chapter 2
Market penetration is a type of _______. a.strength b.market growth c.organizational resource d.competitive growth strategy
d.competitive growth 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
An opportunity that Burger King identifies through a SWOT analysis will not affect McDonald's or Wendy's. True False
False
Fixed costs are very helpful when determining how to use marketing funds more effectively. True False
False
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
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
Threats must be matched with opportunities in a SWOT analysis. True False
False
A company that understands and manages its costs appropriately has a competitive advantage. True False
True
A company using a product development strategy markets a new product in a current market. True False
True
Marketing plans may be developed for strategic business units, product lines, individual products or brands, or specific markets. True False
True
Performance standards are derived from marketing objectives that are set while developing the marketing strategy. True False
True
The target market is chosen before the company can adapt its marketing mix. 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
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: 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 b.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 c.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 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
a.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
Which of the following best defines a market opportunity? a.A combination of circumstances and timing that permits an organization to take action to reach a particular target market b.Assessment of an organization's strengths, weaknesses, opportunities, and threats c.Things a company does extremely well which may lead to an advantage d.Temporary periods of optimal fit between the market and the capabilities of an organization
a.A combination of circumstances and timing that permits an organization to take action to reach a particular target market
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.Capability to purchase b.Willingness to purchase c.Authority to purchase d.Needs for the product
a.Capability to purchase
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.Establishing a timetable for implementation b.Coordinating marketing activities c.Communication within the marketing unit d.Motivating marketing personnel
a.Establishing a timetable for implementation
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.Females ages 16 to 22 b.Children ages 10 or under c.Males ages 40 or older d.Females ages 40 or older
a.Females ages 16 to 22
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.Question mark b.Cash cow c.Star d.Dog
a.Question mark
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.situation analysis b.performance evaluation c.executive summary d.marketing objectives
b.performance evaluation
When marketing managers perform a cost analysis, they typically classify expenses into two categories, fixed or variable. Which of the following is an example of a variable cost? a.Sales representative commissions b.Rental expenses for office space c.Salaries of production workers d.Rental expenses for the office copy machine
a.Sales representative commissions
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.maintaining its corporate identity c.implementing the marketing mix d.a strategic plan
a.a marketing objective
Refer to Scenario 2.2. 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; question mark b.cash cow; star c.star; question mark d.question mark; cash cow
a.cash cow; question mark
When a company matches a core competency to opportunities in the marketplace, it possesses a _______. a.competitive advantage b.strategic fit c.market opportunity d.strategic window
a.competitive advantage
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.effective, but not efficient b.neither effective nor efficient c.effective and efficient d.efficient, but not effective
a.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.marketing objectives; opportunities b.executive summary; strengths c.marketing implementation; threats d.environmental analysis; opportunities
a.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.marketing plan b.corporate manifesto c.strategic plan d.mission statement
a.marketing plan
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 plan b.marketing objective and task document c.marketing analytics analysis d.marketing promotion schedule
a.marketing plan
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.corporate engagement c.business development d.market analysis
a.strategic planning
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.sustainable competitive b.non-sustainable competitive c.sustainable marketing d.cooperative marketing
a.sustainable competitive
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.Autonomous b.Centralized c.Decentralized d.Egalitarian
b.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.Advertising analysis b.Cost analysis c.Sales analysis d.Engagement analysis
b.Cost analysis
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.Empowering employees b.Evaluating actual performance c.Controlling marketing activities d.Determining strengths, weaknesses, opportunities, and threats
b.Evaluating actual performance
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 management b.marketing planning c.strategic analysis d.market organization
b.marketing planning
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.Decrease employee turnover b.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 c.Increase profitability compared to last year d.Generate word-of-mouth advertising through customer referrals
b.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
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.Product development b.Market development c.Market penetration d.Diversification
b.Market development
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.Core competency b.Market opportunity c.Strategic partnership d.Competitive advantage
b.Market opportunity
Which of the following statements is the best definition of the process of marketing implementation? a.Marketing implementation is the process of analyzing costs to determine which are associated with specific marketing efforts. b.Marketing implementation is the process of putting marketing strategies into action. c.Marketing implementation is the process of establishing performance standards. d.Marketing implementation is the process of analyzing sales figures to evaluate a firm's performance.
b.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 mix plan b.Marketing plan c.Strategic analysis d.SWOT analysis
b.Marketing plan
Why is sales analysis a common method of evaluation? a.Sales data provide the most accurate picture of whether a firm reached its performance standards. b.Sales data are readily available and can reflect the target market's reactions to a marketing mix. c.Sales data allow a marketer to allocate the firm's marketing resources better in the future. d.Sales data lets a company evaluate the performance of marketing strategy by comparing sales achieved and costs sustained.
b.Sales data are readily available and can reflect the target market's reactions to a marketing mix.
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.star b.cash cow c.dog d.question mark
b.cash cow
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.autonomous b.centralized c.decentralized d.egalitarian
b.centralized
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.market opportunity b.competitive advantage c.strategic fit d.strategic window
b.competitive advantage
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.corporate identity c.a value statement d.competitive position
b.corporate identity
Resource deployment and coordination of functional areas of business are determined by _______. a.business-unit strategy b.corporate strategy c.the mission statement d.marketing strategy
b.corporate strategy
The highest-level strategy used by organizations is _______. a.marketing strategy b.corporate strategy c.business-unit strategy d.organizational strategy
b.corporate strategy
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.quality outcomes b.customer satisfaction c.employee performance d.profitability
b.customer satisfaction
Vacuum manufacturer, Dyson, utilized a _______ strategy when it began building bladeless fans and hair dryers. a.product development b.diversification c.market penetration d.market development
b.diversification
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.objective b.market opportunity c.marketing mix d.goal
b.market opportunity
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.market opportunities b.strategic business units c.question marks d.competitive advantages
b.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.product development b.strategic performance evaluation c.SWOT analysis d.selecting a target market
b.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.marketing systems design b.strategic performance evaluation c.the systems design process d.the marketing audit
b.strategic performance evaluation
strategy costs in the monthly department budget performance report. You are especially interested in making sure the fixed and variable costs are properly categorized.The major costs associated with the marketing strategy are as follows: Salesperson commissions Office space rent Office equipment rental Product raw materials Product manufacturing labor With respect to the variable or fixed nature of these costs, _______. a.we know that office equipment rental, office space rent, and sales commissions are all fixed costs b.we know that salesperson commissions, product raw materials, and product manufacturing labor costs are all variable costs c.we know that product raw materials and office space rent are both fixed costs d.we know that office space rent is a variable cost
b.we know that salesperson commissions, product raw materials, and product manufacturing labor costs are all variable costs
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.Seek to reestablish the product line and generate interest in the product category b.Utilize the revenue supplied by the product line to support other products c.Continue to innovate, promote, and support the product line by investing resources in order to continue growth d.Divest the product line and/or stop producing the Keurig coffee maker
c.Continue to innovate, promote, and support the product line by investing resources in order to continue growth
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.Authoritarian b.Command and control c.Decentralized d.Paternalistic
c.Decentralized
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.Functional organizational structure b.Remote organizational structure c.Decentralized organizational structure d.Centralized organizational structure
c.Decentralized organizational structure
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.Use of secure sockets layer protocol mechanisms (SSL) for the company's website b.Laws regulating immigration and border control in the United States c.Percentage of Hispanic customers in the United States d.Environmental regulations
c.Percentage of Hispanic customers in the United States
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.Dog b.Cash cow c.Pig d.Star
c.Pig
Which of the following represents a well-stated marketing objective? a.Subway hope to be known as the best source for fresh and fast sandwich options b.Disney Resorts seeks to attract a greater proportion of older, mature adults to its properties c.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 d.Ritz-Carlton hotels seeks to deliver high-quality service that results in high-customer satisfaction
c.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
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.Cash cow b.Dog c.Question mark d.Star
c.Question mark
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.Conduct a SWOT analysis b.Identify the target market(s) c.Review or establish the organization's mission and goals d.Specify the marketing mix
c.Review or establish the organization's mission and goals
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.competency analysis b.environmental analysis c.SWOT analysis d.competitive differentiation analysis
c.SWOT analysis
A performance standard is defined as _______. a.a judgment regarding an employee's level of performance in making marketing decisions b.analysis of sales figures to evaluate performance c.an expected level of performance against which actual performance can be compared d.analysis of costs to determine their association to specific marketing activities
c.an expected level of performance against which actual performance can be compared
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; autonomous b.decentralized; centralized c.centralized; decentralized d.egalitarian; autonomous
c.centralized; decentralized
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.controlled b.centralized c.decentralized d.paternal
c.decentralized
According to the Boston Consulting Group, question marks are characterized as products _______. a.encompassing the greatest number of product categories b.generating more cash than is required to maintain market share c.having a small share of a growing market and requiring large amounts of cash to build market share d.existing at a cost disadvantage and revealing few opportunities for growth at a reasonable cost
c.having a small share of a growing market and requiring large amounts of cash to build market share
To formulate a marketing strategy, one must _______. a.develop plans for implementation and control b.develop a statement of what is to be accomplished through marketing activities c.identify and analyze a target market and develop a marketing mix to satisfy individuals in that market d.determine marketing objectives
c.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.sustainable; unsustainable b.first-mover; late-mover c.late-mover; first-mover d.economic; technological
c.late-mover; first-mover
The process of putting marketing strategies into action is called _______. a.marketing action b.marketing control c.marketing implementation d.marketing auditing
c.marketing implementation
According to the Boston Consulting Group Growth Share Matrix, products labeled as "dogs" are _______. a.important to the firm and require a large amount of cash to build market share in a growing market b.easy targets that can be converted to a star c.often found in established markets, have low prospects for growth, and a lower share of the market d.considered to have low opportunities for growth but possess a dominant share of the market
c.often found in established markets, have low prospects for growth, and a lower share of the market
Refer to Scenario 2.1. Assume that you are conducting a SWOT analysis for Menards based upon the information provided in the scenario. The increase in sales coming from customers who are making improvements to their existing homes rather than purchasing new homes would be classified as a(n) _______. a.weakness b.strength c.opportunity d.threat
c.opportunity
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.supplemental b.spin-off c.strategic business d.diverse
c.strategic business
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.differential attributes b.opportunities c.strengths d.enhanced capabilities
c.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.competitive inhibitor b.core competency c.sustainable competitive advantage d.realized benefit
c.sustainable competitive advantage
The section of the marketing plan that outlines how the company will achieve its objectives will discuss _______. a.strengths, weaknesses, opportunities, and threats b.performance standards and financial controls c.the target market and marketing mix d.quantitative measures of what is to be accomplished
c.the target market 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.core competencies; weaknesses b.strengths; threats c.threats; weaknesses d.limitations; benefits
c.threats; weaknesses
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.Seek to reestablish the product line and generate interest in the product category b.Utilize the revenue supplied by the product line to support other products, such as the Apple Watch c.Divest the product line and/or stop producing the iPad 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
mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning? a.Organizing marketing functions b.Coordinating marketing activities c.Establishing marketing objectives d.Developing a marketing strategy
d.Developing a marketing strategy
Which of the following best exemplifies the concept of a "strategic window"? a.McDonald's ability to offer McCafé coffee products in its stores. b.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. c.Walmart's use of its supply chain and logistics capabilities to deliver products to its stores within 24 hours. 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.
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.
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 delineates marketing responsibilities and tasks. b.It provides a uniform marketing vision for the firm. c.It helps marketing managers monitor and evaluate the marketing strategy. d.It specifies the contractual relationship between consumers and the organization.
d.It specifies the contractual relationship between consumers and the organization.
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 strategies b.Marketing objectives c.Performance evaluation d.Marketing implementation
d.Marketing implementation
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.Advertising analysis b.Cost analysis c.Engagement 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.Tax rates, health and medical trends, and foreign exchange rates b.Foreign exchange rates, trade policy, and population growth rates c.Environmental regulations, tax policy, and health and medical trends 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)
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 mission statement c.a marketing tactic d.a marketing objective
d.a marketing objective
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 marketing environment is analyzed c.a session where the overall corporate strategy is developed d.a session where the firm's mission and goals are established or revised
d.a session where the firm's mission and goals are established or revised
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.strategic window b.user benefit c.opportunity d.core competency
d.core competency
Refer to Scenario 2.1. Menard's advertising slogan and jingle, "Save Big Money at Menards" is part of its _______ which supports all corporate activities including marketing. a.marketing mix b.organizational structure c.marketing plan d.corporate identity
d.corporate identity
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.deformalize b.centralize c.formalize 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.SWOT analysis; marketing concept b.marketing implementation; marketing environment c.executive summary; marketing concept d.environmental analysis; marketing environment
d.environmental analysis; marketing environment
A strongly written marketing objective should contain all of the following characteristics, except _______. a.it should specify a time frame b.it should be consistent with business-unit and corporate strategies c.it should be measurable 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.strategy planning tool b.Boston Consulting Group matrix c.strategic imperative matrix d.market growth/market share matrix
d.market growth/market share matrix
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.core competency b.strategic window c.competitive advantage d.market opportunity
d.market opportunity
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 position b.market growth c.target market d.market share
d.market share
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.sales analysis b.strategic window c.strategic performance evaluation d.marketing plan
d.marketing plan
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.strength b.threat c.market niche d.opportunity
d.opportunity
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.SWOT analysis b.sales analysis c.marketing cost analysis d.performance standard
d.performance standard
Refer to Scenario 2.2. 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.customer relationships; promotion b.market focus; service c.competitive advantages; service d.target market; product
d.target market; product