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Marketing, 14e (Kerin)
1) In order to launch a start-up firm, Arthur R. Kydd believes that the firm needs to have a real
product with
A) a distinctive point of difference that satisfies customer needs.
B) a prototype to test in the real world.
C) a list of all the other ideas you have, including this one.
D) some of your own money to demonstrate your belief that this product is a winner.
E) friends in the industry that you wish to enter.
2) Arthur R. Kydd has helped launch more than 60 start-up firms and believes if you have a real
product with a distinctive point of difference that satisfies the needs of customers, you may have
a winner. The way to demonstrate this to him is to
A) create a prototype and test it in the real world.
B) submit a quality résumé that demonstrates the likelihood of future success.
C) develop a well-written marketing or business plan.
D) make a list of all the other ideas you have, including this one.
E) ask for an informal interview.
3) A(n) ________ is a road map for the marketing activities of an organization for a specified
future time period, such as one year or five years.
A) marketing plan
B) mission statement
C) operation plan
D) business plan
E) marketing dashboard
4) There is no single generic marketing plan that can apply to all organizations or all institutions.
Rather, the specific format for a marketing plan for an organization depends on which of the
following?
A) the financial investment needed
B) the time frame
C) available resources
D) the industry
E) the competition
5) Which of the following statements about marketing plans is most accurate?
A) A marketing plan has little or no value unless it projects plans at least 10 years into the future.
B) It is important to use the exact market plan format regardless of the product or industry.
C) Although sales figures will vary greatly, the marketing plan for a small family-owned food
store will be almost identical to the marketing plan of a large supermarket chain, if written
correctly.
D) Although the target audience and purpose affect the design of a marketing plan, the type of
industry plays a relatively small, if any, role in its design.
E) No single generic marketing plan applies to all organizations and all situations.
6) The format for a marketing plan for an organization depends on which of these?
A) the time frame
B) the competition
C) the available resources
D) the target audience and purpose
E) the financial investment needed
7) Elements in a marketing plan depend on who the audience is and what its purpose is. For
example, the marketing plan for an internal audience would
A) be informally written.
B) contain specific financial details.
C) point the direction for future marketing activities.
D) explain organization and structure.
E) provide biographical information of key players.
8) Elements in a marketing plan depend on who the audience is and what the purpose is. For
example, the marketing plan for an external audience would
A) give a broad general overview.
B) function as a sales document.
C) be more informally written.
D) be directed to the people who would be affected by it.
E) be directed to the people who must implement the plan.
9) A(n) ________ is a road map for the entire organization for a specified future period of time,
such as one year or five years.
A) marketing dashboard
B) strategic plan
C) operation plan
D) business plan
E) marketing metric
10) The target audience and purpose affect the format of a business or marketing plan. For
example, an element such as the level of detail should reflect
A) the kind and complexity of the organization.
B) the educational background of the key personnel.
C) the investment potential of the investors.
D) how well you know your audience.
E) whether the plan is for a product or service.
11) The industry within which a product will compete should affect the format of an
organization's business or marketing plan. However, since the complexities of products can
differ greatly,
A) the size of the potential workforce included in their plans differs.
B) the investment potential of investors included in their plans differs.
C) the experience of the key personnel demonstrated in their plans differs.
D) the time periods likely to be covered by their plans differ.
E) the knowledge of technical language used in their plans differs.
12) A key difference between a marketing plan and a business plans is that
A) a marketing plan is used for consumer products and a business plan is used for industrial
products.
B) a marketing plan contains a greater degree of detail regarding research and development,
operations, and manufacturing activities of the organization.
C) a business plan contains a greater degree of detail regarding research and development,
operations, and manufacturing activities of the organization.
D) a marketing plan covers a greater length of time for its financial projections.
E) a business plan covers a greater length of time for its financial projections.
13) Which of the following statements regarding marketing and business plans is most accurate?
A) In contrast to a marketing plan, a business plan is a road map for the entire organization for a
specified future period of time, such as one year or five years.
B) In contrast to a business plan, a marketing plan is a road map for the entire organization for a
specified future period of time, such as one year or five years.
C) A marketing plan contains a greater degree of detail regarding research and development,
operations, and manufacturing activities of the organization.
D) A business plan is used for industrial products and a marketing plan is used for consumer
products.
E) A business plan is used for manufactured products and a marketing plan is used for services.
14) While several different groups of stakeholders are likely to read a business or marketing
plan, which group is likely to be the most critical of these documents?
A) prospective employees
B) potential customers
C) potential suppliers
D) future distributors, wholesalers, and retailers
E) possible investors or lenders
15) Which of the following is one of the six questions most lenders and prospective investors
expect to be answered in a marketing or business plan?
A) Does the prospective product meet all government safety standards?
B) Who is your competition and what are they doing?
C) Who will be your key suppliers?
D) Is there a clear market for the product or service?
E) What are your taxes?
16) All of the following are questions most lenders and prospective investors expect to be
answered in a marketing or business plan except which?
A) Is the business or marketing idea valid?
B) Who is your competition and what are they doing?
C) Are the financial projections realistic and healthy?
D) Are the key management and technical personnel capable, and do they have a track record in
the industry within which they must compete?
E) Is there something unique or distinctive about the product or service that separates it from
substitutes and competitors?
17) There are no magic one-size-fits-all guidelines for writing successful marketing and business
plans. Which writing and style guideline below still generally applies?
A) Use different color fonts or paper to represent different sections of your plan.
B) Use informal language unless you plan to borrow at least $100,000.
C) Include as an attachment the résumés for all key players in your management team.
D) Set a firm date by which you will require an answer from a potential investor, after which you
will take your plan somewhere else.
E) Use visuals where appropriate.
18) There are no magic one-size-fits-all guidelines for writing successful marketing and business
plans. All of the writing and style guidelines below still generally apply except which?
A) Use a direct, professional writing style.
B) Be positive and specific to convey potential success.
C) Shoot for a plan that is 15 to 35 pages in length, excluding financial projections and
appendixes.
D) Include as an attachment the résumés for all key players in your management team.
E) Use bullet points for succinctness and emphasis, along with A-level and B-level headings.
19) Which of the following statements is written in the best writing style for a business or
marketing plan?
A) We have found three different groups that could benefit from our new software.
B) Being that teachers, social workers, and nurses can use this software, it will offer great
opportunities.
C) There are three potential target markets for this software: teachers, social workers, and nurses.
D) There is a target market of teachers; there is a target market of social workers; and there is a
target market of nurses as well, who might benefit if we get the opportunity to bring this product
to the public.
E) The fact that there are three different "money makers" to shoot for should be a selling point.
20) Which of the following statements is best suited for a business or marketing plan?
A) This will be a fantastic, once in a lifetime opportunity in the amazing world of chocolate
lovers.
B) This product offers a unique opportunity to meet the needs of consumers who love the flavor
of chocolate but who are allergic to cocoa.
C) What could be better than chocolate? Nothing! That's why this is a phenomenal opportunity
for those who really understand the exciting world of chocolate.
D) We are not kidding. This new non-cocoa chocolate candy is simply irresistible; everyone we
gave a sample to fell in love with it.
E) The fact that this chocolate-flavored candy does not contain cocoa should be a selling point.
21) Which of the following statements regarding bullet points in a marketing plan is most
accurate?
A) Avoid using bullet points whenever possible because they distract the reader.
B) If possible, change the shape of the bullet point (circle, star, square, etc.) whenever you
change topics.
C) Bullet points should be used with all major headings to help draw attention to them.
D) Bullet points enable key points to be highlighted effectively in a list form.
E) Bullet points make it easier to highlight points that require long explanations.
22) It is helpful to use A-level (the first level) and B-level (the second level) headings under the
numbered section headings of marketing and business plans. These headings should
A) help readers make easy transitions from one topic to another.
B) only be used in marketing plans and not in business plans.
C) only be used in business plans and not in marketing plans.
D) be used sparingly, otherwise they lose their cohesiveness and effectiveness.
E) continue in traditional outline form all the way through E-level (the fifth level) if needed, but
no further.
23) Which of the following statements regarding visuals is most accurate?
A) Visuals should not be used unless they are in black and white; color is not considered
professional in a formal business plan.
B) Visuals should be used sparingly because it is assumed that if you cannot explain an idea in
words, you don't have a sufficient grasp of your product.
C) Visuals such as illustrations, graphs, and charts are acceptable; photos are less professional
and should be avoided.
D) Visuals such as photos, illustrations, graphs, and charts enable massive amounts of
information to be presented succinctly.
E) Visuals should appear in the appendices of the plan, never in the body of the plan itself.
24) Which of the following statements regarding business or market plan page length is most
accurate?
A) As a quick rule of thumb, there should be one page for every $10,000 required in the
projected budget.
B) The length of a business plan should never be less than 30 pages or greater than 35 pages.
C) The length of the body of the plan should be between 15 and 30 pages including financial
projections and appendices.
D) For every page in the body of the work, there should be at least one additional page in the
appendix to complement it.
E) Although general guidelines suggest a length of 15 to 35 pages, the length of the plan should
reflect the complexity of the product or service.
25) In addition to quality content, a plan's layout and design are also important. Which of the
following statements is most accurate?
A) Fonts that are serif type should be used within the body of the plan and sans serif type should
be used with charts and graphs.
B) Fonts that are sans serif are easier to read and should be used in the body of the plan.
C) Ink-jet printers are preferable to laser printers.
D) The font size should change with the importance of the material. Important material should be
at least 14 points and go as small as 10.5 points for less important details.
E) There should be a different font style for each new section within the plan, provided no more
than five distinct fonts are used.
26) The table of contents is usually found
A) as an attachment with the letter of transmittal.
B) on the cover of the plan.
C) immediately after the executive summary.
D) between the executive summary and the company description.
E) immediately before the executive summary.
27) The single most important section of the marketing plan (usually only two pages long) that
"sells" the plan to readers is called the
A) executive summary.
B) strategic plan.
C) vision statement.
D) overview of financial projections.
E) synopsis.
28) The primary purpose of the Paradise Kitchen's company description section of the marketing
plan was to
A) assure the investors of the company's financial health.
B) introduce all the members and key players in the organization.
C) describe the product's competition.
D) explain how the organization will be structured.
E) highlight the recent history and successes of the organization.
29) Paradise Kitchen's strategic focus and plan section of the marketing plan contained three key
elements:
A) mission, goals, and core competency/sustainable competitive advantage.
B) mission, goals, and organizational structure.
C) executive summary, company description, and financial overview.
D) organizational structure, core competency/sustainable competitive advantage, and forecast of
potential profits.
E) organization's key players, organizational structure, and competency/sustainable competitive
advantage.
30) The qualitative mission statement focuses the activities of Paradise Kitchens for its
A) brands.
B) competitors.
C) regulators.
D) stakeholders.
E) ideas.
31) To the company's knowledge, Howlin' Coyote is known for being the only premium-quality
frozen ________ sold in U.S. grocery stores.
A) desserts
B) pizza
C) chili
D) sushi
E) waffles
32) It can be inferred from the Paradise Kitchens mission statement that the firm will most likely
use a(n) ________ strategy.
A) penetration pricing
B) above-market pricing
C) prestige pricing
D) specialty product pricing
E) basing point pricing
33) Which of the following goals uses parallel construction?
A) Make the best non-battery flashlight possible, make the brand name known in every
household in the United States, and make the flashlight the official flashlight of every state-
owned hospital in the United States.
B) To make the finest bicycles in the professional racing field, to attain sponsorship from at least
three top Olympic riders, and obtain a return on equity of at least 15 percent.
C) Enter three major markets in the next three years, maintain a market share above 20 percent,
while continuing to provide the best customer service according to industry polls.
D) To increase market share by at least 10 percent each year for the next five years, reduce
employee turnover by 20 percent within the next five years, and to obtain a return on equity of at
least 15 percent for each of the next five years.
E) Generate sales of $100 million, generate ROI of 20 percent, and maintaining selling costs at
10 percent of sales.
34) Which of the following statements regarding the use of photos in the body of a marketing
plan is most accurate?
A) Photos should always appear in black and white or they lose their effectiveness.
B) Photos should always appear in color, regardless of the additional cost, since the overall effect
is more professional that simply black-and-white images.
C) Photos should include a brief caption that ties them to the text and highlights the reason for
being included.
D) If a photo is important enough to be included in the body of a marketing plan, it should
require no further information.
E) Photos should never take up more than one-eighth of the page if they are used in the body of a
marketing plan rather than in an appendix.
35) For the benefit of its audience, Paradise Kitchens divided its goals into
A) product and process.
B) product and service.
C) internal and external.
D) employee and customer.
E) financial and nonfinancial.
36) To translate its core competencies into a sustainable competitive advantage, Paradise
Kitchens will work closely with key
A) lenders and venture capitalists.
B) suppliers and distributors.
C) advertising agencies and public relations firms.
D) federal and state regulators to import tariff free ingredients.
E) Hispanic spokespeople to get the word out.
37) Ideally, each numbered section should start ________ to improve readability.
A) with all capital letters
B) in a font size at least three points larger than the body of the text
C) on a new page
D) either capitalized and bolded or italicized and underlined
E) with a brief introduction of what will be discussed
38) Shorter tables or graphs
A) must start at the top of a new page so as not to create page break problems.
B) can be inserted anywhere in the page of text in a plan and do not have figure numbers.
C) should not be used since words would be more effective in describing the content than a table
or graph.
D) be at least two inches but not more than five inches high.
E) are more for style than for substance.
39) The effectiveness of a table is determined by its ability to
A) include every possible piece of information available.
B) catch the reader's attention with its design and sophistication.
C) create a powerful visual metaphor.
D) summarize a large amount of information in a short amount of space.
E) clarify difficult financial information or calculations.
40) The situation analysis section of a marketing plan is a snapshot to answer the question,
A) Where are we now?
B) What is the competition doing?
C) How will our organization change?
D) What is happening in the industry?
E) Where are we going?
41) The SWOT analysis section of a marketing plan identifies a company's
A) new technological innovations.
B) strengths, weaknesses, opportunities, and threats.
C) marketing program.
D) barriers to entry.
E) sustainable competitive advantages.
42) For readability and clarity, Paradise Kitchens presents its SWOT analysis section of a
marketing plan as a figure (Figure 1. SWOT Analysis for Paradise Kitchens). It's divided into
two sections:
A) Company Analysis; Industry Analysis.
B) Internal Factors: Opportunities and Threats; External Factors: Strengths and Weaknesses.
C) Internal Factors: Strengths and Weaknesses; External Factors: Opportunities and Threats.
D) Financial Factors; Nonfinancial Factors.
E) Domestic Issues; Global Issues.
