Question

Portfolio analysis is a process to:

Select one:

a. to assess the value of each Strategic Business Unit (SBU) in a company

b. to compare the value of each SBU to similar competitors

c. to assess the future business potential of each SBU

d. All of the above

Question 7

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Marketing generally abides by the 80/20 rule (20% of customers generate 80% of profits). Therefore, an essential marketing strategy is to:

Select one:

a. ensure that our value offer is perceived better than our competitors' value offers.

b. Apply 100% of our marketing resources to the largest segments only.

c. position the company to attract as many different customer segments as possible.

d. Understand which segments will yield the greatest profit and apply most marketing resources toward those segments.

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Two part question:

1) How large is the total market potential for LIFE Magazine?

- Assume 300 million people in the U.S., but only 60% buy magazines.

2) Now, calculate LIFE Magazine's market demand (i.e. the number of total customers LIFE currently has) if LIFE has 10% market share of the magazine buying market.

Select one:

a. 1) 180-million market potential, and 2) 30 million market demand.

b. 1) 180-million market potential, and 2) 18-million market demand.

c. 1) 300-million potential market demand, and 2) 30-million market demand.

d. 1) 300-million market potential, and 2) 18-million market demand.

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Internal marketing refers to efforts directed within the company to ensure that everyone in the organization understands and embraces appropriate marketing principles.

Select one:

True

False

Question 10

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A marketer who calculates the net present value of the stream of future profits expected over the customer's lifetime purchases has correctly calculated the customer's lifetime value.

Select one:

True

False

Answer 1

7) d. Understand which segments will yield the greatest profit and apply most marketing resources toward those segments.

It says that since 80% of revenue is generated through only 20% of customer, more resources should be allocated to the 20% of customers

8) total market potential for LIFE Magazine = 300 million *60% = 180 million

LIFE Magazine's market demand = 180*10% = 18 million

Thus answer b. 1) 180-million market potential, and 2) 18-million market demand.

9) True

Internal marketing focuses to bring clarity amount organisation itself

10) True