Question 1

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"?

Accepted Answer

A) Costco 
B) Sam's Club 
C) Coca-Cola 
D) Smucker's 
E) Blackberry

Question 2

A company that uses an organizational structure based on "Dinner Products" or "Baked Goods" uses

Accepted Answer

A) functional groupings. 
B) product line groupings. 
C) reseller groupings. 
D) geographical groupings. 
E) market-based groupings.

Question 3

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) __________.

Accepted Answer

A) select target markets 
B) identify industry trends 
C) position the product 
D) find points of difference 
E) develop the budget by estimating revenues, expenses, and profits

Question 4

Successful implementation often lies in fostering a work environment that is characterized by all of the following except

Accepted Answer

A) fostering open communications. 
B) rewarding success. 
C) communicating goals and the means to achieve them. 
D) using time-based agendas. 
E) making employees accountable for failure.

Question 5

Which of the following statements best reflects the guideline for having complete and feasible marketing plans?

Accepted Answer

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.

Question 6

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

Accepted Answer

A) no cleanup. 
B) a single portion. 
C) quick preparation. 
D) consistent great taste. 
E) priced below its competition.

Question 7

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) __________.

Accepted Answer

A) trends for industry and competitors 
B) marketing mix actions 
C) detailed plans to execute the marketing program 
D) perceptual maps and positioning statements 
E) projected future sales, expenses, and profits

Question 8

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.

Accepted Answer

A) cost leadership strategy 
B) cost focus strategy 
C) differentiation strategy 
D) differentiation focus strategy 
E) service focus strategy

Question 9

What is a disruptive innovation? Cite an example.

Accepted Answer

The answer of What is a disruptive innovation? Cite an...

Question 10

Which of the following output reports is used in the planning phase of the strategic marketing process?

Accepted Answer

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 
E) tracking reports

Question 11

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.

Accepted Answer

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

Question 12

Ideally, in effective marketing planning, goals should be __________ in terms of what is to be accomplished and by when.

Accepted Answer

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

Question 13

Annual __________ are documents that deal with the marketing goals and strategies for a product, product line, or entire firm for a single year.

Accepted Answer

A) production estimates 
B) sales forecasts 
C) budget projections 
D) marketing plans 
E) tactical forecasts

Question 14

During the planning phase of the strategic marketing process, the marketing manager will

Accepted Answer

A) design the marketing organization. 
B) obtain resources. 
C) develop marketing schedules. 
D) construct managerial bonus plans. 
E) set market and product goals.

Question 15

There are five alternative marketing strategies that can be identified by market-product grids: market-product concentration, market specialization, product specialization, __________, and full coverage.

Accepted Answer

A) selective distribution 
B) market specialization 
C) product reorientation 
D) new-product specialization 
E) selective specialization

Question 16

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?

Accepted Answer

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

Question 17

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

Accepted Answer

A) differentiation focus strategy. 
B) cost focus strategy. 
C) differentiation strategy. 
D) cost leadership strategy. 
E) supply focus strategy.

Question 18

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.

Accepted Answer

A) 3:1 
B) 1:3 
C) 8:5 
D) 5:2 
E) 21:12

Question 19

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?

Accepted Answer

The answer of In a five-year study, researchers conducted in-depth...

Question 20

Differentiation strategy refers to one of Porter's generic business strategies that

Accepted Answer

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.

Exam 22: Pulling It All Together: the Strategic Marketing Process