EXAM 1

A functional strategy decisions must:

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

Functional Strategy

A strategy that provides a total integration of efforts that focus on achieving the area's stated objectives. Should be evaluated to determine its effect on sales, costs, image, and profitability.

Who(5W Model)

Assesses the viability of potential customers or markets that may be acquired in the future. Requires an examination of the relevant characteristics that define target markets, such as demographic geographic, and psychographic characteristics

In the 5W model of customer analysis, what is the primary emphasis of the "What" question? Select one: a. Identifying the basic need-satisfying benefits provided by the firm's products. b. Assessing how purchases vary across different distribution outlets. c. Determining the relevant characteristics that define markets. d. Assessing how customers consume and dispose of products. e. Identifying the situational influences that affect the customer buying process.

Assessing how customers consume and dispose of products.

In the context of marketing planning, why is it vital that the marketing plan be capable of selling itself to top management? Select one: a. Because top managers are responsible for executing the marketing plan. b. Because top managers must decide whether the marketing plan is the best use for the organization's scarce resources. c. Because top managers must be able to evaluate the performance of the marketing program. d. Because top managers are compensated on how well the marketing strategy works. e. Because top managers must be able to clearly communicate the strategy to external stakeholders

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

Corporate affairs

Collection of strategic activities that are aimed at marketing a firm, its issues, and its ideals to stakeholders - can be part of competitive advantage

___________________ involves analyzing the capabilities, vulnerabilities, and intentions of competing business. Select one: a. Segmentation b. Competitive intelligence c. Tactical planning d. Marketing e. Internal analysis

Competitive intelligence

Changing value propositions in today's economy—such as changes caused by the growth in e-commerce— have forced marketers to learn a tough lesson about customers. What is that lesson? Select one: a. Customers would rather perform services for themselves to save money. b. Customers will always turn to the most recognized brand. c. Customers will always seek the best quality regardless of price. d. Customers will always seek the best value regardless of quality. e. Customers will turn to the most convenient, least expensive alternative when a product is thought to be a commodity

Customers will turn to the most convenient, least expensive alternative when a product is thought to be a commodity

What strategic direction or focus would you recommend for a firm that is plagued by many internal weaknesses at a time when many threats exist? Select one: a. Diversification b. Niche marketing. c. Aggressive d. Defensive e. Turnaround

Defensive

Which of the following is an example of collecting secondary information? Select one: a. Conducting experiments to measure cause-and-effect. b. Surveying the organization's customers. c. Directly observing consumers in the store. d. Conducting focus groups. e. Examining an annual report

Examining an annual report.

Where (5W Model)

Identifies one of distribution and customer convenience

Why (5W Model)

Identifies the basic need-satisfying benefits provided by the firm's products

_____________ is the key to breaking out of "commodity hell". Select one: a. Market segmentation b. Metamediaries c. Innovation d. Power shifting e. Discount Pricing

Innovation

Which of the following IS NOT a purpose of a marketing plan? Select one: a. It identifies resources needed to carry out the plan. b. It explains how marketing activities mesh with other functional areas. c. It describes specific actions that are to take place. d. It explains the present and future situations of the organization. e. It specifies the expected outcomes of the plan

It explains how marketing activities mesh with other functional areas.

Although mass media audiences are becoming increasingly fragmented, media fragmentation does have a major advantage. What is this advantage? Select one: a. It is now easier to reach smaller, highly targeted audiences. b. It now costs less to reach a mass audience. c. Consumers are now much more receptive to television advertising. d. Consumers are now highly susceptible to online advertising. e. It is much easier to measure feedback from mass media audiences.

It is now easier to reach smaller, highly targeted audiences

Why is it important that marketing goals involve some degree of intangibility? Select one: a. It makes goals more consistent with the objectives that follow. b. It makes goals easier to achieve. c. It makes it more difficult for competitors to determine the firm's marketing strategy. d. It makes the goal more motivational and promotes continuous improvement e. It promotes learning by forcing employees to ask questions about the strategy.

It makes the goal more motivational and promotes continuous improvement

Why is it important that marketing goals involve some degree of intangibility? Select one: a. It promotes learning by forcing employees to ask questions about the strategy. b. It makes goals easier to achieve. c. It makes it more difficult for competitors to determine the firm's marketing strategy. d. It makes the goal more motivational and promotes continuous improvement

It makes the goal more motivational and promotes continuous improvement

Kodak focused on maintaining market dominance over Polaroid and Fuji but failed to consider Sony, Nikon, Canon, and even smartphones. What mistake did Kodak make? Select one: a. It didn't engage in competitive analysis. b. It identified the wrong brand competitors. c. It refused to collaborate with its competitors. d. It only focused on brand competitors. e. It was too obsessed with market dominance

It only focused on brand competitors.

In terms of setting goals and objectives, what is considered to be one of the major benefits gained from applying for the Malcolm Baldrige National Quality Award? Select one: a. It helps the firm to focus solely on customer requirements. b. It helps the firm to set objectives that are difficult for competitors to copy. c. It promotes the development of goals that are consistent with the firm's mission. d. It promotes the development of discontinuous objectives. e. It allows the firm the freedom to pursue other strategic initiatives

It promotes the development of discontinuous objectives

1.All of the following are benefits of SWOT analysis EXCEPT: Select one: a. It can synthesize and integrate diverse information. b. It promotes collaboration and open information exchange. c. It can reduce costs associated with strategic planning. d. It is simple to use and requires no extensive training or skills. e. Its structured nature ensures that data and information are correctly categorized

Its structured nature ensures that data and information are correctly categorized

When firms who have successfully implemented the balanced performance scorecard hold regular meetings to review the performance of their strategy, they are adhering to which of the five common principles that successful firms use when implementing the balanced performance scorecard method? Select one: a. Aligning the organization to the strategy b. Mobilizing change through executive leadership c. Translating the strategy into operational terms d. Making strategy everybody's job e. Making strategy a continual process

Making strategy a continual process

__________ firms are those that successfully generate, disseminate, and respond to market information. Select one: a. Customer-oriented b. Market-oriented c. Competitive-oriented d. Satisfaction-oriented e. Information-oriented

Market-oriented

The content to be included on a brand's Facebook page is described in which section of the marketing plan? Select one: a. Evaluation and control b. Marketing strategy c. SWOT analysis d. Executive summary e. Marketing implementation

Marketing implementation

All of the following are reasons for the general decline in customer satisfaction over the past 20 years EXCEPT: Select one: a. Today's customers are exceptionally demanding. b. Customers are more cynical, have more information, and have more attitude than ever before. c. Customers are much less brand loyal than in the past. d. Today's customers are very price sensitive. e. Product quality is much lower now than at any time in the past

Product quality is much lower now than at any time in the past

Metamediary

Provides a single access point where buyers can locate and contact many different sellers in the metamarket - "one stop shopping"

Over the past few years, the quantity of CDs and DVDs carried by brick and mortar stores such as Walmart, Kmart, and Best Buy has been shrinking. What is the PRIMARY cause of this trend? Select one: a. Privacy, security and ethical concerns b. Shifting demand patterns c. Audience and media fragmentation. d. Unclear legal jurisidiction e. Power shift to consumers

Shifting demand patterns

What type of planning deals with the corporate mission, mix of strategic business units, and resource acquisition and assignments at the corporate level? Select one: a. market planning b. strategic planning c. tactical planning d. local planning e. mid-level planning

Strategic Planning

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? Select one: a. Specific data and information take longer to find. b. All competitors now have access to the same data and information. c. Data and information are now more relevant to the question at hand. d. There is now no such thing as secrecy in strategic planning. e. The analyst is more likely to suffer from severe information overload

The analyst is more likely to suffer from severe information overload

Which of the following is NOT a major characteristic of relationship marketing? Select one: a. Customer contacts between seller and buyer occur frequently. b. The marketing focus stresses customer retention. c. Customer service is high priority. d. The goal of relationship marketing is to make the sale. e. It creates value in the buyer-seller relationship

The goal of relationship marketing is to make the sale

To successfully utilize SWOT analysis as a catalyst for strategic planning, the marketing manager must focus on several important issues. Which of the following IS NOT one of these issues? Select one: a. The manager must find ways to connect the firm's strengths to its opportunities. b. The manager must attempt to minimize the firm's limitations. c. The manager must look beyond the firm's current product offerings. d. The manager must find ways to transform key threats into strengths. e. The manager must strive to convert weaknesses into strengths.

The manager must find ways to transform key threats into strengths.

What is the purpose of a marketing plan?

The marketing plan provides a detailed formulation of the actions necessary to carry out the marketing program

With respect to developing a marketing plan, what does it mean for a marketing plan outline to be flexible? Select one: a. The outline should have the ability to be modified to fit the situation. b. The outline should be consistent across firms in the same industry. c. The outline should have some connection to other functional area plans. d. The outline should flow in a logical manner. e. The outline should be sufficient to ensure that information is not omitted

The outline should have the ability to be modified to fit the situation

Commoditization

The result of mature markets where goods and services lack any real means of differentiation

What is the main purpose of the Sarbanes-Oxley Act of 2002? Select one: a. To ensure that CEOs are adequately compensated for the risks they face in terms of corporate governance. b. To amend NAFTA to be more favorable to U.S. interests. c. To increase the accuracy and reliability of corporate disclosures of financial information. d. To limit the ability of the media to obtain confidential corporate information. e. To limit the ability of drug companies to engage in direct-to-consumer advertising

To increase the accuracy and reliability of corporate disclosures of financial information.

According to the text, how has the focus of innovation changed for most companies? Select one: a. Today, innovation is focused on quality control b. Today, innovation is always focused on technology c. Today, innovation is focused on creating new markets with unmet needs d. Today, innovation is focused on operational efficiency e. Today, innovation is focused on cost-cutting

Today, innovation is focused on creating new markets with unmet needs

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? Select one: a. Brand competitor b. Generic competitor c. Market competitor d. Product competitor e. Total budget competitor

Total budget competitor

When creating a corporate vision statement, organizations are attempting to answer which of the following questions? Select one: a. What is our operating philosophy? b. What are our competitive advantages? c. Who are our customers? d. What business are we in? e. What do we want to become?

What do we want to become?

competitive intelligence

analyzing competing businesses. Involves analyzing the capabilities, vulnerabilities, and intentions of competing businesses

environmental scanning

analyzing the external environment. 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

Goals and objectives: Select one: a. are related concepts as goals must be translated into functional objectives b. are terms that can correctly be used interchangeably to describe specific qualitative measurements of outcomes c. are created independent of the corporate mission d. should remain constant through multiple rounds of strategic planning and many years e. form the means by which corporate resources are used and integrated

are related concepts as goals must be translated into functional objectives

What (5W Model)

assesses how customers consume and dispose of the firm's products

Value curves should clearly depict the firm's strategic focus and: Select one: a. core competencies. b. convert weaknesses into strengths. c. consistent, comprehensive and attainable. d. be distinctly different from competitors. e. indicate a time frame for completion.

be distinctly different from competitors.

Metamarket

cluster of closely related goods and services that center around a specific consumption activity

situation analysis

collecting and interpreting internal, competitive, and environmental information

Nielsen's Prizm segmentation system is an example of data and information that are available from a ____________ source. Select one: a. commercial b. focus group c. internal d. government e. periodical

commercial

The well-known furniture company IKEA's ability to offer a superior, yet affordable product is best described as their: Select one: a. balanced scorecard b. social mission c. competitive advantage d. evaluation and control e. SBU

competitive advantage

The collection of strategic activities aimed at marketing an organization, its issues, and its ideals to potential stakeholders is referred to as __________. It typically involves marketing activities that are not directed to the end users of a firm's products. Select one: a. corporate affairs b. external affairs c. societal relations d. public relations e. stakeholder management

corporate affairs

Hotel "X" personnel greet each guest by name. Every employee from maids to management is trained to answer questions or assist guests, even if it means putting aside their normal job responsibilities. Hotel "X" empowers front-desk personnel to spend or credit up to $ 500 to solve guest problems. Hotel "X" is clearly utilizing the ___________________ competitive advantage strategy. Select one: a. product leadership b. customer intimacy c. promotional d. organizational e. operational excellence

customer intimacy

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? Select one: a. wholesalers b. manufacturers c. customers d. retailers e. service providers

customers

Possession Utility

deals with easy transfer of ownership or title

The growth of the Internet has changed today's economy in many ways. Which of the following is NOT one of these changes? Select one: a. audience and media fragmentation b. privacy and security concerns c. decrease in product selection d. lower prices for most products e. shifting demand patterns

decrease in product selection

In many buying situations, customers will buy one product because it complements another product. In these cases of __________ demand, the demand of one product depends on the demand of another product. Select one: a. conjoined b. dependent c. derived d. linked

derived

One of the most difficult parts in creating a marketing plan is to: Select one: a. develop a clear and comprehensive situation analysis. b. to identify how marketing activities will be performed c. develop a strategic focus d. determine the appropriate goals and objectives. e. develop a well-written executive summary

develop a clear and comprehensive situation analysis.

An organization plans to increase its market share from 10% to 20% within the next year. This is an example of a Select one: a. qualitative objective b. procedural objective c. continuous objective d. quantitative goal e. discontinuous objective

discontinuous objective

Marketspace

electronic marketplaces unbound by time or space. i.e. automotive, home ownership and parenting

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

evaluation and control

Assessing the current and potential impact of technological trends occurs during the __________________ stage of the planning process. Select one: a. competitive analysis b. external analysis c. strategic focus d. corporate affairs formulation e. internal analysis

external analysis

What is the primary theme of the Balanced Performance Scorecard approach to strategic planning? Select one: a. competitive information should drive the marketing plan b. real-time customer satisfaction metrics are needed to achieve marketing goals and objectives c. internal performance metrics are more important than financial performance d. financial performance is only one of four key dimensions that should drive marketing planning e. organizational learning and growth are the keys to strategic planning

financial performance is only one of four key dimensions that should drive marketing planning

tactical planning

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

In general, a customer's decision to purchase one product or group of products over another is primarily a function of: Select one: a. the product's price. b. the convenience of acquiring the product or group of products. c. how well that choice will fulfill that person's needs and satisfy his or her wants. d. the product's features relative to competing products. e. the availability of the product or group of products.

how well that choice will fulfill that person's needs and satisfy his or her wants

Although internal data sources have a number of advantages, one of their biggest problems is: Select one: a. internal data are often not relevant to the marketing issue at hand. b. internal data are often in a form that is not readily accessible. c. internal data are typically biased. d. there are rarely enough internal data. e. internal data are expensive to collect

internal data are often in a form that is not readily accessible.

When a firm analyzes its objectives and performance, availability of resources, structural characteristics, and organizational culture, the firm is most likely examining its: Select one: a. mission statement. b. external environment. c. strategic environment. d. competitive strategy. e. internal environment

internal environment

Product positioning

involves establishing a mental image, or position, of the product offering relative to competing offerings in the minds of target buyers

Aggressive

many internal strengths and external opportunities

Diversification

many internal strengths and external threats

Turnaround

many internal weaknesses and external opportunities

Defensive

many internal weaknesses and external threats

Edmunds.com provides a collection of online services and information pertaining to the automotive market. Edmunds offers reviews, free pricing reports, discussion boards, and links to a variety of car manufacturers, dealers, insurance companies, and finance companies. What role does Edmunds.com play in today's economy? Select one: a. distributor b. marketspace c. metamarket d. metamediary e. electronic broker

metamediary

Between now and 2050, __________ will account for a full 90 percent of the growth in the total U.S. population. Select one: a. increasing life spans b. increasing birth rates c. minority population growth d. immigration from Canada e. declining death rates

minority population growth

In the context of competitive advantage, common sources of ________________________ include abundant financial resources, modern plant and equipment, effective competitor and customer intelligence systems. Select one: a. legal advantages b. relational advantages c. organizational advantages d. human resource advantages e. product advantages

organizational advantages

Issues such as marketing's position and authority in a firm's hierarchy, the customer orientation of the firm, and the emphasis on short- or long-term planning are examples of which component of the internal environment? Select one: a. marketing objectives b. marketing strategy c. organizational structure d. marketing infrastructure e. resource availability

organizational structure

Strategic planning

outlines the organization's game plan for success

Home Depot offers services such as financing and home delivery to its customers. What type of utility is Home Depot trying to increase? Select one: a. place utility b. possession utility c. time utility d. psychological utility e. form utility

possession utility

Microsoft is interested in customers' perceptions of Windows 10, its new PC operating system. Since the research goal is rather specific, Microsoft should conduct its own __________ research by asking customers to complete an online questionnaire. Select one: a. qualitative b. primary c. secondary d. experimental e. observation

primary

Form Utility

product contains distinguishing attributes

Time Utility

product is available when customer wants it

Place utility

product is available where customers want it

Many firms attempt to distinguish or differentiate their product offerings through the use of __________ strategies. This involves establishing a mental image of the product offering relative to competing offerings in the minds of target buyers. Select one: a. segmentation b. pricing c. perceptual marketing d. image marketing e. product positioning

product positioning

Psychological Utility

product provides positive experiential attributes that customers find satisfying

Marketing Plan

provides the outline for how the organization will combine product, pricing, distribution, and promotion decisions to create an offering that customers will find attractive. Also addresses the implementation, control, and refinement of these decisions

When (5W Model)

refers to any situational influences that may cause customer purchasing activity to vary over time

In today's business environment, firms that truly focus on customers instill a corporate culture that places customers and other stakeholders at the top of the organizational hierarchy. When this occurs, the firm shifts its focus from transactions to __________, and from __________ to collaboration. Select one: a. value; cooperation b. relationships; competition c. information; rivalry d. long-range planning; contracts e. market share; competition

relationships; competition

Strengths are typically based on the existence and nature of the __________ possessed by the firm. Weaknesses stem from a lack of these important factors. Select one: a. patents and capital b. products and customers c. customers and partnerships d. customers and resources e. resources and relationships

resources and relationships

Whether at the corporate, business-unit, or functional level, the planning process always begins with an indepth: Select one: a. situation analysis b. statement of goals and objectives. c. statement of the organization's competitive advantages d. assessment of the organization's resources e. strategy for achieving growth

situation analysis

The overall concept or model that guides the firm as it weaves various marketing elements together into a coherent strategy is called its: Select one: a. strategic posture. b. marketing thrust. c. marketing strategy d. strategic focus. e. operational focus.

strategic focus

As a tool of Blue Ocean Strategy, the strategy canvas provides a way to visualize the firm's strategy relative to other firms in the industry. The central portion of the strategy canvas is the __________, or the graphic representation of the firm's relative performance across its industry's factors Select one: a. value curve b. action diagram c. strategy line d. divergence curve e. strategic focus

value curve

years. The major changes in the definition included a shift from delivering the 4 Ps (product, price, place, promotion) to delivering __________ and a shift from creating exchanges to creating __________. Select one: a. value; customer relationships b. value; satisfaction c. quality; value d. quality; transactions e. satisfaction; customer relationships

value; customer relationship

In terms of SWOT analysis, when does a strength become a capability of the firm? Select one: a. when the strength cannot be copied by competitors b. when the strength can be connected to a second strength c. when the strength can be supported by sufficient resources d. when the strength can be tied to satisfying a customer need e. when the strength stands alone without any corresponding weaknesses

when the strength can be tied to satisfying a customer need

Sears at one time lost sight of its mission and jumped into markets such as real estate and financial services that did not fit its strengths or core operations. This most likely occurred because Sears lacked a mission statement with the appropriate: Select one: a. stability b. strategic fit c. profitability d. focus e. width

width