Deck 2: Strategic Planning

Question 1

The zone is the group of consumers or organizations that are interested in and able to buy a particular product.

Answer 1

False

Question 2

The latest Surgeon General warning regarding diets high in fat, calories, and sodium would be considered a threat to fast-food restaurants like McDonald's and Burger King.

Answer 2

True

Question 3

Strategic planning is a process that is done only once, when the firm is defining its objectives and setting a course for achieving those objectives.

Answer 3

False

Question 4

Franchising is an attractive method of entering foreign markets because franchisors assume the majority of the capital costs and human resource issues.

Question 5

Nora thinks that Pantene is the best brand of shampoo on the market and refuses to buy any other brand. For Nora, Pantene has established a competitive advantage over the competing products.

Question 6

The mission statement should be focused on the firm's product and how that product can generate a profit.

Question 7

Each component of a marketing plan should be grounded in the firm's overall mission.

Question 8

The executive summary should be the first item of the marketing plan that is created.

Question 9

Market penetration strategies focus on selling existing goods and services to existing customers.

Question 10

The projection of how many units of a product the company expects to sell during a specific time period is contained in the sales forecast.

Question 11

Selling domestically produced products to foreign markets is the least-risky option for entering international markets.

Question 12

An action-oriented document or playbook that guides the analysis, implementation, and control of the firm's marketing strategy is the marketing plan.

Question 13

A marketing strategy that involves creating new goods and services for existing markets is a product development strategy.

Question 14

The situation analysis section of the marketing plan consists of a market summary, a SWOT analysis, and a competition analysis.

Question 15

The group of products on the BCG Matrix that represents products that have a small market share in industries with low growth rates is called dogs.

Question 16

The external considerations of a SWOT analysis are opportunities and threats.

Question 17

The BCG Matrix divides products into four categories: stars, question marks, cows, and skunks.

Question 18

Positioning refers to the activities a firm undertakes to create a certain perception of its product in the eyes of the target market.

Question 19

The use of licensing to enter international markets has increased significantly in recent years due to several factors, including more regulation and rising research and development costs.

Question 20

The fact that Procter & Gamble has broadened its product offerings to include household cleaning products, laundry products, snack products, and hair care products is an example of diversification.

Question 21

Marketing strategy becomes more accountable when organizations base decisions on analytics.

Question 22

Return on marketing investment (ROMI)indicates the rate at which spending on marketing contributes to expenses.

Question 23

If a firm wanted to know how it is performing relative to its competitors, it would conduct a revenue analysis.

A)functional planning.
B)business development.
C)marketing development.
D)strategic planning.
E)business planning.

Question 24

Read the actions of each person to determine which one is preparing an executive summary.

A)Nathan is reading through the marketing plan to create a synopsis of the plan's main points.
B)Based on the firm's target market, Cassandra is developing strategies to reach that market.
C)Javier is creating a report outlining how many units of product the firm expects to sell along with the expenses the firm will incur to do so.
D)Drake is outlining exactly how the marketing plan will be carried out.
E)Walter is creating a report on the firm's weaknesses and strengths.

Question 25

Zhao owns a calligraphy service. She is thinking about how she wants to move forward in her business-whether to keep it small or expand into other areas. By thinking about her firm's objectives and developing a method for achieving those objectives, Zhao is engaged in

A)functional planning.
B)business development.
C)marketing development.
D)strategic planning.
E)business planning.

Question 26

What element will ensure a business never strays too far from its core goals and values, especially if the marketing plan needs to be modified to fit the changing times?

A)a concise executive summary
B)a solid strategic plan
C)a complete SWOT analysis
D)a developed organizational plan
E)a sound mission statement

Question 27

A good mission statement should be oriented around the company's

A)marketing plan.
B)financial plan.
C)customer.
D)industry.
E)product.

Question 28

What primary strategic planning tool is used for directing and coordinating the marketing effort and helps to guide the firm's marketing strategy?

A)the mission statement
B)the executive summary
C)the situation analysis
D)the business plan
E)the marketing plan

Question 29

Read the following statements regarding strategic planning to determine which is accurate.

A)The strategic plan is shaped by the organization's marketing mix.
B)Strategic planning, even if done well, does not increase the likelihood of success.
C)Strategic planning helps ensure marketers will select the right marketing mix strategies.
D)Strategic planning principles are applicable only to business situations.
E)Strategic planning is best used as a one-time process completed when a firm outlines its objectives.

Question 30

What document provides a one- to two-page summary of the marketing plan's main points?

A)the mission statement
B)the SWOT analysis
C)the organizational summary
D)the strategic plan
E)the executive summary

Question 31

Licensing is the riskiest method of entering an international market.

Question 32

The situation analysis is composed of which three subsections?

A)market summary, financials, and controls
B)SWOT analysis, competition analysis, and financials
C)market summary, competition analysis, and financials
D)market summary, SWOT analysis, and competition analysis
E)SWOT analysis, target market, and controls

Question 33

A good mission statement should

A)be company-oriented.
B)focus on when to market the product.
C)ask the question "What is our product?"
D)contain as many goals as possible.
E)provide motivation for the employees of the firm.

Question 34

What element of the marketing plan helps firms understand where they are currently and how best to move forward?

A)the executive summary
B)the marketing strategy
C)the financials
D)the situation analysis
E)the controls

Question 35

The five key components of the marketing plan are

A)executive summary, situation analysis, positioning, financials, and implementation.
B)executive summary, situation analysis, marketing strategy, financials, and controls.
C)executive summary, market positioning, marketing strategy, financials, and implementation.
D)mission statement, situation analysis, marketing strategy, financials, and controls.
E)mission statement, situation analysis, promotion strategy, financials, and controls.

Question 36

How often should firms undertake the task of strategic planning?

A)on a continual basis as conditions change
B)only once, when determining the firm's objectives
C)only once, when developing the marketing plan
D)two or three times, to make sure all items are covered
E)never; it is unnecessary to develop a strategic plan

Question 37

What is the overall purpose of a marketing plan?

A)to define the target market and promotion strategies to be used on that market
B)to identify both existing and potential competitors of the firm
C)to determine whether or not a firm has enough capital to pursue its objectives
D)to define the company's strengths and weaknesses
E)to guide the analysis, implementation, and control of the firm's marketing strategy

Question 38

An action-oriented document or playbook that guides the analysis, implementation, and control of the firm's marketing strategy is known as the

A)marketing plan.
B)organizational plan.
C)promotional plan.
D)business plan.
E)strategic plan.

Question 39

Gloria wants to perform a situation analysis of her business to help her make strategic decisions for the future. While the situation analysis will help Gloria identify many things, it won't address which area?

A)current competitive forces
B)market conditions
C)the firm's strengths and weaknesses
D)the firm's financial projections

Question 40

A concise affirmation of a firm's long-term purpose is known as its

A)executive summary.
B)long-range plan.
C)mission statement.
D)organizational directive.
E)marketing plan.

Question 41

According to the BCG matrix, products that are typically new to the market and require significant marketing investment in promotion, product management, and distribution are classified as

A)question marks.
B)skunks.
C)dogs.
D)stars.
E)cash cows.

Question 42

Once the situation analysis is complete, marketers focus on defining their

A)strategic plan.
B)marketing strategy.
C)mission statement.
D)competition.
E)SWOT analysis.

Question 43

What information does a break-even analysis provide for a firm?

A)a bottom-line estimate of the firm's profitability
B)how much profit a firm needs to make before diversification can take place
C)what market share the company needs to attain to surpass its competitors
D)the length of time that it will take for a company to pay off all its debts
E)how much the company needs to sell to cover its expenses

Question 44

Why is it necessary to have an outline of the organizational structure in the controls section of the marketing plan?

A)because it specifies how the marketing plan affects each and every department in the organization
B)because it helps to identify what the weak links are in the organization
C)because it helps hold specific departments and individuals responsible for the parts of the plan that fall under their control
D)because it shows how the company will be affected if the marketing plan does not achieve results
E)because it provides a detailed account of how the specific actions of the plan will be carried out and who will be responsible for carrying them out

Question 45

Determine which description accurately depicts what is contained in an expense forecast.

A)an estimate of the costs the company will incur to create, communicate, and deliver the product
B)an estimate of how many units of product the company expects to sell during a specific time period
C)the total amount of debt owed by the company, both short-term and long-term
D)the amount of money the company must pay suppliers to warehouse and ship the product to stores
E)an estimate of the market share for any given product and the cost incurred to reach that market

Question 46

According to your text, perhaps the most common mistake a firm makes when conducting a SWOT analysis is

A)looking at only the firm's strengths.
B)failing to separate internal issues from external issues.
C)failing to involve all departments in the analysis.
D)not looking at the firm's financial statements.
E)underestimating the competitive environment.

Question 47

The internal considerations in a SWOT analysis are

A)a firm's revenue and market share.
B)the firm's current and future competition.
C)a firm's strengths and weaknesses.
D)a firm's market share and growth potential.
E)a firm's opportunities and threats.

Question 48

The controls section of the marketing plan should contain which of the following?

A)implementation, organizational structure, and contingency planning
B)implementation, feedback, and review
C)marketing strategy, organizational structure, and feedback
D)implementation, evaluation, and contingency planning
E)organizational structure, administrative oversight, and evaluation

Question 49

What element of the control section of the marketing plan defines the actions the company will take if the initial marketing strategy does not achieve results?

A)the contingency plan
B)the organizational structure
C)the situation analysis
D)the implementation plan
E)the strategic plan

Question 50

As it pertains to a situation analysis, the term market refers to

A)the group of consumers that are interested in and able to buy a particular product.
B)the environment in which a particular product will be sold.
C)the entire product offering of a firm that must be promoted.
D)the competitive forces that impact how a product will be sold.
E)the collective form of promotions for any given product.

Question 51

What two elements are combined on the BCG matrix to produce its four unique product categories?

A)market growth and relative market share
B)market size and product demand
C)market growth and number of competitors
D)supply and demand
E)relative market share and number of competitors

Question 52

According to your text, what three elements should be contained within a company's financial projections?

A)short-term debt, long-term debt, and sales forecast
B)balance sheet, profit and loss statement, and net worth
C)sales forecast, expense forecast, and break-even analysis
D)sales forecast, profit and loss statement, and balance sheet
E)expense forecast, sales forecast, and net worth

Question 53

According to the BCG Matrix, what defines a cash cow?

A)products that have a large market share in an industry with high growth rates
B)products that have a small market share in an industry with low growth rates
C)products that have a small market share in an industry with steady growth rates
D)products that have a small market share in an industry with high growth rates
E)products that have a large market share in an industry with low growth rates

Question 54

What two forecasts are used in a break-even analysis?

A)sales and expense
B)revenue and production
C)market share and sales
D)production and sales
E)profit and loss

Question 55

Which product would most likely be considered a dog?

A)microwave oven
B)compact disc
C)lawn mower
D)laptop
E)iPod

Question 56

The actions a firm must take to accomplish the marketing objectives established in its mission statement and strategic planning process are outlined in the

A)marketing strategy.
B)situation analysis.
C)organizational plan.
D)market summary.
E)executive summary.

Question 57

Davis Manufacturing estimated that it would sell 20 percent more of its most popular product this year. However, economic conditions in the country that supplies some of the component parts for the product caused the cost of these parts to almost double. Davis Manufacturing, therefore, changed course and focused instead on selling more of its domestic products that do not use these component parts. This change of course for the company would be outlined in the firm's

A)contingency plan.
B)organizational structure.
C)situation analysis.
D)implementation plan.
E)strategic plan.

Question 58

Which forecast projects how many units of a product the company expects to sell during a specific time period?

A)distribution forecast
B)production forecast
C)sales forecast
D)expense forecast
E)break-even analysis

Question 59

The final section in most marketing plans is the

A)situation analysis.
B)financial section.
C)marketing strategy.
D)executive summary.
E)controls section.

Question 60

A loan officer is reading the marketing plan for Nellie's New York Style Bagels-a new firm looking to secure a business loan. What section of the marketing plan will give the loan officer a bottom-line numerical estimate of the firm's profitability?

A)the financials section
B)the executive summary
C)the situation analysis
D)the control section
E)the market summary

Question 61

In a SWOT analysis, current and potential external factors that may challenge the firm's short- and long-term performance are referred to as

A)hazards.
B)threats.
C)opportunities.
D)obstacles.
E)weaknesses.

Question 62

Which of the following best describes a market development strategy?

A)selling unrelated products to existing customers
B)selling new products to new customers
C)selling more of current products to existing customers
D)selling existing products to new customers
E)selling new products to existing customers

Question 63

If Energizer batteries began selling t-shirts featuring its infamous Energizer bunny to try to capitalize on its brand name, this would be an example of

A)market development.
B)product development.
C)diversification.
D)positioning.
E)market penetration.

Question 64

The activities that an organization uses to reach its target market such as advertising, personal selling, and public relations are all part of the marketing mix element known as

A)position.
B)place.
C)product.
D)price.
E)promotion.

Question 65

Consider the following findings from a recent SWOT analysis performed by Yolanda's flower shop. Which finding represents a threat?

A)Yolanda has a good business relationship with local catering companies.
B)The summer drought has produced fewer flowers.
C)A new funeral home just opened up in town.
D)Yolanda has to spend a lot of time training her employees on how to care for the flowers and plants.
E)Yolanda has a hard time finding good employees after the summer staff goes back to school.

Question 66

Which marketing strategy is being employed by a firm that is seeking to expand in foreign markets?

A)market penetration
B)positioning
C)product development
D)diversification
E)market development

Question 67

The three basic characteristics of a quality marketing objective is that it be

A)far reaching, thorough, and measurable.
B)specific, tailored, and recognizable.
C)broad, detailed, and measurable.
D)vague, simplistic, and easy to understand.
E)specific, measurable, and realistic.

Question 68

The activities a firm undertakes to create a certain perception of its product in the eyes of the target market are referred to as

A)leveraging.
B)zoning.
C)positioning.
D)targeting.
E)labeling.

Question 69

If J.D. Power Cars ranked the Toyota Prius as the best hybrid cars for the money, this would represent a(n)________ for Toyota.

A)core benefit
B)value edge
C)marketing tactic
D)competitive advantage
E)market position

Question 70

Which marketing strategy would Dunkin' Donuts be using if it decided to begin selling its doughnuts in Puerto Rico for the first time?

A)product development
B)market development
C)market penetration
D)positioning
E)diversification

Question 71

The marketing strategy that emphasizes selling more of existing goods and services to existing customers is called

A)product development.
B)market penetration.
C)market development.
D)diversification.
E)positioning.

Question 72

Which element of the marketing mix details how the organization will communicate the value of its product?

A)place
B)product
C)price
D)position
E)promotion

Question 73

The superior position a product enjoys over competing products if consumers believe it has more value than other products in its category is referred to as a

A)value proposition.
B)marketing advantage.
C)competitive advantage.
D)product plus.
E)strategic edge.

Question 74

Which element of the marketing mix relates to services like warranties and guarantees that accompany a good or service?

A)place
B)promotion
C)product
D)position
E)price

Question 75

Think about the various marketing strategies as you read the following choices to determine which one describes a market penetration strategy.

A)Precious Gems is selling its new line of necklaces to a new market overseas.
B)Toys for Boys sells its toys in California, but now it wants to sell them all over the United States.
C)Luxury Lighting wants to sell its existing products in new retail outlets.
D)The Exotic Fishbowl is now adding a line of aquarium accessories to sell to its existing customers.
E)Rita's Taco Barn is thinking of how it can sell more of its current menu to the regular customers that dine in her restaurant at lunchtime.

Question 76

Compare the following marketing objectives to determine which meets the criteria of being specific, measurable, and realistic.

A)Over the next year, Big Deal Records hopes to sign new artists to its recording label.
B)Ted has told all his sales representatives that they need to sell more product in the next six months.
C)Tilly thinks her ice cream store should be able to decrease its expenses this year.
D)The sales representatives at Wonder Autos are told they must each sell 100 more cars in the next two weeks.
E)Bill's Boat Shop wants to sell 9 more fishing boats in the next 12 months.

Question 77

Rico's Stuffed Subs is a late-night sandwich shop located on a college campus. Rico recently conducted a SWOT analysis. Compare each of the following to determine which one is a weakness for Rico's Stuffed Subs.

A)Rico finds it hard to staff the late-night shifts, which are his busiest times.
B)Rico is worried about the push for healthier eating.
C)A graduate of the college, Rico is well liked in the community.
D)A new sandwich shop has opened up down the street.
E)Rico is concerned that the weak economy will lead to fewer students dining out.

Question 78

When the makers of Grove orange juice noticed that sales of its product were stabilizing, they decided to offer a new product, one that also contained pineapple juice. They called the product PineGrove and they marketed it to their original orange juice customers in hopes of increasing sales. This is an example of what kind of marketing strategy?

A)positioning
B)product development
C)market development
D)diversification
E)market penetration

Question 79

Nico owns a gift and card shop and is currently preparing a market summary. To be most effective, the competition section of his market summary should

A)list only indirect competitors.
B)focus only on competitors that sell the same product as he.
C)list possible tactics to obtain a larger market share.
D)list only direct competitors.
E)list both direct and indirect competitors.

Question 80

As a marketing strategy, what is diversification?

A)selling more of existing goods and services to existing customers
B)selling existing goods and services to new customers
C)selling new goods and services to new customers
D)offering new products that are unrelated to the existing products produced by a company
E)creating new goods and services for existing markets