78. Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ____________ growth strategies. 79. Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy. 80. Most banks now have customer relationship software which, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ___________________ growth strategy. 81. Maryam called her auto insurance agent to renew her policy. The agent told her about new types of insurance that are now available--to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________ growth strategy. 82. Introducing developed products or services to a market segment the company is not currently serving is called:
analysis is a useful and powerful tool, but firms often need to take a more balanced approach because: has developed a number of metrics beyond purely financial metrics. Knowing the importance of perceptions and knowing the importance of developing ways to demonstrate its activity, Starbucks tries to find clear ways to: is the marketing director for the Pump-N-Slurp convenience store chain. She recently developed a marketing plan for the firm and presented it to company executives. Which of the following did Greta probably include in Pump-N-Slurp's marketing plan?
AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-07 Describe how firms grow their business. Topic: Growth Strategies 14. Sandisk's MP3 player product line (called the Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In BCG portfolio analysis, the Sansa would be considered a dog. TRUE The has low relative market share in a low-growth market, which is the definition of a dog. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 Summarize portfolio analysis and its use to evaluate marketing performance. Topic: Portfolio Analysis 15. The "Implement Marketing Mix" step of the strategic marketing planning process is part of the control phase. FALSE It is part of the Implementation phase, along with STP analysis. AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-02 Describe the elements of a marketing plan. Topic: Marketing Planning Process 16. Relative market is an example of a marketing metric. TRUE Relative market share might be used as a metric to evaluate a firm's performance compared to its competitors. Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-06 Summarize portfolio analysis and its use to evaluate marketing performance. Topic: Step 5: Evaluate Performance Using Marketing Metrics
158. Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from two to five percent over last year's sales at Stores 1 and 2, but fell two percent at Store 3. Marcia decides to give large bonuses to the managers of Stores 1 and 2, and to put Store 3's manager on probation. Critique Marcia's evaluation of her stores' performance. What would you have done differently? Be specific. The major problem with Marcia's evaluation is that her only point of comparison seems to be last year's sales figures. She should attempt to obtain information on sales trends at other Subway sandwich shops, and if possible, at competing sandwich shops in her city. For example, perhaps her competitors and/or fellow franchisees saw much larger gains, perhaps due to an improving economy. She should also seek to understand whether or not there might be an explanation for the reduction in sales at the third store. Perhaps it is located in a shopping center that has been losing tenants, which would be beyond the manager's control and therefore shouldn't factor into a performance evaluation. Analytic Blooms: Evaluate Difficulty: 3 Hard Learning Objective: 02-06 Summarize portfolio analysis and its use to evaluate marketing performance. Topic: Step 5: Evaluate Performance Using Marketing Metrics