Question 1

occurs when a product provides more value to each customer when more overall customers own or use the product.

Accepted Answer

A)  Network effect
B)  Economy
C)  Virtuous circle
D)  Synergy A

Question 2

Most significant strategic gains and losses occurring during the growth phase of a market.

Accepted Answer

A) True 
 B)False  True

Question 3

Why is it important to define the market when conducting a situation assessment?

Accepted Answer

Before assessing "the situation" it is necessary to first specify exactly what situation should be assessed. In what market does the firm participate? Who are its competitors? Who are its customers? How the market or the submarket as defined is critical to all marketing activities? If we define the market too broadly,our marketing activities lose focus. If we define the market too narrowly,we risk missing opportunities. Market definition is the basis upon which we measure our participation,or market share. Even the labeling of the market tends to define the boundaries of the firm's efforts and its vision. Because all markets are constantly evolving,market definition is also important to understand the dynamics in the market. Is the market growing or declining,and how do these dynamics relate to customer needs,wants,expectations,and requirements?

Question 4

PIMS data shows a strong correlation between _ and _ .

Accepted Answer

A)  profitability; marketing success
B)  market share; product quality
C)  market share; profitability
D)  unit costs; marketing strategy

Question 5

Competitive rivalry,the bargaining power of suppliers and customers,and the threat of substitute products and new entrants are the forces that jointly influence .

Accepted Answer

A)  industry profitability
B)  product scale effects
C)  demographic trends
D)  economies of scope

Question 6

A supply side approach to market definition focuses on the .

Accepted Answer

A)  primary industry
B)  customers' perspectives
C)  budget competition
D)  alternative products

Question 7

Marketers can most likely use the product life cycle concept as a tool for .

Accepted Answer

A)  collecting data for product analysis
B)  conducting advertising tests
C)  predicting sales trends
D)  targeting niche consumers

Question 8

Which stage of the marketing process primarily involves monitoring the environment,evaluating the firm's core competencies,and anticipating future events?

Accepted Answer

A)  situation assessment
B)  market segmentation
C)  budget analysis
D)  positioning

Question 9

In which stage of the product life cycle would share building most likely be difficult and lead to price competition?

Accepted Answer

A)  introduction
B)  growth
C)  maturity
D)  decline

Question 10

What is the broadest level of a concentric market?

Accepted Answer

A)  generic competition
B)  product form
C)  budget competition
D)  product category

Question 11

The micro environment consists of larger societal forces that affect a company,such as demographic,economic,political,and cultural forces.

Accepted Answer

A) True 
 B)False

Question 12

Economies of scale are primarily increased by .

Accepted Answer

A)  knowledge retention rates
B)  higher units of production
C)  strict industrial standards
D)  major quality modifications

Question 13

Producing more than one product and lowering the cost of production of all products is best known as .

Accepted Answer

A)  experience curve effects
B)  virtuous circles
C)  diseconomies of scale
D)  economies of scope

Question 14

A marketer who is conducting a broad exploration of customer insights and emerging market trends is most likely involved with .

Accepted Answer

A)  customer relationship management
B)  strategy formation
C)  segmentation
D)  customer assessment

Question 15

Which of the following is NOT a challenge presented to marketers by the product life cycle?

Accepted Answer

A)  A firm must be effective at adapting its marketing strategies for different life cycle stages.
B)  Sales and profits for all products eventually decline.
C)  It is difficult to plot the life cycle stages as a product goes through them.
D)  Changing tastes and technologies affect the marketing of a product as it passes through life cycle stages.

Question 16

Using interviews and ethnographies to gather customer insights produces general findings that can be applied to the mass market.

Accepted Answer

A) True 
 B)False

Question 17

For the most effective situation assessment,which of the following should occur first?

Accepted Answer

A)  evaluating technology
B)  defining the market
C)  determining a marketing mix
D)  reviewing customer needs

Question 18

Why is it important to conduct a situation assessment? What are the primary external factors to consider during a situation assessment?

Accepted Answer

The answer of Why is it important to conduct a...

Question 19

In order to be the most effective,the scope of a market definition should be fixed.

Accepted Answer

A) True 
 B)False

Question 20

Which term refers to increases in unit costs as production increases?

Accepted Answer

A)  vicious circle
B)  diseconomies of scale
C)  economies of scope
D)  experience curve effects

Exam 2: Situation Assessment: the External Environment

occurs when a product provides more value to each customer when more overall customers own or use the product.

Most significant strategic gains and losses occurring during the growth phase of a market.

Why is it important to define the market when conducting a situation assessment?

PIMS data shows a strong correlation between _ and _ .

Competitive rivalry,the bargaining power of suppliers and customers,and the threat of substitute products and new entrants are the forces that jointly influence .

A supply side approach to market definition focuses on the .

Marketers can most likely use the product life cycle concept as a tool for .

Which stage of the marketing process primarily involves monitoring the environment,evaluating the firm's core competencies,and anticipating future events?

In which stage of the product life cycle would share building most likely be difficult and lead to price competition?

What is the broadest level of a concentric market?

The micro environment consists of larger societal forces that affect a company,such as demographic,economic,political,and cultural forces.

Economies of scale are primarily increased by .

Producing more than one product and lowering the cost of production of all products is best known as .

A marketer who is conducting a broad exploration of customer insights and emerging market trends is most likely involved with .

Which of the following is NOT a challenge presented to marketers by the product life cycle?

Using interviews and ethnographies to gather customer insights produces general findings that can be applied to the mass market.

For the most effective situation assessment,which of the following should occur first?

Why is it important to conduct a situation assessment? What are the primary external factors to consider during a situation assessment?

In order to be the most effective,the scope of a market definition should be fixed.

Which term refers to increases in unit costs as production increases?