Deck 2: Strategic Planning in Contemporary Marketing

Question 1

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

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

Answer 1

C

Question 2

Which statement best describes tactical planning?

A) It is conducted exclusively by supervisory personnel.
B) It is used to generate weekly plans, unit budgets, departmental rules and procedures.
C) It is designed to determine annual budgets and long-range strategic goals.
D) It is performed to substitute the strategic planning process in smaller organizations.

Answer 2

C

Question 3

Sport Canada is determining where it should build its permanent training facility. The organization wants it near a populated centre but in a rural location enough to provide ample room. What type of planning is the organization engaged in?

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

Answer 3

A

Question 4

What is effective relationship marketing partly built upon the use of?

A) inside information about competitors
B) databases to track customer preferences
C) larger advertising budgets
D) knowledge about changes in economic conditions

Question 5

Which statement best describes operational planning?

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

Question 6

Strategic planning has a critical impact on a firm's destiny. What does it provide to its decision makers?

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

Question 7

What is the process of anticipating future events and conditions and determining the best way to achieve organizational objectives called?

A) researching
B) planning
C) controlling
D) managing

Question 8

What type of plan does a company have when it focuses largely on current and near-future activities?

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

Question 9

Suppose Toyota was planning to introduce a sports car powered by a hydrogen-oxygen fuel cell when the price of gasoline in Canada reached $1.50 per litre. What type of plan does this best describe?

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

Question 10

Loblaw Companies acquired Shoppers Drug Mart and the highest executive who approved this acquisition was most likely the company's CEO. What planning process within Loblaw Companies was this decision was the direct result of?

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

Question 11

Compared with other organization personnel, who devotes more time to long-range strategic planning?

A) middle management
B) manufacturing labour
C) top management
D) supervisory management

Question 12

What are an organization's basic objectives or goals derived from?

A) its strategic plan
B) its tactical plan
C) its corporate strategy
D) its mission statement

Question 13

What do product lines, pricing decisions, selection of appropriate distribution channels, and decisions relating to promotional campaigns all depend on?

A) technology available to the firm
B) decisions made within the accounting department
C) plans formulated within the marketing department
D) industry-wide planning programs

Question 14

FreshFarm Market, a small grocery store chain, is working on its tactical plans. Which personnel would be most involved in this operational planning process?

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

Question 15

How can relationship marketing help a company?

A) by creating long-term links with individual customers for mutual benefit
B) by reducing its strategic planning effort because the need for such planning is greatly diminished
C) by finding more effective media for use in advertising and mass marketing
D) by cutting through the planning process and moving into tactical plans

Question 16

What does marketing planning establish?

A) the resource base provided by the firm's strategy
B) the economic impact of additional sales
C) the tactical plans that must be implemented by the entire organization
D) the basis for attaining marketing objectives

Question 17

What is a result of tactical planning?

A) total budget
B) long-term plans
C) divisional budgets
D) departmental rules

Question 18

Best Buy wanted to open a new store in Fredericton, New Brunswick, but instead of building a new store a decision was made to renovate a grocery superstore that had closed. What type of planning was this decision the result of?

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

Question 19

Who should complete operational planning?

A) top management
B) mid-level managers
C) supervisory management
D) lower management

Question 20

What type of plans in the planning hierarchy would deal with organization-wide objectives, long-term plans, and the total budget?

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

Question 21

General Motors has difficulty competing with other car makers because of its lack of responsiveness to changing consumer preferences. In SWOT terms, what does this constitute?

A) strategic window
B) leveraged situation
C) productivity challenge
D) constraint on its activity

Question 22

A shoe manufacturer has multiple suppliers for leather. Based on this information, which statement best describes the situation faced by the manufacturer?

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 23

Which of the following is NOT a company objective?

A) to increase sales by 10 percent per year
B) to be the quality and market leader of the global hotel industry
C) to reduce product errors to less than one percent
D) to add five new properties to the company portfolio

Question 24

What part of the organization should be most involved in formulating strategy for success of the good or service in the marketplace?

A) corporate executive team
B) potential customer
C) vendors and channel members
D) firm's marketing personnel

Question 25

What is SWOT an acronym for?

A) strategy, work, opinions, tactics
B) strengths, weaknesses, opportunities, threats
C) strategy, work, openness, toughness
D) strategy, weakness, opinions, tactics

Question 26

Which statement describes a first mover strategy in comparison to a second mover strategy?

A) The first mover strategy is more risky but offers higher reward.
B) The first mover strategy is more risky and offers lower reward.
C) The first mover strategy is less risky and offers higher reward.
D) The first mover strategy is less risky but offers lower reward.

Question 27

Which of the following is indicative of a second mover strategy?

A) entering new markets with existing products
B) making significant innovations that turn old products into new ones
C) observing closely the innovations of first movers and then improving on them
D) entering new markets with new products before any other entrants

Question 28

In SWOT analysis, what are situations in which organizations are unable to capitalize on opportunities because of internal limitations referred to as?

A) strategic windows
B) strategic leverage
C) constraints
D) vulnerability

Question 29

Which of the following best represents a mission statement?

A) Sobeys: Better food for all.
B) Kellogg's: Breakfast cereals at a price everyone can afford.
C) Bass Pro Shop: To be the leading merchant of outdoor recreational products, inspiring people to love, enjoy, and conserve the great outdoors.
D) Walmart: Stores big enough to make shopping interesting for every family member.

Question 30

An automobile manufacturer is dependent on a single supplier for tires. Based on this information, which statement best describes the situation faced by the manufacturer?

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 31

Which company has followed a second mover strategy?

A) Apple
B) Facebook
C) IBM
D) Ford Motor Company

Question 32

What is the third step in the corporate-level marketing planning process?

A) determining the necessary financing objectives and support
B) writing a marketing plan
C) assessing strengths, weaknesses, and opportunities
D) establishing organizational objectives

Question 33

How can a company modify a strategy when its actual performance is not in line with expected results?

A) by redefining the firm's mission
B) by focusing exclusively on long-range strategic issues
C) by putting the marketing strategy into action and monitoring performance
D) by interpreting the mission, vision, and values of the company differently

Question 34

What characteristic would a less competitive market have?

A) high barriers to entry
B) increased number of potential substitutes
C) strong bargaining power among buyers
D) strong bargaining power among suppliers

Question 35

What goal do all planning strategies have?

A) creating sustainable competitive advantage
B) creating short-term competitive advantage
C) creating a strategic window
D) creating leverage

Question 36

What is the first step in the corporate-level marketing planning process?

A) writing the mission statement
B) formulating a marketing plan
C) assessing strengths, weaknesses, and opportunities
D) establishing organizational objectives

Question 37

Which of the following defines an organization's mission?

A) process of anticipating future events and conditions
B) companywide program for scaling down the product-lines that are low on profitability
C) essential purpose that differentiates one company from others
D) collection of limited periods during which key requirements of a market and a firm's particular competencies best fit together

Question 38

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

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

Question 39

Business strategies are impacted by the widespread use of the Internet. Which statement best describes the Internet's impact?

A) The Internet has eliminated all forms of substitution threats.
B) The Internet has reduced barriers to market entry.
C) The Internet has reduced the bargaining power of end-users.
D) The Internet has reduced consumer awareness about the differences among competitors.

Question 40

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 41

What is one of the major problems with strategic windows?

A) They are presented when the market stays relatively stable for long periods.
B) Acquiring competencies for the firm is usually a major flaw.
C) They are not affected by a firm's competencies, constraints, or vulnerabilities.
D) They exist for only a limited time.

Question 42

Jenny has been appointed marketing manager for Sparkling Cleaning Products. Her job focuses on decisions involving customer service, package design, brand names, and warranties. What area of the marketing strategy does Jenny most likely work in?

A) product strategy
B) resource valuation and pricing
C) retailing and distribution strategy
D) target market development

Question 43

Which of the following is an example of a firm's strength discovered by a SWOT analysis?

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

Question 44

Jonathan is part of a team analyzing current demographic trends. The team will make a recommendation concerning the groups of consumers toward whom the firm should direct its marketing effort. What element of the firm's marketing strategy is Jonathan's team involved in?

A) target market
B) distribution
C) product
D) promotion

Question 45

What term refers to a SWOT analysis that is designed to reveal, among other things, a firm's core competencies?

A) financial resources
B) strengths
C) leverage
D) vulnerabilities

Question 46

In a SWOT analysis, when does a problem exist?

A) when internal organizational weaknesses prevent taking advantage of an opportunity
B) when environmental threats attack organizational weaknesses
C) when weaknesses are effectively addressed
D) when environmental threats are stronger than organizational strengths

Question 47

Which of the following is an example of a firm's weakness discovered by a SWOT analysis?

A) changing buyer tastes in the marketplace
B) the presence of modern production facilities
C) inadequate financing capabilities
D) likely entry of new competitors

Question 48

Assume a firm would like to expand its product line. A complete expansion would cost $100 million, but the firm can raise only $75 million in financing. What is this best classified as?

A) a constraint
B) an opportunity
C) a threat
D) a vulnerability

Question 49

WestJet Airlines has one of the lowest levels of operating expenses in the airline industry. In a SWOT analysis, what is this classified as?

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

Question 50

Which of the following describes the term marketing mix?

A) a composite analysis of all environmental factors inside and outside the firm
B) a series of business decisions that aid in selling a product
C) the relationship between a firm's marketing strengths and its business weaknesses
D) a blending of four strategic elements to satisfy specific target markets

Question 51

In SWOT analysis, when does vulnerability occur?

A) when internal organizational weaknesses prevent taking advantage of an opportunity
B) when environmental threats attack organizational weaknesses
C) when weaknesses are effectively addressed
D) when environmental threats are stronger than organizational strengths

Question 52

In a SWOT analysis, when is a constraint present?

A) when internal organizational weaknesses prevent taking advantage of an opportunity
B) when environmental threats attack organizational weaknesses
C) when organizational weaknesses are effectively addressed
D) when environmental threats are stronger than organizational strengths

Question 53

Which of the following is an example of a firm's weakness discovered by a SWOT analysis?

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 54

How is the term "product" best described?

A) It refers only to tangible items that can be seen, tasted, or touched.
B) It is a broad concept encompassing the satisfaction of consumer needs.
C) It is limited to include goods, services, and ideas only.
D) It never refers to such things as package design, brand name, or warranty.

Question 55

What strategy do decisions involving transportation, warehousing, inventory control, and order processing relate to?

A) pricing
B) competitive
C) product
D) distribution

Question 56

Which of the following is NOT a marketing mix variable?

A) distribution
B) product
C) target market
D) pricing

Question 57

What type of market is the group of people to whom a firm directs its marketing efforts?

A) captive
B) consumer
C) home
D) target

Question 58

At a time when computer users were having trouble storing, sending, and displaying photos, Apple introduced the iMac computer, which was equipped with a digital camera interface and photo-handling software. What did Apple recognize, which resulted in this product?

A) product innovations
B) competitive constraints
C) strategic window
D) financial opportunities

Question 59

Which of the following best describes limited occasions when the key requirements of a market and the particular competencies of a firm best fit?

A) marketing planning
B) strategic window
C) strategic planning
D) tactical door

Question 60

Which of the following is an example of a threat to a firm discovered by a SWOT analysis?

A) inadequate financing capabilities
B) the chance to acquire firms with needed technology
C) likely entry of new competitors in the industry
D) too narrow a product line for the firm

Question 61

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. What would be a good choice for this firm?

A) computer models
B) strategic business units
C) marketing audit
D) inventory audit

Question 62

What type of strategy do the marketing mix decisions that are most closely regulated and subject to public scrutiny usually relate to?

A) product
B) promotional
C) distribution
D) pricing

Question 63

Which of the following is a marketing planning tool?

A) market share/market growth matrix
B) consumer scanning model
C) market vulnerability/business opportunity matrix
D) market sheet analysis

Question 64

What does each strategic business unit (SBU) within a firm have?

A) advertising consultant
B) government "watch dog" agency
C) board of directors
D) competitors

Question 65

Miranda has been named to an upper-level management position at social media company TextUS Services. She will be working with transportation media, order processing, and development of marketing channels. What strategies would Miranda be involved in developing?

A) product
B) distribution
C) promotional
D) marketing

Question 66

Which of the following best fits the activity of promotion?

A) making products available
B) finding a convenient location
C) maintaining a high level of regulation
D) communicating between buyers and sellers

Question 67

According to the rule of three, what percentage of the market will the three leading firms in an industry have?

A) less than 25 percent
B) between 30 and 50 percent
C) between 70 and 90 percent
D) nearly 100 percent

Question 68

Ying is a marketer for a global consumer products company. She is designing a promotional campaign for a foreign market and wants to ensure that the promotional campaign is clearly understood by the target consumers. She is also taking special care to see that the campaign is free from controversies and does not inadvertently offend anyone. In this scenario, Ying is specifically trying to take into account variables in which of the country's environments?

A) social-cultural
B) political-legal
C) economic
D) competitive

Question 69

An international apparel manufacturer changed its pricing strategy as it entered a new market where recessionary trends are being observed. What factor of the marketing environment led the firm to change its pricing decisions?

A) legal-political
B) social-cultural
C) technological
D) economic

Question 70

According to the market share/market growth matrix, how does a successful product typically begin?

A) as a question mark, then a star, and eventually moves to the status of cash cow
B) as a star, fades to a question mark, and finally becomes a dog and is dropped
C) as a cash cow, moves to a question mark, and finally becomes a star
D) as a cash cow and fades to a dog when it's dropped

Question 71

A food chain has a promotion where each purchaser of a large, rather than a medium-sized beverage, gets a chance to win a prize. Which of the following best describes the strategic growth opportunity that is being used?

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

Question 72

Which of the following best describes the strategic business unit (SBU) concept?

A) a planning tool that separates tactical and operational issues for analysis
B) a device used primarily to separate marketing costs from production expenses
C) a marketing planning tool best suited to the needs of large, diversified organizations
D) a way to create units of business activity based solely on sales potential

Question 73

What does the quadrant of the market share/market growth matrix that represents both a high market share and a high rate of market growth include?

A) cash cows
B) achievers
C) stars
D) strivers

Question 74

To evaluate an organization's SBUs, the Boston Consulting Group developed a portfolio performance framework. How did they characterize some of the SBUs?

A) question marks
B) quick winners
C) charging bulls
D) cash-outs

Question 75

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

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

Question 76

Microsoft Windows generates considerable income for the parent company but is also expensive to support. However, the expense is acceptable because Windows is the world's dominant operating system. How would Windows be classed under the market share/market growth matrix?

A) as a star
B) as a cash cow
C) as a question mark
D) as a dog

Question 77

The product manager for a new mousetrap informs the board of directors at its annual meeting that the product has been classified as a dog. What does this mean about the product?

A) It requires a "go/no go" decision within the next several years.
B) It has low market share of a high-growth rate market.
C) It should be withdrawn from the market.
D) It needs heavy investment to make it a star.

Question 78

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

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

Question 79

How does the market share/market growth matrix classify products with a low relative share of a high-growth rate market?

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

Question 80

What marketing mix activity are newsletters, catalogues, and invitations to company-sponsored events most closely associated with?

A) pricing
B) distribution
C) product development
D) promotion