Question 1

Le Feast is a catering company that has developed a marketing plan designed to make it the largest caterer in the country within the next two decades.Which of the following will be useful to the company to evaluate how successful its efforts have been at the end of the first decade?

Accepted Answer

A)   SWOT analysis
B)   environmental scan
C)   competitive analysis
D)   marketing audit
E)   comprehensive sales analysis D

Question 2

The Hallmark Company was inspired by the popularity of Jan Karon's best-selling novels about Mitford,a fictional town in the mountains of North Carolina,to develop a new line of products for Hallmark Gold Crown Stores nationwide.Hallmark created hundreds of Mitford-inspired products that authentically bring "the little town with the big heart" into tangible reality.The products include greeting cards,partyware and gift wrap,mugs,and puzzles for Hallmark's existing customers.Hallmark used a _____ strategy.

Accepted Answer

A)   market development
B)   market penetration
C)   product penetration
D)   product development
E)   diversification D

Question 3

By defining its business as "printing books" instead of "empowering imaginations," a children's book publishing company would more than likely experience:

Accepted Answer

A)   market synergy
B)   product entropy
C)   market harvesting
D)   nonspecific strategic planning
E)   marketing myopia E

Question 4

A business unit that usually generates more than it needs to maintain its market share is called a(n)_____ in a portfolio matrix.

Accepted Answer

A)   star
B)   cash cow
C)   problem child
D)   dog
E)   independent

Question 5

Name and describe the three requirements for effective strategic planning.

Accepted Answer

The answer of Name and describe the three requirements for...

Question 6

Kraft introduced Philadelphia Ready-to-eat Cheesecake Filling for those who do not have time to make cheesecake in the traditional manner.This is an example of a _____ strategy.

Accepted Answer

A)   diversification
B)   market development
C)   product development
D)   divestment
E)   product penetration

Question 7

A planning manager visiting a company's health and beauty aids division discovers the division has no effective method for allocating resources,nor for evaluating actual results against planned results.He suggestion to the division would likely be to prepare a:

Accepted Answer

A)   marketing audit
B)   contingency plan
C)   service audit
D)   market share analysis
E)   series of tactical evaluations

Question 8

In the portfolio matrix,a business unit that has low growth potential and a small market share is called a(n):

Accepted Answer

A)   widow
B)   problem child
C)   cash cow
D)   dog
E)   bust

Question 9

Subgroups of a single business or a collection of related businesses within a larger organization are referred to as:

Accepted Answer

A)   strategic marketing organizations
B)   strategic subgroups
C)   market segments
D)   business segments
E)   strategic business units

Question 10

_____ is defined as the collection and interpretation of information about forces,events,and relationships in the external environment that may affect the organization or the implementation of the marketing plan.

Accepted Answer

A)   Market sampling
B)   An internal audit
C)   Opportunity analysis
D)   Environmental scanning
E)   Stakeholder analysis

Question 11

NARRBEGIN: DeFeet International
DeFeet International
DeFeet International started as a cyclist sock company.The founder,Shane Cooper,said that the existing socks for cyclists were just not of great quality so he made socks for his cycling team by knitting them inside out.The socks were of special materials aimed at giving the cyclist the most comfortable fit.These socks were not the traditional white socks but bright,bold,and flashy colored socks with cool graphics.These high tech socks were priced around $10 a pair.Their web site says "DeFeet is Made for Driven Soles." Soon cycling elites like Lance Armstrong and Greg LeMond were sporting the DeFeet brand.The company branched into running,hiking and snow gear.Their products include socks,armskins,calfskins,boxer briefs,gloves,and shirts for the serious athlete.They also have a custom department where socks,armskins,and gloves can be customized with any motif including sponsor types of logos like Michelin,Pabst Blue Ribbon,or BP.Even kids can enjoy DeFeet's high quality socks.DeFeet's products can be found in retailers across the world,in more than twenty countries,like Israel,Australia,Belgium and the United States.More than two-dozen online retailers also carry their products.
-Refer to DeFeet.What is DeFeet's most likely target market strategy?

Accepted Answer

A)   Appeal to the entire market
B)   Concentrate on one segment of the market
C)   Appeal to multiple segments
D)   Appeal to athletes
E)   Appeal to the world

Question 12

Environmental scanning entails the collection and analysis of information about factors that may affect the organization as well as the identification of market opportunities and threats.

Accepted Answer

A) True 
 B)False

Question 13

_____ show costs declining at a predictable rate as experience with a product increases.

Accepted Answer

A)   Liquidity growth curves
B)   EOQ graphs
C)   Breakeven analyses
D)   Experience curves
E)   Supply/demand curves

Question 14

The company's objective is to increase sales next year.This is an example of a well-stated objective.

Accepted Answer

A) True 
 B)False

Question 15

Everyone knows the brand name Kleenex.Kleenex is what many consumers think of when they think of tissues.This widely recognized brand name is a source of:

Accepted Answer

A)   a product differentiation competitive advantage
B)   a cost advantage
C)   market augmentation
D)   a niche competitive advantage
E)   none of these things

Question 16

As a customer entered the Hornady store,which sells muzzle loading rifles,a salesperson approached her and said,"Hornady lead round balls are the musket balls you ought to buy.They are the most uniform in size and shape,and they are made of pure lead.Our shot is used by the Muzzle Loading World Champion." The salesperson was describing Hornady's:

Accepted Answer

A)   competitive advantage
B)   strategic strength
C)   tactical opportunity
D)   opportunity mission
E)   quality objective

Question 17

Which of the marketing mix elements is the most flexible?

Accepted Answer

A)   product
B)   promotion
C)   publicity
D)   place
E)   pricing

Question 18

Heinz is introducing four hundred new products in the next two years.To know which markets to reach they should first perform a _____.

Accepted Answer

A)   market diversification analysis
B)   market audit
C)   social audit
D)   market opportunity analysis
E)   niche analysis

Question 19

Briggs and Stratton is a Southeastern company that makes small engines.The company is looking at customer trends,its competitors,and the economy to see if there are any threats or opportunities on the horizon.It has also examined its production policies and sales histories to determine its strengths and weaknesses.Briggs & Stratton is conducting a(n):

Accepted Answer

A)   environmental test
B)   market audit
C)   trend analysis
D)   situation analysis
E)   competitive advantage search

Question 20

Arizona Tea is marketed by Vultaggio & Sons.Vultaggio & Sons took a basic drink and put it into unusual bottles with elaborate designs.The wide-mouthed,long-necked bottles are now considered to be trendsetters in the new age beverage industry,and customers often buy the tea just for the bottle.The success of Arizona Tea is based on:

Accepted Answer

A)   supply-demand curves
B)   reengineering
C)   a product differentiation competitive advantage
D)   a cost competitive advantage
E)   a heterogeneous marketing strategy

Exam 2: Strategic Planning for Competitive Advantage