Principles of Marketing: Chapter 2
Which of the following describes a typical evolution for an SBU through the four quadrants of the BCG business portfolio analysis?
An SBU often starts as a question mark and proceeds counterclockwise around the quadrants.
What is essential to recognize when determining organizational strategy? Multiple choice question.
An organization has limited resources which must be focused on achieving goals.
Identifying which three items allow an organization to determine where it is at the present time, as it begins to set a strategic direction?
Competitors Competencies Customers
Match each part of the SWOT analysis with the specific business action that you might take when you discover it. (strength)
Continue developing your efficient distribution channels.
Match each part of the SWOT analysis with the specific business action that you might take when you discover it. (opportunity)
Develop new product lines that respond to changing consumer tastes.
A market penetration strategy, as one of the possible growth opportunities, may be achieved by which of the following?
Encouraging current customers to spend more on the brand
A key role of the marketing department is to "look outward." What four actions help to achieve this objective?
Evaluating marketing actions against set goals, Listening to customers, Implementing marketing program actions, Developing offerings
True or false: The purpose of a marketing strategy is to maximize short-term profits.
False
Which of the following are true of portfolio analysis?
Firms typically perform it at the SBU or product line level of the firm. Management allocates its resources to products based on growth opportunities. Management evaluates the firm's various products and businesses.
Match each part of the SWOT analysis with the specific business action that you might take when you discover it. (threat)
Focus on less risky international markets during worldwide financial instability
Cash Cows
Generate large amounts of cash which can be invested in other SBUs.
Which statement is true regarding market share?
It is the percentage of sales of an industry accounted for by a specific firm.
Dogs
May generate enough cash to sustain themselves but are not considered current or future winners
Match each part of the SWOT analysis with the specific business action that you might take when you discover it. (weakness)
Recruit experienced manager from other firms when you lack them.
Question Mark
Require cash to maintain market share, even though that share is small.
Stars
Require cash to sustain rapid growth but will likely generate cash when growth slows.
Your firm manufactures cleaning solutions under the brand name EZ Clean. Which of the following would be a strength for your firm?
The brand name EZ Clean is well-known.
Select the three qualities that make up a good mission statement. Multiple select question.
The mission statement should offer an inspirational, long-term vision for the firm. The mission statement should identify a company's function in society. The mission statement should be clear and concise.
Identifying one's competencies, customers, and competitors helps an organization answer what important question in setting a strategic direction?
Where are we now?
If a company has a unique strength relative to its competitors, based on quality, time, cost, or innovation, then the company is said to have
a competitive advantage
Because Pure Foods is the only provider of responsibly farmed, sustainable beef products in the Midwest, it has achieved:
a competitive advantage.
A marketing plan is a road map for marketing actions for
a future time period
The Census Bureau is a unit of the U.S. Department of Commerce and would be classified as ______.
a government agency
Which is a possible opportunity for a firm that makes and sells organic frozen products in the United States?
an increasing demand for organic frozen food in overseas markets
A strategy can be defined as ______.
an organization's long-term course of action allowing it to achieve its goals
threat
avoid it, external
social responsibility
balancing the conflicting goals of stakeholders to promote their overall welfare, even at the expense of profits
strength
build on it, internal
The clear, broad, underlying industry category or market sector of an organization's offering defines its
business
What are the two ways that organizational strategies most often vary?
by the offerings an organization provides to its customers by a strategy's level in the organization
An organization's______ are its special capabilities, including skills, technologies, and resources that distinguish it from other organizations and provide value to its customers. Multiple choice question.
core competencies
An organization's ______ are the fundamental, passionate, and enduring principles that guide its conduct over time.
core values
Organizational purpose serves as the basis for an organization's
core values, culture, and mission
What are the three levels of strategy in organizations?
corporate level, strategic business unit level, functional level
weakness
correct it, internal
In an organization, the functional level is made up of ______, which provide specific and focused strategic direction.
departments
Among the four growth opportunities in diversification analysis, which is the most risky?
diversification
A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is called Blank______.
diversification analysis
Which two techniques aid in decisions about where an organization wants to go?
diversification analysis business portfolio analysis
An organization's core values are best described as the
enduring principles that guide its conduct over time.
A market penetration strategy attempts to increase sales of present products among Blank______.
existing customers
A market development strategy can be defined as selling
existing products to new customers
opportunity
exploit it, external
An organization's core values, mission, and culture will establish its philosophical reason for being, or its
foundation
At the ______ level, an organization's strategic direction becomes its most specific and focused.
functional
The lowest of the three organizational levels is the ______ level.
functional
Businesses can pursue several different types of that they would like to achieve, such as those pertaining to market share, quality, or customer satisfaction. (One word)
goals
A federal, state, county, or city unit that provides a specific service to its constituents is a(n) agency.
government or governmental
Diversification analysis and business portfolio analysis help managers develop Blank______ strategies and make resource allocation decisions.
growth
cash cows
high market share, low market growth rate
stars
high relative market share, high market growth rate
In a SWOT analysis, a weakness is an unfavorable characteristic that is Blank______ to the organization.
internal
In a SWOT analysis, strengths and weaknesses are ______, and opportunities and threats are ______.
internal; external
In defining a business firms should focus on
its customers and their needs
Once an organization has established its foundation, it can set its direction in terms of the "business" it is in and
its specific goals
What is the best way the marketing department can perform its key role of looking outward?
listening to customers
To help define its business, an organization can start by
looking at the set of organizations that sell similar offerings
question marks
low relative share, high market growth rate
Andy's Auto Detailing decides to open a second shop in a neighboring town. In doing so, the company is using which marketing strategy?
market development
If marketing tactics lead existing customers to spend more on an existing product, Blank______ has been successful.
market penetration
Which marketing strategy would use advertising to encourage existing customers to buy more of a product each time they visit a store?
market penetration
The ratio of sales revenue of a firm to the total sales revenue of all firms in the industry, including the firm itself is referred to as
market share
Each display in a marketing dashboard shows a marketing Blank______ in an easily interpreted visual format.
metric
In defining one's business, one should avoid a(n) Blank______ definition that is not focused on customer Blank______.
narrow; needs
The product development strategy involves marketing a Blank______ product or service to a Blank______ market for the organization.
new; current
A diversification strategy, one of four possible market-product strategies included in diversification analysis, introduces a Blank______ product to a Blank______ market.
new; new
A manufacturer of ophthalmic lasers currently sells its product in the United States and Europe. The firm has noticed, however, that hospitals in developing countries are now interested in having this technology. This represents a(n) Blank______ for this firm.
opportunity
A clear expression of a firm's ______ will detail why an organization exists, what problems it wishes to solve, and who it wants to be to every person it touches through its work.
organizational purpose
A marketing Blank______ is a road map for the marketing actions of an organization for a specific future time period.
plan
In Blank______ analysis, management evaluates the firm's various products and businesses, and then allocates resources according to the organization's best growth opportunities.
portfolio
In ______ analysis, management evaluates the firm's various products and businesses, and then allocates resources according to the organization's best growth opportunities.
portfolio
The Blank______ strategy offers a new product or service to a firm's existing market.
product development
In searching for growth opportunities, organizations using diversification analysis consider both current and new options for which two items?
products and markets
A business firm seeks______ while a(n) ______ organization may seek other goals like operational efficiency or customer satisfaction.
profit; nonprofit
A marketing metric is a measure of the Blank______ of a marketing activity or result.
quantitative value or trend
An SBU that moves through all four quadrants of the BCG business portfolio analysis usually starts as a Blank______ and ends as a Blank______.
question mark; dog
The BCG business portfolio analysis relies on two elements to produce four unique product categories. What are these two elements?
relative market share market growth rate
Core competencies are an organization's Blank
special capabilities, including skills, technologies, and resources that distinguish it from other organizations
The purpose of a mission statement is to ______.
state an organizations functional in society
A(n) ______ is a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers.
strategic business unit (SBU)
A large health products manufacturer has three distinct divisions: first aid products, oral care products, and foot care products. Each of these divisions has a specific strategy to target a specific market. These three divisions are referred to as Blank______.
strategic business units (SBUs)
Organizational Blank______ vary depending on organizational level and the offerings an organization provides to its customers. Multiple choice question.
strategies
Having a large U.S. market share is an example of a(n) ______ for an organization.
strength
An organization sets its direction based on Blank______.
the business it is in its specific goals
In a BCG portfolio analysis, relative market share is determined by taking a company's sales and dividing it by the sales of
the largest firm in the industry
profitability
the maximization of a financial return on a firm's investment
An organization's foundation represents
the philosophical reason for the organization's existence
employee welfare
the provision of good employment opportunities and working conditions
market share
the ratio of sales revenue of a firm to the total sales revenue of all firms in the industry, including the firm itself
Downturns in economic conditions and intense competition are examples of potential Blank______ for firms.
threats
True or false: An organization's core values typically do not change much over time
true
For an organization performing a SWOT analysis, a threat is characterized by which two things?
unfavorable and external
Inexperienced managers would be considered a(n) Blank______ in a SWOT analysis?
weakness
