mrkt chapter 2
Which of the following is not an example of a market-oriented mission statement?
"We hold online auctions."
Which of the following is not a market-oriented business definition?
"to sell tools and home repair and improvement items"
_____ can be a company division, a product line within a division, or sometimes a single product or brand.
An SBU
_____ entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy.
Downsizing
Harris, the marketing manager at a small sports retail chain, has conducted a marketing analysis. He has investigated the company's internal resources and situational factors, as well as factors and trends in the competitive sports retail chain market. Which of the following has Harris completed?
SWOT analysis
Which of the following would not be a useful tool for determining marketing ROI?
SWOT analysis
_____ is the place a product occupies in the consumer's mind relative to competition.
Product position
_____ involves looking at whether a company's basic strategies are well matched to its opportunities.
Strategic control
involves adapting a firm to take advantage of opportunities in its constant changing environment.
Strategic planning
is the task of developing and maintaining an overall company strategy for long-run survival and growth.
Strategic planning
. After management has identified the key businesses making up its company, what is the next step?
assess the attractiveness of its SBUs
When the makers of a ballpoint pen state they are in the communication equipment business, they are defining their mission too ________.
broadly
The collection of businesses and products that make up a company is called its ________.
business portfolio
In 1999, Starbucks purchased Hear Music and began making compilation music CDs to play and sell in its stores. It has also tested new restaurant concepts, such as Circadia in San Francisco. Starbucks is implementing ________.
diversification
The Bank of New York bought Pershing, an off-shore investment firm with operations in India, from Credit Suisse First Boston. The Bank of New York is pursuing a ________.
diversification strategy
A company is on the "right track" for the first step of strategic planning if its mission statement fits the ________ environment.
market
Acme, Inc., has modified the production processes of its widgets and gadgets in order to tap into the Eastern European market. Acme is likely following a ________ strategy.market development
market development
Disney is identifying and developing new markets for its theme parks. Disney is exploring possibilities for ________.
market development
Which department in a company carries the primary responsibility for achieving profitable growth?
marketing
Which of the following measures the profits generated by investments in marketing activities?
marketing ROI
The ________ is a comprehensive and systematic analysis of a company's environment, objectives, strategies, and activities that is conducted by an outside and objective party.
marketing audit
As Starbucks continues to grow, it is faced with myriad challenges and surprises during the implementation of marketing plans. Hence, the marketing department must practice constant ________.
marketing control
Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________.
marketing control
Peter Cramer is constantly involved in evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained. What do we call Peter's current work?
marketing control
To be successful at marketing, companies must be effective at marketing planning and then ________.
marketing implementation
The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and ________.
measuring performance; taking corrective action
Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its ________ as creating "abundant food and a healthy environment."
mission
A vendor for Ford Motor Company received the following message from one of Ford's marketing managers: "As we move forward during the 21st century, it is incumbent upon us to inform you that Ford is committed to building profitable customer relationships by creating environmentally better cars and getting them to market faster at lower costs." The marketing manager is referring to Ford's
mission statement
Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be?
mission statement
The text suggests that instead of thinking of selling products, marketers would be wise to take the customer's view and think of ________.
offering solutions to problems
Ensuring that the company achieves the sales, profits, and other goals set out in its annual marketing plan is the purpose of ________.
operating control
In SWOT analysis, which of the following refers to factors in the external environment?
opportunities
Paul Pierce is busy working with other managers evaluating the products and businesses making up their company. Paul is engaged in ________.
portfolio analysis
Jill Reno has researched new markets and has decided which segments to enter. Next she should decide what ________ her company should occupy in those segments.
position
In the marketing management functions, an SWOT analysis should ________ a marketing plan.
precede
In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________.
product
All of the following are examples of product-oriented mission statements, except which one?
"At Revlon, we sell lifestyle and self-expression; success and status; memories, hopes, and dreams."
All of the following are accurate guidelines for a company's mission statement except which one?
A mission statement should be narrow.
_____ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.
Cash cows
Which of the following does not accurately reflect a problem with the BCG matrix approach?
It focuses on future planning.
_____ involves evaluating each market segment's attractiveness and selecting one or more segments to enter.
Market targeting
_____ is the marketing logic by which a company hopes to achieve profitable customer relationships.
Marketing strategy
_____ should be market oriented and defined in terms of ________.
Mission statements; customer needs
Which of the following is not a reason that a firm might want to abandon products or markets?
The economic climate is showing signs of recovery.
Which of the following is a useful tool for identifying growth opportunities?
the product/market expansion grid
Which of the following is not essential for the successful implementation of a company's marketing strategies?
a functional organization of the company's departments
An increasingly large number of firms are changing their organizational focus from ________ to ________.
brand management; customer relationship management
In the BCG matrix, income from ________ can be used to help finance the company's question marks and stars.
cash cows
Which of the following is not a step in the strategic planning process?
collaborating with suppliers on multiple fronts choice is extreme
A sound marketing strategy begins with _______.
customer analysis
Lucy Ortiz has just prepared a PowerPoint presentation of the marketing process to show at a sales meeting. If you look closely, you will see that ________ appear in the center.
customer relationships
Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is ________.
decentralized
The first step in strategic planning is to
define the company mission
Which of the following is not a step in the marketing control process?
defining the mission
Environmental Service Company wants to practice effective positioning. To do so, the owners must ________ their marketing offering to give consumers more value than the services offered by competitors.
differentiate
Effective positioning begins with ________ the company's marketing offer in order to give consumers more perceived value.
differentiating
The current mission statement of the Girl Scouts of America reads "where girls grow strong." The organization's former mission statement had read "to prepare young girls for motherhood and wifely duties." This change reflects the guideline that mission statements should ________.
fit the market environment
Emerson Studios, a chain of 25 portrait stores in five states, has organized its marketing organization into different marketing activities that are headed by specialists. What type of organization is this?
functional
Under the ________ organizational format of marketing departments, different marketing activities are headed by a specialist such as a sales manager, advertising manager, marketing research manager, or customer-service manager.
functional
Wal-Mart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the U.K., and Germany, and other nations. This is an example of how Wal-Mart is pursuing ________ as a growth strategy.
geographical market development
Mountain Home Farms is now using the product/market expansion grid to develop strategies. The owners of the company have most likely found the grid to be quite useful for identifying ________.
growth opportunities
The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________.
harvesting; divesting
In SWOT analysis, which of the following would be considered a strength?
internal resources
In the Boston Consulting Group approach, ________ provide(s) a measure of market attractiveness.
market growth rate
The ________ organizational system's main advantage is that the company is organized around the needs of specific market segments.
market management
Favorite Memories specializes in serving market segments that major competitors overlook and ignore. Which of the following best describes Favorite Memories?
market nicher
Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________.
market or industry attractiveness; strength of the SBU's position
Making more sales to current customers without changing a firm's products is ________.
market penetration
Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. This effort by Starbucks management is an example of ____________.
market penetration
Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing else." These statements reflect a firm's ________.
market positioning
For Hyundai Corporation, customers who care about the price of a car and its operating economy make up one ________.
market segment
Paul Pendergraff has discovered a group of potential customers who seem to respond in a similar way to a given set of marketing efforts. Paul has discovered a(n) ________.
market segment
TelStar Plastics is in the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing programs. Which of the following is this firm doing?
market segmentation
The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors is called ________.
market segmentation
The process of customer-driven marketing involves ________, ________, ________, and ________.
market segmentation; target marketing; differentiation; positioning
Paul Pendergraff is evaluating each market segment's attractiveness and is in the process of selecting one or more segments for his firm's product to enter. What is Paul doing?
market targeting
A ________ defines a business in terms of satisfying basic customer needs.
market-oriented mission statement
The ________ organizational format was first used by Procter and Gamble in 1929.
product management
Management must think hard about which ________ it should try to build into stars, and which should be phased out.
question marks
In the Boston Consulting Group approach, _____ serve(s) as a measure of company strength in the market.
relative market share
Most companies today enter a new market by serving a ________, and if this proves successful, they ________.
single market segment; add segments
In the BCG approach, ________ are high-share, high-growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into ________.
stars; cash cows
The BCG growth-share matrix classifies four types off SBUs. They are ________ , ________ , ________ , and ________.
stars; cash cows; question marks; dogs
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 ________.
strategic business unit (SBU)
Juanita Castro is looking at whether her company's strategies are well matched to its opportunities. Juanita is utilizing ________.
strategic control
Modern marketing departments are arranged into the following ways, except which one?
strategic management organization
Starbucks has an annual plan in place to deal with the company's current SBUs and their operations. However, as a growth-oriented firm, Starbucks is interested in both domestic and international markets. This requires Starbucks to constantly monitor the environment and adapt to the opportunities with which it is presented. To take advantage of its constantly changing environment, Starbucks needs a ________ in place.
strategic plan
To increase its U.S. market share, Starbucks has stepped up efforts in the areas of product availability and promotion. These are examples of broad _____.
strategies for growth
Revlon has clearly defined its "mission" of selling lifestyle and self-expression. In order for the firm to launch its strategic plan, the mission needs to be turned into detailed ________ that guide each level of the company.
supporting objectives
The best known product portfolio planning method was developed by ________.
the Boston Consulting Group
The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. In order to increase market share, managers may decide to _____.
use money from a cash cow to promote the pharmaceuticals division
Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.
value chain
Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient _____.
value-delivery network
Wal-Mart relies on sound relationships with its low-cost suppliers in order to pass low prices on to consumers. Thus, forming a ________ is crucial to Wal-Mart's success.
value-delivery network
The management of an organization should reexamine the organization's mission statement
when the organization is drifting