Most management theorists have long told marketers that the marketing environment is both uncontrollable and inescapable, and that therefore the...
GMAT Reading Comprehension : (RC) Questions
Source: Mock
...
...
Post a Query
Most management theorists have long told marketers that the marketing environment is both uncontrollable and inescapable, and that therefore the marketer's critical skill is adapting to that environment. These believers in environmental determinism argue that environmental forces such as government regulation, consumers' changing tastes, and foreign competition are essentially unmanageable. But believers in strategic choice presume that decision makers can affect the environment, for instance by lobbying politicians, running public relations campaigns, and employing other techniques to shape the environment to their advantage.
Advocates of strategic choice point out that many conventional marketing tools have built-in deterministic biases. One such tool, the product life cycle (PLC) concept, occupies a prominent place in marketing theory. It holds that industries, product categories, and individual brands pass through four distinct stages: introduction, growth, maturity, and decline. Proponents prescribe specific strategies for marketing a product at each stage. The PLC concept is an "if-then" strategic tool: if one can identify the stage, then one knows which strategy to use.
There is no doubt that PLC prescriptions are appropriate under certain conditions; for example, a company famous for instant-camera technology decided to enter the conventional film market in light of a steady consumer shift away from instant cameras and film, demonstrating the reasonableness of PLC orthodoxy in light of unmanageable environmental forces. But the PLC approach can often result in missed opportunities. PLC wisdom suggests that sales, profit margins, competitive intensity, and appropriate business strategy are all determined by life cycle stages, thus constraining managerial action within narrow limits.
According to strategic choice advocates, however, the marketing environment is subject to human manipulation, and therefore business decisions need not be chained to the PLC "if-then" doctrine. For example, a major cereal company nurtured the adult breakfast cereal market despite warnings that cereal sales would level off as the "baby boomer" generation reached adulthood. Ignoring PLC wisdom, company executives decided to encourage the growth of the supposedly no-growth cereal industry by attempting to influence consumer tastes through targeted advertising. As a result, the ready-to-eat cereal market grew considerably within just five years, and the 25- to 49-year-old segment of the market increased by 26 percent.
Ques. 1/4
Which of the following is mentioned in the passage as an advantage of the PLC marketing concept?
Solution
1. Passage Analysis:
Progressive Passage Analysis
| Text from Passage | Analysis |
|---|---|
| Most management theorists have long told marketers that the marketing environment is both uncontrollable and inescapable, and that therefore the marketer's critical skill is adapting to that environment. | What it says: Traditional experts believe marketers can't control their business environment, so they must just adapt to whatever happens. What it does: Introduces the traditional viewpoint that will be challenged Source/Type: Author's summary of existing theory Connection to Previous Sentences: This is our opening sentence - establishes the conventional wisdom Visualization: Traditional View: Environment → Controls → Marketer (one-way arrow) Marketer's job = React and adapt Reading Strategy Insight: Classic setup sentence - presenting the "old way" that will likely be questioned. Watch for contrasting viewpoints. |
| These believers in environmental determinism argue that environmental forces such as government regulation, consumers' changing tastes, and foreign competition are essentially unmanageable. | What it says: The traditional theorists think forces like government rules, customer preferences, and competitors from other countries cannot be managed. What it does: Provides specific examples of what "uncontrollable environment" means Source/Type: Author explaining the determinists' position with concrete examples Connection to Previous Sentences: - Sentence 1 told us: Environment is uncontrollable - NOW Sentence 2: Gives us specific examples of what "uncontrollable" means - This is NOT new complexity! The author is helping us understand the first idea better. Visualization: Unmanageable Forces: • Government regulation (laws, rules) • Consumer taste changes (what people want) • Foreign competition (competitors from abroad) Reading Strategy Insight: Feel relieved here - this is clarification, not new complexity. The author is making the abstract idea concrete with examples. |
| But believers in strategic choice presume that decision makers can affect the environment, for instance by lobbying politicians, running public relations campaigns, and employing other techniques to shape the environment to their advantage. | What it says: A different group thinks business leaders CAN influence their environment through actions like lobbying, PR campaigns, and other methods. What it does: Introduces the opposing viewpoint with supporting examples Source/Type: Author presenting the alternative theory Connection to Previous Sentences: - Sentences 1-2 told us: Environment controls marketers - NOW Sentence 3: Presents the opposite view - marketers can control environment - Key word "But" signals the contrast Visualization: Strategic Choice View: Marketer ↔ Environment (two-way arrows) Tools to influence environment: • Lobbying politicians • PR campaigns • Other shaping techniques What We Know So Far: Two opposing theories about marketer control What We Don't Know Yet: Which view the author supports, how this plays out in practice Reading Strategy Insight: Classic "but" transition introducing the counter-argument. The structure mirrors sentence 2 - theory plus concrete examples. |
| Advocates of strategic choice point out that many conventional marketing tools have built-in deterministic biases. | What it says: The strategic choice supporters claim that standard marketing methods are biased toward the "can't control environment" thinking. What it does: Transitions from general theory to specific critique of marketing tools Source/Type: Strategic choice advocates' criticism Connection to Previous Sentences: - Sentence 3 told us: Strategic choice believers think marketers can influence environment - NOW Sentence 4: They criticize traditional marketing tools for assuming the opposite - This builds on the strategic choice argument by identifying a specific problem Visualization: Traditional Marketing Tools → Built with assumption that environment can't be controlled Strategic choice advocates say: "These tools are biased!" Reading Strategy Insight: The passage is drilling deeper into one side of the debate. We're moving from theory to specific applications. |
| One such tool, the product life cycle (PLC) concept, occupies a prominent place in marketing theory. | What it says: The Product Life Cycle (PLC) concept is an important and widely-used example of these biased tools. What it does: Introduces the main example that will illustrate the argument Source/Type: Author's factual statement about PLC's importance Connection to Previous Sentences: - Sentence 4 told us: Conventional tools have deterministic biases - NOW Sentence 5: Introduces PLC as a specific example of such a tool - "One such tool" explicitly connects to previous sentence Visualization: Conventional Marketing Tools with Deterministic Bias: • Product Life Cycle (PLC) ← Main example we'll examine • [Other tools mentioned but not detailed] Reading Strategy Insight: Clear transition to a detailed example. The phrase "One such tool" signals we're getting concrete illustration of the abstract concept. |
| It holds that industries, product categories, and individual brands pass through four distinct stages: introduction, growth, maturity, and decline. | What it says: PLC theory says that industries, product types, and brands all go through four phases: introduction, growth, maturity, and decline. What it does: Explains what the PLC concept actually is Source/Type: Author's factual description of the PLC theory Connection to Previous Sentences: - Sentence 5 told us: PLC is an important biased tool - NOW Sentence 6: Explains what PLC actually means - This is definition/clarification, not new complexity Visualization: PLC Four Stages (applies to industries, product categories, brands): 1. Introduction → 2. Growth → 3. Maturity → 4. Decline Reading Strategy Insight: This is helpful explanation, not intimidating complexity. The author is teaching us what we need to know to understand the argument. |
| Proponents prescribe specific strategies for marketing a product at each stage. | What it says: PLC supporters recommend particular marketing strategies depending on which of the four stages a product is in. What it does: Explains how the PLC concept is used in practice Source/Type: Author describing PLC application Connection to Previous Sentences: - Sentence 6 told us: PLC has four stages - NOW Sentence 7: Explains that each stage comes with recommended strategies - This completes the basic explanation of how PLC works Visualization: How PLC Works in Practice: Introduction stage → Use Strategy A Growth stage → Use Strategy B Maturity stage → Use Strategy C Decline stage → Use Strategy D Reading Strategy Insight: Still in explanation mode - the author is building our understanding of PLC before critiquing it. |
| The PLC concept is an "if-then" strategic tool: if one can identify the stage, then one knows which strategy to use. | What it says: PLC works like a simple formula: figure out what stage you're in, then you automatically know what strategy to follow. What it does: Simplifies and summarizes how PLC works Source/Type: Author's characterization of PLC logic Connection to Previous Sentences: - Sentences 6-7 explained: PLC has stages and each has strategies - NOW Sentence 8: Gives us the simple takeaway - it's an "if-then" formula - This is NOT new information! The author is helping us by summarizing the complex explanation in simple terms. Visualization: PLC as Simple Formula: IF Stage = Introduction, THEN use Introduction strategies IF Stage = Growth, THEN use Growth strategies IF Stage = Maturity, THEN use Maturity strategies IF Stage = Decline, THEN use Decline strategies Reading Strategy Insight: Major simplification moment! The "if-then" characterization makes PLC easy to understand and remember. |
| There is no doubt that PLC prescriptions are appropriate under certain conditions; for example, a company famous for instant-camera technology decided to enter the conventional film market in light of a steady consumer shift away from instant cameras and film, demonstrating the reasonableness of PLC orthodoxy in light of unmanageable environmental forces. | What it says: PLC advice does work sometimes; for instance, an instant camera company switched to regular film because consumers were moving away from instant cameras, which shows PLC makes sense when you can't control market forces. What it does: Provides a specific example where PLC approach was correct Source/Type: Author acknowledging PLC's validity with real-world example Connection to Previous Sentences: - Sentences 5-8 explained what PLC is and how it works - NOW Sentence 9: Shows PLC can be right sometimes with a concrete example - This continues building our understanding before the main critique Visualization: PLC Success Example: Consumer behavior: Moving away from instant cameras ↓ Company response: Enter conventional film market ✓ Result: Followed environmental forces (deterministic approach worked) Reading Strategy Insight: The author is being fair by showing when the traditional approach works before criticizing it. Note the connection to "unmanageable environmental forces" from the opening. |
| But the PLC approach can often result in missed opportunities. | What it says: However, using PLC frequently causes companies to miss good business opportunities. What it does: Introduces the main criticism of PLC Source/Type: Author's critical assessment Connection to Previous Sentences: - Sentence 9 told us: PLC sometimes works - NOW Sentence 10: "But" signals the problem with PLC - This transitions from acknowledging PLC's validity to critiquing it Visualization: PLC Approach → Missed Opportunities (Companies follow rigid "if-then" rules and miss chances) What We Know So Far: PLC is an "if-then" tool that sometimes works but often causes problems What We Don't Know Yet: Specific example of missed opportunity, how strategic choice would be different Reading Strategy Insight: Classic pivot with "But" - now we get the critique after understanding what PLC is. |
| PLC wisdom suggests that sales, profit margins, competitive intensity, and appropriate business strategy are all determined by life cycle stages, thus constraining managerial action within narrow limits. | What it says: PLC thinking claims that sales, profits, competition levels, and business strategy are all controlled by what stage you're in, which severely limits what managers can do. What it does: Explains specifically why PLC is problematic - it's too constraining Source/Type: Author's analysis of PLC's limiting effects Connection to Previous Sentences: - Sentence 10 told us: PLC causes missed opportunities - NOW Sentence 11: Explains WHY - because it constrains manager actions - This elaborates on the "missed opportunities" problem Visualization: PLC Constraints: Life Cycle Stage → Determines everything: • Sales levels • Profit margins • Competitive intensity • Business strategy Result: Managers have very narrow range of actions Reading Strategy Insight: This connects back to the opening "environmental determinism" - PLC represents the idea that environment controls the marketer. |
| According to strategic choice advocates, however, the marketing environment is subject to human manipulation, and therefore business decisions need not be chained to the PLC "if-then" doctrine. | What it says: Strategic choice supporters argue that people can manipulate the marketing environment, so business decisions don't have to be locked into PLC's rigid "if-then" rules. What it does: Restates the strategic choice position as an alternative to PLC constraints Source/Type: Author presenting strategic choice advocates' counter-argument Connection to Previous Sentences: - Sentence 11 described: PLC constraints on managers - NOW Sentence 12: Strategic choice offers freedom from those constraints - "However" signals the contrast; this restates the strategic choice position from earlier Visualization: Strategic Choice Alternative: Environment ↔ Human manipulation possible Business decisions ≠ Chained to "if-then" rules Managers have MORE freedom to act Reading Strategy Insight: This brings us back to the main argument from sentence 3 - the passage is reinforcing its central theme, not adding complexity. |
| For example, a major cereal company nurtured the adult breakfast cereal market despite warnings that cereal sales would level off as the "baby boomer" generation reached adulthood. | What it says: A big cereal company developed the adult cereal market even though experts warned that cereal sales would flatten when baby boomers became adults. What it does: Begins a specific example showing strategic choice in action Source/Type: Author providing real-world example Connection to Previous Sentences: - Sentence 12 told us: Strategic choice allows escape from rigid PLC rules - NOW Sentence 13: Starts concrete example of company ignoring conventional wisdom - "For example" explicitly signals this illustrates the strategic choice approach Visualization: Conventional Wisdom: Baby boomers aging → Cereal sales will level off ↓ Cereal Company Response: Ignored warning, developed adult market anyway Reading Strategy Insight: We're getting the strategic choice equivalent of the instant camera example - showing the alternative approach in practice. |
| Ignoring PLC wisdom, company executives decided to encourage the growth of the supposedly no-growth cereal industry by attempting to influence consumer tastes through targeted advertising. | What it says: The cereal company executives deliberately ignored PLC advice and tried to grow what was supposedly a no-growth industry by using targeted ads to change what consumers wanted. What it does: Shows specifically how the company applied strategic choice thinking Source/Type: Author describing the company's strategic choice actions Connection to Previous Sentences: - Sentence 13 told us: Company ignored warnings about market leveling off - NOW Sentence 14: Explains their specific strategy to influence the environment - "Ignoring PLC wisdom" explicitly contrasts with the deterministic approach Visualization: Strategic Choice in Action: PLC wisdom said: "No-growth industry, accept it" Company decided: "We'll MAKE it grow through targeted advertising" Method: Influence consumer tastes (change the environment) Reading Strategy Insight: Perfect contrast to the instant camera example - instead of adapting to environmental forces, this company tried to shape them. |
| As a result, the ready-to-eat cereal market grew considerably within just five years, and the 25- to 49-year-old segment of the market increased by 26 percent. | What it says: Because of their strategy, the cereal market grew significantly in five years, with the 25-49 age group growing by 26%. What it does: Provides the successful outcome of the strategic choice approach Source/Type: Author reporting factual results Connection to Previous Sentences: - Sentences 13-14 described: Company's strategic choice approach - NOW Sentence 15: Shows it worked with specific data - "As a result" directly links the strategy to positive outcomes Visualization: Strategic Choice Results: Time frame: Just 5 years Overall market: Grew considerably Target segment (25-49 years): +26% growth Conclusion: Environment WAS controllable What We Know So Far: Two competing approaches with contrasting real-world examples What We Don't Know Yet: Nothing major - the argument is complete Reading Strategy Insight: This completes the argument perfectly - we have theory, competing approaches, and contrasting examples showing strategic choice can work better than environmental determinism. |
2. Passage Summary:
Author's Purpose:
To show why the traditional "adapt to your environment" approach in marketing is often wrong and why the "strategic choice" approach that lets marketers actively shape their environment can be more effective.
Summary of Passage Structure:
The author builds their argument by contrasting two competing theories with real-world examples:
- First, the author presents the traditional view that marketers must simply adapt to uncontrollable environmental forces like government regulations and changing consumer tastes.
- Next, they introduce the opposing "strategic choice" view that marketers can actually influence and shape their environment through lobbying, PR campaigns, and other techniques.
- Then, they use the Product Life Cycle concept as a detailed example of how traditional marketing tools force managers into rigid "if-then" thinking that limits their options, showing both when it works and when it causes missed opportunities.
- Finally, they provide a contrasting example of a cereal company that ignored conventional wisdom and successfully grew a "no-growth" market by influencing consumer tastes through targeted advertising.
Main Point:
Marketing environments can often be shaped and influenced by smart business decisions rather than simply adapted to, and companies that recognize this can create growth opportunities that traditional approaches would miss.
3. Question Analysis:
This question asks us to identify what the passage mentions as an advantage of the Product Life Cycle (PLC) marketing concept. We need to find something the passage explicitly presents as a positive aspect or benefit of using PLC.
Connecting to Our Passage Analysis:
From our passage analysis, we know that:
- The passage discusses PLC as an example of a tool with "built-in deterministic biases" that strategic choice advocates criticize
- The author acknowledges that "There is no doubt that PLC prescriptions are appropriate under certain conditions" and provides the instant camera company example
- The passage then critiques PLC for causing "missed opportunities" and "constraining managerial action within narrow limits"
- The overall structure shows the author is more sympathetic to strategic choice than PLC, but does give PLC fair treatment
Prethinking:
The passage takes a balanced approach - it criticizes PLC overall but acknowledges it has some validity. The key sentence is: "There is no doubt that PLC prescriptions are appropriate under certain conditions." This suggests the passage does mention at least one advantage: that PLC provides useful guidance in some situations. We should look for an answer choice that captures this qualified endorsement rather than something that overstates PLC's benefits or misrepresents what the passage actually says about its advantages.
Answer Choices Explained
A
It encourages decision makers to nurture seemingly no-growth markets.
Why It's Wrong:
• The passage shows PLC discourages nurturing no-growth markets - PLC "wisdom suggests that sales, profit margins, competitive intensity, and appropriate business strategy are all determined by life cycle stages"
• The cereal company example specifically shows a company succeeding by ignoring PLC wisdom and nurturing a "supposedly no-growth cereal industry"
• This choice describes the opposite of what PLC does
• The passage shows PLC discourages nurturing no-growth markets - PLC "wisdom suggests that sales, profit margins, competitive intensity, and appropriate business strategy are all determined by life cycle stages"
• The cereal company example specifically shows a company succeeding by ignoring PLC wisdom and nurturing a "supposedly no-growth cereal industry"
• This choice describes the opposite of what PLC does
Common Student Mistakes:
- Did I confuse PLC with strategic choice?
→ Remember that nurturing no-growth markets is what the strategic choice approach advocates, not PLC - Am I mixing up the two examples in the passage?
→ The cereal company ignored PLC wisdom; the instant camera company followed it
B
It breaks the product life cycle into four distinct stages.
Why It's Wrong:
• Breaking something into stages is a feature or characteristic of PLC, not necessarily an advantage
• The passage presents the four stages as a factual description of what PLC "holds," not as a benefit
• An advantage should be something positive that helps users, not just a structural element
• Breaking something into stages is a feature or characteristic of PLC, not necessarily an advantage
• The passage presents the four stages as a factual description of what PLC "holds," not as a benefit
• An advantage should be something positive that helps users, not just a structural element
Common Student Mistakes:
- Isn't having a clear structure always good?
→ The question asks what the passage mentions as an advantage, and the passage doesn't present the four-stage structure as beneficial - Don't organizational frameworks count as advantages?
→ Only if the passage explicitly or implicitly presents them as beneficial, which it doesn't here
C
It generates new marketing strategies by using an "if-then" approach.
Why It's Wrong:
• The passage describes the "if-then" approach as a characteristic of PLC, not as something that generates new strategies
• The "if-then" approach actually limits strategy options: "if one can identify the stage, then one knows which strategy to use"
• The passage suggests this approach constrains rather than creates new marketing strategies
• The passage describes the "if-then" approach as a characteristic of PLC, not as something that generates new strategies
• The "if-then" approach actually limits strategy options: "if one can identify the stage, then one knows which strategy to use"
• The passage suggests this approach constrains rather than creates new marketing strategies
Common Student Mistakes:
- Doesn't "if-then" thinking help create strategies?
→ The passage shows it selects from predetermined strategies rather than generating new ones - Isn't having a systematic approach for strategy selection an advantage?
→ The passage presents the "if-then" approach more as a limitation than a benefit
D
It exploits the fact that marketing opportunities are constrained by controllable forces.
Why It's Wrong:
• PLC assumes marketing opportunities are constrained by uncontrollable forces, not controllable ones
• This choice contradicts the passage's description of PLC as representing "environmental determinism"
• The passage shows strategic choice advocates arguing that opportunities should be expanded through controllable actions
• PLC assumes marketing opportunities are constrained by uncontrollable forces, not controllable ones
• This choice contradicts the passage's description of PLC as representing "environmental determinism"
• The passage shows strategic choice advocates arguing that opportunities should be expanded through controllable actions
Common Student Mistakes:
- Doesn't PLC help exploit opportunities by providing clear guidelines?
→ The passage argues PLC actually limits opportunities by assuming environmental forces are uncontrollable - Am I confusing the two competing approaches again?
→ Remember: PLC = environmental determinism (uncontrollable), Strategic choice = controllable environment
E
It provides guidelines that are beneficial in some situations.
Why It's Right:
• The passage explicitly states: "There is no doubt that PLC prescriptions are appropriate under certain conditions"
• This directly indicates that PLC provides beneficial guidelines in some situations
• The instant camera company example demonstrates when following PLC guidance was "reasonable"
• The passage maintains this balanced view even while ultimately favoring strategic choice
• The passage explicitly states: "There is no doubt that PLC prescriptions are appropriate under certain conditions"
• This directly indicates that PLC provides beneficial guidelines in some situations
• The instant camera company example demonstrates when following PLC guidance was "reasonable"
• The passage maintains this balanced view even while ultimately favoring strategic choice
Key Evidence: "There is no doubt that PLC prescriptions are appropriate under certain conditions; for example, a company famous for instant-camera technology decided to enter the conventional film market in light of a steady consumer shift away from instant cameras and film, demonstrating the reasonableness of PLC orthodoxy in light of unmanageable environmental forces."
Rate this Solution
Tell us what you think about this solution
Forum Discussions
Start a new discussion
Post
Load More