Chapter 22
Pulling It All Together: The Strategic Marketing Process
Multiple Choice Questions
1. | To overcome the problem that occurs during product development when consumers say one thing in a market research study and do another when facing a supermarket shelf, the Warm Delights team ran marketing experiments that involved all of the following except
A. | measuring the results of the Warm Delights experiments. |
B. | repeating the Warm Delights marketing experimentation process. |
C. | keeping the initial Warm Delights packaging, which communicated its cooking convenience to prospective buyers. |
D. | putting a Warm Delights prototype dessert in a store. |
E. | improving the Warm Delights prototype. |
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2. | The launch of a new cereal typically costs up to $30 million and usually involves
A. | replacing one of more than 300 competing breakfast cereals already on a supermarket shelf. |
B. | a minimum of three attempts before it is successfully launched. |
C. | a tie-in promotion with a major motion picture or toy. |
D. | steps to counteract the promotional efforts of a competitor's new cereal. |
E. | obtaining FDA approval for its convenience claims. |
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3. | Recently, General Mills launched all of the following products except
A. | Nature Valley Protein granola. |
B. | Trix with four colors. |
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4. | In a five-year study, researchers conducted in-depth analysis of 160 companies and more than 200 management tools and techniques. What was their principal finding?
A. | Supply chain management was the most critical element in stellar business performance. |
B. | Customer relationship management was more effective than product development. |
C. | The Internet was more effective in terms of long-term sales success than the use of retail outlets or direct marketing tactics such as catalogs. |
D. | Three major management tools—supply chain management, customer relationship management, and the use of an intranet—were equally beneficial in terms of business performance. |
E. | Individual management tools and techniques had no direct relationship to superior business performance in the companies that were studied. |
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5. | Four basic business and management practices are what matter—"what really works," to use the phrase of the researchers who studied more than 200 management tools and techniques. These are: (1) __________, (2) execution, (3) culture, and (4) structure.
B. | charismatic leadership |
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6. | Four basic business and management practices are what matter—"what really works," to use the phrase of the researchers who studied more than 200 management tools and techniques. These are: (1) strategy, (2) __________, (3) culture, and (4) structure.
A. | charismatic leadership |
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7. | Four basic business and management practices are what matter—"what really works," to use the phrase of the researchers who studied more than 200 management tools and techniques. These are: (1) strategy, (2) execution, (3) __________, and (4) structure.
A. | charismatic leadership |
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8. | Four basic business and management practices are what matter—"what really works," to use the phrase of the researchers who studied more than 200 management tools and techniques. These are: (1) strategy, (2) execution, (3) culture, and (4) __________.
B. | charismatic leadership |
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9. | Which of the following statements about the four basic business and management practices that researchers identified is most accurate?
A. | Strategy and structure are more important for success than culture and execution. |
B. | Culture and execution are more important for success than strategy and structure. |
C. | In order for a company to be successful, it must use all four strategies. |
D. | In terms of the basic business and management practices, the practice itself is less important than flawless execution of the one(s) the company does use. |
E. | No strategy can work unless every stakeholder buys into it 100 percent. |
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10. | Reflecting on the research study of over 200 management tools and techniques, which of the following companies is an example of a firm that excels based on a "clearly stated, focused strategy"?
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11. | Reflecting on the research study of over 200 management tools and techniques, which of the following companies is an example of a firm that excels in terms of operational execution?
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12. | Toyota is generally acknowledged as the best in the world in revolutionizing the design and manufacture of autos. Toyota managers created the doctrine of kaizen, or
A. | continuous improvement. |
C. | make haste, not waste. |
D. | continuous production. |
E. | continuous communication. |
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13. | Toyota is generally acknowledged as the best in the world in revolutionizing the design and manufacture of autos. Toyota managers created the doctrine of __________, or continuous improvement.
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14. | Reflecting on the research study of over 200 management tools and techniques, which of the following companies is an example of a firm that excels based on a performance-oriented culture?
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15. | Reflecting on the research study of over 200 management tools and techniques, which of the following companies is an example of a firm that excels based on its organizational structure?
C. | Lockheed Martin's Skunk Works |
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16. | Lockheed Martin's Skunk Works is a leader in delivering world-class aircraft. About 50 engineers and designers and 100 expert machinists closely follow this guideline for organizational structure and implementation: Use a small number of good people who
A. | implement the idea that "it is better to ask forgiveness than permission." |
B. | know their jobs, as well as the ones around them. |
C. | can talk to anyone in the organization to solve a problem. |
D. | recognize that everyone should have a voice in decision making. |
E. | never offer excuses, only explanations. |
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17. | The mathematical function that relates the expense of marketing effort to the marketing results obtained is referred to as
B. | market share profitability. |
E. | a sales response function. |
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18. | Economists would most likely recommend that marketing managers allocate the firm's marketing resources to the markets and products where
A. | the firm has its greatest sales. |
B. | an SBU is considered a cash cow. |
C. | there is the greatest current market share and the fastest industry growth rate. |
D. | the excess of incremental revenues over incremental costs is greatest. |
E. | total revenue equals total cost. |
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19. | What is the assumed shape of the graph of the sales response function?
C. | a straight, downward-sloping line, starting in the upper left and extending to the lower right of the graph |
D. | a straight, upward-sloping line, starting in the lower left and extending to the upper right of the graph |
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20. | The relationship of annual marketing effort to annual sales revenue is assumed to be __________ of the sales response function.
A. | a horizontal straight line, where sales revenues stay the same regardless of the marketing effort |
B. | a U-shaped curve, where sales revenues are at a maximum at either end |
C. | an upside-down U-shaped curve, where sales revenues are at a maximum in the middle |
D. | an S-shaped curve, which shows that an additional marketing effort in the midrange of the curve results in far greater increases of sales revenue than at either end of the curve |
E. | a rising straight line, where sales revenue continuously rises as the marketing effort rises |
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21. | The firm's annual marketing effort, such as advertising, personal selling, sales promotion, direct marketing, and public relations expenses is __________ in a sales response function graph.
A. | plotted on the vertical (Y) axis |
B. | plotted on the horizontal (S) axis |
C. | plotted on the vertical (Z) axis |
E. | plotted on the horizontal (X) axis |
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22. | As the annual marketing effort increases in a sales response function graph, so does the resulting annual sales revenue, which is
A. | plotted on the vertical (Y) axis. |
B. | plotted on the horizontal (S) axis. |
C. | plotted on the vertical (Z) axis. |
E. | plotted on the horizontal (X) axis. |
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23. | You have been told that a company increased its marketing effort from $2 million to $5 million, resulting in increased sales revenue from $12 million to $21 million. Calculate the company's ratio of incremental sales revenue to incremental marketing effort.
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24. | You have been told that a company increased its marketing effort from $3 million to $5 million, resulting in increased sales revenue from $10 million to $20 million. Calculate the company's ratio of incremental sales revenue to incremental marketing effort.
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25. | The essence of resource allocation is:
A. | Company resources are allocated effectively in the strategic marketing process by converting marketing actions into marketing information. |
B. | Individual management tools and techniques that a firm chooses to use are less important than flawless execution of the ones it does use. |
C. | Sometimes you have to break the rules to spend every dollar in a budget. |
D. | Put incremental resources where the incremental returns are greatest over the foreseeable future. |
E. | Individual management tools and techniques have no direct relationship to superior business performance in the companies. |
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26. | Share point refers to
A. | the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself. |
B. | the percentage points of market share used as the common basis of comparison in an analysis to allocate marketing resources effectively for different product lines within the same firm. |
C. | the sales revenue generated by different products within the firm expressed as a percentage. |
D. | a measure of the quantitative value or trend of a marketing activity or result divided by the total marketing effort of the firm. |
E. | the total number of a product sold in one year compared to the cumulative total sold since its introduction, expressed as a percentage. |
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27. | Percentage points of market share used as the common basis of comparison in an analysis to allocate marketing resources effectively for different product lines within the same firm are referred to as
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28. | New Balance has no celebrity endorsers and does minimal advertising, yet the athletic shoe brand has about 10 percent of the sales in the athletic footwear market. The marketing team at New Balance estimates that to increase sales to 11 percent of the market will require an increase of $25 million in marketing effort and will result in an increase of its footwear sales of an additional $15 million. This 1 percent incremental increase from 10 to 11 percent is referred to as
B. | marginal market share. |
C. | a sales response margin. |
E. | a direct response rate. |
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29. | When using share points to make marketing resource allocation decisions, marketing managers must estimate: (1) __________, (2) the revenues associated with each point of market, (3) the contribution to overhead and profit (or gross margin) of each share point, and (4) possible cannibalization effects on other products in the line.
A. | the market share for the product |
B. | the number of market segments |
C. | the total production costs |
D. | the total financial resources available for a sustained marketing effort |
E. | the stage of the product in its product life cycle |
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30. | When using share points to make marketing resource allocation decisions, marketing managers must estimate: (1) the market share for the product, (2) __________, (3) the contribution to overhead and profit (or gross margin) of each share point, and (4) possible cannibalization effects on other products in the line.
A. | total production costs |
B. | number of market segments |
C. | stage of the product in its product life cycle |
D. | the total financial resources available for a sustained marketing effort |
E. | the revenues associated with each point of market share |
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31. | When using share points to make marketing resource allocation decisions, marketing managers must estimate: (1) the market share for the product, (2) the revenues associated with each point of market share, (3) __________, and (4) possible cannibalization effects on other products in the line.
A. | total production costs |
B. | number of market segments |
C. | stage of the product in its product life cycle |
D. | the contribution to overhead and profit of each share point |
E. | the total financial resources available for a sustained marketing effort |
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32. | During the planning phase of the strategic marketing process, the marketing manager will
A. | design the marketing organization. |
C. | develop marketing schedules. |
D. | construct managerial bonus plans. |
E. | set market and product goals. |
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33. | Which of the following pieces of information is used in a SWOT analysis, the first step of the planning phase of the strategic marketing process?
A. | marketing return on investment |
B. | market share for the product |
C. | trends for industry and competitors |
D. | revenues associated with each point of market share |
E. | possible cannibalization effects on other products in the line |
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34. | Which of the following pieces of information is used in a SWOT analysis, the first step of the planning phase of the strategic marketing process?
A. | marketing return on investment |
B. | projected future sales, expenses, and profits |
C. | market share for the product |
D. | revenues associated with each point of market share |
E. | possible cannibalization effects on other products in the line |
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35. | Which of the following pieces of information is used in market-product focus and goal setting, the second step of the planning phase of the strategic marketing process?
A. | marketing return on investment |
B. | revenues associated with each point of market share |
C. | trends for industry and competitors |
D. | possible cannibalization effects on other products in the line |
E. | market potential studies |
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36. | Which of the following pieces of information is used in market-product focus and goal setting, the second step of the planning phase of the strategic marketing process?
A. | market-product grids with targets |
B. | marketing return on investment |
C. | revenues associated with each point of market share |
D. | trends for industry and competitors |
E. | possible cannibalization effects on other products in the line |
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37. | Which of the following pieces of information is used in market-product focus and goal setting, the second step of the planning phase of the strategic marketing process?
A. | marketing return on investment |
B. | perceptual maps and positioning statements |
C. | revenues associated with each point of market share |
D. | possible cannibalization effects on other products in the line |
E. | trends for industry and competitors |
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38. | Which of the following information is used in the development of the marketing program, the third step of the planning phase of the strategic marketing process?
A. | marketing return on investment |
B. | market-product grids with target segments and product groupings |
C. | trends for industry and competitors |
E. | market potential studies |
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39. | Which of the following information is used in the development of the marketing program, the third step of the planning phase of the strategic marketing process?
A. | marketing return on investment |
B. | market-product grids with target segments and product groupings |
C. | detailed plans to execute the marketing program |
D. | market potential studies |
E. | trends for industry and competitors |
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40. | The actions taken in a situation (SWOT) analysis or Step 1 of the planning phase include: (1) __________, (2) analyze competitors, (3) assess own company, and (4) research customers.
A. | set market and product goals |
C. | find points of difference |
E. | identify industry trends |
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41. | The actions taken in a situation (SWOT) analysis or Step 1 of the planning phase include: (1) identify industry trends, (2) __________, (3) assess own company, and (4) research customers.
A. | set market and product goals |
C. | find points of difference |
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42. | The actions taken in a situation (SWOT) analysis or Step 1 of the planning phase include: (1) identify industry trends, (2) analyze competitors, (3) assess own company, and (4) __________.
A. | set market and product goals |
D. | find points of difference |
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43. | The information needed in a situation (SWOT) analysis or Step 1 of the planning phase includes: (1) trends for industry and competitors and (2) __________.
A. | project future sales, expenses, and profits |
B. | market potential studies |
D. | market-product grids with target segments and product groupings |
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44. | The actions taken during market product focus and goal setting, Step 2 of the planning phase, include: (1) __________, (2) select target markets, (3) find points of difference, and (4) position the product.
A. | identify industry trends |
C. | set market and product goals |
D. | develop the program's marketing mix |
E. | develop the budget by estimating revenues, expenses, and profits |
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45. | The actions taken during market product focus and goal setting, Step 2 of the planning phase, include: (1) set market and product goals, (2) __________, (3) find points of difference, and (4) position the product.
A. | identify industry trends |
D. | develop the program's marketing mix |
E. | develop the budget by estimating revenues, expenses, and profits |
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46. | The actions taken during market product focus and goal setting, Step 2 of the planning phase, include: (1) set market and product goals, (2) select target markets, (3) __________, and (4) position the product.
A. | find points of difference |
B. | identify industry trends |
D. | develop the program's marketing mix |
E. | develop the budget by estimating revenues, expenses, and profits |
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47. | The actions taken during market product focus and goal setting, Step 2 of the planning phase, include: (1) set market and product goals, (2) select target markets, (3) find points of difference, and (4) __________.
A. | identify industry trends |
C. | develop the program's marketing mix |
D. | develop the budget by estimating revenues, expenses, and profits |
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48. | The information needed in market product focus and goal setting, Step 2 of the planning phase, includes: (1) __________, (2) market-product grids with targets, and (3) perceptual maps and positioning statements.
A. | market potential studies |
B. | trends for industry and competitors |
D. | detailed plans to execute the marketing program |
E. | projected future sales, expenses, and profits |
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49. | The information needed in market product focus and goal setting, Step 2 of the planning phase, includes: (1) market potential studies, (2) market-product grids with targets, and (3) __________.
A. | trends for industry and competitors |
C. | detailed plans to execute the marketing program |
D. | perceptual maps and positioning statements |
E. | projected future sales, expenses, and profits |
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50. | The actions taken in the development of the marketing program, Step 3 of the planning phase, include: (1) develop the program's marketing mix actions and (2) __________.
B. | identify industry trends |
D. | find points of difference |
E. | develop the budget by estimating revenues, expenses, and profits |
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51. | The information needed for the marketing program, Step 3 of the planning phase, includes: (1) __________ and (2) detailed plans to execute the marketing program.
C. | market-product grids with targets |
D. | projected future sales, expenses, and profits |
E. | market potential studies |
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52. | The information needed for the marketing program, Step 3 of the planning phase, includes: (1) marketing mix actions and (2) __________.
B. | market-product grids with targets |
C. | detailed plans to execute the marketing program |
D. | projected future sales, expenses, and profits |
E. | trends for industry and competitors |
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53. | The actions taken during the implementation phase of the strategic marketing process include: (1) __________, (2) design the marketing organization, (3) develop schedules, and (4) execute the marketing program.
D. | find points of difference |
E. | develop the budget by estimating revenues, expenses, and profits |
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54. | The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources, (2) __________, (3) develop schedules, and (4) execute the marketing program.
B. | design the marketing organization |
D. | find points of difference |
E. | develop the budget by estimating revenues, expenses, and profits |
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55. | The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources, (2) design the marketing organization, (3) __________, and (4) execute the marketing program.
D. | find points of difference |
E. | develop the budget by estimating revenues, expenses, and profits |
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56. | The actions taken during the implementation phase of the strategic marketing process include: (1) obtain resources, (2) design the marketing organization, (3) develop schedules, and (4) __________.
C. | find points of difference |
D. | execute the marketing program |
E. | develop the budget by estimating revenues, expenses, and profits |
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57. | Which of the following information is used in the implementation phase of the strategic marketing process?
A. | marketing return on investment |
B. | a time-based agenda and an action item list |
C. | revenues associated with each point of market share |
D. | trends for industry and competitors |
E. | possible cannibalization effects on other products in the line |
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58. | Which of the following information is used in the implementation phase of the strategic marketing process?
A. | corporate return on investment |
B. | revenues associated with each point of market share |
C. | trends for industry and competitors |
D. | possible cannibalization effects on other products in the line |
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59. | Which of the following information is used in the implementation phase of the strategic marketing process?
A. | marketing return on investment |
B. | marketing research reports |
C. | revenues associated with each point of market share |
D. | trends for industry and competitors |
E. | possible cannibalization effects on other products in the line |
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60. | The information needed for the implementation phase of the strategic marketing process includes: (1) __________, (2) organizational charts, and (3) marketing research reports.
A. | a time-based agenda and an action item list |
C. | market-product grids with target segments and product groupings |
D. | detailed plans to execute the marketing program |
E. | projected future sales, expenses, and profits |
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61. | The information needed for the implementation phase of the strategic marketing process includes: (1) a time-based agenda and an action item list to conduct a meeting, (2) __________, and (3) marketing research reports.
B. | market-product grids with target segments and product groupings |
D. | detailed plans to execute the marketing program |
E. | projected future sales, expenses, and profits |
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62. | The information needed for the implementation phase of the strategic marketing process includes: (1) a time-based agenda and an action item list, (2) organizational charts, and (3) __________.
A. | marketing research reports |
C. | market-product grids with targets |
D. | detailed plans to execute the marketing program |
E. | projected future sales, expenses, and profits |
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63. | The actions taken during the evaluation phase of the strategic marketing process include: (1) __________ and (2) exploit positive deviations and correct negative ones.
A. | find points of difference |
B. | execute the marketing program |
C. | compare results with plans to identify deviations |
D. | track sales and revenues and compare with competitors |
E. | develop the budget by estimating revenues, expenses, and profits |
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64. | The actions taken during the evaluation phase of the strategic marketing process include: (1) compare results with plans to identify deviations and (2) __________.
A. | find points of difference |
B. | execute the marketing program |
C. | track sales and revenues and compare with competitors |
D. | develop the budget by estimating revenues, expenses, and profits |
E. | exploit positive deviations and correct negative ones |
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65. | The information needed for the evaluation phase of the strategic marketing process includes: (1) __________ and (2) action memos to correct problems and exploit opportunities.
B. | market-product grids with targets |
C. | detailed plans to execute the marketing program |
D. | tracking reports to measure results |
E. | projected future sales, expenses, and profits |
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66. | Which of the following information is used in the evaluation phase of the strategic marketing process?
A. | marketing return on investment |
B. | tracking reports to measure results |
C. | revenues associated with each point of market share |
D. | trends for industry and competitors |
E. | possible cannibalization effects on other products in the line |
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67. | Which of the following information is used in the evaluation phase of the strategic marketing process?
A. | action memos to correct problems and exploit opportunities |
B. | memos assigning responsibilities for actions and deadlines |
C. | revenues associated with each point of market share |
D. | trends for industry and competitors |
E. | possible cannibalization effects on other products in the line |
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68. | A(n) __________ output report would be associated with the planning phase of the strategic marketing process.
E. | corrective action memo |
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69. | Which of the following output reports is used in the planning phase of the strategic marketing process?
A. | marketing plans that define goals |
B. | action memos that tell who is to do what |
C. | action memos that tell who is to do what by when |
D. | corrective action memos |
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70. | Which of the following output report would be associated with the planning phase of the strategic marketing process?
A. | performance reviews for key personnel |
B. | marketing plans that define goals with the pertinent marketing metrics and the marketing mix strategies to achieve them |
C. | action memos that tell who is to do what by when |
D. | corrective action memos, triggered by comparing results with plans, often from the firm's marketing dashboards and metrics |
E. | sales reports using the firm's marketing metrics and dashboards |
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71. | Which of the following output reports is used in the implementation phase of the strategic marketing process?
A. | marketing plans that define goals |
B. | projections of sales and expenses |
C. | action memos that tell who is to do what by when |
D. | corrective action memos |
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72. | Each phase of the strategic marketing process creates its own unique type of output report. Which of the following would be associated with the implementation phase?
A. | performance reviews for key personnel |
B. | corrective action memos, triggered by comparing results with plans, often from the firm's marketing dashboards and metrics |
C. | sales reports using the firm's marketing metrics and dashboards |
D. | action memos that tell who is to do what by when |
E. | marketing plans that define goals with the pertinent marketing metrics and the marketing mix strategies to achieve them |
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73. | Which of the following output reports is used in the evaluation phase of the strategic marketing process?
A. | marketing plans that define goals |
B. | action memos that tell who is to do what |
C. | action memos that tell who is to do what by when |
E. | corrective action memos |
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74. | Each phase of the strategic marketing process creates its own unique type of output report. Which of the following would be associated with the evaluation phase?
A. | performance reviews for key personnel |
B. | corrective action memos, triggered by comparing results with plans, often using the firm's marketing metrics and displayed in marketing dashboards |
C. | sales reports using the firm's marketing metrics and dashboards |
D. | action memos that tell who is to do what by when |
E. | marketing plans that define goals with the pertinent marketing metrics and the marketing mix strategies to achieve them |
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75. | A survey of 800 executives led several researchers to suggest that "a company undertaking a major strategic initiative to enhance its innovation and product-development capabilities" should use two kinds of metrics: These consist of __________ metrics.
B. | corporate and stakeholder |
D. | sociocultural and competitive |
E. | economic and technological |
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76. | A recent survey showed that firms used two different kinds of metrics when measuring results and measuring efforts that go into new-product development. These consist of output and input metrics. Which of the following is an output metric?
A. | number of ideas or concepts in the pipeline |
B. | R&D spending as a percentage of sales |
C. | return on assets (ROA) for existing products or services |
D. | customer satisfaction with new products or services |
E. | number of R&D projects |
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77. | A recent survey showed that firms used two different kinds of metrics when measuring results and measuring efforts that go into new-product development. These consist of output and input metrics. Which of the following is an input metric?
A. | number of ideas or concepts in the new-product pipeline |
B. | number of new products or services launched |
C. | return on assets (ROA) for existing products or services |
D. | customer satisfaction with new products or services |
E. | revenue growth due to new products or services |
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78. | A recent survey showed that firms used two different kinds of metrics when measuring results and measuring efforts that go into new-product development. These consist of output and input metrics. Which of the following is an input metric?
A. | number of new products or services launched |
B. | R&D spending as a percentage of sales |
C. | return on assets (ROA) for existing products or services |
D. | customer satisfaction with new products or services |
E. | revenue growth due to new products or services |
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79. | Long-range marketing plans cover marketing activities
A. | from one quarter to the next. |
B. | from six months to one year. |
D. | two to five years into the future. |
E. | 5 to 10 years into the future. |
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80. | Marketing plans that cover marketing activities from two to five years into the future are referred to as
C. | generic marketing strategies. |
D. | short-term marketing plans. |
E. | long-range marketing plans. |
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81. | Annual __________ are documents that deal with the marketing goals and strategies for a product, product line, or entire firm for a single year.
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82. | For Campbell's, the annual planning cycle typically starts with a detailed marketing research study of current users and ends after __________ weeks with the approval of the plan by the division general manager.
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83. | Regardless of the product or industry involved, the strategy that a firm adopts to achieve a competitive advantage is referred to as
A. | a generic business strategy. |
B. | an annual business plan. |
C. | a long-range marketing plan. |
D. | a marketing action program. |
E. | a synergy analysis framework. |
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84. | A generic business strategy is a strategy that
A. | seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
B. | can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage. |
C. | describes an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals. |
D. | states the organization's function in society, often identifying its customers, markets, products, and technologies. |
E. | helps a firm search for growth opportunities from among current and new markets as well as current and new products. |
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85. | According to Porter's generic business strategy framework, there are two fundamental alternatives a firm can use to seek a competitive advantage. One of these is to
A. | become the high-cost producer within the markets in which it competes. |
B. | adopt a "me too" strategy to achieve competitive parity. |
C. | become the low-cost producer within the markets in which it competes. |
D. | state its function in society to differentiate itself from competitors. |
E. | differentiate itself from competitors by developing similar marketing programs. |
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86. | Porter's four generic business strategies involve combinations of: (1) __________ and (2) a stress on costs versus product differentiation.
A. | organizational structure |
B. | degree of geographical distribution |
C. | investment in research and development |
D. | relative number of products in a product line |
E. | competitive scope or the breadth of the target markets |
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87. | Porter's four generic business strategies involve combinations of: (1) competitive scope or the breadth of the target markets and (2) __________.
A. | organizational structure |
B. | degree of geographical distribution |
C. | investment in research and development |
D. | a stress on costs versus product differentiation |
E. | relative number of products in a product line |
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88. | Porter's four generic business strategies are __________, cost focus, differentiation focus, and cost leadership.
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89. | Porter's four generic business strategies are differentiation, __________, differentiation focus, and cost leadership.
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90. | Porter's four generic business strategies are differentiation, cost focus, __________, and cost leadership.
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91. | One of Porter's generic business strategies that focuses on reducing expenses and, in turn, lowers product prices while targeting a broad array of market segments, is referred to as a
A. | differentiation focus strategy. |
C. | differentiation strategy. |
D. | cost leadership strategy. |
E. | supply focus strategy. |
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92. | A cost leadership strategy refers to one of Porter's generic business strategies that
A. | involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments. |
B. | focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. |
C. | requires products to have significant points of difference to target one or only a few market segments. |
D. | requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. |
E. | seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
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93. | According to Porter's four generic business strategies framework, a __________ strategy focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments.
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94. | In the early 1900s, Henry Ford revolutionized the automobile industry by developing production lines and mass-producing the Ford Model T automobile. By heavily reducing production costs, Ford made the Model T affordable for the average American family. What generic business strategy did Ford use to gain a competitive advantage in the automobile market?
A. | a cost leadership strategy |
B. | a differentiation strategy |
D. | a differentiation focus strategy |
E. | a limited production strategy |
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95. | One of Porter's generic business strategies that requires a product to have significant points of difference to charge a higher price while targeting a broad array of market segments is referred to as a
A. | differentiation focus strategy. |
C. | cost leadership strategy. |
D. | differentiation strategy. |
E. | supply focus strategy. |
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96. | Differentiation strategy refers to one of Porter's generic business strategies that
A. | involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments. |
B. | requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. |
C. | focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. |
D. | requires products to have significant points of difference to target one or only a few market segments. |
E. | seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
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97. | Delphi Automobile Systems manufactures and sells satellite communications systems for automobiles that connect you and your car to 24-hour-a-day emergency service, direct you to a destination, and enable you to order a movie while on the road. Delphi Automobile Systems most likely uses
A. | a cost leadership strategy. |
B. | a cost focus strategy. |
C. | a differentiation focus strategy. |
D. | an innovation strategy. |
E. | a differentiation strategy. |
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98. | Many people are concerned about "eating healthy," but many of these same people still grab lunch at fast-food restaurants because the restaurants are convenient and they like cheeseburgers. Burger King has created a veggie burger that "tastes like the real thing without all the fat." Burger King is most likely using a __________ to attract this large market that encompasses many different segments.
A. | cost leadership strategy |
C. | differentiation strategy |
D. | differentiation focus strategy |
E. | service focus strategy |
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99. | One of Porter's generic business strategies that involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments is referred to as a __________ strategy.
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100. | A cost focus strategy refers to one of Porter's generic business strategies that
A. | focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. |
B. | requires products to have significant points of difference to target one or only a few market segments. |
C. | requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. |
D. | involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments. |
E. | seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
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101. | Office Max provides low product prices for products strictly classified as office supplies. In terms of Porter's generic business strategy, Office Max is most likely using a __________ strategy.
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102. | One of Porter's four generic business strategies that requires products to have significant points of difference to target one or only a few market segments is referred to as a __________ strategy.
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103. | Differentiation focus strategy refers to one of Porter's generic business strategies that
A. | involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments. |
B. | focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments. |
C. | requires products to have significant points of difference to target one or only a few market segments. |
D. | requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments. |
E. | seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
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104. | Hard Candy is a cosmetics company that markets the Palm Palette—all the makeup a "girl-on-the-go" needs without a cumbersome makeup bag. It comes in three shades—glam, funky, and girlies. Hard Candy targets women who are 20-somethings. Which one of Porter's generic business strategies is Hard Candy most likely using?
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105. | Hyundai Motor America (HMA) became the first automaker to offer consumers an Internet parts ordering system. The system was targeted only to current Hyundai owners and gave Hyundai the ability to collect a vast amount of customer data about people who buy its cars. Which of Porter's generic business strategies did Hyundai most likely use when it launched its Internet parts website?
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106. | Volkswagen achieved spectacular success in the late 1990s by targeting the "nostalgia" segment, 35- to 54-year-old baby boomers, with its technology-laden New Beetle. Which of Porter's generic business strategies did Volkswagen most likely use to launch the New Beetle?
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107. | Seeking opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies is referred to as
A. | differentiation analysis. |
D. | sales response analysis. |
E. | competitive grid analysis. |
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108. | Synergy analysis refers to
A. | identifying a company's potential strengths, weaknesses, opportunities, and threats. |
B. | relating the expense of marketing effort to the marketing results obtained. |
C. | using percentage points of market share as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm. |
D. | using a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization. |
E. | seeking opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies. |
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109. | Synergy analysis seeks opportunities by finding the optimum balance between
A. | the needs of the manufacturer versus the needs of the consumer. |
B. | the desire for profit versus responsibility to society as a whole. |
C. | the expense of marketing effort versus the marketing results obtained. |
D. | a firm's market segments and its product groupings. |
E. | marketing efficiencies versus R&D-manufacturing efficiencies. |
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110. | Synergy analysis incorporates two business analysis tools, which are __________ and the market-product grid framework.
A. | diversification analysis |
B. | Porter's generic business strategy framework |
D. | Porter's competitive advantage |
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111. | Synergy analysis incorporates two business analysis tools, which are diversification analysis and
A. | Porter's generic business strategy framework. |
B. | the market-product grid framework. |
D. | Porter's competitive advantage. |
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112. | The five alternative marketing strategies that can be identified by market-product grids are __________, market specialization, product specialization, selective specialization, and full coverage.
B. | selective distribution |
D. | market-product concentration |
E. | new-product specialization |
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113. | There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration, __________, product specialization, selective specialization, and full coverage.
B. | selective distribution |
E. | new-product specialization |
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114. | There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration, market specialization, __________, selective specialization, and full coverage.
A. | selective distribution |
B. | product specialization |
E. | new-product specialization |
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115. | There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration, market specialization, product specialization, __________, and full coverage.
A. | selective distribution |
D. | new-product specialization |
E. | selective specialization |
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116. | There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration, market specialization, product specialization, selective specialization, and
C. | market specialization. |
D. | selective specialization. |
E. | new-product specialization. |
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117. | Based on a market-product grid framework, which marketing strategy involves developing a single product for a single market?
B. | market-product concentration |
D. | product specialization |
E. | selective specialization |
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118. | Loving Care Pets manufactures dog food specifically created for puppies under three months of age. In terms of the market-product grid framework, Loving Care Pets is a small firm without sustainable comparative advantages in marketing or production efficiencies. Loving Care Pets is using a __________ strategy.
A. | market-product concentration |
C. | product specialization |
D. | selective specialization |
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119. | Based on a market-product grid framework, which marketing strategy focuses on a single market segment but adds additional product lines?
C. | product specialization |
D. | selective specialization |
E. | market-product concentration |
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120. | Based on a market-product grid framework, which marketing strategy would most likely offer the greatest marketing synergies or efficiencies?
A. | market-product concentration |
B. | product specialization |
D. | selective specialization |
E. | universal concentration |
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121. | What is the primary disadvantage of employing a market specialization strategy?
A. | Gaining market distribution will be costly. |
B. | The organization may be spread too thin. |
C. | The organization achieves neither marketing nor manufacturing synergies. |
D. | R&D-manufacturing has the difficulty of producing multiple products. |
E. | There are too many product substitutes over which a firm would not have control. |
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122. | Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils specifically created for pets under three months of age. Assuming it is marketing to a single segment of "young-pet owners," in terms of the market-product grid framework, Loving Care Pets is using a __________ strategy.
A. | market-product concentration |
C. | product specialization |
D. | selective specialization |
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123. | Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils specifically created for pets under three months of age. In terms of the market-product grid framework, adding a line of pet food for mature dogs, cats, rabbits, and gerbils will result in a __________ strategy that will provide Loving Care Pets with increased marketing efficiencies.
B. | market product concentration |
C. | product specialization |
D. | selective specialization |
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124. | What is the primary disadvantage of employing a product specialization strategy?
A. | The organization may be spread too thin. |
B. | The organization achieves neither marketing nor manufacturing synergies. |
C. | R&D-manufacturing has the difficulty of producing multiple new lines. |
D. | There are too many product substitutes over which a firm would not have control. |
E. | Gaining market distribution will be costly. |
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125. | What is the primary disadvantage of employing a selective specialization strategy?
A. | Gaining market distribution will be costly. |
B. | The organization may be spread too thin. |
C. | The organization achieves neither marketing nor manufacturing synergies. |
D. | R&D-manufacturing has the difficulty of producing multiple new lines. |
E. | It is too risky for a company to put all its eggs in one basket. |
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126. | Based on a market-product grid framework, which marketing strategy offers all product lines to all market segments?
C. | product specialization |
D. | selective specialization |
E. | market-product concentration |
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127. | What is the primary disadvantage of employing a full coverage strategy?
A. | Gaining market distribution will be costly. |
B. | The organization may be spread too thin because of the resource requirements needed to reach all market-product combinations. |
C. | The organization achieves neither marketing nor manufacturing synergies. |
D. | R&D-manufacturing has the difficulty of producing multiple new lines. |
E. | The organization cannot take advantage of marketing or manufacturing synergies available to it through market or product specialization. |
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128. | Ideally, in effective marketing planning, goals should be __________ in terms of what is to be accomplished and by when.
A. | consistent and straightforward |
B. | general and somewhat flexible |
C. | easily adaptive to changes in the environment |
D. | very specific and unwavering |
E. | quantified and measurable |
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129. | The more a marketing plan is based on __________, the less uncertainty and fewer risks are associated with executing it.
C. | facts and valid assumptions |
E. | alternative contingencies |
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130. | Marketing plans must enable results to be compared with planned targets, which allows __________, the flexibility to update original plans based on recent results.
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131. | Which of the following statements best reflects the guideline of using a base of facts and valid assumptions for marketing plans?
A. | The firm insists on having good marketing research. |
B. | To motivate people, the firm sets achievable goals. |
C. | The firm ensures that people at all levels in the firm understand what, when, and how they are to accomplish their tasks. |
D. | The firm's marketing plan has all the key marketing mix factors and are supported by resources. |
E. | The firm's marketing plan enables results to be compared with planned targets, using precise marketing metrics. |
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132. | Which of the following statements best reflects the guideline for having complete and feasible marketing plans?
A. | The firm insists on having good marketing research. |
B. | To motivate people, the firm sets achievable goals. |
C. | The firm ensures that people at all levels in the firm understand what, when, and how they are to accomplish their tasks. |
D. | The firm's marketing plan has all the key marketing mix factors and is supported by resources. |
E. | The firm's marketing plan enables results to be compared with planned targets, using precise marketing metrics. |
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133. | Which of the following statements best reflects the guideline for making marketing plans controllable and flexible?
A. | The firm ensures that people at all levels in the firm understand what, when, and how they are to accomplish their tasks. |
B. | The firm's marketing plan has all the key marketing mix factors and is supported by resources. |
C. | The firm's marketing plan enables results to be compared with planned targets, using precise marketing metrics. |
D. | The firm insists on ownership of the marketing plan by team members and stakeholders. |
E. | The firms ensures that the right person to implement plans is heavily involved in making the plans. |
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134. | Which of the following statements best reflects the guideline for working toward consensus-building when developing marketing plans?
A. | The firm's marketing plans enable results to be compared with planned targets, using precise marketing metrics. |
B. | The firm insists on ownership of the marketing plan by team members and stakeholders. |
C. | The firms ensures that the right person to implement plans is heavily involved in making the plans. |
D. | To motivate people, the firm sets achievable goals. |
E. | The firm ensures that people at all levels in the firm understand what, when, and how they are to accomplish their tasks. |
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135. | All of the following are key problems that emerge in a firm's strategic marketing process except
A. | line operating managers often feel no sense of ownership in implementing the plans. |
B. | bad news is filtered out as information goes up the line to give top management a very rosy picture. |
C. | not enough time and effort is spent on data collection; therefore, the plans written are too simple to implement. |
D. | plans are based on very poor assumptions about environmental forces. |
E. | planners and their plans may have lost sight of their customers' needs. |
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136. | Key problems that emerge in a firm's strategic marketing process include: (1) bad news is filtered out as information goes up the line to give top management a very rosy picture; (2) plans are based on very poor assumptions about environmental forces; (3) __________; (4) too much time and effort may be spent on data collection and writing plans that are too complex to implement; and (5) line operating managers often feel no sense of ownership in implementing the plans.
A. | there is poor communication between the firm and its stakeholders |
B. | there is a lack of leadership |
C. | although management says they are behind the plans, they do not allocate resources to the degree necessary for success |
D. | planners and their plans may have lost sight of their customers' needs |
E. | plans can be thwarted by disgruntled employees, other departments, or competitors |
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137. | Key problems that emerge in a firm's strategic marketing process include: (1) bad news is filtered out as information goes up the line to give top management a very rosy picture; (2) plans are based on very poor assumptions about environmental forces; (3) planners and their plans may have lost sight of their customers' needs; (4) __________; and (5) line operating managers often feel no sense of ownership in implementing the plans.
A. | there is poor communication between the firm and its stakeholders |
B. | too much time and effort may be spent on data collection and writing plans that are too complex to implement |
C. | there is a lack of leadership |
D. | although management says they are behind the plans, they do not allocate resources to the degree necessary for success |
E. | plans can be thwarted by disgruntled employees, other departments, or competitors |
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138. | Key problems that emerge in a firm's strategic marketing process include: (1) bad news is filtered out as information goes up the line to give top management a very rosy picture; (2) plans are based on very poor assumptions about environmental forces; (3) planners and their plans may have lost sight of their customers' needs; (4) too much time and effort may be spent on data collection and writing plans that are too complex to implement; and (5) __________.
A. | there is poor communication between the firm and its stakeholders |
B. | although management says they are behind the plans, they do not allocate resources to the degree necessary for success |
C. | there is a lack of leadership |
D. | plans can be thwarted by disgruntled employees, other departments, or competitors |
E. | line operating managers often feel no sense of ownership in implementing the plans |
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139. | General Mills is concerned with both selling its products and brands in countries around the world and obtaining ideas for new products from anyone anywhere who has a great product or technology. You can send General Mills your great new-product or technology idea through its Internet portal if the product or technology can
A. | fit into the General Mills or Nestlé distribution systems. |
B. | be copyrighted or patented in North America and Western Europe. |
C. | uniquely meet a large unmet consumer need. |
D. | be a totally new product category outside of General Mills' existing product lines. |
E. | facilitate the new General Mills diversification strategy by being a product or technology unrelated to consumer foods. |
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140. | Which of the following is a typical objective for value-based planning?
A. | Integrate sustainable development. |
B. | Demonstrate corporate integrity. |
C. | Contribute to the price of a company's stock. |
D. | Reduce employee turnover. |
E. | Identify new channels of distribution. |
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141. | A trend likely to influence the strategic marketing process in the future that incorporates concerns for ethics, integrity, employee health and safety, and environmental safeguards with more common corporate values such as growth, profitability, customer service, and quality is referred to as
D. | value-driven strategies. |
E. | value-added marketing. |
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142. | Ben & Jerry's Homemade, Inc., is a profitable company that has a reputation for quality. The company is committed to treating its employees fairly and acting ethically in all transactions. It seeks to purchase all of its supplies from socially responsible suppliers. It is a leader in protecting the environment and corporate philanthropy. Ben & Jerry's uses
A. | a value-driven strategy. |
E. | value-added marketing. |
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143. | __________ create a new market by initially reaching new customers through displacing an existing market's low-end product.
A. | Distinctive competencies |
B. | Discontinuous innovations |
C. | Disruptive innovations |
D. | Synergy analysis frameworks |
E. | Continuous innovations |
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144. | Disruptive innovations cause havoc for an organization's
A. | short-term marketing plans. |
B. | marketing research plans. |
D. | long-range marketing plans. |
E. | environmental scanning. |
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145. | Which of the following products is not a recent example of a disruptive innovation?
A. | Wrigley's Alert Energy Caffeine Gum |
C. | Samsung's liquid crystal displays (LCD) high-definition televisions (HDTVs) |
D. | Apple's iPad and iPad mini tablet devices |
E. | Cree's light emitting diode (LED) bulbs |
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146. | The key to launching a disruptive innovation like Google, Facebook, or the iPhone and iPad from Apple is to
A. | hold the line on spending for R&D because "money doesn't grow on trees." |
B. | focus on long-range planning because "if you don't know where you're going, any road will get you there." |
C. | develop accurate action item lists and program schedules because "the devil is in the details." |
D. | ask precise, focused questions to "discover what's never been." |
E. | assess the competitive landscape through a comprehensive environmental scan because "the early bird gets the worm." |
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147. | All of the following are disruptive questions to hopefully achieve disruptive innovations except
A. | "why" and "why not" questions. |
B. | "any suggestions" questions. |
D. | "what caused" questions. |
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148. | Which of the following statements regarding marketing failures is most accurate?
A. | Marketing failures are due to a lack of a program champion who is willing to make decisions and act on them. |
B. | Marketing failures are due to a lack of financial support. |
C. | Marketing failures are due to a lack of originality. |
D. | Marketing failures are due to poorly communicated plans. |
E. | Marketing failures are due to a poor plan and strategy, poor implementation, or both. |
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149. | Which of the following types of firms had both planning and implementation problems that caused them to fail?
A. | laundry consumer product marketers like Procter & Gamble |
B. | personal computer manufacturers like Dell |
C. | dot-com firms like Pets.com |
D. | delivery pizza firms like Papa John's |
E. | gas-powered lawn mowing manufacturers like Great States |
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150. | The reformulation of the original less sweet, more bitter Coca-Cola (now Coca-Cola Classic) into a new sweeter one (eventually called New Coke) was one of the biggest decisions in the firm's history. Coca-Cola was responding to Pepsi's gain in market share with its sweeter formulation and its Pepsi Challenge taste tests and commercials. New Coke replaced "old Coke" on supermarket shelves. Loyal Coke customers were incensed that "old Coke" was discontinued. They loved the taste and brand identity of "old Coke" and rebelled against New Coke. TV and print ads designed to persuade Coke and Pepsi drinkers to switch to New Coke were ineffective. After a short time, Coca-Cola reintroduced old Coke as Coca-Cola Classic and withdrew New Coke from the market. The launch of New Coke is an example of
A. | good planning and good implementation. |
B. | good planning and poor implementation. |
C. | poor planning and good implementation. |
D. | poor planning and poor implementation. |
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151. | As the marketing manager for Acme Products Inc., you just became the new program leader for Baubles, a product Acme introduced last year. Initial sales far exceeded expectations. In response, the previous program leader decided to reduce the profit margins for channel members to more quickly recover the high costs incurred in the development of the Baubles product and its marketing program. Unfortunately, sales of Acme Baubles declined by 5 percent while its market share declined by 7 percent as new competitors entered the market. After conducting a customer survey, you concluded that customers were generally satisfied with Acme's Baubles. However, Baubles were not as readily accessible as they were the previous year. Furthermore, after conducting a survey among the leading wholesalers and retailers of Acme Baubles, you discovered they were not pleased with the reduced margins. Moreover, because Acme's principal competitors offered them greater margins, they gave their products better service and shelf space than Acme's. This is an example of
A. | good planning and good implementation. |
B. | good planning and poor implementation. |
C. | poor planning and good implementation. |
D. | poor planning and poor implementation. |
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152. | Today, the implementation phase of the strategic marketing process often involves moving many planning activities away from the duties of planners to those of __________ responsible for implementing the plans.
D. | the chief marketing officer (CMO) |
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153. | General Electric's Jack Welch became a legend in making GE more efficient and far better at implementation. One strategy he used to do this was
A. | creating new mediation teams between planners and implementers. |
B. | developing task-specific innovation teams. |
C. | hiring outside consulting firms. |
D. | de-layering the organization. |
E. | conducting regular debriefing meetings to keep everyone aware of what was going on. |
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154. | All of the following are ways a marketing manager can improve the implementation of a marketing program except
A. | reward successful implementation. |
B. | communicate goals and the means to achieve them. |
C. | schedule precise tasks, responsibilities, and deadlines. |
D. | avoid paralysis by analysis. |
E. | find the right person to develop the plans. |
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155. | Successful implementation often lies in fostering a work environment that is characterized by all of the following except
A. | fostering open communications. |
C. | communicating goals and the means to achieve them. |
D. | using time-based agendas. |
E. | making employees accountable for failure. |
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156. | Management experts warn against the tendency to excessively analyze a problem instead of taking action. This problem is referred to as
B. | paralysis by analysis. |
C. | better to ask for forgiveness than permission. |
E. | letting sleeping dogs lie. |
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157. | Kelly Johnson of Lockheed Martin's Skunk Works stressed the following basic tenet:
A. | Implement a "do it, fix it, try it" approach. |
B. | Take a "go and see" approach. |
C. | Have a "bias for action." |
D. | "Avoid paralysis by analysis." |
E. | "Better to ask forgiveness than permission." |
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158. | All of the following are basic tenets or axioms voiced by Kelly Johnson of Lockheed Martin's Skunk Works except:
A. | "Failure just leads you to the next great thing." |
B. | "When trouble develops, surface the problem immediately." |
C. | "Avoid paralysis by analysis." |
D. | "Get help—don't keep the problem to yourself." |
E. | "Make decisions promptly." |
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159. | One way to improve implementation is to communicate goals and the means of achieving them. At Toyota, its design teams stress __________—"go and see"—a message about both a goal and a means of achieving it.
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160. | A person who is willing and able to "cut the red tape" to move a program forward is referred to as a
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161. | A program champion is
A. | a person who is willing and able to "cut the red tape" to move a program forward. |
B. | the person within an organization who is assigned the responsibility of taking a program from conception to deletion. |
C. | a person in an organization who is the "product figurehead" for a new-product development cross-functional team. |
D. | a sports figure or celebrity, who serves as a company spokesperson for a new product. |
E. | a single product within the product line that carries the other products in the line "on its back." |
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162. | U.S. Navy Admiral Grace Murray Hopper gave famous advice that a program champion should follow when cutting through an organization's red tape:
A. | Implement a do it, fix it, try it" approach. |
B. | Take a "go and see" approach. |
C. | "Avoid paralysis by analysis." |
D. | Have a "bias for action." |
E. | "Better to ask forgiveness than permission." |
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163. | Edwin H. Land, former CEO of Polaroid, took personal responsibility for technological innovation at Polaroid. On the other hand, Lewis Platt, CEO of Hewlett-Packard, believed senior management's role was to create an environment that encourages all managers to take risks and create new growth opportunities. Which of the following statements describes the actions of these men?
A. | Both Land and Platt were program champions. |
B. | Platt was a program champion and Land was not. |
C. | Land was a program champion and Platt was not. |
D. | Neither Platt nor Land was a program champion. |
E. | Land believed in encouraging others to act as program champions and Platt did not. |
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164. | A list of topics to be covered during a meeting that shows the running time allocated to and the person(s) responsible for leading the discussion for each topic is referred to as a
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165. | A time-based agenda is
A. | a list of topics to be covered during a meeting that shows the running time allocated to and the person(s) responsible for leading the discussion for each topic. |
B. | a chart that demonstrates how a set of tasks for a project can be sequentially and concurrently completed by specified times. |
C. | an aid to implementing a marketing plan consisting of four columns: (1) the task, (2) the person responsible for completing that task, (3) the date to finish the task, and (4) what is to be delivered. |
D. | a tool that shows the relationships through time of the various program tasks, which involves: (1) identifying the main tasks; (2) determining the time required to complete each task; (3) arranging the activities to meet the deadline; and (4) assigning people the responsibilities to complete each task. |
E. | a statistical tool, used in project management, that is designed to analyze and represent the tasks involved in completing a given project. |
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166. | An action item list is
A. | a list of topics to be covered during a meeting that shows the running time allocated to and the person(s) responsible for leading the discussion for each topic. |
B. | a chart that demonstrates how a set of tasks for a project can be sequentially and concurrently completed by specified times. |
C. | an aid to implementing a marketing plan consisting of four columns: (1) the task, (2) the person responsible for completing that task, (3) the date to finish the task, and (4) what is to be delivered. |
D. | a tool that shows the relationships through time of the various program tasks, which involves: (1) identifying the main tasks; (2) determining the time required to complete each task; (3) arranging the activities to meet the deadline; and (4) assigning people the responsibilities to complete each task. |
E. | a statistical tool, used in project management, that is designed to analyze and represent the tasks involved in completing a given project. |
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167. | An action item list is
A. | an aid to implement a marketing plan that consists of four columns. |
B. | a tool that shows the relationships through time of the various program tasks. |
C. | a graphical representation of a program schedule. |
D. | a systematic method to itemize the "value" of products and services. |
E. | an aid to implementing a business plan and consisting of five columns. |
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168. | An aid to implementing a marketing plan and consisting of four columns—the task, the person responsible for completing the task, the date to finish the task, and what is to be delivered—is referred to as
E. | a marketing action memo. |
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169. | An action item list is an aid to implement a marketing plan that consists of four columns: (1) __________, (2) the person responsible for completing the task, (3) the date to finish the task, and (4) what is to be delivered.
C. | the product or service |
D. | the points of difference |
E. | the promotional message |
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170. | An action item list is an aid to implement a marketing plan that consists of four columns: (1) the task, (2) __________, (3) the date to finish the task, and (4) what is to be delivered.
B. | the product or service |
C. | the points of difference |
D. | the promotional message |
E. | the person responsible for completing the task |
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171. | An action item list is an aid to implement a marketing plan that consists of four columns: (1) the task, (2) the person responsible for completing the task, (3) __________, and (4) what is to be delivered.
B. | the points of difference |
C. | the promotional message |
D. | the date to finish the task |
E. | the product or service |
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172. | An action item list is an aid to implement a marketing plan that consists of four columns: (1) the task, (2) the person responsible for completing the task, (3) the date to finish the task, and (4) __________.
B. | the points of difference |
C. | what is to be delivered |
D. | the promotional message |
E. | the product or service |
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173. | Action item lists are most similar to
C. | sales response functions. |
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174. | Developing a program schedule involves: (1) identifying the main tasks, (2) determining the time required to complete each task, (3) arranging the activities to meet the deadline, and (4) __________.
A. | selecting a product champion |
B. | assigning people the responsibilities to complete each task |
C. | defining specific market segments |
D. | creating marketing metrics to evaluate the results |
E. | scheduling a follow-up meeting to evaluate the results |
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175. | The most senior executive responsible for a firm's marketing activities is called the
C. | chief marketing officer (CMO). |
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176. | Line positions refers to
A. | managers who have the authority and responsibility to issue orders to people who report to them. |
B. | people who have the authority and responsibility to advise people in staff positions but cannot issue direct orders to them. |
C. | the senior executives responsible for a firm's marketing strategies and activities. |
D. | members of the board of directors who are responsible for implementing the firm's marketing strategies and tactics. |
E. | middle management with the responsibility of assuring that tasks are completed on time but who do not actually have the authority to issue orders. |
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177. | Managers who have the authority and responsibility to issue orders to people who report to them are referred to as
A. | executive marketing officers. |
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178. | People in __________ positions have the authority and responsibility to issue orders to people who report to them.
B. | executive marketing officer |
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179. | Those in staff positions have the authority and responsibility to advise people in line positions
A. | and can recommend salary and benefit adjustments for them. |
B. | and serve the board of directors. |
C. | and must clear all such communication with the human resources department. |
D. | but cannot serve on team projects with them. |
E. | but cannot issue direct orders to them. |
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180. | People who have the authority and responsibility to advise people in line positions but cannot issue direct orders to them hold
C. | positions on the board of directors. |
D. | stakeholder positions. |
E. | program champion positions. |
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181. | Organizational groupings in which a unit is responsible for specific product offerings are referred to as
B. | geographical groupings. |
C. | reseller-based groupings. |
D. | product line groupings. |
E. | market-based groupings. |
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182. | A company that uses an organizational structure based on "Dinner Products" or "Baked Goods" uses
B. | product line groupings. |
D. | geographical groupings. |
E. | market-based groupings. |
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183. | A company that uses an organizational structure based on its snowboards, skiing equipment, and ice skates would most likely be using a __________ grouping.
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184. | A company that uses an organizational structure based on __________ uses functional groupings.
A. | specific product types or product offerings |
B. | a particular method of distribution |
C. | a specific type of customer |
D. | areas of geographic location |
E. | different departments or business activities within the firm |
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185. | A company that uses an organizational structure by marketing department, finance department, human resource department, etc., is most likely using __________ groupings.
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186. | Organizational groupings that represent the different departments or business activities within a firm are referred to as
C. | geographical groupings. |
D. | product line groupings. |
E. | market-based groupings. |
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187. | Functional groupings are organizational groupings
A. | that group specific customer segments. |
B. | in which sales territories are subdivided according to geographic location. |
C. | that represent the different departments or business activities within a firm. |
D. | in which a unit is responsible for specific product offerings. |
E. | that combine both market-based groupings with product groupings. |
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188. | Geographical groupings are organizational groupings
A. | that group specific customer segments. |
B. | in which sales territories are subdivided according to geographic location. |
C. | that represent the different departments or business activities within a firm. |
D. | in which a unit is responsible for specific product offerings. |
E. | that combine both market-based groupings with product groupings. |
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189. | Organizational groupings in which sales territories are subdivided according to location are referred to as
C. | geographical groupings. |
D. | product line groupings. |
E. | market-based groupings. |
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190. | Organizational groupings based on specific customer segments are referred to as
C. | geographical groupings. |
D. | product line groupings. |
E. | market-based groupings. |
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191. | Market-based groupings are organizational groupings
A. | that group specific customer segments. |
B. | in which sales territories are subdivided according to geographic location. |
C. | that represent the different departments or business activities within a firm. |
D. | in which a unit is responsible for specific product offerings. |
E. | that combine both functional groupings with product groupings. |
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192. | A matrix organization
A. | combines a product line structure with a geographical structure. |
B. | combines a geographical structure with a market-based structure. |
C. | combines a market-based structure with product groupings. |
D. | turns a horizontal organizational structure into a vertical one. |
E. | groups products according to the distribution system that is used. |
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193. | Ingram Micro is the biggest computer wholesaler in the world. It has two divisions. One provides supplies for companies that manufacture computer products, such as IBM and Microsoft. To them it sells motherboards, monitors, etc. The other has been developed to serve the needs of the resellers and retailers that sell computers to businesses and individual customers. To them, it sells user-ready computers. In this example, Ingram Micro most likely would use which type of organizational structure for marketing?
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194. | Procter & Gamble uses category managers to organize by "global business units" such as baby care and beauty care. Cutting across country boundaries, these global business units implement standardized worldwide pricing, marketing, and distribution strategies. The baby care category manager would have
A. | completely different duties from the brand manager. |
B. | profit and loss responsibility for all baby care products in the line. |
C. | to use persuasion as opposed to direct authority to get any goals achieved. |
D. | no authority over functions, except marketing, that affect baby care products. |
E. | no authority on U.S. baby care product sales. |
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195. | Another commonly used term for product manager is
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196. | Within DuPont's textile fiber department, there is a separate product manager for rayon, acetate, Orlon, nylon, and Dacron. The product manager for DuPont nylon would be responsible for
A. | making long-range plans for nylon. |
B. | maintaining the divisional mission statement. |
C. | modifying DuPont's organizational structure. |
D. | creating static marketing objectives. |
E. | implementing short-term actions for all fibers. |
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197. | General Mills uses a marketing structure in which one person is ultimately responsible for the marketing of a specific product. For instance, one person is responsible for setting marketing goals and developing and implementing related marketing strategies for the well-known breakfast cereal, Cheerios. This person, who takes responsibility for the success or failure of the marketing of Cheerios, is called
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198. | Many large, packaged goods marketers like Procter & Gamble, Kraft, and Pillsbury have used the product manager (or brand manager) system of marketing organization and implementation. Which of the following is the key advantage of this system?
A. | Product managers have relatively little authority. |
B. | Product managers are short-term in their orientation. |
C. | Product managers have direct responsibility for research and development of new products. |
D. | Product managers can assume profit-and-loss responsibility for the performance of the product line. |
E. | Product managers have line responsibility over sales managers. |
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199. | The essence of marketing evaluation is: (1) comparing results with planned goals to identify deviations and (2) __________.
A. | taking corrective actions |
C. | revising the goals that fell short of expectations |
D. | investigating the causes of deviations |
E. | updating the marketing plan |
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200. | The strategic marketing process involves three phases: planning, implementation, and
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201. | Amy Smith has just completed measuring the results of her firm's product performance. Her next step will be to
A. | do a profitability analysis. |
B. | take necessary corrective actions. |
C. | bring these to the marketing auditor. |
D. | proceed regardless of deviations from original plans. |
E. | compare the results against the goals specified in the marketing plan. |
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202. | Identifying the results that deviate from plans to diagnose their causes and take new actions is referred to as
A. | management by exception. |
D. | market-product grid framework assessment. |
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203. | The marketing manager looks for two kinds of deviations, each triggering a different kind of action: (1) __________ and (2) actual results fall short of goals.
A. | deviations that result from major shifts in customer needs |
B. | actual results exceed goals |
C. | there are no deviations but there should be |
D. | deviations that result from executive mandates |
E. | deviations that are blamed on insufficient marketing support (personnel or funding) |
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204. | The marketing manager looks for two kinds of deviations, each triggering a different kind of action: (1) actual results exceed goals and (2) __________.
A. | deviations that result from major shifts in customer needs |
B. | there are no deviations but there should be |
C. | deviations that result from executive mandates |
D. | actual results fall short of goals |
E. | deviations that are blamed on insufficient marketing support (personnel or funding) |
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205. | The application of modern measurement technologies to understand, quantify, and optimize marketing spending is referred to as
B. | strategic marketing analysis. |
C. | marketing ROA (return on assets). |
D. | marketing ROI (return on investment). |
E. | marketing response evaluation. |
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206. | Marketing ROI (return on investment) refers to
A. | the application of modern measurement technologies to understand, quantify, and optimize production costs. |
B. | the application of modern measurement technologies to understand, quantify, and optimize marketing spending. |
C. | the application of modern measurement technologies to understand, quantify, and optimize research and development (R&D) expenses. |
D. | the allocation of funds based on a percentage of the total marketing budget determined by assessing the anticipated revenue return for a given marketing action. |
E. | the allocation of funds based upon the minimum expenditure possible to create the maximum results in terms of total sales. |
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207. | Marketing ROI (return on investment) uses modern measurement technologies to determine the results of
B. | manufacturing and distribution procedures. |
D. | organizational structure. |
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208. | Marketing ROI (return on investment) is an extension of
E. | the strategic marketing process. |
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209. | Two commonly used methods to improve marketing ROI (return on investment) are
A. | sales analysis and cost analysis. |
B. | marketing research and marketing audits. |
C. | social audits and marketing audits. |
D. | marketing metrics and marketing dashboards. |
E. | internal audits and external audits. |
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210. | The Betty Crocker marketing team that developed Warm Delights challenged the food scientists at General Mills to make an indulgent, delicious, and gooey dessert. They wanted all of the following characteristics in the dessert except
D. | consistent great taste. |
E. | priced below its competition. |
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211. | The primary target market for Warm Delights is
C. | college students with microwaves. |
D. | young marrieds who often have unexpected company. |
E. | families with small children wanting after-school treats. |
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212. | Which of the following types of test marketing techniques was primarily used in market research for General Mills Warm Delights?
D. | double back product refunds |
E. | test marketing on the shelves of actual supermarkets |
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Short Answer Questions
213. | In a five-year study, researchers conducted in-depth analysis of 160 companies and more than 200 management tools and techniques, such as customer relationship management and use of an intranet. What were their findings? That is, according to the researchers, how would a company exploit its competitive advantage to achieve superior business performance?
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214. | What is a sales response function?
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215. | List the three steps of the planning phase of the strategic marketing process. Briefly describe actions that make up each of the three steps. What information is collected in each step?
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216. | List the three phases of the strategic marketing process and the output report for each.
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217. | What are the two types of innovation metrics used in analyzing the performance of new-product development?
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218. | List and explain two types of marketing plans.
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219. | Describe Porter's framework and the four resulting generic business strategies.
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220. | Explain what synergy analysis is and describe the five marketing strategies that result.
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221. | List the seven guidelines for developing effective plans and planning.
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222. | List four problems that occur in the planning phase of a firm's strategic marketing process.
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223. | What is a disruptive innovation? Cite an example.
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224. | When a marketing plan fails, what should a marketer do in terms of looking for the source of the problem?
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225. | List the six guidelines for improving implementation of marketing programs.
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226. | Management experts call for a "bias for action." How can this attitude be important in marketing program implementation?
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227. | Describe a time-based agenda, an action item list, and a program schedule. What are their similarities and differences?
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228. | What is the difference between line and staff positions in a marketing organization?
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229. | What are the advantages and disadvantages of the product manager system?
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230. | Explain the steps in the evaluation phase of the strategic marketing process.
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231. | How is management by exception used in the evaluation phase of the strategic marketing process?
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232. | Define marketing ROI (return on investment).
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