intro to marketing chapter 2
________ is an overall evaluation of the company's strengths, weaknesses, opportunities, and threats.
A SWOT analysis
________ are low-growth, high-share businesses/products that need less investment to hold their market share.
Cash cows
evaluating members of the company's value chain
Which of the following is NOT a step in the strategic planning process?
Finding the game plan for long-run survival and growth is the focus of strategic planning.
Which of the following is true with regard to strategic planning?
All of the following steps pertain to the marketing control process EXCEPT ________.
defining the company's mission
A marketing plan begins with a(n) ________, which presents a brief summary of the main goals and recommendations of the plan for management review.
executive summary
"At Trader Joe's, our mission is to provide 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
A market segment consists of consumers who respond in different ways to a given set of marketing efforts.
false
A mission statement is a document embodying an organization's short-term goals
false
An American airline company started a grocery chain in Australia. This is an example of product development.
false
Benchmarking refers to the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives.
false
Company growth through diversification involves offering modified or new products to the company's current markets
false
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs is known as market diversification.
false
On the BCG matrix, "question marks" are high-growth, high-share businesses or products.
false
One valid criticism of the four Ps concept of the marketing mix is that services are not considered.
false
The major activity in strategic planning is product innovation.
false
The marketing mix consists of people, property, planning, and position.
false
A company's mission should be stated as making more sales or profits.
falsee
Marketing control involves ________ steps.
four
The most common form of marketing organization is the ________ organization. Under this organization, different marketing activities are headed by an operational specialist.
functional
Berman Electronics, a chain of appliance stores in North America, caters to a wide range of customers. It has a marketing organization in which different operational specialists head different marketing activities. Berman Electronics is a(n) ________.
functional organization
Ravenshaw Corp. assigns its sales and marketing people to specific countries, regions, and districts. Ravenshaw Corp. is most likely an example of a ________.
geographic organization
Many managers think that "doing things right," or ________, is as important as, or even more important than, "doing the right things."
implementation
In the marketing mix, design, packaging, services, and variety can be categorized under ________.
product
A product's position is the place it occupies relative to competitors' products in consumers' minds.
true
At Joe's Diner, we serve great burgers" is a product-oriented business definition.
true
Benchmarking refers to the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives.
true
Each company department can be thought of as a link in the company's internal value chain.
true
Market development involves company growth by identifying and developing new market segments for current company products
true
Operating control involves checking ongoing performance against the annual plan and taking corrective action when necessary.
true
Product means the goods-and-services combination the company offers to the target market.
true
The four Cs concept adopts the buyer's view of the market.
true
The four marketing management functions are analysis, planning, implementation, and control.
true
The major activity in strategic planning is business portfolio analysis, whereby management evaluates the products and businesses that make up the company
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
Which of the following is NOT a market-oriented business definition?
"We make high-quality consumer food products."
) Which of the following is a market-oriented mission statement?
) "We empower customers to achieve their dreams
_______ involves looking at whether a company's key action plans are well-matched to its opportunities.
) Strategic control
FencePro, a local company, has developed an entirely new mounting system for chain link fences. After acquiring a distributor, FencePro now has the ability to market its products nationwide. FencePro is most likely following a ________ strategy.
) market development
The main section of the marketing plan most likely presents a detailed ________ analysis of the current marketing situation.
SWOT
Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses, and threats. Which of the following would be best suited for his purpose?
SWOT analysis
________ refers to activities that communicate the merits of the product and persuade target customers to buy it.
Promotion
________ are low-share business units in high-growth markets that require a lot of cash to hold their share.
Question mark
________ measures the profits generated by investments in marketing activities.
Return on marketing investment
________ are a type of SBU that often require heavy investments to finance their rapid growth.
Stars
During portfolio analysis, a company ________ after identifying the key businesses that make up the company.
assesses the attractiveness of its various SBUs
The collection of businesses and products that make up a company is called its ________.
business portfolio
The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company.
business portfolio analysis
A company can ________ the SBU by selling it or phasing it out and using the resources elsewhere.
divest
Market segmentation can be best described as the process of ________.
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs
Mission statements should be ________
meaningful and specific yet motivating
By harvesting its SBU, a company would most likely be ________.
milking its short-term cash flow regardless of the long-term effect
Orion Inc. operates in many industries, including pharmaceuticals and food products. The company's goal is to create "abundant and affordable food for all and a healthy environment." This represents Orion's ________.
mission statement
The purpose of ________ is to ensure that the company achieves the sales, profits, and other goals set out in its annual marketing plan.
operating control
In a SWOT analysis, ________ include favorable trends in the external environment
opportunities
Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who love to hunt, hike, and ride bikes. The company's long-term plans include the development of lenses that, in addition to protecting users from UV rays, would help reduce lens spotting through effective water-sheeting methods. This new feature would be valuable to people who fish. Given the rising popularity of recreational fishing in the United States, Omega products clearly have a huge market potential. In terms of a SWOT analysis, Omega has recognized a market ________.
opportunity
In the context of a company's marketing mix, ________ includes company activities that make the product available to target consumers.
place
Which of the following is an element of the marketing mix?
place
Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers is known as ________.
positioning
Arrow is "a different kind of company, manufacturing a different kind of a car"; the RoadPro is "like nothing else." Statements such as these reflect a firm's ________.
positioning
Which of the following is true with regard to the product/expansion grid?
It is a useful device for identifying growth opportunities.
The managers of Alfredo's Pizza, a popular pizzeria in New York City, have been increasingly encouraging senior citizens to visit the pizzeria's numerous outlets spread across the city. Anticipating a rise in the population of senior citizens in the area, the management of Alfredo's Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers. In this instance, the managers of Alfredo's Pizza are anticipating company growth through ________.
) market development
Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________.
) market segment
The marketing logic by which a company hopes to create customer value and achieve profitable customer relationships is referred to as the ________.
) marketing strategy
Alpha Motors offers "Green automobiles for a greener world." This refers to the ________ of Alpha automobiles.
) position
Companies that define their missions in terms of product or technology are considered myopic primarily because ________.
) products and technologies eventually become outdated
The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ________.
) question mark
) mission statement
A ________ documents an organization's purpose—what it wants to accomplish in the larger environment.
Which of the following companies has a market-oriented business definition?
A cosmetic company, whose business definition is: "We sell hope and self-esteem.
Which of the following is true with regard to a market segment?
A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
Which of the following would be classified as an opportunity in a SWOT analysis of Fun-Spot?
A new luxury hotel is being constructed in the area, with the aim of attracting more high-spending families on vacation.
Which of the following companies has a product-oriented business definition? A) A luxury hotel, whose business definition is: "We sell out-of-the-world experiences to our guests."
A shoe manufacturer, whose business definition is: "We manufacture affordable and long-lasting shoes for all."
Which of the following is true with regard to geographic organization?
It allows salespeople to work with a minimum of travel time and cost.
Which of the following is true of the BCG matrix approach?
It considers market growth rate to be a measure of market attractiveness
Which of the following is true with regard to a SWOT analysis?
It evaluates the company's overall strengths.
) ________ refers to measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved.
Marketing control
________ refer(s) to meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance.
Marketing dashboards
Which of the following is a major advantage of the market organization?
The company is organized around the needs of specific customer segments
) Which of the following is true with regard to cash cows?
They can be used to help finance the company's question marks and stars.
Which of the following is NOT an example of product-oriented mission statements?
We sell memorable experiences."
defining the organizational mission
Which of the following is the first step in strategic planning?
Strategic planning
________ is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities
Mission statements should ________ and be defined in terms of ________.
be market oriented; satisfying basic customer needs
Emerson Studios has designed its marketing organization along the lines of a ________ organization in which different marketing activities are headed by operational specialists.
customer
More and more companies are shifting their brand management focus toward ________.
customer management
Which of the following is the first step of business portfolio planning?
determining which businesses should receive more, less, or no investment
Effective positioning begins with ________.
differentiation
A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________.
diversification
Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________.
diversification
Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________.
diversification
The BCG matrix approach is problematic in that it ________.
focuses solely on current businesses and provides little scope for future planning
In a SWOT analysis, which of the following would be considered a strength?
internal capabilities
Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.
internal value chain
Modern strategic planning ________.
is decentralized
RedFin manufactures diving equipment that is highly regarded by customers worldwide. Each department in RedFin contributes to its success and can be thought of as a(n)
link in the company's internal value chain
In the marketing mix, place includes
logistics
Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular LED televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark is most likely following a ________ strategy.
market development
The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to sell the firm's current products. This is an example of ________.
market development
According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness.
market growth rate
Crocus, a gift store, specializes in serving customer segments that major competitors overlook and ignore. Which of the following best describes Crocus?
market nicher
Fun-Spot's mission is ________.
market oriented
) Making more sales to current customers without changing a firm's products is known as ________.
market penetration
Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of patrons. This exemplifies ________.
market penetration
Ron and Gail plan to lower prices in an effort to encourage customers to stay longer, visit more often, and spend more money during each visit. What type of strategy are Ron and Gail planning
market penetration
Paul Robinson has identified a group of potential customers who seem to respond in a similar way to a series of magazine
market segment
Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________.
market segment
Which of the following refers to the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors
market segmentation
Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. This process involves market segmentation, ________, differentiation, and positioning.
market targeting
The process of evaluating each market segment's attractiveness and selecting one or more segments to enter is known as ________.
market targeting
Which of the following Ps in the marketing mix describes the goods-and-services combination the company offers to the target market?
product
Ron and Gail strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________.
product development
Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.
product development
Which of the following is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification?
product/market expansion grid
According to the Boston Consulting Group approach, ________ serves as a measure of company strength in the market.
relative market share
The Fun-Spot represents a high-growth, high-share business. According to the BCG matrix, it can be classified as a ________.
star
A mission statement serves as a ________.
statement of the organization's purpose
The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools. Each of these businesses is called a ________.
strategic business unit (SBU)
Most standard portfolio analysis methods evaluate SBUs on the ________.
strength of the market or industry position
Which of the following best describes a strategic business unit (SBU)?
the key businesses that make up a company
A clear mission statement acts as an "invisible hand" that guides people in the organization.
true
Mission statements should be market oriented and defined in terms of satisfying basic
true
The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system is known as the ________.
value delivery network