c.
summary of current performance as compared with past performance.
d.
situation analysis.
e.
opportunity and threat analysis.
70. 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.
71. 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?
a.
Decentralized
b.
Centralized
c.
Rigid
d.
Intended
e.
Realized
72. 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
73. 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
74. Alex has been analyzing information from his company’s database about customer purchasing habits,
since he is responsible for the managing the growth of the industrial supply division of his company.
Alex plans to use the information from his analysis to create new marketing strategies that will
develop and sustain relationships with those customers who are more profitable for the company.
What type of concept is Alex using?
a.
Customer relationship management
b.
Electronic data interchange
c.
Business-to-consumer marketing
d.
Strategic partnerships
e.
The marketing concept
75. Electronic marketing has greatly improved the ability of marketers to target individual customers. As a
result, many feel that marketing’s emphasis is shifting from share of market to share of
a.
budget.
b.
consumer online time.
c.
customer.
d.
awareness.
e.
commitment.
76. L.L. Bean uses technology to help them identify specific customers, establish interactive dialogues
with them to learn about their needs, and combine this information with their purchase histories to
customize products to meet those needs. L.L. Bean is using the ____ approach.
a.
target market positioning
b.
SWOT analysis
c.
customer relationship management
d.
total quality management
e.
internal marketing
77. 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
78. 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 plan to makes. In this case, the employees are
Zingerman’s ____ customers.
a.
external
b.
extended
c.
intended
d.
internal
e.
domestic
79. If Ford Motor Company measured and evaluated the quality of its goods, services, and processes as
compared with those of the best-performing companies in the automobile industry, it would be
employing
a.
uniform commitment to quality marketing.
b.
internal marketing.
c.
external marketing.
d.
quality marketing.
e.
benchmarking.
80. 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.
81. 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
82. 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.
83. A marketing unit can be organized according to functions, products, regions, and
a.
sales.
b.
target markets.
c.
competitive units.
d.
types of customers.
e.
product features.
84. A disadvantage of organizing a firm’s marketing unit by products is that
a.
product managers do not have adequate control over marketing activities.
b.
large firms might experience coordination problems.
c.
it can be rather expensive.
d.
specialized marketing assistance is less readily available.
e.
marketing flexibility is limited.
85. A firm that markets diverse products would most likely base the organization of its marketing
department on
a.
products.
b.
regions.
c.
functions.
d.
types of customers.
e.
marketing objectives.
86. Procter & Gamble, like many firms in the consumer packaged-goods industry, is organized by
a.
function.
b.
product.
c.
region.
d.
types of customers.
e.
subregion.
87. Nike has centralized marketing operations with personnel who direct marketing research, distribution,
sales, advertising, and so forth reporting directly to the top-level marketing executive. Nike’s
marketing department is organized by
a.
product.
b.
region.
c.
types of customers.
d.
subregion.
e.
function.
88. Organizing a marketing unit by regions works well for a company that
a.
produces and markets diverse products.
b.
is small and has a centralized marketing operation.
c.
markets products throughout the nation.
d.
has several groups of customers whose needs and problems are different.
e.
offers specialized marketing mixes for different products.
89. Alicia, a product representative at Frito-Lay in Atlanta has received a call from a customer asking
about a new product. The customer has a friend in Seattle who was just telling him about a new snack
Frito-Lay has introduced that is selling rapidly. Alicia’s office does not market this product, and at the
present knows very little about it. She asks the customer if she can get back with him with more
information. Alicia then calls product management in Texas. Based on this information, this firm is
most likely organized according to which of the following?
a.
Function
b.
Product
c.
Region
d.
Customer
e.
Market
90. A firm that wants to put more senior management personnel into the field, to get closer to customers,
and to enable the company to respond more quickly and efficiently to competitors would probably
organize its marketing unit on the basis of
a.
functions.
b.
regions.
c.
customer types.
d.
markets.
e.
products.
91. An appliance manufacturer that sells to large retail stores, wholesalers, and institutions would probably
organize its marketing unit on the basis of
a.
subregions.
b.
national divisions.
c.
types of customers.
d.
functions.
e.
products.
92. 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.
the marketing control process.
c.
marketing systems design.
d.
the marketing audit.
e.
marketing evaluation.
93. The first step in the marketing control process 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.
94. An expected level of performance against which actual performance can be compared is a
a.
standard performance.
b.
standard of excellence.
c.
step in sales analysis.
d.
performance standard.
e.
corrective standard.
95. 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.
96. 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.
97. 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.
98. When an organization attempts to control its marketing activities, it may find it difficult to
a.
determine their effect on sales volume.
b.
use the information it collects.
c.
obtain the necessary information.
d.
get the accounting department to cooperate.
e.
develop a marketing plan.
99. The time lag between the performance of marketing activities and their results
a.
limits the marketing manager’s ability to measure the effectiveness of marketing activities.
b.
facilitates the ability to measure performance.
c.
increases the chance of accurate measurement.
d.
limits the amount of money to be spent on measurement.
e.
increases the likelihood of having a successful marketing mix.
Scenario 2.1
Use the following to answer the questions.
100. 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.
101. 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
102. 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
103. 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
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.
104. 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
b.
cash cow; question mark
c.
cash cow; star
d.
star; cash cow
e.
star; question mark
105. 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
106. Refer to Scenario 2.2. The information in EXperience Limited’s database could be best used to develop
a.
a TQM program
b.
SWOT analysis
c.
a marketing plan
d.
a CRM program
e.
an internal marketing program
107. 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
TRUE/FALSE
108. Through the process of strategic planning, a firm establishes an organizational mission and goals,
corporate strategy, marketing objectives, marketing strategy, and a marketing plan.
109. 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.
110. A marketing strategy is a written document that specifies the activities to be performed to implement
and control a firm’s marketing activities.
111. Marketing strategies should be established before marketing objectives are decided.
112. A strategic window results from the right combination of circumstances and timing, allowing a firm to
take action to reach a particular target market.
113. A core competency is something a firm does extremely well⎯sometimes so well that it gives the
company an advantage over its competition.
114. A competitive advantage is created when a company matches its core competency to the opportunities
it has discovered in the market.
115. 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.
116. A long-term view, or vision, of what the organization wants to become is called a mission
proclamation.
117. A firm’s organizational goals should be derived from its opportunities.
118. A firm’s organizational mission should be derived from its goals.
119. An organization’s goals focus on the ends or results that the firm seeks.
120. Marketing objectives should be stated in such a way that the degree of accomplishment can be
measured accurately.
121. Marketing objectives state what is to be accomplished through marketing activities.
122. A marketing objective need not be consistent with the firm’s overall objectives.
123. Corporate strategy determines the means for utilizing resources in the functional areas of business to
reach the organization’s goals.
124. Corporate strategic planners focus on dimensions such as competition, diversification, differentiation,
environmental focus, and interrelationships among SBUs.
125. A strategic business unit is not self-supporting in terms of sales, markets, production, and other
resources.
126. 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.
127. 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.
128. 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.
129. Marketing managers can classify a firm’s products into four basic types: stars, cash cows, dogs, and
question marks.
130. Stars are profitable products that usually generate more cash than is required to maintain share.
131. Cash cows are market leaders that are growing fast, with substantial reported profits.
132. Question marks exist at a cost disadvantage and exhibit few opportunities for growth at a reasonable
cost.
133. The long-term health of the firm depends solely on having products that generate cash and provide
acceptable reported profits.
134. When properly implemented, a good marketing strategy enables a company to achieve its business–
unit and corporate objectives.
135. The decisions made in creating a marketing mix are only as good as the organization’s understanding
of the target market.
136. Marketing mix decisions must have two characteristics: consistency and timeliness.
137. Each of the marketing mix elements must work together with the others.
138. A sustainable competitive advantage is one that cannot be copied by a firm’s competitors.
OBJ: LO: 02-01 NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy
KEY: Bloom’s: Knowledge
139. Marketing planning consists of two major components: marketing objectives and a control process.
140. Marketing planning establishes an organizational mission and goals, corporate strategy, marketing
objectives, marketing strategy, and a marketing plan.
141. Marketing planning and implementation are inextricably linked in successful businesses.
142. Marketing plans may be developed for strategic business units, product lines, individual products or
brands, or specific markets.
143. 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.
144. In a traditional organization, marketing decisions are generally centralized at the top levels of the
organization.
145. A marketing unit can be organized according to functions, products, or regions, but not by customers.
146. A functional organization works effectively for large, decentralized companies.
147. A large company that markets products throughout the nation could use a regional type of
organization.
148. Organization by types of customers can work well for a firm that has several groups of customers with
different needs and problems.
149. Performance standards are established as part of the marketing control process.
150. The marketing control process does not monitor the activities of external sources of marketing
assistance.
151. The primary way to reduce the discrepancy between planned and actual performance is to rewrite the
performance standard.
152. Sometimes the information required to control marketing activities is available but too costly.
153. The time lag between the performance of marketing activities and the effects of such activities limits a
marketing manager’s ability to measure the effectiveness of marketing activities.