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Chapter 2
Company and Marketing Strategy: Partnering to build customer relationships
1. Adapting the firm to take advantage of opportunities in its constant changing environment is
called _____.
a. Long-range planning
b. Short-range planning
c. annual planning
d. strategic planning
2. What is our business? Who is our customer? What do our customers value? What should
our business be? All these simple-sounding questions define a firm’s _____.
a. objectives and goals
b. mission statement
c. business portfolio
d. marketing and functional strategies
3. All of the following are accurate descriptions of a company’s mission statement, except which
one?
a. Mission statement should be realistic.
b. Mission statement should be broad.
c. Mission statement should fit the market environment.
d. Mission statements should be written for ‘public relations’ purposes.
4. The collection of businesses and products that make up a company is called its _____.
a. strategic business unit
b. mission statement
c. strategic plan
d. business portfolio
5. _____ can be a company division, a product line within a division, or sometimes a single
product or brand.
a. A market
b. The BCG
c. An SBU
d. All of the above are correct
6. The best known product portfolio planning method was developed by _____.
a. Philip Kotler
b. Harvard University
c. SRI Consulting firm
d. Boston Consulting Group
7. Most portfolio analysis methods evaluate SBUs on two dimensions, namely _____ and _____.
a. market share; sales
b. market growth rate; relative market share
c. market attractiveness; market growth rate
d. none of the above is correct
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8. In the BCG approach, _____ are high share-high growth businesses or products. They need
heavy investment to finance rapid growth. When their growth slows down, they turn into
_____.
a. cash cows; stars
b. question marks; dogs
c. stars; question marks
d. stars; cash cows
9. Making more sales to current customers without changing a firm’s products is _____.
a. market development
b. market growth
c. market penetration
d. product development
10. _____ are low-growth, high share businesses or products. They generate a lot of cash that the
firm uses to pays its bills and support other SBUs that need investment.
a. Stars
b. Cash cows
c. Question Marks
d. Dogs
11. Management must think hard about which _____ it should try to build into stars and which
should be phased out.
a. "Stars"
b. "Dogs"
c. "Question Marks"
d. "Cash cows"
12. Disney is identifying and developing new markets for its theme parks. Disney is exploring
possibilities for _____.
a. market penetration
b. market development
c. Japan
d. product development
13. The process of dividing a market into distinct groups of buyers with different needs,
characteristics, or behaviors is called _____.
a. target marketing
b. positioning
c. marketing strategy
d. market segmentation
14. _____ entails reducing the business portfolio by eliminating products that no longer fit the
company’s overall strategy.
a. Market segmentation
b. BCG
c. Product line extension
d. Downsizing
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15. ______ involves evaluating each market segment’s attractiveness and selecting one or more
segments to enter.
a. Market segmentation
b. Product differentiation
c. Target marketing
d. all of the above are correct
16. Effective positioning begins with actually _____ the company’s marketing offer so that it
gives consumers more value.
a. pricing
b. aligning
c. differentiating
d. promoting
17. Jack Welch, GE’s former CEO once told his employees: “Companies can’t give job security.
Only _____ can!”
a. CEOs
b. government
c. customers
d. all of the above
18. _____ involves looking at whether a company’s basic strategies are well matched to its
opportunities.
a. Operating control
b. Marketing audit
c. Marketing control
d. Strategic control
19. The marketing control process entails the following steps in order: setting goals, _____,
evaluating performance and _____.
a. evaluating goals; measuring performance
b. achieving goals; measuring performance
c. taking corrective action; measuring performance
d. measuring performance; taking corrective action
20. All of the following are steps in the strategic planning process, except which one?
a. Defining the company mission.
b. Setting company objectives and goals
c. Planning marketing and other functional strategies
d. Collaborating with suppliers on all fronts
21. Monsanto operates in many businesses, including pharmaceuticals and food products. The
company defines its _____ as creating “abundant food and a healthy environment.”
a. objectives
b. goals
c. product portfolio
d. mission
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22. The mission statement of the Girl Scouts of America reads as follows: “where girls grow
strong.” This reflects the fact that mission statements must _____.
a. be realistic
b. be motivating
c. be narrow
d. fit the market environment
23. All of the following are examples of market-oriented mission statements, except which one?
a. We make the Internet buying experience fast, easy and enjoyable.
b. We create customer connectivity anytime, anywhere
.
c. We create fantasies.
d. We hold online auctions.
24. All of the following are examples of product-oriented mission statements, except which one?
a. At America Online we provide online services.
b. In Disney, we run theme parks.
c. At Nike, we sell shoes.
d. At Wal-Mart, we deliver low prices every day.
25. _____ should be market oriented and defined in terms of _____.
a. Strategic plans; company needs
b. Annual plans; product needs
c. Long-range plans; company needs
d. Mission statements; customer needs
26. Starbucks has introduced a debit card, which lets customers prepay for coffee and
snacks. Starbucks management is considering whether the company can achieve deeper
_____.
a. market development
b. product development
c. diversification
d. market penetration
27. All of the following are reasons that a firm might want to abandon products or
markets, except which one?
a. The market environment might change, making some of the products
less profitable.
b. A strong competitor has opened shop next door.
c. The economic climate is showing signs of recovery.
d. The firm has grown too fast.
28. Companies increasingly are partnering with other members of the supply chain to
improve the performance of the customer _____.
a. experience
b. satisfaction
c. value-delivery network
d. none of the above
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29. A company's marketing strategy entails three steps: _____, _____ and _____.
a. product; price; promotion
b. market segmentation; target marketing; market positioning
c. marketing analysis; planning; implementation
d. analysis; implementation; control
30 The first step in the marketing control process is to _____.
a.
measure performance
b.
evaluate performance
c. set goals
d. take corrective action
31. The steps in the marketing control process include all, except which one?
a.
setting goals
b.
measuring performance
c.
taking corrective action
d. defining the mission
32. Modern marketing departments are arranged in the following ways, except which
one?
a.
functional organization
b.
market management organization
c.
product management organization
d.
vertical organization
33. In the BCG matrix, income from _____ will help finance the company's question
marks and stars.
a. dogs
b. SBUs
c. cash cows
d. sales revenue
34. In the Boston Consulting Group approach, _____ provide(s) a measure of market
attractiveness.
a. relative market share
b. SBUs
c. cash cows
d. market growth rate
35. In the Boston Consulting Group approach, _____ serve(s) as a measure of company strength in
the market.
a. relative market share
b. SBUs
c. cash cows
d. market growth rate
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ANSWERS
1-5 d b b d c
11-15 c b d d c
21-25 d d d d d
31-35 d d c d a
6-10 d b d c b
16-20 c c d d d
26-30 d c c b c
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