Question 1

Mallory has been hired as the new marketing manager at Luscious Chocolate Company. Prior to taking the job, Mallory researched the company and founds its mission statement. What is one of the questions the mission statement should answer?
A)What does the company need to do to accomplish goals and objectives?
B)What is the company's policy on diversifying its portfolio?
C)What are the specific markets the company wants to reach?
D)How many competitors does the company have?
E)Where is the company located?

Accepted Answer

A mission statement should address what the company needs to do to accomplish its goals and objectives, providing a clear sense of purpose and direction.

Question 2

It is Nathan's job to evaluate the performance of the marketing strategy his company used to promote its new line of tennis shoes and recommend any changes the company should make. Which step of the marketing plan is Nathan responsible for?
A)implementation phase
B)production phase
C)control phase
D)planning phase
E)objective phase

Accepted Answer

Nathan is responsible for the control phase of the marketing plan, which involves evaluating the performance of the marketing strategy and making any necessary changes. The planning phase involves setting goals and objectives for the marketing campaign, while the objective phase involves determining the target market and positioning the product in the market. The implementation phase involves executing the marketing tactics, and the production phase involves producing the actual product.

Question 3

Trista is charged with assessing her company's external environment as part of a SWOT analysis. Trista will study her company's
A)strengths and weaknesses.
B)sales history and profit margins.
C)pension and retirement plans.
D)product specifications.
E)opportunities and threats.

Accepted Answer

Trista's task is to assess the external environment, which includes factors outside of the company's control. Opportunities and threats are two primary components of a company's external environment analysis. Therefore, choice E is the best option as Trista will study her company's opportunities and threats.

Question 4

In mid-2010, Hewlett-Packard Company (HP)acquired Palm Computing Inc., a manufacturer of personal devices and smartphones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in which step of the marketing planning process?
A)perform situation analysis
B)implement marketing mix and allocate resources
C)identify and evaluate opportunities
D)evaluate performance
E)define the business mission

Accepted Answer

The strategic planners were defining the business mission by considering how the acquisition would align with HP's core goals and objectives.

Question 5

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several CDSTEP factors. The "E" in this acronym stands for which factor?
A)ethical
B)environmental
C)ecological
D)economic
E)elemental

Accepted Answer

The "E" in CDSTEP stands for Economic, which refers to the economic factors that can influence a company's operations and opportunities in the marketplace.

Question 6

Manufacturers that use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a(n)________ in a SWOT analysis.
A)weakness
B)opportunity
C)threat
D)strength
E)metric

Accepted Answer

The badly managed just-in-time system resulting in frequent manufacturing delays due to missing parts represents a weakness in the SWOT analysis.

Question 7

Matt pointed out to the board of directors that having the popular teen music group as the company's celebrity endorser has boosted sales by 22% in the 12-18 age bracket. When using a SWOT analysis, the teen music group would be classified as a(n)
A)strength.
B)option.
C)opportunity.
D)weakness.
E)threat.

Accepted Answer

The teen music group is an asset to the company as their endorsement has led to increased sales, making them a strength in the company's SWOT analysis.

Question 8

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called
A)target marketing.
B)market segmentation.
C)positioning.
D)allocation.
E)value capture.

Accepted Answer

Market segmentation is the process of identifying and dividing the market into smaller groups of customers with similar needs, wants, or characteristics. This segmentation helps the company to better understand the needs and preferences of their target customers and develop products and marketing strategies that are tailored to their specific needs. Target marketing is the process of selecting and targeting specific market segments that the company wants to focus on. Positioning is the process of creating a unique image and identity for the company's products or services in the minds of the target customers. Allocation is the process of allocating resources, such as budget, time, and personnel, to different activities or projects. Value capture is the process of capturing the value that a company creates for its customers, employees, or stakeholders, through pricing, cost management, or other strategies.

Question 9

In 2006, Ford Motor Company announced it would severely cut back its automobile production. For parts companies supplying Ford its parts, this represented a(n)
A)weakness.
B)opportunity.
C)strength.
D)threat.
E)strategic plan.

Accepted Answer

The announcement by Ford Motor Company to severely cut back its automobile production is a threat to parts companies supplying Ford its parts. This is because the reduction in production will result in a decrease in demand for parts, leading to fewer sales and potentially lower revenues for these companies.

Question 10

Because it was able to deliver merchandise overnight, in the required quantities, and at a lower delivery cost than its competitors, Sam's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Sam's Sports Shack demonstrates ________ excellence.
A)product
B)place
C)customer
D)operational
E)locational

Accepted Answer

Sam's Sports Shack's ability to deliver merchandise overnight, in required quantities, and at a lower delivery cost than its competitors suggests that it has achieved operational excellence, which focuses on efficiency and cost-effectiveness in business operations.

Question 11

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates
A)weaknesses.
B)opportunities.
C)strengths.
D)threats.
E)strategic plans.

Accepted Answer

Expansion of U.S. trade agreements with other countries creates opportunities for U.S. businesses with strong export capabilities to increase their customer base and profits by accessing new international markets.

Question 12

Julius is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to
A)develop a business mission statement.
B)choose the best target markets.
C)reposition existing segments.
D)divide the marketplace into subgroups.
E)conduct a SWOT analysis.

Accepted Answer

The first step in STP analysis is to divide the marketplace into subgroups based on similar needs and characteristics. This process of market segmentation allows the firm to better understand and target specific groups of customers with tailored marketing strategies. Developing a business mission statement, choosing target markets, repositioning segments, and conducting a SWOT analysis are all important steps in the overall marketing planning process, but they come after the initial segmentation step in the STP analysis.

Question 13

Which factor, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity as identified by a SWOT analysis?
A)The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity.
B)Recent consumer studies have indicated that Chinese consumers prefer American cars.
C)A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.
D)Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors.
E)The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

Accepted Answer

Opportunities in a SWOT analysis are external factors that can be advantageous if leveraged properly. The preference of Chinese consumers for American cars represents a market opportunity for the U.S. auto manufacturer to expand or increase its market share in China.

Question 14

Which factor, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat as identified by a SWOT analysis?
A)The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity.
B)Recent consumer studies have indicated that Chinese consumers prefer American cars.
C)A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.
D)Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors.
E)The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

Accepted Answer

The class action lawsuit is a clear example of a threat to the company, as it could result in significant financial and reputational damage. The other options may present challenges or opportunities, but do not pose an immediate threat like a lawsuit.

Question 15

________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.
A)Target marketing
B)Market segmentation
C)Market positioning
D)Allocation
E)Value capture

Accepted Answer

Market positioning involves defining the marketing mix variables (product, price, promotion, and place) in a way that creates a clear and desirable image of the product in the minds of the target customers, relative to competing products. It involves identifying and emphasizing the unique attributes, benefits, and values of the product to distinguish it from rivals and appeal to the needs and preferences of the target market segments. Target marketing refers to selecting and prioritizing specific customer groups as the focus of marketing efforts, while market segmentation is the process of dividing a broad market into smaller groups of consumers based on shared characteristics or needs. Allocation and value capture are related to the distribution of resources and costs to create and capture value, respectively.

Question 16

In a SWOT analysis, increasing gasoline prices would represent a potential ________ for manufacturers of electric cars.
A)internal weakness
B)external threat
C)external opportunity
D)operational advantage
E)marketing mix

Accepted Answer

Increasing gasoline prices present an opportunity for manufacturers of electric cars, as consumers may be more inclined to consider and purchase electric vehicles as an alternative to gasoline-powered cars.

Question 17

What is the third step in the marketing planning process?
A)define the business mission
B)identify and evaluate opportunities
C)evaluate using a matrix
D)implement marketing mix and allocate resources
E)perform situation analysis

Accepted Answer

The third step in the marketing planning process is to identify and evaluate opportunities, which involves assessing potential market segments, target markets, and marketing mix strategies. This step comes after defining the business mission and performing a situation analysis, but before evaluating options using a matrix and implementing the marketing mix.

Question 18

A former advertising campaign for GEICO Insurance used the slogan "So easy, even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website-implying it was simpler than using a competitor site. This campaign was part of GEICO's
A)mission statement.
B)market segmentation plan.
C)product strategy.
D)customer excellence strategy.
E)positioning strategy.

Accepted Answer

The advertising campaign for GEICO Insurance using the slogan "So easy, even a caveman could do it" is a part of GEICO's positioning strategy. The campaign aimed to position GEICO as a hassle-free, user-friendly insurance provider that is easier to use than its competitors.

Question 19

During which phase of the marketing planning process does a firm evaluate performance using marketing metrics?
A)planning phase
B)implementation phase
C)production phase
D)control phase
E)strategy phase

Accepted Answer

The control phase is the stage where a firm evaluates performance using marketing metrics. In this phase, the firm measures the effectiveness of its marketing strategies and tactics to make necessary adjustments and improvements for future planning.

Question 20

After defining the business mission, what should a firm do next to develop a marketing plan?
A)conduct an STP analysis
B)perform a situation analysis
C)develop a positioning strategy
D)select a target market
E)implement the four Ps

Accepted Answer

After defining the business mission, the next step to develop a marketing plan is to perform a situation analysis. This involves analyzing the company's internal and external environment, including its strengths, weaknesses, opportunities, and threats (SWOT analysis), as well as examining industry trends and competitor activities. Only after completing a thorough situation analysis can the firm make informed decisions about segmentation, targeting, positioning, and the marketing mix (the four Ps).

Quiz 2: Developing Marketing Strategies and a Marketing Plan

Mallory has been hired as the new marketing manager at Luscious Chocolate Company. Prior to taking the job, Mallory researched the company and founds its mission statement. What is one of the questions the mission statement should answer?

It is Nathan's job to evaluate the performance of the marketing strategy his company used to promote its new line of tennis shoes and recommend any changes the company should make. Which step of the marketing plan is Nathan responsible for?

Trista is charged with assessing her company's external environment as part of a SWOT analysis. Trista will study her company's

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several CDSTEP factors. The "E" in this acronym stands for which factor?

Matt pointed out to the board of directors that having the popular teen music group as the company's celebrity endorser has boosted sales by 22% in the 12-18 age bracket. When using a SWOT analysis, the teen music group would be classified as a(n)

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called

In 2006, Ford Motor Company announced it would severely cut back its automobile production. For parts companies supplying Ford its parts, this represented a(n)

Because it was able to deliver merchandise overnight, in the required quantities, and at a lower delivery cost than its competitors, Sam's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Sam's Sports Shack demonstrates ________ excellence.

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates

Julius is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to

Which factor, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity as identified by a SWOT analysis?

Which factor, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat as identified by a SWOT analysis?

________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

In a SWOT analysis, increasing gasoline prices would represent a potential ________ for manufacturers of electric cars.

What is the third step in the marketing planning process?

A former advertising campaign for GEICO Insurance used the slogan "So easy, even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website-implying it was simpler than using a competitor site. This campaign was part of GEICO's

During which phase of the marketing planning process does a firm evaluate performance using marketing metrics?

After defining the business mission, what should a firm do next to develop a marketing plan?