Chapter 2 ("Strategic Planning") quiz Flashcards Preview

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Flashcards in Chapter 2 ("Strategic Planning") quiz Deck (18)
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2. The focus of a value proposition is ________.

what customers want
the benefits and profitability of the offering
the firm’s marketing mix
competition
the features of the product or service offering

what customer want

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3. What serves as an effective guide for developing a company’s strategies for a particular target market?

profit and loss statements
the value proposition
government regulations
the number of competitors
the marketing mix

value proposition

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4. Which of the following is the best statement of a value proposition for a prospective college student?

Our institution offers solid academic programs with affordable tuition.

Our institution offers a lot of extracurricular activities while also making your educational training the best in many majors.

Our institution offers a lot of chances for interaction with professors, contacts with notable alumni, and great job placement rates.

Our institution seeks the best students and provides a top-notch environment for them to grow.

The best value proposition is dependent on what benefits the student is seeking.

The best value proposition is dependent on what benefits the student is seeking.

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5. Large firms may have different divisions, each focusing on a business or product line within the organization. These are called ________.

corporations
stock keeping units
strategic business units
departmental units
functional units

strategic business units (SBUs)

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6. Strategies and actions implemented at the corporate, business, and functional levels must be ________ to help an organization achieve its objectives.

independent
consistent
focused on short-term objectives
serving the same target market
all of the above

consistent

Strategies at the corporate, business, and functional levels must work together.

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8. In beginning a situation analysis, a SWOT analysis is often conducted. Which of the following is correct in naming an element within SWOT and its environmental focus?

strategies–internal
weaknesses–external
opportunities–external
threats–internal
tactics–external

opportunities–external

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9. Despite its strong brand awareness, which change did PepsiCo implement in 2008, but customers’ mixed reviews forced PepsiCo to return to its previous strategy?


the pricing of Pepsi-Cola
the advertisements promoting Gatorade
the logo of the company
the distribution of Frito-Lay brands
the packaging of Tropicana

the packaging of Tropicana

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10. Porter’s five forces model is most useful in assessing which external environment?


the competitive environment
the technological environment
the political and legal environment
the economic environment
the social and cultural environment

the competitive environment

Porter’s five forces model includes existing and potential entrants in the marketplace, bargaining power of suppliers and buyers, and substitute products.

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11. When the Campbell Soup Company offers coupons and recipes to customers who have purchased their products, what product/market entry strategy are they pursuing?


product development
market development
product diversification
market penetration
market diversification

market penetration

Market penetration involves getting existing customers to buy more of an existing offering.

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12. What strategy is marketing implementing when they attempt to get existing customers to buy new product offerings?


product development
market development
product diversification
market penetration
market diversification

product development

Product development is when companies attempt to get existing customers to buy new product offerings.

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13. Offerings from a U.S. firm to new, rapidly emerging markets such as Russia, China, and India would represent which type of growth strategy?


market development
product development
product diversification
market penetration
market diversification

market development

Market development is when companies attempt to attract new customers to buy existing product offerings.

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14. Which form of market development entry strategies, which is popular with service industries, allows a local partner to benefit from advertising and brand recognition without having to commit to actually producing products?

franchising
contract manufacturing
licensing
joint ventures
direct investment

franchising

This is more committal than mere licensing.

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15. Which form of market entry offers the challenge of providing the most control, but incurring the most risk?

franchising
contract manufacturing
licensing
joint ventures
direct investment

direct investment

This form of entry involves more risk, but greater control.

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16. Although they are only tools to be used by marketers, what are two of the most widely used portfolio planning approaches?


the marketing mix and the SBU model
the marketing mix and the SWOT analysis
the BCG matrix and the GE approach
the BCG matrix and the SBU matrixf
the GE approach and the SWOT analysis

the BCG matrix and the GE approach

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17. Cameron Industries are fortunate in that they have identified a profitable select target market with high market growth potential for their Domine Dominoes game in which they have a dominant share with little or no competitive challengers. Under the BCG matrix, their Domine Dominoes offering would most likely be a ________.


cash cow
star
question mark
problem child
dog

star

The example represents a high market share product in a high growth market in the BCG matrix.

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18. Under the BCG matrix, what is the term used to refer to SBUs who have a high market growth rate but a low relative market share?

cash cow
star
strategic business units
problem child
dog

problem child

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19. What dimensions does the GE approach use in portfolio analysis?


relative market share and market growth rate
business strength and industry attractiveness
objectives versus situations
profits versus losses
relative market share and industry attractiveness

business strength and industry attractiveness

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20. What would be a recommended strategy if the GE approach of portfolio resulted in a yellow light?

invest to increase market share
take advantage of industry attractiveness
divest in the business and reduce market share
do what competitors are doing
proceed with caution depending on industry and company strengths

proceed with caution depending on industry and company strengths