Chapter 02 Strategic Planning in Contemporary Marketing

Which of the following are true of strategic business units (SBUs)? (Select two)

Each SBU has its own resources and objectives. An SBU develops its own marketing plan.

You work for a company that manufactures and distributes home design products directly to customers. Annually, the company executives facilitate meetings with middle and supervisory-level management to ensure that all staff are on the same page. This year, you have proposed that to ensure that all company employees understand the goals of the company, each person has to go through a list of tasks and decide whether top management, middle management, or supervisory-level management is responsible for that task. Which of the following tasks would most likely be the responsibility of middle management?

Develop a tool to help track customer complaints about lost and late shipments

You have been hired to advise a food company that is considering whether it should sell one, both, or neither of its two breakfast brands. Here are the facts you are given: Brand A commands a market-leading share in the oatmeal category. A has a large and stable base of loyal customers. However, this category is unlikely to grow in the foreseeable future, as oatmeal preparation takes time and consumers are increasingly focused on convenience. Brand B is a market leader in the small but rapidly expanding category of grab-and-go breakfast wraps. However, it won't be easy to stay ahead of the competition; unless B is sold, the company will need to invest heavily in research and development of healthy fillings and innovative packaging. Using the BCG Matrix, what is your best advice?

Do not sell either Brand A or Brand B. The company should remain in both of these businesses.

______ occurs when managers develop specific programs to meet goals in their area of responsibility.

Operational planning

From the following list of marketing questions asked by a marketer of chip snacks, which is related to the Environmental & SWOT Analysis element of the marketing plan?

What are the most popular chip snacks in my area, and how are tastes changing?

When conducting a SWOT analysis, managers can identify opportunities and threats by _______.

analyzing the external marketing environment

The Marketing Objectives section of the marketing plan provides critical guidance for the organization's marketing activities. However, this section cannot stand alone; marketers also need the insights contributed by other sections. Which statement describes information that the Marketing Objectives section of the marketing plan leaves out?

Competitors to watch

You work for a music CD distributor that specializes in rare albums that many other distributors do not carry. Because of mp3s, mp4s, and online music streaming and downloading sites, sales have decreased significantly. You realize that the Internet can either help your company or further hinder its mission and goals. You use Porter's five forces as a model to assess the impact of the Internet on your business; you look at potential new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products, and rivalry among competitors. Choose the impact of the Internet likely to make your business more challenging.

Consumers can now find rare music online.

______ generate enough money to fund other business units with high growth potential.

Cash cows

A _______is a written document that acts as a guidebook of marketing activities for the marketing manager.

marketing plan

If competitive rivalry is high, __________

profitability will be reduced

The Polaroid Cube is an HD action video camera. It can record up to 90 minutes of video and magnetically mounts to helmets, bike handlebars, and other surfaces. Currently, GoPro dominates this fast-growing market, while the Cube's market share is relatively low. Given this information, the Polaroid Cube would be classified as a _______.

question mark

The three fitness apps that Under Armour acquired are industry-leading apps, with large user bases, in the fast-growing market of fitness tracking software and services. These apps would be classified as _______in the BCG portfolio matrix.

stars

Strategic planning is usually conducted by _______.

top management

A _________ is __________ to the company and is a limitation that puts the company at a disadvantage.

weakness, internal

Most successful firms have a clearly defined, well-written marketing plan that specifies the marketing activities to be performed to implement, manage, and evaluate its marketing strategies. The typical marketing plan has multiple components that include information about the company's marketing game plan. The following passages describe some of the components of the marketing plan and key information elements. Fill in the blanks with the word(s) from the drop-down list that best complete(s) the passages. __________ assesses strengths and weaknesses within the organization and external opportunities and threats. The __________ component specifies what the company wants to accomplish with its marketing activities. The performance evaluation component establishes the __________ and standards for evaluating the success of the company's marketing strategies. The marketing strategies component spells out how the company plans to achieve its marketing __________

SWOT analysis, marketing objectives, quantifiable outcome measures, objectives

Shutterfly is an Internet-based image publishing service based in Redwood City, California, and is mostly known for its photo book line. Like other business firms, Shutterfly conducts a SWOT analysis of its internal strengths and weaknesses, and external opportunities and threats. Choose the SWOT analysis element that represents a Shutterfly strength.

Shutterfly constantly upgrades its digital technology and apps.

During their planning process, the staff at a well-known resort decide to try something they have never tried before. The director of marketing and the operations manager decide that it would be vital to have input from as many people and as many diverse perspectives in the planning process as possible. Thus, the company invites a mixture of loyal customers, community members, suppliers, and employees from different departments, and other partners to a town hall to discuss the company's next steps. Moreover, those who could not physically attend the meeting are asked to participate via a discussion set up through the company's social media platforms, including Twitter and Facebook, and via teleconferencing. During the meeting the facilitators discussed previous goals and how those goals could be achieved. Some of the methods and approaches they had been using in the past to reach their targets did not work; consequently, they needed to outline new milestones to support the company's vision for the next 10 years. According to the scenario, which of the following is true?

The scenario outlines a tactical planning process because the meeting facilitators are focused on developing objectives that support the company's 10-year vision.

You would like to invest in one of the profitable business units of a multinational corporation. In a meeting with management, you explain that you'll only consider a unit categorized, according to the BCG matrix, as a question mark. Here are your choices: Unit A has revenue of $27 billion and a profit of $6 billion. While its product is based on a new technology that is rapidly increasing in sales, the product currently lags the market share of competitors. Unit B has revenue of $30 billion and a profit of $7 billion. Its market share is strong and growing. While its product is based on an outdated technology, the product has a loyal following for now. Which of the corporation's two profitable units meets your criterion?

Unit A

You have been working as an intern for your father's construction company and have been asked to sit in on the company re-visioning meeting. Because this is your first time in a marketing planning meeting, you are somewhat confused about the jargon being used. One of the employees explains to you the difference between strategic planning and tactical planning, and asks you to provide examples so she can make sure you understand the concepts. Which of the following is an example of a strategic plan?

Within the next 10 years, we want to open 20 locations.

Key performance indicators _______.

are quantifiable outcome measures to provide objective data

In 2013, Polaroid announced they were opening brick-and-mortar stores called Fotobar. The stores offered printing services that allowed customers to print pictures from their phones or photo-sharing apps as standard prints, on canvas, or on metal. By the end of 2013, Fotobar hoped to have ten retail stores and continue to expand in 2014. But market growth for these services never materialized. Today, there are just three Fotobar locations. On the BCG portfolio matrix, Fotobar would likely be considered a _______.

dog

What is the first step that your team should take to start your student organization?

I agree with Jarrod. My team should start by determining the focus of our student organization.

What do you think is the next step that your team should take?

I agree with Tenisha and Jarrod. My team should decide how we will promote the student organization.

According to Porter's Five Forces, which of the following is likely to occur when new companies can enter the industry easily?

Established firms may lower prices to ward off competition

have a high market share of a high-growth market.

Stars

A summer intern has been assigned to help you draft your firm's marketing plan. You are pleased, until you overhear them tell a coworker: "I'd like to work on either strategies or tactics, since there's no real difference between them." When you meet with the intern, you correct their mistake. Which of the following statements do you make?

Strategies are longer-term courses of action, while tactics are shorter-term actions.

__________ performed by __________ , defines how activities specified in the strategic plan will be implemented.

Tactical planning, middle management

Your investment banker has presented you with the following list of business characteristics of a small company your company is considering acquiring: Market leadership Large inventories Lack of management depth Cost advantages Management turnover Excess manufacturing capacity relative to market Based on this list of characteristics, which of the following statements is true?

The list contains more weaknesses than strengths.

Your best friend is a contestant on the game show Who Wants to Be a Millionaire? They just exercised one of their "lifelines" by calling you for help with a marketing-related question. Your friend reads the following question to you: Which one of the following statements about Porter's five forces model is true?

The model does not include government power.

Milagros works for a major manufacturer and distributor of Caribbean foods and products as a marketing strategist. Milagros and her team are brainstorming some ideas that can help the company stay competitive as it expands. Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. As the company plans to expand globally, Milagros and her team must engage in __________ , the process through which they decide their price points, which products they are going to carry at their flagship stores around the world, and the company's promotional campaigns. As Milagros's team outlines their goals or __________ , they also have to map out the long-term __________ that will help them reach their targets. Milagros notes that the CEO of the company has a seven-year vision and __________ for the company, so all of their activities must be in alignment with those proposals, and they must make sure that they have enough funds and resources to implement their ideas. One of the other employees reminds the team that __________ also are critical to help the company build the foundation in the immediate future to reach longer-term goals.

marketing planning, marketing objectives, marketing strategies, strategic plans, marketing tactics and implementation

In a SWOT analysis, the prospect of entering new markets and launching new products would be listed under _______.

opportunities

China recently announced interest in developing its domestic sports industry, which is estimated to be a $1 billion opportunity for sports apparel, shoes, and fitness devices. When UA conducts a SWOT analysis, this would be categorized as a(n) _______.

opportunity

Given the popularity of Netflix's Stranger Things television show, Polaroid created a OneStep 2 Stranger Things Edition camera. Marketers for Polaroid likely viewed this partnership as a(n) _______ on a SWOT analysis.

opportunity

You work for Emerita's Pizzeria and have been given the task of looking at company goals and deciding how the goals will be accomplished. You understand that planning is a complex process, but you are up for the challenge. Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. Nicolai, the owner of Emerita's Pizzeria, informs you that during the __________ process, company stakeholders asked themselves the following question: Where do we want the company to be in five years? The __________ staff decided to focus on recruiting new clientele, increasing profitability and productivity, and finding ways to give back to the community. To achieve these goals, all of the company's staff, stakeholders, and customers needed to be on board. You realize that as a __________ employee on the frontlines, your face-to-face interaction with customers is going to be especially important because you are a representative of the company. You also realize that during __________ , it will be critical to figure out ways to monitor customer satisfaction on a day-to-day basis. Perhaps, it would be useful to use social marketing as a tool to engage customers. Nicolai informs you that he will be meeting with __________ staff such as shift supervisors and team leaders to decide on the best ways to support larger company goals. One of the items Nicolai hopes that his staff will focus on during __________ is coming up with new tools to expedite the pizza-making process and procedures that cut costs.

strategic planning, top-level, low-level, operational planning, mid-level, tactical planning

Because of its app acquisitions, UA has direct access to registered users of MapMyFitness, MyFitnessPal, and Endomondo. This means they can recommend products to this user base and utilize these apps as a new sales channel. When UA conducts a SWOT analysis, this would be categorized as a(n) _______.

strength

You work for a not-for-profit organization that is committed to sustainable development and trains urban youth to develop eco-friendly businesses. As you study the organization's business plan and reports, you attempt to categorize the tasks and responsibilities you see presented. The following passages classify various tasks based on the categories of operational planning, tactical planning, and strategic planning. Fill in the blanks with the categories from the drop-down list that best complete the passages; each category may be used more than once. 1. Applying for a sustainable development grant aimed at creating community gardens involves __________ 2. Drafting programmatic reports on last year's Urban Youth Coalition Conference involves __________ 3. Hiring a new chief executive officer (CEO) to usher in an era of microfinance programs for entrepreneurial youth involves neither __________ nor tactical planning. 4. Deciding whether the organization will merge with Grassroots, Inc., a multinational company involves neither operational planning nor _________ 5. Scheduling staff to attend the morning plenary on the effects of globalization on the environment and climate change involves __________

tactical planning, operational planning, operational planning, tactical planning, operational planning

According to Porter's Five Forces, ______ occurs when a product or service can be replaced with goods or services from a competing firm or industry.

the threat of substitutes

Macy's, a large department store chain and one of Under Armour's (UA) key retail partners, is closing a number of stores across the United States and will now operate roughly 730 locations, versus 850 in 2009. When UA conducts a SWOT analysis, this would be categorized as a(n) _______.

threat

You are conducting an analysis of competitive forces facing the pharmaceutical company you work for. You're especially struck by the fact that companies in your industry generally need government patents and approvals from the U.S. Food and Drug Administration before they can legally market many of the most profitable products. These realities primarily influence the competitive force identified in Porter's five forces model as __________ , which is based on the __________ for entering a market or industry

threat of new competitors, level of difficulty