1. True or False Question:

1. Competitive positioning is more dynamic when competitive advantages are long-term than when the competitive advantage is short-term.
2. The nature of industry competition is determined solely by the competitors themselves.
3. In the growth stage of the ProductLife Cycle, the market becomes saturated, sales grow at a decreasing rate and then stabilize, competition leads to a significant reduction in profits and branding is the key to this.
4. A key benefit of being the lowest producer is that a business is unlikely to be undercut on price.
5. In the maturity stage of the product life cycle, a strategy of market penetration is most likely to be used.
6. Decline of an industry may be reversed by technological breakthroughs in which it is a growth industry again.
7. Power of suppliers is high if the buying industry is not price sensitive.
8. Power of buyer is low if the customer is price sensitive.
9. Industry rivalry is high if there is low differentiation of competing products.
10. Selective distribution is used when a small percentage of customers account for a large part of sale.
11. Customer changing wants and their behavior can be better understood in direct distribution.
12. A long-term sustainable competitive advantage will not happen when you combine a market analysis, self-analysis, and marketing mix.
13. Market share is the increase in demand for a particular product or service over time.
14. Companies in the star quadrant of the BCG Matrix are doing well in no growth market and have limited opportunities.
15. Companies in the question mark quadrant of the BCG Matrix does not know what to do with opportunities; decide whether to increase investment.
16. In the maturity stage of the product life cycle, a strategy of penetration pricing is most likely to be used.
17. Michel Porter model recognizes products as merely a means to satisfy consumers varying needs and wants.
18. According to Herzberg a factor that might cause dissatisfaction among employees is the hygiene factor. -
19. The two stages when cash flow from a product are most likely to be positive are maturity and decline.
20. A firm can reduce the bargaining power of suppliers by designing standardized components so that many suppliers can produce them.
21. Scale and experience are the most significant barriers to entering the steel production industry.

2. Multiple Choice:

22. Linda imports fine paintings and photographs that sells to hotels 400 percent in the last. Her business is growing, and she plans to expand into the profitable hospital and senior assisted living housing markets. According to the BCG Matrix, Lindas business is:

a. Star

b. Cash Cow

c. Dog

d. Question Mark

23. Which of the Porters 5 forces is most closely associated with the concept barrier to entry?
    1. Threat of new entrants
    2. Threat of substitutes
    3. Competitive rivalry
    4. Bargaining power of buyers.
    5. Bargaining power of suppliers.

24. Demographic segmentation refers to:

1. The description of the people and place in society
2. The description of the peoples purchasing behavior
3. The location where people live
4. Geographic regions
5. All the above

25. In the Porters 5 Forces, factors that make an industry attractive are the following, except_____ .
    1. High barriers to entry
    2. Weak supplier bargaining power
    3. Weak buyer bargaining power
    4. Intense competition
    5. Few substitute products or services

26. What are the two most used demographic variables used by marketers?
    1. Age and income
    2. Gender and income
    3. Education and family size
    4. Age and gender
    5. Family size and age

27. Which is not part of Push Marketing Strategy?
    1. A strategy focused on drawing consumers to your product
    2. A strategy focused on bringing what your offer to customers in your marketing
    3. Business takes their products to the customers
    4. Customers ask retailers for products; retailers ask wholesalers for product and wholesalers ask producers for product
    5. A and B
    6. B and C
    7. A and D

28. Low growth on declining markets is usually associated with:

a. High prices and industry profits

b. High number of new entrants

c. Lower competitive rivalry

d. Price competition and low profitability

29. Firms use this generic competitive strategy by actively pursuing ways to produce products or services at the lowest production expenditures through high-capacity utilization, scale economies, technological advantage and learning or experience effects
    1. Differentiation
    2. Cost leadership
    3. Best cost
    4. Focus
    5. None of the above

Assuming a company like Apple that manufacturers iPod, iPad, Mac-pro, MacBook, what would its competitive industry environment using Porters 5 Forces Model: (30-33)

a. Bargaining Power of buyers

b. Bargaining Power of suppliers

c. Competitive Rivalry

d. Threat of new entrants

e. Threat of Substitutes products

30. Sony MP 3 players - _____ ____
31. Sony lithium polymer battery used in iPod - ___ _____
32. DLSU students and faculty using iPod, Mac-pro, iPad - __ _____
33. Huawei, Oppo, Cherry Mobile Smart Phones - __ or ____

34. The price of a barrel of oil has varied dramatically in the last few years. When the price of oil is high, automobile drivers look to find ways to drive less. An examination of this issue would be in the _________ section of the marketing plan. - A
    1. Bargaining power of buyers
    2. Bargaining power of suppliers
    3. Threat of new entrants
    4. Theat of substitute products
    5. Rivalry among existing firms

Identify: Porters 5 Forces (35-38)

a. Bargaining power of buyers

b. Bargaining power of suppliers

c. Competitive rivalry

d. Threat of new entrants

e. Threat of substitutes

35. The extent to which new competitors may decide to enter the industry and reduce the level of profits being earned by incumbent firms. -
36. The threat from products and services which can meet similar needs. -
37. The extent to which consumers can affect the industry, for example to force down prices, bargain for higher-quality or play competitors against each other.
38. The extent of competition and the overall profitability of the organization within the industry.

39. In the Porters 5 Forces, factors that make an industry attractive are the following, except_____
    1. High barriers to entry
    2. Weak supplier bargaining power
    3. Weak buyer bargaining power
    4. Intense competition
    5. Few substitute products or services

40. Which statement is not true about Porters 5 Forces? -
    1. Porters 5 forces is an analysis tool that uses five forces to determine the profitability of an industry and shape a firms competitive strategy.
    2. It is a framework that classifies and analyzes the most important forces affecting the intensity in an industry and its profitability level
    3. The stronger competitive forces in the industry are the more profitable it is.
    4. These forces determine an industry structure and the level of competition in the industry.
    5. An industry with low barriers to enter, having few buyers and supplier but many substitute products and competitors will be seen as very competitive and thus, not so attractive due to its low profitability.

PESTLE Analysis Identify the factors: (41-43) 2 answers each

Factors:

A. Research and Development

B. Automation

C. Consumer Views

D. Corruption

E. Discriminations laws

F. Tariffs

G. Employment laws

H. Exchange rates and Interest rates

I. Tax policy

J. Health Consciousness

41. Political _ and __ ___
42. Legal and _ _____
43. Social Cultural _ _ and ___ _

44. Which term below refers to the predictor or treatment variable? A

1. Independent variable
2. Dependent variable
3. Control variable
4. Mechanical Variable

45. A market with which of the following characteristics makes the industry more attractive and increase profit potential for the firm except: C
    1. Low barriers to entry
    2. Few potential substitutes
    3. High bargaining power among buyers
    4. Low bargaining power among suppliers

46. If consumers hold an existing attitude with confidence, credible sources will: - C

1. Have greater impact
2. Affect emotions but not cognitions.
3. Have less impact
4. Affect cognitions but not emotions.

47. The end goal of using a PESTLE analysis technique should be to:
    1. Identify trends in the macro environment and identify implied strategic moves
    2. Change your strategy
    3. Understand competition
    4. Understand your core competencies

48. The higher the inflation, the:

1. Higher would be the purchasing power of consumers
2. Purchasing power of the consumers remain the same
3. Lower would be the purchasing power of consumers
4. No effect on purchasing power of consumers.

49. The threat of new entrants is high when?
    1. There are few economies of scale in the industry.
    2. Capital requirements are low.
    3. No specialized knowledge is needed.
    4. There is no product specialization.
    5. There is access to distribution channels.
    6. Switching costs for firms are low.
    7. There are no government-imposed barriers.
    8. All the above
    9. A, B, D, E, F and G

50. What is the most critical factor in accessing competitive positioning?
    1. Product differentiation
    2. Brand name
    3. Market share
    4. Company image and reputation
    5. Breadth of product line

51. Which of the following is most likely to be as key issue during the start-up stage?
    1. Releasing capital as a reward.
    2. Changing to Entrepreneurship
    3. Sources of Capital
    4. Changing the role of entrepreneurship to manager