Chapter 2: Smartbook
James would like to convince his company that his new product idea is worthwhile. To do this, he has been asked to determine the costs to create the product, communicate its value to customers, and deliver the product to the market. James has been asked to create a(n) forecast.
expense
When a company wants to determine how much it will cost to create a new product, it should complete a(n) ___________ forecast
expense
Readers of a marketing plan can see the detailed estimate of an organization's profitability in the _______ section.
financials
While each company may develop a marketing plan in a different way, there are usually _______ basic steps in every marketing plan.
five
Clara has been asked to conduct a situation analysis. In order to do this, she will complete an analysis of the market which is the group of consumers who are ________.
interested in and able to buy a product
The _______ is used to guide the analysis, implementation, and control of the firm's marketing strategy.
marketing plan
The specific actions a firm must take in order to accomplish its overall marketing objectives is laid out in its _______.
marketing strategy
are external factors that a firm may be able to capitalize on to meet or exceed its stated objectives.
opportuntiies
A firm that simply states "increase sales" as its marketing objective may have trouble formulating a strategy to meet this goal because this objective is too vague and does not meet the marketing characteristic of being _______.
specific
A company will create a one-to-two page document within the marketing plan that summarizes the main points. What is this document called?
Executive summary
Charles has asked his staff to provide him with a sales forecast, expense forecast, and a break-even analysis. All three of these items are considered to be _______.
financial projections
If you wanted to understand the overall profitability of a company, you would study the _______ section of the marketing plan.
financials
When a firm accomplishes a successful marketing strategy, it can lead to _______. (Check all that apply.)
higher profits stronger brands larger market share
Organizational structure is a key component within the controls section of the marketing plan because it _______.
holds specific departments and individuals responsible for the parts of the plan under their control
Within the BCG matrix, which type of product most likely falls under the category known as question marks?
New products
Paula owns a gift shop where every item sold is made from recycled products. All of her marketing efforts are aimed at making her target market feel good about purchasing recycled products and helping the environment. The efforts Paula makes to create a certain perception of her products in the eyes of her target market are referred to as _______.
positioning
What step of the marketing plan is developed after a marketer has completed the situation analysis?
marketing strategy
The financial projection that estimates how many units of a product a company expects to sell during a specified period of time is the _______.
sales forecast
Portia was asked to develop a medium-term marketing objective for the department. She came up with the following: "The department needs to increase ad revenues by 10% over the next quarter and can do this by developing relationships with Clorox, Johnson & Johnson, and Renuzit." Which aspect of developing a quality marketing objective has Portia most likely accomplished?
specific
Within the BCG matrix, products labeled as _______ combine large market share with a high growth rate. Apple's iPhone would be an example of this type of product.
stars
Firms can greatly increase the likelihood of success if they carefully define their objectives and develop a plan for meeting those objectives. This activity is referred to as _______.
strategic planning
The process of defining the objectives of a company and then developing a method to achieve those objectives is known as _______.
strategic planning
Break-even analysis
Estimate of how much a company needs to sell to cover expenses
Marketing efforts for which type of products focus on maintaining the product's market position as a leader in a growing industry for as long as possible?
Stars
Proctor and Gamble offers its Gillette brand of deodorant for men and its Secret brand of deodorant for women. By taking the overall market and dividing it into smaller groups, Proctor and Gamble has engaged in _______.
market segementation
The process of market segmentation results in _______.
market segments
As a component of the situation analysis, a focuses on the current state of the market to which the firm will sell its products.
market summary
The primary strategic planning tool used to direct and coordinate the activities marketers will undertake to execute the right marketing mix strategies to maximize success is the _______ plan.
marketing
Quality marketing objectives have three basic characteristics. Making sure that your objectives are helps to ensure that you do not provide unattainable goals and diminish the motivation of those working for you.
realistic
Which items are part of a thorough market summary? (Check all that apply.)
An analysis of important marketplace trends Potential sales through international expansion International growth opportunities
Expense forecast
An estimate of the costs a company will incur to create, communicate and deliver the product
A strategic plan addresses an organization's plan for which key functional areas? (Check all that apply.)
Human resources Finance Risk management Marketing
A strategic plan addresses an organization's plan for which key functional areas? (Check all that apply.)
Marketing Human resources Finance Risk management
A marketing strategy includes decisions about which of the following? (Check all that apply.)
Positioning Strategic direction Marketing mix Target markets Segmentation
Carlos has been asked to evaluate new opportunities that his company can take advantage of while also investigating potential threats to its product line. Carlos should use a(n)
SWOT Analysis
A marketing strategy includes decisions about which of the following? (Check all that apply.)
Strategic direction Segmentation Positioning Marketing mix Target markets
What is market segmentation?
The process of dividing a larger market into smaller groups based on meaningfully shared characteristics
A firm is developing plans for its marketing department in an effort to meet its objectives. It is developing _______.
a strategic plan
Stephanie knows that she needs to include information in the controls section of the marketing plan about what the company will do if the initial marketing strategy it has planned does not garner the results the company wants. This information is known as the plan.
contingency
A good mission statement should be oriented around the _______.
customer (bc products can change, customer needs don't)
Janis owns a bakery and as part of a situation analysis, she is preparing a competition analysis. To be most effective, she should _______.
evaluate both her direct and indirect competitors
True or false: The sales forecast would be included in the mission statement of the marketing plan.
false
Within the SWOT analysis, a weakness is considered an _______ limitation.
internal
In his first week at work, Gerald was asked to make suggestions for how to best market the company's newest product. In order to do this, he wanted to understand the goals and values the company had established for itself. To learn this, Gerald would want to consult the firm's .
mission statement
The purpose of a(n) is to provide employees with a shared sense of ambition, direction, and opportunity.
mission statement
It would be common practice for a firm to undertake the process of strategic planning _______.
on a continual basis
a market represents a group of like customers who have similiar needs
segement
Which component of the marketing plan allows a company to understand information about their current business and then make strategic decisions about how to best move forward?
situation analysis
The SWOT analysis is used, in part, to evaluate a firm's _______.
strengths and weaknesses
SWOT
strengths, weaknesses, opportunities, threats
Which of the following are subsections of a situation analysis?
Competition analysis Market summary SWOT analysis
It is common for companies to make which of the following mistakes when conducting a SWOT analysis?
Failing to separate internal issues from external issues
Which of the following are subsections of a situation analysis? (Check all that apply.)
Market summary Competition analysis SWOT analysis
Sales forecast
Projects how many units of a product a company expects to sell during a specific time period
When focusing on a situation analysis, the group of consumers who are interested in and able to buy a product are called _______.
a market
A company's long-term purpose can be identified in a concise format by creating _______.
a mission statement
A product that maintains a large market share in the industry even though that industry does not have a high growth rate is considered to be a _______.
cash cow
Families with small children are the primary customers for McDonalds' Happy Meals and the firm directs its marketing efforts toward this group by advertising during television programming aimed for kids. In this example, children would be considered a _______.
target market
The Boston Consulting Group matrix is a tool used to describe _______.
the current market
Quality marketing objectives have basic characteristics.
three
A _______ is an internal limitation that may prevent or disrupt a firm's ability to meet its stated objectives.
weakness
Who would a company rely on for input when developing the marketing plan?
Employees throughout the various departments
Robert owns a tennis apparel shop and is preparing a market summary. How can Robert make sure the competition section of his summary is most effective?
It should list both direct and indirect competitors.
Trisha has been asked to complete a situation analysis for her company to help guide the firm toward making strategic decisions for the future. Which of the following will Trisha be able to provide from her situation analysis? (Check all that apply.)
Market conditions Current competition Marketplace trends
are external factors that a firm may be able to capitalize on to meet or exceed its stated objectives.
Opportunities
The BCG matrix relies on two elements to produce four unique product categories. What are these two elements? (Check all that apply.)
Relative market share Market growth
Which of the following are necessary in order to create a break-even analysis? (Check all that apply.)
Sales forecast Expense forecast
Of the following, which three would be considered a component of the marketing plan? (Check all that apply.)
Situation analysis Financial section Marketing strategy
Which of the following factors should a firm consider when developing a mission statement? (Check all that apply.)
The mission statement should focus on a limited number of goals. The mission statement should be customer-oriented.`
When a company has a product that is considered a dog according to the BCG matrix, the company would be wise to _______.
discontinue the product
John's Sodas has been producing Diet John for 30 years. Sales have decreased continuously over the last 8 years and the market is stagnant. This product would most likely be considered a .
dog
The VHS tape would be considered a _______ within the BCG matrix because this is a product category in which no firm has a large market share and the growth rate is basically gone.
dog
Within the BCG matrix, products with a small market share in an industry that has low growth rates are called
dogs
Marketers want to understand what the specific return will be on a marketing investment. To know if their strategies are working, it is important that the marketing objective be .
measurable
Which characteristic of a marketing objective allows a marketer to understand if their strategies are working?
measurable
A cash cow is defined in the BCG matrix as _______.
products that have a large market share in an industry with low growth rates
Kevin's company has recently introduced a notepad computer that will require a significant marketing investment to promote it against the widely-popular iPad. The future of Kevin's notepad computer is uncertain and would be categorized as a _______ in the BCG matrix.
question mark
No one knows if diet food and soda will boom in the future. Jennie's company wants to add a line of diet snacks. These products would be considered _______.
question marks
When marketers use the BCG matrix, they use the term when classifying products that have a small market share in a high-growth industry.
question marks
Fatima is a regional sales manager and has decided that each member of the sales team must increase his or her current sales figures by 80% within two months if they want to remain with the company. Overall, the economy for the industry has dropped dramatically and she has decided this is the best way to motivate her sales team. Which aspect of the marketing objective is Fatima failing to recognize?
realistic
Which of the following are the three characteristics of a quality marketing objective? (Check all that apply.)
realistic, specific, measurable
While the _______ is listed as the first component of the marketing plan, firms should complete this part of the marketing plan last.
executive summary
According to your text, which of the following conditions might cause a firm to adjust its strategic plan? (Check all that apply.)
Changing customer needs Competitive threats
What primary strategic planning tool do companies rely on to direct and coordinate marketing efforts?
Marketing plan
Identify the four basic categories of marketing growth strategies from the list below. (Check all that apply.) Diversification Product development Synchronization Market development Market penetration Import/export
Diversification Product development Market development Market penetration
Kelly owns a cleaning service. Which of the following would demonstrate a weakness within her company that might show up on a SWOT analysis?
Her cleaning crew can only work two days a week.
A break-even analysis provides a firm with which of the following?
How much the company needs to sell to cover its expenses
What tool does a firm use to ensure that the business never strays too far from its core goals and values?
Mission statement
Jonathan owns a landscape service and mows 200 yards each week during the summer. Which of the following findings from a SWOT analysis conducted by Jonathan represents a threat?
A gas shortage is in effect and companies can only purchase up to five gallons of gas each week.
Apple's MacBook has a consistent market share and steady revenue. According to the BCG matrix, the MacBook is a _______ for the company.
cash cow
Even though the growth of MP3 players has declined, the Apple iPod still retains a large share of the market. The Apple iPod would be classified as a _______ within the BCG matrix.
cash cow
If Susan is asked to review the market summary, SWOT analysis, and competition information for her company, then Susan is in the process of completing a .
situation analysis
Jessica's company produces the most popular technology in America and consumers purchase new products almost as fast as the company produces them. It is part of Jessica's job in the marketing department to make sure she helps maintain the market position for these products and showcases them as leaders in the ever-growing industry. in the BCG matrix, Jessica would be focusing on products.
star
Sam's company produces a highly popular energy drink and consumers purchase anything related to this drink as soon as it hits the market. Sam's job is to help maintain the market position for these products, especially in this highly competitive industry. in the BCG matrix, Sam would be focusing on _______ products.
star