Question 1

Strategic business units are key business units within small companies that offer only a few items to its customers.

Accepted Answer

Strategic business units (SBUs) are key business units within medium to large companies that operate as separate businesses or profit centers offering a distinctive product line, identifiable market, and a unique strategic plan. SBUs are characterized by their own set of competitors, management structure, resources, and strategies. Small companies may not have enough resources to support SBUs.

Question 2

An organizational objective should specify time frames stating "Our organization aims to generate a 15 percent profit over the next 24 months."

Accepted Answer

Organizational objectives should be specific and measurable and include a time frame, such as the percentage of profit the organization aims to generate in the next 24 months.

Question 3

Targeting consumers in specific global markets represents a challenge.

Accepted Answer

Targeting consumers in specific global markets can be a challenge due to different cultural, economic, and political factors that may influence consumer behavior and preferences. It requires a thorough understanding and adaptation to the local market dynamics to successfully reach and engage with the target audience.

Question 4

The planning process is an intermittent process held after substantial intervals.

Accepted Answer

The planning process is a continuous process that should be reviewed and updated periodically. It is not an intermittent process held after substantial intervals.

Question 5

Relationship-building goals and strategies are seldom included in the plans of business firms.

Accepted Answer

Relationship-building goals and strategies are often included in business plans as they are crucial for customer retention, brand loyalty, and long-term success.

Question 6

The advertising director,marketing research manager,and other middle-level managers have the primary responsibility of devising and implementing the strategic plan of the company.

Accepted Answer

Strategic planning is typically the responsibility of top-level management, such as the CEO and executive team, rather than middle-level managers.

Question 7

The idea of first movers being completely replaced by second movers and the resulting disappearance of first movers from the marketplace is a myth.

Accepted Answer

The answer of The idea of first movers being completely...

Question 8

Fred's Wholesale Club sends emails and catalogs to all members.Additionally,in-store pamphlets promote the benefits of its products.All of these materials are part of the integrated marketing communications intended to send a consistent and unified promotional message.

Accepted Answer

The statement correctly describes integrated marketing communications and how Fred's Wholesale Club is using it.

Question 9

Tactical plans typically determine an organization's primary strategic objectives and exclude short-term actions from their purview.

Accepted Answer

Tactical plans are typically focused on short-term actions that support the achievement of an organization's strategic objectives. They are not intended to determine the primary strategic objectives themselves.

Question 10

The position of an SBU along the horizontal axis indicates the annual growth rate of the market.

Accepted Answer

The position of an SBU (Strategic Business Unit) along the horizontal axis in the BCG matrix indicates the market share of the SBU, not the annual growth rate of the market. The vertical axis represents the annual growth rate of the market.

Question 11

With increased availability of information,rivalry heats up among competitors who try to differentiate themselves from the crowd.

Accepted Answer

With increased availability of information, customers have more options to choose from and can easily compare different products or services. This leads to increased competition among businesses, and they try to differentiate themselves through various strategies such as pricing, quality, branding, and marketing.

Question 12

Each SBU pursues its own distinct mission and often develops its own plans independently.

Accepted Answer

Each SBU (Strategic Business Unit) operates independently and has its own set of goals and objectives that are aligned with the overall corporate strategy. This allows for greater flexibility and adaptability in response to specific market conditions and customer demands. However, it is important for the SBUs to coordinate and collaborate with each other to avoid duplication of efforts and to ensure the achievement of the overall corporate goals.

Question 13

To be most effective,the planning process should include input from a wide range of sources both internal and external to the organization.

Accepted Answer

This is true because involving a wide range of sources in the planning process can help identify new perspectives and ideas, anticipate potential problems and opportunities, and improve overall decision-making. Internal sources may include employees at different levels and departments within the organization, while external sources may include customers, suppliers, industry experts, and other stakeholders.

Question 14

All planning strategies have the goal of creating a sustainable competitive advantage for a firm which other companies cannot imitate.

Accepted Answer

This statement is true. The purpose of planning strategies is to create a unique and sustainable competitive advantage for a company that is difficult for competitors to replicate.

Question 15

Supervisory managers tend to focus exclusively on strategic planning.

Accepted Answer

Supervisory managers may focus on strategic planning, but they also have a responsibility for overseeing operational tasks and managing employees on a day-to-day basis.

Question 16

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 the target market, and therefore starts its marketing strategy with a detailed description of the target market.

Question 17

The planning process creates a blueprint that everyone in the organization must follow in order to achieve the organizational objectives.

Accepted Answer

The planning process helps create a roadmap or blueprint that guides the actions of everyone in the organization towards achieving the set objectives.

Question 18

The pricing strategy is the area of marketing that receives the least amount of public scrutiny.

Accepted Answer

Pricing strategy is actually one of the most important and highly debated areas of marketing, with companies carefully considering factors such as competition, consumer demand, and market trends when determining their pricing. Additionally, pricing decisions can have a significant impact on a company's profitability and growth. So, it is false that pricing strategy receives the least amount of public scrutiny.

Question 19

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, and the example given of Snapple seeking to increase its market share to 25% within a specific timeframe meets these criteria.

Question 20

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

Accepted Answer

In a SWOT analysis, marketers identify an organization's strengths, weaknesses, opportunities, and threats. The purpose of this analysis is to help the organization develop strategies that leverage its strengths and opportunities while mitigating its weaknesses and threats. However, when environmental threats target an organization's weaknesses, it can be challenging to develop effective strategies to address the issue. For example, if an organization's weakness is a lack of technological expertise, and a new environmental threat arises that requires advanced technologies to address, the organization may struggle to respond effectively.

Quiz 2: Strategic Planning in Contemporary Marketing