Chapter 2 Multiple Choice – Flashcards
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Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing environment? A) long-range planning B) short-range planning C) media planning D) strategic planning E) annual planning
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D) strategic planning
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When a firm develops and maintains a strategic fit between its goals and capabilities, it is performing ________. A) mission planning B) values planning C) strategic planning D) business-portfolio planning E) operations planning
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C) strategic planning
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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) a mission statement C) a business portfolio D) marketing and functional strategies E) operational strategies
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B) a mission statement
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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 be narrow. C) A mission statement should emphasize the company's strengths in the marketplace. D) A mission statement should be specific. E) A mission statement should motivate employees.
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B) A mission statement should be narrow.
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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 factor
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D) business portfolio
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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
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C) portfolio analysis
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Which of the following 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
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C) an SBU
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After management has identified the key businesses making up its company, what is the next step in portfolio analysis? A) identifying businesses in which to invest B) assessing the attractiveness of its SBUs C) deciding whether to harvest any businesses D) completing short-range planning E) identifying SBUs
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B) assessing the attractiveness of its SBUs
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The best-known product portfolio planning method was developed by ________. A) the Boston Consulting Group B) Philip Kotler C) the SWOT Consulting Group D) the SRI Consulting Firm E) James P. Hess
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A) the Boston Consulting Group
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Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________. A) market share; strength of the SBU's position B) market diversification; relative market share C) market or industry attractiveness; strength of the SBU's position D) market growth rates; profits E) market penetration; market development
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C) market or industry attractiveness; strength of the SBU's position
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In the Boston Consulting Group approach, ________ provides a measure of market attractiveness. A) relative market share B) market development C) market penetration D) market growth rate E) market segmentation
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D) market growth rate
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In the Boston Consulting Group approach, ________ serves as a measure of company strength in the market. A) relative market share B) market development C) market diversification D) market growth rate E) market segmentation
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A) relative market share
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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; implementing; leading; controlling E) market penetration; market development; product development; diversification
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C) stars; cash cows; question marks; dogs
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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
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A) harvesting; divesting
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Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is ________. A) short-term oriented B) decentralized C) limitation-free D) product oriented E) centralized
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B) decentralized
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While a valuable planning tool, the BCG matrix is problematic in that it focuses on ________. A) the future instead of the present B) the present instead of the future C) financial issues instead of the customer D) the customer instead of suppliers E) the past instead of the present
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B) the present instead of the future
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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
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C) the product/market expansion grid
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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
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B) growth opportunities
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Making more sales to current customers without changing a firm's products is ________. A) market attractiveness B) market penetration C) market development D) product development E) diversification
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B) market penetration
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A common practice among marketers is to identify and develop new markets for their existing products. This practice is called ________. A) market development B) product development C) market penetration D) market skimming E) dual adaptation
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A) market development
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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
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C) diversification
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Which of the following is the marketing logic by which a company hopes to achieve profitable customer relationships? A) price B) a consistent product mix C) the value delivery network D) marketing strategy E) differentiation
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D) marketing strategy
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Lucy Ortiz is preparing a PowerPoint presentation of the marketing process to show at a sales meeting. ________ should appear in the center of her diagram depicting marketing strategies and the marketing mix. A) Sales goals B) Customer value and relationships C) Company objectives D) Customer retention rates E) Competitors
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B) Customer value and relationships
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A sound marketing strategy begins with which of the following? A) customer analysis B) positioning C) differentiation D) promotion E) BCG analysis
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A) customer analysis
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Your firm is attempting to divide up the total market to determine the best segments it can serve. Which is the correct order of doing so? A) market segmentation then market targeting B) differentiation then market targeting C) positioning then differentiation D) market segmentation then positioning E) market targeting then differentiation
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A) market segmentation then market targeting
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The process of customer-driven marketing involves which of the following? 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
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B) market segmentation; market targeting; differentiation; positioning
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Which of the following is the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors? A) market targeting B) market segmentation C) positioning D) marketing strategy E) differentiation
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B) market segmentation
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Your new employer has asked you, as a new marketing graduate, to develop a group of potential customers who might respond in a similar way to a given set of marketing efforts. You have been asked to develop a(n) ________. A) target market B) market segment C) market D) market strategy E) undefined niche
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B) market segment
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Which of the following involves evaluating each market segment's attractiveness and selecting one or more segments to enter? A) market segmentation B) differentiation C) market targeting D) servicing E) positioning
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C) market targeting
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Favorite Memories specializes in serving gift shoppers that major competitors overlook and ignore. Which of the following best describes Favorite Memories? A) market follower B) market challenger C) market seeker D) market nicher E) full market coverer
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D) market nicher
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Which of the following is the place a product occupies in the consumer's mind relative to competition? A) position B) placement C) market segmentation D) market targeting E) product promotion
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A) position
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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
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C) differentiating
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In the marketing management functions, a SWOT analysis should ________ a marketing plan. A) precede B) replace C) follow D) evaluate E) take priority over
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A) precede
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In 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
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E) internal resources
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In SWOT analysis, which of the following refers to factors in the external environment? A) strengths B) strategies C) weaknesses D) opportunities E) trends
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D) opportunities
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IBM has its sales and marketing people assigned to markets in specific countries, regions, and districts. This is an example of which type of marketing organization? A) geographic B) product C) functional D) divisional E) psychographic
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A) geographic
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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 management D) geographic management; functional management E) global management; regional management
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C) brand management; customer management
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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
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A) marketing control
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Which of the following involves looking at whether a company's basic strategies are well matched to its opportunities? A) operating control B) marketing control C) strategic control D) ROMI E) portfolio analysis
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C) strategic control
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Which of the following measures the profits generated by investments in marketing activities? A) SWOT analysis B) a marketing audit C) an executive summary D) marketing ROI E) a budget
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D) marketing ROI
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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) marketing development C) business portfolio D) value-delivery network E) mission
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E) mission
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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) return on investment (ROI) B) strategic business unit (SBU) C) cash cow D) star E) business portfolio
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B) strategic business unit (SBU)
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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
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D) market penetration
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Walmart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the U.K., Germany, and other nations. This is an example of how Walmart is pursuing ________ as a growth strategy. A) market penetration B) product development C) demographic market development D) geographic market development E) diversification
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D) geographic market development
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Acme, Inc. has slightly 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
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B) market development
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Starbucks Coffee has recently begun selling and playing compilation CDs and is supporting its own XM satellite radio station. This represents which strategy for growth? A) product development B) market development C) market penetration D) diversification E) partner development
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D) diversification
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For Hyundai Corporation, customers who care 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
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C) market segment
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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
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B) market segment
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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) a SWOT analysis B) a business portfolio analysis C) an executive summary D) a marketing plan E) a marketing mix
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A) a SWOT analysis
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Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to hunt, hike, and bike ride. Its long-term plans include the development of lenses that, in addition to protecting users from UV rays, will also have effective water-sheeting action to reduce lens spotting. This new feature will be valuable to people who fish. In terms of a SWOT analysis, the company believes it can use the ________ of its reputation as a sunglass manufacturer for a specialized market in combination with its current manufacturing facilities and labor force to enter this new market. A) weights B) strengths C) threats D) opportunities E) trends
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B) strengths
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Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to hunt, hike, and bike ride. Its long-term plans include the development of lenses that, in addition to protecting users from UV rays, will also have effective water-sheeting action to reduce lens spotting. This new feature will be valuable to people who fish. Serengeti has determined that fishing is one of the fastest growing sports in the United States. In terms of a SWOT analysis, Serengeti has recognized a market ________. A) weakness B) strength C) threat D) opportunity E) trend
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D) opportunity
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Fence Patrol has developed an entirely new mounting system for chain link fences. Although it is a local company, through the acquisition of a distributor it now has the ability to market its products nationwide. Fence Patrol is most likely following a ________ strategy. A) market penetration B) market development C) downsizing D) divesting E) product development
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B) market development
