Bus 312 Ch.2 study plan Q&A
__________ involves evaluating each market segments attractiveness and selecting one or more segments to enter. A. Market positioning B. Market targeting C. Marketing mix D. Market segmentation E. Market differentiation
Correct. After a company has defined its market segments, it can enter one or many of these segments. Market targeting involves evaluating each market segment separately In order to select the ones that are attractive.
What are the main components of a marketing plan? A. Product, price, place, and promotion B. A mission statement, objectives, and a business portfolio C. A marketing budget and a marketing dashboard D. An executive summary, situation analysis, objectives, strategy, action programs, budgets, and controls E. Segmentation, targeting, and positioning
Correct. A typical marketing plan starts with an executive summary, which is followed by a situation analysis. Next, major objectives are stated, followed by a marketing strategy to achieve them. Next is an action program to implement the strategy, a supporting marketing budget, and the controls that will be used to monitor progress.
___________ is at the core of any marketing strategy. A. Segmenting, targeting, and positioning B. The marketing mix C. Competitors, suppliers, and publics D. Planning, analysis, and implementation E. Customer value and relationships
Correct. At the core of any marketing strategy is creating customer value and profitable customer relationships.
In the strategic planning process, the business portfolio is designed after ________. A. planning marketing strategies B. the strategic planning process is completed C. planning functional strategies D. setting company objectives and goals E. defining the company mission
Correct. Designing the business portfolio is the third step in the strategic planning process and occurs after setting company objectives and goals. Next Question
In 2005, Proctor and Gamble purchased Gillette, makers of shaving products, and added these to the existing P&G portfolio. Which growth strategy did P&G use in acquiring Gillette? A. Market penetration B. Diversification Your answer is correct.C. Product development D. Market development E. Divestment
Correct. Diversification is a growth strategy in which a company starts or buys a business beyond its current products and markets. This is what P&G did when it acquired Gillette.
Each department can be thought of as a link in the company's __________. A. delivery network B. market segmentation C. value chain D. marketing management E. marketing mix
Correct. Each company department can be thought of as a link in the company's internal value chain. That is, each department carries out value-creating activities.
Marketing can disrupt the internal value chain and cause conflicts to develop because it can potentially _______. A. make all departments "think consumer" B. gain commitment from the entire company to engage customers C. increase production costs, increase inventories, cause budget headaches and disrupt production schedules D. coordinate the efforts of different company departments to deliver customer value E. align all functional areas with the goal of increasing customer value
Correct. Increasing customer satisfaction can potentially increase production costs, increase inventories and disrupt production schedules which can cause other departments to resist the marketing department's efforts.
Nike states that it wants to "bring inspiration and innovation to every athlete in the world." This is Nike's _________. A. product-oriented mission statement B. market-oriented mission statement C. strategy D. marketing plan E. objective
Correct. Market oriented mission statement states Nike's broader purpose in terms of customer needs and wants.
The Dollar Store and Family Dollar profitably focus on buyers with modest means with their market offerings. This is an example of _________. A. market segmentation B. marketing control C. positioning D. market targeting E. the marketing mix
Correct. Market targeting is the process of evaluating a market segment's attractiveness and choosing one or more segments to enter with a market offering. The Dollar Store and Dollar Tree have targeted buyers with modest means as an attractive segment to serve.
Which of the following is a true statement regarding managing and measuring marketing return on investment (ROI)? A. ROI is being used less today because marketing managers are not as accountable for performance as they were in the past. B. One reason ROI is used is because it is easy to measure. C. Marketers increasingly use customer-centered measures of ROI that include brand awareness, sales, and market share. D. Marketers define ROI as a quantitative measure derived by dividing returns (that is, profits) by the costs of the investments. E. Marketers are increasingly using measures such as customer acquisition and retention, customer engagement, and customer equity as measures of ROI.
Correct. Marketers are increasingly using customer-centered measures of ROI which include acquisition and retention, engagement, lifetime value and equity.
Which one of the following statements about marketing's role in strategic planning is correct? A. Marketing provides inputs to strategic planners. B. Marketing does not design strategies. C. Marketing oversees the planning of each business unit. D. Marketing is unrelated to a company's guiding philosophy. E. Marketing does not contribute to profitability.
Correct. Marketing does provide inputs to strategic planners to help identify attractive market opportunities.
__________ plays a key role in the company's strategic planning. A. Human Resources B. Operations C. Finance D. Marketing E. Accounting
Correct. Marketing plays a key role in the company's strategic planning by providing a marketing concept philosophy and inputs regarding attractive market opportunities.
company's mission statement should be focused on __________. A. investment B. customers C. sales D. profit E. objectives and goals
Correct. Mission statements should be market oriented and defined in terms of satisfying basic customer needs.
In SWOT analyses, the favourable factors or trends in the external environment that the company may be able to exploit to its advantage are referred to as __________. A. threats B. strengths C. weaknesses D. opportunities E. targets
Correct. Opportunities are an important component of SWOT analyses. After analyzing its strength and weaknesses, the company should analyze its markets and marketing environment to find attractive opportunities for the business.
Which of the following steps in the strategic planning process is done at the business unit level? A. Planning marketing strategies B. Setting company goals C. Designing the business portfolio D. Setting company objectives E. Defining the company mission
Correct. Planning marketing and other functional strategies is done at the business unit, product and market level.
Ben & Jerry's frequently expand its line of ice cream with new flavors. Which market growth strategy is Ben & Jerry's using? A. Harvesting B. Market development C. Diversification D. Market penetration E. Product development
Correct. Product development involves offering new or modified products to an existing market.
__________ refers to activities that communicate the merits of the product and persuade target customers to buy it. A. Segmentation B. Differentiation C. Promotion D. Targeting E. Positioning
Correct. Promotion is a component of the marketing mix that refers to activities such as advertisement that highlight the merits of the product being sold and persuade the customers to buy it.
According to the BCG matrix, ______ are high-share, high-growth products. When the market growth slows, these products become ________. A. cash cows; stars B. question marks; stars C. cash cows; dogs D. stars; cash cows E. question marks; cash cows
Correct. Stars are high-share, high-growth products. Cash cows are high-share, low-growth products. Next Question
What is one primary purpose of a product's position? A. To identify groups of consumers with similar needs B. To gain market share C. To get eye level in-store shelf space D. Differentiation E. To choose which segments to serve with a market offering
Correct. Successful positioning differentiates a market offering from those of competitors and communicates how it delivers value better than those competitors.
What are the two measures the BCG matrix uses to classify SBUs and products in the portfolio? A. Relative market share and number of products the company produces B. Market growth rate and degree of competitiveness C. Relative market share and return on investment (ROI) D. Relative market share and market growth rate E. Market growth rate and return on investment (ROI)
Correct. The BCG growth-share matrix uses relative market share and market growth rate to classify SBUs and products.
One way for companies to improve the performance of the ______ is by partnering with suppliers, distributors, and customers. A. strategic plan B. value delivery network C. marketing system D. internal value chain E. competitive delivery network
Correct. The external value delivery network consists of partnerships with suppliers, distributors, and customers.
The first step in strategic planning involves __________. A. setting objectives and goals B. designing a business portfolio C. developing functional plans D. developing a marketing plan E. defining the company's mission
Correct. The first step in strategic planning involves defining the company's mission. Forging a sound mission begins with the following questions: What is our business? Who is the customer? What do consumers value? What should our business be?
The four Ps of the marketing mix are redefined in buyer terms as the four As. What are the four As of the marketing mix? A. Approaches, added incentives, accessibility, awareness B. Affordability, accessibility, added incentives, awareness C. Acceptability, accessibility, awareness, advantage D. Added incentives, advantage, aptitude, alternatives E. Acceptability, affordability, accessibility, awareness
Correct. The four As are acceptability (product), affordability (price), accessibility (place), and awareness (promotion).
The major activity in strategic planning is the analyses of a business __________. A. experience B. portfolio C. unit D. goal or objective E. plan
Correct. The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company. The company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones. Next Question
One key role marketing plays in a company's strategic planning is to _________. A. provide a guiding philosophy B. take advantage of opportunities identified by the strategic planners C. work to add customer value so other departments do not have to be concerned with it D. focus on the customer while other departments formulate strategies E. allow other departments to not be concerned with marketing
Correct. The marketing concept is a guiding philosophy that suggests that company strategy should revolve around creating customer value and building profitable customer relationships.
The most common form of marketing organization is __________. A. functional organization B. geographic organization C. product organization D. product management organization E. customer management organization
Correct. The most common form of marketing organization is the functional organization, under which different marketing activities are headed by a functional specialistlong dash—a sales manager, an advertising manager, a marketing research manager, a customer service manager, or a new product manager.
The primary purpose of a strategic plan is to ________________. A. expand into new markets B. build profitable customer relationships C. establish market share objectives D. develop and maintain a strategic fit between a company's goals and capabilities and its changing marketing opportunities E. design a business portfolio
Correct. The primary purpose of a strategic plan is to develop and maintain a strategic fit between a company's goals and capabilities and its changing marketing opportunities.
Assume the economy is in a recession. Mario's custom jewelry is expensive and sales are down. In a situation analysis (SWOT), the state of the economy is a(n)______ and Mario's pricing structure is a(n) ________. A. threat; strength B. weakness; threat C. threat; weakness D. weakness; weakness E. opportunity; weakness
Correct. Threats are unfavorable external conditions that present challenges to performance. Weaknesses are internal limitations that may interfere with the company's performance. Mario's high prices are a weakness due to the recession, which is a threat.
Which of the following is not one of the five marketing management functions? A. Control B. Implementation C. Analysis D. Planning E. Customer service
Correct. While it is critical to marketing success, customer service is not one of the four marketing management functions.