Question 1

ToyBox is a toy manufacturer based in the United Kingdom.Which of the following indicates that the company is following a market penetration strategy?

Accepted Answer

A)  It introduces a line of children's clothing in the United Kingdom. 
B)  It acquires toy rights for a popular cartoon character to boost its sales. 
C)  It introduces its toys in the Indian and South-East Asian markets. 
D)  It enters the U.S. market with a line of children's clothing. 
E)  It develops a new line of educational software targeted at the current market.

Question 2

In the four Ps of the marketing mix,promotion refers solely to advertising.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  a favorable economic climate that encourages consumption 
B)  the exit of a competitor from the market 
C)  higher prices of the company's products resulting from inflation 
D)  an increase in consumer interest in the company's products 
E)  an improvement in the company's production technology

Question 4

Ainsworth is a toy manufacturer based in Australia.Which of the following most likely indicates that Ainsworth is following a diversification strategy?

Accepted Answer

A)  Ainsworth increases its spending on advertising and promotion. 
B)  Ainsworth acquires the rights to manufacture toys resembling a popular cartoon character. 
C)  Ainsworth introduces its toys in the Indian and South-East Asian markets. 
D)  Ainsworth enters the U.S. market with a line of children's clothing. 
E)  Ainsworth develops a new line of educational toys targeting its current market.

Question 5

Holiday Inn divided the total customer market into smaller segments and selected the most promising segments.Deciding what position it wants to occupy in these segments is called diversification.

Accepted Answer

A) True 
 B)False

Question 6

________ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy.

Accepted Answer

A)  Market segmentation 
B)  Vertical integration 
C)  Product line extension 
D)  Downsizing 
E)  Diversification

Question 7

SBUs identified as cash cows need less investment than stars.

Accepted Answer

A) True 
 B)False

Question 8

What is a business portfolio? How does a company typically conduct a portfolio analysis?

Accepted Answer

The answer of What is a business portfolio? How does...

Question 9

In the marketing mix,product refers to the goods and services the company offers to the target market,while promotion refers to advertising.

Accepted Answer

A) True 
 B)False

Question 10

RedInk,a company that manufactures office furniture,is based in Bodonia.It is looking to sell its current products in other countries as well.The company identifies the country of Soleria as a good option because the cultures and tastes of consumers in the two countries are similar.This is an example of a strategy for ________.

Accepted Answer

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

Question 11

Which of the following criteria provides a measure of market attractiveness in the Boston Consulting Group approach?

Accepted Answer

A)  relative market share 
B)  market sentiment 
C)  return on marketing investment 
D)  market growth rate 
E)  brand image

Question 12

EcoBean,a chain of cafes,has introduced a Special Shopper Card that allows customers to pay in advance for coffee and snacks.This effort by EcoBean management is most likely an example of ________.

Accepted Answer

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

Question 13

Which of the following groups is included in a company's value chain?

Accepted Answer

A)  customers 
B)  suppliers 
C)  employees 
D)  distributors 
E)  competitors

Question 14

Marketing ROI measures the profits generated by investments in marketing activities.

Accepted Answer

A) True 
 B)False

Question 15

Kawaii Electronics sells air conditioning systems for office buildings.The company's marketing department is currently structured as a functional organization.However,Kawaii is considering changing the structure to either a product management or a customer management organization.In a brief essay,describe each type of organization: functional,product management,and customer management.What are the advantages and/or disadvantages of each structure for Kawaii? Which structure do you recommend for Kawaii? Why?

Accepted Answer

The answer of Kawaii Electronics sells air conditioning systems for...

Question 16

Both market penetration strategies and market development strategies primarily involve ________.

Accepted Answer

A)  selling a company's current products 
B)  modifying the company's product line 
C)  selling in new as well as existing markets 
D)  developing a new product 
E)  leaving the current market

Question 17

When a company chooses to divest a particular strategic business unit,it ________.

Accepted Answer

A)  increases the advertising budget for that strategic business unit 
B)  invests more in the strategic business unit to build its market share 
C)  sells off or phases out the strategic business unit 
D)  invests just enough in the strategic business unit to keep its market share at the current level 
E)  gradually increases investment in the strategic business unit over time to maximize profits

Question 18

Which of the following best describes a marketing department with a functional organization?

Accepted Answer

A)  A company creates large teams, or even whole divisions, to serve domestic and international markets. 
B)  Marketing managers are responsible for developing marketing strategies and plans for their specific markets or customers, and the company is organized around the needs of specific customer segments. 
C)  A product manager develops and implements a complete strategy and marketing program for a specific product or brand. 
D)  Sales and marketing people are assigned to specific countries, regions, and districts. 
E)  Different marketing activities are headed by specialists such as sales managers, advertising managers, marketing research managers, and customer service managers.

Question 19

Traxx is a newly emerging shoe manufacturing company.After extensive market research,Traxx divides its market into professional athletes,"hobbyists" or amateur players,and people who wear shoes as part of their casual attire.Each category has its own needs,traits,and marketing goals.In this scenario,Traxx has engaged in market ________.

Accepted Answer

A)  development 
B)  positioning 
C)  diversification 
D)  segmentation 
E)  penetration

Question 20

Many SBUs start out as stars and move into the question mark category if they succeed.

Accepted Answer

A) True 
 B)False

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

ToyBox is a toy manufacturer based in the United Kingdom.Which of the following indicates that the company is following a market penetration strategy?

In the four Ps of the marketing mix,promotion refers solely to advertising.

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

Ainsworth is a toy manufacturer based in Australia.Which of the following most likely indicates that Ainsworth is following a diversification strategy?

Holiday Inn divided the total customer market into smaller segments and selected the most promising segments.Deciding what position it wants to occupy in these segments is called diversification.

________ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy.

SBUs identified as cash cows need less investment than stars.

What is a business portfolio? How does a company typically conduct a portfolio analysis?

In the marketing mix,product refers to the goods and services the company offers to the target market,while promotion refers to advertising.

Which of the following criteria provides a measure of market attractiveness in the Boston Consulting Group approach?

EcoBean,a chain of cafes,has introduced a Special Shopper Card that allows customers to pay in advance for coffee and snacks.This effort by EcoBean management is most likely an example of ________.

Which of the following groups is included in a company's value chain?

Marketing ROI measures the profits generated by investments in marketing activities.

Both market penetration strategies and market development strategies primarily involve ________.

When a company chooses to divest a particular strategic business unit,it ________.

Which of the following best describes a marketing department with a functional organization?

Many SBUs start out as stars and move into the question mark category if they succeed.