36. A group of individuals or organizations that have needs for products in a product class and have the willingness,
ability, and authority to purchase those products is called a(n):
a. strategic window.
b. industry.
c. strategic business unit.
d. exchange.
e. market.
37. Jason, a 17-year old high school student, wants to buy a pack of cigarettes. He has the money to purchase them,
but he is still not considered to be a market for the product due to his lack of _____ to purchase the cigarettes.
a. ability
b. willingness
c. authority
d. need
e. location
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
38. The Boston Consulting Group’s matrix is based on the:
a. idea that a firm’s market share and market attractiveness are the important factors for a marketing strategy.
b. assumption that a firm’s actions have a profitable impact on marketing strategy.
c. business position and market attractiveness of the firm.
d. philosophy that a product’s market growth rate and its market share are important determinants of its
marketing strategy.
e. idea that a product’s market growth rate and market attractiveness determine the marketing strategy.
39. According to the Boston Consulting Group, marketers may classify their products as all of the following except
_____.
a. dogs
b. convenience products
c. question marks
d. stars
e. cash cows
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
40. Based on the work by the Boston Consulting Group, products with a dominant share of the market and good
prospects for growth are classified as:
a. dogs.
b. cash cows.
c. stars.
d. question marks.
e. problem children.
41. Aragon Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant
market share. However, this unit has low prospects for growth. The unit currently generates more cash for Aragon
Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit
would be classified as a _____.
a. dog
b. cash cow
c. star
d. problem child
e. question mark
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
42. The director of marketing for Coby tapes tells the rest of the management team, “When it comes to our transparent
packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding
market”. This strategy indicates that the packaging tape unit falls into which one of the following classifications?
a. Problem child
b. Star
c. Cash cow
d. Dog
e. Question mark
43. The percentage of a market which actually buys a specific product from a specific company is referred to as that
product’s:
a. market value.
b. target market.
c. market share.
d. market size.
e. market position.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
44. According to the Boston Consulting Group, question marks are characterized as products:
a. that have a small share of the market and that require large amounts of cash to build market share.
b. that have a dominant share of the market and good prospects for growth.
c. that typically generate more cash than is required to maintain market share.
d. that have a dominant share of the market, but low prospects for growth.
e. that are found in established markets and that generate substantial profits.
45. Which of the following is the most specific and detailed type of business strategy?
a. Business-unit strategy
b. Marketing strategy
c. Corporate strategy
d. Customer service strategy
e. Tactical strategy
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
46. Avio Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must
first select _____ which may be the most important decision they make in the planning process.
a. the promotional strategy
b. a distribution method
c. the pricing strategy
d. a target market
e. the desired profit margin
47. Which of the following statements about the marketing mix is incorrect?
a. The selection of the target market serves as the basis for the creation of the marketing mix.
b. Marketers can alter elements of the marketing mix to accommodate different marketing strategies.
c. Marketing mix decisions should be consistent with business-unit and corporate strategies.
d. Once a marketing mix has been created for a particular target market, it cannot be changed until a new
strategic window opens.
e. Marketing mix decisions should be flexible enough to respond to changes in market conditions, competition,
and customer needs.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
48. All marketing mix decisions must have two characteristics: consistency and _____.
a. flexibility
b. rigidity
c. irregularity
d. variability
e. resistance
49. Darius Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had
the same image and proper display around the world. It also lowered prices on some items, like handbags, to be
more competitive. This illustrates a company working to develop a marketing mix that is both _____.
a. consistent and flexible
b. variable and flexible
c. variable and rigid
d. consistent and rigid
e. unconventional and rigid
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
50. ZeonCorporation’spartnershipwithAlcoveInc.,aglobalcourierdeliveryservicecompany,hasgivenitanedge
over its rivals in the printing, faxing, and delivery market. Sincethispartnershipcan’tbeeasilycopiedbythe
competition, it represents a(n) _____.
a. market opportunity
b. sustainable advantage
c. strategic window
d. absolute advantage
e. performance standard
51. Alpeco Inc., a manufacturer of motorcycles, helps to foster strong relationships between riders and their
motorcycles.Alpeco’srivalswillfinditdifficulttomimicthisintheforeseeablefuture.Inthisscenario,AlpecoInc.
has a(n) _____ over its competitors.
a. effective competitive advantage
b. controllable advantage
c. comparative advantage
d. absolute advantage
e. sustainable competitive advantage
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
52. Because of its highly efficient and low-cost distribution system, Andro Stores Inc., a multinational retail corporation,
hasanedgeoveritsrivals.Andro’scompetitorswillfinditdifficulttoreproducesuchadistributionsysteminthe
foreseeable future. It is clear, then, that Andro has a(n) _____ over its competition.
a. effective competitive advantage
b. absolute advantage
c. sustainable competitive advantage
d. controllable advantage
e. comparative advantage
53. J.C. Penney is presently involved in a process of assessing marketing opportunities and resources, determining
marketing objectives, redefining marketing strategies, and developing guidelines for implementation and control. It is
evident, then, that J.C. Penney is involved in the process of:
a. benchmarking.
b. marketing planning.
c. total quality management.
d. SWOT analysis.
e. market capitalization.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
54. Which of the following is not a purpose of the marketing plan?
a. Communicating internally with employees
b. Assigning tasks and responsibilities for implementation
c. Specifying the allocation of resources
d. Monitoring the performance of a marketing strategy
e. Serving as a contract with the customer
55. Andromeda Corp.’s new shampoo, Pearl, is faltering badly in the market. Andromeda’s marketing personnel are
unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources
havebeenallocated.Andromeda’smarketingdirector,CarolynWillis,saidthattheproblemisthatPearlhasthe
most poorly written _____ she has ever seen.
a. marketing plan
b. competitive plan
c. implementation plan
d. media schedule
e. product specification sheet
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
56. The Evergreen Corporation conducts a SWOT analysis of its competition, and sees a marketing opportunity for its
new Evergreen restaurant. It develops its marketing plan to include the type of products it will sell, the location for
therestaurant,andthepricingitwilluse.Evergreen’splanincludesamarketingobjectivetomakeaprofitof5%in
the first year of operation. So far, the owners of the Evergreen restaurant have eliminated a key piece of the
marketing plan, which is _____.
a. specifying how they will achieve their marketing objective
b. howtheywilladdresstheircompetitors’prices
c. coming up with a quantitative measure for their objective
d. developing a qualitative measure for their objective
e. assessing their weaknesses
57. The process of putting marketing strategies into action is called:
a. marketing implementation.
b. marketing control.
c. market capitalization.
d. marketing auditing.
e. the marketing action plan.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
58. Ashman’s Deli operates seven retail stores throughout the city. It plans to develop a new marketing plan to extend
its number of stores and operating hours. In developing this marketing plan, it has asked its employees for feedback
onthechangesitplanstomakes.Inthiscase,theemployeesareAshman’s_____.
a. external customers
b. extended customers
c. intended customers
d. internal customers
e. domestic customers
59. If Orca Motor Company, an American multinational automaker, measured and evaluated the quality of its goods,
services, and processes as compared with those of the best-performing companies in the automobile industry, it
would be engaging in the process of:
a. total quality management.
b. internal marketing.
c. external marketing.
d. SWOT analysis.
e. benchmarking.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
60. An expected level of performance against which actual performance can be compared is a:
a. strategic window.
b. performance objective.
c. performance indicator.
d. performance standard.
e. core competency.
61. Androme Business Products Co. distributes its business supply products through direct sales personnel. Recently,
the company has established a monthly sales quota of $150,000 for each sales representative. This is an example of
a(n):
a. core competency.
b. strategic window.
c. evaluation standard.
d. performance indicator.
e. performance standard.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
62. One way that Reiko Inc., a Japanese manufacturer of automobiles and motorcycles, evaluates its product and
service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Reiko
is:
a. controlling marketing activities.
b. taking corrective action.
c. empowering its employees.
d. evaluating actual performance.
e. setting performance standards.
63. Marketing managers can take each of the following corrective actions for reducing a discrepancy between
established performance standards and actual performance except:
a. improving actual performance.
b. reducing the performance standard.
c. totally changing the performance standard.
d. changing the marketing strategy.
e. coordinating a new step in performance analysis.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
64. The time lag between the performance of marketing activities and their results:
a. limits the marketing manager’s ability to measure the effectiveness of marketing activities.
b. facilitates the ability to measure performance.
c. increases the chance of accurate measurement.
d. limits the amount of money to be spent on measurement.
e. increases the likelihood of having a successful marketing mix.
65. The marketing plan:
a. is a plan of all the aspects of an organization’s business strategy.
b. provides varied marketing visions for the firm and is the basis for external communications.
c. is a written document that specifies the marketing activities to be performed to implement and evaluate the
organization’smarketingstrategies.
d. is generally inaccessible and is not usually shared with all key employees.
e. is designed to specify not only marketing but all other functional areas of business activities as well.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
66. Orion Inc. is in the process of preparing a written document specifying the marketing activities to be performed to
implementandevaluatetheorganization’smarketingstrategies.Thisdocumentiscalledthe:
a. product specification sheet.
b. marketing program.
c. mission statement.
d. marketing strategy.
e. marketing plan.
67. Which of the following is a characteristic of a marketing objective?
a. It is consistent with both business-unit and corporate strategies.
b. It is a verbal agreement, not in writing.
c. It is not written in measurable terms.
d. It does not specify a time frame for its accomplishment.
e. It clearly identifies how the marketing strategy will be implemented.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
68. Which of the following statements is incorrect?
a. Of the three levels of planning, corporate strategy is the broadest.
b. The business-unit strategy should be consistent with the corporate strategy.
c. The marketing strategy should be consistent with both the business-unit and corporate strategies.
d. Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.
e. Strategic planning begins at the corporate level and proceeds through business-unit and marketing levels.
69. Alexhasbeenanalyzingtheinformationfromhiscompany’sdatabaseaboutcustomerpurchasinghabitssinceheis
responsible for managing the growth of the industrial supply division of his company. Alex plans to use the
information from his analysis to create new marketing strategies that will develop and sustain relationships with
those customers who are more profitable for the company. What type of concept is Alex using?
a. Strategic marketing management
b. Electronic data interchange
c. Business-to-consumer marketing
d. Strategic partnerships
e. The marketing concept
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
70. A marketing plan:
a. is characteristic of production-oriented firms and other mass producers.
b. provides a framework for implementing and controlling marketing activities.
c. always increases the marketing manager’s operating costs.
d. produces plans that are short term in orientation.
e. restricts the marketing manager’s future options.
71. The first component of a marketing plan is the:
a. executive summary.
b. SWOT analysis.
c. performance evaluation.
d. environment analysis.
e. marketing implementation.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies