Bus-103 Chapters 1 & 2

Firms consider pursuing various _____ as part of their overall growth strategies. - market segments - portfolio analyses - metrics - mission statements

Market segments

What are threats in SWOT analysis? - The negative aspects of the company's external environment - The positive aspects of the company's external environment - A firm's negative attributes - A firm's positive attributes

- The negative aspects of the company's external environment

Step 1 of the marketing plan is focused on ______. - evaluating performance - implementing the marketing mix - the business mission and objectives - setting up the SWOT analysis

- The business mission and objectives

A marketing plan includes all of the following EXCEPT ______. - projected income statements - an analysis of the current marketing situation - a plan on how to pitch investors - marketing objectives and strategy

A plan to pitch to investors (this is part of your business plan)

Which of the following firms is most likely to identify avoiding risks as an objective? - A small, privately owned firm - A small, publicly owned firm - A large, privately owned firm - A large, publicly owned firm

A small, privately owned firm

In the last step of the marketing planning process, the purpose of a(n) ______ evaluation is to figure out problem areas. (Enter one word in the blank.)

performance

Which component of the four Ps refers to the firm's efforts to make the product or service available when and where the customer wants it? - Promotion - Price - Value - Product - Place

place

Excellent customer service helps build a(n) ______. - marketing strategy - customer liability program - effective supply chain - sustainable competitive advantage

sustainable competitive advantage

In a SWOT analysis, a firm's heavy reliance on its joint venture partner when opening new stores may be a potential ______ for the firm. - opportunity - weakness - threat - strength

weakness

How can firms best maintain competitive advantage? - By reinforcing the brand image through merchandise, service, and promotion - By copying competitors' brands, images, products, and promotions - By divesting themselves of the brand - By using the cheapest supplier for all raw materials

By reinforcing the brand image through merchandise, service, and promotion Last one isn't true because competitors can use same suppliers

What are loyalty programs an aspect of? - Customer relationship management - Product development - Operational excellence - Supply chain management

Customer relationship management

Place is the component of the four Ps responsible for ______ value. - organizing - communicating - creating - capturing - delivering

Delivering

In Step 5 of the marketing plan, a firm ______. - conducts a SWOT analysis - evaluates its performance using marketing metrics - identifies opportunities - implements the marketing mix strategy

- Evaluates its performance using marketing metrics

In a firm's SWOT analysis, which of the following would be considered threats? (Choose every correct answer.) - New regulations that restrict sales of the firm's products - Adverse economic conditions - Widespread market dominance by the firm - New entrants that are introducing innovative, alternative products

- New regulations that restrict sales of the firm's products - Adverse economic conditions - New entrants that are introducing innovative, alternative products

What does the term strengths refer to in SWOT analysis? - The positive internal attributes of a firm - The negative attributes of a firm - The negative aspects of the external environment - The positive aspects of the external environment

- The positive internal attributes of a firm

Which of the following are components of a SWOT analysis? (Choose every correct answer.) - Threats - Weaknesses - Opportunities - Sustainability

- Threats - Weaknesses - Opportunities

What are the main purposes of metrics during the final step of the marketing planning process? (Choose every correct answer.) - To consider how best to position the firm - To predict what will happen -To understand the needs of a market segment - To explain why things happened

- To predict what will happen - To explain why things happened

Disney parks offer excellent customer service by doing what? (Choose every correct answer.) - Training all employees to be able to give customers information - Offering seasonal discounts to all customers - Finding and helping people who are lost - Training staff to be extremely friendly to guests

- Training staff to be extremely friendly to guests - Finding and helping people who are lost - training all employees to be able to give customers information

Which of the following involves the process of defining the marketing mix variables so that target consumers have a clear, distinctive, and desirable understanding of what the product does or represents in comparison with competing products? - Strategic planning - Market targeting - Market positioning - Market behavior

Market positioning

Wine connoisseurs, antique collectors, and video game enthusiasts are all examples of different ______. - competitive advantages - SWOT analyses - market segments - mass markets

Market segments

A ______ is a written document that includes the current marketing situation, specified objectives and strategies, action programs, and projected income statements. - strategic plan - marketing plan - financial plan - business plan

Marketing plan

The mission of a majority of businesses typically includes which of the following? - Reducing their carbon footprint - Maximizing stockholders' wealth - Treating employees equitably - Expressing the CEO's political position

Maximizing stockholders' wealth

What is the last step of STP? - Providing - Posing - Procuring - Positioning

Positioning

______, which includes services, constitutes the first of the four Ps. - Place - Product - Pricing - Promotion

Product

Locational excellence is particularly important for which type of firm? - Retailers - Call centers - Manufacturers - Science research facility

Retailers

In a SWOT analysis, ______ refer to the positive internal attributes of the firm. - weaknesses - strengths - threats - opportunities

Strengths

The "T" in STP stands for _____ . (Enter one word in the blank.)

Targeting

In a SWOT analysis, Blank______ represent the negative aspects of the company's external environment. - threats - opportunities - strengths - weaknesses

Threats

A metric is a ______ that quantifies a trend, dynamic, or characteristic. - marketing plan - measuring system - promotional plan - product or service

Measuring system

Firms should emphasize the importance of consistently good customer service to its employees so that good customer service becomes part of the ______. - Customer retention management program - Organizational culture - Marketing structure - Promotional program

Organizational culture

After a firm decides which segments to pursue, it must determine how it wants to be ______ within those segments. - analyzed - positioned - segmented - targeted

Positioned

What is the term that describes a variety of communication disciplines used to provide clarity, consistency, and maximum communicative impact used to promote a product? - Cash cow program - Marketing plan - Customer relationship management - Integrated marketing communications

Integrated marketing communications

In the marketing mix, products and services are the elements that ______ value. - create - evaluate - capture - communicate

Create

In the ______ step of the five-step marketing planning process, marketing managers are responsible for implementing the marketing mix using the four Ps. - fourth - third - second - fifth

Fourth

With ______, the firm first divides the marketplace into subgroups, determines which of those subgroups it should pursue, and finally decides how it should best position its product or service. - STP - the four Ps - SWOT - the marketing mix

STP

In the ______ step of the five-step marketing planning process, marketers evaluate the situation by assessing how various players, both inside and outside the organization, affect the firm's potential for success. - First - Last - Fourth - Second

Second

When conducting a SWOT analysis, adverse economic conditions and intense competition are examples of potential ______ for firms. - strengths - threats - weaknesses - opportunities

Threats

True or false: Market segmentation is the process of dividing the market into groups of customers based on their needs, wants, and characteristics.

True

What is the primary question a mission statement should answer? - What are our short-term goals? - What specific tasks should we perform in the next year? - Who is our target market? - What type of business are we?

What type of business are we?

Which of the following are relative measures of sales and profits? (Choose every correct answer.) - A firm's net profit from lowered prices - A firm's total global sales - A firm's growth as compared to other companies - A firm's increase in sales over the prior year

- A firm's growth as compared to other companies - A firm's increase in sales over the prior year

Which of the following are examples of strengths that could be identified in a SWOT analysis? (Choose every correct answer.) - A reliable network of spokespeople - An increase in taxation - Heavy reliance on a single product line - Strong brand recognition

- A reliable network of spokespeople - Strong brand recognition

Which of the following are frequently used to achieve locational excellence? (Choose every correct answer.) - Good retail store positioning - Loyalty programs - Quality Internet presence - Supply chain management

- Good retail store positioning - Quality internet presence

The upscale hotel chain Hilton wants to compare its growth to another benchmark company. What company should it compare itself to? - Marriott, an upscale hotel chain - Expedia, a travel agency - Best Western, a midrange motel chain - Motel 6, a budget motel chain

- Marriott, an upscale hotel chain

What are reasons why strategic planning may NOT occur sequentially? (Choose every correct answer.) - When new logical alternatives arise - When the economy has had six consecutive months of steady growth and projections indicate that the trend will continue - When a situation analysis necessitates that the mission statement be revised - When the implementation plan cannot move forward because there are too few resources

- When new logical alternatives arise - When the implementation plan cannot move forward because there are too few resources - When a situation analysis necessitates that the mission statement be revised

In a SWOT analysis, possible weaknesses might include any of the following EXCEPT ______. - few locations - lack of direction for the brand - heavy reliance on joint ventures - a new competitor with innovative products

- a new competitor with innovative products

In Step 2 of the five-step marketing planning process, a firm ______. - identifies and evaluates different opportunities through segmentation, targeting, and positioning - assesses how various players affect the firm's potential for success - evaluates its performance using marketing metrics - completes the control phase

- assesses how various players affect the firm's potential for success

Once a marketer has earned a good service reputation, it can sustain this advantage for a long time because ______. - Customers are rarely loyal - Customers will not have other options - A competitor will be hard-pressed to develop a comparable reputation - It will consistently offer the lowest prices

A competitor will be hard-pressed to develop a comparable reputation

According to the portfolio analysis method developed by the Boston Consulting Group, what product is situated in a low-growth market but has high market share? - Cash cows - Question marks - Stars - Dogs

Cash cows

Promotion is the element of the four Ps used by marketers to ______ the value proposition or the value of their offering through a variety of media. - capture - integrate - deliver - communicate

Communicate

A market segment consists of ______ who respond similarly to a firm's marketing efforts. - resellers - competitors - consumers - advertisers

Consumers

Step 5 of the marketing plan, which entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective action, is part of which phase? - Strategic phase - Planning phase - Control phase - Implementation phase

Control

A market penetration strategy, as one of the possible growth options, may be achieved by which of the following? - Finding new markets for the firm's current products - Implementing a standard marketing plan - Encouraging current customers to patronize the firm and the brand more often - Introducing additional products and services to the current buyers

Encouraging current customers to patronize the firm and brand more often

True or false: Firms that use multiple strategies to build a sustainable competitive advantage have difficulty maintaining long-term success.

False, In most cases, a single strategy is not enough to build a sustainable competitive advantage; multiple strategies are necessary for long-term success.

Loyalty programs ______. - Create little or no emotional attachment in customers toward a certain firm - Are offered only by airlines - Give firms the opportunity to learn more about their customers - Are part of the locational excellence element of the marketing strategy

Give firms the opportunity to learn more about their customers

Of the following, who would require access to a company's marketing plan? - Government - Competitors - Manufacturers - Investors

Investors

Which of the following is NOT an example of customer loyalty? - Only purchasing light fixtures at Home Depot - Only purchasing holiday decorations from World Market - Only purchasing dresses at Anthropologie - Only purchasing organic products

Only purchasing organic products

What is the only marketing activity that actually brings in revenue? - Promotion - Pricing - Placement - Production

Pricing

Market ______ is the process of dividing the market into groups of consumers according to their needs, wants, or characteristics. - positioning - targeting - planning - segmentation

Segmentation

Licensing of the brand, a reputation for quality, and a large number of retail stores are examples of potential ______ that a firm may identify during a SWOT analysis. - threats - weaknesses - strengths - opportunities

Strengths

Firms can achieve operational efficiencies by developing which of the following? - Strong relationships with vendors - Inconsistent distribution and information systems - More uniquely segmented markets - Superior market positioning

Strong relationships with vendors

The process of deciding which specific market segment(s) to pursue is known as ______. - diversifying - segmenting - targeting - positioning

Targeting

True or false: Operational efficiency generates good value for customers and improves profitability for the firm by keeping costs down.

True

True or false: Possible opportunities for manufacturers include an untapped market, international expansion, and growing interest in "green" products.

True

In which type of diversification strategy does a firm enter into an entirely new business? - Competitive - Unrelated - Metric-driven - Related

Unrelated

A competitive advantage based on location ______. - is unsustainable because location is unimportant - is sustainable when real estate is difficult or expensive to obtain - is unsustainable because customer service is more important - is sustainable when the retail location is close to similar stores

is sustainable when real estate is difficult or expensive to obtain

A market ______ growth strategy focuses on increasing sales of the firm's current products to its current target markets. - acquisition - development - management - penetration

penetration

In ______ analysis, management evaluates the firm's various products and businesses, then allocates resources according to potential profit outlook. . - portfolio - operations - growth options - contingency

portfolio

The ______ strategy offers a new product or service to a firm's current target market. - market development - product expansion - product development - market penetration

product development

A ______ is a group of products that consumers perceive as similar in some way. -portfolio unit - marketing mix - product line - product mix

product line

General Electric sells a broad array of products for both businesses and consumers, from jet engines to light bulbs. GE's kitchen appliances would be considered ______. - co-branded products - a market segment - a product mix - a product line

product line

In a(n) _______ diversification opportunity, the current target market and/or marketing mix shares something in common with the new opportunity.

related

Relative market share is used to provide managers with a product's relative ______ compared with that of the largest firm in the industry. - weakness - threats - mix - strength

strength

STP includes which of the following? (Choose every correct answer.) - Segmentation - Positioning - Strengths - Pricing

- Segmentation - Positioning

A firm can begin to implement the marketing mix immediately after which step? - After it has finished segmentation, targeting, and positioning - After it has written its mission statement - After it has completed a SWOT analysis - After it has employed marketing metrics to evaluate performance

- After it has finished segmentation, targeting, and positioning

Which statement is true regarding SBUs? - An SBU may have a different mission or objective from other divisions. - SBUs develop as cash cows. - The term SBU stands for "segmented business unit." - The term refers to parent companies.

- An SBU may have a different mission or objective from other divisions.

What factors that affect a sales manager's performance are outside the manager's control? (Choose every correct answer.) - An economic downturn - Successful competition - An inadequate sales force - Poor implementation of a sales strategy

- An economic downturn - Successful competition

Which process is part of market positioning? - Maximizing threats to the competition in order to minimize consumers' perception of a product's value - Establishing clear and efficient managerial hierarchies within marketing divisions - Clarifying marketing mix variables to provide a basis for consumers' evaluation of a product - Evaluating and targeting external companies for potential internal partnership

- Clarifying marketing mix variables to provide a basis for consumers' evaluation of a product

What are the three major phases of the marketing plan? (Choose every correct answer.) - Control - Implementation - Planning - Organization

- Control - Implementation - Planning

A mission statement ______. - details how a firm can avoid risks - maximizes profits and dividends - enhances the value of a firm's products - defines the scope of activities a firm plans to undertake

- Defines the scope of activities that a firm plans to undertake

Firms achieve operational excellence through which of the following? (Choose every correct answer.) - Efficient operations - Strong relationships with suppliers - Reducing focus on human resources - Good supply chain management

- Efficient operations - Good supply chain management - Strong relationships with suppliers

After a firm has identified a group of market segments, it does which of the following? (Choose every correct answer.) - Identifies which groups will respond similarly to its marketing efforts - Evaluates each segment's attractiveness - Uses the targeting process - Determines which segments to pursue

- Evaluates each segment's attractiveness - Uses the targeting process - Determines which segments to pursue

During which step of the marketing plan do marketers make important decisions about how they will allocate their scarce resources to their various products and services? - Implementing the marketing mix - Identifying and evaluating opportunities - Defining the business mission - Evaluating performance

- Implementing the marketing mix

Which of the following are true regarding market share? (Choose every correct answer.) - It is responsible for inventory of the product. - It is what defines profitability. - It defines a product's strength in a particular market. - It is the percentage of a market accounted for by a specific entity.

- It defines a product's strength in a particular market - It is the percentage of a market accounted for by a specific entity

What are outcomes of setting prices too high or too low? (Choose every correct answer.) - Optimal profits - High volume - Low volume - Less-than-optimal profits

- Low volume - Less-than-optimal profits

A portfolio analysis involves which of the following? - Management identifies and evaluates opportunities using STP. - Management allocates its resources to products with the greatest potential to be profitable. - Management evaluates the firm's various products and businesses. - Management develops the marketing mix for each SBU.

- Management allocates its resources to products with the greatest potential to be profitable. - Management evaluates the firm's various products and businesses.

What does the term weaknesses refer to in SWOT analysis? - Negative attributes internal to the firm - Positive aspects of the external environment - Positive attributes internal to the firm - Negative aspects of the external environment

- Negative attributes internal to the firm

Green marketing efforts and expansion outside the United States are potential ______ for a firm. - opportunities - threats - strengths - weaknesses

- Opportunities

In a SWOT analysis, ______ pertain to positive aspects of the external environment. - weaknesses - opportunities - threats - strengths

- Opportunities

Which are components of SWOT analysis? (Choose every correct answer.) - Opportunities - Segmentation - Weaknesses - Target markets

- Opportunities - Weaknesses

Step 2 of a marketing plan involves which of the following? - Evaluating opportunities - Performing a situation analysis using SWOT - Evaluating performance - Creating a mission statement

- Performing a situation analysis using SWOT

Which of the following are steps in the STP process? (Choose every correct answer.) - Positioning products and services to meet the needs of the chosen targets - Countering negative aspects of the external environment - Dividing the marketplace into subgroups - Determining which subgroups should be pursued

- Positioning products and services to meet the needs of the chosen targets - Dividing the marketplace into subgroups - Determining which subgroups should be pursued

Which of the following are included in the four major growth strategies? (Check all that apply.) - Product development - Market analysis - Market penetration - Market development

- Product development - Market penetration - Market development

Some commonly used financial performance metrics include which of the following? (Choose every correct answer.) - Mission statements - SWOT analysis - Profits - Sales revenue

- Profits - Sales revenue

According to the portfolio analysis method developed by the Boston Consulting Group, what product is situated in a high-growth market but has relatively low market share? - Dogs - Cash cows - Question marks - Stars

- Question mark

What are opportunities in SWOT analysis? - The positive internal attributes of a firm - The negative attributes of a firm - The positive aspects of the external environment - The negative aspects of the external environment

- The positive aspects of the external environment

Which statement about strategic planning is true? - The process can move back and forth between steps, depending on the situation. - A strategy created without following the steps in order usually ends up failing or doing poorly. - The steps of the process must always be followed in order. - Skipping a step of the process is fine, but the steps should not be performed out of order.

- The process can move back and forth between steps, depending on the situation.

Why does a firm need a marketing plan? (Choose every correct answer.) - To clearly state its overall objectives - To provide a reference point for evaluating if objectives have been met - To explain how overall objectives will be met - To detail the required human resources for the firm - To explain previous financial objectives

- To clearly state its overall objectives - To provide a reference point for evaluating if objectives have been met - To explain how overall objectives will be met

What is the purpose of evaluating performance during the last step of the marketing plan process? - To identify growth and effectiveness relative to the competitors - To identify and explain performance above or below expectations - To highlight employee successes - To identify potential layoffs or additional employees required

- To identify and explain performance above or below expectations

Why do firms use metrics in the last step of the marketing plan? - To make appropriate adjustments to performance - To develop integrated marketing communications - To compare results across regions, product lines, and time periods - To help stakeholders understand the firm's mission statement

- To make appropriate adjustments to performance - To compare results across regions, product lines, and time periods

Which of the following is LEAST effective when building a sustainable competitive advantage? - Using four or five strategies - Using two or three strategies - Using six or more strategies - Using only a single strategy

- Using only a single strategy

What are the four components of a SWOT analysis? (Choose every correct answer.) - Technology - Weaknesses - Strengths - Threats - Organization - Opportunities

- Weaknesses - Strengths - Threats - Opportunities

In Step 1 of the planning phase, a firm ______. - defines the mission and/or vision of the business - implements the marketing mix - evaluates its marketing performance - conducts a SWOT analysis

- defines the mission and/or vision of the business

Step 5 of the marketing plan involves ______. - defining the firm's mission and objectives - evaluating the results of the strategy and implementation program - implementing the marketing mix elements for customers - performing the STP process

- evaluating the results of the strategy and implementation program

Step 3 of the five-step marketing planning process ______. - is part of the planning phase - involves implementing the marketing mix - involves segmentation, targeting, and positioning (STP) - includes SWOT analysis

- involves segmentation, targeting, and positioning (STP)

Step 4 of the five-step marketing planning process ______. - is part of the analysis phase - is the point at which a firm implements the four Ps - is part of the planning phase - identifies opportunities for a firm

- is the point at which a firm implements the four Ps

Revenues and profits are commonly used ______ to assess performance. - strategies - mission statements - metrics - segments

- metrics

The three major phases of the marketing plan are ______. - human resource management, vendor relations, and competitive advantage - locational excellence, product excellence, and operational excellence - planning, implementation, and control - marketing strategy, macro strategies, and sustainable competitive advantage

- planning, implementation, and control

A ______ is a division of the firm itself that can be managed and operated independently from other divisions. - target market - marketing department - market segment - strategic business unit (SBU)

- strategic business unit (SBU)

Step 5 in the marketing plan process is when a firm ______ the outcome of the strategy and implementation process. - sustains - evaluates - builds - cancels

Evaluates

In the ______ phase of the five-step marketing planning process, marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning. - performance - planning - control - implementation

Implementation

Which statement about product excellence is true? - It yields cost savings through economies of scale. - It is primarily achieved through efficient operations and efficient production. - It generally does not result in meaningful competitive advantage. - It is achieved by having products with high perceived value and effective branding and positioning.

It is achieved by having products with high perceived value and effective branding and positioning.

Which of the following is true regarding price? - It should be as high as legally allowed. - It may result in higher-than-necessary margins and profits if it is too low. - It should be based on the value that the customer perceives. - It should always be based on competitors' prices.

It should be based on the value that the customer perceives.

A strategy that employs existing products or services to reach new market segments is called ______. - market development - market penetration - diversification - product development

Market development

What growth strategy is being used when a company that makes protein bars for long-distance runners starts selling the same bars to busy parents as a quick breakfast? - Product development - Diversification - Market development - Market penetration

Market development

In portfolio analysis, the ______ measures how fast a particular market is expanding, thus revealing how attractive that market is. - market growth rate - number of competitors - relative market share - market size

Market growth rate

______ is the percentage of a market held by a specific entity. - Market share - Market segment - Portfolio analysis - The BCG matrix

Market share

Which type of excellence is achieved through efficient operations, excellent supply chain management, and strong relationships with suppliers? - Locational excellence - Customer excellence - Operational excellence - Product excellence

Operational Excellence

What is the second element of the marketing mix? - Promotion - Pricing - Product - Place

Pricing

Firms that achieve a sustainable competitive advantage through their merchandise and service offerings, and through effective branding and positioning, are doing so using ______ excellence. - product - operational - locational - customer

Product

Firms that maintain their sustainable competitive advantage through ______ excellence have often done so by investing in their brand and constantly reinforcing their image though their merchandise.

Product

A smartphone manufacturer makes a new smartwatch that pairs well with its existing phones. This is an example of which growth strategy? - Market development - Market penetration - Diversification - Product development

Product development