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Strategic Business Units

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SBU has characteristics as a distinct mission and a specific target market control over its resources Its own competitors A single business or a collection of related businesses Plans independent of the other SBUs in the total organization

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Market Penetration

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Trying to increase market share among existing customers

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Market development

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Attracting new customers to existing product

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Product Development

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Strategy entails the creation of new products for present markets

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Diversification

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a strategy of increasing sales by introducing new products into new markets

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Portfolio Matrix

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Classifies each SBU by its present or forecast growth and market share

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Star

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fast-growing market leader

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Cash Cow

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an sbu that generates more cash than it needs to maintain its market share

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Problem child/question mark

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shows rapid growth but poor profit margins

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dog

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a low growth potential and a small market share

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Planning

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Process of anticipating future events and determining strategies to achieve organizational objectives in the future

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Marketing planning

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involves designing activities relating to marketing objectives and changing marketing environment

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marketing plan

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a written document that acts as a guidebook of marketing activities for the marketing manager

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Mission statement

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a statement of the firm's business based on a careful analysis of existing and anticipated environmental conditions

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marketing myopia

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defining a business in terms of goods and services rather than in terms of the benefits customers seek

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SWOT analysis

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identifying internal strengths, weaknesses, and also examining external opportunities and threats

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Environmental scanning

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collection and interpretation of info about forces, events a d relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan

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competitive advantage

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a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of competition

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cost competitive advantage

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being the low cost competitor in an industry while maintaining satisfactory profit margins

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Experience Curves

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Curves that show costs declining at a predictable rate as experience with a product increases

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product/service differentiation competitive advantage

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the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competioin

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Niche competitive advantage

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the advantage achieved when a firm seeks to target and effectively serve a small segment of the market

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Sustainable competitive advantage

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an advantage that cannot be copied by the competition

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marketing objective

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a statement of what is to be accomplished through marketing activities

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marketing strategy

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the activities of selecting and describing one or more target markets and developing and maintaing a marketing mix that will produce mutually satisfying exchanges with target markets

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Market opportunity analysis (MOA)

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The description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments

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Marketing Mix (four P's)

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A unique blend of product, Place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market

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implementation

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the process that turns a marketing plan into action assignments are executed in a way that accomplishes the plans objectives

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Evaluation

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gauging the extent to which the marketing objectives have been achieved during the specified time period

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Control

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Provides mechanism for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

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Marketing audit

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a thorough systematic periodic evaluation of the objectives strategies structure and performance of the marketing organization

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t/f: The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers

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False Such a short-range decision is typically a tactical plan or operating decision, not a strategic plan

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t/f The marketing plan is a written document that acts as a guidebook of marketing activities for the marketing manager.

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True

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t/f A firm's mission statement should answer the question, "What products do we produce best?"

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False Mission statements should not focus on specific product offerings but on the market or markets served

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t/f a production costs analysis could be a part of a company's SWOT analysis.

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True

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t/f Environmental scanning entails the collection and analysis of information about factors that may affect the organization as well as the identification of market opportunities and threats.

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True

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t/f To be useful, marketing objectives should be realistic, measurable, time specific, and based on sales.

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false Useful marketing objectives should be realistic, measurable, time specific, and compared to a benchmark. They do not have to be based on sales

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t/f The company's objective is to increase sales next year. This is an example of a well-stated objective.

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false This objective is not specific or compared to a benchmark.

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t/f A competitive advantage is some unique aspect of a firm's offering, or of the firm itself, that causes target customers to patronize the firm rather than its competition

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true

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t/f Developing a cost competitive advantage can enable a firm to deliver superior customer value.

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true

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t/f As marketers gain more experience in marketing a product, costs tend to decrease, which is an example of the maturity effect.

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false This is an example of the experience curve, which means costs decline at a predictable rate as experience with a product increases.

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t/f Niche competitive advantages are quite common

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true

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t/f Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell Corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a market penetration strategy

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false berkshire hathaways uses a diversification strategy

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t/f When the Internet auction company eBay opened a version of the company called eBay France for the French market, it was an example of market penetration.

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false Market penetration is the strategy of selling more to the existing customers. This is an example of a market development strategy, which is attracting new customers to existing products.

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t/f A market penetration strategy entails the creation of new products for current customers.

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false This is an example of product development strategy. A market penetration strategy in one that tries to increase market share among existing customers

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t/f The Home Depot's purchase of Hughes Supply Company allows it to better meet the needs of its current business customers. This is an example of product developmen

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true

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t/f When a florist shop begins to sell burial caskets to its customers, it is engaged in product development

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True

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t/f A diversification strategy entails increasing sales by introducing new products into new markets.

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true

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t/f The portfolio matrix is a tool for allocating resources among products or strategic business units on the basis of relative market share and degree of innovation

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false the portfolio matrix is based on relative market share and market growth rate

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t/f Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

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true

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t/f The development of a target market strategy begins with a marketing audit

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false the development of a target market strategy begins with a market opportunity analysis

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Four p's of marketing mix

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product place promotion price

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t/f Typically, the development of the marketing mix starts with determining the promotion for a product.

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False the development of the marketing mix begins with the product

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t/f A marketing audit helps management allocate marketing resources efficiently

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true

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t/f Strategic planning is most effective when managers view it as an annual exercise

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false strategic planning requires creativity and an ongoing commitment, not just going through the motions once a year

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t/f The most critical element for successful strategic planning is top management's support and participation.

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True

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_____ is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities. a. Tactical management b. The market audit c. Functional planning d. Environmental scanning e. Strategic planning

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E

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Strategic plans require: a. long-term resource commitments b. a change in organizational structure c. the addition of new personnel d. new product development e. changes in prices

answer

a

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With hospitals nationwide facing budget cuts and slimmer profit margins, Dekalb County's Medical Center decided to cash in on one of the most consistently profitable services--delivering babies. It initiated a three-year project to build a $55 million state-of-the-art women's center with 18 labor and delivery suites. When the hospital decided to commit its resources to obstetrics, it was engaging in: a. benchmarking b. alternative problem solving c. strategic planning d. portfolio evaluation e. tactical control

answer

C

question

Since gas prices have soared and consumers have cut back on their spending on new trucks and SUVs, Ford Motor Corporation is transforming several of its plants to create small cars. Ford has engaged in: a. benchmarking b. tactical resource realignment c. alternative selection d. portfolio evaluation e. strategic planning

answer

E

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Heinz has announced that they plan to grow the company through an accelerated push into emerging markets such as China, Indonesia, and India in the next ten years. This is an example of: a. tactical objectifying b. contingency plan c. strategic planning d. marketing implementation e. horizon planning

answer

C

question

_____ is the process of anticipating events and determining strategies to achieve organizational objectives. a. Planning b. Portfolio evaluation c. Forecasting d. Implementation e. Evaluation

answer

A

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A written document that acts as a guidebook of marketing activities for the marketing manager is known as the: a. strategy document b. marketing plan c. vision statement d. mission statement e. strategic plan

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B

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Earl is starting a new bank. Before the opening day, Earl had a meeting with all employees. He discussed their mission, defined objectives for the bank for the coming years, and shared who their target market is. He talked about their product offerings and where their future branches would be located. Earl is sharing the bank's: a. reengineering b. hierarchical restructuring c. financial analysis d. marketing plan e. strategic contingency planning

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D

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Marketing plans should be written to do all of the following EXCEPT: a. compare actual and expected performance b. provide clearly stated activities c. create common goals for employees to work toward d. allow managers to enter the marketplace with an awareness of possibilities and problems e. control the elements of the external marketing environment

answer

E

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All of the following are elements of the marketing plan EXCEPT: a. the business mission statement b. situation analysis c. the target market strategy d. the marketing mix e. portfolio analysis

answer

E

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A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions is known as a(n): a. business audit b. marketing plan c. mission statement d. environmental focus e. portfolio matrix

answer

C

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The _____ answers the question, "What business are we in, and where are we going?" a. mission statement b. financial statement c. situation analysis d. market strategy e. strategic plan

answer

A

question

PepsiCo's annual report has the following statement: "Our business is to increase the value of our shareholder's investment. We do this through sales growth, cost controls, and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient, and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity." This statement is an example of PepsiCo's: a. marketing mix strategy b. quantifiable goal c. mission statement d. statement of economic potential e. market segmentation strategy

answer

C

question

The focus of an organization's mission statement should be on: a. the products it wishes to sell b. the market it wishes to serve c. its social responsibilities d. the desires of government regulators e. technologies it understands well

answer

B

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_____ occurs when a business is defined in terms of goods and services rather than in terms of the benefits customers seek. a. Synergy b. Tunnel vision c. Narrowcasting d. Unempowerment e. Marketing myopia

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E

question

By defining its business as "printing books" instead of "empowering imaginations," a children's book publishing company would more than likely experience: a. market synergy b. product entropy c. market harvesting d. nonspecific strategic planning e. marketing myopia

answer

E

question

Subgroups of a single business or collection of related businesses within a larger organization are referred to as: a. strategic marketing organizations b. strategic subgroups c. market segments d. business segments e. strategic business units

answer

E

question

A popular technique for managing a large organization with different technologies and markets is to divide it into: a. strategic business units b. different technologies c. strategic target markets d. design matrices e. tactical segments

answer

A

question

The SBU acronym refers to: a. stock in business units b. strategic business unit c. standard business utilization d. strategic barter units e. samples by units

answer

B

question

A strategic business unit (SBU): a. competes with the same companies as the other SBUs in the parent organization b. shares the same mission with all the other SBUs in the parent organization c. controls its business independent of other SBUs in the organization d. usually benefits from the combined corporate raw materials purchases e. still has strategic planning performed back at corporate headquarters

answer

C

question

Yildiz Holding of Turkey purchased Godiva Chocolates from Campbell's Soup Company. Campbell's sold one of its: a. strategic business units (SBUs) b. strategic alliances c. action programs d. transactional units e. synergistic divisions

answer

a

question

Until spun off in 2007, Kraft was part of Altria Group, Inc. Kraft had its own management team, mission statement, and target markets different from Altria. Kraft was a _____ of Altria. a. product market niche b. diversified division c. heterogeneous element d. strategic alliance e. strategic business unit

answer

E

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A _____ is a study conducted by an organization to identify its internal strengths and weaknesses and also examine external opportunities and threats. a. situation analysis b. marketing audit c. trend analysis d. strategic alternative selection e. competitive advantage audit

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A

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The SWOT acronym refers to a firm's analysis of its: a. sales, width of product mix, observations, and technology b. situations, wealth, organizational strengths, and target markets c. strengths, weaknesses, opportunities, and threats d. service levels, willingness to spend, organizational culture, and total revenues e. strategies, willingness to change, objectives, and trends

answer

C

question

Tub King is a small company that refinishes antique claw foot bathtubs and antique sinks, and provides training for bathtub refinishing. The company's management is currently conducting a formal study of its current strengths and weaknesses by looking at the company's profit and sales histories and searching for opportunities and threats by studying consumer trends. Tub King is conducting a(n): a. marketing audit b. SWOT analysis c. environmental scan d. market differentiation scan e. strategic window search

answer

B

question

Briggs & Stratton is a company that makes small engines. The company is looking at customer trends, its competitors, and the economy to see if there are any threats or opportunities on the horizon. It has also examined its production policies and sales histories to determine its strengths and weaknesses. Briggs & Stratton is conducting a(n): a. environmental test b. market audit c. trend analysis d. situation analysis e. competitive advantage search

answer

D

question

Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. The reason for the introduction of this new style of vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis, the technology used by these machines is an example of a(n): a. strength because it is part of Coca-Cola's external environment b. advantage because it is part of Coca-Cola's marketing environment c. weakness because Coca-Cola cannot control technology d. opportunity because it is part of Coca-Cola's external environment e. benefit because Coca-Cola has the resources to make use of the new technology

answer

D

question

Smucker's purchased Folgers Coffee in 2008. The option to buy Folgers represented a(n) _____ to Smucker's. a. opportunity b. strength c. weakness d. threat e. burden

answer

A

question

Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this concern would be an example of a(n): a. weakness b. strength c. advantage d. opportunity e. threat

answer

E

question

_____ is defined as the collection and interpretation of information about forces, events, and relationships that may affect the organization. a. Market sampling b. An internal audit c. Opportunity analysis d. environmental scanning e. environmental analysis

answer

D

question

A _____ is defined as a statement of what is to be accomplished through marketing activities. a. mission statement b. business plan c. marketing objective d. goal-driven directive e. marketing criteria

answer

C

question

All of the following are characteristics of a good objective EXCEPT: a. profitable b. realistic c. measurable d. time specific e. consistent

answer

a

question

Of the following, what is the most useful objective for Purina cat food? a. To increase sales of Purina brand cat food by 15 percent over 2010 sales of $300 million b. To increase sales of Purina brand cat food between January 1, 2010, and December 31, 2010 c. To increase sales of Purina brand cat food from $300 million to $345 million d. To increase sales of Purina brand cat food e. To increase sales of Purina pet food

answer

A

question

All of the following are functions served by objectives EXCEPT: a. communicating philosophies and provide direction b. motivating employees c. clarifying executives' thinking d. forming the basis for control e. guaranteeing market performance

answer

E

question

The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition is known as a(n): a. environmental advantage b. experience curve c. competitive advantage d. market segment e. strategic business unit

answer

C

question

As a customer entered the Hornady store, which sells muzzleloading rifles, a salesperson approached her and said, "Hornady lead round balls are the musket balls you ought to buy. They are the most uniform in size and shape, and they are made of pure lead. Our shot is used by the Muzzle Loading World Champion." The salesperson was describing Hornady's: a. competitive advantage b. strategic strength c. tactical opportunity d. opportunity mission e. quality objective

answer

A

question

Land O'Lakes makes a light butter with canola oil that has 60 percent less cholesterol and 50 percent less fat and calories than butter. This marketing gives the product a: a. strategic edge b. competitive advantage c. tactical strength d. marketing mix e. mission statement

answer

B

question

Each labor and delivery room at the new Dekalb County Medical Center has hardwood floors, soft lighting, and mission-style furniture. The facility also features a stone fireplace in the lobby, a bistro-style restaurant, and VIP suites for discerning mothers-to-be. This unique design and furnishings give the medical center a: a. profit-enhanced advantage b. competitive advantage c. quality objectivity d. strategic strength e. tactical opportunity

answer

B

question

Which of the following is NOT a type of competitive advantage? a. Management structure b. Cost c. Product/service differentiation d. Niche e. All of these choices are types of competitive advantages

answer

A

question

Walmart realizes a _____ using its relationships with suppliers to give customers low prices and good customer service. a. brand name strategy b. niche competitive advantage c. cost competitive advantage d. marketing competitive advantage e. synergistic competitive advantage

answer

C

question

Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes with emphasis on low-priced, private label brands. Aldi stores are typically about one-third the size of the traditional supermarket. By controlling expenses, Aldi enables its customers to save 30 to 50 percent compared to Kroger customers. The chain targets bargain hunters who are willing to rent a cart and bag their own groceries. Aldi has a: a. market-homogeneous focus b. cost competitive advantage c. product aggregation strategy d. revenue-based competitive advantage e. profit-enhanced advantage

answer

B

question

All of the following are sources of a cost competitive advantage EXCEPT: a. reengineering b. experience curves c. break-even analyses d. efficient labor e. production innovations

answer

C

question

_____ show costs declining at a predictable rate as experience with a product increases. a. Liquidity growth curves b. EOQ graphs c. Break-even analyses d. Experience curves e. Supply/demand curves

answer

D

question

Jiffy Mixes does not do any type of traditional advertising or use fancy packaging in marketing its products. The company stores its own wheat and makes its own flour and little blue boxes. Jiffy is an example of a low-cost strategy based on: a. efficient labor b. no-frills goods and services c. government subsidies d. product design e. reengineering

answer

B

question

Zipcar is a car rental service found in many metropolitan areas. It targets people who take mass transit or carpool to work but who occasionally need a car to run errands, visit the doctor, or check on a sick child. Zipcar is one of a few companies currently providing cars that can be rented by the hour. Zipcar has created a(n) _____ advantage. a. reengineering b. experience curve c. service differentiation competitive d. alternative market e. sustainable competitive

answer

C

question

Everyone knows the brand name Kleenex. Kleenex is what many consumers think of when they think of tissues. This widely recognized brand name is a source of: a. a product differentiation competitive advantage b. a cost advantage c. market augmentation d. a niche competitive advantage e. none of these things

answer

a

question

Arizona Tea is marketed by Vultaggio & Sons. Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs. The wide-mouthed, long-necked bottles are now considered to be trendsetters in the new age beverage industry, and customers often buy the tea just for the bottle. The success of Arizona Tea is based on: a. supply-demand curves b. reengineering c. a product differentiation competitive advantage d. a cost competitive advantage e. a heterogeneous marketing strategy

answer

C

question

Yuengling is the oldest brewery in the United States. It was founded in 1827 in a time when small breweries dotted the nation. The brewery only sells in a ten-state area on the Eastern Seaboard. For over 170 years, this strategy has given the brewery a: a. brand name strategy b. niche competitive advantage c. price differentiation advantage d. marketing competitive advantage e. sustainable competitive advantage

answer

B

question

Fujisawa is Japan's seventh-largest pharmaceutical company. It sells drugs for organ transplant patients to increase the probability the new organ will operate efficiently and not be rejected. Currently, the only product Fujisawa makes is these organ transplant drugs, which it sells worldwide. Its patents protect it from competitors. Fujisawa has a: a. brand name advantage b. niche competitive advantage c. cost competitive advantage d. marketing competitive advantage e. complete competitive advantage

answer

B

question

Technol Medical Products makes specialty face masks to shield healthcare workers from infection. Because it focuses on this narrow market, it is able to outsell its primary competitors--3M and Johnson & Johnson. Technol has a(n): a. aggregated positioning strategy b. demarketing focus c. heterogeneous target marketing strategy d. cost competitive advantage e. niche competitive advantage

answer

E

question

An advantage that cannot be copied by the competition is called a(n) _____ competitive advantage. a. sustainable b. monopolistic c. primary d. unique e. dominant

answer

A

question

Patents on prescription medications give pharmaceutical companies that own the patents a(n) _____ for 17 years until the patent expires. a. targeted market position b. sustainable competitive advantage c. strategic focus d. situational strength e. opportunistic privilege

answer

B

question

iTunes has a(n) _____, as they have exclusive agreements with some of the most sought after music corporations that other digital music stores do not have. a. targeted market position b. sustainable competitive advantage c. strategic focus d. situational strength e. opportunistic privilege

answer

B

question

Which of the following is a type of strategic alternative that tries to increase market share among existing customers? a. Vertical integration b. Product penetration c. Divestment d. Horizontal integration e. Market penetration

answer

E

question

_____ is a strategy of increasing market share for present products in existing markets. a. Market penetration b. Product development c. Market development d. Diversification e. Product penetration

answer

a

question

Market penetration occurs when: a. a supermarket adds a new store b. a U.S.-based company begins to sell its products in China c. Motown records sells DVDs to Walmart d. Yoplait sends yogurt coupons to its existing customers e. 3M distributes Breathe Right nasal strips in Europe

answer

D

question

Kraft Foods created a magazine full of recipes and coupons for customers as well as a Web site with product and recipe information. The goal was to get current customers to purchase more of Kraft's products. These activities are representative of a _____ strategy. a. diversification b. product development c. market development d. market penetration e. product penetration

answer

D

question

_____ is a strategy that attempts to attract new customers to existing products. a. Product development b. Market development c. Market penetration d. Product penetration e. Diversification

answer

B

question

In order to expand its sales into the U.S. market, BRL, an Australia-based winemaker, agreed to a merger with a U.S.-based wine distribution company. According to Ansoff's strategic opportunity matrix, BRL would be implementing a _____ strategy. a. diversification b. market development c. product development d. divestment e. product penetration

answer

B

question

Yard Whimzees, a Statesboro, Georgia, sign business, began by making wooden signs for residential use to announce births, anniversaries, and such. The company then turned to the business market by making signs for businesses. Creating signs for a new market is an implementation of a _____ strategy. a. market development b. market penetration c. product penetration d. product development e. diversification

answer

A

question

In the past, PajamaGram marketed pajamas only to women. Now the company offers pajamas for men and children. This is an example of a _____ strategy. a. market development b. product development c. market penetration d. product penetration e. divestment

answer

A

question

LVMH, a maker of luxury goods, has expanded its products offerings into China, Russia, India, and the Middle East. This exemplifies a _____ strategy. a. market development b. product development c. market penetration d. diversification e. product expansion

answer

a

question

All of the following are strategic alternatives that match products with markets EXCEPT: a. product development b. market penetration c. product penetration d. diversification e. market development

answer

C

question

_____ is a marketing strategy that creates new products for present markets. a. Product penetration b. Market penetration c. Product development d. Market development e. Diversification

answer

C

question

Kraft introduced Philadelphia Ready-To-Eat Cheesecake Filling for those who do not have time to make cheesecake in the traditional manner. This is an example of a _____ strategy. a. diversification b. market development c. product development d. divestment e. product penetration

answer

C

question

The marketing of organic cotton tee-shirts for Life is good's existing customers would be an example of a _____ strategy. a. market development b. product development c. market penetration d. product penetration e. diversification

answer

B

question

Clay Market began as a retailer of terra-cotta pots and garden figures imported from Turkey and Mexico. It has since added Turkish rugs and fabrics, leather-trimmed purses, and a line of women's clothes for its customers. These activities are indicative of a _____ strategy. a. vertical integration b. market penetration c. diversification d. product development e. market development

answer

D

question

The Hallmark Company was inspired by the popularity of Jan Karon's best-selling novels about Mitford, a fictional town in the mountains of North Carolina, to develop a new line of products for Hallmark Gold Crown Stores nationwide. Hallmark created hundreds of Mitford-inspired products that authentically bring "the little town with the big heart" into tangible reality. The products include greeting cards, partyware and gift wrap, mugs, and puzzles for Hallmark's existing customers. Hallmark used a _____ strategy. a. market development b. market penetration c. product penetration d. product development e. diversification

answer

D

question

_____ is the strategy of increasing sales by introducing new products into new markets. a. Product penetration b. Product development c. Market penetration d. Market development e. Diversification

answer

E

question

Orange growers in Florida have lost millions of dollars due to hurricanes. As a result, some growers have decided to bulldoze their orange groves and put in freshwater lakes for raising shrimp, a product that has a strong popularity and is more weather resistant. Former orange growers who are now raising shrimp are pursuing a _____ strategy. a. market penetration b. product development c. diversification d. market development e. product penetration

answer

C

question

The company that manufactures Molson beer, which is typically consumed by males, launched an alcoholic lemonade beverage to attract more females. This launch of a new product to attract a new market for Molson's products is an illustration of a _____ strategy. a. market development b. market penetration c. product penetration d. product development e. diversification

answer

E

question

For most American consumers, the brand name Benetton brings to mind a retail clothing store that carries many products that bear the Benetton brand. But Edizone Holding, which also owns a chain of restaurants, several toll roads in Italy, and a telecommunications company, holds the Benetton Group. The list of the company's holdings indicates that the company's managers believe in growth through: a. market penetration b. diversification c. product development d. market development e. market integration

answer

B

question

Pure Digital Technologies created the Flip, a digital camera priced around $150. It filled a gap between expensive digital cameras and webcams. The Flip plugs straight into a computer, and the video can easily be viewed and shared instantly. Creating a new product for a new market is called _____. a. divestment b. segment development c. target marketing d. diversification e. directed growth

answer

D

question

The _____ is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate. a. market audit b. portfolio matrix c. experience matrix d. market development analysis e. market opportunity analysis

answer

B

question

Which of the following categories in the portfolio matrix is a market leader and growing fast? a. Star b. Meteor c. Cash cow d. Shiner e. Top dog

answer

A

question

Russell Athletic, which is part of Berkshire Hathaway, Inc., is a market leader in sports apparel, an industry that is growing rapidly. Russell Athletic is an example of a(n) _____ according to the portfolio matrix. a. star b. question mark c. problem child d. exclamation point e. widow

answer

a

question

A business unit that usually generates more than it needs to maintain its market share is called a(n) _____ in the portfolio matrix. a. star b. cash cow c. problem child d. dog e. independent

answer

B

question

Tide laundry detergent is the market leader, but overall industry growth is low in this market. Tide would be classified as a _____ in the portfolio matrix. a. star b. cash cow c. problem child d. question mark e. dog

answer

B

question

All of the following are categories used in the Boston Consulting Group's portfolio matrix EXCEPT: a. cash cows b. stars c. problem children d. meat eaters e. dogs

answer

D

question

Which of the following represents a business unit that shows rapid growth but poor profit margins? a. Star b. Cash cow c. Problem child d. Loss leader e. Dog

answer

C

question

Before Heinz sold its 9-Lives brand cat food unit, the company identified the product as having a low market share in a high-growth market. The portfolio matrix would classify 9-Lives as a(n): a. star b. exclamation point c. problem child d. cash cow e. widow

answer

C

question

John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies and is currently producing much less than the desired level of profitability in a high-growth industry. According to the portfolio matrix, Harland would label its Financial Solutions division as a(n): a. widow b. exclamation point c. problem child d. star e. dog

answer

C

question

In the portfolio matrix, a business unit that has low growth potential and a small market share is called a(n): a. widow b. problem child c. cash cow d. dog e. bust

answer

D

question

All of the following are basic strategies resulting from a portfolio analysis EXCEPT: a. harvest b. build c. hold d. divest e. milk

answer

E

question

John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies, which is a growing industry. This division is currently not producing at the desired level of profitability, but Harland plans to turn the division into a success by acquiring other companies that develop similar software. To accomplish this, Harland will be engaging in a _____ strategy. a. harvesting b. diversification c. divesting d. holding e. building

answer

E

question

A(n) _____ describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments. a. marketing orientation b. environmental scan c. marketing mix audit d. target market strategy e. market opportunity analysis

answer

E

question

Heinz is introducing 400 new products in the next two years. To know which markets to reach, Heinz should first perform a: a. market diversification analysis b. market audit c. social audit d. market opportunity analysis e. niche analysis

answer

D

question

The _____ is the unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. a. internal environmental mix b. marketing mix c. product mix d. product line e. market portfolio

answer

B

question

The typical starting point of any firm's marketing mix is the: a. analysis of what production equipment is available and owned by the company b. design of the promotion campaign to be used for the product c. selection of the places through which the good or service will be sold d. determination of the product's price, enabling future revenues and budgets to be estimated e. development of the good or service to be sold

answer

E

question

Lands' End guarantees its products for as long as you own them. The company would seem most concerned with which element of the marketing mix? a. Price b. Distribution c. Personalization d. Promotion e. Product

answer

E

question

Ocean Spray's development of Craisins sweetened dried cranberries to compete against raisins most directly affected the _____ element of the company's marketing mix. a. place b. production c. product d. distribution e. target market

answer

C

question

Golden Valley Microwave Foods, Inc. is the manufacturer of ACT II popcorn. In its early years, the company had trouble financing the development and marketing of products for the microwave, so it chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn in supermarkets or grocery stores. Which element of the marketing mix was most influenced by this arrangement? a. Product b. Place c. Price d. Public relations e. Promotion

answer

B

question

Making sure products are available when and where customers want them is the job of which element of the marketing mix? a. Advertising strategies b. Production strategies c. Product strategies d. Promotion strategies e. Distribution strategies

answer

E

question

InBev bought Anheuser-Busch. How will this purchase affect InBev's marketing mix? a. It will only affect the product element of InBev's marketing mix. b. It will only affect InBev's four Ps--not its marketing mix. c. It will affect all of InBev's marketing mix elements, either directly or indirectly. d. It will not affect the promotion or distribution elements of the InBev marketing mix. e. It will have no affect on InBev's marketing mix

answer

C

question

Apple's iPhone can only be purchased through AT&T cell phone distributors and the Apple retail store. This limitation on the _____ element of its marketing mix supports the product's competitive advantage. a. planning b. product c. promotion d. distribution e. production

answer

D

question

Apple, Inc. is now offering the iPhone 3G for half its original price. This new strategy reflects a change in the _____ element of its marketing mix. a. price b. production c. product d. distribution e. target market

answer

A

question

SoBe nutritional beverages uses twin lizards on every bottle of its products and in all of its promotion efforts. It even has its own Team Lizard made up of skateboarders, mountain bike riders, and in-line skaters that it sponsors. The lizard is used to remind consumers of the product and its benefits. To which of the four Ps does this represent? a. Promotion b. Price c. Publicity d. Place e. Product

answer

A

question

Which of the marketing mix elements is often the most flexible? a. Product b. Promotion c. Publicity d. Place e. Pricing

answer

E

question

There is an overabundance of apartments in Atlanta. Post Properties, the owner of many of the metropolitan area's largest apartment complexes, has reduced its rent so it can fill vacant apartments. Which marketing mix element did Post change to create more demand for its apartments? a. Production b. Personnel c. Distribution d. Product e. Price

answer

E

question

____ is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives. a. Mechanistic control b. Strategic analysis c. Implementation d. Strategic planning e. Strategic design

answer

C

question

General Motors Corporation has a goal of launching an electric vehicle soon. The car has been in test-drives, and GM is in the process of working out any bugs that may occur. GM also is in the process of working toward mass production of the vehicle. The company is in which stage of the marketing plan? a. Product planning b. Mechanistic organization c. Synergistic control d. Strategic diversification e. Implementation

answer

E

question

Compass is a United Kingdom-based catering company that has developed a marketing plan designed to make it the largest caterer in China within the next two decades. As part of its marketing _____, it has already begun serving meals on trains that run between Shanghai and Beijing. a. policy b. implementation c. evaluation d. control e. strategy

answer

B

question

____ is the process of gauging the extent to which marketing objectives have been achieved during the specified time period. a. Implementation b. Control c. Heuristic measurement d. Evaluation e. Mechanistic compliance

answer

D

question

An international company that needs to develop a way to compare its actual marketing results with planned results must engage in: a. external market research b. implementation c. comparative analyses d. planning e. control

answer

E

question

All of the following are common reasons why companies fail to achieve a marketing objective EXCEPT: a. unrealistic marketing objectives b. poor implementation c. plan not formalized d. inappropriate marketing strategies e. changes in the environment after the objective was specified and the strategy was implemented

answer

C

question

A marketing audit is a(n): a. thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization b. financial examination of the firm's marketing performance c. financial examination of the firm's accounting records performed by outside consultants d. evaluation of the effectiveness of advertising e. evaluation of pricing strategies across all the relevant competitors in an industry

answer

A

question

Le Feast is a catering company that has developed a marketing plan designed to make it the largest caterer in the country within the next two decades. Which of the following will be useful to the company to evaluate how successful its efforts have been at the end of the first decade? a. SWOT analysis b. Environmental scan c. Competitive analysis d. Marketing audit e. Comprehension sales analysis

answer

D

question

A planning manager visiting a company's health and beauty aids division discovers the division has no effective method for allocating resources, nor for evaluating actual results against planned results. His suggestion to the division would likely be to prepare a: a. marketing audit b. contingency plan c. service audit d. market share analysis e. series of tactical evaluations

answer

a

question

Which of the following statements about marketing audits is true? a. Marketing audits only need to be performed once. b. The main purpose of the marketing audit is to develop a full profile of a company's marketing effort. c. Marketing audits are only necessary after a major crisis. d. Marketing audits simply examine the external environment in which a company operates. e. The marketing audit should only be performed by outside accounting firms.

answer

B

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