Strategic Planning
A software company has a product with 60% market share in a rapidly growing cloud computing market. Using the BCG Matrix, this product would be classified as a:
a) Star
b) Cash Cow
c) Question Mark
d) Dog
a) Star
A construction company's CEO is deciding whether to purchase a new fleet of trucks worth $2 million. She spends months researching options, consulting with multiple stakeholders, and analyzing financial projections. This represents:
a) Routine response behavior
b) Limited decision making
c) Extensive decision making
d) Impulse buying
c) Extensive decision making
A restaurant chain decides to open locations in college towns specifically targeting students aged 18-24 who value quick, affordable meals. What type of segmentation strategy are they primarily using?
a) Geographic and psychographic
b) Demographic and behavioral
c) Geographic and demographic
d) Psychographic and behavioral
c) Geographic and demographic
What are the four types of products?
Convenience, shopping, specialty/luxury, unsought
A family realizes their old car is unreliable and starts researching new vehicles online, visiting dealerships, and asking friends for recommendations. They are in which stage of decision-making?
a) Problem recognition
b) Information search
c) Evaluation of alternatives
d) Purchase decision
b) Information search
Starbucks decides to open coffee shops in grocery stores to reach customers who don't visit standalone locations. According to Ansoff's Matrix, this represents:
a) Market penetration
b) Market development
c) Product development
d) Diversification
b) Market development
An office manager realizes the printer is out of toner and immediately orders the same brand they always use without researching alternatives. This demonstrates:
a) Extensive decision making
b) Limited decision making
c) Routine response behavior
d) New task buying
c) Routine response behavior
Toyota segments customers into economy car buyers, luxury car buyers, and hybrid car buyers, creating different marketing campaigns for each group. This is an example of:
a) Undifferentiated targeting
b) Concentrated targeting
c) Differentiated targeting
d) Mass marketing
c) Differentiated targeting
Jake’s Snacks sells chips, cookies, and protein bars. Recently, they introduced a gluten-free cookie option under the cookie product line. What type of product mix strategy is this?
a. Increasing product mix width
b. Increasing product line depth
c. Decreasing product line consistency
d. Line pruning
Increasing product line depth
A company that segments customers based on how frequently they use the product is using __________ segmentation.
Amazon decides to enter the grocery delivery market with Amazon Fresh, targeting existing Amazon Prime members. This represents:
a) Market penetration
b) Market development
c) Product development
d) Diversification
c) Product development
After purchasing an expensive watch, a customer questions whether they made the right choice. This feeling is called __________.
Cognitive dissonance
Apple launches the same iPhone model worldwide with identical features and marketing messages. This approach represents which targeting strategy?
a) Concentrated targeting
b) Differentiated targeting
c) Undifferentiated targeting
d) Niche targeting
c) Undifferentiated targeting
A fashion brand offers casual wear, formal wear, and accessories. Each category includes a variety of sizes and colors. If the brand introduces a footwear collection, which aspect of the product mix are they expanding?
Product mix width
Match the scenario to the correct targeting strategy:
a. Nike creates different shoes for basketball, running, and tennis
b. Coca-Cola uses the same formula and marketing globally
A. Undifferentiated
B. Concentrated
C. Differentiated
a. Differentiated
b. Undifferentiated
Match the scenario to the correct strategy:
a. Netflix expanding its existing streaming service to new countries where it has never operated before
b. Netflix creating original content and documentaries for its existing subscriber base in current markets
c. Netflix opening physical entertainment venues for its current subscribers in existing markets
d. Netflix launching a gaming platform for current customers who aren't interested in video streaming
A. Market Penetration
B. Market Development
C. Product Development
D. Diversification
a. Market development
b. Product development
c. Product development
d. Product development
When a procurement manager transitions from automatically reordering the same supplies to evaluating new options due to changing company needs, they move from __________ behavior to __________ decision making.
Routine response, limited
Tracy and Roy are new parents of a 2-month-old baby. They are now frequent purchasers of diapers, wipes, baby clothes, and other baby necessities. Which demographic is most relevant to their current buying behavior?
Family life cycle
List the four types of products discussed in class
List the three types of decisions discussed in class
What type of decision is most likely to be used when purchasing each type of product?
Convenience --> Routine response behavior
Shopping --> Limited decision making
Specialty --> Extensive decision making
Unsought --> Varies
In the BCG Matrix, a product with high market share in a low-growth market is called a __________.
Cash cow
GlobalTech is analyzing its product portfolio using the BCG Matrix. Product Alpha has 65% market share in a market growing at 18% annually but requires significant investment to maintain its position. Product Beta has 70% market share in a market growing at 2% annually and generates substantial cash flow with minimal investment needed. Product Gamma has 8% market share in a market growing at 22% annually and is losing money. Based on this information, what strategic recommendation would be most appropriate?
a) Invest heavily in Gamma, maintain Alpha, and harvest Beta
b) Divest Gamma, invest in Alpha, and harvest Beta
c) Maintain all three products equally
d) Harvest Alpha, invest in Beta, and divest Gamma
b) Divest Gamma, invest in Alpha, and harvest Beta
A B2B software company's purchasing manager is evaluating a new enterprise resource planning (ERP) system. This is a $5 million decision that will affect the entire organization for the next 10 years. The manager forms a buying center including IT directors, finance managers, operations managers, and end-users. They spend 18 months evaluating options, visiting vendor facilities, and conducting pilot programs. Six months after implementation, some managers question whether they chose the best system. This scenario illustrates:
a) Limited decision making followed by cognitive dissonance
b) Extensive decision making followed by post-purchase evaluation
c) Routine response behavior with buyer's remorse
d) Modified rebuy with implementation challenges
b) Extensive decision making followed by post-purchase evaluation
TechStart is a new company with limited resources. They identify that eco-conscious tech professionals aged 25-35 in major cities represent an underserved niche for sustainable electronics accessories. They decide to focus all their marketing efforts and resources on this single segment, becoming experts in sustainable tech accessories. This strategy is:
a) Undifferentiated targeting
b) Differentiated targeting
c) Concentrated targeting
d) Mass marketing
c) Concentrated targeting
List and describe the four main differences between services and products.
Intangibility refers to the fact that services cannot be sensed in the same way as products
Inseparability refers to the fact that production and consumption of services cannot be separated
Perishability refers to the fact that services cannot be stored
Heterogeneity refers to the fact that services vary in their delivery while products can be standardized
Name and describe the three types of values associated with consumer decision making discussed in class.
Perceived value: value a consumer expects to obtain from a purchase
Utilitarian value: value derived from a product or service that helps the consumer solve problems and accomplish tasks
Hedonic value: value that acts as an end in itself rather than as a means to an end