Chapter 2

Question 1

_____ is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.

Answer 1

Strategic planning

Question 2

Since gas prices have soared and consumers have cut back on their spending on new trucks and SUVs, Ford Motor Corporation is transforming several of its plants to create small cars. Ford has engaged in:

Answer 2

Strategic planning

Question 3

Subgroups of a single business or collection of related businesses within a larger organization are referred to as:

Answer 3

Strategic business units

Question 4

A strategic business unit (SBU):

Answer 4

Controls it’s business independent of other SBUs in the organization

Question 5

A written document that acts as a guidebook of marketing activities for the marketing manager is known as the:

Answer 5

Marketing plan

Question 6

All of the following are elements of the marketing plan EXCEPT:

Answer 6

Portfolio analysis

Question 7

A firm’s mission statement should answer the question, “What products do we produce best?”

Answer 7

False

Mission statements should not focus on specific product offerings but on the market or markets served.

Question 8

A competitive advantage is some unique aspect of a firm’s offering, or of the firm itself, that causes target customers to patronize the firm rather than its competition.

Answer 8

True

Question 9

To be useful, marketing objectives should be realistic, measurable, time specific, and based on sales.

Answer 9

False

Useful marketing objectives should be realistic,measurable, time specific, and compares to a benchmark. They do not have to be based on sales

Question 10

The four Ps of the marketing mix are product, planning, promotion, and price.

Answer 10

False

The four ps are product, place,promotion and price

Question 11

What is a SWOT analysis? How does it relate to strategic planning?

Answer 11

The SWOT acronym represents the four components of a situation analysis, the second step in strategic business planning. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal components of the organization that should be analyzed, while opportunities and threats are characteristics of the external environment that should be analyzed.
With the SWOT analysis, the company is determining its present status, its current capabilities, and its future expectations.