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. 1.dogs 2.cash cows 3.value products 4.stars

3. Products that produce profit and market share with very little effort are referred to as ________ in the BCG matrix. 1.dogs 2.cash cows 3.value products 4.stars

4. A growth strategy that emphasizes both new products and new markets is called diversification. 1.True2.False

5. A growth strategy that emphasizes both new products and new markets is called diversification. 1.True2.False

6. A competitive advantage is 1.a superior capability of a company in comparison to its direct competitors. 2.a growth strategy designed to increase market share. 3.the ability of the company to outperform its competition. 4.a growth strategy to increase profitability.

7. A competitive advantage is 1.a superior capability of a company in comparison to its direct competitors. 2.a growth strategy designed to increase market share. 3.the ability of the company to outperform its competition. 4.a growth strategy to increase profitability.

8. SWOT refers to the analysis of a company’s sales, workforce, ownership, and talent. 1.True2.False

9. SWOT refers to the analysis of a company’s sales, workforce, ownership, and talent. 1.True2.False

10. When managers compare a marketing planning objective to an actual occurrence, they are implementing control aspects of the plan. 1.True2.False

11. When managers compare a marketing planning objective to an actual occurrence, they are implementing control aspects of the plan. 1.True2.False

12. If Chappy Chip Company is developing a brand new flavor of baked potato chips, they are implementing a ___________ plan. 1.market development 2.product development 3.strategic 4.diversification

13. If Chappy Chip Company is developing a brand new flavor of baked potato chips, they are implementing a ___________ plan. 1.market development 2.product development 3.strategic 4.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. 1.True2.False

17. Companies that introduce new products into new markets are penetrating that market. 1.True2.False

18. A patent will always give a company a slight competitive advantage. 1.True2.False

19. A patent will always give a company a slight competitive advantage. 1.True2.False

20. A company creates a product portfolio to reduce the risks of doing business. 1.True2.False

21. A company creates a product portfolio to reduce the risks of doing business. 1.True2.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 organization’s __________. 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 organization’s __________. 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 _________. 1.oligopoly 2.pure competition 3.monopolistic competition 4.monopoly

25. The for-profit business schools like the University of Phoenix most likely compete in a structure defined as _________. 1.oligopoly 2.pure competition 3.monopolistic competition 4.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. 1.True2.False

31. A company will be more successful in its marketing planning if it has a knowledge of changes in the marketing environment. 1.True2.False

32. The more a company knows about the weaknesses in a competitor’s marketing strategy, the better able it will be in exploiting the weakness to gain competitive advantage. 1.True2.False

33. The more a company knows about the weaknesses in a competitor’s marketing strategy, the better able it will be in exploiting the weakness to gain competitive advantage. 1.True2.False

34. Discovering threats to marketing success, like Kodak’s finding out about Sony’s new digital camera technology, forces companies to rethink their strategic planning. 1.True2.False

35. Discovering threats to marketing success, like Kodak’s finding out about Sony’s new digital camera technology, forces companies to rethink their strategic planning. 1.True2.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. 1.True2.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. 1.True2.False

38. Objectives are the part of a marketing plan that define marketing opportunities. 1.True2.False

39. Objectives are the part of a marketing plan that define marketing opportunities. 1.True2.False

40. Strategic planning focuses on one product in the firm’s product mix. 1.True2.False

41. Strategic planning focuses on one product in the firm’s product mix. 1.True2.False

42. Evaluation of a marketing plan should be an ongoing process. 1.True2.False

43. Evaluation of a marketing plan should be an ongoing process. 1.True2.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: 1.are ignorant 2.can be exploited 3.have one need to satisfy 4.have a set of needs to satisfy

47. Strategic planning begins with the notion that consumers: 1.are ignorant 2.can be exploited 3.have one need to satisfy 4.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