HW 2

False

"At Trader Joe's, our mission is to provide all our customers the best food and beverage values to be found anywhere, and the information to make informed buying decisions." This is a product-oriented business definition.

A.product development

Ron and Gail, owners of Fun-Spot, strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________. A.product development B.market development C.niche marketing D.diversification E.market penetration

B. market growth rate

According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness. A.product attribute B.market growth rate C.market segmentation D.product design E.market penetration

E. relative market share

According to the Boston Consulting Group approach, ________ serves as a measure of company strength in the market. A.product development B.market segmentation C.product attribute D.market diversification E.relative market share

A.position

Alpha Motors offers "Green automobiles for a greener world." This refers to the ________ of Alpha automobiles. A.position B.brand equity C.pleasure value D.brand resonance E.added value

A.diversification

Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________. A.diversification B.niche marketing C.product adaptation D.mass customization E.Prospecting

False

An American airline company started a grocery chain in Australia. This is an example of product development.

C.positioning

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 ________. A.segmenting B.satisficing C.positioning D.diversifying E.Prospecting

A positioning

Arrow is "a different kind of company, manufacturing a different kind of a car"; the RoadPro is "like nothing else." Statements such as these reflect a firm's ________. A.positioning B.portfolio C.marketing mix D.mission statement E.marketing segment

E.milking the SBU's short-term cash flow regardless of the long-term effect

By harvesting its SBU, a company would most likely be ________. A.selling the SBU or phasing it out and using the resources elsewhere B.diversifying the company's product line C.investing more in the business unit to build its share D.investing just enough to hold the SBU's current market share E.milking the SBU's short-term cash flow regardless of the long-term effect

C.market penetration

Ron and Gail plan to lower Fun-Spot's prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning? A.product adaptation B.product development C.market penetration D.diversification E.market development

B.link in the company's internal value chain

RedFin manufactures diving equipment that is highly regarded by customers worldwide. Each department in RedFin contributes to its success and can be thought of as a(n) ________. A.independent subsidiary of the company B.link in the company's internal value chain C.separate organization D.separate market segment E.SBU

B.market segment

Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________. A.product line B.market segment C.brand D.marketing intermediary E.new product

False

Since companies want to work together to attract customers, marketers do not need to practice partner relationship management.

D. product development

Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________. A.diversification B.benchmarking C.mass customization D.product development E.Downsizing

true

"At Joe's Diner, we serve great burgers" is a product-oriented business definition.

E. designing new products from scratch

.Marketing plays a key role in the company's strategic planning in all of these ways EXCEPT ________. A.designing strategies for reaching a unit's objective B.providing a guiding philosophy C.creating customer value and building profitable relationships with customer groups D.providing input to identify attractive market opportunities E.designing new products from scratch

E. strength of the market or industry position

.Most standard portfolio analysis methods evaluate SBUs on the ________. A. number of successful business acquisitions B.degree of product differentiation C.potential for niche or global marketing D.accessibility to rural markets E.strength of the market or industry position

D.market segment

.Paul Robinson has identified a group of potential customers who seem to respond in a similar way to a series of magazine and radio advertisements for his company's product. Paul has identified a(n) ________. A.product design B.target market C.niche market D.market segment E.product attribute

E.market segment

.Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________. A.brand personality B.product attribute C.channel intermediary D.line extension E.market segment

C .mission statement

A ________ documents an organization's purposelong dashwhat it wants to accomplish in the larger environment. A.value proposition B.vision statement C.mission statement D.product strategy E.business portfolio

True

A clear mission statement acts as an "invisible hand" that guides people in the organization.

E.Divest

A company can ________ an SBU by selling it or phasing it out and using the resources elsewhere. A.expand B.promote C.hold D.harvest E.Divest

D. budget objectives

A company's broad mission leads it to develop all of the following EXCEPT ________. A.business objectives B.customer engagement objectives C.sales objectives D.budget objectives E.marketing objectives

A. a higher share price

A company's broad mission leads to ________. A.a higher share price B.increasing sales and decreasing costs C.increased market share and increasing profitability D.increasing profits and more customers E.a hierarchy of objectives, including business objective and marketing objectives

False

A company's mission could appropriately be stated as "making more sales or profits."

False

A company's mission statement provides the depth needed for all segments of the company to reach their goals.

False

A mission statement is a document embodying an organization's short-term goals.

B. statement of the organization's purpose

A mission statement serves as a ________. A.plan for short-term sustainability B.statement of the organization's purpose C.statement of the organization's net profits D.reward plan for the organization's highly-skilled employees E.statement of the organization's current liabilities

D. diversification

A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________. A.product differentiation B.product development C.market penetration D.diversification E.market development

C. product development

Cleats, Unlimited developed a new style of soccer shoe. This is an example of ________. A.market penetration B.market development C.product development D.diversification E.product differentiation

D. The customers may have purchased all they need

Companies may want to downsize their business portfolios for all but which of the following reasons? A.The firm may have grown too fast. B.The products might simply age. C.The market environment might change. D.The customers may have purchased all they need. E.The firm may have entered areas where it lacks experience.

E. products and technologies eventually become outdated

Companies that define their missions in terms of products or technologies are considered myopic primarily because ________. A.consumer preferences for different product categories vary from time to time B.products and technologies result in low returns on investment C.consumer preferences with regard to products and technology are difficult to predict D.most consumers are not comfortable using sophisticated technology during the buying process E.products and technologies eventually become outdated

False

Company growth through diversification involves offering modified or new products to the company's current markets.

A.market nicher B.market follower C.early adopter D.market challenger E.Laggard

Crocus, a gift store, specializes in serving customer segments that major competitors overlook and ignore. Which of the following best describes Crocus? A.market nicher B.market follower C.early adopter D.market challenger E.Laggard

B.technological

Customers can be grouped and served in various ways based on several factors. These include all of the following EXCEPT ________ factors. A.psychographic B.technological C.demographic D.geographic E.Behavioral

D.assesses the attractiveness of its various SBUs

During portfolio analysis, a company ________ after identifying the key businesses that make up the company. Aformulates a short-term marketing plan B.assesses its strengths and weaknesses C.performs a SWOT analysis D.assesses the attractiveness of its various SBUs E.assesses the effectiveness of its various channel intermediaries

D.market targeting

Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. This process involves market segmentation, ________, differentiation, and positioning. A.marketing implementation B.price discrimination C.supply-chain analysis D.market targeting E.market diversification

E.market diversification

Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. This process involves market segmentation, ________, differentiation, and positioning. A.marketing implementation B.price discrimination C.supply-chain analysis D.market targeting E.market diversification

True

Each department in a company can be thought of as a link in the company's internal value chain.

C.internal value chain

Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________. A.channel of intermediaries B.external value stream C.internal value chain D.demand chain E.supplier chain

B. diversification

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________. A.product adaptation B.diversification C.downsizing D.niche marketing E.local marketing

D. market development

FencePro, a local company, has developed an entirely new mounting system for chain link fences. After acquiring a distributor, FencePro now has the ability to market its products nationwide. FencePro is most likely following a ________ strategy. A.product adaptation B.downsizing C.product development D.market development E.market penetration

B.product

In the marketing mix, design, packaging, services, and variety can be categorized under ________. A.price B.product C.place D.position E.Promotion

A.logistics

In the marketing mix, place includes ________. A.logistics B.packaging C.discounts D.advertising E.sales promotion

A. market development

Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark is most likely following a ________ strategy. A.market development B.local marketing C.product development D.diversification E.product adaptation

C. market penetration

Making more sales to current customers without changing a firm's products is known as ________. A.prospecting B.market segmentation C.market penetration D.product development E.product diversification

True

Market development involves company growth by identifying and developing new market segments for current company products.

False

Market penetration involves offering modified or new products to current markets.

B. dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Market segmentation can be best described as the process of ________. A.turning marketing plans into marketing actions to accomplish strategic marketing objectives B.dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs C.maintaining a strategic fit between organizational goals and changing marketing opportunities D.evaluating each market segment's attractiveness and selecting one or more segments to enter E.assigning specific human attributes to a given brand

A. be market oriented; satisfying basic customer needs

Mission statements should ________ and be defined in terms of ________. A.be market oriented; satisfying basic customer needs B.address sales and profits; the net return on investments C.be technology oriented; meeting the self-actualization needs of customers D.be product oriented; satisfying the esteem needs of customers E.embody the company's short-term plans; current opportunities

C. meaningful and specific yet motivating

Mission statements should be ________. A.focused on increasing sales or profits B.technology oriented C.meaningful and specific yet motivating D.strictly product oriented E.written solely for public relations purposes

B.satisfying basic customer needs

Mission statements should be defined in terms of ________. A.the advantages a company's products provide B.satisfying basic customer needs C.the value a company's products provide D.the variety they offer to a customer E.the profitability of a company's products

True

Mission statements should be market oriented and defined in terms of satisfying basic customer needs.

C. is decentralized

Modern strategic planning ________. A.does not involve cross-functional teams B.exclusively consists of a company's short-term goals C.is decentralized D.is highly centralized E.does not take the overall mission of the company into consideration

False

On the BCG matrix, "question marks" are high-growth, high-share businesses or products.

A. mission statement

Orion Inc. operates in many industries, including pharmaceuticals and food products. The company's goal is to create "abundant and affordable food for all and a healthy environment." This represents Orion's ________. A.mission statement B.product mix C.marketing mix D.marketing plan E.business portfolio

D. market penetration

Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of patrons. This exemplifies ________. A.market segmentation B.diversification C.product development D.market penetration E.product differentiation

E. focuses solely on current businesses and provides little scope for future planning

The BCG matrix approach is problematic in that it ________. A.fails to classify SBUs B.tends to undermine the importance of relative market share as a measure of company strength in the market C.focuses on planning for the future at the cost of ignoring the present D.tends to undermine the importance of market growth rate as a measure of market attractiveness E.focuses solely on current businesses and provides little scope for future planning

B.best fits the company's strengths and weaknesses to opportunities in the environment

The best business portfolio is the one that ________. A.provides the greatest opportunity for increasing profits B.best fits the company's strengths and weaknesses to opportunities in the environment C.entices customers to purchase even more products from the company D.allows the company to decrease its overall costs E.ensures that the company will realize increased share of market

B. business portfolio

The collection of businesses and products that make up a company is called its ________. A. internal value chain B.business portfolio C.strategic plan D.supply chain E.strategic business unit

D. strategic business unit

The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools. Each of these businesses is called a ________. A.product portfolio B.question mark C.market segment D.strategic business unit E.Prospect

E. business portfolio analysis

The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company. A.breakeven analysis B.SWOT analysis C.benchmarking D.prospecting E.business portfolio analysis

True

The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company.

False

The major activity in strategic planning is product innovation.

B.market development

The managers of Alfredo's Pizza, a popular pizzeria in New York City, have been increasingly encouraging senior citizens to visit the pizzeria's numerous outlets spread across the city. Anticipating a rise in the population of senior citizens in the area, the management of Alfredo's Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers. In this instance, the managers of Alfredo's Pizza are anticipating company growth through ________. A.mass customization B.market development C.niche marketing D.product differentiation E.product development

D. market development

The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to sell the firm's current products. This is an example of ________. A.market penetration B.product adaptation C.mass marketing D.market development E.product development

E. marketing strategy

The marketing logic by which a company hopes to create customer value and achieve profitable customer relationships is referred to as the ________. A. value chain B.downsizing C.marketing implementation D.price E.marketing strategy

C.value delivery network

The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system is known as the ________. A.business portfolio B.marketing mix C.value delivery network D.supply chain E.internal value chain

E.question mark

The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ________. A.cash cow B.dog C.star D.bear E.question mark

D.positioning

The process of 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 ________. A.market targeting B.differentiation C.target marketing D.positioning E.market segmentation

B.market targeting

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter is known as ________. A.prospecting B.market targeting C.downsizing D.market segmentation E.Diversification

True

The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment.

D.product

Which of the following Ps in the marketing mix describes the goods-and-services combination the company offers to the target market? A.package B.price C.place D.product E.Promotin

E.the key businesses that make up a company

Which of the following best describes a strategic business unit? A.the key competitors of a company B.the key channel intermediaries of a service company C.the internal value chain of a company D.the supply chain of a company E.the key businesses that make up a company

D.An electronics company, whose business definition is: "We produce microchips."

Which of the following companies has a market-oriented business definition? A.A pizzeria, whose business definition is: "We sell the world's most delicious thin-crust pizzas." B.A hotel, whose business definition is: "We rent rooms." C.An apparel company, whose business definition is: "We make and sell women's clothing." D.An electronics company, whose business definition is: "We produce microchips."

A.A shoe manufacturer, whose business definition is: "We manufacture affordable and long-lasting shoes for all."

Which of the following companies has a product-oriented business definition? A.A shoe manufacturer, whose business definition is: "We manufacture affordable and long-lasting shoes for all." B.A cosmetic company, whose business definition is: "We offer hopes and self-expression." C.A real estate company, whose business definition is: "We sell dreams." D.A luxury hotel, whose business definition is: "We sell out-of-the-world experiences to our guests." E.A high-technology company, whose business definition is: "We sell inspirations."

E."We make high-quality consumer food products.

Which of the following is NOT a market-oriented business definition? A."We create the Hilton experience." B."We sell success and status." C."We bring innovation to every home." D."We empower customers to realize their dreams." E."We make high-quality consumer food products.

C. evaluating members of the company's value chain

Which of the following is NOT a step in the strategic planning process? A.defining the company mission B.planning marketing and other functional strategies C.evaluating members of the company's value chain D.setting company objectives and goals E.designing the business portfolio

B.purchase

Which of the following is NOT an element of the marketing mix? A.promotion B.purchase C.price D.product E.Place

E. "We sell memorable experiences

Which of the following is NOT an example of product-oriented mission statements? A."We run theme parks." B."We sell athletic shoes." C."We rent hotel rooms." D."We are an online library." E."We sell memorable experiences

E.Budgeting

Which of the following is NOT part of a company's decision about which customers it will serve and how? A.targeting B.positioning C.segmentation D.differentiation E.Budgeting

B.which businesses should be sold or closed

Which of the following is NOT something a company must determine when analyzing its current business portfolio? A.which businesses should receive less investment B.which businesses should be sold or closed C.which businesses should receive no investment D.which businesses shape the future portfolio E.which businesses should receive more investment

B."We empower customers to achieve their dreams.

Which of the following is a market-oriented mission statement? A."We make porcelain figurines." B."We empower customers to achieve their dreams." C."We sell jumbo burgers." D."We are a low-cost airline." E."We are an online library."

A.product/market expansion grid

Which of the following is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification? A.product/market expansion grid B.Harris matrix C.analysis of variance D.BCG matrix E.SWOT analysis

B. place

Which of the following is an element of the marketing mix? A.needs B.place C.wants D.education E.Esteem

C. defining the organizational mission

Which of the following is the first step in strategic planning? A.formulating the key marketing strategies B.setting short-term goals C.defining the organizational mission D.developing the business portfolio E.identifying the organization's weaknesses and the threats it faces

C.determining which businesses should receive more, less, or no investment

Which of the following is the first step of business portfolio planning? A.determining short-term goals B.identifying internal strengths and weaknesses C.determining which businesses should receive more, less, or no investment D.identifying future opportunities E.shaping the future portfolio by developing strategies for growth and downsizing

E.It considers market growth rate to be a measure of market attractiveness

Which of the following is true of the BCG matrix approach? A.It is inexpensive to implement. B.It does not have any limitations. C.It does not consider relative market share to be a measure of company strength in the market. D.It describes consumer motivations and needs. E.It considers market growth rate to be a measure of market attractiveness

A. A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.

Which of the following is true with regard to a market segment? A.A market segment consists of consumers who respond in a similar way to a given set of marketing efforts. B.A market segment consists of consumers with dissimilar needs and preferences. C.Dividing the market into segments reduces composite demand. D.Very few markets have segments. E.Dividing the market into segments decreases the efficiency of the selling process.

A.They can be used to help finance the company's question marks and stars

Which of the following is true with regard to cash cows? A.They can be used to help finance the company's question marks and stars. B.They require significant cash to maintain market share. C.They are low-share businesses and products. D.They do not promise to be large sources of cash. E.They are high-growth, high-share businesses or products.

C. The focus of strategic planning is to define a game plan for long-run survival and growth

Which of the following is true with regard to strategic planning? A.At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company. B.The strategic plan is a statement of an organization's purpose. C.The focus of strategic planning is to define a game plan for long-run survival and growth. D.Strategic planning involves identifying segments of consumers with identical preferences. E.A strategic plan deals with a company's short-term goals

A.It is a useful device for identifying growth opportunities.

Which of the following is true with regard to the product/expansion grid? A.It is a useful device for identifying growth opportunities. B.It helps companies analyze their internal strengths and weaknesses. C.It is a useful device for segregating customers into distinct categories. D.It classifies SBUs into four distinct categories. E.It functions on the premise that firms should downsize to regain market share.

B.cross-functional teams of divisional managers close to their markets

Within a company, who is most likely to perform strategic planning? A.the marketing and sales departments B.cross-functional teams of divisional managers close to their markets C.the accounting and finance departments D.the president and vice presidents E.the manufacturing and production departments

E.Stars

_______ are a type of SBU that often require heavy investments to finance their rapid growth. A.Question marks B.Cash cows C.Bears D.Dogs E.Stars

C. Cash cows

_______ are low-growth, high-share businesses/products that need less investment to hold their market share. A.Bears B.Stars C.Cash cows D.Dogs E.Question marks

B. Question marks

_______ are low-share business units in high-growth markets that require a lot of cash to hold their share. A.Stars B.Question marks C.Bears D.Dogs E.Cash cows

B. Strategic planning

________ is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities. A.Benchmarking B.Strategic planning C.Market segmentation D.Diversification E.SWOT analysis

True

customer engagement and value are the key ingredients in the marketer's formula for success.

A.place

in the context of a company's marketing mix, ________ includes company activities that make the product available to target consumers. A.place B.branding C.position D.price E.Promotion