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Preview Extract
Name:
Class:
Date:
Chapter 2
1. A diversification strategy can be risky when a firm is entering unfamiliar markets.
a. True
b. False
ANSWER:
True
RATIONALE:
A diversification strategy can be risky when a firm is entering unfamiliar markets. See 2-3:
Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Diversification
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ABYQAS7600N8G16CZ730
QUESTION ID:
JFND-GO4G-G3BU-KPTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-CFTU-O3TA-COAD-1PJ3COSU-OAUN-8YSS-NQMB-GOSU-KQMG-GCSU-RC5R-G7TG-CPBZ-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
2. A company’s skills are functions—such as customer service and promotions—that the firm performs better than its
competitors.
a. True
b. False
ANSWER:
True
RATIONALE:
Skills are functions—such as customer service and promotions—that the firm performs better
than its competitors. Marketing managers should continually focus the firm’s skills and assets
on sustaining and creating competitive advantages. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Remember
BUSPROG: Analytic
Sustainable Competitive Advantage
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ANCJRTK309XAG33WG950
QUESTION ID:
JFND-GO4G-G3BU-KP1G
Cengage Learning Testing, Powered by Cognero
Page 1
Name:
Class:
Date:
Chapter 2
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-CR4D-Q3TZ-GRAS-KCMRCESU-1CT3-CESS-CPT1-GOSU-GA3T-CCSU-C3UG-CE3G-NPTU-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
3. A market segment is a group of individuals or organizations who share one or more characteristics.
a. True
b. False
ANSWER:
True
RATIONALE:
A market segment is a group of individuals or organizations who share one or more
characteristics. See 2-8: Describing the Target Market
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Remember
BUSPROG: Analytic
Target Markets
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: BBYJJVG6TBD57MHUF485
QUESTION ID:
JFND-GO4G-G3BU-KP1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJW-GWAU-NCJI-8YAD-O3MFGASU-R3TI-CRSS-NPBW-GOSU-1C33-GRSS-RCJW-GRAS-KQBI-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
4. Organizations use product development strategies to serve customers in their existing markets.
a. True
b. False
ANSWER:
True
RATIONALE:
A product development strategy entails the creation of new products for present markets. See
2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Product Development
DATE CREATED:
5/1/2015 4:22 PM
Cengage Learning Testing, Powered by Cognero
Page 2
Name:
Class:
Date:
Chapter 2
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: BGLZH0D41W9HNXZQ9048
QUESTION ID:
JFND-GO4G-G3BU-KP1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-GIUD-Q3MF-GJOU-YQDD8YSS-CCB3-CRSS-RPTU-GOSS-NP5N-CASU-YQDG-8Y5D-YAJ3-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
5. A product/service differentiation competitive advantage refers to defining a business in terms of goods and services
rather than in terms of the benefits customers seek.
a. True
b. False
ANSWER:
False
RATIONALE:
A product/service differentiation competitive advantage exists when a firm provides
something that is unique and valuable to buyers beyond simply offering a lower price than
that of the competition. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Remember
BUSPROG: Analytic
Product Differentiation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: CVKV0GQ74X1XT6TRA220
QUESTION ID:
JFND-GO4G-G3BU-KP1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-CC4G-GAUG-GE3U-RPT3CASU-O3JU-CRSU-OPTO-GOSU-K3TI-CWSU-RCJ1-G71U-RPUR-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
6. A company that sells paper stationery made of recycled materials, which no other paper manufacturing company in the
market has the ability produce, has a competitive advantage.
a. True
b. False
ANSWER:
True
RATIONALE:
A sustainable competitive advantage is one that cannot be copied by the competition. The
key to having a competitive advantage is the ability to sustain that advantage. See 2-6:
Competitive Advantage
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
Cengage Learning Testing, Powered by Cognero
Page 3
Name:
Class:
Date:
Chapter 2
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Apply
BUSPROG: Reflective Thinking
Sustainable Competitive Advantage
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: EDUFQAN0TWSZ4DSEW115
QUESTION ID:
JFND-GO4G-G3BU-KPTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-GC4U-KQJS-8Y3D-YP33-GCSSGPJ1-8RSS-KC3T-GOSS-GPJ1-CESU-C3JW-GA5G-EPDR-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
7. An ideal marketing penetration strategy would be to offer cash backs and discounts on products to customers.
a. True
b. False
ANSWER:
True
RATIONALE:
A firm using the market penetration alternative would try to increase market share among
existing customers. An ideal marketing penetration strategy would be to offer cash backs and
discounts on products to customers. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Market Penetration
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: EXYS0GV7P45E55TWC949
QUESTION ID:
JFND-GO4G-G3BU-KPT1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMG-GR4G-G3DB-GFOU-QQMFCRSU-OAJ3-8YSU-E3BO-GOSS-E3TI-8RSU-OATT-CI1S-GPUD-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
8. Marketing managers rely on customer databases for effective implementation of the market penetration strategy.
a. True
b. False
ANSWER:
True
RATIONALE:
A firm using the market penetration alternative would try to increase market share among
Cengage Learning Testing, Powered by Cognero
Page 4
Name:
Class:
Date:
Chapter 2
existing customers. Customer databases would help managers implement this strategy. See 23: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Market Penetration
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: FCXHJBPJF938FH705361
QUESTION ID:
JFND-GO4G-G3BU-KPTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-CTTG-E3JW-CO5U-NPTS-GASSKPBZ-CESU-G3BS-GOSS-GCBA-8RSU-KC3U-C3UD-1PJW-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
9. Individuals in the age group of 12 to 18 years, who extensively use the internet is an example of a market segment.
a. True
b. False
ANSWER:
False
RATIONALE:
A market segment is a group of individuals or organizations who share one or more
characteristics. They therefore, may have relatively similar product needs. For example,
parents of newborn babies need formula, diapers, and special foods. See 2-8: Describing the
Target Market
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Apply
BUSPROG: Reflective Thinking
Target Markets
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: JXPJCT0Y0KZ4YYVZQ102
QUESTION ID:
JFND-GO4G-G3BU-KPTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMN-GOAD-QP31-CITG-KQJOGRSU-N3UN-CRSU-GCDR-GOSS-RQMD-GWSU-E3BZ-CITS-RPTU-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
Cengage Learning Testing, Powered by Cognero
Page 5
Name:
Class:
Date:
Chapter 2
10. Target markets can be selected by appealing to the entire market with one marketing mix.
a. True
b. False
ANSWER:
True
RATIONALE:
Target markets can be selected by appealing to the entire market with one marketing mix,
concentrating on one segment, or appealing to multiple market segments using multiple
marketing mixes. See 2-8: Describing the Target Market
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Remember
BUSPROG: Analytic
Target Markets
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: KRPLE6GY6UH9THNUJ216
QUESTION ID:
JFND-GO4G-G3BU-KPTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-GJ1U-RPUD-8R5S-NCBS-8YSSEPJ3-8RSU-CCBI-GOSU-OPUG-8YSU-QAUF-GR5U-QQDF-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
11. A company’s assets include patents, copyrights, and technology that are superior to those of the competition.
a. True
b. False
ANSWER:
True
RATIONALE:
Assets include patents, copyrights, locations, equipment, and technology that are superior to
those of the competition. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Remember
BUSPROG: Analytic
Sustainable Competitive Advantage
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: MLHKFQ0HWJRFQQNP6484
QUESTION ID:
JFND-GO4G-G3BU-KPTS
Cengage Learning Testing, Powered by Cognero
Page 6
Name:
Class:
Date:
Chapter 2
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJW-G7OU-EP5F-GWHU-EP5FCWSU-Q3JW-CRSS-R3UB-GOSU-EAUF-COSU-RCJ3-CA5S-GCBS-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
12. Market segments can be differentiated by ethnicity and multicultural aspects.
a. True
b. False
ANSWER:
False
RATIONALE:
If segments are differentiated by ethnicity, multicultural aspects of the marketing mix should
be examined. See 2-8: Describing the Target Market
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Remember
BUSPROG: Analytic
Target Markets
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: MQGHB5NTYEWEYTEDT888
QUESTION ID:
JFND-GO4G-G3BU-KPTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJT-GE3S-N3BO-GEAD-NPMBCOSU-1ATU-8YSS-NC3T-GOSS-GAUB-CWSS-RCJS-GA5G-G3DF-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
13. A market development strategy may involve creating new uses for old products to stimulate additional sales among
existing customers, while also bringing in new buyers.
a. True
b. False
ANSWER:
True
RATIONALE:
Market development means attracting new customers to existing products. Ideally, new uses
for old products stimulate additional sales among existing customers, while also bringing in
new buyers. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Cengage Learning Testing, Powered by Cognero
Page 7
Name:
Class:
Date:
Chapter 2
Market Development
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: NGCNVN5REZHQ17TRU250
QUESTION ID:
JFND-GO4G-G3BU-KPTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMN-CC4U-EC31-CJTU-YA5RCWSS-G3JS-CESS-NPJU-GOSU-NQMB-8YSU-NAT1-GE4S-CCTO-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
14. Marketing objectives must be consistent with and indicate the priorities of the organization.
a. True
b. False
ANSWER:
True
RATIONALE:
Objectives must also be consistent with and indicate the priorities of the organization. See 27: Setting Marketing Plan Objectives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.07 – 2-7
TOPICS:
A-head: Setting Marketing Plan Objectives
Bloom’s: Remember
BUSPROG: Analytic
Marketing Objectives
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: NMWPBYMWKT72W4DK9187
QUESTION ID:
JFND-GO4G-G3BU-KP4N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJI-CA3U-KCMB-CR3D-C3MF-GYSSGAMN-CRSS-CA5N-GOSU-EPUG-CASS-KPJZ-GHHD-EPJT-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
15. Product development strategies require creation of new markets.
a. True
b. False
ANSWER:
False
RATIONALE:
A product development strategy entails the creation of new products for present markets. See
2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
Cengage Learning Testing, Powered by Cognero
Page 8
Name:
Class:
Date:
Chapter 2
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Product Development
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: PBFUQQVS0EEVBPP1P396
QUESTION ID:
JFND-GO4G-G3BU-KP4B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMG-GP1D-CP3O-GPUG-NCMNCOSS-GATO-8YSU-1AT3-GOSS-EATW-COSS-EPMD-GJOS-ECUR-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
16. Diversification strategies involve increasing sales of existing products in existing markets.
a. True
b. False
ANSWER:
False
RATIONALE:
Diversification is a strategy of increasing sales by introducing new products into new
markets. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Diversification
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: QBYVT9JNGE4UG099N327
QUESTION ID:
JFND-GO4G-G3BU-KP33
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJZ-GB1U-K3UR-CFTS-KCUB-CESSC3MN-CRSU-CA3Z-GOSU-O3JZ-CESS-NAJO-CITU-ECBS-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
17. Market segments cannot be differentiated by demographic characteristics.
a. True
b. False
ANSWER:
False
RATIONALE:
Any market segment that is targeted must be fully described. Demographics, psychographics,
and buyer behavior should be assessed. See 2-8: Describing the Target Market
POINTS:
1
Cengage Learning Testing, Powered by Cognero
Page 9
Name:
Class:
Date:
Chapter 2
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Remember
BUSPROG: Analytic
Target Markets
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: QPMJC7JR30QPZRAWY071
QUESTION ID:
JFND-GO4G-G3BU-KP3A
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJT-GEHD-1ATU-GAHG-CC3A8YSU-RCMN-CRSU-YAUF-GOSS-ECBW-CASU-QAJS-CJTU-1A5N-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
18. An organization is most likely to opt for a market development strategy to boost sales of a new product.
a. True
b. False
ANSWER:
False
RATIONALE:
Market development means attracting new customers to existing products. See 2-3: Strategic
Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Market Development
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: RMRJ5D0L620YUEFW4631
QUESTION ID:
JFND-GO4G-G3BU-KP4G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ3-GWAU-N3TU-GO3G-CA318YSU-KAUR-8RSS-NA5G-GOSS-RQMR-GCSS-K3UD-GIUG-RATO-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
19. Manufacturers use product development strategies to create new products for new markets.
a. True
b. False
ANSWER:
False
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Page 10
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Class:
Date:
Chapter 2
RATIONALE:
Manufacturers use product development strategies to create new products for new markets.
See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Product Development
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: RPXFF4FEVJ6HHQL0C089
QUESTION ID:
JFND-GO4G-G3BU-KP4F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-CWHU-NAUD-GC3U-YQBICASU-EAT1-CESU-KPJA-GOSS-RCB3-CASU-EAMB-CA5D-OPTI-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
20. A firm using the market penetration strategy would try to attract new customers to existing products.
a. True
b. False
ANSWER:
False
RATIONALE:
A firm using the market penetration alternative would try to increase market share among
existing customers. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Market Penetration
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: RVFK6LNW757EW1NU1885
QUESTION ID:
JFND-GO4G-G3BU-KP4R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMF-CPOU-NP31-CP1U-RAJT-GHSUQCDD-8YSU-Q3JO-GOSU-CCBU-CCSS-CATI-8BTU-1QJW-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
21. A sustainable competitive advantage is a function of the speed with which competitors can imitate a leading
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Date:
Chapter 2
company’s strategy and plans.
a. True
b. False
ANSWER:
True
RATIONALE:
A sustainable competitive advantage is a function of the speed with which competitors can
imitate a leading company’s strategy and plans. Imitation requires a competitor to identify the
leader’s competitive advantage, determine how it is achieved, and then learn how to duplicate
it. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Remember
BUSPROG: Analytic
Sustainable Competitive Advantage
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: SLCQMWKP1A1RGJU0H290
QUESTION ID:
JFND-GO4G-G3BU-KP4D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-GP1U-NC5F-GFUG-ECB1-GHSUOQJI-CESU-GCJA-GOSS-NCJI-GYSS-CPDN-GY5S-EQJO-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
22. A marketing strategy involves the activities of selecting and describing one or more target markets.
a. True
b. False
ANSWER:
True
RATIONALE:
A 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. See 2-8: Describing the Target Market
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Remember
BUSPROG: Analytic../chapter_%20(12)/PPFGTW8023SVLL2A3056.xml
Marketing Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: SMYVF15UNAG23VH9L179
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QUESTION ID:
JFND-GO4G-G3BU-KP3U
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJO-GH3D-QPBO-CC4S-KQJZ-8RSUKATO-CRSS-EPBS-GOSS-KQMD-GHSS-GCB1-8RHS-GAJA-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
23. Relish is a bakery that has introduced a range of low-fat pizzas for its present customers. This is an example of
product development strategy.
a. True
b. False
ANSWER:
True
RATIONALE:
A product development strategy entails the creation of new products for present markets. See
2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Product Development
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: UJJA8T7EUG6A6Z0ND202
QUESTION ID:
JFND-GO4G-G3BU-KP31
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-GFUD-YCMD-CWHD-1QB1CCSU-KA3A-8YSS-C3JO-GOSU-1PTT-GASU-QATA-CO4D-Y3BT-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
24. The growing emphasis on continuing education and executive development by colleges and universities is a market
development strategy.
a. True
b. False
ANSWER:
True
RATIONALE:
Market development means attracting new customers to existing products. The growing
emphasis on continuing education and executive development by colleges and universities is
a market development strategy. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Cengage Learning Testing, Powered by Cognero
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Bloom’s: Remember
BUSPROG: Analytic
Market Development
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: WJPL3SFA7AVQSS3JS598
QUESTION ID:
JFND-GO4G-G3BU-KP3T
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMD-GFTD-YPBU-GO3U-1PMGCWSU-C3DF-CESS-CCJU-GOSS-RCBA-GESU-OAJ1-CTTU-NCBZ-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
25. Imitating a rival’s competitive advantage requires the company to first identify the rival’s competitive advantage.
a. True
b. False
ANSWER:
True
RATIONALE:
Imitation requires a competitor to identify the leader’s competitive advantage, determine how
it is achieved, and then learn how to duplicate it. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Remember
BUSPROG: Analytic
Sustainable Competitive Advantage
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: YZUM4MCLMNEBSNRSH276
QUESTION ID:
JFND-GO4G-G3BU-KP3O
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-GH4D-G3TT-GR5D-QP5F-GRSURC3S-8RSU-EPDB-GOSU-G3JW-GHSU-YP3T-CJ1U-O3JO-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
26. The key to having a competitive advantage is the ability to imitate a competitor’s strategy.
a. True
b. False
ANSWER:
False
RATIONALE:
The key to having a competitive advantage is the ability to sustain that advantage. A
sustainable competitive advantage is one that cannot be copied by the competition. See 2-6:
Competitive Advantage
POINTS:
1
DIFFICULTY:
Easy
Cengage Learning Testing, Powered by Cognero
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Name:
Class:
Date:
Chapter 2
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Remember
BUSPROG: Analytic
Sustainable Competitive Advantage
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ZEGEMFH8FB13T05A7296
QUESTION ID:
JFND-GO4G-G3BU-KP3Z
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJW-CAHU-ECUG-CA5S-RPTICASU-K3JO-8RSU-E3BU-GOSS-NQJT-COSS-CQMF-GAAU-RA5B-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
27. Marketing objectives serve as motivators by creating something for employees to strive for.
a. True
b. False
ANSWER:
True
RATIONALE:
Marketing objectives serve as motivators by creating something for employees to strive for.
See 2-7: Setting Marketing Plan Objectives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.07 – 2-7
TOPICS:
A-head: Setting Marketing Plan Objectives
Bloom’s: Remember
BUSPROG: Analytic
Marketing Objectives
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ZUBUQ5WACGV0CMAD6455
QUESTION ID:
JFND-GO4G-G3BU-KP3S
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJI-G7OS-C3BO-CPTS-GPJU-GESURATU-8RSS-RPJT-GOSS-KATI-8YSU-RAJI-GR4S-CPTT-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
28. A marketing strategy involves developing and maintaining a marketing mix.
a. True
b. False
ANSWER:
True
RATIONALE:
A marketing strategy involves the activities of selecting and describing one or more target
Cengage Learning Testing, Powered by Cognero
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Class:
Date:
Chapter 2
markets, and developing and maintaining a marketing mix that will produce mutually
satisfying exchanges with target markets. See 2-8: Describing the Target Market
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Remember
BUSPROG: Analytic
Marketing Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ZZFB8Q3XHT4F77KS6637
QUESTION ID:
JFND-GO4G-G3BU-KP3I
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMF-8Y3G-RQMR-GJ1D-KCTUGHSU-CAJS-CRSU-YCTO-GOSS-KATA-GASS-R3DN-C3TU-Y3DN-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
29. Gemini Inc. has prepared a market plan for its air conditioners. The managers at Gemini have outlined several
activities for their subordinates based on a marketing plan. The employees are required to finish these activities within
specific time frames. 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
ANSWER:
b
RATIONALE:
The concept of implementation is illustrated in the scenario. Implementation is the process
that turns a marketing plan into action assignments, and ensures that these assignments are
executed in a way that accomplishes the plan’s objectives. Implementation activities may
involve detailed job assignments, activity descriptions, time lines, budgets, and lots of
communication. See 2-10: Following Up on the Marketing Plan
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.10
TOPICS:
A-head: Following Up on the Marketing Plan
Bloom’s: Apply
BUSPROG: Reflective Thinking
Implementation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
Cengage Learning Testing, Powered by Cognero
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Class:
Date:
Chapter 2
CUSTOM ID:
CGI: AGLZYXMAQU3U50J0B264
QUESTION ID:
JFND-GO4G-G3BU-KP3W
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMN-8FTS-CP5G-C31U-G3BS-GASUCATO-CESU-1AJ3-GOSU-13UD-CASU-RA3I-GTOS-CCJI-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
30. NutriPro has many business divisions. One of its business divisions has a large customer base for its breakfast cereal
in Oriel. NutriPro’s other business division sells cookies in Lanslot. NutriPro has now introduced its cookies in Oriel. To
ensure good sales, the company is also offering discounts. Which of the following strategies is illustrated in this scenario?
a. Restraint of trade
b. Self-dealing
c. Market penetration
d. Divestment
ANSWER:
c
RATIONALE:
NutriPro has implemented a market penetration strategy. A firm using the market penetration
alternative would try to increase its market share among existing customers. See 2-3:
Strategic Alternatives
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Apply
BUSPROG: Reflective Thinking
Market Penetration
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ARQH7QQZA857DULFL282
QUESTION ID:
JFND-GO4G-G3BU-KPNN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJU-CA4S-RAUG-GBUD-CAJUCRSU-C3BO-8RSS-G3BU-GOSU-QCMN-COSS-N3TS-GA3D-1PUB-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
31. Which of the following questions considered by markets is closely associated with promotion?
a. How can we use social media to increase our products sales?
b. Should we increase the prices of our products?
c. What should the packaging of our products look like?
d. How can we improve our product quality?
ANSWER:
a
RATIONALE:
Promotion includes advertising, public relations, sales promotion, and personal selling.
Promotion’s role in the marketing mix is to bring about mutually satisfying exchanges with
target markets by informing, educating, persuading, and reminding them of the benefits of an
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organization or a product. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Promotion Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: AVXYT5XDUZP5H1ZZW977
QUESTION ID:
JFND-GO4G-G3BU-KPNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJZ-8R4D-GPDF-C31D-EPMR-GCSUCPJI-CESS-RATS-GOSU-1AJU-GOSU-EA3A-GTTG-RCDB-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
32. In the context of SWOT analysis, marketers can identify strengths and weaknesses by focusing on:
a. employee capabilities.
b. government policies.
c. quality of products produced by competitors.
d. foreign competitors.
ANSWER:
a
RATIONALE:
When examining internal strengths and weaknesses, the marketing manager should focus on
organizational resources such as production costs, marketing skills, financial resources,
company or brand image, employee capabilities, and available technology. See 2-5:
Conducting a Situation Analysis
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.05
TOPICS:
A-head: Conducting a Situation Analysis
Bloom’s: Understand
BUSPROG: Analytic
SWOT Analysis
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: BLUMXNKAC8QX99V5X187
QUESTION ID:
JFND-GO4G-G3BU-KPB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJI-GR4D-EPB1-GE4G-GPBO-COSSCP3W-CESU-QC3U-GOSS-EQB1-GASU-YPBU-8RAU-QAMD-E7JI-YT4D-JFNN-4OTICengage Learning Testing, Powered by Cognero
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GO4W-NQNBEE
33. The price component of a marketing mix is:
a. a competitive weapon for companies.
b. decided after the promotion strategies are finalized.
c. the starting point of the marketing mix.
d. the least flexible element of the marketing mix.
ANSWER:
a
RATIONALE:
Price is what a buyer must give up in order to obtain a product. Price is an important
competitive weapon, and is very important to the organization because price multiplied by
the number of units sold equals total revenue for the firm. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Pricing Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: BRGZW0ZBAQL6EWUYV486
QUESTION ID:
JFND-GO4G-G3BU-KPBA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMN-COHD-1QJA-GC5D-EPB3GESU-KP5F-8RSS-NPJI-GOSS-NPDF-GCSS-R3MB-G3OU-CAUG-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
34. In the context of marketing planning, implementation requires:
a. micromanagement strategies.
b. anti-competitive strategies.
c. centralization of the firm.
d. delegating authority to employees.
ANSWER:
d
RATIONALE:
Implementation activities may involve detailed job assignments, activity descriptions, time
lines, budgets, and lots of communication. Implementation requires delegating authority and
responsibility, determining a time frame for completing tasks, and allocating resources. See
2-10: Following Up on the Marketing Plan
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.10
Cengage Learning Testing, Powered by Cognero
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Name:
Class:
Date:
Chapter 2
TOPICS:
A-head: Following Up on the Marketing Plan
Bloom’s: Understand
BUSPROG: Analytic
Implementation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: BSJH4NJ6DWD2NCCX3503
QUESTION ID:
JFND-GO4G-G3BU-KPNG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJO-CEHS-RPUF-CPTU-NQDF-8RSSCQMG-CRSU-YAUG-GOSS-EAMB-CESU-GQDR-8F1U-Y3MB-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
35. Which of the following statements is true about the 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.
ANSWER:
b
RATIONALE:
For small companies with limited resources that potentially face giant competitors, niche
targeting may be the only viable option. Many companies using a niche strategy serve only a
limited geographic market. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Understand
BUSPROG: Analytic
Niche Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: BTGSUUZZ0AA4UF8FY930
QUESTION ID:
JFND-GO4G-G3BU-KPNF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-GAAU-OP3O-CE3G-E3TU-GOSUQA5G-CESU-CPUF-GOSU-OCJW-CASU-E3JS-GC3U-G3UD-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
36. In the context of marketing planning, implementation involves:
a. allocating resources.
b. identifying market segments.
c. defining the business mission.
d. assessing internal capabilities.
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Date:
Chapter 2
ANSWER:
RATIONALE:
a
Implementation is the process that turns a marketing plan into action assignments, and
ensures that these assignments are executed in a way that accomplishes the plan’s objectives.
Implementation requires delegating authority and responsibility, determining a time frame for
completing tasks, and allocating resources. See 2-10: Following Up on the Marketing Plan
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.10
TOPICS:
A-head: Following Up on the Marketing Plan
Bloom’s: Understand
BUSPROG: Analytic
Implementation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: CAPDTW6NVC36124UR168
QUESTION ID:
JFND-GO4G-G3BU-KPNR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMD-8BOU-QQB1-8FTD-RQBTGWSS-N3BS-CRSS-G3TA-GOSU-EQMB-GOSS-KCMR-CC4U-OP5N-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
37. 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 unattainable.
ANSWER:
b
RATIONALE:
A marketing objective is a statement of what is to be accomplished through marketing
activities. Marketing objectives are effective when they are compared to a benchmark. See 26: Competitive Advantage
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Understand
BUSPROG: Analytic
Marketing Objectives
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: CDVGATCB1T3STP3D3372
QUESTION ID:
JFND-GO4G-G3BU-KPND
Cengage Learning Testing, Powered by Cognero
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Name:
Class:
Date:
Chapter 2
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-CR4D-KATO-COHU-GCBI-GHSSEATZ-8RSU-ECUD-GOSS-G3JZ-CRSS-GC5B-CCAG-GC5D-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
38. Which of the following questions considered by marketers is best aligned with distribution strategies?
a. Which market segment should we target?
b. How do we convince customers to buy our products?
c. What products should we manufacture?
d. Where do customers like to shop?
ANSWER:
d
RATIONALE:
The goal of the distribution strategy is to make sure products arrive in usable condition at
designated places when needed. A part of this P—place—is physical distribution, which
involves all the business activities concerned with storing and transporting raw materials or
finished products. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Distribution Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: CECLL4F84DUQU39HG876
QUESTION ID:
JFND-GO4G-G3BU-KPBU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMG-CO3S-RCTZ-CPOU-CQBI-8YSSRATT-8RSS-KAJA-GOSU-RCMR-GWSU-OAUF-GP1U-GATO-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
39. Which of the following is closely associated with the diversification strategy?
a. Entering new markets with little competition
b. Increasing overhead production costs
c. Decreasing the prices of existing products
d. Selling modified products to the same customers
ANSWER:
a
RATIONALE:
Diversification is a strategy of increasing sales by introducing new products into new
markets. It can be very profitable when a firm is entering markets with little or no
competition. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
Cengage Learning Testing, Powered by Cognero
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Name:
Class:
Date:
Chapter 2
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Understand
BUSPROG: Analytic
Diversification
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: DSKZYFESD918U63D1125
QUESTION ID:
JFND-GO4G-G3BU-KPB1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJU-GCHS-KCTO-GCAU-EP3TGASS-EQDR-CESU-OP3S-GOSS-NA3U-GRSU-RQBW-GJTS-RC3S-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
40. Which of the following statements is true about strategic business units (SBUs)?
a. They do not have competitors of their own.
b. They do not plan collaboratively with other SBUs.
c. They do not have specific target markets.
d. They do not perform manufacturing and marketing functions.
ANSWER:
b
RATIONALE:
When properly created, a strategic business unit has a distinct mission and a specific target
market. Each SBU has its own rate of return on investment, growth potential, and associated
risks, and requires its own strategies and funding. See 2-2: Strategic Business Units
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.02 – 2-2
TOPICS:
A-head: Strategic Business Units
Bloom’s: Understand
BUSPROG: Analytic
Strategic Business Units
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: DUBF3DYYHDGMT8GNR996
QUESTION ID:
JFND-GO4G-G3BU-KPBT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMG-GIOU-R3J3-GR4S-EQDD-GYSSEPJA-CRSU-RATZ-GOSU-QA33-GWSU-1CJZ-8F1D-QC5F-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
41. Strategic planning:
a. should be an annual exercise.
b. should not be influenced by managerial intuition.
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Name:
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Date:
Chapter 2
c. should be done independently by company shareholders.
d. should be based on creativity.
ANSWER:
d
RATIONALE:
Sound strategic planning is based on creativity. Managers should challenge assumptions
about the firm and the environment and establish new strategies. See 2-11: Effective Strategic
Planning
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.11
TOPICS:
A-head: Effective Strategic Planning
Bloom’s: Understand
BUSPROG: Analytic
Strategic Planning
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: DUSRD4YPNP5BJ6H6K281
QUESTION ID:
JFND-GO4G-G3BU-KPBO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJZ-C3TG-GPDB-COAS-KQJI-8RSSC3DG-8YSU-QP3U-GOSU-OPB1-COSU-YPB3-GBTD-R3MB-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
42. 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.
ANSWER:
a
RATIONALE:
A part of this P—place—is physical distribution, which involves all the business activities
concerned with storing and transporting raw materials or finished products. See 2-9: The
Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Distribution Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
Cengage Learning Testing, Powered by Cognero
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Name:
Class:
Date:
Chapter 2
CUSTOM ID:
CGI: DVXVJ3FA34ZURQ5RS384
QUESTION ID:
JFND-GO4G-G3BU-KPBZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-GHAU-R3T1-GPOU-K3DNGCSS-CCJS-8RSU-R3J1-GOSS-K3TZ-CWSU-NQBU-GO3U-NCT1-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
43. Mitchell’s is a popular brand of women’s clothing. During market research, the company observed that a large number
of its existing customers believes and promotes the use of sustainable goods. Based on findings of the research, the top
management of the company decides to use eco-friendly raw materials in manufacturing their clothes. Which of the
following strategies is Mitchell’s using in this scenario?
a. Market development
b. Cost leadership
c. Product differentiation
d. Market penetration
ANSWER:
c
RATIONALE:
A product/service differentiation competitive advantage exists when a firm provides
something that is unique and valuable to buyers beyond simply offering a lower price than
that of the competition. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Apply
BUSPROG: Reflective Thinking
Product Differentiation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ENKGKUBDF92ZM6X9L239
QUESTION ID:
JFND-GO4G-G3BU-KPBS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJO-CIOU-Y3MB-CC4U-GPBU-8YSSECUF-CESS-EP3S-GOSU-G3UF-GOSU-O3TA-GBOU-C3UR-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
44. Thompson Crayons Ltd. is a manufacturer of crayons and colored pencils in Rhodia. The company has started
packaging their products in vibrant colored boxes, as opposed to brown boxes used in the past, in order to increase their
sales. In this scenario, Thompson Crayons Ltd. is using a _____ strategy.
a. product differentiation
b. market development
c. diversification
d. market penetration
ANSWER:
a
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Name:
Class:
Date:
Chapter 2
RATIONALE:
A product/service differentiation competitive advantage exists when a firm provides
something that is unique and valuable to buyers beyond simply offering a lower price than
that of the competition. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Apply
BUSPROG: Reflective Thinking
Product Differentiation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ETVGLLMR6SEPA2LH6402
QUESTION ID:
JFND-GO4G-G3BU-KPBI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-GPOU-QCTI-GTUG-RPTTCASU-QPBZ-8YSU-OP5R-GOSS-RPJI-8RSS-KAJA-G71D-GP5B-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
45. Which of the following statements is true about stars in the portfolio matrix?
a. They have low growth potential and small market shares.
b. They require minimal funding.
c. They have low market shares in high-growth industries.
d. They are fast growing market leaders.
ANSWER:
d
RATIONALE:
A star is a fast-growing market leader. Star SBUs usually have large profits, but need lots of
cash to finance rapid growth. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Understand
BUSPROG: Analytic
Strategic Alternatives
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: GKZE66ZVYB18SY3SM668
QUESTION ID:
JFND-GO4G-G3BU-KPBW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJO-CTTG-GCJZ-GE5U-13B1-GRSUNP3O-8YSU-N3JO-GOSU-CQJT-GASU-CC3Z-GE4G-C3J1-E7JI-YT4D-JFNN-4OTICengage Learning Testing, Powered by Cognero
Page 26
Name:
Class:
Date:
Chapter 2
GO4W-NQNBEE
46. Which of the following activities is carried out during implementation of a marketing plan?
a. Defining the business mission
b. Gathering information about customers
c. Setting up strategic business units
d. Creating and managing a task force
ANSWER:
d
RATIONALE:
Implementation requires delegating authority and responsibility, determining a time frame for
completing tasks, and allocating resources. Sometimes a strategic plan also requires task
force management. A task force is a tightly organized unit under the direction of a manager
who, usually, has broad authority. See 2-10: Following Up on the Marketing Plan
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.10
TOPICS:
A-head: Following Up on the Marketing Plan
Bloom’s: Understand
BUSPROG: Analytic
Implementation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: GLTAKYES13YP0NLAJ630
QUESTION ID:
JFND-GO4G-G3BU-KPKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJZ-GH5S-E3B1-CRHS-KC3A-CESUY3MN-8RSS-R3T1-GOSU-KAMD-CRSU-ECBS-GH4D-O3JZ-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
47. A marketing plan should:
a. be viewed as a series of sequential steps.
b. be developed independently of the external business environment.
c. define the business mission.
d. exclude budgets and pricing.
ANSWER:
c
RATIONALE:
Regardless of the way a marketing plan is presented, some elements are common to all
marketing plans. These include defining the business mission, performing a situation
analysis, defining objectives, delineating a target market, and establishing components of the
marketing mix. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
Cengage Learning Testing, Powered by Cognero
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Name:
Class:
Date:
Chapter 2
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Understand
BUSPROG: Analytic
Marketing Plans
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: GXKPDB1WMKCMZV97Z242
QUESTION ID:
JFND-GO4G-G3BU-KPKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-GCHD-ECTW-G31U-GAUBCRSS-EQBZ-CRSU-QP3Z-GOSU-NAUG-CESS-RP5R-C3TS-KQJ3-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
48. Which of the following actions is closely associated with the niche strategy?
a. Choosing a target market that is not crucial for the success of major competitors
b. Manufacturing products in bulk and targeting the average customer
c. Selling products that do not have extra frills
d. Creating cross-departmental teams across all the strategic business units
ANSWER:
a
RATIONALE:
For small companies with limited resources that potentially face giant competitors, niche
targeting may be the only viable option. A market segment that has good growth potential,
but is not crucial to the success of major competitors is a good candidate for developing a
niche strategy. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Understand
BUSPROG: Analytic
Niche Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: GYTUBLLWQQAAG8AAW127
QUESTION ID:
JFND-GO4G-G3BU-KPJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJS-CE5G-CQDD-GE5D-GCBWGRSU-GC3A-CESS-RCT1-GOSU-N3BO-CCSU-NPJS-CO4U-1PUN-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
49. Which of the following can be considered as a business opportunity in the context of SWOT analysis?
a. Qualified employees
b. Good production facilities
c. Low turnover rates
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Class:
Date:
Chapter 2
d. Favorable government regulations
ANSWER:
d
RATIONALE:
When examining external opportunities and threats, marketing managers must analyze
aspects of the marketing environment. The six most often studied macroenvironmental forces
are social, demographic, economic, technological, political and legal, and competitive. See 25: Conducting a Situation Analysis
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.05
TOPICS:
A-head: Conducting a Situation Analysis
Bloom’s: Understand
BUSPROG: Analytic
SWOT Analysis
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: JHUFZJ6Z92BLEX31S584
QUESTION ID:
JFND-GO4G-G3BU-KPJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-CC4U-EPB1-8Y5D-RQBTGWSU-R3TA-8YSU-NCUD-GOSS-NCMG-GHSU-1A3O-CA3S-RAMB-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
50. Which of the following considered by marketers is most closely related to distribution strategies?
a. How can we make our product packaging attractive?
b. Which market segment should we target?
c. How can we effectively store raw materials?
d. What should be our medium for advertising?
ANSWER:
c
RATIONALE:
The goal of the distribution strategy is to make sure products arrive in usable condition at
designated places when needed. A part of this P—place—is physical distribution, which
involves all the business activities concerned with storing and transporting raw materials or
finished products. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Distribution Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
Cengage Learning Testing, Powered by Cognero
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Name:
Class:
Date:
Chapter 2
CUSTOM ID:
CGI: LKJBDEQQ54GBS9E0W370
QUESTION ID:
JFND-GO4G-G3BU-KPKG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJW-8B1S-E3UG-CO3U-RCBTGYSU-G3UR-8RSS-NA5D-GOSU-RPUD-GCSU-CPBS-8R3D-CATS-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
51. Turner Electronics is a ten-year-old company. In the past decade, the company hasn’t created any innovative products
that have helped set it apart from the rest of its competitors. However, when any of its products need to be repaired or
fine-tuned, it offers its customers top-notch product checks. As a result, the company has managed to retain its wide
customer base. Which of the following strategies is Turner Electronics using in this scenario?
a. Product development
b. Diversification
c. Market penetration
d. Service differentiation
ANSWER:
d
RATIONALE:
A product/service differentiation competitive advantage exists when a firm provides
something that is unique and valuable to buyers beyond simply offering a lower price than
that of the competition. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Apply
BUSPROG: Reflective Thinking
Product Differentiation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: LVCPSJKDHE1FLR6V1653
QUESTION ID:
JFND-GO4G-G3BU-KPKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-GITD-YCJI-GRAU-GQMDGHSS-R3DD-8RSS-GPJI-GOSU-QAUN-GWSU-OCBA-G7UG-E3TT-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
52. Which of the following examples illustrates a niche strategy?
a. Libra, a motor company, uses new production techniques to achieve economies of scale.
b. Alpha Electronics has decided to dissolve one of its strategic business units.
c. Venus Inc. has decided to target customers in Asia.
d. Relish, a confectionery store, sells its products only in one city.
ANSWER:
d
RATIONALE:
Relish is most likely to be using a niche strategy. Many companies that use a niche strategy
serve only a limited geographic market. See 2-6: Competitive Advantage
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Date:
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POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Apply
BUSPROG: Reflective Thinking
Niche Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: MARUUWSR6Y7RD2MYS364
QUESTION ID:
JFND-GO4G-G3BU-KPKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJU-GPOS-KA5R-CJTG-K3MGGWSU-1CTI-CRSU-R3MF-GOSU-C3DF-GCSS-NCMR-CAAU-QC3Z-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
53. In the context of a marketing mix, the product strategy involves:
a. warranty.
b. point of purchase.
c. price of the product.
d. personal selling..
ANSWER:
a
RATIONALE:
The product includes not only the physical unit, but also its package, warranty, after-sale
service, brand name, company image, value, and many other factors. See 2-9: The Marketing
Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Product Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: MSYN88PEEJ1SLZKTD290
QUESTION ID:
JFND-GO4G-G3BU-KPKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJT-GWAG-GAMD-GC3U-EPBWCESS-K3TI-8YSU-GC3W-GOSS-R3T3-8RSU-QP33-GR3S-CA3O-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
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Date:
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54. Which of the following practices can help businesses gain a cost competitive advantage?
a. Innovating simplified production techniques
b. Using expensive raw materials
c. Customizing products with extra frills
d. Manufacturing products in smaller quantities
ANSWER:
a
RATIONALE:
Production innovations such as new technology and simplified production techniques help
lower the average cost of production. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Understand
BUSPROG: Analytic
Cost Leadership
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: MVEKT7KMQY1RD1L39359
QUESTION ID:
JFND-GO4G-G3BU-KPJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-GBUD-KCJZ-GA3U-YCJICOSU-NQJO-8RSU-CPTZ-GOSS-K3BI-CRSU-RA5F-8Y4U-1CDG-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
55. 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 a maximum of hundred employees.
d. shares the mission of its parent company.
ANSWER:
a
RATIONALE:
When properly created, a strategic business unit has a distinct mission and a specific target
market. Each SBU has its own rate of return on investment, growth potential, and associated
risks, and requires its own strategies and funding. See 2-2: Strategic Business Units
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.02 – 2-2
TOPICS:
A-head: Strategic Business Units
Bloom’s: Understand
BUSPROG: Analytic
Strategic Business Units
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Date:
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DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: NCLFN7UEP1RU8993A615
QUESTION ID:
JFND-GO4G-G3BU-KPJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ3-GTOU-EC31-8F1U-KA3O-GCSUGQMB-8YSS-RPBW-GOSU-EC3Z-GOSU-Q3JA-CW4G-RCMD-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
56. Which of the following can help companies make strategic planning effective?
a. Refraining from involving top management in the strategic planning process
b. Making strategic an ongoing process rather than an annual exercise
c. Eliminating managerial intuitions
d. Avoiding cross-functional teams
ANSWER:
a
RATIONALE:
Strategic planning should not be an annual exercise in which, managers go through the
motions and forget about strategic planning until the next year. It should be an ongoing
process because the environment is continually changing and the firm’s resources and
capabilities are continually evolving. See 2-11: Effective Strategic Planning
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.11
TOPICS:
A-head: Effective Strategic Planning
Bloom’s: Understand
BUSPROG: Analytic
Strategic Planning
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: NZBUJ3RRD73KG7PW1198
QUESTION ID:
JFND-GO4G-G3BU-KPJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-GTTD-QATZ-GA3U-YCBOGYSS-E3J1-CRSS-GQB1-GOSU-QA3T-GRSS-GQMF-GW5D-Q3MB-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
57. Which of the following statements is true of strategic business units (SBUs) of an organization?
a. They typically have strategies of their own.
b. Their functions are limited to manufacturing.
c. They typically serve the same target markets as the other SBUs of the organization.
d. They do not have missions of their own.
ANSWER:
a
RATIONALE:
When properly created, a strategic business unit has a distinct mission and a specific target
market. Each SBU has its own rate of return on investment, growth potential, and associated
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Date:
Chapter 2
risks, and requires its own strategies and funding. See 2-2: Strategic Business Units
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.02 – 2-2
TOPICS:
A-head: Strategic Business Units
Bloom’s: Understand
BUSPROG: Analytic
Strategic Business Units
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: PCEVUPC9NG87G8VHH750
QUESTION ID:
JFND-GO4G-G3BU-KPJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMN-GI1D-N3UD-GI1D-KAJU-CCSSECDR-CRSS-CPBT-GOSU-RAJ1-GCSU-CPJS-CCHU-GCBW-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
58. A publisher of children’s books defines its business as “printing books” instead of “meeting educational needs of
students.” This illustrates:
a. marketing synergy.
b. marketing myopia.
c. opportunism
d. self-dealing
ANSWER:
c
RATIONALE:
Regardless of the way a marketing plan is presented, some elements are common to all
marketing plans. These include defining the business mission, performing a situation
analysis, defining objectives, delineating a target market, and establishing components of the
marketing mix. See 2-4: Defining the Business Mission
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.04 – 2-4
TOPICS:
A-head: Defining the Business Mission
Bloom’s: Apply
BUSPROG: Reflective Thinking
Mission Statements
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: PFSP44P8MR2TGM3HT845
QUESTION ID:
JFND-GO4G-G3BU-KPJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMD-CP1D-13TS-GHAS-G3TWCengage Learning Testing, Powered by Cognero
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Date:
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GCSU-Q3MB-8YSS-EAJO-GOSU-YPTA-GYSU-1C5G-GTTU-NPDR-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
59. The promotion component of the marketing mix involves:
a. pricing strategies.
b. personal selling.
c. product packaging.
d. manufacturing strategies.
ANSWER:
b
RATIONALE:
Promotion includes advertising, public relations, sales promotion, and personal selling.
Promotion’s role in the marketing mix is to bring about mutually satisfying exchanges with
target markets by informing, educating, persuading, and reminding them of the benefits of an
organization or a product. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Promotion Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: PQXWETNMRG9WL5N52820
QUESTION ID:
JFND-GO4G-G3BU-KPJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-CPOU-YPTZ-CITU-CQJ1-8YSURP5B-8RSS-NP3I-GOSS-CPBU-8YSU-YPJ3-GY5S-E3TO-E7JI-YT4D-JFNN-4OTI-GO4WNQNBEE
60. The heart of the marketing mix is the:
a. product offering and product strategy.
b. place and distribution strategy.
c. sales promotion and personal selling strategy.
d. product packaging and pricing strategy.
ANSWER:
a
RATIONALE:
Of the four Ps, the marketing mix typically starts with the product. The heart of the marketing
mix, the starting point, is the product offering and product strategy. See 2-9: The Marketing
Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
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Class:
Date:
Chapter 2
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Marketing Mix
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: PVAVQ86AVKNRNZASV673
QUESTION ID:
JFND-GO4G-G3BU-KPJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-CCHU-GCTT-GC3D-GCJWGOSS-KCTA-8RSU-OA3S-GOSU-YA3Z-GWSU-O3JI-CRAS-R3JI-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
61. Varion Air offers its customers a complementary air ticket on the purchase of three business class tickets. Varion Air’s
strategy best represents the ____ element of its marketing mix.
a. distribution
b. place
c. promotion
d. product
ANSWER:
c
RATIONALE:
Varion Air’s strategy best represents the promotion element of its marketing mix. Promotion
includes advertising, public relations, sales promotion, and personal selling. 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. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Marketing Mix
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: QBUJUKJM9680ME03M577
QUESTION ID:
JFND-GO4G-G3BU-KPJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJW-GE4U-K3MG-GY5U-1P3I-GOSUCPDD-8YSU-E3TO-GOSS-GPBT-GOSS-C3T1-8F1G-CCJ3-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
62. Jove is a chocolate manufacturing company in Harrington City. While most of its competitors produce not more than
three basic varieties of chocolates, Jove sells over 50 different varieties of flavored chocolates. This gives them an edge
over other chocolate makers in Harrington City. Which of the following concepts is illustrated in the scenario?
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Date:
Chapter 2
a. Divestment
b. Market penetration
c. Sustainable competitive advantage
d. Diversification
ANSWER:
c
RATIONALE:
It is important for companies to build their own competitive advantages. The sources of
tomorrow’s competitive advantages are the skills and assets of the organization. See 2-6:
Competitive Advantage
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Apply
BUSPROG: Reflective Thinking
Sustainable Competitive Advantage
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: QMUPYQY7ED4PT0DZZ973
QUESTION ID:
JFND-GO4G-G3BU-COKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-GE3U-CCMG-GW3S-E3UFGCSS-NQJ3-CRSS-C3TW-GOSU-GPMB-CCSU-EA5R-8YHU-C3JZ-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
63. 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. avoiding cross-functional teams.
ANSWER:
a
RATIONALE:
Perhaps, the most critical element in successful strategic planning is top management’s
support and participation. See 2-11: Effective Strategic Planning
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.11
TOPICS:
A-head: Effective Strategic Planning
Bloom’s: Understand
BUSPROG: Analytic
Strategic Planning
DATE CREATED:
5/1/2015 4:22 PM
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Date:
Chapter 2
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: QWXXPJWY988VTL4ZW818
QUESTION ID:
JFND-GO4G-G3BU-COKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMD-GO4G-KCJW-GIOU-1PBTCCSS-G3TO-8RSU-C3T1-GOSU-NPUG-GASU-K3BA-GHAS-G3BO-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
64. Which of the following statement is true about the price component of a marketing mix?
a. It is the quickest element to change.
b. It is the least important of the four Ps.
c. It is the starting point of the marketing mix.
d. It is decided independently of the external environment of the business.
ANSWER:
a
RATIONALE:
Price is what a buyer must give up in order to obtain a product. It is often the most flexible of
the four Ps—the quickest element to change. Marketers can raise or lower prices more
frequently and easily than they can change other marketing mix variables. See 2-9: The
Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Pricing Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: RBTSGKE0KZFQ4YJLM075
QUESTION ID:
JFND-GO4G-G3BU-COJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-CR5G-NP5G-GOHD-Y3UF-CCSSRPBZ-8YSU-RCTO-GOSU-KPBW-GHSU-EC3S-GCHU-KQJ3-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
65. Synergy Corp. is large seller of energy-efficient bulbs that uses extensive promotional strategies to stimulate sales.
Synergy has noticed that a competitor is doing well and is steadily gaining a large market share. The marketers at Synergy
want to counter the competitor immediately by increasing the sales of its bulbs. What quick step can Synergy take to
stimulate the sales of its products?
a. Change the pricing strategy
b. Adopt new production techniques
c. Enter into new supplier contracts
d. Adopt a divesting strategy
ANSWER:
a
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Chapter 2
RATIONALE:
Synergy Corp. can vary its pricing strategy to immediately stimulate its sales. Price is an
important competitive weapon, and is very important to the organization because price
multiplied by the number of units sold equals total revenue for the firm. See 2-9: The
Marketing Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Pricing Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: RDAML1BLDBCWZHRSX458
QUESTION ID:
JFND-GO4G-G3BU-COJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-CPTD-YAJA-GBTU-GPUGCWSU-K3T3-8YSS-EQDB-GOSU-CA5B-GCSS-CA33-CPUD-1CJ3-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
66. 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 in small quantities.
ANSWER:
a
RATIONALE:
Reengineering entails fundamental rethinking and redesign of business processes to achieve
dramatic improvements in critical measures of performance. It often involves reorganizing
functional departments such as sales, engineering, and production into cross-disciplinary
teams. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Understand
BUSPROG: Analytic
Cost Leadership
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: RLBU3BWP1TSWZ4QPA205
QUESTION ID:
JFND-GO4G-G3BU-COKG
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QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMN-8YAU-CQDF-GW3G-EC3IGASS-R3B3-CESU-K3DN-GOSU-1CBZ-GRSU-CQDD-GT1U-C3BW-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
67. A marketing mix typically involves:
a. distribution strategies.
b. divestiture strategies.
c. restrictive covenants.
d. federal regulations.
ANSWER:
a
RATIONALE:
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. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Marketing Mix
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: RRDYBC44ZY1G5KD7V993
QUESTION ID:
JFND-GO4G-G3BU-COKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMF-GBOS-GPTO-CAAU-1CTICESU-EPUG-8RSS-RPTU-GOSU-O3MN-CESS-NC3S-CP1D-RCJT-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
68. Which of the following actions can enable companies to gain a cost competitive advantage?
a. Removing frills from products
b. Increasing marginal customers
c. Eliminating reverse engineering efforts
d. Developing additional exclusive functional departments
ANSWER:
a
RATIONALE:
Marketers can lower costs by removing frills and options from a product or service.
Southwest Airlines—for example—offers low fares, but no seat assignments or meals. See 26: Competitive Advantage
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
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Class:
Date:
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LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Understand
BUSPROG: Analytic
Cost Leadership
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: TRQJPR6Q2YST1HGGN410
QUESTION ID:
JFND-GO4G-G3BU-COKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJU-CR3S-CPJZ-C31G-GA3Z-8RSUQCMG-8YSS-NPUB-GOSS-GAT3-GHSU-RPUD-GR3S-KQBI-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
69. The product in the marketing mix:
a. includes point of purchase.
b. includes company image.
c. includes personal selling.
d. includes pricing..
ANSWER:
b
RATIONALE:
The product includes not only the physical unit but also its package, warranty, after-sale
service, brand name, company image, value, and many other factors. See 2-9: The Marketing
Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Product Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: TUZVEVX6KKKZUAEWN922
QUESTION ID:
JFND-GO4G-G3BU-COKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-G71S-R3JS-CR3U-GQMD-GCSSEQJT-CRSU-KA5F-GOSU-GQJU-CESU-E3JA-8BUG-GP3S-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
70. Which of the following is an example of a market segment?
a. A group of individuals who are diabetic
b. A group of retailers selling the same products
c. A group of companies manufacturing different products
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Date:
Chapter 2
d. A group of individuals with different product requirements
ANSWER:
a
RATIONALE:
A market segment is a group of individuals or organizations who share one or more
characteristics. They therefore, may have relatively similar product needs. For example,
parents of newborn babies need formula, diapers, and special foods. See 2-8: The Marketing
Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Target Markets
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: TWNFLL1JYNWJPC2DB875
QUESTION ID:
JFND-GO4G-G3BU-COJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMF-CRHD-CCJO-GAHU-ECBIGCSU-QPJZ-CRSU-Q3BU-GOSU-YA3I-GWSU-N3UF-GH3D-R3BO-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
71. Which of the following statements is true of a niche strategy?
a. A niche strategy is most suitable for firms that have achieved economies of scale.
b. A niche strategy requires business firms to reduce after-purchase service options.
c. A niche strategy involves removing extra frills from products.
d. A niche strategy is ideal for small companies with limited resources.
ANSWER:
d
RATIONALE:
For small companies with limited resources that potentially face giant competitors, niche
targeting may be the only viable option. A market segment that has good growth potential but
is not crucial to the success of major competitors is a good candidate for developing a niche
strategy. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Understand
BUSPROG: Analytic
Niche Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
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CUSTOM ID:
CGI: VJRG49UY4GFFUHQ89500
QUESTION ID:
JFND-GO4G-G3BU-COJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMD-GFTS-GATZ-CO5D-NQJWGWSU-GP33-8YSU-RCJS-GOSS-ECJ1-COSU-KQB3-G71U-Q3MF-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
72. In the context of marketing mix, promotion includes:
a. public relations activities.
b. pricing strategies.
c. after-purchase service.
d. storage and transportation of finished products.
ANSWER:
a
RATIONALE:
Promotion includes advertising, public relations, sales promotion, and personal selling.
Promotion’s role in the marketing mix is to bring about mutually satisfying exchanges with
target markets by informing, educating, persuading, and reminding them of the benefits of an
organization or a product. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Promotion Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: VKEE2PZLNF3XDG1LL700
QUESTION ID:
JFND-GO4G-G3BU-COJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMD-COHS-G3BO-GF1G-CPTUCCSU-EPBU-8YSS-NC3T-GOSU-1PDG-CASU-GCJ3-8R5D-QC33-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
73. The notion of competitive advantage means that:
a. a successful firm will stake out a position unique in some manner from its rivals.
b. the advantage can be enjoyed only for a short period.
c. a company manufactures products which are similar to those of its competitors.
d. an established firm focuses solely on developing a low-price competitive advantage.
ANSWER:
a
RATIONALE:
The notion of competitive advantage means that a successful firm will stake out a position
unique in some manner from its rivals. Imitation by competitors indicates a lack of
competitive advantage and almost ensures mediocre performance. See 2-6: Competitive
Advantage
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Class:
Date:
Chapter 2
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Understand
BUSPROG: Analytic
Sustainable Competitive Advantage
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: VVHEDUHJ8LA8931LB526
QUESTION ID:
JFND-GO4G-G3BU-COJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJI-CPOS-R3JI-GT1U-EQB3-COSUEA3I-CRSS-ECJZ-GOSS-NAJ3-COSS-KCUG-CA5D-RC5G-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
74. Which of the following is associated with the market development strategy?
a. Limiting the production of products
b. Increasing the prices of products
c. Adding new features to products
d. Limiting resources used for promotion
ANSWER:
c
RATIONALE:
Market development means attracting new customers to existing products. Ideally, new uses
for old products stimulate additional sales among existing customers, while also bringing in
new buyers. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Understand
BUSPROG: Analytic
Market Development
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: WGLTKSXWPTYDHMEXC690
QUESTION ID:
JFND-GO4G-G3BU-COJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJU-GW5S-CQMD-8R4D-QPJ1-8YSUQ3TA-8YSU-K3TZ-GOSU-QA5G-CESS-CAJW-GCAU-NC3I-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
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Date:
Chapter 2
75. Cost competitive advantage can be achieved by:
a. avoiding reverse engineering efforts.
b. avoiding manufacturing products in bulk.
c. avoiding marginal customers.
d. avoiding government subsidies.
ANSWER:
c
RATIONALE:
Cost leadership can result from obtaining inexpensive raw materials, creating an efficient
scale of plant operations, designing products for ease of manufacture, controlling overhead
costs, and avoiding marginal customers. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Understand
BUSPROG: Analytic
Cost Leadership
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: XAWQA0VK2TJ93675Q851
QUESTION ID:
JFND-GO4G-G3BU-COJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJS-GIOS-RA5D-CFTU-KQDR-8YSUCAJI-CRSU-C3UD-GOSU-CCT1-GRSU-NCDF-GE5D-KA3T-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
76. Nile Inc. is one of the leading shoe manufacturing companies in Baltoni. 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. What is Nile Inc. likely to do in this scenario?
a. Offer their products at discounted rates and make the cost of their products lower than those of their
competitors.
b. Produce aerobic, tennis, and baseball shoes that have specialized features.
c. Advertise their products through more media outlets than it previously did.
d. Start selling products to markets outside Baltonia.
ANSWER:
b
RATIONALE:
A product/service differentiation competitive advantage exists when a firm provides
something that is unique and valuable to buyers beyond simply offering a lower price than
that of the competition. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
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Name:
Class:
Date:
Chapter 2
Bloom’s: Apply
BUSPROG: Reflective Thinking
Product Differentiation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: XBEJGNY46CFR23LYE898
QUESTION ID:
JFND-GO4G-G3BU-COJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJS-CA5U-EA3O-CA3U-1PT3-GWSUOPMG-CESS-GCTU-GOSU-K3T3-GCSU-KAUD-CJ1U-YCTZ-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
77. The product component of a marketing mix involves:
a. point of purchase.
b. distribution.
c. advertising.
d. brand name.
ANSWER:
d
RATIONALE:
The product includes not only the physical unit but also its package, warranty, after-sale
service, brand name, company image, value, and many other factors. See 2-9: The Marketing
Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Product Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: XBVUC2AAN1TR7960S336
QUESTION ID:
JFND-GO4G-G3BU-COJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-CC5U-RAJ1-GW3S-RPBW8YSS-KQBW-8RSU-OCJW-GOSU-1CTU-GWSS-RAT3-GH5D-EPUR-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
78. A marketing plan can be made more effective by:
a. incorporating managerial intuition.
b. incorporating marketing myopia.
c. making it a series of sequential steps.
d. keeping it brief and broad.
ANSWER:
a
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Chapter 2
RATIONALE:
The role of managerial intuition is also important in the creation and selection of marketing
strategies. Managers must weigh any information against its accuracy and their own
judgment when making a marketing decision. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Understand
BUSPROG: Analytic
Marketing Plans
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: XZENGMU1ZJKS78B7P891
QUESTION ID:
JFND-GO4G-G3BU-CO1N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMG-CAAD-OA5N-GFUD-NPJTCCSU-GC33-8YSS-CQBW-GOSS-EQDR-COSU-N3J3-GC5G-NPB3-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
79. A marketing plan is most likely to discuss:
a. first-line operational strategies.
b. distribution channels.
c. supplier details.
d. downsizing strategies.
ANSWER:
b
RATIONALE:
Marketing planning is the basis for all marketing strategies and decisions. Issues such as
product lines, distribution channels, marketing communications, and pricing are all
delineated in the marketing plan. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Understand
BUSPROG: Analytic
Marketing plans
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: YKWUNSWNWFXENDW4F786
QUESTION ID:
JFND-GO4G-G3BU-CO1B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJU-C3TD-KPTS-GWAS-GA3SCengage Learning Testing, Powered by Cognero
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Class:
Date:
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GRSU-R3BI-8YSU-GQJW-GOSU-QAJA-CASU-KA31-CA4D-C3MG-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
80. Which of the following is true of a product/service differentiation competitive advantage?
a. It tends to be more attractive to top managers because of its durability.
b. It provides a shorter-lasting competitive advantage compared to cost competitive advantages.
c. It focuses primarily on offering a low priced product or service than that of the competitor.
d. It is subject to continual erosion, as opposed to cost competitive advantages.
ANSWER:
a
RATIONALE:
The durability of a product/service differentiation competitive strategy tends to make it more
attractive to many top managers. This strategy exists when a firm provides something that is
unique and valuable to buyers beyond simply offering a lower price than that of the
competition. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Understand
BUSPROG: Analytic
Product Differentiation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: YLNQWNDA1GE820L6E662
QUESTION ID:
JFND-GO4G-G3BU-COT3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-8FOU-OPJW-GP1D-GP3A-GOSUCQDN-CRSU-KATT-GOSS-RQJW-CCSU-1A33-G71G-CQBT-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
81. Which of the following statements is true of strategic business units (SBUs)?
a. Each SBU of a company typically has its own return on investment.
b. All SBUs of a company share the same goals and use the same strategies.
c. All SBUs of a company target the same market segment.
d. SBUs do not perform manufacturing functions.
ANSWER:
a
RATIONALE:
When properly created, a strategic business unit has a distinct mission and a specific target
market. Each SBU has its own rate of return on investment, growth potential, and associated
risks, and requires its own strategies and funding. See 2-2: Strategic Business Units
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.02 – 2-2
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Class:
Date:
Chapter 2
TOPICS:
A-head: Strategic Business Units
Bloom’s: Understand
BUSPROG: Analytic
Strategic Business Units
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: YPHWQ15WH01UM4DB0227
QUESTION ID:
JFND-GO4G-G3BU-COTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJW-8BTU-QCMG-8R3U-YC3SCCSS-CA3O-CESS-KCJU-GOSS-EA5B-GHSS-CQDG-GPTU-R3T1-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
82. Delta 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
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 Delta’s:
a. article of incorporation
b. financial statement
c. bona fide occupational qualification
d. mission statement
ANSWER:
d
RATIONALE:
Delta Corp. has highlighted its mission statement on its company Web site. The foundation of
any marketing plan is the firm’s mission statement, which answers the question “What
business are we in?” The way a firm defines its business mission profoundly affects the firm’s
long-run resource allocation, profitability, and survival. See 2-4: Defining the Business
Mission
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.04 – 2-4
TOPICS:
A-head: Defining the Business Mission
Bloom’s: Apply
BUSPROG: Reflective Thinking
Mission Statements
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: YTXF15T09XCPR1353774
QUESTION ID:
JFND-GO4G-G3BU-CO1G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMG-CJOU-N3DD-CIUD-1CMB8RSU-C3TI-8YSU-KCMF-GOSU-NCDR-COSU-1A5F-GAAU-QCUF-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
83. In the context of SWOT analysis, a strength of an organization can be:
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Chapter 2
a. favorable government policies.
b. lack of competitors.
c. superior production technology.
d. component lifestyles.
ANSWER:
c
RATIONALE:
When examining internal strengths and weaknesses, the marketing manager should focus on
organizational resources such as production costs, marketing skills, financial resources,
company or brand image, employee capabilities, and available technology. See 2-5:
Conducting a Situation Analysis
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.05
TOPICS:
A-head: Conducting a Situation Analysis
Bloom’s: Understand
BUSPROG: Analytic
SWOT Analysis
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: YUSUR9F2QL41AFVRN957
QUESTION ID:
JFND-GO4G-G3BU-CO1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ3-8FOS-G3JO-8YHS-NQJ1-GYSSG3TI-8YSS-RCBW-GOSU-N3BT-CCSU-YC33-G3UD-KPDN-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
84. An effective business mission statement is:
a. based on an analysis of anticipated environmental conditions.
b. defined in terms of the products and services the company produces.
c. based on short-term thinking and marketing myopia.
d. developed independently of the external business environment.
ANSWER:
a
RATIONALE:
The way a firm defines its business mission profoundly affects the firm’s long-run resource
allocation, profitability, and survival. The mission statement is based on a careful analysis of
benefits sought by present and potential customers, and an analysis of existing and
anticipated environmental conditions. See 2-4: Defining the Business Mission
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.04 – 2-4
TOPICS:
A-head: Defining the Business Mission
Bloom’s: Understand
BUSPROG: Analytic
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Mission Statements
DATE CREATED:
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DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ZHGBE8W8DC34875KJ017
QUESTION ID:
JFND-GO4G-G3BU-CO1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-8FOU-QQDF-CWHD-GPJIGCSU-GCDF-8RSU-RA3T-GOSS-N3DN-CESS-KQJT-G7TD-RC31-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
85. 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
ANSWER:
c
RATIONALE:
A product/service differentiation competitive advantage exists when a firm provides
something that is unique and valuable to buyers beyond simply offering a lower price than
that of the competition. Establishing a brand name is an example of a product/service
differentiation competitive advantage. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Remember
BUSPROG: Analytic
Product Differentiation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ZMUPT1EG02V9ZF4RD045
QUESTION ID:
JFND-GO4G-G3BU-CO1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMG-GYAD-13T3-CTTG-C3TWGRSU-QC5D-CESU-QCMD-GOSS-G3B3-GHSU-YAUN-GJ1S-CCDF-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
86. The focus of a mission statement of an organization should be on:
a. supply chain management.
b. internal operational procedures.
c. anti-competitive strategies.
d. the market the business serves.
ANSWER:
d
RATIONALE:
A mission statement should focus on the market or markets the organization is attempting to
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Chapter 2
serve rather than on the good or service offered. Otherwise, a new technology may quickly
make the good or service obsolete and the mission statement irrelevant to company functions.
See 2-4: Defining the Business Mission
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.04 – 2-4
TOPICS:
A-head: Defining the Business Mission
Bloom’s: Understand
BUSPROG: Analytic
Mission Statements
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ZNKS9Y8WBUFT422R0441
QUESTION ID:
JFND-GO4G-G3BU-COTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMN-CWHG-ECBI-G7OS-EPURGRSU-GPMR-8RSS-KCBO-GOSS-NQBU-GRSS-NCBI-GF1S-NAJI-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
87. __________is a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of
the marketing organization.
ANSWER:
Marketing audit
RATIONALE:
Perhaps the broadest control device available to marketing managers is the marketing audit—
a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and
performance of the marketing organization. A marketing audit helps management allocate
marketing resources efficiently. See 2-10: Following Up on the Marketing Plan
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.10
TOPICS:
A-head: Following Up on the Marketing Plan
Bloom’s: Remember
BUSPROG: Analytic
Marketing Planning
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ASUB92W5042NP342X886
QUESTION ID:
JFND-GO4G-G3BU-COT1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJO-CO3G-CC5F-CFOS-N3UF-CWSUQPDR-CESU-QCJ3-GOSU-1PJT-CASS-GQMG-GE4D-K3UN-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
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88. Revel Inc., a cell phone manufacturer, launched its new range of smartphones that could only be purchased on the
company’s official Web site and not at retail outlets. This limitation may be attributed to the__________element of
Revel’s marketing mix.
ANSWER:
distribution
RATIONALE:
Revel’s strategy to sell its cell phones online is attributed to the distribution element of its
marketing mix. 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. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Marketing Mix
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: EPSE9JNG4NRUKPNJJ735
QUESTION ID:
JFND-GO4G-G3BU-COTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJO-CRHS-CCDG-GTTU-ECJOGASU-R3DR-8YSS-KQBO-GOSU-1CMR-GWSU-KPBT-GHAU-KQMN-E7JI-YT4DJFNN-4OTI-GO4W-NQNBEE
89. In the context of marketing planning,__________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.
ANSWER:
control
RATIONALE:
Once a plan is chosen and implemented, its effectiveness must be monitored. Control
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
guide-lines. See 2-10: Following Up on the Marketing Plan
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.10
TOPICS:
A-head: Following Up on the Marketing Plan
Bloom’s: Understand
BUSPROG: Analytic
Marketing Planning
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: KCNWZEXF2KHQGB9RQ463
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Date:
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QUESTION ID:
JFND-GO4G-G3BU-COTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-CW5G-KCJI-CWHS-NAUBGESS-NP33-CESU-CA3A-GOSS-GQJ3-GHSU-NPTT-CE5S-KPDB-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
90. MaxNutri sells cookies and nutrition bars. The marketers at MaxNutri are trying to come up with a new and attractive
packaging design for its cookies. In this scenario, MaxNutri is working on its__________strategy.
ANSWER:
product
RATIONALE:
MaxNutri is working on its product strategy. The product includes not only the physical unit
but also its package, warranty, after-sale service, brand name, company image, value, and
many other factors. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Product Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: KWXR9300NZEXU22Y3549
QUESTION ID:
JFND-GO4G-G3BU-COTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJT-GJ1S-NPBW-GH3D-Y3T1-CWSUYAMN-CRSU-YP3U-GOSS-RPJO-COSU-Y3TI-GOHS-NC5B-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
91. Marketers at Libra Electronics are developing strategies to increase product sales. The marketers want to use a good
blend of digital advertising and print advertising. This implies that the marketers at Libra Electronics are working
on__________strategies.
ANSWER:
promotion
RATIONALE:
The marketers at Libra Electronics are working on promotion strategies. Promotion includes
advertising, public relations, sales promotion, and personal selling. See 2-9: The Marketing
Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Promotion Strategies
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Class:
Date:
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DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: MGRJW8ZXJ097MR3YK497
QUESTION ID:
JFND-GO4G-G3BU-COTS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ3-CR3U-EAT3-GOAU-RPTA-GCSUN3UN-8YSS-CQJA-GOSU-GCDF-GCSS-KPMB-CA5G-ECJW-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
92. The basic goal of__________is to increase the short-term cash return without too much concern for the long-run
impact.
ANSWER:
harvesting
RATIONALE:
Harvesting is appropriate for all SBUs except those classified as stars. The basic goal is to
increase the short-term cash return without too much concern for the long-run impact. See 23: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Strategic Alternatives
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: MTZJDE6JCWL00DL62735
QUESTION ID:
JFND-GO4G-G3BU-COTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJU-CJ1S-EQMB-GA5G-EPTI-GWSUCAJW-8YSU-1QB1-GOSU-CCUG-8RSS-RQMB-GWHU-EQMN-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
93. In the context of the portfolio matrix, a__________has low growth potential and a small market share.
ANSWER:
dog
RATIONALE:
A dog has low growth potential and a small market share. Most dogs eventually leave the
marketplace. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Cengage Learning Testing, Powered by Cognero
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Class:
Date:
Chapter 2
Strategic Alternatives
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: NJLPHE28NYW7XCUBU056
QUESTION ID:
JFND-GO4G-G3BU-COTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-GFUD-OP5R-GC3U-OCTWGCSU-CCMG-8RSU-EQBZ-GOSS-G3JA-GYSU-YCBS-GW4D-EAJS-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
94. In the context of marketing planning,__________entails gauging the extent to which marketing objectives have been
achieved during the specified time period.
ANSWER:
evaluation
RATIONALE:
After a marketing plan is implemented, it should be evaluated. Evaluation entails gauging the
extent to which marketing objectives have been achieved during the specified time period.
See 2-10: Following Up on the Marketing Plan
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.10
TOPICS:
A-head: Following Up on the Marketing Plan
Bloom’s: Understand
BUSPROG: Analytic
Marketing Planning
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: QMNYMBJNHUQWFRF7Z410
QUESTION ID:
JFND-GO4G-G3BU-CQNN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMG-GY4D-N3JT-GH5U-Q3BTGYSU-ECMN-8YSU-KP31-GOSU-KQBS-GASU-QPJZ-8Y3D-OQJZ-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
95. A distinguishing feature of the product/service differentiation competitive advantage is__________.
ANSWER:
having a strong brand image
RATIONALE:
A product/service differentiation competitive advantage exists when a firm provides
something that is unique and valuable to buyers beyond simply offering a lower price than
that of the competition. A strong brand image is an example of a product/service
differentiation competitive advantage. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
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Date:
Chapter 2
TOPICS:
A-head: Competitive Advantage
Bloom’s: Remember
BUSPROG: Analytic
Product Differentiation
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: QTZEZLN5LNM9G8RCC409
QUESTION ID:
JFND-GO4G-G3BU-CQNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMD-GFOU-QCUD-8R3G-GAMNGESS-CPUR-8RSS-GQJ1-GOSU-YCDB-8RSU-1PUF-GH4D-CCDD-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
96. Issues such as product lines, promotional communications, and pricing are all delineated in the__________.
ANSWER:
marketing plan
RATIONALE:
Issues such as product lines, distribution channels, marketing communications, and pricing
are all delineated in the marketing plan. The marketing plan is a written document that acts as
a guidebook of marketing activities for the marketing manager. See 2-3: Strategic
Alternatives
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Marketing Plans
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: QXXW56VQ91K01YBAR383
QUESTION ID:
JFND-GO4G-G3BU-CQB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJS-CTUD-QP5B-GH3S-NAUB-GHSSEPJS-8YSU-13BI-GOSU-C3UB-CCSU-YCJT-8B1S-KAUD-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
97. A marketing mix typically encompasses__________strategies.
ANSWER:
pricing
RATIONALE:
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. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
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Date:
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LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Marketing Mix
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: UFPGGTF2CA58Y5BGC591
QUESTION ID:
JFND-GO4G-G3BU-CQBA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ3-CI1U-E3BT-GE5D-Q3DG-COSURC5B-CRSU-QPJT-GOSS-RC3O-CCSS-ECMG-CIOU-GCUF-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
98. Beta Inc. manufactures electronic gadgets. The market researchers at Beta have discovered that a new competitor is
gaining more customers by selling its products at lower prices. In the context of SWOT analysis, the marketers at Beta
Inc. are most likely to consider this situation as a(n)__________.
ANSWER:
threat
RATIONALE:
The marketers at Beta Inc. are more likely to consider this situation as a threat. Threats are in
the external environment of a businesses; increasing competition can be considered as one of
the threats. See 2-5: Conducting a Situation Analysis
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.05
TOPICS:
A-head: Conducting a Situation Analysis
Bloom’s: Apply
BUSPROG: Reflective Thinking
SWOT Analysis
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: WDXZ3RCQY1GRPBHFG135
QUESTION ID:
JFND-GO4G-G3BU-CQNG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJT-GR5G-K3TA-GFUG-CCJI-8YSUQ3DN-8RSS-CCJW-GOSS-K3DF-GYSU-NPJ3-CEAU-CCMB-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
99. __________multiplied by the number of units sold equals total revenue for the firm.
ANSWER:
Price
RATIONALE:
Price is an important competitive weapon, and is very important to the organization because
price multiplied by the number of units sold equals total revenue for the firm. See 2-9: The
Marketing Mix
POINTS:
1
DIFFICULTY:
Challenging
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Date:
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QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Pricing Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: YQJGLXNDU8RNCTHAP598
QUESTION ID:
JFND-GO4G-G3BU-CQNF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-CAAU-KQBU-GC4S-GPJI-GCSUYCJI-CRSS-GCTS-GOSU-O3TO-GCSU-OP3Z-GITD-1A5N-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
100. In the portfolio matrix, a__________is in a low-growth market, but the product has a dominant market share; it is an
SBU that generates more money than it needs to maintain its market share.
ANSWER:
cash cow
RATIONALE:
A cash cow is an SBU that generates more cash than it needs to maintain its market share. It
is in a low-growth market, but the product has a dominant market share. See 2-3: Strategic
Alternatives
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Strategic Alternatives
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ZRHES3ZZX4BWGBM48439
QUESTION ID:
JFND-GO4G-G3BU-CQNR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-GC4D-GQJT-CPTD-EPMF-GOSURAJS-CRSU-GCBU-GOSS-CP3A-COSS-E3TW-GCHG-KPTI-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
101. Marketers at Omega Pharmaceuticals are identifying stores and outlets that will be most convenient for customers to
buy its products. The company is also planning the logistics of how and when the products will be delivered to the outlets.
Omega Pharmaceuticals is working on its__________strategy.
ANSWER:
distribution
RATIONALE:
Omega Pharmaceuticals is working on its distribution strategy. The goal of the distribution
strategy is to make sure products arrive in usable condition at designated places when
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needed. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Distribution Strategies
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ZSEQ6NMSHQJM503N0578
QUESTION ID:
JFND-GO4G-G3BU-CQND
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMB-GI1U-RQBW-CP1S-RPUGGOSU-NPTZ-8YSU-C3TW-GOSS-N3UD-CWSU-E3BO-8YAU-KPBZ-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
102. Discuss market segments.
ANSWER:
A market segment is a group of individuals or organizations who share one or more
characteristics. They therefore, may have relatively similar product needs. For example,
parents of newborn babies need formula, diapers, and special foods. Any market segment that
is targeted must be fully described. Demographics, psychographics, and buyer behavior
should be assessed.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Understand
BUSPROG: Analytic
Target Markets
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: BBBMVW24J5Z9H1NX6520
QUESTION ID:
JFND-GO4G-G3BU-CQBU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMF-GOAG-GQMB-GRHU-1P5NGCSU-EAJS-CRSU-OP3S-GOSU-NCJZ-GHSU-O3TZ-GP1D-YA3S-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
103. Discuss product strategies in the context of a marketing mix.
ANSWER:
Of the four Ps, a marketing mix typically starts with the product. The heart of a marketing
mix, the starting point, is the product offering and product strategy. It is hard to design a
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place strategy, decide on a promotion campaign, or set a price without knowing the product
to be marketed. The product includes not only the physical unit, but also its package,
warranty, after-sale service, brand name, company image, value, and many other factors.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Marketing Mix
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: LLCF253HSUM0SFJJ4972
QUESTION ID:
JFND-GO4G-G3BU-CQB1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJU-CF1D-13MB-GE5G-ECJO-CASSCATA-8YSU-QPB1-GOSS-NPBT-CRSS-KQJA-GH3U-KCJU-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
104. Discuss how strategic planning can be made effective.
ANSWER:
Effective strategic planning requires continual attention, creativity, and management
commitment. Strategic planning should not be an annual exercise in which, managers go
through the motions and forget about strategic planning until the next year. It should be an
ongoing process because the environment is continually changing and the firm’s resources
and capabilities are continually evolving. Sound strategic planning is based on creativity.
Managers should challenge assumptions about the firm and the environment and establish
new strategies.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.11
TOPICS:
A-head: Effective Strategic Planning
Bloom’s: Understand
BUSPROG: Analytic
Strategic Planning
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: LPTTQVK5GV41XWSDU891
QUESTION ID:
JFND-GO4G-G3BU-CQBT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJZ-GWHG-EPTZ-8RAS-KCBACASS-EA5D-CRSU-KPB3-GOSS-KC3T-CESU-ECMF-GCHG-NQDN-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
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105. Discuss the product development strategy.
ANSWER:
A product development strategy entails the creation of new products for present markets. In
January 2014, Beats Electronics launched Beats Music— a subscription-based streaming
music service that offers advanced personalization systems and forward-thinking family
sharing plans. Beats hopes this service’s novel features, sleek design, and celebrity
endorsements will catapult it to the front of the music streaming pack, which is currently
fronted by competitors such as Spotify and Rdio.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Understand
BUSPROG: Analytic
Product Development
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: PWUV851U01P8SSWN8600
QUESTION ID:
JFND-GO4G-G3BU-CQBO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJS-G3UD-YCDF-CA5D-N3BI-8RSSNPJ3-CESS-NP3O-GOSS-CP5B-CRSS-NAJA-8BTS-NP5D-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
106. Discuss the process of market opportunity analysis.
ANSWER:
The target market strategy identifies the market segment or segments on which a firm should
focus. This process begins with a market opportunity analysis (MOA)—the description and
estimation of the size and sales potential of market segments that are of interest to the firm,
and the assessment of key competitors in these market segments. After the firm describes the
market segments, it may target one or more of them.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Understand
BUSPROG: Analytic
Target Markets
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: SHWQ8FX8NCWMA5M8W729
QUESTION ID:
JFND-GO4G-G3BU-CQBZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UCengage Learning Testing, Powered by Cognero
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GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMR-GTUD-EATW-GY5U-NAUFCOSS-NPTA-CESU-CCUF-GOSU-CQMN-GWSS-NAUD-GP1U-KA5F-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
107. Discuss the factors that make marketing objectives effective.
ANSWER:
A marketing objective is a statement of what is to be accomplished through marketing
activities. To be useful, stated objectives should be:Realistic: Managers should develop
objectives that have a chance of being met. For example, it may be unrealistic for start-up
firms or new products to command dominant market share, given other competitors in the
marketplace.Measurable: Managers need to be able to quantitatively measure whether or not
an objective has been met. For example, it would be difficult to determine success for an
objective that states, “To increase sales of cat food.” If the company sells one percent more
cat food, does that mean the objective was met? Instead, a specific number should be stated,
“To increase sales of Purina brand cat food from $300 million to $345 million.”Time
specific: By what time should the objective be met? “To increase sales of Purina brand cat
food between January 1, 2014, and December 31, 2014.”Compared to a benchmark: If the
objective is to increase sales by 15 percent, it is important to know the baseline against which
the objective will be measured. Will it be current sales? Last year’s sales? For example, “To
increase sales of Purina brand cat food by 15 percent over 2012 sales of $300 million.”
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Understand
BUSPROG: Analytic
Marketing Objectives
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: TMKZ40SEDQ91J64AL649
QUESTION ID:
JFND-GO4G-G3BU-CQBS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJS-CPTD-CCDF-GWHD-YA31CRSU-QP5F-8RSS-KCT3-GOSU-13MN-GHSS-NQMD-GH5D-QQMD-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
108. Discuss the term marketing mix.
ANSWER:
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. The marketing manager can control each
component of the marketing mix, but the strategies for all four components must be blended
to achieve optimal results.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
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Date:
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LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Marketing Mix
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: WURG2MQFU0X3AXF5Y695
QUESTION ID:
JFND-GO4G-G3BU-CQBI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-CFTD-YP31-GEAS-NATT-8YSSG3JW-CESU-E3B1-GOSU-1PMN-COSU-OAJW-CWHG-EQBW-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
109. Discuss the general strategies for selecting target markets.
ANSWER:
Target markets can be selected by appealing to the entire market with one marketing mix,
concentrating on one segment, or appealing to multiple market segments using multiple
marketing mixes. Target markets could be eighteen- to twenty-five-year-old females who are
interested in fashion (Vogue magazine), people concerned about sugar and calories in their
soft drinks (Diet Pepsi), or parents who do not have time to potty train their children (Booty
Camp classes where kids are potty trained). Any market segment that is targeted must be
fully described. Demographics, psychographics, and buyer behavior should be assessed.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Understand
BUSPROG: Analytic
Marketing Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: YMLE3A38E19RG1SYR305
QUESTION ID:
JFND-GO4G-G3BU-CQBW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJU-GPTG-KPTW-8Y3D-RAMNGYSU-OQDN-CESS-GCMN-GOSU-GA3T-COSU-GPJI-CPTU-CPDF-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
110. Discuss promotion strategies in the context of a marketing mix.
ANSWER:
Promotion includes advertising, public relations, sales promotion, and personal selling.
Promotion’s role in the marketing mix is to bring about mutually satisfying exchanges with
target markets by informing, educating, persuading, and reminding them of the benefits of an
organization or a product. A good promotion strategy, like using a beloved cartoon character
such as Sponge-Bob Square Pants to sell gummy snacks, can dramatically increase sales.
Each element of this P—promotion—is coordinated and managed with the others to create a
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promotional blend or mix.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Marketing Mix
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: YWZKE1MJB8778T4NS095
QUESTION ID:
JFND-GO4G-G3BU-CQKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJW-8R4D-CAJI-CR4G-RC5N-GYSUECUR-8YSU-EPTO-GOSU-CCJ3-8RSU-K3JI-8Y5D-GCMD-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
111. Discuss the diversification strategy.
ANSWER:
Diversification is a strategy of increasing sales by introducing new products into new
markets. For example, UGG, a popular footwear brand known for its casual boots, has
introduced an upscale men’s footwear collection. The shoes are inspired by rock’n’roll legends
such as Jimi Hendrix and Jim Morrison, and are meant to appeal to new customers.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Understand
BUSPROG: Analytic
Diversification
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: YXLKVCEX59DLPHG2Y371
QUESTION ID:
JFND-GO4G-G3BU-CQKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMN-8FOU-1CTT-GAAS-KPDBGWSU-KA3A-8YSS-EAT3-GOSS-RCJ3-CESU-EAT1-CW5G-K3JI-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
112. Discuss the marketing strategy.
ANSWER:
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.
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POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.08 – 2-8
TOPICS:
A-head: Describing the Target Market
Bloom’s: Understand
BUSPROG: Analytic
Marketing Strategy
DATE CREATED:
5/1/2015 4:22 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
CGI: ZQZYKCNFBJNL3V8ZL781
QUESTION ID:
JFND-GO4G-G3BU-CQJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJS-CRAU-RPJO-GA5G-CCBA-GASSRAJT-CRSS-GCTO-GOSS-G3JW-CESU-QCT1-GY5U-QA3I-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
113. In the portfolio matrix, a _____ is in a low-growth market, but the product has a dominant market share; it is an SBU
that generates more money than it needs to maintain its market share.
a. problem child
b. dog
c. star
d. cash cow
ANSWER:
d
RATIONALE:
A cash cow is an SBU that generates more cash than it needs to maintain its market share. It
is in a low-growth market, but the product has a dominant market share. See 2-3: Strategic
Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Strategic Alternatives
DATE CREATED:
5/25/2015 11:46 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
ZRHES3ZZX4BWGBM48439
QUESTION ID:
JFND-GO4G-GR3W-EO4F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ3-CR3S-RPJO-GP1U-EAUN-GWSSGPBS-CRSU-Y3JZ-GOSS-NCBU-GHSU-N3TO-8Y4D-CPBT-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
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114. In the context of the portfolio matrix, a _____ has low growth potential and a small market share.
a. question mark
b. problem child
c. star
d. dog
ANSWER:
d
RATIONALE:
A dog has low growth potential and a small market share. Most dogs eventually leave the
marketplace. See 2-3: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Strategic Alternatives
DATE CREATED:
5/25/2015 11:54 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
NJLPHE28NYW7XCUBU056
QUESTION ID:
JFND-GO4G-GR3W-ETB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJZ-GITU-EPTZ-GA5S-G3T3-GCSSCC5R-8YSU-1CB1-GOSU-NCDG-GASU-NQBW-G71G-RA5N-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
115. 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
ANSWER:
c
RATIONALE:
Harvesting is appropriate for all SBUs except those classified as stars. The basic goal is to
increase the short-term cash return without too much concern for the long-run impact. See 23: Strategic Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Strategic Alternatives
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DATE CREATED:
5/25/2015 11:57 PM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
MTZJDE6JCWL00DL62735
QUESTION ID:
JFND-GO4G-GR3W-ETBO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJI-8BUD-RP3U-GR5U-Y3T1-CWSUEP3I-CESU-E3MD-GOSU-RA3W-GESU-GPBW-8BUD-YQBT-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
116. 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
ANSWER:
c
RATIONALE:
Issues such as product lines, distribution channels, marketing communications, and pricing
are all delineated in the marketing plan. The marketing plan is a written document that acts as
a guidebook of marketing activities for the marketing manager. See 2-3: Strategic
Alternatives
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.03
TOPICS:
A-head: Strategic Alternatives
Bloom’s: Remember
BUSPROG: Analytic
Marketing Plans
DATE CREATED:
5/26/2015 12:00 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
QXXW56VQ91K01YBAR383
QUESTION ID:
JFND-GO4G-GR3W-EC1B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ3-CJUG-KPJ1-CE3G-CQBI-GHSUEPJW-8YSS-NQBS-GOSS-KPDG-GESS-RPT3-8FTS-CC5R-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
117. Beta Inc. manufactures electronic gadgets. The market researchers at Beta have discovered that a new competitor is
gaining more customers by selling its products at lower prices. In the context of SWOT analysis, the marketers at Beta
Inc. are most likely to consider this situation as a(n)_____.
a. threat
b. opportunity
c. strength
d. weakness
ANSWER:
a
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Name:
Class:
Date:
Chapter 2
RATIONALE:
The marketers at Beta Inc. are more likely to consider this situation as a threat. Threats are in
the external environment of a businesses; increasing competition can be considered as one of
the threats. See 2-5: Conducting a Situation Analysis
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.05
TOPICS:
A-head: Conducting a Situation Analysis
Bloom’s: Apply
BUSPROG: Reflective Thinking
SWOT Analysis
DATE CREATED:
5/26/2015 12:04 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
WDXZ3RCQY1GRPBHFG135
QUESTION ID:
JFND-GO4G-GR3W-ECTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ3-8BUD-NCTW-CC4S-NC5BGCSU-O3BZ-CRSS-CCBU-GOSU-1P3W-COSU-KA5G-CA4U-QA3S-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
118. A distinguishing feature of the product/service differentiation competitive advantage is _____.
a. using inexpensive raw materials
b. having a strong brand image
c. having low overhead costs
d. creating generic products
ANSWER:
b
RATIONALE:
A product/service differentiation competitive advantage exists when a firm provides
something that is unique and valuable to buyers beyond simply offering a lower price than
that of the competition. A strong brand image is an example of a product/service
differentiation competitive advantage. See 2-6: Competitive Advantage
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.06
TOPICS:
A-head: Competitive Advantage
Bloom’s: Remember
BUSPROG: Analytic
Product Differentiation
DATE CREATED:
5/26/2015 12:06 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
QTZEZLN5LNM9G8RCC409
QUESTION ID:
JFND-GO4G-GR3W-EC3A
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UCengage Learning Testing, Powered by Cognero
Page 69
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Class:
Date:
Chapter 2
GOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-CP1S-GQJI-CJOS-GC5D-8YSSKAJZ-CRSU-KPTI-GOSS-KCUR-GYSS-RP33-CC3D-CP5R-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
119. A marketing mix typically encompasses _____ strategies.
a. pricing
b. divestment
c. anti-competitive
d. trade restraint
ANSWER:
a
RATIONALE:
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. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Marketing Mix
DATE CREATED:
5/26/2015 12:12 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
UFPGGTF2CA58Y5BGC591
QUESTION ID:
JFND-GO4G-GR3W-ECBA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-8B1S-GPTU-CWHD-N3JS-CASSC3BO-CESU-QPTO-GOSS-KCB1-GOSS-EAMR-CTTD-GCJZ-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
120. MaxNutri sells cookies and nutrition bars. The marketers at MaxNutri are trying to come up with a new and
attractive packaging design for its cookies. In this scenario, MaxNutri is working on its _____ strategy.
a. point of purchase
b. distribution
c. advertising
d. product.
ANSWER:
d
RATIONALE:
MaxNutri is working on its product strategy. The product includes not only the physical unit
but also its package, warranty, after-sale service, brand name, company image, value, and
many other factors. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
Cengage Learning Testing, Powered by Cognero
Page 70
Name:
Class:
Date:
Chapter 2
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Product Strategy
DATE CREATED:
5/26/2015 12:15 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
KWXR9300NZEXU22Y3549
QUESTION ID:
JFND-GO4G-GR3W-ECBI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-GFOU-O3JS-GO3D-QCDF-GOSSECBO-CRSU-QAT3-GOSS-KATT-GHSU-YQMR-GJTD-Y3UG-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
121. Revel Inc., a cell phone manufacturer, launched its new range of smartphones that could only be purchased on the
company’s official Web site and not at retail outlets. This limitation may be attributed to the _____ element of Revel’s
marketing mix.
a. evaluation
b. promotion
c. price
d. distribution
ANSWER:
d
RATIONALE:
Revel’s strategy to sell its cell phones online is attributed to the distribution element of its
marketing mix. 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. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Marketing Mix
DATE CREATED:
5/26/2015 12:18 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
EPSE9JNG4NRUKPNJJ735
QUESTION ID:
JFND-GO4G-GR3W-ECJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJI-CTUD-QQBZ-CE3U-NQDFCASU-QAJW-CESU-C3TA-GOSU-1PT1-GESU-R3MN-GFUG-GCBW-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
122. Marketers at Omega Pharmaceuticals are identifying stores and outlets that will be most convenient for customers to
buy its products. The company is also planning the logistics of how and when the products will be delivered to the outlets.
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Name:
Class:
Date:
Chapter 2
Omega Pharmaceuticals is working on its _____ strategy.
a. advertising
b. distribution
c. price
d. divesting
ANSWER:
b
RATIONALE:
Omega Pharmaceuticals is working on its distribution strategy. The goal of the distribution
strategy is to make sure products arrive in usable condition at designated places when
needed. See 2-9: The Marketing Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Distribution Strategies
DATE CREATED:
5/26/2015 12:20 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
ZSEQ6NMSHQJM503N0578
QUESTION ID:
JFND-GO4G-GR3W-ECJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJA-8YHU-13DG-GBOU-OPTOCRSS-N3JA-8RSU-13TZ-GOSU-1QMF-8YSS-EPBZ-GYAU-O3DN-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
123. Marketers at Libra Electronics are developing strategies to increase product sales. The marketers want to use a good
blend of digital advertising and print advertising. This implies that the marketers at Libra Electronics are working on
_____ strategies.
a. divesting
b. product
c. place
d. promotion
ANSWER:
d
RATIONALE:
The marketers at Libra Electronics are working on promotion strategies. Promotion includes
advertising, public relations, sales promotion, and personal selling. See 2-9: The Marketing
Mix
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Apply
Cengage Learning Testing, Powered by Cognero
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Name:
Class:
Date:
Chapter 2
BUSPROG: Reflective Thinking
Promotion Strategies
DATE CREATED:
5/26/2015 12:23 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
MGRJW8ZXJ097MR3YK497
QUESTION ID:
JFND-GO4G-GR3W-EPTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJ1-GF1S-EPJO-GPUG-N3UB-GWSSCPTO-CRSU-KCDR-GOSS-NQBA-CASU-NPDR-CFTU-RCJT-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
124. _____ multiplied by the number of units sold equals total revenue for the firm.
a. Discount
b. Price
c. Overhead cost
d. Profit margin
ANSWER:
b
RATIONALE:
Price is an important competitive weapon, and is very important to the organization because
price multiplied by the number of units sold equals total revenue for the firm. See 2-9: The
Marketing Mix
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.09
TOPICS:
A-head: The Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Pricing Strategies
DATE CREATED:
5/26/2015 12:29 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
YQJGLXNDU8RNCTHAP598
QUESTION ID:
JFND-GO4G-GR3W-EP3U
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJW-G3TU-E3DG-GFTG-NCMBCOSU-RPTU-8RSS-ECTT-GOSU-NCUG-GRSU-1PDG-CR5U-KP5F-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
125. _____ is a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the
marketing organization.
a. Marketing mix
b. Article of incorporation
c. Statement of qualification
d. Marketing audit
ANSWER:
d
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Name:
Class:
Date:
Chapter 2
RATIONALE:
Perhaps the broadest control device available to marketing managers is the marketing audit—
a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and
performance of the marketing organization. A marketing audit helps management allocate
marketing resources efficiently. See 2-10: Following Up on the Marketing Plan
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.10
TOPICS:
A-head: Following Up on the Marketing Plan
Bloom’s: Remember
BUSPROG: Analytic
Marketing Planning
DATE CREATED:
5/26/2015 12:32 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
ASUB92W5042NP342X886
QUESTION ID:
JFND-GO4G-GR3W-EP3W
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMMG-GH5G-R3TU-GHAD-OPJ3GCSU-RC3Z-8YSU-1PTZ-GOSU-CQDD-8YSU-RPTS-G71U-C3DN-E7JI-YT4D-JFNN4OTI-GO4W-NQNBEE
126. In the context of marketing planning, _____ 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
ANSWER:
c
RATIONALE:
After a marketing plan is implemented, it should be evaluated. Evaluation entails gauging the
extent to which marketing objectives have been achieved during the specified time period.
See 2-10: Following Up on the Marketing Plan
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.10
TOPICS:
A-head: Following Up on the Marketing Plan
Bloom’s: Understand
BUSPROG: Analytic
Marketing Planning
DATE CREATED:
5/26/2015 12:35 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
QMNYMBJNHUQWFRF7Z410
QUESTION ID:
JFND-GO4G-GR3W-EPBO
Cengage Learning Testing, Powered by Cognero
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Name:
Class:
Date:
Chapter 2
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJZ-CR4U-QP5G-CW4D-EPUF-GCSUNCDB-8RSS-G3UD-GOSS-ECB1-COSU-G3T3-CWHU-CQMN-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
127. In the context of marketing planning, _____ 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
ANSWER:
b
RATIONALE:
Once a plan is chosen and implemented, its effectiveness must be monitored. Control
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 guide-lines. See 2-10: Following Up on the Marketing Plan
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: MKTG.LAMB.15.02.10
TOPICS:
A-head: Following Up on the Marketing Plan
Bloom’s: Understand
BUSPROG: Analytic
Marketing Planning
DATE CREATED:
5/26/2015 12:37 AM
DATE MODIFIED:
5/26/2015 12:42 AM
CUSTOM ID:
KCNWZEXF2KHQGB9RQ463
QUESTION ID:
JFND-GO4G-GR3W-EPKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GIUD-YCBU-GY5G-RPJO-CTTN-4PBI-GPTN-4AUR-GY4N-4A3UGOH1-4ATT-GY5U-G3BS-CTDI-GWN8-EPRW-EMJI-CRHU-OPJO-8R5S-KPTZ-CESSRCUF-CESU-1CTZ-GOSU-QPT1-GESS-RCJI-8YHD-NP5D-E7JI-YT4D-JFNN-4OTIGO4W-NQNBEE
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