Mktg Lesson 2 Chapter 2 MCQ – Flashcards
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Which of the following is true of strategic planning in a firm?
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It deals with adapting the firm to take advantage of changing marketing opportunities.
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Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?
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to give customers the complexion they dream about by providing products suited to their needs
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A company's mission statement should most likely be ________.
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defined in terms of satisfying basic customer needs
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Which of the following best describes a company's business portfolio?
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the collection of businesses and products that make up the company
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Business portfolio analysis is defined as the process in which management ________.
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assesses the attractiveness of an SBU's market and the strength of its position in the market
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Which of the following criteria provides a measure of market attractiveness in the Boston Consulting Group approach?
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market growth rate
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In the BCG growth-share matrix, stars refer to products or businesses with a ________.
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high market share in a market with a high growth rate
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In the BCG growth-share matrix, question marks refer to products or businesses with a ________.
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low market share in a market with high growth prospects
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In the BCG matrix, ________ refer to low-growth, high-share businesses or products.
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cash cows
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In the BCG matrix, ________ are low-share businesses and products in low-growth markets.
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dogs
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Which of the following statements is true in the context of the BCG growth-share matrix?
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Stars often need heavy investment to finance their rapid growth in a market.
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When using a harvest strategy for a particular strategic business unit, a company ________.
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tries to maximize its short-term cash flow regardless of long-term concerns
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When a company chooses to divest a particular strategic business unit, it ________.
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sells off or phases out the strategic business unit
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A strategy for company growth that involves increasing sales to current market segments without changing the product is known as ________.
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market penetration
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EcoBean, a chain of cafes, has introduced a Special Shopper Card that allows customers to pay in advance for coffee and snacks. This effort by EcoBean management is most likely an example of ________.
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market penetration
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Acme Inc., a manufacturer of construction and mining equipment, is based in Australia. Acme modifies the production processes of its widgets and gadgets to sell its current products in Eastern Europe. This is most likely an example of a ________ strategy.
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market development
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RedInk, a company that manufactures office furniture, is based in Bodonia. It is looking to sell its current products in other countries as well. The company identifies the country of Soleria as a good option because the cultures and tastes of consumers in the two countries are similar. This is an example of a strategy for ________.
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market development
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Indigo, a company that manufactures electric chimneys, is based in the country of Terrania. Indigo aims to increase its sales by increasing advertising efforts and undertaking frequent promotional events. Which of the following strategies is Indigo using in this scenario?
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market penetration
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Both market penetration strategies and market development strategies primarily involve ________.
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selling a company's current products
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Both product development strategies and diversification strategies involve ________.
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developing a new product
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31) A strategy for company growth through starting up or acquiring businesses outside the company's current products and markets is called ________.
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diversification
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With a market development strategy, a company aims to improve sales by ________.
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introducing its product in a new market without making any changes to the product
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________ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy.
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Downsizing
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Which of the following best describes the value chain of a company?
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the series of departments that design, produce, market, deliver, and support the company's products
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Which of the following groups is included in a company's value chain?
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employees
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Which of the following groups is included in both a company's value chain and its value delivery network?
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distributors
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A ________ is made up of a company, its suppliers, its distributors, and its customers who partner with each other to improve the performance of the entire system.
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value delivery network
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Traxx is a newly emerging shoe manufacturing company. After extensive market research, Traxx divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, Traxx has engaged in market ________.
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Segmentation
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________ refers to the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
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Market targeting
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Which of the following best describes product positioning?
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arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
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A consumer group that responds in a similar way to a given set of marketing efforts is the company's ________.
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market segment
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Which of the following best describes market segmentation?
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Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors
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Which component of the marketing mix refers to the goods-and-services combination a company offers to its target market?
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Product
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To which of the following elements of the marketing mix do design, packaging, services, and features belong?
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Product
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Which of the following will most likely be included in the "place" component of a company's marketing mix?
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Inventory
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Which of the following will most likely be included in the "price" component of a company's marketing mix?
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Discounts
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When viewing the market from a buyer's point of view, "communication" corresponds to the ________ component of the marketing mix.
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Promotion
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When viewing the market from a buyer's point of view, "convenience" corresponds to the ________ component of the marketing mix.
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Place
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In a SWOT analysis, which of the following would most likely be considered a strength of a company?
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An improvement in the company's production technology
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In a SWOT analysis, ________ refer to favorable factors or trends in the external environment that a company may be able to exploit to its advantage.
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Opportunities
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In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance.
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Threats
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The process that turns marketing plans into marketing actions to accomplish strategic marketing objectives is called marketing ________.
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Implementation
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Which of the following best describes a marketing department with a functional organization?
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Different marketing activities are headed by specialists such as sales managers, advertising managers, marketing research managers, and customer service managers.
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Evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained is called ________.
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Marketing Control
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________ are tools that give marketers the detailed measures they need to assess and adjust their strategies.
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Dashboards
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________ involves looking at whether a company's basic business models are well matched to its opportunities.
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Strategic control
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Which of the following is a primary characteristic of strategic control rather than operating control?
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looking at whether the company's basic plans and action goals are well matched to its opportunities
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Which of the following marketing measures can best be translated into dollar returns?
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Market share
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Which of the following is true of marketing ROI?
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Marketing ROI measures the profits generated by investments in marketing activities.
