Question 1

Ron and Gail strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________.

Accepted Answer

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

Question 2

Berman Electronics, a chain of appliance stores in North America, caters to a wide range of customers. It has a marketing organization in which different operational specialists head different marketing activities. Berman Electronics is a(n) ________.

Accepted Answer

A)  customer management organization 
B)  niche marketer 
C)  early adopter 
D)  functional organization 
E)  laggard

Question 3

Why should mission statements be market oriented instead of product or technology oriented?

Accepted Answer

The answer of Why should mission statements be market oriented...

Question 4

According to the Boston Consulting Group approach, ________ provides a measure of market attractiveness.

Accepted Answer

A)  product attribute 
B)  product design 
C)  market penetration 
D)  market growth rate 
E)  market segmentation

Question 5

The purpose of ________ is to ensure that the company achieves the sales, profits, and other goals set out in its annual marketing plan.

Accepted Answer

A)  benchmarking 
B)  operating control 
C)  strategic control 
D)  SWOT analysis 
E)  a marketing audit

Question 6

A market segment consists of consumers who respond in different ways to a given set of marketing efforts.

Accepted Answer

A) True 
 B)False

Question 7

Harris Brown, the marketing manager at a small retail chain, wants to assess his firm's strengths, opportunities, weaknesses, and threats. Which of the following would be best suited for his purpose?

Accepted Answer

A)  SWOT analysis 
B)  cluster analysis 
C)  portfolio analysis 
D)  regression analysis 
E)  Porter's five forces analysis

Question 8

One valid criticism of the four Ps concept of the marketing mix is that services are not considered.

Accepted Answer

A) True 
 B)False

Question 9

Emerson Studios has designed its marketing organization along the lines of a ________ organization in which different marketing activities are headed by operational specialists.

Accepted Answer

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

Question 10

Alpha Motors offers "Green automobiles for a greener world." This refers to the ________ of Alpha automobiles.

Accepted Answer

A)  brand resonance 
B)  position 
C)  brand equity 
D)  hedonic value 
E)  added value

Question 11

Amor, a successful brand of women's clothing, recently introduced a line of fitness equipment. This is an example of ________.

Accepted Answer

A)  mass customization 
B)  niche marketing 
C)  diversification 
D)  prospecting 
E)  product adaptation

Question 12

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers is known as ________.

Accepted Answer

A)  positioning 
B)  segmenting 
C)  diversifying 
D)  prospecting 
E)  satisficing

Question 13

A ________ documents an organization's purpose-what it wants to accomplish in the larger environment.

Accepted Answer

A)  vision statement 
B)  mission statement 
C)  business portfolio 
D)  value proposition 
E)  product strategy

Question 14

By harvesting its SBU, a company would most likely be ________.

Accepted Answer

A)  milking its short-term cash flow regardless of the long-term effect 
B)  selling it or phasing it out and using the resources elsewhere 
C)  investing just enough to hold the SBU's current market share 
D)  investing more in the business unit to build its share 
E)  diversifying its product line

Question 15

Market segmentation can be best described as the process of ________.

Accepted Answer

A)  assigning specific human attributes to a given brand 
B)  dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs 
C)  evaluating each market segment's attractiveness and selecting one or more segments to enter 
D)  turning marketing plans into marketing actions to accomplish strategic marketing objectives 
E)  maintaining a strategic fit between organizational goals and changing marketing opportunities

Question 16

How do marketers measure return on marketing investment? Why is this figure difficult to assess?

Accepted Answer

The answer of How do marketers measure return on marketing...

Question 17

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 the arbors.
"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 the park's motto at the entrance reads, '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?

Accepted Answer

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

Question 18

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

Accepted Answer

The answer of What type of strategy should a company...

Question 19

Which of the following is true with regard to strategic planning?

Accepted Answer

A)  At the corporate level, the company starts the strategic planning process by determining what portfolio of businesses and products is best for the company. 
B)  A strategic plan deals with a company's short-term goals. 
C)  Finding the game plan for long-run survival and growth is the focus of strategic planning. 
D)  The strategic plan is a statement of an organization's purpose. 
E)  Strategic planning involves identifying segments of consumers with identical preferences.

Question 20

Sunny Brews is a coffeehouse chain based in Boston. It recently introduced Eva, a mild roast, which became immensely popular. This exemplifies ________.

Accepted Answer

A)  benchmarking 
B)  diversification 
C)  mass customization 
D)  product development 
E)  downsizing

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