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.
72. 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.
73. Refer to Scenario 2.1. The fact that Southwest Airlines has a history of being able to retain its employees is a
_____ in its SWOT analysis.
a. weakness
b. strength
c. threat
d. opportunity
e. obstacle
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
74. Refer to Scenario 2.1. In Southwest Airlines’ SWOT analysis, the rising gas prices are a(n) ____.
a. hindrance
b. strength
c. threat
d. weakness
e. opportunity
75. 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.
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
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 advertise 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.
76. Refer to Scenario 2.2. According to the BCG matrix, the hang-gliding and bungee jumping tours have been a
_____ for EXperience Limited.
a. star
b. cash cow
c. problem child
d. dog
e. question mark
77. Refer to Scenario 2.2. The fact that college enrollments have been increasing at a rapid rate over the past few
years is an example of _____.
a. an environmental factor
b. a strategic window
c. a marketing opportunity
d. a competitive advantage
e. a company strength
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
78. Refer to Scenario 2.2. The college students represent EXperience Limited’s _____.
a. internal customers
b. customer relationships
c. market share
d. market mix
e. target market
79. Through the process of strategic planning, a firm establishes an organizational mission and goals, corporate strategy,
marketing objectives, marketing strategy, and a marketing plan.
a. True
b. False
80. 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
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
81. 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
82. Marketing strategies should be established before marketing objectives are decided.
a. True
b. False
83. 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
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
84. A core competency is something a company does extremely well, which sometimes gives it an advantage over its
competition.
a. True
b. False
85. 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
86. 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
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
87. A long-term view, or vision, of what the organization wants to become is called a mission proclamation.
a. True
b. False
88. A firm’s organizational goals should be derived from its opportunities.
a. True
b. False
89. Opportunities refer to barriers that could prevent the company from reaching its objectives.
a. True
b. False
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
90. Cash cows are products with a dominant share of the market and good prospects for growth.
a. True
b. False
91. In the context of the strategic planning process, the target market must be chosen after the organization adapts its
marketingmixtomeetthecustomers’needsandpreferences.
a. True
b. False
92. Marketing objectives state what is to be accomplished through marketing activities.
a. True
b. False
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
93. A marketing objective need not be consistent with the firm’s overall objectives.
a. True
b. False
94. Corporate strategy determines the means for utilizing resources in the functional areas of business to reach the
organization’s goals.
a. True
b. False
95. In the context of the strategic planning process, corporate strategic planners focus on dimensions such as
competition, diversification, differentiation, environmental focus, and interrelationships among business units.
a. True
b. False
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
96. A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.
a. True
b. False
97. 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
98. In the context of the BCG matrix, dogs refer to products that have a dominant share of the market but low
prospects for growth and typically generate more cash than is required to maintain market share.
a. True
b. False
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
99. The BCG analytical approach is more of a diagnostic tool than a guide for making strategy prescriptions.
a. True
b. False
100. Marketing managers can classify a firm’s products into four basic types: stars, cash cows, dogs, and question
marks.
a. True
b. False
101. Stars are profitable products that usually generate more cash than is required to maintain share.
a. True
b. False
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
102. Cash cows are market leaders that grow rapidly with substantial reported profits.
a. True
b. False
103. Question marks have a dominant share of the market, but low prospects for growth.
a. True
b. False
104. The long-term health of the firm depends solely on having products that generate cash and provide acceptable
reported profits.
a. True
b. False
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
105. When properly implemented, a good marketing strategy enables a company to achieve its business-unit and
corporate objectives.
a. True
b. False
106. In the context of evaluating marketing strategies, when performance standards exceed actual performance, a
marketing strategy will be deemed effective.
a. True
b. False
107. Marketing mix decisions must have two characteristics: consistency and timeliness.
a. True
b. False
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
108. Each of the marketing mix elements must work together with the others.
a. True
b. False
109. A sustainable competitive advantage is one that cannot be copied by a firm’s competitors.
a. True
b. False
110. 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
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
111. Performance standards are established as part of the marketing control process.
a. True
b. False
112. The primary way to reduce the discrepancy between planned and actual performance is to rewrite the performance
standard.
a. True
b. False
113. A marketing strategy that successfully generates sales may not be deemed effective if it is extremely costly.
a. True
b. False
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
114. The first component of a marketing plan is the SWOT analysis.
a. True
b. False
115. The marketing plan of an organization is not made accessible or shared with all its key employees.
a. True
b. False
116. Marketing planning and implementation are closely linked in successful businesses.
a. True
b. False
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies
117. Marketing plans may be developed for strategic business units, product lines, individual products or brands, or
specific markets.
a. True
b. False
Chapter 2 – Planning, Implementing, and Evaluating Marketing Strategies