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Indicate whether the statement is true or false.
1. A firm's assets are functions—such as customer service and promotions—that the firm performs better than its
competitors.
a. True
b. False
2. Unlike product development, market development involves opening businesses in markets that are already served by
separate, well-established companies.
a. True
b. False
3. According to the Boston Consulting Group's (BCG's) portfolio matrix, a star is a fast-growing market leader.
a. True
b. False
4. A company sells paper stationery made of recycled materials that no other paper manufacturing company in the market
has the ability to produce. This company has a competitive advantage.
a. True
b. False
5. 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
6. 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
7. A strategic business unit (SBU) is a single business or a collection of related businesses.
a. True
b. False
8. Marketing managers rely on customer databases for effective implementation of the market penetration strategy.
a. True
b. False
9. 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
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10. 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
11. A group of 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
12. Marketing myopia means long-term thinking.
a. True
b. False
13. According to the Boston Consulting Group's (BCG's) portfolio matrix, a dog shows rapid growth but poor profit
margins.
a. True
b. False
14. Unlike an operating decision, a strategic decision probably will not have a big impact on the long-run profitability of a
company.
a. True
b. False
15. According to Ansoff's strategic opportunity matrix, both product development and diversification entail creating new
products.
a. True
b. False
16. Market segments cannot be differentiated by ethnicity and multicultural aspects.
a. True
b. False
17. Market segments cannot be differentiated by demographic characteristics.
a. True
b. False
18. A task force is a tightly organized unit under the direction of a manager who, usually, has broad authority.
a. True
b. False
19. If an organization has a strategic business unit that has been classified as a star, harvesting would be an appropriate
goal.
a. True
b. False
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20. In a target market strategy, identifying the market segment or segments begins with a market opportunity analysis
(MOA).
a. True
b. False
21. A company's skills include patents, copyrights, and technology that are superior to those of the competition.
a. True
b. False
22. A diversification strategy is ideal when a firm is entering unfamiliar markets.
a. True
b. False
23. Marketing objectives serve as motivators by creating something for employees to strive for.
a. True
b. False
24. 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.
a. True
b. False
25. The key to having a competitive advantage is the ability to imitate a competitor's strategy.
a. True
b. False
26. 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
27. Marketing objectives must be consistent with and indicate the priorities of an organization.
a. True
b. False
28. 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.
a. True
b. False
29. Strategic planning is just an annual exercise.
a. True
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b. False
30. Imitating a rival's competitive advantage requires a company to first identify the rival's competitive advantage.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
31. 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.
32. 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.
33. 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
34. 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
35. 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.
36. 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.
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37. Carl's Pens, an office supplies company, has launched a new marker pen that can be used on any surface. The
company has set up booths in all the popular shopping malls in the country to demonstrate the new marker and let the
public get a hands-on experience. In this scenario, Carl's Pens is focusing on the _____ element of the marketing mix.
a. promotion
b. distribution
c. pricing
d. costing
38. The product in the marketing mix includes:
a. the point of purchase.
b. the company image.
c. personal selling.
d. sales promotion.
39. 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
40. Which of the following companies is most likely to have a product/service differentiation competitive advantage?
a. Luna Inc., a company dealing in beverages, solely relies on pricing strategies to counter competition.
b. Zeus Corp., a tire manufacturer, has the strongest dealer network in the market.
c. Design Corp., a supermarket, follows a no-return policy on all the products it sells.
d. Glow Inc., a healthcare firm, plans to manufacture garments.
41. 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
42. Bill and Jill is an American pharmaceutical company. It has been the market leader in the American pharmaceutical
industry for the last five years. The market has slowly started to saturate, and the management has decided to target lesser
privileged countries that do not have adequate medical care facilities. According to Ansoff's strategic opportunity matrix,
which of the following strategies has Bill and Jill adopted?
a. Diversification
b. Divestment
c. Market penetration
d. Market development
43. 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
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d. Limiting resources used for promotion
44. 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.
45. 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.
46. The managers at IdealComm. have conducted a thorough study to identify customer groups that need to be targeted.
They have a fair idea about what kind of product the customers might find attractive, the price that would seem the most
reasonable, the ideal place to sell it, and the ideal way to promote it. In this scenario, the managers at IdealComm. have
created its _____.
a. marketing strategy
b. divestment strategy
c. mission statement
d. portfolio matrix
47. 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.
48. Which of the following is an element of the marketing mix?
a. Pricing strategies
b. Divestment strategies
c. Investment strategies
d. Trade restraint strategies
49. 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.
50. SpecificEffects, an electronics company, has recently adopted a diversification strategy and has started manufacturing
cosmetics. In keeping with its recent strategy, SpecificEffects will most likely:
a. attract existing customers with its popular electronic products.
b. attract new customers with its existing range of cosmetics.
c. create new electronic goods for its existing customers.
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d. introduce new cosmetic products in its neighboring country.
51. 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.
52. Synergy Corp., a large seller of energy-efficient light 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.
53. 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.
54. 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
55. 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
56. 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
57. Which of the following companies is most likely to have a product/service differentiation competitive advantage?
a. Lurce Inc., a soft drink manufacturer, solely relies on pricing strategies to counter competition.
b. Minevra Corp., a home appliance manufacturer, is famous for its post-purchase customer support.
c. Griffin Corp., a clothing store, follows a no-return policy on all the clothes it sells.
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d. Bioglow Inc., a healthcare firm, focuses on only one segment of the market.
58. 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
59. 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.
60. 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.
61. 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
62. 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
63. 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
64. _____ multiplied by the number of units sold equals total revenue for a firm.
a. Discount
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b. Price
c. Overhead cost
d. Profit margin
65. In the context of Ansoff's strategic opportunity matrix, which of the following companies is using a market
development strategy?
a. Open Ware, a software company, which has produced a new antivirus software for its domestic market
b. Ozz Corp., a kitchenware company in Europe, which has opened a new facility in Asia to sell its products in the
country
c. Cool Blue, a beverage company, which has introduced a new zero-sugar cola in the market and allows its existing
customers to take free samples home
d. Ideal Sound, an electronics company in Asia, which has planned to manufacture sports gear
66. 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
67. 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.
68. 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
69. 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.
70. 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.
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71. FrozenFun, an ice cream company, has started manufacturing and selling refrigerators. It wants to attract customers
from outside the food industry to increase its revenue. In the context of Ansoff's strategic opportunity matrix, which of the
following strategic alternatives has been adopted by FrozenFun?
a. Diversification
b. Market penetration
c. Market development
d. Divestment
72. 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.
73. 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.
74. 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.
75. 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.
76. 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.
77. Cyan Software is a popular software company. The company has a strong presence in the market as it offers the best
packaging, customer service, and warranty services. Most customers prefer its products and services over that of other
software companies. In this scenario, which of the following competitive advantages is Cyan Software most likely to
provide?
a. Price fixing opportunities
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b. Niche competitive advantage
c. Product/service differentiation competitive advantage
d. Diversification opportunities
78. 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.
79. In the context of the Boston Consulting Group's (BCG's) portfolio matrix, like 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.
80. 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
81. 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
82. 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.
83. In the portfolio matrix, a _____ has low growth potential and a small market share.
a. question mark
b. problem child
c. star
d. dog
84. 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.
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c. advertise their products through more media outlets than it previously did.
d. sell products to markets outside Baltonia.
85. 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
86. Pica Paints is the largest decorative paint company in the industry. It provides the best post-sales support and is
unmatched when it comes to product quality. No other brand in this segment has been able to match these qualities of Pica
Paints. In this case, Pica Paints:
a. has created a sustainable competitive advantage.
b. is effectively serving a niche segment of the market.
c. has repositioned itself as a business-to-business company.
d. is a high-cost competitor in the industry.
87. 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
88. 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
89. The marketing mix typically involves:
a. distribution strategies.
b. divestiture strategies.
c. restrictive covenants.
d. federal regulations.
90. Spence is a pharmaceutical company that exclusively manufactures and sells drugs to treat a rare lung disease that
affects 0.01% of the population in the world. In this case, which of the following competitive advantages does Spence
have?
a. A niche competitive advantage
b. A cost advantage
c. A product differentiation competitive advantage
d. A price differentiation competitive advantage
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91. 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.
92. 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
93. 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.
94. 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
95. 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.
96. 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.
97. 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
98. Unlike a product/service differentiation competitive strategy, a niche strategy:
a. is suitable for small companies with limited resources.
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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.
99. 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.
100. _____ 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
101. 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.
102. 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.
103. 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
104. 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
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105. _____ 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
106. 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.
107. 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
108. FittedStyle is a clothing company. It has recently introduced a new line of heavy-duty shirts. These shirts are made
from tough fabric that is highly resistant to stains and wear and tear. FittedStyle is targeting its existing customers with its
shirts. According to Ansoff's strategic opportunity matrix, which of the following strategic alternatives has been adopted
by FittedStyle?
a. Diversification
b. Divestment
c. Product development
d. Market penetration
109. 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
110. Specific Elements is a mobile manufacturer. Its range of Z phones that were best sellers at one point is fast losing its
popularity. Other phones with more advanced technology are ruling the market and Z phones are unlikely to match up to
the competitors. In the context of the portfolio matrix, Z phones is most likely to be categorized as a _____.
a. star
b. problem child
c. cash cow
d. dog
111. 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
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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
112. 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.
113. In the context of Ansoff's strategic opportunity matrix, which of the following companies is using a product
development strategy?
a. DodgeFree, a sports goods company, which has produced new basketballs for its existing customers
b. James&Sons, a lock manufacturing company in America, which has started opening new stores in all the states of
the country
c. SofBake, a food and beverage company, which has reduced the prices of its scones and breads to attract more
customers
d. Juro, a weapon manufacturer from Europe, which has started selling its guns in Asia
114. 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
115. 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.
116. Sweet Snow is an established ice cream manufacturing company. It has recently introduced a zero-fat ice cream in
the market, and as an introductory offer, it is selling its products at discounted prices. In the context of Ansoff's strategic
opportunity matrix, which of the following strategies has Sweet Snow adopted?
a. Product diversification
b. Market penetration
c. Divestment
d. Market segmentation
117. 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
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d. cash cow
118. 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.
119. Addoso Inc. manufactures electronic gadgets. The marketing managers at Addoso Inc. have discovered that a new
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.
120. 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
121. _____ 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
122. In the context of implementation, which of the following statements is true of a task force?
a. Authority is equally vested in 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.
123. 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.
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124. Discuss the process of implementing a marketing plan.
125. Discuss how strategic planning can be made effective.
126. Discuss the market penetration strategy of Ansoff's strategic opportunity matrix.
127. Discuss the factors that make marketing objectives effective.
128. Explain the characteristics of strategic business units (SBUs).
129. Explain SWOT analysis.
130. Discuss the general strategies for selecting target markets.
131. Discuss the process of market opportunity analysis.
132. List the three types of competitive advantages and define them.
133. Compare product strategies and pricing strategies in the context of the marketing mix.
134. Describe the nature of strategic planning.
135. Explain how a business mission has to be defined.
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Answer Key
1. False
2. False
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