Q&A Hero

Q: The most basic argument for social responsibility is that it is simply the right thing to do.

Q: The foundation for the pyramid of corporate social responsibility is philanthropic responsibility.

Q: Suppliers are considered stakeholders of a firm.

Q: Sustainability refers to a business's concern for society's welfare.

Q: Studies suggest that ethical beliefs vary only a little from culture to culture.

Q: For most employees a simple list of "dos and don"t's" are enough to maintain ethical behavior, and ethical training would be redundant.

Q: When writing codes of ethics, businesses must ensure their codes deal with every possible situation.

Q: A code of ethics can be an effective internal control on behavior, which is more desirable than external controls like government regulations.

Q: Top managers who behave ethically can influence others in an organization to behave ethically.

Q: Unfortunately, most businesspeople have not progressed beyond the self-centered and manipulative actions of preconventional morality.

Q: Morals are rules people develop as a result of cultural values and norms.

Q: Moral relativists believe in absolute rules.

Q: Whenever faced with a difficult customer, the owner of the shoe store remembered what the original store founder, his grandfather, had done in similar situations and did the same. In other words, the grandson based his decision on the deontological ethical theory.

Q: The deontological theory of ethics is founded on the ability to predict the consequences of an action.

Q: The six modes of social control are less important today due to the globalization of the world.

Q: The media is identified by the text as one of the six modes of social control in an open and democratic society.

Q: The _____ is the unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. a. internal environmental mix b. marketing mix c. product mix d. product line e. market portfolio

Q: Heinz is introducing four hundred new products in the next two years. To know which markets to reach they should first perform a _____. a. market diversification analysis b. market audit c. social audit d. market opportunity analysis e. niche analysis

Q: A(n) _____ describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments.a. marketing orientationb. environmental scanc. marketing mix auditd. target market strategye. market opportunity analysis

Q: John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies, which is a growing industry. This division is currently not producing at the desired level of profitability, but Harland plans to turn the division into a success by acquiring other companies that develop similar software. Harland would be engaging in a _____ strategy. a. harvesting b. diversification c. divesting d. holding e. building

Q: All of the following are basic strategies resulting from a portfolio analysis EXCEPT: a. harvest b. build c. hold d. divest e. milk

Q: In the portfolio matrix, a business unit that has low growth potential and a small market share is called a(n): a. widow b. problem child c. cash cow d. dog e. bust

Q: John R. Harland Company is best known for printing checks. Its Financial Solutions division develops software for mortgage companies and is currently producing much less than the desired level of profitability in a high-growth industry. According to the portfolio matrix, Harland would label its Financial Solutions division as a(n): a. widow b. exclamation point c. problem child d. star e. dog

Q: Before Heinz sold its 9-Lives brand cat food unit, the company identified the product as having a low market share in a high-growth market. The portfolio matrix would classify 9-Lives as a(n): a. star b. exclamation point c. problem child d. cash cow e. widow

Q: Which of the following represents a business unit that shows rapid growth but poor profit margins? a. star b. cash cow c. problem child d. loss leader e. dog

Q: Tide laundry detergent is the market leader, but overall industry growth is low in this market. Tide would be classified as a _____ in a portfolio matrix. a. star b. cash cow c. problem child d. question mark e. dog

Q: A business unit that usually generates more than it needs to maintain its market share is called a(n) _____ in a portfolio matrix. a. star b. cash cow c. problem child d. dog e. independent

Q: Russell Athleticwear, which is part of Berkshire Hathaway, Inc., is a market leader in the sports apparel industry, an industry that is growing rapidly. Russell Athleticwear is an example of a(n) _____ according to the portfolio matrix. a. star b. question mark c. problem child d. exclamation point e. widow

Q: Which of the following category in the Boston Consulting Group's portfolio matrix is a market leader and growing fast? a. star b. meteor c. cash cow d. shiner e. top dog

Q: All of the following are categories used in the Boston Consulting Group's portfolio matrix EXCEPT: a. cash cows b. stars c. problem children d. meat eaters e. dogs

Q: The _____ is a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate. a. market audit b. portfolio matrix c. experience matrix d. market development analysis e. market opportunity analysis

Q: Pure Digital Technologies created the Flip, which is a digital camera that is priced around $150. It filled a gap between expensive digital cameras and web cams. The flip plugs straight into your computer and the video can easily be viewed and shared instantly. Creating a new product for a new market is called _____. a. divestment b. segment development c. target marketing d. diversification e. directed growth

Q: For most American consumers, the brand name Benetton brings to mind a retail-clothing store that carries many products that bear the Benetton brand. But Edizone Holding, which also owns a chain of restaurants, several toll roads in Italy, and a telecommunications company, holds the Benetton Group. The list of the company's holdings indicates that the company's managers believe in growth through: a. market penetration b. diversification c. product development d. market development e. market integration

Q: The company that manufactures Molson beer, which is typically consumed by males, launched an alcoholic lemonade beverage to attract more females. This launch of a new product to attract a new market for Molson's products is an illustration of a _____ strategy. a. market development b. market penetration c. product penetration d. product development e. diversification

Q: Orange growers in Florida have lost millions of dollars due to hurricanes. As a result, some growers have decided to bulldoze their orange groves and put in freshwater lakes for raising shrimp, a product that has a strong popularity and is more weather-resistant. Former orange growers who are now raising shrimp are pursuing a _____ strategy. a. market penetration b. product development c. diversification d. market development e. product penetration

Q: _____ is the strategy of increasing sales by introducing new products into new markets. a. Product penetration b. Product development c. Market penetration d. Market development e. Diversification

Q: The Hallmark Company was inspired by the popularity of Jan Karon's best-selling novels about Mitford, a fictional town in the mountains of North Carolina, to develop a new line of products for Hallmark Gold Crown Stores nationwide. Hallmark created hundreds of Mitford-inspired products that authentically bring "the little town with the big heart" into tangible reality. The products include greeting cards, partyware and gift wrap, mugs, and puzzles for Hallmark's existing customers. Hallmark used a _____ strategy. a. market development b. market penetration c. product penetration d. product development e. diversification

Q: Clay Market began as a retailer of terra cotta pots and garden figures imported from Turkey and Mexico. It has since added Turkish rugs and fabrics, leather trimmed purses, and a line of women's clothes for its customers. These activities are indicative of a _____ strategy. a. vertical integration b. market penetration c. diversification d. product development e. market development

Q: The marketing of organic cotton tees for Life is Good's existing customers would be an example of a _____ strategy. a. market development b. product development c. market penetration d. product penetration e. diversification

Q: Kraft introduced Philadelphia Ready-to-eat Cheesecake Filling for those who do not have time to make cheesecake in the traditional manner. This is an example of a _____ strategy. a. diversification b. market development c. product development d. divestment e. product penetration

Q: _____ is a strategy that creates new products for present markets. a. Product penetration b. Market penetration c. Product development d. Market development e. Diversification

Q: LVMH, a maker of luxury-goods, has expanded its products offerings into China, Russia, India and the Middle East. This exemplifies a _____ strategy. a. market development b. product development c. market penetration d. diversification e. product expansion

Q: Pajamagrams was only marketing pajamas to women. Now they offer pajamas for men and kids. This is an example of a _____ strategy. a. market development b. product development c. market penetration d. product penetration e. divestment

Q: Yard Whimzees, a Statesboro, Georgia sign business, began by making wooden signs for residential use to announce births, anniversaries and such. They then turned to the business market making signs for businesses. Creating signs for a new market is an implementation of a _____ strategy. a. market development b. market penetration c. product penetration d. product development e. diversification

Q: In order to expand its sales into the U.S. market, BRL, an Australia-based winemaker, agreed to a merger with a U.S.-based wine distribution company. According to Ansoff's Strategic Opportunity Matrix, BRL would be implementing a _____ strategy. a. diversification b. market development c. product development d. divestment e. product penetration

Q: _____ is a strategy that attempts to attract new customers to existing products. a. Product development b. Market development c. Market penetration d. Product penetration e. Diversification

Q: Kraft foods created a magazine full of recipes and coupons for customers as well as a web site with product and recipe information. The goal was to get current customers to purchase more of Kraft's products. These activities are representative of a _____ strategy. a. diversification b. product development c. market development d. market penetration e. product penetration

Q: Market penetration occurs when: a. a supermarket adds a new store b. a U.S.-based company begins to sell its products in China c. Motown records sells DVDs to Wal-Mart d. Yoplait yogurt sends coupons to its existing customers e. 3M distributes breathe-right nasal strips in Europe

Q: _____ is a strategy of increasing market share for present products in existing markets.a. Market penetrationb. Product developmentc. Market developmentd. Diversificatione. Product penetration

Q: All of the following are strategic alternatives that match products with markets EXCEPT: a. product development b. market penetration c. product penetration d. diversification e. market development

Q: Which of the following is a strategic alternative?a. vertical integrationb. product penetrationc. divestmentd. horizontal integratione. market penetration

Q: iTunes has a(n) _____ as they have exclusive agreements with some of the most sought after music corporations that other digital music stores do not have. a. targeted market position b. sustainable competitive advantage c. strategic focus d. situational strength e. opportunistic privilege

Q: Patents on prescription medications give pharmaceutical companies that own the patents a(n) _____ for 17 years until the patent expires. a. targeted market position b. sustainable competitive advantage c. strategic focus d. situational strength e. opportunistic privilege

Q: An advantage that cannot be copied by the competition is called a(n) _____ competitive advantage. a. sustainable b. monopolistic c. primary d. unique e. dominant

Q: Technol Medical Products makes specialty face masks to shield health-care workers from infection. Because it focuses on this narrow market, it is able to outsell its primary competitors--3M and Johnson & Johnson. Technol Medical Products has a(n): a. aggregated positioning strategy b. demarketing focus c. heterogeneous target marketing strategy d. cost competitive advantage e. niche competitive advantage

Q: Fujisawa is Japan's seventh-largest pharmaceutical company. It sells drugs for organ transplant patients to increase the probability the new organ will operate efficiently and not be rejected. Currently, the only products Fujisawa makes are these organ transplant drugs, which it sells worldwide. Its patents protect it from competitors. Fujisawa has a: a. brand name advantage b. niche competitive advantage c. cost competitive advantage d. marketing competitive advantage e. complete competitive advantage

Q: Yuengling is the oldest brewery in the United States. It was founded in 1827 in a time when small breweries dotted the nation. The brewery only sells in a ten state area on the eastern seaboard. For over 170 years, this strategy has given the brewery a: a. brand name strategy b. niche competitive advantage c. price differentiation advantage d. marketing competitive advantage e. sustainable competitive advantage

Q: Everyone knows the brand name Kleenex. Kleenex is what many consumers think of when they think of tissues. This widely recognized brand name is a source of: a. a product differentiation competitive advantage b. a cost advantage c. market augmentation d. a niche competitive advantage e. none of these things

Q: Arizona Tea is marketed by Vultaggio & Sons. Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs. The wide-mouthed, long-necked bottles are now considered to be trendsetters in the new age beverage industry, and customers often buy the tea just for the bottle. The success of Arizona Tea is based on: a. supply-demand curves b. reengineering c. a product differentiation competitive advantage d. a cost competitive advantage e. a heterogeneous marketing strategy

Q: Zipcar is a car rental service found in many metropolitan areas. It targets people who take mass transit or carpool to work but who occasionally need a car to run errands, visit the doctor, or check on a sick child. Zipcar is one of a few companies currently providing cars that can be rented by the hour. Zipcar has created a(n) _____ advantage. a. reengineering b. experience curve c. service differentiation competitive d. alternative market e. sustainable competitive

Q: Jiffy Mixes do not do any type of traditional advertising or use fancy packaging in marketing their products. They store their own wheat and make their own flour and their little blue boxes, too. Jiffy is an example of a low cost strategy based on: a. efficient labor b. no-frills goods and services c. government subsidies d. product design e. reengineering

Q: Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes with emphasis on low-priced, private-label brands. Aldi stores are typically about one-third the size of the traditional supermarket. By controlling expenses, Aldi enables its customers to save 30 to 50 percent compared to Kroger customers. The chain targets bargain hunters who are willing to rent a cart and bag their own groceries. Aldi has a(n) a. market-homogeneous focus b. cost competitive advantage c. product aggregation strategy d. revenue-based competitive advantage e. profit-enhanced advantage

Q: WalMart realizes a _____ using its relationships with suppliers to give customers low prices and good customer service. a. brand name strategy b. niche competitive advantage c. cost competitive advantage d. marketing competitive advantage e. synergistic competitive advantage

Q: _____ show costs declining at a predictable rate as experience with a product increases. a. Liquidity growth curves b. EOQ graphs c. Breakeven analyses d. Experience curves e. Supply/demand curves

Q: All of the following are sources of a cost competitive advantage EXCEPT: a. reengineering b. experience curves c. break-even analyses d. efficient labor e. production innovations

Q: Which of the following is NOT a type of competitive advantage? a. management structure b. cost c. product/service differentiation d. niche strategies e. all of these choices are types of competitive advantages

Q: Each labor and delivery room at Dekalb County's new Medical Center has hardwood floors, soft lighting, and mission-style furniture. The facility also features a stone fireplace in the lobby, a bistro-style restaurant, and VIP suites for discerning mothers-to-be. This unique design and furnishings give the Medical Center a: a. profit-enhanced advantage b. competitive advantage c. quality objectivity d. strategic strength e. tactical opportunity

Q: Land O"Lakes makes a light butter with Canola oil that has sixty percent less cholesterol and fifty percent less fat and calories than butter. This marketing gives the product a _____. a. strategic edge b. competitive advantage c. tactical strength d. marketing mix e. mission statement

Q: As a customer entered the Hornady store, which sells muzzle loading rifles, a salesperson approached her and said, "Hornady lead round balls are the musket balls you ought to buy. They are the most uniform in size and shape, and they are made of pure lead. Our shot is used by the Muzzle Loading World Champion." The salesperson was describing Hornady's: a. competitive advantage b. strategic strength c. tactical opportunity d. opportunity mission e. quality objective

Q: The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition is known as a(n): a. environmental advantage b. experience curve c. competitive advantage d. market segment e. strategic business unit

Q: All of the following are functions served by objectives EXCEPT: a. communicate philosophies and provide direction b. motivate employees c. clarify executives' thinking d. form the basis for control e. guarantee market performance

Q: Of the following, what is the most useful objective for Purina cat food? a. To increase sales of Purina brand cat food by 15 percent over 2010 sales of $300 million. b. To increase sales of Purina brand cat food between January 1, 2010 and December 31, 2010. c. To increase sales of Purina brand cat food from $300 million to $345 million. d. To increase sales of Purina Brand cat food. e. To increase sales of Purina pet food.

Q: All of the following are characteristics of a good objective EXCEPT: a. profitable b. realistic c. measurable d. time-specific e. consistent

Q: A _____ is defined as a statement of what is to be accomplished through marketing activities. a. mission statement b. business plan c. marketing objective d. goal-driven directive e. marketing criteria

Q: _____ is defined as the collection and interpretation of information about forces, events, and relationships in the external environment that may affect the organization or the implementation of the marketing plan. a. Market sampling b. An internal audit c. Opportunity analysis d. Environmental scanning e. Stakeholder analysis

Q: Coca-Cola drink vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. Critics of these new vending machines are concerned that entertaining technology is being used to market sugary products. In terms of a SWOT analysis, this concern would be an example of a(n): a. weakness b. strength c. advantage d. opportunity e. threat

Q: Smucker's purchased Folgers Coffee in 2008. The option to buy Folgers represented a(n) _____ to Smucker's. a. opportunity b. strength c. weakness d. threat e. burden

Q: Coca-Cola drink vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have bought a drink. The reason for the introduction of this new style vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis, the technology used by these machines is an example of a(n): a. strength because it is part of Coke's external environment b. advantage because it is part of Coke's marketing environment c. weakness because Coke cannot control technology d. opportunity because it is part of Coke's external environment e. benefit because Coke has the resources to make use of the new technology

Q: Briggs and Stratton is a Southeastern company that makes small engines. The company is looking at customer trends, its competitors, and the economy to see if there are any threats or opportunities on the horizon. It has also examined its production policies and sales histories to determine its strengths and weaknesses. Briggs & Stratton is conducting a(n): a. environmental test b. market audit c. trend analysis d. situation analysis e. competitive advantage search

Q: Tub King is a small company that refinishes antique claw foot bathtubs, antique sinks, and provides training for bathtub refinishing. The company's management is currently conducting a formal study of its current strengths and weaknesses by looking at the company's profit and sales histories and searching for opportunities and threats by studying consumer trends. Tub King is conducting a(n): a. marketing audit b. SWOT analysis c. environmental scan d. market differentiation scan e. strategic window search