Deck 2: Elements of Marketing Strategy and Planning

Question 1

As long as all activities in the value chain are working well,managers do not need to be concerned with aligning the activities.

Answer 1

False

Question 2

The two parts of value equation are benefits and cost.

Answer 2

True

Question 3

Strategy has two key phases: formulation and execution.

Answer 3

True

Question 4

According to the BCG matrix,a business that is classified as a star has high growth and low market share.

Question 5

Customer loyalty almost always is directly related to the various sources of value the customer is presently deriving from the relationship with the company and its brands.

Question 6

(Little m)marketing serves as the driver of business strategy.

Question 7

Outbound logistics refers to the transportation and distribution of products.

Question 8

In the GE Business Screen model,Business Position looks at factors like government regulations,sensitivity to economic trends and size of the market.

Question 9

The Sarbanes-Oxley Act of 2002 established specific procedures to ensure ethical conduct at the highest levels of the company,including the Board of Directors.

Question 10

Value proposition should drive customer loyalty.

Question 11

According to Porter,when core competencies are superior to those of competitors,they are called distinctive competencies.

Question 12

Objectives are measurable and goals are broad statements of generally desired accomplishments in support of the firm's mission statement.

Question 13

All of the activities in the value chain lead to margin.

Question 14

Firms should not be concerned that satisfied customers will switch to another brand.

Question 15

Starbucks is known to have shops located across the street from each other.It appears that the coffee shop chain is offering place utility.

Question 16

Marketing plays a central role in creating,communicating,delivering,and exchanging offerings that have value.

Question 17

A mission statement does not include a discussion of the firm's strategic vision.

Question 18

The benefits of a product or service must include all types of utility.

Question 19

The GE Business Screen portfolio model evaluates businesses on the dimensions of market attractiveness and market share.

Question 20

Linda imports fine art paintings and photographs that she sells to hotels.When the dollar is weak against foreign currencies,she struggles to cover her costs.Business has increased 400% in the last five years.With additional resources,she believes she can expand into profitable hospitals and nursing home markets.According to the BCG matrix,Linda's business is a representation of dog strategy.

Question 21

Form utility is _________________.

A) Marketing's task in creating an offering that has value
B) Production's task in transforming raw material into an offering that has value
C) Management's task in deciding where to distribute the product
D) Marketing's task in deciding how to price the product
E) Marketing's task in deciding how to communicate the product

Question 22

José and Maria's son Jorge is a talented swimmer.The pool where he takes swimming lessons is 45 miles from their home in suburban Atlanta.________ utility is NOT part of the round trip they make six days a week.

A) Exchange
B) Time and place
C) Ownership
D) Form and ownership
E) Place

Question 23

According to Michael Porter,the first step of marketing planning is the establishment of goals and objectives.

Question 24

Shabreka,a senior partner with a law firm,likes to shop in a designer boutique located in a city 30 miles from her home.This store offers _________ utility.

A) Time and place
B) Form
C) Ownership
D) Form and ownership
E) Place

Question 25

Jack attributes the success of his pre-owned automobile business to the clear low-key messages created by a small advertising agency.Lately a new media buyer at the agency has changed the key radio stations where Jack's Auto ads are played and his sales are slipping.The problem occurs in the ____________ activity of the value chain.

A) Inbound logistics
B) Operations
C) Outbound logistics
D) Marketing and sales
E) Service

Question 26

Martha purchases books,music,and videos at a large bookstore chain.Although the store nearest to her house is less than five miles away it is a bit out of the way.The location where she shops most frequently is 120 miles north of her home.It is located just off the highway and a good place to take a break when she drives 270 miles to visit her parents once a month.The store that is further away from her home offers ____________ utility.

A) Time
B) Form
C) Ownership and form
D) Form and cost
E) Place

Question 27

The concept of value chain was created by ___________.

A) Fred Wiersema
B) Michael Porter
C) Jim Collins
D) Peter Drucker
E) Ingor Ansoff

Question 28

Lately the demand for building materials has dropped due to the slow down in new housing construction.Wood-O Corp.is thinking of closing its building materials division as it has been making a loss.Mostly likely the building materials division would be classified as a ____________.

A) Star
B) Cash cow
C) Dog
D) Problem Child
E) Top Gun

Question 29

Enrico pays a market rate to take his young children to daycare that is run by his employer.It is open until 9:00 p.m.,a time by which everyone leaves.This service offered by his company offers ________________ utility.

A) Time
B) Form
C) Place
D) Form and ownership
E) Time and place

Question 30

___________ is NOT one of the five primary activities in the value chain.

A) Inbound logistics
B) Operations
C) Human resource management
D) Outbound logistics
E) Marketing and sales

Question 31

JTR Recording Company plans to close down a division that makes classical music cassette tapes.The demand for this type of recording has dwindled to the point that the cassette division is barely at break even in terms of revenue.Mostly likely the cassette division would be classified as a ____________.

A) Star
B) Cash cow
C) Dog
D) Problem Child
E) Top Gun

Question 32

A window manufacturer has trouble getting raw materials for production.The problem occurs in the ____________ activity of the value chain.

A) Inbound logistics
B) Operations
C) Outbound logistics
D) Marketing and sales
E) Service

Question 33

Ajax Corp.has a subsidiary,Ajax TV Products,which makes cable television converter boxes.This division has provided the parent company with a steady revenue stream for over thirty years and it is expected to continue its contribution to revenue even in future.Ajax TV Products most likely would be classified as a ____________.

A) Star
B) Cash cow
C) Dog
D) Problem Child
E) Top Gun

Question 34

Miriam and Gregory are partners in a manufacturing firm that supplies electronic parts to over 1,500 companies.Recently,employees have been complaining that they were not told of changes in health insurance coverage and premiums.They attribute this to a problem with _____________.

A) Firm infrastructure
B) Human resources management
C) Technology development
D) Inbound logistics
E) Procurement

Question 35

Mammoth Foods,a major agricultural corporation,recently purchased MJS Organic Foods Co.MJS was established six years ago and has become a major supplier to restaurants in the northeastern United States.The organic herbs,vegetables,and fruit market is expected to have a double-digit growth rate over the next decade.Most like,MJS would be classified as a ___________ under the Boston Consulting Group model.

A) Star
B) Cash cow
C) Dog
D) Problem Child
E) Top Gun

Question 36

According to Ansoff's Product-Market matrix,market development strategies allow the firm to introduce existing products to new customers,often including international markets.

Question 37

Dave is a close-up magician who is famous for his card tricks.He creates and sells DVDs of his magic tricks.Lately he has been having trouble getting the DVDs produced in a timely manner.The problem occurs in the ____________ activity of the value chain.

A) Inbound logistics
B) Operations
C) Outbound logistics
D) Marketing and sales
E) Service

Question 38

Value may be defined as the ratio of bundled benefits received to the cost incurred by the customer to receive those benefits.____________ is NOT thought of as one of the costs.

A) Monetary cost
B) Time to shop
C) Convenience
D) Poor service quality
E) Skill or expertise

Question 39

Hot and Cold Corp.makes disposable coffee and soft drink cups for use in fast food restaurants,hospitals,convenience stores and the like.The company is working on a new product that will biodegrade within five years of being put in a landfill.This promising new product line would most likely be classified as a ______________.

A) Star
B) Cash cow
C) Dog
D) Problem Child
E) Top Gun

Question 40

Market penetration strategies allow the firm to invest additional resources to have existing customers consume new products.

Question 41

Irma's Cupcakes,a family-owned chain of bakeries,is primarily located in malls.The bakery shops had rapid growth in its first seven years.Now the family has decided that adding more shops would make it impossible for them to monitor operations.Most likely the family is pursuing a generic strategy of _________________.

A) Retrenchment
B) Stability
C) Diversification via concentric means
D) Growth/Concentration via vertical integration
E) Growth/Concentration based on horizontal integration

Question 42

Round & Round,a maker of bicycle tires,has faced stiff competition from imported bicycle tires.In one high profit product line,tires for wheelbarrows and other carts,it faces almost no competition in the U.S.Round & Round thinks of the cart tires as a _____.

A) Star
B) Cash cow
C) Dog
D) Problem Child
E) Top Gun

Question 43

The business position dimension of the GE Business Screen includes all but _________.

A) Technology
B) Growth
C) Patents
D) Governmental regulations
E) Marketing

Question 44

FRAGmasters Computer Games is creating a marketing plan.Managers are concerned with current distribution.An examination of this issue would be in the ____________ section of the marketing plan.

A) Firm structure and systems
B) Technological
C) Firm resources
D) Segmentation strategies
E) Supply chain strategies

Question 45

The Green Scene Co.,a struggling start-up firm,has an environmentally friendly pesticide that is approved for use by commercial organic farmers.The pesticide is made from all natural ingredients and has great potential.A small investment firm has injected cash in Green Scene.Mostly likely the investment firm views Green Scene as a _________.

A) Star
B) Cash cow
C) Dog
D) Problem Child
E) Top Gun

Question 46

A SWOT analysis should NOT __________________.

A) Analyze the competition
B) Look at internal strengths
C) Include factors from the Situation Analysis
D) Identify natural factors
E) Suggest solutions to problems

Question 47

The price of a barrel of oil has varied dramatically in the last few years.When the price of oil is high,automobile drivers look to find ways to drive less.An examination of this issue would be in the ____________ section of the marketing plan.

A) Bargaining power of buyers
B) Bargaining power of suppliers
C) Threat of new entrants
D) Threat of substitute products
E) Rivalry among existing firms

Question 48

______________ is NOT considered a goal.

A) To deliver the best customer service
B) To practice responsible financial management
C) To increase revenue by 15 to 20% in each of the next five years
D) To hire the best people
E) To minimize waste

Question 49

In the section of a marketing plan devoted to firm resources,one expects to find an examination of a firm's functional/operational level of resources and capabilities and how they impact the firm's ability to develop and execute market-driven strategies.These capabilities would include all but _________.

A) Information systems
B) Marketing capabilities
C) Financial capabilities
D) Transportation systems across the country
E) Human capabilities

Question 50

The airline industry must comply with regulations set by the Federal Aviation Administration and the National Safety Board.A discussion of this would be included in the ___________ part of a marketing plan.

A) Socio-cultural/Demographic
B) Firm structure and systems
C) Political, legal, and ethical
D) Firm resources
E) Threat of new entrants

Question 51

Hernandez Brothers manufactures trailers that are used by lawn service companies.The company was started in Texas by their father but has expanded in the last 12 years to include 26 sales and service centers throughout the southeast.Mostly likely,the company is using a generic strategy based on _________.

A) Retrenchment
B) Stability
C) Market development
D) Growth/Concentration via vertical integration
E) Growth/Concentration based on horizontal integration

Question 52

The best place in a SWOT analysis to list the competitive trends is ____________.

A) External opportunities
B) External threats
C) Internal opportunities
D) Internal strengths
E) Internal weaknesses

Question 53

The firm's ____________ articulates an organization's purpose,or reason for existence.It should define the unique purpose that sets it apart from competitors and identifies the scope of the company's operations,products,and markets.

A) Mission statement
B) Goals
C) Objectives
D) Vision
E) Value proposition

Question 54

According to the 2000 U.S.Census,Hispanic Americans outnumber African-Americans.Most likely an examination of this issue would be in the ____________ section of the marketing plan.

A) Natural factors
B) Legal issues
C) Economic trends
D) Socio-cultural/Demographic
E) Threat of new entrants

Question 55

________________ is NOT considered an objective.

A) To improve customer satisfaction ratings to 95%
B) To increase ROI by 20%
C) To be the leader in our field
D) To reduce cost of scrap material to less than 1% of total manufacturing cost
E) To get five new distributors

Question 56

One competitive force NOT addressed directly by Michael Porter is ____________.

A) Power of competitive forces
B) Power of substitute forces
C) Power of other stakeholders
D) Power of suppliers
E) Power of potential entrants

Question 57

Really Big Financial Co.has been forced to sell the under performing mortgage division so that senior management can focus on the relatively profitable sector of private banking.Mostly likely the company is pursuing a generic business strategy of _________.

A) Retrenchment
B) Stability
C) Diversification via concentric means
D) Growth/Concentration via vertical integration
E) Growth/Concentration based on horizontal integration

Question 58

Mega Corp.is interested in buying MD Softworks,a medical software firm.Two software engineers started the company and they have made risky financial decisions.Mega Corp.believes that with proper management,the software firm will become an industry leader.Mostly likely the software firm would be classified as a __________.

A) Star
B) Cash cow
C) Dog
D) Problem Child
E) Top Gun

Question 59

Some large retailers require suppliers to ship products that have Radio Frequency Identification (RFID)tags to facilitate the tracking of products.Other firms may consider implementing this cost-saving tactic.Most likely a description of this would be in the _____________ part of a marketing plan.

A) Economic situation
B) Natural factors
C) Technological factors
D) Bargaining power of suppliers
E) Marketing capabilities

Question 60

Growth,stability,and retrenchment refer to a firm's position relating to its _______.

A) Specific strategy
B) Generic strategy
C) Future strategy
D) Marketing strategy
E) Corporate strategy

Question 61

Open Sesame is a chain of Thai restaurants located in the western United States.The marketing manager has discovered that there is a growing demand for Spanish food and that Latino Americans spend more money on food away from home than other ethnic groups.This information would be included in the _____ part of the SWOT analysis.

A) Strengths
B) Threats
C) Opportunities
D) Strategic
E) Weaknesses

Question 62

An entrepreneur wants to expand her business and is faced with rising interest rates and tightening of credit.The best place in a SWOT analysis to identify this economic trend is ___________________.

A) External opportunities
B) External threats
C) Internal opportunities
D) Internal strengths
E) Internal weaknesses

Question 63

Roberta has many items to include in the SWOT analysis for New Home Builders Corp.An examination of competitors that have gone bankrupt would be included in the _______ section.

A) Strengths
B) Threats
C) Opportunities
D) Strategy
E) Weaknesses

Question 64

Bliss Massage Therapy Center maintains a database of over 700 clients and sends each one a special discount offer in the month of his or her birthday.Most likely,this would be classified as __________ in Ansoff's Product-Market Matrix.

A) Market diversification
B) Marketing strategy development
C) Market penetration
D) Product development
E) Market development

Question 65

The best place in a SWOT analysis to identify the possibility of acquiring a growing competitor is in ___________________.

A) External opportunities
B) External threats
C) Internal opportunities
D) Internal strengths
E) Internal weaknesses

Question 66

Call Company has 12 call centers worldwide.The firm is considering the purchase of a software firm that serves the oil and gas industry.Most likely,this would be classified as __________ in Ansoff's Product-Market Matrix.

A) Market diversification
B) Marketing strategy development
C) Market penetration
D) Product development
E) Market development

Question 67

Roberta's company,New Home Builders Corp.,is a specialist in designing one-story homes that have wide hallways and walk-in showers that could accommodate the need to use a wheelchair or walker,and other amenities that allow couples to remain in their homes as they age.The company's strong value proposition has allowed it to maintain steady market share in a weak housing market.A discussion of this relative advantage would be included in the _______ section of the SWOT.

A) Strengths
B) Threats
C) Opportunities
D) Strategy
E) Weaknesses

Question 68

Great Skate skateboarding parks' marketing team wants to stay open until 3:00 a.m.The parks currently close at midnight.Most likely,this would be classified as a __________ strategy in Ansoff's Product-Market Matrix.

A) Market diversification
B) Marketing strategy development
C) Market penetration
D) Product development
E) Market development

Question 69

Goals and objectives should be set _____________.

A) At the beginning of marketing planning
B) At the end of the situation analysis
C) After marketing strategies are fixed
D) After completion of all market research, situation analysis, and competitor analysis
E) None of the above

Question 70

The U.S.dollar has strengthened against the Euro and the Yen.A discussion of this would be included in the ______ section of the SWOT.

A) Strengths
B) Threats
C) Opportunities
D) Strategic
E) Weaknesses

Question 71

The marketing manager at MWJ Architects,a firm that specializes in design baseball parks,discovers a glitch in the software that the firm uses and that some of its most recent projects will come in over budget.A discussion of this would be included in the ______ section of the SWOT.

A) Strengths
B) Threats
C) Opportunities
D) Strategic
E) Weaknesses

Question 72

Rush Express,a North American delivery service,wants to expand service into South America.This is classified as ___________ in Ansoff's Product-Market Matrix.

A) Market diversification
B) Marketing strategy development
C) Market penetration
D) Product development
E) Market development

Question 73

The best place in a SWOT analysis to identify a reduced marketing budget is in ___________________.

A) External opportunities
B) External threats
C) Internal opportunities
D) Internal strengths
E) Internal weaknesses

Question 74

A former professional football player invested in a seafood restaurant chain when he played ball.Now that he is retired from the NFL,he and his partners want to start a chain of organic fast-casual restaurants in their region of 6 million households.Most likely,this would be classified as __________ in Ansoff's Product-Market Matrix.

A) Market diversification
B) Marketing strategy development
C) Market penetration
D) Product development
E) Market development

Question 75

The best place in a SWOT analysis to identify problems with hurricanes,earthquakes,major snowfalls,and other natural phenomena is ___________________.

A) External opportunities
B) External threats
C) Internal opportunities
D) Internal strengths
E) Internal weaknesses

Question 76

Roberta,the marketing manager at New Home Builders Corp.,is crafting a SWOT analysis.She should include the downturn in the U.S.economy and tightening of the credit markets in the ___________ section.

A) Strengths
B) Threats
C) Opportunities
D) Strategic
E) Weaknesses

Question 77

Beach Bums,a maker of swim suits,has contract manufacturing overseas.The firm is concerned that tariffs may be increased.An examination of this issue would take place in the _________ of the situation analysis.

A) Economic situation
B) Natural factors
C) Competitive situation
D) Political, legal, and ethical factors
E) Logistic situation

Question 78

The best place in a SWOT analysis to identify the threat of substitute products is in ___________________.

A) External opportunities
B) External threats
C) Internal opportunities
D) Internal strengths
E) Internal weaknesses

Question 79

Phat Suitz,a manufacturer of male clothing,initially started as a small firm without any separate HR department.Now the firm has more than 100 employees and the administrative assistant who has taken care of issues like processing new hires and managing benefits since the founding of the company is overwhelmed with too many tasks.Managers have determined a need for a human resources department.An examination of this issue would be found in the ___________ part of the situation analysis.

A) Firm structure
B) Firm culture
C) Firm leadership
D) Firm resources
E) Firm history

Question 80

Vinny,the marketing manager for Bass Line Audio Systems,wants the company to offer an MP3 player,a product the company doesn't have.He thinks that the firm has many brand loyal customers who would buy it.Most likely,this would be classified as __________ in Ansoff's Product-Market Matrix.

A) Market diversification
B) Marketing strategy development
C) Market penetration
D) Product development
E) Market development