Question 1

A statement of the organisation's purpose-what it wants to accomplish in the larger environment -is known as:

Accepted Answer

A)  a statement of Hope. 
B)  a long-term plan. 
C)  a goal. 
D)  an objective. 
E)  a mission.

Question 2

Modern marketing departments can be organised in all of the following ways, EXCEPT which one?

Accepted Answer

A)  product management organisation 
B)  market management organisation 
C)  strategic management organisation 
D)  geographic organisation 
E)  combination organisation

Question 3

In 2004, the market research company, Roy Morgan Research discovered a new market segment which they labeled, "Neos." The defining features of this segment are that they exhibit high levels of spending, especially on luxury goods and that they have sustainable differences in the underlying attitudes and values that motivate high spending. This discovery of this segment was of generated considerable interest to marketers because it represented:

Accepted Answer

A)  a corporate asset. 
B)  a target market. 
C)  a favourable factor in the environment. 
D)  an unfavourable factor in the environment. 
E)  a new market opportunity.

Question 4

Which of the following is NOT one of the steps in strategic planning?

Accepted Answer

A)  design a business portfolio 
B)  allocate resources 
C)  set corporate objectives and goals 
D)  define a corporate mission 
E)  plan marketing and other functional level strategies

Question 5

Which of the following would NOT be considered as an example of product development?

Accepted Answer

A)  launch a range of new products that complement the company's existing products 
B)  product modifications that include new ingredients 
C)  availability of product in new sizes 
D)  encourage customers to find new uses for the product 
E)  availability of product in new packaging

Question 6

Home Depot sells everything the do- it- yourself customer could ever want. In 1998, the company had more than $30 billion in sales. Its earnings per share rose 29 per cent. Its sales were growing at about 21 per cent annually. It has opened a chain of stores called Expo Design, which sells the same type of merchandise as is found in Home Depot stores to affluent homeowners and interior decorators. Home Depot courts the professional contractors, which make up about 30 per cent of its total business. Identify the intensive growth strategies that Home Depot is using. Next, develop your own plans for how Home Depot could use each of the intensive growth strategies.

Accepted Answer

The answer of Home Depot sells everything the do- it-...

Question 7

The first step in strategic planning is to:

Accepted Answer

A)  recruit and train. 
B)  design a business portfolio. 
C)  plan marketing and other functional level strategies. 
D)  define a corporate mission. 
E)  set corporate objectives and goals.

Question 8

Kaplan and Norton, as cited in your text, have argued that every organisation should include certain key customer measures to reflect the marketing effort. Which of the following is NOT one of these customer measures?

Accepted Answer

A)  market share 
B)  customer profitability 
C)  customer acquisition 
D)  sales growth 
E)  customer retention

Question 9

One review of the literature, discussed in the text, found that there was very little evidence supporting the view that formal matrix methods, such as BCG, can be used to improve the quality of strategic decision making.

Accepted Answer

A) True 
 B)False

Question 10

The process of classifying customers into distinct groups with similar needs, characteristics, or behaviour is known as:

Accepted Answer

A)  market positioning. 
B)  market segmentation. 
C)  market development. 
D)  market aggregation. 
E)  market targeting.

Question 11

Most companies enter the market by serving a _________segment, and if this is successful they then add more_________ .

Accepted Answer

A)  niche; markets 
B)  profitable market; segments 
C)  small market; products 
D)  geographic; regional markets 
E)  single; markets

Question 12

Imagine you are the marketing manager for Herron Pharmaceuticals and have been provided with the following summary information relating to sales of Herron brands along with sales of Herron's closest competitors. Calculate market share for each of the brands and for the category as whole, for the year 2005, using the data and formulae provided and answer the following questions:
a) Calculate market share and display your results in a table suitable for presentation in a business report.
b) Comment on the advantages of using both value and volume to measure a brand's market share.
c) Comment on the usefulness of market share as a performance measure.
d) What other performance measure would you recommend for Herron?
  Formulae: Share of Market - Competitive (SOM)
There are two metrics used to measure share of market; volume and value. For reference, the formulae are provided here:
 $\begin{array} { l } 
\text { SOM (value) } ( \% ) = \frac { \text { Sales } ( \$ ) \text { for Focal Company (or Brand) } } { \text { Sales } ( \$ ) \text { for Category } } \times 100 \
\
\text { SOM (Volume) } ( \% ) = \frac {\text {\text { Units Sold for Focal Company (Or Brand } )   }} { \text { Units Sold for Category} } \times 100
\end{array}$  Explanatory Notes:
-Data refers to sales at supermarkets and convenience stores. Pharmacy sales data is not included.
-Value = $sales (millions)
-Volume= millions of dozens of packets
Source: Retail World, 2004- 2006

Accepted Answer

The answer of Imagine you are the marketing manager for...

Question 13

According to the text, more and more companies are shifting their brand management focus towards_________ .

Accepted Answer

A)  customer management 
B)  geographic management 
C)  combination management 
D)  product management 
E)  value management

Question 14

Kaplan and Norton, as discussed in your text, have argued that every organisation aims to achieve certain strategic outcomes. Which of the following is NOT one of these outcomes?

Accepted Answer

A)  delighted customers 
B)  satisfied shareholders 
C)  profits 
D)  a motivated and prepared workforce 
E)  effective processes

Question 15

One of the most widely known methods for portfolio planning is known as the Boston Consulting Group (BCF) matrix, which classifies products or SBUs according to their growth rates and market share.

Accepted Answer