Deck 19: Pulling It All Together: The Strategic Marketing Process

Question 1

The S-shaped curve of a sales response function is due to:

A)rising production costs and diminishing demand.
B)reduced cost and increasing marginal returns.
C)initially increasing and then diminishing marginal returns of additional marketing expenditures.
D)decreasing costs as a result of marketing economies of scale.

Answer 1

C

Question 2

Biopure Corporation has developed an artificial hemoglobin that can be used in place of blood transfusions and holds the patent on this product.Therefore,Biopure has a(n):

A)distinctive parity.
B)sustainable dominance.
C)synergistic edge.
D)competitive advantage.

Answer 2

D

Question 3

Which aspect is the foundation of Canada Goose's differentiation strategy?

A)high-quality products
B)made in Canada
C)off-shore production
D)premium pricing

Answer 3

B

Question 4

The WestJet founders studied what to determine that their airline could be successful in Western Canada?

A)their old Marketing textbooks
B)how many travelers there are in Canada
C)how many travelers there are in North America
D)the success of Southwest Airlines

Question 5

Figure: 19-1
According to Figure 19-1,an additional annual marketing effort of $1 million is best spent after having already spent how much in marketing effort to date?

A)$1 million
B)$2 million
C)$3 million
D)$5 million

Question 6

At which stage in the strategic marketing process would a marketing manager set a 10 percent market share growth goal compared to last year?

A)Research
B)Planning
C)Goal Setting
D)Implementation

Question 7

Canada Goose's social media success has been all organic.One of the fundamental social media marketing strategies of Canada Goose is:

A)content creation through story telling
B)ad-based growth
C)allowing customers to complain online
D)offering discounts through social media purchases

Question 8

WestJet was founded by four Calgary entrepreneurs in which year?

A)1967
B)1975
C)1988
D)1996

Question 9

Each of the following is a basic business practice that is fundamental to business success EXCEPT:

A)flexibility.
B)strategy.
C)execution.
D)culture.

Question 10

Economists would most likely recommend that marketing managers allocate the firm's marketing resources to the markets and products in which:

A)the firm has had the most experience with a product.
B)an SBU is considered a cash cow.
C)there is the greatest current market share and the fastest growing industry rate.
D)the excess of incremental revenues over incremental costs is greatest.

Question 11

New Balance has no celebrity endorsers and does minimal advertising,yet the athletic shoe brand has 11 percent of the market.This 11 percent can be referred to as New Balance's:

A)product line breadth.
B)product line depth.
C)share points.
D)sales response function.

Question 12

You have been told that a company increased its marketing effort from $2 million to $5 million,and that the same company increased its sales revenue from $12 million to $21 million. Calculate the company's ratio of incremental sales revenue to incremental marketing effort.

A)3:1
B)1:3
C)9:1
D)7:19

Question 13

When using share points to make marketing resource allocation decisions,marketing managers must estimate all of the following EXCEPT:

A)corporate return on investment.
B)market share for the product.
C)revenues associated with each point of market share.
D)the contribution to overhead and profit (or gross margin) of each share point.

Question 14

Last year,General Mills spent $3 million on advertising and observed a 5 percent increase in market share.This year,they spent $4 million and observed a 7 percent increase.These measures are considered the:

A)sales ratio function
B)marginal analysis
C)sales response function
D)market-product ratio

Question 15

The marketing manager for Ocean Spray cranberry products is the team leader for each phase of the company's strategic marketing process.During the previous year,sales of cranberries in Canada did not meet expectations.Which of the following actions during the planning phase of the strategic marketing process would generate the required information for his team to develop the plans that define the goals and marketing mix strategies to be achieved for next year?

A)Generate a memo that clarifies each team member's responsibilities in the strategic marketing process.
B)Conduct a situation (SWOT) analysis that identifies industry trends, analyzes competitors, assesses his own company, and researches customers.
C)Develop a new organizational chart that reflects the reorganization of the team if corrective actions are not successful in the upcoming year.
D)Write action memos to try to correct problems and exploit opportunities.

Question 16

The relationship of annual marketing effort to annual sales revenue is assumed to be an S-shaped curve because the sales response function shows:

A)that when demand diminishes, production costs rise.
B)an additional $1 million of marketing effort results in a far greater increases of sales revenue in the midrange of the curve than at either end.
C)the point at which total revenue and total cost are equal.
D)decreasing costs as a result of marketing economies of scale.

Question 17

Figure: 19-1
According to Figure 19-1,the result of spending an additional $1 million,from $3 million to $4 million,resulted in increased revenues of __________.

A)$20 million
B)$40 million
C)$50 million
D)$70 million

Question 18

In the Canadian telecom market,Bell Canada,Telus,and Rogers Communications have almost 97 percent of the _____________ in the market.

A)market points
B)ownership points
C)share points
D)customer points

Question 19

Sales response functions relate the:

A)expense of marketing effort to primary competitors' spending.
B)expense of marketing effort to marketing results obtained.
C)market share of firm to market share of primary or nearest competitor.
D)incremental costs to market share.

Question 20

Having an exclusive contract with a supplier or customer,or having patented useful technology are considered a(n):

A)distinctive parity
B)sustainable dominance
C)synergistic edge
D)competitive advantage

Question 21

Which of the following pieces of information is used in the implementation phase of the strategic marketing process?

A)Corporate return on investment
B)Organizational charts and job descriptions
C)Revenues associated with each point of market share
D)Trends in past and current revenues for industry and competitors in total and by segment

Question 22

Which of the following pieces of information is used in a SWOT analysis,the first step of the planning phase of the strategic marketing process?

A)Corporate return on investment
B)Market share for the product
C)Revenues associated with each point of market share
D)Trends in past and current revenues for industry and competitors

Question 23

Which of the following output reports is used in the planning phase of the strategic marketing process?

A)Marketing plans that define goals
B)Action memos that tell who is to do what
C)Action memos that tell who is to do what by when
D)Corrective action memos

Question 24

The actions taken in situation (SWOT)analysis,or Step 1 of the planning phase,include: 1)identify industry trends,2)__________,3)assess own company,and 4)research customers.

A)set market and product goals
B)select target markets
C)find points of difference
D)analyze competitors

Question 25

Which of the following pieces of information is used in the second step of the planning phase of the strategic marketing process?

A)Corporate return on investment
B)Market-product grids with ranked targets
C)Revenues associated with each point of market share
D)Trends in past and current revenues for industry and competitors in total and by segment

Question 26

All of the following would be suitable reasons to engage in a merger to create synergies for the larger company,except:

A)observe IT savings
B)employ double the employees than needed
C)expand market reach
D)secure patented technologies

Question 27

Which of the following output reports is used in the implementation phase of the strategic marketing process?

A)Marketing plans that define goals
B)Projections of sales and expenses
C)Action memos that tell who is to do what by when
D)Corrective action memos

Question 28

At which stage in the strategic marketing process would improving marketing ROI be assessed?

A)Planning
B)Assessment
C)Evaluation
D)Measurement

Question 29

Which of the following pieces of information is used in the third step of the planning phase of the strategic marketing process?

A)Corporate return on investment
B)Characteristics and timing of marketing mix actions
C)Revenues associated with each point of market share
D)Trends in past and current revenues for industry and competitors in total and by segment

Question 30

Which of the following pieces of information is used in the second step of the planning phase of the strategic marketing process?

A)Corporate return on investment
B)Market potential studies
C)Revenues associated with each point of market share
D)Trends in past and current revenues for industry and competitors in total and by segment

Question 31

Which of the following output reports is used in the evaluation phase of the strategic marketing process?

A)Marketing plans that define goals
B)Action memos that tell who is to do what
C)Action memos that tell who is to do what by when
D)Corrective action memos

Question 32

Which of the following pieces of information is used in the evaluation phase of the strategic marketing process?

A)Marketing metrics and marketing dashboards
B)Memos assigning responsibilities for actions and deadlines
C)Revenues associated with each point of market share
D)Trends in past and current revenues for industry and competitors in total and by segment

Question 33

Which of the following pieces of information is used in the evaluation phase of the strategic marketing process?

A)Corporate return on investment
B)Tracking reports measuring results of marketing actions
C)Revenues associated with each point of market share
D)Trends in past and current revenues for industry and competitors in total and by segment

Question 34

Which of the following pieces of information is used in a SWOT analysis,the first step of the planning phase of the strategic marketing process?

A)Corporate return on investment
B)Market share for the product
C)Revenues associated with each point of market share
D)Projection of future sales, expenses, and profits

Question 35

Which of the following pieces of information is used in the implementation phase of the strategic marketing process?

A)Corporate return on investment
B)Marketing research reports
C)Revenues associated with each point of market share
D)Trends in past and current revenues for industry and competitors in total and by segment

Question 36

The information needed in situation (SWOT)analysis,Step 1 of the planning phase,includes: 1)trends for industry and competitors and 2)__________

A)projections of future sales, expenses, and profits.
B)market potential studies.
C)positioning studies.
D)market-product grids with targets.

Question 37

As described in the textbook example,all of the following are examples of metrics used by General Mills' Channel Marketing Dashboard,except:

A)Monthly Unit Sales by Channel
B)Percentage of Total Sales Revenues by Channel
C)Average Number of Flavours Carried by Channel
D)Average Number of Sales per Channel

Question 38

All of the following are goals of the marketing ROI concept except:

A)understand marketing spending
B)quantify marketing spending
C)optimize marketing spending
D)reduce marketing spending

Question 39

Which of the following pieces of information is used in the implementation phase of the strategic marketing process?

A)Corporate return on investment
B)Gantt charts
C)Revenues associated with each point of market share
D)Trends in past and current revenues for industry and competitors in total and by segment

Question 40

All of the following are aspects of beneficial synergies that are expected to be generated through the purchase of Shoppers Drug Mart by Loblaw,except:

A)additional scale
B)more staff than needed
C)market coverage
D)operating cost savings

Question 41

The actions taken during market product focus and goal setting,Step 2 of the planning phase,include: 1)set market and product goals,2)select target markets,3)__________,and 4)position the product.

A)identify industry trends
B)find points of difference
C)research customers
D)develop the program's marketing mix

Question 42

The actions taken during market product focus and goal setting,step two of the planning phase,include: 1)set market and product goals,2)select target markets,3)find points of difference,and 4)__________.

A)identify industry trends
B)position the product
C)research customers
D)develop the program's marketing mix

Question 43

The information needed in market product focus and goal setting,Step 2 of the planning phase,includes: 1)__________,2)market-product grids with targets,and 3)positioning studies.

A)market potential studies
B)trends for industry and competitors
C)marketing mix actions
D)detailed plans to execute the marketing program

Question 44

TB Figure: 1
Each phase of the strategic marketing process creates its own unique type of output report.Which of the following would be associated with the planning phase?

A)Marketing plans (or programs) that define goals (with pertinent marketing metrics) and the marketing mix strategies to achieve them.
B)Performance reviews for key personnel.
C)Action memos that tell (1) who is (2) to do what (3) by when.
D)Corrective action memos, triggered by comparing results with plans often using the firm's marketing metrics and dashboards.

Question 45

Setting up an organizational chart would most likely to occur during which phase of the strategic marketing process?

A)planning
B)resourcing
C)implementation
D)assessment

Question 46

The information needed in market product focus and goal setting,Step 2 of the planning phase,includes: 1)market potential studies,2)market-product grids with targets,and 3)__________.

A)trends for industry and competitors
B)marketing mix actions
C)detailed plans to execute the marketing program
D)positioning studies

Question 47

The information needed for the marketing program,Step 3 of the planning phase,includes: 1)__________ and 2)detailed plans to execute the marketing program.

A)positioning studies
B)marketing mix actions
C)market-product grids with targets
D)projections for future sales, expenses, and profits

Question 48

The information used during the evaluation phase of the strategic marketing process includes: 1)__________ and 2)action memos to correct problems,exploit opportunities.

A)positioning studies
B)market-product grids with targets
C)tracking reports to measure results
D)detailed plans to execute the marketing program

Question 49

The information needed for the marketing program,Step 3 of the planning phase,includes: 1)marketing mix actions and 2)__________.

A)positioning studies
B)market-product grids with targets
C)detailed plans to execute the marketing program
D)projections for future sales, expenses, and profits

Question 50

The actions taken during market product focus and goal setting,Step 2 of the planning phase,include: 1)set market and product goals,2)__________,3)find points of difference,and 4)position the product.

A)identify industry trends
B)select target markets
C)research customers
D)develop the program's marketing mix

Question 51

The actions taken during the evaluation phase of the strategic marketing process include: 1)compare results with plans to identify deviations and 2)__________.

A)find points of difference
B)execute the marketing program
C)correct negative deviations; exploit positive ones
D)track sales and revenues and compare with competitors

Question 52

The actions taken during the implementation phase of the strategic marketing process include: 1)__________,2)design marketing organization,3)develop schedules,4)and execute the marketing program.

A)obtain resources
B)select target markets
C)position the product
D)find points of difference

Question 53

A breakdown of the hierarchy of roles,who reports to who,who manages who,and the overall chain of command is referred to as a(n):

A)positioning chart
B)organizational charts
C)people chart
D)arrangement chart

Question 54

The actions taken during the evaluation phase of the strategic marketing process include: 1)__________ and 2)correct negative deviations; exploit positive ones.

A)find points of difference
B)execute the marketing program
C)compare results with plans to identify deviations
D)track sales and revenues and compare with competitors

Question 55

The actions taken during the implementation phase of the strategic marketing process include: 1)obtain resources,2)__________,3)develop schedules,4)and execute the marketing program.

A)select target markets
B)design marketing organization
C)position the product
D)find points of difference

Question 56

The actions taken in the marketing program,Step 3 of the planning phase,include: 1)develop the program's marketing mix and 2)__________.

A)select target markets
B)identify industry trends
C)position the product
D)develop the budget by estimating revenues, expenses, and profits

Question 57

The actions taken during the implementation phase of the strategic marketing process include: 1)obtain resources,2)design marketing organization,3)develop schedules,4)__________.

A)position the product
B)select target markets
C)find points of difference
D)execute the marketing program

Question 58

All of the following are pieces of information used during the implementation phase of the strategic marketing process,except:

A)organizational charts
B)action memos with deadlines
C)marketing research
D)market potential studies

Question 59

The actions taken during the implementation phase of the strategic marketing process include: 1)obtain resources,2)design marketing organization,3)__________,4)and execute the marketing program.

A)develop schedules
B)position the product
C)select target markets
D)find points of difference

Question 60

The actions taken during market product focus and goal setting,Step 2 of the planning phase,include: 1)__________,2)select target markets,3)find points of difference,and 4)position the product.

A)identify industry trends
B)set market and product goals
C)research customers
D)develop the program's marketing mix

Question 61

Based on relative competitive scope (broad target to narrow target)and source of competitive advantage (lower cost to differentiation),Porter's four generic business strategies are differentiation,cost focus,differentiation focus,and:

A)exclusivity.
B)electronic-focus.
C)quality focus.
D)cost leadership.

Question 62

Volkswagen is likely to have which generic business strategy?

A)price leadership
B)diversification
C)quality focus
D)differentiation focus

Question 63

With the exception of such industries as autos,steel,or forest products,most long-range plans cover a period of:

A)6 to 8 months.
B)1 year.
C)2 to 5 years.
D)5 to 10 years.

Question 64

In Porter's generic business strategy shown in Figure 19-4,Campbell Soup is likely to be found in which square?

A)A
B)B
C)C
D)D

Question 65

Farah,who works for Coca-Cola,set next year's sales goal for Diet Coke to increase 3 percent from last year.She then built a plan around this.Farah as created an annual:

A)production estimate
B)sales forecast
C)marketing plan
D)budget projection

Question 66

TB Figure: 1
Referring to TB Figure 1,each phase of the strategic marketing process creates its own unique type of output report.Which of the following would be associated with the evaluation phase?

A)Performance reviews for key personnel.
B)Corrective action memos, triggered by comparing results with plans often using the firm's marketing metrics and dashboards.
C)Sales reports using the firm's product metrics and dashboards.
D)Action memos that tell (1) who is (2) to do what (3) by when.

Question 67

Which type of firm can use a generic business strategy?

A)low-cost producers
B)reseller
C)discount firm
D)any firm regardless of the product or industry

Question 68

The new Chief Marketing Officer at Pepsi outlines her marketing strategy and plan for the next four years.This plan is called a:

A)generic marketing strategy
B)long-range strategic plan
C)marketing strategy
D)long-range marketing plan

Question 69

TB Figure: 1
Referring to TB Figure 1,each phase of the strategic marketing process creates its own unique type of output report.Which of the following would be associated with the implementation phase?

A)Performance reviews for key personnel.
B)Corrective action memos, triggered by comparing results with plans often using the firm's marketing metrics and dashboards.
C)Sales reports using the firm's marketing metrics and dashboards.
D)Action memos that tell (1) who is (2) to do what (3) by when.

Question 70

Figure: 19-4
In Porter's generic business strategy shown in Figure 19-4,quadrant "C" refers to a __________ strategy.

A)quality focus
B)cost leadership
C)differentiation
D)cost focus

Question 71

In Porter's generic business strategy shown in Figure 19-4,quadrant "D" is called __________.

A)quality focus
B)cost leadership
C)differentiation focus
D)cost focus

Question 72

Typically,the _____ marketing plan covers marketing activities over a period of two to five years in the future.The _____ marketing plan,which is highly structured and detailed,is usually developed by a product manager and begins with marketing research and ends after 48 weeks with the approval of the general manager.

A)annual; new product,
B)new product; long-range
C)long-range; new product
D)long-range; annual

Question 73

All of the following would be considered examples of Porter's generic business strategies,except:

A)cost leadership
B)cost focus
C)differentiation
D)specificity

Question 74

IKEA is likely to have which generic business strategy?

A)diversification
B)service leadership
C)quality leadership
D)cost focus

Question 75

A simple strategy: "to be the low-cost provider in our niche market" is an example of a:

A)generic business strategy
B)niche-market strategy
C)low-cost strategy
D)focused business strategy

Question 76

Walmart uses which type of generic business strategy?

A)differentiation focus
B)cost focus
C)differentiation
D)cost leadership

Question 77

Based on relative competitive scope (broad target to narrow target)and source of competitive advantage (lower cost to differentiation),Porter's four generic business strategies are cost leadership,cost focus,differentiation focus,and:

A)service leadership.
B)diversification.
C)reactive.
D)differentiation.

Question 78

Long-range marketing plans:

A)sequence the details of day-to-day activities dealing with the implementation of a product strategy in the strategic marketing process.
B)deal with marketing goals and strategies for a product, product line, or entire firm for a single year.
C)predict anticipated revenue for each year during a two to five year period.
D)cover marketing activities from two to five years into the future.

Question 79

A new manager at Whirlpool creates a plan for each major product line (large appliance and small appliance)to execute in the following year.This plan is likely a(n):

A)short term plan
B)annual marketing plan
C)product line plan
D)recurring marketing plan

Question 80

All of the following statements about cost leadership strategy are true,except:

A)Cost focus strategy requires reducing expenses to lower the price of the items sold in a relatively broad array of market segments.
B)Significant investments in capital equipment may be necessary to improve the production or distribution process to give low unit costs.
C)The cost leader still must have adequate quality levels.
D)Walmart's sophisticated systems of regional warehouses and electronic data interchange with suppliers have led to huge cost savings.