Question 1

Hernandez Brothers manufactures trailers that are used by lawn service companies.The company was started in Texas by their father with 1 production site and 4 sales and service locations.Since the sons took over,they have expanded in the last 12 years to include 26 sales and service centers throughout the southeast.Mostly likely,the company is using a generic strategy based on ________.

Accepted Answer

The company's expansion into 26 sales and service centers throughout the southeast indicates that they are using a growth/concentration strategy. Since the expansion is based on increasing the company's presence in a specific market, rather than diversifying or retrenching, the strategy is most likely based on horizontal integration.

Question 2

According to the 2010 U.S.Census,Asian Americans are the highest-income,fastest-growing racial group in America.Most likely an examination of this issue would be in the ________ section of the marketing plan.

Accepted Answer

It would be in the sociocultural/demographic section of the marketing plan. Trends among consumers and in society as a whole impact marketing planning greatly. Many such trends are demographic in nature, including changing generational preferences and the rising buying power of minority groups domestically and consumers in developing nations in the global marketplace. JetBlue jumped on the video game trend among children and teens by providing in-seat games, much to the delight of parents who no longer have to entertain the kids for the duration of the flight.

Question 3

Mega-Big Corp.,has a small strategic business unit (SBU)that produces a component vital to the manufacture of automobiles and has been extremely profitable for 18 years.Most likely,the SBU is classified as a _________.

Accepted Answer

Cash Cows (high share, low growth): key sources of internal cash generation for the firm.

Question 4

In the section of a marketing plan devoted to firm resources,one expects to find an examination of a firm's functional/operational level of resources and capabilities and how they impact the firm's ability to develop and execute market-driven strategies.These capabilities would include all but ________.

Accepted Answer

The firm resources section of a marketing plan should include analysis of these key resources for study: information systems capabilities, marketing capabilities, financial capabilities, and human capabilities.

Question 5

The business position dimension of the GE Business Screen includes all but ________.

Accepted Answer

The business position dimension of the GE Business Screen includes organization, growth, patents, marketing, and other factors that are internal to the business. Governmental regulations are external factors and are therefore not included in this dimension.

Question 6

The price of a barrel of oil has varied dramatically in the last few years.When the price of oil is high,automobile drivers look to find ways to drive less.An examination of this issue would be in the ________ section of the marketing plan.

Accepted Answer

It would be in the bargaining power of buyers section of the marketing plan. To what degree can customers affect prices or product offerings? So far, JetBlue has not been in much head-to-head competition with Southwest/AirTran, Spirit, Allegiant, Frontier, or other low-fare carriers in its primary markets. Should this change, passengers will have more power to demand even lower fares and/or additional services from JetBlue.

Question 7

The firm's ________ articulates an organization's purpose,or reason for existence.It should define the unique purpose that sets it apart from competitors and identifies the scope of the company's operations,products,and markets.

Accepted Answer

A mission statement articulates an organization's purpose, or reason for existence. A well-conceived mission statement defines the fundamental, unique purpose that sets a company apart from other firms of its type and identifies the scope of a company's operations, products, and markets.

Question 8

Today many retailers create apps that customers can download to their smartphones or tablets to keep up-to-date on the company's offerings.Most likely a description of this would be in the ________ part of a marketing plan.

Accepted Answer

It would be in the technological part of a marketing plan. Constantly emerging and evolving technologies impact business in many ways. The goal is to try to understand the future impact of technological change so a firm's products will continue to be fresh and viable. JetBlue ordered a number of new downsized "regional jets," planes that carry about 50 passengers and allow for entry into smaller, underserved markets. The airline is banking on these attractive, comfortable new aircraft to provide a market edge over the competition.

Question 9

A SWOT analysis should not ________.

Accepted Answer

A SWOT analysis is meant to identify the strengths, weaknesses, opportunities, and threats of a business or project. It is a tool to identify and understand the current situation. While solutions to problems may be suggested based on the findings of the analysis, it is not the primary purpose of a SWOT analysis.

Question 10

The Busted Puppy,a microbrewery,is creating a marketing plan.Managers are concerned with current distribution.An examination of this issue would be in the ________ section of the marketing plan.

Accepted Answer

The issue would be discussed in the firm resources. Internal analysis involves taking an honest look at all aspects of a firm's functional/operational-level resources and capabilities and how they play into the ability to develop and execute market-driven strategies. Key resources for study are marketing capabilities, financial capabilities, R&D and technological capabilities, operations and production capabilities, human capabilities, and information system capabilities.

Question 11

Which of the following is not considered a goal?

Accepted Answer

Goals, general statements of what the firm wishes to accomplish in support of the mission and vision, eventually become refined into specific, measurable, and (hopefully) attainable objectives for the firm.

Question 12

One competitive force not addressed directly by Michael Porter is ________.

Accepted Answer

One other competitive force not directly addressed by Porter is the relative power of other stakeholders. This force is becoming more and more relevant in assessing industry competitiveness.

Question 13

The best place in a SWOT analysis to list the competitive trends is ________.

Accepted Answer

The answer of The best place in a SWOT analysis...

Question 14

Automobile manufacturers must comply with regulations set by the National Transportation and Safety Board.A discussion of this would be included in the ________ part of a marketing plan.

Accepted Answer

The discussion would be included in the political, legal, and ethical part of a marketing plan. All firms operate within certain rules, laws, and norms of operating behavior. For example, JetBlue has myriad regulations administered by the Federal Aviation Administration, the National Transportation Safety Board, and the Transportation Security Administration. In the airline industry, the regulatory environment is a particularly strong external influence on firms' marketing planning.

Question 15

Growth,stability,and retrenchment refer to a firm's position relating to its ________.

Accepted Answer

A firm's generic strategy is its overall directional strategy at the business level. Fundamentally, all firms must decide whether they wish to (or are able to) grow, and if not, how they can survive through stability or retrenchment.

Question 16

Which of the following is not considered an objective?

Accepted Answer

Objectives at the corporate and SBU level provide the benchmarks by which organizational performance is assessed.

Question 17

Mega-Big Corp.,is interested in buying MD Softworks,a medical software firm.Softworks is highly regarded by medical practices for ease of use.Two software engineers started the company,but they have made risky financial and poor management decisions.Mega Corp.,believes that with proper management the software firm will become an industry leader.Mostly likely the software firm would be classified as a ________.

Accepted Answer

Problem Children, or Question Marks (low share, high growth): high cash needs that, if properly nurtured, can convert into stars.

Question 18

The Green Scene Co.,a struggling start-up firm that needs a huge cash injection,has an environmentally friendly pesticide that is approved for use by commercial organic farmers.The pesticide is made from all natural ingredients and has great potential.A small investment firm has injected cash in Green Scene.Mostly likely the investment firm views Green Scene as a _________.

Accepted Answer

Problem Children, or Question Marks (low share, high growth): high cash needs that, if properly nurtured, can convert into stars.

Question 19

Go Fish Sushi restaurants are primarily located in malls.The restaurants had rapid growth in their first seven years.Now the owner has decided that adding more restaurants would make it impossible to monitor operations.Most likely the owner is pursuing a generic strategy of ________.

Accepted Answer

The owner's decision to not add more restaurants indicates a desire to maintain the current level of operations and avoid further growth, which aligns with a stability strategy.

Question 20

Really Big Homebuilders used to purchase many building lots and erect spec homes (i.e.,it gambled that the demand for new houses would be so high that they would sell easily).Since the real estate slowdown,it builds homes only when owners are under contract.Most likely the company is pursuing a generic business strategy of ________.

Accepted Answer

Exhibit 2.5-Retrenchment. An organization in a weak competitive position in some or all of its product lines, resulting in poor performance and pressure on management to quickly improve, may pursue retrenchment. Essentially, retrenchment involves pulling assets out of underperforming parts of the business and reinvesting in aspects of the business with greater future performance potential.

Quiz 2: Elements of Marketing Strategy,Planning,and Competition

According to the 2010 U.S.Census,Asian Americans are the highest-income,fastest-growing racial group in America.Most likely an examination of this issue would be in the ________ section of the marketing plan.

Mega-Big Corp.,has a small strategic business unit (SBU) that produces a component vital to the manufacture of automobiles and has been extremely profitable for 18 years.Most likely,the SBU is classified as a _________.

The business position dimension of the GE Business Screen includes all but ________.

The price of a barrel of oil has varied dramatically in the last few years.When the price of oil is high,automobile drivers look to find ways to drive less.An examination of this issue would be in the ________ section of the marketing plan.

The firm's ________ articulates an organization's purpose,or reason for existence.It should define the unique purpose that sets it apart from competitors and identifies the scope of the company's operations,products,and markets.

Today many retailers create apps that customers can download to their smartphones or tablets to keep up-to-date on the company's offerings.Most likely a description of this would be in the ________ part of a marketing plan.

A SWOT analysis should not ________.

The Busted Puppy,a microbrewery,is creating a marketing plan.Managers are concerned with current distribution.An examination of this issue would be in the ________ section of the marketing plan.

Which of the following is not considered a goal?

One competitive force not addressed directly by Michael Porter is ________.

The best place in a SWOT analysis to list the competitive trends is ________.

Automobile manufacturers must comply with regulations set by the National Transportation and Safety Board.A discussion of this would be included in the ________ part of a marketing plan.

Growth,stability,and retrenchment refer to a firm's position relating to its ________.

Which of the following is not considered an objective?

Go Fish Sushi restaurants are primarily located in malls.The restaurants had rapid growth in their first seven years.Now the owner has decided that adding more restaurants would make it impossible to monitor operations.Most likely the owner is pursuing a generic strategy of ________.