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Indicate whether the statement is true or false.
1. A competitive advantage is created when a company matches its core competency to the opportunities it has discovered
in the market.
a. True
b. False
2. The Boston Consulting Group’s model serves as a diagnostic tool to spotlight strategic business units that have an
opportunity to grow rather than as a guide for making strategy prescriptions.
a. True
b. False
3. Marketing plans may be developed for strategic business units, product lines, individual products or brands, or specific
markets.
a. True
b. False
4. When properly implemented, a good marketing strategy enables a company to achieve its business-unit and corporate
objectives.
a. True
b. False
5. The long-term health of the firm depends solely on having products that generate cash and provide acceptable reported
profits.
a. True
b. False
6. Corporate strategic planners focus on dimensions such as competition, diversification, differentiation, environmental
focus, and interrelationships among SBUs.
a. True
b. False
7. Each of the marketing mix elements must work together with the others.
a. True
b. False
8. A marketing objective need not be consistent with the firm’s overall objectives.
a. True
b. False
9. Stars are profitable products that usually generate more cash than is required to maintain share.
a. True
b. False
10. Question marks exist at a cost disadvantage and exhibit few opportunities for growth at a reasonable cost.
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a. True
b. False
11. Marketing planning establishes an organizational mission and goals, corporate strategy, marketing objectives, and a
marketing strategy.
a. True
b. False
12. Marketing managers can classify a firm’s products into four basic types: stars, cash cows, dogs, and question marks.
a. True
b. False
13. In a traditional organization, marketing decisions are generally centralized at the top levels of the organization.
a. True
b. False
14. A firm’s organizational mission should be derived from its goals.
a. True
b. False
15. The Boston Consulting Group approach is based on a philosophy that a product’s market growth rate and its market
share relative to competition should be helpful in determining its marketing strategy.
a. True
b. False
16. Marketing mix decisions must have two characteristics: consistency and timeliness.
a. True
b. False
17. The analysis of strengths and weaknesses focuses on internal factors that give the organization certain advantages and
disadvantages in meeting the needs of its target markets.
a. True
b. False
18. An organization’s goals focus on the ends or results that the firm seeks.
a. True
b. False
19. Corporate strategy determines the means for utilizing resources in the functional areas of business to reach the
organization’s goals.
a. True
b. False
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20. A strategic window results from the right combination of circumstances and timing, allowing a firm to take action to
reach a particular target market.
a. True
b. False
21. The strategic performance evaluation does not monitor the activities of external sources of marketing assistance.
a. True
b. False
22. Through the process of strategic planning, a firm establishes an organizational mission and goals, corporate strategy,
marketing objectives, and a marketing strategy.
a. True
b. False
23. A marketing strategy is a written document that specifies the activities to be performed to implement and control a
firm’s marketing activities.
a. True
b. False
24. A core competency is something a firm does extremely well-sometimes so well that it gives the company an
advantage over its competition.
a. True
b. False
25. Marketing objectives should be stated in such a way that the degree of accomplishment can be measured accurately.
a. True
b. False
26. Marketing planning consists of two major components: marketing objectives and a control process.
a. True
b. False
27. A sustainable competitive advantage is one that cannot be copied by a firm’s competitors.
a. True
b. False
28. Firms that truly adopt the marketing concept develop a distinct organizational culture based on a shared set of beliefs
that makes customers’ needs the pivotal point of the firm’s decisions about strategy and operations.
a. True
b. False
29. Marketing objectives state what is to be accomplished through marketing activities.
a. True
b. False
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30. A long-term view, or vision, of what the organization wants to become is called a mission proclamation.
a. True
b. False
31. Cash cows are market leaders that are growing fast, with substantial reported profits.
a. True
b. False
32. A firm’s organizational goals should be derived from its opportunities.
a. True
b. False
33. The decisions made in creating a marketing mix are only as good as the organization’s understanding of the target
market.
a. True
b. False
34. It begins with the establishment of revision of an organization’s mission and goals. The strategic planning process
begins with a detailed analysis of the organization’s strengths and weaknesses and the identification of opportunities and
threats within the marketing environment.
a. True
b. False
35. A market is a group of individuals and/or organizations that have needs for products in a product class and have the
ability, willingness, and authority to purchase these products.
a. True
b. False
36. The primary way to reduce the discrepancy between planned and actual performance is to rewrite the performance
standard.
a. True
b. False
37. Marketing planning and implementation are inextricably linked in successful businesses.
a. True
b. False
38. Performance standards are derived from marketing objectives that are set while developing the marketing strategy.
a. True
b. False
39. Marketing strategies should be established before marketing objectives are decided.
a. True
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40. A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
Scenario 2.1
Use the following to answer the questions.
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company.
Employees have been known to dress up in costume on an airplane, engage in “games” with the passengers, and generally
provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to
maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage
and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low
through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical
flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the
country. Southwest is known for its low fares, its dependability, and its on-time flights.
41. Refer to Scenario 2.1. Southwest’s low fares, dependability, and its on-time flights represent its
a. competitive advantage
b. marketing opportunity
c. marketing plan
d. marketing objectives
e. total quality management
42. A market opportunity results from
a. the right combination of circumstances and timing that permits an organization to take action to reach a particular
target market.
b. monitoring the firm’s capabilities.
c. an increase in market share and profits.
d. an assessment of environmental forces.
e. technological determinism.
Scenario 2.2
Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as
hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited’s owner, has just finished
developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming
year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the
majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various
tourist locations. He wants to expand his skydiving and motocross tours, but isn’t sure whether or not the expansion will
be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee
jumping vacation with his company.
43. Refer to Scenario 2.2. According to the BCG matrix, the hang-gliding and bungee jumping tours have been a ____ for
EXperience Limited, while the skydiving and motorcross tours represent a ____.
a. star; dog
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b. cash cow; question mark
c. cash cow; star
d. star; cash cow
e. star; question mark
44. CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control
its marketing activities. This document is called the
a. profit plan.
b. marketing program.
c. strategic market program.
d. strategic business plan.
e. marketing plan.
45. John Deere’s strong name recognition and solid customer demand for its farm and garden equipment are two elements
of the firm’s
a. strengths.
b. opportunities.
c. weaknesses.
d. threats.
e. strategies.
46. ____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance,
research and development, and human resources to achieve the organization‘s goals.
a. Corporate
b. Business-unit
c. Marketing
d. Mission statement
e. Marketing mix
47. Managers at the Longshore Corporation are engaged in a complex process of revising their organization’s mission and
goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This
process is called
a. marketing planning.
b. strategic planning.
c. marketing strategy.
d. corporate strategy.
e. strategic business planning.
48. All marketing mix decisions must have two characteristics: ____ and ____.
a. consistency; flexibility
b. consistency; rigidity
c. formality; flexibility
d. variability; flexibility
e. formality; rigidity
49. The following passage is an often-expressed critique of one of the two types of decision-making structures:
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Another disadvantage of this structure is that the organization may become fragmented. Business units may lose their
sense of team spirit and cooperation. Some business units may put their own interests ahead of those of the company as a
whole. Innovative ideas that once spread through the company quickly may now remain within individual business units.
Which one of the following decision-making structures is this critique referring to?
a. Centralized organizational structure
b. Remote organizational structure
c. Functional organizational structure
d. Process organizational structure
e. Decentralized organizational structure
50. An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in
meeting the needs of its target markets.
a. opportunities and threats
b. market opportunities
c. strengths and weaknesses
d. activities and responsibilities
e. organizational resources
51. Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other
resources is known as a
a. profit entity.
b. strategic business unit.
c. marketing program.
d. small business.
e. diversified corporation.
52. Sami Poole recently graduated from an East Coast University and has joined a small start-up based in New York City.
One of his first assignments is to work collaboratively with other members of the marketing team to draft the marketing
plan for the next fiscal year. Sami is highly skilled in conducting secondary research and as an alumnus of his university;
he continues to have complimentary access to the university’s library resources. He’s now realizing how important data
analysis is to firms and is glad he took a marketing research course. Sami is utilizing the library resources to uncover
information about a variety of external factors that could provide opportunities or threats and is exploring such factors as
competitive, economic, political, legal, regulatory, technological, and sociocultural. Which section of the marketing plan
would be most appropriate for the information that Sami is obtaining through secondary market research?
a. environmental analysis
b. executive summary
c. marketing objectives
d. SWOT analysis
Scenario 2.1
Use the following to answer the questions.
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company.
Employees have been known to dress up in costume on an airplane, engage in “games” with the passengers, and generally
provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to
maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage
and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low
through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical
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flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the
country. Southwest is known for its low fares, its dependability, and its on-time flights.
53. Refer to Scenario 2.1. The fact that Southwest Airlines has a history of being able to retain its employees is a(n) ____
in its SWOT analysis. This low turnover creates more knowledgeable and satisfied employees, a potential _______.
a. weakness; opportunity
b. strength; competitive advantage
c. threat; market opportunity
d. opportunity; competitive advantage
e. strength; market opportunity
54. Realizing an increase in both the number of consumers who are environmentally-conscious and the number of
consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles.
This is an example of identifying and capitalizing on a ____ while the strategic window is open.
a. marketing mix
b. market opportunity
c. objective
d. requirement
e. goal
Scenario 2.2
Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as
hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited’s owner, has just finished
developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming
year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the
majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various
tourist locations. He wants to expand his skydiving and motocross tours, but isn’t sure whether or not the expansion will
be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee
jumping vacation with his company.
55. Refer to Scenario 2.2. The college-aged student represents EXperience Limited’s ____, and the tours its operates
represent the ____ element of the marketing mix.
a. target market; distribution
b. customer relationships; distribution
c. cash cow; product
d. cash cow; distribution
e. target market; product
56. The American Eagle chain of retail stores has a reputation as one of the “coolest” brands according to Teen Research
Unlimited. Their stores feature quality merchandise, the latest trends, must-have styles, and the hottest deals for its
shoppers. The retail stores are typically found in shopping malls across the country and are comfortable places to shop—
featuring interesting displays, pop music, bright lights, and attractive displays. American Eagle’s selection of denim is the
most popular product appealing to both genders and has helped them achieve double-digit growth. Which of the following
would most likely be the “best” target market for American Eagle?
a. men and women aged 16 to 22
b. children aged 12 or under
c. men and women aged 40 to 60
d. active seniors—men and women aged 61 or older
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57. Which of the following is the most specific and detailed type of business strategy?
a. business-unit
b. marketing
c. corporate
d. customer service
e. tactical
58. One way that Honda evaluates its product and service level is by how well it ranks on the J. D. Power & Associates
Sales Satisfaction Survey. In doing so, Honda is
a. controlling marketing activities.
b. taking corrective action.
c. empowering its employees.
d. evaluating actual performance.
e. setting performance standards.
59. The director of marketing for 3M tapes tells the rest of the management team, “When it comes to our transparent
packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding
market.” This strategy indicates that the packaging tape unit falls into which one of the following classifications?
a. Problem child
b. Star
c. Cash cow
d. Dog
e. Question mark
60. Matt Lothamer is the supply chain manager for a large plastics manufacturing company. He is responsible for
procuring a wide variety of raw materials to be utilized in the manufacturing process of their plastic products. As part of
an annual quality control and expense analysis, Matt is reviewing the prices charged by the raw materials suppliers and
also seeking bids from competing suppliers to determine whether any savings could be realized. Matt is rewarded by the
company with bonuses if he’s able to reduce expenses and associated with the raw materials as this could lead to higher
profit margins on the products they manufacture. Matt knows that saving a few cents can make a dramatic difference since
they manufacture thousands of products at their state-of-the-art facility in Indiana. What type of analysis do you believe
Matt Lothamer can perform utilizing the data related to the prices charged by their current and prospective raw materials
suppliers?
a. cost analysis
b. sales analysis
c. advertising analysis
d. engagement analysis
61. You are preparing the marketing budget for the next fiscal year and the finance department staff has given you the
following guidelines to follow when estimating certain aspects of the budget:
1. You should allocate $250,000 for the total annual office expense for the marketing department.
2. For each marketing campaign that you plan to run, you should allocate $10,000 for supplies expense.
3. For each new product introduction that you plan to execute, you should allocate $5,000 for travel expenses.
4. You should allocate $25,000 for storage expenses for the entire year.
With respect to the costs included in the guidelines communicated from finance you can conclude that
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a. office expense and travel expenses are both fixed costs.
b. office expense and storage expenses are both variable costs.
c. storage expenses and travel expenses are both variable costs.
d. travel expenses and supplies expenses are variable costs.
e. office expense and supplies expenses are fixed costs.
62. You are leading the breakout session on developing the marketing strategy at your company’s strategic planning
conference. You have prepared discussion guidelines and rules of engagement to keep all attendees in the session focused
on the task at hand.
Your guidelines for developing the company’s marketing strategy
a. suggest that the marketing objectives be written in general terms so that the strategy and be change along the way
if necessary.
b. suggest that the target market should be identified before the marketing objectives are established.
c. suggest that the target market should be selected to fit the marketing mix.
d. suggest that the marketing objectives should be consistent with both the business-unit and the corporate strategies.
e. suggest that marketing should not worry about the strategy’s impact on company profits because the finance
department will handle that aspect.
63. Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted
upon properly are called
a. strengths.
b. market strategies.
c. market niches.
d. threats.
e. opportunities.
64. The Boston Consulting Group’s matrix is based on the
a. idea that a firm’s market share and market attractiveness are the important factors for a marketing strategy.
b. assumption that a firm’s actions have a profitable impact on marketing strategy.
c. business position and market attractiveness of the firm.
d. philosophy that a product’s market growth rate and its market share are important determinants of its marketing
strategy.
e. idea that a product’s market growth rate and market attractiveness determine the marketing strategy.
65. To formulate a marketing strategy, one must
a. identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.
b. develop a statement of what is to be accomplished through marketing activities.
c. develop plans for implementation and control.
d. develop an adequate marketing control process.
e. determine marketing objectives.
66. Which of the following statements about the marketing mix is incorrect?
a. The selection of the target market serves as the basis for the creation of the marketing mix.
b. Marketing strategy utilizes the marketing mix to develop a message that is consistent with the business-unit and
corporate strategies.
c. Each element of the marketing mix must be precisely matched with the needs of the target market.
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d. Once a marketing mix has been created for a particular target market, it cannot be changed until a new strategic
window opens.
e. Each element of the marketing mix must be precisely matched with the other elements of the marketing mix.
67. Emma is responsible for developing and implementing the marketing plan for a new type of walking shoe targeted
toward older women. Her responsibility includes making sure that the production and deliveries to the retail stores are
coordinated for this new product. In order for the marketing implementation to be successful, Emma should be sure the
needs of ____ customers are met.
a. the external
b. the internal
c. both the internal and external
d. the planned
e. both the planned and realized
Scenario 2.2
Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as
hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited’s owner, has just finished
developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming
year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the
majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various
tourist locations. He wants to expand his skydiving and motocross tours, but isn’t sure whether or not the expansion will
be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee
jumping vacation with his company.
68. Refer to Scenario 2.2. The fact that college enrollments have been increasing at a fast rate the past few years is an
example of ____ and creates a ____ for EXperience Limited.
a. an environmental factor; marketing opportunity
b. an environmental factor; strategic door
c. a company strength; marketing opportunity
d. a company strength; competitive advantage
e. a marketing opportunity; competitive advantage
69. Which of the following is a characteristic of a marketing objective?
a. It is consistent with both business-unit and corporate strategy.
b. It is a verbal agreement, not in writing.
c. It is not written in measurable terms.
d. It does not specify a time frame for its accomplishment.
e. It clearly identifies how marketing strategy will be implemented.
70. Resource deployment and coordination of functional areas of business are determined by
a. the mission statement.
b. corporate strategy.
c. business-unit strategy.
d. marketing strategy.
e. the marketing mix.
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71. Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them,
but he is still not considered to be a market for the product due to his lack of ____ to buy.
a. ability
b. willingness
c. authority
d. need
e. location
72. Trek Bicycles, Inc. is a manufacturer of bicycles and sells its bikes to retail outlets who serve the consumer market.
Trek bicycles are priced at $300 and over and are typically sold to consumers who are recreational riders or those aspiring
to compete in amateur cycling or triathlon events. Trek has enjoyed a steady stream of revenue from its line of road
bicycles which are more traditional, multispeed bicycles for those who enjoy long rides on city or rural roads. Sales of
road bikes are relatively stable and Trek does little to market the bikes to consumers since they have a dominant share of
the market. However, hybrid bikes represent a growing segment as younger consumers prefer the upright riding position
of the bikes and they can be utilized for either road or mountain biking. Trek is supporting the hybrid line of bikes with
extensive advertising in specialty magazines as well as social media marketing. Trek believes the category of hybrid bikes
is growing but their market position is not as strong as other manufacturers, such as Cannondale. Using the Boston
Consulting Group’s Growth Share Matrix, road bicycles would be categorized as __________ while hybrid bikes would
fall into the ___________ category.
a. cash cows; question marks
b. stars; question marks
c. cash cows; stars
d. dogs; stars
73. In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created
organic food departments within their large stores. The creation of these departments was a result of
a. a core competency
b. a market opportunity
c. its sales orientation
d. its distribution plan
e. a competitive advantage
74. You are the senior financial analyst supporting the marketing department in your company, and head of marketing has
asked you to come up with one performance metric that can be used to evaluate how effective each marketing campaign is
in terms of contribution to the firm’s profits. It should be a metric that can be easily used to compare different marketing
campaign against each other.
In response, you propose using:
a. A metric that takes the total new sales dollars generated by a campaign and divides it by the total office expense
of the campaign.
b. A metric that takes the total new sales dollars generated by a campaign and divides it by the total fixed cost of the
campaign.
c. A metric that takes the total new sales dollars generated by a campaign and divides it by the total variable cost of
the campaign.
d. A metric that takes the total new sales dollars generated by a campaign and divides it by the total supplies expense
for the campaign.
e. A metric that takes the total new sales dollars generated by a campaign and divides it by the total cost of the
campaign.
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75. When the right combination of circumstances occurs at the right time to allow an organization to take action toward a
target market, the firm is faced with a
a. market objective.
b. market requirement.
c. strategic market plan.
d. market opportunity.
e. corporate objective.
76. High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must
first select ____ which may be the most important decision they make in the planning process.
a. the promotional strategy
b. a distribution method
c. the pricing strategy
d. a target market
e. the desired profit margin
77. Apple has made a success from anticipating what consumers would want in new technological advances, convenience,
and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does
extremely well and may give a company an advantage over its competition.
a. benchmark
b. sustainable competitive advantage
c. core competency
d. strategic vision
e. marketing opportunity
78. Hallaway’s Corp.’s new shampoo, VS2, is faltering badly in the market. Hallaway’s marketing personnel are unsure
who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been
allocated. Hallaway Marketing Director Carolyn Willis said that the problem is that VS2 has the most poorly written ____
she has ever seen.
a. marketing plan
b. competitive plan
c. implementation plan
d. media schedule
e. product specification sheet
79. Marketers understand that the best marketing strategy in the world is doomed to fail if it is not properly implemented.
With that in mind, an effective implementation strategy
a. begins with identifying the activities to be performed, and ends with assigning responsibility for each activity to
one or more team members.
b. begins with identifying team members, and ends with assigning activities to each team member.
c. has an open-ended timetable to allow for unexpected delays.
d. organizes all activities in sequential order even if they can be performed simultaneously.
e. organizes tasks in order according to their level of complexity.
80. A competitive advantage exists when a
a. firm matches a core competency to opportunities it has discovered in the marketplace.
b. firm does marketing better than its competitors.
c. combination of circumstances and timing allow a firm to reach an attractive target market.
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d. firm observes a fit between the key requirements of a market and its own capabilities.
e. firm has a strong marketing plan.
81. When managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure
that ____ is an integral part of the process.
a. customer satisfaction
b. employee satisfaction
c. the best use of their marketing resources
d. the marketing mix
e. the marketing function
82. A firm’s unique symbols, personalities, and philosophies comprise its
a. corporate persona.
b. corporate identity.
c. corporate character.
d. CEO’s identity.
e. ethics.
83. Carmen Santiago is responsible for the traditional media marketing activities for her company and currently utilizes
billboards, radio advertising, newspaper advertising and cable TV advertising to communicate with customers, reinforce
customer relationships, and drive revenues and profitability. Carmen’s company has invested in a proprietary technology
scheduling program that allows her to plan the various media investments, messages, and timing over the year to match
the various media content to specific marketing objectives according to the days or months of the year that are most
appropriate for the her company. Therefore, the proprietary scheduling program assists Carmen with which of the
following marketing implementation activities?
a. establishing a timetable for implementation
b. coordinating marketing activities
c. communicating within the marketing unit
d. motivating marketing personnel
84. Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are
essential elements of which of the following parts of strategic planning?
a. Establishing marketing objectives
b. Coordinating marketing activities
c. Organizing marketing functions
d. Developing a marketing strategy
e. Planning marketing activities
85. Your company is holding its annual five-year strategic planning conference. The purpose of the conference is to
solidify the go-forward tactics and strategies to enable the company to compete effectively in its industry. You are
managing this conference and the various breakout sessions that will take place.
Consistent with the sequence of the traditional strategic planning process, the first breakout session should be
a. a session where the overall corporate strategy is developed.
b. a session where the marketing environment is analyzed.
c. a session where individual business-unit strategies are developed.
d. a brainstorming session to create SWOT analysis.
e. a session where the firm’s mission and goals are established or revised.
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86. The process of putting marketing strategies into action is called
a. marketing implementation.
b. marketing control.
c. marketing action.
d. marketing auditing.
e. the marketing action plan.
87. Gucci Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the
same image and proper display around the world. It also lowered prices on some items, like handbags, to be more
competitive. This illustrates a company working to develop a marketing mix that is both ____ and ____.
a. consistent; flexible
b. formal; flexible
c. variable; flexible
d. consistent; rigid
e. consistent; formal
88. You asked your stockbroker to consider buying some shares of Facebook, Inc. for your investment account. But, first
you want to review the summary points in the SWOT analysis the stockbroker’s firm did on the company. The following
summary points were listed in the SWOT analysis:
1. Facebook has a reputation as a market leader and it is quickly establishing a formidable brand loyalty amongst its
users.
2. Because of its position in the industry, it risks incurring high costs associated with creating and marketing new
products that are designed to perpetuate its industry leadership.
These summary points suggest
a. that Facebook’s products are Cash Cows.
b. that Facebook has a first-mover advantage.
c. that Facebook’s products are Question Marks.
d. that Facebook has a superior marketing strategy versus its peers.
e. that Facebook has a late-mover advantage.
89. Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance
standards, evaluating performance, and reducing the differences between actual and desired performance. These
marketing managers are engaged in
a. the systems design process.
b. strategic performance evaluation.
c. marketing systems design.
d. the marketing audit.
e. marketing evaluation.
90. Business decisions made in creating a marketing mix
a. are made before a target market is identified.
b. are unchangeable once they are agreed upon by management.
c. are only as good as the organization’s understanding of the needs of the target market.
d. usually take place when a strategic window is open.
e. must always be consistent with the firm’s opportunities.
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91. Safeway Foods Corporation is involved in identifying and analyzing a target market. The firm then develops a
marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example,
Safeway is creating a
a. corporate strategy.
b. target design.
c. mix strategy.
d. marketing strategy.
e. marketing tactic.
92. Amazon’s pricing, service, and continuing investment in improving its website with additional product offerings give
it a(n) ____ over many other retailers.
a. organizational opportunity advantage
b. strategic window
c. market requirement
d. market opportunity
e. competitive advantage
93. Megan knows that whether she decides to interact with her customers in person, by phone, online, Facebook, Twitter,
or by fax, that ____ should ultimately drive the marketing strategy.
a. marketing research
b. polite responsiveness
c. her customers
d. product availability
e. company goals
94. Zingerman’s Deli operates seven retail stores throughout the city. It plans to develop a new marketing plan to extend
its number of stores and operating hours. In developing this marketing plan, it has asked its employees for feedback on the
changes it plans to makes. In this case, the employees are Zingerman’s ____ customers.
a. external
b. extended
c. intended
d. internal
e. domestic
95. When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying
experience at the park hotels, this is an example of
a. implementing the marketing mix
b. maintaining their corporate identity
c. a marketing objective
d. a strategic plan
e. a mission statement
96. The ___________________ section of the marketing plan supplies information about the company’s current situation
with respect to the ________________, the target market, and the firm’s current objectives and performance.
a. executive summary; marketing concept
b. marketing implementation; marketing environment
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c. SWOT analysis; marketing concept
d. environmental analysis; marketing environment
e. marketing objectives; marketing concept
97. An organization’s business goals should be derived from its
a. mission statement.
b. strategic plan.
c. strategic business plan.
d. marketing plan.
e. marketing strategy.
98. Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant
market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is
required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified
as a _____
a. dog.
b. cash cow.
c. star.
d. cash contributor.
e. question mark.
99. According to the text, a market is defined as
a. a place to buy products.
b. the buyers of the products that a company develops, promotes, prices, and distributes.
c. the specific group of customers on whom an organization focuses its marketing efforts.
d. a group of individuals and/or organizations that have needs for products in a product class and have the ability,
willingness, and authority to purchase those products.
e. the percentage of a group of customers that actually buys a specific product from a specific company.
100. According to the Boston Consulting Group, question marks are characterized as products
a. having a small share of a growing market and requiring large amounts of cash to build market share.
b. generating more cash than is required to maintain share.
c. encompassing the greatest number of products.
d. existing at a cost disadvantage and revealing few opportunities for growth at a reasonable cost.
e. having substantial reported profits but needing a lot of cash to finance the rate of growth.
101. Starbucks provides training and support to its employees, including health care benefits. Through these ____ efforts
Starbucks is better able to deliver quality products and service to its customers.
a. internal management
b. extended marketing
c. intended marketing
d. external marketing
e. internal marketing
102. Sayed’s employer is currently developing a new marketing strategy. The top managers have developed the marketing
strategy and have given it to Sayed so that he can now develop an implementation plan. Sayed’s company will most likely
end up with which type of strategy?