Question 1

The director of marketing for 3M tapes tells the rest of the management team,"When it comes to our transparent packaging tape unit,our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?
A) Problem child
B) Star
C) Cash cow
D) Dog
E) Question mark

Accepted Answer

The strategy of using funds generated from the transparent packaging tape unit to support a venture in another market indicates that the packaging tape unit is a cash cow. Cash cows are mature business units that generate significant funds and profits, which can be used to support other business ventures within the company.

Question 2

Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm.In this example,Duracell is a(n)____ unit of Kraft.
A) strategic business
B) marketing
C) dependent
D) independent
E) corporate

Accepted Answer

Duracell is a strategic business unit (SBU) of Kraft, which means it operates as a separate profit center with its own strategies, objectives, and budgets. As a separate SBU, Duracell can be evaluated and managed independently from other divisions within Kraft.

Question 3

Based on the work by the Boston Consulting Group,products with a dominant share of the market and good prospects for growth are
A) dogs.
B) cash cows.
C) stars.
D) question marks.
E) pigs.

Accepted Answer

According to the Boston Consulting Group matrix, products with a dominant share of the market and good prospects for growth are classified as "stars." These products have a high market share and are experiencing rapid growth, indicating that they are successful in the current market and have potential for future growth. Therefore, investing in and promoting these products is likely to yield profitable returns.

Question 4

____ strategy determines the means for utilizing resources in the functional areas of marketing,production,finance,research and development,and human resources to achieve the organization's goals.
A) Corporate
B) Business-unit
C) Marketing
D) Mission statement
E) Marketing mix

Accepted Answer

The answer of ____ strategy determines the means for utilizing...

Question 5

A group that has the willingness,ability,and authority to buy a product is a
A) market.
B) consumer.
C) strategic business unit.
D) business customer.
E) strategic window.

Accepted Answer

A market is defined as a group of individuals or organizations that have the desire (willingness), financial capacity (ability), and legal power (authority) to purchase goods or services.

Question 6

According to the Boston Consulting Group,marketers may classify their products as all of the following except
A) dogs.
B) cash contributors.
C) question marks.
D) stars.
E) cash cows.

Accepted Answer

The Boston Consulting Group classified products into four categories: Dogs, Question Marks, Stars, and Cash Cows. Cash Contributors is not a recognized classification in their product portfolio matrix.

Question 7

Within a business organization,a profit center that is self-supporting in terms of sales,markets,production,and other resources is known as a
A) profit entity.
B) strategic business unit.
C) marketing program.
D) small business.
E) diversified corporation.

Accepted Answer

A self-supporting profit center is referred to as a strategic business unit (SBU). This entity operates independently within the larger organization and has its own set of resources, markets, customers, and competitors. It typically has its own profit and loss statement and is evaluated based on its contribution to the overall success of the business.

Question 8

Gucci Group,a marketer of high-fashion products,achieved a company turnaround by ensuring that its brand had the same image and proper display around the world.It also lowered prices on some items,like handbags,to be more competitive.This illustrates a company working to develop a marketing mix that is both ____ and ____.
A) consistent; flexible
B) formal; flexible
C) variable; flexible
D) consistent; rigid
E) consistent; formal

Accepted Answer

Gucci Group was able to achieve a company turnaround by ensuring that its brand had the same image and proper display around the world, which is consistent. However, it also lowered prices on some items like handbags to be more competitive, which is a flexible approach. Therefore, the marketing mix developed by the company is both consistent and flexible.

Question 9

The percentage of a market which actually buys a specific product from a specific company is referred to as that product's
A) strategic segment
B) target market
C) market share
D) market cut
E) market position

Accepted Answer

Market share is the percentage of the market that a particular company or product holds. It is calculated by dividing the company's sales by the total sales in the market. It is an important metric for businesses to track as it gives them an idea of their competitiveness and market position.

Question 10

Jason,a 17-year old high school student,wants to buy a pack of Marlboro Lights.He has the money to purchase them,but he is still not considered to be a market for the product due to his lack of ____ to buy.
A) ability
B) willingness
C) authority
D) need
E) location

Accepted Answer

Authority refers to the legal power or right to purchase a product. Although Jason has the money to purchase the cigarettes, he is not of legal age to buy tobacco products, and therefore does not have the authority to buy them.

Question 11

High Gliding Air Academy is developing its marketing mix for the coming year.Its managers know that they must first select ____,which may be the most important decision they make in the planning process.
A) the promotional strategy
B) a distribution method
C) the pricing strategy
D) a target market
E) the desired profit margin

Accepted Answer

Selecting a target market is critical as all other elements of the marketing mix will depend on it. Knowing the target market will help in determining the appropriate promotional strategy, pricing strategy, and distribution method, as well as the desired profit margin. Meeting the needs and wants of the target market is crucial for the success of the marketing mix.

Question 12

According to the text,a market is defined as
A) a place to buy products.
B) the buyers of the products that a company develops,promotes,prices,and distributes.
C) the specific group of customers on whom an organization focuses its marketing efforts.
D) a group of individuals and/or organizations that have needs for products in a product class and have the ability,willingness,and authority to purchase these products.
E) the percentage of a group of customers that actually buys a specific product from a specific company.

Accepted Answer

A market is defined as a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products. This definition includes both the potential buyers and the products being offered for sale.

Question 13

All marketing mix decisions must have two characteristics: ____ and ____.
A) consistency; flexibility
B) consistency; rigidity
C) formality; flexibility
D) variability; flexibility
E) formality; rigidity

Accepted Answer

Consistency ensures that all elements of the marketing mix are in cohesion and reinforce each other, while flexibility allows for adjustment and adaptation to changing market conditions and customer needs. This balance between consistency and flexibility is essential for effective marketing mix decisions. Options B, C, D, and E do not accurately describe the necessary characteristics for marketing mix decisions.

Question 14

Which of the following statements about the marketing mix is incorrect?
A) The selection of the target market serves as the basis for the creation of the marketing mix.
B) The elements of the marketing mix are sometimes referred to as marketing mix variables.
C) Each element of the marketing mix must be precisely matched with the needs of the target market.
D) Once a marketing mix has been created for a particular target market,it cannot be changed until a new strategic window opens.
E) Each element of the marketing mix must be precisely matched with the other elements of the marketing mix.

Accepted Answer

This statement is incorrect because a marketing mix can and should be adjusted as needed based on market changes and feedback from customers. It is important to continually evaluate and adjust the marketing mix to ensure it is meeting the needs and wants of the target market.

Question 15

According to the Boston Consulting Group,question marks are characterized as products
A) having a small share of a growing market and requiring large amounts of cash to build market share.
B) generating more cash than is required to maintain share.
C) encompassing the greatest number of products.
D) existing at a cost disadvantage and revealing few opportunities for growth at a reasonable cost.
E) having substantial reported profits but needing a lot of cash to finance the rate of growth.

Accepted Answer

Question marks are products with a low market share in a high-growth market and require significant amounts of cash to increase their market share. They have not yet become profitable and may become stars or dogs depending on their ability to gain market share.

Question 16

The Boston Consulting Group's matrix is based on the
A) idea that a firm's market share and market attractiveness are the important factors for a marketing strategy.
B) assumption that a firm's actions have a profitable impact on marketing strategy.
C) business position and market attractiveness of the firm.
D) philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy.
E) idea that a product's market growth rate and market attractiveness determine the marketing strategy.

Accepted Answer

The Boston Consulting Group's matrix, also known as the BCG matrix, categorizes products or business units based on their market growth rate and relative market share. This helps companies decide where to allocate resources for maximum profitability and growth potential.

Question 17

Resource deployment and coordination of functional areas of business are determined by
A) the mission statement.
B) corporate strategy.
C) business-unit strategy.
D) marketing strategy.
E) the marketing mix.

Accepted Answer

Resource deployment and coordination of functional areas of business are determined by corporate strategy, which outlines the overall direction, goals, and objectives of the organization. The other options listed, such as mission statement, business-unit strategy, marketing strategy, and the marketing mix, are more specific and tactical in nature, and are typically developed based on the broader corporate strategy.

Question 18

Which of the following is the most specific and detailed type of business strategy?
A) business-unit
B) marketing
C) corporate
D) customer service
E) tactical

Accepted Answer

The answer of Which of the following is the most...

Question 19

Business decisions made in creating a marketing mix
A) are made before a target market is identified.
B) are unchangeable once they are agreed upon by management.
C) are only as good as the organization's understanding of the needs of the target market.
D) usually take place when a strategic window is open.
E) must always be consistent with the firm's opportunities.

Accepted Answer

Business decisions made in creating a marketing mix must be based on a thorough understanding of the needs and wants of the target market. Failing to do so may result in ineffective marketing efforts and a failed product or service launch. It is important to continuously gather and analyze market research data to ensure the marketing mix is successfully reaching and resonating with the target market.

Question 20

The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as
A) dogs.
B) cash cows.
C) stars.
D) cash contributors.
E) question marks.

Accepted Answer

This is the definition of a cash cow according to the Boston Consulting Group classification system. Dogs have low market share and low growth prospects, stars have high market share and high growth prospects, question marks have low market share but high growth prospects, and cash contributors have high market share but do not generate excess cash.

Quiz 2: Developing and Implementing Marketing Strategies

Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm.In this example,Duracell is a(n) ____ unit of Kraft.

Based on the work by the Boston Consulting Group,products with a dominant share of the market and good prospects for growth are

____ strategy determines the means for utilizing resources in the functional areas of marketing,production,finance,research and development,and human resources to achieve the organization's goals.

A group that has the willingness,ability,and authority to buy a product is a

According to the Boston Consulting Group,marketers may classify their products as all of the following except

Within a business organization,a profit center that is self-supporting in terms of sales,markets,production,and other resources is known as a

The percentage of a market which actually buys a specific product from a specific company is referred to as that product's

Jason,a 17-year old high school student,wants to buy a pack of Marlboro Lights.He has the money to purchase them,but he is still not considered to be a market for the product due to his lack of ____ to buy.

High Gliding Air Academy is developing its marketing mix for the coming year.Its managers know that they must first select ____,which may be the most important decision they make in the planning process.

According to the text,a market is defined as

All marketing mix decisions must have two characteristics: and .

Which of the following statements about the marketing mix is incorrect?

According to the Boston Consulting Group,question marks are characterized as products

The Boston Consulting Group's matrix is based on the

Resource deployment and coordination of functional areas of business are determined by

Which of the following is the most specific and detailed type of business strategy?

Business decisions made in creating a marketing mix

The Boston Consulting Group classifies products that have a dominant market share but low prospects for growth and that generate more cash than is required to maintain market share as