PRINCIPLES OF MARKETING 17TH EDITION
ACTUAL EXAM UPDATED COMPLETE
QUESTIONS AND CORRECT ANSWERS
◉ Mission Statement
Answer: a statement of the organization's purpose - what it wants to
accomplish in the larger environment
◉ Business Portfolio
Answer: the collection of businesses and products that make up the
company
◉ portfolio analysis
Answer: the process by which management evaluates the products
and businesses that make up the company
◉ Growth-share matrix
Answer: a portfolio-planning method that evaluates a company's
SBUs in terms of market growth rate and relative market share
◉ Growth Share Matrix: Stars
, Answer: are high-growth, high-share businesses or products. They
often need
heavy investments to finance their rapid growth. Eventually their
growth will slow
down, and they will turn into cash cows.
◉ Growth-Share Matrix: Cash Cows
Answer: are low-growth, high-share businesses or products. These
established and successful SBUs need less investment to hold their
market share. Thus, they
produce a lot of the cash that the company uses to pay its bills and
support other SBUs
that need investment.
◉ Growth-Share Matrix: Question Marks
Answer: are low-share business units in high-growth markets.
They require a lot of cash to hold their share, let alone increase it.
Management has
to think hard about which question marks it should try to build into
stars and which
should be phased out.
◉ Growth-Share Matrix: Dogs
ACTUAL EXAM UPDATED COMPLETE
QUESTIONS AND CORRECT ANSWERS
◉ Mission Statement
Answer: a statement of the organization's purpose - what it wants to
accomplish in the larger environment
◉ Business Portfolio
Answer: the collection of businesses and products that make up the
company
◉ portfolio analysis
Answer: the process by which management evaluates the products
and businesses that make up the company
◉ Growth-share matrix
Answer: a portfolio-planning method that evaluates a company's
SBUs in terms of market growth rate and relative market share
◉ Growth Share Matrix: Stars
, Answer: are high-growth, high-share businesses or products. They
often need
heavy investments to finance their rapid growth. Eventually their
growth will slow
down, and they will turn into cash cows.
◉ Growth-Share Matrix: Cash Cows
Answer: are low-growth, high-share businesses or products. These
established and successful SBUs need less investment to hold their
market share. Thus, they
produce a lot of the cash that the company uses to pay its bills and
support other SBUs
that need investment.
◉ Growth-Share Matrix: Question Marks
Answer: are low-share business units in high-growth markets.
They require a lot of cash to hold their share, let alone increase it.
Management has
to think hard about which question marks it should try to build into
stars and which
should be phased out.
◉ Growth-Share Matrix: Dogs
