1. Which of the following is true with regard to strategic planning?

A) At the corporate level, the company starts the strategic planning process by determining
what portfolio of businesses and products is best for the company.
B) A strategic plan deals with a company's short-term goals.
C) Finding the game plan for long-run survival and growth is the focus of strategic planning.
D) The strategic plan is a statement of an organization's purpose.
E) Strategic planning involves identifying segments of consumers with identical preferences.
2. Which of the following is NOT a market-oriented business definition?
A) "We empower customers to realize their dreams."
B) "We make high-quality consumer food products."
C) "We sell success and status."
D) "We create the Hilton experience."
E) "We bring innovation to every home."
3. Which of the following best describes a strategic business unit (SBU)?
A) the internal value chain of a company
B) the supply chain of a company
C) the key businesses that make up a company
D) the key channel intermediaries of a service company
E) the key competitors of a company
4. Orion Inc. operates in many industries, including pharmaceuticals and food products. The
company's goal is to create "abundant and affordable food for all and a healthy environment."
This represents Orion's ________.
A) marketing plan
B) product mix
C) business portfolio
D) marketing mix
E) mission statement
5. The key businesses of Kimberley and Price consist of a division that produces and sells
breakfast cereals and another that manufactures gardening tools. Each of these businesses is
called a ________.
A) market segment
B) strategic business unit (SBU)
C) question mark
D) prospect
E) product portfolio
6. The managers of Alfredo's Pizza, a popular pizzeria in New York City, have been
increasingly encouraging senior citizens to visit the pizzeria's numerous outlets spread across
the city. Anticipating a rise in the population of senior citizens in the area, the management of
Alfredo's Pizza is seeking to tap into this promising segment that consists of retired, affluent
consumers. In this instance, the managers of Alfredo's Pizza are anticipating company growth
through ________.
A) market development
B) product development
C) mass customization
D) niche marketing
E) product differentiation

7. A women's apparel manufacturer in California recently acquired a Houston-based company

that manufactures office furniture. This is an example of ________.
A) product development
B) market development
C) market penetration
D) diversification
E) product differentiation
Answer: D
8. Paul Robinson 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) ________.
A) target market
B) market segment
C) niche market
D) product attribute
E) product design
9. ________ involves looking at whether a company's key action plans are well-matched to its
opportunities.
A) Operating control
B) Benchmarking
C) Strategic control
D) Regression analysis
E) Portfolio analysis
10. Omega Inc. makes lightweight sunglasses with 100-percent UV protection for people who
love to hunt, hike, and ride bikes. The company's long-term plans include the development of
lenses that, in addition to protecting users from UV rays, would help reduce lens spotting
through effective water-sheeting methods. This new feature would be valuable to people who
fish. Given the rising popularity of recreational fishing in the United States, Omega products
clearly have a huge market potential. In terms of a SWOT analysis, Omega has recognized a
market ________.
A) weakness
B) strength
C) threat
D) opportunity
E) challenge
11. ________ are low-growth, high-share businesses/products that need less investment to
hold their market share.
A) Stars
B) Cash cows
C) Question marks
D) Dogs
E) Bears

12. The collection of businesses and products that make up a company is called its ________.
A) strategic business unit
B) supply chain
C) strategic plan
D) business portfolio
E) internal value chain
13. Mission statements should be ________.
A) meaningful and specific yet motivating
B) technology oriented
C) written solely for public relations purposes
D) focused on increasing sales or profits
E) strictly product oriented
14. Dan has been directed to study the actors close to a company that affect its ability to serve
its customers, such as the company, suppliers, marketing intermediaries, customer markets,
competitors, and publics. In this instance, Dan has been directed to study the ________ of the
company.
A) macroenvironment
B) microenvironment
C) technological environment
D) demographic environment
E) political environment
15. Which of the following is a component of a firm's microenvironment?
A) customer demographics
B) economic recessions
C) population shifts
D) marketing intermediaries
E) technological changes
16. ________ provide the resources needed by a company to produce its goods and services.
A) Retailers
B) Marketing services agencies
C) Resellers
D) Suppliers
E) Financial intermediaries
17. Which of the following is true with regard to media publics?
A) The primary function of this group is to protect the interests of minority groups.
B) This group carries news, features, and editorial opinion.
C) The primary function of this group is to critique the marketing decisions of companies.
D) This group includes neighborhood residents and community organizations.
E) This group directly influences the company's ability to obtain funds.
18. Workers, managers, and members of the board are examples of ________ publics.
A) general
B) internal
C) local
D) citizen-action
E) media

19. Rachel works for a furniture company in Ireland. She is responsible for buying and selling
goods at a profit to small retailers. Rachel most likely operates in a ________ market.
A) business
B) reseller
C) wholesale
D) consumer
E) retail
20. The 83 million children born between 1977 and 2000 are known as the ________.
A) Generation X
B) Millennials
C) baby boomers
D) Silent Generation
E) Lost Generation
21. Which of the following is true of Gen Xers?
A) They are considerably larger than the boomer generation.
B) They were the first to grow up in the Internet era.
C) They are less educated than the baby boomers.
D) They are more materialistic than the Millennials.
E) They rarely research a product before purchasing it.
22. Which of the following situations is expected to enhance the use of targeted advertising
messages by marketers?
A) increase in derived demand in the market
B) increase in ethnic populations
C) rising global inflation rates
D) inadequate quality control
E) low advertising budgets
23. A country with a(n) ________ economy consumes most of its own agricultural and
industrial outputs and offers few market opportunities.
A) industrial
B) service
C) technological
D) subsistence
E) developing
24. The physical environment affecting marketing activities is referred to as the ________
environment.
A) economic
B) natural
C) cultural
D) political
E) social
25. New technologies most likely lead to ________.
A) economic imbalance in society
B) reduced exports
C) trade deficits
D) an increased demand for unskilled labor
E) fresh markets and opportunities

26. The ________ limits the number of commercials aired during children's programs.
A) Children's Online Privacy Protection Act
B) Child Protection Act
C) Fair Packaging and Labeling Act
D) Children's Television Act
E) Consumer Product Safety Act
27. Marketers should understand that people's core beliefs and values tend to be ________.
A) fixed
B) highly flexible
C) similar around the world
D) constantly and rapidly changing
E) easily influenced by secondary beliefs
28. Which of the following is most likely influenced by marketers?
A) population shifts
B) core cultural values
C) income distribution
D) ethnic diversity
E) media
29. Which of the following is NOT a step in the strategic planning process?
A) defining the company mission
B) setting company objectives and goals
C) designing the business portfolio
D) planning marketing and other functional strategies
E) evaluating members of the company's value chain
30. ) In the marketing mix, place includes ________.
A) logistics
B) discounts
C) sales promotion
D) advertising
E) packaging

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C
B
C
E
B
A
D
B
C
D
B
D
A
B
D
D
B
B
B
B
B
B
D
B
E
D
A
E
E
A