Answer Key

Version A

1) D
A relative market share of 10 × (at the left end of the scale) means that the SBU has 10 times the
share of its largest competitor, whereas a share of 0.1 × (at the right end of the scale) means it
has only 10 percent of the share of its largest competitor.

2) B
The General Electric small appliances product line holds a large share of a slow-growth industry,
the definition of a cash cow.

3) A
The BCG growth-share matrix is based upon market growth rate and market share. The hybrid
car market is a high growth market. The Honda Civic hybrid has high market share of this
market. The vehicle will require large injections of cash from other products in the Honda line to
maintain or increase market share. As a result, the Honda Civic hybrid is a star. The Honda
Accord is well-established in a slower-growth market and controls a significant percentage of
market share. Thus, the Accord is a cash cow for Honda and the revenues generated from these
cars will be used to finance the marketing of the hybrid Civic, the star.

4) D
Market development is a marketing strategy to sell current products to new markets.

5) A
Taco Bell offering a new product, the quesalupa, to the existing U.S. market of Mexican-style
fast food diners is a product development strategy.

VERSION B

1) C
The threat is not from inside Best Buy, it is from the external environment.

What is the difference between a consumer and a customer. Explain the difference with the
help of an example.

The customer is the one who is purchasing the goods. The consumer is the one who is the end
user of any goods or services (2 points). For example, if your parents buy something for you they
are the customers and you will be consuming it so you will be the consumer (2 points).

1
What is selective brand activism? Explain it with the example.

It is defined as the proclivity exhibited by a brand to lend its support exclusively to a particular
social issue while concurrently disregarding or downplaying other similar incidents, intentionally
or unintentionally (2 points). For example, if NIKE is supporting hijab as women’s choice in Iran
but remain quiet when such rights are violated in France and Germany.

We discussed four points in the class as the requirement for Marketing to occur. With the
help of an example, describe those four requirements.

Please see slide 11 from Chapter 1. 1 Point for each requirement.

For SWOT analysis, Strengths and weaknesses will be internal to Gloria Jeans and and
Opportunities and Threats will be external. Opportunities and Threats might relate to their
competitors, or if any economic factors have impacted the coffee industry in COVID situation
such as supply chain disruption etc.

Few of the opportunities might be:

 In Pakistani context, consumer’s taste is being consumers are developing coffee taste.
There is a trend to move from desi tea to coffee consumption.
 The concept of drive-thru for coffee lovers is missing.
 Coffee houses to be positioned as working zone for students.