Chapter 2

CHAPTER 2
Planning, Implementing, and Controlling Marketing Strategies
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Describe the process of strategic planning. How does this process help marketing managers? AACSB: Analytic DF: E Page: 32 Type: KN How does a firm use a market opportunity to reach a particular target market? AACSB: Reflective Thinking, St ategy DF: ! Page: 3" Type: KN In what ways does having a mission statement help an organi ation achieve its goals? AACSB: C#$$%nicati#n, St ategy DF: E Page: 3& Type: KN "ompare and contrast corporate strategy and marketing strategy. AACSB: C#$$%nicati#n, !a keting plan, 't ategy DF: !
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Define the four product categories used in the $oston "onsulting %roup &$"%' product(portfolio analysis. AACSB: C#$$%nicati#n, !a keting plan DF: ! Page: "+)", Type: KN *+plain the different types of growth strategies that can be used by a strategic business unit. AACSB: C#$$%nicati#n, !a keting plan, 't ategy DF: ! Page: "+ Type: KN Describe the two ma-or components of marketing strategy. .hat should marketing managers consider when developing marketing strategy? AACSB: Analytic DF: E Page: "2 Type: KN Discuss the creation of a marketing plan. .hat are the ma-or components of a marketing plan? AACSB: C#$$%nicati#n, !a keting plan DF: ! Page: "" Type: KN .hat is internal marketing? .hy is it helpful for a firm to initiate an internal marketing program? AACSB: Analytic, !a keting Plan DF: ! Page: "( Type: KN Discuss the different ways of organi ing the marketing unit. AACSB: Analytic DF: ! Page: "*)-+ Type: KN Discuss how a firm2s orientation is related to the development of its strategic plan. AACSB: Analytic, !a keting Plan DF: D Page: 32)3" Type: KN 3trategic planning is the process of An': e'ta.li'hing an # gani/ati#nal $i''i#n an0 f# $%lating g#al', c# p# ate 't ategy, $a keting #.1ective', $a keting 't ategy, an0 a $a keting plan2 AACSB: C#$$%nicati#n, !a keting plan, 't ategy DF: D 34: 34, Page: 32 Type: KN
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4 2111 "engage 5earning. 6ll 7ights 7eserved. 8his edition is intended for use outside of the 9.3. only: with content that may be different from the 9.3. *dition. ;ay not be scanned: copied: duplicated: or posted to a publicly accessible website: in whole or in part.
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies .hen managers at 5ogistics <ro are developing their strategic plan: they use a marketing orientation as a guide to ensure that ======== is an integral part of the process. a' customer satisfaction b' employee satisfaction c' the best use of their marketing resources d' the marketing mi+ e' the marketing function An': a AACSB: Analytic, St ategy DF: E Page: 32 Type: AP ;anagers at the 5ittlefield "orporation are engaged in a comple+ process of revising their organi ation2s mission and goals and developing corporate strategy: marketing ob-ectives: marketing strategy: and: eventually: a marketing plan. 8his process is called a' marketing planning. b' strategic planning. c' marketing strategy. d' corporate strategy. e' strategic business planning. An': . AACSB: Analytic, St ategy DF: ! 34: 34, Page: 32 Type: AP Identifying and analy ing a target market and developing a marketing mi+ to satisfy individuals in that market are essential elements of which of the following parts of strategic planning? a' *stablishing marketing ob-ectives b' "oordinating marketing activities c' >rgani ing marketing functions d' Developing a marketing strategy e' <lanning marketing activities An': 0 AACSB: Reflective Thinking, St ategy DF: ! 34: 34, Page: 33 Type: KN 3afeway ?ood 3tores is involved in identifying and analy ing a target market. 8he firm then develops a marketing mi+ to satisfy individuals in that market to gain long(term competitive advantages. $ased on this e+ample: 3afeway is creating a a' corporate strategy. b' target design. c' mi+ strategy. d' marketing strategy. e' marketing tactic. An': 0 AACSB: Analytic, St ategy DF: E 34: 34, Page: 33 Type: AP 8o formulate a marketing strategy: one must a' identify and analy e a target market and develop a marketing mi+ to satisfy individuals in that market. b' develop a statement of what is to be accomplished through marketing activities. c' develop plans for implementation and control. d' develop an ade@uate marketing control process. e' determine marketing ob-ectives. An': a AACSB: Reflective Thinking, St ategy DF: D 34: 34, Page: 33 Type: C5
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 29 8he marketing plan is a' a plan of all aspects of an organi ation2s business strategy. b' written differently for each 3$9. c' a written document detailing activities to be performed to implement and control marketing actions. d' designed to specify not only marketing: but all other functional areas of business activities as well. e' updated only periodically. An': c AACSB: C#$$%nicati#n, !a keting plan DF: D 34: 34, Page: 33 Type: KN "yber"ycle Inc.: is preparing a written document specifying the activities to be performed to implement and control its marketing activities. 8his document is called the a' profit plan. b' marketing program. c' strategic market program. d' strategic business plan. e' marketing plan. An': e AACSB: C#$$%nicati#n, !a keting plan DF: E 34: 34, Page: 33 Type: AP 8he strategic planning process begins with a' development of an organi ational mission statement. b' development of marketing strategy. c' analysis of the marketing environment. d' analysis of target markets. e' development of a marketing plan. An': c AACSB: Analytic, St ategy DF: D 34: 342
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6 ========== is something that an organi ation does e+tremely well and may give a company an advantage over its competition. a' benchmark b' sustainable competitive advantage c' core competency d' strategic vision e' marketing opportunity An': c AACSB: Analytic, St ategy DF: E 34: 342 Page: 3" Type: KN 6 market opportunity results from a' the right combination of circumstances and timing that permit an organi ation to take action to reach a particular target market. b' monitoring the firm2s capabilities. c' an increase in market share and profits. d' an assessment of environmental forces. e' technological determinism. An': a AACSB: Reflective Thinking, St ategy DF: ! 34: 342 Page: 3" Type: KN .hen the right combination of circumstances occurs at the right time to allow an organi ation to take action toward a target market: the firm is faced with a a' market ob-ective. b' market re@uirement. c' strategic market plan. d' market opportunity. e' corporate ob-ective. An': 0 AACSB: Reflective Thinking, St ategy DF: E 34: 342 Page: 3" Type: KN
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies In response to the increase in demand for organic foods: .egmans: Inc.: a regional supermarket: recently created organic food departments within their large stores. 8he creation of these departments was a result of a' a core compentency b' a market opportunity c' its sales orientation d' its distribution plan e' a competitive advantage An': . AACSB: Reflective Thinking, St ategy DF: ! Page: 3" Type: AP 7eali ing that consumers have begun to seek vehicles that use less gasoline: 8oyota heavily promotes its hybrid automobiles to capitali e on this ========== while the strategic window is open. a' marketing mi+ b' market opportunity c' ob-ective d' re@uirement e' goal An': . AACSB: Reflective Thinking, St ategy DF: E 34: 342 Page: 3" Type: AP 6fter determining that consumers had concerns about fat and carbohydrates: 3ardino2s <i a began offering a low(fat: low(carb pi a product. 8he creation of this new product was the result of a' a competitive advantage. b' a well(defined mission statement. c' good strategic planning. d' a market opportunity. e' opportunistic behavior. An': 0 AACSB: Reflective Thinking, St ategy DF: ! 34: 342 Page: 3" Type: AP 6 strategic window is a' the right combination of circumstances and timing that permit an organi ation to take action to reach a particular target market. b' what determines the factors that are most important in making a market attractive or strong. c' customers2 re@uirements or desired benefits. d' a temporary period of optimum fit between the key re@uirements of a market and the particular capabilities of a firm competing in that market. e' the process that seeks information about events and relationships in a company2s outside environment. An': 0 AACSB: C#$$%nicati#n, St ategy DF: D 34: 342 Page: 3" Type: KN 6 competitive advantage e+ists when a a' firm matches a core competency to opportunities it has discovered in the marketplace. b' firm does marketing better than its competitors. c' combination of circumstances and timing allow a firm to reach an attractive target market. d' firm observes a fit between the key re@uirements of a market and its own capabilities. e' firm has a strong marketing plan. An': a AACSB: C#$$%nicati#n, St ategy DF: D 34: 342 Page: 3Type: KN 6 ========== is created when a company matches its core competency to opportunities it has discovered in the marketplace. a' market opportunity b' market re@uirement c' competitive advantage d' strategic window e' competitive opportunity An': c AACSB: Analytic, St ategy DF: E 34: 342 Page: 3Type: KN
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 31.
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;icrosoft2s marketing: technical skills: and continuing investment in improving its software systems give it a&n' =========== because it makes computers easier to use. a' organi ational opportunity advantage b' strategic window c' market re@uirement d' market opportunity e' competitive advantage An': e AACSB: C#$$%nicati#n, St ategy DF: E 34: 342 Page: 3Type: AP 6n analysis of =========== e+amines internal factors that give the organi ation certain advantages and disadvantages in meeting the needs of its target markets. a' opportunities and threats b' market opportunities c' strengths and weaknesses d' activities and responsibilities e' organi ational resources An': c AACSB: Analytic, St ategy DF: E 34: 342 Page: 36 Type: KN Aohn Deere2s strong name recognition and solid customer demand for its farm and garden e@uipment are two elements of the firm2s a' strengths. b' opportunities. c' weaknesses. d' threats. e' strategies. An': a AACSB: Analytic, St ategy DF: E 34: 342 Page: 36 Type: AP ?avorable conditions in the marketplace environment that could produce business rewards for the organi ation if acted upon properly are called a' strengths. b' market strategies. c' market niches. d' threats. e' opportunities. An': e AACSB: Analytic, St ategy DF: E 34: 342 Page: 36 Type: KN 3uccessful business organi ations should take actions to convert internal weaknesses into =========== and e+ternal threats into ===========. a' opportunitiesB core competencies b' core competenciesB strengths c' opportunitiesB strengths d' strengthsB core competencies e' strengthsB opportunities An': e AACSB: Reflective Thinking, St ategy DF: ! 34: 342 Page: 36)3& Type: C5
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies .hen >pryland Hotel wants to have at least 01 percent of its customers indicating they had a memorable and satisfying e+perience at the hotel: this is an e+ample of a' implementing the marketing mi+ b' maintaining their corporate identity c' a marketing ob-ective d' a strategic plan e' a mission statement An': c AACSB: Reflective Thinking, St ategy DF: D Page: 3( Type: AP 6 long(term view: or vision: of what an organi ation wants to become is called a a' mission statement. b' purpose statement. c' vision statement. d' marketing plan. e' strategic vision. An': a AACSB: C#$$%nicati#n, St ategy DF: E 34: 343 Page: 3&
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8he @uestions C.ho are our customers?D and C.hat is our core competency?D are answered in the firm2s a' business plan. b' strategic window. c' mission statement. d' market opportunity statement. e' marketing plan. An': c AACSB: Analytic, St ategy DF: E 34: 343 Page: 3& Type: KN 6 firm2s uni@ue symbols: personalities: and philosophies comprise its a' corporate persona. b' corporate identity. c' corporate character. d' "*>2s identity. e' ethics. An': . AACSB: C#$$%nicati#n, St ategy DF: E 34: 343 .hich of the following is n#t a characteristic of a marketing ob-ective? a' It is consistent with both business(unit and corporate strategy. b' It is e+pressed in clear: simple terms. c' It is written so that it can be measured accurately. d' It specifies a time frame for its accomplishment. e' It clearly identifies how marketing strategy will be implemented. An': e AACSB: Reflective Thinking, St ategy DF: ! 34: 343
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.hich of the following statements is inc# ect? a' >f the three levels of planning: corporate strategy is the broadest. b' $usiness(unit strategy should be consistent with the corporate strategy. c' ;arketing strategy should be consistent with both the business(unit and corporate strategies. d' 3trategic planning begins at the marketing level and proceeds through business(unit and corporate levels. e' 3trategic planning begins at the corporate level and proceeds through business(unit and marketing levels. An': 0 AACSB: Reflective Thinking, St ategy DF: ! 34: 34" Page: 3()3* Type: KN
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 7esource deployment and coordination of functional areas of business are determined by a' the mission statement. b' corporate strategy. c' business(unit strategy. d' marketing strategy. e' the marketing mi+. An': . AACSB: C#$$%nicati#n, St ategy DF: ! 34: 34" Page: 3( Type: KN =========== strategy determines the means for utili ing resources in the functional areas of marketing: production: finance: research and development: and human resources to achieve the organi ation2s goals. a' "orporate b' $usiness(unit c' ;arketing d' ;ission statement e' ;arketing mi+ An': a AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: 3( Type: KN
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.ithin a business organi ation: a profit center that is self(supporting in terms of sales: markets: production: and other resources is known as a a' profit entity. b' strategic business unit. c' marketing program. d' small business. e' diversified corporation. An': . AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: 3* Type: KN Eraft purchased the Duracell $attery "ompany and now operates this division as a separate profit center within the firm. In this e+ample: Duracell is a&n' =========== unit of Eraft. a' strategic business b' marketing c' dependent d' independent e' corporate An': a AACSB: C#$$%nicati#n, St ategy DF: ! 34: 34" Page: 3* Type: AP 6 group that has the willingness: ability: and authority to buy a product is a a' market. b' consumer. c' strategic business unit. d' business customer. e' strategic window. An': a AACSB: C#$$%nicati#n, !a keting plan DF: D 34: 34"
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6ccording to the te+t: a market is defined as a' a place to buy products. b' the buyers of the products that a company develops: promotes: prices: and distributes. c' the specific group of customers on whom an organi ation focuses its marketing efforts. d' a group of individuals andFor organi ations that have needs for products in a product class and have the ability: willingness: and authority to purchase these products. e' the percentage of a group of customers that actually buys a specific product from a specific company. An': 0 AACSB: C#$$%nicati#n, !a keting plan DF: E 34: 34" Page: "+ Type: KN
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies Aason: a 1,(year old high school student: wants to buy a pack of ;arlboro 5ights. He has the money to purchase them: but he is still not considered to be a market for the product due to his lack of ===== to buy. a' ablity b' willingness c' authority d' need e' location An': c AACSB: Reflective Thinking, !a keting Plan DF: ! Page: "+ Type: AP 8he $oston "onsulting %roup2s matri+ is based on the a' idea that a firm2s market share and market attractiveness are the important factors for a marketing strategy. b' assumption that a firm2s actions have a profitable impact on marketing strategy. c' business position and market attractiveness of the firm. d' philosophy that a product2s market growth rate and its market share are important determinants of its marketing strategy. e' idea that a product2s market growth rate and market attractiveness determine the marketing strategy. An': 0 AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "+ Type: KN 6ccording to the $oston "onsulting %roup: marketers may classify their products as all of the following e7cept a' dogs. b' cash contributors. c' @uestion marks. d' stars. e' cash cows. An': . AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "+ Type: KN $ased on the work by the $oston "onsulting %roup: products with a dominant share of the market and good prospects for growth are a' dogs. b' cash cows. c' stars. d' @uestion marks. e' pigs. An': c AACSB: Analytic, St ategy DF: ! 34: 34" Page: "+)", Type: KN 8he $oston "onsulting %roup classifies products that have a dominant market share but low prospects for growth and that generate more cash than is re@uired to maintain market share as a' dogs. b' cash cows. c' stars. d' cash contributors. e' @uestion marks. An': . AACSB: Analytic, St ategy DF: E 34: 34" Page: "+)", Type: KN
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 35 8he director of marketing for 3; tapes tells the rest of the management team: C.hen it comes to our transparent packaging tape unit: our strategy will be to use funds generated here to support our venture in the industrial bonding market.D 8his strategy indicates that the packaging tape unit falls into which one of the following classifications? a' <roblem child b' 3tar c' "ash cow d' Dog e' Guestion mark An': c AACSB: Reflective Thinking, St ategy DF: D 34: 34" Page: "+)", Type: AP <roducts that have a relatively low market share and low prospects for growth are considered by the $oston "onsulting %roup to be a' dogs. b' cash cows. c' stars. d' cash contributors. e' @uestion marks. An': a AACSB: C#$$%nicati#n, St ategy DF: D 34: 34" Page: "+)", Type: KN 6ccording to the $oston "onsulting %roup: @uestion marks are characteri ed as products a' having a small share of a growing market and re@uiring large amounts of cash to build market share. b' generating more cash than is re@uired to maintain share. c' encompassing the greatest number of products. d' e+isting at a cost disadvantage and revealing few opportunities for growth at a reasonable cost. e' having substantial reported profits but needing a lot of cash to finance the rate of growth. An': a AACSB: C#$$%nicati#n, St ategy DF: D 34: 34" Page: ", Type: KN .hich of the following is the $#'t specific and detailed type of business strategy? a' business(unit b' marketing c' corporate d' customer service e' tactical An': . AACSB: Reflective Thinking, St ategy DF: ! 34: 34" Page: ",
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High %liding 6ir 6cademy is developing its marketing mi+ for the coming year. Its managers know that they must first select =========: which may be the most important decision they make in the planning process. a' the promotional strategy b' a distribution method c' the pricing strategy d' a target market e' the desired profit margin An': 0 AACSB: Analytic, St ategy DF: E Page: "2 Type: AP
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies .hich of the following statements about the marketing mi+ is inc# ect? a' 8he selection of the target market serves as the basis for the creation of the marketing mi+. b' 8he elements of the marketing mi+ are sometimes referred to as $a keting $i7 va ia.le'. c' *ach element of the marketing mi+ must be precisely matched with the needs of the target market. d' >nce a marketing mi+ has been created for a particular target market: it cannot be changed until a new strategic window opens. e' *ach element of the marketing mi+ must be precisely matched with the other elements of the marketing mi+. An': 0 AACSB: Analytic, P #0%ct, P #$#ti#n, P ice, Di't i.%ti#n DF: ! 34: 34" Page: "2 Type: C5 $usiness decisions made in creating a marketing mi+ a' are made before a target market is identified. b' are unchangeable once they are agreed upon by management. c' are only as good as the organi ation2s understanding of the needs of the target market. d' usually take place when a strategic window is open. e' must always be consistent with the firm2s opportunities. An': c AACSB: Reflective Thinking, !a keting Plan DF: D 34: 34" Page: "2 Type: C5 6ll marketing mi+ decisions must have two characteristicsH =========== and ===========. a' consistencyB fle+ibility b' consistencyB rigidity c' formalityB fle+ibility d' variabilityB fle+ibility e' formalityB rigidity An': a AACSB: C#$$%nicati#n, !a keting plan DF: ! 34: 34" Page: "" Type: KN %ucci %roup: a marketer of high(fashion products: achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items: like handbags: to be more competitive. 8his illustrates a company working to develop a marketing mi+ that is both ======= and =======. a' consistentB fle+ible b' formalB fle+ible c' variableB fle+ible d' consistentB rigid e' consistentB formal An': a AACSB: Analytic, !a keting Plan DF: ! 34: 34" Page: "" Type: AP 6 competitive advantage that cannot be readily copied by the competition is referred to as a&n' ========== advantage. a' controllable b' sustainable c' noncopyable d' effective e' implementable An': . AACSB: C#$$%nicati#n, !a keting plan DF: E 34: 34" Page: "" Type: KN
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 3! Harley(Davidson2s Harley >wner2s %roup &H>%' helps to foster strong relationships between riders and their motorcycles: giving it a&n' ===== over other motorcycle manufacturers. a' controllable advantage b' uncontrollable competitive advantage c' sustainable marketing advantage d' effective competitive advantage e' sustainable competitive advantage An': e AACSB: Reflective Thinking, !a keting Plan, St ategy DF: E Page: "" Type: AP $ecause of its highly efficient and low(cost distribution system: .al(;art has a ========= advantage over Emart. a' nonsustainable competitive b' sustainable marketing c' sustainable control d' sustainable implementation e' sustainable competitive An': e AACSB: Analytic, St ategy DF: E 34: 34" Page: "" Type: AP 6 marketing plan a' is characteristic of production(oriented firms and other mass producers. b' provides a framework for implementing and controlling marketing activities. c' always increases the marketing manager2s operating costs. d' produces plans that are short term in orientation. e' restricts the marketing manager2s future options. An': . AACSB: C#$$%nicati#n, !a keting plan DF: D 34: 34Page: ""
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3tarbucks is presently involved in a process of assessing marketing opportunities and resources: determining marketing ob-ectives: re(defining marketing strategies: and developing guidelines for implementation and control. 8hus: 3tarbucks is involved in a' strategic analysis. b' marketing planning. c' marketing management. d' marketing. e' market organi ation. An': . AACSB: Reflective Thinking, !a keting Plan, St ategy DF: D 34: 34Page: "" Type: AP .hich of the following is n#t a purpose of the marketing plan? a' "ommunicate internally with employees b' 6ssign tasks and responsibilities for implementation c' 3pecify the allocation of resources d' ;onitor the performance of a marketing strategy e' 3erve as a contract with the customer An': e AACSB: Reflective Thinking, !a keting Plan DF: ! Type: C5
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies Hallaway2s "orp.2s new shampoo: I32: is faltering badly in the market. Hallaway2s marketing personnel are unsure who is responsible for various marketing tasks: when these tasks are to be completed: or what resources have been allocated. Hallaway ;arketing Director "arolyn .illis said that the problem is that I32 has the most poorly written =========== she has ever seen. a' marketing plan b' competitive plan c' implementation plan d' media schedule e' product specification sheet An': a AACSB: Reflective Thinking, !a keting Plan DF: ! 34: 34Page: "")"Type: AP 8he 8e+as <itt $arbecuem "orporation has conducted a 3.>8 analysis of its competition: and sees a marketing opportunity for its new 8e+as <it $arbecue restaurant. It has developed its marketing plan to include the type of products it will sell: the location for the restaurant: and the pricing it will use. 8heir plan includes a marketing ob-ective to make a profit of #J the first year of operation. 3o far: the owners of the restaurant have eliminated a key piece of the marketing plan: which is ======. a' specifying how they will achieve their marketing ob-ective b' how they will address the competition2s prices c' coming up with a @uantitative measure for their ob-ective d' developing a @ualitative measure for their ob-ective e' assessing their weaknesses An': a AACSB: Reflective Thinking, !a keting Plan, St ategy Page: ""8"Type: AP .hich of the following is n#t a component of a marketing plan? a' *nvironmental analysis b' ;arketing strategies c' <roduct d' *+ecutive summary e' ;arketing implementation An': c AACSB: Analytic, !a keting Plan DF: ! 34: 34-
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6 marketing plan usually begins with a&n' a' e+ecutive summary. b' introduction to the company2s marketing ob-ectives. c' summary of current performance as compared with past performance. d' situation analysis. e' opportunity and threat analysis. An': a AACSB: C#$$%nicati#n, !a keting plan DF: E 34: 34Type: KN 8he process of putting marketing strategies into action is called a' marketing implementation. b' marketing control. c' marketing action. d' marketing auditing. e' the marketing action plan. An': a AACSB: C#$$%nicati#n, !a keting plan DF: E
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 39 In essence: all organi ations have two types of strategyH =========== is the strategy that the organi ation decides on during the planning phase: and =========== is the strategy that actually takes place. a' planned strategyB reali ed strategy b' intended strategyB reali ed strategy c' intended strategyB implemented strategy d' planned strategyB implemented strategy e' reali ed strategyB implemented strategy An': . AACSB: Analytic, St ategy DF: E 34: 346 Page: "6 Type: KN 8he ========= strategy in an organi ation often does not live up to marketing planners2 e+pectations. a' intended b' e+pected c' planned d' control e' reali ed An': e AACSB: C#$$%nicati#n, St ategy DF: ! 34: 346 Page: "6 Type: KN 3ayid2s employer is currently developing a new marketing strategy. 8he top managers have developed the marketing strategy and have given it to 3ayid so that he can now develop an implementation plan. 3ayid2s company will $#'t likely end up with which type of strategy? a' Decentrali ed b' "entrali ed c' 7igid d' Intended e' 7eali ed An': e AACSB: Analytic, St ategy DF: ! 34: 346 Page: "6 Type: AP ?or marketing implementation to be successful: the needs of ========= customers must be met. a' e+ternal b' internal c' both internal and e+ternal d' planned e' both planned and reali ed An': c AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: "( Type: KN =========== refers to the coordination of internal e+changes between the organi ation and its employees to better achieve successful e+ternal e+changes between the organi ation and its customers. a' Internal management b' Internal leadership c' *mpowerment d' Internal marketing e' 8otal @uality management An': 0 AACSB: C#$$%nicati#n, St ategy DF: ! 34: 346 Page: "( Type: KN 9sing information about customers to create marketing strategies that develop and sustain desirable long( term customer relationships is known as a' computer resource management. b' customer resource management. c' customer relationship management. d' customer research management. e' e(marketing. An': c AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "& Type: KN
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies .hat focuses on using information about customers to create marketing strategies that develop and sustain desirable customer relationships? a' "ustomer relationship management b' *lectronic data interchange c' $usiness(to(consumer marketing d' 3trategic partnerships e' 8he marketing concept An': a AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "& Type: KN *lectronic marketing has greatly improved the ability of marketers to target individual customers. 6s a result: many feel that marketing2s emphasis is shifting from share of market to share of a' budget. b' consumer online time. c' customer. d' awareness. e' commitment. An': c AACSB: Analytic, Techn#l#gy, St ategy DF: E 34: 34" Page: "& Type: KN $orders $ooks uses technology to help them identify specific customers: establish interactive dialogues with them to learn about their needs: and combine this information with their purchase histories to customi e products to meet those needs. $orders $ooks is using the ===== approach. a' target market positioning b' 3.>8 analysis c' customer relationship management d' total @uality management e' internal marketing An': c AACSB: Analytic, Techn#l#gy, St ategy DF: ! 34: 34" Page: "& Type: AP .hich of the following is fal'e with regard to customer lifetime value? a' It is a key measurement that forecasts a customer2s lifetime economic contribution based on continued relationship marketing efforts. b' It can be calculated by taking the sum of the customer2s present value contributions to profit margins over a specific timeframe. c' It includes not only an individual2s propensity to engage in purchases but also his or her strong word( of(mouth communication about the firm2s products. d' 6ll customers have e@ual value to a firm. e' It is the only gauge that incorporates revenue: e+pense: and customer behavior and adopts a customer( centric approach. An': 0 AACSB: Reflective Thinking, !a keting Plan, St ategy DF: ! 34: 34" Page: "& Type: KN 6ccording to the te+t: the /1F21 rule suggests that a' /1 percent of profits come from 21 percent of business customers. b' 21 percent of profits come from /1 percent of business customers. c' 21 percent of profits come from /1 percent of customers. d' /1 percent of profits come from 21 percent of customers. e' /1 percent of profits come from 21 percent of sales. An': 0 AACSB: C#$$%nicati#n, St ategy DF: ! 34: 34"
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies "ustomer relationship management is facilitated by gathering useful data from a' telephone interactions with customers. b' personal interactions with customers. c' online interactions with customers. d' all customer(contact points. e' all e+change transactions. An': 0 AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "& Type: KN "ustomer relationship management systems cannot be effective unless they are developed as a' market(share building tools. b' profit(boosting tools. c' selling tools. d' cost(reduction tools. e' relationship(building tools. An': e AACSB: C#$$%nicati#n, St ategy DF: ! 34: 34" Page: "& Type: C5 8he most important component of customer relationship management is a' technology. b' profits. c' sales. d' share of an individual customer2s purchases. e' relationships with customers. An': e AACSB: Analytic, St ategy DF: E 34: 34" Page: "&
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;eredith knows that whether she decides to interact with her customers in person: on the telephone: online: or by fa+: that ======== should ultimately drive the marketing strategy. a' marketing research b' polite responsiveness c' her customers d' product availability e' company goals An': c AACSB: Reflective Thinking, St ategy DF: E 34: 34" Page: "& Type: AP 8he employees of Kingerman2s Deli are its ====== customers. a' e+ternal b' e+tended c' intended d' internal e' domestic An': 0 AACSB: C#$$%nicati#n, !a keting plan DF: E
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.hich of the following statements .e't describes total @uality management? a' 6 process aimed at improving product @uality: increasing competition based on @uality: and @uality improvement among employees b' 8he coordination of efforts directed at improving customer satisfaction: increasing employee participation: forming and strengthening supplier partnerships: and facilitating continuous @uality improvements c' 6 method of increasing overall financial benefits: emphasi ing faster development of innovations: and improving customer satisfaction d' 6 process directed at controlling marketing activities at a higher level of involvement among the firms2 employees e' 6n approach used to emphasi e the need for @uality among a firm2s hierarchy of employees: beginning with top(level e+ecutives An': . AACSB: Reflective Thinking, St ategy DF: D 34: 346 Page: "( Type: KN
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 3tratford ;anufacturing is interested in total @uality management and wants to learn more about its principles. .hich of the following elements will 3tratford n#t address in its investigation of 8G;? a' Improving customer satisfaction b' <urchasing lowest(cost materials c' Increasing employee participation d' 3trengthening supplier partnerships e' "ontinuous product improvements An': . AACSB: Reflective Thinking, St ategy DF: ! 34: 346 Page: "( Type: AP If 6pple measured and evaluated the @uality of its goods: services: and processes as compared with those of the best(performing companies in the computer industry: it would be employing a' uniform commitment to @uality marketing. b' internal marketing. c' e+ternal marketing. d' @uality marketing. e' benchmarking. An': e AACSB: Analytic, St ategy DF: E 34: 346 Page: "* Type: AP 8he term C======D describes measuring and evaluating a firm2s @uality in products and processes against industry leaders. a' total @uality management b' benchmarking c' internal marketing d' empowerment e' implementation An': . AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: "* Type: KN 6 server ein a fine restaurant has the authority to give a complimentary dessert to a dissatisfied customer when the customer complains about the meal or service. 8his is an e+ample of a' benchmarking. b' individualism. c' good training. d' empowerment. e' locali ed authority. An': 0 AACSB: C#$$%nicati#n, !a keting plan 34: 346 Page: "* Type: AP =========== involves giving customer(contact employees the authority and responsibility to make marketing decisions without seeking the approval of a supervisor. a' $enchmarking b' Internal marketing c' 8otal @uality management d' ;arketing implementation e' *mpowerment An': e AACSB: C#$$%nicati#n, !a keting plan DF: E 34: 346 Page: "* Type: KN
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 43 Eate is upset because the bank did not credit her account with a deposit: which resulted in a returned check to Eate2s landlord. .hen she was told the branch manager was on vacation: Eate resigned herself to waiting two weeks to have the matter resolved. 8o her surprise: though: the receptionist apologi ed for the error and drafted a letter to Eate2s landlord while Eate waited. 8he bank was engaging in which type of decision( making strategy? a' *mployee empowerment b' "entrali ed management c' 3tructured d' Immediate(focused e' <roduct(focused An': a AACSB: Analytic, St ategy DF: ! 34: 346 Page: "* Type: AP In a traditional organi ation: marketing decisions are likely to be a' very decentrali ed. b' centrali ed at the top levels of the organi ation. c' made by frontline employees. d' made by frontline managers. e' made only by the "*>. An': . AACSB: C#$$%nicati#n, !a keting plan, 't ategy Type: C5
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6t ;rs. ?ill2s "ookie "o.: top(level managers delegate very little authority to lower(level employees. ;rs. ?ill2s is a&n' =========== organi ation. a' centrali ed b' decentrali ed c' empowered d' marketing(oriented e' total @uality management An': a AACSB: C#$$%nicati#n, !a keting plan, 't ategy DF: E 34: 346 Page: -+ Type: AP 8he 6cme "orporation is e+panding operations into countries outside the 9nited 3tates. 8o improve local managers2 responsiveness to local conditions: 6cme2s senior management has decided to delegate decision( making authority further down the chain of command. 6cme is a' building a marketing(oriented organi ation. b' empowering employees. c' centrali ing. d' decentrali ing. e' making a serious error. An': 0 AACSB: Reflective Thinking, St ategy DF: E 34: 346 Page: -+ Type: AP 6 marketing unit can be organi ed according to functions: products: regions: and a' sales. b' target markets. c' competitive units. d' types of customers. e' product features. An': 0 AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: -+
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies Eey factors in determining the .e't organi ational structure for a marketing unit are the a' preferences of top management. b' fiscal resources of the firm. c' number of employees. d' diversity of the firm2s products and the characteristics and needs of the people in the target market. e' skill levels of employees. An': 0 AACSB: Reflective Thinking, St ategy DF: E 34: 346 Page: -+ Type: KN
111. 6ccording to the te+tbook: which of the following statements is $#'t accurate? a' 6 small company always should organi e by products: and a large organi ation should organi e by regions. b' 8here is no single approach to organi ing a marketing unit that works well in all businesses. c' 3ome organi ations: by nature: have no specific internal structure. d' >rgani ing by type of customer works best for companies with few groups of customers. e' 9sing several bases for organi ing leads to uncoordinated marketing management. An': . AACSB: Reflective Thinking, !a keting Plan, St ategy DF: D 34: 346 Page: -+ Type: C5 111. If you were a marketing manager: under which type of organi ational structure would you $#'t likely be working if your firm were a large business with centrali ed marketing operations? a' >rgani ation by type of customer b' >rgani ation by function c' >rgani ation by regions d' >rgani ation by products and regions e' >rgani ation by products An': . AACSB: Reflective Thinking, !a keting Plan, St ategy DF: D 34: 346 Page: -+) -, Type: C5 112. 6 disadvantage of organi ing a firm2s marketing unit by products is that a' product managers do not have ade@uate control over marketing activities. b' large firms might e+perience coordination problems. c' it can be rather e+pensive. d' speciali ed marketing assistance is less readily available. e' marketing fle+ibility is limited. An': c AACSB: Reflective Thinking, !a keting Plan, St ategy DF: ! -, Type: KN
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113. 6 firm that markets diverse products would $#'t likely base the organi ation of its marketing department on a' products. b' regions. c' functions. d' types of customers. e' marketing ob-ectives. An': a AACSB: Reflective Thinking, St ategy DF: E 34: 346 Page: -+)-, Type: C5 11!. <rocter L %amble: like many firms in the consumer packaged(goods industry: is organi ed by a' function. b' product. c' region. d' types of customers. e' subregion. An': . AACSB: C#$$%nicati#n, St ategy DF: ! 34: 346 Page: -,+ Type: AP
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 45 11#. ?ord has centrali ed marketing operations with personnel who direct marketing research: distribution: sales: advertising: and so forth reporting directly to the top(level marketing e+ecutive. ?ord2s marketing department is organi ed by a' product. b' region. c' types of customers. d' subregion. e' function. An': e AACSB: Reflective Thinking, St ategy DF: E 34: 346 Page: -+ Type: AP 11). >rgani ing a marketing unit by regions works well for a company that a' produces and markets diverse products. b' is small and has a centrali ed marketing operation. c' markets products throughout the nation. d' has several groups of customers whose needs and problems are different. e' offers speciali ed marketing mi+es for different products. An': c AACSB: C#$$%nicati#n, !a keting plan DF: ! 34: 346 Type: KN
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11,. 3uppose a customer calls 6nn2s office at ?rito(5ay in 6tlanta. 8he customer has a friend in 3eattle who was -ust telling her about a new snack ?rito(5ay has introduced that is selling rapidly. 6nn2s office does not market this product: and at the present knows very little about it. $ased on this information: this firm is $#'t likely organi ed according to which of the following? a' ?unction b' <roduct c' 7egion d' "ustomer e' ;arket An': c AACSB: Reflective Thinking, St ategy DF: E 34: 346 Page: -, Type: AP 11/. 6 firm that wants to put more senior management personnel into the field: to get closer to customers: and to enable the company to respond more @uickly and efficiently to competitors would probably organi e its marketing unit on the basis of a' functions. b' regions. c' customer types. d' markets. e' products. An': . AACSB: Reflective Thinking, St ategy DF: ! 34: 346 Page: -, Type: KN 110. 6n appliance manufacturer that sells to large retail stores: wholesalers: and institutions would probably organi e its marketing unit on the basis of a' subregions. b' national divisions. c' types of customers. d' functions. e' products. An': c AACSB: Reflective Thinking, St ategy DF: ! 34: 346 Page: -, Type: C5
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 111. 8he marketing control process consists of a' establishing goals: market scanning: and market share analysis. b' establishing performance standards: evaluating performance: and reducing the differences between desired and actual performance. c' establishing goals and measuring performance. d' planning: implementing: and measuring marketing activities. e' setting ob-ectives: implementing strategies: and reducing the differences between desired and actual performance. An': . AACSB: C#$$%nicati#n, St ategy DF: D 34: 346 Page: -, Type: KN 111. ;arketing managers at "onsolidated *@uipment "orporation are involved in establishing marketing performance standards: evaluating performance: and reducing the differences between actual and desired performance. 8hese marketing managers are engaged in a' the systems design process. b' the marketing control process. c' marketing systems design. d' the marketing audit. e' marketing evaluation. An': . AACSB: Reflective Thinking, St ategy DF: ! 34: 346 Page: -, Type: AP 112. 8he first step in the marketing control process is to a' take corrective action. b' reduce the difference between actual and desired standards. c' evaluate actual performance. d' compare actual performance and standards. e' establish performance standards. An': e AACSB: C#$$%nicati#n, St ategy DF: E 34: 346
Page: -,)-2
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113. 6n e+pected level of performance against which actual performance can be compared is a a' standard performance. b' standard of e+cellence. c' step in sales analysis. d' performance standard. e' corrective standard. An': 0 AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: -, Type: KN 11!. ;orris $usiness <roducts "o. has established a monthly sales @uota of M1#1:111. 8his is a&n' a' marketing control process. b' evaluation of actual performance. c' evaluation standard. d' sales analysis. e' performance standard. An': e AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: -, Type: AP 11#. >ne way that 3aturn evaluates its product and service level is by how well it ranks on the A. D. <ower L 6ssociates 3ales 3atisfaction 3urvey. In doing so: 3aturn is a' controlling marketing activities. b' taking corrective action. c' empowering its employees. d' evaluating actual performance. e' setting performance standards. An': 0 AACSB: Reflective Thinking, St ategy DF: ! 34: 346 Page: -,)-2 Type: AP
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 4! 11). ;arketing managers can take each of the following corrective actions for reducing a discrepancy between established performance standards and actual performance e7cept a' improving actual performance. b' reducing the performance standard. c' totally changing the performance standard. d' changing the marketing strategy. e' coordinating a new step in performance analysis. An': e AACSB: Analytic, St ategy DF: D 34: 346 Page: -2+ Type: KN 11,. .hen an organi ation attempts to control its marketing activities: it may find it difficult to a' determine their effect on sales volume. b' use the information it collects. c' obtain the necessary information. d' get the accounting department to cooperate. e' develop a marketing plan. An': c AACSB: C#$$%nicati#n, St ategy DF: D 34: 346 Page: -2 Type: KN 11/. 8he time lag between the performance of marketing activities and their results a' limits the marketing manager2s ability to measure the effectiveness of marketing activities. b' facilitates the ability to measure performance. c' increases the chance of accurate measurement. d' limits the amount of money to be spent on measurement. e' increases the likelihood of having a successful marketing mi+. An': a AACSB: Analytic, St ategy DF: E 34: 346 Page: -2 Type: C5 9se the following to answer @uestions 110(122H 3outhwest 6irlines has a history of being able to retain its employees due to the atmosphere and culture of the company. *mployees have been known to dress up in costume on an airplane: engage in NgamesN with the passengers: and generally provide a fun atmosphere for traveling. .hile other airlines have low rates of customer satisfaction: 3outhwest tends to maintain a high rating with its customers. 7ecent gas price hikes have caused most airlines to charge for checked luggage and to fill every flight to its ma+imum: adding to the negative e+perience of airline travel. 3outhwest keeps its costs low through several methods: one being that they do not serve meals on flights: or provide pre(boarding passes. 8he typical flight is two hours or less and occurs between several selected cities rather than flying to practically anywhere in the country. 3outhwest is known for its low fares: its dependability: and its on(time flights. 110. ;aintaining the current culture of NfunN for 3outhwest 6irlines2 employees is most likely a&n' a' marketing strategy. b' marketing ob-ective. c' organi ation resource. d' environmental force. e' overall organi ational ob-ective. An': e AACSB: Reflective Thinking, St ategy DF: ! 34: 34, Page: "()"*
Type: AP
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 121. 8he fact that 3outhwest 6irlines has a history of being able to retain its employees is a === in its 3.>8 analysis. a' weakness b' strength c' threat d' opportunity e' comparative advantage An': . AACSB: Reflective Thinking, St ategy DF: E 34: 34" Page: 36 Type: AP 121. In 3outhwest 6irlines2 3.>8 analysis: the rising gas prices are a&n' ====: while the fact that other airlines are charging for all checked baggage may create a&n' ========: a' threatB strength b' weaknessB strength c' threatB opportunity d' weaknessB opportunity e' opportunityB strength An': c AACSB: Reflective Thinking, St ategy DF: ! 34: 34" Page: 3( Type: AP 122. 3outhwest2s low fares: dependability: and its on(time flights represent its a' competitive advantage b' marketing opportunity c' marketing plan d' marketing ob-ectives e' total @uality management An': a AACSB: Reflective Thinking, St ategy DF: E 34: 342 9se the following to answer @uestions 123(12)H
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*Operience 5imited is a company which offers tours and vacations that include participation in an e+treme sport: such as hang(gliding: bungee -umping: skydiving: and motocross. 6drian ;oss: *Operience 5imited2s owner: has -ust finished developing the strategic plan: including marketing ob-ective of growing his customer base by 1#J during the coming year. He believes that the best way of reaching that ob-ective is to promote to the college(aged student. In the past: the ma-ority of his sales have been to males under the age of 20: participating in hang(gliding and bungee -umping at various tourist locations. He wants to e+pand his skydiving and motocross tours: but isn2t sure whether or not the e+pansion will be profitable. He currently has a database containing all the customers who have gone on a hang(gliding or bungee -umping vacation with his company. 123. 6ccording to the $"% matri+: the hang(gliding and bungee -umping tours have been a ==== for *Operience 5imited: while the skydiving and motocross tours represent a=============. a' starB dog b' cash cowB @uestion mark c' cash cowB star d' starB cash cow e' starB @uestion mark An': . AACSB: Reflective Thinking, St ategy DF: ! 34: 34Page: "+)", Type: AP
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 12!. 8he fact that college enrollments have been increasing at a fast rate the past few years is an e+ample of ===== and creates a ======= for *Operience 5imited. a' an environmental factorB marketing opportunity b' an environmental factorB strategic door c' a company strengthB a marketing opportunity d' a company strengthB a competitive advantage e' a marketing opportunityB competitive advantage An': a AACSB: Reflective Thinking, St ategy DF: ! 34: 342 Page: 3" Type: AP 12#. 8he information in *Operience 5imited2s database could be .e't used to develop a' a 8G; program b' 3.>8 analysis c' a marketing plan d' a "7; program e' an internal marketing program An': 0 AACSB: Reflective Thinking, !a keting Plan DF: ! 34: 34" Type: AP
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12). 8he college(aged student represents *Operience 5imited2s =====: and the tours its operates represent the ====== element of the marketing mi+. a' target marketB distribution b' customer relationshipsB distribution c' cash cowB product d' cash cowB distribution e' target marketB product An': e AACSB: Reflective Thinking, !a keting Plan, St ategy DF: E 34: 342 Page: "2 Type: AP 12,. 8 ? 8hrough the process of strategic planning: a firm establishes an organi ational mission and goals: corporate strategy: marketing ob-ectives: marketing strategy: and a marketing plan. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 34, Page: 3&)3( Type: KN 12/. 8 ? 8he strategic planning process begins with a detailed analysis of the organi ation2s strengths and weaknesses and the identification of opportunities and threats within the marketing environment. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 34, Page: 2* Type: KN 120. 8 ? 6 marketing strategy is a written document that specifies the activities to be performed to implement and control a firm2s marketing activities. An': Fal'e AACSB: C#$$%nicati#n, St ategy DF: ! 34: 34, Page: 33 Type: KN 131. 8 ? ;arketing strategies should be established before marketing ob-ectives are decided. An': Fal'e AACSB: Reflective Thinking, St ategy DF: E 34: 34, Page: 33 Type: KN 131. 8 ? 6 strategic window results from the right combination of circumstances and timing: allowing a firm to take action to reach a particular target market. An': Fal'e AACSB: C#$$%nicati#n, St ategy DF: ! 34: 342 Page: 3")3Type: KN 132. 8 ? 6 core competency is something a firm does e+tremely wellPsometimes so well that it gives the company an advantage over its competition.
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Chapter 2: Planning, Implementing, and Controlling Marketing Strategies An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 342
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133. 8 ? 6 competitive advantage is created when a company matches its core competency to the opportunities it has discovered in the market. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 342 Page: 3Type: KN 13!. 8 ? 8he analysis of strengths and weaknesses focuses on internal factors that give the organi ation certain advantages and disadvantages in meeting the needs of its target markets. An': T %e AACSB: Analytic, St ategy DF: E 34: 342 Page: 36 Type: KN 13#. 8 ? 6 long(term view: or vision: of what the organi ation wants to become is called a mission proclamation. An': Fal'e AACSB: C#$$%nicati#n, St ategy DF: E 34: 343 Page: 3& Type: KN 13). 8 ? 6 firm2s organi ational goals should be derived from its opportunities. An': Fal'e AACSB: Reflective Thinking, St ategy DF: ! 34: 343 Type: KN 13,. 8 ? 6 firm2s organi ational mission should be derived from its goals. An': Fal'e AACSB: Reflective Thinking, St ategy DF: ! 34: 343 Type: KN
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130. 8 ? ;arketing ob-ectives should be stated in such a way that the degree of accomplishment can be measured accurately. An': T %e AACSB: Reflective Thinking, St ategy DF: E 34: 343 Page: 3( Type: KN 1!1. 8 ? ;arketing ob-ectives state what is to be accomplished through marketing activities. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 343 Page: 3( 1!1. 8 ? 6 marketing ob-ective need not be consistent with the firm2s overall ob-ectives. An': Fal'e AACSB: Reflective Thinking, St ategy DF: E 34: 343 Page: 3( Type: KN 1!2. 8 ? "orporate strategy determines the means for utili ing resources in the functional areas of business to reach the organi ation2s goals. An': T %e AACSB: Reflective Thinking, St ategy DF: E 34: 34" Page: 3( Type: KN 1!3. 8 ? "orporate strategic planners focus on dimensions such as competition: diversification: differentiation: environmental focus: and interrelationships among 3$9s. An': T %e AACSB: C#$$%nicati#n, St ategy DF: ! 34: 34" Page: 3()3*
Type: KN
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1!!. 8 ? 6 strategic business unit is not self(supporting in terms of sales: markets: production: and other resources. An': Fal'e AACSB: Reflective Thinking, St ategy DF: ! 34: 34" Page: 3* Type: KN
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 1!#. 8 ? 6 market is a group of individuals andFor organi ations that have needs for products in a product class and have the ability: willingness: and authority to purchase these products. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "+ Type: KN
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1!). 8 ? 8he $oston "onsulting %roup approach is based on a philosophy that a product2s market growth rate and its market share relative to competition should be helpful in determining its marketing strategy. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "+)", Type: KN 1!,. 8 ? 8he $oston "onsulting %roup2s model serves as a diagnostic tool to spotlight strategic business units that have an opportunity to grow rather than as a guide for making strategy prescriptions. An': T %e AACSB: Reflective Thinking, St ategy DF: ! 34: 34" Page: "+)", Type: KN 1!/. 8 ? ;arketing managers can classify a firm2s products into four basic typesH stars: cash cows: dogs: and @uestion marks. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "+)", Type: KN 1!0. 8 ? 3tars are profitable products that usually generate more cash than is re@uired to maintain share. An': Fal'e AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "+)", Type: KN 1#1. 8 ? "ash cows are market leaders that are growing fast: with substantial reported profits. An': Fal'e AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "+)", Type: KN 1#1. 8 ? Guestion marks e+ist at a cost disadvantage and e+hibit few opportunities for growth at a reasonable cost. An': Fal'e AACSB: C#$$%nicati#n, St ategy DF: ! 34: 34" Page: "+)", Type: KN 1#2. 8 ? 8he long(term health of the firm depends solely on having products that generate cash and provide acceptable reported profits. An': Fal'e AACSB: Reflective Thinking, St ategy DF: ! 34: 34" Page: ", Type: KN 1#3. 8 ? .hen properly implemented: a good marketing strategy enables a company to achieve its business( unit and corporate ob-ectives. An': T %e AACSB: Reflective Thinking, St ategy DF: ! 34: 34" Page: ", Type: KN 1#!. 8 ? 8he decisions made in creating a marketing mi+ are only as good as the organi ation2s understanding of the target market. An': T %e AACSB: Reflective Thinking, St ategy DF: ! 34: 34" Page: "2)"3 Type: KN 1##. 8 ? ;arketing mi+ decisions must have two characteristicsH consistency and timeliness. An': Fal'e AACSB: C#$$%nicati#n, St ategy DF: ! 34: 34" Page: "2)"3 Type: KN 1#). 8 ? *ach of the marketing mi+ elements must work together with the others. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "2
Type: KN
52
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
1#,. 8 ? 6 sustainable competitive advantage is one that cannot be copied by a firm2s competitors. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 34" Page: "" Type: KN 1#/. 8 ? ;arketing planning consists of two ma-or componentsH marketing ob-ectives and a control process. An': Fal'e AACSB: C#$$%nicati#n, !a keting plan DF: ! 34: 34Page: "" Type: KN 1#0. 8 ? ;arketing planning establishes an organi ational mission and goals: corporate strategy: marketing ob-ectives: marketing strategy: and a marketing plan. An': Fal'e AACSB: C#$$%nicati#n, !a keting plan DF: ! 34: 34Page: "" Type: KN 1)1. 8 ? ;arketing planning and implementation are ine+tricably linked in successful businesses. An': T %e AACSB: Reflective Thinking, !a keting Plan DF: ! 34: 34Page: "" Type: KN 1)1. 8 ? ;arketing plans may be developed for strategic business units: product lines: individual products or brands: or specific markets. An': T %e AACSB: C#$$%nicati#n, !a keting plan DF: E 34: 34Page: "" Type: KN 1)2. 8 ? 8he reali ed strategy is the one management decided upon during the planning phase and wants to implement. An': Fal'e AACSB: Reflective Thinking, !a keting Plan DF: E 34: 346 Page: "-)"6 Type: KN 1)3. 8 ? Internal marketing may involve market segmentation: product development: research: distribution: public relations: and sales promotion. An': T %e AACSB: C#$$%nicati#n, !a keting plan DF: E 34: 346 Page: "-)"6 Type: KN 1)!. 8 ? 8he concept of customer lifetime value includes only the customer2s likelihood to engage in purchases. An': Fal'e AACSB: C#$$%nicati#n, St ategy DF: E Page: "& Type: KN 1)#. 8 ? "ustomer 7elationship ;anagement strives to build satisfying e+change relationships between buyers and sellers by gathering useful data at all customer(contact points. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E Page: "& Type: KN 1)). 8 ? Internal management refers to the coordination of internal e+changes between the organi ation and its employees to achieve successful e+ternal e+changes between the organi ation and its customers. An': Fal'e AACSB: C#$$%nicati#n, !a keting plan, 't ategy DF: ! 34: 346 Page: "( Type: KN 1),. 8 ? Guality control refers to the measurement and evaluation of the @uality of an organi ation2s goods: services: or processes as compared with the best(performing companies in the industry. An': Fal'e AACSB: C#$$%nicati#n, St ategy DF: ! 34: 346 Page: "( Type: KN
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 53 1)/. 8 ? ?irms that truly adopt the marketing concept develop a distinct organi ational culture based on a shared set of beliefs that makes customers2 needs the pivotal point of the firm2s decisions about strategy and operations. An': T %e AACSB: Reflective Thinking, St ategy DF: ! 34: 346 Page: "* Type: KN 1)0. 8 ? In a traditional organi ation: marketing decisions are generally centrali ed at the top levels of the organi ation. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: -+ Type: KN 1,1. 8 ? 6 marketing unit can be organi ed according to functions: products: regions: or customers. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: -+ Type: KN 1,1. 8 ? 6 functional organi ation works effectively for large: decentrali ed companies. An': Fal'e AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: -+
Type: KN
1,2. 8 ? <roduct organi ation is appropriate for a firm that produces and markets a diverse set of products. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: -+ Type: KN 1,3. 8 ? 6 large company that markets products throughout the nation could use a regional type of organi ation. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: -+)-, Type: KN 1,!. 8 ? >rgani ation by types of customers can work well for a firm that has several groups of customers with different needs and problems. An': T %e AACSB: Reflective Thinking, St ategy DF: E 34: 346 Page: -, Type: KN 1,#. 8 ? <erformance standards are established as part of the marketing control process. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: -,
Type: KN
1,). 8 ? 8he marketing control process does not monitor the activities of e+ternal sources of marketing assistance. 6nsH ?alse 66"3$H 7eflective 8hinking: 3trategy D?H ; 5>H 5>) <ageH #1(#2 8ypeH EQ
54
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
1,,. 8 ? 8he primary way to reduce the discrepancy between planned and actual performance is to rewrite the performance standard. An': Fal'e AACSB: Reflective Thinking, St ategy DF: ! 34: 346 Page: -,)-2 Type: KN 1,/. 8 ? 3ometimes the information re@uired to control marketing activities is available but too costly. An': T %e AACSB: C#$$%nicati#n, St ategy DF: E 34: 346 Page: -2 Type: KN 1,0. 8 ? 8he time lag between the performance of marketing activities and the effects of such activities limits a marketing manager2s ability to measure the effectiveness of marketing activities. An': T %e AACSB: Reflective Thinking, St ategy DF: ! 34: 346 Page: -2 Type: KN

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