Question 1

Which of the following includes an assessment of the competitive, economic, political, legal, regulatory, technological, and sociocultural factors that could affect marketing activities?

Accepted Answer

An environmental analysis includes an assessment of the competitive, economic, political, legal, regulatory, technological, and sociocultural factors that could affect marketing activities. The other options do not address these factors in the same comprehensive way.

Question 2

Old Spice used actor and former NFL wide receiver Isaiah Mustafa to act as its spokesman as the "Old Spice Man." It filmed humorous videos of the actor that went viral online. Old Spice saw sales of its deodorants increase substantially from the previous year. What type of competitive growth strategy did Old Spice use?

Accepted Answer

Old Spice used a market penetration strategy by increasing sales of its existing product (deodorants) through the use of a humorous viral marketing campaign featuring the "Old Spice Man."

Question 3

To be effective, employee rewards should also be tied to

Accepted Answer

Employee rewards should be tied to organizational goals to ensure that employees are working towards achieving the same objectives as the organization. This creates a sense of purpose and motivation for employees to work towards common goals. Rewards that are not tied to organizational goals may not incentivize employees to work towards the organization's objectives, which can lead to a lack of alignment and reduced performance.

Question 4

Which of the following is a strategy of increasing sales of current products in new markets?

Accepted Answer

Market development is a strategy that involves selling current products in new markets. This approach can include targeting a new geographical area, a new demographic, or a new use for the product.

Question 5

Marketing planning and ______ are closely linked in successful companies.

Accepted Answer

Marketing planning is not enough unless it is implemented properly. Therefore, successful companies always link their marketing planning with implementation strategies to ensure that they can achieve their goals.

Question 6

Sales analysis is a common method of evaluation because

Accepted Answer

Sales data are readily available and can reflect the target market's reactions to a target mix. This makes sales analysis a common method of evaluation as it provides insights into the target market's purchasing behavior and helps in formulating effective strategies for increasing sales.

Question 7

Acme Corporation saw an opportunity in the electric car industry. The company had studied major electric car brands such as the Chevrolet Volt and the Nissan Leaf. It believed it could avoid many of the challenges these companies had encountered with a new technology that would reduce costs. Acme also knew from watching competitors that it would have to work hard to convince skeptics that the electric car was a viable and dependable method to get around. By avoiding these mistakes and using its technology, Acme quickly gained market share once it began launching its vehicles. What type of advantage did Acme have?

Accepted Answer

Acme had a late-mover advantage by studying the challenges faced by major electric car brands and developing new technology to reduce costs. It was able to avoid mistakes made by competitors and quickly gained market share once it began launching its vehicles.

Question 8

Tesla executives have set an objective for the firm's new Model 3 to boost Tesla's market share by 10%. What is the main problem with this objective?

Accepted Answer

The objective does not specify a time period, making it difficult to gauge when the 10% increase should be achieved. This lack of specificity makes it hard to set a clear plan of action to achieve the objective.

Question 9

Naomi Holden is breaking down and classifying costs of her small business to determine which are associated with specific marketing efforts and then comparing these costs with results. Naomi is engaging in

Accepted Answer

Naomi is breaking down and classifying costs of her small business to determine which are associated with specific marketing efforts and then comparing these costs with results. This indicates that she is engaging in marketing cost analysis.

Question 10

Analyzingdemographic information, customer needs, preferences, and behaviors with respect to product design, pricing, distribution, and promotion is which of the following parts of strategic planning?

Accepted Answer

Analyzing demographic information, customer needs, preferences, and behaviors falls under the development of marketing objectives and marketing strategies, which is an important part of strategic planning.

Question 11

Competitive growth strategies are based on

Accepted Answer

The answer of Competitive growth strategies are based on
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Question 12

Mitchell Finnigan runs the marketing department of a large electronics firm. This firm operates in an extremely competitive business environment. Mitchell wants to ensure that he is involved in all the daily decisions and that there is a clear chain of communication between himself and his marketing employees. He believes that his extensive marketing experience makes him the best person for making all the major marketing decisions. Mitchell believes all employees should act together as a cohesive unit and know their roles. Under Mitchell Finnigan, the marketing department most likely has a _______________ structure.

Accepted Answer

Mitchell's desire to be involved in all daily decisions and his belief that his extensive marketing experience makes him the best person for making major marketing decisions suggests a centralized structure, where decision-making power is concentrated at the top. Additionally, his emphasis on clear communication and a cohesive unit further supports a centralized structure.

Question 13

The strategic planning process begins with

Accepted Answer

The strategic planning process always begins with the development of an organizational mission statement. The mission statement outlines the purpose and values of the organization, which serves as a foundation for all subsequent planning activities. Other steps such as analyzing target markets and developing marketing strategies come after the mission statement has been established.

Question 14

You work in the marketing department of shoe firm Weasley Inc. Over the past month you have been working with management to revise the company's mission statement and set specific marketing goals for the upcoming year. Today you are meeting with your marketing team and discussing the next step in the strategic planning process. What is this next step?

Accepted Answer

The next step in the strategic planning process after revising the company's mission statement and setting specific marketing goals is to formulate corporate and business-unit strategies. This involves making decisions on how the company will allocate resources and coordinate activities to achieve its goals.

Question 15

The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace is called

Accepted Answer

The term "late-mover advantage" refers to the ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace. By observing the successes and failures of first-movers, late-movers can improve upon the original product, target unaddressed markets, and avoid costly mistakes, ultimately achieving a competitive advantage.

Question 16

______ allows marketing managers to understand the problems and requirements of lower-level employees.

Accepted Answer

Upward communication allows for lower-level employees to communicate their problems and requirements to higher-level managers, including marketing managers. This can provide valuable information to marketing managers in understanding the needs of their employees and making informed decisions.

Question 17

Google introduced Google Home, a smart speaker/home automation device. For Google, Google Home represents a strategy of

Accepted Answer

Google Home represents a strategy of diversification as it is a new product in a new market for Google, expanding the company's presence beyond its core search engine and advertising business.

Question 18

It is time to develop a budget for marketing department activities for the next year. Your team is looking over the following costs.: Office rent
Sales commissions
Promotional budget
Product development costs
Office supplies
The finance department has recently told you that you have $3,000 to spend on office supplies. You cannot go beyond this no matter what changes happen in the marketing department. Your salespeople get a flat 15% sales commission on anything they sell. With this in mind, which of these costs are variable costs?

Accepted Answer

Variable costs are those that change in proportion to the level of activity. Office rent is likely a fixed cost, as the rent amount is most likely based on a long-term lease or contract. The $3,000 for office supplies is also a fixed cost. Sales commissions and product development costs are both variable costs, as they increase or decrease based on sales performance and the amount spent on developing new products. The promotional budget could be either a fixed or variable cost depending on how it is structured, but since it is the only option in this answer choice, we can assume it is a variable cost.

Question 19

A first-mover advantage is

Accepted Answer

A first-mover advantage is the benefit gained by a company that is the first to offer a new product or service in the market. Being the first to enter the market provides a competitive edge, as it allows the company to establish brand recognition, customer loyalty, and a stronger market position before competitors enter the same market. This advantage can result in higher sales, greater market share, and ultimately, sustained profitability for the company.

Question 20

Which of the following is not a characteristic that should be possessed by a marketing objective?

Accepted Answer

Marketing objectives should have a specific time frame for accomplishment. An open-ended objective lacks specificity and may become difficult to measure and evaluate in the long run.

Quiz 2: Planning, Implementing, and Evaluating Marketing Strategies