MKTG 380: Quiz 2

​You are explaining the elements of your bookstore's marketing strategy to a summer intern. Which of the following do you include?

- A wide array of bestselling fiction and nonfiction titles - Prices competitive with online sellers - Advertising in local newspapers - A target market of adults 18-62

​When you open an organic food store, you intend to follow a second mover strategy. Choose the benefit(s) of this approach.

- You can observe and avoid the mistakes of Whole Foods and other innovative retailers - You may be able to improve upon the innovations of first movers

The rule of three refers to the theory that in any industry, the three strongest competitors dominate between ______________ percent of the competitive market.​

70 and 90

The term marketing mix describes:

A blend of the four strategic marketing elements to satisfy 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.

​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.

Marketing planning establishes the:

Basis for any marketing strategy

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

Which of the following best describes the activity of promotion?

Communicating between buyers and sellers

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

In SWOT analysis, situations where organizations are unable to capitalize on opportunities because of internal limitations are referred to as:

Constraints

​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

Effective relationship marketing often involves:

Databases to track customer preferences

Decisions involving transportation, warehousing, inventory control, and order processing relate to the _____ strategy component.

Distribution

Maxwell has been promoted to an upper-level management position at QVC. He will be involved in matters relating to transportation media, order processing, and development of marketing channels. Maxwell is involved in developing _____ strategies for the marketing team.

Distribution

After working as an analyst in the marketing department of a large consumer products firm, you have been promoted to marketing team lead for the company's leisure products line. In your new role, you will be responsible for the following major functional areas related to this product line: ​Inventory control Order processing Warehousing Logistics Within the context of the marketing mix, your responsibilities are primarily focused on

Distribution Strategy

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

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

In terms of the BCG Matrix, which of the following SBUs are characterized by earning only low market shares in low-growth markets?

Dogs

A customer-driven organization begins its marketing strategy with a detailed description of its target market.

False

A statement such as "to hit the 300 employee mark by the end of the year" is typically a part of a mission statement.

False

A strategic window is defined as a collection of situations where organizations are unable to capitalize on opportunities because of internal limitations.

False

According to the BCG matrix, cash cow businesses produce strong cash flows and invest heavily in the unit's own promotions and production capacity.

False

Data suggests that business owners who adopt the first mover strategy will always be long-term market winners.

False

Each strategic business unit (SBU) in a firm has to prepare its plans in collaboration with other units in the organization.

False

Marketing planning establishes the basis for a firm's overall strategic plan.

False

Matching an external opportunity with an internal weakness produces a situation known as leverage.

False

Organizations within the same industry usually have the same mission.

False

Relationship-building goals and strategies are seldom included in the plans of business firms.

False

Strategic business units (SBUs) of a diversified firm have common managers, resources, objectives, and competitors.

False

Strategic business units are key business units within small companies that offer only a few items to its customers.

False

Strategic planning has a minimal impact on a firm's destiny because it provides only short-term direction to the decision makers.

False

Strategies once implemented should not be changed even if the actual performance does not meet the desired results.

False

Supervisory managers tend to focus exclusively on strategic planning.

False

Tactical plans typically determine an organization's primary strategic objectives and exclude short-term actions from their purview.

False

The Internet has impacted business for new firms by increasing the barriers to market entry.

False

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.

False

The idea of first movers being completely replaced by second movers and the resulting disappearance of first movers from the marketplace is a myth.

False

The number of suppliers available to a manufacturer or retailer affects the bargaining power of buyers.

False

The planning process begins at the corporate level with the first step being the development of strategic objectives.

False

The position of an SBU along the horizontal axis indicates the annual growth rate of the market.

False

The rule of three states that the third major company in an industry has little chance of survival.

False

Which of the following would qualify as an example of a firm's weakness?

Inadequate financing capabilities

You are the project manager for this year's planning process for your firm. Unlike in the past, you intend to get input from a variety of stakeholders during the course of the planning process. You are doing this because:​

It will ensure that any ideas are considered and these stakeholders will become advocates for the final plan.

In addition to the four forces of the Five Forces Model, which of the following influences rivalry among competitors?

Lack of differentiation between products

Matching an internal strength with an external opportunity produces a situation known as:

Leverage

Strategic planning has a critical impact on a firm's destiny because it provides _____ to its decision makers.

Long-Term Direction

When a massive fuel hike affected the expenses of users of Cadmia significantly, Flare Inc. introduced automobiles that run on solar energy. The introduction of such automobiles indicates that Flare Inc.:

Made the best of a strategic window

The performance framework developed by the Boston Consulting Group (BCG) plots:

Market shares against market growth potential.

A good marketing plan revolves around an efficient, flexible, and adaptable ____________.​

Marketing Strategy

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 _____ is the organizational program for selecting a target market and satisfying customers 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

The basic objectives or goals of an organization are derived from its:

Mission Statement

Which of the following statements is indicative of a second mover strategy?

Observing closely the innovations of first movers and then improving on them

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

The process of anticipating future events and conditions and determining the best way to achieve organizational objectives is known as:

Planning

Business strategist Michael E. Porter identified five competitive forces that influence _____ in a model called Porter's Five Forces.

Planning Strategies

A bill passed by the government stipulates the mandatory use of revised engine mapping and particulate filters in the automobile industry. Which of the following factors of the marketing environment has affected the automobile industry in this scenario?

Political-Legal

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.

Political-Legal

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

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

Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will:

Reduce the treat of new entrants.

In marketing, the term product:

Refers to a broad concept encompassing the satisfaction of consumer needs.

Carmen is a marketer for a global consumer products company. She is designing a promotional campaign for a foreign market and wants to ensure that the promotional campaign is clearly understood by the target consumers. She is also taking special care to see that the campaign is free from controversies and does not inadvertently offend anyone. In this scenario, Carmen is specifically trying to take into account variables of the country's _____ environment.

Social-Cultural

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

Microsoft Windows generates considerable income for its parent company but is expensive to support. However, the expense is acceptable because Windows is the world's dominant operating system. Based on this information, Windows would be categorized under the BCG market share/market growth matrix as a

Star

Microsoft Windows generates considerable income for its parent company but is expensive to support. However, the expense is acceptable because Windows is the world's dominant operating system. Based on this information, Windows would be categorized under the BCG market share/market growth matrix as a:

Star

​With respect to the BCG matrix, which one of the following generates considerable income, but requires sizeable investments to underwrite further growth in the future?

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

The BCG (Boston Consulting Group) matrix places strategic business units into which of the following four-quadrants:​

Stars, Cash Cows, Question Marks and Dogs

ADA Inc. stopped its production of oral care goods after determining apparel production to be its new primary objective. This is a direct result of the _____ planning process at ADA Inc.

Strategic

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

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

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

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

The limited occasions when the key requirements of a market and the particular competencies of a firm best fit together are referred to as:

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

All planning strategies have the goal of creating:

Sustainable competitive advantage

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

An event management company decided to use radio advertising in order to promote an upcoming music festival. The executives of the company suggested various activities that could be used for the radio campaign. These activities are a part of the company's _____.

Tactical Planning Efforts

The group of people to whom a firm directs its marketing efforts and ultimately its merchandise is known as its _____ market.

Target

Jose is part of a team that is analyzing current demographic trends. The team will make a recommendation concerning the groups of consumers toward whom the firm should direct its new marketing effort. Jose's team is involved in which of the following elements of the firm's marketing strategy?

Target Market

​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?

Target Market

Bell Weddings was the company that pioneered the wedding planning industry. The owners realized that customizing weddings to the wishes of the families, taking charge of the responsibilities, and creating a day that is memorable for clients was an incredible business venture. The case of Bell Weddings illustrates the value of _____.

The First Mover Strategy

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

An example of a threat to a firm discovered by a SWOT analysis might be:

The entry of new competitors in the industry

Decisions relating to the product strategy primarily revolve around _____.

The features of the products being released in the market

Which of the following would qualify as an example of a firm's weakness?

The firm's failure to pay its taxes on time leading to a poor reputation in the market.

Business strategies are impacted by the widespread use of the Internet. Which of the following is true with respect to its impact?

The internet has reduced barriers to market entry

An automobile manufacturer is dependent on a single supplier for tires. Based on this information, which of the following statements is true?

The supplier has significant bargaining power.

A shoe manufacturer has multiple suppliers for leather. Based on this information, which of the following statements is true?

The suppliers have lesser bargaining power than the buyer

Compared to other organization personnel, more time is devoted to long-range strategic planning by the:

Top Management

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.

Treat

A SWOT analysis helps planners compare internal organizational strengths and weaknesses with external opportunities and threats.

True

A marketing mix should be an ever-changing combination of variables to achieve success.

True

A mission can be defined as an essential purpose that differentiates one company from others.

True

A product strategy includes decisions about customer service, package design, brand names, trademarks, patents, and warranties.

True

A target market is a group of customers toward whom a firm directs its marketing efforts.

True

According to the BCG matrix, dog products can be sold to other firms, where they are a better fit.

True

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.

True

According to the BCG matrix, stars require considerable inflows of cash to finance further growth.

True

Adjustments in the mission statement of an organization reflect changing business environments and management philosophies.

True

All planning strategies have the goal of creating a sustainable competitive advantage for a firm which other companies cannot imitate.

True

An organization lays out its basic objectives, or goals, in its complete mission statement.

True

An organizational objective should specify time frames stating "Our organization aims to generate a 15 percent profit over the next 24 months."

True

Apple iTunes is an example of a successful first mover.

True

As the senior vice-president of marketing, Naomi will be closely involved in her firm's strategic planning.

True

Each SBU pursues its own distinct mission and often develops its own plans independently.

True

Each element of the marketing mix—product, price, distribution, and promotion—is a subset of the overall marketing strategy.

True

Employees at middle-management levels engage themselves in business unit budgets and divisional policies and procedures.

True

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.

True

In a SWOT analysis, marketers face a problem when environmental threats attack their organization's weaknesses.

True

Marketers put the marketing strategy into action in order to monitor performance to ensure that objectives are being achieved.

True

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.

True

Middle and supervisory-level managers spend less time as compared to CEOs on planning activities.

True

Organizational resources include the capabilities of the firm's production, marketing, finance, technology, and employees.

True

Planning often is classified on the basis of its scope or breadth.

True

Porter's Five Forces are potential new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products, and rivalry among competitors.

True

Strategic business units are key business units within small companies that offer only a few items to it customers:

True

Tactical planning usually involves the production of quarterly and semiannual plans, along with divisional budgets, policies, and procedures.

True

Targeting consumers in specific global markets represents a challenge.

True

The five dimensions of the marketing environment are competitive, political-legal, economic, technological, and social-cultural.

True

The planning process creates a blueprint that everyone in the organization must follow in order to achieve the organizational objectives.

True

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.

True

To be most effective, the planning process should include input from a wide range of sources both internal and external to the organization.

True

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.

True

With increased availability of information, rivalry heats up among competitors who try to differentiate themselves from the crowd.

True

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 treat of substitute products is high