Question 1

Relative market share, plotted on the horizontal axis of the Boston Consulting Group growth- share matrix serves as a measure of:

Accepted Answer

Relative market share is a measure of a company's market strength because it shows the company's market share relative to its competitors. A higher market share indicates greater market strength, as the company has a larger share of the market compared to competitors.

Question 2

The_________ organisational system's main advantage is that the company is organised around the needs of specific market segments.

Accepted Answer

The statement clearly mentions that the organisational system is based on the needs of specific market segments, indicating that the company is using a market management approach. Hence, option E is the best choice.

Question 3

In the BCG approach, __________ are high- share, high- growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they are likely to turn into_________ .

Accepted Answer

Stars are high-share, high-growth businesses or products that require heavy investment to finance their rapid growth. When their growth rate slows down, they are likely to turn into cash cows, which are low-growth, high-share businesses or products that generate high profits and require low investment. Dogs are low-share, low-growth businesses or products that generate low profits and typically should be divested. Question marks are businesses or products with low market share in high-growth markets and require significant investment to grow, so their potential success is uncertain.

Question 4

The collection of businesses and products that make up a company is known as its:

Accepted Answer

The term "business portfolio" refers to the collection of businesses and products that make up a company. It includes all of the company's different business units and product lines. This term is often used in strategic planning to analyze the company's overall performance and to assess the strengths and weaknesses of its various businesses.

Question 5

Companies that sell one product line to many different types of markets and customers who have different needs and preferences, a _________management organisation might be best.

Accepted Answer

A market or customer management organization is best suited for companies that sell one product line to various markets and customers with differing needs and preferences, as it allows for tailored strategies to meet the specific demands of each market segment.

Question 6

A measure of the rate at which a company or a business unit attracts new business is known as:

Accepted Answer

The measure of the rate at which a company or business unit attracts new business is known as customer acquisition. Share of relationships refers to the percentage of a customer's purchases made from one particular company, market share refers to the percentage of total sales in a particular industry that a company has, customer equity refers to the total value of a company's customer base, and customer tracking refers to the ongoing monitoring and measurement of customer behavior and preferences.

Question 7

In 2004, the market research company, Roy Morgan Research discovered a new market segment which they labeled, "Neos." The defining features of this segment are that they exhibit high levels of spending, especially on luxury goods and that they have sustainable differences in the underlying attitudes and values that motivate high spending. This discovery of this segment was of generated considerable interest to marketers because it represented:

Accepted Answer

The discovery of a new market segment with high spending and distinct attitudes and values represents a new market opportunity for marketers to target and tailor their products and services to meet the specific needs and desires of this segment.

Question 8

Marketing control involves a series of steps or processes. Which of the following is NOT one of the steps involved in marketing control?

Accepted Answer

While writing a marketing control report may be a helpful aspect of marketing control, it is not one of the essential steps. The essential steps of marketing control are to set specific marketing objectives, measure performance, evaluate the causes of any difference between expected and actual performance, and take corrective action as needed.

Question 9

Service marketers have argued that the traditional four Ps of the marketing mix should be expanded to include three new Ps. Which of the following is NOT one of the new Ps?

Accepted Answer

The three new Ps are people, physical evidence, and process. Productivity is not one of the new Ps.

Question 10

The SBUs or products that present the most difficult management decisions are:

Accepted Answer

Question marks are products or SBUs with low market share but high market growth, presenting uncertainty in their potential success and requiring careful decisions on investment and strategy. Dogs are products with low market share and low market growth, cash cows are products with high market share but low market growth, and stars are products with high market share and high market growth, all of which present clearer management decisions.

Question 11

In 2000, Virgin Airlines entered the Australian market positioning itself as a budget carrier in which it largely pursued the leisure travel market. However, in 2011, Virgin Australia, announced that it would reposition itself by offering superior service levels pitched at the more lucrative corporate market. The leisure travel market and the corporate market are BEST described as which of the following?

Accepted Answer

The leisure travel market and the corporate market are best described as market segments, as they are distinct subgroups within the broader air travel market.

Question 12

Internal capabilities that may help the company achieve its objectives are known as:

Accepted Answer

The answer of Internal capabilities that may help the company...

Question 13

Kaplan and Norton, as cited in your text, have argued that every organisation should include certain key customer measures to reflect the marketing effort. Which of the following is NOT one of these customer measures?

Accepted Answer

Kaplan and Norton's key customer measures include market share, customer profitability, customer acquisition, and customer retention, but not sales growth.

Question 14

Which of the following is a useful tool for identifying growth opportunities?

Accepted Answer

The product/market expansion grid, also known as the Ansoff Matrix, is a useful tool for identifying growth opportunities. It helps a company to analyze potential opportunities by considering existing and new products or services, as well as existing and new markets. The other options listed are tools or concepts related to analyzing a company's current operations, but do not specifically focus on identifying growth opportunities.

Question 15

_________are low- growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.

Accepted Answer

Cash cows are low-growth, high share businesses or products that generate a lot of cash. This cash can be used to support other SBUs that need investment, making them important for the overall financial health of a company. Stars are high-growth, high-share businesses or products, dogs are low-growth, low-share businesses or products, question marks are high-growth, low-share businesses or products, and cats are businesses or products with low market share in unattractive markets.

Question 16

The New- Process Cheese Company has developed a cheese product that features almost indefinite shelf life and can be easily dispensed from a unique aerosol container. Which of the following growth strategies is the firm employing?

Accepted Answer

The firm is employing the product development growth strategy by developing a new cheese product with unique packaging that offers a longer shelf life and easy dispensing.

Question 17

The set of tactical and marketing tools that the firm blends to produce a desired response from the target market is known as:

Accepted Answer

The marketing mix consists of the set of tactical and marketing tools that a firm uses to promote and sell its products or services to its target market. It includes the four Ps of marketing: product, price, promotion, and place (distribution). The marketing mix is a crucial tool for businesses to achieve their marketing goals and to create a desired response from their target market.

Question 18

When dealing with a __________ , managers must decide whether to invest in it in an attempt to build it into a star or cash cow or whether to phase it out.

Accepted Answer

The correct term is "question mark," which refers to a business unit or product with low market share in a fast-growing industry. Managers face the decision of investing to increase its market share (hoping to turn it into a star or cash cow) or phasing it out due to uncertain prospects.

Question 19

Kaplan and Norton, as discussed in your text, have argued that every organisation aims to achieve certain strategic outcomes. Which of the following is NOT one of these outcomes?

Accepted Answer

Kaplan and Norton, known for the Balanced Scorecard framework, emphasize a balanced approach to organizational performance that goes beyond financial measures (like profits) to include customer satisfaction, internal processes, and learning and growth (workforce readiness). Profits are seen as a result of achieving these strategic outcomes rather than an outcome in itself.

Question 20

The section of the marketing plan that outlines the broad marketing logic by which the business unit hopes to create customer value and relationships and the specifics of target markets, positioning and marketing expenditure levels is termed the:

Accepted Answer

The section described is the marketing strategy, which outlines how the business unit plans to create value for customers and build relationships, as well as specific tactics for targeting markets, positioning the brand, and determining marketing expenditures.

Quiz 3: Strategic Planning and Marketing