MKTG 380 - QUIZ 2
The rule of three refers to the theory that in any industry, the three strongest competitors dominate between ______________ percent of the competitive market.
70 to 90
Heather is the director of human resources at a medium-sized firm and has spent significant time in workshops and working with her insurance suppliers to understand the Affordable Care Act and how it might impact the benefits that the company provides its employees. The Affordable Care Act is an example of a(n) _______ factor that can impact organizations.
A political-legal environmental factor includes local, state and federal legislation such as the Affordable Care Act.
Which of the following is true of a strategic business unit?
A strategic unit has its own managers, resources, objectives, and competitors.
You've just started a new job as Chief Marketing Officer for a restaurant chain, and you've learned that the marketing planning process is already underway. In fact, the first two steps have been completed. What do you need to do now?
Assess organizational resources and opportunities.
Which of the following best represents a mission statement?
Bass Pro Shop: To be the leading merchant of outdoor recreational products, inspiring people to love, enjoy, and conserve the great outdoors
Decisions involving transportation, warehousing, inventory control, and order processing relate to the _____ strategy component.
Distribution
Which of the following defines an organization's mission?
Essential purpose that differentiates one company from others
A statement such as "to hit the 300 employee mark by the end of the year" is typically a part of a mission statement.
F
According to the BCG matrix, cash cow businesses produce strong cash flows and invest heavily in the unit's own promotions and production capacity.
F
Data suggests that business owners who adopt the first mover strategy will always be long-term market winners.
F
Each strategic business unit (SBU) in a firm has to prepare its plans in collaboration with other units in the organization
F
Marketing planning establishes the basis for a firm's overall strategic plan.
F
Operational planning that involves the creation and implementation of tactical plans for the departments within an organization is primarily the responsibility of top-level management.
F
Relationship-building goals and strategies are seldom included in the plans of business firms.
F
Strategic business units (SBUs) of a diversified firm have common managers, resources, objectives, and competitors.
F
Strategic planning has a minimal impact on a firm's destiny because it provides only short-term direction to the decision makers.
F
Tactical plans typically determine an organization's primary strategic objectives and exclude short-term actions from their purview.
F
The Internet has impacted business for new firms by increasing the barriers to market entry.
F
The advertising director, marketing research manager, and other middle-level managers have the primary responsibility of devising and implementing the strategic plan of the company.
F
The chief executive officer (CEO) and vice president of marketing spend a greater proportion of their time on operational planning than do managers at all other organizational levels.
F
The five dimensions of the marketing environment exert a fairly constant and static influence on marketing strategies.
F
The number of suppliers available to a manufacturer or retailer affects the bargaining power of buyers.
F
The planning process is an intermittent process held after substantial intervals.
F
The position of an SBU along the horizontal axis indicates the annual growth rate of the market.
F
The pricing strategy is the area of marketing that receives the least amount of public scrutiny.
F
The rule of three states that the third major company in an industry has little chance of survival.
F
A firm describes its overall goals and operational scope in its standard operating procedures manual.
FALSE
Matching an external opportunity with an internal weakness produces a situation known as leverage.
FALSE
Strategic business units are key business units within small companies that offer only a few items to its customers.
FALSE
The disadvantage of core competencies is that they can be easily duplicated by competitors.
FALSE
Which of the following would qualify as an example of a firm's weakness?
Inadequate financing capabilities
Within your diversified processed-food firm, there are SBUs for fruits, vegetables, dairy products, and baked goods. Each SBU has its own:
Managers Objectives Competitors
A good marketing plan revolves around an efficient, flexible, and adaptable ____________.
Marketing strategy
Kraft Mac & Cheese first hit the shelves in 1937 and remains a favorite product for families. The product has undergone changes in formulation as well as packaging over the years and Kraft recently reformulated the product so it does not contain any artificial ingredients. Sales of Kraft Mac & Cheese in the familiar blue box continue to be strong and help Kraft fund other products since it generates such a strong cash flow. Kraft continues to invest in its Mac & Cheese brand through both research and development as well as promotional activities. It's likely that Kraft views Mac & Cheese as a ______ according the BCG matrix.
Star
If an automobile manufacturer was planning to introduce a sports car powered by a hydrogen-oxygen fuel cell when the price of gasoline in the United States reached $4 per gallon, this would best be described as a direct result of its _____ plan.
Strategic
A SWOT analysis helps planners compare internal organizational strengths and weaknesses with external opportunities and threats.
T
A mission can be defined as an essential purpose that differentiates one company from others.
T
A product strategy includes decisions about customer service, package design, brand names, trademarks, patents, and warranties.
T
A target market is a group of customers toward whom a firm directs its marketing efforts.
T
According to the BCG matrix, if a question mark cannot become a star, the firm should pull out of the market and target other markets with greater potential.
T
According to the BCG matrix, stars require considerable inflows of cash to finance further growth.
T
All planning strategies have the goal of creating a sustainable competitive advantage for a firm which other companies cannot imitate.
T
An organization lays out its basic objectives, or goals, in its complete mission statement.
T
An organizational objective should specify time frames stating "Our organization aims to generate a 15 percent profit over the next 24 months."
T
Apple iTunes is an example of a successful first mover.
T
Detailed organizational objectives should state specific intentions, such as "Snapple Corporation seeks to increase its share of the non-carbonated soft drink market to 25 percent within the next two years."
T
Each SBU pursues its own distinct mission and often develops its own plans independently.
T
Each element of the marketing mix—product, price, distribution, and promotion—is a subset of the overall marketing strategy.
T
Employees at middle-management levels engage themselves in business unit budgets and divisional policies and procedures.
T
Fred's Wholesale Club sends emails and catalogs to all members. Additionally, in-store pamphlets promote the benefits of its products. All of these materials are part of the integrated marketing communications intended to send a consistent and unified promotional message.
T
Good relationships with customers can equip a firm with vital strategic weapons.
T
In a SWOT analysis, marketers face a problem when environmental threats attack their organization's weaknesses.
T
It can be said that the buying power enjoyed by customers has increased with Internet presence as the Internet provides detailed information that is not easily available elsewhere.
T
Marketing strategy is an overall company-wide program for selecting a particular target market and satisfying consumers through a careful blend of the elements of the marketing mix.
T
Middle and supervisory-level managers spend less time as compared to CEOs on planning activities.
T
Organizational resources include the capabilities of the firm's production, marketing, finance, technology, and employees.
T
Promotion is the communications link between sellers and buyers.
T
Tactical planning usually involves the production of quarterly and semiannual plans, along with divisional budgets, policies, and procedures.
T
Targeting consumers in specific global markets represents a challenge
T
The statement of Starbucks to "inspire and nurture the human spirit - one person, one cup and one neighborhood at a time" is an example of a mission statement.
T
To be most effective, the planning process should include input from a wide range of sources both internal and external to the organization.
T
Toyota's introduction of the hybrid-powered Prius is an example of how it has turned public concerns and legal issues about the natural environment into an opportunity.
T
You are about to launch a digital advertising startup. Your former marketing professor warns you to get the first element in the marketing strategy right -- because otherwise, your new company is doomed to failure. Which is this essential element?
TM
Organizational resources include the capabilities of the firm's production, marketing, finance, technology, and employees.
TRUE !!!
Elger Labs introduced the MPMAN F10 in 1998 which is regarded as the world's first MP3 player featuring only 32 MB of memory in 1998. Other competitors entered the market and the Apple iPod made its debut in 2001 and included a 1.8-inch Toshiba 5GB hard drive and a large black-and-white display. The model retailed for $400 and it was only compatible with Mac computers. The early brands are no longer available and the iPod has become the market leader. What type of strategy did Apple employ with its introduction of the iPod in 2001?
The second mover strategy is based on the theory that companies who closely observe the innovations of first movers can improve upon them to gain an advantage in the marketplace.
A shoe manufacturer has multiple suppliers for leather. Based on this information, which of the following statements is true?
The suppliers have lesser bargaining than the buyer.
Which of the following conditions would lead a company's marketers to find a new market, change prices, or compete in other ways to maintain an advantage?
When the threat of substitute products is high
The term marketing mix describes:
a blend of the four strategic marketing elements to satisfy specific target markets.
Atari, a consumer electronics and video games company, observed the innovations of Nintendo Co., the most powerful video game company at that time, and destroyed the market share of Nintendo eventually. This implies that Atari:
applied a second-mover strategy.
Marketing planning establishes the:
basis for any marketing strategy
According to the BCG market share/market growth matrix, the SBU that produces strong cash flows which can be used to finance the growth of other SBUs is the:
cash cow
One of General Electric's business units produces a variety of light bulbs and generates healthy revenue. The revenues of this business unit are used to finance the growth of other business units with higher growth potentials. How would this unit be classified on the BCG market share/market growth matrix?
cash cow
DK Motors' difficulty in competing with other car makers due to its lack of responsiveness to changing consumer preferences constitutes a:
constraint on its activity.
Effective relationship marketing often involves:
databases to track customer preferences.
TaB is a cola product marketed by Coca Cola company and has a loyal following due to its low levels of sodium and no caffeine. However, the TaB product has low market share and low growth rate. TaB is a ______ according the BCG matrix.
dog
YOU Inc., a radio cassette manufacturer, sold its business due to poor market shares. According to the BCG Matrix, the firm sold its business because the business had become a _____ as seen in its poor prospects and performance.
dog
Product lines, pricing decisions, selection of appropriate distribution channels, and decisions relating to promotional campaigns are____.
dynamic in today's boundaryless business environment
Relationship marketing refers to a firm's effort to develop long-term, cost-effective links with individual customers and suppliers. Many companies:
include relationship-building goals and strategies in their larger plans for the organization.
Many companies use an approach called _____ to coordinate all promotional activities so that the consumer receives a unified and consistent message.
integrated marketing communications
Operational planning:
is used to determine departmental rules and procedures.
Strategic planning has a critical impact on a firm's destiny because it provides _____ to its decision makers.
long-term
Strategic planning has a critical impact on a firm's destiny because it provides _____ to its decision makers.
long-term direction
The _____ process involves implementing planning activities devoted to achieving marketing objectives.
market planning
The strategic business unit (SBU) concept is best identified as a:
marketing planning tool that best suits the needs of large, diversified organizations.
A _____ is the overall, companywide program for selecting a particular target market and then satisfying consumers in that market through the marketing mix.
marketing strategy
Employees of Popsie Inc., a small grocery store chain, are working on its tactical plans. The personnel most involved in this level of its planning process would be its:
middle management, such as the merchandising and advertising managers.
Jamie is the regional sales manager for Sherwin Williams paint company and oversees a team of 40 outside sales representatives. She meets with her sales managers on a monthly basis to review budgets and track the team's progress in meeting its sales quotas in order to reach company objectives. Jamie requires that each sales manager collaborate with their individual sales representatives to develop weekly call schedules and account plans. What type of planning is Jamie and her sales managers engaged in?
operational planning
An example of a firm's strength discovered by a SWOT analysis might be:
ownership of valuable patents.
The process of anticipating future events and conditions and determining the best way to achieve organizational objectives is known as:
planning
_____ is the process of anticipating future events and conditions and determining the best way to achieve organizational objectives.
planning
Business strategist Michael E. Porter identified five competitive forces that influence _____ in a model called Porter's Five Forces.
planning startegies
In a(n) _____, firms evaluate their products and divisions to determine the strongest and weakest.
portfolio analysis
Retailers such as Bed Bath and Beyond often use the ______ element of the marketing mix to influence consumers to purchase a greater number of products by offering a discount if a customer purchases multiple units such as 3 for $10.
price
The marketing mix decisions which are closely regulated and subject to public scrutiny usually relate to a company's _____ strategy.
pricing
Newsletters, catalogs, and invitations to company-sponsored events are most closely associated with the marketing mix activity of:
product promotion
Jenny has been appointed the marketing manager for Spark Cleaning Products. Her job focuses on decisions involving customer service, package design, brand names, and warranties. In this scenario, Jenny is closely associated with the _____ dimension of the marketing planning
product strategy
Jenny has been appointed the marketing manager for Spark Cleaning Products. Her job focuses on decisions involving customer service, package design, brand names, and warranties. In this scenario, Jenny is closely associated with the _____ dimension of the marketing planning.
product strategy
A company can modify a strategy when its actual performance is not in line with expected results by:
putting the marketing strategy into action and monitoring performance.
According to the BCG market share/market growth matrix, _____ typically require more cash than they generate.
question marks
Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will:
reduce the threat of new entrants.
Luxury brands such as Louis Vuitton and Gucci are experiencing a decline in sales as luxury buyers prefer to purchase non-branded merchandise as they are concerned with flaunting their wealth. Instead, they are purchasing luxury brands that do not feature the brands logo on the product. This trend is related to the fact that high income consumers have increased their wealth in the last several years while middle-income earners' wealth has declined. The decline in sales for Louis Vuitton and Gucci is related to the ________ environmental influence.
social-cultural
The quadrant of the BCG market share/market growth matrix that represents both a high market share and a high rate of market growth represents the:
stars
According to the BCG market share/market growth matrix, the revenues earned from cash cows should be used to finance the growth of:
stars and question marks.
Comcast's NBC division acquired Universal Studios and the highest executive who approved this acquisition was most likely Comcast's CEO. This decision is the direct result of _____ planning process at Comcast.
strategic
As chief executive of Stalwart Shipfitting Company, a diversified producer of marine supplies and equipment, John needs a method for spotting promising product lines that warrant commitment of additional resources, as well as those that should be removed from the firm's product portfolio. A good choice for this firm at this stage would be to use:
strategic business units.
A two-day offsite retreat was held for a team of executives of a major hospital including the hospital's CEO, President, and Vice-Presidents. Over the course of the two-days, the executives engaged in brainstorming sessions and worked together to articulate the direction the hospital should take and specific objectives that should be achieved over the next 5 years. The team focused considerable attention to objectives related to the Affordable Care Act and rising numbers of patients eligible for Medicare. The executives were engaged in _______.
strategic planning
Jamal is the marketing director of a third party logistics firm operating in the United States. Jamal and his team recently engaged in ________ to determine the company's primary objectives over the next three years and identified specific actions that the company would initiate to achieve the objectives.
strategic planning
The process of determining an organization's primary objectives and adopting courses of action that will achieve these objectives is known as _____.
strategic planning
At a time when computer users were having trouble storing, sending, and displaying photos, Apple introduced the iMac computer, which was equipped with a digital camera interface and photo-handling software. This product was a result of Apple recognizing its:
strategic window
At a time when computer users were having trouble storing, sending, and displaying photos, Apple introduced the iMac computer, which was equipped with a digital camera interface and photo-handling software. This product was a result of Apple recognizing its:
strategic window.
A certain social networking corporation has the highest number of users in the social networking industry. This is an example of the firm's:
strength
A company's plans that focus largely on its current and near-future activities and are determined by its middle level management are referred to as _____ plans.
tactical
Preparation of quarterly and semiannual plans by personnel such as the general sales manager or advertising director would be classified as _____ planning.
tactical
Strategic planning is complemented by _____ which guides the implementation of activities specified in the strategic plan.
tactical planning
Preparation of quarterly and semiannual plans by personnel such as the general sales manager or advertising director would be classified as _____ planning.
tatical
Decisions relating to the product strategy primarily revolve around _____.
the features of the products being released in the market
Budweiser and its stable of beer brands including Michelob, Bud Lite and Budweiser Platinum have faced significant inroads in sales by craft breweries such as Boston Beer Company and Sierra Nevada Brewing Company. The craft breweries represent a(n) ______ to Budweiser.
threat
Decisions about distribution strategy primarily involve challenges such as:
which marketing channels to adopt.
The first step of the marketing planning process involves:
writing mission statement
You are explaining the elements of your bookstore's marketing strategy to a summer intern. Which of the following do you include?
Advertising in local newspapers Prices competitive with online sellers A target market of adults 18-62 A wide array of bestselling fiction and nonfiction titles
You are responsible for writing the statements of organizational goals to be included in the mission statement of your retail company. Choose the goal(s) that are not stated appropriately for this purpose.
Create an aura of prestige.
You are excited about being promoted to general sales manager, a middle management job, but you feel a bit overwhelmed as you anticipate the demands of the new position. A colleague tries to help, pointing out that you will also be shedding some responsibilities. Which of the following will not be part of your new job?
Daily and weekly plans
The concept of _________________ refers to the ways that marketers make sure their customers get the right amount of products at the right time and place.
Distribution strategy
As the marketing director for a public health advocacy group, you recently obtained approval from the board to pursue a new set of strategic objectives. Among them: to achieve 80% community awareness of the group's name and purpose. Now you must turn to tactical planning. Which of the following tasks should you undertake
Improve the visibility of your headquarters building,
As the marketing director for a public health advocacy group, you recently obtained approval from the board to pursue a new set of strategic objectives. Among them: to achieve 80% community awareness of the group's name and purpose. Now you must turn to tactical planning. Which of the following tasks should you undertake
Improve the visibility of your headquarters building. AND Reserve advertising space in local newspapers for the next six months.? Recruit an assistant to write press releases.?
Every company, whether for-profit or not-for-profit, must plan. Otherwise, the company will find itself reacting to future events rather than proactively positioning itself to take advantage of future events. Which of the following statements is false in regards to strategic planning?
It is done after the company completes its tactical planning activities.
Porter's Five Forces is a model which identifies five competitive forces that influence planning strategies. In regards to this model, which one of the following statements is true?
It separates the forces into internal and external categories.???
A good marketing plan revolves around an efficient, flexible, and adaptable ____________.
Marketing strategy
As you plan to expand your children's clothing line internationally, you realize the necessity of considering the marketing environment. In particular, you are worried about potential new trade restrictions that could be imposed by other countries. Your concern primarily involves which dimension of the marketing environment?
Political-legal.
The BCG (Boston Consulting Group) matrix places strategic business units into which of the following four-quadrants:
Stars, Cash Cows, Question Marks and Dogs
If a firm decides to make a major investment in a firm that supplies raw materials to it, this would be an example of ______________ planning. If a university decides to add courses in ethics and business analysis to its master's degree program, this would be an example of ____________ planning.
Strategic, Tactical
Based on your understanding of Porter's Five Forces, you have identified potential new entrants as the key threat to your florist business. Choose the most accurate reason(s) for this situation.
The Internet has increased barriers to entry.?
What has five dimensions, is dynamic and ever changing, and drives the marketer's decisions about target markets and the marketing mix?
The marketing environment
You are the head of market strategies for a large media company, and you are responsible for leading the enterprise through its annual marketing planning process. Which one of the following statements is true about this process?
Your organization's objectives should be specific in describing what achievements are intended and desired.
The Original Penguin clothing brand which features a cute penguin with a tie wrapped around its neck has made a successful comeback to men's fashions since 2003. The brand is popular among young men and the company recently articulated its interest in generating a 10% increase in sales among college students in the United States for the next year. Which step in the marketing planning process best corresponds to the articulation of a 10% increase in sales?
determine organizational objectives
H&M stores have grown quickly and established a high share of the market by targeting women who like to wear the latest fashion trends and are price conscious. H&M determines their mix of product, pricing, promotion strategy, and retail store location based upon extensive research regarding consumer preferences and style trends. The identification of a target market and blending of marketing mix elements is known as the ________.
marketing strategy
The product manager for a line of mousetraps informs the board of directors at the company's annual meeting that the product has been classified as a "dog" according to the BCG market share/market growth matrix. This means the product:
should be withdrawn from the market or sold off as quickly as possible.
Jose is the social media manager for a children's museum and is making decisions about the best mix of social media tools to utilize in order to achieve the objective of increasing the number of family memberships by 10% during the year. Jose likes to use Twitter, Instagram, Facebook and Pinterest to reach the museum's desired target market but he spends most of his time developing the appropriate content and determining the frequency of posts. Which term best describes Jose's activity related to determining the use of social media?
tactical planning