The shakeout stage in a product life cycle is signaled by:
A.an expansion of the product line to attract new segments.
B.limited purchase of the product due to lack of awareness.
C.a drop in the overall growth rate and substantial price cuts.
D.stability in terms of demand, technology, and competition.
Which of the following elements belongs to the successful late entrants’ market
strategy?
A.Leapfrogging the pioneer with superior product technology
B.Focusing on peripheral target markets or niches
C.Larger entry scale than the pioneer
D.Heavy promotional expenditures
Which of the following is true of competitive intelligence systems?
A.It is an outlawed approach of analyzing information about competitors’ activities.
B.It involves analyzing the inventory and detailed sales reports of stores.
C.It uses online databases and government documents as its source of information.
D.It allows the effective capture of customer intelligence from salespeople.
In which of the following levels of strategy is sustainable competitive advantage a
major component?
A. Functional strategy
B.Corporate strategy
C.Marketing strategy
D.Business strategy
Cash cows are:
A.businesses with a high relative share of low-growth markets.
B.low-share businesses in low-growth markets.
C.market leaders in a high-growth industry.
D.businesses in high-growth industries with low relative market shares.
Identify the statement that relates to a market management organization.
A.A product manager has overall responsibility for planning and implementing a
national marketing program for the product.
B.This form is the least bureaucratic or centralized and the most specialized type of
organization.
C.This is particularly suitable for a business facing an extremely complex and uncertain
environment.
D.It involves the creation of an additional organizational unit responsible for
coordinating the actions of other units within the firm.
National Motors manufactures high-end automobiles. The attributes of their cars
include excellent handling, acceleration, comfort, and braking, and provides the
company an advantage over its competitors. Identify the product quality dimension
emphasized by National Motors.
A. Reliability
B. Performance
C. Durability
D. Serviceability
Both positioning statements and value propositions should reflect a:
A.unique selling proposition.
B. low price component.
C.high value component.
D.indication of high market acceptance.
Which of the following contents of a marketing plan specifically presents the expected
financial payoff from the plan ?
A.Objectives
B.Projected profit-and-loss statement
C.Current situation and trends
D.Executive summary
Tokomo Motors has introduced a new line of cars aimed at creating an appeal for young
car buyers looking for good quality, funky designs, and low-prices. Their intent is to
protect their primary brands from direct competition in the same category and from
low-price competitors. Identify the strategy employed by Tokomo Motors.
A.Confrontation strategy
B.Position defense strategy
C.Flanker strategy
D.Market expansion strategy
A primary marketing objective of all competitors in mature markets is simply to:
A. hold their existing customers.
B. market their products to a new market.
C. increase market penetration.
D. increase price to maximize profits.
Which of the following approaches is used to prepare a sales forecast in decentralized
firms?
A. A top-down approach
B. A linear approach
C. A non-linear approach
D. A bottom-up approach
What action must a leader take to improve customer satisfaction as competitor enters or
prepares to enter the market?
A.It should take steps to improve the physical product and customers’ perceptions of it
as well.
B.It should shift its sales promotion emphasis from building selective demand to
stimulating primary demand.
C.It should continue sales promotion efforts aimed only at stimulating trial among later
adopters.
D.It should shift its sales-force efforts from servicing existing customers to prospecting
for new accounts.
Identify a limitation of value-based planning.
A.It attempts to assess the economic value a given strategy is likely to generate by
relying on distorted accounting measures.
B.It is typically a tool for evaluating strategy alternatives identified and developed
through managers’ judgments.
C.It fails to assess the shareholder value a given strategy is likely to generate.
D.It fails to provide a basis for comparing the economic returns to be gained from
investing in different businesses pursuing different strategies.
A customer feedback survey conducted by an auto dealer found that about 75 percent of
customers reported satisfaction with the order processing, delivery, and post-sale
services. This indicates that:
A.customer satisfaction increases due to the product-oriented approach.
B.spending more on emphasizing product features creates a sustainable competitive
advantage.
C.customer satisfaction is influenced by factors other than the product itself.
D.customer intimacy is the least important factor in determining customer satisfaction.
_____ involves comparison of a firm’s performance in a given area against the
performance of other companies.
A.Balanced scorecard
B.Benchmarking
C.Scenario analysis
D.Cost benefit analysis
Which of the following pricing strategies is appropriate during the maturity stage of the
product life cycle?
A. Skimming
B. Penetration strategy
C. Reduce across the board
D. Hold or reduce selectively
A(n) _____ is used to assess the impact and the timing of an environmental event in a
firm.
A. BCG matrix
B. affinity diagram
C. activity network diagram
D. opportunity/threat matrix
Which of the following statements is true of a market-oriented strategy?
A. Pricing is based on production and distribution costs.
B. Pricing is based on perceived benefits the product provides.
C. Credit is considered a necessary evil.
D. Promotion primarily emphasizes product features.
Why are some firms not very focused on their consumers or competitors?
Briefly describe the sociocultural environment and the economic environment of a
business’s macroenvironment.
Briefly explain licensing, franchising, and joint ventures.
How can entrepreneurs better serve the digitally networked markets of tomorrow?
Explain niche-market and growth-market strategies with relevant examples.
What are analyzer and defender strategies? How are they similar and dissimilar from
each other? List the conditions most appropriate for their use.