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

Question 1

During portfolio analysis, a company ________ after identifying the key businesses that make up the company.

A) formulates a short-term marketing plan
B) assesses the attractiveness of its various SBUs
C) assesses its strengths and weaknesses
D) performs a SWOT analysis
E) assesses the effectiveness of its various channel intermediaries

Answer 1

B

Question 2

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

A) "We empower customers to achieve their dreams."
B) "We sell jumbo burgers."
C) "We are an online library."
D) "We are a low-cost airline."
E) "We make porcelain figurines."

Answer 2

A

Question 3

Which of the following is the first step of business portfolio planning?

A) shaping the future portfolio by developing strategies for growth and downsizing
B) determining which businesses should receive more, less, or no investment
C) identifying internal strengths and weaknesses
D) identifying future opportunities
E) determining short-term goals

Answer 3

B

Question 4

Which of the following best describes a strategic business unit (SBU)?

A) the internal value chain of a company
B) the supply chain of a company
C) the key businesses that make up a company
D) the key channel intermediaries of a service company
E) the key competitors of a company

Question 5

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

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 6

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) evaluating members of the company's value chain

Question 7

According to the Boston Consulting Group approach, ________ serves as a measure of company strength in the market.

A) relative market share
B) product development
C) market diversification
D) product attribute
E) market segmentation

Question 8

Mission statements should ________ and be defined in terms of ________.

A) be technology oriented; meeting the self-actualization needs of customers
B) be product oriented; satisfying the esteem needs of customers
C) embody the company's short-term plans; current opportunities
D) be market oriented; satisfying basic customer needs
E) address sales and profits; the net return on investments

Question 9

Mission statements should be ________.

A) meaningful and specific yet motivating
B) technology oriented
C) written solely for public relations purposes
D) focused on increasing sales or profits
E) strictly product oriented

Question 10

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

A) Benchmarking
B) SWOT analysis
C) Market segmentation
D) Strategic planning
E) Diversification

Question 11

A mission statement serves as a ________.

A) statement of the organization's net profits
B) plan for short-term sustainability
C) statement of the organization's purpose
D) statement of the organization's current liabilities
E) repatriation plan for the organization's highly-skilled employees

Question 12

Which of the following is NOT an example of product-oriented mission statements?

A) "We are an online library."
B) "We run theme parks."
C) "We sell athletic shoes."
D) "We sell memorable experiences."
E) "We rent hotel rooms."

Question 13

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

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

Question 14

Which of the following is the first step in strategic planning?

A) setting short-term goals
B) developing the business portfolio
C) defining the organizational mission
D) formulating the key marketing strategies
E) identifying the organization's weaknesses and the threats it faces

Question 15

Most standard portfolio analysis methods evaluate SBUs on the ________.

A) potential for niche or global marketing
B) degree of product differentiation
C) strength of the market or industry position
D) accessibility to rural markets
E) number of successful business acquisitions

Question 16

The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company.

A) SWOT analysis
B) benchmarking
C) business portfolio analysis
D) breakeven analysis
E) prospecting

Question 17

Companies that define their missions in terms of product or technology are considered myopic primarily because ________.

A) products and technologies result in low returns on investment
B) consumer preferences with regard to products and technologies are difficult to predict
C) consumer preferences for different product categories vary from time to time
D) products and technologies eventually become outdated
E) most consumers are not comfortable using sophisticated technologies during the buying process

Question 18

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

A) strategic business unit
B) supply chain
C) strategic plan
D) business portfolio
E) internal value chain

Question 19

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

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

Question 20

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

A) "We empower customers to realize their dreams."
B) "We make high-quality consumer food products."
C) "We sell success and status."
D) "We create the Hilton experience."
E) "We bring innovation to every home."

Question 21

Modern strategic planning ________.

A) exclusively consists of a company's short-term goals
B) is decentralized
C) does not involve cross-functional teams
D) does not take the overall mission of the company into consideration
E) is highly centralized

Question 22

The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to sell the firm's current products. This is an example of ________.

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

Question 23

Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular LED televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark is most likely following a ________ strategy.

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

Question 24

Which of the following companies has a product-oriented business definition?

A) A luxury hotel, whose business definition is: "We sell out-of-the-world experiences to our guests."
B) A real estate company, whose business definition is: "We sell dreams."
C) A cosmetic company, whose business definition is: "We offer hopes and self-expression."
D) A shoe manufacturer, whose business definition is: "We manufacture affordable and long-lasting shoes for all."
E) A high-technology company, whose business definition is: "We sell inspirations."

Question 25

Which of the following is true with regard to the product/expansion grid?

A) It classifies SBUs into four distinct categories.
B) It is a useful device for identifying growth opportunities.
C) It helps companies analyze their internal strengths and weaknesses.
D) It functions on the premise that firms should downsize to regain market share.
E) It is a useful device for segregating customers into distinct categories.

Question 26

A company can ________ the SBU by selling it or phasing it out and using the resources elsewhere.

A) divest
B) promote
C) expand
D) harvest
E) hold

Question 27

Which of the following is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification?

A) BCG matrix
B) analysis of variance (ANOVA)
C) product/market expansion grid
D) Harris matrix
E) SWOT analysis

Question 28

The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools. Each of these businesses is called a ________.

A) market segment
B) strategic business unit (SBU)
C) question mark
D) prospect
E) product portfolio

Question 29

Which of the following is true of the BCG matrix approach?

A) It is inexpensive to implement.
B) It does not have any limitations.
C) It considers market growth rate to be a measure of market attractiveness.
D) It describes consumer motivations and needs.
E) It does not consider relative market share to be a measure of company strength in the market.

Question 30

________ are a type of SBU that often require heavy investments to finance their rapid growth.

A) Cash cows
B) Question marks
C) Stars
D) Dogs
E) Bears

Question 31

________ are low-growth, high-share businesses/products that need less investment to hold their market share.

A) Stars
B) Cash cows
C) Question marks
D) Dogs
E) Bears

Question 32

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

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

Question 33

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

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 34

The BCG matrix approach is problematic in that it ________.

A) focuses on planning for the future at the cost of ignoring the present
B) focuses solely on current businesses and provides little scope for future planning
C) tends to undermine the importance of market growth rate as a measure of market attractiveness
D) tends to undermine the importance of relative market share as a measure of company strength in the market
E) fails to classify SBUs

Question 35

Which of the following is true with regard to cash cows?

A) They are high-growth, high-share businesses or products.
B) They can be used to help finance the company's question marks and stars.
C) They require significant cash to maintain market share.
D) They are low-share businesses and products.
E) They do not promise to be large sources of cash.

Question 36

The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth market. According to the BCG matrix, the pharmaceuticals division of Omni can be classified as a ________.

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

Question 37

Which of the following companies has a market-oriented business definition?

A) An electronics company, whose business definition is: "We produce microchips."
B) A hotel, whose business definition is: "We rent rooms."
C) An apparel company, whose business definition is: "We make and sell women's clothing."
D) A cosmetic company, whose business definition is: "We sell hope and self-esteem."
E) A pizzeria, whose business definition is: "We sell the world's most delicious thin-crust pizzas."

Question 38

Orion Inc. operates in many industries, including pharmaceuticals and food products. The company's goal is to create "abundant and affordable food for all and a healthy environment." This represents Orion's ________.

A) marketing plan
B) product mix
C) business portfolio
D) marketing mix
E) mission statement

Question 39

Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of patrons. This exemplifies ________.

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

Question 40

________ are low-share business units in high-growth markets that require a lot of cash to hold their share.

A) Stars
B) Dogs
C) Question mark
D) Cash cows
E) Bears

Question 41

Teenagers are expected to respond in a similar way to a set of marketing efforts. In other words, this group represents a ________.

A) channel intermediary
B) line extension
C) market segment
D) product attribute
E) brand personality

Question 42

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

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

Question 43

A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________.

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

Question 44

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."
Fun-Spot's mission is ________.

A) product oriented
B) technology oriented
C) market oriented
D) design oriented
E) narrowly focused on profits

Question 45

Arrow is "a different kind of company, manufacturing a different kind of a car"; the RoadPro is "like nothing else." Statements such as these reflect a firm's ________.

A) portfolio
B) marketing segment
C) positioning
D) marketing mix
E) mission statement

Question 46

Which of the following is an element of the marketing mix?

A) place
B) education
C) needs
D) wants
E) esteem

Question 47

In the context of a company's marketing mix, ________ includes company activities that make the product available to target consumers.

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

Question 48

The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system is known as the ________.

A) business portfolio
B) supply chain
C) marketing mix
D) value delivery network
E) internal value chain

Question 49

Elmo Corp., a manufacturer of personal computers and printers, recently established an office furniture exporting business. This is an example of ________.

A) niche marketing
B) local marketing
C) diversification
D) product adaptation
E) downsizing

Question 50

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

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 51

Which of the following would be classified as an opportunity in a SWOT analysis of Fun-Spot?

A) A rival amusement park announces plans to open three new rides next season.
B) A new luxury hotel is being constructed in the area, with the aim of attracting more high-spending families on vacation.
C) Ron and Gail have paid off the mortgage on Fun-Spot, significantly reducing their monthly expenses.
D) Fun-Spot employees tend to be enthusiastic and young, projecting an image of fun and vitality.
E) Fun-Spot plans to further diversify its offerings by beginning a two-week summer camp for elementary school students.

Question 52

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

A) price
B) marketing implementation
C) value chain
D) marketing strategy
E) downsizing

Question 53

RedFin manufactures diving equipment that is highly regarded by customers worldwide. Each department in RedFin contributes to its success and can be thought of as a(n) ________.

A) link in the company's internal value chain
B) separate organization
C) independent subsidiary of the company
D) separate market segment
E) SBU

Question 54

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."
The Fun-Spot represents a high-growth, high-share business. According to the BCG matrix, it can be classified as a ________.

A) star
B) question mark
C) bear
D) cat
E) dog

Question 55

Each department in a company that carries out value-creating activities can be thought of as a link in the company's ________.

A) channel of intermediaries
B) external value stream
C) demand chain
D) internal value chain
E) supplier chain

Question 56

The managers of Alfredo's Pizza, a popular pizzeria in New York City, have been increasingly encouraging senior citizens to visit the pizzeria's numerous outlets spread across the city. Anticipating a rise in the population of senior citizens in the area, the management of Alfredo's Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers. In this instance, the managers of Alfredo's Pizza are anticipating company growth through ________.

A) market development
B) product development
C) mass customization
D) niche marketing
E) product differentiation

Question 57

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

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

Question 58

FencePro, a local company, has developed an entirely new mounting system for chain link fences. After acquiring a distributor, FencePro now has the ability to market its products nationwide. FencePro is most likely following a ________ strategy.

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

Question 59

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?

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

Question 60

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

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

Question 61

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

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

Question 62

Which of the following refers to the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors?

A) market diversification
B) market segmentation
C) downsizing
D) customer relationship management
E) prospecting

Question 63

Which of the following Ps in the marketing mix describes the goods-and-services combination the company offers to the target market?

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

Question 64

Paul Robinson has identified a group of potential customers who seem to respond in a similar way to a series of magazine and radio advertisements for his company's product. Paul has identified a(n) ________.

A) target market
B) market segment
C) niche market
D) product attribute
E) product design

Question 65

In the marketing mix, design, packaging, services, and variety can be categorized under ________.

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

Question 66

A marketing plan begins with a(n) ________, which presents a brief summary of the main goals and recommendations of the plan for management review.

A) budget
B) opportunity analysis
C) threat analysis
D) executive summary
E) action program

Question 67

________ is an overall evaluation of the company's strengths, weaknesses, opportunities, and threats.

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

Question 68

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter is known as ________.

A) market segmentation
B) diversification
C) market targeting
D) prospecting
E) downsizing

Question 69

In a SWOT analysis, ________ include favorable trends in the external environment.

A) strengths
B) challenges
C) weaknesses
D) opportunities
E) threats

Question 70

Effective positioning begins with ________.

A) pricing
B) diversification
C) differentiation
D) promotion
E) segmentation

Question 71

Crocus, a gift store, specializes in serving customer segments that major competitors overlook and ignore. Which of the following best describes Crocus?

A) market follower
B) market challenger
C) early adopter
D) market nicher
E) laggard

Question 72

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

A) industry trends
B) technological shifts
C) environmental demands
D) performance challenges
E) internal capabilities

Question 73

________ refers to activities that communicate the merits of the product and persuade target customers to buy it.

A) Position
B) Promotion
C) Pricing
D) Segmentation
E) Prospecting

Question 74

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 ________.

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

Question 75

Rob has been asked by his manager to identify a group of potential customers who would respond in a similar way to a given set of marketing efforts. In this instance, Rob has been asked to identify a ________.

A) new product
B) market segment
C) marketing intermediary
D) brand
E) product line

Question 76

Which of the following is true with regard to a market segment?

A) A market segment consists of consumers with dissimilar needs and preferences.
B) A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
C) Very few markets have segments.
D) Dividing the market into segments decreases the efficiency of the selling process.
E) Dividing the market into segments reduces composite demand.

Question 77

Each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. This process involves market segmentation, ________, differentiation, and positioning.

A) market targeting
B) marketing implementation
C) supply-chain analysis
D) price discrimination
E) market diversification

Question 78

In the marketing mix, place includes ________.

A) logistics
B) discounts
C) sales promotion
D) advertising
E) packaging

Question 79

The main section of the marketing plan most likely presents a detailed ________ analysis of the current marketing situation.

A) breakeven
B) SBU
C) SWOT
D) regression
E) cluster

Question 80

Which of the following is true with regard to a SWOT analysis?

A) It classifies SBUs into four distinct categories.
B) It measures customer response to a new product.
C) It evaluates the company's overall strengths.
D) It evaluates the growth potential of a market segment.
E) It ignores the threats faced by a company while assessing its situation in the market.