43) Which of the following does Paradise Kitchens consider a strength?
A) many lower-quality, lower-price competitors
B) lack the economies of scale of huge competitors
C) Consumer income is high and convenience is important to U.S. households.
D) more households “eating out” and bringing prepared take-out into the home
E) unique, high-quality, high-price products
44) Which of the following did Paradise Kitchens considered a weakness?
A) unique, high-quality, high-price products
B) many lower-quality, lower-price competitors
C) Technical breakthroughs enable smaller food producers to achieve the same economies of
scale available to large competitors.
D) Consumer income is high and convenience is important to U.S. households.
E) more households “eating out” and bringing prepared take-out into the home
45) Which of the following did Paradise Kitchens considered an opportunity?
A) unique, high-quality, high-price products
B) many lower-quality, lower-price competitors
C) lack the economies of scale of huge competitors
D) Consumer income is high and convenience is important to U.S. households.
E) more households “eating out” and bringing prepared take-out into the home
46) Which of the following did Paradise Kitchens considered a threat?
A) unique, high-quality, high-price products
B) many lower-quality, lower-price competitors
C) Technical breakthroughs enable smaller food producers to achieve many economies available
to large competitors.
D) Consumer income is high and convenience is important to U.S. households.
E) more households “eating out” and bringing prepared take-out into the home
47) Paradise Kitchens included a detailed figure to highlight its SWOT analysis. However,
A) there was no further explanation or written summary.
B) it was complemented by a short, but more in-depth, discussion of important points.
C) it failed to perform a situation analysis.
D) it did not include an industry analysis.
E) it also included a page-long explanation of each of the four factors.
48) The industry analysis section of a marketing plan provides perspective for information
regarding
A) the competition, the economy, and the company’s customers.
B) the company, the economy, and the company’s customers.
C) current trends, the competition, and the economy.
D) current trends, projected changes, competitive advantages.
E) the competition, the company, and the company’s customers.
49) Paradise Kitchens analyzed two key trends in its industry, which were
A) frozen foods and microwavable foods.
B) Mexican foods and South American foods.
C) eating out and take-out.
D) frozen foods and Mexican foods.
E) larger portion size and vegetarian meals.
50) Paradise Kitchens used external secondary data to provide evidence that there is a growing
trend in frozen prepared foods. According to its marketing plan, prepared frozen meals
accounted for around ________ percent of the total frozen food market.
A) 5
B) 17
C) 25
D) 32
E) 41
51) Paradise Kitchens uses external secondary data to reinforce its position that there is a
growing trend in the consumption of Mexican foods among U.S. households. According to its
marketing plan, Mexican foods, such as burritos, enchiladas, and tacos, are consumed in
approximately ________ percent of American households.
A) 35
B) 47
C) 66
D) 79
E) 86
52) According to the Paradise Kitchens marketing plan, two-thirds of American households
consume Mexican foods. This information is used to infer that there is a more favorable attitude
on the part of all Americans toward
A) Southwestern flavors and other regional foods in general.
B) spicy foods that include red chili peppers.
C) ethnic foods and regional cuisine.
D) bean products, cheese products, and tortillas.
E) heartier foods that are simple to prepare.
53) As part of its competitor analysis section of its marketing plan, Paradise Kitchens discussed
the chili market, which represents over $500 million in annual sales. Chili products fall into two
categories, which are
A) canned chili and dry chili.
B) frozen and canned chili.
C) pre-made and ready-to-make chili kits.
D) Mexican chili and “Americanized” chili.
E) chili with meat (con carne) and vegetarian chili with beans.
54) In terms of paragraph style, most readers prefer
A) block style because the appearance of the text is cleaner.
B) block style because it seems more professional.
C) block style because it lends itself better to financial documents.
D) indented paragraphs because they make longer documents easier to read.
E) indented paragraphs because they are more in keeping with professional business prose.
55) Paradise Kitchens uses the following type face/font style choices: Customer Analysis (B–
level: bold) and Customer Characteristics (C-level: bold/italics) to indicate that
A) Customer Characteristics and Customer Analysis are synonymous and can be used
interchangeably.
B) Customer Analysis is a subcategory of Customer Characteristics.
C) Customer Analysis is the name of a secondary source and Customer Characteristics refers
to internally collected primary data.
D) Customer Analysis is the formal marketing term and Customer Characteristics is the
layman’s term.
E) Customer Characteristics is a subcategory of Customer Analysis.
56) The company analysis section of a marketing plan provides details of the company’s
strengths and marketing strategies that will enable it to achieve its mission and goals. Paradise
Kitchens lists a major strength as
A) a stable financial base.
B) strong connections to the Hispanic community.
C) co-ownership in a chain of small grocery stores.
D) the professional food industry experience of the cofounders.
E) national “chili cook-off” titles.
57) The two key elements of the customer analysis section of the Paradise Kitchens marketing
plan are
A) customer characteristics plus health and nutrition concerns.
B) customer characteristics and target market demographics.
C) consumer demographics and geographical distribution.
D) consumer demographics and consumer psychographics.
E) consumer psychographics and consumer life style data.
58) In response to current trends regarding health and nutrition, competitors such as Don Miguel,
Mission Foods, El Monterey, and José Olé plan to offer or recently have offered more “carb-
friendly” and “fat-friendly” products. Paradise Kitchens’ response to this trend will be to
A) change its recipes to be even lower in carbs, fats, and salt than competitors’ products.
B) emphasize its products’ taste and authenticity rather than their nutritional characteristics.
C) emphasize the already healthy product characteristics as well as the product’s taste,
convenience, and flexibility.
D) emphasize the research findings that indicate that Americans are actually getting too little fat
in their diets, which makes them overeat in order to feel satisfied.
E) capitalize on the fact that its products have always been healthier than competitors’ products
and its plan to make meals even healthier.
59) The chances of success for a new product are significantly increased if
A) the company sets goals that both flexible and adaptable.
B) objectives are set for the product itself and target market segments are identified for it.
C) at least 25 percent of the initial budget includes advertising and promotional expenditures.
D) all initial production, distribution, and promotion are done in-house where management can
exert the greatest quality control.
E) the firm outsources those elements of production, distribution, or promotion in which it has
the least expertise.
60) In terms of its marketing and product objectives, which of the following statements regarding
Paradise Kitchens is most accurate?
A) Paradise Kitchens does not intend to expand its markets; rather, it will choose a market
penetration strategy through increasing same-store sales.
B) Howlin’ Coyote’s brand presence will be expanded through the addition of a totally new line
of ethnic desserts (flan, churros, sopapillas).
C) Paradise Kitchens will gradually phase out its food service division to allow for growth in its
new frozen dessert line.
D) Howlin’ Coyote’s brand presence will be expanded through the addition of new products in
the frozen foods section.
E) By the end of Year 5, Paradise Kitchens will expand its chili, salsa, burrito, and enchilada
business to reach small suburban and rural areas in the relatively untapped Midwest market.
61) The target markets section of a marketing plan identifies the specific ________ toward which
the company’s products are directed.
A) resellers
B) competitors
C) stakeholders
D) product groupings
E) niches
62) Paradise Kitchens describes its primary target market for Howlin’ Coyote products as
households with one to three people, where often both adults work, and with individual income
typically above ________ per year.
A) $25,000
B) $50,000
C) $75,000
D) $100,000
E) $250,000
63) To help buyers see the many different uses for Howlin’ Coyote Chili, the company has
A) sponsored a recipe contest with the first prize being a trip for two to Mexico.
B) used bundle pricing with a chili bowl and a selection of products.
C) sponsored a series of short but informative commercials on the Cooking Channel.
D) published small, full-color, illustrated pamphlets as buyer incentives to its wholesalers.
E) printed recipes on the inside of its packaging.
64) The greatest single factor in a new product’s failure is
A) a lack of advertising and promotion.
B) attempting to reach a target market that is too small.
C) too few competitors.
D) insignificant points of difference.
E) lack of experienced management.
65) All of the following are points of difference for Paradise Kitchens except which?
A) high-quality, authentic frozen chili
B) a combination of quick preparation and home-style taste
C) mild spices for the relatively inexperienced American palate
D) premium packaging
E) a range of chili product flavors
66) A(n) ________ helps communicate the company’s unique points of difference of its products
to prospective customers in a simple, clear way.
A) positioning strategy
B) market-product grid strategy
C) competition analysis
D) implementation strategy
E) situational analysis
67) According to its marketing plan, Paradise Kitchens is positioning itself in consumers’ minds
as
A) a moderately priced “homestyle taste of the Southwest” chili.
B) a low-cost “Mexican/American meld of flavors” for easy-to-prepare frozen entrees.
C) traditional “Taste of Mexico” that uses all organic ingredients in semiprepared meals.
D) very high-quality “gourmet Southwestern/Mexican” frozen entrees and desserts.
E) very high-quality “authentic Southwestern/Mexican tasting” chilies that can be prepared easily
and quickly.
68) The marketing program section of a marketing plan consists of
A) the four marketing mix elements.
B) the five environmental forces.
C) the financial forecasts for the industry and the company itself.
D) the target market identification and market segment selection.
E) the specific steps that will be taken to implement the plan.
69) The three key elements of the product strategy section in the Paradise Kitchens marketing
plan are
A) product benefits, product line, and product packaging.
B) product characteristics, branding strategies, and packaging.
C) unique product quality, product line, and branding strategies.
D) product line, unique product quality, and packaging.
E) product line, product brand, and product packaging.
70) A unique aspect of Paradise Kitchens’ packaging is that
A) the information is printed in English on one side and Spanish on the other.
B) the color of the box gets redder as the spices get hotter.
C) there is a Southwestern motif on the box instead of pictures of the product.
D) there is a thermometer strip that indicates when the product is properly thawed.
E) there are hidden figures created by the outlines of the chili beans for people to look at while
preparing the meal.
71) The price strategy section articulates the specific product price and the product’s price
position relative to ________. When appropriate, this section would include a ________.
A) potential substitutes; break-even analysis
B) the closest competition; situational analysis
C) industry standards; marginal analysis
D) the closest competition; diversification analysis
E) industry standards; break-even analysis
72) When appropriate and space permits, the price strategy section of a marketing plan would
include a
A) SWOT analysis.
B) situational analysis.
C) marginal analysis.
D) diversification analysis.
E) break-even analysis.
73) The three key elements of the promotion strategy section in the Paradise Kitchens marketing
plan are
A) quantity discounts, in-store demonstrations, a chili eating contest.
B) bundle pricing with a chili bowl, in-store demonstrations, and cents-off coupons.
C) a chili eating contest, in-store demonstrations, and cents-off coupons.
D) a contest for the best new slogan, a chili eating contest, and free taste tests at major grocery
chains.
E) in-store demonstrations, recipes, and cents-off coupons.
74) To help buyers see the many different uses for Howlin’ Coyote Chili, Paradise Kitchens
A) sponsored a recipe contest with the first prize being a trip for two to Mexico.
B) offered recipes printed on the back of the packages, at in-store demonstrations, and on
coupons.
C) used bundle pricing with a chili bowl and a selection of products.
D) televised a series of short but informative commercials on The Food Network cable TV
channel.
E) published small, full-color, illustrated pamphlets as buyer incentives to its wholesalers.
75) The place/distribution strategy section in the Paradise Kitchens marketing plan specified that
Howlin’ Coyote chili will initially be sold
A) to restaurants specializing in American cuisine.
B) through company-owned stores at outlet malls.
C) exclusively to mass merchandisers such as Walmart and Target.
D) through a food distributor, which in turn will sell directly to grocery stores.
E) online to consumers to bypass “the middleman”; the product will be shipped using packed dry
ice containers to keep it frozen during transportation.
76) The financial data and projections section of the marketing plan for Paradise Kitchens
includes two subsections
A) past sales revenues and current return on investment.
B) current return on investment and revenues projected for the next year.
C) current return on investment and revenues projected for the next five years.
D) past sales revenues and revenues projected for the next five years.
E) current debt and requested financing.
77) In the financial data and projections section of the Paradise Kitchens marketing plan, the
company chose to use a bar chart to present its past revenues (from 2010 to 2018) and a
numerical table for projected sales revenues (from 2019 to 2023). Paradise Kitchens used a bar
chart because
A) it made the lack of sales for the previous years look less dramatic.
B) the numerical sales figures were too difficult to interpret.
C) there was too much information to present in such a small physical space.
D) it could gloss over inconsistencies and anomalies.
E) it more clearly shows the company’s recent growth.
78) Paradise Kitchens proposes entering 17 new metropolitan markets in the next five years. For
this reason, the financial plan cannot use simple trend extrapolation. Instead, the forecasting
method used was
A) curvilinear trend extrapolation.
B) the lost horse technique.
C) a survey of buyers’ intentions.
D) a sales force survey.
E) direct forecasting.
79) The Paradise Kitchens chart in the organization section of its marketing plan reflects the
bare-bones organization structure of successful small businesses. The four key positions that
report to the president and CEO are the director of operations, director of sales, director of
finance and administration, and
A) vice president of marketing.
B) director of advertising and promotions.
C) director of research and development.
D) director of human resources.
E) senior distribution manager.
80) The implementation plan
A) describes the formation of the marketing program.
B) displays the projected financial results of the plan.
C) shows how the company will turn plans into results.
D) identifies how the firm will select its target markets and position its products.
E) analyzes its marketing opportunities and threats.
81) Charts are often used in the implementation section of a marketing plan to
A) prioritize marketing activities and set deadlines.
B) assign tactical marketing decisions and specify target markets.
C) prioritize marketing activities and assign resources.
D) specify target markets and assign resources.
E) set deadlines and assign responsibilities for tactical marketing decisions.
82) In which section of a marketing plan would you most likely expect to see a chart with
deadlines and assigned responsibilities?
A) strategy
B) organization
C) implementation
D) evaluation
E) appendix
83) If the following statement were included in the evaluation section of the Paradise Kitchens
marketing plan, “The speed of the rollout program will increase or decrease depending on
Paradise Kitchens’ performance in the successive metropolitan markets it enters,” what would be
the purpose of this statement?
A) to act as a contingency plan for alternative actions
B) to sidestep responsibility if things do not go according to plan
C) to create an open dialog for additional financial requests
D) to gloss over possible forecasting ambiguities
E) to avoid setting specific monetary goals
84) Which of the following statements regarding the appendices section of a marketing plan is
most accurate?
A) An appendix is not necessary if the body of the marketing plan was properly written.
B) An appendix should never have more than one page for every seven in the marketing plan.
C) The nature and number of pages in an appendix should directly relate to the plan’s purpose
and audience.
D) It is best to include a variety of representations (graphs, tables, photographs, diagrams, etc.)
rather than one single type (all graphs, all tables, etc.).
E) There is no need to label Appendices A, B, C, etc., unless each appendix represents an
entirely different product, product line, or division.