Deck 2: Strategic Planning in Contemporary Marketing

Question 1

Effective relationship marketing is partly built upon the use of which of the following?

A) inside information about competitors
B) the databases to track customer preferences
C) the larger advertising budgets
D) the knowledge about changes in economic conditions

Answer 1

B

Question 2

Best Buy wanted to open a new store in Fredericton, New Brunswick, but instead of building a new store a decision was made to renovate a grocery superstore that had closed.What type of planning was this decision the result of?

A) tactical planning
B) marketing planning
C) strategic planning
D) economic planning

Answer 2

A

Question 3

How can relationship marketing help a company?

A) by creating long-term links with individual customers for mutual benefit
B) by reducing its strategic planning effort since the need for such planning is greatly diminished
C) by finding more effective media for use in advertising and mass marketing
D) by cutting through the planning process and moving into tactical plans

Answer 3

A

Question 4

Compared with other organization personnel, who devotes more time to long-range strategic planning?

A) middle management
B) manufacturing labour
C) top management
D) supervisory management

Question 5

What type of plans in the planning hierarchy would deal with organization-wide objectives, long-term plans, and the total budget?

A) annual plans
B) tactical plans
C) operational plans
D) strategic plans

Question 6

If Toyota was planning to introduce a sports car powered by a hydrogen-oxygen fuel cell when the price of gasoline in Canada reached $1.10 per litre, what type of plan does this BEST describe?

A) an economic plan
B) a strategic plan
C) a technological plan
D) a tactical plan

Question 7

Sport Canada is determining where it should build its permanent training facility.The organization wants it near a populated centre but rural enough to provide ample room.What type of planning is the organization engaged in?

A) strategic planning
B) travel planning
C) marketing planning
D) economic planning

Question 8

What are the basic objectives or goals of an organization derived from?

A) its strategic plan
B) its tactical plan
C) its corporate strategy
D) its mission statement

Question 9

What type of planning would preparation of quarterly and semi-annual plans by personnel, such as the general sales manager or advertising director, be classified as?

A) consumer planning
B) tactical planning
C) strategic planning
D) managerial planning

Question 10

What long-term plans focus on organizational objectives that will significantly affect the firm for five or more years?

A) strategic plans
B) marketing plans
C) economic plans
D) tactical plans

Question 11

What do product lines, pricing decisions, selection of appropriate distribution channels, and decisions relating to promotional campaigns all depend on?

A) technology available to the firm
B) decisions made within in the accounting department
C) plans formulated within the marketing department
D) industry-wide planning programs

Question 12

Who should complete operational planning?

A) top management
B) mid-level managers
C) supervisory management
D) lower management

Question 13

What is the process of anticipating future events and conditions and determining the BEST way to achieve organizational objectives called?

A) researching
B) planning
C) controlling
D) managing

Question 14

What does the planning process begin with?

A) writing the mission statement
B) establishing organizational objectives
C) formulating a marketing plan
D) hiring a senior planner

Question 15

What does marketing planning establish?

A) the resource base provided by the firm's strategy
B) the economic impact of additional sales
C) the tactical plans that must be implemented by the entire organization
D) the basis for attaining marketing objectives

Question 16

How long a period will a firm be affected by broad-spectrum strategic planning that may involve a focus on achieving long-range organizational objectives?

A) as long as one to six months
B) as long as six months to a year
C) as long as five years or more
D) as long as 20 years

Question 17

SuperSavers Market, a small grocery store chain, is working on its tactical plans.Who would be the personnel MOST involved in this operational planning process?

A) top management
B) middle management
C) store managers
D) supervisory management

Question 18

What type of plan does a company have when it focuses largely on current and near-future activities?

A) a strategic plan
B) a marketing plan
C) an economic plan
D) a tactical plan

Question 19

Which of the following is a result of tactical planning?

A) a total budget
B) long-term plans
C) divisional budgets
D) departmental rules

Question 20

Which of the following is NOT a company objective?

A) increase sales by 10 percent per year
B) to be the quality and market leader of the gobal hotel industry
C) reduce product errors to less than 1 percent
D) achieve a 25 percent market share in less than three years

Question 21

In SWOT analysis, when does vulnerability occur?

A) when internal organizational weaknesses prevent taking advantage of an opportunity
B) when environmental threats attack organizational weaknesses
C) when weaknesses are effectively addressed
D) when environmental threats are stronger than organizational strengths

Question 22

Which of the following companies has often followed a second mover strategy?

A) Apple Computer
B) Facebook
C) eBay
D) Amazon.com

Question 23

What goal do all planning strategies have?

A) creating sustainable competitive advantage
B) creating short-term competitive advantage
C) creating a strategic window
D) creating leverage

Question 24

In a SWOT analysis, when does a problem exist?

A) when internal organizational weaknesses prevent taking advantage of an opportunity
B) when environmental threats attack organizational weaknesses
C) when weaknesses are effectively addressed
D) when environmental threats are stronger than organizational strengths

Question 25

Which of the following is an example of a threat to a firm discovered by a SWOT analysis?

A) inadequate financing capabilities
B) the chance to acquire firms with needed technology
C) likely entry of new competitors in the industry
D) too narrow a product line for the firm

Question 26

Which of the following is an example of a firm's weakness discovered by a SWOT analysis?

A) changing buyer tastes in the marketplace
B) the presence of modern production facilities
C) inadequate financing capabilities
D) likely entry of new competitors

Question 27

Which of the following BEST describes limited occasions when the key requirements of a market and the particular competencies of a firm best fit?

A) marketing planning
B) a strategic window
C) strategic planning
D) a tactical door

Question 28

What part of the organization should be MOST involved in formulating strategy for success of the good or service in the marketplace?

A) the corporate executive team
B) the potential customer
C) the vendors and channel members
D) the firm's marketing personnel

Question 29

Which of the following is an example of a firm's strength discovered by a SWOT analysis?

A) ownership of valuable patents
B) a narrow current product line
C) changing buyer tastes in the marketplace
D) existing government policies adverse to the industry

Question 30

Assume a firm would like to expand its product line.A complete expansion would cost $100 million, but the firm can raise only $75 million in financing.What is this BEST classified as?

A) a constraint
B) an opportunity
C) a threat
D) a vulnerability

Question 31

What is SWOT an acronym for?

A) strategy, work, opinions, tactics
B) strengths, weaknesses, opportunities, threats
C) strategy, work, openness, toughness
D) strategy, weakness, opinions, tactics

Question 32

In a SWOT analysis, when is a constraint present?

A) when internal organizational weaknesses prevent taking advantage of an opportunity
B) when environmental threats attack organizational weaknesses
C) when organizational weaknesses are effectively addressed
D) when environmental threats are stronger than organizational strengths

Question 33

What is a SWOT analysis that is designed to reveal, among other things, a firm's core competencies also known as?

A) financial resources
B) strengths
C) leverage
D) vulnerabilities

Question 34

General Motors has difficulty competing with other car makers due to its lack of responsiveness to changing consumer preferences.In SWOT terms, what does this constitute?

A) a strategic window
B) a leveraged situation
C) a productivity challenge
D) a constraint on its activity

Question 35

What is the third step in the planning process?

A) determining the necessary financing objectives and support
B) writing a marketing plan
C) assessing strengths, weaknesses, and opportunities
D) establishing organizational objectives

Question 36

What is one of the major problems with strategic windows?

A) They are presented when the market stays relatively stable for long periods.
B) Acquiring competencies for the firm is usually a major flaw.
C) They are not affected by a firm's competencies, constraints, or vulnerabilities.
D) They exist for only a limited time.

Question 37

What characteristic would a less competitive market have?

A) high barriers to entry
B) increased number of potential substitutes
C) strong bargaining power among buyers
D) strong bargaining power among suppliers

Question 38

Comparing a first mover to a second mover strategy, which of the following describes a first mover strategy?

A) It is more risky but offers higher reward.
B) It is more risky and offers lower reward.
C) It is less risky and offers higher reward.
D) It is less risky but offers lower reward.

Question 39

In SWOT analysis, what are situations in which organizations are unable to capitalize on opportunities because of internal limitations referred to as?

A) strategic windows
B) strategic leverage
C) constraints
D) vulnerability

Question 40

WestJet Airlines has one of the lowest levels of operating expenses in the airline industry.In a SWOT analysis, what is this classified as?

A) an opportunity
B) a constraint
C) a strength
D) a threat

Question 41

Which of the following BEST fits the activity of promotion?

A) making products available
B) finding a convenient location
C) maintaining a high level of regulation
D) communicating between buyers and sellers

Question 42

What type of strategy do the marketing mix decisions that are MOST closely regulated and subject to public scrutiny usually relate to?

A) product strategy
B) promotional strategy
C) distribution strategy
D) pricing strategy

Question 43

Which of the following describes the term marketing mix?

A) a composite analysis of all environmental factors inside and outside the firm
B) a series of business decisions that aid in selling a product
C) the relationship between a firm's marketing strengths and its business weaknesses
D) a blending of four strategic elements to satisfy specific target markets

Question 44

At a time when computer users were having trouble storing, sending, and displaying photos, Apple introduced the iMac computer, which was equipped with a digital camera interface and photo-handling software.What did Apple recognize, which resulted in this product?

A) product innovations
B) competitive constraints
C) a strategic window
D) financial opportunities

Question 45

What marketing mix activity are newsletters, catalogues, and invitations to company-sponsored events MOST closely associated with?

A) pricing
B) distribution
C) product development
D) promotion

Question 46

Jonathan is part of a team analyzing current demographic trends.The team will make a recommendation concerning the groups of consumers toward whom the firm should direct its marketing effort.What element of the firm's marketing strategy is Jonathan's team involved in?

A) target market
B) distribution
C) product
D) promotion

Question 47

What is the organizational program that selects a target market and satisfies customers in that market through the marketing mix called?

A) marketing objectives
B) a marketing strategy
C) relationship marketing
D) a strategic plan

Question 48

To evaluate an organization's SBUs, the Boston Consulting Group developed a portfolio performance framework.How did they characterize some of the SBUs?

A) as question marks
B) as quick winners
C) as charging bulls
D) as cash-outs

Question 49

What is the overall, company-wide program that selects a particular target market and then satisfies consumers in that market through careful blending of the elements of the marketing mix called?

A) a corporate strategy
B) a strategic plan
C) a strategic window
D) a marketing strategy

Question 50

As chief executive of Stalwart Shipfitting Company, a diversified producer of marine supplies and equipment, John needs a method for spotting promising product lines that warrant commitment of additional resources, as well as those that should be removed from the firm's product portfolio.What would be a good choice for this firm?

A) computer models
B) strategic business units
C) a marketing audit
D) an inventory audit

Question 51

What strategy do decisions involving transportation, warehousing, inventory control, and order processing relate to?

A) pricing strategy
B) competitive strategy
C) product strategy
D) distribution strategy

Question 52

What type of market is the group of people to whom a firm directs its marketing efforts?

A) the captive market
B) the consumer market
C) the home market
D) the target market

Question 53

What percentage of the market will the three leading firms in an industry have, according to the rule of three?

A) less than 25 percent
B) around 50 percent
C) between 70 and 90 percent
D) nearly 100 percent

Question 54

Which of the following is a marketing planning tool?

A) market share/market growth matrix
B) consumer scanning model
C) market vulnerability/business opportunity matrix
D) market sheet analysis

Question 55

Jenny has been appointed marketing manager for Sparkling Cleaning Products.Her job focuses on decisions involving customer service, package design, brand names, and warranties.What area of the marketing strategy will Jenny MOST likely work in?

A) product strategy
B) resource valuation and pricing
C) retailing and distribution strategy
D) target market development

Question 56

Miranda has been named to an upper-level management position at Bio Med Cosmetics.She will be working with transportation media, order processing, and development of marketing channels.What strategies would Miranda be involved in developing?

A) product strategies
B) distribution strategies
C) promotional strategies
D) marketing strategies

Question 57

How is the term "product" BEST described?

A) It refers only to tangible items that can be seen, tasted, or touched.
B) It is a broad concept encompassing the satisfaction of consumer needs.
C) It is limited to include goods, services, and ideas only.
D) It never refers to such things as package design, brand name, or warranty.

Question 58

Which of the following BEST describes the strategic business unit (SBU) concept?

A) a planning tool that separates tactical and operational issues for analysis
B) a device used primarily to separate marketing costs from production expenses
C) a marketing planning tool best suited to the needs of large, diversified organizations
D) a way to create units of business activity based solely on sales potential

Question 59

What does each strategic business unit (SBU) within a firm have?

A) an advertising consultant
B) a government "watch dog" agency
C) a board of directors
D) competitors

Question 60

Which of the following is NOT a marketing mix variable?

A) distribution
B) product
C) target market
D) pricing

Question 61

The strategic planning process involves allocation of necessary resources.

Question 62

According to the market share/market growth matrix, how does a successful product typically begin?

A) as a question mark, then a star, and eventually moves to the status of cash cow
B) as a star, fades to a question mark, and finally becomes a dog and is dropped
C) as a cash cow, moves to a question mark, and finally becomes a star
D) as a cash cow and fades to a dog when it's dropped

Question 63

What does the quadrant of the market share/market growth matrix that represents both a high market share and a high rate of market growth include?

A) the cash cows
B) the achievers
C) the stars
D) the strivers

Question 64

A company notices that its customers enjoy the chicken burger with meals but often only purchase fries at mid-day for a snack.A decision is taken to provide a mini-chicken burger for the purpose of snacking to these customers.Which of the following BEST describes the strategic growth opportunity that is being used?

A) Product development
B) Diversification
C) Market penetration
D) Market development

Question 65

How does the market share/market growth matrix classify products with a low relative share of a high-growth rate market?

A) as stars
B) as question marks
C) as cash cows
D) as dogs

Question 66

Strategic planning has a critical impact on a firm's destiny because it provides short-term direction for decision makers.

Question 67

Marketing plans establish the basis for any marketing strategy.

Question 68

Good relationships with customers can equip a firm with vital strategic weapons.

Question 69

Microsoft Windows generates considerable income for the parent company but is also expensive to support.However, the expense is acceptable because Windows is the world's dominant operating system.How would Windows be classed under the market share/market growth matrix?

A) as a star
B) as a cash cow
C) as a question mark
D) as a dog

Question 70

According to the market share/market growth matrix, what is the SBU that produces strong cash flows that can be used to finance the growth of other SBUs?

A) the dog
B) the question mark
C) the cash cow
D) the star

Question 71

An example of strategic planning would be a decision by McDonald's to introduce salads to its menu.

Question 72

The planning process defines checkpoints at which the organization can compare actual performance with expectations to indicate whether current activities are close to achieving the objectives.

Question 73

The product manager for a new mousetrap informs the board of directors at its annual meeting that the product has been classified as a dog.What does this mean about the product?

A) It requires a "go/no go" decision within the next several years.
B) It has low market share of a high-growth rate market.
C) It should be withdrawn from the market.
D) It needs heavy investment to make it a star.

Question 74

A food chain has a promotion where each purchaser of a large, rather than a medium-sized beverage, gets a chance to win a prize.Which of the following BEST describes the strategic growth opportunity that is being used?

A) Product development
B) Diversification
C) Market penetration
D) Market development

Question 75

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

Question 76

Initially, cellphones had no limiters as to the regions that could be dialed or the number of different phone numbers that could be dialed.Based on this, many parents would not purchase a phone for their younger children.Next, cellphone manufacturers created phones and plans that limited the number of phone numbers programmed into the phone and no other numbers could be dialed.Only local calling would be available.Which of the following BEST describes the strategic growth opportunity that is being used?

A) Product development
B) Diversification
C) Market penetration
D) Market development

Question 77

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

Question 78

The planning process identifies objectives and determines which actions are needed to attain those objectives.

Question 79

Which of the following is the MOST risky growth strategy for a company to pursue?

A) Product development
B) Diversification
C) Market penetration
D) Market development

Question 80

Strategic plans focus on courses of action necessary to achieve the organization's secondary objectives.