UTA MARK-3321 EXAM QUESTIONS
WITH COMPLETE ANSWERS
Identifying strategic alternatives and knowing the basic outline for a marketing plan -
ANSWER-Ansoff's opportunity matrix presents 4 options to help management
develop strategies and alternatives
Ansoff's Opportunity Matrix - ANSWER-
Market Penetration - ANSWER-An existing product that sells in an existing market.
Ex. Starbucks sells more coffee to customers who register their reloadable
Starbucks card.
Product Development - ANSWER-A new product that will see in an existing market.
Ex. Starbucks develops powdered instant coffee called 'Via'.
Market Development - ANSWER-An existing product that sells in a new market.
Ex. Starbucks opens a store in Brazil or Chile.
Diversification - ANSWER-A new product that will sell in a new market.
Ex. Starbucks launches 'Hear Music' and 'Ethos Water'.
Portfolio Matrix (or the Business Portfolio Analysis) - ANSWER-
Stars - ANSWER-a business unit that is a fast growing market leader.
Ex. Handheld computers and tablets. (high growth, high market share)
Cash Cow - ANSWER-a business unit that generates more cash than it needs to
maintain a market share.
Ex. Laptops and personal computers. (low growth, high market share)
Problem Child (or Question Mark) - ANSWER-a business unit that shows rapid
growth but poor profit margins.
Ex. Integrated phone/palm devices. (high market growth, low market share)
Dog - ANSWER-a business unit that has low growth and small market share.
Ex. Mainframe computer. (low growth and low market share.
Market Opportunity Analysis (MOA) - ANSWER-the description and estimation of the
size and sales potential of market segments that are of interest to the firm and the
assessment of key competitors in these market segments
General Electric Model - ANSWER-
Example of Invest/Grow (GE Model) - ANSWER-Tesla has a high market share
(52.9%) in the Electric Vehicle (EV) market which has grown 553.9% since 2012. It's
an attractive market and Tesla has a high business position so they should continue
to invest/grow.
, Example of Cautiously Invest (GE Model) - ANSWER-Disney has a low position in
the Streaming Video on Demand (SVOD), (they own a 60% stake in Hulu). Hulu
competes against Netflix, Amazon, and YouTube TV. It is an attractive and growing
market and they are releasing Disney+ at the end of 2019. With a low business
position, and a high market attractiveness, they should cautiously invest.
Example of Harvest/Divest (GE Model) - ANSWER-Walgreens still does
photofinishing for customers. This is a low market attractiveness (because of
phones) and they also have a low business position (Kodak has approximately 85%
of this market). With a low business position and a low market attractiveness,
Walgreens should harvest/divest their Photofinishing segment.
Developing an appropriate mission statement - ANSWER-the firms mission
statement establishes boundaries for all subsequent decisions, objectives, and
strategies. A mission statement should focus on the market(s) the organization is
attempting to serve rather than the goods or services offered
Mission Statement - ANSWER-a statement of the firm's business based on a careful
analysis of benefits sought by present and potential customers and an analysis of
existing and anticipated environmental conditions
Situation Analysis (SWOT) - ANSWER-In the situation (SWOT) analysis, the firm
should identify its internal Strengths (S) and Weaknesses (W). The organization
must also examine external Opportunities (O) and Threats (T). When taking in
Opportunities and Threats, marketing managers must analyze aspects of the
marketing environment called environmental scanning.
Environmental Scanning - ANSWER-collection and interpretation of information
about forces, events, and relationships in the external environment that may affect
the future of the organization or the implementation of the marketing plan
Competitive Advantages - ANSWER-a set of unique features of a company and its
products that are perceived by the target market as significant and superior to those
of the competition
Identifying Competitive Advantages - ANSWER-there are 3 types of competitive
advantages: cost, product/service differentiation, and niche.
Cost (Competitive Advantages) - ANSWER-experience curve, efficient labor, no-frills
goods and services, government subsides, product design, re-engineering, product
innovations, and new methods of service delivery.
Ex. Boeing has a Cost Advantage over Lockheed Martin in the 'Defense, Space &
Security' such as missiles, satellites, and space transportation because Boeing has
approximately $26.5 billion in Government Subsides versus Lockheed's $22.5 billion.
Product/Service (Competitive Advantages) - ANSWER-when a firm provides
something unique that is valuable to buyers beyond just a low price.
Ex. Apple has a better product/service than Samsung because of better features,
reliability, and customer service.
WITH COMPLETE ANSWERS
Identifying strategic alternatives and knowing the basic outline for a marketing plan -
ANSWER-Ansoff's opportunity matrix presents 4 options to help management
develop strategies and alternatives
Ansoff's Opportunity Matrix - ANSWER-
Market Penetration - ANSWER-An existing product that sells in an existing market.
Ex. Starbucks sells more coffee to customers who register their reloadable
Starbucks card.
Product Development - ANSWER-A new product that will see in an existing market.
Ex. Starbucks develops powdered instant coffee called 'Via'.
Market Development - ANSWER-An existing product that sells in a new market.
Ex. Starbucks opens a store in Brazil or Chile.
Diversification - ANSWER-A new product that will sell in a new market.
Ex. Starbucks launches 'Hear Music' and 'Ethos Water'.
Portfolio Matrix (or the Business Portfolio Analysis) - ANSWER-
Stars - ANSWER-a business unit that is a fast growing market leader.
Ex. Handheld computers and tablets. (high growth, high market share)
Cash Cow - ANSWER-a business unit that generates more cash than it needs to
maintain a market share.
Ex. Laptops and personal computers. (low growth, high market share)
Problem Child (or Question Mark) - ANSWER-a business unit that shows rapid
growth but poor profit margins.
Ex. Integrated phone/palm devices. (high market growth, low market share)
Dog - ANSWER-a business unit that has low growth and small market share.
Ex. Mainframe computer. (low growth and low market share.
Market Opportunity Analysis (MOA) - ANSWER-the description and estimation of the
size and sales potential of market segments that are of interest to the firm and the
assessment of key competitors in these market segments
General Electric Model - ANSWER-
Example of Invest/Grow (GE Model) - ANSWER-Tesla has a high market share
(52.9%) in the Electric Vehicle (EV) market which has grown 553.9% since 2012. It's
an attractive market and Tesla has a high business position so they should continue
to invest/grow.
, Example of Cautiously Invest (GE Model) - ANSWER-Disney has a low position in
the Streaming Video on Demand (SVOD), (they own a 60% stake in Hulu). Hulu
competes against Netflix, Amazon, and YouTube TV. It is an attractive and growing
market and they are releasing Disney+ at the end of 2019. With a low business
position, and a high market attractiveness, they should cautiously invest.
Example of Harvest/Divest (GE Model) - ANSWER-Walgreens still does
photofinishing for customers. This is a low market attractiveness (because of
phones) and they also have a low business position (Kodak has approximately 85%
of this market). With a low business position and a low market attractiveness,
Walgreens should harvest/divest their Photofinishing segment.
Developing an appropriate mission statement - ANSWER-the firms mission
statement establishes boundaries for all subsequent decisions, objectives, and
strategies. A mission statement should focus on the market(s) the organization is
attempting to serve rather than the goods or services offered
Mission Statement - ANSWER-a statement of the firm's business based on a careful
analysis of benefits sought by present and potential customers and an analysis of
existing and anticipated environmental conditions
Situation Analysis (SWOT) - ANSWER-In the situation (SWOT) analysis, the firm
should identify its internal Strengths (S) and Weaknesses (W). The organization
must also examine external Opportunities (O) and Threats (T). When taking in
Opportunities and Threats, marketing managers must analyze aspects of the
marketing environment called environmental scanning.
Environmental Scanning - ANSWER-collection and interpretation of information
about forces, events, and relationships in the external environment that may affect
the future of the organization or the implementation of the marketing plan
Competitive Advantages - ANSWER-a set of unique features of a company and its
products that are perceived by the target market as significant and superior to those
of the competition
Identifying Competitive Advantages - ANSWER-there are 3 types of competitive
advantages: cost, product/service differentiation, and niche.
Cost (Competitive Advantages) - ANSWER-experience curve, efficient labor, no-frills
goods and services, government subsides, product design, re-engineering, product
innovations, and new methods of service delivery.
Ex. Boeing has a Cost Advantage over Lockheed Martin in the 'Defense, Space &
Security' such as missiles, satellites, and space transportation because Boeing has
approximately $26.5 billion in Government Subsides versus Lockheed's $22.5 billion.
Product/Service (Competitive Advantages) - ANSWER-when a firm provides
something unique that is valuable to buyers beyond just a low price.
Ex. Apple has a better product/service than Samsung because of better features,
reliability, and customer service.
