Question 1

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

Accepted Answer

A firm's goals should be derived from its organizational mission, as the mission outlines the company's purpose and direction, which then informs its specific goals and objectives.

Question 2

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.

Accepted Answer

This statement is correct. The first step in the strategic planning process is conducting a SWOT analysis which involves identifying the organization's internal strengths and weaknesses as well as external opportunities and threats in the marketing environment.

Question 3

Marketing strategies should be established before marketing objectives are decided.

Accepted Answer

Marketing objectives should be established first as they define what the business wants to achieve, guiding the development of strategies to reach those goals.

Question 4

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

Accepted Answer

The answer of A marketing strategy is a written document...

Question 5

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

Accepted Answer

Marketing objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). By stating objectives in a measurable way, marketers can track progress and evaluate the effectiveness of their marketing strategies.

Question 6

Scenario 2.2
Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.
-Refer to Scenario 2.2. According to the BCG matrix, the hang-gliding and bungee jumping tours have been a ____ for EXperience Limited, while the skydiving and motorcross tours represent a ____.
A)star; dog
B)cash cow; question mark
C)cash cow; star
D)star; cash cow
E)star; question mark

Accepted Answer

The hang-gliding and bungee jumping tours have likely been around for a while and are well-established, making them cash cows. On the other hand, the skydiving and motocross tours are new to the company and have uncertain profitability, making them question marks.

Question 7

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

Accepted Answer

This is a correct definition of a core competency. It is a unique capability or set of capabilities that a company possesses and is central to its business strategy, leading to a competitive advantage in the market.

Question 8

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.

Accepted Answer

The statement is true. The analysis of strengths and weaknesses is part of the internal analysis of an organization's situation. It aims to evaluate the company's resources, capabilities, and internal processes to determine its competitive advantages and disadvantages. This analysis helps the organization identify areas of improvement and areas where it has a strategic advantage over its competitors.

Question 9

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

Accepted Answer

Goals are the desired outcomes or achievements that the organization aims for, and they serve as a guide for decision-making and resource allocation.

Question 10

Scenario 2.1
Use the following to answer the questions.
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights.
-Refer to Scenario 2.1. The fact that Southwest Airlines has a history of being able to retain its employees is a(n) ____ in its SWOT analysis. This low turnover creates more knowledgeable and satisfied employees, a potential _______.
A)weakness; opportunity
B)strength; competitive advantage
C)threat; market opportunity
D)opportunity; competitive advantage
E)strength; market opportunity

Accepted Answer

Employee retention is a strength in Southwest Airlines' SWOT analysis because it leads to more knowledgeable and satisfied employees, which in turn contributes to the company's high level of customer satisfaction. This positive employee culture also provides a competitive advantage for the company.

Question 11

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

Accepted Answer

This statement is true. By aligning its strengths with the needs of the market, a company can gain a competitive advantage by offering unique and valuable products or services.

Question 12

Scenario 2.2
Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.
-Refer to Scenario 2.2. The college-aged student represents EXperience Limited's ____, and the tours its operates represent the ____ element of the marketing mix.
A)target market; distribution
B)customer relationships; distribution
C)cash cow; product
D)cash cow; distribution
E)target market; product

Accepted Answer

The college-aged student represents the target market - the group of people that the company wants to sell its products/services to. The tours that the company operates represent the product element of the marketing mix - the offering that is being sold. Therefore, option E is the correct answer.

Question 13

Scenario 2.1
Use the following to answer the questions.
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights.
-Refer to Scenario 2.1. Southwest's low fares, dependability, and its on-time flights represent its
A)competitive advantage
B)marketing opportunity
C)marketing plan
D)marketing objectives
E)total quality management

Accepted Answer

Southwest's low fares, dependability, and on-time flights are its competitive advantage, distinguishing it from other airlines and attracting customers.

Question 14

Scenario 2.2
Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.
-Refer to Scenario 2.2. The information in EXperience Limited's database could be best used to develop
A)a TQM program
B)SWOT analysis
C)a marketing plan
D)a CRM program
E)an internal marketing program

Accepted Answer

The information in the database can be used to develop a CRM (Customer Relationship Management) program, whereby the company can analyze customer data to better understand their preferences and behaviors, and then develop targeted marketing campaigns to increase customer loyalty and retention.

Question 15

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

Accepted Answer

A long-term view or vision of what the organization wants to become is called a vision statement, while a mission statement outlines the organization's purpose and reason for existence.

Question 16

A strategic window results from the right combination of circumstances and timing, allowing a firm to take action to reach a particular target market.

Accepted Answer

The answer of A strategic window results from the right...

Question 17

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

Accepted Answer

The answer of A firm's organizational goals should be derived...

Question 18

Scenario 2.2
Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.
-Refer to Scenario 2.2. The fact that college enrollments have been increasing at a fast rate the past few years is an example of ____ and creates a ____ for EXperience Limited.
A)an environmental factor; marketing opportunity
B)an environmental factor; strategic door
C)a company strength; marketing opportunity
D)a company strength; competitive advantage
E)a marketing opportunity; competitive advantage

Accepted Answer

The increasing number of college enrollments is an environmental factor that creates a marketing opportunity for EXperience Limited to target college-aged students in promoting their tours and vacations.

Question 19

Through the process of strategic planning, a firm establishes an organizational mission and goals, corporate strategy, marketing objectives, marketing strategy, and a marketing plan.

Accepted Answer

This statement accurately describes the process of strategic planning in a firm.

Question 20

Scenario 2.1
Use the following to answer the questions.
Southwest Airlines has a history of being able to retain its employees due to the atmosphere and culture of the company. Employees have been known to dress up in costume on an airplane, engage in "games" with the passengers, and generally provide a fun atmosphere for traveling. While other airlines have low rates of customer satisfaction, Southwest tends to maintain a high rating with its customers. Recent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its maximum, adding to the negative experience of airline travel. Southwest keeps its costs low through several methods, one being that they do not serve meals on flights, or provide pre-boarding passes. The typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. Southwest is known for its low fares, its dependability, and its on-time flights.
-Refer to Scenario 2.1. In Southwest Airlines' SWOT analysis, the rising gas prices are a(n) ____, while the fact that other airlines are charging for all checked baggage may create a(n) ____.
A)threat; strength
B)weakness; strength
C)threat; opportunity
D)weakness; opportunity
E)opportunity; strength

Accepted Answer

The answer of Scenario 2.1
Use the following to answer the...

Quiz 2: Planning Implementing and Evaluating Marketing Strategies