Question 1

Which of the following is not a functional area plan derived from the strategic plan?

Accepted Answer

Functional area plans derived from strategic plan are: production plan, finance plan, technology plan, marketing plan, and human resource plan.

Question 2

The BCG matrix identifies _____ as SBUs that have a low share of a low-growth market.

Accepted Answer

Dogs are SBUs that have a low share of a low-growth market.

Question 3

Which of the following statements about strategic planning is true?

Accepted Answer

Marketing executives are involved in the strategic planning process as they influence the process by providing important inputs in the form of information and suggestions.

Question 4

On what assumption is the BCG Portfolio Model predicated?

Accepted Answer

The BCG model is based on the assumption that profitability and cash flow will be closely related to sales volume.

Question 5

Which of the following pertains to the objective "build share"?

Accepted Answer

Build share objective sacrifices immediate earnings to improve market share.

Question 6

The cell phone market is experiencing rapid growth, but the cell phones made by Broadwing Inc., have such a low market share that Broadwing is looking to sell its cell phone division. According to the BCG Portfolio Model, the Broadwing cell phone division would be an example of a

Accepted Answer

Question marks are SBUs with a low share of a high growth market.

Question 7

According to the General Electric Portfolio Model, what should an organization do with its SBUs that fall into the red zone?

Accepted Answer

SBUs in the red zone are low in both industry attractiveness and business strength. The firm will usually decide to harvest or divest these SBUs.

Question 8

Designing additional features into a product that will induce new uses by existing buyers can be best described as an objective of the

Accepted Answer

The answer of Designing additional features into a product that...

Question 9

If done properly, _____ helps in clearly defining a blueprint for management action in all functional areas of the organization.

Accepted Answer

If done properly, strategic planning results in a clearly defined blueprint for management action in all functional areas of the organization.

Question 10

With an ever-burgeoning population, futurists predict the need for more efficient ways to produce food to feed the earth's population, and many companies are involved in genetic research. One of the companies at the forefront of research on disease and insect-resistant seeds is Monsanto's biotech division, which has already produced soybean and corn seeds that are immune to several diseases that reduce crop yields. In terms of the BCG Portfolio Model, Monsanto's biotech division is a

Accepted Answer

Question marks are SBUs with a low share of a high growth market. They have great potential but require great resources if the firm is to successfully build market share.

Question 11

This is an example of a marketing department objective: "Increase market share by 5 percent by attracting new market segments for existing use by year-end". This objective would best suit which of the following options of organizational strategies?

Accepted Answer

The objective of increasing market share by attracting new market segments for existing use aligns with the strategies of market penetration or market development. Market penetration involves increasing market share within existing market segments, while market development involves attracting new market segments for existing products or services.

Question 12

In the early 1990s, Procter & Gamble marketed three brands of toilet paper, Charmin, White Cloud, and Banner. The toilet paper industry is typically described as a low growth industry. In 1993, P&G spent $8.1 million to advertise Charmin and was rewarded with sales of over $312 million. In that same year, it spent nearly $8 million marketing White Cloud, but the toilet paper had disappointing sales of less than $63 million. Banner, with hardly any promotion at all, had $3.6 million in sales. According to the BCG Portfolio Model, which of the following statements about these three products best describes the situation in 1993?

Accepted Answer

The BCG is based on the assumption that profitability and cash flow will be closely related to sales volume. Stars are SBUs with a high share of a high-growth market. Cash cows are often market leaders, but the market they are in is not growing rapidly. Dogs are SBUs that have a low share of a low-growth market. Question marks are SBUs with a low share of a high growth market.

Question 13

Which of the following objectives seek to increase the products short-term cash flow without concern for the long run impact?

Accepted Answer

Harvest seeks to increase the product's short-term cash flow without concern for the long run impact.

Question 14

Portfolio models

Accepted Answer

Portfolio models can be used to classify SBUs to determine the future cash contributions that can be expected from each SBU as well as the future resources that each will require.

Question 15

Recently there has been a shift from the traditional role of marketing, which was based on dividing work according to function, to bringing managers and employees together to participate in

Accepted Answer

More and more organizations are rethinking the traditional role of marketing. Rather than dividing work according to, they are bringing managers and employees together to participate in cross-functional teams.

Question 16

In the early 1990s, Procter & Gamble marketed three brands of toilet paper, Charmin, White Cloud, and Banner. The toilet paper industry is typically described as a low growth industry. In 1993, P&G spent $8.1 million to advertise Charmin and was rewarded with sales of over $312 million. In that same year, it spent nearly $8 million marketing White Cloud, but the toilet paper had disappointing sales of less than $63 million. Banner, with hardly any promotion at all, had $3.6 million in sales. Which of the following statements best describes the role that each should have played in P&G's marketing plan, given what you know about the BCG Portfolio Model?

Accepted Answer

Hold share: This objective seeks to preserve the SBU's market share. Harvest: Here, the objective seeks to increase the product's short-term cash flow without concern for the long-run impact. Divest: This objective involves selling or divesting the SBU because better investment opportunities exist elsewhere.

Question 17

According to the BCG matrix, _____ are often market leaders, but the market they are in is not growing rapidly.

Accepted Answer

According to the BCG matrix cash cows are often market leaders, but the market they are in is not growing rapidly.

Question 18

In 1997, Monsanto sold its chemical products division because the division was showing slow growth in a market that was rapidly expanding. Monsanto used a _____ strategy with its chemical products division, which would be classified by the BCG Portfolio Model as a _____.

Accepted Answer

Question marks are SBUs with a low share of a high growth market and Divest involves selling or divesting the SBU because better investment opportunities exist elsewhere.

Question 19

Which of the following pertains to a company with high business strength in terms of the GE portfolio model?

Accepted Answer

Business strength is a composite index made up of factors such as market share-the higher the SBU's share of market, the greater its business strength; and share compared with leading competitor-the closer the SBU's share to the market leader, the greater its business strength.

Question 20

In the early 1990s, Procter & Gamble marketed three brands of toilet paper, Charmin, White Cloud, and Banner. The toilet paper industry is typically described as a low growth industry. In 1993 P&G spent $8.1 million to advertise Charmin and was rewarded with sales of over $312 million. In that same year, it spent nearly $8 million marketing White Cloud, but the toilet paper had disappointing sales of less than $63 million. Banner, with hardly any promotion at all, had $3.6 million in sales. According to the General Electric Portfolio Model, which of the following statements about these three products best describes the situation in 1993?

Accepted Answer

Once the SBUs are classified, they are placed on the grid Priority "A" SBUs are often called the green zone, Priority "B" SBUs are often called the yellow zone are those medium in both industry attractiveness and business strength. Priority "C" SBUs often called the red zone.

Quiz 1: Strategic Planning and the Marketing Management Process