Refer to the scenario below to answer the following question(s).
Fun-Spot Fun Park began as a small amusement park in 1985. With nothing more than a merry-
go-round, a slide, pony rides, and an ice cream stand, Fun-Spot grew into a popular family
attraction with 20 rides, a restaurant, and an outdoor performing arts theater.
“My wife, Gail, and I didn’t know what we were getting into,” commented Ron Hart, the owner.
“We just knew that weekenders coming to the lakes in our rural area represented an untapped
market.”
Today, thousands of visitors flock to Fun-Spot: families, children of all ages, and even senior
citizens who enjoy strolling through the gardens and the arbors. “There’s something here for
everyone,” Gail Hart said with a smile. “Dozens of companies hold annual company picnics
here. We have welcomed class field trips. And we even had one wedding here at the park!”
“Here’s the funny thing,” Ron chimed in. “We really don’t know why we’ve been so successful.
There is nothing else like Fun-Spot Fun Park in the area. We were just lucky.” “I think it’s the
ambience of the park that has brought so many visitors,” Gail added. “We provide a ‘total
package’ of entertainment. Plus, we try to change our rides and various attractions from time to
time for variety.”
Ron and Gail Hart admitted that making every visitor happy is a priority. “That has always
been our philosophy,” they said. “Like the park’s motto at the entrance reads, ‘We’re here to
make you happy!’ And we’ve always been able to deliver on that because we’ve never allowed
ourselves to grow too big too quickly.”
66) Fun-Spot’s mission is ________.
A) product oriented
B) technology oriented
C) market oriented
D) design oriented
E) narrowly focused on profits
67) Fun-Spot Fun Park represents a high-growth, high-share business. According to the BCG
matrix, it can be classified as a ________.
A) star
B) question mark
C) bear
D) cat
E) dog
68) Ron and Gail plan to lower Fun-Spot’s prices in an effort to encourage customers to stay
longer, visit more often, and spend more money during each visit. What type of strategy are
Ron and Gail planning?
A) market penetration
B) market development
C) product development
D) product adaptation
E) diversification
69) Ron and Gail, owners of Fun-Spot, strive to provide new offerings and entertainment
options for their visitors. This type of strategy can be best described as ________.
A) market penetration
B) market development
C) product development
D) niche marketing
E) diversification
70) The major activity in strategic planning is business portfolio analysis, whereby
management evaluates the products and businesses that make up the company.
71) The major activity in strategic planning is product innovation.
72) On the BCG matrix, “question marks” are high-growth, high-share businesses or products.
73) Market penetration involves offering modified or new products to current markets.
74) Market development involves company growth by identifying and developing new market
segments for current company products.
75) An American airline company started a grocery chain in Australia. This is an example of
product development.
76) Company growth through diversification involves offering modified or new products to the
company’s current markets.
77) What is a strategic business unit (SBU)?
78) What are stars according to the BCG growth-share matrix?
79) What type of strategy should a company use to manage its cash cows?
80) Define market penetration.
81) What is a business portfolio? What are the steps involved in business portfolio planning?
82) What is a growth-share matrix? Discuss the BCG growth-share matrix.
83) What are some of the problems associated with matrix approaches?
84) Marketing plays a key role in the company’s strategic planning in all of these ways
EXCEPT ________.
A) providing input to identify attractive market opportunities
B) designing new products from scratch
C) creating customer value and building profitable relationships with customer groups
D) designing strategies for reaching a unit’s objective
E) providing a guiding philosophy
85) Each department in a company that carries out value-creating activities can be thought of as
a link in the company’s ________.
A) channel of intermediaries
B) external value stream
C) demand chain
D) internal value chain
E) supplier chain
86) RedFin manufactures diving equipment that is highly regarded by customers worldwide.
Each department in RedFin contributes to its success and can be thought of as a(n) ________.
A) link in the company’s internal value chain
B) separate organization
C) independent subsidiary of the company
D) separate market segment
E) SBU
87) The network made up of the company, its suppliers, its distributors, and, ultimately, its
customers who partner with each other to improve the performance of the entire system is
known as the ________.
A) business portfolio
B) supply chain
C) marketing mix
D) value delivery network
E) internal value chain
88) Customer engagement and value are the key ingredients in the marketer’s formula for
success.
89) Each department in a company can be thought of as a link in the company’s internal value
chain.
90) Since companies want to work together to attract customers, marketers do not need to
practice partner relationship management.
91) What factors determine the success of a company’s value chain?
92) What are the various components of the value delivery network of a company?
93) What is a value delivery network?
94) The marketing logic by which a company hopes to create customer value and achieve
profitable customer relationships is referred to as the ________.
A) price
B) marketing implementation
C) value chain
D) marketing strategy
E) downsizing
95) Which of the following is an element of the marketing mix?
A) place
B) education
C) needs
D) wants
E) esteem
96) Which of the following is NOT part of a company’s decision about which customers it will
serve and how?
A) differentiation
B) targeting
C) budgeting
D) segmentation
E) positioning
97) Which of the following is NOT an element of the marketing mix?
A) place
B) purchase
C) product
D) price
E) promotion
98) Customers can be grouped and served in various ways based on several factors. These
include all of the following EXCEPT ________ factors.
A) psychographic
B) behavioral
C) technological
D) demographic
E) geographic
99) Market segmentation can be best described as the process of ________.
A) assigning specific human attributes to a given brand
B) dividing a market into distinct groups of buyers who have different needs, characteristics, or
behaviors, and who might require separate marketing programs
C) evaluating each market segment’s attractiveness and selecting one or more segments to enter
D) turning marketing plans into marketing actions to accomplish strategic marketing objectives
E) maintaining a strategic fit between organizational goals and changing marketing
opportunities
100) Teenagers are expected to respond in a similar way to a set of marketing efforts. In other
words, this group represents a ________.
A) channel intermediary
B) line extension
C) market segment
D) product attribute
E) brand personality
101) Each company must divide up the total market, choose the best segments, and design
strategies for profitably serving chosen segments. This process involves market segmentation,
________, differentiation, and positioning.
A) market targeting
B) marketing implementation
C) supply-chain analysis
D) price discrimination
E) market diversification
102) Which of the following refers to the process of dividing a market into distinct groups of
buyers with different needs, characteristics, or behaviors?
A) market diversification
B) market segmentation
C) downsizing
D) customer relationship management
E) prospecting
103) Rob has been asked by his manager to identify a group of potential customers who would
respond in a similar way to a given set of marketing efforts. In this instance, Rob has been
asked to identify a ________.
A) new product
B) market segment
C) marketing intermediary
D) brand
E) product line
104) The process of evaluating each market segment’s attractiveness and selecting one or more
segments to enter is known as ________.
A) market segmentation
B) diversification
C) market targeting
D) prospecting
E) downsizing
105) Paul Robinson has identified a group of potential customers who seem to respond in a
similar way to a series of magazine and radio advertisements for his company’s product. Paul
has identified a ________.
A) target market
B) market segment
C) niche market
D) product attribute
E) product design
106) Which of the following is true with regard to a market segment?
A) A market segment consists of consumers with dissimilar needs and preferences.
B) A market segment consists of consumers who respond in a similar way to a given set of
marketing efforts.
C) Very few markets have segments.
D) Dividing the market into segments decreases the efficiency of the selling process.
E) Dividing the market into segments reduces composite demand.
107) The process of arranging for a product to occupy a clear, distinctive, and desirable place
relative to competing products in the minds of target consumers is known as ________.
A) market segmentation
B) differentiation
C) target marketing
D) market targeting
E) positioning
108) Crocus, a gift store, specializes in serving customer segments that major competitors
overlook and ignore. Which of the following best describes Crocus?
A) market follower
B) market challenger
C) early adopter
D) market nicher
E) laggard
109) Arrow is “a different kind of company, manufacturing a different kind of a car”; the
RoadPro is “like nothing else.” Statements such as these reflect a firm’s ________.
A) portfolio
B) marketing segment
C) positioning
D) marketing mix
E) mission statement
110) Alpha Motors offers “Green automobiles for a greener world.” This refers to the ________
of Alpha automobiles.
A) brand resonance
B) position
C) brand equity
D) pleasure value
E) added value
111) Arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers is known as ________.
A) positioning
B) segmenting
C) diversifying
D) prospecting
E) satisficing
112) Effective positioning begins with ________.
A) pricing
B) diversification
C) differentiation
D) promotion
E) segmentation
113) Which of the following Ps in the marketing mix describes the goods-and-services
combination the company offers to the target market?
A) price
B) promotion
C) product
D) place
E) package
114) In the marketing mix, design, packaging, services, and variety can be categorized under
________.
A) product
B) price
C) promotion
D) place
E) position
115) In the context of a company’s marketing mix, ________ includes company activities that
make the product available to target consumers.
A) position
B) place
C) price
D) promotion
E) branding
116) In the marketing mix, place includes ________.
A) logistics
B) discounts
C) sales promotion
D) advertising
E) packaging
117) ________ refers to activities that communicate the merits of the product and persuade
target customers to buy it.
A) Position
B) Promotion
C) Pricing
D) Segmentation
E) Prospecting
118) To succeed in today’s competitive marketplace, companies must be product-centered.
119) Dividing a market into distinct groups of buyers who have different needs, characteristics,
or behaviors, and who might require separate products or marketing programs is known as
market diversification.
120) A market segment consists of consumers who respond in different ways to a given set of
marketing efforts.
121) A product’s position is the place it occupies relative to competitors’ products in consumers’
minds.