Strategic withdrawal is most likely when:
A.a firm is unable to defend itself adequately in all segments due to competitors having
more resources.
B.a firm’s primary objective is to capture a large share of new customers who may
prefer something different from the initial offering.
C.a competitor chooses to attack the leader head to head and attempts to steal customers
in the target market.
D.a firm tries to beat the attractive features of a competitor’s offering only after the
challenger’s success has become obvious.
A _____ strategy is appropriate when the market can be broken into two or more large
segments, when the leader and/or other major competitors hold a strong position in the
primary segment, and when no existing brand fully satisfies the needs of customers in at
least one other segment.
A.frontal attack
B.leapfrog
C.guerrilla attack
D.flank attack
Which of the following is the most probable marketing action by a firm to implement a
harvesting strategy in a declining market?
A. Consider introducing line extensions to appeal to remaining demand segments.
B. Lower prices if necessary to maintain share, even at the expense of reduced margins.
C. Focus salesforce efforts on attaining repeat purchases from current users.
D. Eliminate R&D expenditures and capital investments related to the business.
Low-share businesses in low-growth markets are called _____ because although they
may throw off some cash, they typically generate low profits, or losses.
A.stars
B.question marks
C.cash cows
D.dogs
An SBU has no outstanding strength in R&D or product engineering in _____
businesses.
A. prospector
B. analyzer
C. differentiated defender
D. low-cost defender
Identify the simplest and most bureaucratic form of organizational design.
A.Product management
B.Market management
C.Matrix
D.Functional
Product-oriented firms differ from market-oriented firms in that product-oriented firms:
A.use promotion to emphasize product benefits and its ability to satisfy customers’
needs.
B.base their pricing on production and distribution costs.
C.have broad product lines.
D.consider credit as customer service and a tool to attract customers.
_____ refers to the ease with which weaker competitors can leave the market.
A. Time to market
B. Conditions of demand
C. Intensity of future competitive rivalry
D. Exit barriers
Based on the market attractiveness/competitive position matrix, which of the following
strategies should a firm consider when the market attractiveness is moderate and the
competitive position is weak?
A.It should expand without high risk or minimize investment and focus on operations.
B.It should withdraw if indications of sustainable growth are lacking.
C.It should emphasize profitability by increasing productivity.
D.It should seek ways to increase current earnings without speeding market’s decline.
_____ is designed to obtain as much margin per unit as possible and also enables the
company to recover its new product investments more quickly.
A.Penetration pricing
B.Odd-even pricing
C.Skimming
D.Benchmarking
Which of the following is an example of using product features as a determinant
attribute in positioning?
A.”This is the quietest dishwasher made in America.”
B.”Buying a car is like getting married.”
C.”We know it’s perfect, but we take another 1,000 hours just to be sure.”
D.”Tests prove that Renty Candies is more nutritious than Jimbo Candies, costs less
than Jimbo, and tastes great, too.”
In a(n) _____ strategy, a business attempts to maintain a strong position in its core
product-market but also seeks to expand into new-usually closely
related-product-markets.
A. reactor
B. analyzer
C. prospector
D. defender
When people see something they like on the web or on their mobile phones, they share
it with others. This illustrates the basic concept of:
A.collaborative filtering.
B.positive network effect.
C.really simple syndication.
D.viral marketing.
In _____, customers are grouped by the characteristics of the individuals who influence
the purchasing decision.
A. microsegmentation
B. geographic segmentation
C. demographic segmentation
D. macrosegmentation
Papyrus Inc. achieved a cost advantage by being the first major papermaker to rely
exclusively on recycled pulp. The firm’s lower cost gave it a competitive edge in the
price-sensitive commercial market for toilet paper and other such products used in
hotels, restaurants, and office buildings. Which method of maintaining a low-cost
position has the company used?
A. Low-cost distribution
B. Cheaper raw materials
C. No-frills product
D. Innovative product design
What is a marketing plan? Explain its importance.
Briefly discuss the market attractiveness and competitive position factors.
Outline the elements involved with perceptual positioning.
Discuss the use of mass-customization techniques in customizing market offerings.
Write a brief note on the profitable survivor strategy. Illustrate the conditions most
appropriate for its usage.
Explain the role of action plans in an annual marketing plan.