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Which of the following involves adapting a firm to take advantage of opportunities in its
constantly changing environment? strategic planning
When a firm develops and maintains a strategic fit between its goals and capabilities, it is
performing ________strategic planning
Which of the following is the first step in strategic planning?define the company mission
Which of the following is NOT a step in the strategic planning process?evaluating all members
of the value chain
Which of the following provides an answer to these questions: What is our business? Who are
our customers? What do our customers value? What should our business be? a mission
statement
________ should be market oriented and defined in terms of ________.Mission statements;
customers' needs
A company's mission statement serves as a statement of ________.purpose
Which of the following is NOT a market-oriented business definition?"to sell tools and home
repair and improvement items"
All of the following are examples of product-oriented mission statements EXCEPT which one?
"We sell lifestyle and self-expression; success and status; memories, hopes, and dreams." "We
rent hotel rooms."
Which of the following is the principle objective of a market-oriented mission statement?to
satisfy basic customer needs
All of the following are accurate guidelines for a company's mission statement EXCEPT which
one? A mission statement should be narrow.
Revlon has clearly defined its "mission" of selling lifestyle and self-expression. In order for the
firm to launch its strategic plan, the mission needs to next be turned into detailed ________ that
guide each level of the company. supporting objectives
The collection of businesses and products that make up a company is called its ________.
business portfolio
Business portfolio planning involves two steps: ________ and ________.analyzing the current
business portfolio; shaping the future business portfolio
Paul Pierce is busy working with other managers evaluating the products and businesses making
up their company. Paul is engaged in ________.portfolio analysis
Which of the following can be a company division, a product line within a division, or
sometimes a single product or brand?an SBU
After management has identified the key businesses making up its company, what is the next
step in portfolio analysis? assessing the attractiveness of its SBUs
The best-known product portfolio planning method was developed by ________.the Boston
Consulting Group
Most portfolio analysis methods evaluate SBUs on two dimensions, namely ________ and
________.market or industry attractiveness; strength of the SBU's position
In the Boston Consulting Group approach, ________ provides a measure of market
attractiveness. market growth rate
In the Boston Consulting Group approach, ________ serves as a measure of company strength in
the market. relative market share
The BCG growth-share matrix classifies four types of SBUs. They are ________, ________,
________, and ________.stars; cash cows; question marks; dogs
In the BCG approach, ________ are high-share, high-growth businesses or products. They need

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heavy investment to finance rapid growth. When their growth slows down, they turn into
________.stars; cash cows
________ are low-growth, high share businesses or products. They generate a lot of cash that the
firm uses to pay its bills and support other SBUs that need investment. Cash cows
In the BCG matrix, income from ________ can be used to help finance the company's question
marks and stars. cash cows
When dealing with a(n) ________, managers must decide whether to invest in it in an attempt to
build it into a star or cash cow or whether to phase it out.question mark
The four possible strategies that can be pursued for each SBU are building, holding, ________,
and ________.harvesting; divesting
Which of the following does NOT accurately reflect a problem with the BCG matrix approach?
It focuses on planning for the future.
Unlike strategic-planning efforts of the past, which were conducted primarily by senior
managers, today's strategic planning is ________.decentralized
While a valuable planning tool, the BCG matrix is problematic in that it focuses on ________.
the present instead of the future
According to your text, which department in a company carries the primary responsibility for
achieving profitable growth?marketing
Which of the following is a useful tool for identifying growth opportunities?the product/market
expansion grid
Mountain Home Farms is now using the product/market expansion grid to develop strategies.
The owners of the company have most likely found the grid to be quite useful for identifying
________.growth opportunities
Making more sales to current customers without changing a firm's products is ________.market
penetration
A common practice among marketers is to identify and develop new markets for their existing
products. This practice is called ________.market development
If Under Armour, the successful maker of moisture-wicking shirts and shorts, considered
introducing a line of Under Armour fitness equipment, the company would be considering
________.diversification
Which of the following entails reducing the business portfolio by eliminating products that no
longer fit the company's overall strategy?downsizing
Which of the following is NOT a reason that a firm might want to abandon products or markets?
The economic environment is showing signs of recovery.
Each department in a company that carries out value-creating activities can be thought of as a
link in the company's ________.value chain
Multinationals like Honda Motor Co. and Walmart stores have designed programs to work
closely with their suppliers to help them reduce their costs and improve quality. This illustrates
the importance of an efficient ________.value delivery network
Which of the following is the marketing logic by which a company hopes to achieve profitable
customer relationships?marketing strategy
Lucy Ortiz is preparing a PowerPoint presentation of the marketing process to show at a sales
meeting. ________ should appear in the center of her diagram depicting marketing strategies and
the marketing mix.Customer value and relationships
A sound marketing strategy begins with which of the following?customer analysis
Your firm is attempting to divide up the total market to determine the best segments it can serve.

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Which is the correct order of doing so?market segmentation then market targeting
The process of customer-driven marketing involves which of the following?market
segmentation; market targeting; differentiation; positioning
Which of the following is the process of dividing a market into distinct groups of buyers with
different needs, characteristics, or behaviors?market segmentation
Your new employer has asked you, as a new marketing graduate, to develop a group of potential
customers who might respond in a similar way to a given set of marketing efforts. You have been
asked to develop a(n) ________.market segment
Which of the following involves evaluating each market segment's attractiveness and selecting
one or more segments to enter?market targeting
Favorite Memories specializes in serving gift shoppers that major competitors overlook and
ignore. Which of the following best describes Favorite Memories?market nicher
Which of the following is the place a product occupies in the consumer's mind relative to
competition?position
Effective positioning begins with ________ the company's marketing offer in order to give
consumers more perceived value. differentiating
Which of the four Ps describes the goods-and-services combination the company offers to the
target market?product
In the four Ps of the marketing mix, design, packaging, services, and variety all fall under the
category of ________.product
Today the four Ps are compared to the four Cs. Product and place are called ________ and
________, respectively.customer solution; convenience
In the marketing management functions, a SWOT analysis should ________ a marketing plan.
precede
In a basic SWOT analysis the "T" stands for ________. threats
In a basic SWOT analysis, the "S" stands for ________. strengths
In SWOT analysis, which of the following would be considered a strength?internal resources
In SWOT analysis, which of the following refers to factors in the external environment?
opportunities
The main section of the marketing plan presents a detailed ________ analysis of the current
marketing situation. SWOT
A marketing plan begins with a(n) ________, which quickly overviews goals and
recommendations.executive summary
According to the textbook, your boss is most likely referring to ________ when she mentions
"doing things right."implementation
IBM has its sales and marketing people assigned to markets in specific countries, regions, and
districts. This is an example of which type of marketing organization?geographic
Which of the following is the most common approach to marketing organization?functional
Berman Electric, a chain of 18 appliance stores, has a marketing organization in which
specialists head different marketing activities. What is this type of organization
called?functional
Modern marketing departments are arranged in the following ways EXCEPT which one?
strategic management organization
The ________ organizational system's main advantage is that the company is organized around
the needs of specific market segments. market management
An increasingly large number of firms are changing their organizational focus from ________ to

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________. brand management; customer management
Evaluating the results of marketing strategies and plans and taking corrective action to ensure
that objectives are attained is called ________. marketing control
The marketing control process entails the following steps in order: setting goals, ________,
evaluating performance, and ________. measuring performance; taking corrective action
Which of the following is NOT a step in the marketing control process? defining the mission
Ensuring that the company achieves the sales, profits, and other goals set out in its annual
marketing plan is the purpose of ________. operating control
Which of the following involves looking at whether a company's basic strategies are well
matched to its opportunities?strategic control
Which of the following measures the profits generated by investments in marketing activities?
marketing ROI
Which of the following would NOT be useful in determining marketing ROI?SWOT analysis
Monsanto operates in many businesses, including pharmaceuticals and food products. The
company defines its ________ as creating "abundant food and a healthy environment."mission
When the makers of a ballpoint pen state they are in the communication equipment business,
they are defining their mission too ________. broadly
Kimball Gardens is a company that operates as two distinct businesses: one that sells lawn and
garden products and one that markets booklets. Each business is called a ________.strategic
business unit (SBU)
Starbucks has introduced a debit card that lets customers prepay for coffee and snacks. This
effort by Starbucks management is an example of ________.market penetration
Walmart, the world's largest retailer, has successfully launched its stores in Mexico, Canada, the
U.K., Germany, and other nations. This is an example of how Walmart is pursuing ________ as
a growth strategy. geographic market development
Acme, Inc. has slightly modified the production processes of its widgets and gadgets in order to
tap into the Eastern European market. Acme is likely following a ________ strategy.market
development
Starbucks Coffee has recently begun selling and playing compilation CDs and is supporting its
own XM satellite radio station. This represents which strategy for growth?diversification
Walmart relies on sound relationships with its low-cost suppliers in order to pass low prices on to
consumers. Thus, forming a ________ is crucial to Walmart's success.value delivery network
For Hyundai Corporation, customers who care about the price of a car and its operating economy
make up one ________. market segment
Paul Pendergraff has identified a group of potential customers who seem to respond in a similar
way to a series of magazine and radio advertisements for his company's product. Paul has
identified a(n) ________.market segment
Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing
else." Statements such as these reflect a firm's ________. positioning
Harris, the marketing manager at a small sports retail chain, has conducted a marketing analysis.
He has investigated the company's internal resources and situational factors, as well as factors
and trends in the competitive sports retail chain market. Which of the following has Harris
completed? a SWOT analysis
Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to
hunt, hike, and bike ride. Its long-term plans include the development of lenses that, in addition
to protecting users from UV rays, will also have effective water-sheeting action to reduce lens

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spotting. This new feature will be valuable to people who fish. In terms of a SWOT analysis, the
company believes it can use the ________ of its reputation as a sunglass manufacturer for a
specialized market in combination with its current manufacturing facilities and labor force to
enter this new market. strengths
Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to
hunt, hike, and bike ride. Its long-term plans include the development of lenses that, in addition
to protecting users from UV rays, will also have effective water-sheeting action to reduce lens
spotting. This new feature will be valuable to people who fish. Serengeti has determined that
fishing is one of the fastest growing sports in the United States. In terms of a SWOT analysis,
Serengeti has recognized a market ________. opportunity
Emerson Studios, a chain of 25 portrait stores in five states, has organized its marketing
organization into groups headed by a sales manager, an advertising manager, and a customer-
service manager. What type of organization is this?functional
The current mission statement of the Girl Scouts of America is to build "girls of courage,
confidence, and character, who make the world a better place." The organization's former
mission statement had read "to prepare young girls for motherhood and wifely duties." This
change reflects the guideline that mission statements should be ________. market-oriented
The pharmaceuticals division of Omni Healthcare holds low market share in a high-growth
market. In order to increase market share, managers would be most likely to decide which of the
following?use money from a cash cow to promote the pharmaceuticals division
Fence Patrol has developed an entirely new mounting system for chain link fences. Although it is
a local company, through the acquisition of a distributor it now has the ability to market its
products nationwide. Fence Patrol is most likely following a ________ strategy.market
development
Of the following, it is most important for marketers to develop ________ for their products.
unique market positions
Which of the following most accurately identifies a difference between a weakness and a threat
in SWOT analysis?A company is more able to change a weakness than a threat.
Fun-Spot's mission is ________.market-oriented
Into which quadrant of the BCG matrix does Fun-Spot fall? star
Ron and Gail plan to lower prices in an effort to encourage customers to stay longer, visit more
often, and spend more money during each visit. What type of strategy are Ron and Gail
planning?market penetration
Gail and Ron strive to provide new offerings and entertainment options for their visitors. What
type of strategy is this?product development
Which of the following would be classified as an opportunity in a SWOT analysis of Fun-Spot?
A new luxury hotel is being constructed in the area, with the aim of luring more high-
spending families on vacation.