Deck 2: Strategic Market Planning: Taking the Big Picture

Question 1

The first step in strategic planning is to ________.

A)allocate resources to the company's various SBUs
B)recruit and hire the right personnel
C)develop a mission for the total corporation
D)examine historical data
E)establish the corporation's long-term objectives

Answer 1

C

Question 2

Functional planning typically includes ________.

A)a broad five-year plan supporting the company's strategic plan
B)detailed annual plan for the marketing department
C)specific metrics to monitor performance
D)A,B and C
E)A and B

Answer 2

E

Question 3

________ focuses on day-to-day execution and includes annual,semi-annual or ________ plans.

A)Operational planning; quarterly
B)Functional planning; daily
C)Tactical planning; daily
D)Strategic planning; quarterly
E)Business planning; five-year

Answer 3

A

Question 4

________ are areas of business within a firm that are each different enough to have their own mission,business objectives,resources,managers and competitors.

A)Competitive intelligence units
B)Standard business units
C)Strategic business units
D)Market penetration units
E)Market development units

Question 5

A business plan ________.

A)is a set of managerial guidelines used only to match resources and needs
B)is sometimes called a tactical plan
C)includes the decisions that guide the entire organisation or its business units
D)is a document that describes the marketing environment
E)is another name for a SWOT analysis

Question 6

Which of the following actions would not be a part of a marketing plan?

A)Description of the marketing environment
B)Assurance the firm has a strong monopoly in the industry
C)Outline of marketing strategies
D)Details as to how marketing strategies will be implemented
E)Details as to how marketing strategies will be monitored and controlled

Question 7

________ is the managerial decision process that matches the organisation's resources and capabilities to its market opportunities for long-term growth.

A)Functional planning
B)Operational planning
C)Portfolio analysis
D)SWOT analysis
E)Strategic planning

Question 8

The acronym SBU stands for ________.

A)standard business units
B)strategy buying utilities
C)successful business utilities
D)successful business units
E)strategic business units

Question 9

Strategic objectives must ________.

A)be realistic
B)be specific
C)include a time frame
D)be measurable
E)All of the above

Question 10

The functional planning that is done in the marketing department is referred to as ________.

A)strategic planning
B)marketing planning
C)operational planning
D)tactical planning
E)marketing research

Question 11

Determining monthly sales quotas and the number of television commercials to be aired per television channel over the next six months are part of ________.

A)strategic implementation
B)tactical implementation
C)operational planning
D)strategic planning
E)tactical planning

Question 12

The second step in strategic planning is to ________.

A)evaluate the internal and external environments
B)establish the corporation's long-term objectives
C)develop a mission for the total corporation
D)examine historical data
E)recruit and hire the right personnel

Question 13

Which of the following questions would a company's top management seek to answer when defining their mission?

A)What customers should we serve?
B)How should we focus the company's efforts?
C)How should we develop the company's capabilities?
D)What business are we in?
E)All of the above

Question 14

Business planning ________.

A)is only necessary in large organisations
B)identifies and builds on the firm's strengths,and helps managers at all levels to make informed decisions
C)will be based only on the economy of the world
D)is a phrase that really has no meaning
E)will cause management to deal with only current planning issues

Question 15

A/n ________ describes the marketing environment,outlines the marketing objectives and strategies and identifies how the strategies will be implemented,monitored and controlled.

A)business unit plan
B)operational business plan
C)strategic operational plan
D)business plan
E)marketing plan

Question 16

Functional planning is sometimes called ________ planning.

A)long-term
B)operational
C)strategic
D)hierarchical
E)tactical

Question 17

A/n ________ is a formal document outlining the company's overall purpose and what it hopes to achieve in terms of its customers,products and resources.

A)strategic purpose statement
B)operational charter
C)strategic intention statement
D)operational statement
E)mission statement

Question 18

Strategic planning for large firms such as Telstra or Woolworths probably occurs ________.

A)only in its corporate headquarters
B)at both the overall corporate level and at the individual business unit level
C)at the location best suited for this function based upon findings of the SWOT analysis
D)on an as needed basis based upon the success of the division
E)only at the individual business unit level

Question 19

Which of the following types of managers would be most likely to engage in operational planning on a daily basis?

A)The company's sales manager
B)The company's vice-president of human resources
C)The company's director of product research and development
D)The company chief executive officer
E)The company's chief financial officer

Question 20

The ideal mission statement should not be too ________,narrow or ________.

A)broad; short-sighted
B)broad; specific
C)out-dated; specific
D)detailed; out-dated
E)specific; short-sighted

Question 21

Which of the following are considered when conducting a PEST analysis?

A)Technological threats
B)Sociocultural opportunities
C)Political threats
D)Economic opportunities
E)All of the above

Question 22

Which of the following generate large revenues but also require large amounts of funding to keep up with production and promotion demands?

A)Question marks
B)Stars
C)Exclamation points
D)Cash cows
E)Dogs

Question 23

According to the BCG growth-share matrix,________ are strategic business units with products that have low market share in fast-growth markets.

A)question marks
B)exclamation points
C)stars
D)dogs
E)cash cows

Question 24

The product-market growth matrix ________.

A)graphically illustrates whether a manager should use personal marketing communications or mass-marketing communications
B)provides managers with four different fundamental marketing strategies-market penetration,market development,product development,and diversification
C)helps top management identify and label their various SBUs
D)is a graphic illustration of what tactics should be used within a marketing strategy for products at different growth stages
E)lists strengths,weaknesses,opportunities and threats that can impede the growth of a market

Question 25

According to the BCG growth-share matrix,________ are strategic business units with products that have dominant market share in high-growth markets.

A)exclamation points
B)question marks
C)stars
D)cash cows
E)problem children

Question 26

A consumer intends to purchase one box of a particular product but decides to purchase two in order to get the third box free.

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

Question 27

The external environment of an organisation identifies its ________,which are generally ________.

A)weaknesses and threats; semi-controllable
B)opportunities and threats; uncontrollable
C)strengths and threats; controllable
D)strengths and weaknesses; controllable
E)strengths and opportunities; controllable

Question 28

Each year,the company asks department managers to rate their department's strengths and weaknesses as well as those of the other departments with which the department interacts.

A)SWOT analysis
B)compatibility assessment
C)functional planning session
D)value chain
E)portfolio analysis

Question 29

There are ________ categories within the BCG growth-share matrix to designate business units that fall within a certain range for market growth rate and market share.

A)four
B)three
C)two
D)five
E)six

Question 30

A ________ is a tool used by management to assess the potential of a firm's products or businesses.

A)value chain
B)SWOT analysis
C)situational analysis
D)compatibility assessment
E)portfolio analysis

Question 31

The growth-market share matrix developed by the Boston Consulting Group (BCG)is a type of ________.

A)SWOT analysis
B)situational analysis
C)value chain
D)portfolio analysis
E)compatibility assessment

Question 32

Which of the following enjoys a high market share and can be sustained with minimal funding?

A)Cash cows
B)Exclamation points
C)Stars
D)Question marks
E)Dogs

Question 33

Companies often choose to sell off ________ to smaller companies or close down the SBU altogether?

A)dogs
B)stars
C)exclamation points
D)cash cows
E)question marks

Question 34

Which of the following form part of a company's external environment?

A)Competitors
B)Consumers
C)Trends in popular culture
D)Governments
E)All of the above

Question 35

According to the BCG growth-share matrix,________ are strategic business units with products having small shares of slow-growth markets.

A)exclamation points
B)cash cows
C)dogs
D)question marks
E)stars

Question 36

According to the BCG growth-share matrix,________ are strategic business units with products that have dominant market share in low-growth markets.

A)stars
B)question marks
C)dogs
D)cash cows
E)exclamation points

Question 37

Which of the following is not part of a company's internal environment?

A)The company's procedures and how these influence its operations
B)The company's senior management
C)The company's facilities
D)The company's employees
E)All of the above are part of a company's internal environment.

Question 38

The internal environment of an organisation identifies its ________,which are ________.

A)strengths and threats; long term
B)opportunities and threats; uncontrollable
C)weaknesses and threats; uncontrollable
D)strengths and weaknesses; controllable
E)strengths and opportunities; controllable

Question 39

To be effective,objectives need to be ________.

A)specific,measurable and attainable
B)directive,aspirational and competitive
C)broad,measurable and aspirational
D)precise,short term and competitive
E)competitive,broad and measurable

Question 40

Managers use SWOT analysis to ________.

A)implement strategic plans
B)assess their company's internal and external environments
C)gauge responses to advertising campaigns
D)create cross-functional teams
E)select channels of distribution for their products

Question 41

In April,Columbia Sportswear introduced a new line of comfortable,lightweight clothing for people who fish.

A)operational planning
B)brand competition
C)business planning
D)strategic planning
E)product competition

Question 42

A company that specialises in producing canned fruits and vegetables opens a division selling office equipment.

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

Question 43

A marketing plan for an amusement park would include ________.

A)marketing objectives such as 'to increase local attendance by 20%'
B)marketing research data on the travel plans of its target audience as one element of its marketing environment
C)a list of who will be responsible for implementing each part of its marketing strategy
D)the outline for a market development strategy
E)All of the above

Question 44

The ________ for eBay.

A)marketing objectives
B)strategic plans
C)strategic objectives
D)mission statement
E)functional plans

Question 45

Serengeti makes lightweight sunglasses with 100% UV protection for people who love the outdoors.

A)threats
B)opportunities
C)functional planning
D)strengths
E)weaknesses

Question 46

The Disney Picture Unit of the Disney Corporation focuses on family films and animated features.

A)problem child
B)cash cow
C)star
D)question mark
E)dog

Question 47

If Xerox had continued to define its ________ in terms of just producing copy machines instead of providing 'document solutions' the shift to electronic documents would have left them in serious trouble.

A)mission
B)external environment
C)business plan
D)portfolio analysis
E)SWOT analysis

Question 48

Biopure is a company that manufactures and markets oxygen therapeutics.

A)A competitor developing a similar product
B)The patented manufacturing process that it uses to produce Hemopure and Oxyglobin
C)Approval by appropriate government agencies to allow veterinarians to use Oxyglobin
D)None of the above
E)All of the above

Question 49

Archetype is a Unilever SBU that markets a number of different tea brands around the world.

A)A shortage of tea leaves due to unusual weather conditions
B)The marketing campaigns Archetype conducts in each country
C)Increased competition from a local tea producer
D)Changes in the way people drink tea
E)Government regulations of information on package labels

Question 50

________ emphasise/s both new products and new markets to achieve growth.

A)Diversification strategies
B)Market penetration strategies
C)Strategic planning
D)Operations planning
E)Monopolistic competition

Question 51

Continental Soup runs a series of commercials encouraging consumers who eat soup regularly to purchase their soup rather than competitor Campbell's soups.

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

Question 52

Business planning is an intermittent process of making decisions that guide the firm in both the short and the long term.

Question 53

Bug b Gone knows regular pest control is not a priority for homeowners who tend to call only when they notice a major problem.

A)functional
B)strategic
C)operational
D)qualitative
E)hierarchical

Question 54

The company has a wide product line,including two-way radios,but with the growth of handheld communications devices such as mobile phones,it has seen the two-way radio market gradually reduce.

A)stars
B)problem children
C)cash cows
D)question marks
E)dogs

Question 55

The John Hancock Company specialises in printing personal and business cheques,but it also owns Hancock Analytics,a technology company that produces software that enables banks to gauge the behaviour of their customers by tracking their spending habits.

A)target markets
B)strategic alliances
C)strategic business units
D)operational units
E)micromarketing

Question 56

Serengeti makes lightweight sunglasses with 100% UV protection for people who love the outdoors.

A)weakness
B)strength
C)opportunity
D)threat
E)corporate culture

Question 57

A company that has been selling its products in Australia and New Zealand decides to expand into Asia,offering the same products as it does in Australia and New Zealand.

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

Question 58

Unilever makes Rexona deodorant,with the product securing a large share of world sales.

A)star
B)question mark
C)problem child
D)cash cow
E)dog

Question 59

The Coca-Cola Company decides to add raspberry flavoured Coke and lemon flavoured Diet Coke to its regular product line.

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

Question 60

Archetype is a Unilever SBU that markets a number of different tea brands around the world with each type specifically addressing the tastes of local tea drinkers.

A)A threat
B)Its mission statement
C)A strength
D)A weakness
E)An opportunity

Question 61

Opportunities and threats come from a company's internal environment.

Question 62

Explain the components of a SWOT analysis and how marketers can use SWOT analysis.Conduct a SWOT analysis for an organisation of your choice.

Question 63

Strategic planning at the corporate level requires the development of a mission statement.

Question 64

Companies conduct a comprehensive analysis of the marketing environment as part of their marketing planning process.

Question 65

Tactical planning is sometimes called functional planning.

Question 66

Companies are following a market penetration strategy when they sell new products in new markets.

Question 67

Strategic business units (SBUs)are individual units representing different areas of business within the firm that are each different enough to have their own mission,business objectives,resources,managers,and competitors.

Question 68

A company's strategic plan specifies only how the company is to reach its marketing objectives.

Question 69

Managers can use the Boston Consulting Group growth-market share matrix to determine the potential of a firm's existing products to generate cash needed to invest in new products.

Question 70

Employee morale,promotion strategies,and competitors' reactions are all examples of a company's internal environment.

Question 71

SWOT stands for strengths,willingness,opportunities,and threats.

Question 72

Movie production companies are following a market penetration strategy when they re-release movie classics to theatres to give fans a chance to see them again.

Question 73

A company that is the leading distributor of building materials in the high-growth building industry in a particular country would be an example of a cash cow.

Question 74

A manager's decision to run a quarter-page advertisement in the business section of the local newspaper is an example of an operational plan.

Question 75

Explain the three levels of business planning using the example of McDonalds.

Question 76

A company is following a market development strategy when it adds a new line of chocolate body paint to its existing line of chocolate bars and boxed chocolates.

Question 77

Middle-level management is usually responsible for strategic planning.

Question 78

A good mission statement for a mattress manufacturer would be 'we make mattresses for people to sleep on' rather than 'creating sleep systems that promote good health and longevity'.

Question 79

Marketers using the BCG growth-market share matrix sometimes refer to question marks as problem children.

Question 80

Effective objectives meet the SMART criteria by being specific,meaningful,attractive,realistic,and having a time frame.