Marketing Exam 2

Which of the following will most likely be included in the "price" component of a company's marketing mix?

discounts

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

diversification

A company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices.

True

An organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create.

True

Many companies have dropped formal strategic planning models like the BCG because they can be difficult, time consuming, and costly to implement.

True

Which of the following companies is using a divesting strategy?

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

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

Xpress - an MP3 player that has a high market share in a market that is not expected to grow significantly

Ainsworth is a toy manufacturer based in Australia. Which of the following most likely indicates that Ainsworth is following a diversification strategy?

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

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

Downsizing

"At CL Online, we create customer connectivity, anytime, anywhere" is a product-oriented mission statement.

False

A company's customer value delivery network does not include members external to the organization.

False

Many SBUs start out as stars and move into the question mark category if they succeed.

False

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

It deals with adapting the firm to take advantage of changing marketing opportunities.

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 the country of Terrania. Its closest competitor, Febex, has a 25% share in the market, while four other analgesic brands split the remainder. Which statement indicates that Cetaprin is a cash cow according to the BCG matrix?

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

Business portfolio analysis is defined as the process in which management ________. Correct!

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

In the BCG matrix, ________ refer to low-growth, high-share businesses or products.

cash cows

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

implementation

In the BCG growth-share matrix, question marks refer to products or businesses with a ________.

low market share in a market with high growth prospects

Which of the following criteria provides a measure of market attractiveness in the Boston Consulting Group approach?

market growth rate

EcoBean, a chain of cafes, has introduced a Special Shopper Card that allows customers to pay in advance for coffee and snacks. This effort by EcoBean management is most likely an example of ________.

market penetration

A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment.

mission statement

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

obsolete technologies used by the company

Design, packaging, service, and features are elements of the ________ component of a company's marketing mix.

product

Under Armour's decision to add athletic shoes to its apparel line in 2006 is an example of a ________ strategy.

product development

According to the BCG matrix, products or businesses with a low share of market in a high-growth industry are considered ________.

question marks

Both market penetration strategies and market development strategies primarily involve ________.

selling a company's current products

CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example, it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis?

strength

In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance.

threats

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?`

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