Marketing: Real People, Real Choices, 4e

1
Marketing Real People, Real Choices, 4e

• Chapter 2

2
Products that produce profit and market share
with very little effort are referred to as
________ in the BCG matrix.
dogs cash cows value products stars
3
Products that produce profit and market share
with very little effort are referred to as
________ in the BCG matrix.
dogs cash cows value products stars
4
A growth strategy that emphasizes both new
products and new markets is called
diversification.
True False
5
A growth strategy that emphasizes both new
products and new markets is called
diversification.
True False
6
A competitive advantage is

• a superior capability of a company in comparison
  to its direct competitors.
• a growth strategy designed to increase market
  share.
• the ability of the company to outperform its
  competition.
• a growth strategy to increase profitability.

7
A competitive advantage is

• a superior capability of a company in comparison
  to its direct competitors.
• a growth strategy designed to increase market
  share.
• the ability of the company to outperform its
  competition.
• a growth strategy to increase profitability.

8
SWOT refers to the analysis of a companys sales,
workforce, ownership, and talent.
True False
9
SWOT refers to the analysis of a companys sales,
workforce, ownership, and talent.
True False
10
When managers compare a marketing planning
objective to an actual occurrence, they are
implementing control aspects of the plan.
True False
11
When managers compare a marketing planning
objective to an actual occurrence, they are
implementing control aspects of the plan.
True False
12
If Chappy Chip Company is developing a brand new
flavor of baked potato chips, they are
implementing a ___________ plan.

• market development
• product development
• strategic
• diversification

13
If Chappy Chip Company is developing a brand new
flavor of baked potato chips, they are
implementing a ___________ plan.

• market development
• product development
• strategic
• diversification

14
Automobile dealerships in rural America are
having a difficult time selling automobiles
because of the high price of gasoline. This is
due most likely to the __________.

1. internal environment of the automobile industry
2. values in our society
3. demographics of rural America
4. changing dynamics of the external business
   environment

15
Automobile dealerships in rural America are
having a difficult time selling automobiles
because of the high price of gasoline. This is
due most likely to the __________.

1. internal environment of the automobile industry
2. values in our society
3. demographics of rural America
4. changing dynamics of the external business
   environment

16
Companies that introduce new products into new
markets are penetrating that market.
True False
17
Companies that introduce new products into new
markets are penetrating that market.
True False
18
A patent will always give a company a slight
competitive advantage.
True False
19
A patent will always give a company a slight
competitive advantage.
True False
20
A company creates a product portfolio to reduce
the risks of doing business.
True False
21
A company creates a product portfolio to reduce
the risks of doing business.
True False
22
MADD, the Mothers Against Drunk Driving, seeks to
prevent drunk driving, support the victims of
this crime, and prevent underage drinking. This
philosophy is most likely the organizations
__________.

1. internal analysis
2. marketing plan
3. mission statement
4. profit objective

23
MADD, the Mothers Against Drunk Driving, seeks to
prevent drunk driving, support the victims of
this crime, and prevent underage drinking. This
philosophy is most likely the organizations
__________.

1. internal analysis
2. marketing plan
3. mission statement
4. profit objective

24
The for-profit business schools like the
University of Phoenix most likely compete in a
structure defined as _________.
oligopoly pure competition monopolistic competition monopoly
25
The for-profit business schools like the
University of Phoenix most likely compete in a
structure defined as _________.
oligopoly pure competition monopolistic competition monopoly
26
When a company tries to develop an edge over its
competitors based on a superior product, better
distribution, better services, or lower selling
price based on lower costs, it is trying to
establish a(n)

1. business-to-business advantage
2. industrial advantage
3. competitive advantage
4. production advantage
5. market segment

27
When a company tries to develop an edge over its
competitors based on a superior product, better
distribution, better services, or lower selling
price based on lower costs, it is trying to
establish a(n)

1. business-to-business advantage
2. industrial advantage
3. competitive advantage
4. production advantage
5. market segment

28
Which of the following is not an example of a
competitive advantage?

1. a superior product in relation to the competition
2. a technology level equal to the competition
3. better distribution and services
4. low costs and selling prices

29
Which of the following is not an example of a
competitive advantage?

1. a superior product in relation to the competition
2. a technology level equal to the competition
3. better distribution and services
4. low costs and selling prices

30
A company will be more successful in its
marketing planning if it has a knowledge of
changes in the marketing environment.
True False
31
A company will be more successful in its
marketing planning if it has a knowledge of
changes in the marketing environment.
True False
32
The more a company knows about the weaknesses in
a competitors marketing strategy, the better
able it will be in exploiting the weakness to
gain competitive advantage.
True False
33
The more a company knows about the weaknesses in
a competitors marketing strategy, the better
able it will be in exploiting the weakness to
gain competitive advantage.
True False
34
Discovering threats to marketing success, like
Kodaks finding out about Sonys new digital
camera technology, forces companies to rethink
their strategic planning.
True False
35
Discovering threats to marketing success, like
Kodaks finding out about Sonys new digital
camera technology, forces companies to rethink
their strategic planning.
True False
36
If companies do not have a sufficient knowledge
of the competitive nature of the environment,
they will most likely make poor marketing
decisions in that environment.
True False
37
If companies do not have a sufficient knowledge
of the competitive nature of the environment,
they will most likely make poor marketing
decisions in that environment.
True False
38
Objectives are the part of a marketing plan that
define marketing opportunities.
True False
39
Objectives are the part of a marketing plan that
define marketing opportunities.
True False
40
Strategic planning focuses on one product in the
firms product mix.
True False
41
Strategic planning focuses on one product in the
firms product mix.
True False
42
Evaluation of a marketing plan should be an
ongoing process.
True False
43
Evaluation of a marketing plan should be an
ongoing process.
True False
44
It is important to have information to help make
marketing decisions. Two of the most important
areas of information needed to exploit
opportunities in marketing are a knowledge of

1. stock prices and interest rates
2. competitors and environmental changes
3. competitors and average inventory
4. the fluctuating dollar and the global environment

45
It is important to have information to help make
marketing decisions. Two of the most important
areas of information needed to exploit
opportunities in marketing are a knowledge of

1. stock prices and interest rates
2. competitors and environmental changes
3. competitors and average inventory
4. the fluctuating dollar and the global environment

46
Strategic planning begins with the notion that
consumers

• are ignorant
• can be exploited
• have one need to satisfy
• have a set of needs to satisfy

47
Strategic planning begins with the notion that
consumers

• are ignorant
• can be exploited
• have one need to satisfy
• have a set of needs to satisfy

48
When Nintendo introduced the Game Cube, it was
implementing

1. product line extension
2. product development
3. market expansion
4. market penetration

49
When Nintendo introduced the Game Cube, it was
implementing

1. product line extension
2. product development
3. market expansion
4. market penetration