Marketing Chapter 2

ToyBox is a toy manufacturer based in the United Kingdom. Which of the following indicates that the company is following a market penetration strategy?

It acquires toy rights for a popular cartoon character to boost its sales.

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

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

A company's mission statement should most likely be ________.

defined in terms of satisfying basic customer needs

Both product development strategies and diversification strategies involve ________.

developing a new product

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

discounts

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

diversification

Evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained is called ________.

marketing control

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

obsolete technologies used by the company

In a SWOT analysis, ________ refer to favorable factors or trends in the external environment that a company may be able to exploit to its advantage.

opportunities

When viewing the market from a buyer's point of view, "convenience" corresponds to the ________ component of the marketing mix.

place

To which of the following elements of the marketing mix do design, packaging, services, and features belong?

product

Which component of the marketing mix refers to the goods-and-services combination a company offers to its target market?

product

When viewing the market from a buyer's point of view, "communication" corresponds to the ________ component of the marketing mix.

promotion

Which of the following criteria does the Boston Consulting Group approach use to provide a measure of a company's strength in the market?

relative market share

Vertigo is an electronics company. According to the BCG matrix, which of the following products of Vertigo would most likely classify as a question mark?

Blue-a cell phone that is designed for music lovers and has a very low market share in a market that is growing steadily

BlueBear is a shoe manufacturer based in the United States. Which of the following indicates that the company is following a market development strategy?

BlueBear introduces its shoes in the Indian and South-East Asian markets.

Which of the following best describes market segmentation?

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors

In a SWOT analysis, which of the following would most likely be considered a strength of a company?

an improvement in the company's production technology

Which of the following best describes product positioning?

arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

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

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

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

cash cows

Which of the following best describes the value chain of a company?

the series of departments that design, produce, market, deliver, and support the company's products

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

threats

________ are tools that give marketers the detailed measures they need to assess and adjust their strategies.

Dashboards

Which of the following best describes a marketing department with a functional organization?

Different marketing activities are headed by specialists such as sales managers, advertising managers, marketing research managers, and customer service managers.

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

Downsizing

________ refers to the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Market targeting

Which of the following is true of marketing ROI?

Marketing ROI measures the profits generated by investments in marketing activities.

________ involves looking at whether a company's basic business models are well matched to its opportunities.

Strategic control

Greyzone, a company that creates customized household furniture, is based in Terrania and is looking to enter other countries as well. The company identifies the country of Nyevka as a good option because the entry barriers for new companies are low in Nyevka. Which statement indicates that Greyzone follows a diversification strategy?

Noting that Nyevka lacks well-established suppliers of office equipment, Greyzone begins to manufacture and supply office equipment.

Which of the following statements is true in the context of the BCG growth-share matrix?

Stars often need heavy investment to finance their rapid growth in a market.

Kobe Healthcare's analgesic drug Dilophin has a 45% share in the analgesics market in the country of Bodonia. Its closest competitor, Caritin, has a 25% share in the market, while three other drugs split the remainder. Which statement indicates that Dilophin is a star according to the BCG matrix?

The Bodonian market for healthcare products is expanding rapidly.

Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in the country of Terrania. Its closest competitor, Febex, has a 25% share in the market, while four other analgesic brands split the remainder. Which statement indicates that Cetaprin is a cash cow according to the BCG matrix?

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

Which of the following companies is using a divesting strategy?

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

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

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

In the BCG matrix, ________ are low-share businesses and products in low-growth markets.

dogs

Which of the following groups is included in a company's value chain?

employees

Which of the following groups is included in both a company's value chain and its value delivery network?

employees

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

high market share in a market with a high growth rate

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

implementation

With a market development strategy, a company aims to improve sales by ________.

introducing its product in a new market without making any changes to the product

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

inventory

Which of the following is a primary characteristic of strategic control rather than operating control?

looking at whether the company's basic plans and action goals are well matched to its opportunities

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

low market share in a market with high growth prospects

Acme Inc., a manufacturer of construction and mining equipment, is based in Australia. Acme modifies the production processes of its widgets and gadgets to sell its current products in Eastern Europe. This is most likely an example of a ________ strategy.

market development

RedInk, a company that manufactures office furniture, is based in Bodonia. It is looking to sell its current products in other countries as well. The company identifies the country of Soleria as a good option because the cultures and tastes of consumers in the two countries are similar. This is an example of a strategy for ________.

market development

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

market growth rate

A strategy for company growth that involves increasing sales to current market segments without changing the product is known as ________.

market penetration

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

market penetration

Indigo, a company that manufactures electric chimneys, is based in the country of Terrania. Indigo aims to increase its sales by increasing advertising efforts and undertaking frequent promotional events. Which of the following strategies is Indigo using in this scenario?

market penetration

A consumer group that responds in a similar way to a given set of marketing efforts is the company's ________.

market segment

Which of the following marketing measures can best be translated into dollar returns?

market share

Traxx is a newly emerging shoe manufacturing company. After extensive market research, Traxx divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, Traxx has engaged in market ________.

segmentation

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

selling a company's current products

When a company chooses to divest a particular strategic business unit, it ________.

sells off or phases out the strategic business unit

Which of the following best describes a company's business portfolio?

the collection of businesses and products that make up the company

When using a harvest strategy for a particular strategic business unit, a company ________.

tries to maximize its short-term cash flow regardless of long-term concerns

A ________ is made up of a company, its suppliers, its distributors, and its customers who partner with each other to improve the performance of the entire system.

value delivery network

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

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

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

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