CH2 CQ

A​ ____________________ is a statement of the​ organization's purposelong dash—what it wants to accomplish in the larger environment. A. strategic plan B. mission statement C. portfolio analysis D. marketing mix E. growth matrix

B

***Marketing planning takes place at the: 1.Business unit level 2.Product level 3.Market level 4.All of the above

4

***In the BCG growth-share matrix, low-growth, high-share businesses or products are called: A. Cash cows B. Question marks

A

***In the BCG matrix, you identified Holden-Evan's organic skin cream as a question mark because it had a small market share, 5 percent, in a booming market. A competitor has an organic skin cream that has less than half the market share of Holden-Evan's product, 2 percent. How should this competitor's organic skin cream be categorized? a. as a question mark, because it still has a small market share in a booming market b. as a dog, because its market share is so small c. as a question mark, because it is impossible to categorize

A

***Procter & Gamble once had more that ten different brands of laundry detergent but now markets only six. This is an example: A. Downsizing B. Diversification

A

***Sarah has divided the cellphone market into five groups based on age. This is an example of: A. Market segmentation B. Marketing mix

A

***The net return from a marketing investment divided by the costs of the marketing investment is called: A.Return on marketing investment B.Value return

A

***To identify opportunities and problem areas, companies often hire an independent consultant to conduct a systematic examination of their environment, objectives, and strategies. This is an example of a: A.Marketing Auidi B.SwOT analysis

A

***Which of the following mission statements is market-oriented? A.Wal-Mart: We deliver value through low prices B.Xerox: We make copy, fax, and other office machines

A

***You have decided to go with the less expensive Formula 2 and an electronic advertising program. Which of the following would not be considered a strength of your plan? a. On the Internet customers must view all ads. Ads cannot be blocked or avoided. b. You will save money because Formula 2 and electronic advertising are both good values. c. Electronic media are excellent for targeting a narrow, specific market such as teenaged girls. d. For electronic media, you can provide more information for interested customers at the click of a mouse. e. You can coordinate your ads to specific topics. If a girl is reading an article on skin care, your ad will come up.

A

***You view the slogan on Blythe's jar as important for defining the product as distinct from aging creams and acne creams. You choose "Bring out your outer beauty" as the slogan you will use. You are not sure that this slogan will meet with approval from your VP. Which of these alternate slogans best defines Blythe? a. Skin that glows — Blythe. b. You're not growing older, you're growing younger. c. Blythe: For trouble-free skin. d. Protect your most valuable asset — your skin — against time. e. Make bumps obsolete. Use Blythe.

A

Companies know that they cannot profitably serve all consumers in a given​ market, at least not all consumers in a uniform way. Most firms are in a situation to serve some portions of the market better than​ others, and they undertake four steps in order to make that effective. These steps are as follows​ (placed in sequential​ order): ____________________. A. ​segmentation, market​ targeting, differentiation, and positioning B. ​differentiation, market​ segmentation, targeting, and positioning C. ​positioning, market​ segmentation, targeting, and differentiation D. ​targeting, market​ segmentation, differentiation, and positioning E. market​ segmentation, differentiation,​ targeting, and positioning

A

More companies today are partnering with other members of the supply chain. These partnerships include​ __________ and they improve the performance of the customer value delivery network. A. ​suppliers, distributors, and customers B. QSCV C. suppliers D. competitors E. customers

A

SWOT analysis is an integral part of the first stage of the market​ process, which is analysis. The parts of the SWOT analysis that apply to external elements​ are___________ and​ __________. A. ​opportunities; threats B. ​strengths; weaknesses C. ​weaknesses; threats D. ​strengths; opportunities E. ​weaknesses; opportunities

A

The Boston Consulting Group​ growth-share matrix classifies SBUs the firm has in two dimensions. The horizontal dimension consists of the​ _______________, which measures the​ firm's strength in the market. A. relative market share B. market growth rate C. profitability D. losses in each market E. total number of SBUs the firm has

A

There are two steps to business portfolio planning.​ First, the company analyzes its current business portfolio and determines which businesses should receive​ more, less, or no investment. Which of the following is the second​ step? A. The organization must create a growth matrix to determine how to grow the portfolio. B. The organization must shape the future portfolio by developing strategies for growth and downsizing. C. The organization needs to​ label, or​ identify, the different categories of​ products, such as cash cows and​ dogs, in the portfolio. D. The organization needs to design the elements of the business portfolio. E. The organization must analyze past sales and trends.

A

With four categories of SBUs and products arrayed on the Boston Consulting Group​ share-growth matrix, the manager needs to determine how to manage each of them. If the firm decides to take​ short-term cash flow from the brand or​ SBU, despite​ long-term consequences, it is said to be in the​ ____________ mode. A. harvest B. build C. reshape D. divest E. Hold

A

***As the Vice-President of Marketing for Holden-Evan, a global beauty and consumer products company, you have been asked by your superiors to review several existing product lines for growth and downsizing opportunities. Your overall goal is to increase the company's growth rates and profit margins. In making your analysis of each product line, you will be using classic a Boston Consulting Group (BCG) Matrix. The BCG matrix has four different categories: a star (high market growth, high market share), a dog (low market growth, low market share), a cash cow (low market growth, high market share), and a question mark (high market growth, low market share) With a BCG matrix, in which kinds of strategic business units (SBUs) does a company look to invest? A. cash cows only B. starts and question marks

B

***At the corporate level, a company starts the strategic planning process by defining its overall ________. A. PORTFOLIO B. MISSION

B

***In your advertising campaign for Blythe you have decided not to advertise in magazines. You have made a list of facts to justify your decision. Which of the following does not belong on your list to justify your decision for avoiding magazine ads? a. Many teenaged girls read magazines online where the ads can be blocked. b. Magazine and other print media are the most expensive way to advertise. c. Teenaged girls access the media primarily through electronic, not print media. d. Studies show that many teens do not read magazines at all, online or in print. e. Print advertising is similar in cost to electronic advertising.

B

***Schwinn Bicycle Company wants to grow by diversification. To accomplish this, Schwinn will: A. Identify new market segments for its current products B. Start up or acquire businesses outside of its current products and markets

B

***Wal-Mart "partners" with its vendors to deliver greater value to its customers. This is an example of: A.Convenience B.Value delivery network C.Customer orientation D.Diversification

B

***What do we call the collection of businesses and products that make up the company? a. DEPARTMENTS B. BUSINESS PORTFOLIO

B

Designing a business portfolio involves finding businesses and products the company should consider in the future. Companies need growth if they are to compete more​ effectively, satisfy their​ stakeholders, and attract top talent. At the same​ time, a firm must be careful not to make growth itself an objective. The​ company's objective must be to manage​ __________. A. stakeholders B. profitable growth C. products D. competitors E. top talent

B

If Google wrote its mission​ statement, what would it be advised to​ write? The mission of Google is​ __________. A. to be the largest search engine in the world B. to give people a window into the​ world's information, wherever it might be found C. to be a charitable firm donating a percentage of its revenue to causes D. to have the most loyal customers in the world E. to be a great search engine

B

If a firm like​ McDonald's wanted to expand its business by acquiring a company such as Chevron gas​ stations, it would be realizing growth through​ ____________. A. penetration B. diversification C. portfolio analysis D. product development E. market development

B

If a firm such as​ McDonald's wanted to expand its business by adding​ locations, redesigning​ menus, and adding​ services, it would be realizing growth through​ ____________. A. diversification B. penetration C. market development D. portfolio analysis E. product development

B

__________________ is(are) the measurement of the profits generated by investments in marketing activities. A. The marketing mission B. Marketing return on investment​ (or marketing​ ROI) C. Market share D. Total profit E. Sales

B

***A member of your team sees a cash cow as a good place to invest money. Do you agree with this suggestion? Explain why or why not. a. I agree. Cash cows are money makers. Investing in a money maker is a good idea. b. I agree. Cash cows have large market shares in fast-growing markets. Investment is a good idea. c. I disagree. Cash cows make money but their markets are not growing so they are not a good place to invest.

C

***An advisor suggests that you focus on price before product. You disagree. Which of the following identifies the best argument you can use against this suggestion to focus on price first? a. Focusing on price first may influence how the a product will be promoted. b. Focusing on price first puts undue emphasis on where the product will be made. c. Focusing on price first may cause you to plan a product that cannot be made profitably. d. Focusing on price first may influence what the product's market will be. e. Focusing on price first may influence how the product will be packaged.

C

Although strategic planning models like the Boston Consulting Group​ share-growth matrix are valuable tools for​ managers, they have limitations. Which of the following is an advantage of using the Boston Consulting Group​ share-growth matrix? A. The​ model's focus on classifying current businesses B. Use of the model C. Identifying which SBUs require more resources and which generate revenue to fund other SBUs D. The time it takes to use the model E. Defining SBUs and measuring both market share and growth

C

Managing the marketing process requires four marketing management​ functions: analysis,​ planning, ______________, and control. A. portfolio analysis B. SWOT analysis C. implementation D. measuring profitability E.

C

The organization needs to turn its mission statement into detailed supporting objectives for each level of management. The next step after setting the mission statement is to​ ____________________________. A. assign resources to elements of the marketing mix B. measure the effectiveness of the marketing program C. set company objectives and goals D. build a growth matrix E. design the business portfolio

C

***Holden-Evan's teen hair dye qualifies as a dog. What would need to change in order for the teen hair dye to be considered a question mark? a. The hair dye's market share would need to increase from 0.8 to 1.2. b. Sales for hair dye would need to equal those of the industry leader. c. The hair dye's sales would need to increase at least 40 percent. d. The market growth rate for teen hair dye would need to increase by a significant amount.

D

***In focusing on product first, you turn your attention to the product's packaging — its box, the shape of the jar, and so on. Your advisor isn't sure that packaging qualifies as an attribute of the product itself. Which of the following best addresses the advisor's concern? a. The advisor is correct. The product is the skin cream itself. Packaging is not part of the product. b. The advisor is correct. Packaging can be considered part of a product only when the packaging itself is consumed. c. The advisor is incorrect. The box is not part of the product, but the jar is because the customer opens and closes the jar. d. The advisor is incorrect. Packaging is part of any product. e. The advisor is incorrect. Packaging is a more important part of the product than the cream itself.

D

***One formula you are considering for Blythe includes high-quality ingredients and is expensive to make. This type of formula is unique for the teenaged market, which usually features low-cost formulas. To help introduce this formulation of Blythe, you want to go with a penetration pricing strategy that starts with a low price and raises the price as the product becomes established. Which of the following presents a danger to your strategy that you least need to worry about? a. You are likely to lose money in the beginning, before the product becomes well known. b. You may have competitors in the market by the time you are ready to raise the price. c. Customers get used to low pricing, and may not accept a price hike. d. Customers may at first refuse to try a product based on its low price. e. You are likely to create an image for Blythe that is moderate and affordable rather than luxurious and expensive.

D

***You have made the decision to divest Holden-Evan's hair dye for teens, which was judged on the BCG matrix as a dog. Which of the following is the best justfiication for divesting? a.Dogs tend to create a negative atmosphere within a company. b.A dog is a drain on money and other business resources . c.A dog is a drain on business resources, it is hard to sell off, and since it has high market share it is difficult to change or improve. d.A dog is hard to turn around, it is a drain on business resources, and since it is in slow-growth industry it is unlikely to improve.

D

Astute marketers practice partner relationship management and must work closely with partners in other company departments to form an effective internal value chain that serves customers.​ Additionally, they must partner effectively with other companies in the marketing system to form a competitively superior​ _____________________. A. marketing philosophy B. customer relationship C. value chain D. value delivery network E. strategic plan

D

Once a marketing plan is​ written, the manager has to convert the plan into actions that actually accomplish the strategic marketing objectives. The process of​ ______________________ addresses the​ who, where,​ when, and how of the marketing plan. A. operational control B. planning C. measurement D. marketing implementation E. control

D

When the marketing department works to improve customer​ satisfaction, it can cause other departments to decrease their job performance. When marketing tries to improve customer​ satisfaction, it may result in​ __________. A. better budgeting techniques B. decreased inventories C. better inventory management and​ better-managed budgets D. increased purchasing​ costs, disrupted production​ schedules, and increased inventories E. improved partner​ relationships, production​ schedules, and inventories

D

The Boston Consulting Group​ growth-share matrix classifies SBUs the firm has in two​ dimensions; the first dimension is​ _______________, which measures market attractiveness for the entire industry on the vertical axis. A. losses in each market B. relative market share C. the total number of SBUs the firm has D. profitability E. market growth rate

E

***As the marketing manager of Holden-Evan, a health, home, and beauty consumer products company, your task is to develop a plan for Blythe, a skin cream that has been losing sales. Your first decision involves what to focus on with respect to marketing mix and the four Ps — product, price, promotion, and place. After some deliberation, you have decided to focus on product. Which of the following best justifies your decision to focus first on product? a. Product is the only important factor for the four Ps. The other three factors are fairly unimportant compared to product. b. Product includes price and promotion. Once you have chosen the product, price and promotion have already been determined. c. It doesn't really matter which one of the four Ps you start with. Product is as good a choice as any of the others. d. For an item that relies a great deal on image such as skin cream, product is important. For a more practical item, product is less important. e. Choosing product attributes first will determine how price and promotion decisions are made.

E

***You are trying to decide between television ads and electronic ads for Blythe. Which of the following represents your most serious worry? a. Electronic ads too expensive. b. Teenaged girls get most of their information from television, not the Internet. c. Television ads fail to reach a wide enough market. d. Teenage girls almost never watch television. e. Television ads reach too broad an audience.

E

***You are trying to decide on a final plan for Blythe. Which of the following identifies the best choice? a. If you go with the more expensive Formula 1, focus on the product itself. b. If you go with the less expensive Formula 2, focus on the price and use price to determine other decisions. c. If you go with the anti-acne Formula 3, focus on promotion of the product. d. No matter which formula you choose, you should focus on the product itself. e. No matter which formula you choose, you should think of product, price, and promotion as an integrated whole.

E

***Your focus group tells you that most teenage girls see skin creams as beauty creams. To control acne, teens look to specialized acne products. Nevertheless, you choose a formula for Blythe that focuses on beauty but includes moderate acne control. Which of the following best justifies your decision? a. Teens don't really know what they want, so their opinions should be ignored. b. The girls with trouble-free complexions in the group obviously influenced others into discounting the importance of acne control. c. All skin creams control acne to a certain extent, so a formula with moderate acne control is appropriate. d. Acne control products don't really work, so including one in the formula will not compromise the success of Blythe. e. Some oil-based creams can actually promote acne, so having an element of acne control will ensure the success of the formula.

E

After determining the​ market-oriented mission, what is the next step in the process of strategic​ planning? A. Writing the mission statement B. Having each business unit develop detailed marketing and other departmental plans that support the​ company-wide plan C. Deciding which portfolio of businesses and products is best for the company and how much support to give each one D. Determining the appropriate communications strategy E. Turning the mission into detailed supporting objectives that guide the entire company

E

***Companies that sell one product line to many different types of markets should use a. Product management organization b. Market management organization

b