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

Question 1

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

Answer 1

D

Question 2

A vendor for Ford Motor Company received the following message from one of Ford's marketing managers: "As we move forward during the twenty-first 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

Answer 2

D

Question 3

Which of the following is the final 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

Answer 3

D

Question 4

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 5

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

A)Strategic plans; company needs
B)Annual plans; product needs
C)Long-range plans; company needs
D)Mission statements; customer needs
E)Objectives; customer needs

Question 6

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 7

________ 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 8

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?

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

Question 9

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

A)environment
B)technology used
C)company
D)product
E)market

Question 10

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 11

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

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

Question 12

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?

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

Question 13

Business portfolio planning involves two steps: ________ and ________.

A)identifying SBUs; assessing the attractiveness of SBUs
B)analyzing 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 14

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)Complete SBU identification.

Question 15

________ deals with the company's current business and ________ involves adapting a firm to take advantage of opportunities in its constantly changing environment.

A)Long-range planning; strategic planning
B)Short-range planning; long-range planning
C)Annual planning; long-range planning
D)Strategic planning; short-range planning
E)Environmental scanning; strategic planning

Question 16

Which of the following is an accurate guideline for a clear mission statement?

A)A mission statement should focus on sales.
B)A mission statement should declare how the company intends to win in the marketplace.
C)A mission statement should focus on profits.
D)A mission statement should be very general.
E)A mission statement should be very specific.

Question 17

Which of the following is a market-oriented business definition?

A)"to provide a local trading platform where practically anyone can trade practically anything"
B)"to sell tools and home repair and improvement items"
C)"to be the best company in our industry"
D)"to bring inspiration and innovation to everyone in the world"
E)"to make sports equipment"

Question 18

Which of the following is an example of a market-oriented mission statement?

A)"We help you organize the world's information and make it universally accessible and useful."
B)"We run theme parks."
C)"We make customer food and drink products."
D)"We hold online auctions."
E)"We sell tools and home repair items."

Question 19

Which of the following is an example of a product-oriented mission statement?

A)"At Home Depot, we empower consumers to achieve the homes of their dreams."
B)"At Canada's Wonderland theme park, we create fantasies-a place where dreams come true."
C)"At Nike, we bring innovation and inspiration to every athlete in the world."
D)"At Revlon, we make high quality cosmetics reasonably priced.
E)"At CP Hotels, we rent rooms."

Question 20

Paul Pierce is busy working with other managers evaluating the products and businesses making up their company. Paul is engaged in ________.

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

Question 21

The marketing concept is best thought of as which of the following?

A)a guiding philosophy for the company's marketing strategy
B)a specific company tactic to build relationships with customers, vendors, and suppliers
C)the overall purpose of the company
D)the position the company's product holds in customers' minds
E)the organization of the company's marketing department

Question 22

According to the text the best known product portfolio planning method was developed by ________.

A)Philip Kotler
B)Harvard University
C)the SRI Consulting Firm
D)the Boston Consulting Group
E)James P. Hess

Question 23

Which of the following is a reason that a firm might want to abandon products or markets?

A)The market environment has changed, making a product more profitable.
B)The firm has entered areas in which it does not have experience.
C)The economic climate is showing signs of recovery.
D)The firm has grown too slowly.
E)The firm has products which are slowly becoming more appealing to the customer.

Question 24

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 25

Which of the following is a useful tool for identifying future 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 26

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 ________.

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

Question 27

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 ________.

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

Question 28

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

A)relative market share
B)SBUs
C)cash cows
D)market growth rate
E)market segmentation

Question 29

Making more sales to current customers without changing a firm's products is called ________.

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

Question 30

Which of the following accurately reflects a problem with a matrix approach to strategic planning?

A)It focuses on future planning.
B)It can be costly to conduct.
C)It detracts from the focus on profit maximization.
D)It can lead to over estimation of profits.
E)It focuses on classifying future businesses.

Question 31

________ 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 32

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)decentralized
C)limitation-free
D)product-oriented
E)centralized

Question 33

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 ________.

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

Question 34

Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and ________.

A)market share; strength of the SBU's position
B)market or industry growth rate; market or industry attractiveness
C)market or industry attractiveness; strength of the SBU's position in that market or industry
D)market growth rate; profits
E)market penetration; market development

Question 35

________ 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 36

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

A)relative market share
B)SBUs
C)cash cows
D)market growth rate
E)dogs

Question 37

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 38

Canada's Wonderland is identifying and developing new markets for its current theme parks. Canada's Wonderland is exploring possibilities for ________.

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

Question 39

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

A)product, price, promotion, and placement
B)sales, market share, price, and promotion
C)stars, cash cows, question marks, and dogs
D)planning, organizing, leading, and controlling
E)market penetration, market development, product development, and diversification

Question 40

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 41

In a SWOT analysis, which of the following refers to factors in the external environment?

A)strengths
B)strategies
C)weaknesses
D)opportunities
E)trends

Question 42

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors is called ________.

A)market targeting
B)positioning
C)marketing strategy
D)market segmentation
E)market extension

Question 43

In the marketing management functions, a SWOT analysis should ________ a marketing plan.

A)precede
B)coincide with
C)follow
D)evaluate
E)take priority over

Question 44

A value delivery network includes ________.

A)employees within the company
B)different departments in the company
C)the company and its suppliers, distributors and customers
D)consumers
E)company departments and consumers

Question 45

For Hyundai Corporation, customers who care primarily about the price of a car make up one ________.

A)market position
B)value network
C)market segment
D)customer extension
E)value chain

Question 46

In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the category of ________.

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

Question 47

________ is the marketing logic by which a company hopes to create customer value and achieve profitable customer relationships.

A)Price
B)Being a low-cost operator
C)A consistent product mix
D)Marketing strategy
E)Implementing a differentiation strategy

Question 48

________ is the place a product occupies in consumer's mind relative to competitors' products.

A)Product placement
B)Product position
C)Market segmentation
D)Market targeting
E)Product promotion

Question 49

The text suggests that instead of thinking of selling products, marketers would be wise to take the customer's view and think of ________.

A)providing convenience
B)offering solutions to problems
C)initiating two-way communication
D)offering discounts
E)connecting services and products

Question 50

Effective positioning begins with ________ the company's marketing offer from the competition in order to give consumers more perceived value.

A)pricing
B)aligning
C)differentiating
D)promoting
E)placing

Question 51

To be successful at marketing, companies must effectively turn marketing planning into ________.

A)marketing analysis
B)marketing implementation
C)marketing control
D)marketing audits
E)marketing budgeting

Question 52

Most companies today enter a new market by serving a ________; if this proves successful, they ________.

A)single market segment; add segments
B)multitude of segments; add more segments
C)few segments; add more segments
D)niche; differentiate
E)target market; reposition

Question 53

A sound marketing strategy begins with ________.

A)positioning
B)customer analysis
C)differentiation
D)promotion
E)SWOT analysis

Question 54

Each department in a company that carries out activities to serve the customer can be thought of as a partner in the company's internal ________.

A)market development
B)product development
C)business portfolio
D)value chain
E)value delivery network

Question 55

Jill Reno has researched new markets and has decided which segments to enter. Next she should decide what ________ her company's offerings should occupy in those segments.

A)position
B)place
C)rank
D)rating
E)percentage of space

Question 56

Multinationals like Honda Motor Co. and Walmart 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 ________.

A)business model
B)low-cost operator
C)product mix
D)value-delivery network
E)problem-solver

Question 57

The process of customer-driven marketing involves ________.

A)product, price, promotion, and adaptation
B)market segmentation, market targeting, differentiation, and positioning
C)marketing analysis, planning, implementation, and feedback
D)analysis, targeting, implementation, and control
E)problem identification, information search, decision, and implementation

Question 58

The four Ps concept takes the seller's or marketer's view of the market. What are the buyer's four Cs?

A)convenience, cost, competition, and communication
B)customer solution, customer cost, convenience, and communication
C)customer solution, customer satisfaction, convenience, and communication
D)customer satisfaction, customer value, convenience, and customer relationships
E)customer solution, customer value, convenience, and communication

Question 59

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

A)internal limitations
B)trends in the market
C)favorable factors in the environment
D)factors that challenge the company's performance
E)internal resources

Question 60

________ involves evaluating each market segment's attractiveness and selecting one or more segments to enter.

A)Market segmentation
B)Product differentiation
C)Market targeting
D)Market mixing
E)Positioning

Question 61

________ involves looking at whether a company's basic strategies are well matched to its opportunities.

A)Operating control
B)Market management organization
C)Marketing control
D)Strategic control
E)Distribution

Question 62

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

A)product management
B)market management
C)geographic management
D)vertical management
E)functional management

Question 63

Acme, Inc., has modified the distribution process of its widgets and gadgets in order to tap into the Eastern European market. Acme is likely following a ________ strategy.

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

Question 64

Modern marketing departments are changing their focus to ________.

A)customer management
B)product management
C)brand management
D)functional management
E)market organization management

Question 65

Which of the following is a customer-centered measure of marketing impact?

A)customer management
B)company acquisitions
C)customer equity
D)customer retention of promotions
E)producer lifetime value

Question 66

The marketing control process entails the following steps in order: setting goals, ________, evaluating performance, and ________.

A)evaluating goals; measuring performance
B)achieving goals; measuring performance
C)taking corrective action; measuring performance
D)measuring performance; taking corrective action
E)taking corrective action; following up

Question 67

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

A)marketing control
B)operating control
C)strategic control
D)anticipatory control
E)a marketing audit

Question 68

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 69

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.

A)geographic
B)product management
C)market management
D)customer-centered
E)functional

Question 70

Which of the following measures the profits generated by investments in marketing activities?

A)SWOT analysis
B)marketing audits
C)costs of the marketing investment
D)marketing ROI
E)budgets

Question 71

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 ________.

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

Question 72

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 ________.

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

Question 73

With the rise of social media, two major challenges facing marketers today are ________.

A)keeping up with the changing technology and learning how to use it
B)keeping up with changing technology and choosing the best ones to use
C)understanding how to use the tools in a way that achieves marketing goals and measuring the effects of social media programs
D)understanding how to use the tools in a way that achieves marketing goals and interpreting the information gathered
E)measuring the most effective tools for use and measuring the effects of social media programs

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 ________.

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

Question 75

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 ________.

A)hold the pharmaceuticals division's share
B)implement a harvest strategy
C)use money from a cash cow to promote the pharmaceuticals division
D)divest the SBU
E)diversify the pharmaceutical division

Question 76

The U.S.-based company Walmart, 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 Walmart is pursuing ________ as a growth strategy.

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

Question 77

The ________ organizational format requires that a complete strategy and marketing program is developed and implemented for a specific brand.

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

Question 78

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

A)marketing control
B)strategic control
C)operating control
D)developmental control
E)efficiency

Question 79

An increasingly large number of firms are changing their organizational focus from ________ to ________.

A)product management; functional management
B)product management; geographic management
C)brand management; customer relationship management
D)geographic management; functional management
E)global management; regional management

Question 80

Which of the following may be required in the marketing control process?

A)setting long term goals
B)assigning profit
C)changing the action programs
D)defining the mission
E)discounting the causes of gaps in performance