Question 1

Arnotts Biscuits intends to increase the sales of its ginger nut biscuits in its current markets. At a tactical level, it plans to accomplish this goal by reducing prices, increasing promotional support and encouraging new uses for the biscuit by publishing free new recipe ideas to encourage customers to use ginger nut biscuits in innovative desserts. Arnotts is following the strategy of:

Accepted Answer

Arnotts Biscuits is trying to increase sales of one of its existing products (ginger nut biscuits) in its current markets (not entering new ones), which is the definition of market penetration strategy. The company is using tactics such as lowering prices and increasing promotional support to penetrate deeper into the market. Additionally, by encouraging new uses for the biscuit with new recipe ideas, Arnotts is also engaging in product development to expand the uses for its existing product.

Question 2

Managing the marketing process requires four marketing management functions, namely analysis, planning, _________and_________ .

Accepted Answer

The four marketing management functions are analysis, planning, implementation, and control. Control involves monitoring the results of the marketing plan and making adjustments as needed to ensure the plan is on track to meet its objectives. Implementation involves executing the marketing plan by putting the strategies into action. Therefore, the best choice is B, implementation, control.

Question 3

The section of a marketing plan that spells out how marketing strategies are to be achieved and answers questions such as: What will be done? When will it be done? Who will do it? How much will it cost? is termed the:

Accepted Answer

The section that spells out how marketing strategies will be achieved is the action programmes. It outlines the specific steps that will be taken and answers questions such as what will be done, when will it be done, who will do it, and how much will it cost.

Question 4

The product/market expansion grid is also referred to as:

Accepted Answer

The product/market expansion grid is also known as the Ansoff grid, named after its creator, Igor Ansoff. The other options listed are different strategic planning tools/models created by different individuals or consulting firms.

Question 5

In 1961, John F. Kennedy, the then President of the United States, famously said, "This nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth." At the time when Kennedy made his speech, none of the technologies required to propel a spacecraft across the vast distances involved had yet been developed. Yet, Kennedy's speech inspired NASA's Apollo space programme with the first successful moon landing in 1969. Kennedy's challenge to land a man safely on the moon is a great example of:

Accepted Answer

Kennedy's statement can be best described as a mission - a specific and ambitious goal that serves as a guiding principle for an organization's efforts.

Question 6

The Boston Consulting Group portfolio technique evaluates SBUs on two dimensions, namely _________and_________ .

Accepted Answer

The Boston Consulting Group portfolio technique evaluates SBUs on two dimensions, namely market or industry attractiveness and strength of the SBU's position. This technique plots each SBU on a 2x2 matrix based on these dimensions, leading to four categories: stars, cash cows, dogs, and question marks.

Question 7

Tiger Airlines' customers are willing to sacrifice some level of service in order to obtain the lowest possible fare. This type of customer makes up one:

Accepted Answer

The statement describes a specific group of customers who prioritize low fares over high levels of service. This is a characteristic of a market segment, which is a group of customers with similar needs and preferences.

Question 8

In a SWOT analysis, which of the following would be considered a strength?

Accepted Answer

Internal resources are considered strengths in a SWOT analysis as they are positive attributes within the company that can be leveraged to achieve success. Trends in the market (A), internal limitations (B), and factors that challenge the company's performance (E) are all considered weaknesses or threats. Favourable factors in the environment (D) could be considered an opportunity, rather than a strength.

Question 9

At which level of the corporation does strategic planning begin?

Accepted Answer

Strategic planning begins at the corporate level, where the overall mission and direction of the company are established. From there, the strategic plan is broken down and implemented at the lower levels of the organization.

Question 10

Modern marketing departments can be organised in all of the following ways, EXCEPT which one?

Accepted Answer

All of the other options are commonly used in modern marketing departments. A product management organisation is structured based on the products offered, a market management organisation focuses on specific target markets, a geographic organisation is structured based on specific regions or locations, and a combination organisation may use a mix of these approaches. A strategic management organisation, on the other hand, is not a common structure for marketing departments.

Question 11

The process of looking at whether the company's basic strategies are well matched to its opportunities is known as:

Accepted Answer

The answer of The process of looking at whether the...

Question 12

An organisation that uses both financial and non- financial performance measures to evaluate its performance is using a:

Accepted Answer

The balanced scorecard is a performance management tool that uses both financial and non-financial measures to evaluate an organization's performance. It includes metrics related to financial health, customer satisfaction, internal processes, and employee development. By using a balanced scorecard, an organization can ensure that it is considering a range of factors when assessing its success, rather than focusing solely on financial outcomes.

Question 13

Most companies understand that they cannot serve all segments of the market. Thus, each company must divide up the total market, choose the most attractive segments, and design strategies for profitably serving those chosen segments. This process involves_________ ,_________ , differentiation and positioning.

Accepted Answer

The process described in the statement involves market segmentation (dividing up the total market), identifying the most attractive segments (assessing market attractiveness), choosing which segments to serve (market targeting), and designing strategies for serving those segments (differentiation and positioning). Therefore, option C is the best choice. The other options do not accurately reflect the process described in the statement.

Question 14

Which of the following is NOT one of the characteristics of a mission statement?

Accepted Answer

Including measurable criteria such as sales or profits is not a characteristic of a mission statement. A mission statement should state the organisational purpose, be motivating, market-oriented, and meaningful and specific.

Question 15

The first step in strategic planning is to:

Accepted Answer

Defining a corporate mission is the first step in strategic planning as it sets the overall direction and purpose for the organization. It provides a framework for decision-making and helps align all functional level strategies towards achieving the mission. Recruitment, training, designing the business portfolio, and setting corporate objectives and goals all come after the corporate mission has been defined.

Question 16

Most companies enter the market by serving a _________segment, and if this is successful they then add more_________ .

Accepted Answer

The answer of Most companies enter the market by serving...

Question 17

Which of the following is a market- oriented mission statement?

Accepted Answer

A market-oriented mission statement identifies the company's target market and describes how the company will meet those customers' needs. Option B clearly identifies the target market (world) and how the company will meet their needs (enable more open and connected communication). The other options simply describe what the company does without explicitly identifying their target market or how they will meet their needs.

Question 18

Which of the following would NOT be considered as an example of product development?

Accepted Answer

Encouraging customers to find new uses for the product is an example of product innovation or marketing strategy, but not product development which involves the creation or modification of a product itself.

Question 19

The Nutrition Corporation, a major Australian manufacturer of food products, believes that it can sell its current product in Japan. The strategy The Nutrition Corporation is considering is referred to as:

Accepted Answer

Market development strategy refers to expanding the market for the existing product by finding new uses or new market segments. In this case, The Nutrition Corporation is considering selling its current product in Japan, which is a new market segment. Therefore, the strategy they are considering is market development.

Question 20

The primary focus of strategic planning is to:

Accepted Answer

The answer of The primary focus of strategic planning is...

Quiz 3: Strategic Planning and Marketing

Managing the marketing process requires four marketing management functions, namely analysis, planning, _and_ .