Principles of Marketing - Chapter 2 w/ Practice Quiz

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 ________.

Mission Statement

Which of the following is NOT an example of product-oriented mission statements?

"We sell memorable experiences"

A company's mission should be stated as making more sales or profits.

False

Emerson Studios has designed its marketing organization along the lines of a ________ organization in which different marketing activities are headed by operational specialists.

Functional

SWOT analysis

An overall evaluation of the company's strengths (S), weaknesses (W), opportunities (O), and threats (T).

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Market segment

A group of consumers who respond in a similar way to a given set of marketing efforts.

Product/market expansion grid

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Mission statement

A statement of the organization's purpose—what it wants to accomplish in the larger environment.

Differentiation

Actually differentiating the market offering to create superior customer value.

Threats and opportunities analysis (Marketing plan)

Assesses major threats and opportunities that the product might face, helping management to anticipate important positive or negative developments that might have an impact on the firm and its strategies.

During portfolio analysis, a company ________ after identifying the key businesses that make up the company.

Assesses the effectiveness of its various channel intermediaries

Market development

Company growth by identifying and developing new market segments for current company products.

Market penetration

Company growth by increasing sales of current products to current market segments without changing the product.

Product development

Company growth by offering modified or new products to current market segments.

Diversification

Company growth through starting up or acquiring businesses outside the company's current products and markets.

More and more companies are shifting their brand management focus toward ________.

Customer Management

Berman Electronics, a chain of appliance stores in North America, caters to a wide range of customers. It has a marketing organization in which different operational specialists head different marketing activities. Berman Electronics is a(n) ________.

Customer Management Organization

Current marketing situation (Marketing plan)

Describes the target market and the company's position in it, including information about the market, product performance, competition, and distribution.

Budgets (Marketing plan)

Details supporting marketing budget that is essentially a projected profit-and-loss statement. It shows expected revenues and expected costs of production, distribution, and marketing. The difference is the projected profit. The budget becomes the basis for materials buying, production scheduling, personnel planning, and marketing operations.

Which of the following is the first step of business portfolio planning?

Determining which businesses should receive more, less, or no investment

A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________.

Diversification

Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________.

Diversification

Market segmentation

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

Market segmentation can be best described as the process of ________.

Evolving - Dividing a market into distinct groups of buyers who have different needs...

A mission statement is a document embodying an organization's short-term goals. T/F

False

Company growth through diversification involves offering modified or new products to the company's current markets. T/F

False

One valid criticism of the four Ps concept of the marketing mix is that services are not considered.

False

Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________.

Market Segment

Marketing control

Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.

The purpose of ________ is to ensure that the company achieves the sales, profits, and other goals set out in its annual marketing plan.

Operating Control

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 ________.

Opportunity

Marketing strategy (Marketing plan)

Outlines the broad marketing logic by which the business unit hopes to create customer value and relationships and the specifics of target markets, positioning, and marketing expenditure levels.

Controls (Marketing plan)

Outlines the controls that will be used to monitor progress, allow management to review implementation results, and spot products that are not meeting their goals. It includes measures of return on marketing investment.

Alpha Motors offers "Green automobiles for a greener world." This refers to the ________ of Alpha automobiles.

Position

Arrow is "a different kind of company, manufacturing a different kind of a car"; the RoadPro is "like nothing else." Statements such as these reflect a firm's ________.

Positioning

Executive summary (Marketing plan)

Presents a brief summary of the main goals and recommendations of the plan for management review, helping top management find the plan's major points quickly.

Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________

Product Development

________ refers to activities that communicate the merits of the product and persuade target customers to buy it.

Promotion

________ are low-share business units in high-growth markets that require a lot of cash to hold their share.

Question Mark

According to the Boston Consulting Group approach, ________ serves as a measure of company strength in the market.

Relative Market Share

Action programs (Marketing plan)

Spells out how marketing strategies will be turned into specific action programs that answer the following questions: What will be done? When will it be done? Who will do it? How much will it cost?

A mission statement serves as a ________.

Statement of the organizations purpose.

Objectives and issues (Marketing plan)

States the marketing objectives that the company would like to attain during the plan's term and discusses key issues that will affect their attainment.

_ is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities.

Strategic Planning

Most standard portfolio analysis methods evaluate SBUs on the ________.

Strength of the market or industry position

Business portfolio

The collection of businesses and products that make up the company.

Which of the following best describes a strategic business unit (SBU)?

The key business that make up a company

Marketing strategy

The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.

Return on marketing investment (Or marketing ROI)

The net return from a marketing investment divided by the costs of the marketing investment.

Value delivery network

The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system.

Portfolio analysis

The process by which management evaluates the products and businesses that make up the company.

Strategic planning

The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.

Market targeting

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Value chain

The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products.

Marketing mix

The set of tactical marketing tools— product, price, place, and promotion— that the firm blends to produce the response it wants in the target market.

Each company department can be thought of as a link in the company's internal value chain

True

Product means the goods-and-services combination the company offers to the target market.

True

Marketing implementation

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.

Which of the following is true with regard to cash cows?

Which of the following is true with regard to cash cows? They can be used to help finance the company's questions marks and stars