Deck 2: Developing Marketing Strategies and Plans

Question 1

The key to utilizing organizational core competencies is to ________ that make up the essence of the business.

A) force organizational departments to justify the budgetary components
B) vertically integrate and own all intermediaries
C) own and nurture the resources and competencies
D) emphasize global promotions
E) segment the workforces

Answer 1

C

Question 2

When a customer places an order at BookBox.com, the company processes the customer's payment information, sends the order to the nearest warehouse, and ships the order via FedEx. This is best described as the ________.

A) market-sensing process
B) customer acquisition process
C) customer relationship management process
D) fulfillment management process
E) new-offering realization process

Answer 2

D

Question 3

Activities involved in building deeper understanding of existing consumers and what the product offerings mean to them would be a part of ________.

A) customer acquisition process
B) customer relationship management process
C) customer prospecting process
D) customer integrating management process
E) customer equity process

Answer 3

B

Question 4

The last step in the value creation and delivery sequence is ________ the value where the sales force, sales promotion, advertising, and other communication tools announce and promote the product.

A) developing
B) positioning
C) communicating
D) reversing
E) researching

Question 5

In the cycle of complete strategic planning, taking corrective action is a part of ________.

A) planning
B) implementation
C) controlling
D) organizing
E) analyzing

Question 6

What is the traditional view of marketing?

A) Firms should just focus on production because if the products are good then they will automatically sell.
B) Firms should just focus on making something and then selling it.
C) Firms should have a proper marketing team that can increase consumers' awareness of their products and rouse their interest in them.
D) Firms should price their products as low as possible so that marketing them becomes easy.
E) Firms should remember that promotion is the most important of the four Ps.

Question 7

The task of any business is to ________.

A) create customer needs
B) differentiate in terms of cost of production
C) deliver customer value at a profit
D) reduce competition
E) communicate similar value as provided by competitors

Question 8

AsiaCorp is one of the best in its industry in terms of costs and performance. Many companies in its industry will probably consider AsiaCorp as a ________.

A) pioneer
B) benchmark
C) target for acquisition
D) future supplier
E) sounding board for ideas

Question 9

James Foo has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Mr. Foo's task is best described as part of the ________.

A) market-sensing process
B) new-offering realization process
C) customer acquisition process
D) customer relationship management process
E) fulfillment management process

Question 10

Another way to describe a supply chain, where companies partner with specific suppliers and distributors to ensure a smooth functioning of the system, is to call it a ________.

A) teamwork group
B) horizontal integration
C) domestic power center
D) value exploration
E) value delivery network

Question 11

The first phase of the value creation and delivery sequence is ________ that represents the "homework" marketing must do before any product exists.

A) choosing the value
B) providing the value
C) communicating the value
D) considering the value
E) acquiring the value

Question 12

The ________ in the value chain cover the sequence of bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), and servicing them (service).

A) operations processes
B) manufacturing processes
C) primary activities
D) secondary activities
E) tertiary activities

Question 13

Value delivery process can be divided into three phases, out of which "choosing the value" implies _______, which is the essence of strategic marketing.

A) segmentation, developing, and delivering
B) targeting, positioning, and communicating
C) targeting, positioning, and delivering
D) segmentation, targeting, and positioning
E) researching, developing, and delivering

Question 14

Michael Porter's value chain would identify which of the following as a support activity?

A) shipping out final products
B) marketing products
C) procurement
D) servicing products
E) operations

Question 15

The fulfillment management process includes all the activities in ________.

A) gathering and acting upon information about the market
B) researching, developing, and launching new high-quality offerings quickly and within budget standards
C) defining target markets and prospecting for new customers
D) building deeper understanding, relationships, and offerings to individual customers
E) receiving and approving orders, shipping the goods on time, and collecting payment

Question 16

Which of the following can be considered a primary activity in the value chain process?

A) procurement
B) human resource management
C) technology development
D) inbound logistics
E) firm infrastructure

Question 17

With respect to the core business processes, the ________ includes all the activities involved in developing, and launching high-quality products quickly and within budget.

A) market-sensing process
B) new-offering realization process
C) fulfillment management process
D) customer acquisition process
E) customer relationship management process

Question 18

________ allows the company to discover who its target markets are, how they behave, and what they need or want. It also enables the company to respond appropriately, coherently, and quickly to different customer opportunities.

A) Network management
B) Supply chain management
C) Marketing management
D) Customer relationship management
E) Total quality management

Question 19

With respect to core business processes, the ________ includes all the activities involved in gathering market intelligence, disseminating it within the organization, and acting on the information.

A) market-sensing process
B) market research process
C) target marketing process
D) market pulse process
E) deployment process

Question 20

Today, the "mass market" is actually splintering into numerous segments, each with its own wants, perceptions, preferences, and buying criteria. This implies that ________.

A) the traditional marketing approach would be the best approach to follow
B) the producers must consider themselves as a part of the value-chain process
C) the producers should focus on niche markets
D) all market segments are equally profitable
E) target market strategies are no longer effective

Question 21

The ________ is the number of channel levels, from raw materials to final product and distribution, in which a company will participate.

A) industry sphere
B) vertical sphere
C) product/application sphere
D) competence sphere
E) market segment sphere

Question 22

While viewing businesses in terms of customer needs can suggest additional growth opportunities, a ________ tends to focus on selling a product or service to a current market.

A) strategic market definition
B) target market definition
C) cognitive definition
D) product definition
E) tactical definition

Question 23

The ________ lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities.

A) organizational plan
B) strategic marketing plan
C) corporate tactical plan
D) corporate mission
E) customer-value statement

Question 24

Holistic marketers achieve profitable growth by expanding customer share, ________, and capturing customer lifetime value.

A) undermining competitive competencies
B) building customer loyalty
C) creating customer needs
D) renewing a customer base
E) cannibalizing products

Question 25

Gerber primarily serves the baby food market. In choosing to focus on this market, Gerber is defining its competitive sphere on the basis of ________.

A) vertical segmentation
B) backward integration
C) market segmentation
D) diversification
E) differentiation

Question 26

Which of the following is NOT one of the four planning activities undertaken by all corporate headquarters?

A) defining the corporate mission
B) establishing strategic business units
C) assigning resources to each SBU
D) assessing growth opportunities
E) deciding sales channels

Question 27

Joe Gan plans the daily promotional releases about his company's products and services. He can be described as a(n) ________ planner.

A) strategic
B) selective
C) tactical
D) niche
E) operational

Question 28

Mission statements are at their best when they reflect a ________.

A) market
B) strength
C) competency
D) vision
E) value

Question 29

Which of the following is one of the five major characteristics of good mission statements?

A) They focus on a large number of goals.
B) They expand the range of individual employee discretion.
C) They define the major competitive spheres within which the company will operate.
D) They take a short-term view.
E) They are long and comprehensive to ensure that all critical concepts are included.

Question 30

Most large companies consist of four organizational levels: the corporate level, the ________, the business unit level, and the product level.

A) board of director level
B) major stakeholder level
C) management team level
D) division level
E) strategic level

Question 31

Of the four organizational levels, the corporate level is likely to take which of the following decisions?

A) entering a new market
B) resource allocation for each product
C) strategic plan for individual business units
D) choosing specific suppliers for each business unit
E) marketing plan for each product

Question 32

As Kodak addresses the digital revolution taking over the photographic industry, it wants customers to see it as a leader in digital photography. Thus, it is moving away from the production of film roll cameras. This would be an example of which of the following value creation steps?

A) abandoning current product lines
B) changing the corporate vision
C) repositioning the company's brand identity
D) redoing the corporate logo
E) realigning core competencies

Question 33

The holistic marketing framework is designed to address three key management questions. Which of the following is one of those questions?

A) Value claims-how does the company deal with value clutter?
B) Value proposition-how can value propositions be made profitable?
C) Value erosion-are there weak links in the company's value chain?
D) Value network-how can a company effectively network?
E) Value exploration-how can a company identify new value opportunities?

Question 34

What are hollow corporations?

A) companies that market their products through franchisees
B) companies that have liabilities exceeding their assets
C) companies that outsource all production to suppliers
D) companies that do not have any physical presence and only operate online
E) companies that are horizontally integrated

Question 35

The marketing plan, the central instrument for directing and coordinating the marketing effort, operates at ________ levels.

A) functional and operational
B) strategic and tactical
C) corporate and operational
D) customer and expenditure
E) corporate and division

Question 36

________ has three characteristics: (1) it is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits; (2) it has applications in a wide variety of markets; and (3) it is difficult for competitors to imitate.

A) Core competency
B) Market sensing process
C) Corporate social responsibility
D) Strategic business unit
E) Philanthropy

Question 37

Core competencies tend to refer to areas of special technical and production expertise, whereas ________ tend to describe excellence in broader business processes.

A) process benchmarks
B) distinctive capabilities
C) distributive capabilities
D) facultative benchmarks
E) concentric capabilities

Question 38

During Jill's market research study, many customers indicated that traditional oven gloves made it very difficult to hold baking dishes, resulting in frequent spills. Jill brought her findings to the research department, and her company leveraged its engineering and design competencies to develop a new hand-held hot-pad that allows for significantly greater dexterity in handling hot cooking implements, while protecting the cook from burns. This is an example of the ________ element of the holistic marketing framework.

A) integrated marketing
B) value creation
C) negative demand
D) value networking
E) value focus

Question 39

Which of the following plans would most likely specify the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service?

A) the tactical marketing plan
B) the target marketing plan
C) the deployment plan
D) the product-launch plan
E) the product-development plan

Question 40

A clear, thoughtful mission statement provides employees with a shared sense of purpose, direction, and ________.

A) profitability
B) target market feasibility
C) opportunity
D) continuous improvement
E) quality products

Question 41

After analyzing their company's strengths and weaknesses, top managers at Asia Loans decided to meet the needs of the DINK (dual income, no kids) market segment, Asia Loans simplified its sales contract, restructured its advertising efforts to focus on Google ads, and created a separate customer-service department. Asia Loans' strategy is best described as a(n) ________ strategy.

A) overall cost leadership
B) focus
C) differentiation
D) diversification
E) promotional

Question 42

Qantas, the Australian national carrier, introduces flights to the Middle East. This is an example of ________.

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

Question 43

A(n) ________ is when a company might seek new businesses that have no relationship to its current technology, products, or markets.

A) concentric strategy
B) conglomerate strategy
C) horizontal strategy
D) intensive growth strategy
E) integrative strategy

Question 44

Which of the following is an example of growth by diversification?

A) a company introducing its existing products in a new market
B) a company introducing new product category in a new market
C) a company increases its product line in an existing market
D) a company introducing a new product category in an existing market
E) a company integrates backward to cut costs

Question 45

Which of the following is an example of integrative growth?

A) a company improves its market share with its current products in the current markets
B) a company enters a new market with current products
C) a company develops new products for its existing markets
D) a company improving sales by integrating backward
E) a company developing new products for new markets

Question 46

Once Starbucks had established its presence in thousands of cities internationally, the company sought to increase the number of purchases by existing customers with a ________ strategy that led to new in-store merchandise, including compilation CDs and high-speed wireless access.

A) product-development
B) market-penetration
C) diversification
D) market-development
E) conglomerate

Question 47

Market-penetration, product-development, and market-development strategies would all be examples of ________ strategies.

A) concentric growth
B) conglomerate
C) horizontal
D) intensive growth
E) integrative growth

Question 48

A strategic-planning gap can be corrected by ________.

A) changing the company's mission
B) adjusting its core values
C) choosing integrative growth strategies
D) redefining organizational culture
E) increasing resource use

Question 49

Which of the following terms can be defined as "the shared experiences, stories, beliefs, and norms that characterize an organization"?

A) organizational dynamics
B) a business mission
C) an ethical/value statement
D) customer relationships
E) corporate culture

Question 50

If you were the CEO of a company that was looking to implement strategies to fill a perceived strategic-planning gap, you would most likely explore ________ strategy first because it is easier to improve an existing business than to build a new one.

A) market-penetration
B) market-development
C) diversification
D) product-development
E) exclusive

Question 51

A business can be defined in terms of three dimensions: customer groups, customer needs and ___________.

A) size
B) technology
C) competitors
D) services
E) products

Question 52

Unlike its competitors in the online air travel industry, Travel.com provides its customers with a greater variety of services such as cruise reservations, package tours, hotel bookings, and car rentals. This is an example of a(n) ________ strategy.

A) overall cost leadership
B) focus
C) differentiation
D) diversification
E) promotional

Question 53

A characteristic of a ________ is that it can be a single business or collection of related businesses that can be planned separately from the rest of the company.

A) strategic business unit
B) subsidiary unit
C) merged unit
D) niche market unit
E) specialized business unit

Question 54

A company's organization consists of its structures, policies, and corporate culture, all of which can become dysfunctional in a _______________ business environment.

A) competitive
B) global
C) rapidly changing
D) stagnant
E) local

Question 55

The first step in the business unit strategic-planning process deals with which of the following?

A) formulate goals
B) define business mission
C) implement strategies
D) execute programs
E) conduct SWOT analysis

Question 56

A company that seeks to increase its sales and profits through backward, forward, or horizontal integration within the industry is said to be employing a(n) ________ strategy.

A) diversification growth
B) intensive growth
C) target growth
D) integrative growth
E) conglomerate growth

Question 57

A ________ tends to focus on selling a product or service.

A) target market definition
B) strategic market definition
C) mass-market definition
D) differentiated market definition
E) integrated market definition

Question 58

Through its inventory management technology and highly efficient shipping practices, IKEA is able to keep its inventory expenditure extremely low and to pass these savings on to consumers in the form of low prices. IKEA's strategy is best described as ________.

A) a focused approach
B) integrative growth
C) differentiation
D) market development
E) overall cost leadership

Question 59

Microsoft features Pepsi in its XBox 360 games. The best description of this form of alliance would be a(n) ________.

A) product alliance
B) logistics alliance
C) pricing collaboration
D) network alliance
E) promotional alliance

Question 60

When a firm aims to underprice competitors and win market share, it is using a(n) ________ strategy that requires relatively less marketing skills as compared to other strategies.

A) product differentiation
B) overall cost leadership
C) focus
D) domestic customer relationship
E) price skimming

Question 61

The new-offering realization process involves all activities in defining target markets and prospecting for new customers.

Question 62

Holistic marketing focuses on the integration of value exploration, value creation, and value delivery as a means to build long-term relationships with consumers.

Question 63

Which of the following statements is true of marketing plans?

A) They can be independently developed without worrying about other functional areas.
B) They provide direction and focus for a brand, product, or company.
C) They are usually profit-oriented.
D) They are of limited use to non-profit organizations.
E) They are typically five-year plans and they lay out the strategies required to achieve targets in those five years.

Question 64

The traditional view of marketing is that the firm makes something and then sells it.

Question 65

Another name for a company's value delivery network is "distribution chain."

Question 66

A firm's core competency has applications only in the specific market in which the firm operates.

Question 67

The ________ is the last section of the marketing plan and spells out the goals and budget for each month or quarter, so management can review each period's results and take action as needed.

A) executive summary
B) situation analysis
C) marketing strategy
D) financial projections
E) implementation and controls

Question 68

In the communication stage of the value creation and delivery sequence, marketing must determine specific product features, prices, and distribution channels.

Question 69

Which of the following elements of a marketing plan permits senior management to grasp the organization's main goals and recommendations?

A) the situation analysis
B) the marketing strategy
C) the executive summary
D) the financial projections
E) the short-term targets

Question 70

Marketing goods that are currently in short supply would require significant marketing talent.

Question 71

Hong Kong's Li & Fung manages Avon's supply chain. The best description of this form of alliance would be a(n) ________.

A) product alliance
B) logistics alliance
C) pricing collaboration
D) indirect collaboration
E) promotional alliance

Question 72

A principle of the value chain is that every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product.

Question 73

When a business gets to know market segments intimately and pursues either cost leadership or differentiation within the target segment, it is employing a ________.

A) defined strategy
B) focused strategy
C) value-added strategy
D) competitive advantage strategy
E) customer-focused strategy

Question 74

To keep their strategic alliances thriving, corporations have begun to develop organizational structures to support them and have come to view the ability to form and manage strategic alliances as core skills. This is called ________.

A) value managed partnership
B) decentralized partnership
C) centralized partnership
D) partner relationship management
E) intensive growth management

Question 75

The customer relationship management process involves all the activities related to receiving and approving orders, shipping the goods on time, and collecting payment.

Question 76

The most frequently cited shortcomings of current marketing plans, according to marketing executives, are lack of realism, insufficient competitive analysis, and a ________ focus.

A) long-term
B) profit
C) short-run
D) product
E) price

Question 77

In India, Pepsi built strategic alliances with Adidas and Microsoft to tap Indian cricket fans during the World Cup. The best description of this form of alliance would be a ________.

A) product alliance
B) logistics alliance
C) pricing collaboration
D) network alliance
E) promotional alliance

Question 78

Competitors in a given industry can be identified by the similarities in their core competencies.

Question 79

The traditional view of marketing works best in economies with many different types of people, each with individual wants, perceptions, preferences, and buying criteria.

Question 80

When one company licenses another to produce its offerings, or two companies jointly market their complementary offerings, it is called a ________.

A) pricing collaboration
B) product or service alliance
C) promotional alliance
D) logistics collaboration
E) total quality management