Deck 2: Strategic Planning

Question 1

A(n)_____ explains why customers should buy a product,why stakeholders should donate,or why prospective employees may want to work for an organization.

Answer 1

value proposition

Question 2

Hispanic consumers are the target market for many products because this is a:

A) growing group of consumers with about a million dollars in buying power.
B) group of consumers requiring new value propositions.
C) group of consumers who are interested in products in the growth stage of the product life cycle.
D) growing group of consumers with over a trillion dollars in buying power.
E) group of consumers interested in the firm's marketing strategies.

Answer 2

D

Question 3

Explain why companies have different value propositions for each target market.

Answer 3

Firms with multiple target markets understand that the value of their products or services may vary based on the customer.Thus,a firm often needs to develop different value propositions for these target markets to ensure that each group of customers understand the benefits provided by the company's products.

Question 4

A company's resources,capabilities,and technology are examples of _____.

Question 5

A value proposition states the specific benefits a product or service offering provides to a buyer.

Question 6

A value proposition is utilized not only by firms,but also by individuals.

Question 7

A __________ states the specific benefits that a product or service offering provides to a buyer.

A) marketing campaign
B) diversification strategy
C) target market analysis
D) marketing plan
E) value proposition

Question 8

The group of customers toward which an organization directs its marketing efforts is known as the _____.

Question 9

The economy,competitors,and government regulations that could affect what the firm wants to do are part of the _____.

Question 10

Sally's cookie company sells products both online and at retail locations.She has developed multiple value propositions because:

A) cookies necessitate more explanation than other products due to the variety of flavors.
B) Sally is an overachiever and likes to do more work than necessary.
C) Sally's firm is serving more than one target market.
D) cookies are part of a saturated market.
E) cookies are in the mature stage of the product life cycle.

Question 11

A value proposition is formed after the firm develops a strategic plan.

Question 12

The purpose of a value proposition is to provide the:

A) firm with a reason why buyers prefer their product or service offering.
B) buyer with a reason why the product or service is superior to competing offers.
C) buyer with a price point for purchase.
D) firm with a moral code of ethics.
E) seller with a price point for purchase.

Question 13

A value proposition is an extensive,in-depth explanation of a firm's benefits.

Question 14

The group of customers toward which an organization directs its marketing efforts is known as the _____.

A) constituency
B) target market
C) direct market
D) value group
E) key market

Question 15

A(n)_____ is a statement that summarizes the key benefits or value for target customers.

Question 16

A well-developed value proposition:

A) focuses on the external market, or what customers want.
B) conveys the firm's profits.
C) focuses on the supply chain's benefits.
D) increases product development.
E) differentiates from buyers in the market.

Question 17

What is involved in creating a successful value proposition?

Question 18

Conditions external to the firm include looking at a firm's resources,capabilities,and technology.

Question 19

Explain how individuals can utilize value propositions.

Question 20

A value proposition states the:

A) firm's strategy for entering new markets with new product or service offerings.
B) firm's marketing objectives.
C) firm's pricing strategy.
D) buyer's purchase incentives.
E) specific benefits a product or service offering provides to a buyer.

Question 21

A firm's _____ states the purpose of the organization and why it exists.

Question 22

A situation analysis looks at a company's strengths,weaknesses,opportunities,and threats.

Question 23

_____ changes the way people communicate and the way firms do business.

Question 24

Which of the following is a function of the Food and Drug administration?

A) It prohibits U.S. firms from restraining trade.
B) It regulates deceptive advertising.
C) It regulates the labeling of consumable products.
D) It creates monopolies and cartels.
E) It prohibits monopolies and cartels.

Question 25

With reference to the external environment,the_____ includes competition,suppliers,marketing intermediaries (retailers,wholesalers),the public,the company,and customers.

A) micro environment
B) target market
C) macro environment
D) trade commission
E) decoy market

Question 26

_____ are internal factors that are somewhat controllable and can be utilized by the company to create a competitive advantage.

Question 27

People who act like customers are known as _____.

A) mystery shoppers
B) savvy consumers
C) decoy shoppers
D) shoplifters
E) the target market

Question 28

Marketing environmentally safe products and services in a way that is good for the environment is called responsible marketing.

Question 29

Which of the following does green marketing typically involve?

A) Marketing environmentally safe products and services in a way that is good for the company.
B) Using online ads and mobile marketing and not newspapers and magazine for advertising.
C) Marketing green spaces, such as parks.
D) Utilizing the Environmental Protection Agency in marketing efforts.
E) Marketing environmentally safe products and services in a way that is good for the environment.

Question 30

A complete situation analysis involves assessing a company's internal environment.

Question 31

The companies that provide ingredients as well as packaging to other firms are known as _____.

Question 32

People who act like customers and visit competitors to learn about their customer service and their products are known as mystery shoppers.

Question 33

Analyzing the _____ environment involves tracking conditions in the marketplace that are largely uncontrollable.

Question 34

Michael Porter's five forces model includes all of the following EXCEPT:

A) rivalries of existing companies.
B) threat of substitute products.
C) bargaining power of buyers.
D) threat of supplier penetration development.
E) threat of new entrants.

Question 35

_____ is a long-term process that helps an organization allocate its resources to capitalize on opportunities in the marketplace.

A) Marketing
B) Contingent planning
C) Strategic planning
D) Diversification
E) Decentralization

Question 36

Opportunities and threats are internal to the organization and are largely uncontrollable.

Question 37

A firm's _____ states the purpose of the organization and why it exists.

A) value proposition
B) business plan
C) marketing plan
D) mission statement
E) financial report

Question 38

Sarah owns a store in a town where the population has changed from low-income singles to high-income families.Based on which of the following types of environmental changes does Sarah need to make changes?

A) Economic
B) Technology
C) Social and cultural
D) Natural resources
E) Legal and political

Question 39

The Federal Trade Commission and the Food and Drug Administration require that all organizations comply and understand the _______ in which they do business.

Question 40

In Michael Porter's five forces model,the threat of supplier bargaining power refers to:

A) a buyer being large enough, to affect a selling company's performance.
B) the likelihood a supplier will enter into a customer's market.
C) visiting competitors to learn about their customer service and their products.
D) vying for the supplier's dollar.
E) the threat of substitute products.

Question 41

Exporting and direct investment are examples of international market-penetration strategies.

Question 42

A skincare company has decided to market its lotion to older women in addition to its current youth female market.This company is utilizing a _____ strategy.

A) market-penetration
B) product-development
C) market-development
D) diversification
E) downsizing

Question 43

Maggie has implemented a market-development strategy by selling her jewelry not only in Nashville,but also in Chicago.

Question 44

Describe the components of a situation analysis.

Question 45

Which of the following strategies involves offering products that are unrelated to other existing products produced by the organization?

A) Market-penetration
B) Product-development
C) Market-development
D) Diversification
E) Downsizing

Question 46

Trent would like to increase his clothing sales by 4% over the next 24 months.Which of the following has Trent created?

A) Market penetration strategy
B) Downsizing strategy
C) Mission statement
D) Objective
E) Marketing plan

Question 47

Objectives are actions taken to accomplish strategies.

Question 48

A firm's objectives should be:

A) goals to shoot for but expect to fall short on.
B) realistic and measurable.
C) reliable and dependable.
D) focused on revenue.
E) practical and successful.

Question 49

A _____ strategy involves selling more of existing products and services to existing customers.

A) market-penetration
B) product-development
C) market-development
D) diversification
E) downsizing

Question 50

Most for-profit organizations publish their objectives.

Question 51

Which of the following strategies involves selling existing products or services to new customers?

A) Market-penetration
B) Product-development
C) Market-development
D) Diversification
E) Downsizing

Question 52

A cookie company has decided to add a brownie product line to their inventory.Which of the following strategies is being employed by this company?

A) Market-penetration
B) Product-development
C) Market-development
D) Diversification
E) Downsizing

Question 53

A business plan is a strategic plan at the functional level that provides a firm's marketing group with direction.

Question 54

John is offering his customers a special promotion for t-shirts: buy one,get the second one for a discount of 50%.Which of the following strategies is John utilizing?

A) Market-penetration
B) Product-development
C) Market-development
D) Diversification
E) Downsizing

Question 55

A market-penetration strategy involves selling more of existing products and services to existing customers.

Question 56

A _____ strategy involves creating new products or services for existing markets.

A) market-penetration
B) product-development
C) market-development
D) diversification
E) downsizing

Question 57

A direct investment strategy involves the most risk and investment but offers the most control.

Question 58

A fashion house purchased a music company.This is an example of a _____ strategy.

A) market-penetration
B) product-development
C) market-development
D) diversification
E) downsizing

Question 59

_____ are actions taken by a firm to accomplish _____.

A) Strategies; objectives
B) Objectives; strategies
C) Objectives; mission statements
D) Mission statements; strategies
E) Marketing plans; objectives

Question 60

List and describe the parts of Porter's five forces model and explain how it is utilized by companies.

Question 61

List and describe the four types of product strategies and market-entry strategies that companies pursue.

Question 62

List and describe the six types of market-development strategies outlined in your text.Which is the most risky and which is the least risky?

Question 63

When entering an international market,_____ is the least risky method,while _____ is the most risky strategy.

A) exporting; joint ventures
B) licensing; exporting
C) franchising; licensing
D) joint ventures; direct investment
E) exporting; direct investment

Question 64

An auto company decided to downsize a current vehicle model into a smaller SUV.This is known as utilizing a _____ strategy.

Question 65

A _____ is a strategic plan at the functional level that provides a firm's marketing group with direction.

Question 66

Owning a company or facility overseas is known as _____.

Question 67

Offering consumers special promotions or low prices with the intent to encourage them to buy products is part of a _____strategy.

Question 68

____ are what organizations want to accomplish in a given time frame.

Question 69

_____ help guide and motivate a company's employees and give its managers reference points for evaluating the firm's marketing actions.

Question 70

_____ combines the expertise and investments of two companies and helps companies enter foreign markets.

A) Exporting
B) Licensing
C) A joint venture
D) Contract manufacturing
E) Direct investment

Question 71

Successful _____ help organizations establish and maintain a competitive advantage that competitors cannot easily imitate.

Question 72

Direct investment refers to:

A) selling the right to use trademarks or patents to another firm.
B) allowing companies to hire manufacturers to product their products in another country.
C) a form of licensing.
D) owning a company or facility overseas.
E) combining the expertise and investments of two companies.

Question 73

Corporate level plans are developed for each strategic business unit.

Question 74

Corporate level plans help to achieve the overall goals of the corporation while business level plans help to achieve goals at the individual business level.

Question 75

Selling a product to buyers abroad is known as _____.

Question 76

A _____ is a road map that improves the firm's understanding of its competitive situation.

A) marketing plan
B) mission statement
C) situation analysis
D) SWOT analysis
E) direct competitor analysis

Question 77

Universities who allow their logos to be placed on t-shirts and other goods by third parties are engaging in _____.

A) exporting
B) licensing
C) franchising
D) contract manufacturing
E) direct investment

Question 78

_____ refers to firms selling the right to use some aspect of their production processes,trademarks,or patents to individuals or firms in foreign markets.

A) Exporting
B) Licensing
C) Franchising
D) Contract manufacturing
E) Direct investment

Question 79

The least risky and least expensive method used by companies to enter international markets is known as _____.

A) exporting
B) licensing
C) franchising
D) joint ventures
E) direct investment

Question 80

Strategic business unit groups are businesses or product lines within an organization that have their own competitors,customers,and profit centers.