Deck 2: Planning, Implementing, and Evaluating Marketing Strategies

Question 1

In what ways does having a mission statement help an organization achieve its goals?

Answer 1

Once an organization has assessed its resources and opportunities, it can begin to establish goals and strategies to leverage them. The goals of any organization should derive from its mission statement, a long-term view, or vision, of what the organization wants to become. A well-formulated mission statement gives an organization a clear purpose and direction, distinguishes it from competitors, provides direction for strategic planning, and fosters a focus on customers. An organization's goals, which focus on desired results, guide the remainder of its planning efforts.

Question 2

Discuss the creation of a marketing plan. What are the major components of a marketing plan?

Answer 2

A marketing plan is a written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies. The first component of the marketing plan is the executive summary, which provides an overview of the entire plan so that readers can quickly identify the key issues and their roles in the planning and implementation processes. The executive summary includes an introduction, an explanation of the major aspects of the plan, and a statement about costs.
The next component of the marketing plan is the environmental analysis, which supplies information about the company's current situation with respect to the marketing environment, the target market, and the firm's current objectives and performance. The environmental analysis includes an assessment of all the environmental factors-competitive, economic, political, legal, regulatory, technological, and sociocultural-that can affect marketing activities. The analysis then examines the current needs of the organization's target markets. In the final section of the environmental analysis, the company evaluates its marketing objectives and performance to ensure that objectives are consistent with the changing marketing environment.
The next component of the marketing plan is the SWOT analysis (strengths, weaknesses, opportunities, and threats), which utilizes the information gathered in the environmental analysis. The marketing objectives section of the marketing plan states what the company wants to accomplish through marketing activities, using the SWOT analysis as a guide of where the firm stands in the market. The marketing strategies component outlines how the firm plans to achieve its marketing objectives and discusses the company's target market selection(s) and marketing mix.
The marketing implementation component of the plan outlines how marketing strategies will be executed.
Finally, the performance evaluation establishes the standards for how results will be measured and evaluated, and what actions the company should take to reduce the differences between planned and actual performance.

Question 3

Discuss the different ways of organizing the marketing unit.

Answer 3

The structure and relationships of a marketing unit, including establishing lines of authority and communication that connect and coordinate individuals, strongly affect marketing activities. To organize a marketing unit, firms must first decide whether operations should be centralized or decentralized, a choice that directly affects marketing decision making and strategy.
In a centralized organization, top-level managers delegate little authority to lower levels. In centralized organizations, marketing decisions are made at the top levels. However, centralized decision making may prove ineffective in firms that must respond quickly to fluctuations in customer demand. In these organizations, decentralized authority allows the company to adapt more rapidly to customer needs.  
In a decentralized organization, decision making authority is delegated as far down the chain of command as possible.
How effectively a company's marketing management can implement marketing strategies also depends on how the marketing unit is organized. Organizing marketing activities to align with the overall strategic marketing approach enhances organizational efficiency and performance. A marketing department should clearly outline the hierarchical relationships between personnel and who is responsible for performing certain activities and making decisions.

Question 4

Discuss how a firm's orientation is related to the development of its strategic plan.

Question 5

Describe the two major methods for evaluating the actual performance of marketing strategies.

Question 6

Managers at the Longshore Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called

A) marketing planning.
B) strategic planning.
C) marketing strategy.
D) corporate strategy.
E) strategic business planning.

Question 7

Compare and contrast corporate strategy and marketing strategy.

Question 8

Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.

A) benchmark
B) sustainable competitive advantage
C) core competency
D) strategic vision
E) marketing opportunity

Question 9

A SWOT analysis focuses on an organization's:

A) Strengths, Weaknesses, Opportunities, and Threats.
B) Strengths, Weaknesses, Opportunities, and Transformational Innovations.
C) Sustainability, Weaknesses, Organics, and Threats.
D) Strengths, Workers, Opportunities, and Transactions.
E) Sustainability, Weaknesses, Opportunities, and Transactions.

Question 10

CyberCycle Inc., is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the

A) profit plan.
B) marketing program.
C) strategic market program.
D) strategic business plan.
E) marketing plan.

Question 11

Safeway Foods Corporation is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a

A) corporate strategy.
B) target design.
C) mix strategy.
D) marketing strategy.
E) marketing tactic.

Question 12

Describe the process of strategic planning. How does this process help marketing managers?

Question 13

Define the four product categories used in the Boston Consulting Group (BCG) product-portfolio analysis.

Question 14

Describe the two major components of marketing strategy. What should marketing managers consider when developing marketing strategy?

Question 15

Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning?

A) Establishing marketing objectives
B) Coordinating marketing activities
C) Organizing marketing functions
D) Developing a marketing strategy
E) Planning marketing activities

Question 16

A market opportunity results from

A) the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.
B) monitoring the firm's capabilities.
C) an increase in market share and profits.
D) an assessment of environmental forces.
E) technological determinism.

Question 17

When managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure that ____ is an integral part of the process.

A) customer satisfaction
B) employee satisfaction
C) the best use of their marketing resources
D) the marketing mix
E) the marketing function

Question 18

The marketing plan is

A) a plan of all aspects of an organization's business strategy.
B) written differently for each SBU.
C) a written document detailing activities to be performed to implement and control marketing actions.
D) designed to specify not only marketing, but all other functional areas of business activities as well.
E) updated only periodically.

Question 19

To formulate a marketing strategy, one must

A) identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.
B) develop a statement of what is to be accomplished through marketing activities.
C) develop plans for implementation and control.
D) develop an adequate marketing control process.
E) determine marketing objectives.

Question 20

How does a firm use a market opportunity to reach a particular target market?

Question 21

A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace.

A) market opportunity
B) market requirement
C) competitive advantage
D) strategic window
E) competitive opportunity

Question 22

When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a

A) market objective.
B) market requirement.
C) strategic market plan.
D) market opportunity.
E) corporate objective.

Question 23

After determining that consumers had concerns about fat and carbohydrates, Sardino's Pizza began offering a low-fat, low-carb pizza product. The creation of this new product was the result of

A) a competitive advantage.
B) a well-defined mission statement.
C) good strategic planning.
D) a market opportunity.
E) opportunistic behavior.

Question 24

John Deere's strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firm's

A) strengths.
B) opportunities.
C) weaknesses.
D) threats.
E) strategies.

Question 25

An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

A) opportunities and threats
B) market opportunities
C) strengths and weaknesses
D) activities and responsibilities
E) organizational resources

Question 26

Which of the following statements is incorrect?

A) Of the three levels of planning, corporate strategy is the broadest.
B) Business-unit strategy should be consistent with the corporate strategy.
C) Marketing strategy should be consistent with both the business-unit and corporate strategies.
D) Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.
E) Strategic planning begins at the corporate level and proceeds through business-unit and marketing levels.

Question 27

An organization's business goals should be derived from its

A) mission statement.
B) strategic plan.
C) strategic business plan.
D) marketing plan.
E) marketing strategy.

Question 28

The reputation and well-known brand name of Rolex watches represents a ____ for Rolex.

A) competitive advantage
B) core competency
C) market opportunity
D) strategic window
E) pricing strategy

Question 29

Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.

A) opportunities; core competencies
B) core competencies; strengths
C) opportunities; strengths
D) strengths; core competencies
E) strengths; opportunities

Question 30

A firm's unique symbols, personalities, and philosophies comprise its

A) corporate persona.
B) corporate identity.
C) corporate character.
D) CEO's identity.
E) ethics.

Question 31

When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of

A) implementing the marketing mix
B) maintaining their corporate identity
C) a marketing objective
D) a strategic plan
E) a mission statement

Question 32

____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.

A) Corporate
B) Business-unit
C) Marketing
D) Mission statement
E) Marketing mix

Question 33

A competitive advantage exists when a

A) firm matches a core competency to opportunities it has discovered in the marketplace.
B) firm does marketing better than its competitors.
C) combination of circumstances and timing allow a firm to reach an attractive target market.
D) firm observes a fit between the key requirements of a market and its own capabilities.
E) firm has a strong marketing plan.

Question 34

Resource deployment and coordination of functional areas of business are determined by

A) the mission statement.
B) corporate strategy.
C) business-unit strategy.
D) marketing strategy.
E) the marketing mix.

Question 35

Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called

A) strengths.
B) market strategies.
C) market niches.
D) threats.
E) opportunities.

Question 36

In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food departments within their large stores. The creation of these departments was a result of

A) a core competency
B) a market opportunity
C) its sales orientation
D) its distribution plan
E) a competitive advantage

Question 37

Which of the following is a characteristic of a marketing objective?

A) It is consistent with both business-unit and corporate strategy.
B) It is a verbal agreement, not in writing.
C) It is not written in measurable terms.
D) It does not specify a time frame for its accomplishment.
E) It clearly identifies how marketing strategy will be implemented.

Question 38

Realizing an increase in both the number of consumers who are environmentally-conscious and the number of consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles. This is an example of identifying and capitalizing on a ____ while the strategic window is open.

A) marketing mix
B) market opportunity
C) objective
D) requirement
E) goal

Question 39

A strategic window is

A) the right combination of circumstances and timing that permit an organization to take action to reach a particular target market.
B) what determines the factors that are most important in making a market attractive or strong.
C) customers' requirements or desired benefits.
D) a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.
E) the process that seeks information about events and relationships in a company's outside environment.

Question 40

Amazon's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers.

A) organizational opportunity advantage
B) strategic window
C) market requirement
D) market opportunity
E) competitive advantage

Question 41

Which of the following is the most specific and detailed type of business strategy?

A) business-unit
B) marketing
C) corporate
D) customer service
E) tactical

Question 42

According to the Boston Consulting Group, question marks are characterized as products

A) having a small share of a growing market and requiring large amounts of cash to build market share.
B) generating more cash than is required to maintain share.
C) encompassing the greatest number of products.
D) existing at a cost disadvantage and revealing few opportunities for growth at a reasonable cost.
E) having substantial reported profits but needing a lot of cash to finance the rate of growth.

Question 43

Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft.

A) strategic business
B) marketing
C) dependent
D) independent
E) corporate

Question 44

Gucci Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both ____ and ____.

A) consistent; flexible
B) formal; flexible
C) variable; flexible
D) consistent; rigid
E) consistent; formal

Question 45

The percentage of a market which actually buys a specific product from a specific company is referred to as that product's

A) strategic segment
B) target market
C) market share
D) market cut
E) market position

Question 46

Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.

A) nonsustainable competitive
B) sustainable marketing
C) sustainable control
D) sustainable implementation
E) sustainable competitive

Question 47

Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _____

A) dog.
B) cash cow.
C) star.
D) cash contributor.
E) question mark.

Question 48

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are

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

Question 49

A group that has the willingness, ability, and authority to buy a product is a

A) market.
B) consumer.
C) strategic business unit.
D) business customer.
E) strategic window.

Question 50

Harley-Davidson's Harley Owner's Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) ____ over other motorcycle manufacturers.

A) controllable advantage
B) uncontrollable competitive advantage
C) sustainable marketing advantage
D) effective competitive advantage
E) sustainable competitive advantage

Question 51

Business decisions made in creating a marketing mix

A) are made before a target market is identified.
B) are unchangeable once they are agreed upon by management.
C) are only as good as the organization's understanding of the needs of the target market.
D) usually take place when a strategic window is open.
E) must always be consistent with the firm's opportunities.

Question 52

Jason, a 17-year old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of ____ to buy.

A) ability
B) willingness
C) authority
D) need
E) location

Question 53

According to the text, a market is defined as

A) a place to buy products.
B) the buyers of the products that a company develops, promotes, prices, and distributes.
C) the specific group of customers on whom an organization focuses its marketing efforts.
D) a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products.
E) the percentage of a group of customers that actually buys a specific product from a specific company.

Question 54

The Boston Consulting Group's matrix is based on the

A) idea that a firm's market share and market attractiveness are the important factors for a marketing strategy.
B) assumption that a firm's actions have a profitable impact on marketing strategy.
C) business position and market attractiveness of the firm.
D) philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy.
E) idea that a product's market growth rate and market attractiveness determine the marketing strategy.

Question 55

All marketing mix decisions must have two characteristics: ____ and ____.

A) consistency; flexibility
B) consistency; rigidity
C) formality; flexibility
D) variability; flexibility
E) formality; rigidity

Question 56

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a

A) profit entity.
B) strategic business unit.
C) marketing program.
D) small business.
E) diversified corporation.

Question 57

Which of the following statements about the marketing mix is incorrect?

A) The selection of the target market serves as the basis for the creation of the marketing mix.
B) Marketing strategy utilizes the marketing mix to develop a message that is consistent with the business-unit and corporate strategies.
C) Each element of the marketing mix must be precisely matched with the needs of the target market.
D) Once a marketing mix has been created for a particular target market, it cannot be changed until a new strategic window opens.
E) Each element of the marketing mix must be precisely matched with the other elements of the marketing mix.

Question 58

According to the Boston Consulting Group, marketers may classify their products as all of the following except

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

Question 59

The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?

A) Problem child
B) Star
C) Cash cow
D) Dog
E) Question mark

Question 60

High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select ____ which may be the most important decision they make in the planning process.

A) the promotional strategy
B) a distribution method
C) the pricing strategy
D) a target market
E) the desired profit margin

Question 61

Hallaway's Corp.'s new shampoo, VS2, is faltering badly in the market. Hallaway's marketing personnel are unsure who is responsible for various marketing tasks, when these tasks are to be completed, or what resources have been allocated. Hallaway Marketing Director Carolyn Willis said that the problem is that VS2 has the most poorly written ____ she has ever seen.

A) marketing plan
B) competitive plan
C) implementation plan
D) media schedule
E) product specification sheet

Question 62

The Kingtel Corporation is expanding operations into countries outside the United States. To improve local managers' responsiveness to local conditions, Kingel's senior management has decided to delegate decision-making authority further down the chain of command. Acme is

A) building a marketing-oriented organization.
B) empowering employees.
C) centralizing.
D) decentralizing.
E) making a serious error.

Question 63

Morris Business Products Co. distributes its business supply products through direct sales personnel. Recently, the company has established a monthly sales quota of $150,000 for each sales representative. This is a(n)

A) marketing control process.
B) evaluation of actual performance.
C) evaluation standard.
D) sales analysis.
E) performance standard.

Question 64

Starbucks provides training and support to its employees, including health care benefits. Through these ____ efforts Starbucks is better able to deliver quality products and service to its customers.

A) internal management
B) extended marketing
C) intended marketing
D) external marketing
E) internal marketing

Question 65

Zingerman's Deli operates seven retail stores throughout the city. It plans to develop a new marketing plan to extend its number of stores and operating hours. In developing this marketing plan, it has asked its employees for feedback on the changes it plans to makes. In this case, the employees are Zingerman's ____ customers.

A) external
B) extended
C) intended
D) internal
E) domestic

Question 66

Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in

A) the systems design process.
B) strategic performance evaluation.
C) marketing systems design.
D) the marketing audit.
E) marketing evaluation.

Question 67

An expected level of performance against which actual performance can be compared is a

A) standard performance.
B) standard of excellence.
C) step in sales analysis.
D) performance standard.
E) corrective standard.

Question 68

Megan knows that whether she decides to interact with her customers in person, by phone, online, Facebook, Twitter, or by fax, that ____ should ultimately drive the marketing strategy.

A) marketing research
B) polite responsiveness
C) her customers
D) product availability
E) company goals

Question 69

The first step in the strategic performance evaluation is to

A) take corrective action.
B) reduce the difference between actual and desired standards.
C) evaluate actual performance.
D) compare actual performance and standards.
E) establish performance standards.

Question 70

Mama Vertalli's Bakery is a family-owned business with over $1 million in annual revenues and six locations. At Mama Vertalli's, decisions are sometimes slow in coming and top-level managers delegate very little authority to lower-level employees. Mama Vertalli's is a(n) ____ organization.

A) centralized
B) decentralized
C) empowered
D) marketing-oriented
E) total quality management

Question 71

The process of putting marketing strategies into action is called

A) marketing implementation.
B) marketing control.
C) marketing action.
D) marketing auditing.
E) the marketing action plan.

Question 72

A marketing plan

A) is characteristic of production-oriented firms and other mass producers.
B) provides a framework for implementing and controlling marketing activities.
C) always increases the marketing manager's operating costs.
D) produces plans that are short term in orientation.
E) restricts the marketing manager's future options.

Question 73

Sayed's employer is currently developing a new marketing strategy. The top managers have developed the marketing strategy and have given it to Sayed so that he can now develop an implementation plan. Sayed's company will most likely end up with which type of strategy?

A) Decentralized
B) Centralized
C) Rigid
D) Intended
E) Realized

Question 74

J.C. Penney is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, re-defining marketing strategies, and developing guidelines for implementation and control. Thus, J.C. Penney is involved in

A) strategic analysis.
B) marketing planning.
C) marketing management.
D) marketing.
E) market organization.

Question 75

Which of the following is not a purpose of the marketing plan?

A) Communicate internally with employees
B) Assign tasks and responsibilities for implementation
C) Specify the allocation of resources
D) Monitor the performance of a marketing strategy
E) Serve as a contract with the customer

Question 76

A marketing plan document usually begins with a(n)

A) executive summary.
B) introduction to the company's marketing objectives.
C) summary of current performance as compared with past performance.
D) situation analysis.
E) opportunity and threat analysis.

Question 77

Which of the following is not a component of a marketing plan?

A) Environmental analysis
B) Marketing strategies
C) Product
D) Executive summary
E) Marketing implementation

Question 78

In a traditional organization, marketing decisions are likely to be

A) very decentralized.
B) centralized at the top levels of the organization.
C) made by frontline employees.
D) made by frontline managers.
E) made only by the CEO.

Question 79

Emma is responsible for developing and implementing the marketing plan for a new type of walking shoe targeted toward older women. Her responsibility includes making sure that the production and deliveries to the retail stores are coordinated for this new product. In order for the marketing implementation to be successful, Emma should be sure the needs of ____ customers are met.

A) the external
B) the internal
C) both the internal and external
D) the planned
E) both the planned and realized

Question 80

The Texas Pitt Barbecue Corporation has conducted a SWOT analysis of its competition, and sees a marketing opportunity for its new Texas Pit Barbecue restaurant. It has developed its marketing plan to include the type of products it will sell, the location for the restaurant, and the pricing it will use. Their plan includes a marketing objective to make a profit of 5% the first year of operation. So far, the owners of the restaurant have eliminated a key piece of the marketing plan, which is ____.

A) specifying how they will achieve their marketing objective
B) how they will address the competition's prices
C) coming up with a quantitative measure for their objective
D) developing a qualitative measure for their objective
E) assessing their weaknesses