MARKETING CH 2 : STRATEGIC PLANNING

A premise of the Boston Consulting Group model states which of the following?

MANAGEMENT MUST FIND BALANCE AMONG SBU

Which of the following does a business exhibit when it describes itself in terms of goods and services rather than in terms of the benefits customers seek?

MARKETING MYOPIA

The total revenue of a firm is calculated by multiplying the number of units sold by the ___________ of each unit.

PRICE

Which of the following is an element of a marketing mix?

PRICING STRATEGIES

When an SBU has become a _____________, it is essential to either invest in it heavily to gain better market share, acquire competitors to get the necessary market share, reposition its products, or drop it.

PROBLEM CHILD

Paul Green is one of the leading women's shoe companies in Germany. It manufactures leather shoes that are similar to those produced by luxury European brands. The management of the company has decided to adopt a product/service differentiation competitive strategy. In this scenario, what would Paul Green be likely to do?

PRODUCE SHOES THAT HAVE SPECIALIZED FEATURES

Keebler sells cookies and nutrition bars. The marketers at Keebler are trying to develop new and attractive packaging designs for its cookies. In this scenario, Keebler is working on its _____.

PRODUCT STRATEGY

Which of the following strategies in the marketing mix aims at bringing about mutually satisfying exchanges with target markets by informing, educating, persuading, and reminding them of the benefits of an organization or a product?

PROMOTION STRATEGIES

The price component of a marketing mix is:

A COMPETITIVE WEAPON FOR COMPANIES

According to Ansoff's strategic opportunity matrix, which of the following factors is associated with market development?

ADD NEW USES TO CURRENT PRODUCTS

Within the context of the marketing plan, implementation involves:

ALLOCATING RESOURCES

Which of the following is correct about a sustainable competitive advantage?

CANNOT BE COPIED BY COMPETITION

In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share is called a:

CASH COW

Which of the following processes provides the mechanisms for comparing 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?

CONTROL

Which of the following statements is true about a marketing plan?

DEFINES BUSINESS MISSION & OBJECTIVES

Samsung, an electronics and appliance manufacturer, decides to launch its new line of smartphones on the company's official website to resolve logistics issues that the company has identified. With this modification, its customers can now buy the smartphones directly from Samsung even if they are not available in retail locations near potential consumers. In this case, Samsung focuses on the _____ element of the marketing mix.

DISTRIBUTION

A marketing mix typically involves:

DISTRIBUTION STRATEGIES

In the portfolio matrix, a business unit that has low growth potential and a small market share is called a:

DOG

Which of the following is correct about the product development strategy of Ansoff's strategic opportunity matrix?

ENTAILS CREATION OF NEW PRODUCTS FOR PRESENT MARKET

The collection and interpretation of data about forces, events, and relationships in the external environment that may affect the organization's future or its marketing plan implementation is called:

ENVIRONMENTAL SCANNING

Which of the following terms states that costs decline at a predictable rate as experience with a product increases?

EXPERIENCE CURVE

A business' mission does not affect its long-run resource allocation, profitability, or survival.

FALSE

A diversification strategy is free of risk when a firm is entering unfamiliar markets.

FALSE

A firm's assets are functions—customer service and promotions—that the firm performs better than its competitors.

FALSE

Managers do not need to quantitatively measure whether or not an objective has been met.

FALSE

Market penetration refers to attracting new customers to existing products. Ideally, new uses for old products stimulate additional sales among existing customers while also bringing in new buyers.

FALSE

Strategic planning should be an annual exercise in which managers quickly review the previous plan, retain the majority of previous strategies, and make only a few changes going forward so they can more easily track the success of new marketing tactics.

FALSE

When examining an organization's internal strengths and weaknesses during SWOT analysis, the marketing manager may not focus on organizational resources such as production costs, marketing skills, financial resources, company or brand image, employee capabilities, or available technology.

FALSE

Wholly Guacamole is a strategic business unit or Hormel Foods that shows low growth but has a dominant market share. Because of its market share, it should receive additional financing despite its low growth.

FALSE

In the case of SBUs that are cash cows, problem children, or dogs, the basic goal of _______________ is to increase short-term cash return without increased concern for long-run impact.

HARVESTING

The basic goal of ________ is to increase the short-term cash return without too much concern for the long-run impact.

HARVESTING

Which of the following is the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives?

IMPLEMENTATION

Quarter Sawn Oak makes and sells original handicraft oak furniture and cabinet products. The management of the company has been successfully using a niche strategy for years. In this case, which of the following is the most likely to be true of Quarter Sawn Oak's business?

SERVES ONLY A LIMITED GEOGRAPHIC MARKET

A company's assets include patents, copyrights, and technology that are superior to those of the competition.

TRUE

A competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition.

TRUE

According to the Boston Consulting Group model, the best strategy options in dealing with problem children are to invest heavily to gain better market share, acquire competitors to get the necessary market share, or drop the SBU.

TRUE

An operating decision, such as changing package design, is unlikely to have a great impact on the long-run profitability of a company.

TRUE

For a star, the best marketing tactic is to protect existing market share by reinvesting earnings in product improvement, better distribution, more promotion, and production efficiency.

TRUE

The creation and implementation of a marketing plan allows the organization to achieve marketing objectives and succeed.

TRUE

The term marketing mix refers to a unique blend of product, place (distribution), promotion, and pricing strategies (often referred to as the four Ps) designed to produce mutually satisfying exchanges with a target market.

TRUE