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Chapter 2 Practice
Terms in this set (25)
A brand new hardware company is writing its mission statement. Which of the following is the BEST mission statement possible for the new company?
A. We will have two million dollars in profit by the end of our second fiscal year and twice that amount by the end of year five.
B. We will help customers build, invigorate, restore, refurbish, or completely redesign their homes or businesses.
C. We will be the best hardware company in the world. No other company will ever outsell us.
D. We are providers of hardware, lumber-based, and appliance products to be used for home improvement and commercial construction projects.
E. We embrace the deeper meaning of the home and commercial improvements.
Sarah has started a new company, Sarah's Soaps. She has decided upon the overall purpose and mission, created detailed objectives to guide the company, and performed detailed portfolio analysis. Unsure of her next step, she looks to her partner Mildred for advice. What is the BEST advice Mildred could give?
A. Let the new department heads take over responsibility to test their effectiveness.
B. Reevaluate the mission statement to make sure it reflects the detailed objectives.
C. Create a growth-share matrix to find cash cows to help fund question marks.
D. Determine a target market and begin aggressively marketing to them.
E. Develop detailed marketing and departmental plans that will support the company-wide plan.
How do company objectives and goals relate to the company mission statement?
A. The mission statement and the company goals are two different pieces used to explain the business of the company to its shareholders.
B. The mission statement defines what the company does, and the goals and objectives outline why the company does it.
C. The goals and objectives outline the steps necessary to accomplish the company's mission statement.
D. The goals and objectives are a restatement of the mission statement in more understandable terms.
E. The mission statement is developed based upon the company's goals and objectives.
When a company engages in strategic planning, it must consider which of the following?
A. How to divide its assets among stockholders
B. How to keep current businesses running smoothly
C. How to take advantage of current business opportunities
D. How to make the most money possible during a fiscal year
E. How to best market its products
What is a business portfolio?
A. The collection of businesses and products that make up a company
B. A record of business investments
C. A collection of a group of companies within the same area of business
D. The record of the responsibilities of the CEO and the CFO
E. A projection of a future marketing direction for a company
Question marks, cash cows, dogs, and stars are the four types of SBUs defined in which of the following?
A. SWOT analysis
B. Market segmentation
C. Product expansion grid
D. Growth-share matrix
E. Value delivery network
What are stars in the growth share matrix?
A. Low-growth, high-share businesses or products
B. Low-growth, low-share businesses and products
C. The growth star matrix does not contain stars.
D. Low-share, high-growth businesses or products
E. High-growth, high-share businesses or products
Tammy's Tap Dancing School currently has several question marks in its business portfolio, but it is currently maintaining its market share. At the most recent board meeting, the CEO of Tammy's Tap Dancing School decided to allocate all of the company's profits toward the growth and expansion of this question mark, in order to cause the question marks to become stars. What is likely to happen to this company?
A. The growth of the company will be unpredictable since there is no guarantee a question mark will become a star.
B. The company will gain market share and prosper as the question marks are developed.
C. The company will go bankrupt, because all of its profits will be wasted on uncertain SBUs.
D. The company will be unable to sustain itself, because its profits will be spent on developing question marks and not on maintaining more profitable SBUs.
E. The company will not show any growth or change at all, because profits will neither increase nor decrease.
What is management's first step when performing a portfolio analysis?
A. Identify strategic business units.
B. Determine the company's goals.
C. Perform a SWOT analysis.
D. Determine the company's target market.
E. Outline the company's mission statement.
The goal of a market development growth strategy is to do which of the following?
A. Identify and develop new markets for current products of a company's market.
B. Start up businesses beyond its current products and markets.
C. Make more sales to current customers without changing its original products.
D. Buy businesses beyond its current products and markets.
E. Offer modified or new products to current markets.
A value chain consists of which of the following?
A. The customers who assign value to products within the company
B. A chain of SBUs within a company that provide the most value
C. The network of distributors and suppliers that support a company
D. The acquisitions team that buys products for the company to sell
E. The series of internal departments that carry out value-creating activities
A company's value chain is only as strong as its weakest link. What should a company do to properly gauge the strength of its links and continually improve?
A. Determine the company's proper marketing mix.
B. Evaluate its value delivery network.
C. Examine the company's partner relationship management.
D. Perform a growth-share matrix.
E. Perform a SWOT analysis.
To create value for customers, marketers must improve the performance of the ______, which includes partnering with suppliers, distributors, and customers.
A. value delivery network
B. internal value chain
C. strategic plan
D. competitive delivery network
E. marketing system
MorningLinks, Inc., makes breakfast sausages and has begun to use the slogan, "Start Your Day the Organic Way" to jump on the eco-friendly movement. Unfortunately, as soon as consumers discovered MorningLinks' not-so-organic ingredients, the company began to see a rapid decline in profits and customer loyalty. What was MorningLinks' mistake?
A. MorningLinks' slogan was not catchy enough.
B. MorningLinks did not properly differentiate its position.
C. MorningLinks did not deliver on the promise it made.
D. MorningLinks failed to target the correct market segments.
E. MorningLinks focused only on breakfast sausages instead of diversifying its product mix.
When consumers respond in a similar way to a given set of marketing efforts, they can be referred to as a(n) _________.
C. market segment
D. target market
E. value chain
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