Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
96. A competitive advantage is created when a company matches its core competency to the opportunities it has
discovered in the market.
a.
True
b.
False
97. 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.
a.
True
b.
False
98. A long-term view, or vision, of what the organization wants to become is called a mission proclamation.
a.
True
b.
False
99. A firm's organizational goals should be derived from its opportunities.
a.
True
b.
False
100. A firm's organizational mission should be derived from its goals.
a.
True
b.
False
101. An organization's goals focus on the ends or results that the firm seeks.
a.
True
b.
False
102. Marketing objectives should be stated in such a way that the degree of accomplishment can be measured accurately.
a.
True
b.
False
103. Marketing objectives state what is to be accomplished through marketing activities.
a.
True
b.
False
104. A marketing objective need not be consistent with the firm's overall objectives.
a.
True
b.
False
105. Corporate strategy determines the means for utilizing resources in the functional areas of business to reach the
organization's goals.
a.
True
b.
False
106. Corporate strategic planners focus on dimensions such as competition, diversification, differentiation, environmental
focus, and interrelationships among SBUs.
a.
True
b.
False
107. A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.
a.
True
b.
False
108. 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.
a.
True
b.
False
109. 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.
a.
True
b.
False
110. 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.
a.
True
b.
False
111. Marketing managers can classify a firm's products into four basic types: stars, cash cows, dogs, and question marks.
a.
True
b.
False
112. Stars are profitable products that usually generate more cash than is required to maintain share.
a.
True
b.
False
113. Cash cows are market leaders that are growing fast, with substantial reported profits.
a.
True
b.
False
114. Question marks exist at a cost disadvantage and exhibit few opportunities for growth at a reasonable cost.
a.
True
b.
False
115. The long-term health of the firm depends solely on having products that generate cash and provide acceptable
reported profits.
a.
True
b.
False
116. When properly implemented, a good marketing strategy enables a company to achieve its business-unit and corporate
objectives.
a.
True
b.
False
117. The decisions made in creating a marketing mix are only as good as the organization's understanding of the target
market.
a.
True
b.
False
118. Marketing mix decisions must have two characteristics: consistency and timeliness.
a.
True
b.
False
119. Each of the marketing mix elements must work together with the others.
a.
True
b.
False
121. Marketing planning consists of two major components: marketing objectives and a control process.
a.
True
b.
False
122. Marketing planning establishes an organizational mission and goals, corporate strategy, marketing objectives, and a
marketing strategy.
a.
True
b.
False
123. Marketing planning and implementation are inextricably linked in successful businesses.
a.
True
b.
False
124. Marketing plans may be developed for strategic business units, product lines, individual products or brands, or
specific markets.
a.
True
b.
False
125. 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.
a.
True
b.
False
126. In a traditional organization, marketing decisions are generally centralized at the top levels of the organization.
a.
True
b.
False
127. Performance standards are derived from marketing objectives that are set while developing the marketing strategy.
a.
True
b.
False
128. The strategic performance evaluation does not monitor the activities of external sources of marketing assistance.
a.
True
b.
False
129. The primary way to reduce the discrepancy between planned and actual performance is to rewrite the performance
standard.
a.
True
b.
False
130. Your company is holding its annual five-year strategic planning conference. The purpose of the conference is to
solidify the go-forward tactics and strategies to enable the company to compete effectively in its industry. You are
managing this conference and the various breakout sessions that will take place.
Consistent with the sequence of the traditional strategic planning process, the first breakout session should be
a.
a session where the overall corporate strategy is developed.
b.
a session where the marketing environment is analyzed.
c.
a session where individual business-unit strategies are developed.
d.
a brainstorming session to create SWOT analysis.
e.
a session where the firm’s mission and goals are established or revised.
131. You asked your stockbroker to consider buying some shares of Facebook, Inc. for your investment account. But, first
you want to review the summary points in the SWOT analysis the stockbroker’s firm did on the company. The following
summary points were listed in the SWOT analysis:
1. Facebook has a reputation as a market leader and it is quickly establishing a formidable brand loyalty amongst its
users.
2. Because of its position in the industry, it risks incurring high costs associated with creating and marketing new
products that are designed to perpetuate its industry leadership.
These summary points suggest
a.
that Facebook’s products are Cash Cows.
b.
that Facebook has a first-mover advantage.
c.
that Facebook’s products are Question Marks.
d.
that Facebook has a superior marketing strategy versus its peers.
e.
that Facebook has a late-mover advantage.
132. Your quarterly strategic planning meeting will be held next month. You will schedule all the brainstorming and
discussion activities for the meeting in a sequence and structure consistent with the hierarchy of the traditional strategic
planning process.
Which of the following sequence of activities should you schedule in order to be most consistent with the hierarchy of the
traditional strategic planning process?
a.
1: Develop functional area goals and objectives; 2: Complete a SWOT analysis for the company; 3: Develop
business unit strategies; 4: Develop the company’s mission and goals.
b.
1: Develop the company’s mission and goals; 2: Develop business unit strategies; 3: Complete a SWOT
analysis for the company; 4: Develop functional area goals and objectives.
c.
1: Complete an economic environment analysis; 2: Develop the company’s mission and goals; 3: Develop
business unit strategies; 4: Complete a SWOT analysis for each business unit; 5: Develop functional area goals
and objectives.
d.
1: Complete a SWOT analysis for the company; 2: develop the company’s mission and goals; 3: Develop
business unit strategies; 4: Develop functional area goals and objectives.
e.
1: Develop the company’s mission and goals; 2: Develop business unit strategies; 3: Complete an economic
environment analysis; 4: Develop functional area goals and objectives.
133. You are leading the breakout session on developing the marketing strategy at your company’s strategic planning
conference. You have prepared discussion guidelines and rules of engagement to keep all attendees in the session focused
on the task at hand.
Your guidelines for developing the company’s marketing strategy
a.
suggest that the marketing objectives be written in general terms so that the strategy and be change along the
way if necessary.
b.
suggest that the target market should be identified before the marketing objectives are established.
c.
suggest that the target market should be selected to fit the marketing mix.
d.
suggest that the marketing objectives should be consistent with both the business-unit and the corporate
strategies.
e.
suggest that marketing should not worry about the strategy’s impact on company profits because the finance
department will handle that aspect.
134. Marketers understand that the best marketing strategy in the world is doomed to fail if it is not properly implemented.
With that in mind, an effective implementation strategy
a.
begins with identifying the activities to be performed, and ends with assigning responsibility for each activity
to one or more team members.
b.
begins with identifying team members, and ends with assigning activities to each team member.
c.
has an open-ended timetable to allow for unexpected delays.
d.
organizes all activities in sequential order even if they can be performed simultaneously.
e.
organizes tasks in order according to their level of complexity.
135. The following passage is an often-expressed critique of one of the two types of decision-making structures:
Another disadvantage of this structure is that the organization may become fragmented. Business units may lose their
sense of team spirit and cooperation. Some business units may put their own interests ahead of those of the company as a
whole. Innovative ideas that once spread through the company quickly may now remain within individual business units.
Which one of the following decision-making structures is this critique referring to?
a.
Centralized organizational structure
b.
Remote organizational structure
c.
Functional organizational structure
d.
Process organizational structure
e.
Decentralized organizational structure
136. You are preparing the marketing budget for the next fiscal year and the finance department staff has given you the
following guidelines to follow when estimating certain aspects of the budget:
1. You should allocate $250,000 for the total annual office expense for the marketing department.
2. For each marketing campaign that you plan to run, you should allocate $10,000 for supplies expense.
3. For each new product introduction that you plan to execute, you should allocate $5,000 for travel expenses.
4. You should allocate $25,000 for storage expenses for the entire year.
With respect to the costs included in the guidelines communicated from finance you can conclude that
a.
office expense and travel expenses are both fixed costs.
b.
office expense and storage expenses are both variable costs.
c.
storage expenses and travel expenses are both variable costs.
d.
travel expenses and supplies expenses are variable costs.
e.
office expense and supplies expenses are fixed costs.
137. You are the senior financial analyst supporting the marketing department in your company, and head of marketing
has asked you to come up with one performance metric that can be used to evaluate how effective each marketing
campaign is in terms of contribution to the firm’s profits. It should be a metric that can be easily used to compare different
marketing campaign against each other.
In response, you propose using:
a.
A metric that takes the total new sales dollars generated by a campaign and divides it by the total office
expense of the campaign.
b.
A metric that takes the total new sales dollars generated by a campaign and divides it by the total fixed cost of
the campaign.
c.
A metric that takes the total new sales dollars generated by a campaign and divides it by the total variable cost
of the campaign.
d.
A metric that takes the total new sales dollars generated by a campaign and divides it by the total supplies
expense for the campaign.
e.
A metric that takes the total new sales dollars generated by a campaign and divides it by the total cost of the
campaign.
138. You are meeting to discuss the proper categorization of marketing strategy costs in the monthly department budget
performance report. You are especially interested in making sure the fixed and variable costs are properly categorized.
The major costs associated with the marketing strategy are as follows:
A. Salesperson commissions
B. Office space rent
C. Office equipment rental
D. Product raw materials
E. Product manufacturing labor
With respect to the variable or fixed nature of these costs,
a.
we know that product raw materials and office space rent are both fixed costs.
b.
we know that salesperson commissions, product raw materials, and product manufacturing labor costs are all
variable costs.
c.
we know that office equipment rental, office space rent and sales commissions are all fixed costs.
d.
we know that office space rent is a variable cost.
e.
we know that product manufacturing labor is a fixed cost.
139. The ___________________ section of the marketing plan supplies information about the company’s current situation
with respect to the ________________, the target market, and the firm’s current objectives and performance.
a.
executive summary; marketing concept
b.
marketing implementation; marketing environment
c.
SWOT analysis; marketing concept
d.
environmental analysis; marketing environment
e.
marketing objectives; marketing concept
140. You want to include a detailed marketing organizational chart in the company marketing plan.
Which of the following sections of the marketing plan will you include this chart in?
a.
SWOT Analysis
b.
Performance Evaluation
c.
Marketing Implementation
d.
Marketing Objectives
e.
Environmental Analysis
141. You are writing an Environmental Analysis for the marketing plan for your company. You were given the following
master list of environmental factors that should be addressed in the plan:
1. Foreign exchange rates
2. Trade policy
3. Population growth rates
4. Tax policy
5. Environmental regulations
6. Production automation trends
7. Health and medical trends
You are responsible for the subsection dealing with political and regulatory factors that will impact your company’s
marketing strategies.
Which of the factors from the master list of environmental factors will you include in your subsection?
a.
Foreign exchange rates; Trade policy; Population growth rates
b.
Trade policy; Tax policy; Environmental regulations
c.
Tax policy; Environmental regulations; Health and medical trends
d.
Trade policy; Health and medical trends; Tax policy
e.
Environmental regulations; Foreign exchange rates; Tax policy
