Marketing chapter 2

70. The first step in strategic planning is to set company objectives and goals.

FALSE

71. Management should always make its mission statement as broad as possible.

FALSE

72. To do business correctly, mission statements should be product-oriented.

FALSE

73. "We run theme parks" would be an example of a market-oriented mission for the Disney company.

FALSE

77. Using the BCG growth-share matrix approach, a star is characterized as being a low- share business unit in high-growth markets.

FALSE

78. Using the BCG growth-share matrix approach, a question mark is an SEU where the company is approaching globalization as a primary strategy.

FALSE

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

FALSE

86. The most important of the 4 Ps is promotion because without promotion no one would know about the products.

FALSE

87. The text indicates that 4 Cs match the 4 Ps of the marketing mix. The C that would match the Product component of the 4 Ps would be Customer goods.

FALSE

88. Marketing strategy is what is used by the marketer to develop the projected profit- and-loss statement.

FALSE

89. The element of the marketing plan that is used to present a brief summary of the main goals and recommendations of the plan for management review is the marketing audit.

FALSE

68. Strategic planning involves defining a clear company mission and other activities.

TRUE

69. Many companies operate without formal plans.

TRUE

74. If Home Depot's mission were product-oriented, it might contain the following phrase—"We sell tools and home repair and improvement items."

TRUE

75. A strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned independently from other company businesses.

TRUE

76. The Boston Consulting Group growth-share matrix measures portfolio performance by market growth rate versus relative market share.

TRUE

79. If a firm wants to milk its short-term cash flow regardless of the long-term effect, then a strategy of harvesting should be considered.

TRUE

80. According to the product or market expansion grid, market penetration would suggest that a company grow with an established product in an established market.

TRUE

81. According to the product or market expansion grid, market development allows managers to pursue new demographic and geographic markets with existing products.

TRUE

82. When each department within an organization carries out value-creating activities to design, produce, market, deliver, and support the firm's products, the department is part of what is called a value chain.

TRUE

84. Marketing targeting involves evaluating each market segment's attractiveness and selecting one or more segments to enter.

TRUE

85. If Ford Taurus establishes itself as a car that is "built to last," it has established a market position.

TRUE

90. The most common form of marketing organization is the functional organization.

TRUE

11. Wal-Mart has a mission statement that says "We deliver low prices, every day." This mission statement would best be characterized as being: a. market-oriented. b. product-oriented. c. production-oriented. d. futuristic.

a

12. Mission statements should be all of the following EXCEPT: a. unlike any other mission statement in the industry. b. realistic. c. specific. d. motivating.

a

20. Under the BCG growth-share matrix, relative market share provides: a. a measure of the company's strength in the market. b. the primary information for investment/divestiture decisions. c. a measure of market attractiveness. d. a measure of profitability for all products.

a

21. Under the BCG growth-share matrix, high-growth, high-share businesses or products are called: a. stars. b. cash cows. c. question marks. d. dogs.

a

24. According to the BCG growth-share matrix, which types of SBUs listed below often need heavy investment to finance their rapid growth? a. Stars. b. Cash cows. c. Question marks. d. Dogs.

a

31. Under the product/market expansion grid, the strategy of making more sales of current products to current market segments without altering the product is called: a. market penetration. b. market development. c. product development. d. diversification.

a

32. Considering the strategies available in the product/market expansion grid, assume that a company cuts prices, increases advertising, tries to get its products into more stores, and tries to obtain better in-store displays. Which of the following strategies would the company most likely be pursuing based on the above actions? a. market penetration b. market development c. product development d. diversification

a

4. ......... is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities. a. Strategic planning b. Strategic control c. Strategic networking d. Functional development

a

44. Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments better than its competitors do. This process involves three steps. Which of the following IS NOT one of those steps? a. market delineation b. market segmentation c. market targeting d. market positioning

a

52. Design, quality, features, brand name, packaging, services, and variety are all items found in which of the following marketing mix variables? a. product b. price c. place d. promotion

a

55. The marketing function that identifies the company's strengths and weaknesses while considering its opportunities and threats is called: a. marketing analysis. b. marketing planning. c. marketing control. d. marketing implementation.

a

58. The ........ presents a brief summary of the main goals and recommendations of the plan for management review, helping top management to find the plan's major points quickly. a. executive summary b. current marketing situation c. objectives and issues d. threats and opportunity analysis

a

59. Areas that are included in assessing the current marketing situation include all of the following EXCEPT: a. a review of production action programs. b. a market description. c. a product review. d. a review of competition.

a

63. The most common form of marketing organization is the: a. functional organization. b. geographic organization. c. product management organization. d. market management organization.

a

1. Planning encourages management to think systematically about what has happened, what is happening, and a. when it is happening b. what might happen c. should something happen d. should something stop

b

13. The ......... is the collection of businesses and products that make up the company. a. business strategy group b. business portfolio c. business cartel d. business organization

b

15. ......... is a tool by which management identifies and evaluates the various businesses that make up the company. a. Strategic planning b. Portfolio analysis c. Control recycling d. A strategy grid

b

17. The purpose of strategic planning is to find ways in which the company can best: a. overcome losses. b. use its strengths to take advantage of attractive opportunities in the environment. c. avoid paying taxes. d. avoid the expense of costly research and development while still getting the benefits.

b

2. Three types of plans usually prepared by companies include annual plans, strategic plans, and ......... plans. a. hourly b. long-range c. model d. psychological

b

22. Under the BCG growth-share matrix, low-growth, high-share businesses or products are called: a. stars. b. cash cows. c. question marks. d. dogs.

b

25. According to the BCG growth-share matrix, which types of SBUs listed below often produces profits that help to support other SBUs in need of investment? a. Stars. b. Cash cows. c. Question marks. d. Dogs.

b

26. If a company makes the decision to phase out an SBU and use the resources elsewhere in the company, this decision is called a(n) ......... strategy. a. build b. divest c. control d. harvest

b

30. According to research reports, Starbucks Coffee has used all of the following growth strategies to fuel its growth and expansion EXCEPT: a. more store growth. b. deep discounting to wholesalers. c. new retail channels. d. new products and store concepts.

b

33. Under the product/market expansion grid, the strategy of finding new market segments for current company products is called: a. market penetration. b. market development. c. product development. d. diversification.

b

34. If a company (in reviewing its product/market expansion grid) decides to pursue new demographic markets and expand into new geographic markets with existing products, the company would be following which of the general strategies below? a. market penetration b. market development c. product development d. diversification

b

39. All of the following are ways that marketing plays a key role in the company's strategic planning EXCEPT: a. marketing provides a guiding philosophy. b. marketing is the only discipline that can provide a formal structure for the planning effort. c. marketing provides inputs to strategic planners by helping to identify attractive market opportunities. d. within individual business units, marketing designs strategies for reaching the unit's objectives.

b

43. At the center of any well founded marketing process is the: a. profit maximization motive. b. target customer. c. shipping department. d. advertising.

b

45. ......... consists of dividing a market into distinct groups of buyers on the basis of needs, characteristics, or behavior who might require separate products or marketing mixes. a. Product differentiation b. Market segmentation c. Market targeting d. Market positioning

b

46. A ......... consists of consumers who respond in a similar way to a given set of marketing efforts. a. market b. market segment c. market position d. target

b

48. A product's ......... is the place the product occupies relative to competitors in consumer's minds. a. image b. position c. niche d. segment

b

5. ......... planning sets the stage for the rest of the planning in the firm. a. Functional b. Strategic c. Operational d. Tactical

b

56. ......... involves deciding on marketing strategies that will help the company attain its overall strategic objectives. a. Marketing analysis b. Marketing planning c. Marketing control d. Marketing implementation

b

9. The statement of the organization's purpose that acts as an "invisible hand" in guiding people in the organization to action is called: a. the strategic plan. b. the mission statement. c. the target market. d. the company objective.

b

18. The best known portfolio-planning method was developed by: a. the Department of Commerce. b. the University of Chicago. c. the Boston Consulting Group. d. the A. C. Nielson Consulting Group.

c

23. Under the BCG growth-share matrix, low-share, high-growth businesses or products are called: a. stars. b. cash cows. c. question marks. d. dogs.

c

28. All of the following can be limitations to using matrix approaches for strategic planning EXCEPT: a. they can be difficult. b. they can be time-consuming. c. they primarily focus on future planning. d. they can be costly to implement.

c

35. Under the product/market expansion grid, the strategy of offering new products to current markets is called: a. market penetration. b. market development. c. product development. d. diversification.

c

36. If a company chooses (considering its options on the product/market expansion grid) to offer new styles, sizes, or colors to its existing market, the company would be following which of the general strategies listed below? a. market penetration b. market development c. product development d. diversification

c

40. When Wal-Mart's purchasing department obtains the lowest prices possible from suppliers so that Wal-Mart can sell at low prices to the consumer, the purchasing department becomes part of a . a. product life-cycle b. synergistic function c. value chain d. promotion network

c

47. With respect to market targets, a company should target segments in which: a. there are the most customers. b. there are the most customers with the most money to spend. c. the company can profitably generate the greatest customer value and sustain it over time. d. there are the fewest competitors and there are the lowest costs.

c

50. In positioning its product, the company first identifies possible: a. market segments. b. market targets. c. competitive advantages on which to build the position. d. costs and profit pitfalls.

c

51. Product, price, place, and promotion are all controllable tactical marketing tools found in the company's . a. positioning plan b. marketing analysis division c. marketing mix d. marketing support system

c

53. ......... includes the company activities that make the product available to target customers. a. Product b. Price c. Place d. Promotion

c

54. From the buyer's point of view in this age of connectedness, the four Ps of the marketing mix might be better described as the four Cs. Which of the following Cs would match to the Place variable in the marketing mix? a. Customer solution b. Customer cost c. Convenience d. Communication

c

6. For most companies, the first step in the strategic planning process is to: a. set company objectives and goals. b. design the business portfolio. c. define the company mission. d. review planning, marketing and other functional strategies.

c

60. ......... outlines the broad marketing logic by which the business unit hopes to achieve its marketing objectives and the specifics of target markets, positioning, and marketing expenditure levels. a. The current market situation b. Objectives and issues c. Marketing strategy d. Action programs

c

66. ......... involves checking ongoing performance against the annual plan and taking corrective action when necessary. a. Strategic control b. Engineering control c. Operating control d. Matrix control

c

67. The is a comprehensive, systematic, independent, and periodic examination of a company's environment, objectives, strategies, and activities to determine problem areas and opportunities. a. marketing plan b. marketing strategy c. marketing audit d. marketing profile

c

7. A mission statement is a statement of the organization's: a. accounts and responsibilities. b. net worth. c. purpose. d. structure.

c

10. Traditionally, companies have defined their businesses in product terms or in: a. motivation terms. b. global terms. c. functional terms. d. technological terms.

d

14. When using a business portfolio to manage its businesses, the organization must first analyze its current business portfolio and decide which businesses should receive more, less, or no investment, and second, the organization must: a. develop retraction strategies for the portfolio. b. develop tactical decisions for the portfolio. c. develop merger strategies for the portfolio. d. develop growth strategies for adding new products or businesses to the portfolio.

d

19. According to the growth-share matrix portfolio-planning method, a company's strategic business units can be evaluated in terms of their: a. market growth rate and their relative profitability. b. market growth rate and their expansion curve tendency. c. structure and target markets. d. market growth rate and relative market share.

d

27. Some firms choose to milk an SBUs short-term cash flow regardless of the long-term effect on the SBU. This strategy is generally called a(n) ......... strategy. a. build b. divest c. control d. harvest

d

29. The ......... is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification. a. Boston Consulting Group approach b. GE business-screen c. input-output analysis approach d. product/market expansion grid

d

3. The difference between annual and long-range plans versus a strategic plan is that the annual and long-range plans deal with the company's current businesses and how to keep them going, while the strategic plan deals with: a. functional activities. b. global activities. c. tactical decisions. d. adapting the firm to take advantage of opportunities in its constantly changing environment.

d

37. Under the product/market expansion grid, the strategy of entering a new market(s) with new products is called: a. market penetration. b. market development. c. product development. d. diversification.

d

38. If a company (considering its options on the product/market expansion grid) chooses to move into different unrelated fields (from what it has ever done before) with new products as a means to stimulate growth, the company would be following which of the following general strategies? a. market penetration b. market development c. product development d. diversification

d

41. Honda has designed a program for working closely with its suppliers to help them reduce their costs and improve quality. This form of program becomes part of Honda's a. circulation cycle b. financial network c. small business chain d. value delivery network

d

42. The first step in the marketing process is to: a. select target markets. b. develop the marketing mix. c. manage the marketing effort. d. analyze marketing opportunities.

d

49. When the Chevy Blazer is described as being "like a rock," it is an example of: a. market segmentation. b. product differentiation. c. market targeting. d. market positioning.

d

57. A(n) ......... is the marketing logic whereby the company hopes to achieve its marketing objectives. a. marketing tactic b. marketing theory c. marketing concept d. marketing strategy

d

61. The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives is called: a. marketing strategy. b. marketing control. c. marketing analysis. d. marketing implementation.

d

62. Successful ......... depends on how well a company blends its people, organizational structure, decision and reward systems, and company culture into a cohesive program that supports its strategies. a. marketing strategy b. marketing control c. marketing analysis d. marketing implementation

d

64. Companies that sell a single product to many different types of customers who have different needs and preferences often use what type of marketing department organization? a. functional organization b. geographic organization c. product management organization d. market or customer management organization

d

65. ......... is the process of measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that marketing objectives are achieved. a. Strategic control b. Operating control c. Functional control d. Marketing control

d

8. Questions such as "What is our business?" and "Who is the customer?" are generally answered in a company's: a. objectives. b. plan. c. portfolio. d. mission statement.

d

16. If an organization were to identify a unit that has a separate mission and objectives and that can be planned independently from other company businesses, it would be called a(n): a. strategic business unit. b. control unit. c. product

market expansion unit. d. development unit./a