Deck 1: Strategic Planning and the Marketing Management Process

Question 1

Zest Sports Inc.manufactures sports goods and recently introduced a new line of sportswear for children between the ages of seven and ten years.The marketing team envisions an entirely new marketing strategy to create exchange for its new line of sportswear.This best exemplifies _____.

A)service marketing
B)product marketing
C)cause marketing
D)place marketing

Answer 1

B

Question 2

Which of the following is the principle task of an organization with a market orientation?

A)To manipulate customers to do what suits its interests
B)To focus on making products and then trying to sell them to customers
C)To find effective and efficient means to satisfy the interests of customers
D)To ensure that employees come first in organizational decision making

Answer 2

C

Question 3

Formulating a strategy based on distinctive competencies provides an organization with a unique benefit that allows it to _____.

A)gain advantage over its competitors
B)retain its product-oriented focus for growth
C)rely on the critical characteristics and events of the past
D)focus on selling rather than on customer satisfaction

Answer 3

A

Question 4

_____ includes all the activities that lead to the development of a clear organizational mission,organizational objectives,and appropriate strategies to achieve the objectives for an entire organization.

A)Marketing mix
B)Marketing planning
C)Strategic planning
D)Marketing concept

Question 5

Mealtimes was started as a fine-dining restaurant serving the most exotic European dishes in the city.The meals ran into several courses,and the restaurant was frequented by people looking for a fancy and leisurely meal.However,with changing times and needs of consumers,the restaurant altered its offerings to incorporate fast food like pizzas,burgers,and hot dogs.The company had to venture into new and different markets to maintain profitability.These new conditions and a redundant mission statement would most likely make the restaurant a _____.

A)matrix organization
B)static organization
C)drifting organization
D)multidomestic organization

Question 6

Which of the following changes in an organization's environment will most likely result in the organization becoming a drifting organization?

A)The organization hires new management executives who are expected to uphold and maintain its mission.
B)The organization has started manufacturing low-cost products as opposed to the luxury products that were a part of its original plan.
C)The organization has successful operations in ten different countries and has decided to open market in two additional countries.
D)The organization has decided to promote efficient employees who adhere to its mission statement instead of hiring managers.

Question 7

According to the marketing concept,the customer will be more satisfied and the firm will be more profitable when the:

A)organizations and customers have a long-term relationship.
B)organization's marketing process is solely product-oriented.
C)products are advertised frequently but have no clear target markets.
D)firm operates primarily through a selling orientation in the market.

Question 8

The things that an organization does so well that they give it an advantage over similar organizations represent that organization's _____.

A)competitive parity
B)distinctive competencies
C)external opportunities
D)vendor analysis variables

Question 9

Midas Corporation is a sporting goods manufacturer.Most of its energies and resources are devoted to manufacturing and selling a line of sports shoes that has been a reasonable hit in the past.The company rarely undertakes any marketing research studies to assess consumer wants and needs and seldom devises new advertising or promotional strategies.Midas Corporation is exhibiting _____.

A)investor orientation
B)market orientation
C)customer orientation
D)production orientation

Question 10

The purpose of the marketing concept is to rivet the attention of organizations on serving _____.

A)supplier needs and wants
B)employee needs and wants
C)management needs and wants
D)customer needs and wants

Question 11

The Helen Mortimer Foundation is a nonprofit organization that develops marketing strategies to encourage people to stop smoking in an effort to reduce the incidence of lung cancer.This best exemplifies marketing for a(n)_____.

A)organization
B)person
C)cause
D)service

Question 12

Run for the Cure is an annual marathon that raises money for conducting research on breast cancer.Marketers advertise through local media to attract participants and volunteers for the event.Which of the following types of marketing is depicted in this scenario?

A)Place marketing
B)Product marketing
C)Organization marketing
D)Service marketing

Question 13

Which of the following defines the direction in which an organization is heading and is typically determined in the first stage of strategic planning?

A)Mission statement
B)Employee manual
C)Annual plan
D)Code of ethics

Question 14

The crux of the marketing concept is focusing on building long-term _____ in which an initial sale is only an early step in the relationship,not an end goal.

A)mass marketing strategies
B)product-oriented teams
C)research capabilities
D)customer relationships

Question 15

Which of the following is a difference between an organization with market orientation and an organization with production orientation in terms of interest in innovation?

A)An organization with market orientation sells what it can make and does not focus on innovation,whereas an organization with production orientation makes what it can sell and focuses on innovation.
B)An organization with market orientation keeps costs as low as possible,whereas an organization with production orientation eliminates costs that do not give value to the customer.
C)The focus of an organization with market orientation is on locating new opportunities,whereas the focus of an organization with production orientation is on technology and cost cutting.
D)The focus of an organization with market orientation is on determining customer reaction,whereas the focus of an organization with production orientation is determining customer needs.

Question 16

When completed,an effective mission statement will be primarily focused on the:

A)markets rather than the products.
B)internal problems of the organization.
C)product that the organization is offering.
D)narrow class of employee needs.

Question 17

An organization's mission,objectives,strategies,and portfolio plan are the four major components of its _____.

A)marketing mix
B)cooperative environment
C)strategic plan
D)code of ethics

Question 18

Emergo International Company conducts market research to find out the interests and needs of its customers.Based on the research reports,the organization devises plans to meet the customers' needs and wants and manufactures products that are useful to them.Identify the marketing concept that Emergo International Company has adopted.

A)Production orientation
B)Market orientation
C)The BCG model
D)The GE model

Question 19

Run with Scissors Inc. ,a hair salon,advertises its trendy and affordable offerings primarily through the use of social media.The type of strategy the hair salon uses can best be classified as marketing for a(n)_____.

A)product
B)service
C)cause
D)organization

Question 20

Which of the following is the first component of a strategic plan?

A)Organizational objectives
B)Organizational strategies
C)Organizational mission
D)Organizational portfolio plan

Question 21

Chello Inc. ,a large smartphone manufacturing company,has been selling the world's cheapest smartphone,Zing.Recently,to increase its sales,Chello reduced the price of the phone even further.The marketing slogan for the Zing series is "The cheapest way to get smart." Chello Inc.is most likely using a _____ in this scenario.

A)product diversification strategy
B)market penetration strategy
C)product development strategy
D)market integration strategy

Question 22

An organization's mission statement is described as not ruling out any opportunity management might wish to pursue.This mission statement is most likely to be _____.

A)too distinctive
B)incomplete
C)too broad
D)too specific

Question 23

Which of the following statements is true of organizational objectives?

A)Organizational objectives should reflect the organization's finances rather than its commitment to customers.
B)Organizational objectives are not considered to be dominant necessities to carry out the organizational mission.
C)Organizational objectives are specific,measurable,action commitments on the part of the organization.
D)Organizational objectives are distilled to arrive at a specific and achievable organization mission.

Question 24

In determining its mission statement,an organization must:

A)look at the business from the inside,from the point of view of the employee and the management.
B)ensure that the name of the product or service it is producing is an essential part of its name.
C)reflect a market-driven approach by targeting a broad class of needs that it is seeking to satisfy.
D)state the mission in terms of serving a generic group of clients or customers and meeting generic,not specific,needs.

Question 25

A company has the following organizational objective: "To maintain levels of employee satisfaction consistent with our own and similar industries." Such an objective most likely focuses on which of the following areas of performance?

A)Market standing
B)Worker performance and attitude
C)Manager performance and responsibility
D)Productivity

Question 26

Winter Head is a firm that manufactures woolen blankets.The manufacturer claims that its blankets are made from the softest wool and are so finely stitched that consumers want to include them in their inheritance.The company is proud of its product quality and formulates its mission statement based on it.What is potentially wrong with such a mission statement?

A)The firm had an external focus.
B)The firm focused on the market for its high-quality products.
C)The firm focused on the product rather than on its market.
D)The firm defined the company in terms of its marketing capabilities.

Question 27

Beryl Toys makes toys for children of ages three and above,while Lobster-Price makes toys for infants.In 1999,Beryl Toys acquired Lobster-Price for $1.1 billion.This acquisition gave Beryl Toys a new product line aimed at the younger siblings of its current target market.In this scenario,Beryl Toys has most likely implemented a _____ strategy.

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

Question 28

An organization's mission statement must be _____ to be able to provide direction and guidelines to management when they are choosing between alternative courses of action.

A)challenging
B)broad
C)generic
D)specific

Question 29

Hilton Brews is a company producing instant mixes for all kinds of beverages.It notices that the market for tea has risen due to its potential health benefits.Therefore,Hilton Brews introduces a new line of organically grown and processed teas like green tea or tea with various herb extracts and additional antioxidants.Which of the following organizational growth strategies has been used by Hilton Brews?

A)Product development
B)Diversification
C)Market penetration
D)Market development

Question 30

Which of the following statements about an organization's mission statement is true?

A)Even though no one denies the importance of the mission statement,it is the least used of all the management tools.
B)An effective mission statement takes an internal organizational focus.
C)It should focus on the physical product or service that the organization is offering at present.
D)It should focus on the broad class of needs that the organization is seeking to satisfy.

Question 31

It is important for a mission statement to be _____ because it provides a shared sense of purpose outside the various activities taking place within the organization.

A)internally focused
B)product oriented
C)motivational
D)generic

Question 32

Identify the accurate statement regarding an effective mission statement.

A)It should focus on the physical product that the organization is offering at present,not on the external forces that the organization is seeking to satisfy.
B)It should focus on public relations as its primary purpose.
C)It should not consider the critical characteristics and events of the past.
D)It should provide guidance to employees and managers in geographically dispersed units.

Question 33

XtraTorque Inc.is a leading engine oil manufacturer in the United States.The company manufactures oil that can withstand a broader range of temperature than any other engine oil brands available in the market.The company plans to expand its business into the Russian market because its product can maintain fluidity even at low temperatures.Which of the following organizational strategies should XtraTorque Inc.adopt?

A)Market penetration strategy
B)Market differentiation strategy
C)Diversification strategy
D)Market development strategy

Question 34

The mission statement of an organization should primarily have a(n)_____.

A)product focus
B)external focus
C)internal focus
D)selling focus

Question 35

A product development strategy:

A)involves creating new products for customers not currently being served.
B)offers a new and improved version of an existing product to its present customers.
C)involves merely introducing a product to a new market.
D)deals with developing a production plan for a product.

Question 36

Market development strategies involve:

A)increasing the sale of existing products to present customers.
B)finding new customers for an organization's present products.
C)directing new products to present customers.
D)leading an organization into entirely new and unrelated businesses.

Question 37

Which of the following organizational growth strategies aims to find new customers for its present products?

A)Customer retention strategy
B)Product differentiation strategy
C)Market development strategy
D)Market penetration strategy

Question 38

A diversification strategy involves:

A)marketing new products to an existing customer base.
B)seeking new customers for existing products.
C)increasing the sale of present products to present customers.
D)seeking new products for customers not currently being served.

Question 39

Which of the following statements is true regarding market penetration strategies?

A)They involve the creation of new products for a market.
B)They involve encouraging present customers to purchase more of a product.
C)They involve diversifying into an unrelated business.
D)They involve marketing to new customers.

Question 40

In the context of strategic planning,_____ must be specific,measurable,action commitments by which the mission of the organization is to be achieved.

A)the organizational portfolio plan
B)organizational strategies
C)organizational objectives
D)the organizational mission

Question 41

_____ are methods used to determine how resources should be allocated among the various strategic business units (SBUs)in an organization.

A)Portfolio models
B)Matrix models
C)Variable models
D)Vector models

Question 42

The _____ for a soft drink manufacturer would include other manufacturers of soft drinks,fruit juices,bottled water,sports drinks,caffeine-free colas,and dairy beverages.

A)competitive environment
B)technological environment
C)cooperative environment
D)economic environment

Question 43

The cooperative environment includes:

A)all firms and individuals who have a vested interest in accomplishing the firm's objectives.
B)primarily other firms in the industry that rival the organization for both resources and sales.
C)the attitudes and reactions of the general public and social and business critics.
D)the marketing department's past,present,and future situations.

Question 44

Which of the following statements is true according to the model developed by Michael Porter for formulating organizational strategy?

A)Firms should first analyze their industry and then develop a cost leadership strategy or a strategy based on differentiation.
B)Firms should first analyze their market and then develop a strategy based on association.
C)Firms should develop alternative portfolio models to incorporate information about market opportunities and competitive positions.
D)Firms must continually strive to be the cost follower in the industry or market segment they compete in.

Question 45

In the context of situational analysis,the _____ includes the attitudes and reactions of the general public,social and business critics,and other organizations,such as the Better Business Bureau.

A)competitive environment
B)political environment
C)social environment
D)legal environment

Question 46

Essential Products Inc.manufactures a wide range of healthcare products for infants,toddlers,and adults.The company is not able to allocate large budgets for each of its product groups because of resource constraints,and it is making huge losses in most of its product groups.In the context of strategic planning,which of the following is the final phase that Essential Products Inc.should adopt to revive its business?

A)Creating an organizational mission
B)Formulating an organizational portfolio plan
C)Setting organizational objectives
D)Creating organizational strategies

Question 47

Using a competitive advantage strategy based on _____,a firm seeks to be unique in its industry or market segment along particular dimensions that the customers value.

A)market penetration
B)cost leadership
C)market development
D)product differentiation

Question 48

The removal of tariffs on the import of Canadian lumber will adversely affect the U.S.lumber industry because Canada is able to produce lumber much more inexpensively than the U.S.This tariff removal is an example of how the _____ environment can affect businesses.

A)cooperative
B)functional
C)social
D)legal

Question 49

When using a cost leadership strategy,a firm is most likely to offer:

A)a standard,no-frills product.
B)a highly differentiated product.
C)a prestige product.
D)an expensive product of superior design and quality.

Question 50

Elite Inc.is as a brand of luxury clothing and accessories,and it targets affluent working women.However,it alters its offerings to include a large proportion of standard clothes at cheaper prices when the country faces severe recessionary pressures.In this scenario,which of the following environments does Elite primarily respond to by changing its offerings?

A)The legal environment
B)The competitive environment
C)The cooperative environment
D)The economic environment

Question 51

Which of the following observations pertains to strategic business units (SBUs)?

A)They are provided resources from outside the organization to which they belong.
B)They have centralized management,no competitors,and little autonomy.
C)They are organizations that have come together to achieve a common goal.
D)They can be planned independently of the other businesses of the total organization.

Question 52

Which of the following is most likely to comprise the cooperative environment of a firm?

A)A rival firm
B)A nonprofit organization that the firm donates funds to
C)A government that is imposing restrictions on trade and commerce
D)A supplier who has been chosen as the firm's single source

Question 53

A firm has chosen to create an organizational strategy based on differentiation.Which of the following is the firm's next step in the strategic planning process?

A)Identifying the marketing mix
B)Creating an organizational mission
C)Setting organizational objectives
D)Formulating an organizational portfolio plan

Question 54

Since September 11,2001,the number of people attending church and looking toward religion to provide solace has increased.As a result,Bible publishers have developed the Starting Point Study Bible,which explains what they are reading and includes a dictionary of biblical terms.In this scenario,the changes in the _____ have led to the publication of the Starting Point Study Bible.

A)social environment
B)competitive environment
C)cooperative environment
D)economic environment

Question 55

Which of the following is an organizational strategy based on competitive advantage?

A)Cost leadership strategy
B)Market differentiation strategy
C)Market diversification strategy
D)Product development strategy

Question 56

PureFruit Inc.prices its products higher than most of its competing brands in the packaged fruit juice industry.However,it still enjoys higher returns than its competitors because it is the only brand that can rightfully claim the use of fresh fruits and no added sugar.What kind of organizational strategy based on competitive advantage does PureFruit most likely use?

A)A strategy based on market development
B)A strategy based on differentiation
C)A strategy based on cost leadership
D)A strategy based on diversification

Question 57

Which of the following is a stage of the marketing planning process that involves the analysis of the past,present,and likely future in six major areas of concern?

A)Situation analysis
B)Target market selection
C)Marketing objectives
D)Marketing mix

Question 58

While choosing an appropriate strategy to establish competitive advantage,management should choose an organizational strategy that:

A)allows the organization to practice the strategy of differentiation rather than cost leadership.
B)tries to succeed by following all strategies and trying to be all things to all people.
C)bears consistency with the organization's mission and capitalizes on its distinctive competencies.
D)empowers the organization to grow without creating new products or entering new markets.

Question 59

If a firm chooses to succeed by building long-term relationships with its customers by offering either best price,best product,or best service,it implies that the firm's organizational strategy is:

A)based on competitive parity.
B)based on value.
C)based on products and markets.
D)based on selling.

Question 60

Healthline is a brand of incontinence products.Healthline products sell for $5 less than its rival brand,Depends.According to Michael Porter's model,Healthline is most likely using a _____ strategy to market its products.

A)differentiation
B)product development
C)market development
D)cost leadership

Question 61

Employees from different departments such as marketing,production,finance,and human resources are brought together to form a team responsible for creating a strategic plan to serve customers.This is an example of a _____.

A)cross-cultural team
B)cross-functional team
C)traditional team
D)top-management team

Question 62

The strategic plan at Steve Walden Inc.helps in the creation of functional area plans for its production,human resource,finance,and technology functions.This best demonstrates the process of:

A)market diversification.
B)product-related diversification.
C)cross-functional strategic planning.
D)marketing planning.

Question 63

The _____ involves a set of controllable variables that must be managed to satisfy the target market and achieve organizational objectives.

A)demographic profile
B)mission statement
C)organizational history
D)marketing mix

Question 64

Which of the following statements best describes the role of marketing executives in the strategic planning process?

A)Marketing executives must always be aware of what the process of strategic planning involves as well as the results.
B)Marketing executives should make plans that are independent of the strategic plan.
C)Marketing executives receive suggestions from the strategic planning team and implement the suggestions relating to customers,products,and middlemen.
D)Marketing executives are not involved in the strategic planning process because this process is the sole responsibility of top management.

Question 65

Once the marketing objectives have been established during marketing planning,the next step is the _____.

A)selection of the target market
B)identification of investors' needs
C)identification of competing firms in the market
D)determination of the marketing mix

Question 66

What is indicated by the cross-functional perspective in strategic planning?

A)Management action in all functional areas of an organization provide a blueprint for strategic planning.
B)All functional area plans should be derived from the strategic plan while at the same time contributing to the achievement of it.
C)Objectives and strategies identified in the strategic plan are not related to other objectives and strategies at higher and lower levels of the organization.
D)Objectives and strategies from the functional areas in an organization should be translated into objectives and strategies for the strategic plan.

Question 67

A cross-functional team responsible for the creation of its company's marketing plan had to make adjustments to the marketing plan since the plan failed to meet the determined objectives.This implies that the cross-functional team is:

A)controlling the marketing plan.
B)redefining the organizational mission.
C)implementing the marketing plan.
D)altering the organizational portfolio plan.

Question 68

The first step in controlling an implemented marketing plan is:

A)comparing the results of the marketing plan with the objectives.
B)deciding whether the marketing plan is achieving the objectives.
C)formulating a new marketing plan.
D)measuring the results of the implemented marketing plan.

Question 69

The final step in controlling an implemented marketing plan is:

A)performing marketing tasks.
B)comparing results of the marketing plan with objectives.
C)measuring the results of the marketing plan.
D)deciding whether the marketing plan is achieving objectives.

Question 70

The final step of marketing planning is _____.

A)selecting the target market
B)developing the marketing mix
C)establishing objectives based on the organizational mission
D)determining performance objectives for individual members of the marketing team

Question 71

Which of the following is the greatest advantage of strategic planning with a cross-functional team?

A)It ensures that strategic planning remains exclusively a top-management responsibility.
B)It helps the organization arrive at a strategic plan directly from the functional area plans.
C)It allows the team members to consider a situation from a number of viewpoints.
D)It improves the cross-cultural relations between employees.

Question 72

Which of the following statements is true of strategic planning in well-managed institutions?

A)Strategic planning is clearly a top management responsibility and does not require the active participation of marketing managers.
B)Planning done in the functional areas of the organization should be independent of the strategic plan.
C)There is no direct relationship between strategic planning and the planning done by the marketing team.
D)Marketing executives are involved in the strategic planning process as they influence the process by providing important inputs.

Question 73

Which of the following is the first step in marketing planning?

A)Stating standards of performance or tasks to be achieved by given dates
B)Selecting the groups or segments of potential customers the firm is going to serve
C)Analyzing the different elements of the marketing mix
D)Identifying the market with the greatest potential