Marketing Chapter 2

When pursuing a market penetration strategy, a company aims to improve sales by ________.

Increasing distribution efforts in its current market

ProductWhich of the following is included in the "place" component of a company's marketing mix?

Inventory

Which of the following measures the profits generated by investments in marketing activities?

Marketing ROI

Which of the following is true of marketing ROI?

Marketing ROI measures the profits generated by investments in marketing activities.

________ involves looking at whether a company's basic strategies are well matched to its opportunities.

Strategic control

Which of the following is true of strategic planning in a firm?

Strategic planning deals with adapting the firm to take advantage of opportunities in its changing environment.

Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in Terrania. Its closest competitor, Febex, has a 25% share in the market, while three other drugs split the remainder. Which of the following would most indicate that Cetaprin would be classified as a star according to the BCG matrix?

The Terranian market for healthcare products is expanding rapidly.

Which of the following best describes the value chain of a company?

The series of departments that design, produce, market, deliver, and support a firm's products

When using a harvesting strategy for a particular strategic business unit, a company ________.

focuses on gaining short-term cash flow regardless of long-term concerns

Which of the following products would CypressSound classify as a cash cow in on its BCG matrix?

Xpress, an MP3 player, has a high market share, but the market for MP3 players is not expected to grow significantly.

Which of the following best describes a company's business portfolio?

the collection of businesses and products that make up the company

Which of the following groups is included in a company's value chain?

Employees

Which of the following is a tool for monitoring strategic marketing performance?

A marketing dashboard

Ainsworth's is a toy manufacturer based in Australia. Which of the following indicates that the company is following a diversification strategy?

Ainsworth's enters the U.S. market with a line of children's clothing.

Ainsworth's is a toy manufacturer based in Australia. Which of the following indicates that the company is following a market development strategy?

Ainsworth's introduces its toys in the Indian and South-East Asian markets.

Ainsworth's is a toy manufacturer based in Australia. Which of the following indicates that the company is following a market penetration strategy?

Ainsworth's licenses toy rights for a popular cartoon character in order to boost its sales.

In the BCG matrix, ________ refer to low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.

Cash cows

Which of the following products would CypressSound classify as a question mark in on its BCG matrix?

Cyan, a cell phone that is specially designed for music lovers, has a very low market share, though the market is growing steadily.

Which of the following best describes the functional organizational format of marketing departments?

Different marketing activities are headed by specialists such as a sales manager, an advertising manager, a marketing research manager, or a customer-service manager.

Which of the following is included in the "price" component of a company's marketing mix?

Discounts

In the BCG matrix, ________ are low-share businesses and products in a market that is not expected to grow. They may generate enough cash to maintain themselves but do not promise to be large sources of cash.

Dogs

________ refers to reducing the business portfolio by eliminating products that no longer fit the company's overall strategy.

Downsizing

Which of the following groups is included in both a company's value chain and its value delivery network?

Employees

Which of the following is a primary characteristic of strategic control rather than operating control?

Looking at whether the company's basic strategies are well matched to its opportunities

Acme Inc., has modified the production processes of its widgets and gadgets in order to enter the Eastern European market. Acme is likely following a ________ strategy.

Market development

Greyzone, a company manufacturing office furniture, is based in Terrania, but is looking to sell its products in other countries as well. The company identifies the country of Nyevka as a good option, as the cultures and tastes of consumers in the two countries are similar. Which of the following strategies is Greyzone using?

Market development

A company's increasing its sales in a particular market without modifying its products is referred to as ________.

Market penetration

Greyzone, a company manufacturing office furniture, is based in Terrania. Greyzone aims to increase sales of its products in Terrania by increasing its advertising efforts and undertaking frequent promotional events. Which of the following strategies is Greyzone using?

Market penetration

A group of consumers who respond in a similar way to a given set of marketing efforts is the company's ________.

Market segment

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors is called ________.

Market segmentation

Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________.

Marketing control

The process that turns marketing plans into marketing actions to accomplish strategic marketing objectives is called ________.

Marketing implementation

Which of the following is true of company mission statements?

Mission statements should be defined in terms of satisfying customer needs.

Greyzone, a company that creates customized furniture, is based in Terrania, but is looking to enter other countries as well. The company identifies the country of Nyevka as a good option, as the entry barriers to new companies are low. Which of the following would most indicate that Greyzone is following a diversification strategy?

Noting that Nyevka lacks well-established suppliers of office equipment, Greyzone begins to supply these products.

In a SWOT analysis, ________ refer to external factors that the company may be able to exploit to its advantage.

Opportunities

Channels, inventory, logistics, and transportation are included in the ________ component of the marketing mix.

Place

When viewing the market from a buyer's point of view, "convenience" corresponds to ________ in the four Ps according to the seller's point of view.

Place

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

Positioning

In the marketing mix, design, packaging, services, and features are all included in the category of ________.

Product

A ________ is made up of the company, its suppliers, its distributors, and its customers, who partner with each other to improve the performance of the entire system.

Value-delivery network

Which of the following companies is using a divesting strategy?

When sales of its clothing division decline, Blackstone's sells off the division to a competitor.

Which of the following best describes product positioning?

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

The market penetration and market development strategies are similar in that ________.

both strategies involve selling the company's current products

The product development and diversification strategies are similar in that ________.

both strategies involve the development of a new product

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

diversification

Which of the following best describes market segmentation?

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors

Which of the following criteria does the Boston Consulting Group approach use to provide a measure of market attractiveness?

market growth rate

Starbucks has introduced a debit card that lets its customers prepay for coffee and snacks. This effort by Starbucks management is an example of ________.

market penetration

In the BCG growth-share matrix, stars refer to ________.

products with a high market share in a market with a high growth rate

In the BCG growth-share matrix, question marks refer to ________.

products with a low relative market share in a market with high growth prospects

Which of the following criteria does the Boston Consulting Group approach use to provide a measure of the company's strength in the market?

relative market share

When divesting a particular strategic business unit, a company ________.

sells off or phases out the strategic business unit

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

the company developing improved production technology

In a SWOT analysis, which of the following would be considered a weakness for a company?

the company's competitor developing improved production technology

Which of the following is true of the growth-share matrix?

A company should invest in a question mark rather than a dog.

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

Market targeting

Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in Terrania. Its closest competitor, Febex, has a 25% share in the market, while three other drugs split the remainder. Which of the following would most indicate that Cetaprin would be classified as a cash cow according to the BCG matrix?

The demand for analgesic drugs in the Terranian market is expected to remain stable.

Nathan is conducting a portfolio analysis for his company. Which of the following activities would this involve?

evaluating the attractiveness of an SBU's market and the strength of its position in the market

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The planning team comes up with a list of options for the new mission statement. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements should the company pick?

to give customers the complexion they dream about by providing a range of products suited to their needs