Marketing Ch 2

79. More and more companies are shifting their brand management focus toward _____. a. ERP b. CRM c. BCG d. BPOs

b. CRM

17. _____ are low-growth, high share businesses or products. They generate a lot of cash that the firm uses to pays its bills and support other SBUs that need investment. a. Stars b. Cash cows c. Question Marks d. Dogs

b. Cash cows

18. Management must think hard about which _____ it should try to build into stars and which should be phased out. a. "Stars" b. "Dogs" c. "Question Marks" d. "Cash cows"

c. "Question Marks"

8. _____ can be a company division, a product line within a division, or sometimes a single product or brand. a. A market b. The BCG c. An SBU d. All of the above are correct

c. An SBU

63. All of the following statements are true, except which one? a. Companies know that they cannot profitably serve all consumers in a given market in the same way. b. Consumer needs vary considerably. c. Most companies are not in a position to serve some segments better than others. d. Sound marketing requires a careful customer analysis.

c. Most companies are not in a position to serve some segments better than others.

What is wrong with the following mission statement? "The goal of American furniture is to sell modern home furnishings for today's consumer." a. It is product oriented. b. It is vague. c. It is too generic. d. All of the above.

d. All of the above.

22. The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors is called _____. a. target marketing b. positioning c. marketing strategy d. market segmentation

d. market segmentation

64. All of the following statements are true, except which one? a. Amazon.com is wise not to focus its efforts on meeting the distinct needs of individual market segments. b. Johnson and Johnson's Tylenol would gain little by distinguishing between male and female users of pain relievers if both respond the same way to marketing efforts. c. Ritz Carlton has carefully positioned itself at the high end of the customer service spectrum. d. Hyundai Corporation first started out targeting customers who mainly cared about Price.

a. Amazon.com is wise not to focus its efforts on meeting the distinct needs of individual market segments.

56. All of the following statements are true, except which one? a. It is important to do strategic planning at a site very close to the office. b. An off-site location offers neutral ground where employees can be much more candid during strategic planning efforts. c. An off-site location takes entrepreneurs too far away from the scene of the fires they spend time stamping out. d. all of the above

a. It is important to do strategic planning at a site very close to the office.

1._____ is the task of selecting an overall company strategy for long-run survival and growth. a. Strategic market planning b. Annual market planning c. Short-term planning d. None of the above is correct

a. Strategic market planning

14. All of the following phrases accurately reflect problems with the BCG matrix approach, except which one? a. They are easy to implement. b. They can be costly. c. They can be time consuming to implement. d. It is difficult to define SBUs and measure market share and growth.

a. They are easy to implement.

4. A _____ defines a business in terms of satisfying basic customer needs a. market oriented mission statement b. strategic plan c. annual plan d. none of the above is correct

a. market oriented mission statement

32. Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called _____. a. marketing control b. strategic control c. operating control d. none of the above

a. marketing control

82. In the Boston Consulting Group approach, _____ serve(s) as a measure of company strength in the market. a. relative market share b. SBUs c. cash cows d. market growth rate

a. relative market share

30. Most companies today enter a new market by serving a _____, and if this proves successful, they _____. a. single market segment; add segments b. multitude of segments; add more segments c. few segments; add more segments d. none of the above is correct

a. single market segment; add segments

5. All of the following are accurate descriptions of a company's mission statement, except which one? a. Mission statement should be realistic. b. Mission statement should be broad. c. Mission statement should fit the market environment. d. Mission statements should be written for 'public relations' purposes.

b. Mission statement should be broad.

26. _____ is the place a product occupies in the consumer's mind relative to competition. a. Product placement b. Product positioning c. Market segmentation d. Target marketing

b. Product positioning

6. All of the following are market-oriented mission statements, except which one? a. eBay's mission is to connect individual buyers and sellers online. b. Singapore Airlines is the world's largest airline. c. Girl Scouts of America, "where girls grow strong." d. Wal-Mart, "we deliver low prices everyday."

b. Singapore Airlines is the world's largest airline.

49. All of the following are generic market-oriented mission statements, except which one? a. We are committed to serving and enhancing the quality of life of cultures and communities everywhere on this planet. b. We strive very hard to serve the needs of all stakeholders, whether they are customers, suppliers, employees, or shareholders, to the highest ethical standards of integrity. c. We are committed to feed the hungry and poor on this planet. d. None of the above

b. We strive very hard to serve the needs of all stakeholders, whether they are customers, suppliers, employees, or shareholders, to the highest ethical standards of integrity.

15. Unlike former strategic-planning efforts, today's strategic planning has been _____. a. short-term oriented b. decentralized c. limitation free d. customer friendly

b. decentralized

50. Colgate toothpaste, the flagship product of Colgate-Palmolive company, has been a success for generations. The parent company's success is so well known that it could enter the solar energy business, but that would not take advantage of its core competency, providing a plethora of brands to large groups of customers. This reflects that Colgate Palmolive should base its mission on its _____. a. market environment b. distinctive competencies c. bottom-line orientation d. resource strengths

b. distinctive competencies

19. Disney is identifying and developing new markets for its theme parks. Disney is exploring possibilities for _____. a. market penetration b. market development c. Japan d. product development

b. market development

11. Most portfolio analysis methods evaluate SBUs on two dimensions, namely _____ and _____. a. market share; sales b. market growth rate; relative market share c. market attractiveness; market growth rate d. none of the above is correct

b. market growth rate; relative market share

78. The _____ organizational system's main advantage is that the company is organized around the needs of specific market segments. a. product management b. market management c. geographic management d. functional management

b. market management

62. A company's marketing strategy entails three steps: _____, _____ and _____. a. product; price; promotion b. market segmentation; target marketing; market positioning c. marketing analysis; planning; implementation d. analysis; implementation; control

b. market segmentation; target marketing; market positioning

35. The _____ is normally conducted by an objective and experienced outside party. The findings are later presented to management. Management then decides which actions make sense and how and when to implement them. a. marketing planning b. marketing audit c. advertising plan d. none of the above

b. marketing audit

36. The uncontrollable macro forces to which a firm must adapt is called the _____. a. micro environment b. marketing environment c. marketing audit d. none of the above

b. marketing environment

72. To be successful at planning good strategies, companies must also be effective at _____. a. marketing analysis b. marketing implementation c. marketing control d. marketing audits

b. marketing implementation

46. 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 _____. a. marketing objectives b. marketing strategies c. marketing goals d. none of the above is correct

b. marketing strategies

3. What is our business? Who is our customer? What do our customers value? What should our business be? All these simple-sounding questions define a firm's _____. a. objectives and goals b. mission statement c. business portfolio d. marketing and functional strategies

b. mission statement

33. To ensure that the company achieves the sales, profits, and other goals set out in its annual marketing plan is called _____. a. marketing control b. operating control c. strategic control d. marketing audit

b. operating control

48. McDonald's has traditionally been preoccupied with its current businesses and how to keep them going. It has been accused of being complacent when it comes to opportunities in its constantly changing environment. _____ involves adapting McDonalds to capitalize upon opportunities in its constantly changing environment. a. Long-range planning b. Annual planning c. Strategic planning d. None of the above

c. Strategic planning

25. ______ involves evaluating each market segment's attractiveness and selecting one or more segments to enter. a. Market segmentation b. Product differentiation c. Target marketing d. all of the above are correct

c. Target marketing

54. All of the following are reasons that a firm might want to abandon products or markets, except which one? a. The market environment might change, making some of the products less profitable. b. A strong competitor has opened shop next door. c. The economic climate is showing signs of recovery. d. The firm has grown too fast.

c. The economic climate is showing signs of recovery.

73. An increasingly large number of firms are changing their organizational focus from _____ to _____. a. product management to functional management b. product management to territory management c. brand management to customer relationship management d. territory management to functional management

c. brand management to customer relationship management

80. In the BCG matrix, income from _____ will help finance the company's question marks and stars. a. dogs b. SBUs c. cash cows d. sales revenue

c. cash cows

29. Jack Welch, GE's former CEO once told his employees: "Companies can't give job security. Only _____ can!" a. CEOs b. government c. customers d. all of the above

c. customers

67. The first step in strategic planning is to _____. a. set objectives and goals b. develop the business portfolio c. define the company mission d. plan marketing strategies

c. define the company mission

28. Effective positioning begins with actually _____ the company's marketing offer so that it gives consumers more value. a. pricing b. aligning c. differentiating d. promoting

c. differentiating

20. 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 considering _____. a. new product development b. market development c. diversification d. market penetration

c. diversification

83. The Bank of New York bought Pershing, a part off-shore BPO firm with operations in India, from Credit Suisse First Boston. The Bank of New York is pursuing _____ for growth. a. product development strategy b. market development strategy c. diversification strategy d. market penetration strategy

c. diversification strategy

21. Increasingly in today's marketplace, competition takes place between the _____. a. large and small competitors b. number 1 and number 2 spot firms c. entire value-delivery networks of firms. d. none of the above is correct

c. entire value-delivery networks of firms.

58. In its quest to create customer value, McDonald's is effective only to the extent that _____. a. it pioneered the fast food industry. b. McDonald's finely tuned system delivers a high standard of quality and service. c. it successfully partners with its franchises, suppliers, and others to jointly deliver exceptionally high customer value. d. McDonald's hamburgers are loved all over the world.

c. it successfully partners with its franchises, suppliers, and others to jointly deliver exceptionally high customer value.

16. Making more sales to current customers without changing a firm's products is _____. a. market development b. market growth c. market penetration d. product development

c. market penetration

27. Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing else." These statements reflect a firm's _____. a. product portfolio b. target markets c. market positioning d. all of the above are correct

c. market positioning

23. For Hyundai Corporation, customers who care about price and operating economy make up the firm's _____. a. position b. value network c. market segment d. none of the above is correct

c. market segment

61. Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments. Deciding how to service these segments is called _____. a. targeting b. segmentation c. positioning d. all of the above

c. positioning

68. The first step in the marketing control process is to _____. a. measure performance b. evaluate performance c. set goals d. take corrective action

c. set goals

12. The BCG growth-share matrix classifies four types of SBUs. They are _____, _____, _____ and _____. a. product; price; place and promotion b. sales; market share; price and promotion c. stars; cash cows; question marks and dogs d. none of the above is correct

c. stars; cash cows; question marks and dogs

44. Atlantic Furniture has defined the company mission, set company objectives and goals and designed the company's business portfolio. Atlantic Furniture is delineating steps in _____. The next step in the process is to _____. a. planning; plan marketing strategies b. long-range planning; plan functional strategies only c. strategic market planning; plan marketing and other functional strategies d. all of the above are correct

c. strategic market planning; plan marketing and other functional strategies

9. The purpose of _____ is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment. a. a market b. an SBU c. strategic planning d. short-term planning

c. strategic planning

74. According to the authors of your text, many managers think "implementation" is as important as or even more important than "_____." a. analysis b. control c. strategy d. all of the above

c. strategy

57. Companies increasingly are partnering with other members of the supply chain to improve the performance of the customer _____. a. experience b. satisfaction c. value-delivery network d. none of the above

c. value-delivery network

42. All of the following are examples of product-oriented mission statements, except which one? a. At America Online we provide online services. b. In Disney, we run theme parks. c. At Nike, we sell shoes. d. At Wal-Mart, we deliver low prices every day.

d. At Wal-Mart, we deliver low prices every day.

10. The best known product portfolio planning method was developed by _____. a. Philip Kotler b. Harvard University c. SRI Consulting firm d. Boston Consulting Group

d. Boston Consulting Group

37. All of the following are steps in the strategic planning process, except which one? a. Defining the company mission. b. Setting company objectives and goals c. Planning marketing and other functional strategies d. Collaborating with suppliers on all fronts

d. Collaborating with suppliers on all fronts

24. _____ entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy. a. Market segmentation b. BCG c. Product line extension d. Downsizing

d. Downsizing

51. All of the following are problems with matrix approaches, except which one? a. Formal planning approaches can place too much emphasis on market-share growth or growth through entry into new markets. b. Many companies can plunge into unrelated and new high-growth businesses that they did not know how to manage -- with bad results. c. Many companies often too quickly abandon, sell, or milk to death their healthy mature businesses. d. Many firms have dropped formal matrix methods in favor of more customized approaches that are better suited to their specific situations.

d. Many firms have dropped formal matrix methods in favor of more customized approaches that are better suited to their specific situations.

71. McDonald's has to scan the marketing environment it operates in. This includes all these forces, except which one? a. Forces close to the company that affects its ability to serve consumers. b. Forces close to the company like other company departments, suppliers, etc. c. Broader demographic trends. d. Marketing planning information.

d. Marketing planning information.

60. _____ is the marketing logic by which a company hopes to achieve profitable customer relationships. a. Price b. Being a low-cost operator c. A consistent product mix d. Marketing strategy

d. Marketing strategy

43. _____ should be market oriented and defined in terms of _____. a. Strategic plans; company needs b. Annual plans; product needs c. Long-range plans; company needs d. Mission statements; customer needs

d. Mission statements; customer needs

84. All of the following are accurate descriptions of the role marketing plays in a company's strategic planning, except which one? a. Marketing provides a guiding philosophy. b. Marketing provides inputs to strategic market planners. c. Marketing designs strategies for reaching the unit's objectives. d. Once a unit's objectives are set, marketing's task is to cautiously help carry them out profitably.

d. Once a unit's objectives are set, marketing's task is to cautiously help carry them out profitably.

31. _____ involves looking at whether a company's basic strategies are well matched to its opportunities. a. Operating control b. Marketing audit c. Marketing control d. Strategic control

d. Strategic control

55. All of the following statements are true, except which one? a. Management should focus on promising growth opportunities, not waste energy trying to salvage fading ones. b. Small businesses can benefit from sound strategic planning. c. Strategic planning is crucial to a small company's future. d. Strategic planning cannot help small business managers anticipate problem situations that are likely to occur in the near future.

d. Strategic planning cannot help small business managers anticipate problem situations that are likely to occur in the near future.

41. All of the following are examples of market-oriented mission statements, except which one? a. We make the Internet buying experience fast, easy and enjoyable. b. We create customer connectivity anytime, anywhere . c. We create fantasies. d. We hold online auctions.

d. We hold online auctions.

66. 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

d. broadly

7. The collection of businesses and products that make up a company is called its _____. a. strategic business unit b. mission statement c. strategic plan d. business portfolio

d. business portfolio

70. The steps in the marketing control process include all, except which one? a. setting goals b. measuring performance c. taking corrective action d. defining the mission

d. defining the mission

85. Amazon.com has pursued acquisition and strategic alliances as a growth strategy in various product categories. This illustrates the _____. a. product development strategy b. market development strategy c. market penetration strategy d. diversification strategy

d. diversification strategy

40. The mission statement of the Girl Scouts of America reads as follows: "where girls grow strong." This reflects the fact that mission statements must _____. a. be realistic b. be motivating c. be narrow d. fit the market environment

d. fit the market environment

75. Under the _____ organizational format of marketing departments, different marketing activities are headed by a functional specialist. a. geographic b. product management c. market management d. functional

d. functional

53. Wal-Mart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the U.K. and Germany, among others. Wal-Mart is considering _____ as a growth strategy. a. market penetration b. product development c. demographic markets d. geographical markets

d. geographical markets

81. In the Boston Consulting Group approach, _____ provide(s) a measure of market attractiveness. a. relative market share b. SBUs c. cash cows d. market growth rate

d. market growth rate

52. Starbucks has introduced a debit card, which lets customers prepay for coffee and snacks. Starbucks management is considering whether the company can achieve deeper _____. a. market development b. product development c. diversification d. market penetration

d. market penetration

69. As Starbucks continues to grow, it is faced with myriad challenges during the implementation of marketing plans. Hence, the marketing department must practice constant _____. a. strategic control b. corrective action c. performance measurement d. marketing control

d. marketing control

34. The marketing control process entails the following steps in order: setting goals, _____, evaluating performance and _____. a. evaluating goals; measuring performance b. achieving goals; measuring performance c. taking corrective action; measuring performance d. measuring performance; taking corrective action

d. measuring performance; taking corrective action

39. Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its _____ as creating "abundant food and a healthy environment." a. objectives b. goals c. product portfolio d. mission

d. mission

45. A vendor for Ford Motor Company received the following message from Ford's marketing manager: "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 _____. a. marketing strategy b. marketing tactics c. business portfolio d. mission statement

d. mission statement

77. The _____ organizational format was founded by Procter and Gamble in 1929. a. functional b. market management c. geographic d. product management

d. product management

13. 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 _____. a. cash cows; stars b. question marks; dogs c. stars; question marks d. stars; cash cows

d. stars; cash cows

38. Starbucks has an annual plan in place to deal with the company's current SBUs and their operations. However, Starbucks as a growth-oriented firm is interested in both domestic and international markets. This requires Starbucks to constantly monitor the environment and adapt to the opportunities it is presented with. Starbucks needs a _____ in place. a. mission statement b. supporting objectives c. business portfolio d. strategic plan

d. strategic plan

2. Adapting the firm to take advantage of opportunities in its constant changing environment is called _____. a. Long-range planning b. Short-range planning c. annual planning d. strategic planning

d. strategic planning

47. Revlon has clearly defined its "mission" of selling lifestyle and self-expression. As the firm prepares to launch its strategic plan, the mission needs to be turned into a detailed _____ that guide the whole company. a. set of strategies b. set of tactics c. set of product mixes d. supporting objectives

d. supporting objectives

59. 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 _____. a. business model b. low-cost operator c. product mix d. value delivery network

d. value delivery network

76. Modern marketing departments are arranged in the following ways, except which one? a. functional organization b. market management organization c. product management organization d. vertical organization

d. vertical organization