1. Market segmentation is the process of:

• A) Reducing product variety
• B) Dividing a market into distinct groups with different needs, characteristics, or behaviors
• C) Increasing product prices
• D) Conducting competitor analysis
  Answer: B) Dividing a market into distinct groups with different needs, characteristics, or behaviors

2. The primary purpose of market segmentation is to:

• A) Develop new products
• B) Identify and target specific customer needs more effectively
• C) Lower production costs
• D) Focus on reducing competitors
  Answer: B) Identify and target specific customer needs more effectively

3. Demographic segmentation divides the market based on:

• A) Consumer beliefs and attitudes
• B) Age, gender, income, education, and occupation
• C) Geographic location
• D) Buying behavior
  Answer: B) Age, gender, income, education, and occupation

4. Psychographic segmentation focuses on:

• A) Income levels
• B) Consumers’ lifestyles, values, attitudes, and interests
• C) Regional differences
• D) Product usage rates
  Answer: B) Consumers’ lifestyles, values, attitudes, and interests

5. Geographic segmentation divides markets by:

• A) Consumer personality traits
• B) The physical location of customers, such as countries, regions, or cities
• C) Product features
• D) Competitor analysis
  Answer: B) The physical location of customers, such as countries, regions, or cities

6. Behavioral segmentation involves dividing the market based on:

• A) Lifestyle choices
• B) Customer knowledge, attitudes, uses, or responses to a product
• C) Geographic location
• D) Demographic factors
  Answer: B) Customer knowledge, attitudes, uses, or responses to a product

7. Segmenting by user status means dividing customers into:

• A) Geographic regions
• B) First-time users, regular users, and non-users
• C) Income groups
• D) Age brackets
  Answer: B) First-time users, regular users, and non-users

8. Target marketing involves:

• A) Focusing marketing efforts on all possible customers
• B) Selecting one or more segments to enter and creating tailored marketing strategies
• C) Reducing marketing budgets
• D) Creating a single product for all market segments
  Answer: B) Selecting one or more segments to enter and creating tailored marketing strategies

9. A niche market is defined as:

• A) A small, specific segment of a larger market with unique needs
• B) The entire market population
• C) A high-income customer base
• D) A product feature
  Answer: A) A small, specific segment of a larger market with unique needs

10. Mass marketing is characterized by:

• A) Offering highly customized products
• B) Offering the same product to a large audience without segmentation
• C) Focusing on niche markets
• D) Reducing marketing efforts
  Answer: B) Offering the same product to a large audience without segmentation

11. Differentiated marketing involves:

• A) Focusing on one market segment only
• B) Creating different products or marketing strategies for different market segments
• C) Ignoring market segmentation
• D) Offering the lowest-priced products
  Answer: B) Creating different products or marketing strategies for different market segments

12. Concentrated marketing is:

• A) Offering products to all segments equally
• B) Focusing marketing efforts on a single market segment
• C) Reducing product variety
• D) Expanding into new geographic regions
  Answer: B) Focusing marketing efforts on a single market segment

13. Positioning refers to:

• A) Adjusting product prices
• B) Creating a distinct image and identity in the minds of the target market for a brand
• C) Expanding the product line
• D) Conducting market research
  Answer: B) Creating a distinct image and identity in the minds of the target market for a brand

14. A market segment must be:

• A) Measurable, substantial, accessible, differentiable, and actionable
• B) Based only on geographic location
• C) Ignored in mass marketing
• D) Focused on a single customer
  Answer: A) Measurable, substantial, accessible, differentiable, and actionable

15. Undifferentiated marketing is best suited for:

• A) Products that appeal to the broadest customer base
• B) Niche products
• C) Highly customized offerings
• D) Local markets only
  Answer: A) Products that appeal to the broadest customer base

Crafting the Brand Positioning

16. Brand positioning is:

• A) Reducing production costs
• B) Designing the brand’s offering and image to occupy a distinct place in the minds of the target audience
• C) Conducting competitor analysis
• D) Adjusting product features
  Answer: B) Designing the brand’s offering and image to occupy a distinct place in the minds of the target audience

17. Points of differentiation (PODs) refer to:

• A) Features or attributes that make a brand unique compared to competitors
• B) Features shared by all competitors
• C) Pricing strategies
• D) Geographic locations
  Answer: A) Features or attributes that make a brand unique compared to competitors

18. Points of parity (POPs) are:

• A) Unique product features
• B) Associations that are not necessarily unique to a brand but may be shared with competitors
• C) Competitor weaknesses
• D) Differentiation strategies
  Answer: B) Associations that are not necessarily unique to a brand but may be shared with competitors

19. A brand mantra is:

• A) A detailed marketing strategy
• B) A short, three-to-five-word phrase that captures the essence of a brand’s positioning
• C) A competitor’s tagline
• D) The company’s mission statement
  Answer: B) A short, three-to-five-word phrase that captures the essence of a brand’s positioning

20. A strong brand positioning statement should:

• A) Focus on the company’s profits
• B) Clearly define the target market, the category in which the brand competes, and the brand’s points of differentiation
• C) Be vague and open to interpretation
• D) Focus solely on product features
  Answer: B) Clearly define the target market, the category in which the brand competes, and the brand’s points of differentiation

21. The target audience in brand positioning refers to:

• A) Competitors
• B) The specific group of consumers the brand aims to serve
• C) Suppliers
• D) Internal employees
  Answer: B) The specific group of consumers the brand aims to serve

22. Perceptual mapping is used to:

• A) Identify competitors’ pricing strategies
• B) Visualize customer perceptions of brands relative to competitors based on key attributes
• C) Analyze market trends
• D) Focus on employee satisfaction
  Answer: B) Visualize customer perceptions of brands relative to competitors based on key attributes

23. Repositioning a brand involves:

• A) Introducing a new product line
• B) Changing the brand’s identity, positioning, or image to meet changing market conditions or target new audiences
• C) Reducing the marketing budget
• D) Expanding into new markets
  Answer: B) Changing the brand’s identity, positioning, or image to meet changing market conditions or target new audiences

24. Brand essence refers to:

• A) The product’s physical attributes
• B) The fundamental nature or core value of a brand that differentiates it from others
• C) A competitor’s marketing strategy
• D) The geographic reach of the brand
  Answer: B) The fundamental nature or core value of a brand that differentiates it from others

25. Emotional branding aims to:

• A) Focus solely on product features
• B) Create an emotional connection between the brand and consumers
• C) Increase the product price
• D) Reduce marketing efforts
  Answer: B) Create an emotional connection between the brand and consumers

Creating Brand Equity

26. Brand equity refers to:

• A) The number of products sold
• B) The added value a brand name gives to a product beyond the functional benefits it provides
• C) The company’s financial assets
• D) The product’s market share
  Answer: B) The added value a brand name gives to a product beyond the functional benefits it provides

27. A strong brand is characterized by:

• A) Low product differentiation
• B) High customer loyalty, recognition, and trust
• C) A focus on cost reduction
• D) Limited market reach
  Answer: B) High customer loyalty, recognition, and trust

28. Brand awareness refers to:

• A) Consumers’ ability to recognize and recall a brand
• B) A brand’s pricing strategy
• C) Competitors’ promotional activities
• D) The quality of the product
  Answer: A) Consumers’ ability to recognize and recall a brand

29. Brand loyalty is demonstrated when:

• A) Customers consistently prefer one brand over others
• B) A product is priced lower than competitors
• C) Consumers switch brands frequently
• D) The product is used only once
  Answer: A) Customers consistently prefer one brand over others

30. Perceived quality is important for brand equity because:

• A) It reflects the number of product sales
• B) It represents the consumer’s perception of a brand’s overall quality or superiority relative to competitors
• C) It is based on product price
• D) It does not affect customer decisions
  Answer: B) It represents the consumer’s perception of a brand’s overall quality or superiority relative to competitors

31. Brand associations are:

• A) The emotional or mental connections consumers make with a brand
• B) A competitor’s market strategy
• C) Related to the product’s physical attributes
• D) Legal trademarks for the brand
  Answer: A) The emotional or mental connections consumers make with a brand

32. Brand extensions involve:

• A) Expanding the brand’s product line into unrelated categories
• B) Reducing marketing costs
• C) Creating a new brand for every product
• D) Changing the brand name
  Answer: A) Expanding the brand’s product line into unrelated categories

33. Customer-based brand equity (CBBE) is created by:

• A) Reducing product prices
• B) Building a strong brand through customer perceptions, experiences, and relationships with the brand
• C) Focusing solely on product quality
• D) Ignoring customer preferences
  Answer: B) Building a strong brand through customer perceptions, experiences, and relationships with the brand

34. Brand resonance refers to:

• A) How well a brand is known in international markets
• B) The degree to which consumers feel connected to a brand on a deeper, emotional level
• C) Competitor branding strategies
• D) Pricing decisions
  Answer: B) The degree to which consumers feel connected to a brand on a deeper, emotional level

35. Brand value is calculated by:

• A) The number of products sold
• B) The financial worth of a brand based on its strength in the market
• C) The number of customer complaints
• D) Competitor analysis
  Answer: B) The financial worth of a brand based on its strength in the market

36. Brand revitalization occurs when:

• A) A company reduces product lines
• B) A declining brand is re-energized through new marketing strategies, product innovation, or rebranding
• C) A new competitor enters the market
• D) Customers switch brands frequently
  Answer: B) A declining brand is re-energized through new marketing strategies, product innovation, or rebranding

37. Brand architecture refers to:

• A) The visual design of a brand logo
• B) The structure of brands within an organization and how they relate to one another
• C) The location of production facilities
• D) A brand’s pricing strategy
  Answer: B) The structure of brands within an organization and how they relate to one another

38. Co-branding involves:

• A) Two or more brands collaborating to create a joint product or marketing campaign
• B) A brand reducing its product line
• C) Competing brands merging
• D) Using one brand name for multiple products
  Answer: A) Two or more brands collaborating to create a joint product or marketing campaign

39. Brand equity measurement is crucial because:

• A) It reduces marketing expenses
• B) It helps a company understand the value of its brand in the market and guide future brand strategy
• C) It focuses only on product quality
• D) It ignores customer preferences
  Answer: B) It helps a company understand the value of its brand in the market and guide future brand strategy

Addressing Competition and Driving Growth

40. Competitive analysis involves:

• A) Lowering product prices
• B) Evaluating the strengths and weaknesses of competitors in the marketplace
• C) Ignoring market trends
• D) Reducing marketing efforts
  Answer: B) Evaluating the strengths and weaknesses of competitors in the marketplace

41. Sustainable competitive advantage is achieved when:

• A) A company matches competitors’ strategies
• B) A company’s strengths and capabilities are difficult for competitors to imitate
• C) A company focuses only on short-term profits
• D) Customers frequently switch brands
  Answer: B) A company’s strengths and capabilities are difficult for competitors to imitate

42. Differentiation is an effective strategy when:

• A) A product offers unique features that set it apart from competitors
• B) The product is identical to competitors’ offerings
• C) Marketing budgets are reduced
• D) Competitors exit the market
  Answer: A) A product offers unique features that set it apart from competitors

43. Growth strategies include:

• A) Reducing product lines
• B) Expanding into new markets, introducing new products, or increasing sales in existing markets
• C) Decreasing customer engagement
• D) Focusing solely on cost reduction
  Answer: B) Expanding into new markets, introducing new products, or increasing sales in existing markets

44. Market penetration strategy focuses on:

• A) Developing new products for new markets
• B) Increasing sales of existing products in current markets
• C) Expanding into foreign markets only
• D) Reducing product quality
  Answer: B) Increasing sales of existing products in current markets

45. Market development strategy involves:

• A) Entering new geographic markets with existing products
• B) Introducing entirely new products
• C) Focusing only on domestic markets
• D) Lowering product prices
  Answer: A) Entering new geographic markets with existing products

46. Product development in competitive markets refers to:

• A) Developing new products for current markets
• B) Reducing the product range
• C) Ignoring customer preferences
• D) Offering the same products across all markets
  Answer: A) Developing new products for current markets

47. Diversification strategy involves:

• A) Expanding a company’s product offerings into new, unrelated markets
• B) Reducing product variety
• C) Focusing only on price competition
• D) Decreasing investment in marketing
  Answer: A) Expanding a company’s product offerings into new, unrelated markets

48. Cost leadership strategy is focused on:

• A) Offering products at the highest possible price
• B) Offering products at the lowest cost relative to competitors, often through operational efficiency
• C) Ignoring product innovation
• D) Focusing only on premium products
  Answer: B) Offering products at the lowest cost relative to competitors, often through operational efficiency

49. Competitive positioning refers to:

• A) Ignoring competitors’ actions
• B) Establishing a brand’s position in the market relative to competitors based on key attributes such as quality, price, or innovation
• C) Matching competitors’ pricing
• D) Focusing solely on customer loyalty
  Answer: B) Establishing a brand’s position in the market relative to competitors based on key attributes such as quality, price, or innovation

50. Blue Ocean Strategy emphasizes:

• A) Competing in highly saturated markets
• B) Creating new market space, making competition irrelevant
• C) Lowering product prices
• D) Matching competitors’ features
  Answer: B) Creating new market space, making competition irrelevant

51. Red Ocean Strategy is characterized by:

• A) Competing in existing markets with established boundaries and rules
• B) Ignoring competition
• C) Creating new demand in untapped markets
• D) Expanding into new geographic areas
  Answer: A) Competing in existing markets with established boundaries and rules

52. First-mover advantage refers to:

• A) Entering a market after competitors have established themselves
• B) Being the first to introduce a product or service, allowing a company to build market share before competitors
• C) Reducing marketing efforts
• D) Ignoring new market trends
  Answer: B) Being the first to introduce a product or service, allowing a company to build market share before competitors

53. Defensive strategies in competition focus on:

• A) Reducing prices to undercut competitors
• B) Protecting market share by anticipating and responding to competitors’ moves
• C) Ignoring competitors
• D) Developing entirely new product lines
  Answer: B) Protecting market share by anticipating and responding to competitors’ moves

54. Preemptive defense involves:

• A) Waiting for competitors to act first
• B) Attacking before a competitor can make a move, such as launching a product or expanding to a new market
• C) Ignoring market threats
• D) Cutting prices after competitors launch a new product
  Answer: B) Attacking before a competitor can make a move, such as launching a product or expanding to a new market

55. Flanking defense is a strategy used to:

• A) Reduce product variety
• B) Protect against attacks on a company’s weaknesses by reinforcing vulnerable areas
• C) Increase market share by targeting niche markets
• D) Raise product prices
  Answer: B) Protect against attacks on a company’s weaknesses by reinforcing vulnerable areas

56. Contraction defense occurs when:

• A) A company reduces its marketing budget
• B) A company strategically retreats from weaker markets to focus on stronger segments
• C) A company increases prices
• D) A company launches new product lines
  Answer: B) A company strategically retreats from weaker markets to focus on stronger segments

57. Counteroffensive defense is a competitive strategy that involves:

• A) Ignoring competitor attacks
• B) Responding aggressively to a competitor’s move, such as lowering prices or launching a promotional campaign
• C) Cutting back on product offerings
• D) Delaying new product launches
  Answer: B) Responding aggressively to a competitor’s move, such as lowering prices or launching a promotional campaign

58. Growth-share matrix helps businesses to:

• A) Identify employees’ performance
• B) Evaluate different business units or products based on market growth rate and market share
• C) Focus on brand equity measurement
• D) Develop new pricing strategies
  Answer: B) Evaluate different business units or products based on market growth rate and market share

59. Cash cow in the BCG matrix refers to:

• A) A high-growth business unit
• B) A business unit with high market share in a slow-growing industry, generating consistent revenue with little investment
• C) A low-growth, low-market-share business
• D) A newly launched product
  Answer: B) A business unit with high market share in a slow-growing industry, generating consistent revenue with little investment

60. Star in the BCG matrix represents:

• A) A low-market-share business unit
• B) A business unit with high market share in a fast-growing industry
• C) A declining product
• D) A product nearing the end of its lifecycle
  Answer: B) A business unit with high market share in a fast-growing industry

61. Dog in the BCG matrix refers to:

• A) A business unit with high growth potential
• B) A business unit with low market share in a slow-growing industry, often considered for divestment
• C) A high-revenue business unit
• D) A rapidly growing product line
  Answer: B) A business unit with low market share in a slow-growing industry, often considered for divestment

62. Question marks in the BCG matrix are:

• A) Products with low market share in a high-growth market that require significant investment to grow or be divested
• B) High-market-share, high-growth products
• C) Declining products
• D) Niche-market products
  Answer: A) Products with low market share in a high-growth market that require significant investment to grow or be divested

63. Strategic alliances in competitive markets involve:

• A) Competing head-to-head with rivals
• B) Partnering with other companies to gain competitive advantage, such as through joint ventures, co-branding, or shared resources
• C) Reducing marketing budgets
• D) Focusing solely on cost reduction
  Answer: B) Partnering with other companies to gain competitive advantage, such as through joint ventures, co-branding, or shared resources

64. Market challenger strategy involves:

• A) Defending an existing market position
• B) Attacking the market leader through aggressive tactics such as price cutting or product innovation
• C) Ignoring competitor moves
• D) Expanding into unrelated markets
  Answer: B) Attacking the market leader through aggressive tactics such as price cutting or product innovation

65. Market leader strategy focuses on:

• A) Reducing prices to undercut competitors
• B) Maintaining a dominant position by continuously innovating and expanding market share
• C) Ignoring competitor actions
• D) Reducing product features
  Answer: B) Maintaining a dominant position by continuously innovating and expanding market share

66. Follower strategy is used by companies that:

• A) Aim to lead the market
• B) Choose to imitate market leaders rather than engage in direct competition
• C) Focus on market domination
• D) Increase prices rapidly
  Answer: B) Choose to imitate market leaders rather than engage in direct competition

67. Niche marketing is a competitive strategy that involves:

• A) Targeting broad market segments
• B) Focusing on a small, underserved market segment with specific needs
• C) Offering the lowest-priced products
• D) Competing directly with market leaders
  Answer: B) Focusing on a small, underserved market segment with specific needs

68. Value innovation in competition refers to:

• A) Offering premium products at higher prices
• B) Creating a leap in value for both the company and its customers by reducing costs while enhancing product benefits
• C) Focusing only on customer service
• D) Matching competitors’ offerings
  Answer: B) Creating a leap in value for both the company and its customers by reducing costs while enhancing product benefits

69. Market signaling is a strategy where:

• A) A company sends messages or actions to competitors to communicate intentions, such as pricing changes or product launches
• B) A company reduces its market reach
• C) Customers signal their preferences through social media
• D) Competitors ignore market leaders
  Answer: A) A company sends messages or actions to competitors to communicate intentions, such as pricing changes or product launches

70. Ansoff Matrix helps companies:

• A) Increase product prices
• B) Develop growth strategies based on market penetration, market development, product development, and diversification
• C) Focus on reducing costs
• D) Evaluate customer satisfaction
  Answer: B) Develop growth strategies based on market penetration, market development, product development, and diversification

71. SWOT analysis is used to:

• A) Measure financial performance
• B) Identify a company’s strengths, weaknesses, opportunities, and threats in relation to competitors
• C) Analyze competitor pricing
• D) Focus only on product innovation
  Answer: B) Identify a company’s strengths, weaknesses, opportunities, and threats in relation to competitors

72. Core competencies in competition refer to:

• A) A company’s internal cost structure
• B) Unique strengths or capabilities that provide a competitive advantage and are difficult for competitors to imitate
• C) Low-cost production methods
• D) Competitors’ weaknesses
  Answer: B) Unique strengths or capabilities that provide a competitive advantage and are difficult for competitors to imitate

73. Market signaling can be used to:

• A) Show intentions to a competitor, such as announcing price increases or future innovations, to influence their strategy
• B) Hide competitive strategies from the market
• C) Limit growth opportunities
• D) Focus solely on internal product development
  Answer: A) Show intentions to a competitor, such as announcing price increases or future innovations, to influence their strategy

74. Offensive strategies in competitive markets are designed to:

• A) Defend against competitors
• B) Take market share from competitors by launching aggressive actions such as price cuts, product innovation, or marketing campaigns
• C) Reduce investment in marketing
• D) Focus on customer service
  Answer: B) Take market share from competitors by launching aggressive actions such as price cuts, product innovation, or marketing campaigns

75. Reactive strategies are used when:

• A) A company anticipates competitor moves
• B) A company responds to competitors’ actions only after they occur
• C) A company leads the market with innovation
• D) A company ignores competition
  Answer: B) A company responds to competitors’ actions only after they occur

76. Price wars in competition are dangerous because:

• A) They increase long-term profitability
• B) They can lead to reduced profit margins for all competitors and a loss of customer loyalty
• C) They improve product quality
• D) They create customer trust
  Answer: B) They can lead to reduced profit margins for all competitors and a loss of customer loyalty

77.### 77. Strategic alliances help companies by:

• A) Increasing competition between partners
• B) Pooling resources and expertise to achieve common goals and gain competitive advantage
• C) Focusing solely on domestic markets
• D) Reducing market share
  Answer: B) Pooling resources and expertise to achieve common goals and gain competitive advantage

78. Competitor analysis helps companies by:

• A) Ignoring competitor actions
• B) Identifying competitors’ strengths and weaknesses, which can inform strategies to outperform them
• C) Reducing product innovation
• D) Increasing operational costs
  Answer: B) Identifying competitors’ strengths and weaknesses, which can inform strategies to outperform them

79. Customer loyalty programs are designed to:

• A) Increase product prices
• B) Reward repeat customers and increase customer retention by offering benefits or rewards for continued purchases
• C) Decrease market segmentation
• D) Focus solely on new customer acquisition
  Answer: B) Reward repeat customers and increase customer retention by offering benefits or rewards for continued purchases

80. Growth hacking refers to:

• A) Reducing costs
• B) Using creative, low-cost strategies to grow a company’s customer base quickly
• C) Ignoring competitors
• D) Focusing only on large marketing budgets
  Answer: B) Using creative, low-cost strategies to grow a company’s customer base quickly

81. Disruptive innovation occurs when:

• A) A company introduces a high-end product
• B) A new product or technology disrupts the market and displaces established competitors
• C) Competitors agree on pricing
• D) A company focuses on reducing marketing costs
  Answer: B) A new product or technology disrupts the market and displaces established competitors

82. Blue ocean strategy is ideal when:

• A) A market is highly saturated with competitors
• B) A company aims to create a new market space, reducing competition by offering unique products or services
• C) A company wants to follow market leaders
• D) The company focuses on cost-cutting measures
  Answer: B) A company aims to create a new market space, reducing competition by offering unique products or services

83. Innovation leadership means:

• A) Reducing the number of products
• B) Leading the market by consistently introducing new and cutting-edge products or services
• C) Ignoring competitor innovations
• D) Focusing only on low-cost production
  Answer: B) Leading the market by consistently introducing new and cutting-edge products or services

84. Customer-centric strategies in branding focus on:

• A) Reducing marketing budgets
• B) Understanding and meeting the specific needs and preferences of customers to build long-term loyalty
• C) Ignoring customer feedback
• D) Increasing product complexity
  Answer: B) Understanding and meeting the specific needs and preferences of customers to build long-term loyalty

85. Growth through acquisition involves:

• A) Expanding market share by merging with or acquiring competitors
• B) Ignoring market trends
• C) Reducing product lines
• D) Increasing product prices
  Answer: A) Expanding market share by merging with or acquiring competitors

86. Value proposition is critical because:

• A) It reduces marketing budgets
• B) It clearly communicates the unique benefits and value a brand offers to its customers
• C) It increases competitor awareness
• D) It is unrelated to customer decisions
  Answer: B) It clearly communicates the unique benefits and value a brand offers to its customers

87. Competitive pricing involves:

• A) Ignoring competitor prices
• B) Setting prices based on competitor pricing to remain competitive in the market
• C) Raising prices without market analysis
• D) Focusing solely on production costs
  Answer: B) Setting prices based on competitor pricing to remain competitive in the market

88. Market challenger strategies often include:

• A) Imitating market leaders
• B) Attacking market leaders with aggressive tactics such as price cuts or innovative products
• C) Ignoring market trends
• D) Reducing market share
  Answer: B) Attacking market leaders with aggressive tactics such as price cuts or innovative products

89. Defensive strategies are important for:

• A) Protecting market share by responding to competitors’ attacks or innovations
• B) Reducing product innovation
• C) Ignoring competitor actions
• D) Cutting product prices
  Answer: A) Protecting market share by responding to competitors’ attacks or innovations

90. Speed of market entry can provide competitive advantage by:

• A) Allowing competitors to react first
• B) Entering new markets quickly and capturing market share before competitors can respond
• C) Ignoring market demand
• D) Increasing production complexity
  Answer: B) Entering new markets quickly and capturing market share before competitors can respond

91. Product cannibalization occurs when:

• A) A new product reduces the sales of an existing product from the same company
• B) Competitors copy a product
• C) A product fails to gain market share
• D) A company reduces its product line
  Answer: A) A new product reduces the sales of an existing product from the same company

92. Customer insights are essential for:

• A) Reducing marketing costs
• B) Understanding customer preferences and behavior to inform product development and marketing strategies
• C) Ignoring market demand
• D) Cutting product prices
  Answer: B) Understanding customer preferences and behavior to inform product development and marketing strategies

93. Organic growth in a business is achieved by:

• A) Mergers and acquisitions
• B) Expanding the company’s operations, products, or services from within without acquiring other companies
• C) Reducing product lines
• D) Decreasing marketing budgets
  Answer: B) Expanding the company’s operations, products, or services from within without acquiring other companies

94. First-mover advantage in competitive markets refers to:

• A) Being the first to enter a market, gaining market share and brand recognition before competitors
• B) Waiting for competitors to launch products
• C) Reducing product lines
• D) Cutting marketing budgets
  Answer: A) Being the first to enter a market, gaining market share and brand recognition before competitors

95. Customer acquisition cost (CAC) is calculated by:

• A) Reducing product quality
• B) Measuring the total marketing and sales expenses required to acquire a new customer
• C) Focusing only on product pricing
• D) Ignoring customer behavior
  Answer: B) Measuring the total marketing and sales expenses required to acquire a new customer

96. Brand differentiation is necessary because:

• A) It allows a brand to stand out from competitors by offering unique value to customers
• B) It reduces marketing budgets
• C) It increases customer acquisition cost
• D) It limits product innovation
  Answer: A) It allows a brand to stand out from competitors by offering unique value to customers

97. Competitive benchmarking involves:

• A) Ignoring competitor actions
• B) Comparing a company’s performance, products, or processes against competitors or industry leaders to identify areas for improvement
• C) Reducing product variety
• D) Increasing product prices
  Answer: B) Comparing a company’s performance, products, or processes against competitors or industry leaders to identify areas for improvement

98. Brand value proposition helps a company by:

• A) Increasing production costs
• B) Communicating to customers why a brand is different and why it is better than competitors
• C) Limiting product availability
• D) Ignoring customer feedback
  Answer: B) Communicating to customers why a brand is different and why it is better than competitors

99. Customer segmentation helps businesses by:

• A) Ignoring customer preferences
• B) Dividing customers into groups based on shared characteristics to target marketing efforts more effectively
• C) Increasing product prices
• D) Reducing product features
  Answer: B) Dividing customers into groups based on shared characteristics to target marketing efforts more effectively

100. Brand recall is achieved when:

• A) Consumers can recognize and remember a brand without being prompted
• B) Consumers switch brands frequently
• C) Product prices are reduced
• D) Competitors dominate the market
  Answer: A) Consumers can recognize and remember a brand without being prompted