38) A company that seeks to increase its sales and profits through backward, forward, or
horizontal integration within the industry is said to be employing a(n) ________ strategy.
A) diversification growth
B) intensive growth
C) target growth
D) integrative growth
E) conglomerate growth
39) If you were the CEO of a company that was looking to implement strategies to fill a
perceived strategic-planning gap, you would most likely explore a(n) ________ strategy first
because it is easier to improve an existing business than to build a new one.
A) market-penetration
B) market-development
C) diversification
D) product-development
E) exclusive
40) Once Starbucks had established its presence in thousands of cities internationally, the
company sought to increase the number of purchases by existing customers with a ________
strategy that led to new in-store merchandise, including compilation CDs and high-speed
wireless access.
A) product-development
B) market-penetration
C) diversification
D) market-development
E) conglomerate
41) A(n) ________ is when a company might seek new businesses that have no relationship to its
current technology, products, or markets.
A) concentric strategy
B) conglomerate strategy
C) horizontal strategy
D) intensive growth strategy
E) integrative strategy
42) Which of the following terms can be defined as “the shared experiences, stories, beliefs, and
norms that characterize an organization”?
A) organizational dynamics
B) a business mission
C) an ethical/value statement
D) customer relationships
E) corporate culture
43) The first step in the business unit strategic-planning process deals with which of the
following?
A) formulate goals
B) define business mission
C) implement strategies
D) execute programs
E) conduct SWOT analysis
44) Through its cutting-edge point-of-sale inventory management technology and highly
efficient shipping practices, Wal-Mart is able to keep its inventory expenditure extremely low
and to pass these savings on to consumers in the form of low prices. Wal-Mart’s strategy is best
described as ________.
A) a focused approach
B) integrative growth
C) differentiation
D) market development
E) overall cost leadership
45) When a firm aims to underprice competitors and win market share, it is using a(n) ________
strategy that requires relatively less marketing skills as compared to other strategies.
A) product differentiation
B) overall cost leadership
C) focus
D) domestic customer relationship
E) price skimming
46) After analyzing their company’s strengths and weaknesses, top managers at Loan Bright
decided that they would serve individual loan officers who typically only wanted to purchase
small sets of homebuyer data, rather than bigger institutional clients. To meet the needs of this
segment, Loan Bright simplified its sales contract, restructured its advertising efforts to focus on
Google ads, and created a separate customer-service department. Loan Bright’s strategy is best
described as a(n) ________ strategy.
A) overall cost leadership
B) focus
C) differentiation
D) diversification
E) promotional
47) Unlike its competitors in the online air travel industry, Travelocity provides its customers
with a greater variety of services such as cruise reservations, package tours, hotel bookings, and
car rentals. This is an example of a(n) ________ strategy.
A) overall cost leadership
B) focus
C) differentiation
D) diversification
E) promotional
48) McDonald’s has often teamed up with Disney to offer products related to current Disney
films as part of its meals for children. The best description of this form of alliance would be a
________.
A) product alliance
B) logistics alliance
C) pricing collaboration
D) network alliance
E) promotional alliance
49) Abbott Laboratories warehouses and delivers 3M’s medical and surgical products to hospitals
across the United States. The best description of this form of alliance would be a(n) ________.
A) product alliance
B) logistics alliance
C) pricing collaboration
D) indirect collaboration
E) promotional alliance
50) MasterCard and Visa may team up with university alumni associations to offer affinity credit
cards that typically display an iconic image associated with the university on the card itself and
may include an incremental donation program associated with purchases made using the card.
The best description of this form of alliance would be called a ________.
A) product alliance
B) logistics alliance
C) pricing collaboration
D) network alliance
E) promotional alliance
51) When one company licenses another to produce its offerings, or two companies jointly
market their complementary offerings, it is called a ________.
A) pricing collaboration
B) product or service alliance
C) promotional alliance
D) logistics collaboration
E) total quality management
52) To keep their strategic alliances thriving, corporations have begun to develop organizational
structures to support them and have come to view the ability to form and manage strategic
alliances as core skills. This is called ________.
A) value managed partnership
B) decentralized partnership
C) centralized partnership
D) partner relationship management
E) intensive growth management
53) Which of the following statements is true of marketing plans?
A) They can be independently developed without worrying about other functional areas.
B) They provide direction and focus for a brand, product, or company.
C) They are usually profit-oriented.
D) They are of limited use to non-profit organizations.
E) They are typically five-year plans and they lay out the strategies required to achieve targets in
those five years.
54) Which of the following elements of a marketing plan permits senior management to grasp
the plan’s major thrust?
A) the situation analysis
B) the marketing strategy
C) the executive summary
D) the financial projections
E) the short-term targets
55) The ________ is the last section of the marketing plan and spells out the goals and budget for
each month or quarter, so management can review each period’s results and take action as
needed.
A) executive summary
B) situation analysis
C) marketing strategy
D) financial projections
E) implementation and controls
56) The traditional view of marketing is that the firm makes something and then sells it.
57) The traditional view of marketing works best in economies with many different types of
people, each with individual wants, perceptions, preferences, and buying criteria.
58) The customer relationship management process involves all the activities related to receiving
and approving orders, shipping the goods on time, and collecting payment.
59) The new-offering realization process involves all activities in defining target markets and
prospecting for new customers.
60) A principle of the value chain is that every firm is a synthesis of activities performed to
design, produce, market, deliver, and support its product.
61) Another name for a company’s value delivery network is “distribution chain.”
62) Holistic marketing focuses on the integration of value exploration, value creation, and value
delivery as a means to build long-term relationships with consumers.
63) The marketing plan is the central instrument for directing and coordinating the marketing
effort.
64) Good mission statements should be long and clear, should emphasize on a wide range of
goals, and stress on the company’s major policies and values.
65) An intensive growth strategy involving marketing current products to new markets is a
market-development strategy.
66) A company seeking to expand the number of existing products sold to its current markets,
would be using a “market-penetration strategy.”
67) If a company sought to grow by starting new businesses that have no relation to its current
technology, products, or markets, the company would be using a market penetration strategy.
68) An environmental threat is a challenge posed by an unfavorable trend or development that, in
the absence of defensive marketing action, would lead to lower sales or profit.
69) Once a SWOT analysis has been completed, the strategic planner is ready to proceed to the
goal formulation stage of the strategic-planning process model.
70) A firm employing a focus strategy concentrates on achieving superior performance in an
important customer benefit area valued by a large part of the market.
71) Partner relationship management is now considered as a core skill fundamental to the
development and maintenance of strategic alliances.
72) Firms directing the same strategy to the same target market constitute a strategic group.
73) A marketing plan should open with a situation analysis.
74) Sales forecasts, expense forecasts, and break-even analysis are usually found in the section
on financial projections in the marketing plan.
75) The marketing strategy section of the marketing plan spells out goals and budgets for each
month or quarter so the management can review each period’s results and take corrective action
as needed.
76) The firm’s success depends not only on how well each department performs its work, but
also on how well the various departmental activities are coordinated to conduct core business
processes. List and briefly describe the five core business processes.
77) Identify and give examples of the four major categories of strategic alliances.
78) Describe what happens in scenario analysis and explain why firms such as Royal Dutch/Shell
Group use the technique.
79) Explain what happens in a SWOT analysis during the strategic planning process.
80) What questions would typically be asked during a market opportunity analysis (MOA)?