Question 1

One way a company can benefit from implementing a market penetration strategy would be to
A)sell more products at a lower price in new markets.
B)sell the same amount of product at a higher price in the same market.
C)find a new market and sell the product at a much higher price.
D)alter the product and sell it to a new market.
E)reduce promotion and distribution costs to improve production efficiencies for the product in reaching new markets.

Accepted Answer

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

Question 2

Consider the photo above of Apple's iPhone 5C.Apple launched its revolutionary iPhone in 2007,the first smartphone that used a multi-touch user interface.iPhone unit sales skyrocketed.Recently,smartphone sales have slowed as the industry moves into the maturity stage of its product life cycle.But Apple's sales have remained strong.By 2017,the smartphone market is expected to grow at a compound annual rate of 13 percent due to dropping average smartphone prices.Apple's iPhone had a 15 percent share of the global smartphone market in 2013-second to Samsung,whose share was 41 percent.Apple's iPod SBU appears to be a __________.
A)question mark/star
B)raptor
C)hedgehog
D)cash cow
E)dog

Accepted Answer

The answer of Consider the photo above of Apple's iPhone...

Question 3

Consider the Kodak Digital Camera photo above.Despite being slow to exploit its digital camera technology,Kodak eventually did.From the early-to mid 2000s,Kodak's digital camera SBU moved successfully from a question mark to a star,becoming the market leader by 2005.At that time,the product was then considered to be a cash cow.However,with intense competition from Japanese marketers and the arrival of smartphones such as Apple's iPhone in 2007,Kodak's digital camera sales fell dramatically.In early 2013,Kodak exited the consumer digital camera business.For Kodak,this SBU became a __________.
A)question mark
B)star
C)hedgehog
D)cash cow
E)dog

Accepted Answer

Kodak's digital camera business became a "dog" as it lost market share and profitability due to intense competition and technological advancements, leading to its eventual exit from the market.

Question 4

Diversification analysis refers to
A)a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
B)a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
C)a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
D)a technique used to determine the appeal of each SBU or offering and then the amount of cash,if any,each should receive.
E)a framework that identifies four "generic" strategies to achieve a competitive advantage.

Accepted Answer

Diversification analysis is the technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. It involves analyzing the current portfolio of businesses/products and identifying opportunities for growth and expansion. It can help a firm identify which areas to invest in and which areas to divest from. Options A, B, D, and E refer to other marketing concepts and techniques, but are not specifically related to diversification analysis.

Question 5

If sales revenues of Starbucks VIA Ready Brew instant coffee to U.S.consumers increased as a result of a slight price increase of $0.25 per pack,it would be using a __________ strategy.
A)product development
B)market development
C)market penetration
D)diversification
E)market saturation

Accepted Answer

Market penetration strategy involves increasing sales of existing products in existing markets. In this case, the slight price increase of $0.25 per pack is aimed at increasing sales revenues of Starbucks VIA Ready Brew instant coffee to U.S. consumers, which is an existing market and an existing product. Therefore, the correct strategy being used is market penetration.

Question 6

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.
A)product development
B)market development
C)market penetration
D)diversification
E)market saturation

Accepted Answer

Market penetration strategy aims to increase the market share of an existing product or service through increased promotion, advertising, or pricing strategies without changing the product itself. In this scenario, Ben & Jerry's is not changing the product but is promoting it more to increase sales, which aligns with a market penetration strategy.

Question 7

One of the strengths inherent in the use of the BCG business portfolio analysis is that it
A)is based solely on company perception rather than actual data.
B)considers all factors that might impact an SBU's value to an organization.
C)acts as a strong motivational tool for employees in SBUs that have been labeled "dogs" or "question marks."
D)forces a firm to place each of its SBUs in the growth-share matrix,which in turn suggests which SBUs will be cash producers or cash users in the future.
E)identifies specific marketing strategies and marketing tactics on how to solve SBU shortcomings.

Accepted Answer

The BCG matrix requires a firm to place each of its SBUs in the growth-share matrix, suggesting which SBUs will be cash producers or cash users in the future. This allows a firm to allocate resources accordingly and make strategic decisions based on the potential of each SBU. The other options are not strengths of the BCG analysis; A is a weakness, B and E are not unique to BCG analysis, and C is not a strength but rather a potential negative consequence.

Question 8

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.
A)product development
B)market development
C)diversification
D)market saturation
E)market penetration

Accepted Answer

The strategy described in the question is market penetration, where the emphasis is on increasing sales within the existing market for the current products, through better promotion or distribution, or selling the same products at a higher price. In market penetration, there is no change in the product line or markets served. Therefore, option E is the correct answer.

Question 9

Consider the photo above of Apple's personal computers (PCs),such as the MacPro,iMac,and MacBookPro.With the arrival of tablet devices,such as Apple's iPad in 2010,global PC industry sales slowed and then declined.However,Apple's Macs have bucked this trend,increasing its global unit market share from 10 to 12 percent.By 2016,global PC unit sales are expected to fall dramatically due to the explosion in tablet device sales.Apple's Mac PC SBU appears to be a __________.
A)question mark
B)star
C)hedgehog
D)cash cow
E)dog

Accepted Answer

The answer of Consider the photo above of Apple's personal...

Question 10

One of the weaknesses inherent in the use of the BCG business portfolio analysis is that it
A)causes dissension between different divisions when one is labeled a "star" and another a "dog."
B)reduces employee motivation to move a low valued SBU to a higher one.
C)considers too many SBU factors beyond market growth rate and relative market share.
D)does not require sales forecasts in order to be implemented.
E)is often difficult to obtain the needed information to correctly place SBUs in the matrix.

Accepted Answer

Weaknesses of BCG business portfolio analysis arise from the difficulty in (1)getting the needed information and (2)incorporating competitive data into business portfolio analysis.

Question 11

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 __________.
A)diversification analysis
B)business portfolio analysis
C)a market-product grid framework
D)synergy analysis
E)market segmentation

Accepted Answer

Key term definition-diversification analysis.

Question 12

Consider the photo above of Apple's iPad Air.In 2010,Steve Jobs once again revolutionized an industry when Apple launched the iPad.Unit sales reached an astonishing 40 percent market share by 2013-leading both Samsung's Galaxy (18 percent)and Amazon's Kindle (4 percent).Global tablet unit sales are expected to more than double by 2016 as consumers continue to switch from desktop and laptop PCs to tablet devices,with Apple still the projected market share leader.Recently,Apple introduced the 4^th generation iPad (renamed the iPad Air)and upgraded its iPad mini.Currently,Apple's iPad SBU appears to be a __________. A)question mark B)star C)hedgehog D)cash cow E)dog

Accepted Answer

The iPad SBU is a "star" because it has a high market share in a rapidly growing market, as indicated by its leading market share and the expected growth in global tablet sales.

Question 13

Because an organization has limited influence on market growth rate,its main alternative for moving an SBU on the portfolio analysis matrix is to try to change its relative market share.The most likely way for a company to turn a "question mark" into a "star" rather than a "dog" is to
A)take cash away from it.
B)reduce advertising for it.
C)inject cash into it.
D)reduce the feature set for it.
E)decrease the market growth rate.

Accepted Answer

Injecting cash into the "question mark" SBU would allow it to increase its relative market share by investing in marketing and product development, ultimately increasing the chances of it becoming a "star" rather than a "dog." Taking cash away or reducing advertising would likely have the opposite effect. Reducing the feature set could also be detrimental to the SBU's success. Decreasing the market growth rate is not something the organization can control, and would not necessarily improve the SBU's position on the portfolio analysis matrix.

Question 14

The marketing strategy to sell current products to new markets is referred to as __________.
A)market penetration
B)market infiltration
C)market development
D)product development
E)diversification

Accepted Answer

Market development is the marketing strategy to sell current products to new markets.

Question 15

Consider the photo above of Apple's iPod.Apple entered the MP3 player market with its iPod device in 2001.Today,Apple sells four iPod product lines (classic,nano,shuffle,and touch).By 2014,Apple had a 70 percent share of this market.However,global MP3 music player unit sales over the past few years have fallen dramatically and are expected to decline further by 2016 as smartphones continue to replace MP3 devices.In addition,MP3 sales may be adversely impacted with the expected launch of wearable digital watches.Apple's iPod SBU appears to be a __________.
A)question mark
B)star
C)hedgehog
D)cash cow
E)dog

Accepted Answer

Apple's iPod product line has been in the market for over a decade and has established itself as a market leader with a 70 percent share. It has also generated significant revenue and profits for Apple, making it a cash cow. However, with the declining global sales of MP3 players and the rise of smartphones and wearable devices, the iPod product line may not have significant growth potential in the future. Therefore, it is a cash cow product for Apple rather than a star or a question mark.

Question 16

Which of the following statements regarding diversification analysis is MOST ACCURATE?
A)Companies should only use diversification analysis if they are well-established;new companies that use this process run the risk of trying to do too much too soon.
B)For any product,there is both a current and a new market;for any market,there is both a current and a new product.
C)Most companies discover that there is at least one product that is targeted to the wrong market.
D)Diversification analysis is only effective for consumer products.
E)Diversification analysis is used to forecast and calculate industry sales for new products.

Accepted Answer

This statement correctly identifies the four possible combinations of current and new products and markets in diversification analysis, and is therefore the most accurate statement. The other choices either express limitations on the use of the analysis (A, D), make overly broad or incorrect claims (C), or confuse diversification analysis with a different forecasting method (E).

Question 17

Consider the Kodak Picture Kiosk photo above.In the late 1990s,Kodak introduced its Kodak Picture Maker,which can make prints or CDs of pictures taken with digital cameras (and now smartphones).Now in its 3^rd generation as of 2014,Kodak had over 100,000 Kodak Picture Kiosks installed worldwide in over 65,000 mass merchandisers,drugstores,and other retailers,making this SBU a cash cow for Kodak.But images are increasingly being stored and shared on Facebook,Instagram,or just the capture device.If these trends continue,this could make Kodak's Picture Kiosks SBU a potential __________,according to the BCG growth-share matrix. A)hedgehog B)star C)cash cow D)lion E)question mark or dog

Accepted Answer

According to the information presented, if images continue to be stored and shared through online platforms, the potential of Kodak's Picture Kiosks SBU becoming a cash cow (which is a low-growth, high-market-share SBU) may decrease. Therefore, the best choice is a question mark or dog, which represents a high-growth, low-market-share SBU with uncertain profitability.

Question 18

Market development refers to the marketing strategy of
A)increasing sales of current products in current markets.
B)selling new products to new markets.
C)selling new products to current markets.
D)selling the same brands in both current and new markets.
E)selling current products to new markets.

Accepted Answer

Market development refers to selling current products to new markets.

Question 19

A marketing strategy to increase sales of current products in current markets is referred to as
A)market penetration.
B)market development.
C)product development.
D)diversification.
E)marketing synergy.

Accepted Answer

Market penetration is the marketing strategy that focuses on increasing the sales of current products in current markets. It involves using tactics like increasing advertising, offering sales promotions, or improving the product to attract more customers and gain a larger market share. This strategy does not involve creating new products or entering new markets.

Question 20

Market penetration refers to the marketing strategy of
A)selling current products to new markets.
B)selling new products to new markets.
C)selling new products to current markets.
D)selling the same brands in both current and new markets.
E)increasing sales of current products in current markets.

Accepted Answer

Market penetration involves increasing the sales of current products in current markets through tactics such as price reductions, increasing advertising, or improving distribution channels.

Quiz 2: Developing Successful Organizational and Marketing Strategies

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

Diversification analysis refers to

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

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.

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

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.

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

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 __________.

Because an organization has limited influence on market growth rate,its main alternative for moving an SBU on the portfolio analysis matrix is to try to change its relative market share.The most likely way for a company to turn a "question mark" into a "star" rather than a "dog" is to

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

Which of the following statements regarding diversification analysis is MOST ACCURATE?

Market development refers to the marketing strategy of

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

Market penetration refers to the marketing strategy of