Deck 2: Strategic Planning in Contemporary Marketing

Question 1

Middle and supervisory-level managers spend less time as compared to CEOs on planning activities.

Answer 1

True

Question 2

As the senior vice-president of marketing,Naomi will be closely involved in her firm's strategic planning.

Answer 2

True

Question 3

Planning often is classified on the basis of its scope or breadth.

Answer 3

True

Question 4

The planning process is an intermittent process held after substantial intervals.

Question 5

Adjustments in the mission statement of an organization reflect changing business environments and management philosophies.

Question 6

Relationship-building goals and strategies are seldom included in the plans of business firms.

Question 7

Marketing planning establishes the basis for a firm's overall strategic plan.

Question 8

Strategic planning has a minimal impact on a firm's destiny because it provides only short-term direction to the decision makers.

Question 9

The planning process identifies objectives and determines the actions that are needed to attain those objectives.

Question 10

The advertising director,marketing research manager,and other middle-level managers have the primary responsibility of devising and implementing the strategic plan of the company.

Question 11

Tactical plans typically determine an organization's primary strategic objectives and exclude short-term actions from their purview.

Question 12

Good relationships with customers can equip a firm with vital strategic weapons.

Question 13

Tactical planning usually involves the production of quarterly and semiannual plans,along with divisional budgets,policies,and procedures.

Question 14

The chief executive officer (CEO)and vice president of marketing spend a greater proportion of their time on operational planning than do managers at all other organizational levels.

Question 15

The planning process creates a blueprint that everyone in the organization must follow in order to achieve the organizational objectives.

Question 16

To be most effective,the planning process should include input from a wide range of sources both internal and external to the organization.

Question 17

The planning process begins at the corporate level with the first step being the development of strategic objectives.

Question 18

Operational planning that involves the creation and implementation of tactical plans for the departments within an organization is primarily the responsibility of top-level management.

Question 19

Supervisory managers tend to focus exclusively on strategic planning.

Question 20

Employees at middle-management levels engage themselves in business unit budgets and divisional policies and procedures.

Question 21

A mission can be defined as an essential purpose that differentiates one company from others.

Question 22

Each element of the marketing mix-product,price,distribution,and promotion-is a subset of the overall marketing strategy.

Question 23

The number of suppliers available to a manufacturer or retailer affects the bargaining power of buyers.

Question 24

Marketers put the marketing strategy into action in order to monitor performance to ensure that objectives are being achieved.

Question 25

Detailed organizational objectives should state specific intentions,such as "Snapple Corporation seeks to increase its share of the non-carbonated soft drink market to 25 percent within the next two years."

Question 26

With increased availability of information,rivalry heats up among competitors who try to differentiate themselves from the crowd.

Question 27

Apple iTunes is an example of a successful first mover.

Question 28

Organizational resources include the capabilities of the firm's production,marketing,finance,technology,and employees.

Question 29

Organizations within the same industry usually have the same mission.

Question 30

The Internet has impacted business for new firms by increasing the barriers to market entry.

Question 31

The statement of Starbucks to "inspire and nurture the human spirit - one person,one cup and one neighborhood at a time." is an example of a mission statement.

Question 32

A statement such as "to hit the 300 employee mark by the end of the year" is typically a part of a mission statement.

Question 33

All planning strategies have the goal of creating a sustainable competitive advantage for a firm which other companies cannot imitate.

Question 34

A firm describes its overall goals and operational scope in its standard operating procedures manual.

Question 35

Strategies once implemented should not be changed even if the actual performance does not meet the desired results.

Question 36

Porter's Five Forces are potential new entrants,bargaining power of buyers,bargaining power of suppliers,threat of substitute products,and rivalry among competitors.

Question 37

An organization lays out its basic objectives,or goals,in its complete mission statement.

Question 38

It can be said that the buying power enjoyed by customers has increased with Internet presence as the Internet provides detailed information that is not easily available elsewhere.

Question 39

Marketing strategy is an overall company-wide program for selecting a particular target market and satisfying consumers through a careful blend of the elements of the marketing mix.

Question 40

An organizational objective should specify time frames stating "Our organization aims for the highest levels of sustainable development."

Question 41

The pricing strategy is the area of marketing that receives the least amount of public scrutiny.

Question 42

Data suggests that business owners who adopt the first mover strategy will always be long-term market winners.

Question 43

The idea of first movers being completely replaced by second movers and the resulting disappearance of first movers from the marketplace is a myth.

Question 44

Toyota's introduction of the hybrid-powered Prius is an example of how it has turned public concerns and legal issues about the natural environment into an opportunity.

Question 45

A SWOT analysis helps planners compare internal organizational strengths and weaknesses with external opportunities and threats.

Question 46

A product strategy includes decisions about customer service,package design,brand names,trademarks,patents,and warranties.

Question 47

Matching an external opportunity with an internal weakness produces a situation known as leverage.

Question 48

Promotion is the communications link between sellers and buyers.

Question 49

Fred's Wholesale Club sends emails and catalogs to all members.Additionally,in-store pamphlets promote the benefits of its products.All of these materials are part of the integrated marketing communications intended to send a consistent and unified promotional message.

Question 50

A marketing mix should be an ever-changing combination of variables to achieve success.

Question 51

The five dimensions of the marketing environment exert a fairly constant and static influence on marketing strategies.

Question 52

A customer-driven organization begins its marketing strategy with a detailed description of its target market.

Question 53

The ability to download Microsoft and IBM software products directly from the Internet is a part of each firms' pricing strategy.

Question 54

SWOT analysis refers to an examination of a firm that is limited to the variables of its stability,work ethic,organizational structure,and technological expertise.

Question 55

The disadvantage of core competencies is that they can be easily duplicated by competitors.

Question 56

A strategic window is defined as a collection of situations where organizations are unable to capitalize on opportunities because of internal limitations.

Question 57

A target market is a group of customers toward whom a firm directs its marketing efforts.

Question 58

In a SWOT analysis,marketers face a problem when environmental threats attack their organization's weaknesses.

Question 59

Targeting consumers in specific global markets represents a challenge.

Question 60

The five dimensions of the marketing environment are competitive,political-legal,economic,technological,and social-cultural.

Question 61

The position of an SBU along the horizontal axis indicates the annual growth rate of the market.

Question 62

Product lines,pricing decisions,selection of appropriate distribution channels,and decisions relating to promotional campaigns are____.

A) fixed and unchanging
B) independent of the impact of external factors
C) dynamic in today's boundaryless business environment
D) determined from a purely retrospective viewpoint

Question 63

Strategic planning has a critical impact on a firm's destiny because it provides _____ to its decision makers.

A) customer input
B) individual goals
C) departmental goals
D) long-term direction

Question 64

The rule of three states that the third major company in an industry has little chance of survival.

Question 65

According to the BCG matrix,if a question mark cannot become a star,the firm should pull out of the market and target other markets with greater potential.

Question 66

Effective relationship marketing often involves:

A) inside information about competitors that is not in the public domain.
B) databases to track customer preferences.
C) large advertising budgets aimed solely at end-users.
D) internal sources of performance-related data.

Question 67

Each SBU pursues its own distinct mission and often develops its own plans independently.

Question 68

Relationship marketing refers to a firm's effort to develop long-term,cost-effective links with individual customers and suppliers.Many companies:

A) have been reluctant to adopt such initiatives because there is no evidence of their effectiveness.
B) focus on relationship marketing as the sole purpose of their marketing research efforts.
C) include relationship-building goals and strategies in their larger plans for the organization.
D) believe that relationship marketing is just a fad and may not be sustainable or profitable in the long run.

Question 69

If an automobile manufacturer was planning to introduce a sports car powered by a hydrogen-oxygen fuel cell when the price of gasoline in the United States reached $4 per gallon,this would best be described as a direct result of its _____ plan.

A) short-term
B) operational
C) strategic
D) tactical

Question 70

Relationship marketing can help a company:

A) create long-term and cost-effective links with individual customers and suppliers for mutual benefit.
B) reduce its strategic planning effort since the need for such planning is greatly diminished by relationship marketing.
C) locate more effective media for use in advertising and mass marketing.
D) eliminate the strategic planning process and move into tactical plans directly.

Question 71

ADA Inc.stopped its production of oral care goods after determining apparel production to be its new primary objective.This is a direct result of the _____ planning process at ADA Inc.

A) tactical
B) research
C) strategic
D) economic

Question 72

Strategic business units are key business units within small companies that offer only a few items to its customers.

Question 73

According to the BCG matrix,cash cow businesses produce strong cash flows and invest heavily in the unit's own promotions and production capacity.

Question 74

Long-term plans focusing on those organizational objectives that will significantly affect a firm for five or more years are usually referred to as _____ plans.

A) strategic
B) marketing
C) economic
D) tactical

Question 75

The process of anticipating future events and conditions and determining the best way to achieve organizational objectives is known as:

A) retrospecting.
B) planning.
C) archiving.
D) correlating.

Question 76

According to the BCG matrix,dog products can be sold to other firms,where they are a better fit.

Question 77

Each strategic business unit (SBU)in a firm has to prepare its plans in collaboration with other units in the organization.

Question 78

Marketing planning establishes the:

A) resource base provided by the firm's strategy.
B) economic impact of additional sales.
C) daily and weekly schedules for individual employees.
D) basis for any marketing strategy.

Question 79

According to the BCG matrix,stars require considerable inflows of cash to finance further growth.

Question 80

Strategic business units (SBUs)of a diversified firm have common managers,resources,objectives,and competitors.