer

This statement accurately describes the concept of diversification analysis, which involves identifying both potential new products and potential new markets for a company to enter. The other statements are incorrect; diversification analysis can be used by companies of any age, it is not limited to consumer products, and it is not used specifically to forecast industry sales.

Question 2

During Super Bowl 50,Taco Bell unveiled its latest offering for the U.S.market,the "quesalupa," a hybrid of a quesadilla and a chalupa.Here,Taco Bell was using a __________ strategy.

Accepted Answer

The introduction of a new product, the quesalupa, indicates that Taco Bell is using a product development strategy aimed at bringing new offerings to the U.S. market. This is different from market development, which would involve expanding the company's marketing efforts into new geographic areas or demographic segments. Market penetration involves increasing the company's market share in existing markets, while diversification involves launching new products or services in different markets. Market saturation would refer to a situation in which the market is fully saturated and there is no more room for growth.

Question 3

Product development refers to the marketing strategy of

Accepted Answer

The answer of Product development refers to the marketing strategy...

Question 4

When using a __________ strategy,there is no change in either the basic product line or the markets served.Instead,increased sales are generated by selling either more products through better promotion or distribution or the same number of products at a higher price.

Accepted Answer

The description matches the market penetration strategy, which focuses on increasing sales by either promoting or distributing the existing products better or by selling them at a higher price. The other options involve either expanding the product line or entering new markets, which is not the case here.

Question 5

Part of the growth strategy for Yum! Brands,the parent company of KFC,Pizza Hut,and Taco Bell,is expansion of its current fast-food businesses into new markets,such as China,Russia,and India.This type of expansion would be a __________ strategy.

Accepted Answer

Market development involves expanding a company's current products into new markets. This is exactly what Yum! Brands is doing by expanding its current fast-food businesses into new markets such as China, Russia, and India.

Question 6

Diversification analysis refers to

Accepted Answer

Diversification analysis is a technique that helps a firm identify and evaluate growth opportunities by analyzing both its current and potential markets and products. It involves assessing the potential of existing products in existing markets, developing new products for existing markets, entering new markets with existing products, or diversifying by creating new products for new markets.

Question 7

Market penetration refers to the marketing strategy of

Accepted Answer

Market penetration refers to the strategy of increasing sales of current products in current markets. It involves increasing market share by attracting more customers to the existing products with strategies such as advertising, promotions, and pricing.

Question 8

If Ben & Jerry's sold a line of new "Get the Dough Out of Politics" T-shirts targeted to college students in the United States,it would be using a __________ strategy.

Accepted Answer

Ben & Jerry's currently does not sell clothing but supports getting "big money" out of politics as part of its social mission.Product development is a marketing strategy to increase sales of new products ("Get the Dough Out of Politics" T-shirts)in current markets (U.S.college students).

Question 9

If sales revenues for Starbucks VIA Ready Brew instant coffee sold to U.S.consumers increased as a result of a slight price increase of $0.25 per pack,it would be using a __________ strategy.

Accepted Answer

Market penetration is a strategy where a company tries to increase its market share in existing markets with existing products. In this scenario, Starbucks is trying to increase its sales revenue by increasing the price of a current product. This means they are trying to penetrate deeper into the current market by encouraging customers to pay a slightly higher price for the same product. This strategy is known as market penetration.

Question 10

A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is referred to as

Accepted Answer

Key term definition-diversification analysis.

Question 11

One way a company can benefit from implementing a market penetration strategy would be to

Accepted Answer

The answer of One way a company can benefit from...

Question 12

Which of the marketing strategies for expanding sales revenue presents the most risk for an organization?

Accepted Answer

Diversification presents the most risk for an organization as it involves entering new markets with new products that the organization may not have experience or expertise in. This strategy requires significant investment and resources, and there is a chance of failure if the new markets do not respond positively to the products. Additionally, diversification can dilute the organization's brand and focus, leading to confusion among customers and stakeholders.

Question 13

The marketing strategy to sell current products to new markets is referred to as

Accepted Answer

Market development involves selling existing products to new markets. This strategy aims to increase sales by identifying and entering new markets that are currently unserved or underserved by the company's products. The goal is to expand the company's customer base and increase overall revenue without creating new products or services.

Question 14

A marketing strategy to increase sales of current products in current markets is referred to as

Accepted Answer

Market penetration involves increasing sales of existing products in current markets. This can be done through various tactics such as increasing distribution, price adjustments, and promotional activities.

Question 15

Market development refers to the marketing strategy of

Accepted Answer

Market development involves expanding the target market for a product or service by finding new markets to sell to. This can involve selling current products to new markets or finding ways to adapt current products to meet the needs of new markets. Choice E, selling current products to new markets, best reflects this strategy.

Question 16

If Ben & Jerry's starts selling Bonnaroo Buzz Fair Trade-sourced super premium ice cream in Brazil for the first time,it will be using a __________ strategy.

Accepted Answer

Market development is the strategy of introducing existing products into new markets. In this case, Ben & Jerry's is introducing Bonnaroo Buzz, an existing product, into a new market of Brazil.

Question 17

Diversification refers to the marketing strategy of

Accepted Answer

Diversification refers to entering new markets by selling new products, which is precisely what answer C describes. The other choices refer to different marketing strategies: A is market penetration, B is market development, and D is product development. Choice E is not a complete or accurate definition of diversification.

Question 18

The marketing strategy of developing new products and selling them in new markets is referred to as

Accepted Answer

The answer of The marketing strategy of developing new products...

Question 19

The marketing strategy of selling new products to current markets is referred to as

Accepted Answer

The answer of The marketing strategy of selling new products...

Question 20

If Ben & Jerry's sold more units of its Bonnaroo Buzz Fair Trade-sourced super premium ice cream to U.S.consumers as a result of increased promotion while keeping its price per pint the same,it would be using a __________ strategy.

Accepted Answer

Market penetration involves increasing sales of existing products to existing customers in the current market. In this scenario, Ben & Jerry's is promoting their existing product (Bonnaroo Buzz ice cream) to increase sales to U.S. consumers, which aligns with a market penetration strategy. The other options (product development, market development, diversification, and market saturation) involve expanding into new markets, developing new products, or pursuing new strategies altogether, which do not apply in this case.

Quiz 2: Developing Successful Organizational and Marketing Strategies