marketing exam 1 ch 2
both product development strategies and diversification strategies involve
developing a new product
Which of the following best describes a marketing department with a functional organization?
different marketing activities are headed by specialists such as sales managers, advertising managers, marketing research managers, and customer service managers
which of the following will most likely be included in the price component of a companys marketing mix
discounts
Under Armour's recent expansion into the digital personal health and fitness tracking market through acquisitions of three fitness app companies is a ________ strategy.
diversification
a strategy for company growth thru starting up or acquiring businesses outside the company's current products and markets is called
diversification
which of the following best describes market segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, and behaviors
which best describes product positioning
arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
The process that turns marketing plans into marketing actions to accomplish strategic marketing objectives is called marketing ________.
implementation
ecobean a chain of cafes has introduced a special shopper card that allows customers to pay in advance for coffee and snacks. this effort is most likely an example of
market penetration
under armour increasing its advertising spending and offering an ever increasing range of styles and colors in its original apparel line is an example of a
market penetration strategy
Ferrari sells only 2,200 of its very high-performance cars in North America each year at very high prices. The company is appealing to a specific ________.
market segment
_____ refers to the process of evaluating each market segment's attractiveness and selecting one or more segments to enter
market targeting
Which of the following is true of marketing ROI?
marketing ROI measures the profits generated by investments in marketing activities
Evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained is called ________.
marketing control
In a SWOT analysis, ________ refer to favorable factors or trends in the external environment that a company may be able to exploit to its advantage.
opportunties
Ford Motor Company issuing a recall that requires customers to schedule appointments with car dealerships to repair faulty igniters would have the greatest impact on the ________ component of its marketing mix.
place
design, packaging, service, and features are elements of the ____ component of a companys marketing mix
product
which component of the marketing mix refers to the goods and services combination a company offers to its target market
product
under armors decision to add athletic shoes to its apparel line in 20006 is an example of a
product development strategy
when viewing the market from a buyers POV, communication corresponds to the ____ component of the marketing mix
promotion
P&G's decision to eleminate dozens of major brands from its portfolio, including crisco, folgers etc is an example of
pruning
which of the following statements is true in the context of the bcg growth share matrix
stars often need heavy investment to finance their rapid growth in a market
t/f A company can assess marketing ROI in terms of standard marketing performance measures, such as brand awareness, sales, or market share.
true
t/f A company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices
true
t/f In the marketing mix, product includes the goods and services the company offers to the target market, while promotion includes advertising.
true
t/f Marketers must practice constant marketing control to ensure that objectives are attained
true
t/f Marketing ROI measures the profits generated by investments in marketing activities.
true
t/f Marketing dashboards are used to monitor strategic marketing performance.
true
t/f a firms marketing department must partner with other company departments to produce superior value for customers
true
t/f an organizations mission statement should emphasize its intentions toward customers and the customer experience the organization tries to create
true
t/f many companies have dropped formal strategic planning models like the BCG because they can be difficult and time consuming
true
t/f the product market expansion grid like the BCG is sued to identify growth opportunities
true
a ___ is made of a company, its suppliers, its distributors, and its customers who partner with each other to improve the performance of the entire system
value delivery network
which of the following companies is suing a divesting strategy
when sales of its clothing division decline, blackstone sells the division to a competitor
According to the Boston Consulting Group approach, how can a company classify its SBUs on a growth-share matrix?
***
Define marketing planning. Briefly outline what a company should cover in its marketing plan
***
Differentiate between the BCG matrix and the product/market expansion grid.
***
Discuss the four Ps of the typical marketing mix. Some people consider that there should be more than four marketing mix elements. Suggest two additional aspects that the marketing mix could include.
***
Explain how a company's value chain works. Provide an example to illustrate your response
***
Explain the term "value delivery network."
***
How do organizations carry out marketing control?
***
Kawaii Electronics sells air conditioning systems for office buildings. The company's marketing department is currently structured as a functional organization. However, Kawaii is considering changing the structure to either a product management or a customer management organization. In a brief essay, describe each type of organization: functional, product management, and customer management. What are the advantages and/or disadvantages of each structure for Kawaii? Which structure do you recommend for Kawaii? Why?
***
RTF Developers is a construction company with a presence in several countries. The company currently organizes its marketing department using a functional system of organization, but this seems inefficient. Explain why a geographic organization would benefit the company more than a functional organization.
***
Raintree Developers has been measuring its marketing return on investment (or marketing ROI) to assess its marketing performance for the past few years. Explain why this method may not accurately reflect the company's performance and what Raintree can use to better estimate its performance.
***
Should a company use the BCG matrix to classify its products or brands? Give reasons for your answer.
***
ToyTrain is a toy company that sells its products in most regions of the United States. It produces a variety of toys for children of every age group, from toddlers to preteens. What are ToyTrain's options for organizing its marketing department? Briefly describe each structure as it would apply to ToyTrain. Which organization do you think would be best for ToyTrain? Why?
***
What are marketing dashboards? How do they benefit marketers?
***
What is a SWOT analysis? Why is it required?
***
What is a business portfolio? How does a company typically conduct a portfolio analysis?
***
Managing the marketing function begins with a complete analysis of the company's situation. A thorough ________ is typically undertaken to guide decision making.
SWOT analysis
which of the following products would the electronics company cypress sound classify as a cash cow in its BCG matrix
Xpress — an MP3 player that has a high market share in a market that is not expected to grow significantly
The 4Ps model has been challenged because it omits or underemphasizes important activities such as services. It's also been criticized for taking a seller's, rather than a buyer's, viewpoint. The more recent 4As framework complements the traditional model and includes ________.
acceptability affordability accessibility awareness
ainsworth is a toy manufacturer based in australia. which of the following most likely indicates that ainsworth is fllowing diversification strategy
ainsworth enters the US market with a line of children's clothing
In a SWOT analysis, which of the following would most likely be considered a strength of a company?
an improvement in a companys production technology
business portfolio analysis is defined as the process in which mngmt
assesses the attractiveness of an SBU's market and the strength of its position in the market
vertigo is an electronics company. according to the BCG matrix which of the following products of vertigo would most likely classify as a question mark
blue- a cell phone that is designed for music lovers and has very low market share in a market that is growing steadily
in the BCG matrix, ____ refer to low growth, high share businesses or products
cash cows
Due to the limitations of the BCG and other formal portfolio planning models, many companies are placing responsibility for strategic planning in the hands of cross-functional teams of divisional managers who are close to their markets. In such organizations, strategic planning is ________.
decentralized
according to the bcg matrix, products or businesses with a low share of marketed in a high growth industry are considered
dogs
____ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy
downsizing
which of the following groups is included in both a companys value chain and its value delivery network
employees
t/f "at cl online, we create. customer conenctivity anytime anywhere" is a product riented mission statement
false
t/f "at dodson we sell shoes" is a market oriented business definition
false
t/f Holiday Inn 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 diversification.
false
t/f In a SWOT analysis, strengths and weaknesses refer to a firm's external environment, while opportunities and threats refer to the internal environment.
false
t/f In the 4Ps of the marketing mix, promotion refers solely to advertising.
false
t/f In the marketing mix, product refers to activities that communicate the merits of a product and persuade target customers to buy it.
false
t/f The most common form of marketing organization is the product management organization.
false
t/f a companys customer value delivery network does not include members external to the organization
false
t/f an SBU can be a company or a product line within a division, but not a single product or brand
false
t/f many SBUSs start out as stars and move in the question mark category if they succeed
false
t/f most firms begin the strategic planning process by developing detailed marketing and departmental plans that support a company wide plan
false
t/f the growth rate of a strategic business unit that is classified as a star remains constant over time
false
t/f the position of a strategic business unit in the growth-share matrix typically remains constant over time
false
true value hardware relies on its its ________ to coordinate and carry out activities that provide shoppers with the hardware and home improvement products they need at affordable prices along with top-notch customer service.
internal value chain
toybox is a toy manufacturer based in the UK. which indicates the company is following markert penetration strategy
it acquires toy rights for a popular cartoon character to boost sales
which of the following is true of strategic planning in a firm
it deals with adapting the firm to take advantage of changing marketing opportunities
bluebear is a shoe manufacturer based in the United States. Which of the following indicates that the company is following a market development strategy?
it introduces its hoes in the indian and south east asian markets
in the BCG growth share matrix, question marks refer to products or businesses with a
low market share in a market with high growth prospects
a firm's decision to identify and develop new markets for existing products is
market development strategy
which of the following criteria provides a measure of market attractiveness in the boston consulting group approach
market growth rate
the two dimensions the BCG approach uses to evaluate and manage SBUs are
market growth rate and relative market share
a strategy for company growth that involves increasing sales to current market segments without changing the product is known as
market penetration
At John Deere, thousands of people both inside and outside the organization make decisions about target segments, branding, product development, pricing, promotion, and distribution. They talk with engineering about product design, advertising agencies about ad campaigns, and large retailers like Lowe's about quality offerings. This is an example of ________.
marketing implementation
Nike's goal to increase sales of its running shoes by 25 percent during the first 6 months of the new fiscal year is an example of a ________.
marketing objective
a ____ is purposeful, specifying what an organization wants to accomplish in their larger environment
mission statement
Greyzone, a company that creates customized household furniture, is based in Terrania and is looking to enter other countries as well. The company identifies the country of Nyevka as a good option because the entry barriers for new companies are low in Nyevka. Which statement indicates that Greyzone follows a diversification strategy?
nothing that nyevka lacks well established suppliers of office equipment, greystone begins to manufacture and supply office equipment
In a SWOT analysis, which of the following would be considered a weakness of a company?
obsolete technologies used by the company
Traxx is a newly emerging shoe manufacturing company. After extensive market research, Traxx divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, Traxx has engaged in market ________. A) development
segmentation
Both market penetration strategies and market development strategies primarily involve ________.
selling a company's current products
when a company chooses to divest a particular strategic business unit, it
sells off or phases out the strategic business unit
according to the BCG matrix, products or businesses with high market share in a high growth market are classified as
stars
CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example, it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis?
strength
which of the following best describes a company's business portfolio
the collection of businesses and products that make up the company
Omni Healthcare's analgesic drug Cetaprin has a 40% share in the analgesics market in the country of Terrania. Its closest competitor, Febex, has a 25% share in the market, while four other analgesic brands split the remainder. Which statement indicates that Cetaprin is a cash cow according to the BCG matrix?
the demand for analgestic drugs in the terrania market is expected to remain stable
which of the following best describes the value chain of a company
the series of departments that design, produce, market, deliver, and support the company's products
In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance.
threats
cosmetics firm satin silk is revamping its mission statement and advertising strategy. the ceo stresses that the new mission statement. should be market oriented rather than product oriented. which mission statement would best suit the company?
to give customers the complexion they dream about by providing products suited to their needs
SBUs identified as cash cows need less investment than stars
true
The 4As framework takes into consideration the buyer's view of the market.
true