38) The actions taken in the development of the marketing program, Step 3 of the planning
phase, include
A) selecting target markets.
B) identifying industry trends.
C) positioning the product.
D) finding points of difference.
E) developing the budget by estimating revenues, expenses, and profits.
39) The information needed for the marketing program, Step 3 of the planning phase, includes
A) positioning studies.
B) market-product grids with targets.
C) detailed plans to execute the marketing program.
D) projected future sales, expenses, and profits.
E) trends for industry and competitors.
40) The actions taken during the implementation phase of the strategic marketing process include
A) obtaining resources
B) selecting target markets
C) positioning the product
D) finding points of difference
E) developing the budget by estimating revenues, expenses, and profits
41) Which of the following information is used in the implementation phase of the strategic
marketing process?
A) marketing return on investment
B) a time-based agenda and an action item list
C) revenues associated with each point of market share
D) trends for industry and competitors
E) possible cannibalization effects on other products in the line
42) The information needed for the implementation phase of the strategic marketing process
includes
A) positioning studies.
B) market-product grids with target segments and product groupings.
C) organizational charts and marketing research reports.
D) detailed plans to execute the marketing program.
E) projected future sales, expenses, and profits.
43) The actions taken during the evaluation phase of the strategic marketing process include
A) finding points of difference.
B) executing the marketing program.
C) comparing results with plans to identify deviations.
D) tracking sales and revenues and compare with competitors.
E) developing the budget by estimating revenues, expenses, and profits.
44) The information needed for the evaluation phase of the strategic marketing process includes
A) positioning studies.
B) market-product grids with targets.
C) detailed plans to execute the marketing program.
D) tracking reports to measure results.
E) projected future sales, expenses, and profits.
45) Which of the following information is used in the evaluation phase of the strategic marketing
process?
A) action memos to correct problems and exploit opportunities
B) memos assigning responsibilities for actions and deadlines
C) revenues associated with each point of market share
D) trends for industry and competitors
E) possible cannibalization effects on other products in the line
46) During the planning phase of the strategic marketing process, the output report would take
the form of a(n)
A) action memo.
B) operating statement.
C) marketing dashboard.
D) marketing plan.
E) corrective action memo.
47) Which of the following output report would be associated with the planning phase of the
strategic marketing process?
A) performance reviews for key personnel
B) marketing plans that define goals and marketing mix strategies to achieve them
C) action memos that tell who is to do what by when
D) corrective action memos, triggered by comparing results with plans, often from the firm’s
marketing dashboards and metrics
E) sales reports using the firm’s marketing metrics and dashboards
48) Which of the following output reports is used in the implementation phase of the strategic
marketing process?
A) marketing plans that define goals
B) projections of sales and expenses
C) action memos that tell who is to do what by when
D) corrective action memos
E) tracking reports
49) Each phase of the strategic marketing process creates its own unique type of output report.
Which of the following would be associated with the implementation phase?
A) performance reviews for key personnel
B) corrective action memos, triggered by comparing results with plans, often from the firm’s
marketing dashboards and metrics
C) sales reports using the firm’s marketing metrics and dashboards
D) action memos that tell who is to do what by when
E) marketing plans that define goals with the pertinent marketing metrics and the marketing mix
strategies to achieve them
50) Which of the following output reports is used in the evaluation phase of the strategic
marketing process?
A) marketing plans that define goals
B) action memos that tell who is to do what
C) action memos that tell who is to do what by when
D) trend reports
E) corrective action memos
51) A survey of 800 executives led several researchers to suggest that “a company undertaking a
major strategic initiative to enhance its innovation and product-development capabilities” should
use two kinds of metrics: These consist of ________ metrics.
A) internal and external
B) corporate and stakeholder
C) output and input
D) sociocultural and competitive
E) economic and technological
52) A recent survey showed that firms used two different kinds of metrics when measuring
results and measuring efforts that go into new-product development. These consist of output and
input metrics. Which of the following is an output metric?
A) number of ideas or concepts in the pipeline
B) R&D spending as a percentage of sales
C) return on assets (ROA) for existing products or services
D) customer satisfaction with new products or services
E) number of R&D projects
53) A recent survey showed that firms used two different kinds of metrics when measuring
results and measuring efforts that go into new-product development. These consist of output and
input metrics. Which of the following is an input metric?
A) number of ideas or concepts in the new-product pipeline
B) number of new products or services launched
C) return on assets (ROA) for existing products or services
D) customer satisfaction with new products or services
E) revenue growth due to new products or services
54) Long-range marketing plans cover marketing activities
A) from one quarter to the next.
B) from six months to one year.
C) for a single year.
D) two to five years into the future.
E) 5 to 10 years into the future.
55) Marketing plans that cover marketing activities from two to five years into the future are
referred to as
A) marketing tactics.
B) marketing strategies.
C) generic marketing strategies.
D) short-term marketing plans.
E) long-range marketing plans.
56) Annual ________ are documents that deal with the marketing goals and strategies for a
product, product line, or entire firm for a single year.
A) production estimates
B) sales forecasts
C) budget projections
D) marketing plans
E) tactical forecasts
57) For Campbell’s, the annual planning cycle typically starts with a detailed marketing research
study of current users and ends after ________ weeks with the approval of the plan by the
division general manager.
A) 26
B) 32
C) 42
D) 48
E) 50
58) Regardless of the product or industry involved, the strategy that a firm adopts to achieve a
competitive advantage is referred to as
A) a generic business strategy.
B) an annual business plan.
C) a long-range marketing plan.
D) a marketing action program.
E) a synergy analysis framework.
59) A generic business strategy is a strategy that
A) seeks opportunities by finding the optimum balance between marketing efficiencies versus
R&D-manufacturing efficiencies.
B) can be adopted by any firm, regardless of the product or industry involved, to achieve a
competitive advantage.
C) describes an organization’s long-term course of action designed to deliver a unique customer
experience while achieving its goals.
D) states the organization’s function in society, often identifying its customers, markets,
products, and technologies.
E) helps a firm search for growth opportunities from among current and new markets as well as
current and new products.
60) According to Porter’s generic business strategy framework, there are two fundamental
alternatives a firm can use to seek a competitive advantage. One of these is to
A) become the high-cost producer within the markets in which it competes.
B) adopt a “me too” strategy to achieve competitive parity.
C) become the low-cost producer within the markets in which it competes.
D) state its function in society to differentiate itself from competitors.
E) differentiate itself from competitors by developing similar marketing programs.
61) Porter’s four generic business strategies involve combinations of ________ and a stress on
costs versus product differentiation.
A) organizational structure
B) degree of geographical distribution
C) investment in research and development
D) relative number of products in a product line
E) competitive scope or the breadth of the target markets
62) Porter’s four generic business strategies involve combinations of competitive scope or the
breadth of the target markets and
A) organizational structure.
B) degree of geographical distribution.
C) investment in research and development.
D) a stress on costs versus product differentiation.
E) relative number of products in a product line.
63) Which of the following is one of Porter’s four generic business strategies?
A) exclusivity
B) quality focus
C) differentiation
D) geographic span
E) service leadership
64) Porter’s four generic business strategies include all of the following except which?
A) cost leadership
B) quality focus
C) differentiation focus
D) cost focus
E) differentiation
65) In Porter’s generic business strategies shown in Figure 22-3 above, Box A refers to a
________ strategy.
A) cost leadership
B) quality focus
C) differentiation focus
D) cost focus
E) differentiation
66) In Porter’s generic business strategies shown in Figure 22-3 above, Box B refers to a
________ strategy.
A) cost leadership
B) quality focus
C) differentiation focus
D) cost focus
E) differentiation
67) In Porter’s generic business strategies shown in Figure 22-3 above, Box C refers to a
________ strategy.
A) cost leadership
B) quality focus
C) differentiation focus
D) cost focus
E) differentiation
68) In Porter’s generic business strategies shown in Figure 22-3 above, Box D refers to a
________ strategy.
A) cost leadership
B) quality focus
C) differentiation focus
D) cost focus
E) differentiation
69) In Porter’s generic business strategies shown in Figure 22-3 above, which box represents a
cost leadership strategy?
A) Box A
B) Box B
C) Box C
D) Box D
E) This is not one of Porter’s strategies.
70) In Porter’s generic business strategies shown in Figure 22-3 above, which box represents a
differentiation strategy?
A) Box A
B) Box B
C) Box C
D) Box D
E) This is not one of Porter’s strategies.
71) In Porter’s generic business strategies shown in Figure 22-3 above, which box represents a
cost focus strategy?
A) Box A
B) Box B
C) Box C
D) Box D
E) This is not one of Porter’s strategies.
72) In Porter’s generic business strategies shown in Figure 22-3 above, which box represents a
differentiation focus strategy?
A) Box A
B) Box B
C) Box C
D) Box D
E) This is not one of Porter’s strategies.
73) A cost leadership strategy refers to one of Porter’s generic business strategies that
A) involves controlling expenses and, in turn, lowering product prices targeted at a narrow range
of markets segments.
B) focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad
array of market segments.
C) requires products to have significant points of difference to target one or only a few market
segments.
D) requires products to have significant points of difference to charge a higher price while
targeting a broad array of market segments.
E) seeks opportunities by finding the optimum balance between marketing efficiencies versus
R&D-manufacturing efficiencies.
74) According to Porter’s four generic business strategies framework, a ________ strategy
focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of
market segments.
A) differentiation focus
B) cost focus
C) cost leadership
D) differentiation
E) supply focus
75) In the early 1900s, Henry Ford revolutionized the automobile industry by developing
production lines and mass-producing the Ford Model T automobile. By heavily reducing
production costs, Ford made the Model T affordable for the average American family. What
generic business strategy did Ford use to gain a competitive advantage in the automobile market?
A) a cost leadership strategy
B) a differentiation strategy
C) a cost focus strategy
D) a differentiation focus strategy
E) a limited production strategy