Deck 2: Strategic Market Planning: Take the Big Picture

Question 1

A mission statement is a formal document that describes the organization's overall purpose and what it hopes to achieve in terms of its products, resources, and ________.

A)customers
B)profits
C)employees
D)shareholders
E)competitors

Answer 1

A

Question 2

Unethical business practices are damaging to

A)Only the stakeholders
B)Only the employees
C)To everyone in the society
D)Only to the financial department
E)Only to the CEO of the company

Answer 2

C

Question 3

Which of the following is a true statement about business planning?

A)Business planning involves taking action before developing objectives.
B)Business planning is an ongoing process.
C)Business planning is concerned with the long term but not the short term.
D)Business planning is concerned with the short term but not the long term.
E)Business planning takes place after development of the marketing plan.

Answer 3

B

Question 4

The ________ for Mothers Against Drunk Driving (MADD) is "to stop drunk driving, support the victims of this violent crime, and prevent underage drinking."

A)operational plan
B)mission statement
C)portfolio analysis
D)market penetration strategy
E)diversification strategy

Question 5

Vice presidents of large companies are typically in charge of ________ planning.

A)business
B)strategic
C)operational
D)functional
E)day-to-day

Question 6

Which of the following is true about functional planning?

A)It is conducted by the various functional areas of a firm.
B)It is also called hierarchical management.
C)It encompasses a longer time span than strategic planning does.
D)It covers a shorter time span than operational planning does.
E)It is the same as strategic planning.

Question 7

A business plan ________.

A)is a document that outlines marketing strategies
B)identifies how a company will measure and control specific marketing strategies
C)is another name for a marketing plan
D)includes the decisions that guide the entire organization or its business units
E)is another name for a SWOT analysis

Question 8

A(n)________ is a document that describes the marketing environment, outlines the marketing objectives and strategies, and identifies how the company will implement and control those strategies.

A)marketing plan
B)communications plan
C)business plan
D)operational plan
E)financial plan

Question 9

The three levels of business planning are ________.

A)managerial, operational, promotional
B)strategic, functional, operational
C)portfolio, strategic, functional
D)SWOT, strategic, tactical
E)operational, functional, tactical

Question 10

Canada's Bombardier produces transportation vehicles ranging from commercial aircraft to high-speed trains.Each product class is a semi-autonomous entity that operates as an independent business with its own mission and objectives and its own marketing strategy.Each product class is called_______________.

A)strategic business unit
B)market development units
C)market penetration units
D)standard business units
E)competitive intelligence units

Question 11

Strategic planning for a firm such as Disney with several SBUs probably occurs ________.

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

Question 12

The marketing plan is a type of ________.

A)day-to-day plan
B)code of ethics
C)strategic plan
D)independent plan
E)functional plan

Question 13

The CEO, president, and top executive officers are responsible for ________ in the strategic plan.

A)operational planning
B)developing the details of the pricing strategy
C)designing ad campaigns
D)defining the firm's purpose
E)employee benefits

Question 14

In firms with multiple SBUs, the first step in strategic planning is for top management to ________.

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

Question 15

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

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

Question 16

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

A)the company's CEO
B)the company's sales manager
C)the company's vice president of product research and development
D)the company's vice president of human resources
E)the company's chief financial officer

Question 17

________ is the third, or "nuts-and-bolts," level of planning.

A)Strategic planning
B)Functional planning
C)Operational planning
D)Product development
E)Business planning

Question 18

SBU stands for ________.

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

Question 19

Questions such as "What business are we in?" and "What customers should we serve?" are typically addressed in the ________ stage.

A)operational planning
B)strategic planning
C)market targeting
D)functional planning
E)marketing planning

Question 20

The fall of Enron and WorldCom was due to

A)Substandard products
B)Poor strategic plan
C)Unsavoury financial and management practices
D)Failure of marketing plan
E)No longterm business plan

Question 21

Effective objectives should be all of the following EXCEPT which one?

A)aspirational
B)specific
C)attainable
D)sustainable
E)measurable

Question 22

The ________ provides managers with four different fundamental marketing strategies market penetration, market development, product development, and diversification.

A)BCG growth-market share matrix
B)portfolio analysis
C)strategic plan
D)SWOT analysis
E)product-market growth matrix

Question 23

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

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

Question 24

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

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

Question 25

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

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

Question 26

Within a larger corporation, each SBU ________.

A)has its own business portfolio
B)has access to equal resources
C)has separate shareholders
D)is a separate profit centre
E)is dependent upon central management for a mission statement

Question 27

A growth strategy that attracts users of competitive brands is called a ________ strategy.

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

Question 28

If McDonalds had defined its ________ as -"We are in the hamburger business",they would not have been able to adapt to new customer preferences for healthier choices.

A)return on marketing investment
B)portfolio analysis
C)SWOT analysis
D)mission
E)external environment

Question 29

There is a total of ________ different types of SBUs represented within the BCG growth-market share matrix.

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

Question 30

The second step in strategic planning is to ________.

A)formalize a mission statement
B)establish the business portfolio
C)set SBU and department-level objectives
D)set organizational objectives
E)assess the organization's internal and external environments

Question 31

A(n)________ is a tool management uses to assess the potential of a firm's business portfolio.It helps management decide how to allocate resources among the firm's current SBUs.

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

Question 32

What does 'BCG' in BCG matrix stand for?

A)Buffalo Consulting Group
B)Burlington Consulting Group
C)Bombay Consulting Group
D)Boston Consulting Group
E)Bombino Consulting Group

Question 33

Analysis of the external environment of an organization identifies the organization's ________.

A)Controllable elements
B)Uncontrollable elements
C)Future
D)Plans
E)Customers

Question 34

A firm's internal business environment does NOT include ________.

A)its employees
B)its corporate culture
C)its products
D)its technologies
E)elements of the legal environment

Question 35

An SBU fits into the ________ category of the BCG model when sales have been steady and the firm has a large market share.

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

Question 36

According to the BCG growth-market share matrix, ________ are strategic business units with products that have a small share of a slow-growth market.

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

Question 37

____________ refers to political (including legal or regulatory), economic, social or cultural, technological, or other trends or issues that might impact a particular industry and business.

A)PESTO
B)portfolio analysis
C)market analysis
D)functional planning session
E)compatibility assessment

Question 38

Analysis of a firm's internal environment identifies the firm's ________.

A)Controllable elements
B)Uncontrollable elements
C)Future
D)Plans
E)Customers

Question 39

When McDonald's purchased Donato's Pizza and a controlling interest in Chipotle Mexican Grills, the company was pursuing a ________ strategy.

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

Question 40

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

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

Question 41

The ________ is the most fundamental part of the marketing mix.

A)product
B)distribution
C)price
D)production
E)profit

Question 42

Which step in developing a marketing plan includes an analysis of the marketing environment?

A)situation analysis
B)development of marketing objectives
C)selection of a target market
D)development of marketing strategies
E)implementation of the marketing plan

Question 43

Marketers communicate a product's value proposition to the target market by implementing a ________.

A)product segment
B)communication strategy
C)pricing strategy
D)distribution strategy
E)marketing metric

Question 44

The four Ps are the components of the ________.

A)marketing environment
B)functional planning mix
C)marketing mix
D)marketing concept
E)controls

Question 45

Which of the following best describes the components of the marketing mix?

A)all aspects of the marketing environment
B)everything considered during functional planning
C)product, price, place, and promotion
D)production, price, distribution, and people
E)people, product, price, and placement

Question 46

In a marketing plan, the ________ state what the marketing function must accomplish to achieve overall business objectives.

A)situation analyses
B)strategic plans
C)marketing objectives
D)market development strategies
E)marketing controls

Question 47

________ strategies emphasize both new products and new markets to achieve growth.

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

Question 48

The ability of a firm to outperform the competition, providing customers with a benefit the competition cannot is called_______________a.Marketing metrics
B)Strategic business unit
C)Return on marketing investment
D)Competitive Advantage
E)Strategic planning

Question 49

In the ________ step of the marketing planning process, decisions are made concerning what markets to target and what marketing mix strategies to use.

A)perform a situation analysis
B)develop marketing strategies
C)implement the marketing plan
D)control the marketing plan
E)develop marketing metrics

Question 50

Product planners for JetBlue Airways decided to include in-seat video games and television during flights that attracts more customers for flying JetBlue.This is an example of a ________ for JetBlue.

A)target market selection strategy
B)pricing strategy
C)control process
D)product strategy
E)marketing metric

Question 51

Advertising, sales promotion, public relations, direct marketing, and personal selling are all part of the ________.

A)target market strategy
B)pricing strategy
C)product strategy
D)communication strategy
E)distribution strategy

Question 52

According to the text, which of the following is NOT one of the six basic reasons why some organizations fail?

A)Failure to price properly
B)Failure to innovate
C)Failure to create value
D)Failure to persist over time
E)Failure to be flexible and adapt

Question 53

When General Mills urged consumers to lower their cholesterol by eating Cheerios twice a day over the course of six weeks, the aim was to increase usage among current customers.General Mills used a ________ strategy.

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

Question 54

The ________ outlines how, when, and where the firm will make the product available to targeted customers.

A)target market strategy
B)pricing strategy
C)product strategy
D)promotion strategy
E)distribution strategy

Question 55

When Jay Minkoff at First Flavour decides what he wants to accomplish in terms of product development and pricing strategies,which step of the marketing planning process is he undertaking?

A)perform a situation analysis
B)set marketing objectives
C)define a marketing mission
D)identify a target market
E)develop a marketing mix

Question 56

Measurements or "scorecards" marketers use to identify the effectiveness of different strategies or tactics is called _____________a.The market segment
B)Metrics
C)Return on marketing investment
D)The marketing mix
E)The mass market

Question 57

Westjet Airlines uses a ________ to target customers who could not previously afford air travel.

A)pricing strategy
B)market penetration strategy
C)marketing metric
D)distribution strategy
E)mission statement

Question 58

The first step of the marketing planning process involves closely examining the ________.

A)marketing strategies
B)product development process
C)marketing controls
D)marketing environment
E)functional plan

Question 59

A(n) ________ analysis is an analysis of an organization's internal strengths and weaknesses and the opportunities and threats in its external environment.

A)strategic
B)environmental
C)SWOT
D)marketplace
E)market

Question 60

The ________ determines how much a firm charges for a product.

A)Gantt chart analysis
B)PERT chart analysis
C)pricing strategy
D)product strategy
E)return on marketing investment

Question 61

ROMI refers to

A)SWOT analysis
B)portfolio analysis
C)implementation and control
D)situation analysis
E)return on marketing investment

Question 62

Columbia Sportswear makes nylon activewear for global markets.Its marketing manager set a goal to increase sales 12 percent over the next three years through the introduction of a new line of comfortable, lightweight clothing for people who fish.The marketing manager's goals are covered under which level of planning-

A)operational planning
B)strategic planning
C)control planning
D)portfolio planning
E)functional planning

Question 63

Marketing Plan does not include -

A)SWOT analysis
B)Production analysis
C)Consumer analysis
D)Situational analysis
E)Financial analysis

Question 64

Columbia Sportswear has introduced a new line of comfortable, lightweight clothing for people who fish.Marketing communication manager decides to run a full-page ad in Field & Stream magazine in May to get potential customers to ask for their sporting goods.This is an example of________________.

A)operational planning
B)strategic planning
C)business planning
D)portfolio planning
E)brand extension

Question 65

Which of the following is a common objection to relying exclusively on ROMI for measuring marketing success?

A)In a company's accounting statements, marketing expenditures tend to appear as investments rather than costs.
B)Calculating ROMI requires knowing what would have happened if the marketing expenditures had never taken place.
C)ROMI tends to lead managers toward a more long-term decision perspective.
D)ROMI focuses on a firm's sustainability commitments to the detriment of its short-term performance.
E)ROMI calculates profit by deducting expenditures rather than dividing by expenditures.

Question 66

The revenue or profit margin generated by investment in a specific marketing campaign or program, divided by the cost of that program at a given risk level is calleda.Corporate culture
B)Return on Marketing Investment
C)Implementation
D)Situation analysis
E)SWOT analysis

Question 67

A sales manager sets an objective for her team to increase the units sold by 5% for the quarter.This objective is most likely part of a detailed ________ plan that is created annually, semiannually, or quarterly.

A)strategic
B)functional
C)operational
D)product development
E)human resources

Question 68

Which of the following is a tool that marketers often use to portray strengths,weaknesses,opportunities and threats to the company?

A)a Gantt chart
B)a SWOT analysis
C)an SBU analysis
D)a BCG matrix
E)a marketing metric

Question 69

___________ reflects how a strategy is going to be enacted

A)Tactic
B)Mission
C)Objective
D)Plan
E)control

Question 70

Marketing planning is followed by the ________, which details how the plan will be carried out, outlining the day-to-day execution.

A)operational plan
B)time line
C)SWOT analysis
D)strategic plan
E)marketing metric

Question 71

________ generally cover a shorter time period than other plans, perhaps only one or two months, and include detailed directions for specific activities to be carried out.

A)Time lines
B)Operational plans
C)Marketing plans
D)Strategic plans
E)Pricing strategies

Question 72

Many airlines now penalize customers who don't opt for online purchase of "ticketless" flight reservations by charging a fee to those who purchase tickets at ticket counters.This is an example of a ________ strategy.

A)distribution
B)return on marketing investment
C)marketing control
D)product
E)promotion

Question 73

After marketing strategies are developed, the next step in marketing planning is ________.

A)development of marketing objectives
B)strategic planning
C)implementation
D)situation analysis
E)pricing development

Question 74

Concrete measures of various aspects of marketing performance and benchmarks or targets are called ________.

A)operational plans
B)marketing metrics
C)action plans
D)marketing objectives
E)pricing strategies

Question 75

Reach and frequency of advertising, timeliness and accuracy of competitive intelligence, and consumer word-of-mouth activity are all examples of ________.

A)ROMI
B)marketing metrics
C)action plans
D)SBU objectives
E)situation analyses

Question 76

Which of the following quantifies how an investment in marketing impacts the firm's success, financially and otherwise?

A)return on marketing investment
B)marketing metrics
C)SWOT analysis
D)portfolio analysis
E)PERT chart analysis

Question 77

Kimball Gardens is a company that operates as two distinct businesses one that sells lawn and garden products and one that markets booklets.Each business is called a ________.

A)separate entity
B)strategic business unit (SBU)
C)cash cow
D)star
E)business portfolio

Question 78

The ROI of a campaign, the value of a prospect, and the response rates in direct marketing are all examples of ________.

A)promotions
B)marketing metrics
C)action plans
D)situation analysis
E)corporate culture

Question 79

As a part of the ________ process, managers need to look carefully at why a company isn't meeting its objectives.

A)diversification
B)market development
C)brand competition
D)marketing mix
E)control

Question 80

Cost-Benefit analysis is a part of ____________

A)price strategy
B)promotion strategy
C)Marketing plan
D)strategic plan
E)marketing mix