47) Among Internet users, some do research online, some shop, some look for entertainment, and
many do all three. Each of these groups would be called a
A) strategic group.
B) strategic business unit.
C) market segment.
D) cash cow.
E) marketing metric.
48) Suppose your university made a sizable investment in its career services—additional
counselors, increased efforts to bring in recruiters, and other services aimed at helping students
find jobs. This investment would enhance the university’s ________ in an attempt to create value
for students and recent graduates.
A) segmentation strategy
B) place strategy
C) locational excellence strategy
D) diversification strategy
E) product value
49) 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 that they are receiving.
D) prioritizes customer excellence above operational excellence.
E) matches competitors’ prices.
50) Amazon makes sure its customers can download their Kindle e-books easily from its website
when and where they want them. In so doing, it is focusing on creating value through
A) product.
B) place.
C) promotion.
D) price.
E) process.
51) In value-based marketing, the promotion element of the four Ps communicates the ________
to customers through a variety of media.
A) mission statement
B) operational excellence strategy
C) value proposition
D) relative market value
E) target market definition
52) When marketers use a variety of communication disciplines—advertising, personal selling,
sales promotion, public relations, direct marketing, and online marketing including social
media—in combination to communicate a value proposition to the customer, it is referred to as
A) integrated marketing communications.
B) multimedia marketing.
C) diverse marketing communications.
D) comprehensive promotion.
E) managed marketing communications.
53) Google and other search engines allow marketers to bid to have their ads shown when
consumers search keywords related to the firm’s products. These marketers are attempting to
create value through
A) product.
B) price.
C) promotion.
D) place.
E) cost-based measures.
54) Craig sees that his company’s quarterly sales and profits are significantly above projections
and says, “That’s great. Let’s keep doing what we’ve been doing.” Craig is ignoring the ________
step of the marketing planning process.
A) evaluate performance
B) define the business mission
C) perform situation analysis
D) implement marketing mix and resources
E) identify and evaluate opportunities
55) The first objective in the evaluate performance phase of the marketing planning process is to
A) determine whether to raise or lower prices.
B) adjust advertising allocations.
C) find ways to cut costs.
D) review implementation programs and results using metrics.
E) consider changing the target market.
56) As it pertains to the marketing plan, 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 demonstrate their effectiveness.
C) offers insights into crafting an appropriate mission statement.
D) should always be followed by eliminating underperforming SBUs.
E) allows firms to better assess customer loyalty.
57) A regional manager at GNC, a chain of retail stores selling nutritional supplements, is
reviewing sales data after a recent in-store promotion. The data show success in some stores and
limited response in others. To understand the differences between stores, the manager will
probably next review the company’s
A) financial statements, to investigate current and past profits.
B) brand awareness study, to assess national levels of awareness.
C) implementation programs, to see if the promotion was handled consistently in the different
stores.
D) mission statement, to see if it needs adjusting.
E) analysis of national trends in vitamins and herbal supplements, to help predict future sales.
58) After conducting STP analysis for her custom auto parts store and developing strategies for
each of the four Ps, Monique now has to make ________ decisions.
A) competitive response
B) resource allocation
C) market growth
D) product line
E) mission statement
59) Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated
his STP analysis, and has just finished adjusting his marketing mix based on the STP results. His
next strategic marketing decision will most likely involve determining
A) how Disney World crowds will impact his business.
B) which employees to promote or fire.
C) how to allocate resources among his four stores.
D) what new government regulations might create opportunities or threats.
E) when to shift from a customer excellence to an operational excellence strategy.
60) In most companies, portfolio management is typically done at the SBU or ________ level of
the firm.
A) corporate
B) product line
C) customer care
D) sales representative
E) accounting
61) A(n) ________ is a group of products that consumers may use together or perceive as similar
in some way.
A) SBU
B) STP
C) product line
D) market segment
E) promotional service
62) Heather has been assessing several of her firm’s products using the Boston Consulting Group
(BCG) approach to portfolio analysis. She has been trying to assess the strength in a particular
market and is looking at the sales of each of her products and the sales of the largest firm in the
industry. Heather is trying to determine
A) the product’s relative market share.
B) the market growth rate.
C) a source of competitive advantage.
D) the impact of population shifts on future demand.
E) cash equivalent values for each product.
63) To determine how attractive a particular market is using the BCG portfolio analysis,
________ is(are) established as the vertical axis.
A) competitive intensity
B) sales dollars
C) market size
D) market growth rate
E) market profit potential
64) In BCG portfolio analysis, products in low-growth markets that have received heavy
investment and now have excess funds available to support other products are called
A) stars.
B) cash cows.
C) question marks.
D) dogs.
E) anchors.
65) Fernando was thrilled to find out that his company had just decided to invest a great deal of
money in the product he was managing. He knows that even with its recent high rate of growth
and the fact that it dominates its market, he would need more money to establish it firmly. Using
the BCG portfolio analysis, his product would be classified as a(n)
A) star.
B) cash cow.
C) question mark.
D) dog.
E) anchor.
66) Using the BCG portfolio analysis, a “dog” should be phased out unless
A) its marketing manager is a champion of the product.
B) additional resources could increase its relative market share slightly.
C) it complements or boosts the sales of another product.
D) the market has a small chance of rebounding.
E) None of the choices is correct. Dogs should be phased out.
67) The strategic marketing planning process
A) is a five-step process that should always be completed in order.
B) is frequently used in reverse.
C) begins with establishing specific, measurable outcomes.
D) is not always sequential.
E) forces marketing managers to think rationally.
68) Which of the following is one of the four major growth strategies that marketers typically
utilize?
A) market penetration
B) target development
C) segment analysis
D) market assimilation
E) product growth
69) Adrienne decides to add new sales representatives and increase advertising to increase sales
in her existing market for her current line of security systems. Adrienne is pursuing a ________
growth strategy.
A) segment development
B) market development
C) market penetration
D) diversification
E) product development
70) A ________ growth strategy employs the existing marketing offering to reach new market
segments.
A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development
71) Quitman Enterprises sells its business language dictionary to college students throughout the
United States. Joseph Quitman, the owner, wants to start selling the book to international
students abroad. Quitman wants to pursue a ________ growth strategy.
A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development
72) After success with its Netflix series Jessica Jones and Daredevil, Marvel launched two
additional series, Iron Fist and Luke Cage. By doing this, Marvel employed a ________ strategy.
A) product development
B) customer development
C) market penetration
D) market development
E) diversification
73) H&R is a small, local heating and air conditioning business. The local military base is a
potential source of growth, and H&R already installs and services the type of equipment the
military would require. H&R is considering a ________ growth strategy.
A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development
74) Many states create licensing requirements for a variety of professionals (such as lawyers and
accountants) designed to restrict entry into their market by professionals from other states. This
strategy limits ________ growth strategies.
A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development
75) Marketers who design and offer new products and services to their existing customers are
pursuing a ________ growth strategy.
A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development
76) Customer relationship software allows bank service representatives to determine quickly
which types of accounts, loans, and credit cards a customer currently has. With this information,
the service representative can determine what other bank services that same customer could
potentially enroll in or purchase. This growth strategy is known as
A) product proliferation.
B) market development.
C) market penetration.
D) diversification.
E) product development.
77) Maryam phoned her insurance agent to renew her auto insurance policy. On that same call,
the agent attempted to sell her one of the firm’s new home or life insurance policies. The agent
was pursuing a ________ growth strategy.
A) product development
B) market development
C) market penetration
D) diversification
E) product proliferation
78) Introducing newly developed products or services to a market segment the company is not
currently serving is called
A) product development.
B) market development.
C) market penetration.
D) diversification.
E) product proliferation.
79) Zara is a women’s clothing retailer headquartered in Spain, with stores located in many
countries. Zara has developed a “quick response” system that allows store merchandise to be
adjusted rapidly to fit changing customer preferences. Every aspect of Zara’s operation is
optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has
established
A) customer loyalty.
B) locational excellence.
C) a diversification growth strategy.
D) a sustainable competitive advantage.
E) a related diversification opportunity.
80) Fourteenth National Bank prides itself on offering better service than any of its competitors.
If this is accurate, and if customers recognize and value Fourteenth National’s superior service,
the bank creates and delivers value through
A) promotional excellence.
B) product excellence.
C) operational excellence.
D) global excellence.
E) customer excellence.
81) Anita has been a loyal customer of her hair salon for years—just like most of the other
patrons. She believes that her stylist, the salon owner, is the best in the business. Not only does
the salon provide excellent beauty services, it also features an exceptional, timely staff that
always puts the customer first. Furthermore, the salon, which is right in the heart of town, is
easily accessible. Anita’s salon has earned
A) a sustainable competitive advantage.
B) a customer retention program.
C) an opportunity to grow.
D) a loyal customer following.
E) the benefits of a locational excellence.
82) Customer retention programs are based on what concept?
A) Customer excellence is the easiest macro strategy to follow.
B) Customer relationships should be viewed from a lifetime value perspective rather than on a
transaction-by-transaction basis.
C) It is important to maximize profits in the first few months of a customer relationship.
D) Segmentation, targeting, and positioning analysis should not be rushed.
E) Firms must spend large amounts of money to retain customers.
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83) Most banks implement customer retention programs aimed at their best customers. They do
this because they know that retaining customers usually results in
A) a product development growth strategy.
B) an operational advantage.
C) opportunities for diversification.
D) increased long-term profits.
E) more clearly defined market segments.
84) Some universities, recognizing the convenience of distance learning, have begun to offer
fully online, accredited degree programs. These universities are most likely pursuing which
macro strategy?
A) customer excellence
B) locational excellence
C) operational excellence
D) product excellence
E) purchase excellence
85) When a pharmaceutical company develops a new medication, it typically applies for a patent
in order to prevent competitors from developing copycat products for several years.
Pharmaceutical companies apply for patents to establish
A) operational excellence.
B) market penetration growth.
C) a sustainable competitive advantage.
D) an efficient supply chain.
E) product efficiency.
86) One example of a customer loyalty program is
A) a “frequent diner” restaurant card that offers a free appetizer for every $100 spent.
B) a quantity discount offered for large purchases at an office supply store.
C) access to seasonal sales on top-selling items.
D) an “everyday low price” policy on all products at a grocery store.
E) an extensive customer service training program.