Deck 2: Planning, Implementing, and Evaluating Marketing Strategies

Question 1

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

Answer 1

C

Question 2

Describe the two major methods for evaluating the actual performance of marketing strategies.

Answer 2

The principal means by which a marketer can gauge whether a marketing strategy has been effective in achieving objectives is by analyzing the actual performance of the marketing strategy. Sales analysis uses sales figures to evaluate a firm's current performance. It is a common method of evaluation because sales data are readily available, at least in aggregate form, and can reflect the target market's reactions to a marketing mix. If sales spike after a particular marketing mix is implemented, marketers can be reasonably certain that the marketing mix was effective at reaching the target audience. Information gleaned from sales data alone is not sufficient, however. To be useful, marketers must compare current sales data with forecasted sales, industry sales, specific competitors' sales, and the costs incurred from marketing efforts to achieve the sales volume. Although sales analysis is critical for evaluating the performance of a marketing strategy, it provides only a partial picture. A marketing strategy that successfully generates sales may nevertheless be deemed ineffective if it is extremely costly. A firm must take into account the marketing costs associated with a strategy to gain a complete understanding of its effectiveness at achieving a desired sales level. Marketing cost analysis breaks down and classifies costs to determine which are associated with specific marketing efforts. Comparing costs of previous marketing activities with results allows a marketer to allocate the firm's marketing resources better in the future. A company that understands and manages its costs appropriately has a competitive advantage.

Question 3

Discuss how a firm's orientation is related to the development of its strategic plan.

Answer 3

Through the process of strategic planning, a company establishes an organizational mission and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy. A market orientation should guide the process of strategic planning to ensure that a concern for customer satisfaction is an integral part of the entire company, leading to the development of successful marketing strategies and planning processes.

Question 4

Compare and contrast corporate strategy and marketing strategy.

Question 5

Discuss the different ways of organizing the marketing unit.

Question 6

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.

Question 7

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.

Question 8

Discuss the creation of a marketing plan. What are the major components of a marketing plan?

Question 9

Define the four product categories used in the Boston Consulting Group (BCG) product-portfolio analysis.

Question 10

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.

Question 11

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.

Question 12

How does a firm use a market opportunity to reach a particular target market?

Question 13

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.

Question 14

In what ways does having a mission statement help an organization achieve its goals?

Question 15

A SWOT analysis focuses on an organization's:

A) Strengths, Weaknesses, Opportunities, and Threats.
B) Strengths, Weaknesses, Opportunities, and Transformational Innovations.
C) Sustainability, Weaknesses, Organics, and Threats.
D) Strengths, Workers, Opportunities, and Transactions.
E) Sustainability, Weaknesses, Opportunities, and Transactions.

Question 16

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.

Question 17

Describe the two major components of marketing strategy. What should marketing managers consider when developing marketing strategy?

Question 18

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

Question 19

Describe the process of strategic planning. How does this process help marketing managers?

Question 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.

Question 21

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.

Question 22

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

Question 23

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

Question 24

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.

Question 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.

Question 26

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.

Question 27

Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted on properly are called

A) strengths.
B) market strategies.
C) market niches.
D) threats.
E) opportunities.

Question 28

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

Question 29

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.

Question 30

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.

Question 31

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

Question 32

____ 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

Question 33

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.

Question 34

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.

Question 35

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.

Question 36

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

Question 37

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.

Question 38

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.

Question 39

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

Question 40

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

Question 41

Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.

A) nonsustainable competitive
B) sustainable marketing
C) sustainable control
D) sustainable implementation
E) sustainable competitive

Question 42

Which of the following is not a component of a marketing plan?

A) Environmental analysis
B) Marketing strategies
C) Product
D) Executive summary
E) Marketing implementation

Question 43

Emma is responsible for developing and implementing the marketing plan for a new type of walking shoe targeted toward older women. Her responsibility includes making sure that the production and deliveries to the retail stores are coordinated for this new product. In order for the marketing implementation to be successful, Emma should be sure the needs of ____ customers are met.

A) the external
B) the internal
C) both the internal and external
D) the planned
E) both the planned and realized

Question 44

Sayed's employer is currently developing a new marketing strategy. The top managers have developed the marketing strategy and have given it to Sayed so that he can now develop an implementation plan. Sayed's company will most likely end up with which type of strategy?

A) Decentralized
B) Centralized
C) Rigid
D) Intended
E) Realized

Question 45

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.

Question 46

Business decisions made in creating a marketing mix

A) are made before a target market is identified.
B) are unchangeable once they are agreed on by management.
C) are only as good as the organization's understanding of the needs of the target market.
D) usually take place when a strategic window is open.
E) must always be consistent with the firm's opportunities.

Question 47

The Texas Pitt Barbecue Corporation has conducted a SWOT analysis of its competition and sees a marketing opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is ____.

A) specifying how they will achieve their marketing objective
B) how they will address the competition's prices
C) coming up with a quantitative measure for their objective
D) developing a qualitative measure for their objective
E) assessing their weaknesses

Question 48

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

Question 49

All marketing mix decisions must have two characteristics: ____ and ____.

A) consistency; flexibility
B) consistency; rigidity
C) formality; flexibility
D) variability; flexibility
E) formality; rigidity

Question 50

Hallaway's Corp.'s new shampoo, VS2, is faltering badly in the market. Hallaway's marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Hallaway Marketing Director Carolyn Willis said that the problem is that VS2 has the most poorly written ____ she has ever seen.

A) marketing plan
B) competitive plan
C) implementation plan
D) media schedule
E) product specification sheet

Question 51

Harley-Davidson's Harley Owner's Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) ____ over other motorcycle manufacturers.

A) controllable advantage
B) uncontrollable competitive advantage
C) sustainable marketing advantage
D) effective competitive advantage
E) sustainable competitive advantage

Question 52

Starbucks provides training and support to its employees, including health-care benefits. Through these ____ efforts Starbucks is better able to deliver quality products and service to its customers.

A) internal management
B) extended marketing
C) intended marketing
D) external marketing
E) internal marketing

Question 53

Which of the following is not a purpose of the marketing plan?

A) Communicate internally with employees
B) Assign tasks and responsibilities for implementation
C) Specify the allocation of resources
D) Monitor the performance of a marketing strategy
E) Serve as a contract with the customer

Question 54

A marketing plan document usually begins with a(n)

A) executive summary.
B) introduction to the company's marketing objectives.
C) summary of current performance as compared with past performance.
D) situation analysis.
E) opportunity and threat analysis.

Question 55

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

Question 56

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

Question 57

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

Question 58

Gucci Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both ____ and ____.

A) consistent; flexible
B) formal; flexible
C) variable; flexible
D) consistent; rigid
E) consistent; formal

Question 59

A marketing plan

A) is characteristic of production-oriented firms and other mass producers.
B) provides a framework for implementing and controlling marketing activities.
C) always increases the marketing manager's operating costs.
D) produces plans that are short term in orientation.
E) restricts the marketing manager's future options.

Question 60

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.

Question 61

In a traditional organization, marketing decisions are likely to be

A) very decentralized.
B) centralized at the top levels of the organization.
C) made by frontline employees.
D) made by frontline managers.
E) made only by the CEO.

Question 62

The strategic planning process begins with a detailed analysis of the organization's strengths and weaknesses and the identification of opportunities and threats within the marketing environment.

Question 63

Scenario 2.2 Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including the marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.
Refer to Scenario 2.2. The college-aged student represents EXperience Limited's ____, and the tours it operates represent the ____ element of the marketing mix.

A) target market; distribution
B) customer relationships; distribution
C) cash cow; product
D) cash cow; distribution
E) target market; product

Question 64

Marketing managers can take each of the following corrective actions for reducing a discrepancy between established performance standards and actual performance except

A) improving actual performance.
B) reducing the performance standard.
C) totally changing the performance standard.
D) changing the marketing strategy.
E) coordinating a new step in performance analysis.

Question 65

A marketing strategy is a written document that specifies the activities to be performed to implement and control a firm's marketing activities.

Question 66

Scenario 2.1 Use the following to answer the questions.
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights.
Refer to Scenario 2.1. The fact that Southwest Airlines has a history of being able to retain its employees is a(n) ____ in its SWOT analysis. This low turnover creates more knowledgeable and satisfied employees, a potential _______.

A) weakness; opportunity
B) strength; competitive advantage
C) threat; market opportunity
D) opportunity; competitive advantage
E) strength; market opportunity

Question 67

One way that Honda evaluates its product and service level is by how well it ranks on the J. D. Power & Associates Sales Satisfaction Survey. In doing so, Honda is

A) controlling marketing activities.
B) taking corrective action.
C) empowering its employees.
D) evaluating actual performance.
E) setting performance standards.

Question 68

A competitive advantage is created when a company matches its core competency to the opportunities it has discovered in the market.

Question 69

Scenario 2.1 Use the following to answer the questions.
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights.
Refer to Scenario 2.1. Southwest's low fares, dependability, and its on-time flights represent its

A) competitive advantage
B) marketing opportunity
C) marketing plan
D) marketing objectives
E) total quality management

Question 70

Scenario 2.2 Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including the marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.
Refer to Scenario 2.2. The fact that college enrollments have been increasing at a fast rate the past few years is an example of ____ and creates a ____ for EXperience Limited.

A) an environmental factor; marketing opportunity
B) an environmental factor; strategic door
C) a company strength; marketing opportunity
D) a company strength; competitive advantage
E) a marketing opportunity; competitive advantage

Question 71

Megan knows that whether she decides to interact with her customers in person, by phone, online, Facebook, Twitter, or by fax, that ____ should ultimately drive the marketing strategy.

A) marketing research
B) polite responsiveness
C) her customers
D) product availability
E) company goals

Question 72

The first step in the strategic performance evaluation is to

A) take corrective action.
B) reduce the difference between actual and desired standards.
C) evaluate actual performance.
D) compare actual performance and standards.
E) establish performance standards.

Question 73

The analysis of strengths and weaknesses focuses on internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

Question 74

Marketing strategies should be established before marketing objectives are decided.

Question 75

Mama Vertalli's Bakery is a family-owned business with over $1 million in annual revenues and six locations. At Mama Vertalli's, decisions are sometimes slow in coming and top-level managers delegate very little authority to lower-level employees. Mama Vertalli's is a(n) ____ organization.

A) centralized
B) decentralized
C) empowered
D) marketing-oriented
E) total quality management

Question 76

A core competency is something a firm does extremely well, sometimes so well that it gives the company an advantage over its competition.

Question 77

Scenario 2.1 Use the following to answer the questions.
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights.
Refer to Scenario 2.1. In Southwest Airlines' SWOT analysis, the rising gas prices are a(n) ____, while the fact that other airlines are charging for all checked baggage may create a(n) ____.

A) threat; strength
B) weakness; strength
C) threat; opportunity
D) weakness; opportunity
E) opportunity; strength

Question 78

A long-term view, or vision, of what the organization wants to become is called a mission proclamation.

Question 79

An expected level of performance against which actual performance can be compared is a

A) standard performance.
B) standard of excellence.
C) step in sales analysis.
D) performance standard.
E) corrective standard.

Question 80

Scenario 2.2 Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including the marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.
Refer to Scenario 2.2. According to the BCG matrix, the hang-gliding and bungee jumping tours have been a ____ for EXperience Limited, while the skydiving and motorcross tours represent a ____.

A) star; dog
B) cash cow; question mark
C) cash cow; star
D) star; cash cow
E) star; question mark