Quiz 2: Strategic Planning

Conditions external to the firm include looking at a firm's resources,capabilities,and technology.

A value proposition is formed after the firm develops a strategic plan.

A value proposition is an extensive,in-depth explanation of a firm's benefits.

A value proposition states the specific benefits a product or service offering provides to a buyer.

A value proposition is utilized not only by firms,but also by individuals.

A __________ states the specific benefits that a product or service offering provides to a buyer. A)marketing campaign B)diversification strategy C)target market analysis D)marketing plan E)value proposition

A value proposition states the: A)firm's strategy for entering new markets with new product or service offerings. B)firm's marketing objectives. C)firm's pricing strategy. D)buyer's purchase incentives. E)specific benefits a product or service offering provides to a buyer.

The purpose of a value proposition is to provide the: A)firm with a reason why buyers prefer their product or service offering. B)buyer with a reason why the product or service is superior to competing offers. C)buyer with a price point for purchase. D)firm with a moral code of ethics. E)seller with a price point for purchase.

A well-developed value proposition: A)focuses on the external market,or what customers want. B)conveys the firm's profits. C)focuses on the supply chain's benefits. D)increases product development. E)differentiates from buyers in the market.

Sally's cookie company sells products both online and at retail locations.She has developed multiple value propositions because: A)cookies necessitate more explanation than other products due to the variety of flavors. B)Sally is an overachiever and likes to do more work than necessary. C)Sally's firm is serving more than one target market. D)cookies are part of a saturated market. E)cookies are in the mature stage of the product life cycle.

Hispanic consumers are the target market for many products because this is a: A)growing group of consumers with about a million dollars in buying power. B)group of consumers requiring new value propositions. C)group of consumers who are interested in products in the growth stage of the product life cycle. D)growing group of consumers with over a trillion dollars in buying power. E)group of consumers interested in the firm's marketing strategies.

The group of customers toward which an organization directs its marketing efforts is known as the _____. A)constituency B)target market C)direct market D)value group E)key market

A(n)_____ is a statement that summarizes the key benefits or value for target customers.

A(n)_____ explains why customers should buy a product,why stakeholders should donate,or why prospective employees may want to work for an organization.

The group of customers toward which an organization directs its marketing efforts is known as the _____.

A company's resources,capabilities,and technology are examples of _____.

The economy,competitors,and government regulations that could affect what the firm wants to do are part of the _____.

What is involved in creating a successful value proposition?

Explain why companies have different value propositions for each target market.

Explain how individuals can utilize value propositions.

A complete situation analysis involves assessing a company's internal environment.

Opportunities and threats are internal to the organization and are largely uncontrollable.

A situation analysis looks at a company's strengths,weaknesses,opportunities,and threats.

People who act like customers and visit competitors to learn about their customer service and their products are known as mystery shoppers.

As factors in the external and internal environment change,a company must adjust its plans.

Marketing environmentally safe products and services in a way that is good for the environment is called responsible marketing.

_____ is a long-term process that helps an organization allocate its resources to capitalize on opportunities in the marketplace. A)Marketing B)Contingent planning C)Strategic planning D)Diversification E)Decentralization

Michael Porter's five forces model includes all of the following EXCEPT: A)rivalries of existing companies. B)threat of substitute products. C)bargaining power of buyers. D)threat of supplier penetration development. E)threat of new entrants.

People who act like customers are known as _____. A)mystery shoppers B)savvy consumers C)decoy shoppers D)shoplifters E)the target market

In Michael Porter's five forces model,the threat of supplier bargaining power refers to: A)a buyer being large enough,to affect a selling company's performance. B)the likelihood a supplier will enter into a customer's market. C)visiting competitors to learn about their customer service and their products. D)vying for the supplier's dollar. E)the threat of substitute products.

Which of the following is a function of the Food and Drug administration? A)It prohibits U.S.firms from restraining trade. B)It regulates deceptive advertising. C)It regulates the labeling of consumable products. D)It creates monopolies and cartels. E)It prohibits monopolies and cartels.

Sarah owns a store in a town where the population has changed from low-income singles to high-income families.Based on which of the following types of environmental changes does Sarah need to make changes? A)Economic B)Technology C)Social and cultural D)Natural resources E)Legal and political

A firm's _____ states the purpose of the organization and why it exists. A)value proposition B)business plan C)marketing plan D)mission statement E)financial report

Which of the following does green marketing typically involve? A)Marketing environmentally safe products and services in a way that is good for the company. B)Using online ads and mobile marketing and not newspapers and magazine for advertising. C)Marketing green spaces,such as parks. D)Utilizing the Environmental Protection Agency in marketing efforts. E)Marketing environmentally safe products and services in a way that is good for the environment.

With reference to the external environment,the_____ includes competition,suppliers,marketing intermediaries (retailers,wholesalers),the public,the company,and customers. A)micro environment B)target market C)macro environment D)trade commission E)decoy market

The companies that provide ingredients as well as packaging to other firms are known as _____.

The Federal Trade Commission and the Food and Drug Administration require that all organizations comply and understand the _______ in which they do business.

_____ changes the way people communicate and the way firms do business.

A firm's _____ states the purpose of the organization and why it exists.

Analyzing the _____ environment involves tracking conditions in the marketplace that are largely uncontrollable.

_____ are internal factors that are somewhat controllable and can be utilized by the company to create a competitive advantage.

Describe the components of a situation analysis.

List and describe the parts of Porter's five forces model and explain how it is utilized by companies.

Most for-profit organizations publish their objectives.

Objectives are actions taken to accomplish strategies.

A market-penetration strategy involves selling more of existing products and services to existing customers.

Exporting and direct investment are examples of international market-penetration strategies.

A business plan is a strategic plan at the functional level that provides a firm's marketing group with direction.

Maggie has implemented a market-development strategy by selling her jewelry not only in Nashville,but also in Chicago.

A direct investment strategy involves the most risk and investment but offers the most control.

A firm's objectives should be: A)goals to shoot for but expect to fall short on. B)realistic and measurable. C)reliable and dependable. D)focused on revenue. E)practical and successful.

Trent would like to increase his clothing sales by 4% over the next 24 months.Which of the following has Trent created? A)Market penetration strategy B)Downsizing strategy C)Mission statement D)Objective E)Marketing plan

_____ are actions taken by a firm to accomplish _____. A)Strategies; objectives B)Objectives; strategies C)Objectives; mission statements D)Mission statements; strategies E)Marketing plans; objectives

A _____ strategy involves selling more of existing products and services to existing customers. A)market-penetration B)product-development C)market-development D)diversification E)downsizing

John is offering his customers a special promotion for t-shirts: buy one,get the second one for a discount of 50%.Which of the following strategies is John utilizing? A)Market-penetration B)Product-development C)Market-development D)Diversification E)Downsizing

A _____ strategy involves creating new products or services for existing markets. A)market-penetration B)product-development C)market-development D)diversification E)downsizing

A cookie company has decided to add a brownie product line to their inventory.Which of the following strategies is being employed by this company? A)Market-penetration B)Product-development C)Market-development D)Diversification E)Downsizing

Which of the following strategies involves selling existing products or services to new customers? A)Market-penetration B)Product-development C)Market-development D)Diversification E)Downsizing

A skincare company has decided to market its lotion to older women in addition to its current youth female market.This company is utilizing a _____ strategy. A)market-penetration B)product-development C)market-development D)diversification E)downsizing

Which of the following strategies involves offering products that are unrelated to other existing products produced by the organization? A)Market-penetration B)Product-development C)Market-development D)Diversification E)Downsizing

A fashion house purchased a music company.This is an example of a _____ strategy. A)market-penetration B)product-development C)market-development D)diversification E)downsizing

A _____ is a road map that improves the firm's understanding of its competitive situation. A)marketing plan B)mission statement C)situation analysis D)SWOT analysis E)direct competitor analysis

The least risky and least expensive method used by companies to enter international markets is known as _____. A)exporting B)licensing C)franchising D)joint ventures E)direct investment

When entering an international market,_____ is the least risky method,while _____ is the most risky strategy. A)exporting; joint ventures B)licensing; exporting C)franchising; licensing D)joint ventures; direct investment E)exporting; direct investment

_____ refers to firms selling the right to use some aspect of their production processes,trademarks,or patents to individuals or firms in foreign markets. A)Exporting B)Licensing C)Franchising D)Contract manufacturing E)Direct investment

Universities who allow their logos to be placed on t-shirts and other goods by third parties are engaging in _____. A)exporting B)licensing C)franchising D)contract manufacturing E)direct investment

_____ combines the expertise and investments of two companies and helps companies enter foreign markets. A)Exporting B)Licensing C)A joint venture D)Contract manufacturing E)Direct investment

Direct investment refers to: A)selling the right to use trademarks or patents to another firm. B)allowing companies to hire manufacturers to product their products in another country. C)a form of licensing. D)owning a company or facility overseas. E)combining the expertise and investments of two companies.

____ are what organizations want to accomplish in a given time frame.

_____ help guide and motivate a company's employees and give its managers reference points for evaluating the firm's marketing actions.

Successful _____ help organizations establish and maintain a competitive advantage that competitors cannot easily imitate.

A _____ is a strategic plan at the functional level that provides a firm's marketing group with direction.

Offering consumers special promotions or low prices with the intent to encourage them to buy products is part of a _____strategy.

An auto company decided to downsize a current vehicle model into a smaller SUV.This is known as utilizing a _____ strategy.

Selling a product to buyers abroad is known as _____.

Owning a company or facility overseas is known as _____.

List and describe the four types of product strategies and market-entry strategies that companies pursue.

List and describe the six types of market-development strategies outlined in your text.Which is the most risky and which is the least risky?

Corporate level plans are developed for each strategic business unit.

Strategic business unit groups are businesses or product lines within an organization that have their own competitors,customers,and profit centers.

Corporate level plans help to achieve the overall goals of the corporation while business level plans help to achieve goals at the individual business level.

Business level planning at PepsiCo involves employee responsibility of different products and product categories,such as packaging and product decisions.

The basic components of the strategic planning process are different at each of the various levels.

Marketing and financial plans are examples of business level planning.

Strategies at the functional department level must be consistent with corporate level objectives,but need not be consistent with business level objectives.

Which of the following refers to business level plans? A)Plans developed for the overall corporation in terms of financial and business success. B)Plans developed for accounting,marketing,and financial employee functions. C)Plans developed in the best interest of the strategic business units,outside of the overall corporate objective. D)Plans including well developed marketing plans. E)Plans developed for each strategic business unit and typically having their own mission statement.

Which of the following processes helps an organization allocate its resources under different conditions to accomplish its objectives,deliver value,and be competitive in a market-driven economy? A)Corporate planning B)Strategic planning C)Business planning D)Market forecasting E)Business forecasting

Strategic planning is a process that: A)helps an organization allocate its resources to capitalize on opportunities in the marketplace. B)has short-term goals. C)creates unchangeable plans. D)allows each department to create plans that benefit them the most. E)helps an organization allocate macro-environmental factors that impact consumers.

A _____ plan was implemented at PepsiCo to create a new Aquafina bottle that uses less plastic and has a smaller label,which reduces waste and helps the environment. A)corporate level B)business level C)functional level D)value oriented E)consumer oriented

If a company has multiple planning levels,the plans must be: A)consistent and all must help achieve individual goals. B)approved by all departments within an organization. C)adhered to regardless of external factors. D)consistent and all must help achieve the overall goals of the corporation. E)the same for each strategic business unit.

Goodyear's strategic business units are set up to satisfy customers' needs: A)in different worldwide markets. B)in different automotive categories. C)through market penetration. D)in different product categories. E)through value segmentation.

_____ is a process that can occur at different levels (corporate,business,and functional)in an organization

A marketing plan and a financial plan are types of ______ level plans.

Business or product lines within an organization that have their own competitors,customers,and profit centers are known as _____.

_____ is a process that helps an organization allocate its resources under different conditions to accomplish its objectives,deliver value,and be competitive in a market-driven economy.

The different departments within a company,such as accounting,finance,and marketing,are known as _____.

Explain the importance of implementing consistent plans when a company has multiple planning levels.

Explain how PepsiCo utilizes the strategic planning process to make decisions at various levels which ultimately support PepsiCo's overall objectives.

A portfolio is a group of businesses.

The Boston Consulting Group Matrix is a planning approach that examines a business's strengths and the attractiveness of industries.

A cash cow is a product with high growth and a high market share.

A divested product is one that the firm drops or sells.

A business receiving a medium score with the GE approach should be divested immediately.

The GE approach evaluates the strengths and the attractiveness of industries as high,medium,and low.

A group of business units owned by a single firm is known as a _____. A)SBU B)marketing group C)LEC D)parent company E)portfolio

Which of the following does the General Electric approach examine? A)A business's strengths and the attractiveness of industries. B)A business's strengths and the weaknesses of the external environment. C)Stars,cash cows,question marks,and dogs. D)Strategic business units based on their relative market shares and growth rates. E)Strategic business units based on their SWOT analysis.

A(n)_____ involves analyzing a firm's entire collection of businesses relative to one another. A)comprehensive analysis B)situational analysis C)portfolio-planning approach D)investment analysis E)strategic marketing plan

The Boston Consulting Group matrix evaluates each of its strategic business units based on how fast the unit is growing compared to the industry in which it competes and: A)how much revenue the unit is forecasted to gross. B)how the unit's share of the market compares to the market share of its competitors. C)how the unit's competitors market their products. D)how much advertising will cost the unit. E)how many strengths and opportunities were in the unit's SWOT analysis.

A product with high growth and a high market share is known as a _____. A)star B)cash cow C)question mark D)dog E)harvest product

Which of the following refers to a cash cow? A)A product with high growth and a high market share. B)A product with a long-term future. C)A product with low growth and a low market share. D)A product with low growth and a high market share. E)A product with high growth and a low market share.

Which of the following refers to a product with a low growth and low market share? A)Star B)Cash cow C)Question mark D)Dog E)Harvest product

The success sequence involves taking money from _____ and investing it into _____ in hopes of them becoming _____. A)cash cows; question marks; dogs B)cash cows; question marks; stars C)dogs; question marks; stars D)dogs; cash cows; stars E)question marks; stars; cash cows

A firm that invests only what it has to in order to maintain the product's market share is said to be _____. A)holding market share B)stabilizing market share C)harvesting market share D)growing market share E)decreasing market share

An approach to analyzing various businesses relative to one another is known as a _____.

The _____ is a portfolio-planning approach that examines strategic business units based on their relative market shares and growth rates.

The _____ is a portfolio-planning approach that examines a business's strengths and the attractiveness of industries.

A company with a cash cow needs to manage them so that they continue to generate revenue to _____.

_____ market share means the company wants to keep the product's share at the same level.

Explain how strategic business units are evaluated using the Boston Consulting Group matrix.

Explain how businesses and the attractiveness of industries are evaluated using the General Electric approach.