Question 1

Calculate the share potential index if a business is achieving a share development index of 45 at a market share index of 25%.

Accepted Answer

A) 20% 
B) 55.6% 
C) 70% 
D) 35% 
E) 60% 
A) 20% 
B) 55.6% 
C) 70% 
D) 35% 
E) 60% B

Question 2

Modern Shades,a firm that manufactures cosmetic products for women,should have had a market share of 8% in the cosmetics market,but owing to a variety of other factors,its actual market share was only 5%.Furthermore,it was estimated that the business' market share index potential would be 15% if the business achieved the desired level of customer response along the share development path.What is Modern Lip's share development index (SDI)?

Accepted Answer

A) 20 
B) 33.3 
C) 53.3 
D) 67.5 
E) 86.7 
A) 20 
B) 33.3 
C) 53.3 
D) 67.5 
E) 86.7 C

Question 3

Calculate the market development index if the current market demand of the product is 240 million and the potential for market growth is 400 million.

Accepted Answer

A) 60 
B) 80 
C) 160 
D) 166.67 
E) 640 
A) 60 
B) 80 
C) 160 
D) 166.67 
E) 640 A

Question 4

New customers will be hard to find,once a market reaches ________.

Accepted Answer

A) the rapid growth stage 
B) the early growth stage 
C) its lowest market potential 
D) its tipping point 
E) saturation 
A) the rapid growth stage 
B) the early growth stage 
C) its lowest market potential 
D) its tipping point 
E) saturation

Question 5

A business' sales are the product of ________.

Accepted Answer

A) average selling price and average margin percentage 
B) market potential and market demand 
C) market demand in units and price per unit 
D) market share and price per unit 
E) market demand in units and market share 
A) average selling price and average margin percentage 
B) market potential and market demand 
C) market demand in units and price per unit 
D) market share and price per unit 
E) market demand in units and market share

Question 6

What is the current market demand for Valiant running shoes if its market development index is 64 and its market potential is 480 million?

Accepted Answer

A) 1333.3 million 
B) 307.2 million 
C) 750 million 
D) 172.8 million 
E) 721.8 million 
A) 1333.3 million 
B) 307.2 million 
C) 750 million 
D) 172.8 million 
E) 721.8 million

Question 7

For any technology,the market demand has an upper limit that can be exceeded without a change in technology or a new way of using the product.

Accepted Answer

A) True 
 B)False

Question 8

A positive NMC is the result of marketing and sales expenses exceeding gross profit during the introduction stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 9

The last customers to adopt a new product or service are called ________.

Accepted Answer

A) early adopters 
B) early majority customers 
C) late majority customers 
D) laggards 
E) innovators 
A) early adopters 
B) early majority customers 
C) late majority customers 
D) laggards 
E) innovators

Question 10

Developing a broad vision of a market is the first step in understanding market demand.

Accepted Answer

A) True 
 B)False

Question 11

New product-market penetration is determined by customer and product adoption forces.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of the product life cycle?

Accepted Answer

A) In the early stages of the product life cycle,the NMC is positive. 
B) As the product moves into the declining stage,it reaches a break-even NMC. 
C) As the market matures,flat market demand,and lowered marketing and sales expenses results in higher NMCs. 
D) At a break-even NMC,the gross profit is equal to the marketing and sales expenses. 
E) At the early growth stage,the annual NMCs grow and eventually peak. 
A) In the early stages of the product life cycle,the NMC is positive. 
B) As the product moves into the declining stage,it reaches a break-even NMC. 
C) As the market matures,flat market demand,and lowered marketing and sales expenses results in higher NMCs. 
D) At a break-even NMC,the gross profit is equal to the marketing and sales expenses. 
E) At the early growth stage,the annual NMCs grow and eventually peak.

Question 13

A broad market definition includes all potential substitute products.

Accepted Answer

A) True 
 B)False

Question 14

If a business had a 100 percent market share,then ________.

Accepted Answer

A) it would be unable to achieve full market potential 
B) it would see beyond the articulated needs of served customers 
C) its sales would equal the market demand 
D) its net marketing contribution would be negative 
E) marketing and sales expenses would exceed gross profit 
A) it would be unable to achieve full market potential 
B) it would see beyond the articulated needs of served customers 
C) its sales would equal the market demand 
D) its net marketing contribution would be negative 
E) marketing and sales expenses would exceed gross profit

Question 15

The more similar one market is to another,the less likely the possibility that consumers will substitute products.

Accepted Answer

A) True 
 B)False

Question 16

At any point in time,a business has an existing pool of current and prospective customers who make up current market demand and a potential pool of prospective customers who provide the opportunity to grow market demand.

Accepted Answer

A) True 
 B)False

Question 17

Compare and contrast a narrow market definition with a broad market definition.List three key benefits of using a broad market definition.

Accepted Answer

A business with a narrow market focus do

Question 18

Adding the market development index and share development index to a sales forecast provides a way to understand the potential for future sales growth.

Accepted Answer

A) True 
 B)False

Question 19

Prices tend to flatten out as products reach the ________ stage of the product life cycle.

Accepted Answer

A) early growth 
B) maturity 
C) late growth 
D) decline 
E) introduction 
A) early growth 
B) maturity 
C) late growth 
D) decline 
E) introduction

Question 20

The ratio of total sales to current market demand is known as the share development index (SDI).

Accepted Answer

A) True 
 B)False

Calculate the share potential index if a business is achieving a share development index of 45 at a market share index of 25%.

Calculate the market development index if the current market demand of the product is 240 million and the potential for market growth is 400 million.

New customers will be hard to find,once a market reaches ________.

A business' sales are the product of ________.

What is the current market demand for Valiant running shoes if its market development index is 64 and its market potential is 480 million?

For any technology,the market demand has an upper limit that can be exceeded without a change in technology or a new way of using the product.

A positive NMC is the result of marketing and sales expenses exceeding gross profit during the introduction stage of the product life cycle.

The last customers to adopt a new product or service are called ________.

Developing a broad vision of a market is the first step in understanding market demand.

New product-market penetration is determined by customer and product adoption forces.

Which of the following is true of the product life cycle?

A broad market definition includes all potential substitute products.

If a business had a 100 percent market share,then ________.

The more similar one market is to another,the less likely the possibility that consumers will substitute products.

At any point in time,a business has an existing pool of current and prospective customers who make up current market demand and a potential pool of prospective customers who provide the opportunity to grow market demand.

Compare and contrast a narrow market definition with a broad market definition.List three key benefits of using a broad market definition.

Adding the market development index and share development index to a sales forecast provides a way to understand the potential for future sales growth.

Prices tend to flatten out as products reach the ________ stage of the product life cycle.

The ratio of total sales to current market demand is known as the share development index (SDI).

Customer Focus, customer Performance, and Profit Impact

Marketing Metrics and Marketing Profitability

The Customer Experience and Value Creation

Market Segmentation and Segmentation Strategies

Competitive Position and Sources of Advantage

Product Positioning, branding, and Product Line Strategies

Value-Based Pricing and Pricing Strategies

Marketing Channels and Channel Mapping

Marketing Communications, social Media, and Customer Response

Portfolio Analysis and Strategic Market Planning

Offensive Strategies

Defensive Strategies

Building a Marketing Plan

Marketing Metrics,performance,and Strategy Implementation

Market-Based Management and Financial Performance

Filters

Exam 3: Market Potential, market Demand, and Market Share

Calculate the share potential index if a business is achieving a share development index of 45 at a market share index of 25%.

Calculate the market development index if the current market demand of the product is 240 million and the potential for market growth is 400 million.

New customers will be hard to find,once a market reaches ________.

A business' sales are the product of ________.

What is the current market demand for Valiant running shoes if its market development index is 64 and its market potential is 480 million?

For any technology,the market demand has an upper limit that can be exceeded without a change in technology or a new way of using the product.

A positive NMC is the result of marketing and sales expenses exceeding gross profit during the introduction stage of the product life cycle.

The last customers to adopt a new product or service are called ________.

Developing a broad vision of a market is the first step in understanding market demand.

New product-market penetration is determined by customer and product adoption forces.

Which of the following is true of the product life cycle?

A broad market definition includes all potential substitute products.

If a business had a 100 percent market share,then ________.

The more similar one market is to another,the less likely the possibility that consumers will substitute products.

At any point in time,a business has an existing pool of current and prospective customers who make up current market demand and a potential pool of prospective customers who provide the opportunity to grow market demand.

Compare and contrast a narrow market definition with a broad market definition.List three key benefits of using a broad market definition.

Adding the market development index and share development index to a sales forecast provides a way to understand the potential for future sales growth.

Prices tend to flatten out as products reach the ________ stage of the product life cycle.

The ratio of total sales to current market demand is known as the share development index (SDI).

Customer Focus, customer Performance, and Profit Impact

Marketing Metrics and Marketing Profitability

The Customer Experience and Value Creation

Market Segmentation and Segmentation Strategies

Competitive Position and Sources of Advantage

Product Positioning, branding, and Product Line Strategies

Value-Based Pricing and Pricing Strategies

Marketing Channels and Channel Mapping

Marketing Communications, social Media, and Customer Response

Portfolio Analysis and Strategic Market Planning

Offensive Strategies

Defensive Strategies

Building a Marketing Plan

Marketing Metrics,performance,and Strategy Implementation

Market-Based Management and Financial Performance

Filters