marketing ch. 2

The process of putting marketing strategies into action

Marketing Implementation

The degree of centralization falls under organizing the market unit—a major part of managing marketing implementation. a. True b. False

a. True

A marketing strategy is stating what is to be accomplished through marketing activities using clear language. It should be measurable. a. True b. False

b. False

Which of the following is based on the philosophy that a product's market growth rate and its market share are important considerations in determining marketing strategy? a. Product-market matrix b. Market growth/market share matrix c. SWOT analysis d. Mission-goal matrix e. Sales analysis

b. Market growth/market share matrix

Which of the following is the last step of establishing a marketing implementation timetable? a. Identifying the activities to be performed b. Organizing activities in the proper order c. Assigning responsibility for completing each activity to one or more employees, teams, or managers d. Separating the activities to be performed in sequence from those to be performed simultaneously e. Determining the time required to complete each activity

c. Assigning responsibility for completing each activity to one or more employees, teams, or managers

A structure in which decision-making authority is delegated as far down the chain of command as possible

Decentralized Organization

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

Market

A division, product line, or other profit center within the parent company

Strategic Business Unit (SBU)

The process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently

Strategic Marketing Management

Establishing performance standards, measuring actual performance, comparing actual performance with established standards, and modifying the marketing strategy, if needed

Strategic Performance Evaluation

The process of establishing an organizational mission and formulating goals, a corporate strategy, marketing objectives, and a marketing strategy

Strategic Planning

A company that understands and manages its costs appropriately has a competitive advantage. True False

True

Marketing plans may be developed for strategic business units, product lines, individual products or brands, or specific markets. True False

True (Organizations use many different formats when producing a marketing plan. They may be written for strategic business units, product lines, individual products or brands, or specific markets.)

A _______ states what is to be accomplished through marketing activities. a. marketing objective b. performance standard c. mission statement d. market opportunity e. marketing strategy

a. marketing objective

Which of the following is NOT one of the terms used to classify products or business units in the market growth/market share matrix? a. Cash cow b. Pig c. Dog d. Star

b. Pig

The component of the marketing plan that provides an assessment of the organization's strengths, weaknesses, opportunities, and threats is known as a(n) _______. a. environmental analysis b. SWOT analysis c. competency analysis d. competitive differentiation analysis

b. SWOT analysis

Southwest is known for its culture of "luv" and its fun-loving approach. This is an example of which of the following? a. Corporate strategy b. Corporate mission c. Corporate identity d. Marketing objective e. Business-unit strategy

c. Corporate identity

Your company is holding its annual five-year strategic planning conference. The purpose of the conference is to solidify the go-forward tactics and strategies to enable the company to compete effectively in its industry. You are managing this conference and the various breakout sessions that will take place. Consistent with the sequence of the traditional strategic planning process, the first breakout session should be _______. a. a brainstorming session to create SWOT analysis b. a session where the overall corporate strategy is developed c. a session where the firm's mission and goals are established or revised d. a session where the marketing environment is analyzed

c. a session where the firm's mission and goals are established or revised

Marty works at an organization with a clear chain of command. The major decisions are relegated to top managers. Marty and his co-workers have strict performance standards. Managers at his organization monitor the work of employees to make sure they are staying on track. This is an example of a ___________________ organization

Centralized

A structure in which top-level managers delegate little authority to lower levels

Centralized Organization

The result of a company matching a core competency to opportunities it has discovered in the marketplace

Competitive Advantage

Things a company does extremely well, which sometimes give it an advantage over its competition

Core Competencies

A strategy that determines the means for utilizing resources in the various functional areas to reach the organization's goals

Corporate Strategy

A company's mission statement should answer two questions: Who are our customers? and What is our competitive advantage? True False

False

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

False

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

False

Assessment of an organization's strengths, weaknesses, opportunities, and threats

SWOT Analysis

Analysis of sales figures to evaluate a firm's performance

Sales Analysis

Jamal Nassar is employed as a marketing analyst with Bright Horizons, Inc. and is currently assisting the VP Marketing with the marketing plan. Jamal has been tasked with assessing a variety of factors, such as competitive, economic, political, legal, regulatory, technological, and sociocultural that could affect various marketing activities. Which section of the marketing plan is Jamal developing? a. Executive summary b. Environmental analysis c. Marketing objectives d. SWOT analysis

b. Environmental analysis

Which of the following represents a well-stated marketing objective? a. Disney Resorts seeks to attract a greater proportion of older, mature adults to its properties b. Purina Foods seeks to outperform its competition by obtaining a 25% share of the market in dry dog food by the end of the 4th quarter of the business year c. Subway hope to be known as the best source for fresh and fast sandwich options d. Ritz-Carlton hotels seeks to deliver high-quality service that results in high-customer satisfaction

b. Purina Foods seeks to outperform its competition by obtaining a 25% share of the market in dry dog food by the end of the 4th quarter of the business year

According to the Boston Consulting Group, question marks are characterized as products _______. a. generating more cash than is required to maintain market share b. having a small share of a growing market and requiring large amounts of cash to build market share c. encompassing the greatest number of product categories d. existing at a cost disadvantage and revealing few opportunities for growth at a reasonable cost

b. having a small share of a growing market and requiring large amounts of cash to build market share (Question marks, sometimes called "problem children," have a small share of a growing market and generally require a large amount of cash to build market share.)

Which of the following best defines a market opportunity? a. Assessment of an organization's strengths, weaknesses, opportunities, and threats b. Things a company does extremely well which may lead to an advantage c. A combination of circumstances and timing that permits an organization to take action to reach a particular target market d. Temporary periods of optimal fit between the market and the capabilities of an organization

c. A combination of circumstances and timing that permits an organization to take action to reach a particular target market

Which of the following is NOT a component of the marketing plan? a. Marketing strategies b. SWOT analysis c. Business analysis d. Marketing implementation e. Executive summary

c. Business analysis

Forever 21 is the authority on fashion and the go-to retailer for the latest trends, must-have styles, and the hottest deals. The retail stores are typically found in shopping malls across the country and are exciting places to shop—featuring bright lights, attractive displays, loud music, and a club-type atmosphere. Which of the following would most likely be the "best" target market for Forever 21? a. Children ages 10 or under b. Males ages 40 or older c. Females ages 16 to 22 d. Females ages 40 or older

c. Females ages 16 to 22

Due to its unique distribution system where 98% of replacement parts can be available to customers through its dealer network, Caterpillar has a _______ advantage over Komatsu, one of its main competitors. a. non-sustainable competitive b. sustainable marketing c. sustainable competitive d. cooperative marketing

c. sustainable competitive

How does a sustainable competitive advantage differ from a competitive advantage? a. A sustainable competitive advantage has an environmental focus. b. A sustainable competitive advantage occurs when the company takes advantage of temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market. c. A sustainable competitive advantage is when a company matches a core competency to opportunities in the marketplace. d. A sustainable competitive advantage is one that competitors cannot copy in the immediate future. e. A sustainable competitive advantage lasts forever.

d. A sustainable competitive advantage is one that competitors cannot copy in the immediate future.

A soda manufacturer decided to branch out into the health food industry by developing a line of organic juices to be sold in health foods. The juices would be sold under its own brand name. Which type of competitive growth strategy do its actions represent? a. Market development b. Market penetration c. Product development d. Diversification

d. Diversification (Diversification is a strategy of developing new products to be sold in new markets.)

When conditions in the external environment are favorable and could lead to rewards for the organization if acted upon in an appropriate manner, a(n) _______ is present. a. threat b. market niche c. strength d. opportunity

d. opportunity

An opportunity that Burger King identifies through a SWOT analysis will not affect McDonald's or Wendy's. True False

False

Jackson Wilson is the channel relations manager for Catalyst Sports, a family-owned business and manufacturer of sporting goods products which are sold through various retail channels. Jackson previously worked for Golf Time, a golf ball manufacturer and really enjoyed his work as he had complete responsibility for making decisions and was encouraged to utilize the marketing tactics that he believed would be best for the company. Jackson is growing frustrated at Catalyst Sports since the top managers of the company make all decisions and allow very little decision-making authority to managers such as Jackson. What type of organization structure best describes Catalyst Sports? a. Centralized b. Decentralized c. Autonomous d. Egalitarian

a. Centralized

Al Lewis is divisional sales manager with a national paint distribution company. He is responsible for managing the activities of 25 sales representatives who serve a five-state region of the United States. Al is currently conducting performance evaluations of the sales representatives and is calculating the relationship between the sales representative's compensation and the revenue they have generated for the company. One sales representative earned $128,000 in total compensation (base salary plus commission) and generated $768,000 in revenue while another representative was paid $150,000 in total compensation and generated $1,200,000 in revenue. Al is conducting the analysis as part of his annual report and individual employee performance review. What type of analysis can Al Lewis perform utilizing the data related to sales representative compensation and earned revenue? a. Cost analysis b. Sales analysis c. Advertising analysis d. Engagement analysis

a. Cost analysis

The Four Seasons Spa and Salon has developed a list of marketing objectives as part of its strategic planning process. Which of the following is the best marketing objective and follows the guidelines regarding the characteristics marketing objectives should possess? a. Increase guest satisfaction from 90% to 95% within six months as measured via an online customer satisfaction survey guests will receive via email one business day following the guest's service b. Increase profitability compared to last year c. Decrease employee turnover d. Generate word-of-mouth advertising through customer referrals

a. Increase guest satisfaction from 90% to 95% within six months as measured via an online customer satisfaction survey guests will receive via email one business day following the guest's service

Baker University utilizes a variety of marketing activities to promote its university to prospective students such as direct mail, billboards, and advertising during NCAA athletic events. The University would like to enroll 800 freshmen each year but has been struggling to meet this goal. Recently, the enrollment manager of Baker University met with the various college deans and the University top administration to discuss why current enrollments are not reaching the targeted enrollment level. What type of activity are the staff of Baker University engaged in? a. Performance evaluation b. SWOT analysis c. Environmental analysis d. Marketing objective debrief

a. Performance evaluation

Why is sales analysis a common method of evaluation? a. Sales data are readily available and can reflect the target market's reactions to a marketing mix. b. Sales data allow a marketer to allocate the firm's marketing resources better in the future. c. Sales data provide the most accurate picture of whether a firm reached its performance standards. d. Sales data lets a company evaluate the performance of marketing strategy by comparing sales achieved and costs sustained.

a. Sales data are readily available and can reflect the target market's reactions to a marketing mix.

Which of the following best exemplifies the concept of a "strategic window"? a. Starbucks purchased retailer Teavana and partnered with Oprah Winfrey on new tea offerings, hoping to transform the tea market just as it transformed the coffee market. b. Walmart's use of its supply chain and logistics capabilities to deliver products to its stores within 24 hours. c. McDonald's ability to offer McCafé coffee products in its stores. d. Harley Davidson's ability to leverage its iconic brand to attract new and loyal customers who want to experience life on the open road and enjoy owning a high-quality motorcycle.

a. Starbucks purchased retailer Teavana and partnered with Oprah Winfrey on new tea offerings, hoping to transform the tea market just as it transformed the coffee market.

In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food departments within its large stores. The creation of these departments was a result of _______. a. a market opportunity b. a core competency c. its sales orientation d. its distribution plan

a. a market opportunity

When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of _______. a. a marketing objective b. a strategic plan c. implementing the marketing mix d. maintaining its corporate identity

a. a marketing objective (This is an example of a marketing objective, which states what is to be accomplished through marketing activities.)

Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _______. a. cash cow b. dog c. star d. question mark

a. cash cow

The highest-level strategy used by organizations is _______. a. corporate strategy b. business-unit strategy c. marketing strategy d. organizational strategy

a. corporate strategy

Shaun Taylor is the brand manager for the athletic shoe division of Fleet Sports and really enjoys the opportunity to manage his budget and select the marketing activities that he believes are most appropriate in achieving his objectives. Since Shaun has both authority and responsibility for making marketing decisions, he can quickly respond to changes in the marketplace or fluctuations in demand. Which type of organization structure would best describe Fleet Sports? a. Command and control b. Decentralized c. Authoritarian d. Paternalistic

b. Decentralized (Decentralized organizations are differentiated by delegating decision-making authority as far down the chain of command as possible.)

Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal customers and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing activities he needs to take to spread awareness of his company and attract consumers to his business. Paul is at the stage of his marketing plan where he needs to gather information about his firm's situation with respect to the market. A major part of this is his assessment of target markets. Which section is he about to write? a. SWOT analysis b. Environmental analysis c. Marketing objectives d. Marketing strategies e. Executive summary

b. Environmental analysis

When Dominos introduced its pizza into India, it conducted massive market research to develop pizzas that appealed to Indian consumers' tastes. In southern India, for instance, it developed a raw-banana pizza. Domino's became a dominant player in the emerging pizza market. What type of competitive growth strategy did it use? a. Diversification b. Market development c. Product development d. Market penetration

b. Market development (Market development is a strategy of increasing sales of current products in new markets. This also occurs when a company introduces its products into international markets for the first time.)

Carmen Sanchez is assisting the marketing team to detail the various environmental factors, which are impacting her company as they draft the marketing plan for the upcoming fiscal year. Carmen is making a list of the various sociocultural factors, which are occurring in the external environment that could be important for her company to respond to and/or be aware of as they create marketing strategies and tactics. Which of the following factors would be best classified as sociocultural factors? a. Laws regulating immigration and border control in the United States b. Percentage of Hispanic customers in the United States c. Use of secure sockets layer protocol mechanisms (SSL) for the company's website d. Environmental regulations

b. Percentage of Hispanic customers in the United States (The proportion of Hispanics in the United States is a sociocultural factor.)

The Four Seasons Spa and Salon has retained a marketing consultant to assist them with its annual strategic planning retreat. Shantelle Stevens, owner of the salon is reviewing the agenda for the meeting and observes that the sequence of activities follows the strategic planning process discussed in her marketing class many years ago. What is the first activity that organizations should pursue as part of its strategic planning process? a. Identify the target market(s) b. Review or establish the organization's mission and goals c. Conduct a SWOT analysis d. Specify the marketing mix

b. Review or establish the organization's mission and goals

When conducting a SWOT analysis, which of the following are barriers that could prevent an organization from reaching its objective? a. Weaknesses b. Threats c. Market opportunity d. Strengths e. Opportunities

b. Threats

Our Lady Hospital is interested in providing a high level of care to its patients and is concerned with both clinical outcomes as well as patient satisfaction. As part of a recent strategic planning effort, Our Lady Hospital's president shared the following statement with its staff: Our Lady Hospital seeks to achieve a 97% patient satisfaction rating and reduce readmittance to the hospital for similar ailments by 15% over the next six months. This statement is an example of _______. a. strategic competency b. a marketing objective c. a marketing tactic d. a mission statement

b. a marketing objective (A marketing objective states what is to be accomplished through marketing activities and should be expressed clearly, be measurable, specify a time frame, and be consistent with the business strategy.)

Roberts Seafood will convene its annual strategic planning meeting at its world headquarters in Orlando, Florida, in October. The company has sought your advice regarding the sequence of activities that should be followed to be consistent with the recommended process for strategic planning. Which of the following best specifies the activities to be completed in the recommended order? a. 1: Complete an economic environment analysis; 2: Develop the company's mission and goals; 3: Develop business unit strategies; 4: Complete a SWOT analysis for each business unit; and 5: Develop functional area goals and objectives b. 1: Develop functional area goals and objectives; 2: Complete a SWOT analysis for the company; 3: Develop business unit strategies; and 4: Develop the company's mission and goals c. 1: Develop the company's mission and goals; 2: Develop business unit strategies; 3: Complete a SWOT analysis for the company; and 4: Develop functional area goals and objectives d. 1: Develop the company's mission and goals; 2: Develop business unit strategies; 3: Complete an economic environment analysis; and 4: Develop functional area goals and objectives

c. 1: Develop the company's mission and goals; 2: Develop business unit strategies; 3: Complete a SWOT analysis for the company; and 4: Develop functional area goals and objectives

Mitch Ford is an avid car fan and would love to own a Lotus Evora—a luxury sports car priced around $90,000. Mitch now drives a Hyundai Sonata that he purchased for under $25,000, which is in his price range. Which characteristic of a "market" is missing in this example? a. Willingness to purchase b. Authority to purchase c. Capability to purchase d. Needs for the product

c. Capability to purchase

The Nintendo Switch, a portable gaming system, has a strong market share position and is popular for many consumers, but its opportunity for growth is hindered by the increased popularity of game Applys for smart phones. Which quadrant of the Growth Share Matrix would best describe the Nintendo Switch? a. Dog b. Question mark c. Cash cow d. Star

c. Cash cow

UPS changed its tagline from "We Love Logistics" to "United Problem Solvers" to communicate its capabilities to serve as a consultant and help its customers achieve business objectives ranging from improved customer service to expansion into new markets. They are considered partners and offer many types of outsourced services to its customers. UPS's ability to leverage its capabilities in supply chain and logistics is an example of which marketing concept? a. Market problem b. Strategic window c. Competitive advantage d. Enhanced benefit

c. Competitive advantage (A competitive advantage is the result of a company matching a core competency to opportunities it has discovered in the marketplace.)

Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning? a. Coordinating marketing activities b. Organizing marketing functions c. Developing a marketing strategy d. Establishing marketing objectives

c. Developing a marketing strategy

In order to achieve marketing objectives, marketing managers must evaluate the effectiveness of their marketing strategy by engaging in strategic performance evaluation. What is the first step in the strategic performance evaluation process? a. Measure actual performance b. Compare actual performance with established standards c. Establish performance standards d. Modify marketing strategy

c. Establish performance standards

Misty O'Brien is responsible for the social media marketing activities for her company and currently utilizes Facebook, Instagram, Twitter and Pinterest to communicate with customers, reinforce customer relationships, and drive revenues and profitability. She utilizes a technology platform called Hootsuite to schedule posts to Facebook, Twitter, Instagram, and Pinterest and the program also enables Misty to share her workload among members of her team, other departments, or regions of the company. Misty primarily utilizes Hootsuite to schedule posts so that she can match the various social media content to specific marketing objectives according to the days or months of the year that are most appropriate for her company. Therefore, Hootsuite assists Misty with which of the following marketing implementation activities? a. Coordinating marketing activities b. Communication within the marketing unit c. Establishing a timetable for implementation d. Motivating marketing personnel

c. Establishing a timetable for implementation (Hootsuite enables Misty to schedule marketing activities related to social media content so that she knows the specific activities for which she is responsible and has a timetable for completing them.)

Jessica is working on a SWOT analysis of a local Mexican restaurant Tres Tortillas in Flagstaff. She writes down that the organization has high customer loyalty, resources for expansion, a large social media following, and strong management. She also writes that the market for salsa products is high and more people are eating out. On the other hand, one major complaint levied against the restaurant is that it is high priced and other casual-dining restaurants with less expensive menu offerings are locating to the city. Still, Jessica believes the restaurant's talented and well-known chef provides it with an advantage that other restaurants do not have. Refer to Which of the following characteristics of the Mexican restaurant represents an opportunity? a. Strong organizational resources b. Strong management c. Greater demand for salsa products d. Customer loyalty e. Talented and well-known chef

c. Greater demand for salsa products

Which of the following is a disadvantage of being a first-mover in the market? a. Inability to accurately predict performance standards b. High switching costs consumers may experience c. Large outlays associated with creating a new product d. The chances that products will be protected by patents e. Costs of marketing plan implementation

c. Large outlays associated with creating a new product

Which section of the marketing plan would most likely include a chart, which specifies the roles and specific responsibilities of various members of the organization who are accountable for executing the marketing strategies necessary to achieve the organization's objectives? a. Marketing objectives b. Marketing strategies c. Marketing implementation d. Performance evaluation

c. Marketing implementation (The marketing implementation section provides information regarding how the company will implement its marketing strategies by detailing the marketing organization, activities and responsibilities, and an implementation timetable.)

Jessica's manager believes that Tres Tortillas can gain an advantage over competing Mexican restaurants in the area by capitalizing on the higher demand for salsa. He believes the firm's top-secret salsa recipe could be the key to expanding into another market niche. The manager has proposed developing a line of its salsas in 16-ounce jars to sell at its restaurant. This way its loyal customers could buy its salsa outright and serve it at home. Jessica has been tasked with the determining the feasibility of this strategy. What type of competitive growth strategy is Jessica's manager discussing? a. Market penetration b. Market development c. Product development d. Product penetration e. Diversification

c. Product development

In 1996 an entrepreneur and athlete launched the business, Under Armour with one product now known as its classic t-shirt that boosts muscle performance and wicks moisture, keeping athletes cool, dry, and light. Under Armour continues to innovate, creating new products such as its line of shoes using the brand name, SpeedForm. While the sales of the shoes are catching on, Under Armour has a small proportion of total category sales in a high growth product category. Which quadrant of the market growth/market share matrix would be most accurate for Under Armour's shoe line? a. Cash cow b. Star c. Question mark d. Dog

c. Question mark (A company that classifies a product as high in opportunity for growth but low in terms of market share is known as question marks according to the market growth/market share matrix.)

Why might a marketer want to engage in marketing cost analysis? a. To help outline how the company will achieve its objectives b. To reflect the market's reaction to the marketing mix c. To allocate the firm's marketing resources better in the future d. To evaluate the firm's strengths and weaknesses e. To determine how much the company will charge customers

c. To allocate the firm's marketing resources better in the future

When a company matches a core competency to opportunities in the marketplace, it possesses a _______. a. strategic fit b. market opportunity c. competitive advantage d. strategic window

c. competitive advantage

Which of the following is the final step in establishing an implementation timetable? a. Determining the time required to complete each activity b. Organizing the activities in the proper order c. Identifying the activities to be performed d. Assigning responsibility for completing each activity to one or more employees, teams, or managers e. Separating the activities to be performed in sequence from those to be performed simultaneously

d. Assigning responsibility for completing each activity to one or more employees, teams, or managers

Apple has developed a reputation as an innovative company and established a leader position in the "tablet" category of computing devices with its introduction of the iPad—the first of its kind. Today, Apple faces stiff competition from Samsung, Google, and Microsoft but is maintaining a dominant position in the tablet market. Using the Boston Consulting Group's Growth Share Matrix, which of the following strategies would be most appropriate for the iPad line of products? a. Utilize the revenue supplied by the product line to support other products, such as the Apple Watch b. Divest the product line and/or stop producing the iPad c. Seek to reestablish the product line and generate interest in the product category d. Continue to innovate, promote, and support the product line by investing resources in order to continue growth

d. Continue to innovate, promote, and support the product line by investing resources in order to continue growth

What is the first step in the strategic planning process? a. Developing corporate business-unit strategies b. Specifying the marketing mix c. Analyzing strengths, weaknesses, opportunities, and threats of the organization d. Identifying the organizational mission and goals

d. Identifying the organizational mission and goals

What is the first step in creating a marketing strategy? a. Modifying the marketing mix b. Identifying the marketing organization structure c. Establishing profit objectives d. Identifying the target market

d. Identifying the target market

The marketing plan specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies. Which of the following is not one of the reasons why the marketing plan is an important document for organizations? a. It provides a uniform marketing vision for the firm. b. It helps marketing managers monitor and evaluate the marketing strategy. c. It delineates marketing responsibilities and tasks. d. It specifies the contractual relationship between consumers and the organization.

d. It specifies the contractual relationship between consumers and the organization.

Which of the following provides a uniform marketing vision for the firm and is the basis for internal communications? a. Marketing strategy b. Target market c. Performance standard d. Marketing plan e. Mission statement

d. Marketing plan

Best Buy has been engaged in a lengthy process to understand its customers and has identified several different segments of customers who are part of its target market. They use a customer-centric approach and are highly data driven using store purchase data and consumer demographics. They attempt to meet the needs and wants of the target markets they have identified through its product mix, retail store design, employee staffing, and other marketing mix variables to ensure that the needs of the target market will be met. Which of the following activities best describes Best Buy's activities? a. Marketing mix articulation b. Target market evaluation c. Competitive advantage strategy d. Marketing strategy

d. Marketing strategy (Marketing strategy is a plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market.)

The Peoria Riverfront Museum opened in 2012 and has struggled to attract patrons to visit the museum. Projected visitors during the planning stages were anticipated to be 1,000 per month but the actual visitors during the first year fell quite short at only 750 per month with an average of 780 across the year. Today, however, the museum is enjoying a stellar year with daily attendance averaging 35 to 50 visitors and monthly totals of 1,050 to 1,500. The number of visitors is directly related to the revenue the museum earns due to ticket prices. Adults pay $11 for admission and youths under 17 pay $9. In 2012, the museum reported revenues of $8,880 but they are on pace to earn almost twice as much for the current year. What type of analysis can the Peoria Riverfront Museum perform utilizing the data related to number of visitors and revenue? a. Cost analysis b. Engagement analysis c. Advertising analysis d. Sales analysis

d. Sales analysis

Juan Rodriguez is a marketing analyst for Computer Solutions, a firm that provides consultative services, web hosting, and technology maintenance and service for a wide variety of applications, such as computers, networks, and computer-controlled manufacturing equipment. Juan is responsible for contributing information related to the environmental analysis section of the firm's marketing plan and must provide information about the company's current situation with respect to the marketing environment. He has brainstormed a list of environmental factors and his next step is to classify them into various categories such as competitive, economic, political, technological, sociocultural, and legal/regulatory. Which of the following factors would be best classified as technological factors? a. Foreign exchange rates, trade policy, and population growth rates b. Environmental regulations, tax policy, and health and medical trends c. Tax rates, health and medical trends, and foreign exchange rates d. Secure systems, encryption technology, and digital certificates using secure sockets layer protocol mechanisms (SSL)

d. Secure systems, encryption technology, and digital certificates using secure sockets layer protocol mechanisms (SSL)

Which of the following decisions would be appropriate regarding a cash cow? a. Discontinue the product due to low market share b. Invest additional money to increase market share c. Use profits to increase market growth d. Use profits to invest in growth of star products

d. Use profits to invest in growth of star products

Apple has developed a reputation for its ability to deliver products that provide an artistic design aesthetic through high levels of quality and attention to detail. For example, the laptops are designed so they can be opened with just one finger using a special groove on the front lip of the laptop. Apple's reputation for design and its ability to create functional features that enhance the user's experience represents a(n) _______ for the company. a. user benefit b. opportunity c. strategic window d. core competency

d. core competency

Procter & Gamble's Tide laundry detergent has a predominant share of the detergent market in the United States. However, the detergent market has reached market saturation in the United States. With this information, what type of product is Tide based upon the Boston Consulting Group's market growth/market share matrix? a. Question mark b. Dog c. Pig d. Star e. Cash cow

e. Cash cow

Which of the following is likely the most important decision a company makes during the strategic planning process? a. Creating the marketing mix b. Conducting a SWOT analysis c. Developing a marketing strategy d. Evaluating marketing performance e. Choosing a target market

e. Choosing a target market

Margie noticed that sales of her company's newest electric bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The electric bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who bike long distance. At what stage of the strategic planning process is Margie? a. Managing marketing implementation b. Developing marketing strategies c. Developing a marketing plan d. Assessing organizational resources and opportunities e. Evaluating marketing strategies

e. Evaluating marketing strategies

Which of the following provides an overview of the entire marketing plan so that readers can quickly identify the key issues and their roles in the planning and implementation process? a. Environmental analysis b. Performance evaluation c. SWOT analysis d. Marketing implementation e. Executive summary

e. Executive summary

Marketing cost analysis _______. a. is an expected level of performance against which actual performance can be compared b. is the firm's sale of a stated product as a percentage of industry sales of competing products c. uses sales figures to evaluate a firm's current performance d. assesses an organization's strengths, weaknesses, opportunities, and threats e. breaks down and classifies costs to determine which are associated with specific marketing efforts

e. breaks down and classifies costs to determine which are associated with specific marketing efforts

Fixed costs are very helpful when determining how to use marketing funds more effectively. True False

False

Once a marketing strategy is developed, it will remain the same despite changes in the environment. True False

False

The marketing mix should satisfy the needs of the target market members and should have two additional characteristics: consistency and timeliness. True False

False

All of the following are disadvantages of being a first mover, except _______. a. competitors may have patents on technology, hampering production of a similar product b. high cost outlays associated with creating a new product c. product may fail due to market uncertainty d. early sales growth may not match predictions if company overestimates demand

a. competitors may have patents on technology, hampering production of a similar product

An essential element of communicating with marketing employees is _______. a. training b. objectives c. strategy d. the target market e. the marketing mix

a. training

The strategic planning process begins with _______. a. SWOT analysis b. business-unit strategies c. organizational mission and goals d. marketing objectives e. finance objectives

c. organizational mission and goals

The market growth/market share matrix, which is commonly used by firms engaged in strategic planning activities is a two-dimensional model where a company can classify its products or business units into four different quadrants. One dimension represents the proportion of a market that actually purchases the product from the company and is termed _______. a. market growth b. target market c. market position d. market share

d. market share (Market share represents the percentage of a market that actually buys a specific product from a particular company.)

Sherwin-Williams operates retail stores across the United States and each store typically has a staff of two to three outside sales representatives who work with businesses to assist them with their paint and coatings needs. Business customers include facility managers of apartment complexes, hospitals, schools, and manufacturing facilities. Sherwin-Williams competes with a wide variety of companies and sets targets for its sales representatives to achieve. One target for sales representatives relates to prospecting activity—sales representatives should acquire one new business-to-business customer account each month. This target related to new business growth is an example of a _______. a. sales analysis b. marketing cost analysis c. SWOT analysis d. performance standard

d. performance standard

A long-term view, or vision, of what the organization wants to become

Mission Statement

A company using a product development strategy markets a new product in a current market. True False

True

Performance standards are derived from marketing objectives that are set while developing the marketing strategy. True False

True

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

True

The leadership team of Bud's Distributors, a regional beverage company collaborated during a two-day meeting to discuss and revise its company's mission and goals, identify strengths, weaknesses, opportunities, and threats, and create a marketing plan. The process implemented by Bud's Distributors is termed _______. a. strategic planning b. market analysis c. business development d. corporate engagement

a. strategic planning

Conducting a SWOT analysis comes immediately before the establishment of corporate and business-unit strategies. a. True b. False

b. False

The marketing implementation section of the marketing plan outlines how the company will achieve its objectives. a. True b. False

b. False

The unique symbols, personalities, and philosophies that support all corporate activities including strategic planning and marketing are best described as _______. a. market share b. corporate strategy c. corporate identity d. mission statement e. SWOT analysis

c. corporate identity

The ability of competitors to achieve long-term competitive advantages by entering the market later and not being the first to offer a certain product in the marketplace is called _______. a. core competency b. early-mover advantage c. competitive advantage d. late-mover advantage e. first-mover advantage

d. late-mover advantage

A combination of circumstances and timing that permits an organization to take action to reach a particular target market

Market Opportunity

The percentage of a market that actually buys a specific product from a particular company

Market Share

Analysis of costs to determine which are associated with specific marketing efforts

Marketing Cost Analysis

A ___________ states what is to be accomplished through marketing activities.

Marketing Objective

A statement of what is to be accomplished through marketing activities

Marketing Objective

A ___________ is a written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies.

Marketing Plan

A written document that specifies the activities to be performed to implement and evaluate the organization's marketing strategies

Marketing Plan

A plan of action for identifying and analyzing a target market and developing a marketing mix to meet the needs of that market

Marketing Strategy

An expected level of performance against which actual performance can be compared

Performance Standard

Many companies attempt to benchmark their performance against other firms in their industry. The American Customer Satisfaction Index (ACSI) is the nation's only cross-industry measure of customer satisfaction, giving businesses science-based insights across the complete arc of the customer experience. The ACSI conducts research and reports its findings using a 100-point scale across a variety of industries such as insurance, healthcare, travel, restaurant, and hospitality. A recent listing of companies in the wireless telephone communications service industry reported customers rated TracFone Wireless the highest with an ACSI score of 78 and Sprint the lowest at 70. Verizon and AT&T were rated the same with scores of 74 for Verizon and AT&T. These ACSI ratings assist companies with which of the following activities? a. Evaluating actual performance b. Controlling marketing activities c. Empowering employees d. Determining strengths, weaknesses, opportunities, and threats

a. Evaluating actual performance

Resource deployment and coordination of functional areas of business are determined by _______. a. corporate strategy b. the mission statement c. business-unit strategy d. marketing strategy

a. corporate strategy (A corporate strategy outlines the scope of the business and such considerations as resource deployment, competitive advantages, and overall coordination of functional areas.)

Vacuum manufacturer, Dyson, utilized a _______ strategy when it began building bladeless fans and hair dryers. a. diversification b. market penetration c. product development d. market development

a. diversification (Dyson utilized a diversification strategy by developing bladeless fans and hair dryers. These are new products offered to new markets.)

When the right combination of circumstances and timing permits an organization to take action to reach a particular target market, there exists a(n) _______. a. market opportunity b. core competencies c. weakness d. strategic window e. competitive advantage

a. market opportunity

Realizing an increase in both the number of consumers who are environmentally-conscious and the number of consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles. This is an example of identifying and capitalizing on a(n) _______ while the strategic window is open. a. market opportunity b. marketing mix c. objective d. goal

a. market opportunity (When the right combination of circumstances and timing permits an organization to take action to reach a particular target market, a market opportunity exists.)

J.C. Penney is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, redefining marketing strategies, and developing guidelines for implementation and control. Thus, J.C. Penney is involved in _______. a. marketing planning b. strategic analysis c. marketing management d. market organization

a. marketing planning

The section of the marketing plan, which provides standards to determine how the marketing activities will be evaluated as well as the audits to be performed to gauge success is called _______. a. performance evaluation b. executive summary c. situation analysis d. marketing objectives

a. performance evaluation (The performance evaluation section establishes the standards for how results will be measured and evaluated, and what actions the company should take to reduce the differences between planned and actual performance.)

Nestlé owns baby food and formula brand Gerber, pet care brand Purina, Coffee-mate creamers, as well as many other brands. Each brand is managed as a separate division, with separate costs, investments, and revenues. These are examples of _______. a. strategic business units b. question marks c. market opportunities d. competitive advantages

a. strategic business units

Marika is a manager for a boutique clothing store in downtown Austin. She has set a goal of reaching $25,000 in revenue for the month of March. In April, Marika reviews total revenues for March and realizes that she fell short of her goal by $3,000. She decides to run an additional sale in April and increase her posts on social media to hopefully reach the revenue goal in April. Marika is involved in a _______. a. strategic performance evaluation b. product development c. selecting a target market d. SWOT analysis

a. strategic performance evaluation

Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in _______. a. strategic performance evaluation b. the systems design process c. marketing systems design d. the marketing audit

a. strategic performance evaluation (Strategic performance evaluation consists of establishing performance standards, analyzing actual performance, comparing actual performance with established standards, and modifying the marketing strategy when needed.)

Standard Chemical Company manufactures specialty chemicals that are utilized by companies, such as Procter & Gamble in the production of its soaps, lotions, and shampoos. Standard Chemical recently conducted a customer satisfaction survey among its business customers in the consumer products market and noted that the satisfaction ratings are lower than last year's ratings. As part of the survey, participants were given the opportunity to make recommendations regarding how Standard Chemical could improve and a large number of customers noted that the sales representatives took a long time to respond to customer questions, did not seem empowered to make decisions, and were required to obtain approval from top management. If Standard Chemical Company wants to improve its ability to serve customers and achieve higher levels of customer satisfaction, they should move from a(n) _______ organization structure to a(n) _______ organization structure. a. decentralized; centralized b. centralized; decentralized c. decentralized; autonomous d. egalitarian; autonomous

b. centralized; decentralized

Jessica's manager is skeptical. Such an investment would require a manufacturing facility, a larger marketing budget, and salespeople who would be able to get the salsa onto store shelves. However, Jessica maintains that Tres Tortilla's secret salsa recipe provides it with a core competency. The market for salsa is also strong. She believes this provides Tres Tortillas with a chance to match its core competency to market opportunities, otherwise known as a(n) _______. a. late-mover advantage b. competitive advantage c. first-mover advantage d. strategic window e. optimal fit

b. competitive advantage

To formulate a marketing strategy, one must _______. a. develop a statement of what is to be accomplished through marketing activities b. identify and analyze a target market and develop a marketing mix to satisfy individuals in that market c. develop plans for implementation and control d. determine marketing objectives

b. identify and analyze a target market and develop a marketing mix to satisfy individuals in that market

Rio, a division of D&M Holdings Inc. was the first company to offer an MP3 player in 1998. It dominated the business due to its ability to innovate and enjoyed a competitive advantage since it was the first to offer the new technology and held a patent on the chip sets utilized in MP3 players. However, Rio stopped producing MP3 players in 2005 and found that they could no longer compete effectively against Apple whose iPod became the most widely adopted MP3 player and transformed the industry. Apple possesses a(n) _______ advantage while Rio enjoyed a(n) _______ advantage. a. first-mover; late-mover b. late-mover; first-mover c. sustainable; unsustainable d. economic; technological

b. late-mover; first-mover

The process of putting marketing strategies into action is called _______. a. marketing control b. marketing implementation c. marketing action d. marketing auditing

b. marketing implementation

The section of the marketing plan which states what the company wants to accomplish through marketing activities is called the _______. a. environmental analysis b. marketing objective c. marketing strategy d. performance evaluation

b. marketing objective

Performance standards are derived from _______. a. the mission statement b. marketing objectives c. market opportunity d. sales analysis e. marketing strategy

b. marketing objectives

LaTonya Davis was recently hired as the brand manager for Golden Harvest's organic grains division of products including the popular ancient grain, quinoa. LaTonya has been familiarizing herself with the performance of the various products as well as the marketing activities to generate revenue and profitability. LaTonya has started to meet with various marketing personnel who are responsible for different marketing tasks, such as channel sales, publicity, special events, and advertising and is growing concerned since each member of the team has a different perception or vision as well as competing objectives. LaTonya realizes that she and her team must devote time to create a _______. a. marketing objective and task document b. marketing plan c. marketing promotion schedule d. marketing analytics analysis

b. marketing plan

PepsiCo includes six global divisions that make and distribute a diverse range of products. Two divisions are Frito-Lay and Quaker Foods, which are considered _______ units of PepsiCo. a. spin-off b. strategic business c. supplemental d. diverse

b. strategic business (A strategic business unit is a division, product line, or other profit center within the parent company)

Margie believes this is the optimal time to seize upon this opportunity. Through the bike's patented design, her company has capabilities that fit the unique demands of this growing market. Margie wants to capitalize on this opportunity before these market trends have a chance to change. This period for Margie's firm is known as a _______. a. product opportunity b. strategic window c. sales boost d. core competency e. competitive advantage

b. strategic window

Caterpillar's high product quality, integrated dealer network, and ability to provide parts and service to maximize uptime are examples of the firm's _______. a. opportunities b. strengths c. differential attributes d. enhanced capabilities

b. strengths

Amazon maintains a _______ in shipping because they have invested in a high-tech logistics system and extensive network of distribution centers across the United States, which enables the company to offer low prices and fast service. Many retailers have found it difficult to compete with Amazon especially during the Christmas holiday season since its distribution and inventory systems are not as efficient as Amazon's. a. core competency b. sustainable competitive advantage c. competitive inhibitor d. realized benefit

b. sustainable competitive advantage (A sustainable competitive advantage exists when a company possesses an advantage that cannot be easily copied by the competition.)

A marketing strategy is the selection of a(n) _______ and the creation of a(n) _______ that will satisfy the needs of target-market members. a. marketing mix; target market b. target market; marketing mix c. marketing objective; marketing plan d. marketing objective; marketing mix e. target market; marketing plan

b. target market; marketing mix

The section of the marketing plan that outlines how the company will achieve its objectives will discuss _______. a. performance standards and financial controls b. the target market and marketing mix c. strengths, weaknesses, opportunities, and threats d. quantitative measures of what is to be accomplished

b. the target market and marketing mix (The marketing strategies section of the marketing plan component outlines how the firm plans to achieve its marketing objectives and discusses the company's target market selection(s) and marketing mix.)

Jamal Miller is a management consultant who frequently works with businesses to assist them with their strategic planning efforts. He recommends that once firms have used the SWOT analysis to gauge their capabilities and resources relative to the industry, they should identify tactics to achieve a more competitive position relative to other firms in their market. One approach Jamal suggests includes taking actions to convert external _______ into opportunities and internal _______ into strengths. a. strengths; threats b. threats; weaknesses c. core competencies; weaknesses d. limitations; benefits

b. threats; weaknesses

Growing Grounds is a full-service nursery and landscaping company that offers a wide selection of plant and landscape materials for its customers. The spring, summer, and fall seasons are the best times of the year for Growing Grounds and they have been experimenting with adding new products and services each year. Growing Grounds has an extensive line of trees, which can be planted by the customer or installed by its tree service for a minimal fee. In addition, they offer landscaping services and quite frequently work with home builders to install grass and bedding plants for new home construction projects. Growing Grounds also has a wide selection of bushes, ornamental plants, and seasonal plants such as vegetables. Over the years, Growing Grounds has added more "heirloom" plants to its line of vegetables that are organically grown and contain no genetic modifications. Growing Grounds has noticed that many consumers are concerned about genetic modifications as well as the use of pesticides. Moreover, consumers want to grow their own vegetables and enjoy the opportunity to harvest and eat the food that they have grown in their gardens. In its market, Growing Grounds has a reputation for serving the commercial business-to-business market with landscaping services, which is a stable market and one where they possess a large market share. However, they are hoping to grow its direct-to-consumer business by adding a full line of vegetable plants since home-grown vegetables and home-based gardening is growing in popularity. According to the Boston Consulting Group (BCG) matrix, the landscaping services Growing Grounds provides to business-to-business customers would be classified as _______, while the vegetable plants marketed toward household consumers would be classified as _______. a. cash cow; star b. star; question mark c. cash cow; question mark d. question mark; cash cow

c. cash cow; question mark

Strategic marketing management requires both effectiveness and efficiency. A food manufacturer has similar brand loyalty as its competitors but spends three times more than its competitors on customer relationship management. This manufacturer is _______. a. neither effective nor efficient b. effective and efficient c. effective, but not efficient d. efficient, but not effective

c. effective, but not efficient

The marketing plan is a written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies. The plan includes many sections and is a time-consuming process. The _______ section states what the company wants to accomplish through marketing activities and highlights _______ in the external environment that could produce rewards for the organization if acted upon. a. executive summary; strengths b. marketing implementation; threats c. marketing objectives; opportunities d. environmental analysis; opportunities

c. marketing objectives; opportunities

A written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies is known as a _______. a. corporate manifesto b. strategic plan c. marketing plan d. mission statement

c. marketing plan

Google has written down the following: "to organize the world's information and make it universally accessible and useful." This is most likely a part of Google's _______. a. strengths b. corporate strategy c. mission statement d. marketing objective e. marketing plan

c. mission statement

Organizations engaging in strategic planning efforts must gauge their firm's capabilities relative to the industry. One area organizations should assess include _______, which are internal factors that give the company an advantage over the competition. a. opportunities b. threats c. strengths d. weaknesses

c. strengths (Strengths are internal factors that refer to competitive advantages or core competencies that give the company an advantage.)

Green Mountain, Inc. manufacturer of the Keurig brand of coffee makers, created an innovative and new category of coffee makers using its trademarked "K-cups" for single-serve coffee. Other companies are now producing both the cups and coffee makers competing against Green Mountain and the Keurig brand. The coffee category remains strong, possesses opportunities for growth and Keurig is maintaining a dominant position in the marketplace. Using the Boston Consulting Group's Growth Share Matrix, which of the following strategies would be most appropriate for the Keurig line of coffee makers? a. Utilize the revenue supplied by the product line to support other products b. Seek to reestablish the product line and generate interest in the product category c. Divest the product line and/or stop producing the Keurig coffee maker d. Continue to innovate, promote, and support the product line by investing resources in order to continue growth

d. Continue to innovate, promote, and support the product line by investing resources in order to continue growth (The Keurig coffee maker is considered a "star" due to its dominant share of the market and high growth potential.)

Which of the following competitive growth strategies strives to increase sales of current products in new markets? a. Product development b. Diversification c. Market penetration d. Market development e. Market share

d. Market development

Target, a discount store has successfully partnered with luxury brands such as Lilly Pulitzer, Toms, and Altuzarra to create interest and drive customers to its stores. Target's ability to create these partnerships is considered one of its strengths and provides an advantage over its competitors. This is an example of a _______. a. competitive advantage b. market opportunity c. strategic window d. core competency

d. core competency

In 2015 UPS began utilizing the tagline "United Problem Solvers" in its advertising campaign. According to a company spokesperson, the tagline provides a different interpretation of the company acronym, which they hope will show that UPS can serve as a consultant to help companies achieve business objectives ranging from improved customer service to expansion into new markets. The use of its symbol (UPS) and the advertising that conveys its personality and philosophy is an example of _______. a. corporate character b. a value statement c. competitive position d. corporate identity

d. corporate identity (Corporate identity includes a company's unique symbols, personalities, and philosophies to support all corporate activities including marketing.)

For many years, the marketing department at ABC Corporation had a strict hierarchy where all decisions were made by top management. A year ago, the director of the marketing department read a book about participative management and believed that providing more decision-making authority to employees would not only increase morale but also result in more creative ideas for new products. The marketing director is attempting to _______ the department. a. centralize b. formalize c. deformalize d. decentralize

d. decentralize

The _______ section of the marketing plan supplies information about the company's current situation with respect to the _______, the target market, and the firm's current objectives and performance. a. marketing implementation; marketing environment b. executive summary; marketing concept c. SWOT analysis; marketing concept d. environmental analysis; marketing environment

d. environmental analysis; marketing environment (The environmental analysis section of the marketing plan supplies information about the company's current situation with respect to the marketing environment, the target market, and the firm's current objectives and performance.)

A strongly written marketing objective should contain all of the following characteristics, except _______. a. it should be consistent with business-unit and corporate strategies b. it should be measurable c. it should specify a time frame d. it should be written using marketing terms and jargon

d. it should be written using marketing terms and jargon

The often-used strategic planning tool, which is based on the philosophy that a product's market growth rate and its market share are important considerations in determining marketing strategy is known as the _______. a. Boston Consulting Group matrix b. strategic imperative matrix c. strategy planning tool d. market growth/market share matrix

d. market growth/market share matrix (The market growth/market share matrix developed by the Boston Consulting Group is based on the philosophy that a product's market growth rate and its market share are important considerations in determining marketing strategy.)

Many consumers today suffer from gluten allergies and companies are now modifying their products to provide gluten-free alternatives. Over the last few years, sales of gluten-free foods have surged more than 68% and sales are approximately $9 billion annually with companies such as General Mills and Hormel catering to consumers who prefer gluten-free products. Some market analysts believe the interest in gluten-free products is just another diet fad with the exception of the 1% of the population who suffer from Celiac disease and need gluten-free products. Approximately 39% of all food manufacturers are capitalizing on consumers' interest in gluten-free products. The interest in gluten-free products represents a _______. a. strategic window b. competitive advantage c. core competency d. market opportunity

d. market opportunity (A market opportunity exists when the right combination of circumstances and timing permits an organization to take action to reach a particular target market.)

The Growth Share Matrix developed by the Boston Consulting Group identifies products with a dominant share of the market and strong prospects for growth as _______. a. question marks b. cash cows c. dogs d. stars

d. stars

It is a year later. Jessica's manager decided that the company would develop a salsa business. Jessica has been in a flurry of activity since then. Not only did the company have to invest in a building and equipment, but she has had to develop marketing strategies for the new salsa business. The marketing strategies are now complete and ready to be put into action. Jessica was placed in charge of marketing implementation. She has spent several months organizing the marketing unit, training employees, coordinating the marketing staff, developing a social media plan, and communicating the goals and objectives of the strategy. What is next step Jessica should take to implement the marketing strategy? a. Evaluate the marketing strategy b. Create the marketing mix c. Establish performance standards d. Undertake a SWOT analysis e. Establish a timetable for implementation

e. Establish a timetable for implementation

In order for marketing implementation to be successful, the organization must practice flexibility in regard to who performs each activity and the time in which they are completed. True False

False (Successful marketing implementation requires that employees know the specific activities for which they are responsible and the timetable for completing them.)

Marketing planning consists of two major components: marketing objectives and a control process. True False

False (These are just two of several components. The strategic planning process ultimately yields a marketing strategy that is the framework for a marketing plan, a written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies. A marketing plan consists of an executive summary, environmental analysis, SWOT analysis, marketing objectives, marketing strategies, marketing implementation, and performance evaluation.)

The ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace

First-Mover Advantage

The ability of later market entrants to achieve long-term competitive advantages by not being the first to offer a certain product in a marketplace

Late-Mover Advantage

A helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy

Market Growth/Market Share Matrix

Through the process of _____________________, , a company establishes an organizational mission and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy.

Strategic Planning

Temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market

Strategic Windows

An advantage that the competition cannot copy

Sustainable Competitive Advantage

Which of the following is NOT one of the steps in strategic performance evaluation? a. Establishing a timetable for implementation b. Comparing actual performance with established standards c. Establishing performance standards d. Modifying the marketing strategy, if necessary e. Measuring actual performance

a. Establishing a timetable for implementation

Due to the failure of one beverage distribution company, a regional distributor was able to add the San Pellegrino line of beverages to its catalog of brands and offer an extended variety of products to its retail and restaurant customers. The regional distributor was able to take advantage of the business failure and unique situation to add a sought-after product to its customers. Which marketing concept best applies to this example? a. Market opportunity b. Strategic partnership c. Core competency d. Competitive advantage

a. Market opportunity (A market opportunity is defined as "a combination of circumstances and timing that permits an organization to take action to reach a particular target market.")

Which of the following statements is the best definition of the process of marketing implementation? a. Marketing implementation is the process of putting marketing strategies into action. b. Marketing implementation is the process of establishing performance standards. c. Marketing implementation is the process of analyzing costs to determine which are associated with specific marketing efforts. d. Marketing implementation is the process of analyzing sales figures to evaluate a firm's performance.

a. Marketing implementation is the process of putting marketing strategies into action.

Phoenix Sailing, a charter sailing tour company based in Chicago, Illinois, near Navy Pier is developing a document to assist them in differentiating its business from other tourist organizations as well as specifying the various activities that should be performed to achieve its goals and objectives when implementing marketing tactics. What type of document is Phoenix Sailing developing? a. Marketing plan b. Strategic analysis c. Marketing mix plan d. SWOT analysis

a. Marketing plan (The marketing plan is a written document that specifies the activities to be performed to implement and control the organization's marketing strategies.)

Traditional organizations are most likely to utilize a(n) _______ organizational structure where top-level managers make all decisions regarding marketing strategy and lower-level managers have little decision-making capability. a. centralized b. decentralized c. autonomous d. egalitarian

a. centralized (A centralized organizational structure focuses decision-making authority at the top-levels of the organization and very little authority is delegated to lower levels.)

Carriage House Door Company is a closely held family-owned company that sells doors to businesses and consumers. The business-to-business market is designed to serve retail stores with a variety of glass doors, steel security doors and decorative doors while the business-to-consumer business focuses on upmarket designer wood doors and classic garage doors that are distinct from those sold in the big "box" retailers, such as Menards or Home Depot. Carriage House Doors employs approximately 50 individuals who report directly to the company president and owner, Don Mathis. Don runs his company with tight control over his employees and dictates all company policies and decisions. Employees must double-check with Don before they agree to any requests from customers such as changes in pricing, delivery or other terms negotiated as part of the buyer-seller agreements. It's likely that Carriage House Door Company has implemented a _______ organizational structure. a. centralized b. decentralized c. controlled d. paternal

a. centralized (A centralized structure is one in which top-level managers delegate little authority to lower levels.)

When consumers desire mobile phone service, they can select from a large number of firms, such as AT&T, Verizon, Sprint, and T-Mobile. Verizon has invested extensively to offer an expanded range of coverage around the globe with its 4G network. Verizon has 4G service in more than 200 countries that provides consumers with the benefit of using their phones in more locations than competing firms. The extensive 4G network of Verizon represents a _______ to Verizon. a. competitive advantage b. strategic fit c. market opportunity d. strategic window

a. competitive advantage

A consultant is working with St. Joseph Hospital to assist them with a strategic planning initiative. The consultant has emphasized that the Hospital should employ a market orientation since it emphasizes the importance of _______ to the entire organization. a. customer satisfaction b. employee performance c. quality outcomes d. profitability

a. customer satisfaction (A market orientation should guide the process of strategic planning to ensure that a concern for customer satisfaction is an integral part of the entire company, leading to the development of successful marketing strategies and planning processes.)

Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal customers and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing activities he needs to take to spread awareness of his company and attract consumers to his business. Paul would like his sales for next month to reach $30,000. This is an example of a _______. a. performance standard b. strategic plan c. business-unit goal d. marketing strategy e. sales analysis

a. performance standard

The following passage is an often-expressed critique of one of the two types of decision-making structures: Another disadvantage of this structure is that the organization may become fragmented. Business units may lose their sense of team spirit and cooperation. Some business units may put their own interests ahead of those of the company as a whole. Innovative ideas that once spread through the company quickly may now remain within individual business units. Which one of the following decision-making structures is this critique referring? a. Remote organizational structure b. Decentralized organizational structure c. Functional organizational structure d. Centralized organizational structure

b. Decentralized organizational structure (In decentralized organizations, decision-making authority is delegated as far down the chain of command as possible. While decentralized organizations can respond quickly, some possible disadvantages include organizational fragmentation, placing one's own interests over those of the company, and less organization-wide communication.)

A performance standard is defined as _______. a. analysis of sales figures to evaluate performance b. an expected level of performance against which actual performance can be compared c. a judgment regarding an employee's level of performance in making marketing decisions d. analysis of costs to determine their association to specific marketing activities

b. an expected level of performance against which actual performance can be compared

Coyote Logistics is a provider of third-party logistics services and assists customers in managing its supply chain. Employees of Coyote Logistics are extremely satisfied with the company's culture and feel empowered to make decisions. In addition, they are able to quickly respond and adapt rapidly to changing customer needs. It's likely that Coyote Logistics has implemented a _______ organizational structure. a. centralized b. decentralized c. controlled d. paternal

b. decentralized

Decision-making authority is delegated as far down the chain of command as possible in a(n) _______. a. centralized organization b. decentralized organization c. strategic-business unit d. marketing-oriented organization e. nonprofit organization

b. decentralized organization

Growing Grounds is a full-service nursery and landscaping company that offers a wide selection of plant and landscape materials for its customers. The spring, summer, and fall seasons are the best times of the year for Growing Grounds and they have been experimenting with adding new products and services each year. Growing Grounds has an extensive line of trees, which can be planted by the customer or installed by its tree service for a minimal fee. In addition, they offer landscaping services and quite frequently work with home builders to install grass and bedding plants for new home construction projects. Growing Grounds also has a wide selection of bushes, ornamental plants, and seasonal plants such as vegetables. Over the years, Growing Grounds has added more "heirloom" plants to its line of vegetables that are organically grown and contain no genetic modifications. Growing Grounds has noticed that many consumers are concerned about genetic modifications as well as the use of pesticides. Moreover, consumers want to grow their own vegetables and enjoy the opportunity to harvest and eat the food that they have grown in their gardens. In its market, Growing Grounds has a reputation for serving the commercial business-to-business market with landscaping services, which is a stable market and one where they possess a large market share. However, they are hoping to grow its direct-to-consumer business by adding a full line of vegetable plants since home-grown vegetables and home-based gardening is growing in popularity. The interest in home-based gardening is driven by consumers' desire to have fresh produce that is not genetically modified and pesticide free which represents a(n) _______ and creates a _______ for Growing Grounds. a. environmental factor; competitive advantage b. environmental factor; marketing opportunity c. strategic window; sustainable competitive advantage d. competitive advantage; marketing opportunity

b. environmental factor; marketing opportunity

According to the Boston Consulting Group Growth Share Matrix, products labeled as "dogs" are _______. a. easy targets that can be converted to a star b. often found in established markets, have low prospects for growth, and a lower share of the market c. important to the firm and require a large amount of cash to build market share in a growing market d. considered to have low opportunities for growth but possess a dominant share of the market

b. often found in established markets, have low prospects for growth, and a lower share of the market

Which of the following is the best definition of a market? a. A group of individuals who have the ability to purchase products or services b. A group of individuals who desire the products and services a firm offers c. 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 d. A select group of business buyers who have the authority to make purchasing decisions

c. 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

Menards is a family-owned company headquartered in Eau Claire, Wisconsin, with 280 retail store locations offering home improvement products, service, and expertise across the Midwest. Since its founding in 1964, Menards has developed a reputation as the low-price leader and communicates its focus on low prices with the advertising slogan and jingle, "Save Big Money at Menards." In addition to offering low prices, Menards is committed to providing a high level of quality service to its customers and treats guests like family in a local, hometown hardware store atmosphere. Menards puts customers first and employs individuals who are knowledgeable and possess expertise to answer customer questions about products or provide advice about completing a home improvement project. Menards stocks its stores with a vast selection of name-brand and private-label products that include tools, materials and supplies for home improvement projects. Menards continues to flourish, and sales are strong since many consumers are choosing to make improvements to its homes rather than upgrade to a larger, more expensive home. Menards is led by its founder, John Menard who rules the chain of stores with an iron fist. He is very demanding and insists that everyone keep track of its work hours using a time clock. John Menard is the key decision-maker for the retail chain and makes location decisions for products within the store, establishing visual merchandising plans and even determining which cleaning products maintenance employees utilize to keep the stores' floors polished and sparkling. Over the years, John Menard has developed quite a reputation and employees who don't toe the line and comply with his rules get fined or are encouraged to seek employment elsewhere. Menard's founder, John Menard most likely has implemented a(n) _______ organizational structure. a. decentralized b. egalitarian c. centralized d. flexible

c. centralized

Margie noticed that sales of her company's newest electric bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The electric bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who bike long distance. What method of analysis is Margie using? a. Marketing cost analysis b. Performance comparison c. Strategic analysis d. Sales analysis e. Performance assessment

d. Sales analysis

Menards is a family-owned company headquartered in Eau Claire, Wisconsin, with 280 retail store locations offering home improvement products, service, and expertise across the Midwest. Since its founding in 1964, Menards has developed a reputation as the low-price leader and communicates its focus on low prices with the advertising slogan and jingle, "Save Big Money at Menards." In addition to offering low prices, Menards is committed to providing a high level of quality service to its customers and treats guests like family in a local, hometown hardware store atmosphere. Menards puts customers first and employs individuals who are knowledgeable and possess expertise to answer customer questions about products or provide advice about completing a home improvement project. Menards stocks its stores with a vast selection of name-brand and private-label products that include tools, materials and supplies for home improvement projects. Menards continues to flourish and sales are strong since many consumers are choosing to make improvements to its homes rather than upgrade to a larger, more expensive home. Menards is led by its founder, John Menard who rules the chain of stores with an iron fist. He is very demanding and insists that everyone keep track of its work hours using a time clock. John Menard is the key decision-maker for the retail chain and makes location decisions for products within the store, establishing visual merchandising plans and even determining which cleaning products maintenance employees utilize to keep the stores' floors polished and sparkling. Over the years, John Menard has developed quite a reputation and employees who don't toe the line and comply with his rules get fined or are encouraged to seek employment elsewhere. Menard's advertising slogan and jingle, "Save Big Money at Menards" is part of its _______ which supports all corporate activities including marketing. a. organizational structure b. marketing plan c. marketing mix d. corporate identity

d. corporate identity

PepsiCo operates six global divisions that make and distribute a diverse range of products. Within each global division, PepsiCo is proud of its brands and has a loyal customer following. The Frito Lay division is responsible to make, market, sell, and distribute some of the most popular snack foods in the United States, including Lay's potato chips, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips and branded dips, Ruffles potato chips, and Fritos corn chips. Each of these popular brands has an executive brand manager who is responsible for developing a written document specifying the various marketing activities that will be performed to implement and evaluate the brand's marketing strategies. This written plan is called a _______. a. strategic window b. strategic performance evaluation c. sales analysis d. marketing plan

d. marketing plan (A written document that specifies the activities to be performed to implement and control the organization's marketing strategies is called a marketing plan.)

Menards is a family-owned company headquartered in Eau Claire, Wisconsin, with 280 retail store locations offering home improvement products, service, and expertise across the Midwest. Since its founding in 1964, Menards has developed a reputation as the low-price leader and communicates its focus on low prices with the advertising slogan and jingle, "Save Big Money at Menards." In addition to offering low prices, Menards is committed to providing a high level of quality service to its customers and treats guests like family in a local, hometown hardware store atmosphere. Menards puts customers first and employs individuals who are knowledgeable and possess expertise to answer customer questions about products or provide advice about completing a home improvement project. Menards stocks its stores with a vast selection of name-brand and private-label products that include tools, materials and supplies for home improvement projects. Menards continues to flourish and sales are strong since many consumers are choosing to make improvements to its homes rather than upgrade to a larger, more expensive home. Menards is led by its founder, John Menard who rules the chain of stores with an iron fist. He is very demanding and insists that everyone keep track of its work hours using a time clock. John Menard is the key decision-maker for the retail chain and makes location decisions for products within the store, establishing visual merchandising plans and even determining which cleaning products maintenance employees utilize to keep the stores' floors polished and sparkling. Over the years, John Menard has developed quite a reputation and employees who don't toe the line and comply with his rules get fined or are encouraged to seek employment elsewhere. The ability of Menards to hire employees who deliver a high level of quality service, possess expertise, and strive to put customers first would most likely be characterized as a(n) _______ during a SWOT analysis of the firm. a. weakness b. threat c. opportunity d. strength

d. strength

Growing Grounds is a full-service nursery and landscaping company that offers a wide selection of plant and landscape materials for its customers. The spring, summer, and fall seasons are the best times of the year for Growing Grounds and they have been experimenting with adding new products and services each year. Growing Grounds has an extensive line of trees, which can be planted by the customer or installed by its tree service for a minimal fee. In addition, they offer landscaping services and quite frequently work with home builders to install grass and bedding plants for new home construction projects. Growing Grounds also has a wide selection of bushes, ornamental plants, and seasonal plants such as vegetables. Over the years, Growing Grounds has added more "heirloom" plants to its line of vegetables that are organically grown and contain no genetic modifications. Growing Grounds has noticed that many consumers are concerned about genetic modifications as well as the use of pesticides. Moreover, consumers want to grow their own vegetables and enjoy the opportunity to harvest and eat the food that they have grown in their gardens. In its market, Growing Grounds has a reputation for serving the commercial business-to-business market with landscaping services, which is a stable market and one where they possess a large market share. However, they are hoping to grow its direct-to-consumer business by adding a full line of vegetable plants since home-grown vegetables and home-based gardening is growing in popularity. The home builders to whom Growing Grounds provides landscaping services such as lawn installation and bedding plants is considered one of the company's _______ and the landscaping services it provides is part of the _______ element of the marketing mix. a. market focus; service b. competitive advantages; service c. customer relationships; promotion d. target market; product

d. target market; product