Chapter 2 Study – Flashcards
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The first step of the strategic planning process is to identify the company's ________, an explicit statement that clearly explains the organization's purpose and what it seeks to accomplish. A. mission B. business portfolio C. market penetration strategy D. positioning E. target market
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A. mission
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A major activity in strategic planning is ________ analysis, whereby management evaluates the products and lines of business that make up the company. A. business portfolio B. growth share matrix C. competitive D. positioning E. SWOT
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A. business portfolio
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Nike states that it wants to "bring inspiration and innovation to every athlete in the world." This is Nike's _________. A. objective B. marketing plan C. strategy D. market-oriented mission statement E. product-oriented mission statement
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D. market-oriented mission statement
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In the strategic planning process, the business portfolio is designed after ________. A. planning functional strategies B. planning marketing strategies C. the strategic planning process is completed D. defining the company mission E. setting company objectives and goals
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E. setting company objectives and goals
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Which of the following steps in the strategic planning process is not done at the corporate level? A. Setting company goals B. Setting company objectives C. Planning marketing strategies D. Defining the company mission E. Designing the business portfolio
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C. Planning marketing strategies
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The primary purpose of a strategic plan is to ________________. A. establish market share objectives B. expand into new markets C. design a business portfolio D. enable a firm to take advantage of opportunities in a changing environment E. build profitable customer relationships
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D. enable a firm to take advantage of opportunities in a changing environment
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If Apple introduced a marketing strategy designed to encourage new groupslong dash—such as seniorslong dash—to visit its stores for the first time, this would be an example of a ________ growth strategy. A. market development B. market penetration C. market targeting D. product development E. diversification
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A. market development
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A key limitation of BCG and other formal approaches to ________ planning is that they focus on classifying current businesses and provide little advice for future planning. A. strategic B. portfolio C. marketing D. competitive E. long-range
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B. portfolio
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What are the two measures the BCG matrix uses to classify SBUs and products in the portfolio? A. Market growth rate and return on investment (ROI) B. Market growth rate and degree of competitiveness C. Relative market share and market growth rate D. Relative market share and number of products the company produces E. Relative market share and return on investment (ROI)
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C. Relative market share and market growth rate
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According to the BCG matrix, ______ are high-share, high-growth products. When the market growth slows, these products become ________. A. question marks; stars B. stars; cash cows C. question marks; cash cows D. cash cows; stars E. cash cows; dogs
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B. stars; cash cows
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In 2005, Proctor and Gamble purchased Gillette, makers of shaving products, and added these to the existing P&G portfolio. Which growth strategy did P&G use in acquiring Gillette? A. Market development B. Market penetration C. Diversification D. Divestment E. Product development
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C. Diversification
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Ben & Jerry's frequently expand its line of ice cream with new flavors. Which market growth strategy is Ben & Jerry's using? A. Diversification B. Product development C. Harvesting D. Market penetration E. Market development
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B. Product development
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Competition no longer takes place only between individual rivals. Rather, it takes place between the ________ networks created by these competitors. A. product management B. value delivery C. marketing mix D. advertising E. brand portfolios
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B. value delivery
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Each company department can be thought of as a link in the company's internal ________. A. value chain B. supply chain C. value delivery network D. business portfolio E. marketing dashboard
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A. value chain
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One key role marketing plays in a company's strategic planning is to _________. A. Focus on the customer while other departments formulate strategies B. Provide a guiding philosophy C. Take advantage of opportunities identified by the strategic planners D. Work to add customer value so other departments do not have to be concerned with it. E. allow other departments to not be concerned with marketing
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B. Provide a guiding philosophy
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Marketing can disrupt the internal value chain and cause conflicts to develop because increasing customer satisfaction can potentially _______. A. gain commitment from the entire company to engage customers B. increase production costs, increase inventories, cause budget headaches and disrupt production schedules C. coordinate the efforts of different company departments to deliver customer value D. align all functional areas with the goal of increasing customer value E. make all departments "think consumer"
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B. increase production costs, increase inventories, cause budget headaches and disrupt production schedules
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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. strategic plan C. marketing system D. competitive delivery network E. internal value chain
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A. value delivery network
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Which one of the following statements about marketing's role in strategic planning is correct? A. Marketing is unrelated to a company's guiding philosophy. B. Marketing does not design strategies. C. Marketing oversees the planning of each business unit. D. Marketing provides inputs to strategic planners. E. Marketing does not contribute to profitability.
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D. Marketing provides inputs to strategic planners.
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________ represents the marketing logic by which the company hopes to create customer value and achieve profitable, mutually beneficial relationships. A. Strategic planning B. The marketing concept C. Market development D. Positioning E. Marketing strategy
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E. Marketing strategy
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The process of dividing a broad market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs, is known as ________. A. market targeting B. customer profiling C. segmentation D. differentiation E. positioning
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C. segmentation
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The Dollar Store and Family Dollar profitably focus on buyers with modest means with their market offerings. This is an example of _________. A. the marketing mix B. marketing control C. positioning D. market segmentation E. market targeting
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E. market targeting
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What is one primary purpose of a product's position? A. To get eye level in-store shelf space B. Differentiation C. To choose which segments to serve with a market offering D. To gain market share E. To identify groups of consumers with similar needs
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B. Differentiation
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The four Ps of the marketing mix are redefined in buyer terms as the four Cs. What are the four Cs of the marketing mix? A. Customer cost, convenience, competitors, communication B. Competitors, channel management, consistency, choice C. Customers, competitors, convenience, communication D. Customer solution, convenience, communication, channel management E. Customer solution, customer cost, convenience, communication
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E. Customer solution, customer cost, convenience, communication
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___________ is at the core of any marketing strategy. A. The marketing mix B. Segmenting, targeting, and positioning C. Competitors, suppliers, and publics D. Customer value and relationships E. Planning, analysis, and implementation
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D. Customer value and relationships
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Managing the marketing function should begin with a thorough situation analysis of the firm's internal and external environments, including company strengths, weaknesses, opportunities, and ________. A. rivals B. HR practices C. tactics D. threats E. territories
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D. threats
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Although modern marketing departments can be arranged in several ways, the most common form of marketing organization is the ________ organization, in which different marketing activities are headed by a specialist in any given area. A. product management B. geographic C. value management D. market management E. functional
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E. functional
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Assume the economy is in a recession. Mario's custom jewelry is expensive and sales are down. In a situation analysis (SWOT), the state of the economy is a(n)______ and Mario's pricing structure is a(n) ________. A. weakness; weakness B. threat; weakness C. opportunity; weakness D. threat; strength E. weakness; threat
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B. threat; weakness
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Which of the following is not one of the four marketing management functions? A. Analysis B. Planning C. Control D. Implementation and organization E. Customer service
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E. Customer service
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What are the main components of a marketing plan? A. Segmentation, targeting, and positioning B. An executive summary, situation analysis, objectives, strategy, action programs, budgets, and controls C. A marketing budget and a marketing dashboard D. Product, price, place, and promotion E. A mission statement, objectives, and a business portfolio
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B. An executive summary, situation analysis, objectives, strategy, action programs, budgets, and controls
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Which of the following is a true statement regarding managing and measuring marketing return on investment (ROI)? A. One reason ROI is used is because it is easy to measure. B. Marketers define ROI as a quantitative measure derived by dividing returns (that is, profits) by the costs of the investments. C. Marketers are increasingly using measures such as customer acquisition and retention, customer engagement, and customer equity as measures of ROI. D. ROI is being used less today because marketing managers are not as accountable for performance as they were in the past. E. Marketers increasingly use customer-centered measures of ROI that include brand awareness, sales, and market share.
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C. Marketers are increasingly using measures such as customer acquisition and retention, customer engagement, and customer equity as measures of ROI.