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
Which type of business consumer is also the largest consumer in the United States?
a) Institutions
b) Governments
c) Producers
d) Resellers
b) Governments
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
A university bookstore notices that when textbook prices increase by 15%, students still purchase the same quantity because they need the books for class. This demonstrates:
a) Elastic demand
b) Inelastic demand
c) Derived demand
d) Joint demand
b) Inelastic demand
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 manufacturing company needs both steel and rubber to produce tires. If steel becomes unavailable, rubber demand also drops. This illustrates:
a) Derived demand
b) Inelastic demand
c) Joint demand
d) Fluctuating demand
c) Joint demand
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. Diversification
d. Market penetration
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
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
A manufacturing company needs steel, rubber, plastic, and electronic components to produce smart appliances. Due to a global shortage, steel prices increased by 40%, but the company continued ordering the same quantities of all materials because they need all components to complete production. However, when consumer demand for smart appliances dropped by 20%, the company reduced orders for all materials by 25%. This scenario illustrates:
a) Joint demand and derived demand
b) Inelastic demand and fluctuating demand
c) Joint demand, inelastic demand, and derived demand
d) All four characteristics of business market demand
c) Joint demand, inelastic demand, and derived demand
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
GlobalManufacturing operates in 50 countries and segments customers by: developed markets (high income, quality-focused), emerging markets (price-sensitive, value-focused), and frontier markets (basic needs, accessibility-focused). They adapt products, pricing, and distribution for each segment while maintaining core brand identity. This approach represents:
a) Geographic segmentation with standardized marketing
b) Demographic segmentation with product adaptation
c) Multivariable segmentation with differentiated targeting
d) Psychographic segmentation with global consistency
Multivariable segmentation with differentiated targeting
When a construction equipment manufacturer's sales fluctuate dramatically based on the health of the construction industry, and these fluctuations are much more extreme than the changes in construction activity itself, this demonstrates both __________ demand and __________ demand characteristics.
Derived, fluctutating
When a hospital needs surgical instruments, anesthesia equipment, monitoring devices, and specialized staff all working together to perform operations, and cannot function without any of these components, this illustrates __________ demand in business markets.
Joint