Which of the following statements is true about strategic planning

True

In the context of marketing, an exchange refers to people giving up something in order to receive something else they would rather have.

False

. A production-oriented firm focuses on satisfying customer wants and needs.

True

A market-oriented organization states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives.

False

. A market-oriented organization focuses on making products identical to its competitors' offerings.

True

The sales orientation extends the marketing concept by acknowledging that some products that customers want may not really be in their best interests or the best interests of society as a whole.

false

Relationship marketing assumes that many consumers and business customers prefer to switch relationships among different organizations rather than continuing with just one provider.

False

A market oriented organization targets its products at "everybody" or "the average customer"

True

A local grocer groups his customers into specific groups based on what they buy and when they shop. The grocer then schedules shipments of specific items based on these customer segments and offers different promotions to different customer groups. This is an example of customer relationship management

true

Teamwork entails collaborative efforts of people to accomplish common objectives.

false

Marketing career opportunities do not exist in nonbusiness organizations.

D

. Which of the following statements is true of marketing?​

a.
​It is more of a philosophy rather than an organization function.

b.
​It is focused on just selling goods, services, and/or ideas.

c.
​It rewards the seller and not the buyer of a transaction.

d.
​It focuses on delivering value and benefits to customers.

B

​Researchers at Fresnas Inc. invented a new form of glass that filters harmful rays of sunlight and blocks heat. Without researching the market conditions, Fresnas Inc. went ahead and manufactured windshields with the new glass. It hopes that customers will like its new product. In this scenario, Fresnas Inc. has adopted a _____.

a.
​sales orientation

b.
​production orientation

c.
​​market orientation

d.
​societal marketing orientation

B

Identify a true statement about production-oriented firms.

a.
​They do not focus on their internal capabilities.

b.
​They lack an understanding of the needs and wants of the marketplace.

c.
​They focus on their customers and have quick cycle times.

d.
​They determine what products their customers want and then produce them.

a

​A firm would benefit from production orientation when _____.

a.
​it considers the needs of the marketplace

b.
​the market demand is less than the products supplied by the firm

c.
​it hopes that the product it produces is something customers want

d.
​it focuses on what company management thinks should be produced

C

Which of the following is a sales-oriented organization?​

a.
​Fournotts Corp. that produces what the company management thinks should be produced

b.
​Magnira Corp. that understands the needs and wants of the marketplace

c.
​Fillets Inc. that believes in the philosophy that aggressive sales techniques can result in high sales

d.
​Laelle Inc. that believes that a sale is based on a customer's decision to purchase a product

D

Which of the following statements is true of a sales orientation?

a.
​Consumers can be convinced to buy goods or services even though they do not need them.

b.
​The needs and wants of the marketplace is thoroughly understood.

c.
​Sales-oriented firms give maximum emphasis to society's long-term best interests.

d.
​Intermediaries are encouraged to push manufacturers' products aggressively.

B

Which of the following is a similarity between a production orientation and a sales orientation?

a.
​Both ignore the importance of assessing a firm's internal capabilities.

b.
​Both lack an understanding of the needs and wants of the marketplace.

c.
​Both place little emphasis on the assessment of manufacturing plants and facilities.

d.
​Both fail in a market where demand exceeds supply.

B

Which of the following is a drawback of the sales-orientation philosophy?​

a.
​It gives excessive importance to the needs and wants of the marketplace.

b.
​It cannot convince people to buy goods that are neither wanted nor needed.

c.
​It places little emphasis on the assessment of manufacturing plants and facilities.

d.
​It gives importance to the production function over other functions.

a

Which of the following statements is true of the marketing concept?

a.
​It states that an organization should satisfy customer wants and needs while meeting organizational objectives.

b.
​It overlooks the importance of understanding the competitive arena and strengths and weaknesses of competition.

c.
​It states that firms should give maximum importance to aggressive promotional and advertising activities.

d.
​It states that marketing solely means selling things and collecting money.

C

The management of Leyton Electronics Inc. always favors market orientation over the other marketing management philosophies. In this case, which of the following is most likely to be true of Leyton Electronics Inc.?

a.
​Leyton Electronics Inc. overlooks the importance of market research.

b.
​Leyton Electronics Inc. manufactures products that are similar to its competitors' offerings.

c.
Leyton Electronics Inc. satisfies its customers' wants and needs legally and responsibly.​

d.
​Leyton Electronics Inc. lacks an understanding of its competitors' strengths and weaknesses.

B

Firms that are _____ assume that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product.

a.
​exchange oriented

b.
​market oriented

c.
​sales oriented

d.
​production oriented

C

Unlike a production-oriented firm, a market-oriented firm:

a.
​uses aggressive sales techniques to increase sales.

b.
​focuses on its internal capabilities rather than the needs of marketplace.

c.
​focuses on satisfying customer wants and needs.

d.
​produces what company management thinks should be produced.

C

Which of the following strategies is most closely associated with the societal marketing orientation?

a.
​Competing in the market

b.
​Fostering opportunism

c.
​Using clean energy sources

d.
​Increasing overhead production costs

C

Allied Inc., a beverage manufacturer, follows a societal marketing orientation. It now wants to revamp its existing containers as they were found to be harmful to its users. In this case, Allied Inc. will:

a.
​change the label of the old containers and use them.

b.
​sell containers that will leave high amounts of chemical wastes when burned.

c.
​produce containers that are less toxic than its previous containers.

d.
​manufacture containers that cannot be reused.

A

Unlike the personnel in market-oriented firms, the personnel in sales-oriented firms:

a.
​tend to be inward looking.

b.
focus on making what the market wants.

c.
​enhance individuals' and society's long-term best interests.

d.
​determine the needs of both the final buyer and intermediaries.

A

Nessca Corp. manufactures electronic gadgets. It instructs its marketing team to competitively advertise and promote its gadgets. The company, instead of believing in market research, believes that the market will absorb more products if customers are made aware of the products. The workforce of Nessca Corp. is most likely to:

a.
​be inward looking, focusing on selling what the firm makes.

b.
​take responsibility for its customers' well-being and interests.

c.
​assume that sales depend on a customer's decision to purchase a product.

d.
​focus on determining the needs of its customers rather than selling aggressively.

D

Livin' Styles is a home décor company well-known for its varieties of designs. The management of Livin' Styles collaborates with its customers and co-creates designs. This is an example of _____.

a.
​following sales orientation

b.
​focusing on environmental value

c.
​delegating authority

d.
​creating customer value

D

A firm that extensively uses relationship marketing strategies is most likely to:

a.
​focus on the internal rather than the external business environment.

b.
​rely on aggressive sales strategies.

c.
​focus on short-term goals of increasing sales.

d.
​encourage teamwork among employees.

A

A market-oriented firm defines its business in terms of:

a.
​the benefits its customers seek.

b.
​goods and services.

c.
​minimal promotion for high-quality products.

d.
​targeting the average customer.

d

​Unlike a market-oriented firm, a sales-oriented firm:

a.
​puts customers at the center of its business.

b.
​focuses on relationship marketing strategies.

c.
​gives little emphasis to promotion activities.

d.
​targets its products at the average customer.

B

Which of the following statements is true of customer relationship management?

a.
​It involves targeting the average customer or everybody.

b.
​It involves establishing and tracking customer interactions with a company.

c.
​It considers all customers as one large group that should be targeted with a single promotional strategy.

d.
​It is used by sales-oriented firms to convince customers to buy their products.

A

. ​Which of the following statements is true of customer relationship management?

a.
​It involves linking all processes of a company from its customers through its suppliers.

b.
​It tries to convince potential customers to buy, even if the seller knows that the customer and the product are mismatched.

c.
​It is used more by sales-oriented firms than market-oriented firms.

d.
​It is most extensively used by production-oriented firms.

D

Which of the following is used in customer relationship management?

a.
​Sales-orientation philosophy

b.
​Production-oriented philosophy

c.
​Communicator valence

d.
​On-demand marketing

C

Which of the following statements is true of on-demand marketing?​

a.
​It requires firms to focus on the internal rather than the external business environment.

b.
​It gives maximum emphasis to aggressive personal selling strategies.

c.
​It is aimed at enhancing customer relationships.

d.
​It is used by sales-oriented firms.

c

Which of the following statements is true of a sales-oriented firm?

a.
​It carefully identifies market segments.

b.
It extensively uses relationship marketing strategies.​

c.
It extensively uses personal selling and advertising.​

d.
​It increases sales by creating customer value and satisfaction.

B

Which of the following statements is true of marketing?​

a.
​A consumer does not pay for the marketing costs.

b.
​Marketing offers great career opportunities in business and nonbusiness organizations.

c.
​Only two percent of the entire civilian workforce in the U.S. performs marketing activities.

d.
​Marketing is limited to the people of the marketing department of a firm.

False

Unlike an operating decision, a strategic decision probably will not have a big impact on the long-run profitability of the company.

a.
True

b.
False

True

A strategic business unit (SBU) is a single business or a collection of related businesses.

a.
True

b.
False

False

Unlike product development, market development involves opening businesses in markets that are already served by separate, well-established companies.

True

Marketing managers rely on customer databases for effective implementation of the market penetration strategy.

a.
True

b.
False

False

Eldams Inc., a technological firm, started producing a new gaming console for its domestic market. This shows that Eldams Inc. has adopted a diversification strategy.

a.
True

b.
False

True

According to Ansoff's strategic opportunity matrix, both product development and diversification entail creating new products.

a.
True

b.
False

False

A diversification strategy is ideal when a firm is entering unfamiliar markets.

a.
True

b.
False

True

8. According to the Boston Consulting Group's (BCG's) portfolio matrix, a star is a fast-growing market leader.

a.
True

b.
False

False

Fresnas Inc. introduced a new line of smartphones in the market. Since it generates huge profits and needs more financing, the new line of smartphones can be categorized as dogs.

a.
True

b.
False

False

RegiSure is a strategic business unit that shows low growth but has a dominant market share. Since it has a dominant market share, it should be additionally financed despite its low growth.

False

According to the Boston Consulting Group's (BCG's) portfolio matrix, a dog shows rapid growth but poor profit margins.

False

If an organization has a strategic business unit that has been classified as a star, harvesting would be an appropriate goal.

False

Marketing myopia means long-term thinking.

True

Environmental scanning refers to the process of collecting and interpreting information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

True

A competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition.

a.
True

b.
False

False

The key to having a competitive advantage is the ability to imitate a competitor's strategy.

a.
True

b.
False

True

A company sells paper stationery made of recycled materials that no other paper manufacturing company in the market has the ability produce. This company has a competitive advantage.

a.
True

b.
False

False

A company's skills include patents, copyrights, and technology that are superior to those of the competition.

a.
True

b.
False

False

firm's assets are functions—such as customer service and promotions—that the firm performs better than its competitors.

True

Imitating a rival's competitive advantage requires the company to first identify the rival's competitive advantage.

a.
True

b.
False

true

Marketing objectives must be consistent with and indicate the priorities of the organization.

a.
True

b.
False

True

Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

a.
True

b.
False

True

In a target market strategy, identifying the market segment or segments begins with a market opportunity analysis (MOA).

a.
True

b.
False

false

Market segments cannot be differentiated by demographic characteristics

False

Market segments cannot be differentiated by ethnicity and multicultural aspects.

a.
True

b.
False

True

Individuals in the age group of 11 to 16 years who extensively use the internet is an example of a market segment.

a.
True

b.
False

True

The term marketing mix refers to a unique blend of product, place (distribution), promotion, and pricing strategies (often referred to as the four Ps) designed to produce mutually satisfying exchanges with a target market.

a.
True

b.
False

True

A task force is a tightly organized unit under the direction of a manager who, usually, has broad authority.

a.
True

b.
False

False

Strategic planning is just an annual exercise.

a.
True

b.
False

C

Which of the following statements is true of strategic planning?

a.
​The goal of strategic planning is to create daily operational schedules for first-line workers.

b.
​Strategic decisions require short-term commitments of resources.

c.
​A good strategic plan can help protect and grow a firm's resources.

d.
Stra tegic planning lacks an understanding of customers and the market.

A

Which of the following statements is true of strategic planning?

a.
will have its own return on investment​

b.
​ will share the same goals and use the same strategies as Fourlotts Inc

c.
will plan collaboratively with Fourlotts Inc.'s other SBUs​

d.
​ will refrain from performing manufacturing functions

a

When properly created, a strategic business unit (SBU)

a.
has a specific target market.​

b.
​ plans collaboratively with other SBUs of the company

c.
​ has no competitors.

d.
​ shares the mission of its parent company.

A

Magnira Inc. plans to implement a market penetration strategy to increase its market share. According to Ansoff's strategic opportunity matrix, which of the following is most likely to happen?

a.
Magnira Inc. will enter markets that are already served by separate companies.​

b.
Magnira Inc. will target existing customers rather than new customers.​

c.
​ Magnira Inc. will create new products for the markets it has penetrated.

d.
Magnira Inc. will move away from its core capabilities, and it will traverse a range of change.​

C

According to Ansoff's strategic opportunity matrix, which of the following factors is associated with market development?​

a.
​ Limiting the production of products

b.
​Increasing the prices of products

c.
​ Adding new uses to products

d.
​ Limiting resources used for promotion

B

Laelle Corp. is a company that produces large automotive spare parts. It has three offices in the country. According to Ansoff's strategic opportunity matrix, if Laelle Corp. follows a market development strategy,​

a.
it creates new products for its present markets​

b.
it focuses on promoting new uses for old products​

c.
it focuses on attracting existing customers rather than new customers​

d.
​it ventures into a new business and shut down its existing business

B

According to Ansoff's strategic opportunity matrix, unlike market development, product development:​

a.
focuses on attracting present customers to existing products.​

b.
​involves creating new products for present markets.

c.
involves entering new markets as competitors.​

d.
uses existing assets to provide added convenience to existing customers.

C

Choqlate King Inc. is a large company that produces and sells chocolate bars. It plans to adopt a product development strategy. In this case, which of the following is most likely to happen?

a.
​It will focus on attracting new and retaining existing customers.

b.
​It will create competition by lowering the prices of its chocolates.

c.
​It will introduce a low-fat chocolate that has zero cholesterol.

d.
​It will use existing assets to provide added convenience to existing customers.

A

According to Ansoff's strategic opportunity matrix, a firm that adopts a diversification strategy:

a.
​will profit if it enters a new market with little competition.

b.
​will be free from risks in unfamiliar markets.

c.
​will decrease the prices of existing products.

d.
​will sell modified products to existing customers in existing markets.

A

Apcon Mobiles Inc. is a popular cell phone manufacturing company. To acquire new customers, it decides to launch its own sim cards in new markets. According to Ansoff's strategic opportunity matrix, which of the following is true of Apcon Mobiles Inc.?

a.
​Apcon Mobiles Inc.'s entry into unfamiliar markets is likely to be risky.

b.
​Apcon Mobiles Inc. follows a product development strategy.

c.
​Apcon Mobiles Inc.'s strategy can be implemented by using customer databases.

d.
​Apcon Mobiles Inc.'s entry into a market with high competition is likely to be successful.

D

​In the context of the innovation matrix, decisions taken at the _____ level implement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands.

a.
​divestment

b.
​diversification

c.
​adjacent innovation

d.
​core innovation

D

In the context of the Boston Consulting Group's (BCG's) portfolio matrix, a _____ is a strategic business unit that generates more cash than it needs to maintain its market share.

a.
​problem child

b.
​dog

c.
star​

d.
​cash cow

C

In the context of the Boston Consulting Group's (BCG's) portfolio matrix, which of the following is a similarity between stars and cash cows?

a.
​Both have rapid growth potential but poor profit margins.

b.
​Both have a low growth potential.

c.
​Both have a high market share in their respective markets.

d.
​Both have a low market share in their respective markets.

A

In the context of the Boston Consulting Group's (BCG's) portfolio matrix, which of the following is a similarity between stars and question marks?

a.
​Both operate in a high-growth industry.

b.
​Both operate in a low-growth industry.

c.
​Both have a high market share in their respective markets.

d.
​Both have a low market share in their respective markets.

D

In the portfolio matrix, a _____ has low growth potential and a small market share.

a.
​question mark

b.
​problem child

c.
​star

d.
​dog

B

In the context of the Boston Consulting Group's (BCG's) portfolio matrix, which of the following is a similarity between cash cows and dogs?

a.
​Both operate in high-growth markets.

b.
​Both operate in low-growth markets.

c.
​Both have a high market share in their respective markets.

d.
​Both have a low market share in their respective markets.

B

In the context of the Boston Consulting Group's (BCG's) portfolio matrix, unlike question marks, dogs:

a.
​are suitable for a holding strategy.

b.
​have a small market share.

c.
​operate in a high-growth market.

d.
​show rapid growth but poor profit margins.

B

48. ​_____ is the strategy of preserving market share so that an organization can take advantage of the very positive cash flow.

a.
​Building

b.
​Holding

c.
​Harvesting

d.
​Divesting

C

The basic goal of _____ is to increase the short-term cash return without too much concern for the long-run impact.

a.
​building

b.
​holding

c.
​harvesting

d.
​divesting

C

​Issues such as product lines, promotional communications, and pricing are all delineated in the _____.

a.
​statement of qualification

b.
​article of incorporation

c.
​marketing plan

d.
​financial statement

C

Which of the following statements is true of a marketing plan?

a.
​It is a set of orally communicated rules and is seldom written down.

b.
​It is developed independently of the external business environment.

c.
​It defines the business mission and objectives.

d.
​It lacks the elements of advanced strategic planning.

A

Which of the following statements is true of an effective business mission statement?

a.
​It is based on an analysis of anticipated environmental conditions.

b.
​It is kept confidential from customers and stakeholders.

c.
​It should define a business in terms of goods and services rather than in terms of the benefits customers seek.

d.
​It is stated after the details of a marketing plan are developed.

D

Delat Corp. is a large corporation that offers several product lines. On the company's Web site, the following content is highlighted: "The aim of our business is to achieve profitability by offering our customers high-quality products that are manufactured in a cost-effective manner. Our goals are to provide value to our customers, serve the community, and preserve the environment." This content is most likely to be Delat Corp.'s _____.​

a.
​article of incorporation

b.
​statement of qualification

c.
​scenario planning

d.
​mission statement

A

When a company defines its mission statement based on its short-term objectives, it is said to be suffering from _____.

a.
​marketing myopia

b.
​marketing inertia

c.
​marketing dissonance

d.
​marketing blockage

B

Rues and West Bros., an ammunition manufacturer, defines its mission as being in the ammunition-production business rather than in the arms industry. In the given scenario, Rues and West Bros. is suffering from _____.

a.
​marketing inertia

b.
​marketing myopia

c.
​marketing dissonance

d.
​marketing blockage

A

competitor is gaining more customers by selling products at lower prices. In the context of SWOT—internal strengths (S) and weaknesses (W) and external opportunities (O) and threats (T)—analysis, which of the following actions should be taken by the marketing managers at Addoso Inc.?

a.
​They must analyze aspects of the marketing environment.

b.
​They must focus on organizational resources.

c.
​They should ignore macroenvironmental forces.

d.
​They should focus on production costs and marketing skills.

C

In the context of SWOT—internal strengths (S), weaknesses (W), external opportunities (O), and threats (T)—analysis, which of the following can be considered as a strength of an organization?

a.
​Imitable products and services

b.
​A new unserved market

c.
​A superior production technology

d.
​Increased taxes on products

A

In the context of SWOT—internal strengths (S), weaknesses (W), external opportunities (O), and threats (T)—analysis, marketers can identify strengths and weaknesses by focusing on:

a.
​employee capabilities.

b.
​the aspects of the marketing environment.

c.
​demographic forces.

d.
​the macroenvironmental factors.

B

____ tells us that costs decline at a predictable rate as experience with a product increases.

a.
​A market opportunity analysis (MOA)

b.
​An experience curve

c.
​Marketing myopia

d.
​Ansoff's strategic opportunity matrix

A

Which of the following strategies can enable companies to gain a cost competitive advantage?

a.
​Removing frills from products

b.
Focusing on serving marginal customers​

c.
​Eliminating reverse engineering efforts

d.
​Developing additional exclusive functional departments

A

A company can gain a cost competitive advantage by:

a.
reorganizing functional departments into cross-disciplinary teams.​

b.
​manufacturing highly customized products.

c.
​providing extra options on products or services.

d.
​manufacturing products using complex production techniques.

A

Which of the following practices can help businesses gain a cost competitive advantage?

a.
​Using simplified production techniques

b.
​Using expensive raw materials

c.
​Customizing products with extra frills

d.
​Focusing on serving marginal customers

A

Unlike a cost competitive advantage, a competitive advantage based on product/service differentiation:

a.
​tends to be more attractive to top managers because of its durability.

b.
​provides a shorter-lasting competitive advantage.

c.
​focuses primarily on offering a low-priced product or service than that of competitors.

d.
​lowers costs by removing frills and options from a product or service.

C

Which of the following is a distinct feature of a product/service differentiation competitive advantage?

a.
​Using government subsidies

b.
​Controlling overhead costs

c.
​Establishing a brand name

d.
​Obtaining inexpensive raw materials

B

A product/service differentiation competitive advantage can be achieved by:

a.
​using inexpensive raw materials.

b.
​having a strong dealer network.

c.
​having low overhead costs.

d.
​creating generic products.

C

Which of the following companies adopts a product/service differentiation competitive advantage?

a.
​A firm that sells its products at lower costs than its competitors

b.
​A firm that inhibits post-sale customer service relations

c.
​A firm that provides highly reliable products

d.
​A firm that solely relies on promotional strategies to increase its sales

B

​Nile Inc. is one of the leading shoe manufacturing companies in Baltonia. It manufactures canvas shoes that are quite similar to those produced by other brands. The management of the company has decided to adopt a product/service differentiation competitive strategy. In this scenario, Nile Inc. should:

a.
​offer its products at the lowest rates in the market.

b.
​produce aerobic, tennis, and baseball shoes that have specialized features.

c.
​advertise their products through more media outlets than it previously did.

d.
​sell products to markets outside Baltonia.

A

Unlike a product/service differentiation competitive strategy, a niche strategy:

a.
​is suitable for small companies with limited resources.

b.
​is opted in a market segment that has low growth potential.

c.
​aims at being the low-cost competitor in an industry.

d.
​removes frills and options from a product or service.

A

Which of the following actions is associated with the niche strategy?

a.
​Choosing a target market that is not crucial to the success of major competitors

b.
​Manufacturing products in bulk and targeting average customers

c.
​Selling products without extra frills or options

d.
​Creating cross-departmental teams across all the strategic business units

B

Which of the following statements is true about a niche strategy?

a.
​Only large companies can implement a niche strategy.

b.
​Companies that adopt a niche strategy have only a small number of customers.

c.
​Only the companies that do not have competitors can adopt a niche strategy.

d.
​Companies that adopt a niche strategy can only gain a price advantage over competitors.

A

Drafi Arts Corp. makes and sells original handicraft goods. The management of the company has been successfully using a niche strategy for many years. In this case, which of the following is most likely to be true of Drafi Arts Corp.?

a.
​It serves only a limited geographic market.

b.
​It offers products at a lower price than that of the competition.

c.
​It develops products that are similar to those of its competitors.

d.
​It lowers costs by removing frills and options from its products.

D

Which of the following examples illustrates a niche strategy?

a.
​Libra Inc., a motor company, using new production techniques to achieve economies of scale

b.
​Alpha Electronics deciding to dissolve one of its strategic business units

c.
​Venus Inc. selling products similar to the ones available in the market

d.
​Relish, a confectionery store, selling handcrafted chocolates in only one city

D

Unlike a sustainable competitive advantage, a cost competitive advantage:

a.
​does not ensure satisfactory profit margins.

b.
​requires business firms to reduce after-purchase service options.

c.
​involves producing goods that cannot be copied by competitors.

d.
​is subject to continual erosion.

C

Jove Inc. is a chocolate manufacturer in the city of Lumberne. While most of the companies in the market produce not more than three basic varieties of chocolates, Jove Inc. sells over 50 different varieties of flavored chocolates. This gives it an edge over the other chocolate makers in Lumberne. This is an example of _____.

a.
​a divestment

b.
​market penetration

c.
​a sustainable competitive advantage

d.
​diversification

C

​Freulia Inc. manufactures and sells stationery and office supplies. The firm loses its competitive advantage with the entry of new competitors. In this case, in order to gain a sustainable competitive advantage, Freulia Inc. should:

a.
​imitate the products of its competitors.

b.
​depend on government subsidies.

c.
​build its own competitive advantages.

d.
​aim at being the low-cost competitor in the industry.

B

An effective marketing objective:

a.
​is qualitative rather than quantitative.

b.
​is compared to a benchmark.

c.
​is written independently of the mission statement.

d.
​is written after a marketing plan is drafted.

A

Nessca Inc. is pharmaceutical company. It follows a target market strategy as its products are designed to suit the needs of a group of people with similar characteristics. In this case, which of the following market segments can be targeted by Nessca Inc.?

a.
​A group of individuals who are diabetic

b.
​A group of individuals who work in the same organization

c.
​A group of individuals who are working professionals

d.
​A group of individuals who reside in the same residential area

A

The marketing mix typically involves:

a.
​distribution strategies.

b.
​divestiture strategies.

c.
​restrictive covenants.

d.
​federal regulations.

A

Which of the following is an element of the marketing mix?

a.
​Pricing strategies

b.
​Divestment strategies

c.
​Investment strategies

d.
​Trade restraint strategies

A

In the context of the marketing mix, which of the following statements is true of the product?

a.
​It includes not only the physical unit but also its package, warranty, and after-sale service.

b.
​It is what a buyer must give up in order to obtain a benefit.

c.
​It includes all the business activities concerned with storing and transporting raw materials.

d.
​It is the last element of the marketing mix.

A

In the context of the marketing mix, the product includes:

a.
​the name of the brand.

b.
​the point of purchase.

c.
​the elements of advanced strategic planning.

d.
​personal selling.

B

The product in the marketing mix includes:

a.
​the point of purchase.

b.
​the company image.

c.
​personal selling.

d.
​sales promotion.

D

MaxNutri Inc. sells cookies and nutrition bars. The marketers at MaxNutri Inc. are trying to come up with a new and attractive packaging design for its cookies. In this scenario, MaxNutri Inc. is working on its _____.

a.
​purchase strategy

b.
​distribution strategy

c.
​advertising strategy

d.
​product strategy

A

The distribution strategy in the marketing mix is concerned with:

a.
​transporting raw materials or finished products.

b.
​educating customers about product benefits.

c.
​providing after-purchase services to customers.

d.
​public relations activities.

C

In the context of the marketing mix, which of the following business activities is most closely related to distribution strategies?

a.
​Attractiveness of the product packaging

b.
​Market segments to be targeted

c.
​Storage of raw materials

d.
​Medium to be used for advertising

D

Which of the following should be the main focus of marketers in accordance with distribution strategies?

a.
​Market segments to be targeted

b.
​Medium to be used for advertising

c.
​Products to be manufactured

d.
​Physical locations of products

D

Revel Inc., a cell phone manufacturer, decides to launch its new range of smartphones on the company's official Web site so that its logistics issues can be solved. With this modification, its customers can now buy the smartphones even if they are not sold in any of the stores in their locality. In this case, Revel Inc. focuses on the _____ element of the marketing mix.

a.
​evaluation

b.
​promotion

c.
​price

d.
​distribution

A

In the context of the marketing mix, which of the following business activities is closely associated with promotion?

a.
Usage of social media to increase products sales​

b.
​Decisions on increasing the prices of products

c.
​Changing the appearance of the product packaging

d.
​Ways to improve product quality

A

In the context of the marketing mix, promotion includes:​

a.
​public relations activities.

b.
​pricing strategies.

c.
​after-purchase service.

d.
​storage and transportation of finished products.

B

In the context of the marketing mix, which of the following is an element of promotion?

a.
​Pricing strategies

b.
​Personal selling

c.
​Product packaging

d.
​Manufacturing strategies

D

​Marketers at Libra Electronics Inc. are developing promotional strategies to increase product sales. They want to promote the company's products among the public. In this case, which of the following is an effective promotional strategy that the marketers can follow to improve product/brand awareness among the public?

a.
​They can limit the products' availability to a few retail stores in the city.

b.
​They can raise the prices of the products to signify quality.

c.
​They can reduce frills or options from the products.

d.
​They can print pamphlets that elaborate the products' features.

C

Varion Air, an airline company, is providing promotional offers to mark its first anniversary. Its customers will be given a complimentary air ticket on the purchase of three business class tickets. In this case, which of the following is true of its promotional strategy?

a.
​It will satisfy the flyers and not the management of Varion Air.

b.
​It will not be effective as promotion does not apply to services.

c.
​It will increase the sales of Varion Air.

d.
​It will work independently of the other three elements of the marketing mix.

C

Which of the following statements is true of the price component of the marketing mix?

a.
​It does not affect a firm's competitive advantage.

b.
​It is the least important of the four Ps of the marketing mix.

c.
​It is what a buyer must give up in order to obtain a product.

d.
​It is decided independently of the external environment of the business.

A

The price component of the marketing mix is:

a.
​a competitive weapon for companies.

b.
​a basis to obtain a product differentiation advantage.

c.
​the starting point of the marketing mix.

d.
​the least flexible element of the marketing mix.

B

multiplied by the number of units sold equals total revenue for a firm.

a.
​Discount

b.
​Price

c.
​Overhead cost

d.
​Profit margin

A

Synergy Corp., a large seller of energy-efficient bulbs, uses extensive promotional strategies to stimulate sales. The marketers at Synergy Corp. have noticed that a competitor is doing well and is steadily gaining a large market share. They want to counter the competitor immediately by increasing the sales of Synergy Corp.'s bulbs. In this case, which of the following steps should the marketers at Synergy take to stimulate the sales of its products?

a.
​They should change the pricing strategy.

b.
​They should create complex production techniques.

c.
​They should enter into new supplier contracts.

d.
​They should adopt a divesting strategy.

B

The marketers at Gemini Inc. have prepared a marketing plan for the company's air conditioners. The managers at Gemini have outlined several activities for their subordinates based on this marketing plan. The employees are required to finish these activities within a month. The managers have also allocated a budget for each activity. In the context of marketing planning, which of the following concepts is illustrated in the scenario?

a.
​Divestment

b.
​Implementation

c.
​Diversification

d.
​Vertical integration

A

In the context of marketing planning, implementation involves:

a.
​allocating resources.

b.
​identifying market segments.

c.
​defining the business mission.

d.
​assessing internal capabilities of a firm.

C

In the context of marketing planning, which of the following statements is true of implementation?

a.
​It gauges the extent to which marketing objectives have been achieved during the specified time period.

b.
​Brilliant marketing plans succeed even without proper implementation.

c.
​It involves a lot of communication for executing a plan.

d.
​Managers hold the power to decide and implement decisions rather than delegating it.

D

Which of the following activities is carried out during implementation of a marketing plan?

a.
​Defining the business mission

b.
​Performing marketing audit

c.
​Setting up strategic business units

d.
​Creating and managing a task force

B

In the context of implementation, which of the following statements is true of a task force?

a.
​Authority is equally vested to each employee.

b.
​It is established to accomplish a single goal or mission.

c.
​It works independent of a specific deadline.

d.
​Task force is set up for simple rather than strategic plans.

C

In the context of following up on a marketing plan, _____ entails gauging the extent to which marketing objectives have been achieved during the specified time period.

a.
​implementation

b.
​control

c.
​evaluation

d.
​environmental scanning

B

In the context of following up on a marketing plan, _____ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.

a.
​implementation

b.
​control

c.
​environmental scanning

d.
​marketing myopia

D

​_____ is a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization.

a.
​Marketing mix

b.
​Diversification

c.
​Core innovation

d.
​Marketing audit

A

Which of the following statements is true of a marketing audit?

a.
​It should be carried out on a regular schedule.

b.
​It is normally conducted by an outside party and restricts an inside party of a firm.

c.
​It covers just the trouble spots of an organization.

d.
​It is a device to implement a marketing plan.

B

Which of the following strategies can help companies make strategic planning effective?

a.
​Excluding top management from the strategic planning process

b.
​Making strategic planning an ongoing process rather than an annual exercise

c.
​Eliminating managerial intuitions

d.
​Avoiding cross-functional teams

D

Which of the following statements is true of strategic planning?

a.
​It is an intermittent process.

b.
​It should focus on short-run profitability and growth rather than long-run profits.

c.
​It is done independently by company shareholders.

d.
​It should be based on creativity.

A

Companies can make strategic planning more effective by:

a.
​ensuring the participation of top management.

b.
​ensuring that decision making is centralized.

c.
​making strategic planning an annual exercise.

d.
​focusing on short-run profitability and growth.

Which of the following is true about strategic plan?

Which of the following is true of a strategic planning firm?

Which of the following statements is true regarding strategic decision making?

Which statement is true about strategic management?