Question 1

Marketing objectives should be stated in such a way that the degree of accomplishment can be measured accurately.

Accepted Answer

Marketing objectives should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound) and measurable in order to evaluate the success or failure of the marketing campaign or strategy. Therefore, it's true that marketing objectives should be stated in such a way that the degree of accomplishment can be measured accurately.

Question 2

Each of the marketing mix elements must work together with the others.

Accepted Answer

The marketing mix elements (product, price, promotion, and place) are interdependent and should work together to achieve a successful marketing strategy. A change in one element can affect the others, so they need to be carefully coordinated.

Question 3

The Boston Consulting Group approach is based on a philosophy that a product's market growth rate and its market share relative to competition should be helpful in determining its marketing strategy.

Accepted Answer

The Boston Consulting Group approach, also known as the BCG matrix, uses the market growth rate and market share of a product to determine its marketing strategy.

Question 4

The decisions made in creating a marketing mix are only as good as the organization's understanding of the target market.

Accepted Answer

The marketing mix, which includes product, price, promotion, and place/distribution, should be tailored to the needs, wants, and behaviors of the target market. Without a deep understanding of the target market, it is difficult to make effective decisions about the marketing mix. Therefore, the decisions made in creating a marketing mix are only as good as the organization's understanding of the target market.

Question 5

A market is a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products.

Accepted Answer

This is the definition of a market.

Question 6

A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.

Accepted Answer

A strategic business unit (SBU) is essentially a self-contained business entity within a larger organization that has its own vision, mission, goals, and strategy. It is designed to be self-supporting in terms of sales, markets, production, and other resources with autonomy in decision making. Therefore, an SBU is supposed to operate as a profit center with its own revenue, expenses, profits, and losses.

Question 7

The Boston Consulting Group's model serves as a diagnostic tool to spotlight strategic business units that have an opportunity to grow rather than as a guide for making strategy prescriptions.

Accepted Answer

The Boston Consulting Group's model is primarily used to identify and prioritize strategic business units based on their growth potential, rather than to provide specific strategic recommendations.

Question 8

Question marks exist at a cost disadvantage and exhibit few opportunities for growth at a reasonable cost.

Accepted Answer

This statement is not necessarily true. The cost disadvantage and growth opportunities of question marks depend on the specific situation and industry. In some cases, there may be growth opportunities for question marks that come at a reasonable cost.

Question 9

Corporate strategy determines the means for utilizing resources in the functional areas of business to reach the organization's goals.

Accepted Answer

Corporate strategy guides the allocation of resources and helps in achieving the organization's goals in different functional areas such as marketing, finance, operations, etc.

Question 10

Corporate strategic planners focus on dimensions such as competition, diversification, differentiation, environmental focus, and interrelationships among SBUs.

Accepted Answer

Corporate strategic planners consider various dimensions when formulating strategies for the organization, including but not limited to competition, diversification, differentiation, environmental focus, and interrelationships among SBUs.

Question 11

Marketing managers can classify a firm's products into four basic types: stars, cash cows, dogs, and question marks.

Accepted Answer

This statement is true. Marketing managers often use the Boston Consulting Group (BCG) matrix to classify a firm's products into four categories based on their relative market share and market growth rate: stars, cash cows, dogs, and question marks.

Question 12

An organization's goals focus on the ends or results that the firm seeks.

Accepted Answer

An organization's goals are the ends or results that the firm seeks to achieve, so the statement is true. It is essential to have well-defined and measurable goals to ensure that an organization is moving in the right direction and achieving its vision and mission.

Question 13

A marketing objective need not be consistent with the firm's overall objectives.

Accepted Answer

A marketing objective should be consistent with the firm's overall objectives to ensure that all aspects of the business are aligned towards achieving the same goals.

Question 14

A firm's organizational mission should be derived from its goals.

Accepted Answer

A firm's goals should be derived from its organizational mission, as the mission outlines the company's purpose and direction, which then informs its specific goals and objectives.

Question 15

A sustainable competitive advantage is one that cannot be copied by a firm's competitors.

Accepted Answer

A sustainable competitive advantage is a unique advantage that allows a company to maintain its position in the market over the long term. It is based on a combination of factors, such as proprietary technology, strong brand reputation, customer loyalty, economies of scale, or access to unique resources, that are difficult to replicate by competitors. Therefore, a sustainable competitive advantage cannot be easily copied, and it provides a firm with a lasting edge over its rivals.

Question 16

Stars are profitable products that usually generate more cash than is required to maintain share.

Accepted Answer

Stars are products with high market growth and high market share, often requiring significant investment to maintain their position, and may not always generate more cash than needed.

Question 17

Cash cows are market leaders that are growing fast, with substantial reported profits.

Accepted Answer

Cash cows are actually market leaders that have a high market share in a slow-growing or mature industry. They generate a lot of profits but have low growth potential.

Question 18

The long-term health of the firm depends solely on having products that generate cash and provide acceptable reported profits.

Accepted Answer

The long-term health of a firm also depends on factors such as innovation, market adaptation, customer satisfaction, employee engagement, and sustainable practices, in addition to financial performance.

Question 19

Marketing objectives state what is to be accomplished through marketing activities.

Accepted Answer

Marketing objectives are goals that identify what a business intends to achieve through its marketing activities. They are a crucial component of a marketing plan and help guide decision-making and resource allocation.

Question 20

When properly implemented, a good marketing strategy enables a company to achieve its business-unit and corporate objectives.

Accepted Answer

A well-designed and executed marketing strategy aligns with a company's overall goals and objectives, and helps them to achieve those objectives by identifying target customers, creating compelling messaging and differentiation, and implementing tactics that effectively reach and engage those customers.

Quiz 2: Planning, Implementing, and Evaluating Marketing Strategies