Deck 20: Strategic Marketing Planning

Question 1

_____ is the process of planning, implementing, and evaluating the efforts of a group of people working toward a common goal.

A) Commonality
B) Management
C) Synchronization
D) Controlling
E) Marketing

Answer 1

Management

Question 2

The _____ stage of the management process includes setting goals and designing both strategies and tactics to reach goals.

A) planning
B) motivation
C) evaluation
D) implementation
E) organization

Answer 2

planning

Question 3

A company would be in the _____ stage of the management process when it decided that its goal for next year was to create secondary demand for a new ointment to alleviate pain in arthritic joints it was introducing.

A) planning
B) motivation
C) evaluation
D) implementation
E) organization

Answer 3

planning

Question 4

The marketing manager is in the midst of the _____ stage of the management process when he hires an outside public relations firm to provide the publicity for a fundraiser for arthritis prevention the manager's company is running in conjunction with its introduction of an ointment to alleviate pain in arthritic joints.

A) planning
B) motivation
C) evaluation
D) implementation
E) organization

Question 5

The marketing manager for a new online magazine is in the midst of the _____ stage of the management process when he compares actual advertising revenue to predicted revenue.

A) planning
B) motivation
C) evaluation
D) implementation
E) organization

Question 6

The _____ stage of the management process reflects the interrelated, continuing nature of management.

A) planning
B) motivation
C) evaluation
D) implementation
E) organization

Question 7

_____ is the managerial process of matching an organization's resources with its market opportunities over the long run.

A) Strategic planning
B) Implementation
C) Tactical planning
D) Situation analysis
E) External audit

Question 8

Strategic planning:

A) usually involves activities of less than one year into the future.
B) is a desired short-range outcome.
C) makes a long-range match of an organization's resources with its market opportunities.
D) identifies potential and actual sales in each target market.
E) answers the question, "What business are we in?"

Question 9

The term strategic window refers to:

A) the view competitors have of each other.
B) the limited amount of time during which a firm's resources coincide with a particular market opportunity.
C) the scope of a firm's mission statement.
D) the time allotted for creating a corporate strategic plan.
E) how a corporation's various strategic business units are placed on the firm's organizational chart.

Question 10

For many years, the air freight business was a slow-growth industry. FedEx recognized the opportune moment for launching a service that would provide overnight delivery of high-value, low-weight merchandise. FedEx recognized a:

A) new mission.
B) strategic goal.
C) strategic business unit.
D) strategic vision.
E) strategic window.

Question 11

For years Blyth Industries averaged about $2 million per year manufacturing and selling candles for religious purchases. The company then recognized the market for candles as home accessories and increased the company's sales to $500 million annually. Blyth Industries recognized a:

A) new organizational structure.
B) strategic goal.
C) strategic business unit.
D) strategic vision.
E) strategic window.

Question 12

General Mills saw that consumers were tired of fast food and were demanding more healthful food. When General Mills realized what consumers wanted was a sit-down seafood restaurant with moderate prices, it created the Red Lobster restaurant chain. General Mills identified a:

A) new mission.
B) strategic goal.
C) differential advantage.
D) product orientation.
E) strategic window.

Question 13

The _____ for Head Start is to create special programs for children of poverty that will improve their opportunities and their ability to achieve while downplaying the pattern of failure they see in their day-to-day lives.

A) strategic plan
B) corporate motto
C) marketing campaign
D) mission
E) situational assessment

Question 14

Harry Potter, the fictional wizard, attends Hogwarts, a school for wizard training. The _____ for Hogwarts could be, "To train young wizards to use their magical talents wisely and proficiently."

A) strategic plan
B) corporate motto
C) marketing campaign
D) mission
E) situational assessment

Question 15

The _____ for a dating service for young professionals reads, "Our goal is to promote fun, excitement, and a proactive approach to your personal life by providing quality lunch-date opportunities in a discrete, no-pressure atmosphere."

A) strategic plan
B) corporate motto
C) marketing campaign
D) mission
E) situational assessment

Question 16

The _____ for Starbucks is "to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow."

A) tactical plan
B) corporate motto
C) marketing campaign
D) mission statement
E) situational assessment

Question 17

What is wrong with the following mission statement: "The goal of Mathis Building Supply is to please the American consumer"?

A) It is too broad and vague.
B) It is time-specific.
C) It is too narrow.
D) It is not important for the company's long-term success.
E) It ignores the importance of costs.

Question 18

Harry Potter, the fictional wizard, attends Hogwarts, a school for wizard training. If the headmaster of Hogwarts answered the question, "What business are we in?" He might respond, "To train young wizards to use their magical talents wisely and proficiently." This would be an example of a _____ mission statement.

A) sales-oriented
B) customer-oriented
C) marketing-oriented
D) profit-oriented
E) product-oriented

Question 19

If the owner of a dog grooming center were to answer the question, "What business are you in?" with the statement, "We wash dogs," it would be an example of a _____ mission statement.

A) sales-oriented
B) consumer-oriented
C) marketing-oriented
D) market-oriented
E) product-oriented

Question 20

If the owner of a children's day-care center were to answer the question, "What business are you in?" with the statement, "We nurture children and provide them with a homelike environment that keeps their separation anxieties to a minimum," it would be an example of a _____ mission statement.

A) sales-oriented
B) customer-oriented
C) marketing-oriented
D) profit-oriented
E) product-oriented

Question 21

Which of the following is the BEST example of a customer-oriented mission statement?

A) We clean swimming pools.
B) We take the bother out of swimming pool maintenance.
C) We fix lawn mowers.
D) Our goal is to make the best pizzas in the world.
E) Our goal is to make you a loan.

Question 22

Which of the following is the BEST example of a product-oriented mission statement?

A) Our job is to make our customers feel beautiful.
B) We want to help you enjoy the elegant lifestyle you deserve.
C) We make automobiles.
D) We treat your pets as if they were babies.
E) We treat you like a king.

Question 23

Darby received e-mail from her supervisor this morning. The message told her that her department was "to decrease order-fulfillment errors by 3 percent during the next 6 months." Her e-mail message was most likely a(n):

A) strategic plan.
B) mission statement.
C) organizational objective.
D) tactical plan.
E) situation assessment.

Question 24

To be worthwhile and workable, objectives should:

A) not be influenced by the firm's external environment.
B) be consistent with each other.
C) never be tied to a particular time period.
D) be conservative rather than ambitious.
E) be all of the above.

Question 25

To be worthwhile and workable, objectives should be:

A) consistent with each other.
B) ambitious, but realistic.
C) quantitatively measured, whenever possible.
D) stated in writing.
E) all of the above.

Question 26

Which of the following objectives is most acceptable according to the attributes listed in the textbook?

A) to decrease the number of overtime hours worked by the maintenance staff
B) to reduce sales force costs to 15 percent of net sales during the next 18 months
C) to reduce employee anxiety by sending 10 employees to seminars on how to deal with stress
D) to decrease shoplifting by 10 percent
E) to sponsor an environmental awareness program

Question 27

In business, a _____ is a broad plan of action by which an organization intends to reach its objectives.

A) tactic
B) strategy
C) policy
D) procedure
E) mission statement

Question 28

A large laundry has developed a broad plan of action to deal with Environmental Protection Agency (EPA) requirements for wastewater discharge. Because this plan will help the laundry reach its objective related to reducing expenditures and attracting customers, it is an example of a:

A) tactic.
B) strategy.
C) policy.
D) procedure.
E) mission statement.

Question 29

A large laundry wants to find a method to cut the costs of dealing with Environmental Protection Agency (EPA) requirements for wastewater discharge. One specific _____ is to purchase a Norchem Ultrapure System for chemical-free wastewater treatment, which meets the most stringent of EPA regulations while saving the company at least $25,000 annually.

A) tactic
B) strategy
C) policy
D) procedure
E) mission statement

Question 30

If one of the organizational objectives for a manufacturer of lawn furniture is to increase market share from 8 percent to 11 percent during the next year, which of the following would describe an appropriate strategy for the company to implement?

A) create an ad that shows how durable the furniture is
B) buy monthly ads in gardening magazines
C) institute a more liberal return policy
D) introduce a new line of wicker furniture as soon as it can be designed and manufactured
E) intensify marketing efforts in domestic markets

Question 31

A tactic:

A) is more generalized than a strategy.
B) is a broad plan of action by which an organization plans to reach its objectives.
C) generally covers a longer time frame than a strategy.
D) is the means by which perceptual mapping is accomplished.
E) must coincide with and support a strategy to be effective.

Question 32

If the strategy for the State of Florida Department of Citrus is to encourage people to cook with orange juice, which of the following would be the most effective tactic to support this strategy?

A) buy more local advertising
B) limit its distributors to chain supermarkets
C) hire more employees to support the expected increase in demand
D) sponsor a national contest looking for the best recipes using orange juice
E) increase the supply of oranges

Question 33

The strategy for a manufacturer of food concession trailers used by companies that provide the rides and entertainment at regional, state, and county fairs is to expand its distribution area to include purveyors of food at flea markets. A possible tactic it could use to implement this strategy would be to:

A) mail product brochures to all who sold merchandise at the three largest flea markets in the Northwest.
B) increase the number of concession trailers it makes annually.
C) merge with a truck hitch manufacturer to improve the ease of hauling the trailers.
D) increase the size of its sales force.
E) lower its price on the basic trailer.

Question 34

Strategic planning:

A) usually covers 1 year or less.
B) is the responsibility of middle- and lower-level managers.
C) focuses on the compatibility of the marketing mix and its target markets.
D) should never involve the use of a planning staff.
E) is not described by any of the above.

Question 35

The first step in strategic company planning is to:

A) select strategies.
B) define the organizational mission.
C) assess the company mission statement.
D) set organizational objectives.
E) select the company's target market.

Question 36

The owner of Royal Collectibles has defined the retail store's mission and has analyzed the store's competition and its customers. He has set an objective of increasing sales by 3 percent during the next 12 months. In terms of strategic company planning, what is the retailer's next step?

A) Perform a SWOT analysis.
B) Forecast sales for his best-selling collectibles.
C) Select strategies that will allow him to achieve this objective.
D) Fine-tune his mission statement.
E) Determine what advertising media will most likely reach his target market.

Question 37

Which of the following statements about organizational strategies is True?

A) Organizational strategies represent broad plans of action by which an organization intends to achieve its goals and fulfill its mission.
B) A company that has only one product does not need an organizational strategy.
C) The majority of companies do not develop organizational strategies because strategy formulation is an expensive and time-consuming process.
D) Older firms are more likely to have formalized organizational strategies than are new firms.
E) None of the above statements about organizational strategies is True.

Question 38

A strategic marketing plan involves doing all of the following EXCEPT:

A) conducting a situation analysis.
B) organizing the staff.
C) designing a strategic marketing mix.
D) determining marketing objectives.
E) selecting target markets.

Question 39

According to the text, the first of the five steps in strategic marketing planning is to:

A) delineate the strategic business units (SBUs).
B) design a strategic marketing mix.
C) determine marketing objectives.
D) select target markets.
E) conduct a situation analysis.

Question 40

A(n) _____ involves an analysis of where the company's marketing program has been, how it has been doing, and what it is likely to face in years ahead.

A) social audit
B) situation analysis
C) organizational portfolio analysis
D) market-factor analysis
E) trend analysis

Question 41

A situation analysis:

A) normally includes an analysis of external environmental forces.
B) is a review of a company's existing marketing program.
C) helps management determine where the marketing program should go in the future.
D) reviews in detail the company's present marketing mix.
E) is accurately described by all of the above.

Question 42

A SWOT assessment:

A) is a part of a situation analysis.
B) is concerned only with an organization's external environment.
C) is concerned only with an organization's internal environment.
D) reviews the appropriateness of the organization's mission statement.
E) does not look at an organization's environment at all.

Question 43

In terms of a SWOT assessment, a company that identifies a strategic window has identified a(n):

A) strength.
B) opportunity.
C) tactic.
D) strategic vision.
E) strategy.

Question 44

In terms of a SWOT assessment, the forecast that the $15 billion orthopedics business is expected to grow to over $65 billion during the next decade due to the aging of the baby boomers is an example of a(n):

A) strength.
B) opportunity.
C) tactic.
D) strategic vision.
E) strategy.

Question 45

Businesses in the United States account for about two-thirds of India's export software services, for processing data. Several U.S. states are considering joining New Jersey in introducing laws that would ban the outsourcing of public-sector contracts to low-cost processing centers in India. Although the immediate commercial effect on the Indian industry may be small because public-sector contracts are only a fraction of the outsourcing work it does for its U.S. customers, Indian companies fear the moves could develop into a broader protectionist backlash. In terms of a SWOT assessment, the Indian software services industry has identified a potential:

A) strength.
B) threat.
C) tactic.
D) strategic vision.
E) strategy

Question 46

For years Blyth Industries averaged about $2 million per year manufacturing and selling candles for religious purchases. The company then recognized the market for candles as home accessories and increased the company's sales to $500 million annually. By identifying the growing popularity of candles as an integral part of many home decors, it recognized a(n):

A) strength.
B) opportunity.
C) tactic.
D) strategic vision.
E) strategy

Question 47

For many years, the air freight business was a slow-growth industry. FedEx recognized the need for a service that would provide overnight delivery of high-value, low weight merchandise. In terms of a SWOT analysis, FedEx recognized a(n):

A) strength.
B) tactic.
C) strategic vision.
D) strategy.
E) opportunity.

Question 48

If General Mills were to conduct a SWOT analysis, it would learn that one of its _____ is its brand equity in its well-established brands, such as Wheaties and Cheerios.

A) strengths
B) tactics
C) target markets
D) selling points
E) opportunities

Question 49

Tattered Covers is one of America's most successful independent book retailers. One of its competitive advantages is the atmosphere of trust and community that pervades the store. Check-writing customers are not asked to furnish identification, and all employees get a key to the store on their first day of work. The key symbolizes to the employees that this is their store. Employees are allowed to borrow any of the books in inventory. This policy creates more informed employees. These examples show some of the retail bookstore's:

A) strengths.
B) strategies.
C) strategic visions.
D) selling points.
E) opportunities.

Question 50

Katherine is a company that rents textiles to hospitals, restaurants, and companies whose employees wear uniforms. It is a booming industry, but current labor shortages are making it very difficult for the company to find appropriately skilled workers. This lack of skilled workers in Katherine's current location is an example of a company:

A) strength.
B) weakness.
C) selling point.
D) threat.
E) competitive disadvantage.

Question 51

The World Health Organization estimates that 30 percent of all buildings have a poor indoor air quality (IAQ). As a result of poor IAQ, employees are experiencing respiratory and allergic complaints called Sick Building Syndrome. The company Techno Hygenics was organized in Great Britain to correct poor IAQ. The people who started the firm recognized a(n):

A) opportunity.
B) selling point.
C) threat.
D) strength.
E) strategic vision.

Question 52

Kleen-Tex sells different kinds of floor mats that are used in various facilities including schools, retail operations, and manufacturing companies. The ad for the company aimed at textile rental companies stated there are 50 million places where non-residential buildings need a mat, and currently only 5 million of those places have a mat provided by a textile rental company. This ad describes a(n) _____ that might be revealed by a situation analysis.

A) opportunity
B) selling point
C) threat
D) strength
E) strategic vision

Question 53

Shiseido is a Japanese manufacturer of cosmetics and toiletries. According to a situation analysis, its _____ lie in its solid brand reputation backed by the company's strong research and development capabilities and its high margin Cie de Peau brand.

A) opportunity
B) weakness
C) competitive disadvantage
D) strategy
E) strength

Question 54

If you are asked to name a business newspaper, you are likely to name The Wall Street Journal. The publisher of this newspaper has engaged in _____ in order to be perceived as a market leader.

A) positioning
B) mission restatement
C) production orientation
D) cost cutting
E) tactical planning

Question 55

A product's _____ is the image it projects in relation to competitive products as well as to other products marketed by the same company.

A) positioning
B) status
C) marketing mix
D) equity
E) attitude

Question 56

A product's positioning:

A) is how the product is perceived by its competitors.
B) is the image it projects in relation to competitive products as well as to other products marketed by the same company.
C) describes its physical characteristics.
D) is the image projected by the product, exclusive of its features.
E) prevents a manufacturer from revising its mission statement.

Question 57

Kroger is a national supermarket chain that sells a wide variety of products under the Kroger brand. Some consumers do not perceive any store brand as being as good as other recognized national brands even though Kroger offers a money-back guarantee on any Kroger brand product that a customer believes is unsatisfactory. This perception of the Kroger brand as being lower quality products indicates a problem with the supermarket's _____ strategy.

A) market aggregation
B) divestment
C) positioning
D) target marketing
E) segmentation

Question 58

A _____ refers to any feature of an organization or brand perceived by customers to be desirable and different from those of the competition.

A) cooperative edge
B) sales orientation
C) differential advantage
D) customer orientation
E) market orientation

Question 59

Lantech manufactures stretch wrapping equipment that encases pallet loads of products in cocoons of clear plastic film. The company has an 80 percent market share due to patents it holds on certain technologies. These patents give Lantech a:

A) cost edge.
B) sales orientation.
C) differential advantage.
D) customer orientation.
E) market orientation.

Question 60

Neiman Marcus offers a unique product mix in its Christmas catalog each year. The news media often reports on the expensive and outlandish gifts that the retailer features like matching jewel-encrusted saddles. This unique product mix gives Nieman Marcus its:

A) comparative selection advantage.
B) sales orientation.
C) differential advantage.
D) customer orientation.
E) market orientation.

Question 61

Businesses in the United States account for about two-thirds of India's export software services, for processing data. The reason so many U.S. organizations use the Indian processing centers is due to their low costs. This low cost gives the Indian data processing industry a:

A) comparative selection advantage.
B) sales orientation.
C) differential advantage.
D) customer orientation.
E) market orientation.

Question 62

Only the most superior hotels receive Mobil's coveted five-star rating. Fewer than 25 hotels in the U.S. have ever been called five-star. The Biltmore Resort in Phoenix, Arizona, has consistently won that designation. The five-star rating gives the resort a _____ over other resort hotels.

A) cost edge
B) sales orientation
C) differential advantage
D) customer orientation
E) market orientation

Question 63

Chaparral Steel uses only scrap iron and scrap steel in its very efficient continuous-casting process to make new steel. It is the only U.S. steel company that ships to Japan. Because of its low cost, it has gained a _____ over other U.S. steel manufacturers.

A) negative force
B) situational threat
C) ignored prerequisite
D) competitive threat
E) differential advantage

Question 64

For a retailer of sporting equipment, ten Little League teams that need uniforms and equipment in order to participate in an upcoming tournament and have corporate sponsors who want to buy whatever equipment the teams need comprise a(n):

A) supplier.
B) market.
C) merchandiser.
D) environmental strength.
E) bargaining group.

Question 65

supplier.

A) market.
B) merchandiser.
C) environmental strength.
D) bargaining group.

Question 66

A target market is:

A) anyone who sees the good or service being marketed.
B) anyone who might buy the seller's goods or services.
C) anyone who will be affected by the product's production and/or sales.
D) a group of customers at whom the seller directs a marketing program.
E) a group of customers who test-market a new product.

Question 67

Textile rental companies, laundromats, consumer laundries, and car washes are the _____ for a water reclamation system that economically turns wastewater into clean, reusable plant water.

A) consumer bases
B) target markets
C) product audiences
D) consumer mixes
E) marketing mixes

Question 68

Harry Potter is a fictional wizard who attends Hogwarts, a school for training future wizards. Like most schools, the _____ is the parents of the wizards-in-training who attend the school.

A) consumer base
B) target market
C) product audience
D) consumer mix
E) marketing mix

Question 69

Porsche added Cayenne, "a cross between a sports car and a utility vehicle" as a new model of automobile to appeal to young customers who "always wondered what they would do once they had an infant." These young customers are identified as the _____ for the Porsche Cayenne.

A) consumer base
B) target market
C) product audience
D) consumer mix
E) marketing mix

Question 70

A _____ consists of a group of customers to whom the seller directs a marketing program.

A) consumer base
B) target market
C) product audience
D) consumer mix
E) marketing mix

Question 71

The _____ to whom Amtrak could direct its marketing program include families on vacations, foreigners who want to see America, and students going to and from school.

A) strategic groups
B) marketing mixes
C) target markets
D) technical targets
E) focus groups

Question 72

The marketing mix:

A) shows how marketing utilities are combined to make a product.
B) defines the usage of resources.
C) is the term used to describe multiple target markets.
D) is the combination of the four primary elements that are intended to satisfy a target market.
E) refers to all potential target markets, not just those selected.

Question 73

The _____ is the combination of the four primary elements that are intended to satisfy a target market.

A) marketing mix
B) perfect strategy
C) organizational strategy
D) strategic objective
E) strategic tactic

Question 74

Charlie Schimming has opened a small business, selling a bottled mixture of hot and mild peppers, stuffed green olives, and spices. The product is distributed by mail. So far, no promotion other than word-of-mouth has been needed. For only $4.75, you can buy a pint jar of the mixture that you can use on everything from chili to Chinese food. The preceding describes the _____ for Schimming's product.

A) marketing mix
B) perfect strategy
C) organizational strategy
D) strategic objective
E) strategic tactic

Question 75

Which of the following statements about marketing mixes is True?

A) Each marketing mix element contains one and only one variable.
B) The four marketing-mix elements are promotion, distribution, price, and advertising.
C) Marketing-mix elements are interrelated.
D) Decisions about one element of the marketing mix seldom affect other elements.
E) Price is the only element of the marketing mix that cannot be used by itself as a basis for competition.

Question 76

A(n) _____ is the master blueprint for a year's marketing activity for a given business unit or product.

A) annual marketing plan
B) strategic business plan
C) annual tactical agenda
D) yearly operational forecast
E) marketing audit

Question 77

For which of the following products is the marketing plan most likely to have a time frame of less than one full year?

A) fish tanks
B) file cabinets
C) fashions for the fall season
D) children's books
E) steel building trusses

Question 78

An annual marketing plan does all of the following EXCEPT:

A) outline how much money can be spent to carry out the plan.
B) summarize the strategies and tactics that will be used to achieve specified objectives.
C) outline who is responsible for which activities.
D) discuss the development of the organizational mission.
E) describe how the plan will be implemented.

Question 79

Who would be responsible for preparing the annual marketing plan for Kool menthol cigarettes, a product that is prepared and distributed by Brown & Williamson?

A) the CEO of Brown & Williamson
B) Brown & Williamson's stockholders
C) the marketing manager for Kool cigarettes
D) all of the company's managers working together
E) all employees who work for cigarette vending machine companies

Question 80

An annual marketing plan typically contains all of the following EXCEPT:

A) an executive summary.
B) evaluation procedures.
C) a statement of objectives.
D) a mission statement.
E) a plan timetable.