chapter 2 BMG 250

Which element of the marketing mix relates to services like warranties and guarantees that accompany a good or service? A. price B. product C. place D. promotion E. position

B. product

Read the following statements regarding strategic planning to determine which is NOT accurate. A. Strategic planning is a one-time process completed when a firm outlines its objectives. B. Strategic planning helps ensure marketers will select the right marketing mix strategies. C. The primary tool of strategic planning is the marketing plan. D. Strategic planning can greatly increase the likelihood of success. E. Strategic planning can be used on a personal level to help accomplish goals.

A. Strategic planning is a one-time process completed when a firm outlines its objectives.

What element will ensure a business never strays too far from its core goals and values, especially if the marketing plan needs to be modified to fit the changing times? A. a sound mission statement B. a concise executive summary C. a complete SWOT analysis D. a developed organizational plan E. a solid strategic plan

A. a sound mission statement

According to your text, why is establishing specific, measurable, and realistic objectives especially valuable for nonprofits? A. because of their limited resources and their goal of providing the maximum amount of services to their constituents in need B. because nonprofits do not have the human resources available to larger firms to carry out their marketing plans C. because nonprofits often rely on volunteers to carry out its mission so the objectives need to be clear D. because nonprofits do not typically engage in strategic planning, they take more care in establishing their objectives E. because most nonprofits do not establish a mission statement

A. because of their limited resources and their goal of providing the maximum amount of services to their constituents in need

Typically the least risky option for entering international markets is A. exporting. B. joint venture. C. licensing. D. direct ownership. E. franchising.

A. exporting.

Gavin wants to perform a situation analysis of his business to help him make strategic decisions for the future. The situation analysis will tell Gavin all of the following EXCEPT: A. financial projections. B. marketplace trends. C. the firm's strengths and weaknesses. D. current competitive forces. E. market conditions.

A. financial projections.

The actions a firm must take to accomplish the marketing objectives established in its mission statement and strategic planning process are outlined in the A. marketing strategy. B. situation analysis. C. market summary. D. executive summary. E. organizational plan.

A. marketing strategy.

How often should firms undertake the task of strategic planning? A. on a continual basis as conditions change B. only once, when determining the firm's objectives C. only once, when developing the marketing plan D. two or three times, to make sure all items are covered E. it is not a necessity to develop a strategic plan

A. on a continual basis as conditions change

When the makers of V8 vegetable juice noticed that sales of its original product were stabilizing, they decided to offer a new product, one that offered a full serving of vegetables and a full serving of fruit. They called the product V8 V-Fusion and they marketed it to their original V8 customers in hopes of increasing sales. This is an example of what kind of marketing strategy? A. product development B. market development C. market penetration D. diversification E. positioning

A. product development

According to the BCG Matrix, what defines a cash cow? A. products that have a large market share in an industry with low growth rates B. products that have a large market share in an industry with high growth rates C. products that have a small market share in an industry with low growth rates D. products that have a small market share in an industry with high growth rates E. products that have a small market share in an industry with steady growth rates

A. products that have a large market share in an industry with low growth rates

The activities that an organization uses to reach its target market such as advertising, personal selling, and public relations are all part of the marketing mix element known as A. promotion. B. product. C. place. D. price. E. position.

A. promotion.

Which forecast projects how many units of a product the company expects to sell during a specific time period? A. sales forecast B. expense forecast C. distribution forecast D. production forecast E. break-even analysis

A. sales forecast

Which of the following is a risk of licensing in an international market? A. the licensor may create its own competition B. the licensor may misuse trademarks C. locally owned licensees don't know much about the local customers D. licensor doesn't know enough about the brand E. licensor has to pay the licensee money to enter the arrangement

A. the licensor may create its own competition

In a SWOT analysis, current and potential external factors that may challenge the firm's short- and long-term performance are referred to as A. threats. B. weaknesses. C. obstacles. D. opportunities. E. hazards.

A. threats.

Read the following to determine which one accurately depicts what is contained in an expense forecast. A. an estimate of how many units of product the company expects to sell during a specific time period B. an estimate of the costs the company will incur to create, communicate, and deliver the product C. the total amount of debt owed by the company, both short-term and long-term D. the amount of money the company must pay suppliers to warehouse and ship the product to stores E. an estimate of the market share for any given product and the cost incurred to reach that market

B. an estimate of the costs the company will incur to create, communicate, and deliver the product

Why is franchising an attractive method of entering a foreign market? A. because the franchisor has no liability if the business fails B. because the franchisee assumes the majority of the capital costs and human resource issues C. because there are very little risks involved in franchising D. because the franchisor does not have to put up any capital to get the business off the ground E. because the franchisee has no liability if the business fails

B. because the franchisee assumes the majority of the capital costs and human resource issues

Which of the following is NOT one of the five major strategic options for entering the international marketplace? A. exporting B. capital investment C. licensing D. direct ownership/investment E. franchising

B. capital investment

Which method of entering a foreign market carries with it the most risk? A. joint venture B. direct ownership C. exporting D. licensing E. contract manufacturing

B. direct ownership

Which method of entering a foreign market has a domestic firm actively managing a foreign company or overseas facility? A. joint venture B. direct ownership C. exporting D. licensing E. contract manufacturing

B. direct ownership

If Geico Insurance began selling t-shirts featuring its infamous gecko to try to capitalize on its brand name, this would be an example of A. positioning. B. diversification. C. product development. D. market development. E. market penetration.

B. diversification.

The five key components of the marketing plan are: A. mission statement, situation analysis, promotion strategy, financials, and controls B. executive summary, situation analysis, marketing strategy, financials, and controls C. executive summary, market positioning, marketing strategy, financials, and implementation D. mission statement, situation analysis, marketing strategy, financials, and controls E. executive summary, situation analysis, positioning, financials, and implementation

B. executive summary, situation analysis, marketing strategy, financials, and controls

According to your text, perhaps the most common mistake a firm makes when conducting a SWOT analysis is A. not looking at the firm's financial statements. B. failing to separate internal issues from external issues. C. underestimating the competitive environment. D. failing to involve all departments in the analysis. E. looking at only the firm's strengths.

B. failing to separate internal issues from external issues.

Because most nonprofits work on a very tight marketing budget, they should pay especially close attention to what sections of the marketing plan? A. situation analysis and implementation B. implementation and accountability C. executive summary and financials D. situation analysis and marketing strategy E. controls and financials

B. implementation and accountability

Which marketing strategy is being employed by a firm that is seeking to expand in foreign markets? A. market penetration B. market development C. product development D. diversification E. positioning

B. market development

Once the situation analysis is complete, marketers focus on defining their A. competition. B. marketing strategy. C. mission statement. D. strategic plan. E. SWOT analysis.

B. marketing strategy.

A concise affirmation of a firm's long-term purpose is known as its A. executive summary. B. mission statement. C. organizational directive. D. long-range plan. E. marketing plan.

B. mission statement.

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market is referred to as A. labeling. B. positioning. C. zoning. D. leveraging. E. targeting.

B. positioning.

A good mission statement should A. contain as many goals as possible. B. provide motivation for the employees of the firm. C. be company oriented. D. ask the question What is our product? E. focus on when to market the product.

B. provide motivation for the employees of the firm.

Products that are typically new to the market and require significant marketing investment in promotion, product management, and distribution are classified as A. dogs. B. question marks. C. cash cows. D. stars. E. skunks.

B. question marks.

According to your text, which of the following is a reason why the use of licensing to enter international markets has increased significantly in recent years? A. increased viewership of sporting events B. rising research and development costs C. less regulation D. longer product life cycles E. greater profit margins

B. rising research and development costs

What two forecasts are used in a break-even analysis? A. production and sales B. sales and expense C. profit and loss D. market share and sales E. revenue and production

B. sales and expense

What document provides a one- to two-page summary of the marketing plan's main points? A. the mission statement B. the executive summary C. the SWOT analysis D. the organizational summary E. the strategic plan

B. the executive summary

What part of the financial section of a marketing plan provides readers of the plan a bottom-line estimate of the organization's profitability? A. the profit estimates B. the financial projections C. the cost detail D. the accounting detail E. the accounting projections

B. the financial projections

Because it helps firms understand where they are currently and how best to move forward, what element is often considered the foundation of a marketing plan? A. the executive summary B. the situation analysis C. the marketing strategy D. the financials E. the controls

B. the situation analysis

Review the following statements to determine which one is NOT accurate regarding the direct ownership method of entering a foreign market. A. Direct ownership is the riskiest method of entering a foreign market. B. Direct ownership is a good option when there are similarities between the foreign and domestic cultures. C. Direct ownership does not allow the firm much control over its intellectual property. D. Direct ownership requires more commitment than any other method of entering a foreign market. E. Direct ownership is a good option when there is very little political risk.

C. Direct ownership does not allow the firm much control over its intellectual property.

Joe's Pizza Parlor is a late-night pizza and sandwich shop located on a college campus. Joe recently conducted a SWOT analysis. Compare each of the following to determine which one is a weakness for Joe's Pizza Parlor. A. A new pizza shop has opened up down the street. B. A graduate of the college, Joe is well-liked in the community. C. Joe finds it hard to staff the late night shifts which are his busiest times. D. Joe is worried about the push for healthier eating. E. Joe is concerned that the weak economy will lead to fewer students dining out.

C. Joe finds it hard to staff the late night shifts which are his busiest times.

An arrangement in which a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company's market, is known as A. exporting. B. contract manufacturing. C. a joint venture. D. licensing. E. direct ownership.

C. a joint venture.

Compare each of the following to determine which one accurately describes a joint venture. A. a legal process in which one firm pays to use or distribute another firm's resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge B. a contractual arrangement in which a fee is paid to have the right to open a business using the parent company's business name and to receive marketing and operational support C. an arrangement where a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company's market D. an arrangement in which a domestic firm actively manages a foreign company or overseas facilities E. a contractual arrangement where a foreign firm agrees to manufacture products for a domestic firm.

C. an arrangement where a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company's market

Why is it necessary to have an outline of the organizational structure in the controls section of the marketing plan? A. because it specifies how the marketing plan affects each and every department in the organization B. because it helps to identify what the weak links are in the organization C. because it helps hold specific departments and individuals responsible for the parts of the plan that fall under their control D. because it provides a detailed account of how the specific actions of the plan will be carried out and who will be responsible for carrying them out E. because it shows how the company will be affected if the marketing plan does not achieve results

C. because it helps hold specific departments and individuals responsible for the parts of the plan that fall under their control

The superior position a product enjoys over competing products if consumers believe it has more value than other products in its category is referred to as a A. marketing advantage. B. value proposition. C. competitive advantage. D. product edge. E. product plus.

C. competitive advantage.

The final section in most marketing plans is the A. financial section. B. situation analysis. C. controls section. D. marketing strategy. E. executive summary.

C. controls section.

A good mission statement should be oriented around the A. company. B. financial plan. C. customer. D. product. E. marketing plan.

C. customer

Travis has an athletic shoe store and is currently preparing a market summary. To be most effective, the competition section of his market summary should A. only list direct competitors. B. only focus on competitors that sell the same product as him. C. list both direct and indirect competitors. D. list possible tactics to obtain a larger market share. E. only list indirect competitors.

C. list both direct and indirect competitors.

Which marketing strategy would Krispy Kreme doughnuts be using if it decided to begin selling its doughnuts in Mexico for the first time? A. market penetration B. product development C. market development D. diversification E. positioning

C. market development

The marketing strategy that emphasizes selling more of existing goods and services to existing customers is called A. product development. B. market development. C. market penetration. D. diversification. E. positioning.

C. market penetration.

Which element of the marketing mix includes the distribution activities necessary to get the product in the hands of the customer? A. promotion B. product C. place D. price E. position

C. place

Which of the following best describes a market development strategy? A. selling new products to existing markets B. selling new products to new markets C. selling existing products to new markets D. selling more of current products to existing markets E. selling unrelated products to existing markets

C. selling existing products to new markets

Which of the following makes up the vast majority of U.S. exporters? A. the top three largest U.S. firms B. Fortune 500 companies C. small companies D. Walmart E. multinational corporations

C. small companies

The three basic characteristics of a quality marketing objective is that it be A. broad, detailed, and measurable. B. vague, simplistic, and easy-to-understand. C. specific, measurable, and realistic. D. far-reaching, thorough, and measurable. E. specific, tailored, and recognizable.

C. specific, measurable, and realistic.

As it pertains to a situation analysis, the term market refers to A. the environment in which a particular product will be sold. B. the competitive forces that impact how a product will be sold. C. the group of consumers that is interested in and able to buy a particular product. D. the collective form of promotions for any given product. E. the entire product offering of a firm that must be promoted.

C. the group of consumers that is interested in and able to buy a particular product

What is the primary strategic planning tool for directing and coordinating the marketing effort? A. the executive summary B. the mission statement C. the marketing plan D. the business plan E. the situation analysis

C. the marketing plan

Which of the following products would most likely be considered a dog? A. iPod B. e-reader C. microwave oven D. compact disc E. laptop

D. compact disc

Which form of entering a foreign market requires the greatest commitment? A. joint venture B. exporting C. contract manufacturing D. direct ownership E. licensing

D. direct ownership

For a fee, Hadad can open a Subway shop in his hometown of Beirut. The parent company has agreed to let Hadad use its company name and will give him marketing and operational support. What type of arrangement is this? A. licensing B. joint venture C. contract manufacturing D. franchising E. direct ownership

D. franchising

What information does a break-even analysis provide for a firm? A. what market share the company needs to attain to surpass its competitors B. how much profit a firm needs to make before diversification can take place C. a bottom-line estimate of the firm's profitability D. how much the company needs to sell to cover its expenses E. the length of time that it will take for a company to pay off all its debts

D. how much the company needs to sell to cover its expenses

A legal process in which one firm pays to use or distribute another firm's resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge is called A. franchising. B. contract manufacturing. C. branding. D. licensing. E. joint venture.

D. licensing.

What two elements are combined on the BCG matrix to produce its four unique product categories? A. supply and demand B. market size and product demand C. relative market share and number of competitors D. market growth and relative market share E. market growth and number of competitors

D. market growth and relative market share

The situation analysis comprises three subsections: A. market summary, financials, and controls. B. SWOT analysis, competition, and financials. C. SWOT analysis, target market, and controls. D. market summary, SWOT analysis, and competition. E. market summary, competition, and financials.

D. market summary, SWOT analysis, and competition.

An action-oriented document or playbook that guides the analysis, implementation, and control of the firm's marketing strategy is known as the A. strategic plan. B. business plan. C. organizational plan. D. marketing plan. E. promotional plan.

D. marketing plan.

Which element of the marketing mix details how the organization will communicate the value of its product? A. price B. product C. place D. promotion E. position

D. promotion

Think about the various marketing strategies as you read the following choices to determine which one describes a market penetration strategy. A. selling new products to existing markets B. selling new products to new markets C. selling existing products to new markets D. selling more of current products to existing markets E. selling more of current products to new markets

D. selling more of current products to existing markets

Just as it is for firms seeking to make a profit, an essential part of effective marketing at nonprofit organizations is the A. executive summary. B. allocation of human resources. C. organizational chart. D. strategic plan. E. accounting methods used for reporting financials.

D. strategic plan.

The process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives is called A. business planning. B. marketing development. C. functional planning. D. strategic planning. E. business development.

D. strategic planning.

What element of the control section of the marketing plan defines the actions the company will take if the initial marketing strategy does not achieve results? A. the implementation plan B. the organizational structure C. the strategic plan D. the contingency plan E. the situation analysis

D. the contingency plan

Consider the following findings from a recent SWOT analysis performed by Sasha's flower shop. Which of the following represents a threat? A. Sasha has a good business relationship with local catering companies. B. Sasha has a hard time finding good employees after the summer staff goes back to school. C. Sasha has to spend a lot of time training her employees on how to care for the flowers and plants. D. A new funeral home just opened up in town. E. The summer drought has produced fewer flowers.

E. The summer drought has produced fewer flowers.

A recent survey conducted by U.S. News and World Report on the best overall hybrid car, ranked the Ford Fusion Hybrid as the best hybrid car for the money. For Ford, this represents A. a core benefit. B. a value edge. C. marketing tactics. D. product control. E. a competitive advantage.

E. a competitive advantage.

The internal considerations in a SWOT analysis are A. a firm's market share and growth potential. B. the firm's current and future competition. C. a firm's opportunities and threats. D. a firm's revenue and market share. E. a firm's strengths and weaknesses.

E. a firm's strengths and weaknesses.

When a big name retailer decides to open a manufacturing plant overseas, this is an example of A. a joint venture. B. exporting. C. contract manufacturing. D. licensing. E. direct ownership.

E. direct ownership.

According to your text, which of the following is NOT a risk of entering into a joint venture? A. culture clashes between the companies B. mistrust over proprietary knowledge C. conflict over new investments D. disagreements about how to share revenue and profits E. disagreements about how to staff the business

E. disagreements about how to staff the business

Selling domestically produced products to foreign markets is called A. franchising. B. countertrade. C. licensing. D. international marketing. E. exporting.

E. exporting.

The controls section of the marketing plan should contain which of the following? A. implementation, feedback, and review B. organizational structure, administrative oversight, and evaluation C. implementation, evaluation, and contingency planning D. marketing strategy, organizational structure, and feedback E. implementation, organizational structure, and contingency planning

E. implementation, organizational structure, and contingency planning

As a marketing strategy, what is diversification? A. selling existing goods and services to new customers B. creating new goods and services for existing markets C. selling more of existing goods and services to existing customers D. selling new goods and services to new customers E. offering new products that are unrelated to the existing products produced by a company

E. offering new products that are unrelated to the existing products produced by a company

Which of the following is NOT one of the four basic categories of marketing growth strategies? A. product development. B. market development. C. market penetration. D. diversification. E. positioning.

E. positioning.

According to your text, what three elements should be contained within a company's financial projections? A. sales forecast, profit and loss statement, and balance sheet B. expense forecast, sales forecast, and net worth C. balance sheet, profit and loss statement, and net worth D. short term debt, long term debt and sales forecast E. sales forecast, expense forecast, and break-even analysis

E. sales forecast, expense forecast, and break-even analysis

What is the overall purpose of a marketing plan? A. to define the target market and promotion strategies to be used on that market B. to determine whether or not a firm has enough capital to pursue its objectives C. to identify both existing and potential competitors of the firm D. to define the company's strengths and weaknesses E. to guide the analysis, implementation, and control of the firm's marketing strategy

E. to guide the analysis, implementation, and control of the firm's marketing strategy