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MGMA01H3 (184)
Chapter 2


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Management (MGM)
David Perley

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following involves adapting a firm to take advantage of 1) _______ opportunities in its constantly changing environment? A) long-range planning B) short-range planning C) strategic planning D) annual planning E) media planning 2) When a firm develops and maintains a strategic fit between its goals 2) _______ and capabilities, it is performing ________. A) values planning B) strategic planning C) business-portfolio planning D) operations planning E) mission planning 3) Which of the following is the first step in strategic planning? 3) _______ A) define the company mission B) set objectives and goals C) develop the business portfolio D) plan marketing strategies E) identify threats and weaknesses 4) Which of the following is NOT a step in the strategic planning process? 4) _______ A) evaluating all members of the value chain B) defining the company mission C) designing the business portfolio D) setting company objectives and goals E) planning marketing and other functional strategies 5) Which of the following provides an answer to these questions: What is 5) _______ our business? Who are our customers? What do our customers value? What should our business be? A) marketing and functional strategies B) a mission statement C) a business portfolio D) objectives and goals E) operational strategies 6) ________ should be market oriented and defined in terms of ________. 6) _______ A) Annual plans; product needs B) Mission statements; customers' needs C) Long-range plans; company needs D) Objectives; competitors' threats E) Strategic plans; company needs 7) All of the following are accurate guidelines for a company's mission 7) _______ statement EXCEPT which one? A) A mission statement should emphasize the company's strengths in the marketplace. B) A mission statement should motivate employees. C) A mission statement should be specific. D) A mission statement should be narrow. E) A mission statement should be realistic. 8) A company's mission statement serves as a statement of ________. 8) _______ A) financial goals B) employee commitment C) values D) fact E) purpose 9) Which of the following is NOT a market-oriented business definition? 9) _______ A) "to make the Internet buying experience fast, easy, and enjoyable" B) "to be the guardian of our customers' financial dreams" C) "to sell tools and home repair and improvement items" D) "to deliver low prices every day" E) "to bring aspiration and innovation to every athlete in the world" 10) All of the following are examples of product-oriented mission 10) ______ statements, EXCEPT which one? A) "We provide online services." B) "We sell shoes." C) "We run theme parks." D) "We sell lifestyle and self-expression; success and status; memories, hopes, and dreams." E) "We rent hotel rooms." 11) Which of the following is the principle objective of a market-oriented 11) ______ mission statement? A) to satisfy basic supplier needs B) to satisfy basic customer needs C) to satisfy basic partnership needs D) to satisfy basic owner needs E) to satisfy basic stockholder needs 12) Revlon has clearly defined its "mission" of selling lifestyle and 12) ______ self-expression. In order for the firm to launch its strategic plan, the mission needs to next be turned into detailed ________ that guide each level of the company. A) supporting objectives B) sets of tactics C) sets of promotional tools D) sets of strategies E) product mixes 13) The collection of businesses and products that make up a company is 13) ______ called its ________. A) mission statement B) strategic business unit C) operational factor D) strategic plan E) business portfolio 14) Which of the following can be a company division, a product line 14) ______ within a division, or sometimes a single product or brand? A) a value delivery network B) a market C) the BCG D) an SBU E) a PLC 15) After management has identified the key businesses making up its 15) ______ company, what is the next step in portfolio analysis? A) completing short-range planning B) identifying SBUs C) assessing the attractiveness of its SBUs D) deciding whether to harvest any businesses E) identifying businesses in which to invest 16) The best known product portfolio planning method was developed by 16) ______ ________. A) the SRI Consulting Firm B) James P. Hess C) Harvard University D) Philip Kotler E) the Boston Consulting Group 17) Most portfolio analysis methods evaluate SBUs on two dimensions, 17) ______ namely ________ and ________. A) market share; strength of the SBU's position B) market growth rates; profits C) market diversification; relative market share D) market or industry attractiveness; strength of the SBU's position E) market penetration; market development 18) In the Boston Consulting Group approach, ________ provides a measure 18) ______ of market attractiveness. A) market development B) market growth rate C) market penetration D) relative market share E) market segmentation 19) In the Boston Consulting Group approach, ________ serves as a 19) ______ measure of company strength in the market. A) relative market share B) market segmentation C) market diversification D) market growth rate E) market development 20) The BCG growth-share matrix classifies four types off SBUs. They are ___ _____, ________, 20) ___ ________, ___ and ________. A) product; price; promotion; placement B) planning; implementing; leading; controlling C) stars; cash cows; question marks; dogs D) market penetration; market development; product development; diversification E) sales; market share; price; promotion 21) In the BCG approach, ________ are high-share, high-growth businesses 21) ______ or products. They need heavy investment to finance rapid growth. When their growth slows down, they turn into ________. A) stars; cash cows B) stars; question marks C) dogs; cash cows D) question marks; dogs E) cash cows; stars 22) ________ are low-growth, high share businesses or products. They 22) ______ generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment. A) Cash cows B) Dogs C) Question marks D) Stars E) Cats 23) In the BCG matrix, income from ________ can be used to help finance 23) ______ the company's question marks and stars. A) overseas operations B) SBU revenues C) low-share businesses D) dogs E) cash cows 24) The four possible strategies that can be pursued for each SBU are 24) ______ building, holding, ________, and ________. A) promoting; selling B) diversifying; penetrating C) downsizing; expanding D) harvesting; divesting E) developing; growing 25) Which of the following does NOT accurately reflect a problem with the 25) ______ BCG matrix approach? A) It focuses on planning for the future. B) It can be costly to conduct. C) It can be time consuming to implement. D) It focuses on classifying current businesses. E) It is difficult to define SBUs and measure market share and growth. 26) Unlike strategic-planning efforts of the past, which were conducted 26) ______ primarily by senior managers, today's strategic planning is ________. A) short-term oriented B) limitation-free C) centralized D) decentralized E) product oriented 27) To enter new global markets, a company like BASF can create new local 27) ______ partnerships within targeted countries. These are examples of ________. A) brand experiences B) value chains C) broad strategies for growth D) product development E) diversification 28) Which department in a company carries the primary responsibility for 28) ______ achieving profitable growth? A) product development B) marketing C) human resources D) accounting E) operations 29) Which of the following is a useful tool for identifying growth 29) ______ opportunities? A) the value chain B) the BCG matrix C) the business portfolio D) the product/market expansion grid E) the value delivery network 30) Making more sales to current customers without changing a firm's 30) ______ products is ________. A) diversification B) market penetration C) market attractiveness D) market development E) product development 31) Tim Hortons works to train people who come into Tim Hortons first 31) ______ thing in the morning for coffee and breakfast to return several times during the rest of the day. This effort by Tim Hortons management is an example of ________. A) market development B) diversification C) market penetration D) product adaptation E) product development 32) While a valuable planning tool, a problem with using the BCG matrix centres is that it 32) ___ focuses ___ on ________ A) financial issues instead of the customer B) the future instead of the present C) the customer instead of suppliers D) the present instead of the future E) the past instead of the present 33) A common practice among marketers is to identify and develop new 33) ______ markets for their existing products. This practice is called ________. A) market development B) market skimming C) market penetration D) product development E) dual adaptation 34) If Tim Hortons were to leverage its strong brand name onto products 34) ______ like sportswear that fit with its friendly, relaxed image, this would represent which strategy for growth? A) product development B) partner development C) diversification D) market development E) market penetration 35) Which of the following entails reducing the business portfolio by 35) ______ eliminating products that no longer fit the company's overall strategy? A) the BCG approach B) downsizing C) market segmentation D) product line extension E) market redesign 36) Which of the following is NOT a reason that a firm might want to 36) ______ abandon products or markets? A) The economic environment is showing signs of recovery. B) The firm has entered areas in which it does not have expertise. C) The firm has not properly researched foreign markets which it has entered. D) The market has changed, making some of the products less profitable. E) The firm has grown too rapidly. 37) Each department in a company that carries out value-creating activities 37) ______ can be thought of as a link in the company's ________. A) market development B) value delivery network C) value chain D) product development E) business portfolio 38) Jack Welch, former CEO at General Electric, said that "Companies can't 38) ______ give job security, only ________ can." A) efficiency B) growth C) good strategy D) customers E) development 39) Multinationals like Honda Motor Co. and Wal-Mart stores have 39) ______ designed programs to work closely with their suppliers to help them reduce their costs and improve quality. This illustrates the importance of an efficient ________. A) business portfolio B) value chain C) product mix D) value delivery network E) low-cost operator 40) Which of the following is the marketing logic by which a company 40) ______ hopes to achieve profitable customer relationships? A) price B) marketing strategy C) a consistent product mix D) the value delivery network E) differentiation 41) Lucy Ortiz is preparing a PowerPoint presentation of the marketing 41) ______ process to show at a sales meeting. ________ should appear in the centre of her diagram depicting marketing strategies and the marketing mix. A) Customer value and relationships B) Customer retention rates C) Company objectives D) Competitors E) Sales goals 42) A sound marketing strategy begins with which of the following? 42) ______ A) promotion B) differentiation C) SWOT analysis D) positioning E) customer analysis 43) Your firm is attempting to divide up the total market to determine the 43) ______ best segments it can serve. Which is the correct order of doing so? A) market segmentation, target marketing, market positioning B) market positioning, market segmentation, target marketing C) mass marketing, demographic segmentation, psychographic segmentation D) target marketing, market positioning, market segmentation E) market segmentation, market positioning, target marketing 44) The process of customer-driven marketing involves which of the 44) ______ following? A) problem identification; information search; decision; implementation B) market segmentation; target marketing; differentiation; positioning C) marketing analysis; planning; implementation; feedback D) analysis; targeting; implementation; control E) product; price; promotion; adaptation 45) Which of the following is the process of dividing a market into distinct 45) ______ groups of buyers with different needs, characteristics, or behaviours? A) differentiation B) marketing strategy C) market targeting D) positioning E) market segmentation 46) Your new employer has asked you, as a new marketing graduate, to 46) ______ develop a group of potential customers who might respond in a similar way to a given set of marketing efforts. You have been asked to develop a(n) ________. A) market strategy B) market C) undefined niche D) market segment E) target market 47) Which of the following involves evaluating each market segment's 47) ______ attractiveness and selecting one or more segments to enter? A) market targeting B) differentiation C) the market mix D) positioning E) market segmentation 48) Which of the following is the place a product occupies in the consumer's 48) ______ mind relative to competition? A) market segmentation B) placement C) position D) market targeting E) product promotion 49) Effective positioning begins with ________ the company's marketing 49) ______ offer in order to give consumers more perceived value. A) differentiating B) promoting C) placing D) pricing E) aligning 50) Which of the four Ps describes the goods-and-services combination the 50) ______ company offers to the target market? A) package B) price C) place D) promotion E) product 51) In the four Ps of the marketing mix, design, packaging, services, and 51) ______ variety all fall under the category of ________. A) promotion B) price C) place D) position E) product 52) Today the four Ps are compared to the four Cs. Product and place are 52) ______ called ________ and ________, respectively. A) customer solution; convenience B) communication; customer solution C) communication; convenience D) customer cost; convenience E) convenience; customer solution 53) In the marketing management functions, a SWOT analysis should 53) ______ ________ a marketing plan. A) coincide with B) follow C) precede D) evaluate E) take priority over 54) In a basic SWOT analysis the "T" stands for ________. 54) ______ A) timing B) trade C) tangible D) trust E) threats 55) In a basic SWOT analysis, the "S" stands for ________. 55) ______ A) satisfactions B) strategy C) strengths D) solutions E) situation 56) In SWOT analysis, which of the following would be considered a 56) ______ strength? A) internal limitations B) trends in the market C) internal resources D) factors that challenge the company's performance E) favourable factors in the environment 57) In SWOT analysis, which of the following refers to factors in the 57) ______ external environment? A) weaknesses B) strengths C) opportunities D) strategies E) trends 58) The main section of the marketing plan presents a detailed ________ 58) ______ analysis of the current marketing situation. A) when, where, how B) competitor C) SWOT D) economic E) who, when, where 59) A marketing plan begins with an executive summary, which quickly 59) ______ overviews goals and ________. A) budgets B) promotions C) recommendations D) obstacles E) controls 60) According to the textbook, your boss is most likely referring to ________ 60) ______ when she mentions "doing things right." A) efficiency B) objectives C) planning D) strategy E) implementation 61) IBM has its sales and marketing people assigned to markets in specific 61) ______ countries, regions, and districts. This is an example of which type of marketing organization? A) functional B) product C) geographic D) divisional E) psychographic 62) Which of the following is the most common approach to marketing 62) ______ organization? A) combination B) geographic C) functional D) product management E) divisional 63) Berman Electric, a chain of 18 appliance stores, has a marketing org anizati on in 63) ___ which ___ specialist s head different marketin g activities. What is this type of organizat ion called? A) geographic B) product C) market D) functional E) organic 64) Modern marketing departments are arranged in the following ways, 64) ______ EXCEPT which one? A) market management organization B) strategic management organization C) product management organization D) geographic organization E) functional organization 65) The ________ organizational format was first used by Procter and 65) ______ Gamble in 1929. A) product management B) market management C) functional D) customer management E) geographic management 66) The ________ organizational system's main advantage is that the 66) ______ company is organized around the needs of specific market segments. A) functional B) geographic C) product management D) market management E) vertical 67) An increasingly large number of firms are changing their organizational 67) ______ focus from ________ to ________. A) brand management; customer management B) geographic management; functional management C) product management; functional management D) product management; geographic management E) global management; regional management 68) Evaluating the results of marketing strategies and plans and taking 68) ______ corrective action to ensure that objectives are attained is called ________. A) marketing control B) developmental control C) operating control D) strategic control E) efficiency 69) The marketing control process entails the following steps in order: 69) ______ setting goals, ________, evaluating performance, and ________. A) measuring performance; taking corrective action B) taking corrective action; measuring performance C) achieving goals; measuring performance D) evaluating goals; measuring performance E) taking corrective action; following up 70) Which of the following is NOT a step in the marketing control process? 70) ______ A) evaluating the causes of gaps between expected and actual performance B) defining the mission C) setting goals D) measuring performance E) taking corrective action 71) Ensuring that the company achieves the sales, profits, and other goals 71) ______ set out in its annual marketing plan is the purpose of ________. A) marketing control B) strategic control C) operating control D) ROMI E) a marketing audit 72) Which of the following involves looking at whether a company's basic 72) ______ strategies are well matched to its opportunities? A) strategic control B) portfolio analysis C) ROMI D) marketing control E) operating control 73) Which of the following is a comprehensive and systematic analysis of a 73) ______ company's environment, objectives, strategies, and activities that is conducted by an outside and objective party? A) a marketing mix analysis B) a marketing plan C) a marketing audit D) SWOT analysis E) a portfolio analysis 74) Which of the following measures the profits generated by investments 74) ______ in marketing activities? A) an executive summary B) SWOT analysis C) a budget D) a marketing audit E) marketing ROI 75) Which of the following would NOT be useful in determining marketing 75) ______ ROI? A) SWOT analysis B) brand awareness C) a marketing dashboard D) market share E) customer equity TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 76) Mission statements should be realistic and general in nature. 76) ______ 77) ABC Fortunes has just developed a formal statement of its purpose. This 77) ______ firm has put together a mission statement. 78) Mission statements should both emphasize the company's strengths in 78) ______ the marketplace and be motivating. 79) At Zellers, "we offer products and services that deliver superior style 79) ______ and value to Canadians.," is a product-oriented business definition. 80) At Nike, "we sell athletic shoes and apparel" is a market-oriented 80) ______ business definition. 81) A firm's mission should always be stated as making more sales or 81) ______ profits. 82) The major activity in strategic planning is strategic business unit 82) ______ planning, whereby management evaluates the products and businesses making up the company. 83) An SBU is a company division or product line, never a single product or 83) ______ brand. 84) The purpose of strategic planning is to find ways in which your 84) ______ company can best use its strengths to take advantage of attractive opportunities in the environment. 85) In the BCG matrix, "dogs" are low-growth businesses and products that 85) ______ do not generate enough cash to maintain themselves. 86) Question marks in the BCG matrix require a lot of cash to hold their 86) ______ share, let alone increase it. 87) The growth strategy of diversification involves offering modified or 87) ______ new products to current markets. 88) When an organization identifies and develops new markets for its current products 88) ___ and ___ services, it is engaged in market develop ment. 89) When a firm finds products or businesses that no longer fit its overall 89) ______ strategy, it must carefully milk, harvest, or better develop them. 90) In today's marketplace, competition increasingly takes place between 90) ______ entire value delivery networks rather than between individual competitors. 91) To improve its value delivery network, a company needs to examine the 91) ______ value chains of its suppliers and distributors. 92) Mandros International Foods evaluates each market segment's 92) ______ attractiveness and selects one or more segments to enter when considering adding new lines of imported foods. Mandros is engaged in selective marketing. 93) The image of a product in the minds of consumers is called market 93) ______ segmentation. 94) A market segment consists of consumers who respond in different ways 94) ______ to a given set of marketing efforts. 95) Holiday Inn has divided the total customer market into smaller 95) ______ segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called targeting. 96) When a company positions its product, it should first identify possible 96) ______ customer value differences within a market segment that could be the basis of a competitive advantage for the product. 97) The marketing mix consists of product, price, place, positioning, and 97) ______ promotion. 98) Guided by marketing strategy, the company designs a marketing mix 98) ______ made up of factors under its control: product, price, place, and promotion. 99) One valid criticism of the four Ps concept is that services are not 99) ______ considered. 100) The four Ps concept takes the seller's view of the market. 100) _____ 101) The four marketing management functions are: analysis, planning, 101) _____ implementation, and control. 102) A company can divest an SBU by selling it or phasing it out and using 102) _____ the resources elsewhere. 103) A brief summary of the main goals and recommendations of the plan 103) _____ belongs in the Objectives and Issues section of a marketing plan. 104) The CMO heads up the company’s entire marketing operation and 104) _____ represents marketing on the company’s top management team. 105) The marketing audit covers all major marketing areas of a business, not 105) _____ just a few trouble spots. 106) In measuring financial ROI, both the R and the I are uniformly 106) _____ measured in dollars. But there is as of yet no consistent definition of marketing ROI. ESSAY. Write your answer in the space provided or on a separate sheet of paper. 107) Define strategic planning. Discuss the steps involved. 108) What is business portfolio planning? Discuss how a company might use the Boston Consulting Group's product portfolio analysis method. 109) Describe some of the problems with matrix approaches. 110) The BCG is a useful approach to evaluate current businesses. Describe a device that a firm could use to identify future growth opportunities. 111) What does the term "value-delivery network" mean? Explain. 112) Define marketing strategy. Discuss the steps in formulating marketing strategy. 113) Explain why, according to the authors of your text, the four Ps concept of the marketing mix takes a seller's view of the market, not the buyer's view. How should marketers consider the buyer's view? 114) Define marketing planning. Briefly outline the major steps in a marketing plan. 115) Marketing departments are organized in several ways. Discuss the most common forms of marketing organizations. 116) Briefly discuss how marketers measure return on marketing investment, explaining why this figure can be difficult to assess. 117) Discuss how Sun-Rype Products Ltd., headquartered in Kelowna, British Columbia, evolved through its use of product-based and geographic segmentation. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 118) NASCAR is the number-one televised motorsport in Canada. It is a valuetransl premier marketing organization that knows how to create customer that ates into deep 118) ____ and
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