Flashcards and Answers – MKTG 3310 // CH 2
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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
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Answer: A Diff: 2 Page Ref: 39 Skill: Concept
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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
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Answer: D Diff: 2 Page Ref: 39 Skill: Concept
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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
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Answer: E Diff: 2 Page Ref: 39 Skill: Concept
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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
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Answer: C Diff: 1 Page Ref: 39 Skill: Concept
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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
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Answer: E Diff: 2 Page Ref: 39 Skill: Concept
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6) Which of the following provides an
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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 } Answer: B Diff: 2 Page Ref: 39 Skill: Concept AACSB: Communication
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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
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Answer: D Diff: 2 Page Ref: 39-40 Skill: Concept AACSB: Reflective Thinking
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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
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Answer: D Diff: 2 Page Ref: 39 Skill: Concept AACSB: Communication
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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
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Answer: A Diff: 2 Page Ref: 40 Skill: Concept AACSB: Communication
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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
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Answer: D Diff: 1 Page Ref: 40 Skill: Concept AACSB: Reflective Thinking
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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.
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Answer: B Diff: 2 Page Ref: 39-40 Skill: Concept
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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"
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Answer: B Diff: 2 Page Ref: 40 Skill: Concept AACSB: Reflective Thinking
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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."
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Answer: D Diff: 2 Page Ref: 40 Skill: Concept AACSB: Reflective Thinking
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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."
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Answer: D Diff: 2 Page Ref: 40 Skill: Concept AACSB: Reflective Thinking
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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
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Answer: D Diff: 2 Page Ref: 40 Skill: Concept AACSB: Reflective Thinking
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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
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Answer: C Diff: 2 Page Ref: 43 Skill: Concept
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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
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Answer: D Diff: 1 Page Ref: 43 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 43 Skill: Concept
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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
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Answer: C Diff: 2 Page Ref: 43 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 43 Skill: Concept
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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
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Answer: D Diff: 1 Page Ref: 43 Skill: Concept
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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
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Answer: C Diff: 2 Page Ref: 43 Skill: Concept
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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
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Answer: D Diff: 2 Page Ref: 43 Skill: Concept
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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
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Answer: A Diff: 2 Page Ref: 43 Skill: Concept
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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
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Answer: C Diff: 2 Page Ref: 43-44 Skill: Concept
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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
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Answer: D Diff: 2 Page Ref: 43-44 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 44 Skill: Concept
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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
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Answer: C Diff: 2 Page Ref: 44 Skill: Concept
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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
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Answer: C Diff: 2 Page Ref: 44 Skill: Concept
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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
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Answer: A Diff: 2 Page Ref: 44 Skill: Concept
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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.
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Answer: A Diff: 2 Page Ref: 44 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 44 Skill: Concept
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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
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Answer: A Diff: 1 Page Ref: 45 Skill: Concept
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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
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Answer: C Diff: 1 Page Ref: 45 Skill: Concept
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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
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Answer: B Diff: 1 Page Ref: 45 AACSB: Reflective Thinking
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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
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Answer: C Diff: 1 Page Ref: 45 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 46 Skill: Concept
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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
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Answer: C Diff: 2 Page Ref: 46 Skill: Concept AACSB: Reflective Thinking
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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
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Answer: D Diff: 1 Page Ref: 46 Skill: Concept
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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.
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Answer: C Diff: 2 Page Ref: 46 Skill: Concept
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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
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Answer: A Diff: 2 Page Ref: 46 Skill: Concept
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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
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Answer: D Diff: 1 Page Ref: 47 Skill: Concept
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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'
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Answer: D Diff: 2 Page Ref: 47 Skill: Concept
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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
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Answer: D Diff: 2 Page Ref: 48 Skill: Concept
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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
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Answer: D Diff: 1 Page Ref: 49 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 49 Skill: Concept
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47) A sound marketing strategy begins with ________. A) positioning B) customer analysis C) differentiation D) promotion E) SWOT analysis
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Answer: B Diff: 2 Page Ref: 49-50 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 50 Skill: Concept
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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
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Answer: D Diff: 1 Page Ref: 50 Skill: Concept
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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
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Answer: C Diff: 2 Page Ref: 50 Skill: Concept
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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
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Answer: C Diff: 1 Page Ref: 50 Skill: Concept
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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
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Answer: A Diff: 2 Page Ref: 52 Skill: Concept
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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
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Answer: B Diff: 1 Page Ref: 52 Skill: Concept AACSB: Communication
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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
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Answer: A Diff: 1 Page Ref: 52 Skill: Concept
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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
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Answer: C Diff: 2 Page Ref: 53 Skill: Concept AACSB: Communication
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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
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Answer: A Diff: 2 Page Ref: 53 Skill: Concept AACSB: Communication
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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
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Answer: B Diff: 2 Page Ref: 54 Skill: Concept
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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
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Answer: A Diff: 2 Page Ref: 54-55 Skill: Concept
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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
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Answer: E Diff: 2 Page Ref: 55 Skill: Concept
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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
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Answer: D Diff: 2 Page Ref: 55 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 57 Skill: Concept
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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
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Answer: E Diff: 2 Page Ref: 57
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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
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Answer: E Diff: 2 Page Ref: 57-58 Skill: Concept
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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
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Answer: D Diff: 2 Page Ref: 57 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 58 Skill: Concept
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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
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Answer: C Diff: 2 Page Ref: 58 Skill: Concept
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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
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Answer: A Diff: 1 Page Ref: 58 Skill: Concept
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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
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Answer: D Diff: 2 Page Ref: 58 Skill: Concept
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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
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Answer: D Diff: 2 Page Ref: 58 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 58 Skill: Concept
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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
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Answer: D Diff: 1 Page Ref: 58 Skill: Concept
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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
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Answer: B Diff: 2 Page Ref: 59 Skill: Concept
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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
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Answer: D Diff: 2 Page Ref: 59 Skill: Concept
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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
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Answer: D Diff: 2 Page Ref: 59 Skill: Concept
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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
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Answer: A Diff: 1 Page Ref: 59 Skill: Concept
