Chapter 2

Strategic plans require:
a. long-term resource commitments
b. a change in organizational structure
c. the addition of new personnel
d. new product development
e. changes in prices

long-term resource commitments

_____ is the managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities.
a. Tactical management
b. The market audit
c. Functional planning
d. Environmental scanning
e. Strateg

Strategic planning

Which of the following statements about a marketing plan is true?
a. Marketing plans can exist as oral traditions.
b. The marketing plan should be viewed as a series of sequential steps.
c. All marketing plans have basically the same content.
d. A marketi

A marketing plan is created so an organization can meet its marketing objectives.

_____ is the process of anticipating events and determining strategies to achieve organizational objectives.
a. Planning
b. Portfolio evaluation
c. Forecasting
d. Implementation
e. Evaluation

Planning

Marketing plans should be written to do all of the following EXCEPT:
a. compare actual and expected performance
b. provide clearly stated activities
c. create common goals for employees to work toward
d. allow managers to enter the marketplace with an awa

control the elements of the external marketing environment

Which of the following is one of the elements of the marketing plan?
a. a business mission statement
b. a situation analysis
c. a target market strategy
d. the marketing mix
e. all of the choices

all of the choices

The focus of an organization's mission statement should be on:
a. the products it wishes to sell
b. the market it wishes to serve
c. its social responsibilities
d. the desires of government regulators
e. technologies it understands well

the market it wishes to serve

_____ occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it.
a. A circle trap
b. A market barrier entry
c. A reactive focus
d. Unempowerment
e. Marketing myopia

Marketing myopia

A popular technique for managing a large organization with different technologies and markets is to divide it into:
a. strategic business units
b. different technologies
c. strategic target markets
d. design matrices
e. tactical segments

strategic business units

After management agrees on a mission statement, it must set objectives. Which of the following is NOT a characteristic of a good objective?
a. profitable
b. realistic
c. measurable
d. time-specific
e. consistent

profitable

A _____ is defined as a statement of what is to be accomplished through marketing activities.
a. mission statement
b. business plan
c. marketing objective
d. goal-driven directive
e. marketing criteria

marketing objective

When an organization creates a mission statement that is too narrow, _____ results.
a. marketing synergy
b. marketing myopia
c. directional marketing
d. an internal threat
e. sustainable competitive advantage

marketing myopia

For marketing objectives to be realized, they must meet all of the following criteria EXCEPT:
a. be consistent with organization objectives
b. be measurable
c. be attainable
d. be challenging
e. be set within a one-year time frame

be set within a one-year time frame

A _____ is a formal study conducted by an organization to ascertain its current status and capabilities and its future expectations.
a. situation analysis
b. marketing audit
c. trend analysis
d. strategic alternative selection
e. competitive advantage aud

situation analysis

The SWOT acronym refers to a firm's analysis of its:
a. sales, width of product mix, observations, and technology
b. situations, wealth, organizational strengths, and target markets
c. strengths, weaknesses, opportunities, and threats
d. service levels, w

strengths, weaknesses, opportunities, and threats

_____ is defined as the collection and interpretation of information about forces, events, and relationships that may affect the organization.
a. Market sampling
b. An internal audit
c. Opportunity analysis
d. Environmental scanning
e. Stakeholder analysi

Environmental scanning

_____ show costs declining at a predictable rate as experience with a product increases.
a. Liquidity growth curves
b. EOQ graphs
c. Breakeven analyses
d. Experience curves
e. Supply/demand curves

Experience curves

Which of the following is NOT a source of a cost competitive advantage?
a. reengineering
b. experience curves
c. break-even analyses
d. efficient labor
e. production innovation

break-even analyses

Which of the following is a type of strategic alternative that matches products and markets?
a. vertical integration
b. product penetration
c. divestment
d. horizontal integration
e. market penetration

market penetration

_____ is a strategy of increasing market share for present products in existing markets.
a. Market penetration
b. Product development
c. Market development
d. Diversification
e. Product penetration

Market penetration

A(n) _____ describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments.
a. marketing orientation
b. environmental scan
c. marketing mix audit
d. target market strate

market opportunity analysis

The _____ is the unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.
a. internal environmental mix
b. marketing mix
c. product mix
d. product line
e. market portf

marketing mix

The starting point of any firm's marketing mix is the:
a. analysis of what production equipment is available and owned by the company
b. design of the promotion campaign to be used for the product
c. selection of the places through which the good or servi

development of the good or service to be sold

Making sure products are available when and where customers want them is the job of which element of the marketing mix?
a. advertising strategies
b. production strategies
c. product strategies
d. promotion strategies
e. distribution strategies

distribution strategies