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a. Decentralized
b. Centralized
c. Rigid
d. Intended
e. Realized
103. SUP ATX is the largest stand-up paddle board maker based in Austin, Texas, that markets their products directly to
consumers via their website. SUP ATX mission is to spread the sport of stand up paddle surfing from oceans to lakes and
rivers around the world. Stand up paddle surfing or boarding is a relatively new sport but is growing due to the relatively
low price of the boards, ease in transportation and storage of the boards as well as the sport providing a fun way to
exercise and allow users to enjoy the outdoors. Which of the following would be the “best” target market for SUP ATX
paddle board products?
a. active adults aged 24 to 40 who enjoy outdoor recreational activities
b. high school students aged 15 to 18 who are looking for alternatives to traditional sports activities
c. sporting goods retailers such as Dicks Sports who are seeking new products to sell in their retail stores
d. professional surfers who compete in surfing competitions across the globe
104. Morris Business Products Co. distributes its business supply products through direct sales personnel. Recently, the
company has established a monthly sales quota of $150,000 for each sales representative. This is a(n)
a. marketing control process.
b. evaluation of actual performance.
c. evaluation standard.
d. sales analysis.
e. performance standard.
105. In many cases companies who enter a market after innovative products have been introduced can achieve long-term
competitive advantages by continuing to develop a better mousetrap. For example, VisiCalc was the first company to
introduce a desktop spreadsheet program but Lotus Notes cornered a large market share when it introduced the 1-2-3
program. Today, however, Microsoft’s Excel is the dominant spreadsheet software program and has continued to endure
due to the popularity of the Microsoft Office Suite of products. VisiCalc possessed a ___________ advantage while
Microsoft enjoyed a ___________ advantage.
a. first-mover; late-mover
b. late-mover; first-mover
c. sustainable; unsustainable
d. economic; technological
106. Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the
firm. In this example, Duracell is a(n) ____ unit of Kraft.
a. strategic business
b. marketing
c. dependent
d. independent
e. corporate
107. You want to include a detailed marketing organizational chart in the company marketing plan.
Which of the following sections of the marketing plan will you include this chart in?
a. SWOT Analysis
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b. Performance Evaluation
c. Marketing Implementation
d. Marketing Objectives
e. Environmental Analysis
108. You are writing an Environmental Analysis for the marketing plan for your company. You were given the following
master list of environmental factors that should be addressed in the plan:
1. Foreign exchange rates
2. Trade policy
3. Population growth rates
4. Tax policy
5. Environmental regulations
6. Production automation trends
7. Health and medical trends
You are responsible for the subsection dealing with political and regulatory factors that will impact your company’s
marketing strategies.
Which of the factors from the master list of environmental factors will you include in your subsection?
a. Foreign exchange rates; Trade policy; Population growth rates
b. Trade policy; Tax policy; Environmental regulations
c. Tax policy; Environmental regulations; Health and medical trends
d. Trade policy; Health and medical trends; Tax policy
e. Environmental regulations; Foreign exchange rates; Tax policy
109. Based on the work by the Boston Consulting Group, products with a dominant share of the market and good
prospects for growth are
a. dogs.
b. cash cows.
c. stars.
d. question marks.
e. pigs.
110. The reputation and well-known brand name of Rolex watches represents a ____ for Rolex.
a. competitive advantage
b. core competency
c. market opportunity
d. strategic window
e. pricing strategy
111. J.C. Penney is presently involved in a process of assessing marketing opportunities and resources, determining
marketing objectives, re-defining marketing strategies, and developing guidelines for implementation and control. Thus,
J.C. Penney is involved in
a. strategic analysis.
b. marketing planning.
c. marketing management.
d. marketing.
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e. market organization.
112. The percentage of a market which actually buys a specific product from a specific company is referred to as that
product’s
a. strategic segment
b. target market
c. market share
d. market cut
e. market position
113. The first step in the strategic performance evaluation is to
a. take corrective action.
b. reduce the difference between actual and desired standards.
c. evaluate actual performance.
d. compare actual performance and standards.
e. establish performance standards.
114. Maureen Fauble is director of career services at a major Midwestern university and works with corporations who are
seeking recent college graduates to join their firm. Maureen is interested in attracting DePuyOrthopaedics, Inc., which is a
division of Johnson & Johnson to recruit entry-level marketing and sales representatives. Maureen has received very
favorable word-of-mouth communication from alumni about DePuyOrthopaedics and employees are extremely satisfied
with the company’s culture and feel empowered to make decisions. In addition, they report that they are given a high
degree of flexibility and autonomy, which enables them to quickly respond and adapt rapidly to changing customer needs.
It’s likely that DePuyOrthopaedics has implemented a ____________ organizational structure.
a. decentralized
b. centralized
c. controlled
d. paternal
115. Which of the following is not a purpose of the marketing plan?
a. Communicate internally with employees
b. Assign tasks and responsibilities for implementation
c. Specify the allocation of resources
d. Monitor the performance of a marketing strategy
e. Serve as a contract with the customer
116. The Texas Pitt Barbecue Corporation has conducted a SWOT analysis of its competition, and sees a marketing
opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products
it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a
profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing
plan, which is ____.
a. specifying how they will achieve their marketing objective
b. how they will address the competition’s prices
c. coming up with a quantitative measure for their objective
d. developing a qualitative measure for their objective
e. assessing their weaknesses
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117. Wilson Siding and Window Company is a closely held family-owned company that sells exterior siding and
windows to businesses and consumers. The business-to-business market is designed to serve a variety of businesses by
replacing wood siding with vinyl siding. In addition, they can customize windows to match any size that a business or
household consumer might desire. Wilson Siding and Window employs approximately 35 individuals who report directly
to the company president and owner, Max Wilson. Max learned about managing and leading the company from his father,
who was a strict but friendly man. Max has developed a reputation as a shrewd business person who believes that his way
is the right way. He sets all company policies, standards, and expects all employees to follow the rules and standards he
has implemented. Employees enjoy the work environment at Wilson Siding and Window Company but are sometimes
frustrated because they’re not able to quickly respond to customer requests or changes in their needs and are not
empowered to make decisions. It’s likely that Wilson Siding and Window Company has implemented a ____________
organizational structure.
a. centralized
b. decentralized
c. controlled
d. paternal
118. In a traditional organization, marketing decisions are likely to be
a. very decentralized.
b. centralized at the top levels of the organization.
c. made by frontline employees.
d. made by frontline managers.
e. made only by the CEO.
119. Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.
a. nonsustainable competitive
b. sustainable marketing
c. sustainable control
d. sustainable implementation
e. sustainable competitive
120. The Kingtel Corporation is expanding operations into countries outside the United States. To improve local
managers’ responsiveness to local conditions, Kingel’s senior management has decided to delegate decision-making
authority further down the chain of command. Acme is
a. building a marketing-oriented organization.
b. empowering employees.
c. centralizing.
d. decentralizing.
e. making a serious error.
121. Harley-Davidson’s Harley Owner’s Group (HOG) helps to foster strong relationships between riders and their
motorcycles, giving it a(n) ____ over other motorcycle manufacturers.
a. controllable advantage
b. uncontrollable competitive advantage
c. sustainable marketing advantage
d. effective competitive advantage
e. sustainable competitive advantage
122. An expected level of performance against which actual performance can be compared is a
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a. standard performance.
b. standard of excellence.
c. step in sales analysis.
d. performance standard.
e. corrective standard.
123. Marketing managers can take each of the following corrective actions for reducing a discrepancy between established
performance standards and actual performance except
a. improving actual performance.
b. reducing the performance standard.
c. totally changing the performance standard.
d. changing the marketing strategy.
e. coordinating a new step in performance analysis.
124. A strategic window is
a. the right combination of circumstances and timing that permit an organization to take action to reach a particular
target market.
b. what determines the factors that are most important in making a market attractive or strong.
c. customers’ requirements or desired benefits.
d. a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a
firm competing in that market.
e. the process that seeks information about events and relationships in a company’s outside environment.
125. Your quarterly strategic planning meeting will be held next month. You will schedule all the brainstorming and
discussion activities for the meeting in a sequence and structure consistent with the hierarchy of the traditional strategic
planning process.
Which of the following sequence of activities should you schedule in order to be most consistent with the hierarchy of the
traditional strategic planning process?
a. 1: Develop functional area goals and objectives; 2: Complete a SWOT analysis for the company; 3: Develop
business unit strategies; 4: Develop the company’s mission and goals.
b. 1: Develop the company’s mission and goals; 2: Develop business unit strategies; 3: Complete a SWOT analysis
for the company; 4: Develop functional area goals and objectives.
c. 1: Complete an economic environment analysis; 2: Develop the company’s mission and goals; 3: Develop
business unit strategies; 4: Complete a SWOT analysis for each business unit; 5: Develop functional area goals and
objectives.
d. 1: Complete a SWOT analysis for the company; 2: develop the company’s mission and goals; 3: Develop business
unit strategies; 4: Develop functional area goals and objectives.
e. 1: Develop the company’s mission and goals; 2: Develop business unit strategies; 3: Complete an economic
environment analysis; 4: Develop functional area goals and objectives.
126. You are meeting to discuss the proper categorization of marketing strategy costs in the monthly department budget
performance report. You are especially interested in making sure the fixed and variable costs are properly categorized.
The major costs associated with the marketing strategy are as follows:
A. Salesperson commissions
B. Office space rent
C. Office equipment rental
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D. Product raw materials
E. Product manufacturing labor
With respect to the variable or fixed nature of these costs,
a. we know that product raw materials and office space rent are both fixed costs.
b. we know that salesperson commissions, product raw materials, and product manufacturing labor costs are all
variable costs.
c. we know that office equipment rental, office space rent and sales commissions are all fixed costs.
d. we know that office space rent is a variable cost.
e. we know that product manufacturing labor is a fixed cost.
127. Successful business organizations should take actions to convert internal weaknesses into ____ and external threats
into ____.
a. opportunities; core competencies
b. core competencies; strengths
c. opportunities; strengths
d. strengths; core competencies
e. strengths; opportunities
128. A ____ is created when a company matches its core competency to opportunities it has discovered in the
marketplace.
a. market opportunity
b. market requirement
c. competitive advantage
d. strategic window
e. competitive opportunity
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.
129. Refer to Scenario 2.1. Maintaining the current culture of “fun” for Southwest Airlines’ employees is most likely a(n)
a. marketing strategy.
b. marketing objective.
c. organization resource.
d. environmental force.
e. overall organizational objective.
130. A SWOT analysis focuses on an organization’s:
a. Strengths, Weaknesses, Opportunities, and Threats.
b. Strengths, Weaknesses, Opportunities, and Transformational Innovations.
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c. Sustainability, Weaknesses, Organics, and Threats.
d. Strengths, Workers, Opportunities, and Transactions.
e. Sustainability, Weaknesses, Opportunities, and Transactions.
131. According to the Boston Consulting Group, marketers may classify their products as all of the following except
a. dogs.
b. cash contributors.
c. question marks.
d. stars.
e. cash cows.
132. After determining that consumers had concerns about fat and carbohydrates, Sardino’s Pizza began offering a low-fat,
low-carb pizza product. The creation of this new product was the result of
a. a competitive advantage.
b. a well-defined mission statement.
c. good strategic planning.
d. a market opportunity.
e. opportunistic behavior.
133. A marketing plan
a. is characteristic of production-oriented firms and other mass producers.
b. provides a framework for implementing and controlling marketing activities.
c. always increases the marketing manager’s operating costs.
d. produces plans that are short term in orientation.
e. restricts the marketing manager’s future options.
134. A marketing plan document usually begins with a(n)
a. executive summary.
b. introduction to the company’s marketing objectives.
c. summary of current performance as compared with past performance.
d. situation analysis.
e. opportunity and threat analysis.
135. The marketing plan is
a. a plan of all aspects of an organization’s business strategy.
b. written differently for each SBU.
c. a written document detailing activities to be performed to implement and control marketing actions.
d. designed to specify not only marketing, but all other functional areas of business activities as well.
e. updated only periodically.
136. Buddy’s Smokin’ Bar-B-Que restaurant opened in 2014 and struggled to build a customer base for lunch, dinner, or
event catering options. When the owners were planning the restaurant, they had projected they would sell 60 to 80 lunches
daily with an average lunch price of $8.00 They believed that dinner business would be higher and they would also benefit
from their approved liquor license, which could generate between 100 and 120 plates per day at $12 per customer.
However, the actual daily lunch and dinner totals were much less and the owners were barely breaking even and
wondered if they should close the business. However, Buddy’s restaurant began an aggressive marketing effort, offered
lunch and dinner specials and promoted the restaurant as a family-friendly place where everyone could enjoy fresh,
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smoked bar-b-que meats. As a result of their marketing efforts, the restaurant is selling out of its product almost daily and
has built a take-away business as well. They are selling 100 lunches daily with an average price of $10 and approximately
200 dinner plates at $15. The restaurant is pleased with the revenue stream they’re generating from the restaurant and
considering opening a second location or adding space to accommodate more customers at the existing location. Using the
data regarding number of plates sold and the average order amount generated, what kind of analysis can the owners of the
restaurant perform to assist them in understanding their business opportunities?
a. sales analysis
b. cost analysis
c. advertising analysis
d. engagement analysis
137. Which of the following is not a component of a marketing plan?
a. Environmental analysis
b. Marketing strategies
c. Product
d. Executive summary
e. Marketing implementation
138. Which of the following statements is incorrect?
a. Of the three levels of planning, corporate strategy is the broadest.
b. Business-unit strategy should be consistent with the corporate strategy.
c. Marketing strategy should be consistent with both the business-unit and corporate strategies.
d. Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.
e. Strategic planning begins at the corporate level and proceeds through business-unit and marketing levels.
139. Mama Vertalli’s Bakery is a family-owned business with over $1 million in annual revenues and six locations. At
Mama Vertalli’s, decisions are sometimes slow in coming and top-level managers delegate very little authority to lower-
level employees. Mama Vertalli’s is a(n) ____ organization.
a. centralized
b. decentralized
c. empowered
d. marketing-oriented
e. total quality management
140. A group that has the willingness, ability, and authority to buy a product is a
a. market.
b. consumer.
c. strategic business unit.
d. business customer.
e. strategic window.
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
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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.
141. Refer to Scenario 2.1. In Southwest Airlines’ SWOT analysis, the rising gas prices are a(n) ____, while the fact that
other airlines are charging for all checked baggage may create a(n) ____.
a. threat; strength
b. weakness; strength
c. threat; opportunity
d. weakness; opportunity
e. opportunity; strength
142. Describe the two major methods for evaluating the actual performance of marketing strategies.
143. Compare and contrast corporate strategy and marketing strategy.
144. Discuss the different ways of organizing the marketing unit.
145. In what ways does having a mission statement help an organization achieve its goals?
146. Describe the two major components of marketing strategy. What should marketing managers consider when
developing marketing strategy?
147. Define the four product categories used in the Boston Consulting Group (BCG) product-portfolio analysis.
148. Describe the process of strategic planning. How does this process help marketing managers?
149. How does a firm use a market opportunity to reach a particular target market?
150. Discuss how a firm’s orientation is related to the development of its strategic plan.
151. Discuss the creation of a marketing plan. What are the major components of a marketing plan?
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Answer Key
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