Question 1

A company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices.

Accepted Answer

This statement is true. Providing greater customer value can be achieved by either offering lower prices or by providing additional benefits or features that would justify paying a higher price. Customers are often willing to pay more if they perceive that they are getting more value, whether that be in terms of quality, convenience, or other factors.

Question 2

In the BCG matrix,question marks are low-growth,low-share businesses and products that generate enough cash to maintain themselves but do not promise to be large sources of cash.

Accepted Answer

Question marks are actually high-growth, low-share businesses and products that require significant cash to maintain or increase their market share. They are considered uncertain and require careful consideration to determine whether they will become cash cows or dogs in the future.

Question 3

"At America Online,we create customer connectivity,anytime,anywhere," is a product-oriented mission.

Accepted Answer

A product-oriented mission focuses on the product or service itself, while this statement emphasizes customer connectivity, which is more customer-oriented.

Question 4

An SBU can be a company division or a product line within a division,but not a single product or brand.

Accepted Answer

An SBU (Strategic Business Unit) can indeed be a single product or brand, as it represents a unit within the firm that has its own strategy and operates as an independent business.

Question 5

Holiday Inn has 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 targeting.

Accepted Answer

The answer of Holiday Inn has divided the total customer...

Question 6

The four Ps concept takes the seller's view of the market.

Accepted Answer

The four Ps concept (Product, Price, Place, Promotion) is a marketing mix framework that takes the seller's perspective into account, in terms of creating a product or service, setting a price, distributing it through channels, and promoting it through various communication channels. It is often used as a guideline for creating a marketing strategy.

Question 7

In the marketing mix,place refers to activities that communicate the merits of the product and persuade target customers to buy it.

Accepted Answer

Place in the marketing mix refers to the physical location where the product is sold or the distribution channels used to make the product available to customers. The activities that communicate the merits of the product and persuade customers to buy it fall under promotion in the marketing mix.

Question 8

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

Accepted Answer

Promotion in the marketing mix refers to all the activities that communicate the value of a product or service to the target market. Advertising is one aspect of promotion, but it also includes personal selling, sales promotion, public relations, and direct marketing.

Question 9

The product development strategy involves offering modified or new products to new markets.

Accepted Answer

The product development strategy involves offering modified or new products to existing markets, not new markets.

Question 10

Mission statements should be market-oriented and defined in terms of satisfying basic customer needs.

Accepted Answer

A mission statement should focus on how a company aims to fulfill the needs and wants of its customers, which ultimately drives their success in the market.

Question 11

Stars are high-growth,high-share businesses or products.

Accepted Answer

The answer of Stars are high-growth,high-share businesses or products....

Question 12

A harvesting strategy involves selling off a low-performing SBU or phasing it out and using the resources elsewhere.

Accepted Answer

A harvesting strategy involves reducing investment in a low-performing SBU to maximize short-term profits, not necessarily selling or phasing it out.

Question 13

The growth strategy of diversification involves offering modified or new products to current markets.

Accepted Answer

The answer of The growth strategy of diversification involves offering...

Question 14

Reliant Shoes has a low market share in a market poised for high growth.Reliant is considered to be a dog on the BCG matrix.

Accepted Answer

In the BCG matrix, a "dog" is a product with low market share in a low-growth market. A product with low market share in a high-growth market is considered a "question mark."

Question 15

In the marketing mix,product means the tangible goods the company offers to the target market,while promotions include the services offered.

Accepted Answer

The answer of In the marketing mix,product means the tangible...

Question 16

The strategic plan deals with a company's current businesses,while annual plans involve adapting the firm to take advantage of opportunities in the environment.

Accepted Answer

The statement is incorrect as strategic plans also involve adapting the firm to take advantage of opportunities in the environment. Annual plans, on the other hand, focus on setting yearly goals and objectives to achieve the overall strategies outlined in the strategic plan.

Question 17

TRX is a low-share business in a market that is set to grow significantly.TRX is considered a dog on the BCG matrix.

Accepted Answer

In the BCG matrix, a "dog" is a low-share business in a low-growth market. If the market is set to grow significantly, TRX would not be classified as a "dog" but potentially as a "question mark" or "problem child."

Question 18

"At Nike,we sell shoes" is a market-oriented business definition.

Accepted Answer

The answer of "At Nike,we sell shoes" is a market-oriented...

Question 19

Market development refers to making more sales without changing a company's original product.

Accepted Answer

The answer of Market development refers to making more sales...

Question 20

In SWOT analysis,strengths and weaknesses refer to a firm's external environment,while opportunities and threats refer to the internal environment.

Accepted Answer

This statement is incorrect. In SWOT analysis, strengths and weaknesses refer to the internal environment of the firm, while opportunities and threats refer to the external environment.

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