Chapter 02
Developing Successful Organizational and Marketing Strategies
Multiple Choice Questions
1. | Ben & Jerry's mission to make the world a better place is linked to various organizational and marketing strategies, one of which is
A. | supporting farmers who agree to use sustainable farming practices, implementing fair working standards, and investing in local communities. |
B. | the intent of making modest profits without sacrificing high product quality standards. |
C. | ingredients that are all completely organic and are available only in Vermont to ensure freshness and contribute to the local economy. |
D. | a commitment to donating a percentage of profits to Teach for America. |
E. | ingredients that come exclusively from developed countries promoting Fair Trade practices. |
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2. | Ben & Jerry's mission-driven approach led the company to successfully implement many highly creative organizational and marketing strategies. One example includes
A. | ISO 9000, promoting the quality concept through its commitment to making the finest ice cream from the best ingredients. |
B. | "linked prosperity," which encouraged the success of all constituents including employees. |
C. | Regeneration Nation, generating enough revenue for the firm to be a completely nonprofit organization. |
D. | Give and Go, donating 10 percent of its net profits to local charitable causes and an additional 5 percent to support producers that practice sustainable farming. |
E. | PartnerShops, Ben & Jerry scoop shops that are independently owned and operated by community-based nonprofit organizations. |
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3. | Ben & Jerry's has earned B-Corp certification from B-Lab, which means it has
A. | reached the goal of generating enough revenue to be a completely nonprofit organization. |
B. | a sustainable financial basis of profitable growth, increasing value for stakeholders and expanding opportunities for development and career growth for employees. |
C. | the goal of making profits for selected charitable organizations such as Fair Trade. |
D. | been recognized for its efforts to use the power of business to solve social and environmental problems. |
E. | been instrumental in expanding into international markets by creating dairies for developing nations. |
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4. | Which of the following statements regarding Ben & Jerry's is most accurate?
A. | Ben & Jerry's is owned by Unilever, the market leader in the global ice cream industry. |
B. | Ben & Jerry's is a privately owned ice cream producer. |
C. | Ben & Jerry's prides itself on offering more ice cream flavors than its competitors. |
D. | Ben and Jerry are not real people; the names were a clever reference to Tom and Jerry cartoon characters in order to capitalize on childhood nostalgia. |
E. | Ben & Jerry's has only been in business for 20 years and is already the industry leader in premium ice cream. |
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5. | A(n) __________ is a legal entity that consists of people who share a common mission.
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6. | In marketing, an organization refers to
A. | a legal entity that consists of people who share a common mission. |
B. | a group of people united through contractual or corporate ownership. |
C. | a legal entity engaged in business activities solely with the intent of making a profit. |
D. | a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit. |
E. | a privately owned entity that serves its customers to earn a profit so that it can survive. |
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7. | A(n) __________ is a good, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants.
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8. | In marketing, an offering refers to
A. | the formal designation of a publicly traded stock for a specific product, service, or idea. |
B. | a form of currency used by buyer and seller to minimize the tax burden for both parties. |
C. | a good, service, or idea that creates value for both the organization and its customers by satisfying their needs and wants. |
D. | the manufacturer's suggested retail price of a product or service to the general public or the wholesale price to distributors and retailers. |
E. | the service suppliers and distributors provide to help manufacturers bring a product to market. |
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9. | Today's organizations can be divided into three groups, which are __________ organizations.
A. | company, nonprofit, and cooperative |
B. | corporation, employee-owned, and interest |
C. | for-profit, nonprofit, and governmental |
D. | employee, distributor, and customer |
E. | public, private, and international |
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10. | A(n) __________ is a privately owned organization that serves its customers to earn a profit so that it can survive.
B. | for-profit organization |
D. | nonprofit organization |
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11. | A for-profit organization refers to
A. | a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers. |
B. | a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit. |
C. | a privately owned organization that serves its customers to earn a profit so that it can survive. |
D. | a group of people united through contractual or corporate ownership. |
E. | a publicly owned organization that serves the general population. |
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12. | __________ the reward to a business firm for the risk it undertakes in marketing its offerings.
A. | Shareholders' equity is |
D. | Contribution margin is |
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13. | Profit refers to
A. | the point at which a company's assets equal its liabilities plus shareholder equity. |
B. | the difference between the list and final price of a product or service. |
C. | the money earned when the economic order quantity is minimized. |
D. | the money left over after a business firm's total expenses are subtracted from its total revenues. |
E. | the total amount of revenue accrued through product sales or service distribution. |
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14. | A nonprofit organization is
A. | a nongovernmental organization that serves its customers but does not have profit as an organizational goal. |
B. | a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit. |
C. | a publicly owned organization that serves the general population. |
D. | a group of people united through contractual or corporate ownership. |
E. | a privately owned organization that serves its customers to earn a profit so that it can survive. |
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15. | A __________ is a nongovernmental organization that serves its customers but does not have profit as an organizational goal.
B. | subchapter S corporation |
E. | nonprofit organization |
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16. | A __________ is a federal, state, county, or city unit that provides a specific service to its constituents.
B. | subchapter S corporation |
E. | nonprofit organization |
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17. | Social entrepreneurs who start new ventures such as Teach for America and SIRUM are usually structured as __________ rather than business firms.
B. | nonprofit organizations |
E. | social service agencies |
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18. | Which statement best describes the most significant difference between a for-profit organization or a business firm and a nonprofit organization?
A. | Business firms operate with larger budgets than nonprofits. |
B. | Nonprofit organizations do not carry on economic activities while business firms do. |
C. | Nonprofit organizations are concerned with social issues and business firms are not. |
D. | Both serve customers, but business firms seek a profit while nonprofit organizations do not. |
E. | Nonprofit organizations are publicly owned and business firms are privately owned. |
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19. | An example of a nonprofit organization is
A. | the Food and Drug Administration. |
C. | the medical technology company Medtronic, Inc. |
D. | the pharmaceutical company Pfizer, Inc. |
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20. | Cree markets LED (light-emitting diode) bulbs that replace the traditional incandescent bulb. The Cree LED 60w bulb consumes 85 percent less energy and lasts for 25,000 hours. Cree is an example of
C. | a nonprofit organization. |
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21. | Cree markets LED (light-emitting diode) bulbs that replace the traditional incandescent bulb. Cree's bulb is more energy efficient and lasts much longer than traditional incandescent bulbs, and thus is more environmentally friendly. Cree is an example of
C. | a nonprofit organization. |
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22. | __________ starts new ventures that address important social needs and issues. These new enterprises are often organized as nonprofit organizations.
C. | Sustainable development |
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23. | Social entrepreneurs' ventures are usually structured as
B. | subchapter S corporations. |
C. | nonprofit organizations. |
D. | governmental agencies. |
E. | 501(c)(3) for-profit organizations. |
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24. | Teach for America works to solve which societal problem?
A. | It provides new college graduates as teachers in urban and rural public schools in the United States. |
B. | It works to end corneal blindness worldwide by finding cornea donors and creating tissue banks. |
C. | It provides education and small business loans to women in impoverished areas so that they can help themselves. |
D. | It offers free rehabilitation services for injured U.S. veterans returning from overseas conflict. |
E. | It offers tax credits to small businesses to employ at-risk youth in their communities. |
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25. | Teach for America is an example of
A. | an entrepreneurial business firm. |
B. | a subchapter S corporation. |
C. | a creative nonprofit organization. |
D. | a public value agency. |
E. | a 501(c)(3) for-profit organization. |
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26. | According to the textbook, the terms firm, company, and organization
A. | refer to for-profits, nonprofits, and government agencies, respectively. |
B. | refer to nonprofits, government agencies, and for-profits, respectively. |
C. | refer to government agencies, for-profits, and nonprofits, respectively. |
D. | refer to for-profits, government agencies, and nonprofits, respectively. |
E. | can be used interchangeably to cover both profit and nonprofit organizations. |
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27. | Organizations that develop similar offerings, when grouped together, create
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28. | An industry refers to
A. | organizations that develop similar offerings. |
B. | organizations that manufacture identical products to meet ISO 9000 specifications. |
C. | companies that are active in the production of materials used in finished products. |
D. | a group of people or firms united through strategic alliances. |
E. | the economic activity concerned with the selling of finished products to wholesalers and retailers. |
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29. | Which of the following is not an example of an industry?
B. | the automobile industry |
C. | the landscaping industry |
D. | the government industry |
E. | the television programming industry |
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30. | The term used to identify an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals is referred to as a
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31. | Strategy refers to
A. | an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals. |
B. | an organization's corporate tactical or action plan. |
C. | statement of an accomplishment of a task to be achieved by a certain time. |
D. | a statement of the organization's function in society, often identifying its customers, markets, product, and technologies. |
E. | a road map for the entire organization for a specified future period of time, such as one or five years. |
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32. | Which of the following statements about strategy is most accurate?
A. | An organization can be all things to all people because it has access to all the resources it needs to discover and satisfy the needs and wants of its target markets. |
B. | The marketing department helps to both set an organization's direction and move it there. |
C. | The American Marketing Association (AMA) recently has established the definition of strategy. |
D. | Strategy is an organization's short-term course of action designed to deliver a specific customer experience while achieving its internal standards. |
E. | Only start-up organizations must develop strategies to help them raise capital as well as focus and direct their efforts to accomplish their goals. |
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33. | Large organizations are extremely complex, and usually consist of __________ organizational levels whose strategies are linked to marketing.
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34. | A board of directors of an organization
A. | represents the functional level. |
B. | oversees the three levels of strategy. |
C. | represents the corporate level. |
E. | represents the strategic business unit level. |
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35. | The corporate level of an organization is the
B. | proxy for the board of directors. |
C. | level where top management directs overall strategy. |
D. | most important level of the business. |
E. | strategic business unit level. |
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36. | The CEO of an organization
A. | is usually at the strategic business unit level. |
B. | is usually a member of the board of directors. |
C. | outranks the corporate level. |
D. | does not oversee the daily operations. |
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37. | The specialists within an organization who actually create value are usually a member of the
A. | strategic business unit level. |
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38. | The key role of marketing includes
A. | supporting the board of directors. |
B. | operating at the corporate level. |
C. | looking outward by listening to customers. |
E. | delivering strategic business decisions. |
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39. | The level in an organization where top management directs overall strategy for the entire organization is referred to as the
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40. | The corporate level refers to the level in an organization where top management
A. | develops marketing strategies and tactics for the marketing department to implement. |
B. | directs overall strategy for the entire organization. |
C. | executes all marketing program actions to ensure consistency of performance. |
D. | develops overall sales projections not only for the short term but also for a period of at least two to five years. |
E. | supervises the hiring, firing, and training of all marketing department personnel. |
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41. | The corporate level in an organization is where
A. | the department heads direct overall strategy for the entire organization. |
B. | groups of specialists actually create value for the organization. |
C. | a small number of people from different departments are mutually accountable to accomplish a task or a common set of performance goals. |
D. | a subsidiary, division, or unit of an organization markets a set of related offerings to a clearly defined group of customers. |
E. | top management directs overall strategy for the entire organization. |
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42. | The highest-ranking person in an organization who oversees the organization's daily operations and spearheads its strategy planning efforts is often referred to as
A. | the corporate executive overseer. |
B. | the chief executive officer. |
C. | the corporate executive official. |
D. | the chief marketing officer. |
E. | the coordinating executive official. |
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43. | __________ have an increasingly important role in top management because of their ability to think strategically, bringing with them to the job multi-industry backgrounds, cross-functional management expertise, analytical skills, and intuitive marketing insights.
A. | Chief marketing officers (CMOs) |
B. | Chief financial officers (CFOs) |
C. | Chief executive officers (CEOs) |
D. | Chief human resource officers (CHROs) |
E. | Chief operating officers (COOs) |
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44. | The CEO of SAP, which sells expensive enterprise resource planning software to large and mid-sized companies, operates at the __________ level of his organization.
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45. | Overseeing strategic marketing efforts at the corporate level would most likely be the responsibility of the
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46. | In recent years, many large firms have changed the title of the head of marketing from vice president of marketing to
A. | chief executive officer. |
B. | corporate marketing official. |
C. | coordinating marketing officer. |
D. | chief marketing officer. |
E. | corporate marketing executive. |
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47. | A strategic business unit (SBU) refers to
A. | a single product or service identification code used to identify items for strategic marketing planning purposes. |
B. | a small number of people from different departments in an organization who are mutually accountable to accomplish a task or common set of performance goals. |
C. | a strategic product that has a unique brand, size, or price. |
D. | a privately owned franchise under the auspices of a larger group or organization bearing the same name. |
E. | a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers. |
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48. | A subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers is referred to as a
A. | strategic business unit. |
B. | strategic industry level. |
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49. | The level at which managers set a more specific strategic direction for their businesses to exploit value-creating opportunities is referred to as the
A. | marketing department level. |
B. | strategic business unit level. |
E. | board of directors level. |
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50. | The strategic business unit level
A. | works most directly with the organization's target customers. |
B. | directs the overall strategy for the organization. |
C. | is most likely to change substantially over time. |
D. | provides more end-user analysis in order to design more customer-directed products. |
E. | is the level at which managers set a more specific strategic direction for their businesses to exploit value-creating opportunities. |
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51. | Which of the following statements regarding an organization's strategic business unit level is most accurate?
A. | The strategic business unit level is the level that works most directly with an organization's targeted customers. |
B. | The overall strategy for the organization is directed at the strategic business unit level. |
C. | In the most complex organizations, the corporate level and the strategic business unit level may merge. |
D. | More end-user analysis is provided at the strategic business unit level than at the functional level. |
E. | The strategic direction is more specific at the strategic business unit level than at the corporate level. |
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52. | Each strategic business unit has marketing and other specialized activities (e.g., finance, manufacturing, or research and development) at the __________ level, where groups of specialists actually create value for the organization.
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53. | The functional level in an organization is where
A. | groups of specialists actually create value for the organization. |
B. | employees perform assigned tasks without actually having input into the decision making process. |
C. | all financial outlays are made. |
D. | all company hiring and firing occurs. |
E. | the strategic planners in SBUs make all decisions regarding which product benefits will be promoted during a promotional campaign. |
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54. | People in the finance and the human resources departments traditionally operate at what organizational level?
C. | strategic business unit level |
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55. | At the functional level, the organization's strategic direction becomes
A. | much more manageable since its offerings have been finalized. |
B. | the most specific and most focused in terms of implementing the company's goals. |
C. | broader since for less complex firms, the corporate and functional levels may merge. |
D. | more general to avoid the "not invented here syndrome" that could result in missed opportunities. |
E. | the sole responsibility of the CEO. |
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56. | Which of the following statements would most likely be heard at the functional level of an organization?
A. | "We need to divest our Canadian operations that are performing poorly." |
B. | "How large a budget can we allot to the marketing department?" |
C. | "We plan to implement a Facebook advertising initiative within 90 days." |
D. | "We should hire the most culturally diverse cross-functional team possible in order to generate the best new-product ideas." |
E. | "What dividends should we pay stockholders next quarter?" |
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57. | Specialized functions such as marketing and finance are generally referred to as
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58. | At the functional level, the marketing department
A. | solicits talent from all levels of the organization for strategic corporate planning sessions. |
B. | promotes its goals to the organization's stakeholders. |
C. | looks outward, in part by listening to customers. |
D. | develops the corporate culture. |
E. | defines the overall strategic direction of the organization. |
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59. | A key role of the marketing department is to "look outward." This is accomplished by
A. | allocating financial resources across strategic business units. |
B. | communicating the vision of the marketing department forcefully enough to be incorporated into the overall mission of the company. |
C. | forming cross-functional teams to help solve the organization's marketing problems. |
D. | implementing new accounting methods passed by Congress. |
E. | listening to customers, developing and producing offerings, and implementing marketing program activities. |
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60. | Groups of a small number of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals are referred to as
B. | strategic business units. |
C. | cross-functional teams. |
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61. | Cross-functional teams refer to
A. | members of an organization who have been trained in multiple disciplines so they can easily move from one job to another as needed. |
B. | situations where two departments within the same company have opposing views about how a product should be developed and managed. |
C. | departments within an organization that carryout multiple functions due to financial constraints within the company. |
D. | a small number of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals. |
E. | departments within an organization that manage the same product with distinctly different marketing programs to reach different target markets. |
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62. | When developing marketing programs for new offerings, marketing may provide staff to serve as part of __________, which consists of a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals.
A. | a cross-functional team |
C. | a strategic business unit |
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63. | On the northern tip of Goose Island in the Chicago River sits the William Wrigley Jr. Company's Global Innovation Center. Here, Wrigley creates new products using a joint effort by some 250 full-time food scientists, researchers, and marketers. The people who work in this center are most likely members of
B. | a business consortium. |
C. | a multiple strategic directional team. |
D. | a strategic evaluation team. |
E. | a cross-functional team. |
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64. | IBM regularly creates what it calls global action teams, which take people from functional groups and bring them together to work on large client projects. These global action teams are a type of
E. | cross-functional team. |
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65. | Successful organizations must be visionary, which includes the ability to
A. | develop strategies based on those that were successful in the past. |
B. | be backward-looking, examining the past carefully to learn from mistakes. |
C. | anticipate future events and respond quickly and effectively. |
D. | hire the most culturally diverse team possible in order to generate the best new ideas. |
E. | involve all stakeholders of the organization when defining its business mission. |
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66. | In general, a visionary organization asks which three types of questions to specify its foundation, set a direction, and formulate strategies?
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67. | Today's visionary organization uses three key elements to __________, set a direction, and formulate strategies.
B. | specify its foundation |
C. | establish detailed marketing tactics |
D. | assign job responsibilities |
E. | establish an organizational chart |
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68. | Today's visionary organization uses three key elements to specify its foundation, __________, and formulate strategies.
B. | establish detailed marketing tactics |
C. | assign job responsibilities |
E. | establish an organizational chart |
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69. | Today's visionary organization uses three key elements to specify its foundation, set a direction, and
B. | assign job responsibilities. |
D. | establish production parameters. |
E. | establish detailed marketing tactics. |
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70. | The ________ represent(s) the "why" element of a visionary organization.
A. | organizational foundation |
B. | organizational tactics |
C. | organizational mission |
D. | organizational direction |
E. | organizational strategies |
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71. | The _________________ represent(s) the "what" element of a visionary organization.
A. | organizational tactics |
B. | organizational mission |
C. | organizational foundation |
D. | organizational direction |
E. | organizational strategies |
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72. | The __________ represent(s) the "how" element of a visionary organization.
A. | organizational tactics |
B. | organizational mission |
C. | organizational foundation |
D. | organizational direction |
E. | organizational strategies |
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73. | The philosophical reason for an organization's existence is referred to as its organizational
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74. | An organization's foundation can be broken into three key elements:
A. | products, services, and ideas. |
B. | business definition, long-term goals, and short-term objectives. |
C. | board of directors, top management, and stakeholders. |
D. | corporate-level strategies, SBU-level strategies, and functional-level strategies. |
E. | core values, mission/vision, and organizational culture. |
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75. | Which of the following statements regarding organizational foundation is most accurate?
A. | An organizational foundation specifies its goals. |
B. | An organizational foundation defines the business that it is in. |
C. | An organization's foundation empowers stakeholders to have a voice in the strategic marketing process. |
D. | An organization's foundation is its philosophical reason for being—why it exists. |
E. | An organization's foundation is the company, its product, and its customers. |
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76. | An organization's foundation includes all of the following except
A. | organizational culture. |
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77. | An organization's foundation includes which of the following?
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78. | An organization's __________ are the fundamental, passionate, and enduring principles that guide its conduct over time.
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79. | Core values refer to
A. | the cultural ethos of an organization. |
B. | proprietary values of a firm. |
C. | written mission statements that express an organization's goals and objectives. |
D. | the personal moral and ethical codes of a firm's stakeholders. |
E. | the fundamental, passionate, and enduring principles that guide an organization's conduct over time. |
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80. | A firm's __________ are timeless, capturing its heart and soul, and serve to inspire and motivate its stakeholders.
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81. | An organization's core values are most effective when communicated to and supported by
B. | top management and employees. |
E. | government regulators. |
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82. | Which of the following statements regarding an organization's core values is most accurate?
A. | Core values are developed by cross-functional teams for all levels of an organization. |
B. | Core values are important to the founders but rarely motivate a firm's stakeholders. |
C. | Core values change as an organization's offerings change. |
D. | Core values guide the organization's conduct. |
E. | Core values cannot be separated from the financial realities of an organization. |
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83. | According to Mark Zuckerberg, founder and CEO of Facebook, "We have a saying: ‘Move fast and break things.' The idea is that if you never break anything, you're probably not moving fast enough." Moving fast to build more things and learn faster is one of Facebook's
A. | sustainability doctrines. |
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84. | The Ben & Jerry's website states: "Central to the mission of Ben & Jerry's is the belief that all three parts [product mission, economic mission, social mission] must thrive equally in a manner that commands deep respect for individuals in and outside the company and supports the communities of which they are a part." This statement reflects Ben & Jerry's
A. | sustainability doctrine. |
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85. | An organization's employees, shareholders, board of directors, suppliers, distributors, creditors, unions, government, local communities, and customers are referred to as its
E. | organizational society. |
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86. | All of the following are examples of stakeholders except
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87. | Which of the following statements regarding stakeholders is most accurate?
A. | Employees are typically not classified as a stakeholder group because they are internal to the organization. |
B. | There are only three types of stakeholders: customers, suppliers, and distributors. |
C. | All stakeholders are external to the organization. |
D. | Stakeholders are a varied group; all are in some way affected by how well a company performs. |
E. | Stakeholders are only those that have an ownership stake in an organization. |
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88. | By understanding its core values, an organization can take steps to define its __________, a statement of the organization's function in society that identifies its customers, markets, products, and technologies.
A. | customer value proposition |
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89. | An organization's mission refers to
A. | the target goal it sets for current profits based on enacting a comprehensive strategic plan. |
B. | the target objective it projects for future market share based on enacting a comprehensive strategic plan. |
C. | the fundamental, passionate, and enduring principles that guide its conduct over time. |
D. | specific strategies and tactics that will be used to counteract any competitor's advantages. |
E. | a statement of the organization's functions in society that identifies its customers, markets, products, and technologies. |
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90. | The terms __________ and a mission statement are often used interchangeably.
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91. | Often used interchangeably with the term vision, a __________ frequently has a meaningful theme and a long-term orientation.
D. | customer value proposition |
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92. | A mission statement should be all of these except
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93. | A mission statement should be
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94. | A mission statement should be
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95. | The __________ for the American Red Cross is "to prevent and alleviate human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors."
A. | core benefit proposition |
C. | sustainability doctrine |
E. | customer value proposition |
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96. | The __________ for Facebook is "To give people the power to share and make the world more open and connected."
A. | sustainability doctrine |
B. | core benefit proposition |
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97. | "HowAboutWe is the fastest, easiest, most fun way to go on awesome dates" is the __________ for the online dating service that focuses on setting up actual activities as dates for its users.
A. | sustainability doctrine |
B. | core benefit proposition |
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98. | Recently, many organizations have added __________ to their mission statements.
B. | a social element to reflect an ideal that is morally right and worthwhile |
C. | an economic element to promote profit maximization |
D. | an expanded definition of stakeholders to include its competitors |
E. | their level of pricing and product quality |
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99. | A set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization is referred to as its
B. | core value proposition. |
C. | organizational culture. |
E. | core benefit proposition. |
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100. | Organizational culture refers to
A. | the personal moral and ethical codes of ethics of an organization's top management. |
B. | a written statement expressing an organization's goals and objectives to be achieved through enacting a comprehensive strategic plan. |
C. | the fundamental, passionate, and enduring principles that guide an organization's conduct over time. |
D. | the ethos of an organization that excludes its core values. |
E. | a set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization. |
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101. | Which of the following statements regarding organizational culture is most accurate?
A. | Organizational culture exists only at the corporate level of an organization. |
B. | Organizational culture involves communicating and connecting with all of the firm's stakeholders. |
C. | Organizational culture is best used only at the functional level for the most effective results. |
D. | Organizational culture cannot be learned or taught. |
E. | Organizational culture is a statement of the organization's function in society. |
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102. | George Zimmer, the former CEO of Men's Wearhouse, was known to the public as the bearded company pitchman who sells suits and sport coats on TV declaring, "You'll like the way you look. I guarantee it!" He also said that to be successful, "You've got to have a company that starts with trust and fairness." Zimmer was attempting to establish ___________ for Men's Wearhouse.
E. | an organizational culture |
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103. | Recently, St. Joseph Hospital was named one of the "Best Places to Work in Indiana" for the sixth consecutive year. The hospital touts universal values to "keep health care human" and employees consistently put patients first, which unites them in a common goal. Hospital President Kathy Young believes that St. Joseph's __________ makes both her employees and patients happier in her hospital.
C. | organizational culture |
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104. | The organizational __________ answers the question, "What will we do?"
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105. | In the context of organizational direction, the term business refers to
A. | the daily operational decisions that must be implemented for an organization to remain viable. |
B. | exchange transactions between seller and buyer in order for the seller to make sales and earn profits. |
C. | the clear, broad, underlying industry or market sector of an organization's offering. |
D. | an organization that develops an offering. |
E. | the objectives of a firm and the strategies and tactics that will allow it to achieve them. |
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106. | The clear, broad, underlying industry or market sector of an organization's offerings is referred to as its
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107. | __________ argued that senior managers of 20th century American railroads defined their business too narrowly, thus failing to create strategies to compete with airlines, barges, pipelines, and trucks.
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108. | In terms of an organization's business, railroads lost market share in the 20th century because they
A. | had less flexible routes than trucking. |
B. | defined their business too narrowly. |
C. | tried to create a business that appealed equally to all people. |
D. | priced their services too high. |
E. | were simply an outmoded form of transportation. |
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109. | In the 20th century, managers of railroads let airlines, barges, pipelines, and trucks take business away from them because their strategies were developed only for the railroad business, rather than a broader definition of the __________ business.
B. | transcontinental shipping |
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110. | The strategies an organization develops to provide value to the customers it serves is called
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111. | A business model
A. | is a road map for the marketing activities of an organization for a specified future time period. |
B. | consists of the strategies an organization develops to provide value to the customers it serves. |
C. | is a measure of the quantitative value or trend of a marketing activity or result. |
D. | consists of the detailed day-to-day operational decisions for an organization. |
E. | is the means by which organizational goals are to be measured and documented. |
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112. | Many local and national chain bookstores, such as Borders and Bookstar, have closed over the past few years. This is due in part to competition from e-book readers such as Amazon's Kindle and Apple's iPad, which permit the online purchase and download of digital books from their websites. Moreover, subscribers to newspapers and magazines have cancelled their print subscriptions in favor of online news. These trends have caused the StarTribune newspaper to offer online content for $1.99 per week and Newsweek to suspend its print edition in favor of an online only weekly edition. These companies had to change their __________, an action triggered by the technological and social changes in their marketing environments.
A. | organizational cultures |
D. | strategic marketing processes |
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113. | Statements of an accomplishment of a task to be achieved, often by a specific time are referred to as
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114. | Objectives refer to
A. | the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program designed to reach it. |
B. | criteria or standards used in evaluating proposed solutions to a marketing problem. |
C. | statements of an accomplishment of a task to be achieved, often by a specific time. |
D. | a road map for the marketing activities of an organization for a specified future time period, such as one year or five years. |
E. | the detailed day-to-day operational decisions essential to the overall success of marketing strategies. |
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115. | __________ convert an organization's mission and business into long- and short-term performance targets.
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116. | Regarding goals and objectives, which of the following statements would be most accurate?
A. | Objectives convert an organization's mission and business into long- and short-term performance targets. |
B. | Goals and objectives are actually the detailed day-to-day activities necessary to implement a marketing program. |
C. | A company's goals and objectives are often worthy in intent, but unrealistic in practice because they are never accomplished during the specified time period. |
D. | Goal-setting only applies to business firms; nonprofit organizations typically do not set goals because they don't earn a profit. |
E. | The terms goal and objective should not be used interchangeably. Goals are philosophical while objectives are performance-based. |
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117. | Most firms seek to maximize their long-run __________, achieving as high a financial return on their investments as possible.
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118. | A new company projects that its sales will exceed its expenses within the first year of operation. This is an example of which type of goal?
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119. | Seeking to obtain as high a financial return on their investments (ROI) as possible, firms will often set __________ goals.
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120. | If profits are acceptable, a firm that has set sales as its goal may elect to __________, even though profits may not be maximized.
A. | advertise more frequently |
B. | reduce its sales force |
C. | maintain or increase its sales |
D. | decrease its sustainability efforts |
E. | maximize customer satisfaction |
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121. | A small-business owner was preparing her staff for the upcoming holiday season. Her women's apparel retail store had a great year—sales and profits were up 20 percent. In a meeting with her sales staff before opening the store on Black Friday, the day after Thanksgiving, she said, "We want to move as much inventory as possible. Not only can we highlight our holiday items, why don't we also mark down some of our other seasonal items while people are in a shopping mood?" From this statement, she is concerned with a __________ goal.
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122. | Ben & Jerry's uses two marketing metrics to assess how it is doing in the super premium ice cream market, dollar __________ and dollar market share.
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123. | Market share refers to
A. | the ratio of the profit of the firm to the total profits of all firms in the industry, excluding the firm itself. |
B. | the ratio of the profit of the firm to the total profits of all firms in the industry, including the firm itself. |
C. | the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, excluding the firm itself. |
D. | the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. |
E. | the ratio of the profits of all firms in an industry to the profits of the firm. |
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124. | The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself, is referred to as
A. | a sales proportionality. |
C. | an industry potential. |
D. | a contribution margin. |
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125. | Market share is the ratio of sales revenue of the firm to the total sales revenue of all __________, including the firm itself.
B. | firms in the competitive set |
E. | domestic firms in a country |
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126. | If Dr. Pepper plans to grow its proportion of the flavors segment of the carbonated soft drink industry to 45 percent, it has set __________ goal.
A. | a sales proportionality |
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127. | A firm may have a goal to offer its customers the highest __________, as Medtronic does with its implantable medical devices.
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128. | Complaints about one of Microsoft's Xbox video game consoles began immediately after its introduction. These complaints ranged from missing parts to incorrect programming. Microsoft should have adopted a more rigorous __________ goal.
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129. | Toyota had some difficulty recovering from a recall crisis several years ago when it was forced to recall about 6 million vehicles due to a variety of problems, most notably one with the accelerator pedal. To "polish" its brand, it implemented stricter __________ goals to improve the safety and reliability of its vehicles.
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130. | Motorola, a pioneer firm in the mobile communications space, invented a program known as Six Sigma, that sets as a goal no more than one defect in one million parts manufactured. This is an example of __________ goal.
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131. | Customers' perceptions are of vital importance to an organization. Customer __________ can be measured with surveys or by the number of customer complaints an organization receives.
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132. | The top consumer complaint about bananas is how soon they start getting brown spots. Dole, a multinational agricultural company, most likely set __________ goal when it recently began adding stickers to bananas to promote the use of overripe bananas in the Yonanas machine (Dole owns 30 percent of the firm) to make a creamy, guilt-free dessert.
D. | a customer satisfaction |
E. | a social responsibility |
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133. | Suppose L. L. Bean, a catalog retailer, has set a goal to reduce merchandise returns by 20 percent for the holiday season. The firm would most likely have set __________ goal.
B. | a customer satisfaction |
E. | a social responsibility |
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134. | Lands' End, an American apparel and outerwear firm, ships each order within 48 hours and its guarantee is said to be the best in the world, as exemplified by its tagline "Guaranteed Period." These marketing actions by Lands' End most likely reflect its __________ goals.
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135. | When a firm recognizes the critical importance of its employees by attempting to provide good conditions and opportunities, it sets an employee __________ goal.
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136. | Howard Schultz, the founder of the American coffee chain Starbucks, provides health care for all employees who work over 20 hours per week. He says, "The companies that are doing the right thing by covering their employees [with health care coverage] are paying for the companies who don't do the right thing." This is an example of one of Starbucks' __________ goals.
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137. | Some universities provide retirement benefits by matching the percentage an employee pays into a retirement account up to a certain percentage. This encourages a larger percentage of employees to participate in retirement planning. This is an example of __________ goal.
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138. | Businesses sometimes pursue __________ goal to balance the conflicting goals of stakeholders to promote their overall welfare, even at the expense of profits.
A. | a customer satisfaction |
D. | a social responsibility |
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139. | American Express, the credit card and travel organization, has a long history of working for the good of all in its New York community. In 1885, it engaged its employees to help raise money to build the pedestal of the Statue of Liberty. Today, it has a program to help restore, preserve, and revitalize historic sites in New York City. These actions by American Express are partial fulfillment of the __________ the firm has established for itself as a corporate citizen.
D. | customer satisfaction goals |
E. | social responsibility goals |
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140. | Hasbro is a more than $4 billion global toy company that prides itself on donating to organizations that help children, since this group and their parents comprise the target market for its business. This is an example of a
C. | social responsibility goal. |
E. | customer satisfaction goal. |
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141. | The organizational foundation sets the __________ of organizations, the organization direction sets the __________, and organizational strategies are concerned with the __________.
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142. | Organizational strategies vary in two ways, depending on
A. | the strategy's level in the organization and the offerings an organization provides to its customers. |
B. | the corporate level and the SBU level in the organization. |
C. | whether an offering is a product or a service. |
D. | whether they are mission statements or core values. |
E. | the organizational culture and its core values. |
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143. | A marketing plan refers to
A. | the long-term decisions made to implement the marketing program and the monitoring of those decisions. |
B. | a technique that marketing managers use to quantify performance measures and growth targets to analyze their firm's strategic business units (SBUs) as though they were a collection of separate investments. |
C. | a road map for the marketing activities of an organization for a specified future time period, such as one year or five years. |
D. | the detailed day-to-day operational decisions essential to the overall success of marketing strategies. |
E. | a road map for the entire organization for a specified future period of time, such as one year or five years. |
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144. | A road map for the marketing activities of an organization for a specified future time period, such as one year or five years, is referred to as a
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145. | A marketing plan is developed during which phase of the strategic marketing process?
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146. | A(n) __________ is the visual computer display of the essential information related to achieving a marketing objective.
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147. | A marketing dashboard refers to
A. | a "report card" prepared by the marketing department regarding its performance in terms of environmental and social responsibility. |
B. | the display of information found on a car's dashboard. |
C. | an "app" that uses a car navigation device metaphorically to indicate the specific direction in which a company wishes to grow based on its annual marketing plan. |
D. | information about an organization's marketing metrics presented orally so marketers can quickly spot deviations from plans and take corrective actions. |
E. | the visual computer display of the essential information related to achieving a marketing objective. |
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148. | With a marketing dashboard, a marketing manager can glance at all of the following except
A. | the time frame for which the data are presented. |
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149. | Which of the following statements regarding a marketing dashboard is most accurate?
A. | The more text (words) that is displayed, the better it is for a marketing manager to identify trends, interpret the data, and take corrective actions. |
B. | A marketing dashboard very often includes 20 or more marketing metrics on the computer screen. |
C. | Marketing dashboards provide graphic displays of a product's performance, such as sales, website traffic, etc. |
D. | For accuracy, the marketing dashboard should be updated weekly. |
E. | Marketing dashboards often show key measures such as human resource turnover, strategy success, and societal well-being. |
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150. | A measure of the quantitative value or trend of a marketing activity or result is referred to as
B. | a marketing measurement. |
C. | a marketing dashboard. |
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151. | A marketing metric refers to
A. | a measure of the quantitative value or trend of a marketing activity or result. |
B. | a form of linear trend analysis used to project future profits based on existing marketing plans. |
C. | one of a series of mathematical formulas used to calculate potential profits based upon different scenarios of the forces in the marketing environment. |
D. | information about an organization's core values and code of ethics so marketers can quickly spot deviations and take corrective actions. |
E. | the value of a product in terms of its contribution to employee welfare. |
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152. | The primary purpose of a marketing metric is to
A. | assign qualitative values to quantitative data. |
B. | allow the sharing of information across product lines. |
C. | measure the quantitative value of a marketing activity. |
D. | forecast potential product/service opportunities over a period of five years. |
E. | provide a numerically precise measurement of management judgment for an industry's growth. |
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153. | Data visualization
A. | is the visual computer display of the essential information related to achieving a marketing objective. |
B. | is a road map for the marketing activities of an organization for a specified future time period. |
C. | is the process of continuously collecting information about customers' needs, sharing this information across departments, and using it to create marketing metrics. |
D. | is a measure of the quantitative value or trend of a marketing activity or result. |
E. | presents information about an organization's marketing metrics graphically so marketers can quickly spot deviations from plans and take corrective actions. |
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154. | Consider the following Ben & Jerry's dollar sales and market share details. A marketing manager for Ben & Jerry's has been provided with a marketing dashboard display. She notices that dollar sales for 2014 were $240 million and in 2015 they were $250 million. What was the formula used to calculate the dollar sales for each of these two years?
A. | Dollar sales ($) = Average price × Quantity manufactured in each year. |
B. | Dollar sales ($) = Average cost of goods sold - Fixed costs in each year. |
C. | Dollar sales ($) = Average price - Shrinkage rate in each year. |
D. | Dollar sales ($) = Average price × Quantity sold in each year. |
E. | Dollar sales ($) = Average cost of goods sold - Variable costs in each year. |
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155. | Consider the following Ben & Jerry's dollar sales and market share details. A marketing manager for Ben & Jerry's has been provided with a marketing dashboard display. He notices that dollar market share for 2014 was 18.4 percent and for 2015 it was 20.0 percent. What simple formula was used to calculate the dollar market share percentages for each of these two years?
A. | Dollar market share (%) = Ben & Jerry's sales ($)/Total industry sales, including Ben & Jerry's sales ($). |
B. | Dollar market share (%) = Total industry sales, including Ben & Jerry's sales ($)/Ben & Jerry's sales ($). |
C. | Dollar market share (%) = Total industry sales, including Ben & Jerry's sales ($)/Ben & Jerry's unit sales ($). |
D. | Dollar market share (%) = Total industry sales, including Ben & Jerry's sales ($)/Ben & Jerry's net profit ($). |
E. | Dollar market share (%) = Ben & Jerry's sales ($)/Gross domestic product ($). |
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156. | An organization's special capabilities, including skills, technology, and resources that distinguish it from other organizations and provide customer value, are referred to as
A. | points of differences. |
B. | sustainable advantages. |
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157. | An organization's competencies include all of the following except
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158. | Rhone-Poulenc is an international French company that produces and markets a variety of chemicals and pharmaceuticals. Due to the resources it makes available to its scientists and researchers, the company has a number of Nobel Prize winners working in its laboratories. This ability to employ some of the finest minds in the world is an example of a
C. | sustainable advantage. |
D. | product development strategy. |
E. | human resource strategy. |
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159. | Designing a car is expensive and time-consuming even with the use of computers because of the difficulty of getting all the varied departments to work together. Mercedes-Benz created a unique centralized web-based system that cuts the design and production process by at least two years, thus providing customer value. This is an example of
A. | a point of similarity. |
B. | an innovation-oriented mission. |
D. | an operational goal implementation. |
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160. | Evergreen Air Center is the world's biggest parking lot for unwanted aircraft. Airlines pay a monthly fee from $750 to $5,000 to mothball their unneeded airplanes there. Its location is on 1,600 acres of Arizona desert near Tucson. The Southwest climate of dry, warm air serves as a cheap and effective airplane preservative against rust. Evergreen's location is
B. | a sustainable advantage. |
C. | a competitive identity. |
D. | a core benefit proposition. |
E. | an innovative distinction. |
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161. | A competitive advantage refers to
A. | the cluster of benefits that an organization promises customers to satisfy their needs. |
B. | those characteristics of a product that make it superior to competitive substitutes. |
C. | a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. |
D. | actions taken by a firm with the sole intent of putting a competitor out of business. |
E. | the added value given to a product beyond the functional benefits provided. |
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162. | A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation, is referred to as a
C. | distinctive competency. |
D. | competitive advantage. |
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163. | Weight Watchers is a weight-management company with operations in about 30 countries. Consumers buy almost $5 billion of Weight Watchers-branded products each year, and every week approximately 1.3 million people attend Weight Watchers meetings. The company's brand recognition and meeting infrastructure are difficult for competitors to match, providing a
B. | competitive advantage. |
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164. | St. Jude Medical makes cardiovascular medical devices, including the world's most widely used mechanical heart valve. Its products include tissue heart valves, pacemakers, and implantable cardiovascular defibrillators. St. Jude's innovation in cardiac devices helps it outperform rivals, and thus provides it with a
A. | competitive advantage. |
C. | core benefit proposition. |
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165. | Netflix is a company that rents DVD movies and television either by mail or streaming over the Internet. It jumped into an industry where there were many competitors, both local and national video stores. Initially, it established a loyal clientele by providing a service that was not available—reliable and fast shipment. Its delivery system created Netflix's
B. | competitive advantage. |
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166. | Men's Wearhouse caters to the man who doesn't necessarily enjoy shopping. Its stores are in free-standing locations (not inside the mall) so customers can get in and out quickly. Additionally, Men's Wearhouse targets the budget-conscious consumer with suit prices ranging from $150 to $850. The location of its stores and its pricing strategy both are part of Men's Wearhouse's
A. | competitive advantage. |
C. | core benefit proposition. |
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167. | The online retailer Lands' End communicates a remarkable commitment to its __________ with these unconditional words: "We accept any return, for any reason. Guaranteed Period."
C. | core benefit proposition |
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168. | <no longer> Lands' End is primarily known as a catalog retailer. This means that traditional department stores, mass merchandisers, specialty shops, and other catalog retailers are considered to be Lands' End's
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169. | All of the following retailers are principal or direct competitors to Lands' End except
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170. | Two commonly used techniques to aid mangers with important decisions for setting a direction and allocating resources include __________ and __________ analysis strategies.
A. | micromarketing; macromarketing |
B. | business portfolio; diversification |
C. | investment; divestment |
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171. | The Boston Consulting Group uses __________ to quantify performance measures and growth targets to analyze its clients' strategic business units as though they were a collection of separate investments.
D. | business portfolio analysis |
E. | diversification analysis |
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172. | The Boston Consulting Group uses business portfolio analysis to quantify performance measures and growth targets to analyze its clients' strategic business units
A. | as if each were a separate investment. |
B. | to establish their worth to society at large. |
C. | to determine which would be suited for a SWOT analysis. |
D. | to determine which units are candidates for diversification analysis. |
E. | to determine which units can be divided into smaller, tactical business units. |
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173. | Business portfolio analysis refers to
A. | a tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products. |
B. | a technique that managers use to graphically track their firm's strategic business units as though they were a single expense in order to identify cost-cutting measures. |
C. | a technique that managers use to quantify performance measures and growth targets to analyze their firm's strategic business units as though they were a collection of separate investments. |
D. | an analysis that uses percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm. |
E. | a tool that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
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174. | A technique that managers use to categorize strategic business units as question marks, stars, cash cows, or dogs is referred to as
A. | an investment (ROI) analysis. |
D. | a diversification analysis. |
E. | a business portfolio analysis. |
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175. | The purpose of business portfolio analysis is to
A. | add or delete product line and brand extensions. |
B. | search for growth opportunities from among current and new markets as well as current and new products. |
C. | alter a product's characteristic, such as its quality, performance, or appearance, to increase its value to customers and increase sales. |
D. | determine the appeal of each strategic business unit or offering and then determine the amount of cash each should receive. |
E. | seek opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
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176. | In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units, or SBUs, the vertical axis reflects
B. | marketing efficiencies. |
C. | industry attractiveness. |
E. | relative market share. |
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177. | The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix. In a growth-share matrix, the vertical axis of the matrix indicates
A. | the annual rate of growth of the firm's largest competitor. |
B. | the relative dollar market share of the largest competitor. |
C. | the annual rate of growth of the SBU's industry. |
D. | the relative unit market share of the largest competitor. |
E. | the annual rate of growth of the firm itself. |
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178. | The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix. In a growth-share matrix, the horizontal axis of the matrix indicates
A. | the annual rate of growth of the SBU's industry. |
B. | the relative dollar market share of the largest competitor. |
C. | the annual rate of growth of the firm's largest competitor. |
D. | the relative unit market share of the smallest competitor. |
E. | the annual rate of growth of the firm itself. |
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179. | In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units, or SBUs, the horizontal axis reflects
B. | marketing efficiencies. |
C. | industry attractiveness. |
E. | relative market share. |
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180. | In a BCG growth-share matrix, a relative market share of 10 × at the left end of the scale on its horizontal axis means that the SBU has 10 times the share of its largest competitor, whereas a relative market share of 0.1 × at the right end of the scale on its horizontal axis means that
A. | the SBU has only 10 percent of the share of its average competitor. |
B. | the SBU has 100 percent of the share of its largest competitor. |
C. | the growth rate between the SBU and the next largest competitor is actually identical. |
D. | the SBU has only 10 percent of the share of its largest competitor. |
E. | the industry growth rate is declining. |
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181. | All of the following are names the Boston Consulting Group (BCG) has given to describe the four quadrants in its growth-share matrix except
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182. | The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Cash cows are SBUs that are classified as having
A. | high market growth rates and high relative market shares. |
B. | low market growth rates but high relative market shares. |
C. | low market growth rates and low relative market shares. |
D. | high market growth rates but low relative market shares. |
E. | medium market growth rates and medium relative market shares. |
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183. | Strategic business units (SBUs) with dominant shares of slow-growth markets that provide cash to cover the organization's overhead and to invest in other SBUs are referred to as
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184. | The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Cash cows are located in which quadrant of the BCG growth-share matrix?
C. | center of the four quadrants |
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185. | Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased the line because it needed the cash generated from a product line that had a dominant market share in the slow-growth small appliance industry. GE's small appliances product line is most likely a __________ for Black & Decker.
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186. | The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Stars are SBUs that are classified as having
A. | high market growth rates and high relative market shares. |
B. | low market growth rates but high relative market shares. |
C. | low market growth rates and low relative market shares. |
D. | high market growth rates but low relative market shares. |
E. | medium market growth rates and medium relative market shares. |
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187. | Strategic business units (SBUs) with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as
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188. | The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Stars are located in which quadrant of the BCG growth-share matrix?
C. | center of the four quadrants |
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189. | Solarcom is a 30-year-old information technology company that owns several subsidiaries. One of its subsidiaries is Atlantix Global Systems, which is one of the leading wholesalers for refurbished computer equipment. It has a large share of an industry that is growing worldwide. According to the BCG business portfolio analysis framework, Atlantix Global would most likely be classified as a
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190. | Strategic business units with a low share of high-growth markets that may require large cash injections of cash just to maintain market share are referred to as
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191. | The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Question marks are SBUs that are classified as having
A. | high market growth rates and high relative market shares. |
B. | low market growth rates but high relative market shares. |
C. | low market growth rates and low relative market shares. |
D. | high market growth rates but low relative market shares. |
E. | medium market growth rates and medium relative market shares. |
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192. | The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Question marks are located in which quadrant of the BCG growth-share matrix?
C. | center of the four quadrants |
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193. | Strategic business units (SBUs) with a low share of slow-growth markets that may generate enough cash to sustain themselves but do not hold the promise of ever becoming real winners for the organization are referred to as
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194. | The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Dogs are SBUs that are classified as having
A. | high market growth rates and high relative market shares. |
B. | low market growth rates but high relative market shares. |
C. | low market growth rates and low relative market shares. |
D. | high market growth rates but low relative market shares. |
E. | medium market growth rates and medium relative market shares. |
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195. | The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Dogs are located in which quadrant of the BCG growth-share matrix?
C. | center of the four quadrants |
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196. | In its business portfolio analysis, an organization's strategic business units (SBUs) often start as __________ and eventually become __________.
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197. | While hybrid vehicles are very fuel-efficient, they are also expensive to purchase. Still, hybrid vehicles sales have a compound annual growth rate of 88.6 percent in recent years. Several years ago, the Honda Motor Co. unveiled the hybrid version of the Honda Civic. Sales of the Civic eventually surpassed those of the Toyota Prius, making it the top-selling hybrid car in the United States. For years, Honda has experienced tremendous success with its Accords; these Honda cars are the top-selling automobiles in the United States. Where would the Honda Civic (hybrid version) and the Honda Accord fall in the BCG business portfolio analysis matrix?
A. | The hybrid Civic is a star; the Accord is a cash cow. |
B. | The hybrid Civic is a cash cow; the Accord is a star. |
C. | Due to the overwhelming success of Honda cars, both the Accord and the hybrid Civic are cash cows. |
D. | The hybrid Civic is a dog; the Accord is a cash cow. |
E. | The hybrid Civic is a dog; the Accord is a star. |
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198. | In the BCG growth-share matrix, SBUs found in the high growth rate-high relative market share quadrant would be called
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199. | In the BCG growth-share matrix, SBUs found in the high growth rate-low relative market share quadrant would be called
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200. | In the BCG growth-share matrix, SBUs found in the low growth rate-low relative market share quadrant would be called
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201. | In the BCG growth-share matrix, SBUs found in the low growth rate-high relative market share quadrant would be called
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202. | To move an SBU from its current position on a BCG business portfolio analysis, a manager should concentrate mostly on
A. | influencing the relative market share. |
B. | enhancing employee motivation to move a low-valued SBU to a higher one. |
C. | adding a variety of new SBUs that will force out older ones. |
D. | influencing the market growth rate. |
E. | simplifying its offerings by removing features. |
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203. | Because an organization has limited influence on market growth rate, its main alternative for moving an SBU on the portfolio analysis matrix is to try to change its relative market share. The most likely way for a company to turn a question mark into a star rather than a dog is to
A. | divert funds to other SBUs. |
B. | reduce advertising for it. |
D. | reduce the feature set for it. |
E. | decrease the market growth rate. |
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204. | With the arrival of tablet devices, such as Apple's iPad in 2010, growth in the global PC industry has slowed considerably and sales were expected to be declining by 2016. If a firm offering a range of PCs had slightly increased its global unit market share of PC sales from 10 to 12 percent, the company should be concerned that this product is becoming a
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205. | Apple entered the music player market with its iPod in 2001 and by 2014 it had a 70 percent share of this market. However, global MP3 music player unit sales over the past few years have fallen dramatically and were expected to decline further by 2016, as Apple announced it is discontinuing the iPod Classic while it will continue to sell three iPod product lines. Currently, Apple's iPod SBU appears to be a
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206. | Apple launched its revolutionary Apple watch in 2015 as the first wearable technology that used a multi-touch user interface. The wearable technologies market grew at a rate of more than 100 percent in 2015. Apple sales were substantial despite a relatively high price and short battery life. The Apple watch enters the market as a
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207. | Apple launched the iPhone in 2007, and unit sales reached an astonishing 47.7 percent market share in the smartphone industry by 2015. The global smartphone market is expected to grow at an annual rate of 9.8 percent through 2018 due to the growth in China and other markets. Currently, Apple's iPhone SBU appears to be a
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208. | One of the strengths inherent in the use of the BCG business portfolio analysis is that it
A. | is based solely on company perception rather than actual data. |
B. | considers all factors that might impact an SBU's value to an organization. |
C. | acts as a strong motivational tool for employees in SBUs that have been labeled "dogs" or "question marks." |
D. | forces a firm to place each of its SBUs in the growth-share matrix, which in turn suggests which SBUs will be cash producers or cash users in the future. |
E. | identifies specific marketing strategies and marketing tactics on how to solve SBU shortcomings. |
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209. | One of the weaknesses inherent in the use of the BCG business portfolio analysis is that it
A. | causes dissension between different divisions when one is labeled a "star" and another a "dog." |
B. | reduces employee motivation to move a low valued SBU to a higher one. |
C. | considers too many SBU factors beyond market growth rate and relative market share. |
D. | does not require sales forecasts in order to be implemented. |
E. | is often difficult to obtain the needed information to correctly place SBUs in the matrix. |
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210. | A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products is referred to as
A. | diversification analysis. |
B. | business portfolio analysis. |
C. | a market-product grid framework. |
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211. | Diversification analysis refers to
A. | a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
B. | a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. |
C. | a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. |
D. | a technique used to determine the appeal of each SBU or offering and then the amount of cash, if any, each should receive. |
E. | a framework that identifies four "generic" strategies to achieve a competitive advantage. |
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212. | Which of the following statements regarding diversification analysis is most accurate?
A. | Companies should only use diversification analysis if they are well-established; new companies that use this process run the risk of trying to do too much too soon. |
B. | For any product, there is both a current and a new market; for any market, there is both a current and a new product. |
C. | Most companies discover that there is at least one product that is targeted to the wrong market. |
D. | Diversification analysis is only effective for consumer products. |
E. | Diversification analysis is used to forecast and calculate industry sales for new products. |
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213. | A marketing strategy to increase sales of current products in current markets is referred to as
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214. | Market penetration refers to the marketing strategy of
A. | selling current products to new markets. |
B. | selling new products to new markets. |
C. | selling new products to current markets. |
D. | selling the same brands in both current and new markets. |
E. | increasing sales of current products in current markets. |
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215. | One way a company can benefit from implementing a market penetration strategy would be to
A. | sell more products at a lower price in new markets. |
B. | sell the same amount of product at a higher price in the same market. |
C. | find a new market and sell the product at a much higher price. |
D. | alter the product and sell it to a new market. |
E. | reduce promotion and distribution costs to improve production efficiencies for the product in reaching new markets. |
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216. | When using a __________ strategy, there is no change in either the basic product line or the markets served. Instead, increased sales are generated by selling either more products through better promotion or distribution or the same number of products at a higher price.
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217. | If Ben & Jerry's sold more units of its Bonnaroo Buzz Fair Trade-sourced super premium ice cream to U.S. consumers as a result of increased promotion while keeping its price per pint the same, it would be using a __________ strategy.
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218. | If sales revenues for Starbucks VIA Ready Brew instant coffee sold to U.S. consumers increased as a result of a slight price increase of $0.25 per pack, it would be using a __________ strategy.
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219. | The marketing strategy to sell current products to new markets is referred to as
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220. | Market development refers to the marketing strategy of
A. | increasing sales of current products in current markets. |
B. | selling new products to new markets. |
C. | selling new products to current markets. |
D. | selling the same brands in both current and new markets. |
E. | selling current products to new markets. |
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221. | If Ben & Jerry's starts selling Bonnaroo Buzz Fair Trade-sourced super premium ice cream in Brazil for the first time, it will be using a __________ strategy.
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222. | Part of the growth strategy for Yum! Brands, the parent company of KFC, Pizza Hut, and Taco Bell, is expansion of its current fast-food businesses into new markets, such as China, Russia, and India. This type of expansion would be a __________ strategy.
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223. | The marketing strategy of selling new products to current markets is referred to as
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224. | Product development refers to the marketing strategy of
A. | increasing sales of current products in current markets. |
B. | selling current products to new markets. |
C. | selling new products to new markets. |
D. | selling new products to current markets. |
E. | selling the same brands in both current and new markets. |
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225. | If Ben & Jerry's sold a line of new "Get the Dough Out of Politics" T-shirts targeted to college students in the United States, it would be using a __________ strategy.
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226. | When Starbucks announced that it would release a new single-serve Verismo high-pressure brewing machine in its U.S. outlets, it was using a __________ strategy.
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227. | The marketing strategy of developing new products and selling them in new markets is referred to as
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228. | Diversification refers to the marketing strategy of
A. | increasing sales of current products in current markets. |
B. | selling current products to new markets. |
C. | selling new products to new markets. |
D. | selling new products to current markets. |
E. | selling the same brands in both current and new markets. |
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229. | Which of the marketing strategies for expanding sales revenue presents the most risk for an organization?
B. | product-market evolution |
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230. | If Ben & Jerry's sold a line of new "Get the Dough Out of Politics" T-shirts targeted to college students in Latvia, it would be using a __________ strategy.
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231. | The current markets-current products quadrant in a diversification analysis matrix represents the marketing strategy of
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232. | A family owns a gelato business next to a small town's park, a favorite place for parents and children to stop on their way home from work or school. However, the business owner is barely making ends meet. He experiments by purchasing large take-home containers so customers can not only consume gelato in the park but also enjoy it after dinner at home. Sales of gelato soar and profits begin to rise. This is an example of a __________ strategy.
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233. | The current markets-new products quadrant in a diversification analysis matrix represents the marketing strategy of
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234. | A family owns a gelato business next to a small town's park, a favorite place for parents and children to stop on their way home from work or school. However, the business owner is barely making ends meet. Customers frequently compliment his unusual gelato flavor selections. He decides to package his special flavorings into small packets that can be used at home for drinks. Sales of the packets soar and profits rise. This is an example of a __________ strategy.
E. | product-market addition |
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235. | The new markets-current products quadrant in a diversification analysis matrix represents the marketing strategy of
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236. | The new markets-new products section in a diversification analysis matrix represents the marketing strategy of
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237. | A family owns a gelato business next to a small town's park, a favorite place for parents and children to stop on their way home from work or school. However, the business owner is barely making ends meet. In addition to running his store, he begins selling hand-made flies on the Internet for professional sports fishermen. This is an example of a __________ strategy.
D. | product-market expansion |
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238. | If Ben & Jerry's were to sell children's clothing under the Ben & Jerry's brand to Brazilians for the first time, this would be an example of a __________ strategy.
E. | product-market expansion |
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239. | Which two marketing strategies would be used if a firm were not willing to find new markets?
A. | product development and market penetration |
B. | product development and diversification |
C. | market development and product development |
D. | market development and market penetration |
E. | market development and diversification |
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240. | The strategic marketing process
A. | involves taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it. |
B. | is a technique to quantify performance measures and growth targets to analyze its clients' strategic business units as though they were a collection of separate investments. |
C. | describes an organization's appraisal of its internal strengths and weaknesses and its external opportunities and threats. |
D. | is an approach whereby an organization allocates its marketing mix resources to reach its target markets. |
E. | seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
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241. | An approach whereby an organization allocates its marketing mix resources to reach its target markets is referred to as
A. | the tactical marketing process. |
C. | diversification analysis. |
E. | the strategic marketing process. |
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242. | An organization uses the strategic marketing process to answer all of the following questions except
A. | "How do our results compare with our plans?" |
B. | "How do we allocate our resources to get where we want to go?" |
C. | "Where do we want to go?" |
D. | "Do deviations require new plans?" |
E. | "How do we convert our plans into actions?" |
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243. | Within the strategic marketing process, the __________ is the result of the planning phase that proceeds to the implementation phase where it is carried out.
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244. | The key steps of planning, implementation, and evaluation are part of
B. | the strategic marketing process. |
E. | diversification analysis. |
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245. | What are the three steps involved in the planning phase of the strategic marketing process?
A. | Step 1: situation (SWOT) analysis; Step 2: market-product focus and goal setting; and Step 3: the marketing program |
B. | Step 1: analysis; Step 2: planning; and Step 3: implementation |
C. | Step 1: set market and product goals; Step 2: select target markets and find points of difference; and Step 3: position the product |
D. | Step 1: identify industry trends; Step 2: analyze competitors; and Step 3: assess own organization |
E. | Step 1: Why do we exist?; Step 2: What will we do?; and Step 3: How will we do it? |
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246. | The initial step in the strategic marketing process is to begin planning by conducting a
A. | business portfolio analysis. |
B. | market-product analysis and setting goals. |
D. | situation (SWOT) analysis. |
E. | diversification analysis. |
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247. | Step 1 in the planning phase of the strategic marketing process involves
A. | establishing the budget. |
B. | developing the marketing program. |
D. | auditing the marketing plan. |
E. | conducting a situation (SWOT) analysis. |
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248. | Step 2 in the planning phase of the strategic marketing process consists of
A. | the situation (SWOT) analysis. |
B. | market-product focus and goal setting. |
C. | the marketing program. |
D. | business portfolio analysis. |
E. | diversification analysis. |
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249. | Step 3 in the planning phase of the strategic marketing process consists of
A. | diversification analysis. |
B. | the situation (SWOT) analysis. |
C. | the marketing program. |
D. | the market-product focus and goal setting. |
E. | business portfolio analysis. |
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250. | Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it is referred to as
D. | environmental scanning. |
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251. | A situation analysis refers to
A. | taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it. |
B. | an appraisal of an organization's cash flow and financial ratios to access its health and the potential for new investment. |
C. | the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends. |
D. | a technique that managers use to quantify performance measures and growth targets to analyze its clients' strategic business units as though they were separate investments. |
E. | the process where a firm searches for growth opportunities from among current and new markets as well as current and new products. |
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252. | A situation analysis requires a firm to consider the external forces and trends that affect it. Some of these may be favorable to the organization while others may be unfavorable. Which of the following is an example of an external force?
A. | The firm buys its own fleet of trucks, so it no longer needs to hire a trucking company for distribution. |
B. | A hiring freeze is put into place. Although no one is fired, no one can be hired. |
C. | A goal is set to close the gap between production costs and profits. |
D. | A local government requires that all businesses within the city limits must recycle or be fined. |
E. | Shareholders are rewarded with a sizable dividend check. |
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253. | The acronym SWOT, as in SWOT analysis, stands for
A. | strengths, weaknesses, opportunities, and tactics. |
B. | strengths, weaknesses, options, and tactics. |
C. | strengths, weaknesses, opportunities, and threats. |
D. | simple, workable, optimal, and timely. |
E. | state the problem, work out a strategy, organize your team, and take action. |
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254. | An effective summary tool for an organization's situation analysis is referred to as
B. | strategic management planning. |
C. | environmental scanning. |
D. | market-product grid analysis. |
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255. | In the 1980s, a lapse in production quality and an increase in Japanese imports drove the Harley-Davidson motorcycle company to the brink of bankruptcy. The company's share of the U.S. super heavyweight market segment—motorcycles with engine capacity of 850 cubic centimeters or more—had shrunk from over 40 percent in the mid-1970s to 23 percent in 1983. But by 1989, Harley-Davidson controlled some 65 percent of this market segment. From a marketing perspective, what was the most likely first step in Harley-Davidson's resurgence?
A. | developing a new mission statement |
B. | repositioning its products in the minds of super heavyweight motorcycle buyers |
C. | performing a SWOT analysis to assess the firm's internal and external environments |
D. | selling new models of super heavyweight motorcycles in both the United States (current) and foreign (new) markets |
E. | improving the quality of its products and communicating this to motorcycle buyers |
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256. | Ben & Jerry's is an ice cream producer owned by Unilever. Ben & Jerry's prestigious well-known brand name, and the fact that it complements Unilever's other ice cream brands, allows the firm to find specific efficiencies in distribution with its parent company's existing brands. A SWOT analysis for Ben & Jerry's would indicate its brand name and distribution efficiencies are __________ for the firm.
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257. | Ben & Jerry's is an ice cream producer owned by Unilever. If the firm identified that its managers lacked the expertise to create additional growth for the firm's products, a marketing manager would likely incorporate this knowledge into its SWOT analysis as
A. | a weakness if the company has a strong working relationships with Unilever. |
B. | an opportunity if the company shares this information directly with its competitors. |
C. | a weakness if the company does not seek to gain that additional expertise. |
D. | a threat if Ben & Jerry's does not have resources to develop additional expertise. |
E. | part of a marketing plan; this information would not be part of a SWOT analysis. |
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258. | All of the following form the foundation upon which a firm builds its marketing program during the strategic marketing process except
A. | research the organization's present and prospective customers. |
B. | determine what business the organization is in. |
C. | assess the organization itself. |
D. | identify trends in the organization's industry. |
E. | analyze the organization's competitors. |
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259. | The goal of a SWOT analysis is to
A. | identify market research questions in order to develop new products for new market segments. |
B. | determine how raises, bonuses, and dividends will be paid. |
C. | reorganize the firm's marketing department. |
D. | identify the critical strategy-related factors that can impact the firm. |
E. | fairly allocate governmental resources and financial aid across the industry. |
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260. | All of the following are marketing actions that can be taken as a result of a SWOT analysis except
A. | exploit an opportunity. |
C. | avoid a disaster-laden threat. |
E. | secure the necessary resources (financial, human, technological) to fund new SBUs. |
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261. | A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits (consisting of food bars, a water filtration system, first aid supplies, etc.). Before going ahead with this decision, several factors had to be considered: (1) The firm has a great reputation with its flashlights and does not want to ruin it. (2) Its physical plant could be refitted relatively easily to make small generators, but it would be rather costly. (3) It would have to rely on another firm to manufacture and package the survival kits. (4) Although there are nine named hurricanes anticipated for the upcoming year, no one really can predict what will happen. The company's reputation would fall in which quadrant(s) of the SWOT analysis grid?
E. | both internal-favorable and external-favorable |
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262. | A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits (consisting of food bars, a water filtration system, first aid supplies, etc.). Before going ahead with this decision, several factors had to be considered: (1) The firm has a great reputation with its flashlights and does not want to ruin it. (2) Its physical plant could be refitted relatively easily to make small generators, but it would be rather costly. (3) It would have to rely on another firm to manufacture and package the survival kits. (4) Although there are nine named hurricanes scheduled for the upcoming year, no one really can predict what will happen. The company's need to refit its factory would fall in which quadrant(s) of the SWOT analysis grid?
E. | both internal-unfavorable and external-unfavorable |
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263. | A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in power outages. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits (consisting of food bars, a water filtration system, first aid supplies, etc.). Before going ahead with this decision, several factors had to be considered: (1) The firm has a great reputation with its flashlights and does not want to ruin it. (2) Its physical plant could be refitted relatively easily to make small generators, but it would be rather costly. (3) It would have to rely on another firm to manufacture and package the survival kits. (4) Although there are nine named hurricanes forecasted for the upcoming year, no one really can predict what will happen. The projected number of hurricanes would fall in which quadrant(s) of the SWOT analysis grid?
E. | both external-favorable and external-unfavorable |
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264. | A Florida-based flashlight company has been extremely successful due in part to the number of hurricanes in Florida that result in a loss of power. The firm is thinking of expanding its product offerings to include other emergency supplies such as generators and survival kits. Before going ahead with this decision, several factors had to be considered: (1) The firm has a great reputation with its flashlights and doesn't want to ruin it. (2) Its physical plant could be refitted relatively easily to make small generators, but it would be rather costly. (3) It would have to rely on another firm to manufacture and package the survival kits. (4) Although there are nine named hurricanes scheduled for the upcoming year, no one really can predict what will happen. The need to rely on another company to supply the survival kits would fall in which quadrant(s) of the SWOT analysis grid?
E. | both external-favorable and external-unfavorable |
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265. | The internal-favorable quadrant represents __________ in a SWOT analysis.
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266. | The internal-unfavorable quadrant represents __________ in a SWOT analysis.
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267. | The external-favorable quadrant represents __________ in a SWOT analysis.
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268. | The external-unfavorable quadrant represents __________ in a SWOT analysis.
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269. | Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action is referred to as
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270. | Market segmentation refers to
A. | identifying small groups of customers with dissimilar needs. |
B. | aggregating prospective buyers into groups and selecting only those whose needs cannot be met by competitors' products. |
C. | aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action. |
D. | aggregating different products into more reasonable product groupings to better serve consumers' needs. |
E. | those characteristics of a product that make it superior to competitive substitutes. |
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271. | Market segmentation is a part of what step in the strategic marketing process?
B. | market-product focus and goal setting |
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272. | To develop a successful marketing plan for a soft drink, the process of __________ would most likely be used to group consumers on the basis of whether they wanted sugar-free and caffeine-free soda, caffeine-free sugared soda, or regular soda with sugar and caffeine.
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273. | During Step 2 of the strategic marketing process, firms such as Ben & Jerry's engage in all of the following marketing activities except
B. | set marketing and product goals. |
C. | develop the marketing program. |
D. | select target markets. |
E. | find points of difference. |
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274. | In a marketing context, goal setting involves setting measurable __________ to be achieved.
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275. | Those characteristics of a product that make it superior to competitive substitutes are referred to as
A. | core benefit propositions. |
B. | marketing mix elements. |
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276. | Points of difference refer to
A. | the fundamental, passionate, and enduring principles of an organization that guide its conduct over time. |
B. | the cluster of benefits that an organization promises customers to satisfy their needs. |
C. | a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation. |
D. | those characteristics of a product that make it superior to competitive substitutes. |
E. | the use of percentage points of market share to allocate marketing resources effectively for different product lines within the same firm. |
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277. | At which step of the planning stage of the strategic marketing process does a firm develop its marketing mix?
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278. | The marketing program, Step 3 in the strategic planning process, answers which question?
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279. | The __________ element of the marketing mix includes features and packaging.
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280. | The __________ element of the marketing mix includes discounts and allowances.
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281. | The __________ element of the marketing mix includes personal selling and sales promotion.
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282. | The __________ element of the marketing mix includes channels and transportation.
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283. | Offering a branded heart pacemaker with only the features needed by Asian patients is an example of that firm's
E. | product/service strategy. |
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284. | Introducing a heart pacemaker at medical conventions across Asia to demonstrate its many beneficial features is an example of a medical device firm's
A. | market segmentation and targeting strategy. |
E. | product/service strategy. |
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285. | Searching out, using, and training reputable medical device distributors across Asia to call on cardiologists and medical clinics is an example of a firm's
A. | market segmentation and targeting strategy. |
E. | product/service strategy. |
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286. | The second phase of the strategic marketing process is the
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287. | In which phase of the strategic marketing process does a firm obtain resources, design the marketing organization, develop schedules, and execute the marketing program?
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288. | All of the following are components of the implementation phase of the strategic marketing process except
A. | defining precise tasks, responsibilities, and deadlines. |
B. | executing the marketing program. |
C. | designing the marketing organization. |
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289. | The actions taken during the implementation phase of the strategic marketing process include: (1) __________; (2) design the marketing organization; (3) define precise tasks, responsibilities, and deadlines; and (4) execute the marketing program.
D. | find points of difference |
E. | develop the budget by estimating revenues, expenses, and profits |
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290. | The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources; (2) __________; (3) define precise tasks, responsibilities, and deadlines; and (4) execute the marketing program.
B. | design marketing organization |
D. | find points of difference |
E. | develop the budget by estimating revenues, expenses, and profits |
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291. | The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources; (2) design the marketing organization; (3) __________; and (4) execute the marketing program.
C. | define precise tasks, responsibilities, and deadlines |
D. | find points of difference |
E. | develop the budget by estimating revenues, expenses, and profits |
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292. | The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources; (2) design the marketing organization; (3) define precise tasks, responsibilities, and deadlines; and (4)
B. | select target markets. |
C. | find points of difference. |
D. | execute the marketing program. |
E. | develop the budget by estimating revenues, expenses, and profits. |
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293. | In a typical manufacturing firm, the structure of its marketing department is typically organized from top to bottom as follows:
A. | CEO to CFO to product manager. |
B. | CEO to CMO to product manager. |
C. | product manager to marketing research manager to sales manager to promotion manager. |
D. | industry manager to market manager to product manager. |
E. | product manager to CMO to sales manager. |
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294. | An aid to implementing a marketing plan and consisting of four columns: (1) the task; (2) the person responsible for completing that task; (3) the date to finish the task; and (4) what is to be delivered is referred to as
E. | a marketing action memo. |
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295. | An action item list refers to an aid to implement a marketing plan that consists of four columns: (1) __________; (2) the person responsible for completing that task; (3) the date to finish the task; and (4) what is to be delivered.
C. | the product or service |
D. | the points of difference |
E. | the promotional message |
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296. | An action item list refers to an aid to implement a marketing plan that consists of four columns: (1) the task; (2) __________; (3) the date to finish the task; and (4) what is to be delivered.
B. | the product or service |
C. | the points of difference |
D. | the promotional message |
E. | the person responsible for completing that task |
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297. | An action item list refers to an aid to implement a marketing plan that consists of four columns: (1) the task; (2) the person responsible for completing that task; (3) __________; and (4) what is to be delivered.
B. | the points of difference |
C. | the promotional message |
D. | the date to finish the task |
E. | the product or service |
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298. | An action item list refers to an aid to implement a marketing plan that consists of four columns: (1) the task; (2) the person responsible for completing that task; (3) the date to finish the task; and (4)
B. | the points of difference. |
C. | what is to be delivered. |
D. | the promotional message. |
E. | the product or service. |
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299. | When participating in major projects in college marketing classes, effective teams can use a __________ to be sure that each team member does a fair amount of work and that class projects are finished efficiently and on time.
E. | sales response function |
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300. | The key to all scheduling techniques is to
A. | avoid scheduling tasks that can be done concurrently. |
B. | avoid tasks that must be done sequentially. |
C. | make sure to allow a 20 percent delay factor to account for contingencies. |
D. | assign responsibility for end results to the entire group rather than a single individual. |
E. | distinguish tasks that must be done sequentially from those that can be done concurrently. |
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301. | A marketing __________ is defined as the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.
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302. | A marketing strategy refers to
A. | the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. |
B. | the tactical decisions made to implement the marketing program. |
C. | a technique to quantify performance measures and growth targets of a firm's strategic business units (SBUs). |
D. | a road map for the marketing activities of an organization for a specified future time period, such as one year or five years. |
E. | the detailed day-to-day operational decisions. |
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303. | The term marketing strategy is used to address both the __________ and the __________.
A. | product groupings; target markets |
B. | target market; marketing program |
D. | revenues generated; market share achieved |
E. | feasibility; time required to implement |
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304. | A marketing strategy is the means by which a marketing goal is to be achieved. The two parts that usually characterize a marketing strategy are
A. | specific organizational goals and objectives. |
B. | a detailed marketing plan and a marketing budget. |
C. | marketing strategies and marketing tactics. |
D. | a specified target market and a marketing program to reach it. |
E. | marketing metrics and marketing dashboards to track effectiveness. |
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305. | Which of the following statements reflects the key elements in developing a marketing strategy for L. M. Schofield, Inc., a company that produces specialized concrete surfaces for heavily trafficked areas such as retail outlets and amusement parks?
A. | Buy ads in all the major trade journals that explain the variety of surfaces available and what uses each has. |
B. | Communicate with contractors using direct mail about the various walking surfaces Schofield can create for riding and walking paths. |
C. | Design a sample ad and test it using visitors at a trade show. |
D. | Hire six new sales representatives for the Midwest regional office and train them on all aspects of concrete surfaces. |
E. | Conduct a focus group to decide on which surface to use for a theme park in Brazil. |
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306. | Marketing tactics refer to the
A. | long-term decisions made to implement the marketing program and the monitoring of those decisions. |
B. | detailed day-to-day operational decisions essential to the overall success of marketing strategies. |
C. | steps taken to develop an effective marketing plan. |
D. | development of marketing strategies to achieve the organization's marketing objectives. |
E. | refinement of the organization's mission based on the results obtained from a marketing audit. |
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307. | The detailed day-to-day operational decisions essential to the overall success of marketing strategies are referred to as
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308. | Compared to marketing strategies, marketing tactics generally involve actions that
A. | are detailed day-to-day operational decisions. |
B. | are long-term rather than short-term. |
C. | involve upper levels of management rather than front-line managers. |
D. | are general rather than specific in nature. |
E. | have been successfully implemented in the past. |
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309. | If marketers at a large auto manufacturer created a little digital flip film out of some 200 photos to tout the prowess of their new truck, hoping it would be a clever way to get people to engage, this action would be an example of the firm's marketing
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310. | Owners of a specialist olive oil production firm decided to offer their product in 5-ounce and 13-ounce sizes. They decided to sell the olive oil only through the mail and to price the smaller bottle at $6.50 and the larger bottle at $12.00. These actions consist of the firm's marketing
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311. | The strategic marketing process involves three phases: planning, implementation, and
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312. | The third and final phase of the strategic marketing process is the
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313. | The two major aspects of the evaluation phase of the strategic marketing process are
A. | segmenting the market and selecting target markets. |
B. | establishing a business mission and designing measurable goals and objectives. |
C. | designing the marketing mix and setting the budget. |
D. | comparing the results of the marketing program with the goals in the written plans to identify deviations and then to act on them. |
E. | executing the marketing plan and designing the marketing organization. |
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314. | The actions taken during the evaluation phase of the strategic marketing process include (1) __________ and (2) correct negative deviations and exploit positive ones.
A. | find points of difference |
B. | execute the marketing program |
C. | compare results with plans to identify deviations |
D. | track sales and revenues and compare with competitors |
E. | develop the budget by estimating revenues, expenses, and profits |
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315. | The actions taken during the evaluation phase of the strategic marketing process include (1) compare results with plans to identify deviations and (2)
A. | find points of difference. |
B. | execute the marketing program. |
C. | track sales and revenues and compare with competitors. |
D. | develop the budget by estimating revenues, expenses, and profits. |
E. | exploit positive deviations and correct negative ones. |
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316. | The difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place is referred to as the
E. | sales response function. |
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317. | The planning gap refers to
A. | the difference between projected total costs and realized total revenues. |
B. | the difference between projected total costs and net profits. |
C. | the difference between marginal revenue and marginal cost. |
D. | the percentage point difference between a firm and its next largest competitor in terms of market share. |
E. | the difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place. |
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318. | When evaluations show that actual performance differs from expectations, firms typically attempt to
A. | decide if the time horizon should be increased or decreased. |
B. | perform a SWOT analysis with their major competitor as the principal focus. |
C. | use statistical linear trend analysis to interpret the results. |
D. | exploit a positive deviation or correct a negative deviation. |
E. | adopt a market-product grid to analyze the sales results. |
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319. | A planning gap is the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place. The ultimate purpose of the firm's marketing program is to __________ this planning gap.
A. | calculate the contribution margin of |
B. | calculate the marginal trend of |
C. | create the break-even point for |
E. | determine the sales differential of |
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320. | Marana Aerospace Solutions is the world's largest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 monthly for the storage services provided by Evergreen. Before September 2001, the company had 140 discarded airplanes at its Arizona facilities and was growing at a rate of about six planes monthly with about two per month sold for parts or scrap metal. After calamity struck the airline industry in September 2001, airlines retired over 1,000 planes, and the actual number of planes stored at Evergreen differed significantly from its earlier prediction. Marana has enacted a new goal, widening the
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321. | The marketing manager looks for two kinds of deviations, each triggering a different kind of action: (1) actual results fall short of goals and (2)
A. | deviations that result from major shifts in customer needs. |
B. | actual results exceed goals. |
C. | there are no deviations but there should be. |
D. | deviations that result from executive mandates. |
E. | deviations that are blamed on insufficient marketing support (personnel or funding). |
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322. | Alex has just completed measuring the results of her firm's product performance. Her next step will be to
A. | do a profitability analysis. |
B. | take necessary corrective actions. |
C. | bring these to the marketing auditor. |
D. | proceed regardless of deviations from original plans. |
E. | compare the results against the goals specified in the marketing plan. |
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323. | IBM's business strategy to help its clients be more efficient, productive, and responsive to the data generated from the revolution in the global marketplace concerning the instrumentation and integration of the world's processes and infrastructures is referred to as
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324. | All of the following were strategic opportunities identified in IBM's 2015 road map except
A. | the connected, "smarter planet." |
B. | cloud and smarter computing. |
C. | a shift from software and services to PCs and hard disk drives. |
D. | business analytics and optimization. |
E. | growth markets such as China, India, Brazil, and Africa. |
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325. | Implementation of IBM's "Smarter Planet" strategy has resulted in all of the following except
A. | a reduction in supply chain costs for retailers. |
B. | a reduction in traffic delays through coordinated signals. |
C. | a reduction in power usage for consumers using smart meters. |
D. | a reduction in inventory levels, as well as increased sales, for retailers. |
E. | a reduction in wasted coverage for advertising messages to increase its efficiency. |
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326. | The marketing plan for IBM's "Smarter Planet" strategy included which of the following marketing tactics?
A. | handing out "Smarter Planet" T-shirts on selected college campuses through the world |
B. | providing samples of new hard drives for New York City businesses |
C. | sponsoring the U.S. swim team for the 2012 Summer Olympics |
D. | including a strong message in an annual report from IBM's chairman of the board and CEO |
E. | garnering a celebrity endorsement from Jon Stewart, host of "The Daily Show" |
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Short Answer Questions
327. | Briefly describe the five levels in a hierarchical organizational structure, including the three that are strategic in nature.
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328. | Describe the three strategic levels in an organization.
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329. | Apple, a multimarket, multiproduct firm, manufactures and markets Apple Watch, iPods, iPhones, and iPads as a portfolio of businesses. At what organizational level does Apple set the strategic direction for these businesses to create customer value?
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330. | What is a cross-functional team and how is it used?
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331. | Explain what a visionary organization is and the three questions (why, what, and how) that need to be answered to achieve success.
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332. | What are the three elements that today's visionary organization must do to be forward looking and successful within its marketing environment? What is the purpose of each of these elements?
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333. | Explain the concept of "linked prosperity" that was embraced by the founders of Ben & Jerry's, and describe how they set out to achieve this.
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335. | What is an organization's mission? What are some elements of a well-written mission statement?
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336. | In 25 words or less, write a mission statement for a local community college.
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337. | The American railroad industry faced a serious decline in the 20th century. What business did rail executives believe they were in at that time? What business is a railroad company really in? Why is the difference important?
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338. | Name and briefly describe the seven types of organizational goals or objectives.
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339. | The logistics industry has sales of $800 billion per year. If a third party logistics provider had sales of $8 billion, what would its market share be? Be sure to define market share and show your work in your answer.
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340. | Define marketing dashboard and marketing metric and explain how these terms are related.
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341. | Explain the difference between competencies and competitive advantage in an organizational setting.
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342. | The Boston Consulting Group's business portfolio analysis model can be used to analyze a firm's strategic business units. How is it used and what can it tell you?
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343. | One of the most recognized approaches to business portfolio analysis is the Boston Consulting Group's growth-share matrix. Describe this tool and the four quadrants of the matrix.
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344. | Identify and explain each of the four market-product strategies represented by each quadrant in the diversification analysis matrix.
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345. | List the three steps of the planning phase of the strategic marketing process. Briefly describe what goes on during each of the three steps.
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346. | Identify and describe the three phases of the strategic marketing process.
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347. | Identify and describe the three steps of the planning phase of the strategic marketing process.
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348. | Identify and describe the four factors in a SWOT analysis and give examples for Ben & Jerry's Ice Cream that help identify the critical strategy-related factors that could impact the firm.
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349. | A campus service organization annually raises money through the sale of T-shirts. How could it use market segmentation to increase sales of the shirts? Be sure to include a definition of market segmentation in your answer.
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350. | What are the marketing mix elements that make up a cohesive marketing program?
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351. | A campus service organization annually raises money through the sale of T-shirts. What are the major components of the marketing program it should use to increase sales? Give at least one example of each.
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352. | What are the four components of the implementation phase of the strategic marketing process?
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353. | Explain what a Gantt chart is and how it is used.
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354. | What is the difference between a marketing strategy and a marketing tactic?
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355. | Explain the steps in the evaluation phase of the strategic marketing process.
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356. | What is the purpose of the evaluation phase of the strategic marketing process? How is it accomplished?
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357. | Explain what a planning gap is and what is used to close it.
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