Market-Based Management Chapter 14: Building a Marketing Plan

Which of the following statements is true with regard to a marketing plan? A) A marketing plan can help a company clearly position itself in a variety of market segments. B) A good marketing plan will avoid profiling target customers. C) A marketing plan must focus on the larger market without breaking it down into its constituent markets. D) A marketing plan must be highly formalized to be successful in the real scenario. E) A marketing plan can lose focus by looking at niche markets to promote the business.

A) A marketing plan can help a company clearly position itself in a variety of market segments.

Which of the following statements is true with regard to the strategic market plan? A) A strategic market planning portfolio represents the competitiveness attractiveness of the company. B) A strategic market plan is the second step of the situation analysis level of market planning. C) A strategic market plan finalizes and implements a performance review and resolves any performance deficits of the current plan. D) A strategic market plan uses only past performance as a frame of reference. E) A strategic market plan does not incorporate the market share indices determined in the situation analysis step.

A) A strategic market planning portfolio represents the competitiveness attractiveness of the company.

In the context of SWOT analysis, which of the following would be a strength for a company already existing in the market? A) a high level of branding that leads to market recognition B) a growing market C) a local environment that is conducive to growth of the business D) a low level of barriers to entry in the market E) an openness of the governmental mechanism to foreign investors in the business

A) a high level of branding that leads to market recognition

In which type of marketing budget is each element of the marketing effort budgeted for specific tasks identified in the marketing plan? A) bottom-up budget B) objective and task budget C) annual budget D) customer-mix budget E) top-down budget

A) bottom-up budget

Which of the following types of budgets is based on the cost of customer acquisition and retention and the combination of new and retained customers? A) customer-mix budget B) top-down budget C) bottom-up budget D) objective and task budget E) total consumer budget

A) customer-mix budget

When assessing the current situation in the first step of a marketing plan, it is recommended that one ________. A) generates estimates based on knowledge and experience to be modified in the future B) substitutes the data of current performance by that of the projected performance in the plan C) avoids making assumptions of any kind D) eliminates areas that lack factual data from the purview of the plan E) utilizes only concrete facts about the future projections and performance gaps

A) generates estimates based on knowledge and experience to be modified in the future

ABL Inc. is a large consumer goods company that recently released some new shower gels in the market. Two of the most touted shower gels in this new line of products failed in the market, while the range of shower gels designed for adolescents called "Rebel" did very well in the market. Which of the following benefits would accrue to ABL Inc. from the success of "Rebel" in the market? A) increased cost-efficiency B) reduced customer retention rates C) reduced barriers of entry D) increased break-even sales figures E) reduced need for quality controls

A) increased cost-efficiency

The marketing team at Wallace Waterworks has been working on a marketing plan for the impending quarter. The team completed a SWOT analysis and incorporated its results into a strategic market plan. After evaluating the company's competitiveness and creating a revenue plan, the team now has to determine the resources necessary to meet the performance objectives of the strategic market plan. Which of the following steps will help the company determine the resource allocation for the coming quarter? A) marketing and sales budget B) SWOT analysis C) marketing mix plan D) strategic market plan E) situation analysis

A) marketing and sales budget

Which of the following steps involves a plan being proposed with respect to profitability and market share objectives for a specified planning horizon? A) strategic market plan B) SWOT analysis C) marketing budget D) situation analysis E) revenue plan

A) strategic market plan

Which of the following statements is true of a pull communication strategy? A) It is directed at channel intermediaries and channel influencers. B) It aims to create interest among customers and motivate them to acquire more information. C) It does not include digital communication methods. D) It focuses on focused on trade associations and industry influencers. E) It is of limited use when the company seeks to enhance consumer retention among current consumers.

B) It aims to create interest among customers and motivate them to acquire more information.

A ________ indicates the effort that is needed to recover a business's investment in a marketing and sales budget. A) situation analysis B) break-even analysis C) bottom-up analysis D) SWOT analysis E) force field analysis

B) break-even analysis

Which of the following would be considered as a current performance variable under the situation analysis level of a marketing plan? A) channels to the market B) competition and industry C) performance gap D) break-even sales figures E) communications strategy

B) competition and industry

The ________ is an estimate of the share performance index if the business were to achieve maximum levels of performance for each share metric. A) bond market index B) share potential index C) market share index D) market development index E) share development index

B) share potential index

In the context of SWOT analysis, strength refers to the ________. A) circumstances that limit the company's performance and should be addressed B) unique sources of advantage that the marketing plan should leverage C) current and possible factors that could impede performance D) aspects of the geo-political environment that strengthen the stand of the business at present E) potentialities that would improve profitability and should be addressed

B) unique sources of advantage that the marketing plan should leverage

ABL Inc. is a large consumer goods company that recently released some new shower gels in the market. Two of the most touted shower gels in this new line of products failed in the market, while the range of shower gels designed for adolescents called Rebel did very well in the market. Which of the following, if true, would explain this outcome? A) ABL Inc. used more traditional advertisements and less social media to promote the shower gel "Rebel." B) The two new shower gels that failed in the market were clearly positioned in their respective market segments. C) The project management team of ABL Inc.that was in charge for "Rebel" adopted a reduce-market-focus strategy that targeted only adolescents. D) The project management team of ABL Inc.that was in charge for "Rebel" advertised their product less than the other project management teams. E) ABL Inc. allocated resources equally for each project management team handling a new shower gel.

C) The project management team of ABL Inc.that was in charge for "Rebel" adopted a reduce-market-focus strategy that targeted only adolescents.

Which of the following would be considered a strategic market plan component of marketing strategy? A) profits B) customer needs C) investment D) customer profile E) revenue plan

C) investment

Which of the following are the components of a revenue plan? A) percent margins and profitability metrics B) break-even sales and shares C) market share, pricing, and revenues D) personnel and expenditures E) return on sales, asset turnover, and return on assets

C) market share, pricing, and revenues

The ________ represents the ongoing monitoring of marketing and profit performance in light of the marketing plan's timeline. A) marketing budget B) industry analysis C) performance review D) force field analysis E) situation analysis

C) performance review

The second step in the situation analysis level of a marketing plan involves ________. A) initiating a share valuation process B) conducting a performance review C) performing a SWOT analysis D) developing a revenue plan E) developing a performance plan

C) performing a SWOT analysis

The role of a SWOT analysis is to ________. A) evaluate the effort that is needed to recover a business's investment B) allocate resources based on the strategic market plan C) specify each marketing task and the amount needed to accomplish it D) document all present and possible future influences on performance E) monitor the marketing and profit performance in light of the marketing plan's timeline

D) document all present and possible future influences on performance

Which of the following would be considered a break-even analysis component of performance plan? A) expenditures B) asset turnover C) pricing D) profitability risk E) marketing profits

D) profitability risk

A business's channel strategy determines the framework adopted by the business for ________. A) enhancing the total cost of purchase index for its products and services in the market B) marketing its current profitability from conducting business C) establishing a revenue plan that matches projections and available resources D) selling and delivering its products and services to target customers E) evaluating its competitiveness and attractiveness in the industry in which it operates

D) selling and delivering its products and services to target customers

Which of the following statements is true with regard to a percent-of-sales marketing and sales budget? A) The cost of customer acquisition and retention is the primary determinant of the budget and resource allocation under this approach to budgeting. B) An aggressive growth strategy in this budget slowly reduces marketing and sales expenses as a percentage of sales while market share is harvested over time. C) It works by implementing a harvest strategy that requires more than the normal percentage of sales to achieve share and sales objectives. D) It specifies each marketing task and the amount needed to accomplish it, given a particular strategic market plan and the task-related marketing mix strategies. E) It focuses on previous experience, but it could vary from past experience depending on the nature of the strategic market plan.

E) It focuses on previous experience, but it could vary from past experience depending on the nature of the strategic market plan.

Which of the following would be considered an income statement component of performance plan? A) profitability metrics B) pricing C) marketing profits D) expenditures E) asset turnover

E) asset turnover

Which of the following is a component of the marketing strategy step of building a marketing plan? A) SWOT analysis B) marketing profitability strategy C) situation analysis D) break-even analysis E) communications strategy

E) communications strategy

The difference between the company's performance index and its cost of purchase index gives us the ________. A) profitability index B) market share index C) share potential index D) market development index E) customer value index

E) customer value index

The third step in building a marketing plan involves ________. A) conducting a situation analysis B) performing a SWOT analysis C) conducting a share valuation process D) conducting a performance review E) developing a performance plan

E) developing a performance plan

In the context of SWOT analysis, opportunities refer to ________. A) unique sources of advantage that the plan should leverage B) circumstances that limit performance and should be addressed C) current and possible factors that could impede performance D) aspects of the internal environment that strengthen the stand of the business at present E) potentialities that would improve profitability and should be addressed

E) potentialities that would improve profitability and should be addressed

In the ________, all elements of a market plan merge into a forecast of percent margins and marketing profitability. A) adjusting marketing plan B) performance review C) situation analysis D) marketing performance plan E) profit plan

E) profit plan

In order to develop a performance plan, a business first translates the objectives of the market share strategy into a ________. A) break-even plan B) situational analysis plan C) SWOT analysis plan D) communications strategy plan E) revenue plan

E) revenue plan

In which step of the process of building a marketing plan is a thorough examination of market forces, competitive position, and current performance undertaken? A) marketing budget B) profit plan C) communications strategy D) marketing mix strategy E) situation analysis

E) situation analysis

The first step in building a marketing plan is the step of ________. A) revenue planning B) marketing strategy C) performance plan D) performance review E) situation analysis

E) situation analysis

Uncovering key performance issues that normally might go unnoticed in day-to-day business operations is the primary purpose of the ________ step of a marketing plan. A) channel strategy B) revenue planning C) performance gap D) performance evaluation E) situation analysis

E) situation analysis

A SWOT analysis is an internal assessment of assets and limitations of a company and it excludes any external influencing factors from its purview.

False

A selective investment strategy, which invests in customers who have high customer lifetime value, is detrimental to the strategic objectives of the marketing plan.

False

After a business goes beyond the break-even level of sales, profitability begins to drop significantly.

False

In the context of market planning, it is advisable to view the potential market as a homogeneous market irrespective of the different needs and demands of the smaller niche markets

False

Marketing plans need to be highly formalized to be successful.

False

The company's customer value index is the sum of its performance index and its cost of purchase index.

False

The focus on a well-defined target market typically reduces cost efficiency of the company.

False

A marketing and sales budget that specifies each marketing task and the amount needed to accomplish it is called a bottom-up marketing and sales budget.

True

Both creative insight and analytical structure are necessary to paint a meaningful picture of the market situation, marketing strategy, and a logic-based path that leads to the desired performance objectives.

True

In developing a performance plan, a business first translates the objectives of the market share strategy into a revenue plan.

True

Marketing strategies often are driven internally by short-run profit objectives rather than by market-based performance objectives.

True

The primary purpose of a detailed situation analysis is to uncover key performance issues that normally might go unnoticed in day-to-day business operations.

True

The primary purpose of a strategic market plan is to create a set of performance objectives and to guide the development of marketing mix strategies.

True

The share potential index is an estimate of the share performance index if the business were to achieve maximum levels of performance for each share metric.

True

With an open system, marketing planners should act as facilitators in the planning process rather than as developers of a market plan.

True