Answer: CDiff: 1Page Ref: 38Skill: ConceptObjective: 2-13) Which of the following is the first step in strategic planning?A) set objectives and goalsB) develop the business portfolioC) define the company missionD) plan marketing strategiesE) identify threats and weaknessesAnswer: CDiff: 1Page Ref: 39Skill: ConceptObjective: 2-1

4) Which of the following is NOT a step in the strategic planning process?A) defining the company missionB) setting company objectives and goalsC) designing the business portfolioD) planning marketing and other functional strategiesE) evaluating all members of the value chainAnswer: EDiff: 2Page Ref: 39Skill: ConceptObjective: 2-15) Which of the following provides an answer to these questions: What is our business? Who areour customers? What do our customers value? What should our business be?A) objectives and goalsB) a mission statementC) a business portfolioD) marketing and functional strategiesE) operational strategiesAnswer: B

7) All of the following are accurate guidelines for a company's mission statement EXCEPTwhich one?A) A mission statement should be realistic.B) A mission statement should be narrow.C) A mission statement should emphasize the company's strengths in the marketplace.D) A mission statement should be specific.E) A mission statement should motivate employees.Answer: BDiff: 3Page Ref: 39AACSB: CommunicationSkill: ConceptObjective: 2-18) A company's mission statement serves as a statement of ________.A) factB) valuesC) purposeD) financial goalsE) employee commitmentAnswer: CDiff: 2Page Ref: 39AACSB: CommunicationSkill: ConceptObjective: 2-19) Which of the following is NOT a market-oriented business definition?A) "to make the Internet buying experience fast, easy, and enjoyable"B) "to sell tools and home repair and improvement items"C) "to deliver low prices every day"D) "to be the guardian of our customers' financial dreams"E) "to bring aspiration and innovation to every athlete in the world"Answer: BDiff: 2Page Ref: 40AACSB: Reflective ThinkingSkill: ConceptObjective: 2-1

14) Which of the following can be a company division, a product line within a division, orsometimes a single product or brand?A) a marketB) the BCGC) an SBUD) a PLCE) a value delivery networkAnswer: CDiff: 2Page Ref: 41Skill: ConceptObjective: 2-215) After management has identified the key businesses making up its company, what is the nextstep in portfolio analysis?A) identifying businesses in which to investB) assessing the attractiveness of its SBUsC) deciding whether to harvest any businessesD) completing short-range planningE) identifying SBUsAnswer: BDiff: 2Page Ref: 41Skill: ConceptObjective: 2-216) The best known product portfolio planning method was developed by ________.A) the Boston Consulting GroupB) Philip KotlerC) Harvard UniversityD) the SRI Consulting FirmE) James P. HessAnswer: ADiff: 2Page Ref: 41Skill: ConceptObjective: 2-217) Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and________.A) market share; strength of the SBU's positionB) market diversification; relative market shareC) market or industry attractiveness; strength of the SBU's positionD) market growth rates; profitsE) market penetration; market developmentAnswer: CDiff: 2Page Ref: 41Skill: ConceptObjective: 2-2

32) While a valuable planning tool, a problem with using the BCG matrix centers is that itfocuses on ________A) the future instead of the presentB) the present instead of the futureC) financial issues instead of the customerD) the customer instead of suppliersE) the past instead of the presentAnswer: BDiff: 3Page Ref: 42Skill: ConceptObjective: 2-233) A common practice among marketers is to identify and develop new markets for theirexisting products. This practice is called ________.A) market developmentB) product developmentC) market penetrationD) market skimmingE) dual adaptationAnswer: ADiff: 1Page Ref: 45Skill: ConceptObjective: 2-234) Starbucks Coffee has recently begun selling and playing compilation CDs and is supportingits own XM satellite radio station. This represents which strategy for growth?A) product developmentB) market developmentC) market penetrationD) diversificationE) partner developmentAnswer: DDiff: 3Page Ref: 44AACSB: Reflective ThinkingSkill: ConceptObjective: 2-2

39) Multinationals like Honda Motor Co. and Wal-Mart stores have designed programs to workclosely with their suppliers to help them reduce their costs and improve quality. This illustratesthe importance of an efficient ________.A) business portfolioB) low-cost operatorC) product mixD) value delivery networkE) value chainAnswer: DDiff: 2Page Ref: 47Skill: ConceptObjective: 2-340) Which of the following is the marketing logic by which a company hopes to achieveprofitable customer relationships?A) priceB) a consistent product mixC) the value delivery networkD) marketing strategyE) differentiationAnswer: DDiff: 1Page Ref: 48Skill: ConceptObjective: 2-441) Lucy Ortiz is preparing a PowerPoint presentation of the marketing process to show at asales meeting. ________ should appear in the center of her diagram depicting marketingstrategies and the marketing mix.A) Sales goalsB) Customer value and relationshipsC) Company objectivesD) Customer retention ratesE) CompetitorsAnswer: BDiff: 1Page Ref: 49Skill: ConceptObjective: 2-4

46) Your new employer has asked you, as a new marketing graduate, to develop a group ofpotential customers who might respond in a similar way to a given set of marketing efforts. Youhave been asked to develop a(n) ________.A) target marketB) market segmentC) marketD) market strategyE) undefined nicheAnswer: BDiff: 2Page Ref: 49Skill: ConceptObjective: 2-447) Which of the following involves evaluating each market segment's attractiveness andselecting one or more segments to enter?A) market segmentationB) differentiationC) market targetingD) the market mixE) positioningAnswer: CDiff: 1Page Ref: 49Skill: ConceptObjective: 2-448) Which of the following is the place a product occupies in the consumer's mind relative tocompetition?A) positionB) placementC) market segmentationD) market targetingE) product promotionAnswer: ADiff: 2Page Ref: 50Skill: ConceptObjective: 2-4

60) According to the textbook, your boss is most likely referring to ________ when she mentions"doing things right."A) strategyB) planningC) objectivesD) implementationE) efficiencyAnswer: DDiff: 3Page Ref: 55Skill: ConceptObjective: 2-561) IBM has its sales and marketing people assigned to markets in specific countries, regions,and districts. This is an example of which type of marketing organization?A) geographicB) productC) functionalD) divisionalE) psychographicAnswer: ADiff: 2Page Ref: 56Skill: ConceptObjective: 2-562) Which of the following is the most common approach to marketing organization?A) geographicB) product managementC) functionalD) divisionalE) combinationAnswer: CDiff: 3Page Ref: 56Skill: ConceptObjective: 2-563) Berman Electric, a chain of 18 appliance stores, has a marketing organization in whichspecialists head different marketing activities. What is this type of organization called?A) geographicB) productC) organicD) functionalE) marketAnswer: DDiff: 2Page Ref: 56Skill: ConceptObjective: 2-5

82) The major activity in strategic planning is strategic business unit planning, wherebymanagement evaluates the products and businesses making up the company.Answer: FALSEDiff: 2Page Ref: 41Skill: ConceptObjective: 2-283) When designing business portfolios, most companies are well advised to add a broad rangeof products and businesses to their organization.Answer: FALSEDiff: 2Page Ref: 41Skill: ConceptObjective: 2-284) The purpose of strategic planning is to find ways in which your company can best use itsstrengths to take advantage of attractive opportunities in the environment.Answer: TRUEDiff: 2Page Ref: 41Skill: ConceptObjective: 2-285) In the BCG matrix, "dogs" are low-growth businesses and products that do not generateenough cash to maintain themselves.Answer: FALSEDiff: 3Page Ref: 42Skill: ConceptObjective: 2-286) The growth strategy of diversification involves offering modified or new products to currentmarkets.Answer: FALSEDiff: 2Page Ref: 46Skill: ConceptObjective: 2-287) When an organization identifies and develops new markets for its current products andservices, it is engaged in market development.Answer: TRUEDiff: 1Page Ref: 45Skill: ConceptObjective: 2-2

94) Holiday Inn has divided the total customer market into smaller segments and selected themost promising segments. Deciding what position it wants to occupy in these segments is calledtargeting.Answer: FALSEDiff: 2Page Ref: 50Skill: ApplicationObjective: 2-495) When a company positions its product, it should first identify possible customer valuedifferences within a market segment that could be the basis of a competitive advantage for theproduct.Answer: TRUEDiff: 3Page Ref: 50Skill: ConceptObjective: 2-496) The marketing mix consists of product, price, place, positioning, and promotion.Answer: FALSEDiff: 2Page Ref: 48AACSB: Analytic SkillsSkill: ApplicationObjective: 2-497) Guided by marketing strategy, the company designs a marketing mix made up of factorsunder its control: product, price, place, and promotion.Answer: TRUEDiff: 2Page Ref: 48Skill: ConceptObjective: 2-498) One valid criticism of the four Ps concept is that services are not considered.Answer: FALSEDiff: 3Page Ref: 52AACSB: Analytic SkillsSkill: ConceptObjective: 2-499) The four Ps concept takes the seller's view of the market.Answer: FALSEDiff: 2Page Ref: 52Skill: ConceptObjective: 2-4