Chapter 2 - Strategic Planning for Competitive Advantage

A marketing objective should be (1)___________, (2)____________, (3)____________, and (4)____________.

(1) realistic (2) measurable (3) time specific (4) compared to a benchmark

A (1)_______ is (2)_________ to the company and is a limitation that puts the company at a disadvantage.

(1) weakness (2) internal

A _______ is an advantage that cannot be copied by the competition in the near future. a. sustainable competitive advantage b. niche competitive advantage c. cost competitive advantage d. product/service differentiation competitive advantage

A

A company that focuses on a unique aspect of its product is likely using a _______. a. product/service differentiation competitive advantage b. sustainable competitive advantage c. cost competitive advantage d. nice competitive advantage

A

Which of the following is NOT a requirement of effective strategic planning? a. Resource allocation b. Creativity c. Continual attention d. Management commitment

A

Which of the following are reasons for failing to achieve a marketing objective? (Select four) a. Unrealistic marketing objectives b. Insufficient budget to implement objectives c. Inappropriate marketing strategies in the plan d. Poor implementation e. Changes in the environment after the objective was specified

A, C, D, E

The three general strategies for selecting target markets include which of the following? (Select three) a. Appeal to the entire market with one marketing mix b. Appeal to the entire market with several marketing mixes c. Concentrate on multiple market segments with one marketing mix d. Appeal to multiple market segments using multiple marketing mixes e. Concentrate on one segment with one marketing mix

A, D, E

When conducting a SWOT analysis, managers can identify opportunities and threats by _______. a. classifying limitations that place the company at a disadvantage b. analyzing the external marketing environment c. analyzing the core capabilities of the firm d. looking internally at the company's current product and service offerings Hide Feedback

B

Strategic marketing management addresses which of the following questions? (Select two) a. What promotional activities will the company utilize? b. What is the organization's main activity at a specific time? c. How will the company reach its goals? d. Where will the company sell its product to consumers? e. Who is the company's target market?

B, C

Harvesting is an appropriate strategy for all the following products or SBUs EXCEPT _______, _______, and _______. (Select three) a. stars b. dogs c. cash cows d. problem children

B, C, D

Which of the following are ways that a company choosing a cost competitive advantage can reduce costs? (Select three) a. Focusing on a unique aspect of its product b. Utilizing technology to reduce production costs c. Outsourcing low-skill, labor-intensive tasks d. Reverse engineering competitors' products e. Choosing a niche market for its products

B, C, D

The innovation matrix identifies three levels of change and innovation. They include _______, _______, and _______. (Select three) a. revolutionary innovation b. core innovation c. fundamental innovation d. adjacent innovation e. transformational innovation

B, D, E

A _______ is a written document that acts as a guidebook of marketing activities for the marketing manager. a. mission statement b. SWOT analysis c. marketing plan d. business plan

C

A control device that marketing managers use is a _______. a. periodic evaluation assessment b. strategic planning dashboard c. marketing audit d. post-plan review

C

An organization that chooses a _______ strategy attempts to maintain the product's market share in order to take advantage of the positive cash flow. a. build b. divest c. hold d. harvest

C

Carefully specified objectives should have all of the following characteristics EXCEPT _______. a. to guide marketing strategies and tactics for the organization b. to be consistent with the firm's mission statement c. to have unspecified end dates d. to provide motivation to employees Hide Feedback

C

Key performance indicators _______. a. are not required as the marketing plan is static and rarely updated b. are considered weaknesses in the company's SWOT analysis c. help managers compare outcomes to stated objectives d. guide the creation of the business mission statement

C

Strategic planning is usually conducted by _______. a. middle managers b. employees c. top managers d. first-line managers

C

_______ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines. a. Planning b. Implementation c. Control d. Evaluation

C

A _______ is the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments. a. market segment analysis (MSA) b. target market strategy analysis (TMSA) c. marketing mix (four Ps) d. market opportunity analysis (MOA)

D

Elements of product strategy can include all of the following EXCEPT _______. a. the physical good b. an intangible idea c. package design d. where the product is sold

D

In a SWOT analysis, the prospect of entering new markets and launching new products would be listed under _______. a. strengths b. threats c. weaknesses d. opportunities

D

In the GE model, the appropriate action for areas of the matrix with high attractiveness is _______. a. harvest/divest b. grow/harvest c. cautiously invest d. invest/grow

D

Which of the following is NOT true about strategic business units (SBUs)? a. An SBU has its own competitors, separate from other SBUs. b. Each SBU has plans and goals independent of other SBUs in the organization. c. An SBU has control over its resources. d. Each SBU shares its mission statement with the parent company.

D

_______ is the most flexible of the four Ps because it is the easiest and quickest component to change. a. Promotion b. Product c. Place (distribution) d. Price

D

_______ occurs when a company defines its business in terms of goods and services rather than in terms of the benefits customers seek. a. Marketing orientation b. Planning c. Mission bias d. Marketing myopia

D