Marketing Ch. 2

Carlos has been asked to evaluate new opportunities that his company can take advantage of while also investigating potential threats to its product line. Carlos should use a(n ____ ____ to complete his task

SWOT analysis

Which of the following scenarios describes the marketing growth strategy known as market penetration?

Selling more of an existing good to an existing customer

Which component of the marketing plan allows a company to understand information about their current business and then make strategic decisions about how to best move forward?

Situation analysis

Of the following, which three would be considered a component of the marketing plan?

Situation analysis Financial section marketing strategy

Which items are part of a thorough market summary?

international growth opportunities potential sales through international expansion an analysis of important marketplace trends

A company will use different tactics to create a certain perception of its product in the eyes of the target market. This practice is referred to as _______.

positioning

Paula owns a gift shop where every item sold is made from recycled products. All of her marketing efforts are aimed at making her target market feel good about purchasing recycled products and helping the environment. The efforts Paula makes to create a certain perception of her products in the eyes of her target market are referred to as _______.

positioning

During the marketing meeting, Collin noted that keeping price increases small would be essential to keeping customer value high. Which section of the marketing plan was Collin addressing?

pricing

The _______ section of the marketing plan specifies how much money a customer must pay for a product.

pricing

The _______ section of the marketing plan consists of a detailed description of the article being offered.

product

Which section of the marketing plan would include information on any warranties or guarantees that accompany what the company is selling?

product

strategies involve creating new goods and services to sell to an existing market.

product development

A cash cow is defined in the BCG matrix as _______.

products that have a large market share in an industry with low growth rates

A company relies on which element of the marketing mix when determining how it will communicate the value of its product?

promotion

Sam has been asked to come up with ways to showcase the value of his company's newest products. He has determined that a public relations campaign is the best method to use. Sam's job is focusing on the marketing mix element known as ___

promotion

Kevin's company has recently introduced a notepad computer that will require a significant marketing investment to promote it against the widely-popular iPad. The future of Kevin's notepad computer is uncertain and would be categorized as a _______ in the BCG matrix.

question mark

No one knows if diet food and soda will boom in the future. Jennie's company wants to add a line of diet snacks. These products would be considered _______.

question marks

When marketers use the BCG matrix, they use the term___ ___ when classifying products that have a small market share in a high-growth industry.

question marks

The BCG matrix relies on two elements to produce four unique product categories. What are these two elements?

relative market share market growth

The financial projection that estimates how many units of a product a company expects to sell during a specified period of time is the _______.

sales forecast

Drag and drop the three aspects of a financial projection on the left against their corresponding descriptions on the right. Sales forecast Expense forecast Break-even analysis

sales forecast: Projects how many units of a product a company expects to sell during a specific time period Expense forecast: An estimate of the costs a company will incur to create, communicate and deliver the product break-even analysis: Estimate of how much a company needs to sell to cover expenses

a market ____ represents a group of like customers that have similar product needs.

segment

A marketing strategy includes decisions about which of the following?

segmentation, positioning, target markets, strategic direction, marketing mix

A market development strategy can be defined as _______.

selling existing products to new customers

If Susan is asked to review the market summary, SWOT analysis, and competition information for her company, then Susan is in the process of completing a

situation analysis

If Susan is asked to review the market summary, SWOT analysis, and competition information for her company, then Susan is in the process of completing a ___ ___

situation analysis

A firm that simply states "increase sales" as its marketing objective may have trouble formulating a strategy to meet this goal because this objective is too vague and does not meet the marketing characteristic of being _______.

specific

Portia was asked to develop a medium-term marketing objective for the department. She came up with the following: "The department needs to increase ad revenues by 10% over the next quarter and can do this by developing relationships with Clorox, Johnson & Johnson, and Renuzit." Which aspect of developing a quality marketing objective has Portia most likely accomplished?

specific

Jessica's company produces the most popular technology in America and consumers purchase new products almost as fast as the company produces them. It is part of Jessica's job in the marketing department to make sure she helps maintain the market position for these products and showcases them as leaders in the ever-growing industry. in the BCG matrix, Jessica would be focusing on___ products

star

Sam's company produces a highly popular energy drink and consumers purchase anything related to this drink as soon as it hits the market. Sam's job is to help maintain the market position for these products, especially in this highly competitive industry. in the BCG matrix, Sam would be focusing on _______ products.

star

Marketing efforts for which type of products focus on maintaining the product's market position as a leader in a growing industry for as long as possible?

stars

Within the BCG matrix, products labeled as _______ combine large market share with a high growth rate. Apple's iPhone would be an example of this type of product.

stars

A firm is developing plans for its marketing department in an effort to meet its objectives. It is developing _______.

strategic

Firms can greatly increase the likelihood of success if they carefully define their objectives and develop a plan for meeting those objectives. This activity is referred to as _______.

strategic planning

The process of defining the objectives of a company and then developing a method to achieve those objectives is known as _______.

strategic planning

The SWOT analysis is used, in part, to evaluate a firm's _______.

strengths and weaknesses

The goal for firms is to achieve a(n) ___ competitive advantage by developing products that outperform competitors over a long period of time.

sustainable

Families with small children are the primary customers for McDonalds' Happy Meals and the firm directs its marketing efforts toward this group by advertising during television programming aimed for kids. In this example, children would be considered a _______.

target market

an ___ ___ is the group of customers toward which an organization has decided to direct its marketing efforts.

target market

Quality marketing objectives have _____ basic characteristics.

three

A _______ is an internal limitation that may prevent or disrupt a firm's ability to meet its stated objectives.

weaknesses

Jonathan owns a landscape service and mows 200 yards each week during the summer. Which of the following findings from a SWOT analysis conducted by Jonathan represents a threat?

A gas shortage is in effect and companies can only purchase up to five gallons of gas each week.

Trisha has been asked to complete a situation analysis for her company to help guide the firm toward making strategic decisions for the future. Which of the following will Trisha be able to provide from her situation analysis?

Current competition Market conditions Marketplace trends

Identify the four basic categories of marketing growth strategies from the list below.

Diversification Product development Market penetration Market development

A strategic plan addresses an organization's plan for which key functional areas?

Financial, Marketing, Human Resources, Risk Management

Match the marketing growth strategy on the left with its description on the right. Market penetration Product development Market development Diversification

Market penetration: Selling more of existing goods and services to existing customers Product development: Creating new goods and services for existing markets Market development: Selling existing goods and services to new customers Diversification: Offering new goods and services to attract new customers

Which of the following are subsections of a situation analysis?

Market summary SWOT analysis competition analysis

Which of the following are the three characteristics of a quality marketing objective?

Measurable Specific realistic

Jennifer's son has asked for a new gaming system for his birthday, but Jennifer is reluctant to purchase it because he received his current system just last year. Her son says the new system has an enhanced feature that makes the colors even brighter and that is why he wants it. The enhanced feature found on the new system is an example of which marketing growth strategy?

Product development

Match each of the BCG product categories on the left with the correct description on the right. Star Cash cows Question marks Dogs

Star: large market share and high growth rate Cash cows: large market share and low growth rate Question marks: small market share and high growth rate Dogs: small market share and low growth rate

Organizational structure is a key component within the controls section of the marketing plan because it _______.

holds specific departments and individuals responsible for the parts of the plan under their control

What is market segmentation?

The process of dividing a larger market into smaller groups based on meaningfully shared characteristics

Under the controls section of the marketing plan, which area provides a detailed account of how the specific actions of the marketing plan will be carried out and who will be responsible for those activities?

implementation

A product that maintains a large market share in the industry even though that industry does not have a high growth rate is considered to be a _______.

cash cow

Apple's MacBook has a consistent market share and steady revenue. According to the BCG matrix, the MacBook is a _______ for the company.

cash cow

Even though the growth of MP3 players has declined, the Apple iPod still retains a large share of the market. The Apple iPod would be classified as a _______ within the BCG matrix.

cash cow

While many companies might provide the same product, consumers often believe that one particular company provides more value than the others. When this happens, it is an example of _______.

competitive advantage

Stephanie knows that she needs to include information in the controls section of the marketing plan about what the company will do if the initial marketing strategy it has planned does not garner the results the company wants. This information is known as the___ plan

contingency

A good mission statement should be oriented around the _______.

customer

Within the SWOT analysis, a weakness is considered an _______ limitation.

internal limitation

Competitors of McDonald's can be classified two ways. Restaurants like Wendy's and Burger King are its ____ competitors, while Subway and Taco Bell would be its ____competitors.

direct, indirect

When a company has a product that is considered a dog according to the BCG matrix, the company would be wise to _______.

discontinue the product

The _______ section of the marketing plan should outline all the different companies, people, and technologies that will be involved in the process of delivering the product to customers.

distribution

The marketing growth strategy known as ___ seeks to attract new customers by offering new products that are unrelated to the existing products the company produces.

diversification

While Coca-Cola originally only produced soda products, it now also owns Minute Maid orange juice and a variety of other companies. By seeking to attract new customers by offering new products unrelated to soda, which type of marketing growth strategy does this exemplify?

diversification

Within the BCG matrix, products with a small market share in an industry that has low growth rates are called

dogs

Janis owns a bakery and as part of a situation analysis, she is preparing a competition analysis. To be most effective, she should _______.

evaluate both her direct and indirect competitors

Staff members would consult the _______ section of the marketing plan when they want to quickly understand the basic ideas and strategies of the plan.

executive summary

While the _______ is listed as the first component of the marketing plan, firms should complete this part of the marketing plan last.

executive summary

When a company wants to determine how much it will cost to create a new product, it should complete a(n)____ forecast

expense

To be successful, a firm needs to know how to allocate resources and predict profits. It will have a difficult time doing this without the help of a(n) _______.

expense forecast

True or false: The sales forecast would be included in the mission statement of the marketing plan.

false

True or false: Distribution strategies fall within the marketing mix element known as product.

false ( place)

Charles has asked his staff to provide him with a sales forecast, expense forecast, and a break-even analysis. All three of these items are considered to be _______.

financial projections

If you wanted to understand the overall profitability of a company, you would study the _______ section of the marketing plan.

financials

Readers of a marketing plan can see the detailed estimate of an organization's profitability in the _______ section.

financials

While each company may develop a marketing plan in a different way, there are usually _______ basic steps in every marketing plan.

five

Ryan's company wants to expand the sales of its current product line to reach foreign markets. Ryan's company is considering using the marketing strategy known as ___ ___

market development

Martin wants to increase sales at his shoe store by giving his customers the opportunity to buy another pair of shoes for half-price for each pair of shoes they buy. This is an example of the marketing growth strategy known as ___ ___

market penetration

Which marketing strategy is designed to encourage existing customers to buy more of a product each time they visit a store?

market penetration

Proctor and Gamble offers its Gillette brand of deodorant for men and its Secret brand of deodorant for women. By taking the overall market and dividing it into smaller groups, Proctor and Gamble has engaged in _______.

market segmentation

The process of market segmentation results in _______.

market segments

As a component of the situation analysis, a ___ ___ focuses on the current state of the market to which the firm will sell its products.

market summary

The primary strategic planning tool used to direct and coordinate the activities marketers will undertake to execute the right marketing mix strategies to maximize success is the _______ plan.

marketing

What primary strategic planning tool do companies rely on to direct and coordinate marketing efforts?

marketing plan

The _______ component of the marketing plan lists the actions a firm must take to accomplish the marketing objectives it established in its mission statement.

marketing strategy

The specific actions a firm must take in order to accomplish its overall marketing objectives is laid out in its _______.

marketing strategy

What step of the marketing plan is developed after a marketer has completed the situation analysis?

marketing strategy

Marketers want to understand what the specific return will be on a marketing investment. To know if their strategies are working, it is important that the marketing objective be

measurable

Which characteristic of a marketing objective allows a marketer to understand if their strategies are working?

measurable

A company's long-term purpose can be identified in a concise format by creating _______.

mission statement

The purpose of an ___ ___ is to provide employees with a shared sense of ambition, direction, and opportunity.

mission statement

By emphasizing a firm's strengths, a good mission statement will not only capture a shared purpose but also serve to _______ the employees of the firm.

motivate

Within the BCG matrix, which type of product most likely falls under the category known as question marks?

new products

are external factors that a firm may be able to capitalize on to meet or exceed its stated objectives.

opportunities