MKTG Chapter 2 Pretest

________ strategies emphasize both new products and new markets to achieve growth. A) Diversification B) Market penetration C) Market development D) Product development E) Cash cow

A) Diversification

Which of the following is true about functional planning? A) It is conducted by the various functional areas of a firm. B) It is also called hierarchical management. C) It encompasses a longer time span than strategic planning does. D) It covers a shorter time span than operational planning does. E) It is the same as strategic planning.

A) It is conducted by the various functional areas of a firm.

________ decisions identify how marketing will accomplish its objectives in the target markets by using product, price, promotion, and place. A) Marketing metrics B) Strategic business unit C) Return on marketing investment D) Marketing mix E) Strategic planning

D) Marketing mix

The marketing plan is a type of ________. A) day-to-day plan B) code of ethics C) strategic plan D) independent plan E) functional plan

E) functional plan

Marketers communicate a product's value proposition to the target market by implementing a ________. A) product segment B) promotional strategy C) pricing strategy D) distribution strategy E) marketing metric

B) promotional strategy

Each year, Honeywell asks every department manager to rate his or her department's strengths and weaknesses as well as those of the other departments with which the department interacts. Then each department manager is asked what he or she sees as the greatest threats and opportunities for the company. Honeywell is asking its department managers to engage in a(n) ________. A) SWOT analysis B) portfolio analysis C) market analysis D) functional planning session E) compatibility assessment

A) SWOT analysis

Which of the following is a tool that marketers often use to portray an action plan's time line? A) a Gantt chart B) a SWOT analysis C) an SBU analysis D) a BCG matrix E) a marketing metric

A) a Gantt chart

Effective objectives should be all of the following EXCEPT which one? A) aspirational B) specific C) attainable D) sustainable E) measurable

A) aspirational

John H. Harland Company is a large company with 5,200 employees and almost $800 million in sales . The company is best known for printing personal and business checks. Harland Analytical Services is a technology company that produces software that enables banks to gauge the behavior of their customers by tracking their spending habits. In addition, Harland owns Scantron, a computerized testing and assessment company. The ________ for John H. Harland Company includes its check-printing business, its financial software business, and its testing and assessment business. A) business portfolio B) marketing mix C) market penetration D) functional plan E) market classification

A) business portfolio

A mission statement is a formal document that describes the organization's overall purpose and what it hopes to achieve in terms of its products, resources, and ________. A) customers B) profits C) employees D) shareholders E) competitors

A) customers

Many airlines now encourage customers to purchase online "ticketless" flight reservations by charging a fee to those who purchase tickets at ticket counters. This is an example of a ________ strategy. A) distribution B) return on marketing investment C) marketing control D) product E) promotion

A) distribution

According to the BCG growth-market share matrix, ________ are strategic business units with products that have a small share of a slow-growth market. A) dogs B) exclamation points C) cash cows D) stars E) question marks

A) dogs

In recent years, security regulations enacted through the Transportation Safety Administration have affected Southwest Airlines. These regulations are part of the ________ affecting this airline. A) external environment B) internal environment C) competitive intelligence D) diversification strategies E) market development strategies

A) external environment

A donut shop chain opened its first store outside of North America with the opening of a shop in Australia. The donut company used a ________ strategy. A) market development B) product penetration C) market penetration D) cash cow E) product development

A) market development

A(n) ________ is a document that describes the marketing environment, outlines the marketing objectives and strategies, and identifies how the company will implement and control those strategies. A) marketing plan B) communications plan C) business plan D) operational plan E) financial plan

A) marketing plan

The vice president of marketing of a software development company periodically develops a(n) ________, which includes marketing research data on the target market, marketing objectives such as "to increase new customers by 20 percent," and a list of who will be responsible for implementation. A) marketing plan B) marketing mix C) pricing strategy D) action plan E) strategic plan

A) marketing plan

Marketing planning is followed by the ________, which details how the plan will be carried out, outlining the day-to-day execution. A) operational plan B) time line C) SWOT analysis D) strategic plan E) marketing metric

A) operational plan

Columbia Sportswear has introduced a new line of comfortable, lightweight clothing for people who fish. An example of ________ is the decision to run a full-page ad in Field & Stream magazine in May to get potential customers to ask their sporting goods stores to carry the new products. A) operational planning B) strategic planning C) business planning D) portfolio planning E) brand extension

A) operational planning

Southwest Airlines uses a ________ to target customers who could not previously afford air travel. A) pricing strategy B) market penetration strategy C) marketing metric D) distribution strategy E) mission statement

A) pricing strategy

The ________ is the most fundamental part of the marketing mix. A) product B) distribution C) price D) production E) profit

A) product

Which of the following quantifies how an investment in marketing impacts the firm's success, financially and otherwise? A) return on marketing investment B) marketing metrics C) SWOT analysis D) portfolio analysis E) PERT chart analysis

A) return on marketing investment

Which step in developing a marketing plan includes an analysis of the marketing environment? A) situation analysis B) development of marketing objectives C) selection of a target market D) development of marketing strategies E) implementation of the marketing plan

A) situation analysis

Areas of business within a firm that are different enough to have their own missions, business objectives, resources, managers, and competitors are referred to as ________. A) strategic business units B) market development units C) market penetration units D) standard business units E) competitive intelligence units

A) strategic business units

Analysis of a firm's internal environment identifies the firm's ________. A) strengths and weaknesses B) strengths and opportunities C) opportunities and threats D) weaknesses and threats E) strengths and threats

A) strengths and weaknesses

A firm's ________ is the market segment a firm selects because the firm's management believes the firm's offerings are most suited to winning those customers. A) target market B) business portfolio C) SBU D) SWOT E) marketing control

A) target market

Which of the following is a common objection to relying exclusively on ROMI for measuring marketing success? A) In a company's accounting statements, marketing expenditures tend to appear as investments rather than costs. B) Calculating ROMI requires knowing what would have happened if the marketing expenditures had never taken place. C) ROMI tends to lead managers toward a more long-term decision perspective. D) ROMI focuses on a firm's sustainability commitments to the detriment of its short-term performance. E) ROMI calculates profit by deducting expenditures rather than dividing by expenditures.

Answer: B

Which of the following most accurately identifies a difference between a weakness and a threat in SWOT analysis? A) A company is more able to change a threat than a weakness. B) A company is more able to change a weakness than a threat. C) A company can be more negatively affected by a weakness than by a threat. D) A company can be more negatively affected by a threat than by a weakness. E) A company can more easily identify threats than weaknesses.

B) A company is more able to change a weakness than a threat.

Which of the following is a true statement about business planning? A) Business planning involves taking action before developing objectives. B) Business planning is an ongoing process. C) Business planning is concerned with the long term but not the short term. D) Business planning is concerned with the short term but not the long term. E) Business planning takes place after development of the marketing plan.

B) Business planning is an ongoing process.

________ is the formal process of monitoring progress toward meeting marketing objectives. A) Corporate culture B) Control C) Implementation D) Situation analysis E) SWOT analysis

B) Control

________ generally cover a shorter time period than other plans, perhaps only one or two months, and include detailed directions for specific activities to be carried out. A) Time lines B) Operational plans C) Marketing plans D) Strategic plans E) Pricing strategies

B) Operational plans

________ refers to a company's estimate of the number of consumers who are willing and able to pay for a product. A) The market segment B) Potential demand C) Return on marketing investment D) The marketing mix E) The mass market

B) Potential demand

________ is the managerial decision process that matches the organization's resources and capabilities to its market opportunities for long-term growth. A) Operational planning B) Strategic planning C) Portfolio analysis D) SWOT analysis E) Corporate culture

B) Strategic planning

In the ________ step of the marketing planning process, decisions are made concerning what markets to target and what marketing mix strategies to use. A) perform a situation analysis B) develop marketing strategies C) implement the marketing plan D) control the marketing plan E) develop marketing metrics

B) develop marketing strategies

The market for two-way radios is disappearing. A company with a small share of the two-way radio market would be considered a ________ in terms of the BCG growth-market share matrix. A) problem child B) dog C) cash cow D) star E) question mark

B) dog

Concrete measures of various aspects of marketing performance are called ________. A) operational plans B) marketing metrics C) action plans D) marketing objectives E) pricing strategies

B) marketing metrics

Reach and frequency of advertising, timeliness and accuracy of competitive intelligence, and consumer word-of-mouth activity are all examples of ________. A) ROMI B) marketing metrics C) action plans D) SBU objectives E) situation analyses

B) marketing metrics

The ROI of a campaign, the value of a prospect, and the response rates in direct marketing are all examples of ________. A) promotions B) marketing metrics C) action plans D) situation analysis E) corporate culture

B) marketing metrics

Action plans are often referred to as ________. A) marketing mixes B) marketing programs C) ROMI measures D) marketing metrics E) promotional strategies

B) marketing programs

The ________ for Mothers Against Drunk Driving (MADD) is "to stop drunk driving, support the victims of this violent crime, and prevent underage drinking." A) operational plan B) mission statement C) portfolio analysis D) market penetration strategy E) diversification strategy

B) mission statement

A(n) ________ is a tool management uses to assess the potential of a firm's business portfolio. It helps management decide how to allocate resources among the firm's current SBUs. A) SWOT analysis B) portfolio analysis C) value chain D) operational plan E) compatibility assessment

B) portfolio analysis

The growth-market share matrix developed by the Boston Consulting Group (BCG) is a type of ________. A) SWOT analysis B) portfolio analysis C) value chain D) situational analysis E) compatibility assessment

B) portfolio analysis

The second step of the marketing planning process is to ________. A) perform a situation analysis B) set marketing objectives C) define a marketing mission D) identify a target market E) develop a marketing mix

B) set marketing objectives

Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and garden products and one that markets booklets. Each business is called a ________. A) separate entity B) strategic business unit (SBU) C) cash cow D) star E) business portfolio

B) strategic business unit (SBU)

Questions such as "What business are we in?" and "What customers should we serve?" are typically addressed in the ________ stage. A) operational planning B) strategic planning C) market targeting D) functional planning E) marketing planning

B) strategic planning

The three levels of business planning are ________. A) managerial, operational, promotional B) strategic, functional, operational C) portfolio, strategic, functional D) SWOT, strategic, tactical E) operational, functional, tactical

B) strategic, functional, operational

Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to hunt, hike, and bike ride. Its long-term plans include the development of lenses that, in addition to protecting users from UV rays, will also have effective water-sheeting action to reduce lens spotting. This new feature will be valuable to people who fish. In terms of a SWOT analysis, the company believes it can use the ________ of its reputation as a sunglasses manufacturer for a specialized market in combination with its current manufacturing facilities and labor force to enter this new market. A) weights B) strengths C) threats D) opportunities E) trends

B) strengths

Which of the following types of managers would be most likely to engage in operational planning on a regular basis? A) the company's CEO B) the company's sales manager C) the company's vice president of product research and development D) the company's vice president of human resources E) the company's chief financial officer

B) the company's sales manager

________ are rules of conduct that guide how most people in a culture judge what is right and what is wrong. A) Plans B) Values C) Ethics D) Habits E) Tactics

C) Ethics

________ is the third, or "nuts-and-bolts," level of planning. A) Strategic planning B) Functional planning C) Operational planning D) Product development E) Business planning

C) Operational planning

Assignment of responsibilities, time lines, budgets, and measurement and control processes are documented in a(n) ________. A) price strategy B) promotion strategy C) action plan D) strategic plan E) marketing mix

C) action plan

Strategic planning for a firm such as Disney with several SBUs probably occurs ________. A) only in its corporate headquarters B) only at the individual business unit level C) at both the overall corporate level and at the individual SBU level D) as needed based upon the success of the division E) at the location best suited for this function based upon findings of the SWOT analysis

C) at both the overall corporate level and at the individual SBU level

A film company has a high market share in the children's film market. The children's film market has low growth potential. This business fits into the ________ category of the BCG growth-market share matrix. A) problem child B) dog C) cash cow D) star E) question mark

C) cash cow

An SBU fits into the ________ category of the BCG model when sales have been steady and the firm has a large market share. A) problem child B) dog C) cash cow D) star E) question mark

C) cash cow

Argo is the world's leading brand of small vehicles that are designed to be driven on all types of terrain and in all types of weather. The vehicles can carry up to six passengers. The market for such vehicles has become stagnant due to the recent economic downturn. In terms of the BCG growth-market share matrix, Argo would be classified as a ________. A) problem child B) dog C) cash cow D) star E) question mark

C) cash cow

According to the BCG growth-market share matrix, ________ are strategic business units with products that have a dominant market share in a low-growth market. A) dogs B) exclamation points C) cash cows D) stars E) question marks

C) cash cows

A ________ is a firm's set of written standards of behavior to which everyone in the organization must subscribe and which establish standards for how the organization interacts with its stakeholders. A) civil law B) strategic plan C) code of ethics D) marketing plan E) business plan

C) code of ethics

In the ________ stage of marketing planning, marketers must determine how they want consumers to think of their product in comparison to competing products. A) develop a mission statement B) perform a situation analysis C) develop marketing strategies D) develop distribution strategies E) implement the plan

C) develop marketing strategies

Fence Patrol has developed an entirely new mounting system for chain link fences. Although they are a local company, through the acquisition of a distributor they now have the ability to market their products nationwide. Fence Patrol is most likely to be following a ________ strategy. A) market penetration B) market development C) diversification D) divesting E) product development

C) diversification

In firms with multiple SBUs, the first step in strategic planning is for top management to ________. A) recruit and hire the right personnel B) examine historical data C) establish a mission for the entire corporation D) allocate resources to the company's various SBUs E) establish marketing's short-term objectives

C) establish a mission for the entire corporation

There is a total of ________ different types of SBUs represented within the BCG growth-market share matrix. A) two B) three C) four D) five E) six

C) four

After marketing strategies are developed, the next step in marketing planning is ________. A) development of marketing objectives B) strategic planning C) implementation D) situation analysis E) pricing development

C) implementation

Making adjustments to the marketing plan is part of ________. A) SWOT analysis B) portfolio analysis C) implementation and control D) situation analysis E) return on marketing investment processes

C) implementation and control

A growth strategy that attracts users of competitive brands is called a ________ strategy. A) market development B) product penetration C) market penetration D) diversification E) product development

C) market penetration

When General Mills urged consumers to lower their cholesterol by eating Cheerios twice a day over the course of six weeks, the aim was to increase usage among current customers. General Mills used a ________ strategy. A) market development B) product penetration C) market penetration D) diversification E) product development

C) market penetration

The four Ps are the components of the ________. A) marketing environment B) functional planning mix C) marketing mix D) marketing concept E) controls

C) marketing mix

In a marketing plan, the ________ state what the marketing function must accomplish to achieve overall business objectives. A) situation analyses B) strategic plans C) marketing objectives D) market development strategies E) marketing controls

C) marketing objectives

A sales manager sets an objective for her team to increase the units sold by 5% for the quarter. This objective is most likely part of a detailed ________ plan that is created annually, semiannually, or quarterly. A) strategic B) functional C) operational D) product development E) human resources

C) operational

Orkin Pest Control Service knows homeowners skimp on maintenance such as pest control during recessions. It also knows that the more consumers know about bugs, the more likely they are to buy the company's services. So Orkin teamed with the Smithsonian Institution on the Insect Safari, a traveling exhibit designed to teach people about the critters. The Safari truck visited 108 cities during one year, leaving a wake of creeped-out insectophobes reaching for the phone numbers of the local Orkin franchise. Business increased in each city the Safari truck visited. Decisions on which cities to visit and what kinds of promotion to use in each city visited are both examples of ________ plans. A) functional B) portfolio C) operational D) strategic E) control

C) operational

Analysis of the external environment of an organization identifies the organization's ________. A) strengths and weaknesses B) strengths and opportunities C) opportunities and threats D) weaknesses and threats E) strengths and threats

C) opportunities and threats

The ________ determines how much a firm charges for a product. A) Gantt chart analysis B) PERT chart analysis C) pricing strategy D) product strategy E) return on marketing investment

C) pricing strategy

Which of the following best describes the components of the marketing mix? A) all aspects of the marketing environment B) everything considered during functional planning C) product, price, place, and promotion D) production, price, distribution, and people E) people, product, price, and placement

C) product, price, place, and promotion

SBU stands for ________. A) strategic buying utilities B) successful business utilities C) strategic business units D) standard business units E) successful business units

C) strategic business units

Biopure is a company that manufactures and markets oxygen therapeutics. Its products are Hemopure for human use and Oxyglobin for animal use. Both have been developed as alternatives to red blood cell transfusions. Which of the following would be part of Biopure's internal environment? A) approval by the U.S. Food and Drug Administration to allow veterinarians to use Oxyglobin B) the global market for the raw materials needed to make Hemopure and Oxyglobin C) the patented manufacturing process that Biopure uses to produce Hemopure and Oxyglobin D) a competitor developing a similar product E) changes in patent law

C) the patented manufacturing process that Biopure uses to produce Hemopure and Oxyglobin

The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. In order to increase market share, managers would be most likely to decide which of the following? A) hold the pharmaceuticals division's share B) implement a harvest strategy C) use money from a cash cow to promote the pharmaceuticals division D) divest the SBU E) diversify the pharmaceutical division

C) use money from a cash cow to promote the pharmaceuticals division

Which of the following is a limitation of the BCG matrix? A) It doesn't help managers determine which SBUs need investment to grow. B) It doesn't help managers determine which SBUs should be dropped from the portfolio. C) It focuses on the future of the market rather than current conditions. D) It doesn't tell managers the best ways to make growth happen. E) It can't be used by corporations with multiple SBUs.

D) It doesn't tell managers the best ways to make growth happen.

When the makers of a ballpoint pen state they are in the communication equipment business, they are defining their mission too ________. A) narrowly B) realistically C) specifically D) broadly E) socially

D) broadly

The CEO, president, and top executive officers are responsible for ________ in the strategic plan. A) operational planning B) developing the details of the pricing strategy C) designing ad campaigns D) defining the firm's purpose E) employee benefits

D) defining the firm's purpose

John H. Harland Company is best known for printing personal and business checks, but it also owns Scantron, a computerized testing and assessment company. Harland's purchase of Scantron is an example of the implementation of a ________ strategy. A) market development B) product penetration C) market penetration D) diversification E) product development

D) diversification

When McDonald's purchased Donato's Pizza and a controlling interest in Chipotle Mexican Grills, the company was pursuing a ________ strategy. A) market development B) product penetration C) market penetration D) diversification E) product development

D) diversification

Vice presidents of large companies are typically in charge of ________ planning. A) business B) strategic C) operational D) functional E) day-to-day

D) functional

A business plan ________. A) is a document that outlines marketing strategies B) identifies how a company will measure and control specific marketing strategies C) is another name for a marketing plan D) includes the decisions that guide the entire organization or its business units E) is another name for a SWOT analysis

D) includes the decisions that guide the entire organization or its business units

Within a larger corporation, each SBU ________. A) has its own business portfolio B) has access to equal resources C) has separate shareholders D) is a separate profit center E) is dependent upon central management for a mission statement

D) is a separate profit center

Archetype is a Unilever SBU that markets a number of different tea brands around the world. Each brand addresses the taste and emotions of local tea cultures. Which of the following would be part of Archetype's internal environment? A) changes in the way people drink tea B) increased competition from a local tea producer C) government regulations of information on package labels D) marketing Archetype does to reach consumers and satisfy their cultural needs E) a shortage of tea leaves due to unusual weather conditions

D) marketing Archetype does to reach consumers and satisfy their cultural needs

The first step of the marketing planning process involves closely examining the ________. A) marketing strategies B) product development process C) marketing controls D) marketing environment E) functional plan

D) marketing environment

If Xerox had continued to define its ________ in terms of just producing copy machines instead of providing "document solutions," the shift to electronic documents would have left the company in the dust. A) return on marketing investment B) portfolio analysis C) SWOT analysis D) mission E) external environment

D) mission

Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to hunt, hike, and bike ride. Its long-term plans include the development of lenses that, in addition to protecting users from UV rays, will also have effective water-sheeting action to reduce lens spotting. This new feature will be valuable to people who fish. Serengeti has determined that fishing is one of the fastest growing sports in the United States. In terms of a SWOT analysis, Serengeti has recognized a market ________. A) weakness B) strength C) threat D) opportunity E) trend

D) opportunity

Product planners for JetBlue Airways decided to include in-seat video games and television during flights. This is an example of a ________ for JetBlue. A) target market selection strategy B) pricing strategy C) control process D) product strategy E) marketing metric

D) product strategy

Advertising, sales promotion, public relations, direct marketing, and personal selling are all part of the ________. A) target market strategy B) pricing strategy C) product strategy D) promotion strategy E) distribution strategy

D) promotion strategy

Unilever makes Rexona deodorant and antiperspirant, a leading brand of deodorant and antiperspirant. Because the worldwide market for deodorants and antiperspirants is growing rapidly, Rexona would be classified as a ________ on the BCG growth-market share matrix. A) problem child B) dog C) cash cow D) star E) question mark

D) star

According to the BCG growth-market share matrix, ________ are strategic business units with products that have a dominant market share in a high-growth market. A) problem children B) exclamation points C) cash cows D) stars E) question marks

D) stars

The second step in strategic planning is to ________. A) formalize a mission statement B) establish the business portfolio C) set SBU and department-level objectives D) set organizational objectives E) assess the organization's internal and external environments

E) assess the organization's internal and external environments

As a part of the ________ process, managers need to look carefully at why a company isn't meeting its objectives. A) diversification B) market development C) brand competition D) marketing mix E) control

E) control

The ________ outlines how, when, and where the firm will make the product available to targeted customers. A) target market strategy B) pricing strategy C) product strategy D) promotion strategy E) distribution strategy

E) distribution strategy

A firm's internal business environment does NOT include ________. A) its employees B) its corporate culture C) its products D) its technologies E) elements of the legal environment

E) elements of the legal environment

Columbia Sportswear makes nylon activewear. Its marketing manager set a goal to increase sales 12 percent over the next three years through the introduction of a new line of comfortable, lightweight clothing for people who fish. The marketing manager is engaged in ________. A) operational planning B) strategic planning C) control planning D) portfolio planning E) functional planning

E) functional planning

Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its ________ as creating "abundant food and a healthy environment." A) strategy B) marketing development C) business portfolio D) value-delivery network E) mission

E) mission

Edy's is a high quality brand of ice cream. Edy's introduced Godiva ice cream and Starbucks ice cream to tempt ice cream lovers to eat even more ice cream. Edy's used a ________ strategy. A) market development B) product penetration C) market penetration D) diversification E) product development

E) product development

Teddy Grahams are small graham cookies shaped like teddy bears. Nabisco, which makes Teddy Grahams, created Teddy Graham Bearwich cookies (two Teddy Grahams stuck together with a cream filling) to implement its ________ strategy. Nabisco believed its Teddy Grahams customers would buy the new product as well. A) market development B) product penetration C) market penetration D) diversification E) product development

E) product development

The ________ provides managers with four different fundamental marketing strategies: market penetration, market development, product development, and diversification. A) BCG growth-market share matrix B) portfolio analysis C) strategic plan D) SWOT analysis E) product-market growth matrix

E) product-market growth matrix

According to the BCG growth-market share matrix, ________ are strategic business units with products that have low market shares in fast-growth markets. A) dogs B) exclamation points C) cash cows D) stars E) question marks

E) question marks