AMA Marketing Strategy 3 — Questions and Answers
Question 1: In the product adoption curve, which group adopts an innovation just before the early majority?
- Innovators
- Laggards
- Early adopters (Correct answer)
- Late majority
Correct answer: Early adopters
Early adopters follow innovators and are opinion leaders who influence the early majority; crossing from early adopters to early majority is called 'crossing the chasm.'
Question 2: Which analytical tool plots a company's offerings based on market growth rate and relative market share?
- PEST analysis
- BCG growth-share matrix (Correct answer)
- Ansoff matrix
- Perceptual map
Correct answer: BCG growth-share matrix
The BCG matrix categorizes business units or products into Stars, Cash Cows, Question Marks, and Dogs based on growth rate and relative market share.
Question 3: A marketer segments customers based on purchase frequency and spending level. This is an example of:
- Psychographic segmentation
- Demographic segmentation
- Behavioral segmentation (Correct answer)
- Geographic segmentation
Correct answer: Behavioral segmentation
Behavioral segmentation divides customers based on usage patterns, purchase frequency, loyalty status, and spending behavior.
Question 4: The concept of 'positioning' in marketing strategy refers to:
- The physical location of retail stores
- How a brand is perceived relative to competitors in customers' minds (Correct answer)
- The order in which products are introduced to market
- The process of setting a product's retail price
Correct answer: How a brand is perceived relative to competitors in customers' minds
Positioning defines the distinct place a brand occupies in the target customer's mind relative to competing alternatives.
Question 5: Which growth strategy involves selling existing products to new market segments?
- Market penetration
- Market development (Correct answer)
- Product development
- Diversification
Correct answer: Market development
Market development (Ansoff matrix) targets new segments or geographies with existing products, expanding the customer base without changing the offering.
Question 6: A brand that consistently delivers on its promises across all touchpoints is building:
- Brand equity (Correct answer)
- Brand parity
- Brand dilution
- Brand cannibalization
Correct answer: Brand equity
Brand equity is the added value a brand name gives a product, built over time through consistent, positive customer experiences and associations.
Question 7: When a company charges different prices to different customer segments for the same product, this strategy is called:
- Bundle pricing
- Price discrimination (Correct answer)
- Odd-even pricing
- Captive pricing
Correct answer: Price discrimination
Price discrimination charges different prices to different segments based on their willingness to pay, maximizing revenue across segments.
AMA Marketing Strategy 3
In the product adoption curve, which group adopts an innovation just before the early majority?