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

Question 1

Which of the following is NOT an example of a market-oriented mission statement?

A)'We make the internet buying experience fast,easy,and enjoyable'.
B)'We create customer connectivity anytime,anywhere'.
C)'We create fantasies'.
D)'We hold online auctions'.
E)'We empower customers to achieve the homes of their dreams'

Answer 1

D

Question 2

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

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

Answer 2

D

Question 3

Lynx,a popular brand of male toiletries,defines itself as being in the business of assisting men in the 'mating game'.This is an example of ________.

A)market-oriented mission statement
B)product-oriented mission statement
C)technology-oriented mission statement
D)environment-oriented mission statement
E)a promotional tag line

Answer 3

A

Question 4

________ involves adapting a firm to take advantage of opportunities in its constantly changing environment.

A)Long-range planning
B)Short-range planning
C)Annual planning
D)Strategic planning
E)Environmental scanning

Question 5

Nokia has an annual plan in place to deal with the company's current SBUs and their operations.However,as a growth-oriented firm,it is interested in both domestic and international markets.This requires Nokia to constantly monitor the environment and adapt to the opportunities with which it is presented.To take advantage of its changing marketing opportunities,it is most important for Nokia to have which of the following in place?

A)value-delivery network
B)mission statement
C)supporting objectives
D)strategic plan
E)country marketing plan

Question 6

A company operates as two distinct businesses - one that sells lawn and garden products,and one that markets booklets.Each business is called a ________.

A)separate entity
B)strategic business unit (SBU)
C)matrix
D)division
E)business portfolio

Question 7

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 be turned into detailed ________ that guide each level of the company.

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

Question 8

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

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

Question 9

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

A)defining the company mission
B)setting company objectives and goals
C)designing the business portfolio
D)planning marketing and other functional strategies
E)identifying the company's culture

Question 10

The primary activity in strategic planning is goal setting.

Question 11

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

A)A mission statement should be realistic.
B)A mission statement should focus on sales or profits.
C)A mission statement should fit the market environment.
D)A mission statement should be specific.
E)A mission statement should motivate employees.

Question 12

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

A)'To provide a global trading platform where practically anyone can trade practically anything'.
B)'To sell tools and home repair and improvement items'.
C)'To deliver low prices every day'.
D)'To be the guardian of our customers' financial dreams'.
E)'To bring inspiration and innovation to every athlete in the world'.

Question 13

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

A)'At Google we provide online services'.
B)'At Disney we run theme parks'.
C)'At Nike we sell shoes'.
D)'At Revlon we sell lifestyle and self-expression;success and status;memories,hopes,and dreams'.
E)'At Hilton Hotels we rent rooms'.

Question 14

A(n)________ defines a business in terms of satisfying basic customer needs.

A)market-oriented mission statement
B)product-oriented mission statement
C)technology-oriented mission statement
D)environment-oriented mission statement
E)strategic plan

Question 15

In spite of its many obvious benefits,not all companies use strategic planning.

Question 16

________ is the process of developing and maintaining a strategic fit between the organisation's goals and capabilities and its changing market opportunities.

A)Strategic planning
B)Annual market planning
C)Short-term planning
D)Long-range planning
E)SBU planning

Question 17

A vendor for Ford Motor Company received the following message from one of Ford's marketing managers: 'As we move forward during the 21st century,it is incumbent upon us to inform you that Ford is committed to building profitable customer relationships by creating environmentally better cars and getting them to market faster at lower costs.' The marketing manager is most likely referring to Ford's ________.

A)vision statement
B)market tactics
C)business portfolio
D)mission statement
E)business objectives

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

Question 19

________ should be market oriented and defined in terms of ________.

A)Strategic plans;company needs
B)Annual plans;product needs
C)Mission statements;customer needs
D)Objectives;customer needs
E)Marketing plans;profitability

Question 20

The first step in strategic planning is to ________.

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

Question 21

A major resources firm has just developed a formal statement of its purpose.This firm has put together a mission statement.

Question 22

A marketing manager is busy working with other managers evaluating the products and businesses making up their company.He is engaged in ________.

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

Question 23

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

A)Identify businesses in which to invest.
B)Assess the attractiveness of its SBUs.
C)Decide whether to harvest any businesses.
D)Complete short-range planning.
E)Identify the SBUs.

Question 24

A marketing organisation's mission should NOT be stated as making more ________ and / or ________.

Question 25

The key businesses or organisational divisions that make up a company are known as the ________.

Question 26

Mission statements should both fit the market environment and be motivating.

Question 27

The best known product portfolio planning method was developed by ________.

A)Philip Kotler & Associates
B)Harvard University
C)Carlton Consulting Group
D)Boston Consulting Group
E)General Electric

Question 28

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

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

Question 29

A marketing organisation's mission should NOT be stated as making more sales or ________.Instead,the mission should focus on customers and the ________.

Question 30

'At Revlon,we make cosmetics' is a market-oriented business definition.

Question 31

A(n)________ can be a company division,a product line within a division or a single product or brand.

Question 32

At McDonald's,'to be our customers' favourite place and way to eat' is a product-oriented mission.

Question 33

The BCG portfolio matrix classifies SBUs on two dimensions,namely ________ and ________.

A)market share;market or industry attractiveness
B)market or industry growth rate;market or industry attractiveness
C)market growth rate;relative market share
D)market growth rate;profits
E)market penetration;market development

Question 34

________ can be a company division,a product line within a division or sometimes a single product or brand.

A)A market
B)The BCG
C)An SBU
D)A PLC
E)A value delivery network

Question 35

The annual and long-range plans deal with the company's ________ businesses and how to keep them going.In contrast,the strategic plan involves adapting the firm to take advantage of ________ in its constantly changing environment.

Question 36

Explain why companies should engage in both annual planning and strategic planning.

Question 37

Mission statements should be realistic and general in nature.

Question 38

A mission statement is a statement of the organisation's ________,that is,what it wants to accomplish in the wider operating environment.

Question 39

Business portfolio planning involves two steps: ________ and ________.

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

Question 40

A firm's mission statement should be the basis for both its business and marketing objectives.

Question 41

The BCG approach to portfolio analysis is less likely to provide a useful framework for analysis when which of the following conditions is evident?

A)It is difficult to define the organisational SBUs.
B)It is difficult to measure market share.
C)It is difficult to measure market growth rates.
D)There are no direct competitors.
E)All of the above.

Question 42

In the Boston Consulting Group approach,________ serve(s)as a measure of company strength in the market.

A)relative market share
B)annual sales or profits
C)resource utilisation
D)market growth rate
E)capital investment

Question 43

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

A)dogs
B)SBUs
C)cash cows
D)sales revenue
E)overseas operations

Question 44

The beverage,Lucozade,was originally marketed as a nutrient rich beverage that was easily tolerated by a fragile or distressed digestive system.Sick children were the intended consumers for the initial product.Eventually,Lucozade was rebranded and repositioned as a beverage for active persons,with athletes becoming the primary target market.Lucozade's ability to find a new market for its existing product is an example of ________.

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

Question 45

A strategy focused on generating more sales from existing customers without changing a firm's products is ________.

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

Question 46

In 1982,the manufacturer of carbonated drinks,the Coca Cola Group,acquired the feature film maker,Columbia Pictures,and retained control over it for almost a decade.This stage of the Coca Cola Group's history is an example of ________.

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

Question 47

In the BCG approach,the most likely candidate for divestment decisions is a ________.

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

Question 48

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

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

Question 49

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

A)stars;moons;planets;galaxies
B)sales generating;profitable profits;resource-intensive;asset rich
C)stars;cash cows;question marks;dogs
D)growth;mature;declining;divestment
E)market penetration;market development;product development;diversification

Question 50

Which of the following is a useful tool for identifying growth opportunities?

A)the BCG matrix
B)the business portfolio
C)the product / market expansion grid
D)the value chain
E)the value delivery network

Question 51

When dealing with a ________,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)star
B)dog
C)question mark
D)cash cow
E)cat

Question 52

Since its inception in 1886,the Coca Cola Group has always been associated with the manufacture and sale of flavoured,carbonated beverages.However,in recent years,the sale of carbonated beverages has been exhibiting long-term decline,forcing the company to investigate new products to add to its portfolio.Today,Coca Cola is active in fruit juices,sports drinks,energy drinks,ready-to-drink tea and coffee,still and sparkling mineral waters and vitamin waters.Coca Cola's move into a more diverse range of beverages is an example of ________.

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

Question 53

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

A)short-term oriented
B)decentralised
C)limitation-free
D)product-oriented
E)centralised

Question 54

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

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

Question 55

If a maker of exercise shirts and shorts considered introducing a line of fitness equipment,the company would be considering ________.

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

Question 56

In the BCG approach,________ 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)Stars
B)Cash cows
C)Question marks
D)Dogs
E)Cats

Question 57

Sass and Bide,according to the text,could use the product / market expansion grid to develop strategies.The owners of the company would most likely find the grid to be quite useful for identifying ________.

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

Question 58

In the BCG approach to portfolio planning,________ 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)cash cows;stars
B)question marks;dogs
C)stars;question marks
D)stars;cash cows
E)dogs;cash cows

Question 59

Disney is identifying and developing new market segments for its theme parks.Disney is exploring possibilities for ________.

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

Question 60

In the Boston Consulting Group approach,________ provide(s)a measure of market attractiveness.

A)relative market share
B)annual sales or profits
C)resource utilisation
D)market growth rate
E)capital investment

Question 61

During the late 1990s and early 2000s,skincare companies began to notice that the number of men using skincare products had increased dramatically.In an effort to leverage this trend,L'Oreal launched a new range known as L'Oreal Men Expert in 2005.This is an example of ________.

A)product development
B)market segmentation
C)market development
D)market penetration
E)repositioning

Question 62

The growth strategy of diversification involves offering modified or new products to current markets.

Question 63

A company should consider downsizing when products of an SBU no longer fit the company's overall strategy.

Question 64

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

Question 65

Thinking about the product / market expansion grid,outline marketing activities that could be used to achieve each of the four growth options;market penetration,market development,product development,and diversification.

Question 66

More and more companies involve only upper-level management teams in strategic planning.

Question 67

When designing business portfolios,most companies are well advised to add a broad range of products and businesses to their organisation.

Question 68

What type of strategy should a company use to manage its cash cows?

Question 69

The BCG matrix is the only approach to portfolio planning in widespread use today.

Question 70

In the product / market expansion grid,two approaches to growth that do not involve new product development are ________ ________ and ________ ________.

Question 71

The activity whereby management evaluates the products and businesses that make up the company is known as business ________ ________.

Question 72

When QANTAS airlines launched its low-cost carrier,Jetstar,it soon found that Jetstar's budget prices appealed to a new market segment made up of first-time travellers who had previously been locked-out of air travel due to perceptions of high price.Jetstar's ability to reach first-time travellers is an example of ________ by QANTAS.

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

Question 73

In the BCG matrix,'dogs' by definition are businesses or products that do not generate enough cash to maintain themselves.

Question 74

________ entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy.

A)Market segmentation
B)BCG
C)Product line extension
D)Downsizing
E)Market redesign

Question 75

Given the benefits of strategic planning,how can you explain why some companies do not use this type of planning?

Question 76

Though companies need to grow to compete effectively and satisfy their stakeholders,growth itself should not be a company's objective.

Question 77

The agribusiness corporation,Monsanto,which manufactures a herbicide under the brand name,RoundUp,has more recently begun to market herbicide-resistant seeds for assorted agricultural and vegetable crops.This is an example of ________.

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

Question 78

Acme Innovations Pty Ltd has modified the production processes of its widgets and gadgets in order to tap into the developing Eastern European market.It is likely following a ________ strategy.

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

Question 79

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

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

Question 80

In the product / market expansion grid,two approaches to growth that involve new product development are ________ and ________.