Question 1

The most frequently cited shortcomings of current marketing plans, according to marketing executives, are lack of realism, insufficient competitive analysis, and a ________ focus.

Accepted Answer

The question mentions "shortcomings" of current marketing plans, and one of the possible options is "short-run" focus, which fits the context. The other options (profit, long-term, price, and product) may also be important factors, but they are not explicitly mentioned as frequently cited shortcomings in the question.

Question 2

Which of the following terms matches to the phrase "it is a single business or collection of related businesses that can be planned separately from the rest of the company"?

Accepted Answer

The phrase refers to a strategic business unit, which is defined as a single business or collection of related businesses that can be planned separately from the rest of the company. The other options do not precisely match this definition. A diverse business unit might refer to a unit with diverse products or services, while a niche market unit would focus on a specific customer segment. A specialized business unit might refer to a unit with specialized skills or knowledge, while a growth business unit might be focused on expanding the company's market share.

Question 3

When a business gets to know market segments intimately and pursues either cost leadership or differentiation within the target segment it is referred to as a

Accepted Answer

Pursuing cost leadership or differentiation within a specific target market is known as a focused strategy. This involves getting to know the chosen market segment intimately and tailoring the business's products or services to meet their specific needs and preferences. This approach requires a deep understanding of the target market's needs, behaviors, and purchasing patterns, which can help the business create a competitive advantage within that market.

Question 4

The first step in the business unit strategic-planning process deals with which of the following?

Accepted Answer

The first step in the business unit strategic-planning process is to establish or review the business mission, which is the purpose or reason for the organization's existence. This serves as a foundation for all subsequent strategic planning activities. Choices A, B, C, and D all come after the business mission has been established or reviewed.

Question 5

Which of the following most closely matches a correct market definition of a business?

Accepted Answer

A correct market definition of a business focuses on the needs the business seeks to fulfill rather than the product it sells. Encyclopedia Britannica's definition of distributing information captures the essence of what they do in terms of meeting a customer need, rather than merely describing the product.

Question 6

To keep their strategic alliances thriving, corporations have begun to develop organizational structures to support them and have come to view the ability to form and manage partnerships as core skills. This is called

Accepted Answer

The concept described in the question is called partner relationship management, which refers to the organizational processes, structures, and strategies that companies use to initiate, develop, and maintain partnerships with other organizations. This includes skills in negotiation, communication, and collaboration, as well as the use of technology and data analysis to deepen partnerships and drive value. The other answer choices do not accurately describe this concept.

Question 7

A(n) ________ is when a company might seek new businesses that have no relationship to its current technology, products, or markets.

Accepted Answer

A conglomerate strategy is when a company seeks new businesses that have no relationship to its current technology, products, or markets. This strategy is often used when a company wants to diversify its portfolio and reduce its overall risk by entering into a new and unrelated industry. The other choices do not fit this description - concentric strategy involves expanding into related businesses, intensive growth strategy involves increasing market share within existing industries, integrative strategy involves merging with or acquiring suppliers or distributors, and horizontal strategy involves expanding into new geographic markets within the same industry.

Question 8

If you were the marketing manager of an organization that had chosen growth via current products sold to new markets, your organization would have chosen a ________ strategy.

Accepted Answer

Market development is the strategy where the organization focuses on selling its existing products to new markets. This can be done by entering new geographical locations, targeting new customer segments or reaching out to a different distribution channel. Thus, if a marketing manager chooses growth via current products sold to new markets, the organization would have chosen a market development strategy.

Question 9

Market-penetration, product-development, and market-development strategies would all be examples of ________ strategies.

Accepted Answer

Market-penetration, product-development, and market-development strategies are all examples of intensive growth strategies, which involve increasing sales or market share within the company's current products and markets. Intensive growth strategies are focused on expanding the company's existing operations and are typically less risky than other growth strategies, such as integrative or conglomerate growth.

Question 10

Which of the following terms most closely matches to "the shared experiences, stories, beliefs, and norms that characterize an organization"?

Accepted Answer

Corporate culture refers to the values, beliefs, practices, and norms that characterize an organization and guide its behavior. It includes shared experiences and stories that shape the organization's identity and influence how employees and customers perceive and interact with the organization.

Question 11

If a firm pursues a(n) ________ strategy, it must be good at engineering, purchasing, manufacturing, and physical distribution.

Accepted Answer

Pursuing an overall cost leadership strategy requires a company to have strong capabilities in engineering, purchasing, manufacturing, and physical distribution in order to keep costs low and maintain a competitive advantage based on price. Domestic customer relationship, market share, focus, and differentiation strategies do not necessarily require the same level of competency in these areas.

Question 12

Tim Hortons has become a major Canadian cultural icon and business success due to a well-planned and carefully executed marketing strategy. In its annual planning process, once Tim Hortons establishes its business mission, conducts a SWOT analysis, and goes through a goal formulation process, it is ready to go through a step called ________ to continue with a strategic-planning process.

Accepted Answer

Once Tim Hortons has established its goals, it needs to go through a strategy formulation step in its strategic-planning process. This step involves developing and evaluating strategic alternatives to achieve the company's goals. Implementation and feedback and control are later steps in the process, while functional analysis and program formulation are more specific processes within the strategic-planning process.

Question 13

When Mairu Ahmed arrived on his first day of work for his new employer, a small high-tech start-up, he was surprised at how casually his new co-workers were dressed, how informally they talked to one another, and the relaxed way in which they greeted their customers. Mairu was experiencing his new company's

Accepted Answer

Mairu's observations suggest that he is experiencing his new company's corporate culture, which includes its values, attitudes, behaviors, and practices. The casual dress, informal communication, and relaxed customer interactions all reflect the company's overall approach to work and its beliefs about how business should be conducted. This culture is likely to have a significant impact on how Mairu works and interacts with his colleagues and customers, and it will shape his experience at the company.

Question 14

If you were the CEO of a company that was looking to implement strategies to fill a perceived gap between future desired sales and projected sales, you would most likely explore ________ growth first because it would be easier to improve an existing business rather than building a new one.

Accepted Answer

Intensive growth involves improving or expanding upon existing products or markets, which would be easier and less risky than pursuing diversification or conglomerate growth. Integrative and concentric growth strategies also involve building upon existing business, but may not be as suitable for closing a perceived gap in sales.

Question 15

Fred Smith wanted to deliver mail anywhere in the United States before 10:30 a.m. the next day, so he created FedEx. Which of the following planning aids most likely assisted Mr. Smith with his vision?

Accepted Answer

The answer of Fred Smith wanted to deliver mail anywhere...

Question 16

A ________ is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives.

Accepted Answer

A marketing plan is a written document that outlines a company's overall marketing strategy, including its target audience, marketing mix, and tactics for reaching its goals. It summarizes what the company has learned about the marketplace, its competitors, and its customers, and outlines the actions it will take to successfully market its products or services.

Question 17

The Aeroplan rewards program promotes the products and services of its partners, including Fairmont hotels, Avis car rental, etc. The best description of this form of alliance would a ________ alliance.

Accepted Answer

The Aeroplan rewards program promotes the products and services of its partners, which is a form of promotional alliance.

Question 18

According to McKinsey & Company, strategy is only one of seven elements in successful business practice. The first three elements are considered the "hardware" of success, and include

Accepted Answer

According to the given information, the first three elements considered as the "hardware" of success are skills, systems, and staff. Out of these three, only systems are mentioned as an option, so B is the correct choice. Shared values and style are considered part of the "software" of success along with strategy, structure, staff, and skills.

Question 19

Which of the following permits senior management to grasp the marketing plan's major thrust?

Accepted Answer

The executive summary and table of contents provide a concise overview of the marketing plan and its key elements, allowing senior management to quickly understand the major thrust of the plan. The other options provide important details and components of the plan, but may not be as useful for high-level understanding.

Question 20

Most marketing plans cover

Accepted Answer

Marketing plans generally cover a period of one year, as it allows for flexibility and adaptability in response to changes in the market and business environment. Longer-term plans can become outdated quickly, making them less effective.

Quiz 2: Developing Marketing Strategies and Plans