Deck 14: Building a Marketing Plan

Question 1

A SWOT analysis is an internal assessment of assets and limitations of a company and it excludes any external influencing factors from its purview.

Answer 1

False

Question 2

In the context of market planning,it is advisable to view the potential market as a homogeneous market irrespective of the different needs and demands of the smaller niche markets.

Answer 2

False

Question 3

The first step in building a marketing plan is the step of ________.

A)revenue planning
B)performance plan
C)situation analysis
D)marketing strategy
E)performance review

Answer 3

C

Question 4

Uncovering key performance issues that normally might go unnoticed in day-to-day business operations is the primary purpose of the ________ step of a marketing plan.

A)situation analysis
B)revenue planning
C)performance evaluation
D)performance gap
E)channel strategy

Question 5

Which of the following statements is true with regard to a marketing plan?

A)A marketing plan must focus on the larger market without breaking it down into its constituent markets.
B)A marketing plan can lose focus by looking at niche markets to promote the business.
C)A marketing plan must be highly formalized to be successful in the real scenario.
D)A good marketing plan will avoid profiling target customers.
E)A marketing plan can help a company clearly position itself in a variety of market segments.

Question 6

ABL Inc.is a large consumer goods company that recently released some new shower gels in the market.Two of the most touted shower gels in this new line of products failed in the market,while the range of shower gels designed for adolescents called Rebel did very well in the market.Which of the following,if true,would explain this outcome?

A)ABL Inc.allocated resources equally for each project management team handling a new shower gel.
B)ABL Inc.used more traditional advertisements and less social media to promote the shower gel "Rebel."
C)The project management team of ABL Inc.that was in charge for "Rebel" advertised their product less than the other project management teams.
D)The project management team of ABL Inc.that was in charge for "Rebel" adopted a reduce-market-focus strategy that targeted only adolescents.
E)The two new shower gels that failed in the market were clearly positioned in their respective market segments.

Question 7

The company's customer value index is the sum of its performance index and its cost of purchase index.

Question 8

The primary purpose of a strategic market plan is to create a set of performance objectives and to guide the development of marketing mix strategies.

Question 9

A selective investment strategy,which invests in customers who have high customer lifetime value,is detrimental to the strategic objectives of the marketing plan.

Question 10

With an open system,marketing planners should act as facilitators in the planning process rather than as developers of a market plan.

Question 11

After a business goes beyond the break-even level of sales,profitability begins to drop significantly.

Question 12

The focus on a well-defined target market typically reduces cost efficiency of the company.

Question 13

In developing a performance plan,a business first translates the objectives of the market share strategy into a revenue plan.

Question 14

ABL Inc.is a large consumer goods company that recently released some new shower gels in the market.Two of the most touted shower gels in this new line of products failed in the market,while the range of shower gels designed for adolescents called "Rebel" did very well in the market.Which of the following benefits would accrue to ABL Inc.from the success of "Rebel" in the market?

A)reduced barriers of entry
B)increased cost-efficiency
C)reduced need for quality controls
D)reduced customer retention rates
E)increased break-even sales figures

Question 15

Marketing plans need to be highly formalized to be successful.

Question 16

A marketing and sales budget that specifies each marketing task and the amount needed to accomplish
it is called a bottom-up marketing and sales budget.

Question 17

Marketing strategies often are driven internally by short-run profit objectives rather than by market-based performance objectives.

Question 18

Both creative insight and analytical structure are necessary to paint a meaningful picture of the market situation,marketing strategy,and a logic-based path that leads to the desired performance objectives.

Question 19

The primary purpose of a detailed situation analysis is to uncover key performance issues that normally might go unnoticed in day-to-day business operations.

Question 20

The share potential index is an estimate of the share performance index if the business were to achieve maximum levels of performance for each share metric.

Question 21

Which of the following would be considered as a current performance variable under the situation analysis level of a marketing plan?

A)channels to the market
B)communications strategy
C)performance gap
D)competition and industry
E)break-even sales figures

Question 22

In the context of SWOT analysis,opportunities refer to ________.

A)unique sources of advantage that the plan should leverage
B)circumstances that limit performance and should be addressed
C)potentialities that would improve profitability and should be addressed
D)current and possible factors that could impede performance
E)aspects of the internal environment that strengthen the stand of the business at present

Question 23

The role of a SWOT analysis is to ________.

A)evaluate the effort that is needed to recover a business's investment
B)document all present and possible future influences on performance
C)monitor the marketing and profit performance in light of the marketing plan's timeline
D)specify each marketing task and the amount needed to accomplish it
E)allocate resources based on the strategic market plan

Question 24

Which of the following statements is true with regard to the strategic market plan?

A)A strategic market plan is the second step of the situation analysis level of market planning.
B)A strategic market plan uses only past performance as a frame of reference.
C)A strategic market plan does not incorporate the market share indices determined in the situation analysis step.
D)A strategic market planning portfolio represents the competitiveness attractiveness of the company.
E)A strategic market plan finalizes and implements a performance review and resolves any performance deficits of the current plan.

Question 25

In the context of SWOT analysis,which of the following would be a strength for a company already existing in the market?

A)a growing market
B)a local environment that is conducive to growth of the business
C)an openness of the governmental mechanism to foreign investors in the business
D)a low level of barriers to entry in the market
E)a high level of branding that leads to market recognition

Question 26

In which step of the process of building a marketing plan is a thorough examination of market forces,competitive position,and current performance undertaken?

A)marketing budget
B)situation analysis
C)profit plan
D)communications strategy
E)marketing mix strategy

Question 27

Which of the following are the components of a revenue plan?

A)return on sales,asset turnover,and return on assets
B)percent margins and profitability metrics
C)personnel and expenditures
D)market share,pricing,and revenues
E)break-even sales and shares

Question 28

In the context of SWOT analysis,strength refers to the ________.

A)unique sources of advantage that the marketing plan should leverage
B)circumstances that limit the company's performance and should be addressed
C)potentialities that would improve profitability and should be addressed
D)current and possible factors that could impede performance
E)aspects of the geo-political environment that strengthen the stand of the business at present

Question 29

Which of the following would be considered a strategic market plan component of marketing strategy?

A)revenue plan
B)investment
C)profits
D)customer needs
E)customer profile

Question 30

Which of the following steps involves a plan being proposed with respect to profitability and market share objectives for a specified planning horizon?

A)marketing budget
B)situation analysis
C)SWOT analysis
D)strategic market plan
E)revenue plan

Question 31

If a company's cost of purchase index is 30 percent below the industry average,it means that ________.

A)the company's shares are more expensive than other companies in the industry
B)the consumers feel that they are required to pay less for the company's products or services when compared to other companies in the industry
C)the consumers feel that they receive less real value from the goods and services they purchase from the company for the price they pay
D)the company's goods and products are rated 30 percent lower in terms of quality than those offered by the other companies in the industry
E)the company's market share is estimated to be 30 percent smaller than its largest rival company in the industry

Question 32

In order to develop a performance plan,a business first translates the objectives of the market share strategy into a ________.

A)communications strategy plan
B)break-even plan
C)revenue plan
D)situational analysis plan
E)SWOT analysis plan

Question 33

Which of the following statements is true of a pull communication strategy?

A)It aims to create interest among customers and motivate them to acquire more information.
B)It is directed at channel intermediaries and channel influencers.
C)It is of limited use when the company seeks to enhance consumer retention among current consumers.
D)It focuses on focused on trade associations and industry influencers.
E)It does not include digital communication methods.

Question 34

When assessing the current situation in the first step of a marketing plan,it is recommended that one ________.

A)avoids making assumptions of any kind
B)eliminates areas that lack factual data from the purview of the plan
C)utilizes only concrete facts about the future projections and performance gaps
D)generates estimates based on knowledge and experience to be modified in the future
E)substitutes the data of current performance by that of the projected performance in the plan

Question 35

The difference between the company's performance index and its cost of purchase index gives us the ________.

A)market share index
B)share potential index
C)customer value index
D)profitability index
E)market development index

Question 36

The second step in the situation analysis level of a marketing plan involves ________.

A)conducting a performance review
B)developing a revenue plan
C)performing a SWOT analysis
D)developing a performance plan
E)initiating a share valuation process

Question 37

The third step in building a marketing plan involves ________.

A)conducting a performance review
B)conducting a situation analysis
C)performing a SWOT analysis
D)developing a performance plan
E)conducting a share valuation process

Question 38

A business's channel strategy determines the framework adopted by the business for ________.

A)evaluating its competitiveness and attractiveness in the industry in which it operates
B)enhancing the total cost of purchase index for its products and services in the market
C)establishing a revenue plan that matches projections and available resources
D)marketing its current profitability from conducting business
E)selling and delivering its products and services to target customers

Question 39

Which of the following is a component of the marketing strategy step of building a marketing plan?

A)situation analysis
B)SWOT analysis
C)break-even analysis
D)communications strategy
E)marketing profitability strategy

Question 40

The ________ is an estimate of the share performance index if the business were to achieve maximum levels of performance for each share metric.

A)market share index
B)share development index
C)share potential index
D)market development index
E)bond market index

Question 41

Which of the following statements is true with regard to a percent-of-sales marketing and sales budget?

A)It works by implementing a harvest strategy that requires more than the normal percentage of sales to achieve share and sales objectives.
B)An aggressive growth strategy in this budget slowly reduces marketing and sales expenses as a percentage of sales while market share is harvested over time.
C)The cost of customer acquisition and retention is the primary determinant of the budget and resource allocation under this approach to budgeting.
D)It focuses on previous experience,but it could vary from past experience depending on the nature of the strategic market plan.
E)It specifies each marketing task and the amount needed to accomplish it,given a particular strategic market plan and the task-related marketing mix strategies.

Question 42

In the ________,all elements of a market plan merge into a forecast of percent margins and marketing profitability.

A)situation analysis
B)performance review
C)profit plan
D)marketing performance plan
E)adjusting marketing plan

Question 43

The ________ represents the ongoing monitoring of marketing and profit performance in light of the marketing plan's timeline.

A)marketing budget
B)industry analysis
C)force field analysis
D)situation analysis
E)performance review

Question 44

Name and describe the methods for determining a marketing budget.

Question 45

Which of the following would be considered a break-even analysis component of performance plan?

A)expenditures
B)marketing profits
C)pricing
D)asset turnover
E)profitability risk

Question 46

The marketing and sales budget of Toby Inc.is estimated to be $450 million.It has retained 800,000 customers and has acquired 350,000 new customers.The marketing administration cost of the company is $150 million.If the acquisition cost per customer is $350,calculate the approximate retention cost per customer.

A)$168
B)$222
C)$320
D)$124
E)$85

Question 47

The marketing and sales budget of Fisk Inc.is estimated to be $500 million and its marketing administration cost is estimated to be $120 million.The acquisition cost per customer is $400 and it is 10 times more than the retention cost per customer.If 320,000 customers are retained,what is the total number of new customers acquired by Fisk Inc.?

A)145,000 customers
B)350,000 customers
C)918,000 customers
D)642,000 customers
E)786,500 customers

Question 48

MINI-CASE
VitaMind manufactures a line of vitamins and supplements,and distributes them through retail health food and organic grocery stores.While this young company is currently realizing profits,the owners want to plan for future growth and are beginning the formal market planning process.
Mini-Case Question.Based on information from their analysis,VitaMind determined that there is an opportunity to expand distribution of its line of products into mass merchandisers.In which of the following steps of the market planning process will specific details regarding VitaMind's proposed channel strategy be specified?

A)situation analysis
B)SWOT analysis
C)revenue plan
D)marketing strategy
E)performance review

Question 49

A ________ indicates the effort that is needed to recover a business's investment in a marketing and sales budget.

A)force field analysis
B)situation analysis
C)SWOT analysis
D)break-even analysis
E)bottom-up analysis

Question 50

MINI-CASE
VitaMind manufactures a line of vitamins and supplements,and distributes them through retail health food and organic grocery stores.While this young company is currently realizing profits,the owners want to plan for future growth and are beginning the formal market planning process.
Mini-Case Question.In which of the following steps of the market planning process will VitaMind need to monitor the marketing and profit performance in light of the timeline outlined by the marketing plan?

A)marketing profit plan
B)SWOT analysis
C)performance review
D)marketing and sales budget
E)break-even analysis

Question 51

A company's marketing and sales budget is estimated to be $150 million.It has retained 360,000 customers and has acquired 25,000 new customers.The acquisition cost per customer is 5 times more than the retention cost per customer.If the retention cost per customer is $200,calculate the marketing administration cost of the company.

A)$126 million
B)$98 million
C)$79 million
D)$38 million
E)$53 million

Question 52

MINI-CASE
VitaMind manufactures a line of vitamins and supplements,and distributes them through retail health food and organic grocery stores.While this young company is currently realizing profits,the owners want to plan for future growth and are beginning the formal market planning process.
Mini-Case Question.In which of the following steps of the market planning process will VitaMind need to conduct a thorough examination of market forces,competitive position,and current performance?

A)situation analysis
B)revenue planning
C)performance gap
D)marketing mix strategy
E)performance review

Question 53

The marketing team at Wallace Waterworks has been working on a marketing plan for the impending quarter.The team completed a SWOT analysis and incorporated its results into a strategic market plan.After evaluating the company's competitiveness and creating a revenue plan,the team now has to determine the resources necessary to meet the performance objectives of the strategic market plan.Which of the following steps will help the company determine the resource allocation for the coming quarter?

A)marketing and sales budget
B)situation analysis
C)SWOT analysis
D)strategic market plan
E)marketing mix plan

Question 54

Which of the following types of budgets is based on the cost of customer acquisition and retention and the combination of new and retained customers?

A)top-down budget
B)customer-mix budget
C)objective and task budget
D)bottom-up budget
E)total consumer budget

Question 55

A company's fixed marketing administrative expense was estimated to be $12 million.It has retained 245,000 customers and has acquired 36,000 new customers.The acquisition cost per customer is 10 times more than the retention cost per customer.If the retention cost per customer is $180,calculate the marketing and sales budget of the company.

A)$236.6 million
B)$338.4 million
C)$183.9 million
D)$120.9 million
E)$85.8 million

Question 56

List and briefly describe in order the steps in the process of building a marketing plan.

Question 57

In which type of marketing budget is each element of the marketing effort budgeted for specific tasks identified in the marketing plan?

A)top-down budget
B)customer-mix budget
C)bottom-up budget
D)annual budget
E)objective and task budget

Question 58

Which of the following would be considered an income statement component of performance plan?

A)expenditures
B)marketing profits
C)pricing
D)asset turnover
E)profitability metrics

Question 59

The marketing and sales budget of Cayzon Inc.is estimated to be $250 million and its marketing administration cost is estimated to be $20 million.The acquisition cost per customer is $2,000,and it is 10 times more than the retention cost per customer.If 45,000 new customers are acquired,what is the total number of retained customers?

A)320,000 customers
B)825,500 customers
C)460,000 customers
D)700,000 customers
E)160,500 customers

Question 60

The marketing and sales budget of Wilson Inc.is estimated to be $250 million.It has retained 450,000 customers and acquired 100,000 new customers.The marketing administration cost of the company is $90 million.If the retention cost per customer is $75,calculate the acquisition cost per customer.

A)$450
B)$1,262.5
C)$1,580.5
D)$676
E)$980