Question 1

When creating a corporate vision statement, organizations are attempting to answer which of the following questions?

Accepted Answer

A corporate vision statement is meant to answer the question "What do we want to become?" It sets out the organization's aspirations for the future and provides a sense of direction and purpose for employees and stakeholders. B, C, D, and E are all important questions to consider when developing a corporate strategy, but they are not the primary focus of a vision statement.

Question 2

_____ firms are those that successfully generate, disseminate, and respond to market information.

Accepted Answer

Market-oriented firms focus on gathering and utilizing market information to meet customer needs and wants, as well as to anticipate and respond to changes in the market. These firms prioritize market research, analysis and customer feedback to create strategies that align with customer demands.

Question 3

In today's business environment, firms that truly focus on customers instill a corporate culture that places customers and other stakeholders at the top of the organizational hierarchy. When this occurs, the firm shifts its focus from transactions to _____, and from _____ to collaboration.

Accepted Answer

When a firm focuses on customers, it shifts its focus to building relationships with them rather than just conducting transactions. This also leads to a shift from competition to collaboration as the firm works with customers and other stakeholders to create mutual value. Choice A is incorrect as market share is not a focus of a customer-centered culture. Choice B is incorrect as the shift is from rivalry to collaboration, not just information. Choice D is correct, but does not fully capture the shift towards building relationships with customers. Choice E is unrelated to the topic of building a customer-centered culture.

Question 4

Which of the following IS NOT a purpose of a marketing plan?

Accepted Answer

A marketing plan primarily focuses on strategies related to marketing activities rather than detailing how these activities integrate with other functional areas of an organization. While it may touch on integration, this is not its primary purpose.

Question 5

In a marketing plan, the executive summary should be a complete but concise overview of the entire marketing plan because:

Accepted Answer

The executive summary should be a complete but concise overview of the entire marketing plan because most readers of a marketing plan are busy and value condensed information. The executive summary serves as a quick overview for busy executives or investors who don't have the time to read the entire document. Therefore, it should provide a summary of the key points of the marketing plan in a clear and concise manner.

Question 6

Many firms have shifted to balanced strategic planning because traditional planning and measurement approaches are not able to capture:

Accepted Answer

Balanced strategic planning includes a focus on measuring and leveraging an organization's intangible assets, such as brand equity, employee skills and knowledge, and relationships with customers and suppliers. Traditional planning and measurement approaches often focus solely on financial metrics and tangible assets, which may not fully capture the value created by these intangibles. Options A, B, D, and E may also be important considerations in strategic planning, but they are not the primary reason for shifting to a balanced approach.

Question 7

When a firm possesses capabilities that allow it to serve customers' needs better than the competition, the firm is said to have a:

Accepted Answer

When a firm has capabilities that allow it to serve customers' needs better than the competition, it has a competitive advantage. This means that the firm is able to attract more customers than its competitors and generate superior profits over time. Resource advantage, value-based advantage, marketing advantage, and relative advantage are related concepts, but they do not capture the full scope and power of a true competitive advantage.

Question 8

In the context of marketing planning, why is it vital that the marketing plan be capable of selling itself to top management?

Accepted Answer

Top managers are responsible for allocating the organization's resources, including the budget for the marketing plan. Therefore, they must be convinced that the marketing plan is the best use of those resources in order for it to be approved and executed. If the marketing plan is not capable of selling itself to top management, it is unlikely to receive the necessary support and funding.

Question 9

The Balanced Performance Scorecard cautions business leaders to look at strategy and performance through four interrelated perspectives. Which of the following IS NOT one of these perspectives?

Accepted Answer

The four interrelated perspectives in the Balanced Performance Scorecard are Financial, Customer, Learning and Growth, and Internal Process perspectives. There is no "Vision and Strategy Perspective" in the scorecard.

Question 10

Focusing on customers has not always been the hallmark of strategic planning. In fact, in the early 20ᵗʰ century, firms tended to focus strictly on _____ rather than on developing relationships with customers.

Accepted Answer

The answer of Focusing on customers has not always been...

Question 11

All organizations need a _____, the central scheme for utilizing and integrating resources in the areas of production, finance, research and development, human resources, and marketing to carry out the organization's mission and achieve desired goals and objectives.

Accepted Answer

Corporate strategy is the plan of action that outlines how an organization will utilize its resources in different functional areas to achieve its goals and objectives. It provides a framework for decision-making and helps to ensure that all parts of the organization are aligned towards the same mission. Marketing strategy, cross-functional strategy, and cross-functional goals are all specific aspects or components of the broader corporate strategy. The corporate mission is the organization's ultimate purpose or reason for existence, which is also a key consideration in the development of the corporate strategy.

Question 12

Sears at one time lost sight of its mission and jumped into markets that did not fit its strengths. This occurred because Sears lacked a mission statement with the appropriate:

Accepted Answer

The answer of Sears at one time lost sight of...

Question 13

In developing a marketing plan, the section on goals and objectives defines the parameters by which the firm will measure actual performance. In this respect, the goals and objectives section is tied closely to the _____ section of the marketing plan.

Accepted Answer

The evaluation and control section of the marketing plan outlines the specific performance metrics that will be used to evaluate the success of the marketing plan. The goals and objectives section defines what the firm hopes to achieve through its marketing efforts, so the two sections are closely linked. The SWOT analysis and situation analysis provide background information for the development of the goals and objectives, while the executive summary and marketing implementation sections focus on high-level summaries and specific actions, respectively.

Question 14

Whether at the corporate, business-unit, or functional level, the planning process always begins with an in-depth:

Accepted Answer

The planning process always begins with a situation analysis, which involves studying the current internal and external factors that affect the organization's performance. This includes analyzing the organization's strengths, weaknesses, opportunities, and threats (SWOT analysis), examining the competition, and evaluating market trends and customer behavior. Only after this analysis can the organization set relevant and realistic goals and objectives, devise an effective strategy for growth, and allocate resources accordingly.

Question 15

With respect to developing a marketing plan, what does it mean for a marketing plan outline to be consistent?

Accepted Answer

The answer of With respect to developing a marketing plan,...

Question 16

Which of the following statements best describes the nature of a marketing plan?

Accepted Answer

A marketing plan is a comprehensive document that outlines an organization's marketing activities and strategy. It includes information on target markets, pricing strategies, distribution channels, promotions, and competitor analysis. While the mission and vision of the organization may be included, raising capital or focusing solely on internal resources is not the main focus of a marketing plan.

Question 17

Which of the following is one of the five basic questions that a good mission statement should answer?

Accepted Answer

One of the basic questions that a good mission statement should answer is "What is our operating philosophy?" This refers to the fundamental principles and values that guide the company's decisions and actions, and helps to define its identity and purpose. Option A refers to competitor analysis, which is important but not a fundamental question of a mission statement. Option B refers to market position, which is also important but may not be applicable to all companies, especially those with broader or more complex missions. Option D refers to opportunities, which are important but more tactical than strategic in nature. Option E refers to historical context, which may be relevant but is not necessary for a mission statement.

Question 18

While all marketing plans face a number of obstacles in development and implementation, _____ is by far the most commonly occurring obstacle across most firms.

Accepted Answer

The answer of While all marketing plans face a number...

Question 19

Motorola continuously establishes performance standards and assesses actual performance by comparing it with these standards. Afterwards, Motorola often takes corrective action to reduce any discrepancies. This process is most likely outlined in the _____ section of Motorola's marketing plan.

Accepted Answer

The process of establishing performance standards and assessing actual performance, and then taking corrective action to reduce discrepancies, is part of the evaluation and control section of the marketing plan.

Question 20

It is a well-known fact that most American firms focus on short-term results and tend to ignore long-range strategy. Why is this mindset not a good approach when dealing with marketing strategy?

Accepted Answer

Marketing activities have long-term effects, as they play a crucial role in building brand image and customer loyalty. Focusing only on short-term results can lead to ignoring the larger picture and missing out on opportunities for sustainable growth.

Answer: A is also a valid reason, as foreign competitors may respond quickly to changing market conditions and gain a competitive advantage. However, it is not directly related to the long-term effects of marketing strategy.

Choice C is incorrect, as short-term results of marketing efforts can sometimes be negative or not significant, and may not necessarily reflect the overall effectiveness of the strategy.

Choice D is not necessarily true, as different firms may have different approaches to marketing strategy, and innovation is not always linked to a long-term focus.

Therefore, the best choice for this question is B.

Quiz 2: Strategic Marketing Planning