Question 1

Describe the nature of strategic planning.

Accepted Answer

Answers will vary. Strategic planning is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities. The goal of strategic planning is long-run profitability and growth. Thus, strategic decisions require long-term commitments of resources.A strategic error can threaten a firm's survival. On the other hand, a good strategic plan can help protect and grow the firm's resources. Strategic marketing management addresses two questions: (1) What is the organization's main activity at a particular time? (2) How will it reach its goals?

Question 2

Fresnas Inc. introduced a new line of smartphones in the market. As it is expected to generate huge profits and needs more financing, the new line of smartphones can be categorized as dogs.

Accepted Answer

A) True 
 B)False  False

Question 3

Freulia Inc. manufactures and sells stationery and office supplies. The firm begins to lose its competitive advantage with the entry of new competitors. In this case, in order to gain a sustainable competitive advantage, Freulia Inc. should:

Accepted Answer

A) imitate the products of its competitors. 
B) depend on government subsidies. 
C) develop the skills and assets of the organization. 
D) aim at being the low-cost competitor in the industry. 
A) imitate the products of its competitors. 
B) depend on government subsidies. 
C) develop the skills and assets of the organization. 
D) aim at being the low-cost competitor in the industry. C

Question 4

The best marketing tactic is to protect existing market share by reinvesting earnings in product improvement, better distribution, more promotion, and production efficiency.

Accepted Answer

A) True 
 B)False

Question 5

A strategic business unit (SBU) is a single business or a collection of related businesses.

Accepted Answer

A) True 
 B)False

Question 6

Delat Corp. is a large corporation that offers several product lines. On the company's Web site, the following content is highlighted: "The aim of our business is to achieve profitability by offering our customers high-quality products that are manufactured in a cost-effective manner. Our goals are to provide value to our customers, serve the community, and preserve the environment." This content is most likely to be Delat Corp.'s _____.

Accepted Answer

A) article of incorporation 
B) statement of qualification 
C) scenario planning 
D) mission statement 
A) article of incorporation 
B) statement of qualification 
C) scenario planning 
D) mission statement

Question 7

Which of the following examples illustrates a niche strategy?

Accepted Answer

A) Libra Inc., a motor company, using new production techniques to achieve economies of scale 
B) Alpha Electronics deciding to dissolve one of its strategic business units 
C) Venus Inc. selling products similar to the ones available in the market 
D) Relish, a confectionery store, selling handcrafted chocolates in only one city 
A) Libra Inc., a motor company, using new production techniques to achieve economies of scale 
B) Alpha Electronics deciding to dissolve one of its strategic business units 
C) Venus Inc. selling products similar to the ones available in the market 
D) Relish, a confectionery store, selling handcrafted chocolates in only one city

Question 8

SharpSheets is a paper manufacturing company that sells products made of recycled materials. No other paper manufacturing company in the market has the ability to replicate its products. SharpSheets has a competitive advantage in this scenario.

Accepted Answer

A) True 
 B)False

Question 9

Environmental scanning refers to the process of collecting and interpreting information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

Accepted Answer

A) True 
 B)False

Question 10

MaxNutri Inc. sells cookies and nutrition bars. The marketers at MaxNutri Inc. are trying to come up with new and attractive packaging designs for its cookies. In this scenario, MaxNutri Inc. is working on its _____.

Accepted Answer

A) purchase strategy 
B) distribution strategy 
C) advertising strategy 
D) product strategy 
A) purchase strategy 
B) distribution strategy 
C) advertising strategy 
D) product strategy

Question 11

Unlike a sustainable competitive advantage, a cost competitive advantage:

Accepted Answer

A) does not ensure satisfactory profit margins. 
B) requires business firms to reduce after-purchase service options. 
C) involves producing goods that cannot be copied by competitors. 
D) is subject to continual erosion. 
A) does not ensure satisfactory profit margins. 
B) requires business firms to reduce after-purchase service options. 
C) involves producing goods that cannot be copied by competitors. 
D) is subject to continual erosion.

Question 12

In the context of marketing planning, implementation involves:

Accepted Answer

A) allocating resources. 
B) identifying market segments. 
C) defining the business mission. 
D) assessing internal capabilities of a firm. 
A) allocating resources. 
B) identifying market segments. 
C) defining the business mission. 
D) assessing internal capabilities of a firm.

Question 13

In the context of following up on a marketing plan, _____ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.

Accepted Answer

A) implementation 
B) control 
C) environmental scanning 
D) marketing myopia 
A) implementation 
B) control 
C) environmental scanning 
D) marketing myopia

Question 14

RegiSure is a strategic business unit that shows low growth but has a dominant market share. Since it has a dominant market share, it must be additionally financed despite its low growth.

Accepted Answer

A) True 
 B)False

Question 15

A product/service differentiation competitive advantage can be achieved by:

Accepted Answer

A) using inexpensive raw materials. 
B) having a strong dealer network. 
C) having low overhead costs. 
D) creating generic products. 
A) using inexpensive raw materials. 
B) having a strong dealer network. 
C) having low overhead costs. 
D) creating generic products.

Question 16

Marketing objectives must be consistent with and indicate the priorities of an organization.

Accepted Answer

A) True 
 B)False

Question 17

Jove Inc. is a chocolate manufacturer in the city of Lumberne. While most of the companies in the market produce not more than three basic varieties of chocolates, Jove Inc. sells over 20 different varieties of flavored chocolates. Other companies are almost out of business because they are unable to replicate Jove's collection. This gives Jove an edge over the other chocolate makers in Lumberne. This is an example of _____.

Accepted Answer

A) a divestment 
B) market penetration 
C) a sustainable competitive advantage 
D) diversification 
A) a divestment 
B) market penetration 
C) a sustainable competitive advantage 
D) diversification

Question 18

In the context of the general electric model, _____ refers to how well placed the organization is to take advantage of market opportunities.

Accepted Answer

A) business position 
B) experience curves 
C) market attractiveness 
D) marketing myopia 
A) business position 
B) experience curves 
C) market attractiveness 
D) marketing myopia

Question 19

Rues and West Bros., an ammunition manufacturer, defines its mission statement as being in the ammunition-production business rather than in the arms industry. In the given scenario, Rues and West Bros. is suffering from _____.

Accepted Answer

A) marketing inertia 
B) marketing myopia 
C) marketing dissonance 
D) marketing blockage 
A) marketing inertia 
B) marketing myopia 
C) marketing dissonance 
D) marketing blockage

Question 20

Discuss the market penetration strategy of Ansoff's strategic opportunity matrix.

Accepted Answer

Answers will vary. A firm using the mark

Describe the nature of strategic planning.

Fresnas Inc. introduced a new line of smartphones in the market. As it is expected to generate huge profits and needs more financing, the new line of smartphones can be categorized as dogs.

Freulia Inc. manufactures and sells stationery and office supplies. The firm begins to lose its competitive advantage with the entry of new competitors. In this case, in order to gain a sustainable competitive advantage, Freulia Inc. should:

The best marketing tactic is to protect existing market share by reinvesting earnings in product improvement, better distribution, more promotion, and production efficiency.

A strategic business unit (SBU) is a single business or a collection of related businesses.

Which of the following examples illustrates a niche strategy?

SharpSheets is a paper manufacturing company that sells products made of recycled materials. No other paper manufacturing company in the market has the ability to replicate its products. SharpSheets has a competitive advantage in this scenario.

Environmental scanning refers to the process of collecting and interpreting information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

MaxNutri Inc. sells cookies and nutrition bars. The marketers at MaxNutri Inc. are trying to come up with new and attractive packaging designs for its cookies. In this scenario, MaxNutri Inc. is working on its _____.

Unlike a sustainable competitive advantage, a cost competitive advantage:

In the context of marketing planning, implementation involves:

In the context of following up on a marketing plan, _____ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.

RegiSure is a strategic business unit that shows low growth but has a dominant market share. Since it has a dominant market share, it must be additionally financed despite its low growth.

A product/service differentiation competitive advantage can be achieved by:

Marketing objectives must be consistent with and indicate the priorities of an organization.

In the context of the general electric model, _____ refers to how well placed the organization is to take advantage of market opportunities.

Rues and West Bros., an ammunition manufacturer, defines its mission statement as being in the ammunition-production business rather than in the arms industry. In the given scenario, Rues and West Bros. is suffering from _____.

Discuss the market penetration strategy of Ansoff's strategic opportunity matrix.

An Overview of Marketing

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising, Public Relations, and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Pricing Concepts

Filters

Exam 2: Strategic Planning for Competitive Advantage

Describe the nature of strategic planning.

Fresnas Inc. introduced a new line of smartphones in the market. As it is expected to generate huge profits and needs more financing, the new line of smartphones can be categorized as dogs.

Freulia Inc. manufactures and sells stationery and office supplies. The firm begins to lose its competitive advantage with the entry of new competitors. In this case, in order to gain a sustainable competitive advantage, Freulia Inc. should:

The best marketing tactic is to protect existing market share by reinvesting earnings in product improvement, better distribution, more promotion, and production efficiency.

A strategic business unit (SBU) is a single business or a collection of related businesses.

Which of the following examples illustrates a niche strategy?

SharpSheets is a paper manufacturing company that sells products made of recycled materials. No other paper manufacturing company in the market has the ability to replicate its products. SharpSheets has a competitive advantage in this scenario.

Environmental scanning refers to the process of collecting and interpreting information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

MaxNutri Inc. sells cookies and nutrition bars. The marketers at MaxNutri Inc. are trying to come up with new and attractive packaging designs for its cookies. In this scenario, MaxNutri Inc. is working on its _____.

Unlike a sustainable competitive advantage, a cost competitive advantage:

In the context of marketing planning, implementation involves:

In the context of following up on a marketing plan, _____ provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.

RegiSure is a strategic business unit that shows low growth but has a dominant market share. Since it has a dominant market share, it must be additionally financed despite its low growth.

A product/service differentiation competitive advantage can be achieved by:

Marketing objectives must be consistent with and indicate the priorities of an organization.

In the context of the general electric model, _____ refers to how well placed the organization is to take advantage of market opportunities.

Rues and West Bros., an ammunition manufacturer, defines its mission statement as being in the ammunition-production business rather than in the arms industry. In the given scenario, Rues and West Bros. is suffering from _____.

Discuss the market penetration strategy of Ansoff's strategic opportunity matrix.

An Overview of Marketing

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising, Public Relations, and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Pricing Concepts

Filters