marketing chapter 2
Decisions involving transportation, warehousing, inventory control, and order processing relate to the _____ strategy component.
distribution
YOU Inc., a radio cassette manufacturer, sold its business due to poor market shares. According to the BCG Matrix, the firm sold its business because the business had become a _____ as seen in its poor prospects and performance.
dog
In terms of the BCG Matrix, which of the following SBUs are characterized by earning only low market shares in lowgrowth markets?
dogs
Product lines, pricing decisions, selection of appropriate distribution channels, and decisions relating to promotional campaigns are____.
dynamic in today's boundaryless business environment
Which of the following is true of a strategic business unit?
A strategic unit has its own managers, resources, objectives, and competitors.
Which of the following is a dimension of Porter's Five Forces model?
Bargaining power of buyers
writing the mission statement.
Bass Pro Shop: To be the leading merchant of outdoor recreational products, inspiring people to love, enjoy, and conserve the great outdoors
Which of the following best describes the activity of promotion?
Communicating between buyers and sellers
The concept of _________________ refers to the ways that marketers make sure their customers get the right amount of products at the right time and place.
Distribution strategy
Which of the following defines an organization's mission?
Essential purpose that differentiates one company from others
Which of the following statements is indicative of a second mover strategy?
Observing closely the innovations of first movers and then improving on them
With respect to the BCG matrix, which one of the following generates considerable income, but requires sizeable investments to underwrite further growth in the future?
Stars
The BCG (Boston Consulting Group) matrix places strategic business units into which of the following fourquadrants:
Stars, Cash Cows, Question Marks and Dogs
If a firm decides to make a major investment in a firm that supplies raw materials to it, this would be an example of ______________ planning. If a university decides to add courses in ethics and business analysis to its master's degree program, this would be an example of ____________ planning.
Strategic, Tactical
There are many roles played in the planning process for a typical company. Depending on the organizational level, the planning focus and the effort devoted will be different. Which of the following statements is true about planning within an organization?
Supervisors are tasked with developing specific programs and tactics for achieving the goals of their responsibility areas.
Maxwell has been promoted to an upperlevel management position at QVC. He will be involved in matters relating to transportation media, order processing, and development of marketing channels. Maxwell is involved in developing _____ strategies for the marketing team.
distribution
Assume that a firm would like to expand its product line. A complete expansion would cost $100 million, but the firm can only raise $75 million in financing. This is best classified as a(n):
constraint
DK Motors' difficulty in competing with other car makers due to its lack of responsiveness to changing consumer preferences constitutes a:
constraint on its activity.
In SWOT analysis, situations where organizations are unable to capitalize on opportunities because of internal limitations are referred to as:
constraints
Operational planning:
is used to determine departmental rules and procedures.
Matching an internal strength with an external opportunity produces a situation known as:
leverage
Strategic planning has a critical impact on a firm's destiny because it provides _____ to its decision makers. customer input individual goals departmental goals
long term direction
When a massive fuel hike affected the expenses of users of Cadmia significantly, Flare Inc. introduced automobiles that run on solar energy. The introduction of such automobiles indicates that Flare Inc.:
made the best of a strategic window.
The performance framework developed by the Boston Consulting Group (BCG) plots:
market share against market growth potential.
The strategic business unit (SBU) concept is best identified as a:
marketing planning tool that best suits the needs of large, diversified organizations.
A good marketing plan revolves around an efficient, flexible, and adaptable ____________.
marketing strategy
Employees of Popsie Inc., a small grocery store chain, are working on its tactical plans. The personnel most involved in this level of its planning process would be its:
middle management, such as the merchandising and advertising managers.
The basic objectives or goals of an organization are derived from its:
mission statement.
ADA Inc. stopped its production of oral care goods after determining apparel production to be its new primary objective. This is a direct result of the _____ planning process at ADA Inc.
strategic
Comcast's NBC division acquired Universal Studios and the highest executive who approved this acquisition was most likely Comcast's CEO. This decision is the direct result of _____ planning process at Comcast.
strategic
In the planning hierarchy, plans dealing with organizationwide objectives, longterm plans, and the total budget would be classified as _____ plans.
strategic
Longterm plans focusing on those organizational objectives that will significantly affect a firm for five or more years are usually referred to as _____ plans.
strategic
At a time when computer users were having trouble storing, sending, and displaying photos, Apple introduced the iMac computer, which was equipped with a digital camera interface and photohandling software. This product was a result of Apple recognizing its:
strategic window
The limited occasions when the key requirements of a market and the particular competencies of a firm best fit together are referred to as:
strategic window
A certain social networking corporation has the highest number of users in the social networking industry. This is an example of the firm's:
strength
A SWOT analysis is designed to reveal, among other things, a firm's core competencies, which reflect its:
strengths
All planning strategies have the goal of creating:
sustainable competitive advantage.
An event management company decided to use radio advertising in order to promote an upcoming music festival. The executives of the company suggested various activities that could be used for the radio campaign. These activities are a part of the company's _____.
tactical planning efforts
The group of people to whom a firm directs its marketing efforts and ultimately its merchandise is known as its _____ market.
target
Which of the following would qualify as an example of a firm's weakness?
Inadequate financing capabilities
Which of the following statements is true of tactical planning?
It is designed to determine annual budgets and longrange strategic goals.
Every company, whether forprofit or notforprofit, must plan. Otherwise, the company will find itself reacting to future events rather than proactively positioning itself to take advantage of future events. Which of the following statements is false in regards to strategic planning?
It is done after the company completes its tactical planning activities.
You are the project manager for this year's planning process for your firm. Unlike in the past, you intend to get input from a variety of stakeholders during the course of the planning process. You are doing this because:
It will ensure that many ideas are considered and these stakeholders will become advocates for the final plan.
In addition to the four forces of the Five Forces Model, which of the following influences rivalry among competitors?
Lack of differentiation between products
Jose is part of a team that is analyzing current demographic trends. The team will make a recommendation concerning the groups of consumers toward whom the firm should direct its new marketing effort. Jose's team is involved in which of the following elements of the firm's marketing strategy?
Target market
Business strategies are impacted by the widespread use of the Internet. Which of the following is true with respect to its impact?
The Internet has reduced barriers to market entry.
In SWOT analysis, situations where organizations are unable to capitalize on opportunities because of internal limitations are referred to as:
The firm's failure to pay its taxes on time leading to a poor reputation in the market
What has five dimensions, is dynamic and ever changing, and drives the marketer's decisions about target markets and the marketing mix?
The marketing environment
Porter's Five Forces is a model which identifies five competitive forces that influence planning strategies. In regards to this model, which one of the following statements is true?
The model was later updated to include the impact of the Internet on a firm's strategies.
Marketers can rely on a full arsenal of tools and techniques to facilitate the development of effective marketing plans. With respect to these tools and techniques, which one of the following statements is true?
The strategic window refers to periods of time where what a firm does well is a close fit to what the requirements are in a given market.
The basic elements of a marketing strategy consist of
The target market and the marketing mix
Which of the following conditions would lead a company's marketers to find a new market, change prices, or compete in other ways to maintain an advantage?
When the threat of substitute products is high
You are the head of market strategies for a large media company, and you are responsible for leading the enterprise through its annual marketing planning process. Which one of the following statements is true about this process?
Your organization's objectives should be specific in describing what achievements are intended and desired.
The term marketing mix describes:
a blend of the four strategic marketing elements to satisfy specific target markets.
Atari, a consumer electronics and video games company, observed the innovations of Nintendo Co., the most powerful video game company at that time, and destroyed the market share of Nintendo eventually. This implies that Atari:
applied a secondmover strategy.
Marketing planning establishes the:
basis for any marketing strategy.
The rule of three states that the three leading firms in an industry will control _____ percent of the market.
between 70 and 90
According to the BCG market share/market growth matrix, the SBU that produces strong cash flows which can be used to finance the growth of other SBUs is the:
cash cow
One of General Electric's business units produces a variety of light bulbs and generates healthy revenue. The revenues of this business unit are used to finance the growth of other business units with higher growth potentials. How would this unit be classified on the BCG market share/market growth matrix?
cash cow
Effective relationship marketing often involves:
databases to track customer preferences.
An international apparel manufacturer changed its pricing strategy as it entered a new market where recessionary trends are being observed. This implies that the _____ factors of the marketing environment led the firm to change its pricing decisions.
economic
Core competencies are capabilities that customers value and competitors:
find difficult to duplicate.
Relationship marketing refers to a firm's effort to develop longterm, costeffective links with individual customers and suppliers. Many companies:
include relationshipbuilding goals and strategies in their larger plans for the organization.
Many companies use an approach called _____ to coordinate all promotional activities so that the consumer receives a unified and consistent message.
integrated marketing communications
An example of a firm's strength discovered by a SWOT analysis might be:
ownership of valuable patents.
The process of anticipating future events and conditions and determining the best way to achieve organizational objectives is known as:
planning
Business strategist Michael E. Porter identified five competitive forces that influence _____ in a model called Porter's Five Forces.
planning strategies
A bill passed by the government stipulates the mandatory use of revised engine mapping and particulate filters in the automobile industry. Which of the following factors of the marketing environment has affected the automobile industry in this scenario? competitive politicallegal economic socialcultural
political legal
In a(n) _____, firms evaluate their products and divisions to determine the strongest and weakest.
portfolio analysis
The marketing mix decisions which are closely regulated and subject to public scrutiny usually relate to a company's _____ strategy.
pricing
Newsletters, catalogs, and invitations to companysponsored events are most closely associated with the marketing mix activity of:
product promotion.
Jenny has been appointed the marketing manager for Spark Cleaning Products. Her job focuses on decisions involving customer service, package design, brand names, and warranties. In this scenario, Jenny is closely associated with the _____ dimension of the marketing planning.
product strategy
The first step of the marketing planning process involves:
writing the mission statement.
A company can modify a strategy when its actual performance is not in line with expected results by:
putting the marketing strategy into action and monitoring performance.
According to the BCG market share/market growth matrix, _____ typically require more cash than they generate.
question marks
The BCG market share/market growth matrix classifies products with a low relative share of a highgrowth market as
question marks
Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will:
reduce the threat of new entrants.
In marketing, the term product:
refers to a broad concept encompassing the satisfaction of consumer needs.
The product manager for a line of mousetraps informs the board of directors at the company's annual meeting that the product has been classified as a "dog" according to the BCG market share/market growth matrix. This means the product:
should be withdrawn from the market or sold off as quickly as possible.
Microsoft Windows generates considerable income for its parent company but is expensive to support. However, the expense is acceptable because Windows is the world's dominant operating system. Based on this information, Windows would be categorized under the BCG market share/market growth matrix as a:
star
The quadrant of the BCG market share/market growth matrix that represents both a high market share and a high rate of market growth represents the:
stars
According to the BCG market share/market growth matrix, the revenues earned from cash cows should be used to finance the growth of:
stars and question marks.
An example of a threat to a firm discovered by a SWOT analysis might be:
the entry of new competitors in the industry.
Decisions relating to the product strategy primarily revolve around
the features of the products being released in the market
Bell Weddings was the company that pioneered the wedding planning industry. The owners realized that customizing weddings to the wishes of the families, taking charge of the responsibilities, and creating a day that is memorable for clients was an incredible business venture. The case of Bell Weddings illustrates the value of
the first mover strategy
Compared to other organization personnel, more time is devoted to longrange strategic planning by the:
top management
Decisions about distribution strategy primarily involve challenges such as:
which marketing channels to adopt.
