Deck 23: Building an Effective Marketing Plan

Question 1

Which of these statements regarding bullet points in a marketing plan is most accurate?

A) Avoid using bullet points whenever possible because they distract the reader.
B) If possible, change the shape of the bullet point (circle, star, square, etc.) whenever you change topics.
C) Bullet points should be used with all major headings to help draw attention to them.
D) Bullet points enable key points to be highlighted effectively in a list form.
E) Bullet points make it easier to highlight points that require long explanations.

Answer 1

D

Question 2

All of these are questions most lenders and prospective investors expect to be answered in a marketing or business plan except which?

A) Is the business or marketing idea valid?
B) Who is your competition and what are they doing?
C) Are the financial projections realistic and healthy?
D) Are the key management and technical personnel capable, and do they have a track record in the industry within which they must compete?
E) Is there something unique or distinctive about the product or service that separates it from substitutes and competitors?

Answer 2

B

Question 3

Which of these statements about marketing plans is most accurate?

A) A marketing plan has little or no value unless it projects plans at least 10 years into the future.
B) It is important to use the exact market plan format regardless of the product or industry.
C) Although sales figures will vary greatly, the marketing plan for a small family-owned food store will be almost identical to the marketing plan of a large supermarket chain, if written correctly.
D) Although the target audience and purpose affect the design of a marketing plan, the type of industry plays a relatively small, if any, role in its design.
E) No single generic marketing plan applies to all organizations and all situations.

Answer 3

E

Question 4

________ is a road map for the entire organization for a specified future period of time, such as one year or five years.

A) A marketing dashboard
B) A strategic plan
C) An operations plan
D) A business plan
E) A marketing metric

Question 5

Which of these statements is best suited for a business or marketing plan?

A) This will be a fantastic, once in a lifetime opportunity in the amazing world of chocolate lovers.
B) This product offers a unique opportunity to meet the needs of consumers who love the flavor of chocolate but who are allergic to cocoa.
C) What could be better than chocolate? Nothing! That's why this is a phenomenal opportunity for those who really understand the exciting world of chocolate.
D) We are not kidding. This new non-cocoa chocolate candy is simply irresistible; everyone we gave a sample to fell in love with it.
E) The fact that this chocolate-flavored candy does not contain cocoa should be a selling point.

Question 6

Which of these statements is written in the best writing style for a business or marketing plan?

A) We have found three different groups that could benefit from our new software.
B) Being that teachers, social workers, and nurses can use this software, it will offer great opportunities.
C) There are three potential target markets for this software: teachers, social workers, and nurses.
D) There is a target market of teachers; there is a target market of social workers; and there is a target market of nurses as well, who might benefit if we get the opportunity to bring this product to the public.
E) The fact that there are three different "money makers" to shoot for should be a selling point.

Question 7

Arthur R. Kydd has helped launch more than 60 start-up firms and believes if you have a real product with a distinctive point of difference that satisfies the needs of customers, you may have a winner. The way to demonstrate this to him is to

A) create a prototype and test it in the real world.
B) submit a quality résumé that demonstrates the likelihood of future success.
C) develop a well-written marketing or business plan.
D) make a list of all the other ideas you have, including this one.
E) ask for an informal interview.

Question 8

There are no magic one-size-fits-all guidelines for writing successful marketing and business plans. All of the writing and style guidelines below still generally apply except which?

A) Use a direct, professional writing style.
B) Be positive and specific to convey potential success.
C) Shoot for a plan that is 15 to 35 pages in length, excluding financial projections and appendixes.
D) Include as an attachment the résumés for all key players in your management team.
E) Use numbers for impact.

Question 9

Elements in a marketing plan depend on who the audience is and what the purpose is. For example, the marketing plan for an external audience would

A) give a broad general overview.
B) function as a sales document.
C) be more informally written.
D) be directed to the people who would be affected by it.
E) be directed to the people who must implement the plan.

Question 10

There is no single generic marketing plan that can apply to all organizations or all institutions. Rather, the specific format for a marketing plan for an organization depends on which of these?

A) the financial investment needed
B) the time frame
C) available resources
D) the target audience and purpose
E) the competition

Question 11

While several different groups of stakeholders are likely to read a business or marketing plan, which group is likely to be the most critical of these documents?

A) prospective employees
B) potential customers
C) potential suppliers
D) future distributors, wholesalers, and retailers
E) possible investors or lenders

Question 12

The format for a marketing plan for an organization depends on which of these?

A) the time frame
B) the competition
C) the available resources
D) the kind and complexity of the organization
E) the financial investment needed

Question 13

________ is a road map for the marketing activities of an organization for a specified future time period, such as one year or five years.

A) A marketing plan
B) A mission statement
C) An operation plan
D) A business plan
E) A marketing dashboard

Question 14

For a business or marketing plan, its level of detail should reflect

A) the kind and complexity of the organization.
B) the educational background of the key personnel.
C) the investment potential of the investors.
D) how well you know your audience.
E) whether the plan is for a product or service.

Question 15

Which of these statements regarding marketing and business plans is most accurate?

A) In contrast to a marketing plan, a business plan is a road map for the entire organization for a specified future period of time, such as one year or five years.
B) In contrast to a business plan, a marketing plan is a road map for the entire organization for a specified future period of time, such as one year or five years.
C) A marketing plan contains a greater degree of detail regarding research and development, operations, and manufacturing activities of the organization.
D) A business plan is used for industrial products and a marketing plan is used for consumer products.
E) A business plan is used for manufactured products and a marketing plan is used for services.

Question 16

Which of these is one of the six questions most lenders and prospective investors expect to be answered in a marketing or business plan?

A) Does the prospective product meet all government safety standards?
B) Who is your competition and what are they doing?
C) Who will be your key suppliers?
D) Is there something unique or distinctive about the product?
E) What much will you pay in taxes?

Question 17

Elements in a marketing plan depend on who the audience is and what its purpose is. For example, the marketing plan for an internal audience would

A) be informally written.
B) contain specific financial details.
C) point the direction for future marketing activities.
D) explain organization and structure.
E) provide biographical information of key players.

Question 18

A key difference between a marketing plan and a business plans is that

A) a marketing plan is used for consumer products and a business plan is used for industrial products.
B) a marketing plan contains a greater degree of detail regarding research and development, operations, and manufacturing activities of the organization.
C) a business plan contains a greater degree of detail regarding research and development, operations, and manufacturing activities of the organization.
D) a marketing plan covers a greater length of time for its financial projections.
E) a business plan covers a greater length of time for its financial projections.

Question 19

There are no magic one-size-fits-all guidelines for writing successful marketing and business plans. Which writing and style guideline still generally applies?

A) Use different color fonts or paper to represent different sections of your plan.
B) Use informal language unless you plan to borrow at least $100,000.
C) Include as an attachment the résumés for all key players in your management team.
D) Set a firm date by which you will require an answer from a potential investor, after which you will take your plan somewhere else.
E) Use bullet points for succinctness and emphasis.

Question 20

The industry within which a product will compete should affect the format of an organization's business or marketing plan. However, since the complexities of products can differ greatly,

A) the size of the potential workforce included in their plans differs.
B) the investment potential of investors included in their plans differs.
C) the experience of the key personnel demonstrated in their plans differs.
D) the time periods likely to be covered by their plans differ.
E) the knowledge of technical language used in their plans differs.

Question 21

Shorter tables or graphs

A) must start at the top of a new page so as not to create page break problems.
B) can be inserted anywhere in the page of text in a plan and do not have figure numbers.
C) should not be used since words would be more effective in describing the content than a table or graph.
D) be at least two inches but not more than five inches high.
E) are more for style than for substance.

Question 22

It is helpful to use A-level (the first level) and B-level (the second level) headings under the numbered section headings of marketing and business plans. These headings should

A) help readers make easy transitions from one topic to another.
B) only be used in marketing plans and not in business plans.
C) only be used in business plans and not in marketing plans.
D) be used sparingly, otherwise they lose their cohesiveness and effectiveness.
E) continue in traditional outline form all the way through E-level (the fifth level) if needed, but no further.

Question 23

For the benefit of its audience, Paradise Kitchens divided its goals into

A) product and process.
B) product and service.
C) internal and external.
D) employee and customer.
E) financial and nonfinancial.

Question 24

The SWOT analysis section of a marketing plan identifies a company's

A) new technological innovations.
B) strengths, weaknesses, opportunities, and threats.
C) marketing program.
D) barriers to entry.
E) sustainable competitive advantages.

Question 25

The primary purpose of the Paradise Kitchens' company description section of the marketing plan was to

A) assure the investors of the company's financial health.
B) introduce all the members and key players in the organization.
C) describe the product's competition.
D) explain how the organization will be structured.
E) highlight the recent history and successes of the organization.

Question 26

The effectiveness of a table is determined by its ability to

A) include every possible piece of information available.
B) catch the reader's attention with its design and sophistication.
C) create a powerful visual metaphor.
D) summarize a large amount of information in a short amount of space.
E) clarify difficult financial information or calculations.

Question 27

To translate its core competencies into a sustainable competitive advantage, Paradise Kitchens will work closely with key

A) lenders and venture capitalists.
B) suppliers and distributors.
C) advertising agencies and public relations firms.
D) federal and state regulators to import tariff free ingredients.
E) Hispanic spokespeople to get the word out.

Question 28

Ideally, each numbered section should start ________ to improve readability.

A) with all capital letters
B) in a font size at least three points larger than the body of the text
C) on a new page
D) either capitalized and bolded or italicized and underlined
E) with a brief introduction of what will be discussed

Question 29

The table of contents is usually found

A) as an attachment with the letter of transmittal.
B) on the cover of the plan.
C) immediately after the executive summary.
D) between the executive summary and the company description.
E) immediately before the executive summary.

Question 30

The situation analysis section of a marketing plan is a snapshot to answer the question,

A) Where are we now?
B) What is the competition doing?
C) How will our organization change?
D) What is happening in the industry?
E) Where are we going?

Question 31

Which of these statements regarding business or market plan page length is most accurate?

A) As a quick rule of thumb, there should be one page for every $10,000 required in the projected budget.
B) The length of a business plan should never be less than 30 pages or greater than 35 pages.
C) The length of the body of the plan should be between 15 and 30 pages including financial projections and appendices.
D) For every page in the body of the work, there should be at least one additional page in the appendix to complement it.
E) Although general guidelines suggest a length of 15 to 35 pages, the length of the plan should reflect the complexity of the product or service.

Question 32

Which of these statements regarding the use of photos in the body of a marketing plan is most accurate?

A) Photos should always appear in black and white or they lose their effectiveness.
B) Photos should always appear in color, regardless of the additional cost, since the overall effect is more professional than simply black-and-white images.
C) Photos should include a brief caption that ties them to the text and highlights the reason for being included.
D) If a photo is important enough to be included in the body of a marketing plan, it should require no further information.
E) Photos should never take up more than one-eighth of the page if they are used in the body of a marketing plan rather than in an appendix.

Question 33

Paradise Kitchens' strategic focus and plan section of the marketing plan contained three key elements:

A) mission, goals, and core competency/sustainable competitive advantage.
B) mission, goals, and organizational structure.
C) executive summary, company description, and financial overview.
D) organizational structure, core competency/sustainable competitive advantage, and forecast of potential profits.
E) organization's key players, organizational structure, and competency/sustainable competitive advantage.

Question 34

Which of these statements regarding visuals is most accurate?

A) Visuals should not be used unless they are in black and white; color is not considered professional in a formal business plan.
B) Visuals should be used sparingly because it is assumed that if you cannot explain an idea in words, you don't have a sufficient grasp of your product.
C) Visuals such as illustrations, graphs, and charts are acceptable; photos are less professional and should be avoided.
D) Visuals such as photos, illustrations, graphs, and charts enable massive amounts of information to be presented succinctly.
E) Visuals should appear in the appendices of the plan, never in the body of the plan itself.

Question 35

In addition to quality content, a plan's layout and design are also important. Which of the following statements is most accurate?

A) Fonts that are serif type should be used within the body of the plan and sans serif type should be used with charts and graphs.
B) Fonts that are sans serif are easier to read and should be used in the body of the plan.
C) A report printed on heavy weight card stock adds professionalism.
D) The font size should change with the importance of the material. Important material should be at least 14 points and go as small as 10.5 points for less important details.
E) There should be a different font style for each new section within the plan, provided no more than five distinct fonts are used.

Question 36

It can be inferred from the Paradise Kitchens mission statement that the firm will most likely use ________ strategy.

A) a penetration pricing
B) an above-market pricing
C) a prestige pricing
D) a specialty product pricing
E) a loss leader pricing

Question 37

Which of these goals uses parallel construction?

A) Make the best non-battery flashlight possible, make the brand name known in every household in the United States, and make the flashlight the official flashlight of every state-owned hospital in the United States.
B) To make the finest bicycles in the professional racing field, to attain sponsorship from at least three top Olympic riders, and obtain a return on equity of at least 15 percent.
C) Enter three major markets in the next three years, maintain a market share above 20 percent, while continuing to provide the best customer service according to industry polls.
D) To increase market share by at least 10 percent each year for the next five years, reduce employee turnover by 20 percent within the next five years, and to obtain a return on equity of at least 15 percent for each of the next five years.
E) Generate sales of $100 million, generate ROI of 20 percent, and maintaining selling costs at 10 percent of sales.

Question 38

The qualitative mission statement focuses the activities of Paradise Kitchens for its

A) brands.
B) competitors.
C) regulators.
D) stakeholders.
E) ideas.

Question 39

The single most important section of the marketing plan (usually only two pages long) that "sells" the plan to readers is called the

A) executive summary.
B) strategic plan.
C) vision statement.
D) overview of financial projections.
E) synopsis.

Question 40

To the company's knowledge, Howlin' Coyote is known for being the only premium-quality frozen ________ sold in U.S. grocery stores.

A) desserts
B) pizza
C) chili
D) sushi
E) waffles

Question 41

According to the Paradise Kitchens marketing plan, two-thirds of American households consume Mexican foods. This information is used to infer that there is a more favorable attitude on the part of all Americans toward

A) Southwestern flavors and other regional foods in general.
B) spicy foods that include red chili peppers.
C) ethnic foods and regional cuisine.
D) bean products, cheese products, and tortillas.
E) heartier foods that are simple to prepare.

Question 42

The two key elements of the customer analysis section of the Paradise Kitchens marketing plan are

A) customer characteristics and health and nutrition concerns.
B) customer characteristics and target market demographics.
C) consumer demographics and geographical distribution.
D) consumer demographics and consumer psychographics.
E) consumer psychographics and consumer life style data.

Question 43

Which of these does Paradise Kitchens consider a threat?

A) unique, high-quality, high-price products
B) many lower-quality, lower-price competitors
C) Technical breakthroughs enable smaller food producers to achieve many economies available to large competitors.
D) Consumer income is high and convenience is important to U.S. households.
E) more households "eating out" and bringing prepared take-out into the home

Question 44

For readability and clarity, Paradise Kitchens presents its SWOT analysis section of a marketing plan as a figure (Figure 1. SWOT Analysis for Paradise Kitchens). It's divided into two sections:

A) Company Analysis; Industry Analysis.
B) Internal Factors: Opportunities and Threats; External Factors: Strengths and Weaknesses.
C) Internal Factors: Strengths and Weaknesses; External Factors: Opportunities and Threats.
D) Financial Factors; Nonfinancial Factors.
E) Domestic Issues; Global Issues.

Question 45

Paradise Kitchens uses the following type face/font style choices: Customer Analysis (B-level: bold) and Customer Characteristics (C-level: bold/italics) to indicate that

A) Customer Characteristics and Customer Analysis are synonymous and can be used interchangeably.
B) Customer Analysis is a subcategory of Customer Characteristics.
C) Customer Analysis is the name of a secondary source and Customer Characteristics refers to internally collected primary data.
D) Customer Analysis is the formal marketing term and Customer Characteristics is the layman's term.
E) Customer Characteristics is a subcategory of Customer Analysis.

Question 46

Paradise Kitchens used external secondary data to provide evidence that there is a growing trend in frozen prepared foods. According to its marketing plan, prepared frozen meals accounted for around ________ percent of the total frozen food market.

A) 5
B) 11
C) 17
D) 35
E) 49

Question 47

In terms of paragraph style, most readers prefer

A) block style because the appearance of the text is cleaner.
B) block style because it seems more professional.
C) block style because it lends itself better to financial documents.
D) indented paragraphs because they make longer documents easier to read.
E) indented paragraphs because they are more in keeping with professional business prose.

Question 48

Which of these does Paradise Kitchens consider a weakness?

A) unique, high-quality, high-price products
B) limited resources that may restrict growth
C) technical breakthroughs that enable smaller food producers to achieve the same economies of scale available to large competitors
D) importance of convenience to U.S. households.
E) more households "eating out" and bringing prepared take-out into the home

Question 49

In terms of its marketing and product objectives, which of these statements regarding Paradise Kitchens is most accurate?

A) Paradise Kitchens does not intend to expand its markets; rather, it will choose a market penetration strategy through increasing same-store sales.
B) Howlin' Coyote's brand presence will be expanded through the addition of a totally new line of ethnic desserts (flan, churros, sopapillas).
C) Paradise Kitchens will gradually phase out its food service division to allow for growth in its new frozen dessert line.
D) Howlin' Coyote's brand presence will be expanded through the addition of new products in the frozen foods section.
E) By the end of Year 5, Paradise Kitchens will expand its chili, salsa, burrito, and enchilada business to reach small suburban and rural areas in the relatively untapped Midwest market.

Question 50

The target markets section of a marketing plan identifies the specific ________ toward which the company's products are directed.

A) resellers
B) competitors
C) stakeholders
D) product groupings
E) niches

Question 51

Which of these does Paradise Kitchens consider an opportunity?

A) unique, high-quality, high-price products
B) many lower-quality, lower-price competitors
C) lack the economies of scale of huge competitors
D) Consumer income is high and convenience is important to U.S. households.
E) more households "eating out" and bringing prepared take-out into the home

Question 52

In response to current trends regarding health and nutrition, competitors such as Don Miguel, Mission Foods, El Monterey, and José Olé plan to offer or recently have offered more "carb-friendly" and "fat-friendly" products. Paradise Kitchens' response to this trend will be to

A) change its recipes to be even lower in carbs, fats, and salt than competitors' products.
B) emphasize its products' taste and authenticity rather than their nutritional characteristics.
C) emphasize the already healthy product characteristics as well as the product's taste, convenience, and flexibility.
D) emphasize the research findings that indicate that Americans are actually getting too little fat in their diets, which makes them overeat in order to feel satisfied.
E) capitalize on the fact that its products have always been healthier than competitors' products and its plan to make meals even healthier.

Question 53

The company analysis section of a marketing plan provides details of the company's strengths and marketing strategies that will enable it to achieve its mission and goals. Paradise Kitchens lists a major strength as

A) a stable financial base.
B) strong connections to the Hispanic community.
C) co-ownership in a chain of small grocery stores.
D) the professional food industry experience of the co-founders.
E) national "chili cook-off" titles.

Question 54

The industry analysis section of a marketing plan provides perspective for information regarding

A) the competition, the economy, and the company's customers.
B) the company, the economy, and the company's customers.
C) current trends, the competition, and the economy.
D) current trends, projected changes, competitive advantages.
E) the competition, the company, and the company's customers.

Question 55

As part of its competitor analysis section of its marketing plan, Paradise Kitchens discussed the chili market, which represents over $500 million in annual sales. Chili products fall into two categories, which are

A) canned chili and dry chili.
B) frozen and canned chili.
C) pre-made and ready-to-make chili kits.
D) Mexican chili and "Americanized" chili.
E) chili with meat (con carne) and vegetarian chili with beans.

Question 56

Paradise Kitchens analyzed two key trends in its industry, which were

A) frozen foods and microwavable foods.
B) Mexican foods and South American foods.
C) eating out and take-out.
D) frozen foods and Mexican foods.
E) larger portion size and vegetarian meals.

Question 57

Which of these does Paradise Kitchens consider a strength?

A) many lower-quality, lower-price competitors
B) lack the economies of scale of huge competitors
C) importance of convenience to U.S. households.
D) more households "eating out" and bringing prepared take-out into the home
E) unique, high-quality, high-price products

Question 58

The chances of success for a new product are significantly increased if

A) the company sets goals that both flexible and adaptable.
B) objectives are set for the product itself and target market segments are identified for it.
C) at least 25 percent of the initial budget includes advertising and promotional expenditures.
D) all initial production, distribution, and promotion are done in-house where management can exert the greatest quality control.
E) the firm outsources those elements of production, distribution, or promotion in which it has the least expertise.

Question 59

Paradise Kitchens included a detailed figure to highlight its SWOT analysis. However,

A) there was no further explanation or written summary.
B) it was complemented by a short, but more in-depth, discussion of important points.
C) it failed to perform a situation analysis.
D) it did not include an industry analysis.
E) it also included a page-long explanation of each of the four factors.

Question 60

Paradise Kitchens uses external secondary data to reinforce its position that there is a growing trend in the consumption of Mexican foods among U.S. households. According to its marketing plan, Mexican foods, such as burritos, enchiladas, and tacos, are consumed in approximately ________ percent of American households.

A) 35
B) 47
C) 66
D) 79
E) 86

Question 61

A unique aspect of Paradise Kitchens' packaging is that

A) the information is printed in English on one side and Spanish on the other.
B) the color of the box gets redder as the spices get hotter.
C) there is a Southwestern motif on the box instead of pictures of the product.
D) there is a thermometer strip that indicates when the product is properly thawed.
E) there are hidden figures created by the outlines of the chili beans for people to look at while preparing the meal.

Question 62

The implementation plan

A) describes the formation of the marketing program.
B) displays the projected financial results of the plan.
C) shows how the company will turn plans into results.
D) identifies how the firm will select its target markets and position its products.
E) analyzes its marketing opportunities and threats.

Question 63

The three key elements of the promotion strategy section in the Paradise Kitchens marketing plan are

A) quantity discounts, in-store demonstrations, a chili eating contest.
B) bundle pricing with a chili bowl, in-store demonstrations, and cents-off coupons.
C) a chili eating contest, in-store demonstrations, and cents-off coupons.
D) a contest for the best new slogan, a chili eating contest, and free taste tests at major grocery chains.
E) in-store demonstrations, recipes, and cents-off coupons.

Question 64

The Paradise Kitchens chart in the organization section of its marketing plan reflects the bare-bones organization structure of successful small businesses. The four key positions that report to the president and CEO are the director of operations, the director of sales, the director of finance and administration, and the

A) chief marketing officer.
B) director of advertising and promotions.
C) director of research and development.
D) director of human resources.
E) senior distribution manager.

Question 65

The marketing program section of a marketing plan consists of

A) the four marketing mix elements.
B) the five environmental forces.
C) the financial forecasts for the industry and the company itself.
D) the target market identification and market segment selection.
E) the specific steps that will be taken to implement the plan.

Question 66

The greatest single factor in a new product's failure is

A) a lack of advertising and promotion.
B) attempting to reach a target market that is too small.
C) too few competitors.
D) insignificant points of difference.
E) lack of experienced management.

Question 67

________ helps communicate the company's unique points of difference of its products to prospective customers in a simple, clear way.

A) A positioning strategy
B) A market-product grid strategy
C) A competition analysis
D) An implementation strategy
E) A situational analysis

Question 68

When appropriate and space permits, the price strategy section of a marketing plan would include a

A) SWOT analysis.
B) situational analysis.
C) marginal analysis.
D) diversification analysis.
E) break-even analysis.

Question 69

According to its marketing plan, Paradise Kitchens is positioning itself in consumers' minds as

A) a moderately priced "homestyle taste of the Southwest" chili.
B) a low-cost "Mexican/American meld of flavors" for easy-to-prepare frozen entrees.
C) traditional "Taste of Mexico" that uses all organic ingredients in semi-prepared meals.
D) very high-quality "gourmet Southwestern/Mexican" frozen entrees and desserts.
E) very high-quality "authentic Southwestern/Mexican tasting" chilies that can be prepared easily and quickly.

Question 70

The financial data and projections section of the marketing plan for Paradise Kitchens includes two subsections:

A) past sales revenues and current return on investment.
B) current return on investment and revenues projected for the next year.
C) current return on investment and revenues projected for the next five years.
D) past sales revenues and revenues projected for the next five years.
E) current debt and requested financing.

Question 71

Charts are often used in the implementation section of a marketing plan to

A) prioritize marketing activities and set deadlines.
B) assign tactical marketing decisions and specify target markets.
C) prioritize marketing activities and assign resources.
D) specify target markets and assign resources.
E) set deadlines and assign responsibilities for tactical marketing decisions.

Question 72

The place/distribution strategy section in the Paradise Kitchens marketing plan specified that Howlin' Coyote chili will initially be sold

A) to restaurants specializing in American cuisine.
B) through company-owned stores at outlet malls.
C) exclusively to mass merchandisers such as Walmart and Target.
D) through a food distributor, which in turn will sell directly to grocery stores.
E) online to consumers to bypass "the middleman"; the product will be shipped using packed dry ice containers to keep it frozen during transportation.

Question 73

Paradise Kitchens describes its primary target market for Howlin' Coyote products as households with one to three people, where often both adults work, and with individual income typically above ________ per year.

A) $25,000
B) $50,000
C) $75,000
D) $100,000
E) $250,000

Question 74

The price strategy section articulates the specific product price and the product's price position relative to ________. When appropriate, this section would include a

A) potential substitutes; break-even analysis.
B) the closest competition; situational analysis.
C) industry standards; marginal analysis.
D) the closest competition; diversification analysis.
E) industry standards; break-even analysis.

Question 75

Paradise Kitchens proposes entering 17 new metropolitan markets in the next five years. For this reason, the financial plan cannot use simple trend extrapolation. Instead, the forecasting method used was

A) curvilinear trend extrapolation.
B) the lost horse technique.
C) a survey of buyers' intentions.
D) a salesforce survey.
E) direct forecasting.

Question 76

The three key elements of the product strategy section in the Paradise Kitchens marketing plan are

A) product benefits, product line, and product packaging.
B) product characteristics, branding strategies, and packaging.
C) unique product quality, product line, and branding strategies.
D) product line, unique product quality, and packaging.
E) product line, product brand, and product packaging.

Question 77

In the financial data and projections section of the Paradise Kitchens marketing plan, the company chose to use a bar chart to present its past revenues (from 2011 to 2019) in addition to a numerical table for projected sales revenues (from 2019 to 2024). Paradise Kitchens used a bar chart because

A) it made the lack of sales for the previous years look less dramatic.
B) the numerical sales figures were too difficult to interpret.
C) there was too much information to present in such a small physical space.
D) it could gloss over inconsistencies and anomalies.
E) it more clearly shows the company's recent growth.

Question 78

All of these are points of difference for Paradise Kitchens except which?

A) high-quality, authentic frozen chili
B) combination of quick preparation and homestyle taste
C) mild spices for the relatively inexperienced American palate
D) premium packaging
E) a range of chili product flavors

Question 79

To help buyers see the many different uses for Howlin' Coyote Chili, Paradise Kitchens

A) sponsored a recipe contest with the first prize being a trip for two to Mexico.
B) offered recipes printed on the back of the packages, at in-store demonstrations, and on coupons.
C) used bundle pricing with a chili bowl and a selection of products.
D) televised a series of short but informative commercials on The Food Network cable TV channel.
E) published small, full-color illustrated pamphlets as buyer incentives to its wholesalers.

Question 80

To help buyers see the many different uses for Howlin' Coyote Chili, the company has

A) sponsored a recipe contest with the first prize being a trip for two to Mexico.
B) used bundle pricing with a chili bowl and a selection of products.
C) sponsored a series of short but informative commercials on the Cooking Channel.
D) published small, full-color illustrated pamphlets as buyer incentives to its wholesalers.
E) printed recipes on the inside of its packaging.