MKTG 3310 Chapter 2 Test Prep

A firm with a "cash cow" product is most likely to A. have a large market share in an industry with high growth rates. B. invest just enough money to maintain strong sales. C. discontinue the product. D. invest heavily in its production and marketing to create and communicate value. E. reallocate the marketing resources available for the cash cow product to products with more profit potential.

B

The mission statement of a firm A. provides a shared purpose and motivation for the customers of the firm. B. provides a standard to ensure that the business never strays too far from its core goals and values. C. defines the way external stakeholders communicate with the firm. D. should be framed based on the long-term marketing strategy of a firm. E. should focus on as many goals as possible to ensure that all of the firm's plans are covered in the statement.

B

Which of the following is a feature of the executive summary? A. It provides a standard to ensure that the business never strays too far from its core goals and values. B. It must be done after the rest of the marketing plan has been completed. C. It is a concise affirmation of the firm's long-term purpose. D. It is the primary influence on a firm's overall marketing strategy. E. It provides employees with a shared sense of ambition, direction, and opportunity.

B

Which of the following is a function of the marketing strategy in a marketing plan? A. analyzing the marketing environment B. defining the target market C. monitoring the marketing plan D. synopsizing the marketing plan's main points E. detailing financial projections

B

Zbar, a mobile phone-manufacturing company, decides to pursue a market development strategy to further its business prospects. In this situation, which of the following actions falls in line with Zbar's latest strategic direction? A. Zbar tries to get existing customers to buy its new easy-to-use phones for their grandparents. B. Zbar enters a price-sensitive market with its low-end phones. C. Zbar announces the creation of a new phone. D. Zbar persuades its customers to buy more accessories for their phones. E. Zbar tries to get existing customers to buy a new version of their mobile phones for their spouses.

B

The mission statement of a firm A. is the primary strategic planning tool for directing and coordinating the marketing effort of a firm. B. should not influence the firm's strategic planning. C. is an action-oriented document or playbook that guides the analysis, implementation, and control of the firm's marketing strategy. D. is a concise affirmation of the firm's long-term purpose. E. requires the input, guidance, and review of employees throughout the various departments of the firm.

D

The two metrics used to evaluate a firm's profitability are customer acquisition and A. gross margin. B. market share. C. marketing expenditures. D. customer profitability. E. sources of revenue.

D

Which of the following is a major risk associated with licensing? A. The licensor has to adhere to regulations of the licensee's country. B. The licensor loses unique insight about its local consumers. C. The licensee might improve on the licensor's technology and ask the licensor to pay for it. D. The licensor may be inadvertently creating a future competitor in the form of the licensee. E. The licensee is free to modify the licensor's proprietary technology.

D

A firm measures its effectiveness in using the resources it has allocated to its marketing effort by use of which tool? A. resource analysis B. market share analysis C. profitability analysis D. revenue analysis E. return on marketing investment

E

Franchising is an attractive method of entering foreign markets because A. franchisees have to adhere to the regulations of the franchisor's country. B. it increases the ease of direct oversight over the franchisee. C. franchisees can use and modify the technology and trademarks as they deem fit. D. franchisees provide the knowledge and information required to run the business. E. franchisees assume the majority of the capital costs and human resource issues.

E

Joint ventures work best when the partners' A. proprietary skills are interchangeable. B. core business interests lie in different industries. C. firms do not create a new entity. D. strategic goals diverge. E. competitive goals diverge.

E

Ruth designs games for mobile operating systems such as iOS and Windows. The demand for games on mobile devices is high. Ruth's latest game, Viper Slash, is yet to generate profitable sales despite receiving rave reviews. According to the BCG matrix, Viper Slash can be classified as a A. threatened product. B. cash cow product. C. star product. D. dog product. E. question mark product.

E

A market penetration strategy A. emphasizes selling more of existing goods and services to existing customers. B. revolves around discontinuing older products in favor of selling new products in new markets. C. focuses on selling existing goods and services to new customers. D. seeks to attract new customers by offering new products that are unrelated to the existing E. products produced by the organization. involves creating new goods and services for existing markets.

A

Vida is an Italian car manufacturer with manufacturing plants all over the world, including the United States. In the context of SWOT analysis, which of the following can be classified as one of Vida's strengths? A. Vida recently recruited two senior engineers from one of its major competitors. B. There is a recent increase in demand for hybrid cars in the United States. C. The prices of fuel have dropped, encouraging customers to buy more cars. D. One of Vida's component suppliers has decided to start manufacturing cars. E. The auto industry all over the world is booming.

A

_____ is the process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives. A. Strategic planning B. Situation analysis C. Marketing strategy D. Stakeholder management E. Diversification

A

A product possesses a competitive advantage when it enjoys a superior position over competing products because A. competing products are manufactured in small numbers. B. the product is in the "question mark" product category of BCG matrix. C. consumers believe it has more value than other products in its category. D. the competing firms are pursuing different marketing strategies. E. the manufacturing firm is pursuing a product development strategy.

C

In the context of a SWOT analysis, which of the following can be classified as an opportunity for a manufacturing firm? A. an internal production technique that increases efficiency by 30 percent B. a lawsuit filed by an environmental outfit concerning environmental pollution C. a rise in demand for products that the firm manufactures D. a renewed business contract with a supplier for raw materials E. a technological breakthrough by its research and development department

C

Resco is an apparel manufacturer whose products are carried only by two major retailers in the United States. In the context of SWOT analysis, which of the following can be classified as a weakness of Resco in this scenario? A. One of the retailers tells Resco that it will carry Resco's products with its own brand name. B. Resco's research and development department is on the verge of a major breakthrough and needs extra funding. C. Resco's manufacturing units use legacy technology that sometimes leads to backorders. D. A cargo truck carrying Resco's shipment turned over on a highway and went up in flames. E. One of the retailers plans to start manufacturing its own brand of clothes.

C

The _____ is an action-oriented document or playbook that guides the analysis, implementation, and control of the firm's marketing strategy. A. market requirements document B. business record C. marketing plan D. marketing collateral E. marketing operation document

C

The primary strategic planning tool for directing and coordinating the marketing effort is the A. marketing research. B. marketing mix. C. marketing plan. D. marketing trend. E. marketing concept.

C