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

Question 1

Which of the following is an example of a product-oriented mission statement?
"At Home Depot, we empower consumers to achieve the homes of their dreams."
"At Canada's Wonderland theme park, we create fantasies - a place where dreams come true."
"At Nike, we bring innovation and inspiration to every athlete in the world.."
"At Revlon, we sell lifestyle and self-expression; success and status; memories, hopes, and dreams."
"At CP Hotels, we rent rooms."

Answer 1

"At CP Hotels, we rent rooms."

Question 2

Starbucks has an annual plan in place to deal with the company's current SBUs and their operations.However, as a growth-oriented firm, Starbucks is interested in both domestic and international markets.This requires Starbucks 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 Starbucks to have which of the following in place?
value-delivery network
mission statement
supporting objectives
profit analysis
strategic plan

Answer 2

strategic plan

Question 3

Which of the following is the final step in the strategic planning process?
defining the company mission
setting company objectives and goals
designing the business portfolio
planning marketing and other functional strategies
identifying the company's culture

Answer 3

planning marketing and other functional strategies

Question 4

Paul Pierce is busy working with other managers evaluating the products and businesses making up their company.Paul is engaged in ________.
defining the company's mission statement
preparing a business portfolio
portfolio analysis
marketing planning
marketing control

Question 5

Which of the following is an example of a market-oriented mission statement?
"We help you organize the world's information and make it universally accessible and useful."
"We run theme parks."
"We make customer food and drink products."
"We hold online auctions."
"We sell tools and home repair items."

Question 6

Which of the following is a market-oriented business definition?
"to provide a local trading platform where practically anyone can trade practically anything"
"to sell tools and home repair and improvement items"
"to deliver low prices every day"
"to be the best company in our industry"
"to bring inspiration and innovation to everyone in the world"

Question 7

The first step in strategic planning is to ________.
set objectives and goals
develop the business portfolio
define the company mission
plan marketing strategies
identify a problem

Question 8

Business portfolio planning involves two steps: ________ and ________.
identifying SBUs; assessing the attractiveness of SBUs
analyzing the current business portfolio; shaping the future business portfolio
identifying internal strengths; identifying external opportunities
conducting a SWOT analysis; establishing marketing controls
identifying growth opportunities; evaluating growth opportunities

Question 9

________ is the process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
Strategic planning
Annual market planning
Short-term planning
Long-range planning
Advertising

Question 10

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.
sets of strategies
sets of tactics
sets of product mixes
supporting objectives
sets of promotional tools

Question 11

Which of the following is an accurate guideline for a clear mission statement?
A mission statement should focus on sales.
A mission statement should act like an "invisible hand" that guides people in the organization.
A mission statement should focus on profits.
A mission statement should be very general.
A mission statement should be very specific.

Question 12

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

Question 13

The collection of businesses and products that make up a company is called its ________.
strategic business unit
mission statement
strategic plan
business portfolio
operational factors

Question 14

___________ deals with the company's current business and _______involves adapting a firm to take advantage of opportunities in its constantly changing environment.
Long-range planning; strategic planning
Short-range planning; long-range planning
Annual planning; long-range planning
Strategic planning; short-range planning
Environmental scanning; strategic planning

Question 15

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?
objectives and goals
mission statement
business portfolio
marketing and functional strategies
operational strategies

Question 16

After management has identified the key businesses making up its company, what is the next step?
Identify businesses in which to invest.
Assess the attractiveness of its SBUs.
Decide whether to harvest any businesses.
Complete short-range planning.
Complete SBU identification.

Question 17

________ should be market oriented and defined in terms of ________.
Strategic plans; company needs
Annual plans; product needs
Long-range plans; company needs
Mission statements; customer needs
Objectives; customer needs

Question 18

________ can be a company division, a product line within a division, or sometimes a single product or brand.
A market
The BCG
An SBU
A PLC
A value delivery network

Question 19

A ________ defines a business in terms of satisfying basic customer needs.
market-oriented mission statement
product-oriented mission statement
technology-oriented mission statement
environment-oriented mission statement
strategic plan

Question 20

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 ________.
vision statement
market tactics
business portfolio
mission statement
business objectives

Question 21

The four possible strategies that can be pursued for each SBU are building, holding, ________, and ________.
harvesting; divesting
promoting; selling
downsizing; expanding
diversifying; penetrating
developing; growing

Question 22

In the Boston Consulting Group approach, ________ serve(s) as a measure of company strength in the market.
relative market share
SBUs
cash cows
market growth rate
market segmentation

Question 23

________ entails reducing the business portfolio by eliminating products that no longer fit the company's overall strategy.
Market segmentation
BCG
Product line extension
Downsizing
Market redesign

Question 24

Which of the following is a useful tool for identifying growth opportunities?
the BCG matrix
the business portfolio
the product/market expansion grid
the value chain
the value delivery network

Question 25

In the BCG matrix, income from ________ can be used to help finance the company's question marks and stars.
dogs
SBUs
cash cows
sales revenue
overseas operations

Question 26

Canada's Wonderland is identifying and developing new markets for its theme parks.Canada's Wonderland is exploring possibilities for ________.
market penetration
market development
downsizing
diversification
product development

Question 27

The marketing concept is best thought of as which of the following?
a guiding philosophy for the company's marketing strategy
a specific approach to building relationships with customers, vendors, and suppliers
the overall purpose of the company
the position the company's product holds in customers' minds
the organization of the company's marketing department

Question 28

In the Boston Consulting Group approach, ________ provide(s) a measure of market attractiveness.
relative market share
SBUs
cash cows
market growth rate
dogs

Question 29

Unlike strategic-planning efforts of the past, which were conducted primarily by senior managers, today's strategic planning is more ________.
short-term oriented
decentralized
limitation-free
product-oriented
centralized

Question 30

Which of the following accurately reflects a problem with the BCG matrix approach?
It focuses on future planning.
It can be costly to conduct.
It detracts from the focus on profit maximization.
It can lead to over estimation of profits.
It focuses on classifying future businesses.

Question 31

Making more sales without changing a firm's products is ________.
market development
market growth
market penetration
product development
market attractiveness

Question 32

The BCG growth-share matrix classifies four types of SBUs.They are ________, ________, ________, and ________.
product; price; promotion; placement
sales; market share; price; promotion
stars; cash cows; question marks; dogs
planning; organizing; leading; controlling
market penetration; market development; product development; diversification

Question 33

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.
star
dog
question mark
cash cow
cat

Question 34

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 ________.
marketing controls
market development
diversification
market penetration
product adaptation

Question 35

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 ________.
target markets
growth opportunities
key customers
new products
suppliers

Question 36

Which of the following is a reason that a firm might want to abandon products or markets?
The market environment has changed, making a product more profitable.
The firm has entered areas in which it does not have expertise.
The economic climate is showing signs of recovery.
The firm has grown too slowly.
The firm has researched a foreign market which it has entered and it matches their domestic strategy.

Question 37

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 ________.
cash cows; stars
question marks; dogs
stars; question marks
stars; cash cows
dogs; cash cows

Question 38

According to the text the best known product portfolio planning method was developed by ________.
Philip Kotler
Harvard University
the SRI Consulting Firm
the Boston Consulting Group
James P.Hess

Question 39

________ 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.
Stars
Cash cows
Question marks
Dogs
Cats

Question 40

Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________.
market share; strength of the SBU's position
market or industry growth rate; market or industry attractiveness
market or industry attractiveness; strength of the SBU's position
market growth rate; profits
market penetration; market development

Question 41

________ is the marketing logic by which a company hopes to achieve profitable customer relationships.
Price
Being a low-cost operator
A consistent product mix
Marketing strategy
Implementing a differentiation strategy

Question 42

The four Ps concept takes the seller's or marketer's view of the market.What are the buyer's four Cs?
convenience, cost, competition, and communication
customer solution, customer cost, convenience, and communication
customer solution, customer satisfaction, convenience, and communication
customer satisfaction, customer value, convenience, and customer relationships
customer solution, customer value, convenience, and communication

Question 43

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors is called ________.
market targeting
positioning
marketing strategy
market segmentation
market extension

Question 44

Effective positioning begins with ________ the company's marketing offer in order to give consumers more perceived value.
pricing
aligning
differentiating
promoting
placing

Question 45

Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.
market development
product development
business portfolio
value chain
value delivery network

Question 46

In a SWOT analysis, which of the following refers to factors in the external environment?
strengths
strategies
weaknesses
opportunities
trends

Question 47

A sound marketing strategy begins with ________.
positioning
customer analysis
differentiation
promotion
SWOT analysis

Question 48

A value delivery network includes __________.
employees within the company
different departments in the company
the company and its suppliers, distributors and customers
consumers
distributors and consumers

Question 49

Multinationals like Honda Motor Co.and Wal-Mart 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 ________.
business model
low-cost operator
product mix
value-delivery network
problem-solver

Question 50

In the marketing management functions, a SWOT analysis should ________ a marketing plan.
precede
coincide with
follow
evaluate
take priority over

Question 51

Jill Reno has researched new markets and has decided which segments to enter.Next she should decide what ________ her company should occupy in those segments.
position
place
rank
rating
percentage of space

Question 52

Most companies today enter a new market by serving a ________; if this proves successful, they ________.
single market segment; add segments
multitude of segments; add more segments
few segments; add more segments
niche; differentiate
target market; reposition

Question 53

________ is the place a product occupies in the consumer's mind relative to competitors' products.
Product placement
Product position
Market segmentation
Market targeting
Product promotion

Question 54

In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________.
product
price
promotion
place
position

Question 55

The process of customer-driven marketing involves ________, ________, ________, and ________.
product; price; promotion; adaptation
market segmentation; market targeting; differentiation; positioning
marketing analysis; planning; implementation; feedback
analysis; targeting; implementation; control
problem identification; information search; decision; implementation

Question 56

To be successful at marketing, companies must effectively turn marketing planning into ________.
marketing analysis
marketing implementation
marketing control
marketing audits
marketing budgeting

Question 57

For Hyundai Corporation, customers who care primarily about the price of a car and its operating economy make up one ________.
market position
value network
market segment
customer extension
value chain

Question 58

________ involves evaluating each market segment's attractiveness and selecting one or more segments to enter.
Market segmentation
Product differentiation
Market targeting
Market mixing
Positioning

Question 59

The text suggests that instead of thinking of selling products, marketers would be wise to take the customer's view and think of ________.
providing convenience
offering solutions to problems
initiating two-way communication
offering discounts
connecting services and products

Question 60

In a SWOT analysis, which of the following would be considered a strength?
internal limitations
trends in the market
favorable factors in the environment
factors that challenge the company's performance
internal resources

Question 61

Acme, Inc., has modified the production processes of its widgets and gadgets in order to tap into the Eastern European market.Acme is likely following a ________ strategy.
market penetration
market development
diversification
harvesting
product development

Question 62

The ________ organizational format requires that a complete strategy and marketing program is developed and implemented for a specific brand.
functional
market management
geographic
product management
customer management

Question 63

Which of the following measures the profits generated by investments in marketing activities?
SWOT analysis
marketing audits
executive summaries
marketing ROI
budgets

Question 64

Monsanto operates in many businesses, including pharmaceuticals and food products.The company defines its ________ as creating "abundant food and a healthy environment."
strategy
market development
business portfolio
mission
value-delivery network

Question 65

The ________ organizational system's main advantage is that the company is organized around the needs of specific market segments.
product management
market management
geographic management
vertical management
functional management

Question 66

________ involves looking at whether a company's basic strategies are well matched to its opportunities.
Operating control
Market management organization
Marketing control
Strategic control
Distribution

Question 67

Ensuring that the company achieves the sales, profits, and other goals set out in its annual marketing plan is the purpose of ________.
marketing control
operating control
strategic control
anticipatory control
a marketing audit

Question 68

Modern marketing departments are increasingly arranged using __________.
cross-functional teams
market manipulation teams
production management arrangements
political structures
media teams

Question 69

With the rise of social media, two major challenges facing marketers today are __________.
keeping up with the changing technology and learning how to use it
keeping up with changing technology and choosing the best ones to use
understanding how to use the tools in a way that achieves marketing goals and measuring the effects of social media programs
understanding how to use the tools in a way that achieves marketing goals and interpreting the information gathered
measuring the most effective tools for use and measuring the effects of social media programs

Question 70

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 ________.
separate entity
strategic business unit (SBU)
matrix
division
business portfolio

Question 71

Which of the following may be required in the marketing control process?
setting long term goals
assigning profit
changing the action programs
defining the mission
discounting the causes of gaps in performance

Question 72

The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market.In order to increase market share, managers may decide to ________.
hold the pharmaceuticals division's share
implement a harvest strategy
use money from a cash cow to promote the pharmaceuticals division
divest the SBU
diversify the pharmaceutical division

Question 73

An increasingly large number of firms are changing their organizational focus from ________ to ________.
product management; functional management
product management; geographic management
brand management; customer relationship management
geographic management; functional management
global management; regional management

Question 74

Starbucks has introduced a debit card that lets customers prepay for coffee and snacks.This effort by Starbucks management is an example of ________.
market development
product development
diversification
market penetration
product adaptation

Question 75

Under the ________ organizational format of marketing departments, different marketing activities are headed by a specialist such as a sales manager, advertising manager, marketing research manager, or customer-service manager.
geographic
product management
market management
customer-centered
functional

Question 76

Evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are attained is called ________.
marketing control
strategic control
operating control
developmental control
efficiency

Question 77

Which of the following is a customer-centered measure of marketing impact?
customer management
customer's acquisitions
customer equity
customer retention of promotions
producer lifetime value

Question 78

The Bank of Ontario bought Pershing, an off-shore investment firm with operations in India, from Credit Suisse First Boston.The Bank of Ontario is pursuing a ________.
product development strategy
downsizing strategy
diversification strategy
market penetration strategy
product adaptation

Question 79

The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and ________.
evaluating goals; measuring performance
achieving goals; measuring performance
taking corrective action; measuring performance
measuring performance; taking corrective action
taking corrective action; following up

Question 80

The U.S.-based company Wal-Mart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the U.K., and Germany, and other nations.This is an example of how Wal-Mart is pursuing ________ as a growth strategy.
market penetration
product development
demographic market development
geographical market development
diversification