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56. 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.
57. All marketing mix decisions must have two characteristics: ____ and ____.
a.
consistency; flexibility
b.
consistency; rigidity
c.
formality; flexibility
d.
variability; flexibility
e.
formality; rigidity
58. 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
59. 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
60. 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
61. 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.
62. 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.
63. 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
64. 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
65. 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
66. 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
67. A marketing plan document usually begins with a(n)
a.
executive summary.
b.
introduction to the company's marketing objectives.
c.
summary of current performance as compared with past performance.
d.
situation analysis.
e.
opportunity and threat analysis.
68. 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.
69. 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
70. 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
71. 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
72. 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
73. 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 plans to makes. In this case, the employees are Zingerman’s ____ customers.
a.
external
b.
extended
c.
intended
d.
internal
e.
domestic
74. 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.
75. 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
76. 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.
77. 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.
strategic performance evaluation.
c.
marketing systems design.
d.
the marketing audit.
e.
marketing evaluation.
78. The first step in the strategic performance evaluation 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.
79. 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.
80. 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.
81. 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.
82. 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.
83. 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.
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.
84. 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.
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
85. 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.
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
86. 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.
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
87. 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.
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
88. 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.
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
89. 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.
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
90. Through the process of strategic planning, a firm establishes an organizational mission and goals, corporate strategy,
marketing objectives, and a marketing strategy.
a.
True
b.
False
91. It begins with the establishment of revision of an organization’s mission and goals. 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
92. 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
93. Marketing strategies should be established before marketing objectives are decided.
a.
True
b.
False
94. 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
95. A core competency is something a firm does extremely well-sometimes so well that it gives the company an
advantage over its competition.
a.
True
b.
False
