CH 2

Question 1

An action-oriented document or playbook that guides the analysis, implementation, and control of the firm’s marketing strategy.

Answer 1

Marketing plan

Question 2

Consider findings from a recent SWOT analysis performed by Hannah’s flower shop. Which finding represents a threat?

-Hannah has a good business relationship with local catering companies.

-Hannah has a hard time finding good employees after the summer staff goes back to school.

-A new funeral home has opened up

-The summer drought has produced fewer flowers.

Answer 2

The summer drought has produced fewer flowers.

Question 3

What two elements are combined on the BCG matrix to produce its four unique product categories?

Answer 3

market growth and relative market share

Question 4

Selling domestically produced products to foreign markets

Answer 4

Exporting

Question 5

An arrangement in which a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company’s market, is known as

Answer 5

Joint venture

Question 6

The process of thoughtfully defining a firm’s objectives and developing a method for achieving those objectives.

Answer 6

Strategic Planning

Question 7

For a fee, Gena can open a Subway shop in her hometown of Munich. The parent company has agreed to let Gena use its company name and will give her marketing and operational support. What type of arrangement is this?

Answer 7

Franchising

Question 8

Which method of entering a foreign market carries with it the most risk?

exporting
direct ownership
licensing
contract manufacturing
joint venture

Answer 8

direct ownership

Question 9

Which statement describes a market penetration strategy?
The Fishbowl is now adding a line of aquarium accessories to sell to its existing customers.

Gorgeous Gems is selling its new line of necklaces to a new market overseas.

Toys for Guys sells its toys in Florida, but now it wants to sell them all over the United States.

Rita’s Italian Restaurant is thinking of how it can sell more of its current menu to the regular customers that dine in her restaurant at lunchtime.

Fancy Lighting wants to sell its existing products in new retail outlets.

Answer 9

Rita’s Italian Restaurant is thinking of how it can sell more of its current menu to the regular customers that dine in her restaurant at lunchtime.

Question 10

According to the BCG matrix, products that are typically new to the market and require significant marketing investment in promotion, product management, and distribution are classified as

Answer 10

Question Marks

Question 11

Clarifies what a company hopes to achieve with its content.

Answer 11

Mission Statement

Question 12

BCG Matrix

Answer 12

-Stars
-Cash cows
-Question marks
-Dogs

Question 13

High market growth/High market share

Answer 13

Stars

Question 14

High market growth/Low market share

Answer 14

Question marks

Question 14

Low market growth/High market share

Answer 14

Cash cows

Question 15

Low market growth/ Low market share

Answer 15

Dogs

Question 16

SWOT

Answer 16

-Strengths (Internal)
-Weaknesses(Internal)
-Opportunities(External)
-Threats(External)

Question 17

Practice of dividing your target market into approachable groups
Ex: Victoria secret and their teenage targeting brand PINK

Answer 17

Market segmentation

Question 18

a particular group of consumers at which a product or service is aimed.

Ex: McDonalds

Answer 18

Target market

Question 19

A measure of how much a product or service is being used by customers compared to the total estimated market for that product or service.

Ex: Pizza Hut trying to get existing consumers to buy one more pizza each month.

Answer 19

Market penetration

Question 20

the complete process of taking a product to market
Ex: Dr Pepper Ten, a 10-calorie soft drink

Answer 20

Product development

Question 21

A strategic step taken by a company to develop the existing market rather than looking for a new market.
Ex: a coffee company that only sells its products in the US could expand to Europe

Answer 21

Market development

Question 22

a way of expanding your business into new markets, products, or services that are different from your core offerings.
Ex: Disney owning tv channels like ABC and ESPN

Answer 22

Diversification

Question 23

What two elements are combined on the BCG matrix to produce its four unique product categories?

-market growth and relative market share
-market growth and number of competitors
-market size and product demand
-relative market share and number of competitors
-supply and demand

Answer 23

market growth and relative market share