Question 1

The marketing strategy to increase sales of current product in existing markets is referred to as

Accepted Answer

Market penetration is the marketing strategy that aims to increase sales of existing products in existing markets. It involves increasing the market share of a product by attracting more customers or convincing existing customers to buy more. This strategy may involve price adjustments, promotion, or distribution tactics to make the product more appealing and accessible to customers.

Question 2

One of the weaknesses inherent in the use of the BCG business portfolio analysis is that

Accepted Answer

The answer of One of the weaknesses inherent in the...

Question 3

Market penetration refers to the strategy of

Accepted Answer

Market penetration is a strategy where a company focuses on selling its current products more effectively in already existing markets. The goal is to increase the market share and customer base by gaining more customers or convincing existing customers to buy more. This can be achieved through price adjustments, increased marketing and advertising, improving distribution channels, and other promotional activities.

Question 4

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

Accepted Answer

Diversification involves creating new products and selling them in new markets, which is different from expanding existing products into new markets or increasing market share with existing products.

Question 5

Diversification analysis refers to

Accepted Answer

Diversification analysis is a tool used to search for growth opportunities from among current and new markets as well as current and new products. It helps a company to determine the potential of each business unit or product in terms of market growth and market share, and allocate resources accordingly. It involves analyzing the current product portfolio and identifying opportunities for growth and diversification. The analysis includes assessing trends in the market, identifying customer needs, and evaluating the strengths and weaknesses of the company's current offerings.

Question 6

A tool 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

Diversification analysis is a strategic tool used by firms to identify growth opportunities by examining current and new markets alongside current and new products.

Question 7

One of the strengths inherent in the use of the BCG business portfolio analysis is the fact that it

Accepted Answer

The BCG business portfolio analysis forces firms to assess their strategic business units (SBUs) in terms of their relative market share and industry growth rate, which can help them make decisions about which SBUs to invest in or divest from. Despite criticisms, this simple framework is still widely used by companies to evaluate their product portfolio and make strategic decisions. The other options are not accurate; it is not easy to place an SBU on the BCG matrix, it does not consider all factors impacting an SBU's value, it does not act as a motivational tool, and it does not provide specific guidelines on how to solve SBU shortcomings.

Question 8

In 2008, Kodak's ink-jet printer could be considered a question mark because the market dramatically changed as consumers shifted from single-purpose to multi-function machines designed to print photos, make copies, scan images, and send faxes.Today Kodak now offers only multi-function ones.If Kodak can double or triple unit sales soon, this SBU star could become a _________, if online printing and sharing steal market share, the SBU could become a _________.

Accepted Answer

The inkjet printer can be considered a star if Kodak can double or triple unit sales soon. However, if online printing and sharing steal market share, the inkjet printer SBU could become a dog. A cash cow generates high profits with low market growth, but the inkjet printer is not in that category. The inkjet printer cannot be considered a problem child because it has been in the market for a while and there have been no indications that it cannot compete. Finally, E is incorrect because the inkjet printer's status has changed from a question mark to a star or dog based on market conditions.

Question 9

While digital photography caused Kodak's traditional film division to quickly move from cash cow to dog, for Kodak's digital camera SBU, the same technology and consumer demand will

Accepted Answer

Digital photography created a new market demand for digital cameras, which Kodak's digital camera SBU could cater to. Therefore, the same technology and consumer demand would allow the SBU to remain a star or even become a cash cow.

Question 10

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

Accepted Answer

This statement accurately reflects the two dimensions of diversification analysis: current vs. new products and current vs. new markets. The other statements are inaccurate or incomplete.

Question 11

The marketing strategy of selling new products to existing markets is referred to as _________.

Accepted Answer

Product development involves creating new products to sell to existing markets.

Question 12

In 2007, Kodak introduced a line of digital picture frames that allowed consumers to upload, store, and view digital images; additional higher priced and more sophisticated elements were added to the line.By 2012, sales could approach 50 million units for market leader Kodak.According to the BCG matrix, this SBU is a

Accepted Answer

The digital picture frames were a growing product line for Kodak, indicating high market growth and a strong market position, which aligns with the characteristics of a "star" in the BCG matrix.

Question 13

In __________ there is no change in either the basic product line or the markets served.Increased sales are generated by selling either more product through better promotion or distribution or by selling the same amount of product at a higher price.

Accepted Answer

Market penetration refers to increasing sales of existing products in existing markets. This is achieved by promoting the product more effectively, improving the distribution network, or increasing the price of the product. There is no change in the product line or target markets.

Question 14

In 2003, Kodak's traditional film sales were an $8 billion dollar cash cow.In 2008, the revenue generated from file sales dropped to $3 billion.The film SBU became a dog primarily due to

Accepted Answer

The decrease in revenue can be attributed to the increasing popularity of digital photography, which rendered traditional film sales less profitable.

Question 15

Product development refers to the strategy of

Accepted Answer

Product development refers to creating and introducing new products to existing markets. Option D aligns with this definition. A, B, and C are product strategies that do not involve creating new products. Option E is not related to product development; it refers to owning multiple brands in the same market.

Question 16

Two major ways for a company to benefit from taking a market penetration approach would be

Accepted Answer

The answer of Two major ways for a company to...

Question 17

Diversification refers to the strategy of

Accepted Answer

Diversification involves introducing new products to new markets, which is a strategy to spread risk and opportunities across different areas.

Question 18

If Ben & Jerry's starts selling their ice cream in Brazil for the first time, they will be using a _________ strategy.

Accepted Answer

Market development involves introducing an existing product into a new market. In this case, Ben & Jerry's is introducing their ice cream into the new market of Brazil.

Question 19

Market development refers to the strategy of

Accepted Answer

Market development refers to the strategy of selling existing products to new markets. Option B is the only choice that matches this definition. Option A refers to market penetration, option C refers to diversification, option D refers to product development, and option E is not relevant to the concept of market development.

Question 20

The marketing strategy to sell existing products to new markets is referred to as _________.

Accepted Answer

Market development is the marketing strategy used to sell existing products to new markets. This involves finding new markets for the already existing products, such as new geographic areas or new demographic groups. This strategy typically involves heavy market research and targeting. Market penetration (A) involves increasing market share within existing markets, market infiltration (B) is not a common marketing term, and market diversification (D) involves developing new products for new markets. Market capitalization (E) is a financial term unrelated to marketing strategy.

Quiz 2: Developing Successful Marketing and Organizational Strategies