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