Deck 2: Analyzing the Marketing Environment

Question 1

The process of evaluating the attractiveness of various segments and then deciding which to pursue as a market is called:

A)market optimization.
B)repositioning.
C)targeting.
D)de-positioning.
E)consumer branding.

Answer 1

C

Question 2

The marketing planning process refers to:

A)the annual planning process for a particular product, brand, or market.
B)a set of steps that a marketer has to adopt to survive in an existing market.
C)the combination of elements that a marketer will use to promote a product.
D)a planned mix of the controllable elements of a product's marketing plan.
E)a set of steps that a marketer goes through when developing a marketing plan.

Answer 2

E

Question 3

Which of the following is an activity in the control phase of a marketing plan?

A)developing and implementing the marketing mix
B)segmenting, targeting, and positioning a market
C)evaluating the performance of a marketing strategy
D)identifying the opportunities present in a market
E)evaluating the present situation of a business

Answer 3

C

Question 4

Which of the following is considered an opportunity to businesses?

A)presence of wide distribution networks
B)availability of strong financial resources
C)favourable political changes
D)superior product offerings
E)presence of a strong base of loyal customers

Question 5

Which of the following is true of the mission statement of a company?

A)It does not discuss the fundamental business issues of the company.
B)It specifically describes the financial performance of the company.
C)It is a specific description of the firm's profits and losses.
D)It does not describe what the firm needs to do or accomplish.
E)It broadly describes the scope of activities that the company is planning to undertake.

Question 6

The top managers of a firm prepare a marketing plan.They define the mission and objectives of the business and evaluate the present situation of the firm.Which of the following phases of the marketing plan includes these activities performed by the top managers?

A)planning
B)implementation
C)control
D)evaluation
E)execution

Question 7

The top level managers of an organization meet to redefine the mission and objectives of the business.The managers set long-term objectives and form a new mission statement.The company is in the phase of forming a marketing plan.

A)monitoring
B)planning
C)designing
D)control
E)implementation

Question 8

Which of the following is an activity in the implementation phase of a marketing plan?

A)identifying a business's mission and objectives
B)evaluating the performance of a marketing strategy
C)analyzing a market by using marketing metrics
D)segmenting, targeting, and positioning a market
E)evaluating the present situation of a business

Question 9

A SWOT analysis is performed during the phase of developing a marketing plan.

A)planning
B)execution
C)review
D)control
E)implementation

Question 10

What is the next step that a business organization has to perform after completing the situation analysis?

A)identifying the organization's objectives
B)evaluating the effectiveness of the marketing plan
C)evaluating market performance
D)conducting segmentation, targeting, and positioning
E)setting marketing objectives for the organization

Question 11

Which of the following is considered a company's weakness?

A)changes in consumer behaviour
B)lack of financial resources
C)unfavourable political changes
D)natural disasters that affect the company
E)entry of new players into the industry

Question 12

Which of the following is considered a company's strength?

A)presence of wide distribution networks
B)attractiveness of the industry
C)market exit of a competitor
D)favourable political changes
E)prospect of acquiring market share in a new market

Question 13

A company that runs chains of department stores and warehouse stores classifies its customers into various demographic groups for effective targeting.This process of dividing the market into distinct groups of customers is called:

A)proximity mapping.
B)positioning.
C)segmentation.
D)marketing bias.
E)consumer branding.

Question 14

Which of the following terms refers to a group of consumers who respond similarly to a firm's marketing efforts?

A)market segment
B)product position
C)product line
D)market share
E)market position

Question 15

Which of the following is an activity in the planning phase of a marketing plan?

A)developing and implementing a marketing mix
B)evaluating the performance of a marketing strategy
C)taking corrective actions in a firm's marketing plan
D)segmenting, targeting, and positioning a market
E)defining the mission and objectives of a business

Question 16

Which of the following refers to the process of classifying a market into distinct groups of customers where each individual group has similar needs, wants, or characteristics?

A)consumer branding
B)positioning
C)marketing bias
D)segmentation
E)proximity mapping

Question 17

A SWOT analysis is:

A)typically performed by lower level managers.
B)a form of operational analysis.
C)a day-to-day control measure.
D)designed to help the firm determine its strengths.
E)performed after implementing the marketing mix.

Question 18

Which of the following is considered a threat to businesses?

A)lack of credibility in the market
B)limited consumer base
C)lack of adequate financial resources
D)poor location of service outlets
E)negative changes in demographic trends

Question 19

An organization appoints a marketing manager to study the effectiveness of the marketing plan that it has implemented.The manager analyzes organizational performance using various matrices and gives a final report.This organization is in the phase of marketing plan.

A)defining
B)planning
C)designing
D)control
E)implementation

Question 20

Alchemistro Inc.is a firm that manufactures chemical detergents and associated products.Instead of making a product that suits all, the company manufactures products that satisfy the needs of a particular market segment.Which of the following refers to this act of making a product that caters to the needs of a specific market segment?

A)consumer branding
B)de-positioning
C)targeting
D)product optimization
E)repositioning

Question 21

Market positioning is the process of:

A)attempting to change the identity of competing products in the collective minds of the target market.
B)defining the marketing mix variables to give target customers a distinct and desirable understanding of what the product represents.
C)evaluating the attractiveness of various segments and then deciding which to pursue as a market.
D)dividing the market into distinct groups of customers where each individual group has similar needs, wants, or characteristics.
E)attempting to continually engage customers with one another or with a company or a brand.

Question 22

Balter Technologies is a firm that manufactures innovative computer accessories.The company organizes a marketing campaign to increase the public awareness of its products.Which of the following elements of the marketing mix is used by Balter Technologies in this case to communicate the value of its offerings?

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

Question 23

Market growth rate is the:

A)annual rate of growth of the specific market in which the product competes.
B)growth rate of the largest firm in the industry.
C)average of the growth rate of the largest firm in the industry and the smallest firm in the industry.
D)average growth rate of the products in the specific market in which the product competes.
E)sales of the focal product divided by the sales achieved by the largest firm in the industry.

Question 24

Which of the following is the first of the four Ps of marketing that creates value for customers?

A)place
B)physical evidence
C)promotion
D)price
E)product

Question 25

Which of the following is the final step in the marketing planning process of an organization?

A)performing a situational analysis of the organization
B)identifying the opportunities that the organization has
C)evaluating the business objectives of the organization
D)evaluating the performance by using marketing metrics
E)implementing the marketing mix within the organization

Question 26

The fourth P of the marketing mix, promotion, is used by marketers to:

A)communicate the value of their offering.
B)create value for their offering.
C)deliver their offering effectively to customers.
D)create value for customers' money.
E)deliver the services associated with their offering.

Question 27

Which of the following aspects of customer value is most closely associated with the product?

A)value creation
B)value delivery
C)value for money
D)value communication
E)value exchange

Question 28

A product that serves a low-growth market but has a high market share in the industry is an example of a:

A)star
B)dog
C)question mark
D)champion
E)cash cow

Question 29

Albo Drinks is a firm that produces different types of beverages.In the soft-drinks section, the company has products in a variety of flavours.These soft-drink products, which come in many flavours, are called:

A)premium offerings.
B)market mix.
C)promotion mix.
D)product line.
E)niche portfolio.

Question 30

The telecom sector in China has been growing at a fast pace in the last few years.Rex Telecom is the market leader in the Chinese telecom market.This firm can be called a:

A)star.
B)cash cow.
C)dog.
D)question mark.
E)champion.

Question 31

McDonald's fast-food chain stresses the importance of having retail outlets in places that have heavy footfall.By doing this, restaurants are stressing the company's strategy.

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

Question 32

A manufacturing company decides to increase the number of retail outlets that the company has.This decision is part of the company's strategy.

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

Question 33

Which of the following terms is used in the BCG product portfolio analysis to refer to a product that has high market share in a high-growth market?

A)cash cow
B)star
C)dog
D)question mark
E)champion

Question 34

Which of the following Ps of marketing is associated with the delivery of value to customers?

A)physical evidence
B)place
C)price
D)promotion
E)product

Question 35

Zorbo Furniture is a firm that manufactures and markets wooden furniture.One of the departments in the firm is devoted to the production and marketing of office furniture.The department is managed independently from the other departments and is held accountable for its profitability.The office furniture department is an example of a(n):

A)joint venture.
B)executive department.
C)business alliance.
D)subsidiary firm.
E)strategic business unit.

Question 36

Which of the following is a measure of a product's strength in a particular market?

A)market potential
B)industry index
C)market value
D)relative market share
E)market growth rate

Question 37

The growth rate of the soft-drink industry in the Canada has been low for a few years now.Which of the following terms, according to the BCG portfolio analysis, can be used to refer to the brand that has the highest market share in this industry?

A)question mark
B)star
C)dog
D)champion
E)cash cow

Question 38

Apple Computers has created an image in the minds of consumers of a company that creates high-quality products.This image helps its customers identify Apple's products as more desirable than competing products.Which of the following terms refers to the process of creating a distinct and desirable understanding in the minds of consumers of what the product represents?

A)market optimization
B)market segmentation
C)target marketing
D)market positioning
E)perceptual marketing

Question 39

Which of the following terms refers to a group of products that consumers are likely to use together or perceive as similar in some way?

A)product mix
B)product line
C)product portfolio
D)niche market
E)market mix

Question 40

Which of the following refers to a division of the company that can be managed somewhat independently from other divisions of the company since it markets a specific set of products to a clearly defined group of customers?

A)business alliance
B)executive department
C)executive business segment
D)subsidiary firm
E)strategic business unit

Question 41

A product enjoys significant market share in a high-growth industry.According to the BCG portfolio analysis, the product is called a:

A)champion.
B)star.
C)cash cow.
D)dog.
E)question mark.

Question 42

Which of the following statements is true of the market development strategy?

A)A new product should be created to follow the market development strategy.
B)The strategy focuses on segments that are not served by the firm currently.
C)The strategy has its main focus on developing extremely innovative offerings.
D)The product prices should be high in a market development strategy.
E)Market development tactics include rewards programs and improved store atmospherics.

Question 43

Which of the following is the best example of using the market development strategy?

A)ABB Leather introduces its existing offering in a different market.
B)Robert Technologies introduces a new product based on a modern technology.
C)Apparo Retail announces a discount sale to increase its revenue.
D)RSB Bank intensifies its advertising campaign to attract customers.
E)Morko Chemicals invents a new vaccine and sells it around the globe.

Question 44

Which of the following is the marketing strategy that employs the existing marketing mix and focuses a firm's efforts on existing customers?

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

Question 45

Paramount Electronics manufactures electronic measuring tools.The company invents a new type of multi-meter for electronic measurements and introduces the product to its current customers.Which of the following strategies is Paramount employing?

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

Question 46

Which of the following terms is used in the BCG product portfolio analysis to refer to a product that has high market share in a market characterized by low growth?

A)cash cow
B)star
C)dog
D)question mark
E)champion

Question 47

Lava Scooters manufactures electric scooters targeted at young women.The company manufactures vehicles that have engine displacement ranging from 50 to 100 cubic centimetres.Of late, many customers have been preferring scooters that are more powerful.To satisfy such customers, the company introduces a powerful bike that has 200-cubic centimetres engine displacement.Lava Scooters is using a strategy.

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

Question 48

A market penetration strategy generally requires:

A)development of a highly innovative product offering.
B)entry to a new geographic market.
C)lesser marketing efforts.
D)reduced spending on advertising.
E)intensified distribution efforts in existing markets.

Question 49

A company attempts to increase its market share by engaging in aggressive promotional activities.The company increases its spending on advertising and sales promotions.Which of the following is the strategy that the company is using?

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

Question 50

Tropo Consultants is a firm that gives investment advice to entrepreneurs.BCG portfolio analysis reveals that the firm's offering is a star in the industry.Which of the following is a valid suggestion for the company?

A)The company should consider resource investments to fuel rapid growth.
B)The company should disinvest partly from the business.
C)The company should stop doing business in the industry.
D)The company should not allocate excess funds to existing services.
E)The company should transfer its resources to other strategic business units.

Question 51

A retail outlet offers summer discounts to its customers to increase sales.This is an example of the strategy.

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

Question 52

Dorbo Inc.manufactures microprocessors.The company is known for innovation and holds more than 300 patents.The company invents a microprocessor based on nanotechnology and introduces it to its current customers.Which strategy is Dorbo using?

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

Question 53

Which of the following is a feature of the market penetration strategy?

A)introducing the existing products in a new market segment
B)exploring new geographical markets
C)introducing a new product in a new target market
D)obtaining new customers from the existing target market
E)introducing an innovative product in a new target market

Question 54

MM Manufacturing is a small-scale firm that manufactures optical cables.The firm's market share is significantly lower than most other players in the market.However, optical cable manufacturing is a high-growth market.According to the BCG matrix, the company's offering is a:

A)star.
B)dog.
C)cash cow.
D)question mark.
E)champion.

Question 55

Which of the following is the growth strategy that employs the existing marketing offering to reach new market segments?

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

Question 56

Roltech Limited is an Asian telecom company that operates GSM networks in six countries across South Asia.Roltech's top managers identify that the company's growth has been idle for a few years and decide to take these steps to promote growth: (1) Increase the spending on advertising and intensify promotional activities.(2) Open telecom companies in European markets such as Germany and Britain.(3) Introduce special tariffs to attract more customers from South Asian markets.Which of the following strategies have Roltech's top managers decided to adopt?

A)market development and diversification
B)product development and diversification
C)market penetration and market development
D)product intensification and product development
E)market penetration and market diversification

Question 57

IBF Industries Inc.is a firm that manufactures and markets kitchen appliances in Italy.The company decides to introduce its existing range of products in Germany.This scenario is an example of the strategy.

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

Question 58

In the BCG portfolio analysis, products that are in low-growth markets and have relatively low market shares are called:

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

Question 59

Which of the following terms is used in the BCG product portfolio analysis to refer to a product that has low market share in a market characterized by high growth?

A)champion
B)star
C)question mark
D)dog
E)cash cow

Question 60

Which of the following is the growth strategy that offers a new product or service to a firm's current target market?

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

Question 61

According to the BCG matrix, Product A is called a:

A)question mark.
B)cash cow.
C)star.
D)dog.
E)champion.

Question 62

Which of the following conclusions, if made by the external agency, will present the company with an opportunity?

A)The company has exclusive market reach in the packaged food industry.
B)One of Arpin Stores' major competitors has recently gone bankrupt.
C)The company owns the largest food manufacturing facility in Canada.
D)The company owns many brands that are well-known in Canada.
E)Arpin Stores has a stronger marketing department compared to its competitors.

Question 63

Which of the following is a key difference between market development strategy and diversification strategy?

A)Diversification offers products in a new market, whereas market development involves offering a product in the existing market.
B)Diversification occurs when a new product is offered in an existing market, whereas market development takes place when an existing product is offered in a new market.
C)Diversification involves development of new product, whereas market development uses an existing product.
D)Diversification involves low levels of risk, whereas market development is characterized by high levels of risk.
E)Market development offers products in a new market, whereas diversification involves
Offering a product in the existing market.

Question 64

Developing a marketing plan for a specific brand is an example of planning.

A)SBU level
B)functional
C)divisional
D)long-term
E)corporate

Question 65

A focus on maintaining a substantial Internet presence is called excellence.

A)supportive
B)product
C)customer
D)locational
E)operational

Question 66

Which of the following overarching strategies are evident from the available description of Sabort Manufacturing?

A)operational excellence and product excellence
B)product excellence and customer excellence
C)customer excellence and positional excellence
D)locational excellence and operational excellence
E)positional excellence and customer excellence

Question 67

Which of the following conclusions, if made by the external agency, will indicate that the company is facing a threat?

A)The company incurs high transportation costs as its manufacturing facility is at a remote place.
B)One of Arpin Stores' major competitors has recently gone bankrupt.
C)Many of the company's employees lack interpersonal skills.
D)A recent regulation has increased the tax rates for packaged food products.
E)Arpin Stores has a weaker marketing department compared to its competitors.

Question 68

Sabort Manufacturing sells its products by using a wide variety of channels, including the Internet.This gives the firm excellence.

A)product
B)customer
C)operational
D)procedural
E)locational

Question 69

Customer excellence focuses on:

A)having a good physical location and Internet presence.
B)carrying out effective branding and positioning.
C)having products with high perceived value.
D)retaining loyal buyers and excellent service.
E)maintaining efficient operations and an excellent supply chain.

Question 70

Which of the following conclusions, if made by the external agency, will indicate the company's strength?

A)The market potential for packaged goods is high in Canada.
B)Economic slowdowns do not have a significant impact in the wholesale food industry.
C)The company has exclusive market reach in the packaged food industry.
D)One of Arpin Stores' major competitors has recently gone bankrupt.
E)Congress recently passed a bill to subsidize wholesale food manufacturers.

Question 71

Which of the following is a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve?

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

Question 72

Which of the following is an example of the diversification strategy?

A)A firm introduces its current products to a new set of customers.
B)A company markets an innovative product by using its existing network.
C)A firm introduces a new product to a segment that is currently not served.
D)A company exports its products to a new geographical location.
E)A firm intensifies its marketing activities to increase the sale of its current offerings.

Question 73

Which of the following conclusions, if made by the external agency, will indicate the company's weakness?

A)The company incurs high transportation costs as its manufacturing facility is at a remote place.
B)Many new players have entered the wholesale food industry in recent times.
C)An economic downturn has increased people's liking for organic products.
D)A food poisoning disaster that occurred recently has lowered people's preference for packaged foods.
E)The company must buy new machinery to remain competitive in the market.

Question 74

Artech Computers is a firm that manufactures desktop computers and computer peripherals.It focuses on minimizing wastage and gives importance to efficient supply chain procedures.This firm is attempting to obtain excellence.

A)product
B)customer
C)operational
D)procedural
E)locational

Question 75

Which of the following observations of Product A is likely to be true?

A)The product will require heavy resource investments to survive in the market.
B)The product has the opportunity to become a star in the market.
C)The product will experience rapid growth for a few years.
D)The product is not likely to be profitable for the company in the near future.
E)The product has already received heavy investments to develop its market share.

Question 76

Argos Airlines offers loyalty air miles to its regular customers.The company believes that this will build loyalty and is the most effective way of obtaining a competitive advantage.This company is focusing on excellence.

A)operational
B)product
C)process
D)locational
E)customer

Question 77

Operational excellence is achieved by:

A)having excellent supply chain management.
B)maintaining excellent customer service.
C)having products with high perceived value.
D)focusing on retaining loyal customers.
E)having a good physical location and Internet presence.

Question 78

According to the BCG matrix, Product B is called a:

A)cash cow.
B)star.
C)dog.
D)champion.
E)question mark.

Question 79

RON Inc.is a company that manufactures home appliances.The company has established a wide retail network to sell its products.As part of its growth strategy, the company launches a new subsidiary that manufactures office furniture.This is an example of the strategy.

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

Question 80

Samson Associates manufactures office furniture.The company mainly focuses on effective branding and positioning.Management believes that a good brand name alone is sufficient to attract more and more orders.This company is trying to achieve competitive advantage through excellence.

A)supportive
B)product
C)customer
D)locational
E)operational