Deck 3: Strategic Planning and Marketing

Question 1

The practice of offering modified or new products to current markets is BEST described as which of the following?

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

Answer 1

C

Question 2

According to the text, more and more companies are shifting their brand management focus towards .

A) customer management
B) geographic management
C) combination management
D) product management
E) value management

Answer 2

A

Question 3

The four possible strategies that can be pursued for each SBU are build, hold, , and .

A) downsize; expand
B) harvest; divest
C) develop; acquire
D) promote; sell
E) diversify; penetrate

Answer 3

B

Question 4

In the BCG matrix, low- growth, low- share businesses and products are known as . These business or products may generate enough cash to maintain themselves but they generally don't promise to generate large volumes of cash.

A) dogs
B) question marks
C) stars
D) cash cows
E) none of the above

Question 5

Pharmaceutical company, Bayer International, is probably most well known for its drugs and marketed under trade names such as Aspro, Alka- Seltzer and Canesten. In fact, Bayer is a very diverse company with three main corporate divisions: (i) Healthcare which markets its range of pharmaceuticals; (ii) CropScience which manufactures and markets fungicides, pesticides and herbicides for use in horticulture and gardening and (iii) MaterialsScience which manufactures and markets a range of polymers, polyurethanes, adhesives and plastics used in manufacturing and heavy industry. Bayer's three divisions are known as:

A) strategic business units.
B) product stable.
C) wholly- owned subsidiaries.
D) business portfolios.
E) corporate shells.

Question 6

A complete analysis of the company's situation is known as a(n):

A) SWOT analysis.
B) PESTLE analysis.
C) SWEET analysis.
D) PEST analysis.
E) none of the above

Question 7

Which of the following would NOT be considered to be an example of market development?

A) Develop new lifestyle market segments for the product.
B) Develop product modifications with superior alignment with customer needs.
C) Develop new demographic market segments for the product.
D) Develop different geographic markets.
E) All of the above are examples of market development.

Question 8

The process of classifying customers into distinct groups with similar needs, characteristics, or behaviour is known as:

A) market positioning.
B) market segmentation.
C) market development.
D) market aggregation.
E) market targeting.

Question 9

can be a company division, a product line within a division, or sometimes a single product or brand.

A) A PLC
B) A market
C) A value delivery network
D) The BCG
E) An SBU

Question 10

According to the text, Scott Armstrong recommends that instead of performing a SWOT analysis, companies should follow a formal written process to achieve which of the following?

A) generate and evaluate alternative strategies
B) set objectives
C) monitor results
D) gain commitment among the stakeholders during each step of this process
E) all of the above

Question 11

After management has identified the key businesses making up its company, what is the next step?

A) Assess the attractiveness of its SBUs.
B) Identify businesses in which to invest.
C) Decide whether to harvest any businesses.
D) Decide which business to grow.
E) Complete short- range planning.

Question 12

Market growth rate, plotted on the vertical axis of the Boston Consulting Group growth- share matrix serves as a measure of:

A) profitability.
B) strategic strength.
C) market attractiveness.
D) productivity.
E) company market strength.

Question 13

According to the text, Scott Armstrong and others have critisised the SWOT analysis for a variety of reasons. Which of the following is NOT one of the criticisms of the SWOT?

A) It is time- consuming and expensive to prepare.
B) There is no logical link with strategy development and implementation.
C) It lacks analytical rigour.
D) It tends to be overly descriptive.
E) All of the above are criticisms of SWOT analyses.

Question 14

The type of planning that identifies the organisation's long-term purpose, sets goals and objectives and identifies the major marketing strategies used to attain them is known as:

A) functional planning.
B) strategic planning.
C) management planning.
D) marketing planning.
E) long- term planning.

Question 15

Specific skills and capabilities that enable a firm to deliver its offerings to market are known as:

A) collateral.
B) intangible assets.
C) human resources.
D) embedded assets.
E) core competencies.

Question 16

In the 1980s and 1990s, the Coca- Cola Company experienced considerable difficulty growing its market share, which at the time was operating at around 70 per cent of the total carbonated beverage market. To ensure long-term growth, the Coca- Cola Corporation embarked on an ambitious acquisitions programme, including the purchase of feature film company Columbia Pictures. Coca- Cola's acquisitions are an example of which growth strategy?

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

Question 17

While each of the divisions that comprise General Motors is integral to the overall company's operations, each division has a separate mission and develops its objectives and strategies independently. Each division could be described as a:

A) strategic business unit.
B) business portfolio.
C) wholly- owned subsidiary.
D) corporate shell.
E) product stable.

Question 18

A group of customers who respond in a similar way to a given set of marketing strategies and tactics is known as:

A) market segment.
B) target market.
C) market potential.
D) market niche.
E) product market.

Question 19

The BCG growth- share matrix classifies four types of SBUs. They are _, _ , , and .

A) product; price; promotion; placement
B) sales; market share; price; promotion
C) market penetration; market development; product development; diversification
D) planning; organising; leading; controlling
E) stars; cash cows; question marks; dogs

Question 20

A company that sells across the country or internationally often uses a(n) organisation. In this type of organisation, sales and marketing people are assigned to specific countries, regions and districts.

A) psychographic
B) geographic
C) international
D) regional
E) global

Question 21

Relative market share, plotted on the horizontal axis of the Boston Consulting Group growth- share matrix serves as a measure of:

A) company market strength.
B) productivity.
C) profitability.
D) strategic strength.
E) market attractiveness.

Question 22

The organisational system's main advantage is that the company is organised around the needs of specific market segments.

A) product management
B) vertical management
C) functional management
D) geographic management
E) market management

Question 23

In the BCG approach, _ are high- share, high- growth businesses or products. They need heavy investment to finance rapid growth. When their growth slows down, they are likely to turn into .

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

Question 24

The collection of businesses and products that make up a company is known as its:

A) strategic units.
B) business portfolio.
C) corporate livery.
D) business units.
E) product stable.

Question 25

Companies that sell one product line to many different types of markets and customers who have different needs and preferences, a management organisation might be best.

A) targeted
B) psychographic
C) market or customer
D) demographic
E) segmented

Question 26

A measure of the rate at which a company or a business unit attracts new business is known as:

A) share of relationships.
B) customer acquisition.
C) market share.
D) customer equity.
E) customer tracking.

Question 27

In 2004, the market research company, Roy Morgan Research discovered a new market segment which they labeled, "Neos." The defining features of this segment are that they exhibit high levels of spending, especially on luxury goods and that they have sustainable differences in the underlying attitudes and values that motivate high spending. This discovery of this segment was of generated considerable interest to marketers because it represented:

A) a corporate asset.
B) a target market.
C) a favourable factor in the environment.
D) an unfavourable factor in the environment.
E) a new market opportunity.

Question 28

Marketing control involves a series of steps or processes. Which of the following is NOT one of the steps involved in marketing control?

A) measure performance
B) evaluate causes of any difference between expected and actual performance
C) take corrective action
D) write a marketing control report
E) set specific marketing objectives

Question 29

Service marketers have argued that the traditional four Ps of the marketing mix should be expanded to include three new Ps. Which of the following is NOT one of the new Ps?

A) Productivity
B) People
C) Physical evidence
D) Process
E) all of the above

Question 30

The SBUs or products that present the most difficult management decisions are:

A) question marks.
B) dogs.
C) cash cows.
D) stars.
E) all of the above

Question 31

In 2000, Virgin Airlines entered the Australian market positioning itself as a budget carrier in which it largely pursued the leisure travel market. However, in 2011, Virgin Australia, announced that it would reposition itself by offering superior service levels pitched at the more lucrative corporate market. The leisure travel market and the corporate market are BEST described as which of the following?

A) target markets
B) market coverage
C) product markets
D) market segments
E) niche markets

Question 32

Internal capabilities that may help the company achieve its objectives are known as:

A) core capabilities.
B) core competencies.
C) strengths.
D) strategic capacity.
E) opportunities.

Question 33

Kaplan and Norton, as cited in your text, have argued that every organisation should include certain key customer measures to reflect the marketing effort. Which of the following is NOT one of these customer measures?

A) market share
B) customer profitability
C) customer acquisition
D) sales growth
E) customer retention

Question 34

Which of the following is a useful tool for identifying growth opportunities?

A) the business portfolio
B) the product/market expansion grid
C) the value delivery network
D) the value chain
E) the BCG matrix

Question 35

are low- growth, high share businesses or products. They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.

A) Cash cows
B) Stars
C) Dogs
D) Question marks
E) Cats

Question 36

The New- Process Cheese Company has developed a cheese product that features almost indefinite shelf life and can be easily dispensed from a unique aerosol container. Which of the following growth strategies is the firm employing?

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

Question 37

The set of tactical and marketing tools that the firm blends to produce a desired response from the target market is known as:

A) the corporate mix.
B) the product mix.
C) the marketing mix.
D) the strategic mix.
E) none of the above

Question 38

When dealing with a _ , managers must decide whether to invest in it in an attempt to build it into a star or cash cow or whether to phase it out.

A) cash cow
B) dog
C) cat
D) star
E) question mark

Question 39

Kaplan and Norton, as discussed in your text, have argued that every organisation aims to achieve certain strategic outcomes. Which of the following is NOT one of these outcomes?

A) delighted customers
B) satisfied shareholders
C) profits
D) a motivated and prepared workforce
E) effective processes

Question 40

The section of the marketing plan that outlines the broad marketing logic by which the business unit hopes to create customer value and relationships and the specifics of target markets, positioning and marketing expenditure levels is termed the:

A) action programmes.
B) marketing strategy.
C) objectives and issues.
D) current marketing situation.
E) budgets and controls.

Question 41

Arnotts Biscuits intends to increase the sales of its ginger nut biscuits in its current markets. At a tactical level, it plans to accomplish this goal by reducing prices, increasing promotional support and encouraging new uses for the biscuit by publishing free new recipe ideas to encourage customers to use ginger nut biscuits in innovative desserts. Arnotts is following the strategy of:

A) market development.
B) diversification.
C) product development.
D) market penetration.
E) harvesting.

Question 42

Managing the marketing process requires four marketing management functions, namely analysis, planning, and .

A) implementation; measurement
B) implementation; control
C) evaluation; control
D) measurement; control
E) control; corrective action

Question 43

The section of a marketing plan that spells out how marketing strategies are to be achieved and answers questions such as: What will be done? When will it be done? Who will do it? How much will it cost? is termed the:

A) controls.
B) budget.
C) current marketing situation.
D) action programmes.
E) objectives and issues.

Question 44

The product/market expansion grid is also referred to as:

A) General Electric (GE) screen.
B) Arthur D. Little grid.
C) Boston Consulting Group (BCG) matrix.
D) Ansoff grid.
E) Mc Kinsey grid.

Question 45

In 1961, John F. Kennedy, the then President of the United States, famously said, "This nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth." At the time when Kennedy made his speech, none of the technologies required to propel a spacecraft across the vast distances involved had yet been developed. Yet, Kennedy's speech inspired NASA's Apollo space programme with the first successful moon landing in 1969. Kennedy's challenge to land a man safely on the moon is a great example of:

A) a strategic plan.
B) an objective.
C) a research imperative.
D) a mission.
E) none of the above

Question 46

The Boston Consulting Group portfolio technique evaluates SBUs on two dimensions, namely and .

A) market growth rate; profits
B) market or industry attractiveness; strength of the SBU's position
C) market or industry growth rate; market or industry attractiveness
D) market penetration; market development
E) market share; strength of the SBU's position

Question 47

Tiger Airlines' customers are willing to sacrifice some level of service in order to obtain the lowest possible fare. This type of customer makes up one:

A) value chain.
B) customer extension.
C) market position.
D) value network.
E) market segment.

Question 48

In a SWOT analysis, which of the following would be considered a strength?

A) trends in the market
B) internal limitations
C) internal resources
D) favourable factors in the environment
E) factors that challenge the company's performance

Question 49

At which level of the corporation does strategic planning begin?

A) corporate
B) business intelligence unit
C) strategic business unit
D) sales/marketing department
E) functional level

Question 50

Modern marketing departments can be organised in all of the following ways, EXCEPT which one?

A) product management organisation
B) market management organisation
C) strategic management organisation
D) geographic organisation
E) combination organisation

Question 51

The process of looking at whether the company's basic strategies are well matched to its opportunities is known as:

A) operational "best- fit" analysis.
B) operational gap analysis.
C) operating control.
D) strategic gap analysis.
E) strategic control.

Question 52

An organisation that uses both financial and non- financial performance measures to evaluate its performance is using a:

A) bottom- line reporting.
B) marketing dashboard.
C) red line reporting.
D) balanced scorecard.
E) business portfolio.

Question 53

Most companies understand that they cannot serve all segments of the market. Thus, each company must divide up the total market, choose the most attractive segments, and design strategies for profitably serving those chosen segments. This process involves , , differentiation and positioning.

A) assessing market attractiveness; identifying SBUs
B) competitive positioning; market development
C) market segmentation; market targeting
D) market development; market penetration
E) market targeting; product development

Question 54

Which of the following is NOT one of the characteristics of a mission statement?

A) Mission statements should state the organisational purpose.
B) Mission statements should include measurable criteria such as sales or profits.
C) Mission statements should be motivating.
D) Mission statements should be market- oriented.
E) Mission statements should be meaningful and specific.

Question 55

The first step in strategic planning is to:

A) recruit and train.
B) design a business portfolio.
C) plan marketing and other functional level strategies.
D) define a corporate mission.
E) set corporate objectives and goals.

Question 56

Most companies enter the market by serving a segment, and if this is successful they then add more .

A) niche; markets
B) profitable market; segments
C) small market; products
D) geographic; regional markets
E) single; markets

Question 57

Which of the following is a market- oriented mission statement?

A) We make casings for sausages and smallgoods.
B) We develop communications that will enable the world to become more open and connected.
C) We sell women's clothing and accessories.
D) We operate theme parks.
E) We raise organic chicken.

Question 58

Which of the following would NOT be considered as an example of product development?

A) launch a range of new products that complement the company's existing products
B) product modifications that include new ingredients
C) availability of product in new sizes
D) encourage customers to find new uses for the product
E) availability of product in new packaging

Question 59

The Nutrition Corporation, a major Australian manufacturer of food products, believes that it can sell its current product in Japan. The strategy The Nutrition Corporation is considering is referred to as:

A) market development.
B) diversification.
C) product development.
D) market penetration.
E) harvesting.

Question 60

The primary focus of strategic planning is to:

A) determine how the company can best use its strengths to take advantage of market opportunities.
B) seek out and develop new market segments.
C) ensure the company remains compliant with regulatory requirements.
D) prepare annual and long- range plans.
E) deal with the company's current businesses and how to keep them going.

Question 61

External factors that the company may be able to exploit to its advantage are known as:

A) strategic capabilities.
B) opportunities.
C) external capacity.
D) internal strengths.
E) external strengths.

Question 62

Business portfolio planning involves two steps: and .

A) identifying internal strengths; identifying external opportunities
B) identifying growth opportunities; evaluating growth opportunities
C) analysing the current business portfolio; shaping the future business portfolio
D) identifying SBUs; assessing the attractiveness of SBUs
E) conducting a SWOT analysis; establishing marketing controls

Question 63

Marketing implementation is the process that turns marketing into marketing to accomplish strategic marketing objectives.

A) plans; actions
B) mission; objectives
C) strategies; tactics
D) proposals; strategies
E) proposals; reality

Question 64

In the Boston Consulting Group Matrix, areas of the circles are proportional to the SBU's:

A) market attractiveness.
B) growth rates.
C) dollar sales.
D) profitability.
E) market share.

Question 65

Which of the following would NOT be considered as an example of market penetration?

A) deep price discounts to encourage increased sales and customer stock- piling
B) encourage customers to find new uses for existing products
C) negotiations with retail outlets to develop improved shelf placement
D) offer the product in a greater range of sizes, packages or colours
E) encourage customers to use more of the product via two- for- the price of one promotional offers

Question 66

A statement of the organisation's purpose-what it wants to accomplish in the larger environment -is known as:

A) a statement of Hope.
B) a long-term plan.
C) a goal.
D) an objective.
E) a mission.

Question 67

The process of developing and maintaining a strategic fit between the organisation's goals and capabilities and its changing marketing opportunities is known as:

A) marketing planning.
B) corporate planning.
C) strategic planning.
D) opportunity analysis.
E) portfolio analysis.

Question 68

John Stevens has been assigned to a team charged with the development of a clear company mission, supporting objectives, a sound business portfolio, and coordinated functional strategies. John is involved in:

A) annual and long-term planning.
B) corporate financial planning.
C) strategic planning.
D) new product development.
E) management planning.

Question 69

According to a recent study reported in your text, which of the following is one of the most frequently used management tools, being used by about 50 per cent of organisation?

A) Mc- Kinsey grids
B) GE screening
C) portfolio analysis
D) core competency analysis
E) balanced scorecard

Question 70

In the BCG matrix, income from can be used to help finance other SBUs or products such as the company's question marks and stars.

A) cash cows
B) SBUs
C) dogs
D) overseas operations
E) sales revenue

Question 71

The company needs to add new products and units continuously so that some of them will become and, eventually, that will help finance other SBUs.

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

Question 72

Which of the following is NOT one of the characteristics of core competencies?

A) make a significant contribution to perceived customer benefits
B) difficult for competitors to imitate
C) provide access to wide markets
D) should be unique
E) All of the above are characteristics of core competencies.

Question 73

The company is generally advised to take some decisive action, such as divestment, concerning its and marks, lest it have insufficient revenue to maintain all its SBUs.

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

Question 74

A firm attempts to identify and develop new markets for current products by a strategy known as:

A) market development.
B) diversification.
C) product development.
D) market penetration.
E) harvesting.

Question 75

A measure of the company's business expressed as a proportion of the total business in a given market is known as:

A) brand equity.
B) market share.
C) share of customer.
D) customer equity.
E) share of mind.

Question 76

Of the following product/market expansion strategies, the strategy whereby the company seeks greater sales to present customers without changing the product in any way is:

A) market development.
B) diversification.
C) product development.
D) market penetration.
E) harvesting.

Question 77

Which of the following is NOT a valid criticism of the marketing mix?

A) It is overly focussed on customer value.
B) It adopts a seller's view of the market.
C) It overlooks many important marketing activities such as packaging and people.
D) It is overly simplistic.
E) none of the above

Question 78

The rate at which a company or a business unit retains relationships with existing customers is known as:

A) customer retention.
B) share of mind.
C) customer tracking.
D) market share.
E) customer equity.

Question 79

The place a product occupies in the consumer's mind, relative to competitors' products, is known as:

A) product placement.
B) product slogan.
C) product position.
D) market position.
E) none of the above

Question 80

Which of the following is NOT one of the steps in strategic planning?

A) design a business portfolio
B) allocate resources
C) set corporate objectives and goals
D) define a corporate mission
E) plan marketing and other functional level strategies