IBM 3012 - Chapter Two Quiz Review

SWOT analysis is used, in part, to evaluate a firm's ___.

Strengths and weaknesses

A ______ is the group of customers toward which an organization has decided to direct its marketing efforts.

target market

- Which of the following reasons makes it especially valuable for nonprofits to establish specific, measurable, and realistic marketing objectives

b/c nonprofits have limited resources

- A _______ is the internal limitation that may prevent or disrupt a firm's ability to meet its stated objectives.

weakness

cash cow

combines a large market share w/ a low growth industry

dogs

combines small market share w/ a low growth industry

- The ______ section of the situation analysis if often a struggle for many firms to complete successfully.

competition

- While many companies might provide the same product, consumers often believe that one particular company provides more value than the others. This is an example of

competitive advantage

- Stephanie knows that she needs to include info in the controls section of the marketing plan about what the company will do if the initial marketing strategy they have planned does not garner the results they want. The information is known as the ____ plan.

contingency

- Which of the following is NOT found in the financials section of the marketing plan? (controls, sales forecast, break-even analysis, expense forecast)

controls

sha has been asked to complete a situation analysis for her company to help guide the firm toward making strategic decisions for the future. Which of the following will Trisha be able to provide from her situation analysis?

current competition, market conditions, marketplace trends

a good mission statement should be orientated around the

customer

- The ____ section of the marketing plan should outline all different companies, people, and technologies that will be involved in the process of delivering the product to customers.

distribution

Coca-Cola originally only produced soda products, it now owns Minute Maid orange juice and more. By seeking to attract new customers by offering new products unrelated to soda, which type of marketing growth strategy does it exemplify?

diversification

- Within the BCG matrix, products with a small market share in an industry that has low growth rates are called

dogs

Jon owns a landscape service and mows 200 yards each week during the summer, which of the following findings from a SWOT analysis conducted by Jonathan represents a threat?

gas shortage is in effect and companies can only purchases up to 5 gallons of gas each week

When focusing on a situation analysis, the group of consumers are interested in and able to buy a produce are called

market

- Ryan's company wants to expand the sales of its current product line to reach foreign markets. Ryan's company using the market strategy known as

market development

- Martin wants to increase sales at his shoe store by giving his customers the chance to buy another pair for half-price for each pair of shoes they buy. This is an example of marketing growth strategy known as _____.

market penetration

What primary strategic planning tool do companies rely on to direct and coordinate marketing efforts?

marketing plan

the ________ component of the marketing plan lists the actions a firm must take to accomplish the marketing objectives it established in its mission statement.

marketing strategy

- Which characteristic of a marketing objective allows a marketer to understand if their strategies are working?

measurable

Marketers want to understand what the specific return will be on a marketing investment. To know if their strategies are working, it is important that the marketing objective be ___.

measurable

What tool does a firm use to ensure that the business never strays too far from its core goals and values?

mission statement

a company's long-term purpose can be identified in a concise format by creating ___.

mission statement

company's long-term purpose can be identified in a concise format by creating ___.

mission statement

- Franchising

o A contractual arrangement in which a fee is paid to have the right to open a business using the parent company's business name and to receive marketing and operational support

- Licensing

o A legal process in which one firm pays to use or distribute another firm's resources, including products, trademarks, patents, intellectual property, or other proprietary knowledge

- Direct ownership

o A method in which a domestic firm actively manages a foreign company or overseas facilities

- Nonprofits work within the constraints of a tight marketing budget. Based on this thought, nonprofits should pay especially close attention to which two sections of the marketing plan?

o Accountability and implementation

Joint Venture

o An arrangement where a domestic firm partner with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company's market

expense forecast

o An estimate of the costs a company will incur to create, communicate and deliver the product

- Which of the following reasons makes it especially valuable for nonprofits to establish specific, measurable, and realistic marketing objectives?

o Because nonprofits have limited resources

question marks

o Combines a small market share with a high growth industry

- Star

o Combines large market share with a high-growth industry

- Product Development

o Creating new goods and services to sell to an existing market

- Break-even analysis

o Estimate of how much a company needs to sell to cover expenses

- Marketing plan components

o Financial section o Marketing strategy o Situation analysis

- A break-even analysis would provide a firm with the following information:

o How much the company needs to sell to cover its expenses

- Robert owns a tennis apparel shop and is preparing a market summary. How can Robert make sure the competition section of his summary is most effective?

o It should list both direct/indirect competitors.

- Identify the four basic categories of marketing growth strategies from the list below

o Market development o Product development o Diversification o Market penetration

which marketing strategy is designed to encourage existing customers to buy more of a product each time they visit a store

o Market penetration

- Which of the following tools would a company rely on when focusing on the promotion aspect of the marketing mix?

o Personal selling o Advertising o Public relations

- A company will use different tactics to create a certain perception of its product in the eyes of the target market. This practice is referred to as

o Positioning

- Sales Forecast

o Projects how many units of a product a company expects to sell during a specific time period

which of the following are necessary in order to create a break-even analysis

o Sales forecast o Expense forecast

- Exporting

o Selling domestically-produced products to foreign markets

- Market Development

o Selling existing goods and services to new customers

A market development strategy can be defined as

o Selling existing products to new customers

- Market Penetration

o Selling more of a current product to an existing market

- Which of the following scenarios describes the marketing growth strategy known as market penetration?

o Selling more of an existing good to an existing customer

- When a firm accomplishes a successful marketing strategy, it can lead to ____.

o Stronger brands o Higher profits o Larger market share

- Diversification

offering new products that are unrelated to existing products

If the local pizza restaurant was compiling the competition section of the market summary. It should begin by listing other restaurants who make

pizza

Which of the following are subsections of a situation analysis?

- Market Summary - SWOT analysis - Competition

Which of the following factors should a firm follow when developing a mission statement?

- the mission statement should focus on a limited number of goals - the mission statement should be customer-orientated

executive summary

1-2 pages

- The purpose of a mission statement is to provide ______ with a shared sense of ambition, direction, and opportunity.

employees

- When a company wants to determine how much it will cost to create a new product, it should complete an ______ forecast.

expense

- Of the following, which provides the least risk and a lower potential return when entering an international market?

exporting

- Which of the following strategic options can a firm use for entering the international marketplace?

exporting, licensing

It is common for companies to make which of the following mistakes when conducting a SWOT analysis?

failing to separate internal issues from external issues

T/F: a firm must establish a marketing plan before preparing a mission statement

false

- Charles has asked his staff to provide him with a sales forecast, expense forecast, and a break-even analysis. All three of these are considered to be

financial projections

- If you want to understand the overall profitability of a company, you would study the ____ section of the marketing plan.

financials

most companies fail to consider their ____ competitors when creating the competition section of the market summary.

indirect

Within the SWOT analysis, a weakness is considered an ____ limitation

internal

Within the BCG matrix, relative market share is determined by taking a company's sales volume of the _____ competitor

largest

- Portia owns a gift shop where every item sold is made from recycled products. All of her marketing efforts were aimed at making her target market feel good about purchasing recycled products and helping the environment. The efforts Paula makes to create a certain perception of her products in the eyes of her target market are referred to as

positioning

A company will use different tactics to create a certain perception of its product in the eyes of the target market. This practice is referred to as ___.

positioning

Budweiser uses the slogan "King of Beers" to promote its beer, the firm is trying to create a perception in the eyes of the target market that the Budweiser product is superior to its competitors. In doing so, Budweiser is ____ its product.

positioning

- During the marketing meeting, Collin noted that keeping price increases small would be essential to keeping customer value high. Which section of the marketing plan was Collin addressing?

pricing

- The ______ section of the marketing plan specifies how much money a customer must pay for a product.

pricing

- Jennifer's son asked for a new game for his birthday but she is reluctant because he just got one last year. Her son says the new system has an enhanced feature that makes....and that's why he wants it. The enhanced feature found on the game is an example of which marketing growth strategy?

product development

- Sam has been asked to come up with ways to showcase the value of his company's newest products. He has determined that a public relations campaign is the best method to use. Sam's job is focusing on the marketing mix element known as

promotion

- When marketers use the BCG matrix, they use the term _______ when classifying products that have a small market share in a high-growth industry.

question marks

\Quality marketing objectives have three basic characteristics. Making sure that your objectives are ____ helps to ensure that you do not provide unattainable goals and diminish the motivation of those working for you.

realistic

Which of the following are three characteristics of a quality marketing objective?

realistic, specific, measurable

- Erin Blakenship works for a nonprofit organization. As she notes, nonprofits are typically understaffed. As a result, the two most important things that help her be successful in this situation are _____ and _____.

self-motivation flexibility

- Which component of the marketing plan allows a company to understand information about their current business and the making strategic decisions about how to best move forward?

situation analysis

Portia was asked to develop a medium-term marketing objective for the department, she came up w/ the following: "the department needs to increase ad revenues by 10% over the next quarter and can do this by developing relationships with Clorox, etc." Which aspect of developing a quality marketing objective has Portia most likely accomplished?

specific

firm that simply states "increase sales" as its marketing objective may have trouble formulating a strategy to meet this goal because this objective is too vague and does not meet the marketing characteristic of being ______.

specific

- An essential component of effective marketing for a nonprofit organization is the ___.

strategic plan

the process of defining the objectives of a company and then developing a method to achieve those objectives is known as

strategic planning