MK201 quiz 2

Which of the following best describes the value chain of a company? a. the series of departments that design, produce, market, deliver, and support the company's products b. profits earned by the cash cows and stars in the company's business portfolio c. a network made up of the company, its suppliers, and its distributors working together to deliver customer value d. the collection of businesses and products that make up the company e. touchpoints at which a company or brand interacts with its consumers

a. the series of departments that design, produce, market, deliver, and support the company's products

Which of the following is true of strategic planning in a firm? a. It deals with maintaining the company's current business ventures. b. It deals with adapting the firm to take advantage of changing marketing opportunities. c. It occurs at the business-unit, product, and market levels rather than at the corporate level. d. It focuses on the firm's internal environment rather than the external environment. e. It involves preparing short-term investment objectives at the product level.

b. It deals with adapting the firm to take advantage of changing marketing opportunities.

A strategy for company growth that involves increasing sales to current market segments without changing the product is known as ________. a. product development b. market penetration c. diversification d. market development e. market differentiation

b. market penetration

Which of the following statements is true in the context of the BCG growth-share matrix? a. Cash cows typically turn into stars. b. The income from one SBU cannot be used to support other business units. c. Stars often need heavy investment to finance their rapid growth in a market. d. The positions of SBUs in the growth-share matrix rarely change over time. e. Dogs promise to be large sources of cash.

c. Stars often need heavy investment to finance their rapid growth in a market.

The two dimensions the BCG approach uses to evaluate and manage SBUs are ________. a. market growth rate and market development b. market growth rate and market penetration c. market growth rate and relative market share d. relative market share and market penetration e. relative market share and product development

c. market growth rate and relative market shar

Ainsworth is a toy manufacturer based in Australia. Which of the following most likely indicates that Ainsworth is following a diversification strategy? a. Ainsworth develops a new line of educational toys targeting its current market. b. Ainsworth increases its spending on advertising and promotion. c. Ainsworth introduces its toys in the Indian and South-East Asian markets. d. Ainsworth enters the U.S. market with a line of children's clothing. e. Ainsworth acquires the rights to manufacture toys resembling a popular cartoon character.

d. Ainsworth enters the U.S. market with a line of children's clothing.

Vertigo is an electronics company. According to the BCG matrix, which of the following products of Vertigo would most likely classify as a question mark? a. Electra — a home entertainment system that has a strong market share in a market that is likely to expand in the future b. Jump — an MP3 player that has a high market share in a market that is not expected to grow significantly c. SoLo — a CD player that has a very low market share in a market that is shrinking rapidly d. Blue — a cell phone that is designed for music lovers and has a very low market share in a market that is growing steadily e. SpinDrive — a car audio system that has a high market share in a market that has been growing constantly

d. Blue — a cell phone that is designed for music lovers and has a very low market share in a market that is growing steadily

A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment. a. marketing strategy b. strategic plan c. market portfolio d. mission statement e. marketing objective

d. mission statement

In the BCG matrix, ________ refer to low-growth, high-share businesses or products. a. question marks b. dogs c. heroes d. stars e. cash cows

e. cash cows

A ________ is made up of a company, its suppliers, its distributors, and its customers who partner with each other to improve the performance of the entire system. a. shareholder network b. value chain c. growth-share matrix d. business portfolio e. value delivery network

e. value delivery network