Deck 1: Strategic Planning and the Marketing Management Process

Question 1

An organization seeking to make a profit by serving the needs of customer groups is focusing on

A) customer orientation.
B) production orientation.
C) selling orientation.
D) personal marketing orientation.

Answer 1

A
Explanation: Marketing concept means that an organization should seek to make a profit by serving the needs of customer groups - Purpose of the marketing concept is to rivet the attention of marketing managers on serving broad classes of customer needs.

Question 2

The process of planning and executing conceptions, pricing, promotion, and distribution of ideas, goods and services to create exchange that satisfy individual and organizational goals is the definition of

A) marketing.
B) management.
C) strategic planning.
D) accounting.

Answer 2

A
Explanation: The American Marketing Association defines marketing as "the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals."

Question 3

The Southwind Camper Company's goal is to sell 10,000 camper trailers each year. What can one conclude from this objective?

A) The company has a customer orientation.
B) The company does not adhere to the marketing concept.
C) The company is determined to satisfy customer needs.
D) The company wants to use a customer focused strategy.

Answer 3

B
Explanation: The purpose of the marketing concept is to rivet the attention of marketing managers on serving broad classes of customer needs (customer orientation).

Question 4

Over three-quarters of the 100 largest U.S. corporations of 70 years ago have fallen from the list because

A) of regulations that disallowed their business activities.
B) of unfair trade practices.
C) they failed to recognize that strategies need to reflect changing environments.
D) their mission was just to provide value for customers, employees, and investors..

Question 5

Marketing managers can satisfy customers more efficiently in the present than anticipate changes in customer needs in the future. Which of the following best explains this statement?

A) Organizations need more planning to devise better sales strategies.
B) Marketing strategies should focus on production orientation.
C) Managers need to first identify customer needs and then work backwards to devise products and services to satisfy these needs.
D) Organizations need new customers; hence the need to manipulate customers to do what suits the interests of the firm.

Question 6

Identify the marketing type which is designed to attract donors, members, participants, or volunteers?

A) Product
B) Organization
C) Place
D) Cause

Question 7

In large organizations, the marketing plans of individual departments are guided by

A) plans rolled out by the production unit..
B) sales strategies of the marketing department.
C) planning activities of the organizational units.
D) strategic plans or blueprints for the entire organization.

Question 8

Effective marketing requires that _____ come first in organizational decision making.

A) advertising strategies
B) selling orientation
C) production orientation
D) consumer needs

Question 9

Which type of marketing is designed to create exchanges for intangible products?

A) Product
B) Service
C) Place
D) Cause

Question 10

The organization's mission, objectives, strategies, and its portfolio plan are the four major components of its

A) strategic plan.
B) mission statement.
C) sales strategy.
D) marketing plan.

Question 11

_____ includes all the activities that lead to the development of a clear organizational mission, organizational objectives, and appropriate strategies to achieve those objectives.

A) Strategic planning
B) Organization's growth
C) Financial planning
D) Investment decisions

Question 12

The organization's environment provides the resources that sustain the organization. In exchange for these resources, the organization must supply the environment with

A) services without any additional cost.
B) highly priced but quality goods.
C) quality goods at an acceptable price.
D) community service at all times.

Question 13

Company X manufactures sports goods. They introduce a new product targeted at children between ages 7 and 10. The marketing team envisions an entirely new marketing strategy for its sport goods. This is an example of which type of marketing?

A) Product
B) Service
C) Cause
D) Place

Question 14

The customer will be more satisfied and the firm will be more profitable when

A) organizations and customers have a long-term relationship.
B) the sales process is product oriented.
C) products are advertised frequently and contain a varying media mix.
D) products are sold at discounts.

Question 15

_____, if performed successfully, plays a key role in achieving equilibrium between the short and the long term by balancing acceptable finance performance with preparation of inevitable changes in market, technology, and competition, as well as the economic and political arenas.

A) Production planning
B) Team planning
C) Strategic planning
D) Sales planning

Question 16

Which type of marketing would involve strategies to elect a political candidate?

A) Product
B) Service
C) Person
D) Place

Question 17

The organization's environment provides the _____ that sustains the organization, whether it is a business, a college or university, or a government agency.

A) products
B) competition
C) resources
D) structure

Question 18

The true mission of a company is to provide value for three key constituencies, namely

A) investors, employees, and customers.
B) investors, customers, and politicians.
C) managers, employees, and customers.
D) employees, customers, and families.

Question 19

The purpose of the marketing concept is to rivet the attention of marketing managers on serving broad classes of

A) supplier needs.
B) employee needs.
C) management needs.
D) customer needs.

Question 20

Focusing on building long-term _____ where the initial sale is viewed as the beginning step and not as the end goal, is the crux of the marketing concept.

A) selling orientation
B) production orientation
C) investor-relations
D) consumer-relations

Question 21

A company's mission statement is "to produce the highest-quality products at the lowest possible cost". What is most likely wrong with this mission statement?

A) The mission statement is not specific.
B) The mission statement is not well framed.
C) The mission statement cannot fulfill the organizational productivity.
D) The mission is not achievable or realistic.

Question 22

Which of the following does not pertain to organizational objectives?

A) They can be converted into specific action.
B) They serve as a starting point for specific objectives at lower levels in the organization.
C) They can establish short-run priorities for the organization.
D) They serve as standards against which overall organizational performance can be evaluated.

Question 23

Which of the following is true of organizational objectives?

A) An organizational objective should reflect on the organization's finances rather than its commitment to the customers.
B) Objectives are not considered dominant necessities to carry out the organizational mission.
C) Objectives are specific, measurable, action commitments on the part of the organization.
D) An organizational objective is distilled into a specific and achievable organization mission.

Question 24

Slatescape is a relatively new company that mines and crushes slate for use as mulch in gardens. The managers of the company reviewed its short history, took into account the organization's environment, and laid stress on its distinctive competencies. The managers are attempting to

A) develop a mission statement
B) distinguish between primary and secondary objectives
C) develop an effective marketing mix
D) evaluate its marketing plan

Question 25

When the mission statement of an organization is focused on markets rather than products, it means that the mission statement

A) has an external rather than an internal focus.
B) needs to divert towards the internal problems.
C) needs to change its focus to services.
D) is focusing on the narrow class of needs.

Question 26

The mission statement, or purpose, of an organization is the description of its reason for

A) revenues.
B) profitability.
C) existence.
D) growth.

Question 27

_____ dictates the opportunities, constraints, and threats that must be identified before a mission statement is developed.

A) Organization's history
B) Organization's culture
C) Organization's environment
D) Organization's competencies

Question 28

The core things that an organization does well are known as its

A) distinctive values.
B) distinctive competencies.
C) distinctive ideals.
D) distinctive technologies.

Question 29

The Steakhouse is a restaurant selling steaks. Its mission statement was to provide its customers with the world's best steaks. Changes in consumer tastes resulted in fewer customers for the steakhouse. The company had to venture into new and different markets to maintain profitability. These new conditions and a redundant mission statement would make the steakhouse a(n)

A) process related organization.
B) organization without any strategy.
C) drifting organization.
D) functional organization.

Question 30

What is most likely wrong with the following mission statement for a store that sells lighting fixtures: "Our mission is to make sure every customer who buys a lighting fixture at our store is 100 percent satisfied with his or her purchase?"

A) The mission statement is not specific.
B) The mission statement is not well framed.
C) The mission statement cannot fulfill the organizational productivity.
D) The mission is not achievable or realistic.

Question 31

Which of the following statements about a mission statement is true?

A) Even though no one denies the importance of the mission statement, it is the least used of all of the management tools.
B) An effective mission statement takes an internal organizational focus.
C) It should be focused on the physical product or service that the organization is offering at present.
D) It should be focused on the broad class of needs that the organization is seeking to satisfy.

Question 32

Imagine you have been asked to develop an organizational strategy for a regional chain of restaurants called The Blue Crab. This chain of restaurants was founded with the expressed purpose of providing its customers with the finest seafood eating experience possible. Since its opening, the chain has added a retail outlet in each restaurant where it sells dishes, pottery, utensils, and novelty items, all with a beach theme. Your first thought is that the chain needs to restate its mission. The basic questions that must be answered before a new mission statement can be formulated are all of the following, except

A) who is the customer?
B) what do customers value?
C) what will the business be?
D) what will the production strategy be?

Question 33

If formulated properly, all of the following are stated end results of an effective organizational objective, except

A) they can be converted into mission and vision statements.
B) they will provide direction and serve as a starting point for more specific and detailed objectives at lower levels in the organization.
C) they can establish long-run priorities for the organization.
D) they can facilitate management control because they serve as standards against which overall organizational performance can be evaluated.

Question 34

Which of the following is not stated as being a basic question an organization must answer when examining and restating its mission?

A) What is our business?
B) Who is the customer?
C) What do customers value?
D) What is our sales strategy?

Question 35

All of the following are key elements that the management must take into account while developing a statement of mission, except the

A) organization's history.
B) organization's distinctive competencies.
C) organization's culture.
D) organizations environment.

Question 36

Organizations expand into new products, new markets, and even new industries. In this process, the organization's original purpose may become irrelevant. In these circumstances the organization can be best described as a

A) drifting organization.
B) functional organization.
C) horizontal organization.
D) cooperative organization.

Question 37

A popular brand of bed sheets in the 1940s was Indian Head. Its manufacturer claimed its sheets were so well-made that consumers might want to include them in their wills so the sheets could be passed down to their grandchildren. The company was proud of its product quality and formulated its mission statement based on it - "To be the producers of the best bed sheets in the market". What could potentially be wrong with such a mission statement?

A) It has an external focus.
B) It focuses on the market rather than on the product.
C) It defines the company in terms of its marketing capabilities.
D) It focuses on the product rather than on its market.

Question 38

The mission statement of a company should have a(n)

A) product focus.
B) external focus.
C) internal focus.
D) service focus.

Question 39

Twenty years ago Bob and Aileen Long started the Vidalia Onion Store for the purpose of sharing the taste of sweet Vidalia onions with the world. In recent years, the couple has added other Georgia products, such as peanuts, peaches, and pecans to its inventory, without changing the business's name or its mission. The store can now be described as a

A) drifting organization.
B) customer oriented organization.
C) competitive organization.
D) changing organization.

Question 40

All of the following are some common shortcomings in mission statements, except

A) they do not provide direction to decision makers when faced with product/market choices.
B) they are not motivational.
C) they are too broad and do not rule out any opportunity management might wish to pursue.
D) they are externally focused instead of having an internal focus.

Question 41

The ability to outperform competitors in providing something that the market values, is called

A) diversification.
B) market promotion.
C) competitive advantage.
D) market analysis.

Question 42

In the mid-1990s, McDonald's opened a new chain of restaurants called Hearth Express. Hearth Express was targeted at McDonald's current customers who wanted a more leisurely home-style meal. The Hearth Express menu included rotisserie chicken, twice-baked squash, baked beans, and fresh baked bread. Identify the strategy used by McDonald's in introducing Hearth Express.

A) Market development
B) Product differentiation
C) Market penetration
D) Product development

Question 43

The marketing slogan, "It's not just for breakfast anymore" has been very successful for the orange juice industry. With this slogan, the orange juice industry is trying to get people who like a glass of orange juice with their breakfast to consider having a glass at another time of the day, like as an afternoon snack instead of a cola. This slogan is most closely related to a

A) product diversification strategy.
B) market penetration strategy.
C) product development strategy.
D) market integration strategy.

Question 44

In its advertising, Suave hair care products compares hair shampooed and conditioned with Suave products to hair on which more expensive salon products were used. The company hopes that the ad establishes how similar results can be achieved by using Suave, a much less expensive product. If the promotion is targeted at consumers who once used Suave, but abandoned it when they could afford more expensive products, then the company is using a _____ strategy.

A) product development
B) market differentiation
C) market development
D) product differentiation

Question 45

Maintaining consistent levels of employee satisfaction with our own and similar industries could be a possible objective of which of the following areas of performance?

A) Market standing
B) Worker performance and attitude
C) Manager performance and responsibility
D) Productivity

Question 46

At the supermarket, Lisa noticed that her favorite stain remover now comes in spray bottles, 2 sizes of aerosol cans, and a refill bottle. Given this information and the fact that the stain remover has reduced its shelf price by 5 percent, you could say the manufacturer of the stain remover has implemented a _____ strategy.

A) market differentiation
B) product development
C) diversification
D) market penetration

Question 47

There are more than a half dozen different sports drinks in the market, but only one brand-Juicy Juice Score by Libby's, is made with fruit juice. What kind of organizational strategy based on competitive advantage is Libby's using with Juicy Juice Score?

A) Strategy based on customer value
B) Strategy based on differentiation
C) Strategy based on cost-leadership
D) Strategy based on diversification

Question 48

Huggies first started out in the disposable diaper industry. It then developed 'Pull-Ups', disposable training pants for kids who were in the transition stage between diapers and cloth underwear. What kind of a growth strategy did Huggies use when it developed this new product?

A) Diversification
B) Porter's model
C) Market penetration
D) Product development

Question 49

As part of its 1998 summer ad campaign, NBC ran ads that previewed reruns of popular TV programs and used the slogan, "New to You" to get people who had missed the shows during the previous season to watch. This slogan is most closely related to which of the organizational growth strategies?

A) Product development
B) Market development
C) Market diversification
D) Market penetration

Question 50

The Grand Ole Opry shows are played in an auditorium that is at best 75 percent full. Most of the audience is over 50. One of the ideas suggested to increase its audience size and appeal to younger country music fans is to use RealAudio broadcasts of the Opry shows on the Internet. In terms of organizational strategies, this is an example of

A) market penetration.
B) diversification.
C) product focusing.
D) market development.

Question 51

When weekend gardeners think of mulch to put around their plants and keep away the weeds, they tend to think in terms of pine bark, wood chips, or pine straw. Slatescape has developed mulch made out of crushed slate rock. The company first targeted landscape businesses and was successful in marketing to businesses and to government agencies. In order to expand its business, the company must now educate consumers about the product. Slatescape will be implementing a

A) market penetration strategy.
B) market differentiation strategy.
C) diversification strategy.
D) market development strategy.

Question 52

Company ABC advertises on national television the grand price reduction on their line of bathing accessories. Such a scenario pertains to which of the following framework of organizational growth strategies?

A) Product development
B) Market consolidation
C) Product diversification
D) Market penetration

Question 53

Eddy's Ice Cream developed a line of whole fruit sorbets targeted at people who are loyal Eddy's consumers, but dislike all the fat and calories in ice cream. What organizational growth strategy was used here?

A) Product development
B) Diversification
C) Customer value
D) Market development

Question 54

Product development strategy

A) involves seeking new products for customers not currently being served.
B) offers product-line extensions of existing products to present customers.
C) is merely getting the product to a new market.
D) deals with developing a production plan for a product.

Question 55

Market development strategy involves

A) increasing the sale of present products to present customers.
B) finding new customers for its present products.
C) targeting present customers for the newly developed products.
D) leading an organization into entirely new and unrelated businesses.

Question 56

Which strategy focuses primarily on increasing the sales of present products to present customers?

A) Market development strategy
B) Product development strategies
C) Diversification
D) Market penetration strategy

Question 57

Protecting and maintaining resources such as equipment, buildings, inventory, and funds could be a possible objective of which of the following areas of performance?

A) Physical and financial resources
B) Productivity
C) Market standing
D) Manager performance and attitude

Question 58

When an organization has formulated its mission and developed its objectives, the next managerial task is to develop

A) job descriptions.
B) organizational strategies.
C) mission and vision statements.
D) cross-functional teams.

Question 59

Lilly's, a fashion accessories company is continuously on the look-out to expand its market overseas. This instance describes

A) market development.
B) market segmentation.
C) market consolidation.
D) market differentiation.

Question 60

The Mattel Corporation targets children from the age of 3 and up. Fisher-Price makes toys for babies and toddlers. The Mattel Corporation recently purchased Fisher-Price for $1.1 billion. This acquisition gives Mattel a new product line aimed at the younger siblings of its current target market. By targeting the under-three group with age-appropriate toys, Mattel has implemented a _____ strategy.

A) diversification
B) product differentiation
C) Porter's model
D) market penetration

Question 61

Which of the following is not an interrelated task in the process of marketing planning?

A) Developing the product
B) Developing the marketing mix
C) Establishing marketing objectives
D) Selecting the target market

Question 62

Monsanto is an enterprise that is composed of three parts. Its biotech section, (researching to develop crops that are pest and disease-resistant) provides about half of its sales. Pharmaceuticals from its

A) have no external competitors.
B) share the same mission as Monsanto.
C) use centralized planning and not operate independently.
D) have their own distinct missions.
G)D. Searle subsidiary contribute a third of its revenues; and food products, dominated by the artificial sweetener NutraSweet, make up less than 20 per cent of its total revenue. Monsanto's three strategic business units would generally

Question 63

All of the following are true with respect to establishing marketing objectives except they

A) are derived from organizational objectives.
B) are stated as standards of performance.
C) provide the framework for the marketing plan.
D) are a set of controllable variables used for the target market.

Question 64

Ford has used the 2003 Taurus to better align itself with its target market. It is the only car in its price range with cup holders that accept coffee cups with handles and expand to hold large soft drinks. It has power-adjusted pedals to enable short drivers to sit farther from the steering wheel. It has more legroom for passengers in the back seat. With the redesigned Taurus, Ford has implemented a _____ strategy.

A) market development
B) prestige value
C) diversification
D) differentiation

Question 65

The National Basketball Association (NBA) charges a family of four about $200 for tickets to see a basketball game at Madison Square Garden. Concerns that many people do not have the sort of discretionary income that makes such a family outing possible has led the NBA to come up with creative discounts. This has shown that NBA is responsive to the _____ environment.

A) social
B) competitive
C) cooperative
D) economic

Question 66

Performing marketing tasks according to a predefined schedule is a part of

A) establishing the marketing plan.
B) developing the marketing plan.
C) implementing the marketing plan.
D) controlling the marketing plan.

Question 67

The advertising for Bertolli spaghetti sauce states that it is the only leading brand of sauce made from tomatoes picked no more than 24 hours before they are used. Therefore, Bertolli claims to taste more like homemade because it is fresher. Identify the strategy used by Bertolli in terms of its competitive advantage.

A) Product development
B) Diversification
C) Product diversification
D) Differentiation

Question 68

Identify the error that many companies make when developing strategies aimed at increasing the number of first-time users?

A) Developing the marketing mix before identifying the target market.
B) Not developing marketing objectives that are aligned with organizational objectives.
C) Not ranking target markets according to the present and future sales volume.
D) Neglecting the present customers while developing market share and sales strategies.

Question 69

Monsanto is an enterprise that is composed of three parts. Its biotech section, which is working to develop crops that are pest and disease-resistant so farmers can eventually eliminate chemical spraying, provides about half of its sales. Pharmaceuticals from its

A) strategic business units.
B) sales-buying units.
C) small business units.
D) segmented business units.
G)D. Searle subsidiary contribute a third of its revenues; and food products, dominated by the artificial sweetener NutraSweet, make up less than 20 per cent of its total revenue. These three divisions are Monsanto's

Question 70

Identify the factor that is not stated as being generally useful for ranking the present and potential target markets.

A) Profitability of the target markets.
B) Present and future sales volume of the target markets.
C) Match between what it takes to appeal successfully to the segment and the organization's capabilities.
D) Dependence on industrial buyers and market segmentation.

Question 71

Healthline is Eckerd Drug Stores' brand of incontinence products. Healthline products sell for $2 to $5 less than the rival Depends brand. According to Michael Porter's model, Eckerd is using a _____ strategy to market Healthline products.

A) differentiation
B) product development
C) market development
D) cost leadership

Question 72

Establishing objectives, selecting the target market, and developing the marketing mix are three interrelated tasks pertaining to

A) the selling concept.
B) market planning.
C) organizational mission.
D) performance objectives.

Question 73

The _____ for Coca-Cola Classic includes lemon-lime drinks, fruit juice, bottled water, sports drinks, other colas, caffeine-free colas, diet drinks, cherry-flavored drinks, and dairy beverages.

A) competitive environment
B) technological environment
C) cooperative environment
D) economic environment

Question 74

The removal of tariffs on the importation of Canadian lumber will adversely affect the U.S. lumber industry because Canada is able to produce lumber much more inexpensively than the U.S. This tariff removal is an example of how the _____ environment can affect businesses.

A) cooperative
B) comparative
C) social
D) legal

Question 75

Olde Westport Spice & Trading Company sells 14 seasoning mixes for everything from spicy chili, to curry rice, to dip for chips and vegetables. A 5.5 ounce bottle of one of its seasoning mixes costs between $3.95 and $5.95 depending on its contents. The owners of the company market the product by attending 135 craft fairs annually, giving out free samples of food made with the various seasonings, and making sure each person who tries a sample leaves with a brochure and mail order form. People learn about the product from attending the fair, articles in cooking magazines, and word of mouth. This example best describes Olde Westport's

A) competitive advantage.
B) target market.
C) marketing mix.
D) product life cycle.

Question 76

Which of the following pertains to strategic business units?

A) They share the organizational mission statement.
B) They have centralized management, no competitors, and little autonomy.
C) They are a number of organizations which have come together to achieve some common goal.
D) They can be planned independently of the other businesses of the total organization.

Question 77

Since September 11, 2001, the number of people attending church and looking to religion to provide solace has increased. As a result, Bible publishers have developed the Starting Point Study Bible that explains what they are reading and includes a dictionary of biblical terms. Identify the type of environment which caused this change.

A) Social
B) Competitive
C) Cooperative
D) Economic

Question 78

Which of the following is not a major area of concern for situational analysis?

A) Political environment
B) Competitive environment
C) Physical environment
D) Social environment

Question 79

The cooperative environment includes

A) all firms and individuals who have a vested interest in accomplishing the firm's objectives.
B) primarily other firms in the industry that rival the organization for both resources and sales.
C) the attitudes and reactions of the general public, social and business critics.
D) protection against business competition and consumer rights.

Question 80

All of the following are components of the marketing plan except

A) portfolio planning.
B) target market selection.
C) pricing strategy.
D) situation analysis.