Deck 22: Pulling It All Together: the Strategic Marketing Proces

Question 1

What is the assumed shape of the graph of the sales response function?

A) U-shaped
B) S-shaped
C) a straight, downward-sloping line, starting in the upper left and extending to the lower right of the graph
D) a straight, upward-sloping line, starting in the lower left and extending to the upper right of the graph
E) W-shaped

Answer 1

B

Question 2

Toyota is generally acknowledged as the best in the world in revolutionizing the design and manufacture of autos. Toyota managers created the doctrine of kaizen, or

A) continuous improvement.
B) multilevel input.
C) make haste, not waste.
D) continuous production.
E) continuous communication.

Answer 2

A

Question 3

Toyota is generally acknowledged as the best in the world in revolutionizing the design and manufacture of autos. Toyota managers created the doctrine of ________, or continuous improvement.

A) keiretsu
B) kaizen
C) kanban
D) meishi
E) zaibatsu

Answer 3

B

Question 4

Figure 22-1

-According to Figure 22-1 above, an additional annual marketing effort of $1 million is best spent after having already spent how much in marketing effort to date?

A) $1 million
B) $2 million
C) $3 million
D) $5 million
E) $6 million

Question 5

Reflecting on the research study of over 200 management tools and techniques, which of the following companies is an example of a firm that excels in terms of operational execution?

A) Costco
B) Smucker's
C) Sears
D) Groupon
E) Toyota

Question 6

The mathematical function that relates the expense of marketing effort to the marketing results obtained is referred to as

A) marketing ROI.
B) market share profitability.
C) share point analysis.
D) synergy analysis.
E) a sales response function.

Question 7

The launch of a new cereal typically costs up to $30 million and usually involves

A) replacing one of more than 300 competing breakfast cereals already on store shelves.
B) a minimum of three attempts before it is successfully launched.
C) a tie-in promotion with a major motion picture or toy.
D) steps to counteract the promotional efforts of a competitor's new cereal.
E) obtaining FDA approval for its convenience claims.

Question 8

Recently, General Mills launched all of the following products exceptwhich?

A) Epic Performance Bars
B) YQ by Yoplait
C) Betty Crocker Mug Treats
D) Fiber One Gluten-free Bars.
E) Fruity Lucky Charms

Question 9

The relationship of annual marketing effort to annual sales revenue is assumed to be ________ of the sales response function.

A) a horizontal straight line, where sales revenues stay the same regardless of the marketing effort
B) a U-shaped curve, where sales revenues are at a maximum at either end
C) an upside-down U-shaped curve, where sales revenues are at a maximum in the middle
D) an S-shaped curve, which shows that an additional marketing effort in the midrange of the curve results in far greater increases of sales revenue than at either end of the curve
E) a rising straight line, where sales revenue continuously rises as the marketing effort rises

Question 10

In a five-year study, researchers conducted in-depth analysis of 160 companies and more than 200 management tools and techniques. What was their principal finding?

A) Supply chain management was the most critical element in stellar business performance.
B) Customer relationship management was more effective than product development.
C) The Internet was more effective in terms of long-term sales success than the use of retail outlets or direct marketing tactics such as catalogs.
D) Three major management tools-supply chain management, customer relationship management, and the use of an intranet-were equally beneficial in terms of business performance.
E) Individual management tools and techniques had no direct relationship to superior business performance in the companies that were studied.

Question 11

Reflecting on the research study of over 200 management tools and techniques, which of the following companies is an example of a firm that excels based on a performance-oriented culture?

A) Costco
B) Google
C) Coca-Cola
D) Apple
E) Toyota

Question 12

Four basic business and management practices are what matter-"what really works," to use the phrase of the researchers who studied more than 200 management tools and techniques. Which of these is one of these?

A) ethics
B) charismatic leadership
C) quality
D) execution
E) sustainability

Question 13

Reflecting on the research study of over 200 management tools and techniques, which of the following companies is an example of a firm that excels based on its organizational structure?

A) Costco
B) Home Depot
C) Lockheed Martin's Skunk Works
D) Coca-Cola
E) IBM

Question 14

The firm's annual marketing effort, such as advertising, personal selling, sales promotion, direct marketing, and public relations expenses is ________ in a sales response function graph.

A) plotted on the vertical (Y) axis
B) plotted on the horizontal (S) axis
C) plotted on the vertical (Z) axis
D) the center point
E) plotted on the horizontal (X) axis

Question 15

Economists recommend that marketing managers allocate the firm's marketing resources to the markets and products where

A) the firm has its greatest sales.
B) an SBU is considered a cash cow.
C) there is the greatest current market share and the fastest industry growth rate.
D) the excess of incremental revenues over incremental costs is greatest.
E) total revenue equals total cost.

Question 16

Which of these statements about the four basic business and management practices that researchers identified is most accurate?

A) Strategy and structure are more important for success than culture and execution.
B) Culture and execution are more important for success than strategy and structure.
C) In order for a company to be successful, it must use all four strategies.
D) In terms of the basic business and management practices, the practice itself is less important than flawless execution of the ones the company does use.
E) No strategy can work unless every stakeholder buys into it 100 percent.

Question 17

Reflecting on the research study of over 200 management tools and techniques, which of the following companies is an example of a firm that excels based on a devising and maintaining a clearly stated, focused strategy?

A) Costco
B) Sears
C) Lululemon
D) Smucker's
E) Groupon

Question 18

As the annual marketing effort increases in a sales response function graph, so does the resulting annual sales revenue, which is

A) plotted on the vertical (Y) axis.
B) plotted on the horizontal (S) axis.
C) plotted on the vertical (Z) axis.
D) the center point.
E) plotted on the horizontal (X) axis.

Question 19

Lockheed Martin's Skunk Works is a leader in delivering world-class aircraft. About 50 engineers and designers and 100 expert machinists closely follow this guideline for organizational structure and implementation: Use a small number of good people who

A) implement the idea that "it is better to ask forgiveness than permission."
B) know their jobs, as well as the ones around them.
C) can talk to anyone in the organization to solve a problem.
D) recognize that everyone should have a voice in decision making.
E) never offer excuses, only explanations.

Question 20

Four basic business and management practices are what matter-"what really works," to use the phrase of the researchers who studied more than 200 management tools and techniques. All of these are included except which?

A) structure
B) culture
C) execution
D) strategy
E) leadership

Question 21

Figure 22-1

-According to Figure 22-1 above, the result of spending an additional $1 million in annual marketing effort from $3 million to $4 million resulted in increased revenues of

A) $20 million
B) $40 million
C) $50 million
D) $70 million
E) $80 million

Question 22

The actions taken during the implementation phase of the strategic marketing process include

A) obtaining resources.
B) selecting target markets.
C) positioning the product.
D) finding points of difference.
E) developing the budget by estimating revenues, expenses, and profits.

Question 23

You have been told that a company increased its marketing effort from $2 million to $5 million, resulting in increased sales revenue from $12 million to $21 million. Calculate the company's ratio of incremental sales revenue to incremental marketing effort.

A) 3:1
B) 1:3
C) 8:5
D) 5:2
E) 21:12

Question 24

The actions taken during market product focus and goal setting, Step 2 of the planning phase, include

A) identifying industry trends.
B) researching customers.
C) selecting target markets.
D) developing the program's marketing mix.
E) developing the budget by estimating revenues, expenses, and profits.

Question 25

Share points are

A) the ratio of sales revenue of the firm to the total sales costs.
B) the percentage points of market share used as the common basis of comparison.
C) the sales revenue generated by different products within the firm expressed as a percentage.
D) a measure of the quantitative value or trend of a marketing activity or result divided by the total marketing effort of the firm.
E) the total number of a product sold in one year compared to the cumulative total sold since its introduction, expressed as a percentage.

Question 26

When using share points to make marketing resource allocation decisions, marketing managers must estimate which of these?

A) total production costs
B) number of market segments
C) stage of the product in its product life cycle
D) the total financial resources available for a sustained marketing effort
E) the revenues associated with each point of market share

Question 27

New Balance has no celebrity endorsers and does minimal advertising, yet the athletic shoe brand has about 10 percent of the sales in the athletic footwear market. The marketing team at New Balance estimates that to increase sales to 11 percent of the market will require an increase of $25 million in marketing effort and will result in an increase of its footwear sales of an additional $45 million. This 1 percent incremental increase from 10 to 11 percent is referred to as

A) a rating.
B) marginal market share.
C) a sales response margin.
D) a share point.
E) a direct response rate.

Question 28

The information needed for the marketing program, Step 3 of the planning phase, includes

A) positioning studies.
B) market-product grids with targets.
C) detailed plans to execute the marketing program.
D) projected future sales, expenses, and profits.
E) trends for industry and competitors.

Question 29

During the planning phase of the strategic marketing process, the marketing manager will

A) design the marketing organization.
B) obtain resources.
C) develop marketing schedules.
D) construct managerial bonus plans.
E) set market and product goals.

Question 30

The information needed in market product focus and goal setting, Step 2 of the planning phase, includes

A) creating market-product grids with targets.
B) identifying trends for industry and competitors.
C) defining marketing mix actions.
D) creating detailed plans to execute the marketing program.
E) projecting future sales, expenses, and profits.

Question 31

The actions taken in a situation (SWOT) analysis or Step 1 of the planning phase include which of these?

A) set market and product goals
B) select target markets
C) find points of difference
D) position the product
E) assess your own company

Question 32

You have been told that a company increased its marketing effort from $3 million to $5 million, resulting in increased sales revenue from $10 million to $20 million. Calculate the company's ratio of incremental sales revenue to incremental marketing effort.

A) 4:1
B) 1:5
C) 5:1
D) 1:4
E) 10:1

Question 33

Which of these is used in the development of the marketing program, the third step of the planning phase of the strategic marketing process?

A) marketing return on investment
B) market-product grids with target segments and product groupings
C) trends for industry and competitors
D) marketing mix actions
E) market potential studies

Question 34

The information needed in a situation (SWOT) analysis or Step 1 of the planning phase includes

A) projections of future sales, expenses, and profits.
B) segmentation methods.
C) positioning studies.
D) market-product grids with target segments and product groupings.
E) marketing mix actions.

Question 35

The essence of resource allocation is that

A) company resources are allocated effectively in the strategic marketing process by converting marketing actions into marketing information.
B) individual management tools and techniques that a firm chooses to use are less important than flawless execution of the ones it does use.
C) sometimes you have to break the rules to spend every dollar in a budget.
D) incremental resources should be put where the incremental returns are greatest over the foreseeable future.
E) individual management tools and techniques have no direct relationship to superior business performance in the companies.

Question 36

Which of these pieces of information is used in market-product focus and goal setting, the second step of the planning phase of the strategic marketing process?

A) marketing return on investment
B) perceptual maps and positioning statements
C) revenues associated with each point of market share
D) possible cannibalization effects on other products in the line
E) trends for industry and competitors

Question 37

Which of the following information is used in the implementation phase of the strategic marketing process?

A) marketing return on investment
B) a time-based agenda and an action item list
C) revenues associated with each point of market share
D) trends for industry and competitors
E) possible cannibalization effects on other products in the line

Question 38

The actions taken in the development of the marketing program, Step 3 of the planning phase, include

A) selecting target markets.
B) identifying industry trends.
C) positioning the product.
D) finding points of difference.
E) developing the budget by estimating revenues, expenses, and profits.

Question 39

Percentage points of market share used as the common basis of comparison in an analysis to allocate marketing resources effectively for different product lines within the same firm are referred to as

A) market shares.
B) ratings.
C) marketing ROIs.
D) S-curve points.
E) share points.

Question 40

Which of these pieces of information is used in a SWOT analysis, the first step of the planning phase of the strategic marketing process?

A) marketing return on investment
B) market share for the product
C) trends for industry and competitors
D) revenues associated with each point of market share
E) possible cannibalization effects on other products in the line

Question 41

Each phase of the strategic marketing process creates its own unique type of output report. Which of these would be associated with the implementation phase?

A) performance reviews for key personnel
B) corrective action memos, triggered by comparing results with plans, often from the firm's marketing dashboards and metrics
C) sales reports using the firm's marketing metrics and dashboards
D) action memos that tell who is to do what by when
E) marketing plans that define goals with the pertinent marketing metrics and the marketing mix strategies to achieve them

Question 42

Which output report is used in the implementation phase of the strategic marketing process?

A) marketing plans that define goals
B) projections of sales and expenses
C) action memos that tell who is to do what by when
D) corrective action memos
E) tracking reports

Question 43

Senior marketing executives who prefer that "a company undertake major strategic initiatives to enhance its innovation and product-development capabilities" use two kinds of metrics: ________ metrics.

A) internal and external
B) corporate and stakeholder
C) output and input
D) sociocultural and competitive
E) economic and technological

Question 44

To enhance its innovation and product-development capabilities, firms use two different kinds of metrics: output and input. Which of these is an input metric?

A) number of ideas or concepts in the new-product pipeline
B) number of new products or services launched
C) return on assets (ROA) for existing products or services
D) customer satisfaction with new products or services
E) revenue growth due to new products or services

Question 45

Long-range marketing plans originate at the CMO level in companies, are directed at other senior-level executives, and give direction and a context for

A) a generic business strategy.
B) an annual marketing plan.
C) a long-range marketing plan.
D) a marketing action program.
E) a BCG model.

Question 46

Marketing plans that cover marketing investments and programs from two to five years into the future are referred to as

A) marketing tactics.
B) marketing strategies.
C) generic marketing strategies.
D) short-term marketing plans.
E) long-range marketing plans.

Question 47

The information needed for the evaluation phase of the strategic marketing process includes

A) positioning studies.
B) market-product grids with targets.
C) detailed plans to execute the marketing program.
D) tracking reports to measure results.
E) projected future sales, expenses, and profits.

Question 48

Long-range marketing plans cover marketing investments and programs

A) from one quarter to the next.
B) from six months to one year.
C) for a single year.
D) two to five years into the future.
E) 5 to 10 years into the future.

Question 49

During the planning phase of the strategic marketing process, the output report would take the form of

A) an action memo.
B) an operating statement.
C) a marketing dashboard.
D) a marketing plan.
E) a corrective tool checklist.

Question 50

A generic business strategy is a strategy that

A) seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
B) can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage.
C) describes an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals.
D) states the organization's function in society, often identifying its customers, markets, products, and technologies.
E) helps a firm search for growth opportunities from among current and new markets as well as current and new products.

Question 51

Which of the following information is used in the evaluation phase of the strategic marketing process?

A) action memos to correct problems and exploit opportunities
B) memos assigning responsibilities for actions and deadlines
C) revenues associated with each point of market share
D) trends for industry and competitors
E) possible cannibalization effects on other products in the line

Question 52

The actions taken during the evaluation phase of the strategic marketing process include

A) finding points of difference.
B) executing the marketing program.
C) comparing results with plans to identify deviations.
D) tracking sales and revenues and compare with competitors.
E) developing the budget by estimating revenues, expenses, and profits.

Question 53

________ place a heavy emphasis on segmentation, targeting, and positioning, elements of the marketing mix, and revenue and expense projections.

A) Generic business strategies
B) Annual marketing plans
C) Long-range marketing plans
D) Marketing action programs
E) BCG models

Question 54

The information needed for the implementation phase of the strategic marketing process includes

A) positioning studies.
B) market-product grids with target segments and product groupings.
C) organizational charts and marketing research reports.
D) detailed plans to execute the marketing program.
E) projected future sales, expenses, and profits.

Question 55

Annual ________ are documents that deal with the marketing goals and strategies for a product, product line, or entire firm for a single year.

A) production estimates
B) sales forecasts
C) budget projections
D) marketing plans
E) tactical forecasts

Question 56

________ consider what products and services to keep, add, and delete in the future using a portfolio analysis, present new marketing initiatives, and address marketing organization topics.

A) Marketing tactics
B) Marketing strategies
C) Generic marketing strategies
D) Short-term marketing plans
E) Long-range marketing plans

Question 57

Regardless of the product or industry involved, the strategy that a firm adopts to achieve a competitive advantage is referred to as

A) a generic business strategy.
B) an annual business plan.
C) a long-range marketing plan.
D) a marketing action program.
E) a synergy analysis framework.

Question 58

Which output report would be associated with the planning phase of the strategic marketing process?

A) performance reviews for key personnel
B) marketing plans that define goals and marketing mix strategies to achieve them
C) action memos that tell who is to do what by when
D) corrective action memos, triggered by comparing results with plans, often from the firm's marketing dashboards and metrics
E) sales reports using the firm's marketing metrics and dashboards

Question 59

Which output report is used in the evaluation phase of the strategic marketing process?

A) marketing plans that define goals
B) action memos that tell who is to do what
C) action memos that tell who is to do what by when
D) trend reports
E) corrective action memos

Question 60

To enhance its innovation and product-development capabilities, firms use two different kinds of metrics, output and input. Which of these is an output metric?

A) number of ideas or concepts in the pipeline
B) R&D spending as a percentage of sales
C) return on assets (ROA) for existing products or services
D) revenue growth due to new products
E) number of R&D projects

Question 61

The four generic business strategies involve combinations of ________ and an emphasis on costs versus product differentiation.

A) organizational structure
B) degree of geographical distribution
C) investment in research and development
D) relative number of products in a product line
E) competitive scope or the breadth of the target markets

Question 62

In the early 1900s, Henry Ford revolutionized the automobile industry by developing production lines and mass-producing the Ford Model T automobile. By heavily reducing production costs, Ford made the Model T affordable for the average American family. What generic business strategy did Ford use to gain a competitive advantage in the automobile market?

A) a cost-leadership strategy
B) a differentiation strategy
C) a cost focus strategy
D) a differentiation focus strategy
E) a limited production strategy

Question 63

Figure 22-3

-In the generic business strategies shown in Figure 22-3 above, which box represents a cost-leadership strategy?

A) Box A
B) Box B
C) Box C
D) Box D
E) This is not one of the generic business strategies.

Question 64

One of the generic business strategies that requires a product to have significant points of difference to charge a higher price while targeting a broad array of market segments is referred to as a

A) differentiation focus strategy.
B) cost focus strategy.
C) cost-leadership strategy.
D) differentiation strategy.
E) supply focus strategy.

Question 65

The four generic business strategies include all of these except which?

A) cost leadership
B) quality focus
C) differentiation focus
D) cost focus
E) differentiation

Question 66

According to a generic business strategy framework, there are two fundamental alternatives a firm can use to seek a competitive advantage. One of these is to

A) become the high-cost producer within the markets in which it competes.
B) adopt a "me too" strategy to achieve competitive parity.
C) become the low-cost producer within the markets in which it competes.
D) state its function in society to differentiate itself from competitors.
E) differentiate itself from competitors by developing similar marketing programs.

Question 67

Figure 22-3

-In the generic business strategies shown in Figure 22-3 above, which box represents a differentiation strategy?

A) Box A
B) Box B
C) Box C
D) Box D
E) This is not one of the generic business strategies.

Question 68

Figure 22-3

-In the generic business strategies shown in Figure 22-3 above, Box D refers to a ________ strategy.

A) cost leadership
B) quality focus
C) differentiation focus
D) cost focus
E) differentiation

Question 69

Figure 22-3

-In the generic business strategies shown in Figure 22-3 above, which box represents a differentiation focus strategy?

A) Box A
B) Box B
C) Box C
D) Box D
E) This is not one of the generic business strategies.

Question 70

According to the four generic business strategies framework, a ________ strategy focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments.

A) differentiation focus
B) cost focus
C) cost leadership
D) differentiation
E) supply focus

Question 71

Figure 22-3

-In the generic business strategies shown in Figure 22-3 above, Box B refers to a ________ strategy.

A) cost leadership
B) quality focus
C) differentiation focus
D) cost focus
E) differentiation

Question 72

Figure 22-3

-In the generic business strategies shown in Figure 22-3 above, Box A refers to a ________ strategy.

A) cost leadership
B) quality focus
C) differentiation focus
D) cost focus
E) differentiation

Question 73

A differentiation strategy refers to one of the generic business strategies that

A) involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments.
B) requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments.
C) focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments.
D) requires products to have significant points of difference to target one or only a few market segments.
E) seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.

Question 74

Delphi Automobile Systems manufactures and sells satellite communications systems for automobiles that connect you and your car to 24-hour-a-day emergency service, direct you to a destination, and enable you to order a movie while on the road. Delphi Automobile Systems most likely uses

A) a cost-leadership strategy.
B) a cost focus strategy.
C) a differentiation focus strategy.
D) an innovation strategy.
E) a differentiation strategy.

Question 75

Many people are concerned about eating healthy, but many of these same people still grab lunch at fast-food restaurants because the restaurants are convenient and they like cheeseburgers. Burger King has created a veggie burger that "tastes like the real thing without all the fat." Burger King is most likely using a ________ to attract this large market that encompasses many different segments.

A) cost-leadership strategy
B) cost focus strategy
C) differentiation strategy
D) differentiation focus strategy
E) service focus strategy

Question 76

Figure 22-3

-In the generic business strategies shown in Figure 22-3 above, which box represents a cost focus strategy?

A) Box A
B) Box B
C) Box C
D) Box D
E) This is not one of the generic business strategies.

Question 77

A cost leadership strategy refers to one of the generic business strategies that

A) involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments.
B) focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments.
C) requires products to have significant points of difference to target one or only a few market segments.
D) requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments.
E) seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.

Question 78

Figure 22-3

-In the generic business strategies shown in Figure 22-3 above, Box C refers to a ________ strategy.

A) cost leadership
B) quality focus
C) differentiation focus
D) cost focus
E) differentiation

Question 79

The four generic business strategies involve combinations of competitive scope or the breadth of the target markets and

A) organizational structure.
B) degree of geographical distribution.
C) investment in research and development.
D) an emphasis on either costs or product differentiation.
E) relative number of products in a product line.

Question 80

Which of these is one of the four generic business strategies?

A) exclusivity
B) quality focus
C) differentiation
D) geographic span
E) service leadership