Chapter 2
1) Which of the following criteria does the Boston Consulting Group approach use to provide a
measure of a company's strength in the market?
A) relative market share
B) return on marketing investment
C) market sentiment
D) market growth rate
E) annual profit
Answer: A
2) In the BCG growth-share matrix, stars refer to products or businesses with a ________.
A) low market share in a niche market
B) low relative market share in a market with high growth prospects
C) greater market share than all their competitors combined in a saturated market
D) high market share in a market with a high growth rate
E) high market share in a market that is set to shrink significantly
Answer: D
3) In the BCG growth-share matrix, question marks refer to products or businesses with a
________.
A) low market share in a niche market
B) low market share in a market with high growth prospects
C) greater market share than all their competitors combined in a saturated market
D) high market share in a market with a high growth rate
E) low market share in a market that is set to shrink significantly
Answer: B
4) In the BCG matrix, ________ refer to low-growth, high-share businesses or products.
A) stars
B) cash cows
C) question marks
D) dogs
E) heroes
Answer: B
5) In the BCG matrix, ________ are low-share businesses and products in low-growth markets.
A) dogs
B) cash cows
C) black holes
D) stars
E) question marks
Answer: A
6) Both product development strategies and diversification strategies involve ________.
A) selling a company's current products
B) selling in a company's current market
C) selling in new as well as existing markets
D) developing a new product
E) leaving the current market
Answer: D
7) ________ refers to reducing the business portfolio by abandoning products that no longer fit
the company's overall strategy.
A) Market segmentation
B) Vertical integration
C) Product line extension
D) Downsizing
E) Diversification
Answer: D
8) Which of the following best describes the value chain of a company?
A) the collection of businesses and products that make up the company
B) profits earned by the cash cows and stars in the company's business portfolio
C) touchpoints at which a company or brand interacts with its consumers
D) the series of departments that design, produce, market, deliver, and support the company's
products
E) a network made up of the company, its suppliers, and its distributors working together to
deliver customer value
Answer: D
9) A ________ is made up of a company, its suppliers, its distributors, and its customers who
partner with each other to improve the performance of the entire system.
A) value chain
B) shareholder network
C) business portfolio
D) value delivery network
E) growth-share matrix
Answer: D
10) Which of the following best describes product positioning?
A) differentiating a market offering to create superior customer value
B) arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers
C) identifying consumer needs and creating a product to meet those needs
D) evaluating each market segment's attractiveness and selecting one or more segments to enter
E) dividing a market into distinct groups of buyers who have different needs, characteristics, or
behaviors
Answer: B
11) A consumer group that responds in a similar way to a given set of marketing efforts is the
company's ________.
A) value chain
B) market segment
C) financial public
D) business portfolio
E) market position
Answer: B
12) Which of the following best describes market segmentation?
A) differentiating a market offering to create superior customer value
B) identifying consumer needs and creating a product to meet those needs
C) arranging for a product to occupy a clear, distinctive, and desirable place relative to
competing products in the minds of target consumers
D) evaluating each market segment's attractiveness and selecting one or more segments to enter
E) dividing a market into distinct groups of buyers who have different needs, characteristics, or
behaviors
Answer: E
13) Which component of the marketing mix refers to the goods-and-services combination a
company offers to its target market?
A) promotion
B) product
C) price
D) place
E) position
Answer: B
14) To which of the following elements of the marketing mix do design, packaging, services, and
features belong?
A) product
B) price
C) promotion
D) place
E) people
Answer: A
15) Which of the following will most likely be included in the "place" component of a company's
marketing mix?
A) packaging
B) sales promotion
C) brand name
D) inventory
E) discounts
Answer: D
16) Which of the following will most likely be included in the "price" component of a company's
marketing mix?
A) packaging
B) sales promotion
C) brand name
D) inventory
E) discounts
Answer: E
17) When viewing the market from a buyer's point of view, "communication" corresponds to the
________ component of the marketing mix.
A) people
B) price
C) product
D) promotion
E) place
Answer: D
18) When viewing the market from a buyer's point of view, "convenience" corresponds to the
________ component of the marketing mix.
A) product
B) price
C) promotion
D) place
E) people
Answer: D
19) In a SWOT analysis, which of the following would most likely be considered a strength of a
company?
A) a favorable economic climate that encourages consumption
B) the exit of a competitor from the market
C) higher prices of the company's products resulting from inflation
D) an increase in consumer interest in the company's products
E) an improvement in the company's production technology
Answer: E
20) In a SWOT analysis, ________ refer to favorable factors or trends in the external
environment that a company may be able to exploit to its advantage.
A) strengths
B) strategies
C) threats
D) opportunities
E) controls
Answer: D
21) In a SWOT analysis, ________ refer to unfavorable external factors or trends that may
present challenges to performance.
A) threats
B) strategies
C) weaknesses
D) opportunities
E) strengths
Answer: A
22) The process that turns marketing plans into marketing actions to accomplish strategic
marketing objectives is called marketing
A) analysis
B) implementation
C) control
D) planning
E) design
Answer: B
23) Evaluating the results of marketing strategies and plans and taking corrective action to ensure
that the objectives are attained is called ________.
A) marketing control
B) marketing implementation
C) market planning
D) marketing development
E) market targeting
Answer: A
24) Which of the following criteria does the Boston Consulting Group approach use to provide a
measure of a company's strength in the market?
A) relative market share
B) return on marketing investment
C) market sentiment
D) market growth rate
E) annual profit
Answer: A
25) ________ involves looking at whether a company's basic business models are well matched
to its opportunities.
A) Operating control
B) Task control
C) Agency control
D) Strategic control
E) Market control
Answer: D
26) ________ refers to the process of evaluating each market segment's attractiveness and
selecting one or more segments to enter.
A) Market divesting
B) Market diversification
C) Market targeting
D) Market mixing
E) Market positioning
Answer: C
