Marketing Exam 1-chapter 2 Questions

1) ________ is the task of developing and maintaining an overall company strategy for long-run survival and growth. A) Strategic planning B) Annual market planning C) Short-term planning D) Long-range planning E) Advertising

2) ________ involves adapting a firm to take advantage of opportunities in its constantly changing environment. A) Long-range planning B) Short-range planning C) Annual planning D) Strategic planning E) Environmental scanning

3) Starbucks has an annual plan in place to deal with the company's current SBUs and their operations. However, as a growth-oriented firm, Starbucks is interested in both domestic and international markets. This requires Starbucks to constantly monitor the environment and adapt to the opportunities with which it is presented. To take advantage of its changing marketing opportunities, it is most important for Starbucks to have which of the following in place? A) value-delivery network B) mission statement C) supporting objectives D) profit analysis E) strategic plan

4) The first step in strategic planning is to ________. A) set objectives and goals B) develop the business portfolio C) define the company mission D) plan marketing strategies E) identify a problem

5) Which of the following is NOT a step in the strategic planning process? A) defining the company mission B) setting company objectives and goals C) designing the business portfolio D) planning marketing and other functional strategies E) identifying the company's culture

6) Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be? A) objectives and goals B) mission statement C) business portfolio D) marketing and functional strategies E) operational strategies

7) A vendor for Ford Motor Company received the following message from one of Ford's marketing managers: "As we move forward during the 21st century, it is incumbent upon us to inform you that Ford is committed to building profitable customer relationships by creating environmentally better cars and getting them to market faster at lower costs." The marketing manager is most likely referring to Ford's ________. A) vision statement B) market tactics C) business portfolio D) mission statement E) business objectives

8) ________ should be market oriented and defined in terms of ________. A) Strategic plans; company needs B) Annual plans; product needs C) Long-range plans; company needs D) Mission statements; customer needs E) Objectives; customer needs

9) A ________ defines a business in terms of satisfying basic customer needs. A) market-oriented mission statement B) product-oriented mission statement C) technology-oriented mission statement D) environment-oriented mission statement E) strategic plan

10) When the makers of a ballpoint pen state they are in the communication equipment business, they are defining their mission too ________. A) narrowly B) realistically C) specifically D) broadly E) early

11) All of the following are accurate guidelines for a company's mission statement EXCEPT which one? A) A mission statement should be realistic. B) A mission statement should focus on sales or profits. C) A mission statement should fit the market environment. D) A mission statement should be specific. E) A mission statement should motivate employees.

12) Which of the following is NOT a market-oriented business definition? A) "to provide a global trading platform where practically anyone can trade practically anything" B) "to sell tools and home repair and improvement items" C) "to deliver low prices every day" D) "to be the guardian of our customers' financial dreams" E) "to bring inspiration and innovation to every athlete in the world"

13) Which of the following is NOT an example of a market-oriented mission statement? A) "We make the Internet buying experience fast, easy, and enjoyable." B) "We create customer connectivity anytime, anywhere." C) "We create fantasies." D) "We hold online auctions." E) "We empower customers to achieve the homes of our dreams."

14) All of the following are examples of product-oriented mission statements, EXCEPT which one? A) "At America Online, we provide online services." B) "At Disney, we run theme parks." C) "At Nike, we sell shoes." D) "At Revlon, we sell lifestyle and self-expression; success and status; memories, hopes, and dreams." E) "At Ritz-Carlton Hotels, we rent rooms."

15) Revlon has clearly defined its "mission" of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to be turned into detailed ________ that guide each level of the company. A) sets of strategies B) sets of tactics C) sets of product mixes D) supporting objectives E) sets of promotional tools

16) Paul Pierce is busy working with other managers evaluating the products and businesses making up their company. Paul is engaged in ________. A) defining the company's mission statement B) preparing a business portfolio C) portfolio analysis D) marketing planning E) marketing control

17) The collection of businesses and products that make up a company is called its ________. A) strategic business unit B) mission statement C) strategic plan D) business portfolio E) operational factors

18) Business portfolio planning involves two steps: ________ and ________. A) identifying SBUs; assessing the attractiveness of SBUs B) analyzing the current business portfolio; shaping the future business portfolio C) identifying internal strengths; identifying external opportunities D) conducting a SWOT analysis; establishing marketing controls E) identifying growth opportunities; evaluating growth opportunities

19) ________ can be a company division, a product line within a division, or sometimes a single product or brand. A) A market B) The BCG C) An SBU D) A PLC E) A value delivery network

20) After management has identified the key businesses making up its company, what is the next step? A) identify businesses in which to invest B) assess the attractiveness of its SBUs C) decide whether to harvest any businesses D) complete short-range planning E) SBU identification

21) The best known product portfolio planning method was developed by ________. A) Philip Kotler B) Harvard University C) the SRI Consulting Firm D) the Boston Consulting Group E) James P. Hess

22) Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________. A) market share; strength of the SBU's position B) market or industry growth rate; market or industry attractiveness C) market or industry attractiveness; strength of the SBU's position D) market growth rate; profits E) market penetration; market development

23) In the Boston Consulting Group approach, ________ provide(s) a measure of market attractiveness. A) relative market share B) SBUs C) cash cows D) market growth rate E) dogs

24) In the Boston Consulting Group approach, ________ serve(s) as a measure of company strength in the market. A) relative market share B) SBUs C) cash cows D) market growth rate E) market segmentation

25) The BCG growth-share matrix classifies four types of SBUs. They are ________, ________, ________, and ________. A) product; price; promotion; placement B) sales; market share; price; promotion C) stars; cash cows; question marks; dogs D) planning; organizing; leading; controlling E) market penetration; market development; product development; diversification

26) In the BCG approach, ________ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into ________. A) cash cows; stars B) question marks; dogs C) stars; question marks D) stars; cash cows E) dogs; cash cows

27) ________ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment. A) Stars B) Cash cows C) Question marks D) Dogs E) Cats

28) When dealing with a ________, managers must decide whether to invest in it in an attempt to build it into a star or cash cow or whether to phase it out. A) star B) dog C) question mark D) cash cow E) cat

29) In the BCG matrix, income from ________ can be used to help finance the company's question marks and stars. A) dogs B) SBUs C) cash cows D) sales revenue E) overseas operations

30) The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________. A) harvesting; divesting B) promoting; selling C) downsizing; expanding D) diversifying; penetrating E) developing; growing

31) Which of the following does NOT accurately reflect a problem with the BCG matrix approach? A) It focuses on future planning. B) It can be costly to conduct. C) It can be time consuming to implement. D) It is difficult to define SBUs and measure market share and growth. E) It focuses on classifying current businesses.

32) Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is more ________. A) short-term oriented B) decentralized C) limitation-free D) product-oriented E) centralized

33) Which department in a company carries the primary responsibility for achieving profitable growth? A) marketing B) finance C) operations D) human resources E) management

34) Which of the following is a useful tool for identifying growth opportunities? A) the BCG matrix B) the business portfolio C) the product/market expansion grid D) the value chain E) the value delivery network

35) Mountain Home Farms is now using the product/market expansion grid to develop strategies. The owners of the company have most likely found the grid to be quite useful for identifying ________. A) target markets B) growth opportunities C) key customers D) new products E) suppliers

36) Making more sales without changing a firm's products is ________. A) market development B) market growth C) market penetration D) product development E) market attractiveness

37) Disney is identifying and developing new markets for its theme parks. Disney is exploring possibilities for ________. A) market penetration B) market development C) downsizing D) diversification E) product development

38) If Under Armour, the successful maker of moisture-wicking shirts and shorts, considered introducing a line of Under Armour fitness equipment, the company would be considering ________. A) marketing controls B) market development C) diversification D) market penetration E) product adaptation

39) ________ entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy. A) Market segmentation B) BCG C) Product line extension D) Downsizing E) Market redesign

40) Which of the following is NOT a reason that a firm might want to abandon products or markets? A) The market environment has changed, making a product less profitable. B) The firm has entered areas in which it does not have expertise. C) The economic climate is showing signs of recovery. D) The firm has grown too fast. E) The firm has not properly researched foreign markets which it has entered.

41) The marketing concept is best thought of as which of the following? A) a guiding philosophy for the company's marketing strategy B) a specific approach to building relationships with customers, vendors, and suppliers C) the overall purpose of the company D) the position the company's product holds in customers' minds E) the organization of the company's marketing department

42) Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________. A) market development B) product development C) business portfolio D) value chain E) value delivery network

43) As a company's different functions work to produce value for consumers, the marketing department of a firm should take the ________ point of view. A) employees' B) managers' C) stockholders' D) consumers' E) distributors'

44) Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient ________. A) business model B) low-cost operator C) product mix D) value-delivery network E) problem-solver

45) ________ is the marketing logic by which a company hopes to achieve profitable customer relationships. A) Price B) Being a low-cost operator C) A consistent product mix D) Marketing strategy E) Implementing a differentiation strategy

46) In a visual representation of the marketing process, which of the following should appear in the center? A) sales goals B) customer relationships C) company objectives D) customer retention rates E) competitors

47) A sound marketing strategy begins with ________. A) positioning B) customer analysis C) differentiation D) promotion E) SWOT analysis

48) The process of customer-driven marketing involves ________, ________, ________, and ________. A) product; price; promotion; adaptation B) market segmentation; market targeting; differentiation; positioning C) marketing analysis; planning; implementation; feedback D) analysis; targeting; implementation; control E) problem identification; information search; decision; implementation

49) The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors is called ________. A) market targeting B) positioning C) marketing strategy D) market segmentation E) market extension

50) For Hyundai Corporation, customers who care primarily about the price of a car and its operating economy make up one ________. A) market position B) value network C) market segment D) customer extension E) value chain

51) ________ involves evaluating each market segment's attractiveness and selecting one or more segments to enter. A) Market segmentation B) Product differentiation C) Market targeting D) Market mixing E) Positioning

52) Most companies today enter a new market by serving a ________; if this proves successful, they ________. A) single market segment; add segments B) multitude of segments; add more segments C) few segments; add more segments D) niche; differentiate E) target market; reposition

53) ________ is the place a product occupies in the consumer's mind relative to competitors' products. A) Product placement B) Product position C) Market segmentation D) Market targeting E) Product promotion

54) Jill Reno has researched new markets and has decided which segments to enter. Next she should decide what ________ her company should occupy in those segments. A) position B) place C) rank D) rating E) percentage of space

55) Effective positioning begins with ________ the company's marketing offer in order to give consumers more perceived value. A) pricing B) aligning C) differentiating D) promoting E) placing

56) In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________. A) product B) price C) promotion D) place E) position

57) The text suggests that instead of thinking of selling products, marketers would be wise to take the customer's view and think of ________. A) providing convenience B) offering solutions to problems C) initiating two-way communication D) offering discounts E) connecting services and products

58) In the marketing management functions, a SWOT analysis should ________ a marketing plan. A) precede B) coincide with C) follow D) evaluate E) take priority over

59) In a SWOT analysis, which of the following would be considered a strength? A) internal limitations B) trends in the market C) favorable factors in the environment D) factors that challenge the company's performance E) internal resources

60) In a SWOT analysis, which of the following refers to factors in the external environment? A) strengths B) strategies C) weaknesses D) opportunities E) trends

61) To be successful at marketing, companies must effectively turn marketing planning into ________. A) marketing analysis B) marketing implementation C) marketing control D) marketing audits E) marketing budgeting

62) Under the ________ organizational format of marketing departments, different marketing activities are headed by a specialist such as a sales manager, advertising manager, marketing research manager, or customer-service manager. A) geographic B) product management C) market management D) customer-centered E) functional

63) Modern marketing departments are arranged in all of the following ways, EXCEPT which one? A) functional organization B) market management organization C) product management organization D) geographic organization E) strategic management organization

64) The ________ organizational format was first used by Procter and Gamble in 1929. A) functional B) market management C) geographic D) product management E) customer management

65) The ________ organizational system's main advantage is that the company is organized around the needs of specific market segments. A) product management B) market management C) geographic management D) vertical management E) functional management

66) An increasingly large number of firms are changing their organizational focus from ________ to ________. A) product management; functional management B) product management; geographic management C) brand management; customer relationship management D) geographic management; functional management E) global management; regional management

67) Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________. A) marketing control B) strategic control C) operating control D) developmental control E) efficiency

68) The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and ________. A) evaluating goals; measuring performance B) achieving goals; measuring performance C) taking corrective action; measuring performance D) measuring performance; taking corrective action E) taking corrective action; following up

69) Which of the following is NOT a step in the marketing control process? A) setting goals B) measuring performance C) taking corrective action D) defining the mission E) evaluating the causes of gaps between expected and actual performance

70) Ensuring that the company achieves the sales, profits, and other goals set out in its annual marketing plan is the purpose of ________. A) marketing control B) operating control C) strategic control D) anticipatory control E) a marketing audit

71) ________ involves looking at whether a company's basic strategies are well matched to its opportunities. A) Operating control B) Market management organization C) Marketing control D) Strategic control E) Distribution

72) Which of the following is a tool for monitoring strategic marketing performance? A) a marketing plan B) a marketing dashboard C) a customer management organization D) a product differentiation E) a value delivery network

73) Which of the following measures the profits generated by investments in marketing activities? A) SWOT analysis B) marketing audits C) executive summaries D) marketing ROI E) budgets

74) Which of the following would NOT be a useful tool for determining marketing ROI? A) a marketing dashboard B) brand awareness C) market share D) SWOT analysis E) customer lifetime value

75) Which of the following is NOT a customer-centered measure of marketing impact? A) customer management B) customer acquisition C) customer equity D) customer retention E) customer lifetime value

76)t or f: ABC Fortunes has just developed a formal statement of its purpose. This firm has put together a mission statement.

77)t or f: Mission statements should be realistic and general in nature.

78)t or f: Mission statements should both fit the market environment and be motivating.

79)t or f: At America Online, "we create customer connectivity, anytime, anywhere," is a product-oriented mission.

80)t or f: "At Nike, we sell shoes" is a market-oriented business definition.

81)t or f: A firm's mission statement should be the basis for both its business and marketing objectives.

82)t or f: The primary activity in strategic planning is goal setting.

83)t or f: When designing business portfolios, most companies are well advised to add a broad range of products and businesses to their organization.

84)to or f: In the BCG matrix, "dogs" by definition are businesses and products that do not generate enough cash to maintain themselves.

85)t or f: More and more companies involve only upper-level management teams in strategic planning.

86)t or f: Though companies need to grow to compete effectively and satisfy their stakeholders, growth itself should not be a company's objective.

87)t or f: The growth strategy of diversification involves offering modified or new products to current markets.

88)t or f: A company should consider downsizing when products of an SBU no longer fit the company's overall strategy.

89)t or f: The marketing department alone cannot produce superior value for customers.

90)t or f:A company's value chain is only as strong as its strongest link, or most effective department.

91)t or f: To improve its value delivery network, a company needs to examine the value chains of its suppliers and distributors.

92)t or f: The image of a product in the minds of consumers is called market segmentation.

93)t or f: A market segment consists of consumers who respond in different ways to a given set of marketing efforts.

94)t or f: Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called targeting.

95)t or f: A company with limited resources would likely decide to serve all segments of a market.

96)t or f: When a company positions its product, it must first identify possible customer value differences within a market segment that could be the basis of a competitive advantage for the product.

97)t or f: Guided by marketing strategy, the company designs a marketing mix made up of factors under its control: product, price, place, and promotion

98)t or f: In the four Ps of the marketing mix, promotion refers solely to advertising.

99)t or f: One valid criticism of the four Ps concept is that services are not considered.

100)t or f: The four Ps concept takes the seller's view of the market.

101)t or f: The four marketing management functions are analysis, planning, implementation, and control.

102) t or f: In SWOT analysis, strengths and weaknesses refer to a firm's internal environment, while opportunities and threats refer to the external environment.

103)t or f: Through annual marketing planning, the company decides what it wants to do with each business unit.

104)t or f: Marketing planning is the task of selecting marketing strategies for each business, product, or brand in a company with the goal of helping the company attain its overall objectives.

105)t or f: The final step in the marketing control process is taking corrective action to erase any gaps between goals and performance.

116) Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its ________ as creating "abundant food and a healthy environment." A) strategy B) market development C) business portfolio D) mission E) value-delivery network

117) Kimball Gardens is a company that operates as two distinct businesses-one that sells lawn and garden products and one that markets booklets. Each business is called a ________. A) separate entity B) strategic business unit (SBU) C) matrix D) division E) business portfolio

118) The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. In order to increase market share, managers may decide to ________. A) hold the pharmaceuticals division's share B) implement a harvest strategy C) use money from a cash cow to promote the pharmaceuticals division D) divest the SBU E) diversify the pharmaceutical division

119) The Bank of New York bought Pershing, an off-shore investment firm with operations in India, from Credit Suisse First Boston. The Bank of New York is pursuing a ________. A) product development strategy B) downsizing strategy C) diversification strategy D) market penetration strategy E) product adaptation

120) Acme, Inc., has modified the production processes of its widgets and gadgets in order to tap into the Eastern European market. Acme is likely following a ________ strategy. A) market penetration B) market development C) diversification D) harvesting E) product development

121) Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. This effort by Starbucks management is an example of ________. A) market development B) product development C) diversification D) market penetration E) product adaptation

122) Wal-Mart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the U.K., and Germany, and other nations. This is an example of how Wal-Mart is pursuing ________ as a growth strategy. A) market penetration B) product development C) demographic market development D) geographical market development E) diversification

123) Wal-Mart relies on sound relationships with its low-cost suppliers in order to pass low prices on to consumers. Thus, forming a ________ is crucial to Wal-Mart's success. A) value delivery network B) growth-share matrix C) customer relationship management policy D) market concept philosophy E) diversification strategy

124) TelStar Plastics is in the process of dividing a market into distinct groups of buyers with different needs, characteristics, and behaviors who might require separate products or marketing programs. Which of the following is this firm doing? A) market development B) market diversification C) market penetration D) market targeting E) market segmentation

125) Paul Pendergraff has identified a group of potential customers who seem to respond in a similar way to a series of magazine and radio advertisements for his company's product. Paul has identified a(n) ________. A) target market B) market segment C) market D) market position E) undefined niche

126) Paul Pendergraff is evaluating each market segment's attractiveness and is in the process of selecting one or more segments for his firm's product to enter. What is Paul doing? A) market targeting B) marketing segmenting C) marketing D) market positioning E) market penetrating

127) Favorite Memories specializes in serving market segments that major competitors overlook and ignore. Which of the following best describes Favorite Memories? A) market follower B) marketer challenger C) market seeker D) market nicher E) full market coverer

128) Saturn is "a different kind of company, a different kind of a car"; the Hummer is "like nothing else." These statements reflect a firm's ________. A) product portfolio B) target markets C) market positioning D) strategy E) market niche

129) Of the following, it is most important for marketers to develop ________ for their products. A) customer management organizations B) unique market positions C) market management organizations D) marketing ROI data E) marketing dashboards

130) Environmental Service Company wants to practice effective positioning. To do so, the owners must ________ their marketing offering to give consumers more value than the services offered by competitors. A) differentiate B) promote C) advertise D) sell E) represent

131) Harris, the marketing manager at a small sports retail chain, has conducted a marketing analysis. He has investigated the company's internal resources and situational factors, as well as factors and trends in the competitive sports retail chain market. Which of the following has Harris completed? A) SWOT analysis B) business portfolio analysis C) executive summary D) marketing plan E) marketing mix

132) Which of the following most accurately identifies a difference between a weakness and a threat in SWOT analysis? A) A company is more able to change a threat than a weakness. B) A company is more able to change a weakness than a threat. C) A company can be more negatively affected by a weakness than by a threat. D) A company can be more negatively affected by a threat than by a weakness. E) A company can more easily identify threats than weaknesses.

133) Emerson Studios, a chain of 25 portrait stores in five states, has organized its marketing organization into different marketing activities that are headed by specialists. What type of organization is this? A) geographic B) product C) organic D) functional E) market

134) Peter Cramer is constantly involved in evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained. Peter's current work is most accurately classified as ________. A) marketing control B) marketing planning C) strategic planning D) tactical planning E) strategic control

135) Juanita Castro is looking at whether her company's strategies are well matched to its opportunities. Juanita is utilizing ________. A) marketing control B) operating control C) strategic control D) SWOT analysis E) marketing auditing