Deck 2: Planning, Implementing, and Evaluating Marketing Strategies

Question 1

The Boston Consulting Group's model serves as a diagnostic tool to spotlight strategic business units that have an opportunity to grow rather than as a guide for making strategy prescriptions.

Answer 1

True

Question 2

Marketing managers can classify a firm's products into four basic types: stars, cash cows, dogs, and question marks.

Answer 2

True

Question 3

A strategic business unit is not self-supporting in terms of sales, markets, production, and other resources.

Answer 3

False

Question 4

A competitive advantage is created when a company matches its core competency to the opportunities it has discovered in the market.

Question 5

Marketing objectives should be stated in such a way that the degree of accomplishment can be measured accurately.

Question 6

An organization's goals focus on the ends or results that the firm seeks.

Question 7

The analysis of strengths and weaknesses focuses on internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

Question 8

The strategic planning process begins with a detailed analysis of the organization's strengths and weaknesses and the identification of opportunities and threats within the marketing environment.

Question 9

A market is a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase these products.

Question 10

Corporate strategic planners focus on dimensions such as competition, diversification, differentiation, environmental focus, and interrelationships among SBUs.

Question 11

Marketing strategies should be established before marketing objectives are decided.

Question 12

A core competency is something a firm does extremely well-sometimes so well that it gives the company an advantage over its competition.

Question 13

A firm's organizational mission should be derived from its goals.

Question 14

Corporate strategy determines the means for utilizing resources in the functional areas of business to reach the organization's goals.

Question 15

The Boston Consulting Group approach is based on a philosophy that a product's market growth rate and its market share relative to competition should be helpful in determining its marketing strategy.

Question 16

Stars are profitable products that usually generate more cash than is required to maintain share.

Question 17

A marketing objective need not be consistent with the firm's overall objectives.

Question 18

A marketing strategy is a written document that specifies the activities to be performed to implement and control a firm's marketing activities.

Question 19

Marketing objectives state what is to be accomplished through marketing activities.

Question 20

A long-term view, or vision, of what the organization wants to become is called a mission proclamation.

Question 21

Cash cows are market leaders that are growing fast, with substantial reported profits.

Question 22

An organization's goals focus on the end results the organization seeks.

Question 23

The marketing plan provides a framework to stimulate thinking and provide strategic direction.

Question 24

The long-term health of the firm depends solely on having products that generate cash and provide acceptable reported profits.

Question 25

Each of the marketing mix elements must work together with the others.

Question 26

The strategic performance evaluation does not monitor the activities of external sources of marketing assistance.

Question 27

In a traditional organization, marketing decisions are generally centralized at the top levels of the organization.

Question 28

Centralized decision making may prove effective in firms that must respond quickly to fluctuations in customer demand.

Question 29

The strategic planning process begins with a detailed analysis of the organization's strengths and weaknesses and the identification of opportunities and threats within the marketing environment.

Question 30

Marketing cost analysis uses sales figures to evaluate a firm's current performance.

Question 31

A sustainable competitive advantage is one that cannot be copied by a firm's competitors.

Question 32

In the strategic planning process, marketers conduct their SWOT analyses before developing corporate and business-unit strategies.

Question 33

The primary way to reduce the discrepancy between planned and actual performance is to rewrite the performance standard.

Question 34

Question marks exist at a cost disadvantage and exhibit few opportunities for growth at a reasonable cost.

Question 35

Selecting an appropriate target market may be the most important decision a company makes in the strategic planning process.

Question 36

Marketing planning and implementation are inextricably linked in successful businesses.

Question 37

Product development is a strategy of increasing sales by improving present products or developing new products for current markets.

Question 38

The decisions made in creating a marketing mix are only as good as the organization's understanding of the target market.

Question 39

Financial controls information will most likely be found in the performance evaluation section of the marketing plan.

Question 40

Whenthe right combination of circumstances and timing permits an organization to take action to reach a particular target market, a core competency exists.

Question 41

Successful business organizations should take actions to convert internal weaknesses into ____ and external threats into ____.

A)​opportunities; core competencies
B)​core competencies; strengths
C)​opportunities; strengths
D)​strengths; core competencies
E)​strengths; opportunities

Question 42

A market opportunity results from

A)​the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.
B)​monitoring the firm's capabilities.
C)​an increase in market share and profits.
D)​an assessment of environmental forces.
E)​technological determinism.

Question 43

A strategic window is

A)​the right combination of circumstances and timing that permit an organization to take action to reach a particular target market.
B)​what determines the factors that are most important in making a market attractive or strong.
C)​customers' requirements or desired benefits.
D)​a temporary period of optimum fit between the key requirements of a market and the particular capabilities of a firm competing in that market.
E)​the process that seeks information about events and relationships in a company's outside environment.

Question 44

Safeway Foods Corporation is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a

A)corporate strategy.
B)target design.
C)mix strategy.
D)marketing strategy.
E)marketing tactic.

Question 45

Managers at the Hightop Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called

A)marketing planning.
B)strategic planning.
C)marketing strategy.
D)corporate strategy.
E)strategic business planning.

Question 46

A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace.

A)​market opportunity
B)​market requirement
C)​competitive advantage
D)​strategic window
E)​competitive opportunity

Question 47

When conducting a SWOT analysis, Walmart's massive distribution network should be classified as an opportunity.

Question 48

Favorable conditions in the marketplace environment that could produce business rewards for the organization if acted upon properly are called

A)​strengths.
B)​market strategies.
C)​market niches.
D)​threats.
E)​opportunities.

Question 49

CyberCycle Inc. is preparing a written document specifying the activities to be performed to implement and control its marketing activities. This document is called the

A)profit plan.
B)marketing program.
C)strategic market program.
D)strategic business plan.
E)marketing plan.

Question 50

Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.

A)​benchmark
B)​sustainable competitive advantage
C)​core competency
D)​strategic vision
E)​marketing opportunity

Question 51

Amazon's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers.

A)​organizational opportunity advantage
B)​strategic window
C)​market requirement
D)​market opportunity
E)​competitive advantage

Question 52

After determining that consumers had concerns about fat and carbohydrates, Piada's Pizza began offering a low-fat, low-carb pizza product. The creation of this new product was the result of

A)a competitive advantage.
B)a well-defined mission statement.
C)good strategic planning.
D)a market opportunity.
E)opportunistic behavior.

Question 53

When managers at Solutions Inc.are developing their strategic plan, they use a market orientation as a guide to ensure that ____ is an integral part of the process.

A)customer satisfaction
B)employee satisfaction
C)the best use of their marketing resources
D)the marketing mix
E)the marketing function

Question 54

An organization's business goals should be derived from its

A)​mission statement.
B)​strategic plan.
C)​strategic business plan.
D)​marketing plan.
E)​marketing strategy.

Question 55

The marketing plan is

A)​a plan of all aspects of an organization's business strategy.
B)​written differently for each SBU.
C)​a written document detailing activities to be performed to implement and control marketing actions.
D)​designed to specify not only marketing, but all other functional areas of business activities as well.
E)​updated only periodically.

Question 56

Which of the following is a characteristic of a marketing objective?

A)It is consistent with both business-unit and corporate strategy.
B)It is a verbal agreement, not in writing.
C)It is not written in measurable terms.
D)It does not specify a time frame for its accomplishment.
E)It clearly identifies how marketing strategy will be implemented.

Question 57

The reputation and well-known brand name of Rolex watches represents a ____ for Rolex.

A)​competitive advantage
B)​core competency
C)​market opportunity
D)​strategic window
E)​pricing strategy

Question 58

An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

A)​opportunities and threats
B)​market opportunities
C)​strengths and weaknesses
D)​activities and responsibilities
E)​organizational resources

Question 59

John Deere's strong name recognition and solid customer demand for its farm and garden equipment are two elements of the firm's

A)​strengths.
B)​opportunities.
C)​weaknesses.
D)​threats.
E)​strategies.

Question 60

When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a

A)​market objective.
B)​market requirement.
C)​strategic market plan.
D)​market opportunity.
E)​corporate objective.

Question 61

The director of marketing for 3M tapes tells the rest of the management team, "When it comes to our transparent packaging tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the packaging tape unit falls into which one of the following classifications?

A)​Problem child
B)​Star
C)​Cash cow
D)​Dog
E)​Question mark

Question 62

Business decisions made in creating a marketing mix

A)​are made before a target market is identified.
B)​are unchangeable once they are agreed upon by management.
C)​are only as good as the organization's understanding of the needs of the target market.
D)​usually take place when a strategic window is open.
E)​must always be consistent with the firm's opportunities.

Question 63

Which of the following statements is incorrect?

A)​Of the three levels of planning, corporate strategy is the broadest.
B)​Business-unit strategy should be consistent with the corporate strategy.
C)​Marketing strategy should be consistent with both the business-unit and corporate strategies.
D)​Strategic planning begins at the marketing level and proceeds through business-unit and corporate levels.
E)​Strategic planning begins at the corporate level and proceeds through business-unit and marketing levels.

Question 64

The Boston Consulting Group's matrix is based on the

A)​idea that a firm's market share and market attractiveness are the important factors for a marketing strategy.
B)​assumption that a firm's actions have a profitable impact on marketing strategy.
C)​business position and market attractiveness of the firm.
D)​philosophy that a product's market growth rate and its market share are important determinants of its marketing strategy.
E)​idea that a product's market growth rate and market attractiveness determine the marketing strategy.

Question 65

____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.

A)​Corporate
B)​Business-unit
C)​Marketing
D)​Mission statement
E)​Marketing mix

Question 66

According to the Boston Consulting Group, marketers may classify their products as all of the following except

A)​dogs.
B)​cash contributors.
C)​question marks.
D)​stars.
E)​cash cows.

Question 67

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a​

A)​profit entity.
B)​strategic business unit.
C)​marketing program.
D)​small business.
E)​diversified corporation.

Question 68

Ian, a 17-year-old high school student, wants to buy a pack of Marlboro Lights. He has the money to purchase them, but he is still not considered to be a market for the product due to his lack of ____ to buy.

A)ability
B)willingness
C)authority
D)need
E)location

Question 69

Givency, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both ____ and ____.

A)consistent; flexible
B)formal; flexible
C)variable; flexible
D)consistent; rigid
E)consistent; formal

Question 70

Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.

A)​nonsustainable competitive
B)​sustainable marketing
C)​sustainable control
D)​sustainable implementation
E)​sustainable competitive

Question 71

A group that has the willingness, ability, and authority to buy a product is a

A)​market.
B)​consumer.
C)​strategic business unit.
D)​business customer.
E)​strategic window.

Question 72

The percentage of a market which actually buys a specific product from a specific company is referred to as that product's

A)​strategic segment
B)​target market
C)​market share
D)​market cut
E)​market position

Question 73

A marketing plan

A)​is characteristic of production-oriented firms and other mass producers.
B)​provides a framework for implementing and controlling marketing activities.
C)​always increases the marketing manager's operating costs.
D)​produces plans that are short term in orientation.
E)​restricts the marketing manager's future options.

Question 74

Which of the following is the most specific and detailed type of business strategy?

A)​business-unit
B)​marketing
C)​corporate
D)​customer service
E)​tactical

Question 75

According to the text, a market is defined as

A)​a place to buy products.
B)​the buyers of the products that a company develops, promotes, prices, and distributes.
C)​the specific group of customers on whom an organization focuses its marketing efforts.
D)​a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products.
E)​the percentage of a group of customers that actually buys a specific product from a specific company.

Question 76

Harley-Davidson's Harley Owner's Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) ____ over other motorcycle manufacturers.

A)controllable advantage​
B)​uncontrollable competitive advantage
C)​sustainable marketing advantage
D)​effective competitive advantage
E)​sustainable competitive advantage

Question 77

Based on the work by the Boston Consulting Group, products with a dominant share of the market and good prospects for growth are

A)​dogs.
B)​cash cows.
C)​stars.
D)​question marks.
E)​pigs.

Question 78

Kraft purchased the Duracell Battery Company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) ____ unit of Kraft.

A)​strategic business
B)​marketing
C)​dependent
D)​independent
E)​corporate

Question 79

All marketing mix decisions must have two characteristics: ____ and ____.

A)​consistency; flexibility
B)​consistency; rigidity
C)​formality; flexibility
D)​variability; flexibility
E)​formality; rigidity

Question 80

The Altitude Adventure Academyis developing its marketing mix for the coming year. Its managers know that they must first select ____ which may be the most important decision they make in the planning process.

A)the promotional strategy
B)a distribution method
C)the pricing strategy
D)a target market
E)the desired profit margin