Exam 1

external factors

(opportunities and threats)

Functional strategy decisions must:

1. fit the needs and purposes of the functional area with respect to meeting its goals and objectives. 2. be realistic given the organization's available resources and environment. 3. be consistent with the organization's mission, goals, and objectives.

Strategy

Firm's game plan for success

Tactical Planning

Focusing on specific markets or market segments and the marketing programs that meet their needs

All functional objectives should be expressed in clear, simple terms so that all personnel understand what type and level of performance the organization desires.

In other words, objectives should be written so that their accomplishment can be measured accurately.

Marketing Plan

Outlining the marketing program

16. Firms specializing in operational excellence excel at basic research/rapid research interpretation as a core competency. a. True b. False

b. False

The SWOT analysis is derived from the marketing goals and objectives section. a. True b. False

b. False

In the context of marketing planning, why is it vital that the marketing plan be capable of selling itself to top management? a. Because top managers must be able to clearly communicate the strategy to external stakeholders. b. Because top managers are responsible for executing the marketing plan. c. Because top managers must decide whether the marketing plan is the best use for the organization's scarce resources. d. Because top managers must ensure that the marketing program is successful.

c. Because top managers must decide whether the marketing plan is the best use for the organization's scarce resources.

The growth of the Internet has changed the way that situation analysis is conducted in today's business environment. In terms of situation analysis, which of the following is the most drastic change caused by the Internet? a. All competitors now have access to the same data and information. b. There is now no such thing as secrecy in strategic planning. c. The analyst is more likely to suffer from severe information overload. d. Specific data and information take longer to find.

c. The analyst is more likely to suffer from severe information overload.

Competitive advantages

cannot be fully realized unless customers see them as valuable. The key issue is the organization's ability to convince customers that its advantages are superior to those of the competition.

Which of the following is NOT a part of evaluating the internal environment? a. A review of current objectives, strategy, and performance . b. A review of the current availability of organizational resources c. A review of the organizational structure. d. A review of the competition.

d. A review of the competition.

involves the analysis of economic, political, legal, technological, and cultural events and trends that may affect the future of the organization and its marketing efforts. a. Marketing research b. Tactical planning c. External analysis d. Environmental scanning

d. Environmental scanning

Stability of a statement

depends on the frequency of modifications

Business-unit strategy

determines the nature and future direction of each business unit, including its competitive advantages, the allocation of its resources, and the coordination of the functional business areas

Firms must rely on their internal market

for a functional strategy to be implemented successfully

Customer-focused - mission statements

have become much more customer oriented. People's lives and businesses should be enriched because they have dealt with the organization.

Is a central plan to:

o Carry out organization's mission o Achieve desired goals and objectives o Utilize and integrate organization's resources

the internal factors

(strengths and weaknesses)

Competitive intelligence

- Analyzing competing businesses

Environmental scanning

- Analyzing the external environment

Internal analysis

- Analyzing the firm's current and future performance and sustainability strategies

Mission width

- Broad statements can help establish plans in areas with limited strength

Situation analysis

- Collecting and interpreting internal, competitive, and environmental information

•External market

- Customers, investors, suppliers, and society

Possession Utility

- Deals with easy transfer of ownership or title

Internal market

- Employees, managers, and executives

Product positioning

- Establishing a mental image of the product in the minds of target buyers

Marketing implementation

- Process of executing the marketing plan

Form Utility

- Product contains distinguishing attributes

Time Utility

- Product is available when customer wants it

Place Utility

- Product is available where customers want it

Psychological Utility

- Product provides positive experiential attributes that customers find satisfying

basic marketing concepts of types of utility

1. Form utility 2. Time utility 3. Place utility 4. Possession utility 5. Psychological utility

the basic marketing concepts and examples of a product?

1. Goods 2. Services 3. Ideas 4. Information 5. Digital products 6. People 7. Places 8. Experiences and events 9. Real or financial property 10. Organization

are challenges and opportunities in today's economy?

1. Power shift to customers 2. Massive increase in product selection 3. Audience and media fragmentation 4. Changing value propositions 5. Shift in demand patterns 6. Privacy, security, and ethical concerns 7. Unclear legal jurisdiction

strategic planning, tactical planning, and marketing plan?

1. Strategy 2. Tactical planning 3. Marketing plan - Outlining the marketing program

What are elements of a mission statement?

1. Who are we? 2. Who are our customers? 3. What is our operating philosophy? 4. What are our core competencies or competitive advantages? 5. What are our responsibilities with respect to being a good steward of our human, financial, and environmental resources?

Commoditization

Consequences of mature industries where slowing innovation, extensive product assortment, excess supply, and frugal consumers force margins to the floor

is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as offering roughly the same benefits. a. Commoditization b. Price devaluation c. Specialization d. Market homogeneity

a. Commoditization

Which of the following is an example of collecting secondary information? a. Examining an annual report. b Surveying the organization's customers. c. Conducting focus groups d. Directly observing consumers in the store

a. Examining an annual report.

Which of the following is needed to develop goals and objectives? a. Mission statement b. A SWOT analysis c. Marketing plan d. Competitive intelligence

a. Mission statement

A consumer wanted to purchase a new computer. However, she used the money to pay her rent instead. In this case, housing is what type of competitor? a. Total budget competitor b. Market competitor c. Product competitor d. Brand competitor

a. Total budget competitor

Among the fundamental changes to marketing and business practice in today's economy is the dramatic increase in the availability of information. This increase in information has created a shift in the balance of power in the supply chain. Who now holds most of the power in today's economy? a. customers b. market research firms c. retailers d. wholesalers

a. customers

Motorola continuously establishes performance standards and assesses actual performance by comparing it with these standards. Afterwards, Motorola often takes corrective action to reduce any discrepancies. This process is most likely outlined in the __________ section of Motorola's marketing plan. a. goals and objectives b. evaluation and control c. marketing strategy d. marketing implementation

b. evaluation and control

What type of planning deals with specific markets or market segments and the development of marketing programs that will fulfill the needs of customers in those markets? a. lower-level planning b. tactical planning c. market planning d. strategic planning

b. tactical planning

Marketing control involves establishing performance standards, assessing actual performance

by comparing it with these standards, and taking corrective action if necessary to reduce discrepancies between desired and actual performance.

. Which of the following statements about pricing decisions in the marketing program is TRUE? a. Customers will always equate higher prices with higher quality products. b. Pricing is the most difficult element of the marketing mix to change. c. Price has a direct connection with customer demand. d. Price is one of two elements of the marketing mix that leads to revenue.

c. Price has a direct connection with customer demand.

In 2009 General Motors had numerous internal weaknesses. However, there were still many external opportunities available for the company to pursue. Which of the following strategy direction is appropriate for this scenario? a. Defensive b. Diversification c. Passive d. Turnaround

d. Turnaround

A vision statement answers which of the following statements? a. What business are we in? b. Which is our market position? c. How can we serve our target markets? d. What do we want to become?

d. What do we want to become?

the evaluation and control

phase of the planning process is an ending and a beginning.

evaluation and control serves as the beginning point for

the planning process in the next planning cycle.

•Qualities of a good marketing plan

•(1) Comprehensive; (2) flexible; (3) consistent; and (4) logical