Question 1

Marketing control refers to the process of evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained.

Accepted Answer

Marketing control involves the evaluation of marketing strategies and plans and taking corrective action if necessary to ensure that objectives are met, making the statement true.

Question 2

A company that cuts the prices of its products, increases its advertising and promotional support and expands its distribution is most likely to be engaged in market penetration.

Accepted Answer

Market penetration is a growth strategy where a company focuses on increasing its market share in its existing market by using tactics such as cutting prices, increasing advertising and promotional support, and expanding distribution. Therefore, the statement is true.

Question 3

Which of the following do NOT make up the typical elements of the marketing mix?

Accepted Answer

Personnel is not typically considered one of the elements of the marketing mix. The typical elements are product, price, promotion, and place (also known as distribution).

Question 4

The strategic plan is the set of tactical marketing tools that the firm blends to produce the response it wants in the target market.

Accepted Answer

The strategic plan outlines the company's overall mission, vision, and broad goals, while the tactical marketing tools are part of the marketing mix (product, price, place, promotion) used to achieve specific objectives within the overall strategy.

Question 5

The process of checking ongoing performance against the annual plans and taking corrective action as required to ensure that the company achieves its sales and profit goals is known as:

Accepted Answer

The process described in the question is known as operating control. This involves monitoring performance on an ongoing basis, comparing it to the company's annual plans, and taking corrective action as necessary to ensure the company achieves its goals. Strategic control, on the other hand, involves monitoring the external environment and making adjustments to the company's overall strategy as needed. Operational gap analysis, strategic gap analysis, and operational "best fit" analysis are not commonly used terms in this context.

Question 6

Common criticisms of the SWOT analysis include that it: is overly descriptive and lacks analytical rigour.

Accepted Answer

SWOT analysis is often criticized for being too descriptive and lacking in-depth analysis. It is seen as a starting point for strategic planning rather than a complete analysis on its own.

Question 7

The process of identifying possible customer value differences that provide competitive advantages on which the company can build its product positioning strategy is known as:

Accepted Answer

The process described in the question is known as differentiation. This involves identifying factors that set the company's product apart from competitors in a way that is valuable to customers. This differentiation can then be used as the basis for the product positioning strategy. Product mapping involves assessing the strengths and weaknesses of the company's current product portfolio. Market segmentation involves dividing the market into distinct groups of customers with similar needs and characteristics. Market targeting involves selecting one or more of these segments to focus on with marketing efforts. Therefore, options A, B, and C are incorrect.

Question 8

A company that seeks to make more sales to existing customers without changing its products in any way is engaging in market penetration.

Accepted Answer

Market penetration is a strategy where a company focuses on increasing sales of its existing products to its current customers without changing the product itself, often through marketing or sales promotion efforts.

Question 9

Positioning is about gaining optimal shelf space in a retail store.

Accepted Answer

Positioning is about creating a unique image and identity for a brand or product in the minds of customers. While shelf space in a retail store can be a factor in positioning, it is not the sole focus.

Question 10

Which of the following does NOT accurately reflect a problem with matrix approaches such as the BCG matrix approach?

Accepted Answer

The BCG matrix approach focuses on current market share and growth of strategic business units (SBUs) and does not necessarily address how value can be created across SBUs. The other options (A, B, C, and D) accurately reflect potential problems with matrix approaches such as the BCG matrix approach.

Question 11

The balanced scorecard system is based on the idea that an organisation needs a mix of products that generate cash and use cash.

Accepted Answer

The balanced scorecard system is a strategic planning and management system that organizations use to communicate what they are trying to accomplish, align the day-to-day work that everyone is doing with strategy, prioritize projects, products, and services, and measure and monitor progress towards strategic targets. It is not specifically about having a mix of products that generate and use cash; that concept is more closely related to the product portfolio management or the BCG matrix.

Question 12

One of the most widely known methods for portfolio planning is known as the Boston Consulting Group (BCF) matrix, which classifies products or SBUs according to their growth rates and market share.

Accepted Answer

This statement is true. The BCF matrix is a popular method of portfolio planning that uses growth rates and market share to classify products or SBUs.

Question 13

A firm's mission statement should be meaningful, specific and be motivating.

Accepted Answer

A firm's mission statement should be meaningful, specific, and motivating so that it provides direction and inspiration for the organization and its stakeholders.

Question 14

Mission statements should be market- oriented and defined in terms of satisfying customer needs.

Accepted Answer

A mission statement should focus on the customer and their needs, rather than the company's own goals or interests. This ensures that the company is producing products or services that are relevant and valuable to the market.

Question 15

Five key customer measures include: market share; customer acquisition, customer retention, customer satisfaction and customer profitability.

Accepted Answer

These are indeed common key customer measures used in business.

Question 16

Opportunities are favourable factors or trends in the external environment that the company may be able to exploit to its advantage.

Accepted Answer

Opportunities are indeed favourable factors or trends in the external environment that a company can leverage to gain a competitive advantage.

Question 17

After a company has decided which market segments to enter, the next step is to decide how it will differentiate its market offerings for each targeted segment and what positions it wants to occupy in those segments.

Accepted Answer

This statement is true. Once a company has identified the market segments it wants to target, it needs to develop differentiated offerings for each segment and decide on the position it wants to occupy in that segment. This is a crucial step in developing a successful marketing strategy.

Question 18

In SWOT analysis, strengths and weaknesses refer to a firm's internal environment, while opportunities and threats refer to the external environment.

Accepted Answer

This statement is true. SWOT analysis evaluates a company's internal strengths and weaknesses as well as external opportunities and threats. Strengths and weaknesses are internal factors that a company has control over, while opportunities and threats are external factors that a company may not have control over.

Question 19

Whereas marketing planning addresses the what and why of marketing activities, implementation addresses the who, where, when and how.

Accepted Answer

Marketing planning is about identifying the goals and objectives, target market, positioning, and strategies for achieving those goals. Implementation focuses on the practical aspects of executing the marketing plan, including the people involved, the locations and timing of marketing activities, and the specific tactics and techniques used to reach the target audience.

Question 20

The growth strategy of diversification involves offering modified or new products to current markets.

Accepted Answer

Diversification involves entering into new markets with new or modified products, which is different from offering modified or new products to current markets, a strategy known as product development.

Quiz 3: Strategic Planning and Marketing