Question 1

A product enjoys significant market share in a high-growth industry.According to the BCG portfolio analysis, the product is called a:

Accepted Answer

The answer of A product enjoys significant market share in...

Question 2

Which of the following statements is true of the market development strategy?

Accepted Answer

Market development strategy involves targeting new market segments that are not currently served by the firm, using existing products.

Question 3

Which of the following is the best example of using the market development strategy?

Accepted Answer

Market development strategy involves introducing existing products to new markets.

Question 4

Which of the following is the marketing strategy that employs the existing marketing mix and focuses a firm's efforts on existing customers?

Accepted Answer

Market penetration is a strategy that focuses on increasing sales of existing products to existing customers using the current marketing mix.

Question 5

Paramount Electronics manufactures electronic measuring tools.The company invents a new type of multi-meter for electronic measurements and introduces the product to its current customers.Which of the following strategies is Paramount employing?

Accepted Answer

Paramount Electronics is introducing a new product to its existing customer base, which aligns with the product development strategy.

Question 6

Which of the following terms is used in the BCG product portfolio analysis to refer to a product that has high market share in a market characterized by low growth?

Accepted Answer

In the BCG matrix, a "cash cow" refers to a product with a high market share in a low-growth market. These products typically generate consistent cash flow with little investment.

Question 7

Lava Scooters manufactures electric scooters targeted at young women.The company manufactures vehicles that have engine displacement ranging from 50 to 100 cubic centimetres.Of late, many customers have been preferring scooters that are more powerful.To satisfy such customers, the company introduces a powerful bike that has 200-cubic centimetres engine displacement.Lava Scooters is using a strategy.

Accepted Answer

The company is introducing a new product with a more powerful engine to cater to existing customers' preferences, which is a product development strategy.

Question 8

A market penetration strategy generally requires:

Accepted Answer

A market penetration strategy focuses on increasing market share within existing markets, often through intensified distribution efforts and increased marketing activities.

Question 9

A company attempts to increase its market share by engaging in aggressive promotional activities.The company increases its spending on advertising and sales promotions.Which of the following is the strategy that the company is using?

Accepted Answer

The company is using a market penetration strategy, which involves increasing market share within existing markets through aggressive promotional activities and increased advertising.

Question 10

Tropo Consultants is a firm that gives investment advice to entrepreneurs.BCG portfolio analysis reveals that the firm's offering is a star in the industry.Which of the following is a valid suggestion for the company?

Accepted Answer

The BCG portfolio analysis suggests that the firm's offering is a star in the industry, which means it has high market share and high growth rate. Therefore, the company should consider resource investments to fuel rapid growth.

Question 11

A retail outlet offers summer discounts to its customers to increase sales.This is an example of the strategy.

Accepted Answer

Market penetration involves increasing sales of existing products in existing markets, often through strategies like discounts and promotions.

Question 12

Dorbo Inc.manufactures microprocessors.The company is known for innovation and holds more than 300 patents.The company invents a microprocessor based on nanotechnology and introduces it to its current customers.Which strategy is Dorbo using?

Accepted Answer

Dorbo Inc. is introducing a new product (microprocessor based on nanotechnology) to its existing customer base, which is a classic example of product development strategy.

Question 13

Which of the following is a feature of the market penetration strategy?

Accepted Answer

Market penetration strategy focuses on increasing sales of existing products to the current market or obtaining new customers within the existing target market.

Question 14

MM Manufacturing is a small-scale firm that manufactures optical cables.The firm's market share is significantly lower than most other players in the market.However, optical cable manufacturing is a high-growth market.According to the BCG matrix, the company's offering is a:

Accepted Answer

The BCG matrix categorizes offerings based on market growth and market share. A "question mark" has a low market share in a high-growth market, which fits MM Manufacturing's situation.

Question 15

Which of the following is the growth strategy that employs the existing marketing offering to reach new market segments?

Accepted Answer

Market development is a growth strategy that employs the existing marketing offering to reach new market segments.

Question 16

Roltech Limited is an Asian telecom company that operates GSM networks in six countries across South Asia.Roltech's top managers identify that the company's growth has been idle for a few years and decide to take these steps to promote growth: (1) Increase the spending on advertising and intensify promotional activities.(2) Open telecom companies in European markets such as Germany and Britain.(3) Introduce special tariffs to attract more customers from South Asian markets.Which of the following strategies have Roltech's top managers decided to adopt?

Accepted Answer

Roltech's top managers have decided to adopt market penetration (by introducing special tariffs to attract more customers from South Asian markets) and market development (by opening telecom companies in European markets such as Germany and Britain) strategies.

Question 17

IBF Industries Inc.is a firm that manufactures and markets kitchen appliances in Italy.The company decides to introduce its existing range of products in Germany.This scenario is an example of the strategy.

Accepted Answer

Market development involves introducing existing products into new markets, which is what IBF Industries Inc. is doing by entering the German market with its current product range.

Question 18

In the BCG portfolio analysis, products that are in low-growth markets and have relatively low market shares are called:

Accepted Answer

In the BCG portfolio analysis, "dogs" are products with low market share in low-growth markets.

Question 19

Which of the following terms is used in the BCG product portfolio analysis to refer to a product that has low market share in a market characterized by high growth?

Accepted Answer

In the BCG matrix, a "question mark" refers to a product with low market share in a high-growth market.

Question 20

Which of the following is the growth strategy that offers a new product or service to a firm's current target market?

Accepted Answer

Product development is the strategy of offering a new product or service to a firm's current target market.

Quiz 2: Analyzing the Marketing Environment