Deck 2: Company and Marketing Strategy: Partnering to Build Customer Relationships

Question 1

should be market oriented and defined in terms of _ .

A)Long- range plans;company needs
B)Annual plans;product needs
C)Mission statements;customers' needs
D)Objectives;competitors' threats
E)Strategic plans;company needs

Answer 1

C

Question 2

Making more sales to current customers without changing a firm's products is .

A)market development
B)market penetration
C)diversification
D)market attractiveness
E)product development

Answer 2

B

Question 3

Which of the following measures the profits generated by investments in marketing activities?

A)marketing ROI
B)a marketing audit
C)a budget
D)SWOT analysis
E)an executive summary

Answer 3

A

Question 4

Which of the following involves looking at whether a company's basic strategies are well matched to its opportunities?

A)portfolio analysis
B)operating control
C)ROMI
D)strategic control
E)marketing control

Question 5

Of the following,it is most important for marketers to develop for their products.

A)unique market positions
B)market management organizations
C)marketing dashboards
D)marketing ROI data
E)customer management organizations

Question 6

Fence Patrol has developed an entirely new mounting system for chain link fences.Although it is a local company,through the acquisition of a distributor it now has the ability to market its products nationwide.Fence Patrol is most likely following a _ strategy.

A)market development
B)market penetration
C)product development
D)divesting
E)downsizing

Question 7

All of the following are examples of product- oriented mission statements EXCEPT which one?

A)"We sell shoes."
B)"We rent hotel rooms."
C)"We are an online video service."
D)"We sell lifestyle and self- expression;success and status;memories,hopes,and dreams."
E)"We run theme parks."

Question 8

Modern marketing departments are arranged in the following ways EXCEPT which one?

A)functional organization
B)geographic organization
C)strategic management organization
D)market management organization
E)product management organization

Question 9

All of the following are accurate guidelines for a company's mission statement EXCEPT which one?

A)A mission statement should motivate employees.
B)A mission statement should emphasize the company's strengths in the marketplace.
C)A mission statement should be narrow.
D)A mission statement should be realistic.
E)A mission statement should be specific.

Question 10

Starbucks has introduced a debit card that lets customers prepay for coffee and snacks.This effort by Starbucks management is an example of _.

A)market development
B)product adaptation
C)product development
D)diversification
E)market penetration

Question 11

In a basic SWOT analysis the "T" stands for _.

A)tangible
B)trade
C)timing
D)trust
E)threats

Question 12

Saturn is "a different kind of company,different kind of a car";the Hummer is "like nothing else." Statements such as these reflect a firm's .

A)niche
B)product portfolio
C)marketing mix
D)target markets
E)positioning

Question 13

A company's mission statement serves as a statement of _.

A)fact
B)purpose
C)financial goals
D)sustainability
E)employee commitment

Question 14

An increasingly large number of firms are changing their organizational focus from _ to .

A)global management;regional management
B)brand management;customer management
C)product management;geographic management
D)product management;functional management
E)geographic management;functional management

Question 15

Which of the following is NOT a reason that a firm might want to abandon products or markets?

A)The firm has entered areas in which it does not have expertise.
B)The firm has not properly researched foreign markets which it has entered.
C)The market has changed,making some of the products less profitable.
D)The economic environment is showing signs of recovery.
E)The firm has grown too rapidly.

Question 16

Unlike strategic- planning efforts of the past,which were conducted primarily by senior managers,today's strategic planning is .

A)limitation- free
B)short- term oriented
C)centralized
D)decentralized
E)product oriented

Question 17

Effective positioning begins with the company's marketing offer in order to give consumers more perceived value.

A)aligning
B)pricing
C)differentiating
D)placing
E)promoting

Question 18

Monsanto operates in many businesses,including pharmaceuticals and food products.The company defines its as creating "abundant food and a healthy environment."

A)value- delivery network
B)business portfolio
C)marketing development
D)strategy
E)mission

Question 19

In the marketing management functions,a SWOT analysis should a marketing plan.

A)follow
B)precede
C)take priority over
D)evaluate
E)replace

Question 20

Most portfolio analysis methods evaluate SBUs on two dimensions,namely and .

A)market penetration;market development
B)market share;strength of the SBU's position
C)market or industry attractiveness;strength of the SBU's position
D)market growth rates;profits
E)market diversification;relative market share

Question 21

Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be?

A)a business portfolio
B)a mission statement
C)objectives and goals
D)operational strategies
E)marketing and functional strategies

Question 22

Mountain Home Farms is now using the product/market expansion grid to develop strategies.The owners of the company have most likely found the grid to be quite useful for identifying .

A)growth opportunities
B)key customers
C)new products
D)suppliers
E)target markets

Question 23

Favorite Memories specializes in serving gift shoppers that major competitors overlook and ignore.Which of the following best describes Favorite Memories?

A)market seeker
B)market nicher
C)full market coverer
D)market follower
E)market challenger

Question 24

Starbucks Coffee has recently begun selling and playing compilation CDs and is supporting its own XM satellite radio station.This represents which strategy for growth?

A)market development
B)partner development
C)diversification
D)product development
E)market penetration

Question 25

Berman Electric,a chain of 18 appliance stores,has a marketing organization in which specialists head different marketing activities.What is this type of organization called?

A)organic
B)market
C)geographic
D)functional
E)product

Question 26

After management has identified the key businesses making up its company,what is the next step in portfolio analysis?

A)assessing the attractiveness of its SBUs
B)identifying SBUs
C)deciding whether to harvest any businesses
D)completing short- range planning
E)identifying businesses in which to invest

Question 27

Which of the following can be a company division,a product line within a division,or sometimes a single product or brand?

A)a market
B)a value delivery network
C)the BCG
D)an SBU
E)a PLC

Question 28

Walmart,the world's largest retailer,has successfully launched its stores in Mexico,Canada,the U.K. ,Germany,and other nations.This is an example of how Walmart is pursuing as a growth strategy.

A)geographic market development
B)diversification
C)product development
D)market penetration
E)demographic market development

Question 29

If Under Armour,the successful maker of moisture- wicking shirts and shorts,considered introducing a line of Under Armour fitness equipment,the company would be considering .

A)market penetration
B)diversification
C)market development
D)product adaptation
E)marketing controls

Question 30

Refer to the scenario below to answer the following questions.
Fun- Spot Fun Park began as a small amusement park in 1985.With nothing more than a merry- go- round,a slide,pony rides,and an ice cream stand,Fun- Spot grew into a popular family attraction with 20 rides,a restaurant,and an outdoor performing arts theater.
"My wife,Gail,and I didn't know what we were getting into," commented Ron Hart,the owner."We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today,thousands of visitors flock to Fun- Spot: families,children of all ages,and even senior citizens who enjoy strolling through the gardens and arbor.
"There's something here for everyone," Gail Hart said with a smile."Dozens of companies hold annual company picnics here.We have welcomed class field trips.And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in."We really don't know why we've been so successful.There is nothing else like Fun- Spot Fun Park in the area.We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added."We provide a 'total package' of entertainment.Plus,we try to change our rides and various attractions from time to time for variety"
Ron and Gail Hart admitted that making every visitor happy is a priority."That has always been our philosophy," they said."Like it says on the entrance to the park,'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
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?

A)market penetration
B)customer development
C)diversification
D)product development
E)market development

Question 31

Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to hunt,hike,and bike ride.Its long- term plans include the development of lenses that,in addition to protecting users from UV rays,will also have effective water- sheeting action to reduce lens spotting.This new feature will be valuable to people who fish.In terms of a SWOT analysis,the company believes it can use the of its reputation as a sunglass manufacturer for a specialized market in combination with its current manufacturing facilities and labor force to enter this new market.

A)opportunities
B)strengths
C)threats
D)trends
E)weights

Question 32

In the four Ps of the marketing mix,design,packaging,services,and variety all fall under the category of _.

A)place
B)promotion
C)price
D)position
E)product

Question 33

The collection of businesses and products that make up a company is called its .

A)mission statement
B)strategic business unit
C)business portfolio
D)strategic plan
E)operational factor

Question 34

The four possible strategies that can be pursued for each SBU are building,holding,_ ,and .

A)promoting;selling
B)diversifying;penetrating
C)downsizing;expanding
D)developing;growing
E)harvesting;divesting

Question 35

Which of the following is NOT a step in the strategic planning process?

A)evaluating all members of the value chain
B)setting company objectives and goals
C)designing the business portfolio
D)planning marketing and other functional strategies
E)defining the company mission

Question 36

Which of the following involves evaluating each market segment's attractiveness and selecting one or more segments to enter?

A)market segmentation
B)differentiation
C)market targeting
D)positioning
E)servicing

Question 37

Emerson Studios,a chain of 25 portrait stores in five states,has organized its marketing organization into groups headed by a sales manager,an advertising manager,and a customer- service manager.What type of organization is this?

A)functional
B)customer
C)geographic
D)product
E)market

Question 38

Refer to the scenario below to answer the following questions.
Fun- Spot Fun Park began as a small amusement park in 1985.With nothing more than a merry- go- round,a slide,pony rides,and an ice cream stand,Fun- Spot grew into a popular family attraction with 20 rides,a restaurant,and an outdoor performing arts theater.
"My wife,Gail,and I didn't know what we were getting into," commented Ron Hart,the owner."We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today,thousands of visitors flock to Fun- Spot: families,children of all ages,and even senior citizens who enjoy strolling through the gardens and arbor.
"There's something here for everyone," Gail Hart said with a smile."Dozens of companies hold annual company picnics here.We have welcomed class field trips.And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in."We really don't know why we've been so successful.There is nothing else like Fun- Spot Fun Park in the area.We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added."We provide a 'total package' of entertainment.Plus,we try to change our rides and various attractions from time to time for variety"
Ron and Gail Hart admitted that making every visitor happy is a priority."That has always been our philosophy," they said."Like it says on the entrance to the park,'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
Fun- Spot's mission is .

A)market- oriented
B)too focused on profits
C)too specific
D)product- oriented
E)technology- oriented

Question 39

The process of customer- driven marketing involves which of the following?

A)analysis;targeting;implementation;control
B)problem identification;information search;decision;implementation
C)product;price;promotion;adaptation
D)market segmentation;market targeting;differentiation;positioning
E)marketing analysis;planning;implementation;feedback

Question 40

are low- growth,high share businesses or products.They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.

A)Dogs
B)Stars
C)Cash cows
D)Cats
E)Question marks

Question 41

A sound marketing strategy begins with which of the following?

A)BCG analysis
B)promotion
C)positioning
D)differentiation
E)customer analysis

Question 42

While a valuable planning tool,the BCG matrix is problematic in that it focuses on _ .

A)the present instead of the future
B)the future instead of the present
C)the past instead of the present
D)financial issues instead of the customer
E)the customer instead of suppliers

Question 43

Each department in a company that carries out value- creating activities can be thought of as a link in the company's .

A)supplier chain
B)market development
C)product development
D)value chain
E)business portfolio

Question 44

Refer to the scenario below to answer the following questions.
Fun- Spot Fun Park began as a small amusement park in 1985.With nothing more than a merry- go- round,a slide,pony rides,and an ice cream stand,Fun- Spot grew into a popular family attraction with 20 rides,a restaurant,and an outdoor performing arts theater.
"My wife,Gail,and I didn't know what we were getting into," commented Ron Hart,the owner."We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today,thousands of visitors flock to Fun- Spot: families,children of all ages,and even senior citizens who enjoy strolling through the gardens and arbor.
"There's something here for everyone," Gail Hart said with a smile."Dozens of companies hold annual company picnics here.We have welcomed class field trips.And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in."We really don't know why we've been so successful.There is nothing else like Fun- Spot Fun Park in the area.We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added."We provide a 'total package' of entertainment.Plus,we try to change our rides and various attractions from time to time for variety"
Ron and Gail Hart admitted that making every visitor happy is a priority."That has always been our philosophy," they said."Like it says on the entrance to the park,'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
Into which quadrant of the BCG matrix does Fun- Spot fall?

A)profit center
B)diversification
C)star
D)dog
E)question mark

Question 45

Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to hunt,hike,and bike ride.Its long- term plans include the development of lenses that,in addition to protecting users from UV rays,will also have effective water- sheeting action to reduce lens spotting.This new feature will be valuable to people who fish.Serengeti has determined that fishing is one of the fastest growing sports in the United States.In terms of a SWOT analysis,Serengeti has recognized a market .

A)threat
B)weakness
C)opportunity
D)strength
E)trend

Question 46

When dealing with a(n)_,managers must decide whether to invest in it in an attempt to build it into a star or cash cow or whether to phase it out.

A)cat
B)cash cow
C)question mark
D)dog
E)exclamation mark

Question 47

In the BCG matrix,income from can be used to help finance the company's question marks and stars.

A)pruned SBUs
B)exclamation marks
C)dogs
D)holding SBUs
E)cash cows

Question 48

Which of the following involves adapting a firm to take advantage of opportunities in its constantly changing environment?

A)media planning
B)short- range planning
C)long- range planning
D)annual planning
E)strategic planning

Question 49

IBM has its sales and marketing people assigned to markets in specific countries,regions,and districts.This is an example of which type of marketing organization?

A)psychographic
B)divisional
C)geographic
D)product
E)functional

Question 50

Harris,the marketing manager at a small sports retail chain,has conducted a marketing analysis.He has investigated the company's internal resources and situational factors,as well as factors and trends in the competitive sports retail chain market.Which of the following has Harris completed?

A)an executive summary
B)a marketing plan
C)a marketing mix
D)a business portfolio analysis
E)a SWOT analysis

Question 51

Which of the following is NOT a market- oriented business definition?

A)"to sell tools and home repair and improvement items"
B)"to nourish lives by making them healthier,easier,and richer"
C)"to bring inspiration and innovation to every athlete in the world"
D)"to deliver low prices every day"
E)"to be the guardian of our customers' financial dreams"

Question 52

Which of the following is the principle objective of a market- oriented mission statement?

A)to satisfy basic customer needs
B)to satisfy basic stockholder needs
C)to satisfy basic partnership needs
D)to satisfy basic owner needs
E)to satisfy basic supplier needs

Question 53

The organizational system's main advantage is that the company is organized around the needs of specific market segments.

A)geographic
B)functional
C)market management
D)vertical
E)product management

Question 54

Lucy Ortiz is preparing a PowerPoint presentation of the marketing process to show at a sales meeting.should appear in the center of her diagram depicting marketing strategies and the marketing mix.

A)Competitors
B)Company objectives
C)Customer retention rates
D)Sales goals
E)Customer value and relationships

Question 55

Refer to the scenario below to answer the following questions.
Fun- Spot Fun Park began as a small amusement park in 1985.With nothing more than a merry- go- round,a slide,pony rides,and an ice cream stand,Fun- Spot grew into a popular family attraction with 20 rides,a restaurant,and an outdoor performing arts theater.
"My wife,Gail,and I didn't know what we were getting into," commented Ron Hart,the owner."We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today,thousands of visitors flock to Fun- Spot: families,children of all ages,and even senior citizens who enjoy strolling through the gardens and arbor.
"There's something here for everyone," Gail Hart said with a smile."Dozens of companies hold annual company picnics here.We have welcomed class field trips.And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in."We really don't know why we've been so successful.There is nothing else like Fun- Spot Fun Park in the area.We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added."We provide a 'total package' of entertainment.Plus,we try to change our rides and various attractions from time to time for variety"
Ron and Gail Hart admitted that making every visitor happy is a priority."That has always been our philosophy," they said."Like it says on the entrance to the park,'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
Gail and Ron strive to provide new offerings and entertainment options for their visitors.What type of strategy is this?

A)market development
B)diversification
C)product development
D)customer development
E)market penetration

Question 56

The marketing control process entails the following steps in order: setting goals,_,evaluating performance,and .

A)measuring performance;taking corrective action
B)taking corrective action;following up
C)taking corrective action;measuring performance
D)evaluating goals;measuring performance
E)achieving goals;measuring performance

Question 57

Today the four Ps are compared to the four Cs.Product and place are called and ,respectively.

A)customer solution;convenience
B)communication;convenience
C)convenience;customer solution
D)communication;customer solution
E)customer cost;convenience

Question 58

Walmart relies on sound relationships with its low- cost suppliers in order to pass low prices on to consumers.Thus,forming a is crucial to Walmart's success.

A)diversification strategy
B)growth- share matrix
C)market concept philosophy
D)value delivery network
E)customer relationship management policy

Question 59

In the Boston Consulting Group approach,serves as a measure of company strength in the market.

A)market diversification
B)market growth rate
C)relative market share
D)market development
E)market segmentation

Question 60

In the BCG approach,_ are high- share,high- growth businesses or products.They need heavy investment to finance rapid growth.When their growth slows down,they turn into .

A)stars;cash cows
B)stars;question marks
C)question marks;dogs
D)dogs;cash cows
E)cash cows;stars

Question 61

Which of the following is the place a product occupies in the consumer's mind relative to competition?

A)placement
B)market segmentation
C)position
D)market targeting
E)product promotion

Question 62

Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called .

A)strategic control
B)developmental control
C)operating control
D)efficiency
E)marketing control

Question 63

When the makers of a ballpoint pen state they are in the communication equipment business,they are defining their mission too _ .

A)specifically
B)narrowly
C)realistically
D)broadly
E)futuristically

Question 64

When a firm develops and maintains a strategic fit between its goals and capabilities,it is performing .

A)business- portfolio planning
B)mission planning
C)values planning
D)strategic planning
E)operations planning

Question 65

Which of the following is the marketing logic by which a company hopes to achieve profitable customer relationships?

A)differentiation
B)a consistent product mix
C)the value delivery network
D)price
E)marketing strategy

Question 66

In SWOT analysis,which of the following would be considered a strength?

A)favorable factors in the environment
B)internal limitations
C)internal resources
D)trends in the market
E)factors that challenge the company's performance

Question 67

The BCG growth- share matrix classifies four types of SBUs.They are _,_ , ,and .

A)sales;market share;price;promotion
B)planning;implementing;leading;controlling
C)stars;cash cows;question marks;dogs
D)product;price;promotion;placement
E)market penetration;market development;product development;diversification

Question 68

A common practice among marketers is to identify and develop new markets for their existing products.This practice is called _.

A)market skimming
B)dual adaptation
C)market development
D)market penetration
E)product development

Question 69

Multinationals like Honda Motor Co.and Walmart stores have designed programs to work closely with their suppliers to help them reduce their costs and improve quality.This illustrates the importance of an efficient .

A)product mix
B)value chain
C)low- cost operator
D)business portfolio
E)value delivery network

Question 70

Which of the following would NOT be useful in determining marketing ROI?

A)market share
B)customer equity
C)brand awareness
D)SWOT analysis
E)a marketing dashboard

Question 71

Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and garden products and one that markets booklets.Each business is called a _ .

A)return on investment (ROI)
B)star
C)strategic business unit (SBU)
D)cash cow
E)business portfolio

Question 72

Business portfolio planning involves two steps: and .

A)identifying internal strengths;identifying external opportunities
B)conducting a SWOT analysis;establishing marketing controls
C)identifying growth opportunities;evaluating growth opportunities
D)identifying SBUs;assessing the attractiveness of SBUs
E)analyzing the current business portfolio;shaping the future business portfolio

Question 73

Which of the following is the most common approach to marketing organization?

A)functional
B)combination
C)product management
D)geographic
E)divisional

Question 74

Paul Pendergraff has identified a group of potential customers who seem to respond in a similar way to a series of magazine and radio advertisements for his company's product.Paul has identified a(n).

A)target market
B)market position
C)market segment
D)market
E)undefined niche

Question 75

Paul Pierce is busy working with other managers evaluating the products and businesses making up their company.Paul is engaged in _.

A)preparing a business portfolio
B)marketing planning
C)defining the company's mission statement
D)marketing control
E)portfolio analysis

Question 76

Which of the following does NOT accurately reflect a problem with the BCG matrix approach?

A)It focuses on classifying current businesses.
B)It is difficult to define SBUs and measure market share and growth.
C)It can be time consuming to implement.
D)It focuses on planning for the future.
E)It can be costly to conduct.

Question 77

The current mission statement of the Girl Scouts of America is to build "girls of courage,confidence,and character,who make the world a better place." The organization's former mission statement had read "to prepare young girls for motherhood and wifely duties." This change reflects the guideline that mission statements should be _ .

A)specific
B)market- oriented
C)narrow
D)broad
E)realistic

Question 78

In a basic SWOT analysis,the "S" stands for .

A)satisfactions
B)solutions
C)strengths
D)strategies
E)situation

Question 79

Which of the following is the first step in strategic planning?

A)set objectives and goals
B)define the company mission
C)develop the business portfolio
D)identify threats and weaknesses
E)plan marketing strategies

Question 80

Revlon has clearly defined its "mission" of selling lifestyle and self- expression.In order for the firm to launch its strategic plan,the mission needs to next be turned into detailed _ that guide each level of the company.

A)sets of tactics
B)sets of strategies
C)sets of promotional tools
D)supporting objectives
E)product mixes