marketing principles
________ is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities.
A) Benchmarking
B) SWOT analysis
C) Market segmentation
D) Strategic planning
E) Diversification
A ________ documents an organization's purpose-what it wants to accomplish in the larger environment.
A) vision statement
B) mission statement
C) business portfolio
D) value proposition
E) product strategy
Which of the following is a market-oriented mission statement?
A) "We empower customers to achieve their dreams."
B) "We sell jumbo burgers."
C) "We are an online library."
D) "We are a low-cost airline."
E) "We make porcelain figurines."
The major activity in strategic planning is ________, whereby management evaluates the products and businesses that make up the company.
A) SWOT analysis
B) benchmarking
C) business portfolio analysis
D) breakeven analysis
E) prospecting
According to the Boston Consulting Group approach, ________ serves as a measure of company strength in the market.
A) relative market share
B) product development
C) market diversification
D) product attribute
E) market segmentation
By harvesting its SBU, a company would most likely be ________.
A) milking its short-term cash flow regardless of the long-term effect
B) selling it or phasing it out and using the resources elsewhere
C) investing just enough to hold the SBU's current market share
D) investing more in the business unit to build its share
E) diversifying its product line
The key businesses of Kimberley and Price consist of a division that produces and sells breakfast cereals and another that manufactures gardening tools. Each of these businesses is called a ________.
A) market segment
B) strategic business unit (SBU)
C) question mark
D) prospect
E) product portfolio
Lark Inc., an American electronics company, is currently reviewing new geographical markets to sell its highly popular LED televisions. By 2020, it plans to open new stores across all the major South Asian cities. Lark is most likely following a ________ strategy.
A) local marketing
B) market development
C) diversification
D) product adaptation
E) product development
The managers of Arrow, an American retail chain, are currently reviewing new demographic markets to sell the firm's current products. This is an example of ________.
A) market penetration
B) product development
C) mass marketing
D) market development
E) product adaptation
A women's apparel manufacturer in California recently acquired a Houston-based company that manufactures office furniture. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation
Ron and Gail strive to provide new offerings and entertainment options for their visitors. This type of strategy can be best described as ________.
A) market penetration
B) market development
C) product development
D) niche marketing
E) diversification
The marketing logic by which a company hopes to create customer value and achieve profitable customer relationships is referred to as the ________.
A) price
B) marketing implementation
C) value chain
D) marketing strategy
E) downsizing
Arrow is "a different kind of company, manufacturing a different kind of a car"; the RoadPro is "like nothing else." Statements such as these reflect a firm's ________.
A) portfolio
B) marketing segment
C) positioning
D) marketing mix
E) mission statement
Which of the following refers to the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors?
A) market diversification
B) market segmentation
C) downsizing
D) customer relationship management
E) prospecting
Effective positioning begins with ________.
A) pricing
B) diversification
C) differentiation
D) promotion
E) segmentation
Which of the following is true with regard to a SWOT analysis?
A) It classifies SBUs into four distinct categories.
B) It measures customer response to a new product.
C) It evaluates the company's overall strengths.
D) It evaluates the growth potential of a market segment.
E) It ignores the threats faced by a company while assessing its situation in the market.
A marketing plan begins with a(n) ________, which presents a brief summary of the main goals and recommendations of the plan for management review.
A) budget
B) opportunity analysis
C) threat analysis
D) executive summary
E) action program
Which of the following is true with regard to geographic organization?
A) It is the most common form of marketing organization.
B) Different marketing activities are headed by a functional specialist.
C) It requires salespeople to have international experience.
D) It reduces the overall efficiency of salespeople.
E) It allows salespeople to work with a minimum of travel time and cost.
All of the following steps pertain to the marketing control process EXCEPT ________.
A) setting goals
B) measuring performance
C) taking corrective action
D) defining the company's mission
E) evaluating the causes of gaps between expected and actual performance
Emerson Studios has designed its marketing organization along the lines of a ________ organization in which different marketing activities are headed by operational specialists.
A) geographic
B) product
C) functional
D) customer
E) market
True or False Questions
The major activity in strategic planning is product innovation( ).
"At Joe's Diner, we serve great burgers" is a product-oriented business definition.( )
"At Trader Joe's, our mission is to provide all our customers the best food and beverage values to be found anywhere, and the information to make informed buying decisions." This is a product-oriented business definition( ).
Market development involves company growth by identifying and developing new market segments for current company products.
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs is known as market diversification( ).
The marketing mix consists of people, property, planning, and position( ).
The four Cs concept adopts the buyer's view of the market.( )
Benchmarking refers to the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives( ).