Marketing Chapter 2 Navigation Blooms Understand Difficulty Medium Learning Objective Discuss The Importance Strategic Planning

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Accessibility: Keyboard Navigation

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 02-05 Explain the basic tools and techniques of marketing strategy: segmentation, strategic direction, and the marketing mix.

Topic: Elements of a Marketing Strategy

107. Arm & Hammer baking soda is best known for its use in baking. The company, however, would like to increase its market

share to include household and personal care products. By taking the original product and creating new products that it can sell

to its existing markets, the company is using a _____ _____ strategy.

108. John’s Fitness Club was originally geared toward men who primarily wanted to lift weights. John has developed an ad

campaign designed to inform women of the benefits of weight lifting in hopes of increasing memberships at the club. In this

example, John is using a _____ _____ strategy.

109. _______ strategies seek to attract new customers by offering new products that are unrelated to the existing products

produced by the organization.

110. The _____ section of the marketing plan comprises a detailed description of not only the good or service itself, but also any

warranties or guarantees.

111. A product possesses a _____ _____ when it enjoys a superior position over competing products because consumers

believe it has more value than other products in its category.

112. Whether or not a firm will use advertising, sales promotion, personal selling, or public relations is outlined in the _______

section of the marketing plan.

113. Distribution strategies fall within the _______ marketing mix element.

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Topic: Elements of a Marketing Strategy

114. Typically, the least-risky option for entering international markets is _______.

115. _______ helps to overcome barriers such as increased regulation, rising research and development costs, and shortened

product lifestyles, which is why the use of this market-entry strategy has increased significantly in recent years.

116. If Camille decided she wanted to open a Starbucks store overseas, she would be using the market-entry strategy known as

________.

117. The market-entry strategy whereby a foreign company partners with a domestic firm to create a new entity and thus allows

the domestic firm to enter the foreign company’s market is referred to as ______ ______.

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Difficulty: 1 Easy

Learning Objective: 02-06 Discuss the strategic decisions involved in reaching international consumers.

Topic: Market Entry Strategies

118. The riskiest method of entering an international market is _____ _____.

119. The practice of measuring, managing, and analyzing marketing performance is called marketing _____.

120. Organizations use _____ _____ _____ _____ to measure the firm’s effectiveness in using the resources allocated to its

marketing effort.

121. The percentage of the total market sales captured by a brand, product, or firm is called _____ _____.

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Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 02-07 Describe the use of four key marketing analytics: return on marketing investment (ROMI), revenue analysis, market share analysis, and profitability analysis.

Topic: Marketing Analytics

122. The positive gain from a business operation after subtracting all expenses is referred to as ______.

123. Strategic planning is a process that is done only once, when the firm is defining its objectives and setting a course for

achieving those objectives.

124. The mission statement should be customer oriented and focused on satisfying basic customer needs and wants.

125. An action-oriented document or playbook that guides the analysis, implementation, and control of the firm’s marketing

strategy is the business plan.

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Difficulty: 1 Easy

Learning Objective: 02-03 Outline the five main components of the marketing plan.

Topic: The Marketing Plan

126. Each component of a marketing plan should be grounded in the firm’s overall mission.

127. If done correctly, the executive summary should be a comprehensive document outlining every aspect of the marketing

plan, down to the last detail.

128. The situation analysis section of the marketing plan consists of a market summary, a SWOT analysis, and a competition

analysis.

129. The is the group of consumers or organizations that are interested in and able to buy a particular product.

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Topic: Elements of the Marketing Plan

130. The projection of how many units of a product the company expects to sell during a specific time period is contained in the

expense forecast.

131. The BCG Matrix divides products into four categories: stars, question marks, cows, and skunks.

132. The group of products on the BCG Matrix that represents products that have a small market share in industries with low

growth rates is called dogs.

133. The internal considerations of a SWOT analysis are opportunities and threats.

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Topic: SWOT Analysis

134. The latest Surgeon General warning regarding diets high in fat, calories, and sodium would be considered a threat to fast–

food restaurants like McDonald’s and Burger King.

135. Positioning refers to the activities a firm undertakes to create a certain perception of its product in the eyes of the target

market.

136. Market penetration strategies focus on selling existing goods and services to new customers.

137. A marketing strategy that involves creating new goods and services for existing markets is a product development

strategy.

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Topic: Elements of a Marketing Strategy

138. The fact that Procter & Gamble has broadened its product offerings to include household cleaning products, laundry

products, snack products, and hair care products is an example of diversification.

139. Janie thinks that Kleenex is the best brand of facial tissue on the market and refuses to buy any other brand. For Janie,

Kleenex has established a competitive advantage over the competing products.

140. Selling domestically produced products to foreign markets is the least-risky option for entering international markets.

141. The use of licensing to enter international markets has increased significantly in recent years due to several factors,

including more regulation and rising research and development costs.

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Topic: Market Entry Strategies

142. Franchising is an attractive method of entering foreign markets because franchisors assume the majority of the capital

costs and human resource issues.

143. Direct ownership is the riskiest method of entering an international market.

144. Marketing strategy becomes more accountable when organizations base decisions on analytics.

145. Return on marketing investment (ROMI) indicates the rate at which spending on marketing contributes to expenses.

146. If a firm wanted to know how it is performing relative to its competitors, it would conduct a revenue analysis.

147. What are the three components that are analyzed as part of the situation analysis section of the marketing plan?

148. How are target market and positioning connected?

149. List and describe the international market entry strategies.

150. Describe the marketing analytics tools of revenue analysis, market share analysis, and profitability analysis.

151. Using the Marketing Growth Strategies covered in Figure 2.4, why did Taco Bell introduce a breakfast menu? Why does

Taco Bell also continually add items to its lunch/dinner menu and offer many short-term special menu items including special

Mountain Dew flavors?

152. You started an energy drink company in the United States that has been very successful. Your sales and profits have

leveled off lately, and you and your management team are now researching introducing your drinks outside the United States.

What market-entry strategies will you analyze if you want to keep your risk and initial investment low?

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Chapter 02 Test Bank Summary