Question 1

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

Accepted Answer

Strategic control involves evaluating whether a company's strategies are in line with its opportunities and making adjustments if necessary. Options A, B, C, and E are not directly related to this aspect of business management.

Question 2

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

Accepted Answer

Market management organizational system is designed to cater to the specific needs of market segments, which makes it easier for the company to target and serve specific customers. This system allows the company to be more customer-centric and agile in responding to changes in customer preferences and market trends. Product management focuses on managing individual products and their development, geographic management divides the company by geographic regions, vertical management focuses on managing the supply chain and production process, while functional management organizes the company by departments such as marketing, finance, and operations.

Question 3

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.

Accepted Answer

Market development involves expanding into new markets with existing products. Acme is modifying its distribution process to tap into the Eastern European market, which is a new market for the company. Therefore, Acme is following a market development strategy.

Question 4

Modern marketing departments are changing their focus to ________.

Accepted Answer

Modern marketing departments are shifting their focus towards customer management. This involves analyzing customer behavior and preferences to provide personalized and targeted marketing strategies. This approach helps businesses build long-term relationships with customers, increase customer loyalty, and ultimately drive revenue growth. Therefore, option A is the best choice.

Question 5

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

Accepted Answer

Customer equity is a customer-centered measure of marketing impact that calculates the total value of a company's customer base. It highlights the importance of retaining and developing long-term relationships with customers, rather than solely focusing on short-term sales promotions or company acquisitions.

Question 6

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

Accepted Answer

The marketing control process starts with setting goals, then measuring performance, evaluating the results, and taking corrective action if necessary. So, the correct order is setting goals, measuring performance, evaluating performance, and taking corrective action. Therefore, option D is the correct answer.

Question 7

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

Accepted Answer

The answer of Ensuring that the company achieves the sales,...

Question 8

Monsanto operates in many businesses, including pharmaceuticals and food products. The company defines its ________ as creating "abundant food and a healthy environment."

Accepted Answer

The statement given by the company, "creating abundant food and a healthy environment," is the definition of its mission. A company's mission statement defines its purpose and what it aims to accomplish.

Question 9

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.

Accepted Answer

The functional organizational format is based on specialized functions, such as sales, advertising, market research, and customer service, with a manager in charge of each function. The other options describe different ways to organize marketing activities but do not specify the use of specialists for different functions.

Question 10

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

Accepted Answer

Marketing ROI (Return on Investment) measures the profits generated by investments in marketing activities. It helps businesses to evaluate the effectiveness of their marketing campaigns and to make informed decisions about future investments. SWOT analysis, marketing audits, costs of the marketing investment, and budgets are important components of marketing planning and analysis, but they do not directly measure the profits generated by marketing activities.

Question 11

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 ________.

Accepted Answer

The Bank of Ontario is expanding its operations through the acquisition of Pershing, indicating a diversification strategy.

Question 12

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 ________.

Accepted Answer

Kimball Gardens operates as two strategic business units (SBUs) as each business requires a separate marketing and strategic plan.

Question 13

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

Accepted Answer

The two major challenges facing marketers with the rise of social media are understanding how to use the tools in a way that achieves marketing goals and measuring the effects of social media programs. Option C addresses both of these challenges. Option A only addresses the first challenge, while option B only addresses the second. Option D is similar to option C but includes interpreting the information gathered, which is not explicitly mentioned in the question. Option E only addresses measuring the effects of social media programs and does not mention understanding how to use the tools effectively. Therefore, option C is the best choice.

Question 14

Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. This effort by Starbucks management is an example of ________.

Accepted Answer

Introducing a debit card that lets customers prepay for coffee and snacks is an example of market penetration. This strategy aims to increase sales of existing products to the current market without changing the product itself. By offering a new, convenient way to purchase their products, Starbucks is encouraging more frequent purchases and loyalty among its current customer base.

Question 15

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 ________.

Accepted Answer

Given that the pharmaceuticals division is in a high-growth market but has a low market share, investing in it to increase its market share is a strategic move. Using funds from a cash cow (a business unit with high market share in a low-growth market) to promote the pharmaceuticals division can provide the necessary financial support to boost its growth and competitiveness.

Question 16

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.

Accepted Answer

Market development is a growth strategy in which a company expands its reach by entering new markets with its existing products or services. Walmart's expansion into Mexico, Canada, the U.K., and Germany is an example of this strategy.

Question 17

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

Accepted Answer

The product management organizational format focuses specifically on developing and implementing a marketing program for a particular brand or product. This approach typically involves a cross-functional team dedicated to the success of that product or brand. The other options (functional, geographic, market management, customer management) do not necessarily focus specifically on one product or brand, and may involve different organizational structures or goals.

Question 18

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

Accepted Answer

Marketing control involves evaluating the results of marketing strategies and plans and taking corrective action as needed to ensure that objectives are achieved. Strategic control focuses on the overall strategy of the organization, operating control deals with day-to-day operations, and developmental control is concerned with identifying new opportunities for growth. Efficiency is a measure of how well resources are utilized to achieve a goal. Therefore, marketing control is the most appropriate answer in this context.

Question 19

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

Accepted Answer

There is a growing trend for firms to shift their focus from just managing their brand to managing their customer relationships. This involves creating a more personalized approach where businesses aim to connect with customers on a deeper level in order to build brand loyalty and trust. This shift has been driven by changes in consumer behavior and technology, as customers now have greater power to shape and influence brand reputation.

Question 20

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

Accepted Answer

Changing the action programs may be required in the marketing control process to adjust for gaps in performance and to ensure that the marketing strategy is effective. Setting long term goals, assigning profit, and defining the mission are important steps in developing a marketing plan but are not specifically related to marketing control. Discounting the causes of gaps in performance is not a required step in the marketing control process.

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