Marketing Management - I (Aug’2023 – Oct’2023):
(Assignment: 8)
1. What does market strategy primarily focus on?
a) Managing day-to-day operations
b) Allocating financial resources
c) Identifying target customer segments and appropriate positioning.
d) Setting the overall direction of the organization
By identifying target customer segments and developing appropriate positioning, businesses can
focus their marketing efforts on the most promising opportunities.
2. A manufacturing company produces electronic gadgets for various customer segments,
including tech enthusiasts and budget-conscious consumers. The company has identified
the need to improve its operational efficiency to remain competitive. Which operational
performance objective is most relevant for the manufacturing company?
a) Increasing market share within the tech enthusiast segment
b) Reducing production costs while maintaining product quality
c) Expanding the product line to attract new customer segments
d) Enhancing customer satisfaction through improved customer support
By reducing production costs, the manufacturing company can lower its prices, making its
products more appealing to budget-conscious consumers.
3. Which of the following strategies primarily focuses on encouraging customers to use a
product or service more frequently or in larger quantities to boost unit sales?
a) Increase customer use
b) Secure new business
c) Increase customer retention
d) Attract customers from competitors
The goal of increasing customer use is to encourage existing customers to use a product or
service more frequently or in larger quantities.
4. _____________ are those elements that are considered mandatory for a brand to be
considered a legitimate competitor in its specific category.
a) Points of conflict
b) Points of parity
c) Points of weakness
d) Points of reference
Points of parity are the attributes or features that are shared by most or all brands in a particular
category.
5. A company that sells industrial machinery wants to segment its B2B market to better
tailor its marketing strategies. After conducting research, they identify three primary
customer types: manufacturers, distributors, and service providers. Each of these
customer types has distinct needs and preferences when it comes to purchasing industrial
machinery. Which segmentation method is this company using for their B2B market?
a) Segmentation by customer type.
b) Segmentation by end-use application.
c) Segmentation by purchase categories.
d) Segmentation by demographic characteristics.
The company is dividing its B2B market into segments based on the different types of customers
it serves. This is a common and effective way to segment B2B markets, as it allows companies to
tailor their marketing messages and offerings to the specific needs of each customer type.
6. A small coastal town relies heavily on a single bridge for transportation to and from the
mainland. The bridge has a toll booth, and commuters must pay a toll to use it. Despite
periodic increases in the toll price over the years, the number of daily commuters using
the bridge has remained relatively constant. What type of demand is illustrated in this
scenario?
a) Derived demand
b) Joint demand
c) Elastic demand
d) Inelastic demand
In this scenario, the demand for bridge tolls is inelastic. This means that the quantity demanded
of bridge tolls is relatively unresponsive to changes in price. Even though the toll price has
increased over time, the number of daily commuters using the bridge has remained relatively
constant. This is because the bridge is a necessity for commuters who live in the coastal town.
There are no viable alternatives to using the bridge, so commuters have no choice but to pay the
toll. As a result, the demand for bridge tolls is inelastic.
7. A manufacturing company has been purchasing a specific type of machine part from the
same supplier for several years. The part is essential for their production process, and
they have been satisfied with the supplier's quality and pricing. Recently, the supplier
increased the price of the machine part, but it is still within an acceptable range for the
company. The buyer decides to place an order for the same machine part without any
modifications. What type of business buying situation does this scenario represent?
a) New buy
b) Modified rebuy
c) Straight rebuy
d) Complex buy
In a straight rebuy, the buyer repurchases the same goods or services from the same supplier
without any modifications.
8. A well-established electronics company is facing competition from a new entrant that is
offering innovative products targeting a niche market segment. The company needs to
defend its market share. What type of marketing strategy would be most appropriate for
the company in this situation?
a) Mobile defence
b) Position defence
c) Pre-emptive defence
d) Flank defence
In a flank defence strategy, a company identifies and strengthens its weaknesses before the
competition can exploit them. This can be done by expanding into new markets, developing new
products, or improving customer service.
9. What is the primary focus of an adapter market follower strategy?
a) Copying the market leader's products exactly as they are
b) Improving on the products or services of the market leader
c) Producing counterfeit products
d) Creating unique and innovative products
An adapter market follower strategy is a marketing strategy in which a company follows the
market leader and improves on their products or services. This can be done by adding new
features, improving quality, or offering a lower price.
10. In the highly competitive smartphone industry, Apple Inc. has established itself as a
dominant market leader with its premium-priced iPhones. Samsung, a strong challenger,
wants to challenge Apple's dominance by capturing a significant market share. Which
market-challenger strategy, exemplified by Samsung, involves attacking Apple from all
sides, offering a range of smartphones with various features and price points, and
aggressively marketing them to appeal to a broad spectrum of consumers?
a) Frontal Attack
b) Flank Attack
c) Bypass Attack
d) Encirclement Attack
An encirclement attack is a market-challenger strategy that involves attacking the market leader
from all sides. This can be done by offering a range of products with various features and price
points, targeting different customer segments, and using a variety of marketing channels.
