Question 1

A June 1998 Congressional initiative mandated that the U.S.Department of Transportation (USDOT)establish a national traffic information collection system.The marketing manager of a company that provided traffic reports for local radio stations would most likely incorporate which aspect of this knowledge into its SWOT analysis as:
A)a strength if the company has an existing working relationship with the USDOT.
B)a weakness if the USDOT will give this information directly to the radio stations.
C)a threat if the company that provides local traffic information has no employees technologically capable of using the USDOT system.
D)a threat if the USDOT is creating a network of local traffic-information providers to address the mandate.

Accepted Answer

The company has an existing working relationship with the USDOT, which would give it an advantage in providing traffic reports to local radio stations.

Question 2

In the 1980s,poor quality and Japanese imports drove the Harley-Davidson motorcycle company to brink of bankruptcy.The company's share of the U.S.super-heavy-weight market - motorcycles with engine capacity of 850 cubic centimeters or more - collapsed from more than 40 percent in the mid-1970s to 23 percent in 1983.However,by 1989,Harley-Davidson controlled some 65 percent of the U.S.market; and both in the U.S.and overseas markets,the company won't be able to meet demand for years.From a marketing perspective,what was the likely first step in Harley-Davidson's resurgence?
A)development of a new mission statement and subsequent marketing strategy
B)repositioning their product in the minds of motorcycle buyers
C)performing a SWOT analysis
D)seeking new markets for the motorcycles both in the U.S.and in foreign markets

Accepted Answer

A SWOT analysis would have been the likely first step to identify strengths, weaknesses, opportunities, and threats, which would inform subsequent strategies for recovery.

Question 3

The components of strengths and weaknesses are often considered as which part of the situational analysis:
A)internal to the organization
B)external to the organization
C)both internal and external to the organization
D)not part of the situational analysis

Accepted Answer

Strengths and weaknesses are internal factors of an organization, as they pertain to resources, capabilities, and processes within the organization itself.

Question 4

A toothbrush manufacturer sells several lines of toothbrushes.One line is for small children,one line is for people with gum problems,and one is for people who wear dentures.This product differentiation is the result of:
A)organizational strengths.
B)market programming.
C)market segmentation.
D)distinctive competencies.

Accepted Answer

The toothbrush manufacturer has segmented the market by creating different lines of toothbrushes to cater to the specific needs of different groups of consumers. This approach of dividing the market into distinct groups based on specific characteristics or needs is known as market segmentation.

Question 5

Figure: 2-4 
-SBUs found in quadrant "B" (Figure 2-4)would be called
A)stars.
B)question marks.
C)cash cows.
D)dogs.

Accepted Answer

The quadrant "B" in Figure 2-4 represents products or SBUs that have high market growth rate but low relative market share. These products are called "question marks" or "problem children" as they require significant investment to grow but have uncertain market potential.

Question 6

Figure: 2-4 
-SBUs found in quadrant "A" (Figure 2-4)would be called
A)stars.
B)question marks.
C)cash cows.
D)dogs.

Accepted Answer

SBUs found in quadrant "A" (Figure 2-4) would be called stars because they have high market share and high market growth.

Question 7

A television production company was looking for an idea for a new show and approached Emeril Lagasse,a charismatic chef that frequently appears on the Food Channel.It was decided the production company would build a show based around Lagasse's life.While the casting of the popular Lagasse insured people would watch the first couple shows,poor scripts led to the cancellation of the show.In terms of the SWOT analysis,the casting of Lagasse was a ______,and the poor scripts were a ______.
A)strength; weakness
B)weakness; threat
C)threat; opportunity
D)opportunity; threat

Accepted Answer

The casting of Lagasse was a strength, as it brought in viewers and created interest in the show. The poor scripts were a weakness, as they detracted from the overall quality of the show and led to its cancellation. Therefore, the best option is A.

Question 8

Having a high-definition (HD)screen on a computer tablet,when all competitive substitutes do not,is considered a:
A)consumer standards.
B)perceptual segments
C)marketing armaments.
D)point of difference.

Accepted Answer

Having a high-definition (HD) screen on a computer tablet when all competitive substitutes do not, is a point of difference. It is a unique selling proposition that sets the product apart from its competitors.

Question 9

Ford Motor Company of Canada lumps together prospective buyers that share common needs for purchasing a new vehicle.What is Ford engaged in:
A)aggregation marketing
B)market segmentation
C)market clustering
D)profiling

Accepted Answer

Ford Motor Company of Canada is engaged in market segmentation, which involves dividing a larger market into smaller segments of customers with specific needs and characteristics, and targeting them with products and marketing messages that are tailored to their needs. By lumping together prospective buyers that share common needs, Ford is identifying a specific segment of the market that it can focus on serving. This can help the company better understand and meet the needs of these customers, increase customer satisfaction and loyalty, and ultimately drive sales growth.

Question 10

Taking stock of where an organization has been recently,where it is now,and where it is headed in light of the organization's plans and the external factors and trends affecting it is called the:
A)systems analysis.
B)strategic market planning.
C)goal setting.
D)situation analysis.

Accepted Answer

The activity described in the question is known as a situation analysis, which involves assessing the organization's recent past, current state, and future plans in light of internal and external factors. Systems analysis refers to the study of an organization's information systems, while strategic market planning involves developing marketing strategies based on research and analysis. Goal setting focuses on defining specific objectives for the organization to achieve.

Question 11

Myers Apple Farm discovers the trend that consumers are more focused about buying locally produced and heirloom varieties of apples.Which aspect of the situational analysis is this considered:
A)SWOT analysis.
B)opportunity
C)strength
D)market trend

Accepted Answer

The answer of Myers Apple Farm discovers the trend that...

Question 12

Goal setting as used in the text requires that the marketing manager set measurable _____ to be achieved.
A)financial limits
B)marketing objectives
C)quality standards
D)production quotas

Accepted Answer

Goal setting in marketing requires the marketing manager to set measurable marketing objectives that can be achieved. Financial limits, quality standards, and production quotas may be components of the marketing plan, but they are not the primary focus of goal setting.

Question 13

The terrorists' attack on the World Trade Center and the Pentagon led to many changes in the way people conducted their everyday lives.One outgrowth of this attack was a need to reconnect with old friends through the sending of greeting cards.American Greetings announced a significant increase in sales that it directly relates to events on September 11.For American Greetings the terrorists' attacks was an example of a(n):
A)strength.
B)weakness.
C)threat.
D)opportunity.

Accepted Answer

The events on September 11 created a need for people to feel more connected and to express their feelings and sympathy towards others. American Greetings was able to recognize this need and capitalize on it, resulting in increased sales. Therefore, this event can be seen as an opportunity for American Greetings to fulfill a new demand in the market.

Question 14

Figure: 2-4 
-SBUs found in quadrant "C" (Figure 2-4)would be called
A)stars.
B)question marks.
C)cash cows.
D)dogs.

Accepted Answer

SBUs in quadrant "C" are called cash cows, which are characterized by high market share in a low-growth market.

Question 15

In the early months of 2002,strikes throughout Nigeria almost led to the country's financial ruin.For a company trying to do business in Nigeria during those months,the strikes would be an example of a(n):
A)strength.
B)weakness.
C)threat.
D)opportunity.

Accepted Answer

The strikes throughout Nigeria represent a threat to any company trying to do business in the country because they could negatively impact the company's ability to operate and make a profit. A threat refers to any external factor that could potentially harm the company's performance, and in this case, the strikes represent such a threat.

Question 16

The goal of a SWOT analysis is to:
A)identify those critical factors that can have a major effect on the firm.
B)keep top management placated.
C)discover areas for diversified investment outside the firm's marketing areas.
D)develop new products for new market segments.

Accepted Answer

The goal of a SWOT analysis is to identify the strengths, weaknesses, opportunities, and threats of a firm or a business. By analyzing these critical factors, the SWOT analysis helps the management to make informed decisions about the future direction of the business, identify areas for improvement, and develop successful strategies to achieve the desired goals.

Question 17

Categorizing a group of consumers for soda on the basis of whether they wanted sugar-free and caffeine-free,caffeine-free but with sugar,or regular with sugar and caffeine is an example of:
A)Aggregation marketing
B)Market segmentation
C)Market clustering
D)Profiling

Accepted Answer

Market segmentation involves dividing the target market into smaller groups with similar needs or characteristics. Categorizing consumers based on their preferences for soda with or without sugar and caffeine free or regular with sugar and caffeine is an example of market segmentation.

Question 18

Figure: 2-4 
-SBUs found in quadrant "D" (Figure 2-4)would be called
A)stars.
B)question marks.
C)cash cows.
D)dogs.

Accepted Answer

The quadrant "D" represents products or SBUs that have low market share and low market growth. These are the products or SBUs that are not generating enough profits and may require significant investments to keep them afloat. They are commonly referred to as dogs.

Question 19

There are many perfumes on the market,but only one that breaks down fragrances into elements so people can wear the particular scents with which they have emotional ties.The perfume's manufacturer is Demeter,and it makes over 150 different fragrances with names like Dirt,Lobster,Dandelion,Sugar Cookie,Brownie,Woodsmoke,Leather,and Turpentine.According to people who use Demeter perfume,its memorable scents would be what makes it superior to other perfumes.This is an example of:
A)consumer standards.
B)perceptual segments
C)marketing armaments.
D)points of difference.

Accepted Answer

Demeter's unique approach of offering fragrances that evoke specific memories or emotions differentiates it from other perfumes, highlighting its points of difference.

Question 20

Situation analysis requires a firm to consider both internal and external factors.Which of the following is NOT an example of an external factor?
A)competitive
B)technological
C)consumer demand
D)departmental objectives

Accepted Answer

Departmental objectives are internal factors that are within the control of the firm. External factors are those that the firm has no control over such as competitive, technological and consumer demand factors.

Quiz 2: Developing Successful Marketing Strategies

The components of strengths and weaknesses are often considered as which part of the situational analysis:

A toothbrush manufacturer sells several lines of toothbrushes.One line is for small children,one line is for people with gum problems,and one is for people who wear dentures.This product differentiation is the result of:

Figure: 2-4 -SBUs found in quadrant "B" (Figure 2-4) would be called

Figure: 2-4 -SBUs found in quadrant "A" (Figure 2-4) would be called

Having a high-definition (HD) screen on a computer tablet,when all competitive substitutes do not,is considered a:

Ford Motor Company of Canada lumps together prospective buyers that share common needs for purchasing a new vehicle.What is Ford engaged in:

Taking stock of where an organization has been recently,where it is now,and where it is headed in light of the organization's plans and the external factors and trends affecting it is called the:

Myers Apple Farm discovers the trend that consumers are more focused about buying locally produced and heirloom varieties of apples.Which aspect of the situational analysis is this considered:

Goal setting as used in the text requires that the marketing manager set measurable _____ to be achieved.

Figure: 2-4 -SBUs found in quadrant "C" (Figure 2-4) would be called

In the early months of 2002,strikes throughout Nigeria almost led to the country's financial ruin.For a company trying to do business in Nigeria during those months,the strikes would be an example of a(n) :

The goal of a SWOT analysis is to:

Categorizing a group of consumers for soda on the basis of whether they wanted sugar-free and caffeine-free,caffeine-free but with sugar,or regular with sugar and caffeine is an example of:

Figure: 2-4 -SBUs found in quadrant "D" (Figure 2-4) would be called

Situation analysis requires a firm to consider both internal and external factors.Which of the following is NOT an example of an external factor?