Deck 2: Developing and Implementing Marketing Strategies and Plans

Question 1

The task of any business is to ________.

A) create customer needs
B) differentiate in terms of cost of production
C) deliver customer value at a profit
D) reduce competition
E) communicate similar value as provided by competitors

Answer 1

C

Question 2

The customer relationship management process involves all the activities related to receiving and approving orders, shipping the goods on time, and collecting payment.

Answer 2

False

Question 3

When a customer places an order at BookBox.com, the company processes the customer's payment information, sends the order to the nearest warehouse, and ships the order via FedEx. This is best described as the ________ process.

A) market-sensing
B) customer acquisition
C) customer relationship management
D) fulfillment management
E) new-offering realization

Answer 3

D

Question 4

The ________ lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities.

A) organizational plan
B) strategic marketing plan
C) corporate tactical plan
D) corporate mission
E) customer-value statement

Question 5

The ________ in the value chain cover the sequence of bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), and servicing them (service).

A) operations processes
B) manufacturing processes
C) primary activities
D) secondary activities
E) tertiary activities

Question 6

Juan Garcia plans the daily promotional releases about his company's products and services. He can be described as a(n) ________ planner.

A) strategic
B) selective
C) tactical
D) niche
E) operational

Question 7

Angelo made the decision to outsource the software components of his consulting company so he could focus on the company's ________, which are sources of competitive advantage, make a contribution to perceived customer benefits, have application in a wide variety of markets, and are difficult to imitate.

A) core competencies
B) infrastructure
C) market-sensing processes
D) fulfillment management processes
E) outbound logistics

Question 8

The key to utilizing organizational core competencies is to ________ that make up the essence of the business.

A) force organizational departments to justify the budgetary components
B) vertically integrate and own all intermediaries
C) own and nurture the resources and competencies
D) emphasize global promotions
E) segment the workforces

Question 9

Activities involved in building deeper understanding of existing consumers and what the product offerings mean to them would be a part of the ________ process.

A) customer acquisition
B) customer relationship management
C) customer prospecting
D) customer integrating management
E) customer equity

Question 10

Which of the following can be considered a primary activity in the value chain process?

A) procurement
B) human resource management
C) technology development
D) inbound logistics
E) firm infrastructure

Question 11

A principle of the value chain is that every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product.

Question 12

What is the second phase of the value creation and delivery sequence?

A) choosing the value
B) providing the value
C) communicating the value
D) calculating the value
E) calibrating the value

Question 13

Another way to describe a supply chain, where companies partner with specific suppliers and distributors to ensure a smooth functioning of the system, is to call it a ________.

A) teamwork group
B) horizontal integration
C) domestic power center
D) value exploration
E) value delivery network

Question 14

Describe the characteristics a core competency should possess.

Question 15

The firm's success depends not only on how well each department performs its work, but also on how well the various departmental activities are coordinated to conduct core business processes. List and briefly describe the five core business processes.

Question 16

The traditional view of marketing works best in economies with many different types of people, each with individual wants, perceptions, preferences, and buying criteria.

Question 17

James Frank has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Mr. Frank's task is best described as part of the ________ process.

A) market-sensing
B) new-offering realization
C) customer acquisition
D) customer relationship management
E) fulfillment management

Question 18

The value delivery process can be divided into three phases, out of which "choosing the value" implies ________, which is the essence of strategic marketing.

A) segmentation, developing, and delivering
B) targeting, positioning, and communicating
C) targeting, positioning, and delivering
D) segmentation, targeting, and positioning
E) researching, developing, and delivering

Question 19

The traditional view of marketing is that the firm makes something and then sells it.

Question 20

Briefly summarize the two views of the value delivery process that may be followed by organizations.

Question 21

Which of the following is an example of growth by diversification?

A) a company introducing its existing products in a new market
B) a company introducing new product category in a new market
C) a company increases its product line in an existing market
D) a company introducing a new product category in an existing market
E) a company integrates backward to cut costs

Question 22

If a company sought to grow by starting new businesses that have no relation to its current technology, products, or markets, the company would be using a market penetration strategy.

Question 23

When a business gets to know market segments intimately and pursues either cost leadership or differentiation within the target segment, it is employing a ________ strategy.

A) defined
B) focus
C) value-added
D) competitive advantage
E) customer-focused

Question 24

Unlike its competitors in the online air travel industry, Travelocity provides its customers with a greater variety of services such as cruise reservations, package tours, hotel bookings, and car rentals. This is an example of a(n) ________ strategy.

A) overall cost leadership
B) focus
C) differentiation
D) diversification
E) promotional

Question 25

When a firm aims to underprice competitors and win market share, it is using a(n) ________ strategy that requires relatively less marketing skills as compared to other strategies.

A) product differentiation
B) overall cost leadership
C) focus
D) domestic customer relationship
E) price skimming

Question 26

"What will we do if it happens?" is a question that managers typically ask while conducting a scenario analysis.

Question 27

What are hollow corporations?

A) companies that market their products through franchisees
B) companies that have liabilities exceeding their assets
C) companies that outsource all production to suppliers
D) companies that do not have any physical presence and only operate online
E) companies that are horizontally integrated

Question 28

A strategy is a game plan for achieving what the business unit wants to achieve.

Question 29

"Enriching Women's Lives" is a three-word mantra that is used by Mary Kay. This is an example of which of the following characteristics of good mission statements?

A) It is focused on a limited number of goals.
B) It is short, memorable, and meaningful.
C) It defines the major competitive spheres in which the company will operate.
D) It takes a long-term view.
E) It stresses the company's major policies and values.

Question 30

In the cycle of complete strategic planning, taking corrective action is a part of ________.

A) planning
B) implementation
C) controlling
D) organizing
E) analyzing

Question 31

Good mission statements should be long and clear, should emphasize on a wide range of goals, and stress on the company's major policies and values.

Question 32

Which of the following terms can be defined as "the shared experiences, stories, beliefs, and norms that characterize an organization"?

A) organizational dynamics
B) a business mission
C) an ethical/value statement
D) customer relationships
E) corporate culture

Question 33

To keep their strategic alliances thriving, corporations have begun to develop organizational structures to support them and have come to view the ability to form and manage strategic alliances as core skills. This is called ________.

A) value managed partnership
B) decentralized partnership
C) centralized partnership
D) partner relationship management
E) intensive growth management

Question 34

Once Starbucks established its presence in thousands of cities internationally, the company sought to increase the number of purchases by existing customers with a ________ strategy that led to new in-store merchandise, including compilation CDs, and high-speed wireless access.

A) product-development
B) market-penetration
C) diversification
D) market-development
E) conglomerate

Question 35

The ________ sphere is the number of channel levels, from raw materials to final product and distribution, in which a company will participate.

A) industry
B) vertical
C) product/application
D) competence
E) market segment

Question 36

A(n) ________ is when a company might seek new businesses to purchase that have no relationship to its current technology, products, or markets.

A) concentric strategy
B) conglomerate strategy
C) horizontal strategy
D) intensive growth strategy
E) integrative strategy

Question 37

Over the past 10 years, Cisco Systems has drastically reduced its number of suppliers and aligned itself more closely with its remaining suppliers for each of its product-based teams. How might this have helped Cisco improve its new-offering realization process?

Question 38

Indicate the differences and similarities between the following terms: marketing plan, strategic marketing plan, and tactical marketing plan.

Question 39

Identify the elements of a tactical marketing plan for a new kind of cola.

Question 40

Hot Topic, a chain that sells rock-band-inspired clothes for teens, launched Torrid to give plus-size teens the same fashion options. Identify the three parts of the value delivery process and their function for Hot Topic.

Question 41

The most frequently cited shortcomings of current marketing plans, according to marketing executives, are lack of realism, insufficient competitive analysis, and a ________ focus.

A) long-term
B) profit
C) short-run
D) product
E) price

Question 42

Explain how companies achieve leadership by forming strategic alliances.

Question 43

Describe a marketing plan.

Question 44

Pegasus writes about its target market and demographics in the ________ section of its marketing plan.

A) Executive summary
B) Implementation
C) Situation analysis
D) Strategy
E) Tactics

Question 45

The marketing strategy section of the marketing plan spells out goals and budgets for each month or quarter so the management can review each period's results and take corrective action as needed.

Question 46

During the planning process, if there is a gap between future desired sales and projected sales, corporate management will need to develop or acquire new businesses to fill it. Identify and describe the three strategies that can be used to fill the strategic gap.

Question 47

The ________ is the last section of the marketing plan. It spells out the goals and budget for each month or quarter so management can review each period's results and take action as needed.

A) executive summary
B) situation analysis
C) marketing strategy
D) financial projections
E) implementation controls

Question 48

Michael Porter draws a firm distinction between operational effectiveness and a strategy. Briefly describe this distinction, and identify when a company can claim that it has a strategy.

Question 49

Good mission statements are essential to being a success in business. Describe the major characteristics that good mission statements should have.

Question 50

Which of the following elements of a marketing plan outlines the marketing activities such as pricing, channels, and communications?

A) the situation analysis
B) the marketing strategy
C) the marketing tactics
D) the financial projections
E) the short-term targets

Question 51

Most marketing plans conclude with a section that indicates how the plan will be implemented.

Question 52

For an MBO (management by objectives) system to work, one of the four criteria that the unit's objectives must meet is that objectives must be stated quantitatively whenever possible.

Question 53

Good marketing is the art of finding, developing, and profiting from marketing opportunities. What are the three primary methods for uncovering possible product or service improvements?

Question 54

Once a SWOT analysis has been completed, the strategic planner is ready to proceed to the goal formulation stage of the strategic-planning process model.

Question 55

An environmental threat is a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit.

Question 56

In a marketing plan, the financial projections include a sales forecast, expense forecast, and ________.

A) situation analysis
B) list of tactics
C) communications strategy
D) break-even analysis
E) implementation controls

Question 57

Explain what happens in a SWOT analysis during the strategic planning process.

Question 58

From its origins as an animated film producer, Walt Disney Company has moved into licensing characters for merchandised goods and developed theme parks and vacation and resort properties. What strategy best describes Disney's growth?

Question 59

Definitions of a firm's mission as well as its marketing and financial objectives are included in the marketing strategy section of the marketing plan.

Question 60

A written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives is called a vision statement.

Question 61

Briefly list the contents of a marketing plan.

Question 62

A ________ is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company's marketing performance.

A) marketing plan
B) test market
C) marketing audit
D) market-based scorecard analysis
E) marketing metric

Question 63

Self-audits tend to provide more objective information than audits conducted by external consultants.

Question 64

A marketing dashboard should display ________.

A) implementation controls
B) plans for each marketing audit
C) the company's marketing-mix models
D) the instrument panel of all vehicles sold by a dealership
E) a customer-performance scorecard and a stakeholder-performance scorecard

Question 65

What is a marketing audit, and what is its purpose?

Question 66

A marketing audit covers the marketing organization and its systems and strategies, rather than the macroenvironment.

Question 67

Your firm has experienced a decline in sales over the last three quarters. You have traced the problems to distribution inefficiencies. Which of the following should you track to ensure that the firm's distribution efficiency is maximized?

A) average sales per point of sale
B) sales from new products
C) trial rate
D) repurchase rate
E) new customer gains

Question 68

________ is the process that turns marketing plans into action assignments and ensures that such assignments are executed in a manner that accomplishes the plan's stated objectives.

A) Marketing implementation
B) Marketing research
C) Marketing analysis
D) Brand management
E) Product management

Question 69

Which of the four characteristics of a marketing audit is described by the fact that outside consultants can bring necessary objectivity to the process?

A) comprehensive
B) systematic
C) independent
D) periodic
E) opinion-based

Question 70

Annual-plan control requires making sure the company isn't overspending to achieve sales goals. To do this, management sets monthly or quarterly goals, monitors marketing performance in the marketplace, ________, and takes corrective action.

A) conducts a SWOT analysis
B) develops tactical plans
C) conducts a marketing audit
D) hires a marketing controller
E) determines the cause of serious performance deviations

Question 71

What is marketing control? List the four types of marketing control.

Question 72

What is the purpose of profitability control, and how do marketers use it?

Question 73

Marketing effectiveness rating instruments and marketing audits are approaches to ________ control.

A) annual-plan
B) profitability
C) efficiency
D) strategic
E) statistical

Question 74

Profitability control is the prime responsibility of line and staff management.

Question 75

Briefly explain the concept of annual-plan control.

Question 76

A marketing audit only benefits a company that is in trouble; companies in good health do not need to conduct them.

Question 77

The purpose of profitability control is to ________.

A) examine whether the planned results are being achieved
B) examine where the company is making and losing money
C) evaluate and improve the spending efficiency and impact of marketing expenditures
D) examine whether the company is pursuing its best opportunities with respect to markets, products, and channels
E) understand the efficiency of the sales force, advertising, sales promotion, and distribution

Question 78

Which of the following is True regarding annual-plan control?

A) This control process begins by identifying the causes of serious performance deviations.
B) The tools used for this purpose are sales analysis, market share analysis, marketing expense-to-sales analysis, and financial analysis.
C) The marketing controller has the primary responsibility for annual-plan control.
D) Its purpose is to evaluate and improve the spending efficiency and impact of marketing expenditures.
E) It measures profitability by product, territory, customer, segment, trade channel, and order size.

Question 79

The annual plan control process begins with measuring performance.

Question 80

Which of the following is True regarding a marketing audit?

A) It focuses primarily on a firm's macromarketing environment.
B) It identifies the most-needed improvements and incorporates them into a corrective-action plan with short- and long-run steps.
C) It is less effective at locating the real source of a problem than a functional audit.
D) It analyzes only those marketing activities that have failed to produce adequate results.
E) It relies solely on company managers for data and opinions.