CH2

Which of the following is a market-oriented mission statement? A) "We empower customers to achieve their dreams." B) "We sell jumbo burgers." C) "We make porcelain figurines." D) "We are a low-cost airline." E) "We are an online library."

"We empower customers to achieve their dreams."

Which of the following is NOT a market-oriented business definition? A) "We empower customers to realize their dreams." B) "We create the Hilton experience." C) "We bring innovation to every home." D) "We sell success and status." E) "We make high-quality consumer food products."

"We make high-quality consumer food products."

Which of the following would be classified as an opportunity in a SWOT analysis of Fun-Spot? A) A rival amusement park announces plans to open three new rides next season. B) Fun-Spot employees tend to be enthusiastic and young, projecting an image of fun and vitality. C) Ron and Gail have paid off the mortgage on Fun-Spot, significantly reducing their monthly expenses. D) A new luxury hotel is being constructed in the area, with the aim of attracting more high-spending families on vacation. E) Fun-Spot plans to further diversify its offerings by beginning a two-week summer camp for elementary school students.

A new luxury hotel is being constructed in the area, with the aim of attracting more high-spending families on vacation.

Which of the following companies has a product-oriented business definition? A) A cosmetic company, whose business definition is: "We offer hope and self-expression." B) A shoe manufacturer, whose business definition is: "We manufacture affordable and long-lasting shoes for all." C) A high-technology company, whose business definition is: "We sell inspirations." D) A luxury hotel, whose business definition is: "We sell out-of-the-world experiences to our guests." E) A real estate company, whose business definition is: "We sell dreams."

A shoe manufacturer, whose business definition is: "We manufacture affordable and long-lasting shoes for all."

Which of the following is true with regard to strategic planning? A) The strategic plan is a statement of an organization's purpose. B) Strategic planning involves identifying segments of consumers with identical preferences. C) At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company. D) The focus of strategic planning is to define a game plan for long-run survival and growth. E) A strategic plan deals with a company's short-term goals.

The focus of strategic planning is to define a game plan for long-run survival and growth.

Mission statements should ________ and be defined in terms of ________. A) be market oriented; satisfying basic customer needs B) address sales and profits; the net return on investments C) be technology oriented; meeting the self-actualization needs of customers D) be product oriented; satisfying the esteem needs of customers E) embody the company's short-term plans; current opportunities

be market oriented; satisfying basic customer needs

Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________. A) prospecting B) diversification C) product adaptation D) mass customization E) niche marketing

diversification

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________. A) diversification B) downsizing C) local marketing D) niche marketing E) product adaptation

diversification

Market segmentation can be best described as the process of ________. A) assigning specific human attributes to a given brand B) dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate marketing programs C) turning marketing plans into marketing actions to accomplish strategic marketing objectives D) maintaining a strategic fit between organizational goals and changing marketing opportunities E) evaluating each market segment's attractiveness and selecting one or more segments to enter

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate marketing programs

RedFin manufactures diving equipment that is highly regarded by customers worldwide. Each department in RedFin contributes to its success and can be thought of as a(n) ________. A) link in the company's internal value chain B) separate organization C) separate market segment D) SBU E) independent subsidiary of the company

link in the company's internal value chain

FencePro, a local company, has developed an entirely new mounting system for chain link fences. After acquiring a distributor, FencePro now has the ability to market its products nationwide. FencePro is most likely following a ________ strategy. A) market development B) product adaptation C) market penetration D) downsizing E) product development

market development

Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark is most likely following a ________ strategy. A) product development B) local marketing C) product adaptation D) diversification E) market development

market development

The managers of Alfredo's Pizza, a popular pizzeria in New York City, have been increasingly encouraging senior citizens to visit the pizzeria's numerous outlets spread across the city. Anticipating a rise in the population of senior citizens in the area, the management of Alfredo's Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers. In this instance, the managers of Alfredo's Pizza are anticipating company growth through ________. A) market development B) product development C) product differentiation D) mass customization E) niche marketing

market development

Ron and Gail plan to lower Fun-Spot's prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning? A) diversification B) market penetration C) market development D) product adaptation E) product development

market penetration

Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________. A) product line B) marketing intermediary C) new product D) brand E) market segment

market segment

Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________. A) market segment B) brand personality C) line extension D) product attribute E) channel intermediary

market segment

Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. This process involves market segmentation, ________, differentiation, and positioning. A) price discrimination B) market diversification C) marketing implementation D) supply-chain analysis E) market targeting

market targeting

Orion Inc. operates in many industries, including pharmaceuticals and food products. The company's goal is to create "abundant and affordable food for all and a healthy environment." This represents Orion's ________. A) business portfolio B) marketing plan C) marketing mix D) mission statement E) product mix

mission statement

Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who love to hunt, hike, and ride bikes. The company's long-term plans include the development of lenses that, in addition to protecting users from UV rays, would help reduce lens spotting through effective water-sheeting methods. This new feature would be valuable to people who fish. Given the rising popularity of recreational fishing in the United States, Omega products clearly have a huge market potential. In terms of a SWOT analysis, Omega has recognized a market ________. A) opportunity B) strength C) threat D) weakness E) challenge

opportunity

Ron and Gail, owners of Fun-Spot, strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________. A) product development B) market penetration C) niche marketing D) diversification E) market development

product development

Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________. A) mass customization B) diversification C) downsizing D) benchmarking E) product development

product development

Companies that define their missions in terms of products or technologies are considered myopic primarily because ________. A) consumer preferences with regard to products and technology are difficult to predict B) products and technologies result in low returns on investment C) products and technologies eventually become outdated D) most consumers are not comfortable using sophisticated technology during the buying process E) consumer preferences for different product categories vary from time to time

products and technologies eventually become outdated

The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ________. A) bear B) star C) cash cow D) dog E) question mark

question mark

Mission statements should be defined in terms of ________. A) the value a company's products provide B) the advantages a company's products provide C) the variety they offer to a customer D) satisfying basic customer needs E) the profitability of a company's products

satisfying basic customer needs

Fun-Spot Fun Park represents a high-growth, high-share business. According to the BCG matrix, it can be classified as a ________. A) cat B) question mark C) bear D) star E) dog

star

The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools. Each of these businesses is called a ________. A) market segment B) product portfolio C) prospect D) question mark E) strategic business unit

strategic business unit