110) Briefly discuss how marketers measure return on marketing investment, explaining why

this figure can be difficult to assess.

Answer: Marketing ROI (return on investment) is the net return from a marketing investment
divided by the costs of the marketing investment. In other words, ROI is a measure of the profits
generated by investments in a marketing activity. Marketing ROI can be difficult to assess
because the benefits of marketing are not always easily translated in dollar amounts. However,
marketing ROI can be assessed in terms of brand awareness, sales, or market share. Some
companies are now using marketing dashboards, which are single displays showing several sets
of marketing performance measures. And beyond standard performance measures, many
marketers are using customer-centered measures such as customer acquisition, retention, and
lifetime value.
Diff: 3 Page Ref: 58
AACSB: Analytic Skills
Skill: Application
Objective: 2-5

111) Starbucks has an annual plan in place to deal with the company's current SBUs and their
operations. However, as a growth-oriented firm, Starbucks is interested in both domestic and
international markets. This requires Starbucks to constantly monitor the environment and adapt
to the opportunities with which it is presented. To best take advantage of its constantly changing
environment, Starbucks should do which of the following?
A) write a mission statement
B) follow supporting objectives
C) conduct strategic planning
D) conduct profit analysis
E) shorten its value delivery network
Answer: C
Diff: 2 Page Ref: 38
AACSB: Analytic Skills
Skill: Application
Objective: 2-1

112) Monsanto operates in many businesses, including pharmaceuticals and food products. The
company defines its ________ as creating "abundant food and a healthy environment."
A) strategy
B) marketing development
C) business portfolio
D) value-delivery network
E) mission
Answer: E
Diff: 2 Page Ref: 39
AACSB: Reflective Thinking
Skill: Application
Objective: 2-1

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
113) The current mission statement of the Girl Scouts of America reads "where girls grow
strong." 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 ________.
A) realistic
B) motivating
C) narrow
D) market-oriented
E) specific
Answer: D
Diff: 3 Page Ref: 39
AACSB: Reflective Thinking
Skill: Application
Objective: 2-1

114) A vendor for Ford Motor Company received the following message from one of Ford's
marketing managers: "As we move forward during the 21st century, Ford is committed to
building profitable customer relationships by creating environmentally better cars and getting
them to market faster at lower costs." The marketing manager is referring to Ford's ________.
A) marketing strategy
B) marketing mix
C) business portfolio
D) mission statement
E) business objectives
Answer: D
Diff: 2 Page Ref: 39
AACSB: Reflective Thinking
Skill: Application
Objective: 2-1

115) When the makers of a ballpoint pen state they are in the communication equipment
business, they are defining their mission too ________.
A) narrowly
B) realistically
C) specifically
D) broadly
E) futuristically
Answer: D
Diff: 1 Page Ref: 39
AACSB: Analytic Skills
Skill: Application
Objective: 2-1

76
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
116) 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 ________.
A) separate entity
B) strategic business unit (SBU)
C) cash cow
D) star
E) business portfolio
Answer: B
Diff: 2 Page Ref: 41
AACSB: Reflective Thinking
Skill: Application
Objective: 2-2

117) 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?
A) hold the pharmaceuticals division's share
B) implement a harvest strategy
C) use money from a cash cow to promote the pharmaceuticals division
D) divest the SBU
E) diversify the pharmaceutical division
Answer: C
Diff: 3 Page Ref: 42
AACSB: Analytic Skills
Skill: Application
Objective: 2-2

118) Wal-Mart, the world's largest retailer, has successfully launched its stores in Mexico,
Canada, the U.K., and Germany, and other nations. This is an example of how Wal-Mart is
pursuing ________ as a growth strategy.
A) market penetration
B) product development
C) demographic market development
D) geographic market development
E) diversification
Answer: D
Diff: 2 Page Ref: 45
AACSB: Reflective Thinking
Skill: Application
Objective: 2-1

77
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
119) Fence Patrol has developed an entirely new mounting system for chain link fences.
Although they are a local company, through the acquisition of a distributor they now have the
ability to market their products nationwide. Fence Patrol is most likely to be following a
________ strategy.
A) market penetration
B) market development
C) diversification
D) divesting
E) product development
Answer: C
Diff: 3 Page Ref: 46
AACSB: Analytic Skills
Skill: Application
Objective: 2-2

120) The Bank of New York bought Pershing, an off-shore investment firm with operations in
India, from Credit Suisse First Boston. The Bank of New York is pursuing a ________.
A) product development strategy
B) product adaptation strategy
C) downsizing strategy
D) diversification strategy
E) market penetration strategy
Answer: D
Diff: 2 Page Ref: 46
AACSB: Reflective Thinking
Skill: Application
Objective: 2-2

121) 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.
A) market penetration
B) market development
C) diversification
D) harvesting
E) product development
Answer: B
Diff: 2 Page Ref: 45
AACSB: Reflective Thinking
Skill: Application
Objective: 2-2

78
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
122) Disney is identifying and developing new markets for its theme parks. Disney is exploring
possibilities for ________.
A) market penetration
B) market development
C) diversification
D) harvesting
E) product development
Answer: B
Diff: 1 Page Ref: 45
AACSB: Reflective Thinking
Skill: Application
Objective: 2-2

123) For Hyundai Corporation, customers who care about the price of a car and its operating
economy make up one ________.
A) market position
B) value network
C) market segment
D) customer extension
E) value chain
Answer: C
Diff: 2 Page Ref: 49
AACSB: Reflective Thinking
Skill: Application
Objective: 2-4

124) Favorite Memories specializes in serving gift shoppers that major competitors overlook and
ignore. Which of the following best describes Favorite Memories?
A) market follower
B) market challenger
C) market seeker
D) market nicher
E) full market coverer
Answer: D
Diff: 1 Page Ref: 49
AACSB: Reflective Thinking
Skill: Application
Objective: 2-4

79
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
125) Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing
else." These statements reflect a firm's ________.
A) product portfolio
B) target markets
C) market positioning
D) strategy
E) niche
Answer: C
Diff: 2 Page Ref: 50
AACSB: Reflective Thinking
Skill: Application
Objective: 2-4

126) 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) a SWOT analysis
B) a business portfolio analysis
C) an executive summary
D) a marketing plan
E) a marketing mix
Answer: A
Diff: 1 Page Ref: 53
AACSB: Reflective Thinking
Skill: Application
Objective: 2-5

127) Which of the following most accurately identifies a difference between a weakness and a
threat in SWOT analysis?
A) A company is more able to change a threat than a weakness.
B) A company is more able to change a weakness than a threat.
C) A company can be more negatively affected by a weakness than by a threat.
D) A company can be more negatively affected by a threat than by a weakness.
E) A company can more easily identify threats than weaknesses.
Answer: B
Diff: 3 Page Ref: 53
AACSB: Analytic Skills
Skill: Application
Objective: 2-5

80
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
128) Emerson Studios, a chain of 25 portrait stores in five states, has organized its marketing
organization into groups headed by a sales manager, an advertsing manager, and a customer-
service manager. What type of organization is this?
A) geographic
B) product
C) functional
D) customer
E) market
Answer: C
Diff: 1 Page Ref: 56
AACSB: Reflective Thinking
Skill: Application
Objective: 2-5

129) Juanita Castro is looking at whether her company's strategies are well matched to its
opportunities. Juanita is utilizing ________.
A) marketing control
B) operating control
C) strategic control
D) SWOT analysis
E) a marketing audit
Answer: C
Diff: 2 Page Ref: 57
AACSB: Reflective Thinking
Skill: Application
Objective: 2-5

130) As Starbucks continues to grow, it is faced with myriad challenges and surprises during the
implementation of marketing plans. Hence, the marketing department must practice constant
________.
A) customer management
B) corrective action
C) performance analysis
D) marketing control
E) environmental scanning
Answer: D
Diff: 2 Page Ref: 57
AACSB: Analytic Skills
Skill: Application
Objective: 2-5

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall