Question 1

Which of the following is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate?

Accepted Answer

The portfolio matrix, also known as the Boston Consulting Group (BCG) matrix, is a tool used to allocate resources among different products or strategic business units based on their relative market share (horizontal axis) and market growth rate (vertical axis). The matrix identifies four categories: stars, cash cows, question marks, and dogs, each requiring a different resource allocation strategy. The other options, market audit, experience development, and market development analysis, are not specifically related to resource allocation in this context.

Question 2

C-Ice is a canned beverage made from tea and cannabis that is marketed in Europe as a nutritional drink that can boost a user's immune system.
-Refer to C-Ice.For C-Ice which of the following terms would best describe the people who want to improve or maintain their health?

Accepted Answer

A target market is one or more market segments on which a company focuses.

Question 3

Anbac Financial Group,Inc.is the second-largest insurer of municipal bonds in the world.Anbac is expanding its insurance services from governmental accounts to include private developers of sports stadiums and similar large multi-use facilities.According to Ansoff's strategic opportunity matrix,which type of strategy would Anbac be implementing?

Accepted Answer

Market development refers to the attracting of new markets (private developers)to existing products.

Question 4

Shortly after the start of the new century,Wrigley,the largest chewing gum manufacturer in the world,bid $12 billion for Hershey,the chocolate company.Wrigley was unable to acquire Hershey,but its acquisition would have expanded Wrigley's product lines to include many forms of baking and eating chocolate.Since Wrigley did not produce any chocolate at the time of the takeover bid,what would this acquisition have been an example of?

Accepted Answer

Wrigley,which makes chewing gum,would also be making chocolate,a completely different product.Also,the market for chocolate differs significantly from the market for chewing gum.

Question 5

CentralPulse is Europe's largest manufacturer of hip and knee replacement joints.Which strategy would identify the surgeons and hospitals as two market segments on which CentralPulse will focus its marketing efforts?

Accepted Answer

A target market is one or more market segments on which a company focuses.

Question 6

Chapman's introduction of Yogurt plus frozen yogurt for a health-conscious market has most directly affected which element of the company's marketing mix?

Accepted Answer

Introducing Yogurt plus frozen yogurt for a health-conscious market is a product-related decision. Chapman's has modified its product offering to attract health-conscious consumers. This affects the product element of the company's marketing mix.

Question 7

Before Heinz sold its 9-Lives brand cat food unit,the company identified the product as having a low market share in a high-growth market.How would the portfolio matrix classify 9-Lives?

Accepted Answer

A question market,also called a problem child,shows rapid growth but has poor profit margins.

Question 8

When does market penetration occur?

Accepted Answer

Market penetration is the marketing of the same product to current customers.

Question 9

John R.Harland Company is best known for printing cheques.Its Financial Solutions division develops software for mortgage companies.This division is currently producing much less than the desired level of profitability in what has been identified as a high-growth industry.
-Refer to John R.Harland Company.Harland plans to turn the division into a success by acquiring other companies that develop similar software.Which of the following will turn this marketing plan into action assignments in a manner that accomplishes the company's stated objectives?

Accepted Answer

Implementation is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives.

Question 10

Juniper Group,which operates film distribution,health care,and Internet businesses,purchased shoemaker Tags Golf (Tags makes Bobby Jones brand golf shoes)to create its sports division.Which type of strategy did Juniper Group use?

Accepted Answer

Juniper entered a new market with a new product.

Question 11

John R.Harland Company is best known for printing cheques.Its Financial Solutions division develops software for mortgage companies.This division is currently producing much less than the desired level of profitability in what has been identified as a high-growth industry.
-Refer to John R.Harland Company.Harland plans to turn the division into a success by acquiring other companies that develop similar software.Which type of strategy would Harland be engaging in?

Accepted Answer

If an organization has an SBU that it believes has potential to be a star,building would be an appropriate strategy.

Question 12

In order to expand its sales into the U.S.market,BRL,an Australia-based winemaker,agreed to a merger with a U.S.-based wine distribution company.According to Ansoff's strategic opportunity matrix,which type of strategy would BRL be implementing?

Accepted Answer

Market development refers to the attracting of new markets (U.S.consumers)to existing products.

Question 13

Which of the following describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments?

Accepted Answer

Market opportunity analysis is the process through which a firm identifies and evaluates potential market segments, estimating the size and sales potential of each. This process also includes assessing key competitors in these market segments, allowing the firm to make informed decisions about which segments to target and how to position itself against its competition. Environmental scan refers to the process of examining the broader macro-environmental factors that might affect a firm's operations, while marketing mix audit involves evaluating a firm's marketing efforts in terms of its product, price, promotion, and distribution strategies. Target market strategy is the action plan developed by a firm to identify and pursue a specific target market.

Question 14

Flexcar is a car rental agency that is geared for people who take mass transit or carpool to work but occasionally need to run errands,visit the doctor,or check on a sick child during the workday.What does the preceding statement describe?

Accepted Answer

A target market is one or more market segments on which a company focuses.

Question 15

What is the starting point of any firm's marketing mix?

Accepted Answer

The product is the starting point for any marketing mix.Without it,pricing,distribution,and promotion are irrelevant.The production capacity can be changed to fit the proposed product.

Question 16

Oakley Sunglasses describes its customers as male and female,18 to 25 years of age,single,high school graduates,and earners of above-average income.How would the magazine have identified this market segment?

Accepted Answer

The target market strategy identifies the market segment on which to focus.

Question 17

What is the term for the unique blend of product,distribution,promotion,and pricing strategies designed to produce mutually satisfying exchanges with a target market?

Accepted Answer

The term being described is the marketing mix, which includes the four Ps: product, distribution (place), promotion, and pricing strategies. A and C are not relevant terms, and D is missing the component of pricing strategy.

Question 18

To market its ice cream to Chinese consumers,Unilever entered into a joint venture with Sumstar,a state-owned Chinese investment company.Unilever provided the product know-how,and Sumstar helped Unilever gain all the approvals needed from a complex Chinese bureaucracy.Which type of strategy did Unilever use to reach the Chinese market?

Accepted Answer

Unilever wanted to sell an existing product (ice cream)to a new market (China).

Question 19

Russell Athleticwear was a market leader in the sports apparel industry,an industry that is growing rapidly.With Berkshire Hathaway,Inc.'s recent purchase of Russell Corporation,it becomes an SBU.According to the portfolio matrix,what is it still an example of?

Accepted Answer

A star has a large market share in a rapidly growing industry.

Question 20

John R.Harland Company is best known for printing cheques.Its Financial Solutions division develops software for mortgage companies.This division is currently producing much less than the desired level of profitability in what has been identified as a high-growth industry.
-Refer to John R.Harland Company.According to the portfolio matrix,how would Harland label its Financial Solutions division?

Accepted Answer

A problem child,also called a question mark,has a low market share in a rapidly growing industry.

Quiz 3: Strategic Planning for Competitive Advantage

Which of the following is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate?

C-Ice is a canned beverage made from tea and cannabis that is marketed in Europe as a nutritional drink that can boost a user's immune system. -Refer to C-Ice.For C-Ice which of the following terms would best describe the people who want to improve or maintain their health?

CentralPulse is Europe's largest manufacturer of hip and knee replacement joints.Which strategy would identify the surgeons and hospitals as two market segments on which CentralPulse will focus its marketing efforts?

Chapman's introduction of Yogurt plus frozen yogurt for a health-conscious market has most directly affected which element of the company's marketing mix?

Before Heinz sold its 9-Lives brand cat food unit,the company identified the product as having a low market share in a high-growth market.How would the portfolio matrix classify 9-Lives?

When does market penetration occur?

Juniper Group,which operates film distribution,health care,and Internet businesses,purchased shoemaker Tags Golf (Tags makes Bobby Jones brand golf shoes) to create its sports division.Which type of strategy did Juniper Group use?

In order to expand its sales into the U.S.market,BRL,an Australia-based winemaker,agreed to a merger with a U.S.-based wine distribution company.According to Ansoff's strategic opportunity matrix,which type of strategy would BRL be implementing?

Which of the following describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments?

Flexcar is a car rental agency that is geared for people who take mass transit or carpool to work but occasionally need to run errands,visit the doctor,or check on a sick child during the workday.What does the preceding statement describe?

What is the starting point of any firm's marketing mix?

Oakley Sunglasses describes its customers as male and female,18 to 25 years of age,single,high school graduates,and earners of above-average income.How would the magazine have identified this market segment?

What is the term for the unique blend of product,distribution,promotion,and pricing strategies designed to produce mutually satisfying exchanges with a target market?

Russell Athleticwear was a market leader in the sports apparel industry,an industry that is growing rapidly.With Berkshire Hathaway,Inc.'s recent purchase of Russell Corporation,it becomes an SBU.According to the portfolio matrix,what is it still an example of?