Question 1

Consumers can now obtain detailed pricing information on the Internet, which has increased their bargaining power with car dealers.

Accepted Answer

The statement is true. The availability of pricing information on the Internet gives consumers more knowledge and bargaining power when dealing with car dealers.

Question 2

A first mover strategy is generally more risky than a second mover strategy, but the rewards are often greater.

Accepted Answer

This is because being the first mover in a market requires taking on the initial costs and uncertainties of developing a new product or entering a new market. However, if successful, the first mover can establish themselves as the market leader and gain a competitive advantage, leading to greater profits and market share. On the other hand, a second mover strategy allows the company to learn from the mistakes of the first mover and enter the market with a more refined product or strategy, but they may not achieve the same level of success as the first mover.

Question 3

SWOT analysis refers to examination of a firm's stability, work ethic, organizational structure, and technological expertise.

Accepted Answer

SWOT analysis refers to examination of a firm's strengths, weaknesses, opportunities, and threats.

Question 4

The Internet has impacted business by increasing the barriers to market entry faced by new firms.

Accepted Answer

The internet has actually decreased barriers to market entry for new firms by providing more affordable and accessible channels for marketing, sales, and communication with customers. It has also enabled smaller firms to reach a global audience and compete with larger corporations.

Question 5

Matching an external opportunity with an internal weakness produces a situation known as leverage.

Accepted Answer

Matching an external opportunity with an internal weakness actually creates a situation that requires strategic planning to overcome the weakness and exploit the opportunity, not leverage. Leverage typically involves using a strength to take advantage of an opportunity.

Question 6

During the final steps of the marketing planning process, marketers use operating plans to put the marketing strategy into action, then wait until the annual planning process begins again the following year.

Accepted Answer

Operating plans are reviewed regularly, adjusted as needed, and refined throughout the year, rather than only during the annual planning process.

Question 7

In SWOT analysis, managers face a problem when environmental threats attack their organization's weaknesses.

Accepted Answer

In SWOT analysis, threats pose a risk to the weaknesses of an organization, potentially exacerbating existing problems or creating new ones. Managers must effectively address these threats in order to mitigate any negative impacts they may have.

Question 8

Core competencies are actions done well by a firm that its customers value and competitors find difficult to duplicate.

Accepted Answer

Core competencies are unique capabilities or strengths possessed by a firm that allow it to perform well in a specific area and deliver value to its customers. These competencies are often difficult for competitors to replicate, giving the firm a sustainable competitive advantage.

Question 9

The third step of the planning process involves a back-and-forth assessment of the strengths, risks, and available opportunities facing the organization at the marketing department level.

Accepted Answer

The third step of the planning process typically involves developing a strategy or plan of action after goals and objectives have been defined and an analysis of the situation (including strengths, weaknesses, opportunities, and threats) has been conducted, rather than a back-and-forth assessment specifically at the marketing department level.

Question 10

Detailed organizational objectives should state specific intentions, such as "Snapple Corporation seeks to increase its share of the non-carbonated soft drink market to 25 percent within the next two years."

Accepted Answer

Detailed organizational objectives should be specific and measurable, like increasing market share to a certain percentage within a specific time frame.

Question 11

A drapery manufacturer has experienced difficulty attracting customers to its showroom.Competitors are advertising online with discounts and free installation, and the company's sole supplier of silks and tapestries has increased prices.Additionally, competitive draperies made overseas with cheaper silks are entering the marketplace.The drapery manufacturer is faced with a planning challenge addressed in Porter's Five Forces.

Accepted Answer

The drapery manufacturer is facing competitive pressures due to increased competition, price increases from suppliers, and changing consumer preferences, which are all factors addressed in Porter's Five Forces model.

Question 12

An important strategic planning tool, SWOT analysis helps planners compare internal organizational strengths and weaknesses with external opportunities and threats.

Accepted Answer

SWOT analysis is indeed an important strategic planning tool that helps to compare organizational strengths and weaknesses with external opportunities and threats.

Question 13

Planning strategy is influenced by the elements of Porter's Five Forces model.

Accepted Answer

Porter's Five Forces model provides insight into the competitive environment surrounding a company, including factors such as industry rivalry, supplier power, buyer power, threat of substitutes, and threat of new entrants. Understanding these factors can help inform a company's planning strategy, such as whether to enter a market or focus on differentiation.

Question 14

Statements such as "achieve a 25 percent market share by 2008" or "open 50 and 75 new stores for each of the next five years" are typically part of mission statements.

Accepted Answer

Statements such as "achieve a 25 percent market share by 2008" or "open 50 and 75 new stores for each of the next five years" are typically part of strategic plans or objectives, not necessarily mission statements. Mission statements tend to focus on the organization's purpose, core values, and overarching goals.

Question 15

A target market is a group of customers toward whom a firm directs its marketing efforts.

Accepted Answer

This statement describes the definition of a target market.

Question 16

Apple's introduction of a "new to the market" online music store, iTunes, is an example of a successful first mover strategy.

Accepted Answer

Apple was the first company to create an online music store and it became a huge success, giving them a significant advantage over competitors who entered the market later. This is a classic example of a successful first mover strategy.

Question 17

A strategic window represents an extended period of time during which the key requirements of a market and the particular competencies of a firm best fit together.

Accepted Answer

The answer of A strategic window represents an extended period...

Question 18

Well-phrased business objectives should specify time horizons for specific achievements, such as "It is anticipated we will achieve our $77 million sales objective by March 31, 2010."

Accepted Answer

Well-phrased business objectives should include specific time horizons for achieving goals. Therefore, the statement provided in the question is an example of a well-phrased business objective.

Question 19

The elements in Porter's Five Forces model include the possibility of new rivals, possible product substitutions, bargaining powers of buyer and of suppliers, and rivalry between competitors.

Accepted Answer

This is correct. The elements in Porter's Five Forces model include the possibility of new rivals, possible product substitutions, bargaining powers of buyer and of suppliers, and rivalry between competitors.

Question 20

A customer-driven organization begins its marketing strategy with a detailed description of its target market.

Accepted Answer

A customer-driven organization focuses on the needs and wants of its target market in order to create products and services that meet their demands. Therefore, it is essential to have a detailed understanding of the target market before implementing a marketing strategy.

Quiz 2: Strategic Planning in Contemporary Marketing