Question 1

A manager's decision to run a quarter-page ad in the business section of the local newspaper to promote goodwill toward his company is part of a campaign plan.

Accepted Answer

Running an ad in a local newspaper to promote goodwill is a specific tactic that falls under a larger campaign plan to improve the company's image and reputation.

Question 2

Describe the components and purpose of a SWOT analysis.

Accepted Answer

The answer of Describe the components and purpose of a...

Question 3

The following statement appeared in an organization's business plan: "Quick and Dirty Auto Repair aims to offer high-quality auto repair services and a full range of auto parts, focusing on personalized, convenient, and rapid service." Which part of a business plan does this represent?

Accepted Answer

This statement outlines the overall purpose and direction of the business, which aligns with the definition of a business mission. It describes what the business aims to achieve in terms of service quality, product range, and customer experience.

Question 4

For Hyundai Corporation, customers who care about the price of a car and its operating economy make up one ________.

Accepted Answer

A market segment is a group of customers who share similar needs and preferences. In this case, Hyundai has identified a specific group of customers who prioritize price and operating economy, and has tailored their marketing efforts to appeal to this segment.

Question 5

Define account planning and describe the tasks involved.

Accepted Answer

The answer of Define account planning and describe the tasks...

Question 6

Biopure is a company that manufactures and markets oxygen therapeutics. Its products are Hemopure for human use and Oxyglobin for animal use. Both have been developed as alternatives to red blood cell transfusions. Which of the following would be part of Biopure's internal environment?

Accepted Answer

Biopure's patented manufacturing process is an internal factor because it is within the control of the company and can directly affect the production of Hemopure and Oxyglobin. Options A, B, D, and E are external factors that are outside of Biopure's direct control and can be influenced by external forces such as regulatory agencies, market conditions, competitors, and changes in laws.

Question 7

Newman's Own is a brand of salad dressings. In 2004, low-carbohydrate dieting became the craze among consumers, with millions attempting to follow a low-carb lifestyle. In print advertising, Newman's Own featured the fact that several of its dressings are low in carbohydrates. In terms of a SWOT analysis, the fact that the brand was low in carbohydrates represents a(n)________.

Accepted Answer

The fact that several of Newman's Own salad dressings were low in carbohydrates is a strength for the brand. It gave them a competitive advantage during the low-carb diet craze and attracted consumers who were following a low-carb lifestyle.

Question 8

Name and describe six of the nine components of a typical communication brief.

Accepted Answer

The answer of Name and describe six of the nine...

Question 9

For advertising to be truly effective, it must focus on only one effect at a time.

Accepted Answer

Advertising can focus on multiple effects at a time, such as raising awareness, changing attitudes, and encouraging behavior. The key is to have a clear and focused message that speaks to the audience's needs and desires.

Question 10

Compare and contrast a business plan, a marketing plan, and an advertising plan.

Accepted Answer

The answer of Compare and contrast a business plan, a...

Question 11

A product must be differentiated on tangible differences in order to create long-lasting product differentiation.

Accepted Answer

Tangible differences can be easily imitated by competitors, but intangible differences like brand image, customer service, and overall customer experience are difficult to replicate, creating long-lasting product differentiation.

Question 12

Harris, the marketing manager at a small sports retail chain, has conducted a marketing analysis. He has investigated the company's internal resources and situational factors, as well as factors and trends in the competitive sports retail chain market. Which of the following has Harris completed?

Accepted Answer

Harris has conducted a SWOT analysis which involves analyzing a company's strengths, weaknesses, opportunities, and threats. A business plan outlines the overall strategy and objectives for a company, a creative brief is a document used by agencies to guide the development of creative materials, a marketing plan is a detailed roadmap for a company's marketing efforts, and a marketing mix is the combination of product, price, promotion, and place used by a company to market its products or services.

Question 13

In Party People's marketing plan, two of the company goals are "Achieve growth rate in sales of 15% for the year 2012" and "Maintain a gross margin of 40% each month." As indicated by these two examples, an objective should be ________.

Accepted Answer

Both of the company goals are specific and quantifiable, which indicates that an objective should be measurable.

Question 14

Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called targeting.

Accepted Answer

The answer of Holiday Inn has divided the total customer...

Question 15

Saturn is "a different kind of company, different kind of a car"; the Hummer is "like nothing else." Statements such as these reflect a firm's ________.

Accepted Answer

These statements reflect a firm's positioning strategy, which involves creating a distinct image and identity for a brand in the consumers' minds compared to competitors. Saturn and Hummer are differentiating themselves through unique brand messages.

Question 16

Positioning represents one of advertising's most critical tasks.

Accepted Answer

Positioning is a crucial aspect of advertising as it helps to differentiate a brand from its competitors and create a unique perception in the minds of consumers. It involves identifying the key features, benefits, and values of a product or service and communicating them effectively to the target audience.

Question 17

Toward the end of the fiscal year, the owner of a small company came back from lunch concerned because he had learned that a business targeting the same customers as his was planning on spending $150,000 on advertising. As soon as he arrived at the office, he called his financial manager and said, "I want to budget $150,000 for next year's advertising." Which method of budgeting did the owner want to use?

Accepted Answer

The owner wanted to use the competitive method of budgeting, which involves setting a budget based on the spending of competitors.

Question 18

Newman's Own is a brand of salad dressing. In 2004, low-carbohydrate dieting became the craze among consumers, with millions attempting to follow a low-carb lifestyle. In print advertising, Newman's Own featured the fact that several of its dressings are low in carbohydrates. In terms of a SWOT analysis, the low-carb diet trend among consumers represents a(n)________.

Accepted Answer

The low-carb diet trend among consumers represents an opportunity for Newman's Own to promote its low-carb salad dressings and potentially increase sales. However, it is not a strength or weakness of the brand, and it is not a threat as it does not directly harm the brand. Therefore, the best choice is C, opportunity.

Question 19

Name and describe the five common advertising budgeting methods.

Accepted Answer

The answer of Name and describe the five common advertising...

Question 20

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(n)________.

Accepted Answer

Kimball Gardens operates as two separate businesses, selling lawn and garden products and marketing booklets. Each of these businesses can be considered a strategic business unit (SBU) because they are distinct, independently-operating entities within the larger company. A business portfolio would refer to the entire collection of businesses and products that a company offers, while return on investment (ROI) is a financial metric used to measure the profitability of investments. Integrated media company (IMC) and key account are not applicable terms in this scenario.

Quiz 7: Strategic Planning