MGMT 323 Chapter 2. Developing Marketing Strategies and a Marketing Plan

What growth strategy is being used when a company that makes protein bars for long-distance runners starts selling the same bars to busy parents as a quick breakfast? - Product development - Market penetration - Market development - Diversification

Market development

What does the term weaknesses refer to in SWOT analysis? - Negative attributes internal to the firm - Negative aspects of the external environment - Positive attributes internal to the firm - Positive aspects of the external environment

Negative attributes internal to the firm

When developing a marketing plan, what will a firm do immediately after developing its mission? - Evaluate its internal opportunities - Evaluate its employees' performance - Perform a situation analysis using SWOT - Create a yearly budget

Perform a situation analysis using SWOT

What are the three major phases of the marketing plan? (Choose every correct answer.) - Control - Planning - Organization - Implementation

Planning Implementation Control

STP includes which of the following? (Choose every correct answer.) - Positioning - Pricing - Segmentation - Strengths

Positioning Segmentation

A smartphone manufacturer makes a new smartwatch that pairs well with its existing phones. This is an example of which growth strategy? - Product development - Diversification - Market penetration - Market development

Product development

During which step of the marketing plan do marketers make important decisions about how they will allocate their scarce resources to their various products and services? - Identifying and evaluating opportunities - Evaluating performance - Defining the business mission - Implementing the marketing mix

Implementing the marketing mix

A sustainable competitive advantage ______. - is something that can be maintained for a long time and is not easily copied - should be avoided by firms that are not involved in environmental advocacy - increases competition through price adjustments - is rarely, if ever, a firm's key goal or objective due to the expense involved

is something that can be maintained for a long time and is not easily copied

A market Blank______ growth strategy focuses on increasing sales of the firm's current products to its current target markets. - management - acquisition - penetration - development

penetration

In the last step of the marketing planning process, the purpose of a(n) ______ evaluation is to figure out problem areas. (Enter one word in the blank)

performance

The three major phases of the marketing plan are ______. - planning, implementation, and control - locational excellence, product excellence, and operational excellence - marketing strategy, macro strategies, and sustainable competitive advantage - human resource management, vendor relations, and competitive advantage

planning, implementation, and control

In a(n) ______ diversification opportunity, the current target market and/or marketing mix shares something in common with the new opportunity. (Enter one word in blank)

related

Locational excellence is particularly important for which type of firm? - Science research facility - Retailers - Manufacturers - Call centers

retailers

Which of the following is LEAST effective when building a sustainable competitive advantage? - Using four or five strategies - Using six or more strategies - Using two or three strategies - Using only a single strategy

using only a single strategy

What factors that affect a sales manager's performance are outside the manager's control? (Choose every correct answer.) - An economic downturn - Poor implementation of a sales strategy - An inadequate sales force - Successful competition

- An economic downturn - Successful competition

Which of the following are steps in the STP process? (Choose every correct answer.) - Countering negative aspects of the external environment - Determining which subgroups should be pursued - Positioning products and services to meet the needs of the chosen targets - Dividing the marketplace into subgroups

- Determining which subgroups should be pursued - Positioning products and services to meet the needs of the chosen targets - Dividing the marketplace into subgroups

Firms achieve operational excellence through which of the following? (Choose every correct answer.) - Good supply chain management - Efficient operations - Strong relationships with suppliers - Reducing focus on human resources

- Good supply chain management - Efficient operations - Strong relationships with suppliers

A portfolio analysis involves which of the following? - Management identifies and evaluates opportunities using STP. - Management allocates its resources to products with the greatest potential to be profitable. - Management develops the marketing mix for each SBU. - Management evaluates the firm's various products and businesses.

- Management allocates its resources to products with the greatest potential to be profitable. - Management evaluates the firm's various products and businesses.

Which of the following are included in the four major growth strategies? (Check all that apply.) - Product development - Market analysis - Market development - Market penetration

- Product development - Market development - Market penetration

Some commonly used financial performance metrics include which of the following? (Choose every correct answer.) - Profits - Mission statements - Sales revenue - SWOT analysis

- Profits - Sales revenue

Why do firms use metrics in the last step of the marketing plan? - To compare results across regions, product lines, and time periods - To help stakeholders understand the firm's mission statement - To develop integrated marketing communications - To make appropriate adjustments to performance

- To make appropriate adjustments to performance - To compare results across regions, product lines, and time periods

What are the main purposes of metrics during the final step of the marketing planning process? (Choose every correct answer.) - To predict what will happen - To consider how best to position the firm - To explain why things happened - To understand the needs of a market segment

- To predict what will happen - To explain why things happened

What are reasons why strategic planning may NOT occur sequentially? (Choose every correct answer.) - When the economy has had six consecutive months of steady growth and projections indicate that the trend will continue - When a situation analysis necessitates that the mission statement be revised - When new logical alternatives arise - When the implementation plan cannot move forward because there are too few resources

- When a situation analysis necessitates that the mission statement be revised - When new logical alternatives arise - When the implementation plan cannot move forward because there are too few resources

A marketing plan includes all of the following EXCEPT ______. - a plan on how to pitch investors - marketing objectives and strategy - an analysis of the current marketing situation - projected income statements

A plan on how to pitch investors

A firm can begin to implement the marketing mix immediately after which step? - After it has completed a SWOT analysis - After it has written its mission statement - After it has finished segmentation, targeting, and positioning - After it has employed marketing metrics to evaluate performance

After it has finished segmentation, targeting, and positioning

Which statement is true regarding SBUs? - The term SBU stands for "segmented business unit." - SBUs develop as cash cows. - The term refers to parent companies. - An SBU may have a different mission or objective from other division

An SBU may have a different mission or objective from other division

Which scenario is an example of loyalty to a company in a consumer's daily life? - Ordering from Pizza Hut because there is a coupon in the mail offering a significant discount - Continuing to shop at Dunkin' Donuts even if Starbucks opens more convenient locations and offers slightly lower prices - Buying a Pepsi product from the campus vending machine because Pepsi is the only vendor allowed on campus - Getting a haircut from the one barber in town who has an appointment available this afternoon

Continuing to shop at Dunkin' Donuts even if Starbucks opens more convenient locations and offers slightly lower prices

A market penetration strategy, as one of the possible growth options, may be achieved by which of the following? - Encouraging current customers to patronize the firm and the brand more often - Introducing additional products and services to the current buyers - Finding new markets for the firm's current products - Implementing a standard marketing plan

Encouraging current customers to patronize the firm and the brand more often

T/F: The purpose of a marketing strategy is to maximize short-term profits.

False

With Blank______, the firm first divides the marketplace into subgroups, determines which of those subgroups it should pursue, and finally decides how it should best position its product or service. - SWOT - STP - the marketing mix - the four Ps

STP

What are the four components of a SWOT analysis? (Choose every correct answer.) - Technology - Opportunities - Organization - Threats - Strengths - Weaknesses

Strengths Weaknesses Opportunities Threats

Which of the following are examples of strengths that could be identified in a SWOT analysis? (Choose every correct answer.) - Heavy reliance on a single product line - An increase in taxation - Strong brand recognition - A reliable network of spokespeople

Strong brand recognition A reliable network of spokespeople

What does the term strengths refer to in SWOT analysis? - The positive aspects of the external environment - The positive internal attributes of a firm - The negative attributes of a firm - The negative aspects of the external environment

The positive internal attributes of a firm

Which statement about strategic planning is true? - Skipping a step of the process is fine, but the steps should not be performed out of order. - The process can move back and forth between steps, depending on the situation. - The steps of the process must always be followed in order. - A strategy created without following the steps in order usually ends up failing or doing poorly.

The process can move back and forth between steps, depending on the situation.

What is the purpose of evaluating performance during the last step of the marketing plan process? - To highlight employee successes - To identify growth and effectiveness relative to the competitors - To identify potential layoffs or additional employees required - To identify and explain performance above or below expectations

To identify and explain performance above or below expectations

In which type of diversification strategy does a firm enter into an entirely new business? - Metric-driven - Related - Unrelated - Competitive

Unrelated

What is the primary question a mission statement should answer? - What specific tasks should we perform in the next year? - Who is our target market? - What type of business are we? - What are our short-term goals?

What type of business are we?

A company that has successfully built a wall around its position in the market, making it hard for competitors outside the wall to enter the market and compete, is an example of a company that has established ______. - product excellence - superior service - operational excellence - a competitive advantage

competitive advantage

In Step 1 of the planning phase, a firm ______. - defines the mission and/or vision of the business - implements the marketing mix - conducts a SWOT analysis - evaluates its marketing performance

defines the mission and/or vision of the business

A mission statement ______. - defines the scope of activities a firm plans to undertake - enhances the value of a firm's products - details how a firm can avoid risks - maximizes profits and dividends

defines the scope of activities a firm plans to undertake

Step 5 in the marketing plan process is when a firm ______ the outcome of the strategy and implementation process. - evaluates - builds - sustains - cancels

evaluates

Step 5 of the marketing plan involves Blank______. - performing the STP process - defining the firm's mission and objectives - evaluating the results of the strategy and implementation program - implementing the marketing mix elements for customers

evaluating the results of the strategy and implementation program

T/F: Firms that use multiple strategies to build a sustainable competitive advantage have difficulty maintaining long-term success.

false

A competitive advantage based on location ______. - is unsustainable because location is unimportant - is sustainable when real estate is difficult or expensive to obtain - is sustainable when the retail location is close to similar stores - is unsustainable because customer service is more important

is sustainable when real estate is difficult or expensive to obtain

A strategy that employs existing products or services to reach new market segments is called ______. - diversification - market development - product development - market penetration

market development

Firms consider pursuing various ______ as part of their overall growth strategies. - mission statements - portfolio analyses - market segments - metrics

market segments

The macro strategies for developing customer value include each of the following EXCEPT ______ excellence. - operational - locational - product - marketing

marketing

A ______ is a written document that includes the current marketing situation, specified objectives and strategies, action programs, and projected income statements. - marketing plan - business plan - financial plan - strategic plan

marketing plan

A ______ identifies a firm's target markets, a related marketing mix, and the bases upon which the firm plans to build a sustainable competitive advantage. - marketing metric - marketing strategy - market statement - mission statement

marketing strategy

A metric is a Blank______ that quantifies a trend, dynamic, or characteristic. - product or service - promotional plan - marketing plan - measuring system

measuring system

Revenues and profits are commonly used ______ to assess performance. - segments - mission statements - metrics - strategies

metrics

Product excellence ______. - yields cost savings because it requires little to no additional investment by the firm - occurs by having products with high perceived value and effective branding and positioning - is not enough to achieve competitive advantage on its own - is achieved through efficient operations and efficient production

occurs by having products with high perceived value and effective branding and positioning

Which of the following is NOT an example of customer loyalty? - Only purchasing dresses at Anthropologie - Only purchasing holiday decorations from World Market - Only purchasing organic products - Only purchasing light fixtures at Home Depot

only purchasing organic products

Which type of excellence is achieved through efficient operations, excellent supply chain management, and strong relationships with suppliers? - Locational excellence - Operational excellence - Customer excellence - Product excellence

operational excellence

In ______ analysis, management evaluates the firm's various products and businesses, then allocates resources according to potential profit outlook. - contingency - portfolio - operations - growth options

portfolio

In ______ analysis, management evaluates the firm's various products and businesses, then allocates resources according to potential profit outlook. - growth options - portfolio - contingency - operations

portfolio

Firms that achieve a sustainable competitive advantage through their merchandise and service offerings, and through effective branding and positioning, are doing so using ______ excellence. - product - customer - locational - operational

product

The ______ strategy offers a new product or service to a firm's current target market. - market penetration - market development - product expansion - product development

product develpment

Which of the following is one of the macro strategies for developing customer value through effective branding and positioning? - Supply excellence - Advertising excellence - Product excellence - Communication excellence

product excellence

Which of the following is one of the macro strategies for developing customer value through effective branding and positioning? - communication excellence - supply excellence - advertising excellence - product excellence

product excellence

A ______ is a division of the firm itself that can be managed and operated independently from other divisions. - strategic business unit (SBU) - market segment - marketing department - target market

strategic business unit (SBU)

In a SWOT analysis, Blank______ refer to the positive internal attributes of the firm. - weaknesses - opportunities - strengths - threats

strengths

Licensing of the brand, a reputation for quality, and a large number of retail stores are examples of potential ______ that a firm may identify during a SWOT analysis. strengths weaknesses opportunities threats

strengths

The "T" in STP stands for ____

target

Step 1 of the marketing plan is focused on ______. - evaluating performance - implementing the marketing mix - the business mission and objectives - setting up the SWOT analysis

the business mission and objectives

Aging equipment that slows down production is an example of a(n) ______ for a firm. weakness opportunity threat strength

weakness