BMKT Chapter 2 T/F

A firm's mission statement should be the basis for both its business and marketing objectives.

False

A market segment consists of consumers who respond in different ways to a given set of marketing efforts.

False

At Trader Joe's, "our mission is to bring all our customers the best food and beverage values to be found anywhere, and the information to make informed buying decisions." This is a product-oriented business definition.

False

Holiday Inn has 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 targeting.

False

In the BCG matrix, "dogs" are low-growth businesses and products that do not generate enough cash to maintain themselves.

False

Mandros International Foods evaluates each market segment's attractiveness and selects one or more segments to enter when considering adding new lines of imported foods. Mandros is engaged in positioned marketing.

False

Mission statements should be realistic and general in nature.

False

One valid criticism of the four Ps concept is that services are not considered.

False

The growth strategy of diversification involves offering modified or new products to current markets.

False

The image of a product in the minds of consumers is called market segmentation.

False

The major activity in strategic planning is strategic business unit planning, whereby management evaluates the products and businesses making up the company.

False

The marketing mix consists of product, price, place, positioning, and promotion.

False

When a firm finds products or businesses that no longer fit its overall strategy, it should carefully milk, harvest, or better develop them.

False

When designing business portfolios, most companies are well advised to add a broad range of products and businesses to their organization.

False

"At Joe's Diner, we serve great burgers" is a product-oriented business definition.

True

ABC Fortunes has just developed a formal statement of its purpose. This firm has put together a mission statement.

True

Four marketing management functions are analysis, planning, implementation, and control.

True

Guided by marketing strategy, the company designs a marketing mix made up of factors under its control: product, price, place, and promotion.

True

In today's marketplace, competition increasingly takes place between entire value delivery networks rather than between individual competitors.

True

Mission statements should both emphasize the company's strengths in the marketplace and be motivating.

True

The four Cs concept takes the buyer's view of the market.

True

The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment.

True

To improve its value delivery network, a company needs to examine the value chains of its suppliers and distributors.

True

When a company positions its product, it should first identify possible customer value differences within a market segment that could be the basis of a competitive advantage for the product.

True

When an organization identifies and develops new markets for its current products and services, it is engaged in market development.

True