112. Which of the following statements about marketing audits is true?
a.
Marketing audits only need to be performed once.
b.
The main purpose of the marketing audit is to develop a full profile of a company’s
marketing effort.
c.
Marketing audits are only necessary after a major crisis.
d.
Marketing audits simply examine the external environment in which a company operates.
e.
The marketing audit should only be performed by outside accounting firms.
113. The final postaudit task is to:
a.
profile existing weaknesses and inhibiting factors within the organization
b.
judge and prioritize recommendations generated by the marketing audit
c.
create an action plan with both short- and long-run proposals for improving overall
marketing effectiveness
d.
make someone accountable for implementing recommendations
e.
ensure that the role of the audit has been clearly communicated
114. What is the most critical element in successful strategic planning?
a.
Creativity
b.
Top management support and participation
c.
Continual attention
d.
The use of a BCG portfolio model
e.
A stringent and narrow mission statement
115. Refer to DeFeet International. DeFeet branched from making socks for cyclists to making apparel for
skiing, hiking, corporate sponsors, and kids. This is an example of which of Ansoff’s strategic
alternatives?
a.
Market penetration
b.
Market development
c.
Product development
d.
Diversification
e.
Concentration
116. Refer to DeFeet International. If you were to define DeFeet’s mission which would be most
appropriate?
a.
DeFeet makes socks.
b.
DeFeet makes clothes for athletes.
c.
DeFeet creates high-tech products for the serious athlete.
d.
DeFeet provides the highest quality apparel for customers who demand the best.
e.
DeFeet covers the world.
117. Refer to DeFeet International. What kind of competitive advantage would you say DeFeet has?
a.
Low cost
b.
Niche
c.
Product/service differentiation
d.
Product Development
e.
Diversification
118. Refer to DeFeet International. What is DeFeet’s most likely target market strategy?
a.
Appeal to the entire market
b.
Concentrate on one segment of the market
c.
Appeal to multiple segments
d.
Appeal to athletes
e.
Appeal to the world
119. Refer to DeFeet International. DeFeet’s _____ is high-tech apparel, the packaging it comes in, the
brand name, company image and value.
a.
product
b.
place
c.
price
d.
promotion
e.
position
120. Refer to DeFeet International. DeFeet’s _____ includes retailers and online retailers throughout the
world.
a.
product strategy
b.
place strategy
c.
price strategy
d.
promotion strategy
e.
positioning strategy
121. Refer to DeFeet International. DeFeet’s _____ includes advertising, public relations, sales promotions,
and personal selling.
a.
product
b.
place
c.
price
d.
promotion
e.
position
122. Refer to DeFeet International. DeFeet’s _____ is what its customers give up to obtain their apparel.
a.
product strategy
b.
place strategy
c.
price strategy
d.
promotion strategy
e.
positioning strategy
123. Refer to Novartis. Novartis is creating and maintaining a fit between its objectives and resources and
evolving market opportunities in developing countries. Novartis is engaging in:
a.
strategic planning
b.
selective assessment
c.
functional planning
d.
environment scanning
e.
decision analysis
124. Refer to Novartis. If Novartis goes through with the purchase of Tianyuan, it will become a subgroup
of its overall pharmaceutical business and organization. Tianyuan will then be considered a(n) _____
of Novartis.
a.
stock keeping unit (SKU)
b.
portfolio element
c.
strategic business unit (SBU)
d.
market segment
e.
business segment
125. Refer to Novartis. By acquiring Tianyuan, Novartis will be offering vaccines, which is a product that it
currently offers in its existing markets, to new markets for the company. This is an example of which
strategic alternative?
a.
Strategic window
b.
Market penetration
c.
Product development
d.
Diversification
e.
Market development
126. Refer to Novartis. Tianyuan has a relatively small market share of a high-growth market in China.
How would this company be classified in Novartis’ portfolio model?
a.
Problem child
b.
Star
c.
Cash cow
d.
Dog
e.
Emergent
127. Refer to Novartis. One thing Novartis plans to do is increase sales to governments and to the United
Nations agencies because these are the typical buyers of vaccines to distribute in poor countries.
Thus, the company is willing to give up short-term profits to increase market share for this company.
In terms of the portfolio model, which basic strategy will Novartis be implementing?
a.
Hold
b.
Harvest
c.
Divest
d.
Build
e.
Divert
128. Refer to Novartis. Novartis assessed the opportunity presented by the growing potential markets in
developing countries and determined it was consistent with its internal quality production processes
and extensive R&D capabilities. This assessment process in which Novartis learned this about the
environment is called a:
a.
market audit
b.
situation analysis
c.
primary analysis
d.
profit and loss assessment
e.
strategic window search
129. Refer to Delta Faucet Company. The marketing program, which Delta designed to develop new
products to appeal to homeowners, is an example of:
a.
strategic planning
b.
a mission statement
c.
mass marketing
d.
production-oriented marketing
e.
tactical planning
130. Refer to Delta Faucet Company. The Delta Faucet Company is a _____ of Masco.
a.
target market
b.
transactional division
c.
strategic business unit (SBU)
d.
share-bearing unit (SBU)
e.
situational business usage (SBU)
131. Refer to Delta Faucet Company. Since Delta was already marketing to homeowners (although not very
successfully), its development of new styles of faucets to appeal to this underserved market would be
an example of a _____ strategy.
a.
market penetration
b.
product diversification
c.
market development
d.
product development
e.
product penetration
132. Refer to Delta Faucet Company. While new home construction is not growing as rapidly as it once did,
the number of homeowners who are remodeling bathrooms and kitchens is growing. According to the
portfolio model, Masco would consider Delta a(n):
a.
question mark
b.
exclamation point
c.
star
d.
cash cow
e.
problem child
133. Refer to Delta Faucet Company. Delta Faucet would most likely have gathered the information about
how homeowners perceive its products through the use of a(n):
a.
break-even analysis
b.
correlation analysis
c.
sales potential assessment
d.
situation analysis
e.
economic forecast
134. Refer to Delta Faucet Company. The reputation the Delta faucet has for its quality, durability, and
dependability among builders is an example of a(n):
a.
tactical threat
b.
competitive advantage
c.
experience curve
d.
economy of scale
e.
market differentiator
135. Refer to Delta Faucet Company. Delta’s decision to make more stylish faucets represents a change in
the _____ element of its marketing mix.
a.
product
b.
promotion
c.
place
d.
production
e.
distribution
136. Refer to Delta Faucet Company. Delta’s development of a new slogan represents a change in the _____
element of its marketing mix.
a.
product
b.
promotion
c.
place
d.
production
e.
distribution
ESSAY
1. What is the difference between planning, strategic planning, and marketing planning?
2. If the owners of Jalapeno’s Restaurant, a Mexican eatery in St. Louis, open a second restaurant across
town, have they created an SBU? Explain your answer.
3. Name and describe the four strategic alternatives in Ansoff’s strategic opportunity matrix, which
matches products with markets. For each of the four strategic alternatives, give a specific example of a
firm following that strategy.
4. List the four basic strategies used once an organization has identified its strategic business units in
terms of the portfolio model. Describe when each is used.
5. Identify the dimensions used for selecting strategic alternatives in the General Electric model. What
are some attributes of an attractive market in this model?
6. What is marketing myopia? If a movie theater company had a myopic orientation, how might it state
its business purpose? If the movie theater company avoided a myopic orientation, how would its
business purpose change?
7. What is a SWOT analysis? How does it relate to strategic planning?
8. What is environmental scanning? Name four environmental forces that affect marketing
decision-making.
9. Stump’s Hot Olives are manufactured by a family business in Wisconsin and are sold in Midwestern
grocery stores, through mail order, and to a few local restaurants. The company has been in operation
since 1998 and relies on labor from family and friends to produce and package olives in attractive,
reusable glass containers. They use store demonstrations to introduce their spicy olives to new
customers. Discuss how this company can establish or maintain at least one of the three types of
competitive advantage.
10. What is a competitive advantage? What makes a competitive advantage sustainable?
11. What is a marketing objective? Name three criteria for good marketing objectives. Use the criteria to
write an objective for a business with which you are familiar.
12. An essential part of marketing strategy is target market strategy. Selection of target market(s) drives
marketing objectives and selection of the marketing mix (the four Ps). What are the three general
strategies for selecting target markets?
13. The marketing mix refers to a unique blend of marketing variables known as the four Ps. Name and
briefly describe each of the 4 Ps.
14. Identify four common reasons for failing to achieve a marketing objective.
15. Perhaps the broadest control device available to marketing management is the marketing audit.
Describe this tool and its characteristics.
16. Name and describe the three requirements for effective strategic planning.