Deck 2: Strategic Planning

Question 1

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

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

Answer 1

A

Question 2

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

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

Answer 2

A

Question 3

What is the overall purpose of a marketing plan?

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

Answer 3

D

Question 4

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

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

Question 5

The five key components of the marketing plan are

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

Question 6

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

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

Question 7

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

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

Question 8

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

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

Question 9

How often should firms undertake the task of strategic planning?

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

Question 10

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

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

Question 11

The process of thoughtfully defining a firm's objectives and developing a method for achieving those objectives is called

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

Question 12

Read the following statements regarding strategic planning to determine which is not accurate.

A)Strategic planning can be used on a personal level to help accomplish goals.
B)The strategic plan is shaped by the organization's mission.
C)Strategic planning is a one-time process completed when a firm outlines its objectives.
D)Strategic planning can greatly increase the likelihood of success.
E)Strategic planning helps ensure marketers will select the right marketing mix strategies.

Question 13

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

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

Question 14

A good mission statement should be oriented around the

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

Question 15

A good mission statement should

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

Question 16

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

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

Question 17

The situation analysis is composed of which three subsections?

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

Question 18

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

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

Question 19

What part of the financial section of a marketing plan provides readers of the plan a bottom-line estimate of the organization's profitability?

A)the cost detail
B)the accounting detail
C)the accounting projections
D)the profit estimates
E)the financial projections

Question 20

Gavin wants to perform a situation analysis of his business to help him make strategic decisions for the future.The situation analysis will tell Gavin all of the following

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

Question 21

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

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

Question 22

Read the following to determine which one accurately depicts what is contained in an expense forecast.

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

Question 23

Which of the following products would most likely be considered a dog?

A)e-reader
B)iPod
C)laptop
D)microwave oven
E)compact disc

Question 24

Joe's Pizza Parlor is a late-night pizza and sandwich shop located on a college campus.Joe recently conducted a SWOT analysis.Compare each of the following to determine which one is a weakness for Joe's Pizza Parlor.

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

Question 25

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

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

Question 26

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

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

Question 27

Travis has an athletic shoe store and is currently preparing a market summary.To be most effective,the competition section of his market summary should

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

Question 28

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

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

Question 29

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

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

Question 30

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

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

Question 31

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

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

Question 32

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

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

Question 33

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

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

Question 34

The final section in most marketing plans is the

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

Question 35

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

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

Question 36

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

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

Question 37

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

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

Question 38

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

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

Question 39

The internal considerations in a SWOT analysis are

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

Question 40

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

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

Question 41

Which of the following makes up the vast majority of U.S.exporters?

A)Walmart
B)the top three largest U.S.firms
C)multinational corporations
D)small companies
E)Fortune 500 companies

Question 42

Selling domestically produced products to foreign markets is called

A)countertrade.
B)franchising.
C)licensing.
D)exporting.
E)international marketing.

Question 43

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

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

Question 44

As a marketing strategy,what is diversification?

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

Question 45

Which element of the marketing mix includes the distribution activities necessary to get the product in the hands of the customer?

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

Question 46

Which of the following is not one of the five major strategic options for entering the international marketplace?

A)direct ownership
B)exporting
C)capital investment
D)licensing
E)franchising

Question 47

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

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

Question 48

Which of the following best describes a market development strategy?

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

Question 49

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

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

Question 50

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

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

Question 51

A legal process in which one firm pays to use or distribute another firm's resources,including products,trademarks,patents,intellectual property,or other proprietary knowledge is called

A)franchising.
B)contract manufacturing.
C)licensing.
D)joint venture.
E)branding.

Question 52

Which marketing strategy would Krispy Kreme doughnuts be using if it decided to begin selling its doughnuts in Mexico for the first time?

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

Question 53

Typically the least risky option for entering international markets is

A)licensing.
B)exporting.
C)direct ownership.
D)franchising.
E)joint venturE.

Question 54

If Geico Insurance began selling t-shirts featuring its infamous gecko to try to capitalize on its brand name,this would be an example of

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

Question 55

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

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

Question 56

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

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

Question 57

Which of the following is not one of the four basic categories of marketing growth strategies?

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

Question 58

A recent survey conducted by U.S.News and World Report on the best overall hybrid car,ranked the Ford Fusion Hybrid as one of the best hybrid cars for the money.For Ford,this represents

A)product control.
B)a competitive advantage.
C)a core benefit.
D)marketing tactics.
E)a value edgE.

Question 59

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

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

Question 60

When the makers of V8 vegetable juice noticed that sales of its original product were stabilizing,they decided to offer a new product,one that offered a full serving of vegetables and a full serving of fruit.They called the product V8 V-Fusion and they marketed it to their original V8 customers in hopes of increasing sales.This is an example of what kind of marketing strategy?

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

Question 61

What measure allows marketers to analyze the success of specific products and regions to pinpoint what is working and what is not?

A)gross margin
B)profit margin
C)revenue analysis
D)return on marketing investment
E)marketing expenditures

Question 62

What term is used for the positive gain from a business operation after all of the expenses have been subtracted?

A)gross margin
B)total sales
C)revenue
D)profit
E)earnings

Question 63

Why is franchising an attractive method of entering a foreign market?

A)because there are very few risks involved in franchising
B)because the franchisor has no liability if the business fails
C)because the franchisee has no liability if the business fails
D)because the franchisor does not have to put up any capital to get the business off the ground
E)because the franchisee assumes the majority of the capital costs and human resource issues

Question 64

When a big name retailer decides to open a manufacturing plant overseas,this is an example of

A)licensing.
B)direct ownership.
C)contract manufacturing.
D)a joint venture.
E)exporting.

Question 65

According to your text,which of the following is a reason why the use of licensing to enter international markets has increased significantly in recent years?

A)longer product life cycles
B)increased viewership of sporting events
C)less regulation
D)rising research and development costs
E)greater profit margins

Question 66

Which marketing analytics tool is used to measure the percentage of total market sales captured by a brand,product,or firm?

A)market share analysis
B)profitability analysis
C)gross margin
D)return on marketing investment
E)revenue analysis

Question 67

For a fee,Hadad can open a Subway shop in his hometown of Beirut.The parent company has agreed to let Hadad use its company name and will give him marketing and operational support.What type of arrangement is this?

A)joint venture
B)contract manufacturing
C)licensing
D)direct ownership
E)franchising

Question 68

Which method of entering a foreign market has a domestic firm actively managing a foreign company or overseas facility?

A)joint venture
B)licensing
C)exporting
D)direct ownership
E)contract manufacturing

Question 69

Which method of entering a foreign market carries with it the most risk?

A)direct ownership
B)exporting
C)licensing
D)joint venture
E)contract manufacturing

Question 70

To be most effective,market share data should be analyzed

A)along with historical sales datA.
B)relative to marketing expenditures.
C)relative to revenue and profitability.
D)along with gross margin.
E)in isolation,apart from other measurements.

Question 71

The practice of measuring,managing,and analyzing marketing performance is referred to as

A)diversification.
B)marketing analytics.
C)situation analysis.
D)positioning.
E)market segmentation.

Question 72

Which form of entering a foreign market requires the greatest commitment?

A)exporting
B)licensing
C)joint venture
D)contract manufacturing
E)direct ownership

Question 73

Which of the following analytics is a measure of actual revenue relative to the objectives of the organization?

A)profit analysis
B)revenue analysis
C)sales analysis
D)gross margin
E)profit margin

Question 74

The measure of a firm's effectiveness in using the resources allocated to its marketing effort is called

A)return on marketing investment.
B)gross expenditures.
C)market share analysis.
D)marketing revenue analysis.
E)gross margin.

Question 75

Which of the following is a risk of licensing in an international market?

A)The licensor may create its own competition.
B)The licensor has to pay the licensee money to enter the arrangement.
C)The licensor may misuse trademarks.
D)The licensor doesn't know enough about the branD.
E)Locally owned licensees don't know much about the local customers.

Question 76

An arrangement in which a domestic firm partners with a foreign company to create a new entity,thus allowing the domestic firm to enter the foreign company's market,is known as

A)a joint venture.
B)direct ownership.
C)exporting.
D)licensing.
E)contract manufacturing.

Question 77

Review the following statements to determine which one is not accurate regarding the direct ownership method of entering a foreign market.

A)Direct ownership requires more commitment than any other method of entering a foreign market.
B)Direct ownership does not allow the firm much control over its intellectual property.
C)Direct ownership is a good option when there is very little political risk.
D)Direct ownership is a good option when there are similarities between the foreign and domestic cultures.
E)Direct ownership is the riskiest method of entering a foreign market.

Question 78

Marketing expenditures are used in calculating

A)frequency and reach.
B)market share analysis.
C)revenue analysis.
D)gross margin.
E)return on marketing investment.

Question 79

Daryl recently took a marketing job with a new firm.His first order of business is to find out how his new company performs relative to its competitors.Which of the following would Daryl use to do this?

A)revenue analysis
B)gross margin
C)market share analysis
D)profitability analysis
E)return on marketing investment

Question 80

Compare each of the following to determine which one accurately describes a joint venture.

A)a contractual arrangement in which a fee is paid to have the right to open a business using the parent company's business name and to receive marketing and operational support
B)an arrangement where a domestic firm partners with a foreign company to create a new entity,thus allowing the domestic firm to enter the foreign company's market
C)a legal process in which one firm pays to use or distribute another firm's resources,including products,trademarks,patents,intellectual property,or other proprietary knowledge
D)a contractual arrangement where a foreign firm agrees to manufacture products for a domestic firm
E)an arrangement in which a domestic firm actively manages a foreign company or overseas facilities