Chapter 02 Test Bank
1. The process of thoughtfully defining a firm’s objectives and developing a method for achieving those objectives is called
A. business development.
B. business planning.
2. How often should firms undertake the task of strategic planning?
3. Read the following statements regarding strategic planning to determine which is not accurate.
A. Strategic planning can be used on a personal level to help accomplish goals.
B. The strategic plan is shaped by the organization’s mission.
02-2
Topic: Strategic Planning
4. A concise affirmation of a firm’s long-term purpose is known as its
5. A good mission statement should be oriented around the
A. company.
B. financial plan.
6. A good mission statement should
7. What element will ensure a business never strays too far from its core goals and values, especially if the marketing plan
needs to be modified to fit the changing times?
8. What primary strategic planning tool is used for directing and coordinating the marketing effort and helps to guide the firm’s
marketing strategy?
9. What is the overall purpose of a marketing plan?
10. The five key components of the marketing plan are
11. An action-oriented document or playbook that guides the analysis, implementation, and control of the firm’s marketing
strategy is known as the
A. strategic plan.
B. organizational plan.
12. What document provides a one– to two-page summary of the marketing plan’s main points?
13. What element of the marketing plan helps firms understand where they are currently and how best to move forward?
14. The situation analysis is composed of which three subsections?
15. Gavin wants to perform a situation analysis of his business to help him make strategic decisions for the future. The situation
analysis will tell Gavin all of the following
A. current competitive forces.
B. market conditions.
16. As it pertains to a situation analysis, the term market refers to
17. Once the situation analysis is complete, marketers focus on defining their
18. The actions a firm must take to accomplish the marketing objectives established in its mission statement and strategic
planning process are outlined in the
19. What part of the financial section of a marketing plan provides readers of the plan a bottom-line estimate of the
organization’s profitability?
A. the cost detail
B. the accounting detail
20. According to your text, what three elements should be contained within a company’s financial projections?
A. sales forecast, profit and loss statement, and balance sheet
B. balance sheet, profit and loss statement, and net worth
21. Which forecast projects how many units of a product the company expects to sell during a specific time period?
22. What information does a break-even analysis provide for a firm?
23. What two forecasts are used in a break-even analysis?
A. production and sales
B. profit and loss
24. Read the following to determine which one accurately depicts what is contained in an expense forecast.
A. the amount of money the company must pay suppliers to warehouse and ship the product to stores
B. the total amount of debt owed by the company, both short-term and long-term
25. The final section in most marketing plans is the
26. The controls section of the marketing plan should contain which of the following?
A. marketing strategy, organizational structure, and feedback
B. organizational structure, administrative oversight, and evaluation
27. Why is it necessary to have an outline of the organizational structure in the controls section of the marketing plan?
28. What element of the control section of the marketing plan defines the actions the company will take if the initial marketing
strategy does not achieve results?
29. What two elements are combined on the BCG matrix to produce its four unique product categories?
30. Products that are typically new to the market and require significant marketing investment in promotion, product
management, and distribution are classified as
A. skunks.
B. cash cows.
31. Which of the following products would most likely be considered a dog?
32. According to the BCG Matrix, what defines a cash cow?
A. products that have a small market share in an industry with high growth rates
B. products that have a small market share in an industry with steady growth rates
33. The internal considerations in a SWOT analysis are
34. According to your text, perhaps the most common mistake a firm makes when conducting a SWOT analysis is
35. Joe’s Pizza Parlor is a late-night pizza and sandwich shop located on a college campus. Joe recently conducted a SWOT
analysis. Compare each of the following to determine which one is a weakness for Joe’s Pizza Parlor.
36. Consider the following findings from a recent SWOT analysis performed by Sasha’s flower shop. Which of the following
represents a threat?
37. In a SWOT analysis, current and potential external factors that may challenge the firm’s short- and long-term performance
are referred to as
38. Travis has an athletic shoe store and is currently preparing a market summary. To be most effective, the competition section
of his market summary should
A. list possible tactics to obtain a larger market share.
B. list only indirect competitors.
39. The three basic characteristics of a quality marketing objective is that it be
40. The activities a firm undertakes to create a certain perception of its product in the eyes of the target market are referred to
as
41. Which of the following is not one of the four basic categories of marketing growth strategies?
42. The marketing strategy that emphasizes selling more of existing goods and services to existing customers is called
43. Think about the various marketing strategies as you read the following choices to determine which one describes a market
penetration strategy.
44. When the makers of V8 vegetable juice noticed that sales of its original product were stabilizing, they decided to offer a new
product, one that offered a full serving of vegetables and a full serving of fruit. They called the product V8 V-Fusion and they
marketed it to their original V8 customers in hopes of increasing sales. This is an example of what kind of marketing strategy?
45. Which of the following best describes a market development strategy?
A. selling more of current products to existing markets
B. selling new products to new markets
46. Which marketing strategy is being employed by a firm that is seeking to expand in foreign markets?
A. market penetration
B. positioning
47. Which marketing strategy would Krispy Kreme doughnuts be using if it decided to begin selling its doughnuts in Mexico for
the first time?
48. As a marketing strategy, what is diversification?
49. If Geico Insurance began selling t-shirts featuring its infamous gecko to try to capitalize on its brand name, this would be an
example of
50. The superior position a product enjoys over competing products if consumers believe it has more value than other products
in its category is referred to as a
51. A recent survey conducted by U.S. News and World Report on the best overall hybrid car, ranked the Ford Fusion Hybrid as
one of the best hybrid cars for the money. For Ford, this represents
52. Which element of the marketing mix relates to services like warranties and guarantees that accompany a good or service?
53. Which element of the marketing mix details how the organization will communicate the value of its product?
54. The activities that an organization uses to reach its target market such as advertising, personal selling, and public relations
are all part of the marketing mix element known as
55. Which element of the marketing mix includes the distribution activities necessary to get the product in the hands of the
customer?
56. Which of the following is not one of the five major strategic options for entering the international marketplace?
57. Typically the least risky option for entering international markets is
58. Selling domestically produced products to foreign markets is called
59. Which of the following makes up the vast majority of U.S. exporters?
A. Walmart
B. the top three largest U.S. firms
60. A legal process in which one firm pays to use or distribute another firm’s resources, including products, trademarks, patents,
intellectual property, or other proprietary knowledge is called