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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. Describe the two major methods for evaluating the actual performance of marketing strategies.
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.
11. 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
12. 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.
13. 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
14. 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.
15. 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.
16. 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.
17. 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.
18. 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.
19. Apple 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 Apple, 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
20. A market opportunity results from
a.
the right combination of circumstances and timing that permits 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.
21. 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.
22. 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
23. 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
24. 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.
25. 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.
26. 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.
27. 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
28. 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
29. 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
30. 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.
31. 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.
32. 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
33. 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
34. 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.
35. 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
36. 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.
37. 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.
38. 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.
39. 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.
40. ____ 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
41. 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.
42. 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
43. 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.
44. 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 those products.
e.
the percentage of a group of customers that actually buys a specific product from a specific company.
45. 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
46. 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.
47. 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.
48. 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.
49. 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.
50. 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
51. 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
52. 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.
53. 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
54. 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
55. 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.
Marketing strategy utilizes the marketing mix to develop a message that is consistent with the business-unit
and corporate strategies.
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.
