Marketing Chapter 2
What is the first step that your team should take to start your student organization?
I agree with Jarrod. My team should start by determining the focus of our student organization.
ConAgra Foods is a global manufacturer of processed and packaged foods with revenues of $11 billion annually. It recently acquired Pinnacle Foods, which added iconic brands to its portfolio such as Birds Eye, Duncan Hines, Earth Balance, and Vlasic. Pinnacle Foods will continue to have control over its resources and distinct mission, and it will operate independently of ConAgra Foods. Pinnacle Foods is known as a(n) _______.
strategic business unit
Darden Restaurants is well known for its famous restaurant brands, including Olive Garden, Seasons 52, Bahama Breeze, and LongHorn Steakhouse. Each of these restaurant operations maintains a distinct mission and target market, and they are run as independent businesses. Thus, they are considered _______.
strategic business units
The innovation matrix identifies three levels of change and innovation. They include _______, _______, and _______. (Select three)
--adjacent innovation --core innovation --transformational innovation
What do you think is the next step that your team should take?
I agree with Tenisha and Jarrod. My team should decide how we will promote the student organization.
Polaroid's 3D pen allows users to create 3D models. You can free draw or use the Polaroid Trace App to trace over stencils and build 3D models. The product is currently sold in the United Kingdom and parts of Europe. For Polaroid, the addition of the 3D pen to the U.S. market would be viewed as a _______ strategy on Ansoff's opportunity matrix.
product development
Intel is known for its high-quality computer chips and ability to innovate. Most major computer and tablet manufacturers prefer to include Intel chips and often add the brand's logo and statement "Intel inside" on the product packaging. It is likely that Intel benefits from a _______ competitive advantage.
product/service differentiation
The three fitness apps that Under Armour acquired are industry leading apps, with large user bases, in the fast-growing market of fitness tracking software and services. These apps would be classified as _______ in the BCG portfolio matrix.
stars
According to Business Insider, Automatic Data Processing, Inc. (ADP) engages in the provision of business outsourcing solutions and specializes in cloud-based human capital management. ADP is a preferred vendor for payroll systems, and since it processes millions of checks for its customers, it is a respected source of information about unemployment rates through its monthly National Employment Report. ADP's development and study of employment trends was a(n) _______ decision affecting its long-run profitability and growth.
strategic
Caterpillar is a manufacturer of heavy equipment. The company imports steel parts such as buckets for end loaders from China. Once the products arrive from China, Caterpillar must remove rust from the items that developed during ocean transport. What area of the marketing mix best characterizes this issue related to the imported steel parts?
Place
Methodist Hospital recently completed a five-year strategic plan. It has recently appointed ten managers from various departments to serve on a task force. These managers will oversee the _______ of the marketing plan by delegating assignments, identifying the timing of tasks, and allocating resources to various departments.
implementation
Rajan, who is the VP of Marketing for a technology firm, is working with the senior leadership team to revise the company's mission statement. He believes the current statement is too narrow since it emphasizes goods and services instead of the benefits customers might receive. In other words, the mission statement is _______.
myopic
A marketing objective should be ____________, _______________, __________, and ______________________________.
realistic, measurable, time specific, compared to a benchmark.
Carefully specified objectives should have all of the following characteristics EXCEPT _______.
to have unspecified end dates
A __________ is ___________ to the company and is a limitation that puts the company at a disadvantage.
weakness, internal
Which of the following is NOT a requirement of effective strategic planning?
Resource allocation
When conducting a SWOT analysis, managers can identify opportunities and threats by _______.
analyzing the external marketing environment
Key performance indicators _______.
help managers compare outcomes to stated objectives
An organization that chooses a _______ strategy attempts to maintain the product's market share in order to take advantage of the positive cash flow.
hold
In the GE model, the appropriate action for areas of the matrix with high attractiveness is _______.
invest/grow
In a SWOT analysis, the prospect of entering new markets and launching new products would be listed under _______.
opportunities
China recently announced interest in developing its domestic sports industry, which is estimated to be a $1 billion opportunity for sports apparel, shoes, and fitness devices. When UA conducts a SWOT analysis, this would be categorized as a(n) _______.
opportunity
A company employing a _______ strategy would create a new product targeted to its current customers.
product development
A company that focuses on a unique aspect of its product is likely using a _______.
product/service differentiation competitive advantage
Companies that develop new products for new markets would fall in the _______ range on the innovation matrix.
transformational innovation
A _______ is the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments.
market opportunity analysis (MOA)
Volkswagen has announced that it will develop a new line of energy-efficient vehicles that are powered by electricity. VW may offer a van that resembles its iconic Vanagon model from the 1970s and 1980s. The company is currently estimating the size and sales potential of key market segments, as well as identifying competitors who currently serve those segments. Volkswagen is performing a(n) _______.
market opportunity analysis (MOA)
Walgreens is based in Chicago, Illinois, and has developed a large customer base, especially in larger cities. It has strong relationships with its suppliers and an innovative supply chain, enabling it to reduce out-of-stock inventory, especially with fast-moving items that are purchased frequently. These capabilities have enabled Walgreens to maintain its market position and have a strong competitive position since they are not easily copied or duplicated by other firms. Walgreens enjoys a _______ competitive advantage.
sustainable
All the following questions are asked when considering the business's position EXCEPT: _______
Are there barriers to entry in the potential market?
Identify the name of the product or SBU by matching the descriptions in the left column to the names of the product or SBUs in the right column.
Star: high market share in a market with high growth Cash cow: high market share in a market with low growth Problem child (question marks): low market share in a market with high growth Dog: low market share in a market with low growth
Danika is working on a marketing plan for her hair salon, which she has operated for 10 years. She is experienced and knows her market and her customers well. Danika has written down the following statement: "Increase revenue from nail services to $25,000 in the next year." Which statement about marketing objectives is true of Danika's statement?
The objective statement is realistic, measurable, and time specific, but does not include any benchmark comparison.
A market development strategy __________ customers ___________ products.
attracts new, to existing
A _______ strategy increases sales by introducing new products into new markets.
diversification
Energy bars are a popular snack or meal replacement for many consumers. The Clif Bar & Company has a variety of bars and emphasizes their natural ingredients and healthy snack options. The bars are available at most grocery stores, and they are sold individually or in a variety of packs of six bars to a box. The company has identified specific sales objectives for each variety of snack bar, and it is currently reviewing the sales data to gauge which varieties are meeting the sales targets. Thus, the Clif Bar & Company is engaged in the _______ process.
evaluation
A control device that marketing managers use is a _______.
marketing audit
A _______ is a written document that acts as a guidebook of marketing activities for the marketing manager.
marketing plan
Stefan was recently hired by a small business to provide strategic planning consulting. In the initial meeting, Stefan emphasized the importance of the _______, which is the foundation of any company's marketing plan.
mission statement
The General Electric model is ______________ than the Boston Consulting Group model and is _______________ to quantify.
more complex, harder
Coca-Cola has a variety of strategic business units (SBUs) in its beverage business. Glaceau Vitamin Water is in a high-growth market due to customer trends away from carbonated beverages. However, Coca-Cola has a low market share of the bottled water segment. Thus, Glaceau Vitamin Water would be classified as a _______ according to the Boston Consulting Group model.
problem child
The Polaroid Cube is an HD action video camera. It can record up to 90 minutes of video and magnetically mount to helmets, bike handlebars, and other surfaces. Currently GoPro dominates this fast-growing market, while the Cube's market share is relatively low. Given this information, the Polaroid Cube would be classified as a _______.
problem child
Dollar General operates midsized retail stores in rural towns. It has been expanding the variety of products available in its stores. Some locations now offer fresh produce and an increased assortment of fresh or frozen food items. Dollar General hopes the addition of new products will lead existing customers to purchase more items when they shop, which will in turn increase revenues for the chain. This is an example of the _______ strategic alternative according to Ansoff's matrix.
product development
Marco is the owner of Salon Concepts, which offers nail, hair, and massage services. Marco wants to increase revenues and decides to offer new services to men, focusing on shaving, beard or mustache care, and barber services. Marco believes these new services will enable the salon to grow and maintain profitability over time. In launching grooming services for men, Marco has made a(n) _______ decision.
strategic
The three general strategies for selecting target markets include which of the following? (Select three)
--Concentrate on one segment with one marketing mix --Appeal to multiple market segments using multiple marketing mixes --Appeal to the entire market with one marketing mix
A lighting company has developed a line of security lights that consumers can place at the entrances to their homes. Key features include motion sensing to automatically turn on the light, and notification via smartphone with video. The product is in a high-growth market as people are interested in safety, security, and monitoring their home from wherever they might be. However, the company has a low market share. What strategy would you recommend the company implement for the smart security light line?
Build
Which of the following is NOT true about strategic business units (SBUs)?
Each SBU shares its mission statement with the parent company.
_______ is the most flexible of the four Ps because it is the easiest and quickest component to change.
Price
Wahl Clipper Company has an innovation center where its engineers create and test new products. Wahl recently reviewed several options for packaging of its curling wand. Which aspect of the marketing mix is Wahl focusing on with its review of packaging options?
Product
Coca-Cola has a variety of strategic business units (SBUs) in its beverage business. Zico is a line of coconut water that is available in several flavor options and package sizes. Due to its healthfulness and the advantage of having no added sugar, Zico products have a dominant share of the market and are expected to continue to grow. How would Zico be classified according to the Boston Consulting Group model?
Star
Which of the following statements is true regarding effective strategic planning?
Strategic planning requires top management's support and participation.
UA offers a technology-equipped shoe that "tracks and stores data such as time and date, duration, distance, and splits during workouts, runs, or walks," Wearable shoe technology is still a relatively new product, and UA's Gemini shoe competes with Nike's Nike+ and Adidas's Speedcell foot pod sensor. Nike+ currently has the largest market share in this fast-growing category. Marketers at Under Armour will likely choose a _______ strategy for its Gemini shoe.
build
Harvesting is an appropriate strategy for all the following products or SBUs EXCEPT _______, _______, and _______. (Select three)
cash cows, dogs, problem children
Companies across the globe can now realize opportunities to grow by exporting their products or services to different countries. For example, the popular clothing chain H&M, known as a fast fashion retailer, is based in Sweden, but now has locations in many cities across the United States. These stores offer the same selection of items found in other H&M store locations across the globe. H&M is utilizing Ansoff's strategic alternative of _______.
diversification
Pedro is the owner of BoxFitness, a cardio-fitness club specializing in boxing. He has a certificate as a sports trainer, provides excellent guidance as a trainer, and his business is conveniently located. If a situation analysis were performed, these would be examples of the company's _______.
strengths
A _______ is an advantage that cannot be copied by the competition in the near future.
sustainable competitive advantage
A firm using a niche competitive advantage _______.
targets and serves a single segment of the market
Macy's, a large department store chain and one of Under Armour's (UA) key retail partners, is closing a number of stores across the United States and will now operate roughly 730 locations, versus 850 in 2009. When UA conducts a SWOT analysis, this would be categorized as a(n) _______.
threat
Strategic planning is usually conducted by _______.
top managers
Elements of product strategy can include all of the following EXCEPT _______.
where the product is sold
Strategic marketing management addresses which of the following questions? (Select two)
--How will the company reach its goals? --What is the organization's main activity at a specific time?
Which of the following are reasons for failing to achieve a marketing objective? (Select four)
--Inappropriate marketing strategies in the plan --Unrealistic marketing objectives --Changes in the environment after the objective was specified --Poor implementation
Which of the following are ways that a company choosing a cost competitive advantage can reduce costs? (Select three)
--Reverse engineering competitors' products --Outsourcing low-skill, labor-intensive tasks --Utilizing technology to reduce production costs
_______ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.
Control
Gillette is best known for its line of products for men's shaving, such as razors, blades, and shaving foam. Gillette also has deodorant and body wash, but the company has noticed that Gillette body wash for men is in a low-growth market. Its market share is low as well. The company is considering how best to allocate resources across the company. Which strategy would you recommend Gillette implement for the body wash line?
Divest
In 2013, Polaroid announced they were opening brick-and-mortar stores called Fotobar. The stores offered printing services that allowed customers to print pictures from their phones or photo sharing apps as standard prints, or to canvas or metal. By the end of 2013, Fotobar hoped to have ten retail stores and continue to expand in 2014. But market growth for these services never materialized. Today, there are just three Fotobar locations. On the BCG portfolio matrix, Fotobar would likely be considered a _______.
dog
Post is a manufacturer of many popular consumer cereal brands, from healthy and hearty varieties such as Bran Flakes to brands catering to those with a sweet tooth, like Oreo O's. Post's Shredded Wheat cereal has been a staple in many homes for decades but now has a low market share, and its prospects for market growth are also low. According to the Boston Consulting Group Model, Shredded Wheat would be classified as a _______.
dog
Given the popularity of Netflix's Stranger Things television show, Polaroid created a OneStep 2 Stranger Things Edition camera. Marketers for Polaroid likely viewed this partnership as a(n) _______ on a SWOT analysis.
opportunity
Because of its app acquisitions, UA has direct access to registered users of MapMyFitness, MyFitnessPal, and Endomondo. This means UA can recommend products to these user bases and utilize these apps as new sales channels. When UA conducts a SWOT analysis, this would be categorized as a(n) _______.
strength
A stop at the grocery store cereal aisle can be overwhelming, with seemingly hundreds of varieties of cereal available. Post has more than 20 brands of cereal in its consumer products division, such as Pebbles cereal, which has a high market share but is in a low-growth market, as consumers now favor more natural cereal products with less added sugar. How would Pebbles cereal be classified according to the Boston Consulting Group model?
Cash cow
_______ occurs when a company defines its business in terms of goods and services rather than in terms of the benefits customers seek.
Marketing myopia
Redesigning packaging would be considered a(n) _______ on the innovation matrix.
core innovation
Pedro, owner of the BoxFitness club, is conducting a situation analysis. He recently read an article about how research has shown that individuals who have Parkinson's disease can benefit from an exercise regimen that involves boxing. The benefits of boxing for Parkinson's patients would be classified as a(n) _______.
opportunity