_____ is closely related to corporate social responsibility

Spring 2020

MKT455 Marketing Strategies

Midterm Exam

Your Name __________________________

Your Score ________________ out of 10 points available

Chapter 01

Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies

1. Which of the following is a component of strategy that involves detailing the desired levels of accomplishment on one or more performance dimensions over specified time periods for the organization as a whole? A. Scope of an organization B. Resource deployments C. Identifying a sustainable competitive advantage D. Goals and objectives

2. Decisions about the organization’s scope and resource deployments across its divisions or businesses are the primary focus of _____ strategy. A. business B. corporate C. marketing D. functional

3. In which of the following levels of strategy is sustainable competitive advantage a major component? A. Functional strategy B. Corporate strategy C. Marketing strategy D. Business strategy

4. Which of the following falls within the scope of corporate strategy? A. Target market definition B. Vertical integration C. Branding policies D. Line extension

5. A distinct subset of people with similar needs, circumstances, and characteristics that lead them to respond in a similar way to a particular product or service offering is known as a _____. A. market segment B. set-aside C. penetrated market D. market mix

6. Which of the following contents of a marketing plan specifically presents the expected financial payoff from the plan? A. Objectives B. Projected profit-and-loss statement C. Current situation and trends D. Executive summary

7. Which of the following contents of a marketing plan specifies the goals to be accomplished in terms of sales volume, market share, and profit? A. Key issues B. Marketing strategy C. Objectives D. Action plans

Chapter 02 Corporate Strategy Decisions and Their Marketing Implications

8. Which of the following strategy components address issues such as the time frame in which each target should be attained and the target level of performance to be achieved on each dimension?

A. Scope and mission B. Development strategy C. Objectives D. Sources of synergy

9. The principles of _____ involve meeting humanity’s needs without harming future generations. A. sustainability B. reversibility C. specificity D. adaptability

10. Which of the following indexes is used to measure the profitability criterion? A. Percentage change in sales B. Return on net assets C. Price/earnings ratio D. Percentage cost savings from new processes

11. Which of the following performance criteria is assessed using the measures of market share, brand awareness, and brand preference? A. Profitability B. Contribution to owners C. Competitive strength D. Growth

12. Which of the following strategies is most likely to be used by a company that is trying to increase its market share for its current products in the current market? A. Diversification B. Market penetration

C. Market development D. Product development

13. A corporate growth strategy that focuses on developing new products for current markets is called: A. a market penetration strategy. B. a product development strategy. C. a market development strategy. D. a product positioning strategy.

14. Cash cows are:

A. businesses with a high relative share of low-growth markets. B. low-share businesses in low-growth markets. C. market leaders in a high-growth industry. D. businesses in high-growth industries with low relative market shares.

15. Low-share businesses in low-growth markets are called _____ because although they may throw off some cash, they typically generate low profits, or losses. A. stars B. question marks C. cash cows D. dogs

16. Which of the following provides a basis for comparing the economic returns to be gained from investing in different businesses pursuing different strategies or from alternative strategies that might be adopted by a given business unit? A. Value-based planning B. BCG growth matrix C. Corporate mission statement D. Backward integration

Chapter 03 Business Strategies and Their Marketing Implications
17. Strategic business units refer to: A. a set of managers in a firm that deal with market audits.

B. in-house departments of a firm that are engaged in strategic planning. C. components of a firm engaged in multiple industries or businesses. D. exclusive units of businesses that perform SWOT analyses for the company.

18. Which of the following is an ideal characteristic of SBUs?

A. Control over those factors necessary for successful performance

B. A common set of product-markets

C. Non-accountability for their own profits

D. A heterogenous set of markets to serve with a limited number of related technologies

19. No two SBUs within a firm compete for the same customers with similar products. Which SBU characteristic is being emphasized here? A. A heterogeneous set of markets

B. Responsibility for their own profitability

C. Control over factors necessary for successful performance D. A unique set of product-markets

20. A(n) _____ strategy tries to protect its domain by offering lower prices, higher quality, or better service than competitors. A. prospector B. analyzer

C. defender

D. reactor

21. In a(n) _____ strategy, a business attempts to maintain a strong position in its core product-market but also seeks to expand into new—usually closely related—product-markets.

A. reactor

B. analyzer

C. prospector

D. defender

22. _____ businesses usually operate in broad, dynamic domains where neither technology nor customer segments are well established. A. Prospector B. Differentiated defender C. Low-cost defender D. Analyzer

23. Which of the following businesses tends to operate in a stable domain where both the product technology and the customer segments are mature?

A. Prospector B. Reactor C. Low-cost defender D. Analyzer

24. Identify the performance dimension that is commonly measured in terms of sales growth relative to competitors or changes in market share.

A. Adaptability

B. Effectiveness

C. Synergy

D. Efficiency

25. Which performance dimension is measured in terms of profitability as a percent of sales and return on investment?

A. Synergy B. Effectiveness C. Efficiency D. Adaptability

26. Which of the following environmental factors is favorable to a prospector strategy? A. An industry in late growth stage B. An established customer segment

C. A large number of competitors

D. An industry in early growth stage

27. An SBU has no outstanding strength in R&D or product engineering in _____ businesses.

A. prospector

B. analyzer

C. differentiated defender

D. low-cost defender

28. A _____ policy relates to the breadth or diversity of product lines, their level of technical sophistication, and the target level of product quality relative to competitors.

A. pricing

B. product

C. promotion

D. distribution

Chapter 04 Understanding Market Opportunities

29. A(n) _____ is defined as being composed of individuals and organizations who are interested in and willing to buy a good or service to obtain benefits that will satisfy a particular need. A. sector B. channel C. posse D. market

30. A group of firms that offer a product or class of products that are similar and are close substitutes for one another is referred to as a(n) _____.

A. sector B. channel C. industry D. concern

31. Identify the demographic trend that influences market attractiveness. A. Fitness and nutrition B. Immigration increase C. Corporate social responsibility D. Economic recession

32. Which of the following represents a sociocultural trend? A. Fitness and nutrition patterns

B. Immigration increase C. Economic recession D. Growing middle class

33. Which of the following is a factor of the economic environment?

A. Fitness and nutrition patterns

B. Corporate social responsibility

C. Rise and fall in interest rates

D. Aging population

34. Which of the following is true of overregulation?

A. It protects inefficiencies. B. It does not promote trade barriers. C. It avoids inflationary pressures. D. It allows easy entry for new competitors.

35. Marketing services have been made easy by advertisements on the web or via e-mail, social networks, and online stores. Which macroenvironmental trend does this signify?

A. Natural environment

B. Economic environment

C. Technological environment

D. Regulatory environment

36. A rise in the production of hybrid gas-electric vehicles, high-efficiency LED bulbs, phosphate-free detergents, and recycled paper indicates the impact of which of the following macroenvironmental forces? A. The natural environment B. The sociocultural environment

C. The regulatory environment

D. The demographic environment

37. Which of the following forces increases industry attractiveness?

A. Higher threat of substitute products

B. Lesser threat of new entrants

C. Greater bargaining power for suppliers

D. Lower buying power for customers

38. According to Porter, rivalry among competitors is greater:

A. when low investment intensity exists in businesses. B. when dominant firms exist in an industry. C. when low switching costs exist for the buyers. D. when strong product differentiation exists among current players.

39. The threat of new entrants to an industry is less: A. when the economies of scale are strong. B. when the industry has low capital requirements.

C. when little product differentiation exists among current players. D. when it is particularly easy to gain distribution.

40. Which of the following is considered a critical success factor in retailing? A. Price B. Location C. Promotion D. Product

41. A(n) _____ is used to assess the impact and the timing of an environmental event in a firm.

A. BCG matrix

B. affinity diagram

C. activity network diagram

D. opportunity/threat matrix

Chapter 05 Measuring Market Opportunities: Forecasting and Market Knowledge

42. In a _____ approach, a central person or persons take the responsibility for forecasting and prepare an overall sales forecast. A. top-down

B. linear

C. nonlinear

D. bottom-up

43. Which of the following approaches is used to prepare a sales forecast in decentralized firms?

A. A top-down approach

B. A linear approach

C. A non-linear approach

D. A bottom-up approach

44. Which of the following methods is best suited to forecast sales of new products?

A. Statistical method

B. Survey

C. Observation

D. Analogy

45. Which of the following adopters forms the smallest group in the diffusion of innovation curve?

A. Innovators

B. Laggards

C. Early adopters

D. Late majority

46. A(n) _____ refers to the margins that a buyer generates over a lifetime less the cost of serving the customer.

A. product lifetime value

B. inventory index

C. customer lifetime value

D. chain ratio

47. The design, collection, analysis, and reporting of study intended to gather data pertinent to a particular marketing challenge or situation is referred to as _____. A. benchmarking B. marketing research C. marketing myopia D. marketing mix

Essay Questions

Please answer 1) or 2) from Chapter One (no extra points will be given if you answer both):

1) What is the primary focus of marketing-level strategies? What critical issues do they focus on?

2) What is a marketing plan? Explain its importance.

Please answer 3) or 4) from Chapter Two (no extra points will be given if you answer both):

3) How can customer equity be used to estimate the value of alternative marketing actions?

4) What are the various sources of synergy for a firm?

Please answer 5) or 6) from Chapter Three (no extra points will be given if you answer both):

5) Discuss the appropriate conditions for a low-cost defender strategy.

6) Briefly discuss pricing and distribution policies.

Please answer 7) or 8) from Chapter Four (no extra points will be given if you answer both):

7) Briefly describe the sociocultural environment and the economic environment of a business’s macroenvironment.

8) Explain the significance of critical success factors.

Please answer 9) or 10) from Chapter Five (no extra points will be given if you answer both):

9) Briefly explain the adoption process and the rate of adoption.

10) What are the major issues to be considered while designing marketing databases?

END