Marketing Management Developing Marketing Strategies and Plans

Marketing Management Developing Marketing Strategies and Plans 1) A key ingredient of the marketing management process is insightful, ________ marketing strategies and plans that can guide marketing activities. a. niche b. measurable c. creative d. micro e. macro Answer: c 2) Value delivery process can be divided into three phases, out of which "choosing the value" implies _______, which is the essence of strategic marketing a. segmentation, developing, and delivering b. segmentation, targeting, and positioning c. targeting, positioning, and communicating d. targeting, positioning, and delivering e. researching, developing, and delivering Answer: b 3) The task of any business is to deliver ________ at a profit. a. customer needs b. products c. improved quality d. customer value e. products and services Answer: d 4) In a hypercompetitive economy such as ours, a company can win only by fine-tuning the value delivery process and choosing, providing, and ________ superior value. a. composing b. communicating c. researching d. developing e. selecting target markets with Answer: b 5) The traditional view of marketing is that the firm makes something and then ________ it. a. markets b. services c. distributes d. prices e. sells Answer: e 6) James Frank has been put in charge of all the activities involved in receiving and approving orders, shipping the goods on time, and collecting payment. Mr. Frank's task is best described as part of the ________. a. market-sensing process b. new-offering realization process c. customer acquisition process d. customer relationship management process e. fulfillment management process Answer: e Page Reference: 34 7) The first phase of the value creation and delivery sequence is ________ that represents the "homework" marketing must do before any product exists. a. target marketing b. projective thinking c. service consideration d. market research e. choosing the value Answer: e 8) The last step in the value creation and delivery sequence is ________ the value where the sales force, sales promotion, advertising, and other communication tools announce and promote the product. a. reversing b. distributing c. developing d. researching e. communicating Answer: e 9) You've been hired by a company to guide them through replacing the traditional physical process sequence with a value creation and delivery sequence. You would recommend that they replace their first step "make the product" with a. "communicate the value". b. "design the product". c. "choose the value". d. "sell the product". e. "provide the value". Answer: c 10) The holistic marketing framework is designed to address three key management questions: value ______, value creation, and value delivery. a. proposition b. chain c. exploration d. segmentation e. network Answer: c 11) The ________ is a tool for identifying ways to create more customer value. a. promotion channel b. value chain c. brand loyalty index d. supplier database e. customer survey Answer: b 12) Today, teams develop the ______________ with inputs and sign-offs from every important function. a. market plan b. organizational plan c. corporate mission d. customer-value statement e. strategic marketing plan Answer: a 13) Which of the following is NOT one of the four planning activities undertaken by all corporate headquarters? a. defining the corporate mission b. establishing strategic business units c. assigning resources to each SBU d. assessing growth opportunities e. deciding sales channels Answer: e 14) The ________ identifies nine strategically relevant activities that create value and cost in a specific business. a. manager's log b. value proposition c. value chain d. annual report e. mission statement Answer: c 15) The ________ in the value chain cover the sequence of bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), and servicing them (service). a. secondary activities b. manufacturing process c. tertiary activities d. operations process e. primary activities Answer: e 16) Procurement, technology development, human resource management, and firm infrastructure are handled in certain specialized departments and are called a. support activities. b. benchmark activities. c. inventory activities. d. primary activities. e. materials handling. Answer: a 17) The firm should estimate its competitors' costs and performances as ________ against which to compare its own costs and performance. a. standards b. challenges c. competition d. moveable standards e. benchmarks Answer: e Page Reference: 33 18) The firm's success depends not only on how well each department performs its work, but also on how well the various departmental activities are coordinated to conduct a. satellite businesses. b. core technologies. c. core values. d. core strategies. e. core business processes. Answer: e Page Reference: 33 19) With respect to core business processes, all the activities involved in gathering market intelligence, disseminating it within the organization, and acting on the information is referred to as the a. market sensing process. b. market research process. c. deployment process. d. market pulse process. e. target marketing process. Answer: a Page Reference: 33 20) With respect to the core business processes, all the activities involved in researching, developing, and launching new high-quality offerings quickly and within budget are referred to as the a. product development process. b. product launch process. c. new offering realization process. d. return on investment process. e. new product process. Answer: c Page Reference: 33 21) With respect to the core business processes, the ________ is considered to be all the activities involved in defining target markets and prospecting for new customers. a. customer equity process b. customer relationship management process c. customer acquisition process d. fulfillment management process e. customer prospecting process Answer: c Page Reference: 33 22) A good way to describe the ________ would be discuss all the activities involved in building deeper understanding, relationships, and offerings to individual customers. a. customer relationship management process b. customer acquisition process c. customer prospecting process d. customer equity process e. customer fulfillment management process Answer: a Page Reference: 33 23) Apex Corporation is known in its industry being "best of class" in terms of costs and performance. Your firm could probably use Apex Corporation as a a. benchmark. b. target. c. competitor to beat. d. sounding board for ideas. e. future supplier. Answer: a Page Reference: 33 24) Lee Wong has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Which of the following core business processes most closely matches with the task that Mr. Wong has been given? a. customer acquisition process b. market sensing process c. fulfillment management process d. new offering realization process e. customer relationship management process Answer: b Page Reference: 33 25) Another way to describe a value delivery network (partnering with specific suppliers and distributors) is to call it a a. cabal. b. domestic power centre. c. supply chain. d. teamwork group. e. link to relationships. Answer: c Page Reference: 33 26) The key to utilizing organizational core competencies is to ________ that make up the essence of the business. a. own all intermediaries who come in contact with your goods and services b. own and nurture the resources and competencies c. emphasize global promotions d. make the competencies pay for themselves e. segment workforces Answer: b Page Reference: 34 27) We can say that a ________ has three characteristics: (1) It is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits, (2) it has applications in a wide variety of markets, and (3) it is difficult for competitors to imitate. a. core technology b. winning strategy c. strategic business unit d. business strategy e. core competency Answer: e Page Reference: 34 28) Core competencies tend to refer to areas of special technical and production expertise, whereas ________ tend to describe excellence in broader business processes. a. distinctive capabilities b. core business values c. mission statements d. value statements e. process benchmarks Answer: a Page Reference: 34 29) A clear, thoughtful mission statement provides employees with a shared sense of purpose, _____________, and opportunity. a. profitability b. target market feasibility c. vision d. direction e. quality products Answer: d Page Reference: 37 30) Competitors find it hard to imitate companies such as WestJet Airlines, Dell, or IKEA because they are unable to copy their a. logistics system. b. pricing policies. c. activity systems. d. distribution strategy. e. product innovations. Answer: c Page Reference: 34 31) One conception of holistic marketing views it as "integrating the value exploration, ________, and value delivery activities with the purpose of building long-term, mutually satisfying relationships and co-prosperity among key stakeholders." a. value creation b. value research c. value proposition d. value chain e. value management Answer: a 32) Holistic marketers achieve profitable growth by expanding customer share, ________, and capturing customer lifetime value. a. inspecting all market share data b. undermining competitive competencies c. building customer loyalty d. milking the market for product desires e. renewing a customer base Answer: c 33) The holistic marketing framework is designed to address three key management questions. Which of the following is one of those questions? a. Value network. how can a company effectively network? b. Value chain. are there weak links in the company's value chain c. Value proposition. how can value propositions be made profitable? d. Value exploration. how can a company identify new value opportunities? e. Value claims. how does the company deal with value erosion? Answer: d 34) The Hospital for Sick Children, located in Toronto, has what is called ________ because they have demonstrated excellence in broader business processes. a. market savvy b. distinctive capabilities c. intuitive synergy d. business touch e. core competency Answer: b Page Reference: 34 35) Which of the following is one of the five major characteristics of good mission statements? a. They define the major competitive spheres within which the company will operate. b. They focus on a large number of goals. c. They expand the range of individual employee discretion. d. They take a short-term view. e. They are long and comprehensive to ensure that all critical concepts are included. Answer: a Page Reference: 37 36) If Canadian retailer, HBC, seeks to be a more holistic marketer, it should achieve profitable growth by expanding ________, building customer loyalty, and capturing customer lifetime value. a. customer share b. promotion venues c. database resources d. design skills e. competitive space share Answer: a 37) In the past Kodak was not necessarily known for embracing technology that did not come from Kodak engineers and designers. However, as Kodak addresses the digital revolution taking over the photographic industry, it wants customers to see it as a leader in digital photography and is moving away from its connection to print-only photography. This would be an example of which of the following value-creation steps? a. redefining the big idea b. identifying new customer benefits c. reshaping the business scope d. researching its competitors e. redoing its corporate logo Answer: b 38) When a customer places an order at amazon.com, the company processes the customer's payment information, sends the order to the nearest warehouse, and ships the order via FedEx. This is best described as the ________. a. fulfillment management process b. market-sensing process c. customer acquisition process d. customer relationship management process e. new-offering realization process Answer: a Page Reference: 33 39) In the cycle of complete strategic planning, taking corrective action is a part of ________. a. planning b. implementation c. organizing d. analyzing e. controlling Answer: e 40) The ________ in the value chain cover these activities: marketing (marketing and sales), and service. a. operations processes b. manufacturing processes c. secondary activities d. tertiary activities e. primary activities Answer: e 41) Which of the following is an example of a value-creation skill? a. handling complex relationships with trading partners b. broadening the scope of the business c. choosing partners for their ability to exploit related market opportunities d. substantial investment in infrastructure and capabilities e. identifying new customer benefits from the customer's view Answer: e 42) Business realignment may be necessary to maximize core competencies. Which of the following would be one of the steps in this realignment process? a. revamping the ethics statement. b. reviewing global outreach projections. c. reviewing successes from e-commerce (if any). d. redefining the business concept (the "big idea"). e. reviewing all macro relationships. Answer: d Page Reference: 34 43) Michael Porter's value chain would identify which of the following as a support activity? a. shipping out final products b. marketing products c. servicing products d. procurement e. operations Answer: d 44) ________ allows the company to discover who its customers are, how they behave, and what they need or want. It also enables the company to respond appropriately, coherently, and quickly to different customer opportunities. a. Total quality management b. Network management c. Strategic management d. Marketing management e. Customer relationship management Answer: e Page Reference: 33 45) Which of the following can be considered a primary activity in the value chain process? a. procurement b. inbound logistics c. human resource management d. technology development e. firm infrastructure Answer: b 46) While viewing businesses in terms of customer needs can suggest additional growth opportunities, a ________ tends to focus on selling a product or service to a current market. a. target market definition b. strategic market definition c. cognitive definition d. product definition e. tactical definition Answer: a Page Reference: 39 47) Holistic marketers achieve profitable growth by expanding customer share, building customer loyalty, and a. training a stronger sales force. b. mirroring the competition. c. building better products. d. increasing production capacity. e. capturing customer lifetime value. Answer: e 48) Gerta Schulz is seen as a ________ planner because she plans the daily promotional releases about her company's products and services. a. organizational b. selective c. strategic d. niche e. tactical Answer: e 49) Which aspect of value delivery allows the company to discover who its customers are, how they behave, and what they need or want? a. core competency management b. business partnership management c. internal resource management d. cognitive space management e. customer relationship management Answer: e Page Reference: 33 50) What master marketer is known for building a brand in a product area where no brand name had ever existed before? a. IKEA b. Intel c. Molson d. Canadian Tire e. Virgin Answer: b 51) Strategic planning calls for action in three key areas. Which of these key areas deals specifically with devising a game plan for achieving long-run objectives? a. expanding core competencies b. producing a strategic fit c. creating a viable business opportunity d. establishing a strategy e. developing an investment portfolio Answer: d 52) Most large companies consist of four organizational levels: the ________, the division level, the business unit level, and the product level. a. board of director level b. major stakeholder level c. corporate level d. strategic level e. management team level Answer: c 53) The ________ is the central instrument for directing and coordinating the marketing effort. a. tactical plan b. corporate mission c. strategic plan d. marketing plan e. customer value statement Answer: d 54) The ________ lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. a. corporate mission b. strategic marketing plan c. organizational plan d. corporate tactical plan e. customer value statement Answer: b 55) In which of the following plans would we most likely find directions for implementing and addressing daily challenges and opportunities in product features, promotion, merchandising, pricing, sales channels, and service areas? a. target marketing plan b. product launch plan c. deployment plan d. product development plan e. tactical marketing plan Answer: e 56) If you wanted to find out more about target markets and the organization's value proposition, which of the following types of plans would most likely contain information that might be useful to you in your quest? a. strategic marketing plan b. organizational plan c. marketing mix plan d. marketing plan e. tactical marketing plan Answer: a 57) The ________ process consists of corporate, division, business, and product planning. a. planning b. implementing c. innovation d. competitive e. controlling Answer: a 58) All corporate headquarters undertake four planning activities, the first of which is a. defining the corporate mission. b. assigning resources to each SBU. c. understanding target markets. d. assessing growth opportunities. e. establishing strategic business units. Answer: a 59) A clear, thoughtful mission statement provides employees with a shared sense of purpose, direction, and a. opportunity. b. profitability. c. quality products. d. target market feasibility. e. continuous improvement. Answer: a Page Reference: 37 60) Mission statements are at their best when they are guided by a a. market. b. vision. c. value. d. strength. e. competency. Answer: b Page Reference: 37 61) Fred Smith wanted to deliver mail anywhere in the United States before 10:30 a.m. the next day, so he created FedEx. Which of the following planning aids most likely assisted Mr. Smith with his vision? a. the mission statement b. a SWOT analysis c. knowledge of customers d. an executive summary e. a database Answer: a Page Reference: 37 62) Which of the following most closely matches a correct market definition of a business? a. Imperial Oil. we sell gasoline. b. Alliance Atlantis. we make movies. c. Xerox. we make copying equipment. d. Canadian National Railroad. we run a railroad. e. Encyclopedia Britannica. we distribute information. Answer: e Page Reference: 39 63) Which of the following terms matches to the phrase "it is a single business or collection of related businesses that can be planned separately from the rest of the company"? a. diverse business unit b. niche market unit c. specialized business unit d. growth business unit e. strategic business unit Answer: e Page Reference: 39 64) Market-penetration, product-development, and market-development strategies would all be examples of ________ strategies. a. concentric b. conglomerate c. integrative growth d. horizontal e. intensive growth Answer: e Page Reference: 41 65) If you were the CEO of a company that was looking to implement strategies to fill a perceived gap between future desired sales and projected sales, you would most likely explore ________ growth first because it would be easier to improve an existing business rather than building a new one. a. intensive b. diversification c. conglomerate d. integrative e. concentric Answer: a Page Reference: 40 66) If you were the marketing manager of an organization that had chosen growth via current products sold to new markets, your organization would have chosen a ________ strategy. a. market-penetration b. diversification c. product-development d. market-development e. concentric Answer: d Page Reference: 41 67) When Mairu Ahmed arrived on his first day of work for his new employer, a small high-tech start-up, he was surprised at how casually his new co-workers were dressed, how informally they talked to one another, and the relaxed way in which they greeted their customers. Mairu was experiencing his new company's a. strategic orientation. b. distinctive advantage. c. HR training strategy. d. competitive positioning. e. corporate culture. Answer: e 68) A(n) ________ is when a company might seek new businesses that have no relationship to its current technology, products, or markets. a. concentric strategy b. intensive growth strategy c. integrative strategy d. conglomerate strategy e. horizontal strategy Answer: d 69) Which of the following terms most closely matches to "the shared experiences, stories, beliefs, and norms that characterize an organization"? a. a business mission b. customer relationships c. corporate culture d. organizational dynamics e. an ethical/value statement Answer: c 70) The first step in the business unit strategic-planning process deals with which of the following? a. goal formulation b. program formulation c. SWOT analysis d. strategy formulation e. business mission Answer: e 71) If a firm pursues a(n) ________ strategy, it must be good at engineering, purchasing, manufacturing, and physical distribution. a. domestic customer relationship b. market share c. overall cost leadership d. focus e. differentiation Answer: c Page Reference: 48 72) Tim Hortons has become a major Canadian cultural icon and business success due to a well-planned and carefully executed marketing strategy. In its annual planning process, once Tim Hortons establishes its business mission, conducts a SWOT analysis, and goes through a goal formulation process, it is ready to go through a step called ________ to continue with a strategic-planning process. a. implementation b. functional analysis c. program formulation d. strategy formulation e. feedback and control Answer: d Page Reference: 45 Hint 1: Figure 2.3 73) The Aeroplan rewards program promotes the products and services of its partners, including Fairmont hotels, Avis car rental, etc. The best description of this form of alliance would a ________ alliance. a. logistics alliance b. service c. promotional d. pricing collaboration e. product alliance Answer: c Page Reference: 50 74) When a business gets to know market segments intimately and pursues either cost leadership or differentiation within the target segment it is referred to as a a. customer-focused strategy. b. defined strategy. c. focused strategy. d. competitive advantage strategy. e. value-added strategy. Answer: c Page Reference: 49 75) To keep their strategic alliances thriving, corporations have begun to develop organizational structures to support them and have come to view the ability to form and manage partnerships as core skills. This is called a. synergistic partnership. b. win-win relationship management. c. value managed partnership. d. partner relationship management. e. centralized partnership. Answer: d Page Reference: 50 76) According to McKinsey & Company, strategy is only one of seven elements in successful business practice. The first three elements are considered the "hardware" of success, and include a. skills. b. systems. c. shared values. d. staff. e. style. Answer: b Page Reference: 51 77) A ________ is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives. a. strategic plan b. sales plan c. target market plan d. marketing plan e. competitive analysis plan Answer: d Page Reference: 51 78) Which of the following permits senior management to grasp the marketing plan's major thrust? a. marketing strategy b. executive summary and table of contents c. implementation and controls d. financial projections e. situation analysis Answer: b Page Reference: 52 79) Most marketing plans cover a. one year. b. five years. c. three years. d. four years. e. two years. Answer: a Page Reference: 37/53 80) The most frequently cited shortcomings of current marketing plans, according to marketing executives, are lack of realism, insufficient competitive analysis, and a ________ focus. a. profit b. long-term c. price d. short-run e. product Answer: d Page Reference: 52 81) The traditional view of marketing is that the firm makes something and then sells it. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 82) After an organization fails to respond to a changed environment, recapturing its lost position is not difficult. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 51 83) The formula "segmentation, targeting, and positioning" is the essence of strategic marketing. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 84) A company might remain efficient while it loses effectiveness. a. True Correct: Incorrect b. False Incorrect: Correct Answer: a Page Reference: 51 85) The customer relationship management process is all the activities involved in receiving and approving orders, shipping the goods on time, and collecting payment. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 33 86) A principle of the value chain is that every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 87) Another name for a company's value delivery network is "the intermediary team." a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 33 88) A core competency is usually common among competitors in a given industry. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 34 89) Holistic marketing focuses on the integration of value exploration, value creation, and value delivery as a means to build long-term relationships with consumers. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 90) If a manager asks "How can my company identify new value opportunities?," he or she is examining a management question identified as being value creation. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b 91) Master marketers focus on the customer and are organized to respond effectively to changing customer needs. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 92) The marketing plan is the central instrument for directing and coordinating the marketing effort. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 93) A mission statement has as its primary focus the product and how to make it. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 37 94) One of the characteristics of a good mission statement is that it has an expansive number of goals for doing business. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 37 95) A good illustration of a market definition of the business a company is in would be "We sell gasoline." a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 39 96) If a company sought to expand the number of existing products sold to its current markets, it would use an integrative growth strategy labeled as "market-penetration strategy." a. True Incorrect: Correct b. False Correct: Incorrect Answer: b Page Reference: 41 Topic: Intensive growth, not integrative growth 97) If a company sought to grow via a strategy that required the company to seek new businesses that have no relationship to its current technology, products, or markets, the company would be using a diversification strategy called a conglomerate strategy. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 98) Sometimes corporate culture develops organically and is transmitted directly from the CEO's personality and habits to company employees. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 99) Once an organization has established a business mission in its business unit strategic-planning process, it may proceed to the second step of the planning process called goal formulation. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 45 Topic: SWOT analysis 100) Good illustrations of microenvironment actors in the strategic planning process would be demographics, technology, and the social-cultural arena. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 45 101) To evaluate opportunities, companies can use Market Opportunity Analysis (MOA) to determine the attractiveness and probability of success. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a Page Reference: 46 102) An environmental threat is a challenge posed by an unfavourable trend or development that would lead, in the absence of defensive marketing action, to lower sales or profit. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a Page Reference: 46 103) Once a SWOT analysis has been completed, the strategic planner is ready to proceed to the goal formulation stage of the strategic planning process model. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a Page Reference: 45 104) In applying MBO (management by objectives) all objectives are treated as being equally important. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b 105) For an MBO (management by objectives) system to work, one of the four criteria that the unit's objectives must meet is that objectives must be stated quantitatively whenever possible. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 106) A strategy is a game plan for achieving what the business unit wants to achieve. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 107) Firms choosing a generic strategy centring on focus must be good at engineering, purchasing, manufacturing, and physical distribution. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 48 108) One of the four major categories of strategic alliance involves sharing personnel (e.g., human resource alliance) to staff alliance member marketing departments. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 50 109) Partner Relationship Management (PRM) can be thought of as a corporation's development of structures that support strategic alliances and treats the formation and management of partnerships as a core skill. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a Page Reference: 50 110) Peter Drucker pointed out that it is more important “to do things right” (efficiency) than to “do the right thing” (effectiveness). a. True Incorrect: Correct b. False Correct: Incorrect Answer: b Page Reference: 51 111) A business’s sales and profits may be increased through backward, forward, or vertical integration within its industry. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 41 112) Marketing plans are becoming more production-oriented because of the high costs of doing business in today's economy. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 51 113) The marketing plan should open with a situation analysis. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 52 114) When a manager reaches the marketing strategy section of a marketing plan, he or she will define the mission and marketing and financial objectives. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a Page Reference: 52 115) To guide implementation effectively, every part of the plan must be described in considerable detail. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a Page Reference: 51 116) Such areas as sales forecasts, expense forecasts, and break even analysis are usually found in the financial projections section of the marketing plan. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a Page Reference: 52 117) Gary Hamel confirms the view that imaginative ideas on strategy exist mainly within senior management. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 43 118) Most marketing plans conclude with a section that indicates how the plan will be implemented. a. True Correct: Correct b. False Incorrect: Incorrect Answer: a Page Reference: 52 119) During the marketing strategy section of the marketing plan, goals and budgets are spelled out for each month or quarter so management can review each period's results and take corrective action as needed. a. True Incorrect: Incorrect b. False Correct: Correct Answer: b Page Reference: 52 120) A good illustration of a marketing objective would to "decrease customer acquisition costs by 1.5 percent per quarter." a. True Correct: Correct b. False Incorrect: Incorrect Answer: a 121) What four corporate and division strategic planning activities all corporate headquarters must undertake? Answer: (1) Defining the corporate mission, (2) establishing strategic business units (3) Assigning resources to each SBU, and (4) assessing growth opportunities. 122) Instead of emphasizing making and selling, companies now see themselves as part of a value-delivery process. What are the three phases? Answer: The first phase, choosing the value, represents the "homework" marketing must do before any product exists. The second phase, providing the value, is where product features, prices, and distribution are selected. The third phase, communicating the value, utilizes the sales force, sales promotion, advertising, and other communication tools to announce and promote the product. 123) Explain how the value chain is used as a tool by a marketer such as Canadian Tire. Answer: A value chain is a tool for identifying ways to create more customer value. According to this model, every firm is a synthesis of activities performed to produce, market, deliver, and support its product. Students should be able to use examples to distinguish between primary activities and support activities in the generic value chain. 124) If an organization was very strong at defining target markets and prospecting for new customers, which of the core business processes would this organization have mastered? Answer: The core business process of customer acquisition. Page Reference: 33 125) In the central role of strategic planning, only a handful of companies stand out as master marketers—Procter & Gamble, WestJet Airlines, Nike, Disney, Walmart, and McDonald's to name a few. From a consumer's perspective why do you think they stand out? Explain. Answer: Students should explain that these companies focus on the customer and are organized to respond effectively to changing customer needs. They all have well-staffed marketing departments, and all their other departments—manufacturing, finance, research and development, personnel, purchasing—also accept the concept that the customer is king. 126) Identify the elements of a tactical marketing plan for a new kind of cola. Answer: The tactical marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service. For a new kind of cola, the tactical marketing plan might include the packaging size and shape, the flavour, the kinds of advertising used (print, television, buzz marketing), how to price the new cola relative to other colas currently on the market, and where to sell the new cola (grocery stores, gas stations, vending machines, sandwich shops). 127) In the central role of strategic planning, only a handful of companies stand out as master marketers Molson, Tim Hortons, Bombardier, WestJet Airlines, Walmart, and McDonald's to name a few. From a consumers perspective why do you think they stand out? Explain. Answer: Students should explain that these companies focus on the customer and are organized to respond effectively to changing customer needs. They all have well-staffed marketing departments, and all their other departments—manufacturing, finance, research and development, personnel, purchasing—also accept the concept that the customer is king. 128) Cara Operations Limited give their business units (including Swiss Chalet, Second Cup, and Harvey's) some flexibility in setting their own sales and profit goals and strategies. Like all corporate headquarters they must undertake what four planning activities? Answer: The activities are (1) defining the corporate mission, (2) establishing strategic business units, (3) assigning resources to each SBU, and (4) assessing growth opportunities. 129) Explain what happens in a SWOT analysis during the strategic planning process. Answer: Several competitive spheres are mentioned in the chapter (e.g., industry, products and applications, competence, market segment, vertical, and geographical). The sphere most appropriate in both cases is market segment. Page Reference: 45 130) What questions would typically be asked during a market opportunity analysis (MOA)? Answer: Questions would typically be: (1) Can the benefits involved in the opportunity be articulated convincingly to a defined target market(s)? (2) Can the target market(s) be located and reached with cost-effective media and trade channels? (3) Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits? (4) Can the company deliver the benefits better than any actual or potential competitors? and (5) Will the financial rate of return meet or exceed the company's required threshold for investment? Page Reference: 46 131) If a company, like Weston Foods decides to acquire one of its suppliers, such as Ace Bakery, in order to gain more control or generate profit, it would have chosen which form of integrative growth strategy? Answer: The company would have selected a backward integration strategy. 132) When Yahoo! began to flounder in the 2001, CEO Terry Semel imposed a more conservative, buttoned-down atmosphere on the freewheeling Internet startup. At the new Yahoo!, spontaneity is out and order is in. What term is most closely applied to the organizational change phenomenon described above? Be sure to explain what the term means with respect to the example provided. Answer: The correct term would be corporate or organizational culture. Corporate culture has been defined as "the shared experiences, stories, beliefs, and norms that characterize an organization." 133) For an MBO system (manage by objectives) to work, the business unit attempting to implement the process must meet four criteria. What are those criteria? Answer: The criteria are: (1) they must be arranged hierarchically, from the most to the least important; (2) objectives should be stated quantitatively whenever possible; (3) goals must be realistic; and (4) objectives must be consistent. 134) Natalie Plante has been asked to conduct the SWOT analysis for her business unit. Exactly what will Natalie be evaluating? Answer: The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats is called SWOT analysis. A business unit has to monitor key external and internal environments by examining key macroeconomic forces and microeconomic and actors that affect its ability to earn profits. See chapter for additional details on the SWOT analysis format. Page Reference: 45 135) The marketing team at Alliance Atlantis has been asked to perform an MOA. What questions should they ask as part of this market opportunity analysis? Answer: Questions would typically be: (1) Can the benefits involved in the opportunity be articulated convincingly to a defined target market(s)? (2) Can the target market(s) be located and reached with cost-effective media and trade channels? (3) Does the company posses or have access to the critical capabilities and resources needed to deliver the customer benefits? (4) Can the company deliver the benefits better than any actual or potential competitors? And (5) Will the financial rate of return meet or exceed the company's required threshold for investment? Page Reference: 46 136) Pierre Lefebvre has been asked to examine why his firm's MBO system failed to work as planned. What four criteria will Mr. Lefebvre examine in his business unit's objectives? Answer: The criteria are (1) they must be arranged hierarchically, from the most to the least important, (2) objectives should be stated quantitatively whenever possible, (3) goals must be realistic, and (4) objectives must be consistent. 137) Which of Michael Porter's generic strategies would be most appropriate for an organization that concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market? Quality leadership would be one example of the end result of such a strategy. Answer: The strategy that would be most appropriate would be that of differentiation. Page Reference: 49 138) When H&R Block and Hyatt Legal Services combined their efforts (two service businesses), they also joined marketing forces to create a strong alliance. Which of the alliance forms cited in the text most closely matches the H&R Block and Hyatt Legal Services alliance? Explain. Answer: This alliance is called a product or service alliance where one company licenses another to produce its product, or two companies jointly market their complementary products, or a new product. Page Reference: 50 139) Melissa Lee-Wen has been tasked with developing a marketing plan. Explain what this document is and how it is used. Answer: A marketing plan is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives. It contains tactical guidelines for the marketing programs and financial allocations over the planning period. Page Reference: 51 140) Naturalizer Shoes wishes to reposition their shoes to a younger audience. During which stage of the marketing plan will their marketing manager establish the product line's positioning? Answer: The stage where product line positioning will be addressed is the marketing strategy stage. This establishment of competitive positioning will inform the "game plan" to accomplish the plan's objectives. Page Reference: 52 141) There are two views of the value delivery process that may be followed by organizations seeking to gain business from consumers. Briefly, summarize each of those views. Answer: The traditional view of marketing is that the firm makes something and then sells it. In this view, marketing takes place in the second half of this process. Companies that subscribe to this view have the best chance of succeeding in economies marked by goods shortages where consumers are not fussy about the quality, features, or style. If abundant choices are present, this view does not work well. The smart competitor must design and deliver offerings for well-defined target markets. This realization inspired a new view of business processes that place marketing at the beginning of planning. Instead of emphasizing making and selling, companies now see themselves as part of a value-delivery process. 142) The firm's success depends not only on how well each department performs its work, but also on how well the various departmental activities are coordinated to conduct core business processes. List and briefly describe the five core business processes outlined in the text. Answer: The core business processes include (1) the market sensing process—all the activities involved in gathering market intelligence, disseminating it within the organization, and acting on the information; (s) the new offering realization process—all the activities involved in researching, developing, and launching new high-quality offerings quickly and within budget; (3) the customer acquisition process—all the activities involved in defining target markets and prospecting for new customers; (4) the customer relationship management process—all the activities involved in building deeper understanding, relationships, and offerings to individual customers, and (5) the fulfillment management process—all the activities involved in receiving and approving orders, shipping the goods on time, and collecting payment. 143) A successful company nurtures its resources and competencies. A core competency has three characteristics. Describe those characteristics and relate them to the Hospital for Sick Children, located in Toronto. Answer: Core competency characteristics are: (1) it is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits; (2) it has applications in a wide variety of markets; and, (3) it is difficult for competitors to imitate. Sick Kids has an incredible reputation based upon a set of unique and distinct capabilities. Students can refer to the capabilities described in the Hospital for Sick Children case in this chapter. 144) A holistic marketing orientation can provide insight into the process of capturing customer value. In this vain, the holistic marketing framework is designed to address three key management questions. Describe and illustrate each of these key management questions. Answer: The three management questions are: (1) value exploration—how can a company identify new value opportunities? (2) value creation—how can a company efficiently create more promising new value offerings? and (3) value delivery—how can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently? 145) When two service businesses, H&R Block and Hyatt Legal Services, combined their efforts, they also joined marketing forces to create a strong alliance. This would classify as which type of strategic alliance? Explain your answer. Answer: This alliance is called a product or service alliance where one company licenses another to produce its product, or two companies jointly market their complementary products or a new product. 146) Explain the differences between the following terms: marketing plan, strategic marketing plan, and tactical marketing plan. Answer: The marketing plan is the central instrument for directing and coordinating the marketing effort. The marketing plan operates at two levels: strategic and tactical. The strategic marketing plan lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. The tactical marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing sales, channels, and service. 147) Good mission statements are essential to being a success in business. Describe the five major characteristics that good mission statements should have. Answer: Major characteristics include: (1) they focus on a limited number of goals; (2) mission statements stress the company's major policies and values; (3) they define the major competitive spheres within which the company will operate (e.g., industry, products and applications, competence, market segment, vertical, and geographical); (4) they take a long-term view; and (5) they are as short, memorable, and meaningful as possible. 148) Assessing growth opportunities involves planning new businesses, downsizing, or terminating older businesses. The company's plans for existing businesses allow it to project total sales and profits. If there is a gap between future desired sales and projected sales, corporate management will have to develop or acquire new businesses to fill it. Identify and describe the three strategies that can be used to fill the strategic gap. Answer: The first option is to identify opportunities to achieve further growth with current businesses (intensive growth opportunities). The second is to identify opportunities to build or acquire businesses that are related to current businesses that are unrelated to current businesses (integrative growth opportunities). The third is to identify opportunities to add attractive businesses that are unrelated to current businesses (diversification growth opportunities). 149) Assume that you are directed to prepare short brief explaining the steps of the Business Unit Strategic-Planning Process. Your task is to construct such a brief by carefully outlining the steps of the aforementioned process. Answer: Refer to Figure 2.3 in the chapter for assistance. Students should be able to describe (in order) the business mission, SWOT analysis, goal formulation, strategy formulation, program formulation, implementation, and feedback and control. The descriptions do not need to be long; however, they do need to be consistent with the text material. Answers will vary but consistency should be a learning goal. 150) As a marketing manager for a large steel company you have been assigned the task of educating a group of new managers on how to prepare a marketing plan. Though few of these managers will actually ever have to prepare such a plan because of their functional roles in the organization, it is still very useful that each new manager know how to construct a marketing plan. Prepare a brief summary of the contents of the marketing plan for the new managers. You may keep your discussion general or make it specific to the steel industry. Answer: The contents of a marketing plan include (1) an executive summary and table of contents, (2) a situation analysis, (3) marketing strategy, (4) financial projections, and (5) implementation controls. Descriptions of the content steps may vary but should be in keeping with the general outline of this section of the chapter. See text material for further information.