Chapter 2- Marketing

The Dog Bone Company is creating a competitive advantage by using niche marketing, what information should they use to target dog owners? A) All answers are correct B) Income information C) Zip codes D) Lifestyle information and demographic information

A) All answers are correct

Which of the following is an example of competitive advantage? A) Buying Burger King instead of McDonalds. B) Buying an iPhone SE instead of iPhone 6. C) Updating Windows 7 to Windows 10. D) Buying a Michael Kors crossbody bag instead of Michael Kors tote bag.

A) Buying Burger King instead of McDonalds.

Assess the strategy that is used to increase sales by creating new products that can be targeted to new markets. A) Diversification B) Product Development C) Sales Growth D) Market Penetration

A) Diversification

How does a business mission statement relate to marketing? A) It is the foundation of the marketing plan. B) It helps the marketing team create the correct product. C) It explains why consumers are important. D) It tells the marketing team where to sell the product. E) It sets the price of the marketing product.

A) It is the foundation of the marketing plan.

What are the four different strategic alternatives? A) Market penetration, market development, product development, diversification B) Stars, cash cows, problem children and dogs C) Penetration, development, target market and stars D) Market penetration, market development, target market, market response

A) Market penetration, market development, product development, diversification

What is included in promotional strategies? A) Personal selling, advertising, sales promotion, and public relations. B) Advertising, social media networking, pricing, and promotional ads. C) Advertising, marketing, and sales. D) Personal selling, advertising, pricing, and distribution.

A) Personal selling, advertising, sales promotion, and public relations.

The Gumball Company is a new company that started in one distribution channel but is now trying to enter multiple different stores. Which of the 4 Ps BEST describes what the Gumball Company is focusing on? A) Place B) Promotion C) Product D) Price

A) Place

What is it called when a company communicates the value of the product through media? A) Promotion B) Sales C) Market research D) Pricing

A) Promotion

Which of these products would be classified as a star on the portfolio matrix ? A) Self-driving vehicles B) Cable television C) Landline phone service D) Laptop computers E) Smartphones

A) Self-driving vehicles

What should a very large company with many different business units do for their mission statement? A) They should create a mission statement for each separate business unit. B) They should survey consumers about what their mission statement should be. C) They do not need a mission statement. D) They should try to create a generalized mission statement to cover all units. E) The mission statement should be one with marketing myopia.

A) They should create a mission statement for each separate business unit.

What question should a business mission statement answer? A) Why a company is in business and what they are trying to accomplish. B) How a company goes to market and increases its revenue. C) How a company plans to market specific products to the domestic market. D) Why a company sells the products to the consumer.

A) Why a company is in business and what they are trying to accomplish.

If a manufacturer of candy decides to open a theme park, this would be an example of a _____ strategic alternative. A) diversification B) market development C) development D) market penetration

A) diversification

The Easy Electronic Company is using SWOT analysis to determine long-term trends. The company has found out one of its electronic devices may be obsolete in the future, what can The Easy Electronic Company do? A) Replace the product B) All answers are correct C) Provide information on this trend and its potential impact on the company D) Begin documenting actions that can be taken to prevent obsolescence

B) All answers are correct

Thomas owns a large IT company. He attempts to gain an upper hand in the market by using very skilled workers and inexpensive raw materials. Overall, he is very focused on controlling the costs in order to maximize the value of his products to consumers. How is this an example of cost-competitive advantage? A) Because he advertises that his products are very cheap. B) Because the overall focus is on controlling costs in every segment of production. C) All the answers are correct. D) Because the focus is exclusively on minimizing the cost of materials.

B) Because the overall focus is on controlling costs in every segment of production.

John is a marketer that is trying to target the government market. Which is the BEST way to reach his target audience? A) Advertise on a local rap radio station B) Contact buyers in local government agencies via phone C) Give flyers to a clothing store D) All answers are correct

B) Contact buyers in local government agencies via phone

James' company owns several supermarkets. His company has decided to install self-checkout lanes in order to decrease their costs. What method is James' company using? A) Product design. B) Creating a new delivery method. C) Service differentiation. D) Re-engineering.

B) Creating a new delivery method.

Which is the BEST way to describe market penetration? A) Make products really expensive B) Make a product 'buy one get one half off' C) Create an advertisement for a product D) Create a niche for a product

B) Make a product 'buy one get one half off'

What is a marketing strategy that is based on attracting new customers to current products? A) International marketing B) Market Development C) Market Penetration D) Product Diversification

B) Market Development

What type of market segmentation strategy is used by Disney? A) Concentrating on one segment of the market. B) Multiple market segmentation. C) Single product segmentation. D) Niche marketing.

B) Multiple market segmentation.

Which part of the marketing mix is the most flexible and easiest to change? A) Promotion B) Price C) Product design D) Place

B) Price

When a company offers free samples in the local supermarket, this is an example of _____ A) a place strategy B) a promotion strategy C) a price strategy D) a sales strategy

B) a promotion strategy

The four types of promotion are A) advertising, social media, product, and billboards B) advertising, public relations, sales promotion and personal selling C) product, place, price and profit D) advertising, promotion, pricing and profit E) advertising, public relations, product and promotion

B) advertising, public relations, sales promotion and personal selling

Cost, product differentiation, and niche are all examples of _____ A) promotion B) competitive advantage C) HR practices D) sales

B) competitive advantage

A planned mix of the 4 Ps of marketing as defined in a marketing plan is also known as a _____ A) advertising mix B) marketing mix C) promotion mix D) sales mix

B) marketing mix

The price of a product includes _____ A) only the time and effort put forth by the purchaser. B) the financial amount charged plus the time and effort put forth by the purchaser. C) the amount of product sold to each customer. D) only the financial amount charged to the purchaser. E) only what the retailer paid for it.

B) the financial amount charged plus the time and effort put forth by the purchaser.

The Rowland Picture Company is new and ready to open. They are trying to develop a marketing plan but don't know which of the 4 Ps of marketing are the most important. Which of the 4 Ps of marketing are the most important for The Rowland Picture Company to use? A) Place and Promotion B) Product C) All answers are correct D) Price

C) All answers are correct

Your company offers the best cars on the market at relatively affordable prices. You currently have no competitors regarding the features your cars have. Why is this an example of product differentiation? A) Because any kind of new product by a company is an example of product differentiation. B) Because you are advertising the car as relatively affordable. C) Because you are advertising the unique features of the product. D) Because the quality of your products is very high.

C) Because you are advertising the unique features of the product.

Tom works for a large marketing firm and wants to form a new strategy about how his firm should operate. Before forming it, he wants to think about how he could maximize the capacity of his firm in comparison to the economic environment. How should he proceed in doing that? A) By conducting a SWOT analysis to analyze the strengths and weaknesses of the environment and the opportunities and threats in the company. B) By conducting a survey to analyze the strengths and weaknesses of the firm and the opportunities and threats in the environment. C) By conducting a SWOT analysis to analyze the strengths and weaknesses of the firm and the opportunities and threats in the environment. D) By conducting a survey to analyze the strengths and weaknesses of the environment and the opportunities and threats in the company. Print Worksheet

C) By conducting a SWOT analysis to analyze the strengths and weaknesses of the firm and the opportunities and threats in the environment.

How does a large company place its SBU's on the portfolio matrix ? A) By whether they provide a product or a service B) By where each SBU does business C) By the market share and growth potential for each SBU D) By the newness of each SBU's products

C) By the market share and growth potential for each SBU

Having a unique set of features that causes the company and its products to be perceived as superior by the target market is an example of _____. A) Product strategy B) SWOT analysis C) Competitive advantage D) Marketing opportunity analysis

C) Competitive advantage

Walmart is a mass marketer that has a substantial competitive advantage because of its size and power. Which type of competitive advantage is Walmart part of? A) Product differentiation B) Price advantage C) Cost advantage D) Niche

C) Cost advantage

Evaluate the effect of market penetration. A) It is a marketing strategy that tries to decrease market share among stakeholders. B) It is a marketing strategy that tries to increase market share among stakeholders. C) It is a marketing strategy that tries to increase market share among existing customers. D) It is a marketing strategy that tries to decrease market share among existing customers.

C) It is a marketing strategy that tries to increase market share among existing customers.

A sports equipment store decides to send out coupons for a new home gym to entice customers to buy the product. What is this an example of? A) Product differentiation B) Sales C) Market development D) HR

C) Market development

Which of the following would NOT be an external threat to a marketing manager? A) Government intervention in the industry. B) New government taxes. C) Poor employee work habits. D) A new competitor.

C) Poor employee work habits.

What is the overall sacrifice a consumer is willing to make to acquire a specific product or service? A) Compromise B) Product C) Price D) Venture E) Giveaway

C) Price

Which of the following is a strategy when a company pursues the development of a new product for a current market? A) Sales Development B) Product Diversification C) Product Development D) Market Development

C) Product Development

If a business created a mission statement that said, 'We will make products to make the world a better place,' then what type of mission statement development mistake has occurred? A) The mission statement does not explain the price. B) The mission statement is too wordy. C) The mission statement is too broad. D) Marketing myopia E) It's just right. There is no mistake.

C) The mission statement is too broad.

What is a strategic alternative? A) another way of thinking about marketing B) the biggest challenge for a company C) the game plan for the company to grow profits and market share D) the last recipe for success for a company

C) the game plan for the company to grow profits and market share

Which of the following is an example of a company using a niche competitive marketing strategy? A) A nationwide department store chain. B) A confectionery that sells both European and American chocolates. C) A company that sells soda worldwide. D) A company that makes clothing specifically for dogs.

D) A company that makes clothing specifically for dogs.

What is environmental scanning? A) When a business scans a competitor's documents. B) A process of scanning financial information. C) A process that analyzes the capacity of your firm in order to help you understand your own strengths and weaknesses. D) A process accomplished by analyzing and understanding environmental conditions.

D) A process accomplished by analyzing and understanding environmental conditions.

Jamerson Marketing is the only company in the world that uses both qualitative and quantitative analysis to create efficient marketing strategies. This method distinguishes them as a leading company in the field of marketing. Their competition work by using either qualitative or quantitative analysis. Why is this an example of a unique selling proposition (USP)? A) Because Jamerson Marketing is a leader in their field. B) Because Jamerson Marketing's competition failed to research Jamerson's analysis methods. C) Because Jamerson Marketing's revenue provides them with the opportunity to maintain a unique style of protection. D) Because Jamerson Marketing is the only company using both qualitative and quantitative analysis

D) Because Jamerson Marketing is the only company using both qualitative and quantitative analysis

What is marketing myopia? A) It is when the marketing team does not define the business plan properly. B) It is defining a mission statement based on last year's marketing data. C) It is defining a business in terms that are too broad D) It is defining a business in terms of goods and services rather than in terms of the benefits that customers seek. E) It is not seeing the big picture of the overall plan.

D) It is defining a business in terms of goods and services rather than in terms of the benefits that customers seek.

To effectively communicate with the target market is the purpose of which of the following? A) Marketing power B) Customers C) HR D) Marketing mix

D) Marketing mix

The marketing mix consists of A) Product, Personnel, Profit and Price B) Profit, Price, Performance and Product C) Planning, Profit, Product and Price D) Product, Place, Promotion and Price E) Product, Profit, Place and Promotion

D) Product, Place, Promotion and Price

Which of the following would a company do when it decides to 'harvest' a product made by an SBU? A) Focus on growing the product's market share B) Put the SBU up for sale C) Increase spending on developing a social media presence D) Spend as little on advertising and promotions as possible E) Close down the SBU as soon as the product inventory is sold

D) Spend as little on advertising and promotions as possible

What type of market consists of a defined group most likely to buy a company's products or services? A) Focus group B) Concentration zone C) Objective market D) Target market

D) Target market

Explain how place strategies work. A) They set the price of the product to match the price of the competitor's product. B) They come up with ideas on how to promote the product on social media networks. C) They are used to make sure the product is well designed for the target consumers. D) They make the product available to the consumers when they want and need them.

D) They make the product available to the consumers when they want and need them.

What question does a business mission statement answer? A) Who is our customer? B) What is our direction? C) Why are we in business and what is our sales goal? D) What is our reason for being in business and what is the purpose of the product in relationship to the consumer? E) What type of marketing do we need?

D) What is our reason for being in business and what is the purpose of the product in relationship to the consumer?

A successful marketing mix must have all four Ps. Which of the following BEST describes an example of the first P, product? A) When a company places an advertisement B) When a company increases marketing C) When a company chooses its distribution channels D) When a company changes the color of packaging for an item

D) When a company changes the color of packaging for an item

Anything of value to a consumer and offered through voluntary marketing exchange is a _____. A) risk B) promotion C) sale D) product

D) product

Brenda's Beauty Salon offers customers hair styling. This is a _____. A) physical product B) stored product C) tangible product D) service E) performance

D) service