Marketing Midterm
ToyBox is a toy manufacturer based in the United Kingdom. Which of the following indicates that the company is following a market penetration strategy?
It acquires toy rights for a popular cartoon character to boost its sales.
Which of the following is true of strategic planning in a firm?
It deals with adapting the firm to take advantage of changing marketing opportunities
Business portfolio analysis is defined as the process in which management ________
assesses the attractiveness of an SBU's market and the strength of its position in the market
Which of the following criteria does the Boston Consulting Group approach use to provide a measure of a company's strength in the market?
relative market share
Ainsworth is a toy manufacturer based in Australia. Which of the following most likely indicates that Ainsworth is following a diversification strategy?
Ainsworth enters the U.S. market with a line of children's clothing.
Vertigo is an electronics company. According to the BCG matrix, which of the following products of Vertigo would most likely classify as a question mark?
Blue-a cell phone that is designed for music lovers and has a very low market share in a market that is growing steadily
BlueBear is a shoe manufacturer based in the United States. Which of the following indicates that the company is following a market development strategy?
BlueBear introduces its shoes in the Indian and South-East Asian markets.
In the BCG matrix, ________ are low-share businesses and products in low-growth markets.
Dogs
Which of the following statements is true in the context of the BCG growth-share matrix?
Stars often need heavy investment to finance their rapid growth in a market.
Kobe Healthcare's analgesic drug Dilophin has a 45% share in the analgesics market in the country of Bodonia. Its closest competitor, Caritin, has a 25% share in the market, while three other drugs split the remainder. Which statement indicates that Dilophin is a star according to the BCG matrix?
The Bodonian market for healthcare products is expanding rapidly.
Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in the country of Terrania. Its closest competitor, Febex, has a 25% share in the market, while four other analgesic brands split the remainder. Which statement indicates that Cetaprin is a cash cow according to the BCG matrix?
The demand for analgesic drugs in the Terranian market is expected to remain stable
Which of the following companies is using a divesting strategy?
When sales of its clothing division decline, Blackstone sells the division to a competitor.
Which of the following products would the electronics company CypressSound classify as a cash cow in its BCG matrix?
Xpress-an MP3 player that has a high market share in a market that is not expected to grow significantly
In the BCG matrix, ________ refer to low-growth, high-share businesses or products
cash cows
A company's mission statement should most likely be ________.
defined in terms of satisfying basic customer needs
In the BCG growth-share matrix, stars refer to products or businesses with a ________.
high market share in a market with a high growth rate
In the BCG growth-share matrix, question marks refer to products or businesses with a ________.
low market share in a market with high growth prospects
Acme Inc., a manufacturer of construction and mining equipment, is based in Australia. Acme modifies the production processes of its widgets and gadgets to sell its current products in Eastern Europe. This is most likely an example of a ________ strategy.
market development
RedInk, a company that manufactures office furniture, is based in Bodonia. It is looking to sell its current products in other countries as well. The company identifies the country of Soleria as a good option because the cultures and tastes of consumers in the two countries are similar. This is an example of a strategy for ________
market development
Which of the following criteria provides a measure of market attractiveness in the Boston Consulting Group approach?
market growth rate
A strategy for company growth that involves increasing sales to current market segments without changing the product is known as ________.
market penetration
EcoBean, a chain of cafes, has introduced a Special Shopper Card that allows customers to pay in advance for coffee and snacks. This effort by EcoBean management is most likely an example of ________.
market penetration
When a company chooses to divest a particular strategic business unit, it ________.
sells off or phases out the strategic business unit
Which of the following best describes a company's business portfolio?
the collection of businesses and products that make up the company
Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?
to give customers the complexion they dream about by providing products suited to their needs
When using a harvest strategy for a particular strategic business unit, a company ________.
tries to maximize its short-term cash flow regardless of long-term concerns