226) Market development refers to the marketing strategy of
A) increasing sales of current products in current markets.
B) selling new products to new markets.
C) selling new products to current markets.
D) selling the same brands in both current and new markets.
E) selling current products to new markets.
227) If Ben & Jerry’s starts selling its super premium ice cream in Brazil for the first time, it will
be using a ________ strategy.
A) product development
B) market development
C) diversification
D) market saturation
E) market penetration
228) Part of the growth strategy for Yum! Brands, the parent company of KFC, Pizza Hut, and
Taco Bell, is expansion of its current fast-food businesses into untapped international markets,
such as China, Russia, and India. This type of expansion would be a ________ strategy.
A) product development
B) market penetration
C) diversification
D) market development
E) market saturation
229) The marketing strategy of selling new products to current markets is referred to as
A) product penetration.
B) product development.
C) market development.
D) diversification.
E) market penetration.
230) Product development refers to the marketing strategy of
A) increasing sales of current products in current markets.
B) selling current products to new markets.
C) selling new products to new markets.
D) selling new products to current markets.
E) selling the same brands in both current and new markets.
231) If Ben & Jerry’s sold a line of new “Get the Dough Out of Politics” T-shirts targeted to
college students in the United States, it would be using a ________ strategy.
A) product development
B) market development
C) market penetration
D) diversification
E) market saturation
232) During Super Bowl 50, Taco Bell unveiled its latest offering for the U.S. market, the
“quesalupa,” a hybrid of a quesadilla and a chalupa. Here, Taco Bell was using a ________
strategy.
A) product development
B) market development
C) market penetration
D) diversification
E) market saturation
233) The marketing strategy of developing new products and selling them in new markets is
referred to as
A) product penetration.
B) product development.
C) market development.
D) market penetration.
E) diversification.
234) Diversification refers to the marketing strategy of
A) increasing sales of current products in current markets.
B) selling current products to new markets.
C) selling new products to new markets.
D) selling new products to current markets.
E) selling the same brands in both current and new markets.
235) Which of the marketing strategies for expanding sales revenue presents the most risk for an
organization?
A) Product development
B) Product-market evolution
C) Market development
D) Market penetration
E) Diversification
236) If Ben & Jerry’s sold a line of new “Get the Dough Out of Politics” T-shirts targeted to
college students in Latvia, it would be using a ________ strategy.
A) product development
B) market development
C) market penetration
D) diversification
E) market saturation
237) The image depicted in Figure 2-5 above represents what strategic analysis technique?
A) Gantt chart
B) SWOT analysis
C) Pert chart
D) BCG growth-share matrix
E) Diversification analysis
238) Quadrant A in Figure 2-5 above represents the marketing strategy of
A) market penetration.
B) product development.
C) market development.
D) product penetration.
E) diversification.
239) Quadrant B in Figure 2-5 above represents the marketing strategy of
A) market penetration.
B) product penetration.
C) market development.
D) product development.
E) diversification.
240) Taco Bell sells Doritos Locos Tacos in the U.S., with shells made out of Nacho Cheese
Doritos. At introduction, the chain sold 100 million tacos in the first 10 weeks alone, its most
popular product launch of all time. Considering Figure 2-5 above, this is an example of a
________ strategy that would be found in quadrant ________.
A) market penetration; A
B) product development; B
C) Diversification; D
D) market development; C
E) product-market expansion; D
241) Quadrant C in Figure 2-5 above represents the marketing strategy of
A) product development.
B) market penetration.
C) market development.
D) product penetration.
E) diversification.
242) Quadrant D in Figure 2-5 above represents the marketing strategy of
A) market penetration.
B) product penetration.
C) market development.
D) product development.
E) diversification.
243) Lego has traditionally been successful selling its classic construction sets to boys. Recently,
Lego introduced a line of building toys especially for girls called Lego Friends. Though based on
the same construction bricks and detailed instructions, the line included female characters, pink
and purple theme colors, and allowed girls to construct more story-related pieces. The company
successfully reached into the girl’s toy market where alternatives included princess games and
accessories. Considering Figure 2-5 above, this is an example of a ________ strategy that would
be found in quadrant ________.
A) diversification; D
B) market penetration; A
C) product development; B
D) market development; C
E) Product-market evolution; D
244) Which two marketing strategies would be used if a firm were not willing to find new
markets?
A) Product development and market penetration
B) Product development and diversification
C) Market development and product development
D) Market development and market penetration
E) Market development and diversification
245) The strategic marketing process
A) involves taking stock of where the firm or product has been recently, where it is now, and
where it is headed in terms of the organization’s marketing plans and the external forces and
trends affecting it.
B) is a technique to quantify performance measures and growth targets to analyze its clients’
strategic business units as though they were a collection of separate investments.
C) describes an organization’s appraisal of its internal strengths and weaknesses and its external
opportunities and threats.
D) is an approach whereby an organization allocates its marketing mix resources to reach its
target markets.
E) seeks opportunities by finding the optimum balance between marketing efficiencies versus
R&D-manufacturing efficiencies.
246) An approach whereby an organization allocates its marketing mix resources to reach its
target markets is referred to as
A) the tactical marketing process.
B) situational analysis.
C) diversification analysis.
D) synergy analysis.
E) the strategic marketing process.
247) An organization uses the strategic marketing process to answer all of the following
questions except which?
A) “How do our results compare with our plans?”
B) “How do we allocate our resources to get where we want to go?”
C) “Where do we want to go?”
D) “Do deviations require new plans?”
E) “How do we convert our plans into actions?”
248) Within the strategic marketing process, the ________ is the result of the planning phase that
will be carried out in the implementation phase.
A) marketing tactics
B) business plan
C) product protocol
D) marketing plan
E) marketing strategy
249) The key steps of planning, implementation, and evaluation are part of
A) gap analysis.
B) the strategic marketing process.
C) situational analysis.
D) synergy analysis.
E) diversification analysis.
250) What are the three steps involved in the planning phase of the strategic marketing process?
A) Step 1: situation (SWOT) analysis; Step 2: market-product focus and goal setting; and Step 3:
the marketing program
B) Step 1: analysis; Step 2: planning; and Step 3: implementation
C) Step 1: set market and product goals; Step 2: select target markets and find points of
difference; and Step 3: position the product
D) Step 1: identify industry trends; Step 2: analyze competitors; and Step 3: assess own
organization
E) Step 1: Why do we exist?; Step 2: What will we do?; and Step 3: How will we do it?
251) The initial step in the strategic marketing process is to begin planning by conducting a
A) business portfolio analysis.
B) market-product analysis and setting goals.
C) marketing program.
D) situation (SWOT) analysis.
E) diversification analysis.
252) Step 1 in the planning phase of the strategic marketing process involves
A) establishing the budget.
B) developing the marketing program.
C) setting goals.
D) auditing the marketing plan.
E) conducting a situation (SWOT) analysis.
253) Step 2 in the planning phase of the strategic marketing process consists of
A) the situation (SWOT) analysis.
B) market-product focus and goal setting.
C) the marketing program.
D) business portfolio analysis.
E) diversification analysis.
254) Step 3 in the planning phase of the strategic marketing process consists of
A) diversification analysis.
B) the situation (SWOT) analysis.
C) the marketing program.
D) the market-product focus and goal setting.
E) business portfolio analysis.
255) Taking stock of where the firm or product has been recently, where it is now, and where it
is headed in terms of the organization’s marketing plans and the external forces and trends
affecting it is referred to as
A) tactical planning.
B) market planning.
C) goal setting.
D) environmental scanning.
E) situation analysis.
256) A situation analysis refers to
A) taking stock of where the firm or product has been recently, where it is now, and where it is
headed in terms of the organization’s marketing plans and the external forces and trends affecting
it.
B) an appraisal of an organization’s cash flow and financial ratios to access its health and the
potential for new investment.
C) the process of continually acquiring information on events occurring outside the organization
to identify and interpret potential trends.
D) a technique that managers use to quantify performance measures and growth targets to
analyze its clients’ strategic business units as though they were separate investments.
E) the process where a firm searches for growth opportunities from among current and new
markets as well as current and new products.
257) A situation analysis requires a firm to consider the external forces and trends that affect it.
Some of these may be favorable to the organization while others may be unfavorable. Which of
the following is an example of an external force?
A) The firm buys its own fleet of trucks, so it no longer needs to hire a trucking company for
distribution.
B) A hiring freeze is put into place. Although no one is fired, no one can be hired.
C) A goal is set to close the gap between production costs and profits.
D) A city government bans cigarette smoking inside all restaurants and bars in the city limits.
E) Shareholders are rewarded with a sizable dividend check.
258) The acronym SWOT, as in SWOT analysis, stands for
A) strengths, weaknesses, opportunities, and tactics.
B) strengths, weaknesses, options, and tactics.
C) strengths, weaknesses, opportunities, and threats.
D) simple, workable, optimal, and timely.
E) state the problem, work out a strategy, organize your team, and take action.
259) An effective summary tool for an organization’s situation analysis is referred to as
A) SWOT analysis.
B) strategic management planning.
C) environmental scanning.
D) market-product grid analysis.
E) marginal analysis.
260) In the 1980s, a lapse in production quality and an increase in Japanese imports drove the
Harley-Davidson motorcycle company to the brink of bankruptcy. The company’s share of the
U.S. super heavyweight market segment—motorcycles with engine capacity of 850 cubic
centimeters or more—had shrunk from over 40 percent in the mid-1970s to 23 percent in 1983.
But by 1989, Harley-Davidson controlled some 65 percent of this market segment. From a
marketing perspective, what was the most likely first step in Harley-Davidson’s resurgence?
A) Developing a new mission statement
B) Repositioning its products in the minds of super heavyweight motorcycle buyers
C) Performing a SWOT analysis to assess the firm’s internal and external environments
D) Selling new models of super heavyweight motorcycles in both the United States (current) and
foreign (new) markets
E) Improving the quality of its products and communicating this to motorcycle buyers
261) Procter & Gamble (P&G) is a consumer packaged goods company where innovation is a
key competitive advantage. This allows the firm to develop products like Crest Whitestrips that
consumers crave. P&G also uses its marketing expertise to develop unique product placements
on television shows that highlight its brands. A SWOT analysis for P&G would indicate that
innovation in product design and marketing is a(n) ________ for the firm.
A) a strength
B) a weakness
C) a threat
D) an opportunity
E) a problem
262) Hellmann’s is a brand owned by Unilever that produces mayonnaise, among other food
products. If a marketing manager at Hellman’s identified that its brand managers lacked the
expertise to create additional growth for the firm’s products, she would likely incorporate this
knowledge into its SWOT analysis as
A) a weakness if the company does not have access to other expertise at Unilever.
B) a strength if the company conceals this information from its competitors.
C) an opportunity if Hellman’s competitors have superior expertise.
D) a threat if Hellman’s does not have resources to develop additional expertise.
E) part of a marketing plan; this information would not be part of a SWOT analysis.