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HomeTest Bank Marketing, 1st Edition Test Bank by Roger Kerin, Steven Hartley, William Frederick Crane
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Marketing, 1st Edition Test Bank by Roger Kerin, Steven Hartley, William Frederick Crane

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Category: Test Bank Tags: 1st Edition, Marketing
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Chapter 02 Developing Successful Marketing Strategies

Student: ___________________________________________________________________________

1. Which of the following is NOT one of Canadian Tire’s core businesses?

A. Canadian Tire Retail.
B. Canadian Tire Travel Services.
C. PartSource.
D. Canadian Tire Financial Services.

2. Canadian Tire is a Canadian success story. Canadian Tire employs more than 70,000 Canadians
and has revenues of close to _______ annually.

A. $5 billion
B. $7.5 billion
C. $6 billion
D. $10 billion

3. Which new initiatives demonstrate an understanding of the direction of Canadian Tire of:
“creating customers for life and shareholder value,” by the marketing department?

A. mobile application
B. “Canadiana” products
C. only using Made-In-Canada products
D. using a CRM tool

4. In today’s global competition, it is important to recognize the kinds of organizations that exist.
Organizations can basically be divided into two categories:

A. privately owned and publically owned.
B. regulated and unregulated.
C. domestic and multi-national.
D. business and non-profit.

5. Plan Canada, a nongovernmental organization that serves its customers but does not have profit
as an organizational goal is considered a

A. business firm
B. nonprofit organization
C. government agency
D. public university

6. Ford, GM, and Toyota, all develop automobiles. This group create a(n):

A. product market.
B. conglomerate.
C. industry.
D. cartel.

7. John’s Auto Wreckers is a privately owned organization that serves its customers in order to earn
a profit is called a:

A. business firm.
B. nonprofit organization.
C. community action program.
D. manufacturing agent.

8. George’s Computer Repairs is focused on earning money for its owners, while Plan Canada is
focused on solving community issues overseas and is not concerned about earning a profit. The
contrast between these two is:

A. George’s Computer Repairs is considered a business, while Plan Canada is considered a
nonprofit organization
B. George’s Computer Repairs is a shareholder company, while Plan Canada is a for profit
company
C. George’s Computer Repairs is a nonprofit, while Plan Canada is a for profit company D. Both
serve customers, so there is no contrast between the two

9. While undertaking risk to offer the iPhone, Apple Computers is rewarded by receiving the
following reward:

A. Shareholders’ equity
B. Profit
C. Inventory turnover
D. Contribution margin

10. At Apple Computers, the financial department considers the profit earned at the end of the day
as:

A. the point at which company assets equal company liabilities.
B. the money left over after a firm’s total expenses are subtracted from its total revenues.
C. the goodwill earned from implementing the societal marketing concept.
D. the money earned as long as the economic order quantity is maintained.

11. A legal entity of people who share a common mission is referred to as a(n):

A. special interest group.
B. organization.
C. lobby group.
D. industry.

12. Telus offers several mobile phone plans, which of the following best describes what constitutes
their potential offerings?

A. products and services.
B. products, services, ideas and experiences.
C. physical goods and services.
D. products only.

13. Telus’ goal in offering a specific phone that is not offered by any of the other mobile phone
carriers in Canada is focused on achieving a long term advantage to deliver a unique customer
experience. This is known as:

A. corporate planning.
B. market development.
C. strategy.
D. customer relationship management.

14. Large organizations can be extremely complex. They usually consist of _______ organizational
level(s) whose strategy is linked to marketing:

A. two.
B. four.
C. five.
D. three.

Figure 2-1

15. In Figure 2-1, “A” represents the:

A. functional-level strategy level.
B. Board of Directors.
C. corporate-level strategy level.
D. CEO.

16. In Figure 2-1, “B” represents the

A. functional-level strategy level.
B. Board of Directors.
C. corporate-level strategy level.
D. departments.

17. In Figure 2-1, “C” represents the

A. business-unit strategy level.
B. Board of Directors.
C. corporate-level strategy level.
D. functional-level strategy level.

18. In Figure 2-1, “D” represents the

A. business-unit strategy level.
B. functional-level strategy level.
C. corporate-level strategy level.
D. Board of Directors.

19. In Figure 2-1, “E” represents

A. Board of Directors.
B. corporate-level strategy level.
C. departments.
D. functional-level strategy level.

20. The ‘Alternative Energy Group’ of GE likely has which focus:

A. directs overall strategy for the organization.
B. markets a set of related products to a clearly defined group of customers.
C. has marketing and other specialized activities.
D. also has a comparable non-business unit.

21. In a new marketing role, your manager says: “You will be responsible for five SBUs.” You give a
puzzled look before remembering that SBU stands for:

A. strategic business unit.
B. standard business unit.
C. strategic benefit of usage.
D. service business unit.

22. The overall strategy for the entire organization is decided at which level in a complex
organization.

A. functional
B. board
C. corporate
D. tactical

23. Research Development Manager, Marketing Manager, and Audit Manager are specialist roles
likely found at which business unit level?

A. top management
B. business unit
C. functional
D. corporate

24. The fundamental objective for the Marketing Manager and HR Manager is to:

A. create value for the organization
B. market products and hire people
C. sell products and fire people
D. manage their direct reports

25. Business unit managers at Bell Canada decide on the direction for their residential products and
markets every six months. This decision making occurs at which unit level in the organization.

A. strategic business unit
B. corporate level
C. board of directors
D. functional unit level

26. For less complex firms with a single business focus, which two organizational levels may merge?

A. corporate-level and business unit-level.
B. corporate-level and strategic business unit-level.
C. strategic business-unit level and functional-level.
D. marketing and research and development.

27. Craig Conway is CEO of a software design company named PeopleSoft, a company that has
automated many human resource functions such as tracking vacation time. Conway operates at
the _____ level of his organization.

A. business unit
B. functional
C. corporate
D. strategic

28. The marketing leadership group at Rogers Wireless that identifies value-creating opportunities is
known as the:

A. strategic business unit level.
B. corporate unit level.
C. functional unit level.
D. board level.

29. In a large corporation with multiple business units, the marketing department may be called upon
to:

A. allocate financial resources across business units.
B. set the overall mission of the company.
C. allocate shareholder dividends through a large financial institution.
D. assist managers at higher levels to assess environmental trends or aid in their strategic
planning efforts.

30. Bill McDermott is President and CEO of SAP Americas and Asia Pacific Japan. SAP is a

company that sells extremely expensive enterprise resource planning software to large and mid-
sized companies. McDermott operates at the __________ level of his organization.

A. business unit
B. functional
C. corporate
D. strategic

31. In the marketing department of Pepsi, the entry-level staff, such as Business Analysts, are
responsible for doing most of the organization’s work. Their level in the organization is known
as?

A. strategic
B. product
C. functional
D. business unit

32. In recent years, many large firms have changed the title of the head of marketing from vice
president of marketing to

A. commercial executive officer.
B. chief marketing officer.
C. corporate marketing official.
D. corporate marketing officer.

33. Specialists from all the functional units who analyze, implement, and control programs to
accomplish the corporate and business strategic directions usually serve as members to a:

A. department
B. system
C. organization
D. team

34. John is from the marketing department, Stephen is from the finance department, Jo is from the
product department, and Janelle is from the customer service department. Together they are
responsible for developing a new product to reach a company performance goal. These
individuals are referred to as a(n):

A. inter-disciplinary group
B. matrix group
C. cross-functional team
D. multi-disciplinary team

35. In terms of an organization’s vision, Kodak Eastman may have lost business because they:

A. are too slow and cumbersome.
B. defined their business too narrowly.
C. defined their business too broadly.
D. priced their services too high.

36. Sometimes cross-functional teams will have representatives from outside the organization such
as:

A. suppliers and customers.
B. consultants and retired CEOs.
C. opinion leaders.
D. competitors.

37. Which of the following statements regarding the strategic business unit level is most accurate?

A. The strategic business unit level is the level that works most directly with the targeted
customers.
B. The overall strategy for the organization is directed at the strategic business unit level.
C. In more complex organizations the corporate level and the strategic business unit level may
merge.
D. The strategic direction is more specific at the strategic business unit level than at the corporate
level.

38. Determining the target market and designing marketing programs to reach this target market is a
specialized marketing function. This is accomplished by the marketing:

A. team.
B. group.
C. partnership.
D. department.

39. On the northern tip of Goose Island in the Chicago River sits the William Wrigley Jr. Company’s

Global Innovation Center. Here Wrigley can create new products—a joint effort by some 250 full-
time food scientists, researchers, and marketers. The people who work in this center are most

likely members of

A. cross-functional teams.
B. a business consortium.
C. multiple strategic directional teams.
D. strategic implementation teams.

40. Which of the following statements would most likely be heard at the functional level of an
organization?

A. “We need to be aware of what our competitors are doing.”
B. “How much money can we allot to the marketing department?”
C. “Make sure we buy 15 seconds of air time for this coming Super Bowl.”
D. “We should hire the most culturally diverse team possible in order to get the best new ideas.”

41. In terms of an organization’s vision, railroads may have lost business because they:

A. are too slow and cumbersome.
B. defined their business too narrowly.
C. defined their business too broadly.
D. priced their services too high.

42. Railroads may have let other forms of transportation take business away from them because their
definition included only the railroad business, rather than the broader definition of:

A. transportation.
B. aerospace.
C. entertainment.
D. retailing.

Figure 2-2

43. In Figure 2-2, section “A” represents the “why” element of visionary organization. This is referred
to as

A. organizational tactics.
B. organizational mission.
C. organizational foundation.
D. organizational direction.

44. In Figure 2-2, section “B” represents the “what” element of visionary organization. This is referred
to as

A. organizational tactics.
B. organizational mission.
C. organizational foundation.
D. organizational direction.

45. In Figure 2-2, section “C” represents the “how” element of visionary organization. This is referred
to as

A. organizational tactics.
B. organizational mission.
C. organizational foundation.
D. organizational direction.

46. Today’s visionary organization uses key elements to (1) __________ and (2) set a direction using
(3) its strategies that enable it to develop and market its offerings successfully.

A. set financial goals
B. establish a foundation
C. establish detailed marketing tactics
D. assign job responsibilities

47. One of the key differences between a vision statement and a mission statement is that the
mission statement:

A. describes the profit goals
B. has an inspirational theme
C. has a long-term focus
D. describes the company’s societal marketing concept

48. “To refresh the world/ To Inspire moments of optimism and happiness/ To create value and make
a difference.” This is an example of a(n):

A. benefit statement
B. business portfolio
C. functional philosophy
D. mission

49. “Holiday Inn Burlington is dedicated to providing quality hospitality product and service.

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