Bus 312 Ch.2 study plan Q&A

What are the main components of a marketing​ plan? A. ​Product, price,​ place, and promotion B. A mission​ statement, objectives, and a business portfolio C. A marketing budget and a marketing dashboard D. An executive​ summary, situation​ analysis, objectives,​ strategy, action​ programs, budgets, and controls E. ​Segmentation, targeting, and positioning

Correct. A typical marketing plan starts with an executive​ summary, which is followed by a situation analysis.​ Next, major objectives are​ stated, followed by a marketing strategy to achieve them. Next is an action program to implement the​ strategy, a supporting marketing​ budget, and the controls that will be used to monitor progress.

​__________ involves evaluating each market segments attractiveness and selecting one or more segments to enter. A. Market positioning B. Market targeting C. Marketing mix D. Market segmentation E. Market differentiation

Correct. After a company has defined its market​ segments, it can enter one or many of these segments. Market targeting involves evaluating each market segment separately In order to select the ones that are attractive.

​___________ is at the core of any marketing strategy. A. ​Segmenting, targeting, and positioning B. The marketing mix C. ​Competitors, suppliers, and publics D. ​Planning, analysis, and implementation E. Customer value and relationships

Correct. At the core of any marketing strategy is creating customer value and profitable customer relationships.

In the strategic planning​ process, the business portfolio is designed after​ ________. A. planning marketing strategies B. the strategic planning process is completed C. planning functional strategies D. setting company objectives and goals E. defining the company mission

Correct. Designing the business portfolio is the third step in the strategic planning process and occurs after setting company objectives and goals. Next Question

In​ 2005, Proctor and Gamble purchased​ Gillette, makers of shaving​ products, and added these to the existing​ P&G portfolio. Which growth strategy did​ P&G use in acquiring​ Gillette? A. Market penetration B. Diversification Your answer is correct.C. Product development D. Market development E. Divestment

Correct. Diversification is a growth strategy in which a company starts or buys a business beyond its current products and markets. This is what​ P&G did when it acquired Gillette.

Each department can be thought of as a link in the​ company's __________. A. delivery network B. market segmentation C. value chain D. marketing management E. marketing mix

Correct. Each company department can be thought of as a link in the​ company's internal value chain. That​ is, each department carries out​ value-creating activities.

The first step in strategic planning involves​ __________. A. setting objectives and goals B. designing a business portfolio C. developing functional plans D. developing a marketing plan E. defining the​ company's mission

Correct. The first step in strategic planning involves defining the​ company's mission. Forging a sound mission begins with the following​ questions: What is our​ business? Who is the​ customer? What do consumers​ value? What should our business​ be?

The four Ps of the marketing mix are redefined in buyer terms as the four As. What are the four As of the marketing​ mix? A. ​Approaches, added​ incentives, accessibility, awareness B. ​Affordability, accessibility, added​ incentives, awareness C. ​Acceptability, accessibility,​ awareness, advantage D. Added​ incentives, advantage,​ aptitude, alternatives E. ​Acceptability, affordability,​ accessibility, awareness

Correct. The four As are acceptability​ (product), affordability​ (price), accessibility​ (place), and awareness​ (promotion).

The major activity in strategic planning is the analyses of a business​ __________. A. experience B. portfolio C. unit D. goal or objective E. plan

Correct. The major activity in strategic planning is business portfolio​ analysis, whereby management evaluates the products and businesses that make up the company. The company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones. Next Question

One key role marketing plays in a​ company's strategic planning is to​ _________. A. provide a guiding philosophy B. take advantage of opportunities identified by the strategic planners C. work to add customer value so other departments do not have to be concerned with it D. focus on the customer while other departments formulate strategies E. allow other departments to not be concerned with marketing

Correct. The marketing concept is a guiding philosophy that suggests that company strategy should revolve around creating customer value and building profitable customer relationships.

The most common form of marketing organization is​ __________. A. functional organization B. geographic organization C. product organization D. product management organization E. customer management organization

Correct. The most common form of marketing organization is the functional​ organization, under which different marketing activities are headed by a functional specialistlong dash—a sales​ manager, an advertising​ manager, a marketing research​ manager, a customer service​ manager, or a new product manager.

The primary purpose of a strategic plan is to​ ________________. A. expand into new markets B. build profitable customer relationships C. establish market share objectives D. develop and maintain a strategic fit between a​ company's goals and capabilities and its changing marketing opportunities E. design a business portfolio

Correct. The primary purpose of a strategic plan is to develop and maintain a strategic fit between a​ company's goals and capabilities and its changing marketing opportunities.

Assume the economy is in a recession.​ Mario's custom jewelry is expensive and sales are down. In a situation analysis​ (SWOT), the state of the economy is​ a(n)______ and​ Mario's pricing structure is​ a(n) ________. A. ​threat; strength B. ​weakness; threat C. ​threat; weakness D. ​weakness; weakness E. ​opportunity; weakness

Correct. Threats are unfavorable external conditions that present challenges to performance. Weaknesses are internal limitations that may interfere with the​ company's performance.​ Mario's high prices are a weakness due to the​ recession, which is a threat.

Which of the following is not one of the five marketing management​ functions? A. Control B. Implementation C. Analysis D. Planning E. Customer service

Correct. While it is critical to marketing​ success, customer service is not one of the four marketing management functions.

Marketing can disrupt the internal value chain and cause conflicts to develop because it can potentially​ _______. A. make all departments​ "think consumer" B. gain commitment from the entire company to engage customers C. increase production​ costs, increase​ inventories, cause budget headaches and disrupt production schedules D. coordinate the efforts of different company departments to deliver customer value E. align all functional areas with the goal of increasing customer value

Correct. Increasing customer satisfaction can potentially increase production​ costs, increase inventories and disrupt production schedules which can cause other departments to resist the marketing​ department's efforts.

Nike states that it wants to​ "bring inspiration and innovation to every athlete in the​ world." This is​ Nike's _________. A. ​product-oriented mission statement B. ​market-oriented mission statement C. strategy D. marketing plan E. objective

Correct. Market oriented mission statement states​ Nike's broader purpose in terms of customer needs and wants.

The Dollar Store and Family Dollar profitably focus on buyers with modest means with their market offerings. This is an example of​ _________. A. market segmentation B. marketing control C. positioning D. market targeting E. the marketing mix

Correct. Market targeting is the process of evaluating a market​ segment's attractiveness and choosing one or more segments to enter with a market offering. The Dollar Store and Dollar Tree have targeted buyers with modest means as an attractive segment to serve.

Which of the following is a true statement regarding managing and measuring marketing return on investment​ (ROI)? A. ROI is being used less today because marketing managers are not as accountable for performance as they were in the past. B. One reason ROI is used is because it is easy to measure. C. Marketers increasingly use​ customer-centered measures of ROI that include brand​ awareness, sales, and market share. D. Marketers define ROI as a quantitative measure derived by dividing returns​ (that is,​ profits) by the costs of the investments. E. Marketers are increasingly using measures such as customer acquisition and​ retention, customer​ engagement, and customer equity as measures of ROI.

Correct. Marketers are increasingly using​ customer-centered measures of ROI which include acquisition and​ retention, engagement, lifetime value and equity.

Which one of the following statements about​ marketing's role in strategic planning is​ correct? A. Marketing provides inputs to strategic planners. B. Marketing does not design strategies. C. Marketing oversees the planning of each business unit. D. Marketing is unrelated to a​ company's guiding philosophy. E. Marketing does not contribute to profitability.

Correct. Marketing does provide inputs to strategic planners to help identify attractive market opportunities.

​__________ plays a key role in the​ company's strategic planning. A. Human Resources B. Operations C. Finance D. Marketing E. Accounting

Correct. Marketing plays a key role in the​ company's strategic planning by providing a marketing concept philosophy and inputs regarding attractive market opportunities.

​ company's mission statement should be focused on​ __________. A. investment B. customers C. sales D. profit E. objectives and goals

Correct. Mission statements should be market oriented and defined in terms of satisfying basic customer needs.

In SWOT​ analyses, the favourable factors or trends in the external environment that the company may be able to exploit to its advantage are referred to as​ __________. A. threats B. strengths C. weaknesses D. opportunities E. targets

Correct. Opportunities are an important component of SWOT analyses. After analyzing its strength and​ weaknesses, the company should analyze its markets and marketing environment to find attractive opportunities for the business.

Which of the following steps in the strategic planning process is done at the business unit​ level? A. Planning marketing strategies B. Setting company goals C. Designing the business portfolio D. Setting company objectives E. Defining the company mission

Correct. Planning marketing and other functional strategies is done at the business​ unit, product and market level.

Ben​ & Jerry's frequently expand its line of ice cream with new flavors. Which market growth strategy is Ben​ & Jerry's​ using? A. Harvesting B. Market development C. Diversification D. Market penetration E. Product development

Correct. Product development involves offering new or modified products to an existing market.

​__________ refers to activities that communicate the merits of the product and persuade target customers to buy it. A. Segmentation B. Differentiation C. Promotion D. Targeting E. Positioning

Correct. Promotion is a component of the marketing mix that refers to activities such as advertisement that highlight the merits of the product being sold and persuade the customers to buy it.

According to the BCG​ matrix, ______ are​ high-share, high-growth products. When the market growth​ slows, these products become​ ________. A. cash​ cows; stars B. question​ marks; stars C. cash​ cows; dogs D. ​stars; cash cows E. question​ marks; cash cows

Correct. Stars are​ high-share, high-growth products. Cash cows are​ high-share, low-growth products. Next Question

What is one primary purpose of a​ product's position? A. To identify groups of consumers with similar needs B. To gain market share C. To get eye level​ in-store shelf space D. Differentiation E. To choose which segments to serve with a market offering

Correct. Successful positioning differentiates a market offering from those of competitors and communicates how it delivers value better than those competitors.

What are the two measures the BCG matrix uses to classify SBUs and products in the​ portfolio? A. Relative market share and number of products the company produces B. Market growth rate and degree of competitiveness C. Relative market share and return on investment​ (ROI) D. Relative market share and market growth rate E. Market growth rate and return on investment​ (ROI)

Correct. The BCG​ growth-share matrix uses relative market share and market growth rate to classify SBUs and products.

One way for companies to improve the performance of the​ ______ is by partnering with​ suppliers, distributors, and customers. A. strategic plan B. value delivery network C. marketing system D. internal value chain E. competitive delivery network

Correct. The external value delivery network consists of partnerships with​ suppliers, distributors, and customers.