Deck 2: Strategic Planning for Competitive Advantag

Question 1

The marketing plan is a written document that acts as a guidebook of marketing activities for a marketing manager.

Answer 1

True

Question 2

A marketing audit is limited to the collection and analysis of information about factors that may affect the organization as well as the identification of market opportunities and threats.

Answer 2

False

Question 3

Niche competitive advantages are quite common.

Answer 3

True

Question 4

When the Internet auction company www.ebay.com opened a version of the company it called ebayfrance.com for the French market,it was an example of market penetration.

Question 5

A firm's mission statement should answer the question,"What products do we produce best?"

Question 6

The development of a target market strategy begins with a market opportunity analysis (MOA).

Question 7

Marketing objectives should be consistent with organization objectives,they should be measurable,and they should specify the time frame during which they are to be achieved.

Question 8

Diamonds that come from rebel African troops trying to get money for weapons are much cheaper than diamonds from countries that are not in conflict.A diamond retailer that ignores the pleas of human rights organizations not to sell the cheaper diamonds is creating a cost competitive advantage for itself.

Question 9

A competitive advantage is some unique aspect of a firm's offering,or of the firm itself,that causes target customers to patronize the firm rather than its competition.

Question 10

Marketing strategy involves the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

Question 11

The manufacturer of Revlon cosmetics was implementing a strategic plan when it provided its retailers with display units promoting its new shades of summery lipsticks.

Question 12

The company's objective is to spend 10 percent of this fiscal year's sales revenue on research and development in an effort to introduce at least five new products in the next fiscal year.This is an example of a well-stated objective.

Question 13

If the Pillsbury Company started a major promotional campaign for its Green Giant frozen vegetables with aggressive advertising and cents-off coupons to existing customers,it would be following a market development strategy.

Question 14

Typically,the development of the marketing mix starts with the identification of potential target markets.

Question 15

When a florist shop begins to sell burial caskets to its customers,it is engaged in product development.

Question 16

A situation analysis is a small part of the more all-encompassing SWOT analysis.

Question 17

Thomas Office Supply has developed a clipboard design that will better fulfill the needs not only of its customers in the hospital market,but also of potential new customers in the educational market.This is an example of diversification.

Question 18

Andre wanted to rent a limousine for the weekend,then he learned the rental company offered lower daily rates for 7-day rentals.The rental company was using a market development strategy.

Question 19

The four P's of the marketing mix are product,planning,promotion,and price.

Question 20

Amerifit Nutrition has just developed a new line of all-natural cold medications that further meet the needs of its current customers.This is an example of product development.

Question 21

Tiffany is designing a series of marketing activities to help her new catering company achieve its growth objectives in a highly competitive industry.Tiffany is engaged in:

A) strategic activation
B) resource commitment
C) marketing planning
D) control
E) evaluation

Question 22

In its stockholders' report,PepsiCo.has a _____ that states "...our business is to increase the value of our shareholder's investment.We do this through sales growth,cost controls and wise investment of resources.We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe,wholesome,economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity..."

A) marketing mix strategy
B) quantifiable goal
C) mission statement
D) statement of economic potential
E) market segmentation strategy

Question 23

The _____ answers the question,"What business are we in and where are we going?"

A) mission statement
B) financial statement
C) situation analysis
D) market strategy
E) strategic plan

Question 24

Thermo Electron Corp.,the biggest maker of measurement instruments for medical laboratories,agreed to buy the radiation-monitoring products unit of Compagnie de Saint-Gobain for $30 million to gain European customers.Saint-Gobain of France is Europe's number 1 distributor of building materials,and its radiation monitoring unit did not support the company's mission statement.Saint-Gobain sold one of its:

A) strategic business units (SBU)
B) strategic alliances
C) action programs
D) transactional units
E) synergistic divisions

Question 25

_____ is the process of anticipating events and determining strategies to achieve organizational objectives.

A) Planning
B) Portfolio evaluation
C) Forecasting
D) Implementation
E) Evaluation

Question 26

By defining its business as "making movies" instead of "entertainment," a Hollywood movie studio would have experienced:

A) market synergy
B) product entropy
C) market harvesting
D) nonspecific strategic planning
E) marketing myopia

Question 27

Marketing plans should be written to do all of the following EXCEPT:

A) compare actual and expected performance
B) provide clearly stated activities
C) create common goals for employees to work toward
D) allow managers to enter the marketplace with an awareness of possibilities and problems
E) control the elements of the external marketing environment

Question 28

Railroads often offer their customers a trucking service for local delivery or trailers for piggybacking loads to their final destination.Which of the following statements justifies the addition of these services to their strategic plans?

A) Their mission statements recognize reflects their belief that they are transportation companies,not just railroads.
B) Local delivery has high market attractiveness.
C) Diversification is needed to survive.
D) New business units are needed to continue growth.
E) Owning trucks is probably cheaper and easier than using a local carrier.

Question 29

Strategic planning is most effective when managers view it as an annual exercise.

Question 30

The most critical element in successful strategic planning is the development of a sustainable competitive advantage.

Question 31

The focus of an organization's mission statement should be on:

A) the products it wishes to sell
B) the market it wishes to serve
C) its social responsibilities
D) the desires of top management
E) technologies it understands well

Question 32

Compaq Computer's decision to charge customers for phone technical support to defray the high cost of phone support and encourage customers to read documentation was a failure because consumers like the human touch.Customer rebellion forced Compaq to rethink this policy.As a result Compaq decided to focus its resources on reaching the inexpensive home computer market segment through enhanced customer service.This company is engaging in:

A) the search for a differential advantage
B) control and evaluation
C) alternative selection
D) portfolio evaluation
E) strategic planning

Question 33

Managers at Bolsum Aerospace Company have recently attended several special meetings where issues such as the creation of marketing objectives,a situation analysis,delineating a target market strategy,and modifying components of the marketing mix have been discussed.Bolsum Aerospace is apparently engaged in:

A) reengineering
B) hierarchical restructuring
C) a financial analysis
D) the development of a marketing plan
E) strategic contingency planning

Question 34

In 2004,Giorgio Armani,the Italian fashion group,announced plans to launch a $1 billion international luxury hotel chain containing ten hotels and four resorts before the end of 2015.This _____ will take advantage of an international trend toward luxury lifestyle consumerism and allow the company to achieve its growth objectives.

A) tactical objectifying
B) contingency plans
C) strategic planning
D) marketing implementation
E) horizon planning

Question 35

_____ is the managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities.

A) Tactical management
B) The market audit
C) Functional planning
D) Environmental scanning
E) Strategic planning

Question 36

Which of the following is one of the elements of the marketing plan?

A) a business mission statement
B) a situation analysis
C) a target marketing strategy
D) the marketing mix
E) all of the choices

Question 37

Strategic plans require:

A) long-term resource commitments
B) a change in organizational structure
C) the addition of new personnel
D) new product development
E) changes in prices

Question 38

Which of the following statements about a marketing plan is true?

A) Marketing plans can exist as oral traditions.
B) The marketing plan should be viewed as a series of sequential steps.
C) All marketing plans have basically the same content.
D) A marketing plan is created so an organization can meets its marketing objectives.
E) All of the above statements about a marketing plan are true.

Question 39

Thermo Electron Corp.,the biggest maker of measurement instruments for medical laboratories,agreed to buy the radiation-monitoring products unit of Compagnie de Saint-Gobain for $30 million to gain European customers.Saint-Gobain (of France)is Europe's number 1 distributor of building materials,and its radiation monitoring unit did not support the company's mission statement.This means that:

A) Thermo Electron does not have a mission statement.
B) the radiation monitoring unit was a cash cow.
C) Saint-Gobain's mission dealt with providing building materials to its customers,not radiation measuring equipment.
D) Thermo Electron's mission statement was incomplete.
E) Saint-Gobain's mission statement was too broad.

Question 40

A marketing audit is a control device and is used primarily by large corporations to study past performance

Question 41

A _____ is a statement of what is to be accomplished through marketing activities.

A) mission statement
B) business plan
C) marketing objective
D) goal-driven directive
E) marketing criteria

Question 42

One of the divisions of Procter & Gamble (P&G)manufactures and markets health and beauty aids.It handles products like Olay lotions and Old Spice fragrances.This part of the business has its own accounting,engineering,manufacturing,and marketing departments,separate from the rest of the organization.This division also has its own mission statement,target markets,and planning committees.This segment of P&G would be termed a:

A) product market niche
B) diversified division
C) heterogeneous element
D) strategic alliance
E) strategic business unit

Question 43

A popular technique for managing a large organization with different technologies and markets is to divide it into:

A) strategic business units
B) different technologies
C) strategic target markets
D) design matrices
E) tactical segments

Question 44

In 2004,Giorgio Armani,the Italian fashion group,announced plans to launch a $1 billion international luxury hotel chain containing ten hotels and four resorts before the end of 2015.One of the major reasons for opening a hotel chain was an international trend toward luxury lifestyle consumerism.In terms of its situation analysis,the trend toward luxury lifestyle consumerism would be an example of a(n):

A) opportunity because it is part of Armani's external environment
B) strength because it is part of Armani's external environment
C) weakness because Armani cannot control the growth of the trend
D) advantage because it gives Armani growth opportunities
E) benefit because Armani's internal resources can be designed to make its external environment

Question 45

The SWOT acronym refers to a firm analysis of its:

A) sales,width of product mix,observations,and technology
B) situations,wealth,organizational strengths,and target markets
C) strengths,weaknesses,opportunities,and threats
D) service levels,willingness to spend,organizational culture,and total revenues
E) strategies,willingness to change,objectives,and trends

Question 46

A U.S.soft drink company conducting a SWOT analysis of market potential in India should be aware that all the following are potential threats EXCEPT:

A) religious differences that could led to terroristic acts
B) strict governmental regulation of foreign businesses
C) a low gross national profit
D) fierce competition dominated by Thums Up brand soft drink
E) a high demand for U.S.-made products

Question 47

Baths From the Past is a small company that sells reproduction sinks,bathtubs,toilets,and faucets for people who are trying to make their bathroom more stylish.The company's management is currently conducting a formal study of its current strengths and weaknesses by looking at the company's profit and sales histories and searching for opportunities and threats by studying consumer trends.Baths From the Past is conducting a(n):

A) marketing audit
B) SWOT analysis
C) environmental scan
D) market differentiation scan
E) strategic window search

Question 48

A(n)______ is a formal study conducted by an organization to ascertain its current status and capabilities and its future expectations.

A) situation analysis
B) marketing audit
C) trend analysis
D) strategic alternative selection
E) competitive advantage audit

Question 49

General Electric has a security division that builds equipment for screening passenger luggage checked in at airports.This division is composed of InVision Technologies that manufactures CT scanners and Ion Track,which measures luggage for trace elements drugs and explosives.GE's security division is an example of a(n):

A) organizational level
B) SWOT
C) secure business unit
D) business sales unit
E) strategic business unit

Question 50

When an organization creates a marketing mission that is too broad,_____ results.

A) marketing synergy
B) marketing myopia
C) directional marketing
D) an internal threat
E) sustainable competitive advantage

Question 51

_____ is the collection and interpretation of information about forces,events,and relationships that may affect the organization.

A) Market sampling
B) An internal audit
C) Opportunity analysis
D) Environmental scanning
E) Stakeholder analysis

Question 52

Hustler Turf Equipment is a Southeastern company that makes landscaping equipment.The company is looking at customer trends,its competitors,and the economy to see if there are any threats or opportunities on the horizon.It has also examined its production policies and sales histories to determine its strengths and weaknesses.Hustler Turf Equipment is conducting a(n):

A) environmental test
B) market audit
C) trend analysis
D) situation analysis
E) competitive advantage search

Question 53

The acronym SBU refers to:

A) stock in business units
B) strategic business unit
C) standard business utilization
D) strategic barter units
E) samples by units

Question 54

For marketing objectives to be realized,they must meet all of the following criteria EXCEPT:

A) be consistent with organization objectives
B) be measurable
C) be attainable
D) be challenging
E) be set within a one-year time frame

Question 55

Tyler Dunoki works for Star Creek,an Australian wine producing company.He has been asked to submit recommendations for marketing objectives for the upcoming strategic planning period.Which of the following marketing objectives would be most appropriate for the company?

A) Star Creek wants 30 percent of the market for Australian wines within 24 months of the launching of its new advertising campaign.This effort will be supported by a $20 million commitment from the company's owner and president.
B) Star Creek seeks to sell more bottles of wine than its competitors during the next strategic planning period.
C) Star Creek needs to develop some new wines to help it gain market share.
D) Star Creek wants to be number one in the marketplace for all Australian wines within one year.
E) Star Creek wants to be recognized as an international winery.

Question 56

Which of the following is NOT an appropriate use for carefully specified marketing objectives?

A) as a method to appeal to all market segments
B) as a method for developing standards to gauge performance
C) as a motivational tool for those charged with achieving the objectives
D) as a way to force executives to sharpen their critical thinking skills
E) as a method of developing,implementing,and evaluating a consistent marketing plan

Question 57

All the following are environmental forces a Washington state fruit grower with both orchards and a packaging/shipping facility might consider when making marketing decisions.What factor is LEAST likely to impact its marketing decisions?

A) working mothers who rely on their teenagers to do the family grocery shopping
B) the increase in foreign shipments to the United States of a similar product
C) changes in the state laws concerning pollution control,waste disposal,and use of pesticides
D) inflation and interest rates
E) the number of employees of a Florida state fruit grower

Question 58

An SBU:

A) competes with the same companies as the other SBUs in the family
B) shares the same mission with all the other SBUs in the parent organization
C) controls its business independently of other SBUs in the organization
D) usually benefits from the combined corporate raw materials purchases
E) still has strategic planning performed back at corporate headquarters

Question 59

After management agrees on a mission statement,it must set objectives.Which of the following is NOT a characteristic of a good objective?

A) profitable
B) realistic
C) measurable
D) time-specific
E) consistent

Question 60

______ occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it.

A) A circle trap
B) A market barrier entry
C) A reactive focus
D) Unempowerment
E) Marketing myopia

Question 61

_____ is a strategy of increasing market share for present products in existing markets.

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

Question 62

Which of the following is NOT a source of a cost competitive advantage?

A) reengineering
B) experience curves
C) breakeven analyses
D) efficient labor
E) production innovation

Question 63

There are many different kinds of cheese.According to its ads,only Jarlsberg Lite has 50 percent less fat,60 percent less cholesterol,and 100 percent of the taste of other kinds of cheese.This advertising statement describes Jarlsberg Lite's:

A) strategic edge
B) competitive advantage
C) tactical strength
D) winning proposition
E) mission statement

Question 64

Through the use of _____,Revlon identified the fact that its brand names (Revlon,Almay and Flex)had developed a poor image with both its customers and its retailers.

A) marketing control
B) environmental control
C) environmental scanning
D) social audit
E) strategic analysis

Question 65

As a customer entered the Hornady store,which sells muzzle loading rifles,a salesperson approached her and said,"Hornady lead round balls are the musket balls your customers ought to buy.They are the most uniform in size and shape,and they are made of pure lead.Our shot is used by the Muzzle Loading World Champion." The salesperson was describing Hornady's:

A) competitive advantage
B) strategic strength
C) tactical opportunity
D) opportunity mission
E) quality objective

Question 66

_____ show costs declining at a predictable rate as experience with a product increases.

A) Liquidity growth curves
B) EOQ graphs
C) Breakeven analyses
D) Experience curves
E) Supply/demand curves

Question 67

Aldi is a no-frills grocery chain.It sells grocery staples right out of crates and boxes with emphasis on low-priced,private-label brands.Aldi stores are typically about one-third the size of the traditional supermarket.By controlling expenses,Aldi customers can expect to save 30 to 50 percent compared to Kroger customers.The chain targets bargain hunters who are willing to rent a cart and bag their own groceries.Aldi uses _____ to create its competitive advantage.

A) demand and supply curves
B) reengineering
C) production innovation
D) no-frills goods and services
E) efficient labor

Question 68

Patents on allergy relief medications like Allegra and Claritin give the pharmaceutical companies that own the patents a(n)_____ for 17 years until the patent expires.

A) targeted market position
B) sustainable competitive advantage
C) strategic focus
D) situational strength
E) opportunistic privilege

Question 69

Everyone knows the brand name Kleenex.Kleenex is what many consumers think of when they think of tissues.This widely recognized brand name is a source of:

A) a product differentiation competitive advantage
B) a cost advantage
C) market augmentation
D) a niche competitive advantage
E) none of the above

Question 70

Which of the following companies has a competitive advantage?

A) World Wrestling Entertainment (formerly the World Wrestling Federation)holds the trademark on the names of the wrestlers that participate in the company's wrestling matches.
B) Netcentives holds the patent on software that allows merchants to distribute loyalty points online.
C) DeBeers diamonds controls 90 percent of the world's diamond mines.
D) Mildred's Café makes the world's best pecan pie.
E) All of the choices have a competitive advantage.

Question 71

Fujisawa is Japan's seventh-largest pharmaceutical company.It sells drugs taken by organ transplant patients to increase the probability that the new organ will operate efficiently and not be rejected.Currently,the only products that Fujisawa makes are these organ transplant drugs,which it sells worldwide.Its patents protect it from competitors.Fujisawa has a:

A) brand name strategy
B) niche competitive advantage
C) cost competitive advantage
D) marketing competitive advantage
E) sustainable competitive advantage

Question 72

Aldi is a no-frills grocery chain.It sells grocery staples right out of crates and boxes with emphasis on low-priced,private-label brands.Aldi stores are typically about one-third the size of the traditional supermarket.By controlling expenses,Aldi customers can expect to save 30 to 50 percent compared to Kroger customers.The chain targets bargain hunters who are willing to rent a cart and bag their own groceries.Aldi has a(n)

A) market-homogeneous focus
B) cost competitive advantage
C) product aggregation strategy
D) revenue-based competitive advantage
E) profit-enhanced advantage

Question 73

Bayer is planning on creating a _____ advantage by restructuring and selling off SBUs that do not complement its primary product lines.Through reengineering the company hopes to increase its profit margins,improve inventory turnover,and make itself more attractive to investors.

A) brand name strategy
B) niche competitive advantage
C) cost competitive advantage
D) marketing competitive advantage
E) synergistic competitive advantage

Question 74

Yuengling is the oldest brewery in the United States.It was founded in 1827 in a time when small breweries dotted the nation.It has survived by severely limiting sales of the beer and creating a mystique about the brand.In areas,where the beer is sold,its brand name is used the same as Kleenex is used by many to represent all types of tissues.Its competitors all wanted to expand their markets.Yuengling's strategy was "To do nothing." For over 170 years,this strategy has given the brewery a:

A) brand name strategy
B) niche competitive advantage
C) price differentiation advantage
D) marketing competitive advantage
E) sustainable competitive advantage

Question 75

Knorr,manufacturer of soup,dip,and gravy mixes,printed on-package recipes,gave out coupons to existing customers,and created a recipe booklet that could be ordered with three UPC codes from three different Knorr products.All of these activities would be representative of a _____ strategy.

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

Question 76

Arizona Tea is marketed by Vultaggio & Sons.Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs.The wide-mouthed,long-necked bottles are now considered to be trendsetters in the new age beverage industry,and customers often buy the tea just for the bottle.The success of Arizona Tea is based on:

A) supply-demand curves
B) reengineering
C) a product differentiation competitive advantage
D) a cost competitive advantage
E) a heterogeneous marketing strategy

Question 77

Bentley automobiles are extremely expensive and are designed to appeal to consumers who equate value and quality with price.The manufacturer of Bentley automobiles has created a(n)_____ competitive advantage.

A) value-enhanced
B) mass-marketing
C) functional
D) niche
E) social class-oriented

Question 78

Through the use of environmental scanning,the manufacturers of video games for Xbox and PlayStation2 could:

A) learn why they needed to use a team management structure
B) determine why the market for video games is slowing
C) benefit from experience curves
D) periodically divest itself of low-margin products
E) do none of the above

Question 79

Technol Medical Products makes specialty face masks to shield health-care workers from infection.Because it focuses on this narrow market,it is able to outsell its primary competitors-3M and Johnson & Johnson.Technol Medical products has a(n):

A) aggregated positioning strategy
B) demarketing focus
C) heterogeneous target marketing
D) cost competitive advantage
E) niche competitive advantage

Question 80

Which of the following is NOT a type of strategic alternative that matches products and markets?

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