In order to expand, Medio.com (an e-tailer) pursued a combination of actions such as
making service improvements, cutting costs as well as forming alliances with Web
portals to expand its share of Web shoppers. This is an example of expansion by:
A.diversifying.
B.offshoring.
C.developing new products for current customers.
D.increasing market penetration of current product.
According to Porter, rivalry among competitors is greater:
A.when low investment intensity exists in businesses.
B.when dominant firms exist in an industry.
C. when low switching costs exist for the buyers.
D.when strong product differentiation exists among current players.
Which of the following market strategies is often favored by smaller companies to
avoid direct confrontations with larger firms while building volume and share?
A. A niche-market strategy
B. A growth-market strategy
C. A resource-market strategy
D. A mass-market strategy
Carol’s Trio, an upscale retail chain, stocks and sells only Spanish, German, and French
products. Trio is an example of segmenting a market by _____.
A. age
B. ethnic origin
C. education
D. income
A firm is considering introducing a new product category in a highly competitive
environment. The marketers obtain customer perceptions of the new product concept
relative to likely substitute products on various critical determinant attributes. Which of
the following stages of the product positioning process is the firm currently in?
A.Determining customers’ most preferred combination of determinant attributes
B.Examining the fit between preferences of market segments and current position of
product
C.Determining product’s current location in the product space and intensity
D.Identifying relevant set of competitive products serving a target market
Faced with a decline in its current business, a generic drug manufacturer is planning a
foray into the design and manufacture of re-locatable structures. Which diversification
strategy is being employed by the company?
A.Related diversification
B.Backward integration
C.Forward vertical integration
D.Unrelated diversification
Two stores occupy positions comparable to one another on the positioning grid.This
indicates that:
A.the two stores use different perceptual positioning of their products.
B.the intensity of competition between the two stores is most likely to be very low.
C.consumers consider them to be relatively alike.
D.consumers see them as very different.
What is the first step in the marketing research process?
A.Reporting results to the decision maker
B.Identifying managerial problem and establishing research objectives
C.Collecting and analyzing data
D.Determining data sources, types of data, and research approaches required
Which of the following is the most crucial part of the annual marketing plan for
ensuring proper execution?
A.Action plan
B.Performance review
C.Objective
D.Executive summary
Which performance dimension is measured in terms of profitability as a percent of sales
and return on investment?
A.Synergy
B.Effectiveness
C.Efficiency
D.Adaptability
What is the first step in constructing a market attractiveness/competitive position matrix
for evaluating potential target markets?
A. Selecting market attractiveness and competitive position factors
B. Choosing segments to target and allocate resources
C. Rating segments on each factor and plotting results on matrices
D. Projecting future position for each segment
Which of the following is part of a situation analysis?
A.Financial objectives
B.Marketing objectives
C.Sales forecast
D.Maintenance strategy
A corporate growth strategy that focuses on developing new products for current
markets is called:
A. a market penetration strategy.
B. a product development strategy.
C. a market development strategy.
D. a product positioning strategy.
The pioneer’s brand can become the standard of reference customers use to evaluate
other brands, making it more difficult for followers to convince existing customers that
their new brands are superior to the older and more familiar pioneer. Which advantage
of being a pioneer does this explain?
A.First choice of market segments and positions
B.Economies of scale and experience
C.Distribution advantages
D.High switching costs for early adopters
Which of the following is a variable that helps in finding useful decompositions of the
sales data?
A.Measurability
B.Return on investment
C.Monetary value
D.Reliability