MKTG 3310 CHP 2
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
T/F A company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices.
TRUE
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.
________ 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.
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.
Managing the marketing function begins with a complete analysis of the company's situation. A thorough ________ is typically undertaken to guide decision making.
SWOT analysis
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.
T/F ) The product-market expansion grid, like the BCG matrix, is used to identify growth opportunities.
TRUE
T/F A company can assess marketing ROI in terms of standard marketing performance measures, such as brand awareness, sales, or market share
TRUE
T/F A firm's marketing department must partner with other company departments to produce superior value for customers.
TRUE
T/F An organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create.
TRUE
T/F In the marketing mix, product includes the goods and services the company offers to the target market, while promotion includes advertising.
TRUE
T/F Many companies have dropped formal strategic planning models like the BCG because they can be difficult, time consuming, and costly to implement.
TRUE
T/F Marketers must practice constant marketing control to ensure that objectives are attained.
TRUE
T/F Marketing ROI measures the profits generated by investments in marketing activities.
TRUE
T/F Marketing dashboards are used to monitor strategic marketing performance
TRUE
T/F SBUs identified as cash cows need less investment than stars.
TRUE
Which of the following companies is using a divesting strategy?
When sales of its clothing division decline, Blackstone sells the division to a competitor.
In the BCG matrix, ________ refer to low-growth, high-share businesses or products.
cash cows
Both product development strategies and diversification strategies involve ________.
developing a new product
Which of the following groups is included in both a company's value chain and its value delivery network?
employees
A firm's decision to identify and develop new markets for existing products is a ________ strategy.
market development
Which of the following criteria provides a measure of market attractiveness in the Boston Consulting Group approach?
market growth rate
The two dimensions the BCG approach uses to evaluate and manage SBUs are ________.
market growth rate and relative market share
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
A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment.
mission statement
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. A) strengths
opportunities
Ford Motor Company issuing a recall that requires customers to schedule appointments with car dealerships to repair faulty igniters would have the greatest impact on the ________ component of its marketing mix.
place
Design, packaging, service, and features are elements of the ________ component of a company's marketing mix.
product
Which component of the marketing mix refers to the goods-and-services combination a company offers to its target market?
product
Which of the following best describes a company's business portfolio?
the collection of businesses and products that make up the company
In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance.
threats
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
________ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy.
Downsizing
The process that turns marketing plans into marketing actions to accomplish strategic marketing objectives is called marketing ________.
implementation
True Value Hardware relies on its ________ to coordinate and carry out activities that provide shoppers with the hardware and home improvement products they need at affordable prices along with top-notch customer service.
internal value chain
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
According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as ________.
)stars
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.
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 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.
T/F "At CL Online, we create customer connectivity, anytime, anywhere" is a product-oriented mission statement.
FALSE
T/F "At Dodson, we sell shoes" is a market-oriented business definition.
FALSE
T/F A company's customer value delivery network does not include members external to the organization
FALSE
T/F An SBU can be a company division or a product line within a division, but not a single product or brand.
FALSE
T/F Holiday Inn divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called diversification.
FALSE
T/F In a SWOT analysis, strengths and weaknesses refer to a firm's external environment, while opportunities and threats refer to the internal environment.
FALSE
T/F In the 4Ps of the marketing mix, promotion refers solely to advertising.
FALSE
T/F In the marketing mix, product refers to activities that communicate the merits of a product and persuade target customers to buy it.
FALSE
T/F Many SBUs start out as stars and move into the question mark category if they succeed.
FALSE
T/F Most firms begin the strategic planning process by developing detailed marketing and departmental plans that support a company-wide plan.
FALSE
T/F The growth rate of a strategic business unit that is classified as a star remains constant over time.
FALSE
T/F The most common form of marketing organization is the product management organization.
FALSE
T/F The position of a strategic business unit in the growth-share matrix typically remains constant over time.
FALSE
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.
What is a SWOT analysis? Why is it required?
Managing the marketing function begins with a complete analysis of a company's situation. The marketer should conduct a SWOT analysis, by which it evaluates a company's overall strengths (S), weaknesses (W), opportunities (O), and threats (T). Strengths include internal capabilities, resources, and positive situational factors that may help a company serve its customers and achieve its objectives. Weaknesses include internal limitations and negative situational factors that may interfere with a company's performance. Opportunities are favorable factors or trends in the external environment that a company may be able to exploit to its advantage. And threats are unfavorable external factors or trends that may present challenges to performance. Conducting a SWOT analysis is important because a company should analyze its markets and marketing environment to find attractive opportunities and identify environmental threats. It should analyze company strengths and weaknesses as well as current and possible marketing actions to determine which opportunities it can best pursue. The goal is to match the company's strengths to attractive opportunities in the environment, while simultaneously eliminating or overcoming the weaknesses and minimizing the threats. Marketing analysis provides inputs to each of the other marketing management functions.
T/F The 4As framework takes into consideration the buyer's view of the market.
TRUE
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 Terrania market is expected to remain stable
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
The 4Ps model has been challenged because it omits or underemphasizes important activities such as services. It's also been criticized for taking a seller's, rather than a buyer's, viewpoint. The more recent 4As framework complements the traditional model and includes ________. A) adaptability, affordability, availability and awareness
acceptability, affordability, accessibility and awareness
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
Due to the limitations of the BCG and other formal portfolio planning models, many companies are placing responsibility for strategic planning in the hands of cross-functional teams of divisional managers who are close to their markets. In such organizations, strategic planning is
decentralized
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
Under Armour's recent expansion into the digital personal health and fitness tracking market through acquisitions of three fitness app companies is a ________ strategy. A) market penetration
diversification
Which of the following best describes market segmentation?
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors
According to the BCG matrix, products or businesses with a low share of market in a high-growth industry are considered ________.
dogs
Under Armour increasing its advertising spending and offering an ever-increasing range of styles and colors in its original apparel line is an example of a ________ strategy.
market penetration
Ferrari sells only 2,200 of its very high-performance cars in North America each year at very high prices. The company is appealing to a specific ________.
market segment
Evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained is called ________.
marketing control
At John Deere, thousands of people both inside and outside the organization make decisions about target segments, branding, product development, pricing, promotion, and distribution. They talk with engineering about product design, advertising agencies about ad campaigns, and large retailers like Lowe's about quality offerings. This is an example of ________.
marketing implementation
Nike's goal to increase sales of its running shoes by 25 percent during the first 6 months of the new fiscal year is an example of a ________.
marketing objective
In a SWOT analysis, which of the following would be considered a weakness of a company?
obsolete technologies used by the company
Under Armour's decision to add athletic shoes to its apparel line in 2006 is an example of a ________ strategy.
product development
When viewing the market from a buyer's point of view, "communication" corresponds to the ________ component of the marketing mix.
promotion
P&G's decision to eliminate dozens of major brands from its portfolio including Crisco, Folgers, and Jif to focus on household care, beauty, and grooming products is an example of ________.
pruning
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
CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example, it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis?
strength
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
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