Marketing Quiz

A firm that bases product development on extensive customer research exemplifies:

• Product orientation

• Market orientation

• Production orientation

• Cost orientation

Which describes a product-orientated approach?

• Prioritizing customer feedback before design

• Focusing on internal R&D and innovations even if customer tastes shift

• Tailoring products to niche segments based on research

• Continuously adjusting price to match demand

A risk of strict product orientation is:

• Excessive marketing spend

• Losing market share if competitors better meet evolving customer needs

• Over-diversified product lines

• Insufficient R&D investment

Market orientation tends to lower failure risk by:

• Ignoring competitor actions

• Focusing on making what the firm can produce best irrespective of demand

• Adapting offerings based on changing consumer preferences

• Fixing prices far above market norms

Product orientation can succeed when:

• Many competitors focus on customer needs

• The market moves very slowly and firm has strong reputation for unique innovations

• R&D budget is minimal

• Customer preferences are highly volatile

Which factor favors market orientation over product orientation?

• Highly innovative niche product with few substitutes

• Mass-produced goods in a dynamic market with varied customer tastes

• Monopoly with no competition

• Stable technology with no change in decades

Market share formula is:

• Firm’s sales revenue ÷ Total industry sales revenue × 100

• Total industry sales revenue ÷ Firm’s sales revenue × 100

• Firm’s profit ÷ Total industry profit × 100

• Firm’s sales volume ÷ Market growth rate × 100

If a company’s sales are $40m and industry sales $200m, its market share is:

• 5%

• 20%

• 25%

• 50%

A rising market share usually signals:

• Declining competitive position

• Improved relative position versus rivals

• Shrinking industry size always

• Reduced economies of scale

An industry where top three firms hold 85% combined market share is likely:

• Perfectly competitive

• Oligopolistic with limited competition

• Fragmented with many small players

• Monopolistic with a single firm