d.
product development
e.
diversification
63. Pajamagrams was only marketing pajamas to women. Now they offer pajamas for men and kids. This
is an example of a _____ strategy.
a.
market development
b.
product development
c.
market penetration
d.
product penetration
e.
divestment
64. LVMH, a maker of luxury-goods, has expanded its products offerings into China, Russia, India and the
Middle East. This exemplifies a _____ strategy.
a.
market development
b.
product development
c.
market penetration
d.
diversification
e.
product expansion
65. _____ is a strategy that creates new products for present markets.
a.
Product penetration
b.
Market penetration
c.
Product development
d.
Market development
e.
Diversification
66. Kraft introduced Philadelphia Ready-to-eat Cheesecake Filling for those who do not have time to
make cheesecake in the traditional manner. This is an example of a _____ strategy.
a.
diversification
b.
market development
c.
product development
d.
divestment
e.
product penetration
67. The marketing of organic cotton tees for Life is Good’s existing customers would be an example of a
_____ strategy.
a.
market development
b.
product development
c.
market penetration
d.
product penetration
e.
diversification
68. Clay Market began as a retailer of terra cotta pots and garden figures imported from Turkey and
Mexico. It has since added Turkish rugs and fabrics, leather trimmed purses, and a line of women’s
clothes for its customers. These activities are indicative of a _____ strategy.
a.
vertical integration
b.
market penetration
c.
diversification
d.
product development
e.
market development
69. The Hallmark Company was inspired by the popularity of Jan Karon’s best-selling novels about
Mitford, a fictional town in the mountains of North Carolina, to develop a new line of products for
Hallmark Gold Crown Stores nationwide. Hallmark created hundreds of Mitford-inspired products that
authentically bring “the little town with the big heart” into tangible reality. The products include
greeting cards, partyware and gift wrap, mugs, and puzzles for Hallmark’s existing customers.
Hallmark used a _____ strategy.
a.
market development
b.
market penetration
c.
product penetration
d.
product development
e.
diversification
70. _____ is the strategy of increasing sales by introducing new products into new markets.
a.
Product penetration
b.
Product development
c.
Market penetration
d.
Market development
e.
Diversification
71. Orange growers in Florida have lost millions of dollars due to hurricanes. As a result, some growers
have decided to bulldoze their orange groves and put in freshwater lakes for raising shrimp, a product
that has a strong popularity and is more weather-resistant. Former orange growers who are now raising
shrimp are pursuing a _____ strategy.
a.
market penetration
b.
product development
c.
diversification
d.
market development
e.
product penetration
72. The company that manufactures Molson beer, which is typically consumed by males, launched an
alcoholic lemonade beverage to attract more females. This launch of a new product to attract a new
market for Molson’s products is an illustration of a _____ strategy.
a.
market development
b.
market penetration
c.
product penetration
d.
product development
e.
diversification
73. For most American consumers, the brand name Benetton brings to mind a retail-clothing store that
carries many products that bear the Benetton brand. But Edizone Holding, which also owns a chain of
restaurants, several toll roads in Italy, and a telecommunications company, holds the Benetton Group.
The list of the company’s holdings indicates that the company’s managers believe in growth through:
a.
market penetration
b.
diversification
c.
product development
d.
market development
e.
market integration
74. Pure Digital Technologies created the Flip, which is a digital camera that is priced around $150. It
filled a gap between expensive digital cameras and web cams. The flip plugs straight into your
computer and the video can easily be viewed and shared instantly. Creating a new product for a new
market is called _____.
a.
divestment
b.
segment development
c.
target marketing
d.
diversification
e.
directed growth
75. The _____ is a tool for allocating resources among products or strategic business units on the basis of
relative market share and market growth rate.
a.
market audit
b.
portfolio matrix
c.
experience matrix
d.
market development analysis
e.
market opportunity analysis
76. All of the following are categories used in the Boston Consulting Group’s portfolio matrix EXCEPT:
a.
cash cows
b.
stars
c.
problem children
d.
meat eaters
e.
dogs
77. Which of the following category in the Boston Consulting Group’s portfolio matrix is a market leader
and growing fast?
a.
star
b.
meteor
c.
cash cow
d.
shiner
e.
top dog
78. Russell Athleticwear, which is part of Berkshire Hathaway, Inc., is a market leader in the sports
apparel industry, an industry that is growing rapidly. Russell Athleticwear is an example of a(n) _____
according to the portfolio matrix.
a.
star
b.
question mark
c.
problem child
d.
exclamation point
e.
widow
79. A business unit that usually generates more than it needs to maintain its market share is called a(n)
_____ in a portfolio matrix.
a.
star
b.
cash cow
c.
problem child
d.
dog
e.
independent
80. Tide laundry detergent is the market leader, but overall industry growth is low in this market. Tide
would be classified as a _____ in a portfolio matrix.
a.
star
b.
cash cow
c.
problem child
d.
question mark
e.
dog
81. Which of the following represents a business unit that shows rapid growth but poor profit margins?
a.
star
b.
cash cow
c.
problem child
d.
loss leader
e.
dog
82. Before Heinz sold its 9-Lives brand cat food unit, the company identified the product as having a low
market share in a high-growth market. The portfolio matrix would classify 9-Lives as a(n):
a.
star
b.
exclamation point
c.
problem child
d.
cash cow
e.
widow
83. John R. Harland Company is best known for printing checks. Its Financial Solutions division develops
software for mortgage companies and is currently producing much less than the desired level of
profitability in a high-growth industry. According to the portfolio matrix, Harland would label its
Financial Solutions division as a(n):
a.
widow
b.
exclamation point
c.
problem child
d.
star
e.
dog
84. In the portfolio matrix, a business unit that has low growth potential and a small market share is called
a(n):
a.
widow
b.
problem child
c.
cash cow
d.
dog
e.
bust
85. All of the following are basic strategies resulting from a portfolio analysis EXCEPT:
a.
harvest
b.
build
c.
hold
d.
divest
e.
milk
86. John R. Harland Company is best known for printing checks. Its Financial Solutions division develops
software for mortgage companies, which is a growing industry. This division is currently not
producing at the desired level of profitability, but Harland plans to turn the division into a success by
acquiring other companies that develop similar software. Harland would be engaging in a _____
strategy.
a.
harvesting
b.
diversification
c.
divesting
d.
holding
e.
building
87. A(n) _____ describes and estimates the size and sales potential of market segments of interest to the
firm and assesses key competitors in these market segments.
a.
marketing orientation
b.
environmental scan
c.
marketing mix audit
d.
target market strategy
e.
market opportunity analysis
88. Heinz is introducing four hundred new products in the next two years. To know which markets to
reach they should first perform a _____.
a.
market diversification analysis
b.
market audit
c.
social audit
d.
market opportunity analysis
e.
niche analysis
89. The _____ is the unique blend of product, distribution, promotion, and pricing strategies designed to
produce mutually satisfying exchanges with a target market.
a.
internal environmental mix
b.
marketing mix
c.
product mix
d.
product line
e.
market portfolio
90. Ocean Spray’s development of Craisins sweetened dried cranberries to compete against raisins most
directly affected the _____ element of the company’s marketing mix.
a.
place
b.
production
c.
product
d.
distribution
e.
target market
91. Apple Inc. is now offering the iPhone 3G for half its original price. This new strategy reflects a change
in the _____ element of its marketing mix.
a.
price
b.
production
c.
product
d.
distribution
e.
target market
92. The starting point of any firm’s marketing mix is the:
a.
analysis of what production equipment is available and owned by the company
b.
design of the promotion campaign to be used for the product
c.
selection of the places through which the good or service will be sold
d.
determination of the product’s price, enabling future revenues and budgets to be estimated
e.
development of the good or service to be sold
93. Lands End guarantees their products for as long as you own them. They would seem most concerned
with which element of the marketing mix?
a.
price
b.
distribution
c.
personalization
d.
promotion
e.
product
94. Golden Valley Microwave Foods, Inc. is the manufacturer of ACT II popcorn. In its early years, the
company had trouble financing the development and marketing of products for the microwave, so it
chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn
in supermarkets or grocery stores. Which element of the marketing mix was most influenced by this
arrangement?
a.
product
b.
place
c.
price
d.
public relations
e.
promotion
95. Making sure products are available when and where customers want them is the job of which element
of the marketing mix?
a.
advertising strategies
b.
production strategies
c.
product strategies
d.
promotion strategies
e.
distribution strategies
96. InBev bought Anheuser Busch. How will this purchase affect InBev’s marketing mix?
a.
It will only affect the product element of InBev’s marketing mix.
b.
It will only affect InBev’s four Ps—not its marketing mix.
c.
It will affect all of InBev’s marketing mix elements, either directly or indirectly.
d.
It will not affect the promotion or distribution elements of the InBev marketing mix.
e.
It will have no affect on InBev’s marketing mix.
97. SoBe nutritional beverages uses twin lizards on every bottle of its products and in all of its promotion
efforts. It even has its own Team Lizard made up of skateboarders, mountain bike riders, and inline
skaters that it sponsors. The lizard is used to remind consumers of the product and its benefits. To
which of the four Ps does this represent?
a.
promotion
b.
price
c.
publicity
d.
place
e.
product
98. Which of the marketing mix elements is the most flexible?
a.
product
b.
promotion
c.
publicity
d.
place
e.
pricing
99. Apple’s iPhone can only be purchased through AT&T cell phone distributors and the Apple retail
store. This limitation on the _____ element of its marketing mix supports the product’s competitive
advantage.
a.
planning
b.
product
c.
promotion
d.
distribution
e.
production
100. There is an overabundance of apartments in Atlanta. Post Properties, the owner of many of the
metropolitan area’s largest apartment complexes, has reduced its rent so it can fill vacant apartments.
Which marketing mix element did Post Properties change to create more demand for its apartments?
a.
production
b.
personnel
c.
distribution
d.
product
e.
price
101. _____ is the process that turns marketing plans into action assignments and ensures these assignments
are executed in a way that accomplishes the plan’s objectives.
a.
Mechanistic control
b.
Strategic analysis
c.
Implementation
d.
Strategic planning
e.
Strategic design
102. General Motors Corporation has a goal of launching an electric vehicle soon. The car has been in test
drives and they are in the process of working out any bugs that may occur. GM is in the process of
working toward mass production of the vehicle. They are in what stage of the marketing plan?
a.
product planning
b.
mechanistic organization
c.
synergistic control
d.
strategic diversification
e.
implementation
103. Compass is a United Kingdom-based catering company that has developed a marketing plan designed
to make it the largest caterer in China within the next two decades. As part of its marketing _____, it
has already begun serving meals on trains that run between Shanghai and Beijing.
a.
policy
b.
implementation
c.
evaluation
d.
control
e.
strategy
104. _____ is the process of gauging the extent to which marketing objectives have been achieved during a
specified time period.
a.
Implementation
b.
Control
c.
Heuristic measurement
d.
Evaluation
e.
Mechanistic compliance
105. _____ provides the mechanism for evaluating marketing results in light of the marketing plan’s goals
and for correcting actions that do not help the marketing organization reach these objectives within the
budget guidelines.
a.
Control
b.
Implementation
c.
Reengineering
d.
Planning
e.
Budgeting
106. An international company that needs to develop a way to compare its actual marketing results with
planned results must engage in:
a.
external market research
b.
implementation
c.
comparative analyses
d.
planning
e.
control
107. All of the following are common reasons why companies fail to achieve a marketing objective
EXCEPT:
a.
unrealistic marketing objectives
b.
poor implementation
c.
plan not formalized
d.
inappropriate marketing strategy
e.
changes in the environment after the objective was specified and the strategy implemented
108. A marketing audit is a(n):
a.
thorough, systematic, periodic evaluation of the objectives, strategies, structure, and
performance of the marketing organization
b.
financial examination of the firm’s marketing performance
c.
financial examination of the firm’s accounting records performed by outside consultants
d.
evaluation of the effectiveness of advertising
e.
evaluation of pricing strategies across all the relevant competitors in an industry
109. Le Feast is a catering company that has developed a marketing plan designed to make it the largest
caterer in the country within the next two decades. Which of the following will be useful to the
company to evaluate how successful its efforts have been at the end of the first decade?
a.
SWOT analysis
b.
environmental scan
c.
competitive analysis
d.
marketing audit
e.
comprehensive sales analysis
110. A planning manager visiting a company’s health and beauty aids division discovers the division has no
effective method for allocating resources, nor for evaluating actual results against planned results. He
suggestion to the division would likely be to prepare a:
a.
marketing audit
b.
contingency plan
c.
service audit
d.
market share analysis
e.
series of tactical evaluations
111. Which of the following statements about marketing audits is true?
a.
Marketing audits only need to be performed once.
b.
The main purpose of the marketing audit is to develop a full profile of a company’s
marketing effort.
c.
Marketing audits are only necessary after a major crisis.
d.
Marketing audits simply examine the external environment in which a company operates.