Deck 1: Strategic Planning and the Marketing Management Process

Question 1

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

Answer 1

C

Question 2

An organization's focus on devising methods to attract customers to current products is called _____.

A) customer orientation
B) production orientation
C) selling orientation
D) non-profit orientation

Answer 2

C

Question 3

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 the organization's 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 that adhere to the company's mission statement instead of hiring managers.

Answer 3

B

Question 4

Candela Inc.'s marketing and product design involves identifying customer needs and then working backwards to devise products and services to meet those needs. Which of the following statements is most likely true about Candela Inc.?

A) It does not adhere to the marketing concept.
B) It demonstrates customer orientation.
C) It aims to manipulate customers to increase sales.
D) It has a production orientation.

Question 5

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

Question 6

The purpose of the marketing concept is to rivet the attention of marketing managers primarily on serving broad classes of _____.

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

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 Helen Mortimer Foundation is a non-profit 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 9

The crux of the marketing concept is focusing on building long-term _____, where the initial sale is viewed as the beginning step and not as the end goal.

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

Question 10

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 11

Which of the following is a guideline for implementing the marketing concept?

A) Define quality for the customers.
B) Manage for sales volume, not profit.
C) Target customers precisely.
D) Make advertising the guiding star.

Question 12

Formulating a strategy based on distinctive competencies provides an organization with a unique benefit that allows the organization 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

Question 13

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 14

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 15

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

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

Question 16

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 17

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 18

The principal task of the marketing function operating under the marketing concept is to _____.

A) focus on selling products to a particular class of customers
B) increase the company's rate of production and devise methods to aggressively attract consumers to purchase products
C) find effective and efficient means of making the business do what suits the interests of customers
D) find ways to manipulate customers to do what suits the interests of the firm

Question 19

Run for the Cure is an annual marathon that raises money for conducting research on breast cancer. Marketers advertise through the 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 20

Midas Corporation is a sporting goods manufacturer. Most of its energies and resources are devoted to manufacturing and selling one line of sporting 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. The company is mostly exhibiting _____.

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

Question 21

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 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

A product development strategy:

A) involves creating new products for customers not currently being served.
B) offers an 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 24

Winter Head is a firm that manufactures woolen blankets. The manufacturer claimed its blankets made from the softest wool and were so finely stitched that consumers wanted to include them in their inheritance. The company was proud of its product quality and formulated its mission statement based on it. What could potentially be 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 25

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 26

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 the organization's name.
C) reflect a market-driven approach by targeting a broad class of needs and segmented target markets.
D) state the mission in terms of serving a generic group of clients or customers and meeting generic, not specific, needs.

Question 27

Market development strategies involve:

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

Question 28

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 29

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

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

Question 30

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 31

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 32

Chello Inc., the largest smartphone manufacturing company has been selling the world's cheapest smartphone called 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 33

Which of the following statements is true of organizational objectives?

A) Organizational objectives should reflect the organization's finances, rather than its commitment to the 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 34

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 of 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 35

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 36

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 37

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

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

Question 38

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 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

When weekend gardeners think of mulch to put around their plants and keep away the weeds, they tend to think in terms of pine bark, wood chips, or pine straw. Slatescape has developed mulch made out of crushed slate rock. The company first targeted landscape businesses and was successful in marketing to these businesses and to government agencies. However, in order to expand its business, the company must now educate consumers about its product. Slatescape will be implementing a _____.

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

Question 41

Which of the following represents the final phase of the strategic planning process?

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

Question 42

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) try 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 43

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 44

_____ is the step of the marketing management process that involves analyzing the position of the marketing division of the firm in terms of its past, present, and future condition.

A) Situation analysis
B) Vendor analysis
C) Post-hoc segmentation analysis
D) New product analysis

Question 45

Healthline is a brand of incontinence products. Healthline products sell for $5 less than their 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 46

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 47

Which of the following organizational growth strategies involves the creation of new products?

A) Diversification strategy
B) Cost leadership strategy
C) Market development strategy
D) Market penetration strategy

Question 48

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 49

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, social, and business critics.
D) the marketing department's past, present, and future situations.

Question 50

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 51

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 52

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 53

If a firm chooses to succeed by building long-term relationships with the firm's customers by offering either the 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 54

Elite Inc. began as a brand of luxury clothing and accessories targeted at affluent working women. However, it altered its offerings to include a large proportion of standard clothes at cheaper prices when the country was faced with severe recessionary pressures. In this scenario, which of the following did 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 55

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 56

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 57

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 58

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, that 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 59

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

A) A rival firm
B) A non-profit 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 60

_____ 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 61

The final step of marketing planning is _____.

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

Question 62

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

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

Question 63

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 64

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 marketing plan.

Question 65

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 66

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 the competing firms in the market
D) determination of the marketing mix

Question 67

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 68

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 69

The strategic plan at Steve Walden Inc. helps in the creation of functional area plans for the 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 70

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 71

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 marketing team.
D) Marketing executives are involved in the strategic planning process as they influence the process by providing important inputs.

Question 72

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 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