Deck 2: Strategic Planning in Contemporary Marketing

Question 1

An organization typically includes its basic objectives, or goals, in a marketing plan.

Answer 1

True

Question 2

The planning process involves anticipating conditions and determining how best to attain organizational objectives.

Answer 2

True

Question 3

Organizational objectives should include 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."

Answer 3

True

Question 4

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

Question 5

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

Question 6

A marketing plan is flexible and allows managers to re-evaluate and respond to changing factors in the environment.

Question 7

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

Question 8

When making tactical plans, managers don't need to be rushed and can take their time to make decisions.

Question 9

Organizational objectives may specify time frames stating "Our organization aims to generate a 15 percent profit over the next 24 months."

Question 10

Marketers implement marketing strategies and monitor performance by tracking key performance indicators to ensure that objectives are being achieved.

Question 11

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 12

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

Question 13

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

Question 14

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

Question 15

Strategic planning activities are conducted by a firm's senior or executive-level managers such as the CEO.

Question 16

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

Question 17

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

Question 18

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

Question 19

Supervisory managers tend to focus exclusively on strategic planning.

Question 20

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

Question 21

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

Question 22

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 a firm's marketing strategy and tactics.

Question 23

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

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

Question 24

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 25

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

Question 26

Decisions regarding product lines, pricing, selection of appropriate distribution channels, and promotional campaigns are____.

A) fixed and unchanging
B) determined by the top managers in the firm
C) typically detailed in a marketing plan
D) determined from a purely retrospective viewpoint

Question 27

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 28

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

Question 29

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

Question 30

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 31

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 32

Competitive rivalry among competitors who are trying to differentiate themselves from the crowd may lead to expensive advertising campaigns.

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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 40

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 41

Comcast's NBC division acquired Universal Studios and the highest executive who approved this acquisition was most likely Comcast's CEO. This decision is the direct result of _____ planning process at Comcast.

A) tactical
B) strategic
C) operational
D) technological

Question 42

Enterprise Rental Cars is able to secure favorable prices from major automobile manufacturers such as Ford and Chevrolet for their rental fleets due to the large number of vehicles they purchase each year. This is an example of _____, one of Porter's Five Forces related to marketplace competition.

A) threat of new competitors
B) distinctive competency
C) buyer power
D) threat of substitutes

Question 43

Compared to other organization personnel, more time is devoted to long-range strategic planning by the:

A) middle management.
B) manufacturing labor.
C) top management.
D) supervisory management.

Question 44

A company's plans that focus largely on its current and near-future activities and are determined by its middle level management are referred to as _____ plans.

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

Question 45

Which of the following statements is true of tactical planning?

A) It is conducted exclusively by the top management.
B) It is used to generate long-term plans, departmental rules, and procedures.
C) It is the basis for operational planning.
D) It is performed as a substitute to the strategic planning process in large organizations.

Question 46

Operational planning:

A) should be used to establish the fundamental strategies of the organization.
B) is used to determine departmental rules and procedures.
C) is the primary responsibility of the top management.
D) should be completed at the same time the total budget is prepared.

Question 47

Employees of Popsie Inc., a small grocery store chain, are working on its tactical plans. The personnel most involved in this level of its planning process would be its:

A) top management, such as the owner.
B) middle management, such as the merchandising and advertising managers.
C) store managers.
D) supervisory management, such as shift managers and night auditors.

Question 48

Business strategist Michael E. Porter identified five competitive forces that influence _____ in a model called Porter's Five Forces.

A) planning strategies
B) corporate social responsibility
C) consumer behavior
D) sustainable development

Question 49

In the planning hierarchy, plans dealing with organization-wide objectives, long-term plans, and the total budget would be classified as _____ plans.

A) weekly
B) tactical
C) operational
D) strategic

Question 50

A company typically modifies its strategy when:

A) Direct competition is strong.
B) Supplier power is high.
C) Its actual performance is not in line with expected results.
D) Customers control power in the relationship.

Question 51

An event management company decided to use radio advertising in order to promote an upcoming music festival. The executives of the company suggested various activities that could be used for the radio campaign. These activities are a part of the company's _____.

A) tactical planning efforts
B) standard operating procedures
C) weekly scheduling plans
D) unit-wise budgeting plans

Question 52

Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will:

A) reduce the threat of new entrants.
B) decrease the rivalry among competitors.
C) decrease the bargaining power of the supplier.
D) increase the threat of substitute products.

Question 53

Which of the following is a dimension of Porter's Five Forces model?

A) Bargaining power of buyers
B) Existence of second-movers
C) Existing firms in the business environment
D) Rivalry among strategic business units

Question 54

The U.S. Sports and Fitness Federation is determining where they should build their permanent training facility. They want it to be located near a populated center but it must also provide ample access to those who don't reside in cities. The federation is engaged in _____ planning.

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

Question 55

Preparation of quarterly and semiannual plans by personnel such as the general sales manager or advertising director would be classified as _____ planning.

A) consumer
B) tactical
C) procedural
D) operational

Question 56

A shoe manufacturer has multiple suppliers for leather. Based on this information, which of the following statements is true?

A) The suppliers have lesser bargaining than the buyer.
B) The barriers to market entry are high.
C) The rivalry among competitors is low.
D) The buyer has lesser bargaining power than the suppliers.

Question 57

Which of the following is NOT one of Porter's five Forces related to market competition?

A) threat of substitutes
B) buyer power
C) distinctive competencies
D) competitive rivalry

Question 58

The basic objectives or goals of an organization are derived from its:

A) standard operating procedures.
B) operational plans.
C) supervisory management strategy.
D) strategic planning process.

Question 59

The first step of the marketing planning process involves:

A) writing the mission statement.
B) establishing organizational objectives.
C) formulating a marketing plan.
D) hiring a senior planner.

Question 60

An automobile manufacturer is dependent on a single supplier for tires. Based on this information, which of the following statements is true?

A) The barriers to market entry are low.
B) The buyer has greater bargaining power.
C) The threat of new entrants is high.
D) The supplier has significant bargaining power.

Question 61

An example of a firm's strength discovered by a SWOT analysis might be:

A) ownership of valuable patents.
B) a narrow current product line.
C) changing buyer tastes in the marketplace.
D) existing government policies favoring the industry.

Question 62

The performance framework developed by the Boston Consulting Group (BCG) plots:

A) market share against market growth potential.
B) market attractiveness against number of product lines.
C) current market conditions against past trends.
D) performance in test markets before a full-scale rollout.

Question 63

The BCG market share/market growth matrix classifies products with a low relative share of a high-growth market as _____.

A) stars
B) question marks
C) cash cows
D) dogs

Question 64

The quadrant of the BCG market share/market growth matrix that represents both a high market share and a high rate of market growth represents the:

A) cash cows.
B) innovators.
C) stars.
D) strivers.

Question 65

Core competencies are capabilities that customers value and competitors:

A) can easily copy.
B) tend to overestimate.
C) find difficult to duplicate.
D) undervalue.

Question 66

Which of the following conditions would lead a company's marketers to find a new market, change prices, or compete in other ways to maintain an advantage?

A) When the bargaining power of suppliers is low
B) When the bargaining power of buyers is low
C) When the threat of substitute products is high
D) When the threat of new entrants is low

Question 67

Microsoft Windows generates considerable income for its parent company but is expensive to support. However, the expense is acceptable because Windows is the world's dominant operating system. Based on this information, Windows would be categorized under the BCG market share/market growth matrix as a:

A) star.
B) cash cow.
C) question mark.
D) dog.

Question 68

Which of the following is true of a strategic business unit?

A) A strategic unit directly adopts the mission of its parent organization.
B) Each strategic unit depends on plans of the other units in the organization.
C) A strategic unit has its own managers, resources, objectives, and competitors.
D) A strategic unit is a key business unit within a small company that does not differ significantly from the parent company.

Question 69

Which of the following would qualify as an example of a firm's weakness?

A) A bill passed by the government regarding the work timings of all organizations
B) A competitor planning to open a new branch close to the firm's place of operations
C) The firm's failure to pay its taxes on time leading to a poor reputation in the market
D) A ban imposed on the use of animals for testing cosmetics

Question 70

As chief executive of Stalwart Shipfitting Company, a diversified producer of marine supplies and equipment, John needs a method for spotting promising product lines that warrant commitment of additional resources, as well as those that should be removed from the firm's product portfolio. A good choice for this firm at this stage would be to use:

A) computer models.
B) strategic business units.
C) a marketing audit.
D) an industry analysis.

Question 71

An example of a threat to a firm discovered by a SWOT analysis might be:

A) the presence of cost advantages due to advanced technology.
B) the chance to acquire firms with the needed technology.
C) the entry of new competitors in the industry.
D) the narrow product line produced by the firm.

Question 72

One of General Electric's business units produces a variety of light bulbs and generates healthy revenue. The revenues of this business unit are used to finance the growth of other business units with higher growth potentials. How would this unit be classified on the BCG market share/market growth matrix?

A) Cash cow
B) Star
C) Question mark
D) Dog

Question 73

According to the BCG market share/market growth matrix, the SBU that produces strong cash flows which can be used to finance the growth of other SBUs is the:

A) dog.
B) question mark.
C) cash cow.
D) laggard.

Question 74

Which of the following would qualify as an example of a firm's weakness?

A) Changing buyer tastes in the marketplace
B) The presence of modern production facilities
C) Inadequate financing capabilities
D) An addition to the current product line

Question 75

The strategic business unit (SBU) concept is best identified as a:

A) planning tool that separates tactical and operational issues for analysis.
B) strategic approach used primarily to separate marketing costs from production expenses.
C) marketing planning tool that best suits the needs of large, diversified organizations.
D) marketing approach appropriate for small enterprises producing a single product.

Question 76

In a(n) _____, firms evaluate their products and divisions to determine the strongest and weakest.

A) organizational appraisal
B) market analysis
C) utilization analysis
D) portfolio analysis

Question 77

A certain social networking corporation has the highest number of users in the social networking industry. This is an example of the firm's:

A) opportunity.
B) constraint.
C) strength.
D) threat.

Question 78

According to the BCG market share/market growth matrix, the revenues earned from cash cows should be used to finance the growth of:

A) question marks and dogs.
B) dogs and stars.
C) stars and question marks.
D) question marks and cash cows.

Question 79

Matching an internal strength with an external opportunity produces a situation known as:

A) leverage.
B) constraint.
C) vulnerability.
D) plateau.

Question 80

A SWOT analysis is designed to reveal, among other things, a firm's core competencies, which reflect its:

A) threats.
B) strengths.
C) opportunities.
D) vulnerabilities.