Chapter 2—Planning, Implementing, and Evaluating Marketing Strategies
ESSAY
1. Describe the process of strategic planning. How does this process help marketing managers?
2. How does a firm use a market opportunity to reach a particular target market?
3. In what ways does having a mission statement help an organization achieve its goals?
4. Compare and contrast corporate strategy and marketing strategy.
5. Define the four product categories used in the Boston Consulting Group (BCG) product-portfolio
analysis.
6. Explain the different types of growth strategies that can be used by a strategic business unit.
7. Describe the two major components of marketing strategy. What should marketing managers consider
when developing marketing strategy?
8. Discuss the creation of a marketing plan. What are the major components of a marketing plan?
9. Discuss the different ways of organizing the marketing unit.
10. Discuss how a firm’s orientation is related to the development of its strategic plan.
SHORT ANSWER
11. Strategic planning is the process of ____________________.
MULTIPLE CHOICE
12. 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
13. 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.
14. 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
15. 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.
16. 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.
17. 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.
18. 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.
19. The strategic planning process begins with
a.
development of an organizational mission statement.
b.
development of marketing strategy.
c.
analysis of the marketing environment.
d.
analysis of target markets.
e.
development of a marketing plan.
20. AppleTM 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
AppleTM, 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
21. A market opportunity results from
a.
the right combination of circumstances and timing that permit 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.
22. 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.
23. 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
24. 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
25. 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.
26. 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.
27. 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.
d.
firm observes a fit between the key requirements of a market and its own capabilities.
e.
firm has a strong marketing plan.
28. 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
29. 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
30. 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
31. 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.
32. 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.
33. 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
34. 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
35. 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.
36. 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
37. 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.
38. 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.
39. 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.
40. 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.
41. ____ 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
42. 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.
43. 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
44. 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.
45. 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 these products.
e.
the percentage of a group of customers that actually buys a specific product from a
specific company.
46. 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
47. 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.
48. 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.
49. 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.
50. 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.
51. 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
52. 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
53. 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.
54. 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
55. 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
56. 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.
The elements of the marketing mix are sometimes referred to as marketing mix variables.
c.
Each element of the marketing mix must be precisely matched with the needs of the target
market.
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.
57. 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.
58. All marketing mix decisions must have two characteristics: ____ and ____.
a.
consistency; flexibility
b.
consistency; rigidity
c.
formality; flexibility
d.
variability; flexibility
e.
formality; rigidity
59. 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
60. Kinko’s partnership with FedEx has given it a _______ in the printing, faxing, and delivery market.
Since this partnership can’t be easily copied by the competition, it also represents a(an) ____
advantage.
a.
sustainable advantage; controllable
b.
competitive advantage; sustainable
c.
noncopyable advantage; sustainable
d.
effective advantage; controllable
e.
implementable advantage; sustainable
61. 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
62. 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
63. 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.
64. 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.
e.
market organization.
65. 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
66. 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
67. 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
68. 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
69. A marketing plan document usually begins with a(n)
a.
executive summary.
b.
introduction to the company’s marketing objectives.