Task: Most portfolio managers, when asked why they do not internationally diversify their portfolios, answer that "the risks are not worth the expected returns." Using the theory of international diversification, would you agree with this statement
Question 1. After developing a mission statement, a firm or organization next must perform:
A. relative market share division.
B. a situational analysis.
C. a market penetration strategy analysis.
D. a mission-accomplished ceremony.
E. cost-cutting surgery.
Question 2. As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including:
A. strengths.
B. opportunities.
C. strengths and weaknesses.
D. threats.
E. opportunities and threats.
Question 3. Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's:
A. strengths.
B. opportunities.
C. strengths and weaknesses.
D. threats.
E. opportunities and threats.
Question 4. Several years ago, the factory of the brake assembly supplier for Toyota burned, leaving Toyota with just a 24-hour supply of parts. The use of single-sources of supply is often a potential _______ for a company.
A. weakness
B. opportunity
C. situational selling problem
D. threat
E. strategic business promotion efficiency
Question 5. For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries create:
A. weaknesses
B. opportunities
C. situational buying problems.
D. threats.
E. strategic business production efficiencies
Question 6. In 2006, Ford Motor Company announced it would severely cut back automobile production. For parts companies supplying Ford Motor this represented a:
A. weakness
B. opportunity
C. situational selling problem
D. threat
E. strategic business promotion efficiency
Question 7. When identifying and evaluating opportunities, STP refers to:
A. simplification, teaching, and professing.
B. strategic, target, and preferences.
C. segmentation, targeting, and positioning.
D. situation, teamwork, and planning.
E. sustainable, temporary, and positions.
Question 8. Lionel is asked to conduct an STP analysis for his firm. The first thing he will do is:
A. generate a sum of segments.
B. target potential targets.
C. reposition existing segments.
D. divide the marketplace into subgroups.
E. conduct a SWOT analysis.
Question 9. Recently, Wal-Mart announced it would begin selling organic food products. In doing so, Wal-Mart is probably trying to:
A. gain government approval
B. attract a different market segment.
C. reduce lost sales to health food stores.
D. save the environment.
E. offset cost-based pricing pressure.
Question 10. Martha is opening an upscale day spa. She would like to identify groups of potential highincome customers in her area but knows income data is often difficult to access. Instead, she might consider using:
A. educational achievement at area schools.
B. real estate values in various neighborhoods.
C. national census income data.
D. location of banks in her area.
E. shopping mall statistics.
Question 11. For years, when considering new products, marketers at Celestial Seasonings would ask, "What will Stacy think?" Stacy represented 25-50 year old, educated, upper-income, infrequent television-watching, and heavy-reading women. Stacy was Celestial's major:
A. target position.
B. product supporter.
C. SBU.
D. market segment.
E. sustainable competitive advantage.
Question 12. Many of today's college graduates will make their livings providing goods and services to "baby boomers," the large group of Americans born in the period after World War II. Baby boomers are a ___________ market segment.
A. psychological
B. behavioral
C. social
D. product excellence
E. demographic
Question 13. After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in:
A. target marketing.
B. situation analysis.
C. diversification.
D. operational excellence calculations.
E. market penetration estimation.
Question 14. Dove was able to connect with important parts of their customer base by:
A. creating high impact events at a lower cost by using Internet approaches.
B. expanding beyond traditional constraints of advertising
C. connecting directly with customers via the internet.
D. All of the above
E. None of the above
Question 15. Michael Jordan, Tiger Woods, Michele Wie and other athletes are paid huge sums of money by companies for celebrity endorsements. If, endorsements by these athletes create distinct images among consumers of the companies' products, they can help with the firm's ___________ strategy.
A. cost-based promotion
B. vendor segmentation
C. positioning
D. sustainable competitive advantage
E. customer excellence strategy
Question 16. _______________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of what a product does or represents in comparison with competing products.
A. Cost-based promotion
B. Market segmentation
C. Sustainable competitive advantage
D. Positioning
E. Customer excellence strategy
Question 17. In a classic television advertisement, the Maytag repairman sat in an office bored, with nothing to do, implying Maytag products were so dependable, they never needed repairs. This ad was a significant part of the company's:
A. cost-based promotion.
B. market segmentation.
C. sustainable competitive share.
D. customer excellence strategy.
E. positioning.
Question 18. Imagine, you are in a gourmet food store choosing your favorite "comfort" food instead of being in a classroom taking this test. Notice the packaging, colors, labels, even the fonts used on labels. All of these efforts are part of marketers':
A. cost-based promotion.
B. market segmentation.
C. positioning.
D. customer excellence strategy.
E. targeting.
Question 19. When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities:
A. that build on their strengths relative to those of their competitors.
B. for diversification.
C. in international markets.
D. where value-based pricing can be ignored.
E. where customer excellence can be substituted with product excellence.
Question 20. Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms'____________ strategy.
A. cost-based promotion
B. market segmentation
C. positioning
D. customer excellence strategy
E. targeting
Question 21. After performing an STP analysis, marketers implement ________________ for each target market.
A. pricing strategies
B. promotion strategies
C. place strategies
D. product strategies
E. all of the above
Question 22. Marketing mix strategies will vary depending on what marketers believe their target markets:
A. will value.
B. can afford.
C. can sustain.
D. can be manipulated into buying.
E. position.
Question 23. At least one university allows recent graduates, who find they need additional education, to come back and take additional courses free. By offering additional educational services, the university is attempting to enhance their _____________ in the process of creating value for their customers.
A. penetration pricing
B. place strategy
C. pricing strategy
D. diversification
E. product
Question 24. In 2007, when Apple Computer Company introduced its new iPhone, the company hoped combining cellular telephone, Internet, and iPod technologies would:
A. create product value.
B. create pricing value.
C. expand global positioning.
D. lower supply chain management costs.
E. reduce regulatory oversight.
Question 25. The idea of value-based marketing requires firms to charge a price that:
A. covers costs and generates a modest profit.
B. includes the value of the effort the firm put into the product or service.
C. captures the value customers perceive they are receiving.
D. offers customer excellence above operational excellence.
E. positions the company during the control phase of the marketing plan.
Question 26. Most university bookstores take the price they paid for textbooks and add a standard markup, usually 25-35 percent. These university bookstores are using a _____________ pricing strategy.
A. value-based
B. cost-based
C. competitor-based
D. customer-based
E. product-based
Question 27. Marvin, owner of Marvin's Marine Service, used to work for the major boat company in town. When he started his own business, Marvin charged an hourly rate slightly less than the boat company. Marvin was using a __________ pricing strategy.
A. value-based
B. cost-based
C. competitor-based
D. customer-based
E. product-based
Question 28. Years ago, when Kodak began selling film in Japan, the company priced their film slightly lower than Fuji film. Sales were dismal. Market research indicated Japanese consumers perceived the lower-priced Kodak film as being inferior. Kodak was using pricing strategy, while Japanese consumers were thinking in terms of __________ pricing.
A. cost-based; value-based
B. value-based; competitor-based
C. competitor-based; cost-based
D. competitor-based; value-based
E. value-based; cost-based
Question 29. Movie theaters typically charge adult prices for anyone age 12 or over, while giving discounts to senior citizens. Theater owners are probably using a ____________ pricing strategy.
A. value-based
B. cost-based
C. competitor-based
D. management-based
E. product-based
Question 30. One of the reasons marketers frequently use cost-based or competitor-based pricing strategies is because they are:
A. easier for customers to understand.
B. simple to implement.
C. the best for profit maximization.
D. better than sustainable competitive advantage pricing.
E. operationally-based rather than product-based.
Question 31. In ________________ pricing, the firm first determines the perceived worth of the product from the customer's point of view and then prices accordingly.
A. product-based
B. cost-based
C. competitor-based
D. management-based
E. value-based
Question 32. One clothing manufacturer, with factories both in the U.S. and Mexico, recognized many Mexican consumers prefer American-made products. The company then produced higher-cost jeans in the U.S. so they could sell them at a premium in Mexico with a Made in USA label.
This firm was pursuing a ______________ pricing strategy.
A. promotion-based
B. cost-based
C. competitor-based
D. value-based
E. management-based
Question 33. Passengers on international air flights are often shocked to learn the variation in prices each passenger paid for the same ticket. The passengers are learning about ___________ pricing.
A. competitor-based
B. cost-based
C. value-based
D. management-based
E. product-based
Question 34. The difficulty in implementing value-based pricing is:
A. it is too simple and can easily be replicated by competitors.
B. it is sometimes hard to determine perceived value among customers.
C. the time it takes to estimate the cost of products.
D. government regulations may prevent such strategies.
E. consumers do not know what they value.
Question 35. Value-based pricing is one of the least understood areas of business decision-making, even though it is one of the few business activities with a direct impact on:
A. promotion.
B. distribution.
C. profits.
D. product assortment.
E. relative market mission
Question 36. Value creation through place decisions involves:
A. putting the product prominent place.
B. creative displays to capture consumers' attention.
C. pricing products with place in mind.
D. making the good or service available when and where the customer wants it.
E. all of the above
Question 37. E-books, in addition to being an alternative product form, provide __________ value creation through access via the Internet.
A. product
B. place
C. promotion
D. price
E. all of the above
Question 38. In recent years, cellular phone companies have worked hard to eliminate "dead zones," providing customers with service wherever they traveled. The cellular companies were focusing on __________ value creation.
A. product
B. price
C. promotion
D. place
E. all of the above
Question 39. In value-based marketing, promotion communicates the:
A. targeted creative solution.
B. operational excellence.
C. value proposition
D. relative market value.
E. sustainable comparative situation
Question 40. Metrics are used in marketing to:
A. convert statistics into a decimal-based reporting format for easier understanding outside of the U.S.
B. capture consumer perception and behavior in quantitative terms.
C. determine marketing department incentive bonuses based on the success of marketing initiatives.
D. convert quantitative data into qualitative reports
E. All of the above.
Question 41. In recent years, Internet marketers began paying for placement at the top of search engine key word results. These marketers are attempting to maximize ________ value creation.
A. product
B. price
C. promotion
D. place
E. all of the above
Question 42. In order to create effective value communication to target markets, marketers must first:
A. consider the cost of alternative media.
B. use the Internet.
C. redesign products to meet media outlet specifications.
D. understand their customers.
E. all of the above.
Question 43. When choosing marketing communication methods, the most effective and efficient option depends on:
A. the customers
B. the value created.
C. the message.
D. all of the above
E. none of the above
Question 44. When firms successfully implement poor strategies or poorly implement good strategies, it can make it difficult to:
A. generate cost-based pricing performance ratios.
B. evaluate performance and make adjustments.
C. increase product excellence while reducing customer excellence.
D. engage in strategic phasing analysis.
E. offer assistance to needy organizations.
Question 45. Craig sees his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we are doing." Craig is suggesting they ignore the ____________ of the marketing planning process.
A. evaluate performance
B. define the business mission.
C. situation analysis
D. implement marketing mix and resources.
E. identifying and evaluating opportunities.
Question 46. The first objective in the evaluate performance phase of the marketing planning process is to assess:
A. determine whether to raise or lower prices.
B. adjust advertising allocations.
C. find ways to cut costs.
D. why the performance goals were or were not achieved.
E. determine who should be promoted or terminated.
Question 47. Kathy reviews her division's quarterly results and sees some units exceeded goals while others did not. Next, she will attempt to determine why the performances varied and whether the variation:
A. created a net benefit or loss.
B. should be reported to senior executives or not.
C. consistent with the company's mission statement.
D. offers opportunities for diversification.
E. was due to factors within or outside the firm's control.
Question 48. Brad is reviewing the performance of his franchise sandwich store. Being a franchise he has access to comparative data from other stores. Brad will likely look at ____________ data for his other stores.
A. sales
B. gross margin
C. number of customers
D. coupon redemption
E. all of above
Question 49. Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals:
A. enables firms to make appropriate adjustments.
B. allows managers to promote their effectiveness.
C. offers insights into cost-based pricing value.
D. provides market researchers with insights into SBU superiority.
E. allows firms to better assess customer performance.
Question 50. Laura is reviewing sales data after a recent in store promotion of her company's diet products. The data show success in some stores and limited response in others. Laura will probably next review the company's:
A. profitability reports.
B. brand awareness study.
C. implementation program to see if the promotion was handled consistently in the different stores.
D. sales analysis in other territories.
E. analysis of national diet trends.