Mktg Lesson 2 Chapter 2 T/F

False

Most firms begin the strategic planning process by developing detailed marketing and departmental plans that support a company-wide plan.

True

A company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices.

False

A company's customer value delivery network does not include members external to the organization.

True

A firm's marketing department must partner with other company departments to produce superior value for customers.

True

The purpose of operating control is to ensure that a company achieves the sales, profits, and other goals set out in its annual plan.

True

A tool for identifying growth opportunities is the product/market expansion grid.

False

In the marketing mix, place refers to activities that communicate the merits of a product and persuade target customers to buy it.

True

In the marketing mix, product refers to the goods and services the company offers to the target market, while promotion refers to advertising.

False

Many SBUs start out as stars and move into the question mark category if they succeed.

True

Marketing ROI is the net return from a marketing investment divided by the costs of the marketing investment.

True

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

False

In the four Ps of the marketing mix, promotion refers solely to advertising.

False

"At CL Online, we create customer connectivity, anytime, anywhere" is a product-oriented mission statement.

False

"At Dodson, we sell shoes" is a market-oriented business definition.

True

A company can assess marketing ROI in terms of standard marketing performance measures, such as brand awareness, sales, or market share.

True

According to the text, an organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create.

False

An SBU can be a company division or a product line within a division, but not a single product or brand.

False

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

In a SWOT analysis, strengths and weaknesses refer to a firm's external environment, while opportunities and threats refer to the internal environment.

True

SBUs identified as cash cows need less investment than stars.

False

The BCG and other formal matrix methods have a decentralized approach toward strategic planning.

True

The Four Ps concept takes into consideration the seller's view of the market.

False

The growth rate of a strategic business unit that is classified as a star remains constant over time.

False

The most common form of marketing organization is the product management organization.

False

The position of a strategic business unit in the growth-share matrix typically remains constant over time.