Question 1

Earl is starting a new bank.Before their opening day Earl had a meeting with all employees.He discussed their mission,defined objectives for the bank for the coming years and shared who their target market is.He talked about their product offerings and where their future branches would be located.Earl is sharing the bank's:

Accepted Answer

All the listed activities are part of the marketing planning process.

Question 2

A written document that acts as a guidebook of marketing activities for the marketing manager is known as the _____.

Accepted Answer

The marketing plan is a written document that acts as a guidebook of marketing activities for the marketing manager.

Question 3

Tide laundry detergent is the market leader,but overall industry growth is low in this market.Tide would be classified as a _____ in a portfolio model.

Accepted Answer

Cash cows generate more cash than they need to maintain its market share and are characterized as a product with a dominant market share in a low-growth market.

Question 4

All of the following are basic strategies resulting from classifying the company's SBUs EXCEPT:

Accepted Answer

The four strategies are build,hold,harvest,and divest.

Question 5

In the portfolio model,a business unit that has low growth potential and a small market share is called a(n):

Accepted Answer

A dog has low growth potential and a small market share.

Question 6

Which of the following represents a business unit that shows rapid growth but poor profit margins?

Accepted Answer

A problem child,also called a question mark,has a low market share in a high-growth industry.

Question 7

Marketing plans should be written to do all of the following EXCEPT:

Accepted Answer

Marketing environment variables cannot be controlled.

Question 8

Which of the following category in the portfolio model is a market leader and growing fast?

Accepted Answer

A star is a fast-growing market leader.

Question 9

In the mid-1980s,the market for teenage clothes was growing quickly,but jeans were out of fashion.Levi's re-launched their jeans,led by advertising for 501s,which had never been a fashionable jean style.Within a few months,sales factors had increased dramatically,turning a ______ into a star.

Accepted Answer

A problem child,also called a question mark,has a low market share in a rapidly growing industry.

Question 10

A business unit that usually generates more than it needs to maintain its market share is called a(n)_____ in a portfolio model.

Accepted Answer

A cash cow is in a low-growth market but the product has a dominant market share,so it generates more cash than it needs to maintain its market share.

Question 11

Which of the following strategies would be most appropriate for a dog?

Accepted Answer

Getting rid of SBUs with low shares of low-growth markets is often appropriate.Problem children and dogs are most suitable for this strategy.

Question 12

A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions is known as a(n):

Accepted Answer

This is the definition of a mission statement,which answers the question,"What business are we in?"

Question 13

If market share is maintained,stars are likely to grow into:

Accepted Answer

Cash cows are often former stars that have a dominant market share.

Question 14

Before Heinz sold its 9-Lives brand cat food unit,the company identified the product as having a low market share in a high-growth market.The portfolio model would classify 9-Lives as a(n):

Accepted Answer

A problem child,also called a question mark,shows rapid growth but has poor profit margins.

Question 15

All of the following are categories used in the Boston Consulting Group's portfolio model EXCEPT:

Accepted Answer

The four categories of the Boston Consulting Group portfolio model are stars,cash cows,problem children (or question marks),and dogs.

Question 16

All of the following are elements of the marketing plan EXCEPT:

Accepted Answer

All of the other options (A, B, C, D) are elements of the marketing plan. Portfolio analysis is not typically included as a core component of a marketing plan.

Question 17

The _____ answers the question,"What business are we in?"

Accepted Answer

A mission statement is a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and on analysis of existing and anticipated environmental conditions.

Question 18

Russell Athletic,which is part of Berkshire Hathaway,Inc. ,is a market leader in sports apparel,an industry that is growing rapidly.Russell Athletic is an example of a(n)_____ according to the portfolio model.

Accepted Answer

A star has a large market share in a rapidly growing industry.

Question 19

John R.Harland Company is best known for printing checks.Its Financial Solutions division develops software for mortgage companies,which is a growing industry.This division is currently not producing at the desired level of profitability,but Harland plans to turn the division into a success by acquiring other companies that develop similar software.Harland would be engaging in a _____ strategy.

Accepted Answer

If an organization has an SBU that it believes has potential to be a star,building would be an appropriate strategy.

Question 20

The annual report of Albertson's grocery has the following statement: "Guided by relentless focus on our five imperatives,we will constantly strive to implement the critical initiatives required to achieve our vision.In doing this,we will deliver operational excellence in every corner of the Company and meet or exceed our commitments to the many constituencies we serve.All of our long-term strategies and short-term actions will be molded by a set of core values that are shared by each and every associate." This statement is an example of Albertson's:

Accepted Answer

A mission statement answers the question,"What business are we in?"

Quiz 2: Strategic Planning for Competitive Advantage