chapter 2

acceptability, affordability, accessibility and awareness

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 ________.

implementation

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

market growth rate and relative market share

The two dimensions the BCG approach uses to evaluate and manage SBUs are ________.

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

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

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

Which of the following companies is using a divesting strategy?

market growth rate

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

employees

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

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

Which of the following is true of marketing ROI?

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

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

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

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

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

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

discounts

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

opportunities

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.

threats

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

obsolete technologies used by the company

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

an improvement in the company's production technology

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

low market share in a market with high growth prospects

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

cash cows

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

market development

A firm's decision to identify and develop new markets for existing products is a ________ strategy.

value delivery network

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.

mission statement

A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment.

market penetration

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

diversification

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

stars

According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as ________.

dogs

According to the BCG matrix, products or businesses with a low share of market in a high-growth industry are considered ________.

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

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

marketing implementation

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 ________.

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

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

selling a company's current products

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

developing a new product

Both product development strategies and diversification strategies involve ________.

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

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

strength

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?

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

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?

product

Design, packaging, service, and features are elements of the ________ component of a company's marketing mix.

decentralized

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 ________.

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 ________.

marketing control

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

market segment

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 ________.

place

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.

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

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?

SWOT analysis

Managing the marketing function begins with a complete analysis of the company's situation. A thorough ________ is typically undertaken to guide decision making.

marketing objective

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 ________.

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

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?

pruning

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 ________.

internal value chain

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.

market penetration

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

product development

Under Armour's decision to add athletic shoes to its apparel line in 2006 is an example of a ________ strategy.

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.

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

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?

sells off or phases out the strategic business unit

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

promotion

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

product

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

the collection of businesses and products that make up the company

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

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

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

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

Which of the following best describes market segmentation?

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

Which of the following best describes product positioning?

segmentation

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

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

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

Downsizing

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

Market targeting

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