MindTap Ch.2 (Exam 4)
Roberts Seafood will convene its annual strategic planning meeting at its world headquarters in Orlando, Florida, in October. The company has sought your advice regarding the sequence of activities that should be followed to be consistent with the recommended process for strategic planning. Which of the following best specifies the activities to be completed in the recommended order?
1: Develop the company's mission and goals; 2: Develop business unit strategies; 3: Complete a SWOT analysis for the company; and 4: Develop functional area goals and objectives.
Which of the following best defines a market opportunity?
A combination of circumstances and timing that permits an organization to take action to reach a particular target market.
The often-used strategic planning tool, which is based on the philosophy that a product's market growth rate and its market share are important considerations in determining marketing strategy is known as
Boston Consulting Group Matrix
The Four Seasons Spa and Salon has developed a list of marketing objectives as part of its strategic planning process. Which of the following is the best marketing objective and follows the guidelines regarding the characteristics marketing objectives should possess?
Increase guest satisfaction from 90% to 95% within six months as measured via an online customer satisfaction survey guests will receive via email one business day following the guest's service.
Which of the following represents a well-stated marketing objective?
Purina Foods seeks to outperform their competition by obtaining a 25% share of the market in dry dog food by the end of the 4th quarter of the business year
The component of the marketing plan that provides an assessment of the organization's strengths, weaknesses, opportunities, and threats is known as:
SWOT analysis
Which of the following best exemplifies the concept of a "strategic window"?
Sledgehammer Games' ability to sign actor Kevin Spacey, known for his role in House of Cards, to play Jonathan Irons, the CEO of a global private military firm in their popular video game, Call of Duty: Advanced Warfare.
Through the process of strategic planning, a firm establishes an organizational mission and goals, corporate strategy, marketing objectives, and a marketing strategy.
True
Rio, a division of D&M Holdings Inc. was the first company to offer an MP3 player in 1998. It dominated the business due to its ability to innovate and enjoyed a competitive advantage since it was the first to offer the new technology and held a patent on the chip sets utilized in MP3 players. With regard to the MP3 player market, Rio possessed:
a first-mover advantage
Which of the following is the best definition of a market?
a group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products
When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of _____.
a marketing objective
Your company is holding its annual five-year strategic planning conference. The purpose of the conference is to solidify the go-forward tactics and strategies to enable the company to compete effectively in its industry. You are managing this conference and the various breakout sessions that will take place. Consistent with the sequence of the traditional strategic planning process, the first breakout session should be ____.
a session where the firm's mission and goals are established or revised
A performance standard is defined as:
an expected level of performance against which actual performance can be compared
Mitch Ford is an avid car fan and would love to own a Lotus Evora—a luxury sports car priced around $90,000. Mitch now drives a Hyundai Genesis that he purchased for under $30,000, which is in his price range. Which characteristic of a "market" is exemplified by this example?
capability to purchase
Rollins Steel Corporation, a leader in industrial supplies, has identified its auto battery unit as having a dominant market share; however, it has low prospects for growth. The unit currently generates more cash for Rollins Steel than is required to maintain its market share. According to the Boston Consulting Group, the auto battery unit would be classified as a _____.
cash cow
The Nintendo handheld family of games known as the 3DS has had a strong market share position and is still popular for many consumers, but its opportunity for growth is hindered by the increased popularity of game applications for smart phones. Which quadrant of the Growth Share Matrix would best describe the Nintendo's 3DS?
cash cow
Scenario 2.2. Growing Grounds is a full-service nursery and landscaping company that offers a wide selection of plant and landscape materials for its customers. The spring, summer, and fall seasons are the best times of the year for Growing Grounds and they have been experimenting with adding new products and services each year. Growing Grounds has an extensive line of trees, which can be planted by the customer or installed by its tree service for a minimal fee. In addition, they offer landscaping services and quite frequently work with home builders to install grass and bedding plants for new home construction projects. Growing Grounds also has a wide selection of bushes, ornamental plants, and seasonal plants such as vegetables. Over the years, Growing Grounds has added more "heirloom" plants to its line of vegetables that are organically grown and contain no genetic modifications. Growing Grounds has noticed that many consumers are concerned about genetic modifications as well as the use of pesticides. Moreover, consumers want to grow their own vegetables and enjoy the opportunity to harvest and eat the food that they have grown in their gardens. In its market, Growing Grounds has a reputation for serving the commercial business-to-business market with landscaping services, which is a stable market and one where they possess a large market share. However, they are hoping to grow its direct-to-consumer business by adding a full line of vegetable plants since home-grown vegetables and home-based gardening is growing in popularity. Refer to Scenario 2.2. According to the BCG matrix, the landscaping services Growing Grounds provides to business-to-business customers would be classified as _________, while the vegetable plants marketed toward household consumers would be classified as __________.
cash cow; question mark
Carriage House Door Company is a closely held family-owned company that sells doors to businesses and consumers. The business-to-business market is designed to serve retail stores with a variety of glass doors, steel security doors and decorative doors while the business-to-consumer business focuses on upmarket designer wood doors and classic garage doors that are distinct from those sold in the big "box" retailers, such as Menards or Home Depot. Carriage House Doors employs approximately 50 individuals who report directly to the company president and owner, Don Mathis. Don runs his company with tight control over his employees and dictates all company policies and decisions. Employees must double-check with Don before they agree to any requests from customers such as changes in pricing, delivery or other terms negotiated as part of the buyer-seller agreements. It's likely that Carriage House Door Company has implemented a ____________ organizational structure.
centralized
Jackson is growing frustrated at Catalyst Sports since the top managers of the company make all decisions and allow very little decision-making authority to managers such as Jackson.
centralized
Scenario 2.1. Menards is a family-owned company headquartered in Eau Claire, Wisconsin, with 280 retail store locations offering home improvement products, services, and expertise across the Midwest. Since its founding in 1964, Menards has developed a reputation as the low-price leader and communicates its focus on low prices with the advertising slogan and jingle, "Save Big Money at Menards." In addition to offering low prices, Menards is committed to providing a high level of quality service to their customers and treats guests like family in a local, hometown hardware store atmosphere. Menards puts customers first and employs individuals who are knowledgeable and possess expertise to answer customer questions about products or provide advice about completing a home improvement project. Menards stocks their stores with a vast selection of name-brand and private-label products that include tools, materials and supplies for home improvement projects. Menards continues to flourish and sales are strong since many consumers are choosing to make improvements to their homes rather than upgrade to a larger, more expensive home. Menards is led by its founder, John Menard who rules the chain of stores with an iron fist. He is very demanding and insists that everyone keep track of their work hours using a time clock. John Menard is the key decision-maker for the retail chain and makes location decisions for products within the store, establishing visual merchandising plans and even determines which cleaning product maintenance employees utilize to keep the stores' floors polished and sparkling. Over the years, John Menard has developed quite a reputation and employees who don't toe the line and comply with his rules get fined or are encouraged to seek employment elsewhere. Refer to Scenario 2.1. Menard's founder, John Menard most likely has implemented a(n) ___________ organizational structure.
centralized
Traditional organizations are most likely to utilize a(n) _______ organizational structure where top-level managers make all decisions regarding marketing strategy and lower-level managers have little decision-making capability
centralized
Standard Chemical Company manufactures specialty chemicals that are utilized by companies, such as Procter & Gamble in the production of their soaps, lotions, and shampoos. Standard Chemical recently conducted a customer satisfaction survey among its business customers in the consumer products market and noted that the satisfaction ratings are lower than last year's ratings. As part of the survey, participants were given the opportunity to make recommendations regarding how Standard Chemical could improve and a large number of customers noted that the sales representatives took a long time to respond to customer questions, did not seem empowered to make decisions, and were required to obtain approval from top management. If Standard Chemical Company wants to improve its ability to serve customers and achieve higher levels of customer satisfaction, they should move from a(n) _________ organization structure to a(n) __________ organization structure.
centralized; decentralized
UPS's is changing its tagline from "We Love Logistics" to "United Problem Solvers" to communicate their capabilities to serve as a consultant and help their customers achieve business objectives ranging from improved customer service to expansion into new markets. They are considered partners and offer many types of outsourced services to their customers. UPS's ability to leverage their capabilities in supply chain and logistics is an example of which marketing concept?
competitive advantage
When a company matches a core competency to opportunities in the marketplace, it possesses a:
competitive advantage
When consumers desire mobile phone service, they can select from a large number of firms, such as AT&T, Verizon, Sprint, and T-Mobile. Verizon has invested extensively to offer an expanded range of coverage around the globe with its 4G network. Verizon has 4G service in more than 200 countries that provides consumers with the benefit of using their phones in more locations than competing firms. The extensive 4G network of Verizon represents a ________ to Verizon.
competitive advantage
Market penetration is a type of _______.
competitive growth strategy
Apple has developed a reputation as an innovative company and established a leader position in the "tablet" category of computing devices with their introduction of the iPad—the first of its kind. Today, Apple faces stiff competition from Samsung, Google, and Microsoft but is maintaining a dominant position in the tablet market. Using the Boston Consulting Group's Growth Share Matrix, which of the following strategies would be most appropriate for the iPad line of products?
continue to innovate, promote, and support the product line by investing resources in order to continue growth
Green Mountain, Inc. manufacturer of the Keurig brand of coffee makers, created an innovative and new category of coffee makers using their trademarked "K-cups" for single-serve coffee. Other companies are now producing both the cups and coffee makers competing against Green Mountain and the Keurig brand. The coffee category remains strong, possesses opportunities for growth and Keurig is maintaining a dominant position in the marketplace. Using the Boston Consulting Group's Growth Share Matrix, which of the following strategies would be most appropriate for the Keurig line of coffee makers?
continue to innovate, promote, and support the product line by investing resources in order to continue growth
Apple has developed a reputation for their ability to deliver products that provide an artistic design aesthetic through high levels of quality and attention to detail. For example, the laptops are designed so they can be opened with just one finger using a special groove on the front lip of the laptop. Apple's reputation for design and their ability to create functional features that enhance the user's experience represents a(n) __________ for the company.
core competency
Target's ability to create these partnerships is considered one of their strengths and provides an advantage over their competitors. This is an example of a:
core competency
Recently UPS began utilizing the tagline "United Problem Solvers" in its advertising campaign. According to a company spokesperson, the tagline provides a different interpretation of the company acronym, which they hope will show that UPS can serve as a consultant to help companies achieve business objectives ranging from improved customer service to expansion into new markets. The use of its symbol (UPS) and the advertising that conveys its personality and philosophy is an example of
corporate identity
Scenario 2.1. Menards is a family-owned company headquartered in Eau Claire, Wisconsin, with 280 retail store locations offering home improvement products, services, and expertise across the Midwest. Since its founding in 1964, Menards has developed a reputation as the low-price leader and communicates its focus on low prices with the advertising slogan and jingle, "Save Big Money at Menards." In addition to offering low prices, Menards is committed to providing a high level of quality service to their customers and treats guests like family in a local, hometown hardware store atmosphere. Menards puts customers first and employs individuals who are knowledgeable and possess expertise to answer customer questions about products or provide advice about completing a home improvement project. Menards stocks their stores with a vast selection of name-brand and private-label products that include tools, materials and supplies for home improvement projects. Menards continues to flourish and sales are strong since many consumers are choosing to make improvements to their homes rather than upgrade to a larger, more expensive home. Menards is led by its founder, John Menard who rules the chain of stores with an iron fist. He is very demanding and insists that everyone keep track of their work hours using a time clock. John Menard is the key decision-maker for the retail chain and makes location decisions for products within the store, establishing visual merchandising plans and even determining which cleaning products maintenance employees utilize to keep the stores' floors polished and sparkling. Over the years, John Menard has developed quite a reputation and employees who don't toe the line and comply with his rules get fined or are encouraged to seek employment elsewhere. Refer to Scenario 2.1. Menard's advertising slogan and jingle, "Save Big Money at Menards" is part of its _________ which supports all corporate activities including marketing.
corporate identity
Resource deployment and coordination of functional areas of business are determined by ____.
corporate strategy
Al Lewis is divisional sales manager with a national paint distribution company. He is responsible for managing the activities of 25 sales representatives who serve a five-state region of the United States. Al is currently conducting performance evaluations of the sales representatives and is calculating the relationship between the sales representative's compensation and the revenue they have generated for the company. One sales representative earned $128,000 in total compensation (base salary plus commission) and generated $768,000 in revenue while another representative was paid $150,000 in total compensation and generated $1,200,000 in revenue. Al is conducting the analysis as part of his annual report and individual employee performance review. What type of analysis can Al Lewis perform utilizing the data related to sales representative compensation and earned revenue?
cost analysis
A consultant is working with St. Joseph Hospital to assist them with a strategic planning initiative. The consultant has emphasized that the Hospital should employ a market orientation since it emphasizes the importance of ___________ to the entire organization.
customer satisfaction
For many years, the marketing department at ABC Corporation had a strict hierarchy where all decisions were made by top management. A year ago the director of the marketing department read a book about participative management and believed that providing more decision making authority to employees would not only increase morale but also result in more creative ideas for new products. The marketing director is attempting to _____________ the department.
decentralize
Coyote Logistics is a provider of third-party logistics services and assists customers in managing their supply chain. Employees of Coyote Logistics are extremely satisfied with the company's culture and feel empowered to make decisions. In addition, they are able to quickly respond and adapt rapidly to changing customer needs. It's likely that Coyote Logistics has implemented a ____________ organizational structure.
decentralized
Shaun Taylor is the brand manager for the athletic shoe division of Fleet Sports and really enjoys the opportunity to manage his budget and select the marketing activities that he believes are most appropriate in achieving his objectives. Since Shaun has both authority and responsibility for making marketing decisions, he can quickly respond to changes in the marketplace or fluctuations in demand. Which type of organization structure would best describe Fleet Sports?
decentralized
The following passage is an often-expressed critique of one of the two types of decision-making structures: Another disadvantage of this structure is that the organization may become fragmented. Business units may lose their sense of team spirit and cooperation. Some business units may put their own interests ahead of those of the company as a whole. Innovative ideas that once spread through the company quickly may now remain within individual business units. Which one of the following decision-making structures is this critique referring to?
decentralized organizational structure
Identifying and analyzing a target market and developing a marketing mix to satisfy individuals in that market are essential elements of which of the following parts of strategic planning?
developing a marketing strategy
A soda manufacturer decided to branch out into the health food industry by developing a line of organic juices to be sold in health foods. The juices would be sold under its own brand name. Which type of competitive growth strategy do its actions represent?
diversification
Jamal Nassar is employed as a marketing analyst with Bright Horizons, Inc. and is currently assisting the VP Marketing with the marketing plan. Jamal has been tasked with assessing a variety of factors, such as competitive, economic, political, legal, regulatory, technological, and sociocultural that could affect various marketing activities. Which section of the marketing plan is Jamal developing?
environmental analysis
The ___________________ section of the marketing plan supplies information about the company's current situation with respect to the ________________, the target market, and the firm's current objectives and performance.
environmental analysis; marketing environment
Scenario 2.2. Growing Grounds is a full-service nursery and landscaping company that offers a wide selection of plant and landscape materials for its customers. The spring, summer, and fall seasons are the best times of the year for Growing Grounds and they have been experimenting with adding new products and services each year. Growing Grounds has an extensive line of trees, which can be planted by the customer or installed by its tree service for a minimal fee. In addition, they offer landscaping services and quite frequently work with home builders to install grass and bedding plants for new home construction projects. Growing Grounds also has a wide selection of bushes, ornamental plants, and seasonal plants such as vegetables. Over the years, Growing Grounds has added more "heirloom" plants to its line of vegetables that are organically grown and contain no genetic modifications. Growing Grounds has noticed that many consumers are concerned about genetic modifications as well as the use of pesticides. Moreover, consumers want to grow their own vegetables and enjoy the opportunity to harvest and eat the food that they have grown in their gardens. In its market, Growing Grounds has a reputation for serving the commercial business-to-business market with landscaping services, which is a stable market and one where they possess a large market share. However, they are hoping to grow its direct-to-consumer business by adding a full line of vegetable plants since home-grown vegetables and home-based gardening is growing in popularity. Refer to Scenario 2.2. The interest in home-based gardening is driven by consumers' desire to have fresh produce that is not genetically modified and pesticide free which represents a(n) _________ and creates a ____________ for Growing Grounds.
environmental factor; marketing opportunity
In order to achieve marketing objectives, marketing managers must evaluate the effectiveness of their marketing strategy by engaging in strategic performance evaluation. What is the first step in the strategic performance evaluation process?
establish performance standards
Misty O'Brien is responsible for the social media marketing activities for her company and currently utilizes Facebook, Instagram, Twitter and Pinterest to communicate with customers, reinforce customer relationships, and drive revenues and profitability. She utilizes a technology platform called Hootsuite to schedule posts to Facebook, Twitter, Instagram, and Pinterest and the program also enables Misty to share her workload among members of her team, other departments, or regions of the company. Misty primarily utilizes Hootsuite to schedule posts so that she can match the various social media content to specific marketing objectives according to the days or months of the year that are most appropriate for her company. Therefore, Hootsuite assists Misty with which of the following marketing implementation activities?
establishing a timetable for implementation
Many companies attempt to benchmark their performance against other firms in their industry. The American Customer Satisfaction Index (ACSI) is the nation's only cross-industry measure of customer satisfaction, giving businesses science-based insights across the complete arc of the customer experience. The ACSI conducts research and reports its findings using a 100-point scale across a variety of industries such as insurance, healthcare, travel, restaurant, and hospitality. A recent listing of companies in the wireless telephone communications service industry reported customers rated TracFone Wireless the highest with an ACSI score of 77 and Spring the lowest at 65. Verizon and AT&T were rated relatively the same with scores of 71 for Verizon and 70 for AT&T. These ACSI ratings assist companies with which of the following activities?
evaluating actual performance
A firm's organizational goals should be derived from its opportunities.
false
A strategic window results from the right combination of circumstances and timing, allowing a firm to take action to reach a particular target market.
false
Marketing mix decisions must have two characteristics: consistency and timeliness.
false
Marketing planning consists of two major components: marketing objectives and a control process.
false
Forever 21 is the authority on fashion and the go-to retailer for the latest trends, must-have styles, and the hottest deals. The retail stores are typically found in shopping malls across the country and are exciting places to shop—featuring bright lights, attractive displays, loud music, and a club-type atmosphere. Which of the following would most likely be the "best" target market for Forever 21?
females aged 16 to 22
A competitive advantage exists when a ____
firm matches a core competency to opportunities it has discovered in the marketplace
According to the Boston Consulting Group, question marks are characterized as products ________.
having a small share of a growing market and requiring large amounts of cash to build market share
Ancient Harvest is a producer and marketer of grain and pasta products to retail stores worldwide and is hoping its gluten free, non-GMO and organic quinoa products become a staple item in American households. Quinoa is an ancient grain and is also a complete protein, which means it provides all nine essential amino acids necessary for good health, hence the name "essential." Which of the following would be the "best" target market for Ancient Harvest's quinoa products?
health-conscious consumers who are concerned about pesticides, genetically modified products and desire to eat healthy and provide healthy food for their families
To formulate a marketing strategy, one must ____.
identify and analyze a target market and develop a marketing mix to satisfy individuals in that market
What is the first step in the strategic planning process?
identifying the organizational mission and goals
What is the first step in creating a marketing strategy?
identifying the target market
The marketing plan specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies. Which of the following is not one of the reasons why the marketing plan is an important document for organizations?
it specifies the contractual relationship between consumers and the organization.
Rio, a division of D&M Holdings Inc. was the first company to offer an MP3 player in 1998.It dominated the business due to its ability to innovate and enjoyed a competitive advantage since it was the first to offer the new technology and held a patent on the chip sets utilized in MP3 players. However, Rio stopped producing MP3 players in 2005 and found that they could no longer compete effectively against Apple whose iPod became the most widely adopted MP3 player and transformed the industry. Apple possesses a ___________ advantage while Rio enjoyed a ___________ advantage.
late-mover; first-mover
When Dominos introduced its pizza into India, it conducted massive market research to develop pizzas that appealed to Indian consumers' tastes. In southern India, for instance, it developed a raw-banana pizza. Domino's became a dominant player in the emerging pizza market. What type of competitive growth strategy did it use?
market development
Due to the failure of one beverage distribution company, a regional distributor was able to add the brand, San Pellegrino to its catalog of brands and offer an extended variety of products to their retail and restaurant customers. The regional distributor was able to take advantage of the business failure and unique situation to add a sought after product to its customers. Which marketing concept best applies to this example?
market opportunity
Keith Cole is a professional photographer known for stunning landscapes from the world's most beautiful places. He enters his photography in juried art fairs and then exhibits his work to patrons who visit the art fair. He accepts cash and credit cards and really enjoys the freedom to utilize Square, which is a mobile payment product that attaches to his smartphone. Square developed their product specifically for small businesses like Keith's so they could more easily accept credit payments in multiple locations using their smartphone. Square's ability to launch its product to the small business customer like photographer, Keith Cole is an example of:
market opportunity
Many consumers today suffer from gluten allergies and companies are now modifying their products to provide gluten-free alternatives. Over the last few years, sales of gluten-free foods have surged over 68% and sales are approximately $9 billion annually with companies such as General Mills and Hormel catering to consumers who prefer gluten-free products. Some market analysts believe the interest in gluten-free products is just another diet fad with the exception of the 1% of the population who suffer from Celiac disease and need gluten-free products. Approximately 39% of all food manufacturers are capitalizing on consumers' interest in gluten-free products. According to the text, the interest in gluten-free products represents a:
market opportunity
Realizing an increase in both the number of consumers who are environmentally-conscious and the number of consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles. This is an example of identifying and capitalizing on a ____ while the strategic window is open.
market opportunity
The Boston Consulting Group Matrix, which is commonly used by firms engaged in strategic planning activities is a two-dimensional model where a company can classify its products or business units into four different quadrants. One dimension represents the proportion of a market that actually purchases the product from the company and is termed
market share
The process of putting marketing strategies into action is called ____.
marketing implementation
Which section of the marketing plan would most likely include a chart, which specifies the roles and specific responsibilities of various members of the organization who are accountable for executing the marketing strategies necessary to achieve the organization's objectives?
marketing implementation
Which of the following statements is the best definition of the process of marketing implementation?
marketing implementation is the process of putting marketing strategies into action.
Our Lady Hospital is interested in providing a high level of care to its patients and is concerned with both clinical outcomes as well as patient satisfaction. As part of a recent strategic planning effort, Our Lady Hospital's president shared the following statement with its staff: Our Lady Hospital seeks to achieve a 97% patient satisfaction rating and reduce readmittance to the hospital for similar ailments by 15% over the next six months. This statement is an example of:
marketing objective
The section of the marketing plan which states what the company wants to accomplish through marketing activities is called
marketing objectives
The marketing plan is a written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies. The plan includes many sections and is a time-consuming process. The ___________ section states what the company wants to accomplish through marketing activities and highlights ___________ in the external environment that could produce rewards for the organization if acted upon.
marketing objectives; opportunities
A written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies is called a:
marketing plan
A written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies is known as a:
marketing plan
LaTonya Davis was recently hired as the brand manager for Golden Harvest's organic grains division of products including the popular ancient grain, quinoa. LaTonya has been familiarizing herself with the performance of the various products as well as the marketing activities to generate revenue and profitability. LaTonya has started to meet with various marketing personnel who are responsible for different marketing tasks, such as channel sales, publicity, special events, and advertising and is growing concerned since each member of the team has a different perception or vision as well as competing objectives. LaTonya realizes that she and her team must devote time to create a ___________.
marketing plan
PepsiCo operates six global divisions that make and distribute a diverse range of products. Within each global division, PepsiCo is proud of its brands and has a loyal customer following. The Frito Lay division is responsible to make, market, sell, and distribute some of the most popular snack foods in the United States, including Lay's potato chips, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips and branded dips, Ruffles potato chips, and Fritos corn chips. Each of these popular brands has an executive brand manager who is responsible for developing a written document specifying the various marketing activities that will be performed to implement and evaluate the brand's marketing strategies. This written plan is called a:
marketing plan
Phoenix Sailing, a charter sailing tour company based in Chicago, Illinois, near Navy Pier is developing a document to assist them in differentiating their business from other tourist organizations as well as specifying the various activities that should be performed to achieve their goals and objectives when implementing marketing tactics. What type of document is Phoenix Sailing developing?
marketing plan
J.C. Penney is presently involved in a process of assessing marketing opportunities and resources, determining marketing objectives, redefining marketing strategies, and developing guidelines for implementation and control. Thus, J.C. Penney is involved in ___.
marketing planning
Best Buy has been engaged in a lengthy process to understand its customers and has identified several different segments of customers who are part of its target market. They use a customer-centric approach and are highly data driven using store purchase data and consumer demographics. They attempt to meet the needs and wants of the target markets they have identified through their product mix, retail store design, employee staffing, and other marketing mix variables to ensure that the needs of the target market will be met. Which of the following activities best describes Best Buy's activities?
marketing strategy
According to the Boston Consulting Group Growth Share Matrix, products labeled as "dogs" are
often found in established markets, have low prospects for growth, and a lower share of the market.
Scenario 2.1. Menards is a family-owned company headquartered in Eau Claire, Wisconsin, with 280 retail store locations offering home improvement products, services, and expertise across the Midwest. Since its founding in 1964, Menards has developed a reputation as the low-price leader and communicates its focus on low prices with the advertising slogan and jingle, "Save Big Money at Menards." In addition to offering low prices, Menards is committed to providing a high level of quality service to their customers and treats guests like family in a local, hometown hardware store atmosphere. Menards puts customers first and employs individuals who are knowledgeable and possess expertise to answer customer questions about products or provide advice about completing a home improvement project. Menards stocks their stores with a vast selection of name-brand and private-label products that include tools, materials and supplies for home improvement projects. Menards continues to flourish and sales are strong since many consumers are choosing to make improvements to their homes rather than upgrade to a larger, more expensive home. Menards is led by its founder, John Menard who rules the chain of stores with an iron fist. He is very demanding and insists that everyone keep track of their work hours using a time clock. John Menard is the key decision-maker for the retail chain and makes location decisions for products within the store, establishing visual merchandising plans and even determines which cleaning product maintenance employees utilize to keep the stores' floors polished and sparkling. Over the years, John Menard has developed quite a reputation and employees who don't toe the line and comply with his rules get fined or are encouraged to seek employment elsewhere. Refer to Scenario 2.1. Assume that you are conducting a SWOT analysis for Menards based upon the information provided in the scenario. The increase in sales coming from customers who are making improvements to their existing homes rather than purchasing new homes would be classified as a(n) _______.
opportunity
When conditions in the external environment are favorable and could lead to rewards for the organization if acted upon in an appropriate manner, a(n) _________ is present.
opportunity
Carmen Sanchez is assisting the marketing team to detail the various environmental factors, which are impacting her company as they draft the marketing plan for the upcoming fiscal year. Carmen is making a list of the various sociocultural factors, which are occurring in the external environment that could be important for her company to respond to and/or be aware of as they create marketing strategies and tactics. Which of the following factors would be best classified as sociocultural factors?
percentage of Hispanic customers in the United States
Baker University utilizes a variety of marketing activities to promote its university to prospective students such as direct mail, billboards, and advertising during NCAA athletic events. The University would like to enroll 800 freshmen each year but has been struggling to meet this goal. Recently, the enrollment manager of Baker University met with the various college deans and the University top administration to discuss why current enrollments are not reaching the targeted enrollment level. What type of activity are the staff of Baker University engaged in?
performance evaluation
The section of the marketing plan, which provides standards to determine how the marketing activities will be evaluated as well as the audits to be performed to gauge success is called
performance evaluation
Sherwin-Williams operates retail stores across the United States and each store typically has a staff of two to three outside sales representatives who work with businesses to assist them with their paint and coatings needs. Business customers include facility managers of apartment complexes, hospitals, schools, and manufacturing facilities. Sherwin-Williams competes with a wide variety of companies and sets targets for their sales representatives to achieve. One target for sales representatives relates to prospecting activity—sales representatives should acquire one new business-to-business customer account each month. This target related to new business growth is an example of a:
performance standard
Which of the following is not one of the terms used to classify products or business units in the Boston Consulting Group Matrix?
pig
In 1996, an entrepreneur and athlete launched the business, Under Armour with one product now known as their classic t-shirt that boosts muscle performance and wicks moisture, keeping athletes cool, dry, and light. Under Armour continues to innovate, creating new products such as its line of shoes using the brand name, SpeedForm. While the sales of the shoes are catching on, Under Armour has a small proportion of total category sales in a high growth product category. Which quadrant of the Boston Consulting Group matrix would be most accurate for Under Armour's shoe line?
question mark
The Four Seasons Spa and Salon has retained a marketing consultant to assist them with their annual strategic planning retreat. Shantelle Stevens, owner of the salon is reviewing the agenda for the meeting and observes that the sequence of activities follows the strategic planning process discussed in her marketing class many years ago. According to the text, what is the first activity that organizations should pursue as part of their strategic planning process?
review or establish the organization's mission and goals
The Riverfront Museum opened in 2012 and has struggled to attract patrons to visit the museum. Projected visitors during the planning stages were anticipated to be 1,000 per month but the actual visitors during the first year fell quite short at only 750 per month with an average of 780 across the year. Today, however, the museum is enjoying a stellar year with daily attendance averaging 35 to 50 visitors and monthly totals of 1,050 to 1,500. The number of visitors is directly related to the revenue the museum earns due to ticket prices. Adults pay $20 for admission and children 12 and under pay $15. In 2012, the museum reported revenues of $8,880 but they are on pace to earn almost twice as much for the current year. What type of analysis can the Riverfront Museum perform utilizing the data related to number of visitors and revenue?
sales analysis
Why is sales analysis a common method of evaluation?
sales data are readily available and can reflect the target market's reactions to a marketing mix.
When marketing managers perform a cost analysis, they typically classify expenses into two categories, fixed or variable. Which of the following is an example of a variable cost?
sales representative commissions
Juan Rodriguez is a marketing analyst for Computer Solutions, a firm that provides consultative services, web hosting, and technology maintenance and service for a wide variety of applications, such as computers, networks, and computer-controlled manufacturing equipment. Juan is responsible for contributing information related to the environmental analysis section of the firm's marketing plan and must provide information about the company's current situation with respect to the marketing environment. He has brainstormed a list of environmental factors and his next step is to classify them into various categories such as competitive, economic, political, technological, sociocultural, and legal/regulatory. Which of the following factors would be best classified as technological factors?
secure systems, encryption technology, and digital certificates using secure sockets layer protocol mechanisms (SSL)
The Growth Share Matrix developed by the Boston Consulting Group identifies products with a dominant share of the market and strong prospects for growth as __________.
stars
PepsiCo includes six global divisions that make and distribute a diverse range of products. Two divisions are Frito Lay and Quaker Foods, which are considered ___________ units of PepsiCo.
strategic business
Marketing managers at Consolidated Equipment Corporation are involved in establishing marketing performance standards, evaluating performance, and reducing the differences between actual and desired performance. These marketing managers are engaged in ____.
strategic performance evaluation
The leadership team of Bud's Distributors, a regional beverage company collaborated during a two-day meeting to discuss and revise their company's mission and goals, identify strengths, weaknesses, opportunities, and threats, and create a marketing plan. The process implemented by Bud's Distributors is termed:
strategic planning
Scenario 2.1. Menards is a family-owned company headquartered in Eau Claire, Wisconsin, with 280 retail store locations offering home improvement products, services, and expertise across the Midwest. Since its founding in 1964, Menards has developed a reputation as the low-price leader and communicates its focus on low prices with the advertising slogan and jingle, "Save Big Money at Menards." In addition to offering low prices, Menards is committed to providing a high level of quality service to their customers and treats guests like family in a local, hometown hardware store atmosphere. Menards puts customers first and employs individuals who are knowledgeable and possess expertise to answer customer questions about products or provide advice about completing a home improvement project. Menards stocks their stores with a vast selection of name-brand and private-label products that include tools, materials and supplies for home improvement projects. Menards continues to flourish and sales are strong since many consumers are choosing to make improvements to their homes rather than upgrade to a larger, more expensive home. Menards is led by its founder, John Menard who rules the chain of stores with an iron fist. He is very demanding and insists that everyone keep track of their work hours using a time clock. John Menard is the key decision-maker for the retail chain and makes location decisions for products within the store, establishing visual merchandising plans and even determines which cleaning product maintenance employees utilize to keep the stores' floors polished and sparkling. Over the years, John Menard has developed quite a reputation and employees who don't toe the line and comply with his rules get fined or are encouraged to seek employment elsewhere. Refer to Scenario 2.1. The ability of Menards to hire employees who deliver a high level of quality service, possess expertise, and strive to put customers first would most likely be characterized as a(n) _________ during a SWOT analysis of the firm.
strength
Caterpillar's high product quality, integrated dealer network, and ability to provide parts and service to maximize uptime are examples of the firm's
strengths
One area organizations should assess include ______, which are internal factors that give the company an advantage over the competition.
strengths
Due to its unique distribution system where 98% of replacement parts can be available to customers through their dealer network, Caterpillar has a_________ advantage over Komatsu, one of its main competitors.
sustainable competitive
Amazon maintains a ____________ in shipping because they have invested in a high-tech logistics system and extensive network of distribution centers across the United States, which enables the company to offer low prices and fast service. Many retailers have found it difficult to compete with Amazon especially during the Christmas holiday season since their distribution and inventory systems are not as efficient as Amazon's.
sustainable competitive advantage
Scenario 2.2. Growing Grounds is a full-service nursery and landscaping company that offers a wide selection of plant and landscape materials for its customers. The spring, summer, and fall seasons are the best times of the year for Growing Grounds and they have been experimenting with adding new products and services each year. Growing Grounds has an extensive line of trees, which can be planted by the customer or installed by its tree service for a minimal fee. In addition, they offer landscaping services and quite frequently work with home builders to install grass and bedding plants for new home construction projects. Growing Grounds also has a wide selection of bushes, ornamental plants, and seasonal plants such as vegetables. Over the years, Growing Grounds has added more "heirloom" plants to its line of vegetables that are organically grown and contain no genetic modifications. Growing Grounds has noticed that many consumers are concerned about genetic modifications as well as the use of pesticides. Moreover, consumers want to grow their own vegetables and enjoy the opportunity to harvest and eat the food that they have grown in their gardens. In its market, Growing Grounds has a reputation for serving the commercial business-to-business market with landscaping services, which is a stable market and one where they possess a large market share. However, they are hoping to grow its direct-to-consumer business by adding a full line of vegetable plants since home-grown vegetables and home-based gardening is growing in popularity. Refer to Scenario 2.2. The home builders to whom Growing Grounds provides landscaping services such as lawn installation and bedding plants is considered one of the company's _________, and the landscaping services it provides is part of the _________ element of the marketing mix.
target market; product
Jamal Miller is a management consultant who frequently works with businesses to assist them with their strategic planning efforts. He recommends that once firms have used the SWOT analysis to gauge their capabilities and resources relative to the industry, they should identify tactics to achieve a more competitive position relative to other firms in their market. One approach Jamal suggests includes taking actions to convert external _______ into opportunities and internal _______ into strengths.
threats; weaknesses
Marketing plans may be developed for strategic business units, product lines, individual products or brands, or specific markets.
true
Performance standards are derived from marketing objectives that are set while developing the marketing strategy
true
Performance standards are derived from marketing objectives that are set while developing the marketing strategy.
true
You are meeting to discuss the proper categorization of marketing strategy costs in the monthly department budget performance report. You are especially interested in making sure the fixed and variable costs are properly categorized. The major costs associated with the marketing strategy are as follows: -salesperson commissions -office space rent -office equipment rental -product raw materials -product manufacturing labor With respect to the variable or fixed nature of these costs, _____.
we know that salesperson commissions, product raw materials, and product manufacturing labor costs are all variable costs
