Question 1

An important part of the strategic planning process is the implementation of plans.

Accepted Answer

Implementation is a critical phase in strategic planning as it involves executing the strategies and plans to achieve the organization's goals.

Question 2

It is easier to change a firm's short-term marketing mix than in its long-term marketing mix.

Accepted Answer

The answer of It is easier to change a firm's...

Question 3

Continuous improvement and top management commitment are key elements of a total quality approach to strategic planning.

Accepted Answer

Continuous improvement focuses on incremental changes to enhance quality and efficiency, while top management commitment ensures that quality objectives are aligned with strategic goals, providing the necessary leadership and resources for a total quality approach.

Question 4

A bottom-up strategic plan is preferred over a top-down plan when employee input is crucial.

Accepted Answer

A bottom-up strategic plan involves gathering input and feedback from all levels of the organization, making it more effective when employee insights and engagement are critical for the plan's success.

Question 5

In comparison to a top-down approach to planning, a bottom-up approach is more likely to be accepted by marketing personnel due to their involvement in the planning process.

Accepted Answer

A bottom-up approach involves the participation of marketing personnel and other employees in the planning process, which typically leads to higher acceptance and commitment to the plan, as it considers their insights and suggestions.

Question 6

In strategic planning, input is received from customers and communicated directly to top management by a firm's market researchers. This involves top-down planning.

Accepted Answer

In strategic planning, input from customers is an example of bottom-up planning, where information flows from the lower levels of the organization (such as market researchers) to the top management for decision-making.

Question 7

New products are typically judged on a combination of criteria by legal personnel (patent protection), finance personnel (internal rate of return), and production personnel (per-unit production costs).

Accepted Answer

New products are often evaluated by different departments within a company, each focusing on specific criteria relevant to their expertise, such as legal, financial, and production considerations.

Question 8

A proper organizational mission for a computer manufacturer would specify its target market (large firms, small businesses, and schools), the functions its products would perform (desktop and portable computing), and the technological advances to be included (color and monochrome desktops, and monochrome notebooks with microprocessors of all speeds).

Accepted Answer

The given statement provides a clear and specific definition of a proper organizational mission for a computer manufacturer, including its target market, product functions, and technological advances.

Question 9

When a local real-estate brokerage firm says that it "limits its activities to the sale and rental of cooperatives and condominiums in a five-town area," it is outlining its basic marketing strategy.

Accepted Answer

The answer of When a local real-estate brokerage firm says...

Question 10

The strategic business unit (SBU) concept was developed as a means of measuring unit profitability.

Accepted Answer

The SBU concept was developed to help organizations manage different business units with distinct strategies and objectives, not specifically for measuring profitability.

Question 11

Goodyear has strategic business units (SBUs) for its tires: one for use by final consumers who purchase tires for replacement demand and the other for use by auto manufacturers who place the tires on new cars. Each SBU can have a different marketing strategy even though the products sold are identical.

Accepted Answer

Strategic Business Units (SBUs) can have different marketing strategies tailored to their specific target markets, even if the products are identical, to better meet the needs and preferences of each market segment.

Question 12

A firm generally has more strategic business units (SBUs) than products.

Accepted Answer

A firm typically has more products than strategic business units (SBUs) because each SBU can encompass multiple products or product lines.

Question 13

A conglomerate is likely to have a large number of strategic business units (SBUs).

Accepted Answer

A conglomerate is a large corporation that owns a collection of different companies operating in various industries, each of which can be considered a strategic business unit (SBU).

Question 14

A clear, integrated marketing objective for a pharmaceutical manufacturer is "to increase its overall sales by 10 percent annually through the successful introduction of three major new drugs within the next three years."

Accepted Answer

This statement is a clear, integrated marketing objective as it specifies a measurable goal (10% sales increase), a strategy (introduction of three new drugs), and a timeframe (within the next three years).

Question 15

A garage operator found that consumers feared parking costly cars on the streets, wanted additional services (such as car washing and waxing), and desired a well-lit spot and courteous service. Few garages in the area satisfied consumer needs properly. This study is part of a situation analysis.

Accepted Answer

A situation analysis involves assessing the current market conditions, consumer needs, and the competitive landscape, which is what the garage operator's study is doing.

Question 16

After a situation analysis, a firm could decide to change its organizational mission or discontinue a major product line.

Accepted Answer

A situation analysis helps a firm assess its current position and may lead to strategic decisions such as altering its mission or discontinuing a product line to better align with market conditions or company goals.

Question 17

The extension of brand loyalty from the firm's current products to new products is an important characteristic of product development.

Accepted Answer

Brand loyalty can facilitate the acceptance and success of new products, as loyal customers are more likely to try and trust new offerings from a brand they already support.

Question 18

A diversification strategy is most appropriate when a market is saturated and new product development possibilities are limited by patents held by competitors.

Accepted Answer

A diversification strategy allows a company to enter new markets or product areas, offering a way to grow when existing markets are saturated and innovation is constrained by competitors' patents.

Question 19

Two strategic planning models that both utilize market share and market growth in their models are the Boston Consulting Group matrix and the General Electric business screen.

Accepted Answer

Both the Boston Consulting Group (BCG) matrix and the General Electric/McKinsey matrix (often referred to as the General Electric business screen) use market share and market growth as key factors in their strategic planning models to assess business units or product lines.

Question 20

An ideal Boston Consulting Group matrix has no cash cows and no dogs, but plenty of stars and question marks.

Accepted Answer

An ideal Boston Consulting Group (BCG) matrix should have a balanced portfolio including cash cows (for steady cash flow), stars (high growth, high market share), question marks (high growth, low market share) for potential future stars, and ideally fewer dogs (low growth, low market share), which are often considered for divestiture. Cash cows are important for funding other segments.

Quiz 3: Developing and Enacting Strategic Marketing Plans