Chapter 2 Practice – Flashcards

A brand new hardware company is writing its mission statement. Which of the following is the BEST mission statement possible for the new​ company? A. We will have two million dollars in profit by the end of our second fiscal year and twice that amount by the end of year five. B. We will help customers​ build, invigorate,​ restore, refurbish, or completely redesign their homes or businesses. C. We will be the best hardware company in the world. No other company will ever outsell us. D. We are providers of​ hardware, lumber-based, and appliance products to be used for home improvement and commercial construction projects. E. We embrace the deeper meaning of the home and commercial improvements.

Sarah has started a new​ company, Sarah's Soaps. She has decided upon the overall purpose and​ mission, created detailed objectives to guide the​ company, and performed detailed portfolio analysis. Unsure of her next​ step, she looks to her partner Mildred for advice. What is the BEST advice Mildred could​ give? A. Let the new department heads take over responsibility to test their effectiveness. B. Reevaluate the mission statement to make sure it reflects the detailed objectives. C. Create a​ growth-share matrix to find cash cows to help fund question marks. D. Determine a target market and begin aggressively marketing to them. E. Develop detailed marketing and departmental plans that will support the​ company-wide plan.

How do company objectives and goals relate to the company mission​ statement? A. The mission statement and the company goals are two different pieces used to explain the business of the company to its shareholders. B. The mission statement defines what the company​ does, and the goals and objectives outline why the company does it. C. The goals and objectives outline the steps necessary to accomplish the​ company's mission statement. D. The goals and objectives are a restatement of the mission statement in more understandable terms. E. The mission statement is developed based upon the​ company's goals and objectives.

When a company engages in strategic​ planning, it must consider which of the​ following? A. How to divide its assets among stockholders B. How to keep current businesses running smoothly C. How to take advantage of current business opportunities D. How to make the most money possible during a fiscal year E. How to best market its products

What is a business​ portfolio? A. The collection of businesses and products that make up a company B. A record of business investments C. A collection of a group of companies within the same area of business D. The record of the responsibilities of the CEO and the CFO E. A projection of a future marketing direction for a company

Question​ marks, cash​ cows, dogs, and stars are the four types of SBUs defined in which of the​ following? A. SWOT analysis B. Market segmentation C. Product expansion grid D. ​Growth-share matrix E. Value delivery network

What are stars in the growth share​ matrix? A. ​Low-growth, high-share businesses or products B. ​Low-growth, low-share businesses and products C. The growth star matrix does not contain stars. D. ​Low-share, high-growth businesses or products E. ​High-growth, high-share businesses or products

​Tammy's Tap Dancing School currently has several question marks in its business​ portfolio, but it is currently maintaining its market share. At the most recent board​ meeting, the CEO of​ Tammy's Tap Dancing School decided to allocate all of the​ company's profits toward the growth and expansion of this question​ mark, in order to cause the question marks to become stars. What is likely to happen to this​ company? A. The growth of the company will be unpredictable since there is no guarantee a question mark will become a star. B. The company will gain market share and prosper as the question marks are developed. C. The company will go​ bankrupt, because all of its profits will be wasted on uncertain SBUs. D. The company will be unable to sustain​ itself, because its profits will be spent on developing question marks and not on maintaining more profitable SBUs. E. The company will not show any growth or change at​ all, because profits will neither increase nor decrease.

What is​ management's first step when performing a portfolio​ analysis? A. Identify strategic business units. B. Determine the​ company's goals. C. Perform a SWOT analysis. D. Determine the​ company's target market. E. Outline the​ company's mission statement.

The goal of a market development growth strategy is to do which of the​ following? A. Identify and develop new markets for current products of a​ company's market. B. Start up businesses beyond its current products and markets. C. Make more sales to current customers without changing its original products. D. Buy businesses beyond its current products and markets. E. Offer modified or new products to current markets.

A value chain consists of which of the​ following? A. The customers who assign value to products within the company B. A chain of SBUs within a company that provide the most value C. The network of distributors and suppliers that support a company D. The acquisitions team that buys products for the company to sell E. The series of internal departments that carry out​ value-creating activities

A​ company's value chain is only as strong as its weakest link. What should a company do to properly gauge the strength of its links and continually​ improve? A. Determine the​ company's proper marketing mix. B. Evaluate its value delivery network. C. Examine the​ company's partner relationship management. D. Perform a​ growth-share matrix. E. Perform a SWOT analysis.

To create value for​ customers, marketers must improve the performance of the​ ______, which includes partnering with​ suppliers, distributors, and customers. A. value delivery network B. internal value chain C. strategic plan D. competitive delivery network E. marketing system

​MorningLinks, Inc., makes breakfast sausages and has begun to use the​ slogan, "Start Your Day the Organic​ Way" to jump on the​ eco-friendly movement.​ Unfortunately, as soon as consumers discovered​ MorningLinks' not-so-organic​ ingredients, the company began to see a rapid decline in profits and customer loyalty. What was​ MorningLinks' mistake? A. ​MorningLinks' slogan was not catchy enough. B. MorningLinks did not properly differentiate its position. C. MorningLinks did not deliver on the promise it made. D. MorningLinks failed to target the correct market segments. E. MorningLinks focused only on breakfast sausages instead of diversifying its product mix.

When consumers respond in a similar way to a given set of marketing​ efforts, they can be referred to as​ a(n) _________. A. market B. differentiation C. market segment D. target market E. value chain

Nibbles Pet Food Corporation is in the process of developing its new market strategy. The marketing team has already established the​ company's niche productlong dash—​premium, organic dog and cat foodlong dash—and contracted to sell it in several​ high-end pet stores. The team has also determined the optimum price to create value for customers and still make a profit. What does the marketing team need to do​ now? A. Develop the formula for the organic pet food. B. Work on a line of​ leashes, pet​ brushes, and pet furniture. C. Create a promotion strategy to increase customer awareness. D. Determine the target market for the product. E. Determine the​ company's primary competition in the pet food market.

What is the purpose of the marketing mix as part of the overall marketing​ strategy? A. To create an overall positive image in the​ customer's mind that is favorably associated with the company B. To maximize the​ company's profits through successful marketing and sales of a particular product C. To elicit a response that influences a demand for the product from the customers the company is targeting D. To streamline a​ company's research,​ marketing, production, and sales of a particular product E. To compare some or all of the​ company's products with the products of the​ company's competitors

Which of the following is a valid concern when it comes to the four​ Ps? A. It uses the​ buyer's view of the markets. B. It does not include packaging. C. It is not helpful for​ not-for-profit companies. D. It uses the​ seller's view of the market. E. It does not include services.

Which of the following is NOT part of an overall SWOT analysis evaluation of a​ company? A. Threats B. Strengths C. Strategy D. Weakness E. Opportunities

Why is marketing return on investment so difficult to​ measure? A. Marketers do not keep adequate records. B. There is no consistent definition. C. Marketing dashboards are inconsistent. D. ​Customer-centered measures are inconvenient. E. Customer engagement is hard to measure.

A marketing dashboard is used to do which of the​ following? A. Promote a product to a target group. B. Analyze the new product lines being developed. C. Determine the financial cost of developing a product. D. Develop a course of action to market a product. E. Monitor strategic marketing performance.

Which of the following is NOT one of the marketing management​ functions? A. Planning B. Control C. Implementation D. Analysis E. Promoting

Denim Blue Jean Corporation is a growing company located in Washington​ State, but it is beginning to develop a presence in the surrounding states as well. It sells only one productlong dash—blue jeanslong dash—but it has 12 different lines of jeans that cater to​ men, women,​ children, babies,​ toddlers, and teens. Which marketing organization would BEST suit Denim Blue Jean​ Corporation? A. Functional organization B. Geographic organization C. Product management organization D. Combination organization E. Market or customer organization

Connie's Cupcakes has started to grow larger than Connie could ever have imagined. She is having a hard time keeping track of all of the​ business' marketing activities. She knows that she is going to need help to keep her business growing and is looking to hire. Whom should Connie​ hire? A. Tim​ Forrest, an operations specialist who would be hired as the new chief operating officer B. Cash​ Money, a​ well-educated accountant who would begin working as the new chief financial officer C. Noah​ Lopez, a marketing specialist who would be hired as​ Connie's new chief marketing officer D. Frances​ French, her best friend and fellow entrepreneur who would come on as an additional chief executive officer E. Craig​ Moore, an extremely successful entrepreneur who is actually looking to buy out Connie and grow the business exponentially

How do the individual components of a SWOT analysis work together to determine the status of a​ company? A. By developing a course of action that best determines a core​ market, the proper product to give the core​ market, and how to do so at an affordable price B. By ascertaining a​ company's strengths, relating them to​ opportunities, minimizing​ weaknesses, and identifying threats to growth and development C. By creating a niche in a market that can be exploited by a company to gain the greatest profits D. By streamlining a​ company's core processes so that all of the​ company's operations flow smoothly and contribute to the development and sale of its products E. By developing a marketing strategy that promotes a​ company's highest-selling products in such a way that there is a measurable return on the​ company's investment