CH. 2

Market development involves company growth by identifying and developing new market segments for current company products.

True

The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment.

True

Which of the following is a market-oriented mission statement?

We empower customers to achieve their dreams

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________.

diversification

A company can ________ an SBU by selling it or phasing it out and using the resources elsewhere.

divest

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 what strategy?

market development

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

marketing control

A market segment consists of consumers who respond in different ways to a given set of marketing efforts.

True

An American airline company started a grocery chain in Australia. This is an example of product development.

False

Benchmarking refers to the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives.

Flase

Which of the following is an element of the marketing mix?

Place

Company growth through diversification involves offering modified or new products to the company's current markets.

True

Which of the following is a major advantage of the market organization?

The company is organized around the needs of specific customer segments

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 what?

cash cow

The most common form of marketing organization is the ________ organization. Under this organization, an operational specialist heads different marketing activities.

functional

Marketing control involves four steps including all the following EXCEPT what?

increasing the staffing in the planning department

In a SWOT analysis, which of the following would be considered a strength?

internal capabilities

Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.

internal value chain

Modern strategic planning ________.

is decentralized

Crocus, a gift store, specializes in serving customer segments that major competitors overlook and ignore. Which of the following best describes Crocus?

market nicher

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

promotion

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

relative market share

________ involves looking at whether a company's key action plans are well-matched to its opportunities.

strategic control

A product's position is the place it occupies relative to competitors' products in consumers' minds.

true

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

we sell memorable expriences