Chapter 3 Flashcards
1
Q
How do managers match resources and capabilities to make long term growth decisions? A. Functional planning B. Integrated activity C. Environmental analysis D. Operational planning E. Strategic planning
A
Strategic planning
2
Q
Business planning is considered a(n)\_\_\_\_ as all plans related to the business should work to benefit the organizations mission and objectives. A. SWOT analysis B. Functional planning C. Marketing plan D. Strategic plan E. Integrated activity
A
Integrated activity
3
Q
Employee skills and their knowledge, skills, and intellect are considered to be \_\_\_\_ A. Specific and memorable traits B. Aspects of the external environment C. Controllable risks D. The basis for the mission statement E. Human and intellectual capital
A
Human and intellectual capital
4
Q
Which of the following enables an organization to develop strategies that make use of what the company does best in seizing opportunities while simultaneously avoiding threats?
A. Portfolio analysis
B. Review of human and intellectual capital
C. SWOT analysis
D. Situation analysis
E. Business review
A
SWOT analysis
5
Q
Which of the following provides a framework that aims toward transparency, inspection, and adaptation while making it easier for team members to produce consistently strong products? A. Activity matrix B. Agility C. Action plans D. Scrum E. SWOT analysis
A
SCRUM
6
Q
What is the 3rd step in the market planning process?
A. Perform a situation analysis
B. Develop marketing strategies
C. Set marketing objectives
D. Implement and control the marketing plan
A
Develop marketing strategies
7
Q
Which of the following is used to determine how marketing contributes to the firms financial success? A. Outcome metrics B. Control processing planning C. Return on marketing investment D. Sustainability E. Activity metrics
A
Return on marketing investment
8
Q
A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy is known as \_\_\_\_\_? A. A marketing plan B. Business planning C. Strategic planning D. A business plan
A
A marketing plan
9
Q
A market development strategy ____
A. Creates growth by selling new product in existing markets.
B. Emphasizes both new product and new markets to achieve growth
C. introduces existing products to new markets
D. Seeks to increase sales of existing products to existing markets.
A
Introduces existing products to new markets
10
Q
Supervisory managers are charged with the planning in the \_\_\_\_\_ stage. A. Operational planning B. Human resource planning C. Functional planning D. Strategic planning
A
Operational planning
11
Q
What happens during the establish the business portfolio step of strategic planning?
A. Management performs a situation analysis
B. Decisions are made about how to best allocate resources across a a companies strategic business units (SBUs) to ensure growth for the entire company
C. Managers analyze how to make growth happen
D. Top management translates a mission statement into organizational or SBU objectives
A
Decisions are made about how to best allocate resources across a a companies strategic business units (SBUs) to ensure growth for the entire company
12
Q
According to the BCG growth- market share matrix, stars are strategic business units (SBUs) with _____
A. A small share of slow growth market
B. Low market shares in fast growth markets
C. A dominant market share in a low growth potential market.
D. Products that have a dominant market share in high growth markets
A
Products that have a dominant market share in a high growth market.
13
Q
Which growth strategy os designed to increase sales of existing product to current customers, nonusers, and users of competitive brans in served markets? A. Diversification strategy B. Product development strategy C. Market penetration strategy D. Market development strategy
A
Market penetration strategy
14
Q
What is an action plan?
A. A process that entails measuring actual performance, comparing this performance with the established marketing objectives and then making adjustments to the strategies or objectives on the basis of this analysis.
B. A description of the overall purpose of the organization and what it intends to achieve in terms of its customers, products and resources.
C. An individual support plan included in a marketing plan that provides the guidance for implementation and control of the various marketing strategies with the plan.
D. An assessment of a firms internal and external environments
A
An individual support plan included in a marketing plan that provides the guidance for implementation and control of the various marketing strategies with the plan.
15
Q
According to the BCG growth- market share matrix, \_\_\_\_\_\_ are strategic business units (SBUs) with low market shares in fast growth markets. A. Dogs B. Question marks C. Cash cows D. Stars
A
Question marks
16
Q
\_\_\_\_\_ planning is a managerial decision process that matches an organizations resources and capabilities to its market opportunities for long term growth and survival. A. Operational B. Business C. Strategic D. Functional
A
Strategic
17
Q
A(n)\_\_\_\_\_ describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products and resources. A. Action plan B. Control C. Situational analysis D. Mission statement
A
Mission statement
18
Q
What is the second step in the operational planning process?
A. Use marketing metrics to monitor how the plan is working.
B. Perform a situational analysis
C.Develop growth strategies
D. Develop action plans to implement the marketing plan
A
Use marketing metrics to monitor how the plan is working
19
Q
Which of the following describes an operational plan?
A. The quantification of how an investment in marketing has an impact on the firms success, financially and otherwise
B. Individual support plans included in a marketing plan that provide guidance for implementation and control of the carious marketing strategies within the plan
C. A process that entails measuring actual performance, comparing this performance with the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of the analysis
D. A plan that focuses on the day to day execution of the marketing plan
A
A plan that focuses on the day to day execution of the marketing plan
20
Q
The \_\_\_\_\_ step in the strategic planning process is to evaluate the internal and external environments. A. Second B. First C. Fourth D. Third
A
Second
21
Q
What is the first step in market planning
A. Perform a situation analysis
B. Implementing and control the marketing plan
C. Set marketing objectives
D. Developing marketing strategies
A
Performance a situation analysis
22
Q
Which of the following describes the external environment?
A. The controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization
B. The uncontrollable elements outside an organization that may affect its performance either positively or negatively
C. A formal statement in an organizations strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products and resources
D. The group of different products or brands owned by an organization and characterized by different income generating and growth capabilities
A
The uncontrollable elements outside an organization that may affect its performance either positively or negatively
23
Q
Functional planning is _____
A. A decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organizations long term strategic plan.
B. A decision process that focuses on developing plans for day to day activities that carry out an organizations functional plans.
C. A managerial decision process that matches the firms resources and capabilities to its marketing opportunities for long term growth.
D. An ongoing process of decision making that guides a firm in both the short term and the long term.
A
A decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organizations long term strategic plan.
24
Q
A process that entails measuring actual performance, comparing this performance with the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis is a(n) A. Diversification strategy B. Action plan C. Control D. Operational plan
A
Control
25
What is the second step in the operational planning process?
A. Use marketing metrics to monitor how the plan is working
B. Perform a situation analysis
C. Develop action plans to implement the marketing plan
D. Developing growth strategies
Use marketing metrics to monitor how the plan is working
26
A marketing development strategy ______
A. Creates growth by selling new products in existing markets
B. Emphasizes both new products and new markets to achieve growth
C. Seeks to increase sales of existing products to existing markets
D. Introduces existing products to new markets
Introduces existing products to new markets
27
```
The notion of _____ is adopted largely from a software development context.
A. A market development strategy
B. A diversification strategy
C. Agile marketing
D. Situation analysis
E. A market penetration system
```
Agile marketing
28
```
Which of the following is described as an event that a company hosts to thank its loyal customers?
A.Crowdsourcing
B.Value proposition
C.Rentrepreneur
D.Folksonomy
E.Brandfest
```
E.Brandfest
29
Which of the following BEST describes a distinctive competency of a firm?
A.
How players in the value chain work together
B.
A series of pre-established systems to sort online content
C.
The idea that groups within the organization are smarter than any single person
D.
A capability that is superior to the competition
E.
A value a competitor doesn't offer
A capability that is superior to the competition
30
What is a value proposition?
A.
A marketplace offering that fairly and accurately sums up the value that the customer will realize if he or she purchases the product
B.
When a company makes money for the company's management, its workers, and its shareholders
C.
The benefits of a product itself
D.
An undisputed fact that one product or service is superior to other products or services that customers might choose from competitors
E.
An acknowledgement that it is more expensive to attract new customers than it is to retain current ones
A marketplace offering that fairly and accurately sums up the value that the customer will realize if he or she purchases the product
31
What is competitive advantage?
```
A value that competitors don't offer
B.
A firm's capability that is superior to that of its competition
C.
A cost advantage
D.
An edge over a firm's competitors that allows it to have higher sales, higher profits, more customers
E.
A differential advantage
```
An edge over a firm's competitors that allows it to have higher sales, higher profits, more customers
32
```
Which of the following is NOT considered a primary activity of a value chain?
A.
Inbound logistics
B.
Competitive advantage
C.
Human resource management
D.
Technology development
E.
Marketing activities
```
Competitive advantage
33
Which of the following is NOT an example of consumer-generated content?
One million posts by individuals on Twitter and Facebook, using the hashtag #Adidaslove to show support for a new Adidas line of shoes with a social purpose
B.
A YouTube video recommending the purchase of a telescope, posted by an expert in the field of astrophysics with more than 500,000 followers
C.
Doritos' "Crash the Super Bowl" contest, where fans submitted their best 30-second commercials for voting by fans
D.
Data stored in the cloud
E.
A Nike shoe commercial that uses marathon runners as spokespeople
Nike shoe commercial that uses marathon runners as spokespeople
34
```
Which of the following refers to the total value of all the exports and imports of the world's nations?
A.
Countertrade
B.
Licensing
C.
Joint ventures
D.
Free trade zones
E.
World trade
```
world trade
35
Why might a firm decide it is time to globalize a business?
A.
Profit within the domestic market is continuing to grow steadily
B.
Competitors in the foreign market have declining sales
C.
The product or service is not dependent on culture or tradition
D.
The domestic market has peaked
E.
The firm has a competitive advantage over foreign businesses
The domestic market has peaked
36
```
___________ occurs when countries trade goods by using other items instead of cash.
A.
World Trade Organization (WTO)
B.
General Agreement on Tariffs and Trade (GATT)
C.
World trade
D.
Countertrade
E.
Protectionism
```
counter trade
37
```
A firm is considering going global. The firm is in the process of determining if it should venture outside of its own borders or be exclusively focused on the domestic market. This determination is typically undertaken in ________ of the going global decision-making process.
A.
Step 1
B.
Step 5
C.
Step 4
D.
Step 3
E.
Step 2
```
step 1
38
```
___________ is the flow of goods and services among different countrieslong dash—the value of all the exports and imports of the world's nations.
A.
Countertrade
B.
Protectionism
C.
World Trade
D.
Import quota
E.
Tariffs
```
world trade
39
```
In terms of the globalization decision described in the text, which of the following is one of two critical factors for a firm deciding whether or not to go global?
A.
World Trade Organization
B.
Domestic demand
C.
Price
D.
Gross Domestic Product
E.
Promotion
```
domestic demand
40
What is the purpose of the International Monetary Fund (IMF)?
A.
Equalizing balance of payments
B.
Controlling fluctuations in exchange rates
C.
Promoting sustainable development
D.
Setting import quotas on foreign goods to reduce competition
E.
Reducing poverty by improving economies
Controlling fluctuations in exchange rates
41
Which of the following is TRUE about Brexit?
A.
In 2018, the U.K approved the U.K.'s withdrawal from the EU.
B.
Brexit is scheduled to officially take place in 2020.
C.
Brexit is a shorthand way of saying exit from NAFTA.
D.
The long-term effects of Brexit are clear.
E.
Brexit is a shorthand way of saying exit from the EU.
Brexit is a shorthand way of saying exit from the EU.
42
```
The main function of ___________ is to ensure that trade flows as smoothly, predictably, and freely as possible.
A.
a tariff
B.
the World Trade Organization (WTO)
C.
NAFTA
D.
an embargo
E.
the General Agreement on Tariffs and Trade (GATT)
```
the World Trade Organization (WTO)
43
```
___________ is/are an extreme quota that prohibits commerce and trade with a specified country altogether.
A.
Tariffs
B.
Embargo
C.
Economic communities
D.
Protectionism
E.
Import quota
```
embargo
44
```
Brazil and Uruguay belong to which of the following economic communities?
A.
MERCOSUR
B.
EU
C.
SAAR
D.
NAFTA
E.
Andean Community
```
MERCOSUR
45
Protectionism can be best defined as when a country ___________.
A.
enforces rules on foreign firms to give home companies an advantage
B.
engages in currency manipulation
C.
uses the WTO to settle trade disputes
D.
emits greenhouse gases, such as carbon dioxide and methane
E.
stabilizes exchange rates to help prevent severe balance of payments problems
enforces rules on foreign firms to give home companies an advantage
46
```
________ is the total value of goods and services a country produces within its borders in a one-year time span.
A.
Gross domestic product
B.
The business cycle
C.
Economic infrastructure
D.
Per capita income
E.
Level of economic development
```
Gross domestic product
47
```
Which business cycle indicates falling demand, employment, and income?
A.
Recession
B.
Depression
C.
Prosperity
D.
Inflation
E.
Recovery
```
Recession
48
```
The total ___________ of the United States was $18.95 trillion with a per capita of $56,000.
A.
LDC
B.
GDP
C.
BOP
D.
foreign exchange rate
E.
level of economic development
```
GDP
49
```
From 2008-09, the global economy experienced ________.
A.
Inflation
B.
the Great Depression
C.
the Great Recession
D.
Economic Recovery
E.
Economic Prosperity
```
the Great Recession
50
```
The airline industry requires substantial investments in equipment or technology to produce a product. As a result, there are a relatively small number of sellers, each holding substantial market share, in a market with many buyers. Because there are few sellers, the actions of each directly affect the others. This is an example of ___________.
A.
an oligopoly
B.
a monopoly
C.
discretionary income
D.
perfect competition
E.
monopolistic competition
```
an oligopoly
51
Nationalization occurs when ___________.
A.
a government seizes a foreign company's assets without any reimbursement
B.
a democratically elected leader calls for free elections in neighboring countries
C.
a domestic government takes control of a company or industry, generally occurring without compensation for the loss of the net worth of seized assets and potential income
D.
countries promote economic growth in the developing world
E.
a certain proportion of a product must consist of components supplied by industries in the host country or economic community
a domestic government takes control of a company or industry, generally occurring without compensation for the loss of the net worth of seized assets and potential income
52
```
________ is when a relationship develops between a firm seeking a stronger commitment to a foreign market and a domestic firm in the target country.
A.
A strategic alliance
B.
Direct investment
C.
Exporting
D.
A license agreement
E.
A franchise agreement
```
strategic alliance
53
```
Which product strategy works on the premise that people in different cultures have strong and different product preferences?
A.
Product invention
B.
Gray market
C.
Product adaptation
D.
Straight extension
E.
Standardization
```
product adaptation
54
```
A firm seeking to find a local firm to adopt its entire business model is utilizing a(n) ___________ market entry strategy.
A.
franchise agreements
B.
strategic alliance
C.
exporting
D.
direct investment strategy
E.
export merchants
```
franchise agreements
55
```
In South Korea, the Dunkin' Donuts menu offers Korean fare such as black rice donuts, jalapeño sausage pie donuts, and rice sticks. Dunkin' Donuts is utilizing which of the following product strategies?
A.
Strategic alliance
B.
Product adaptation strategy
C.
Backward invention strategy
D.
Straight extension strategy
E.
Product invention strategy
```
product adaptation
56
```
___________ is an unethical and often illegal practice in which a company prices its products lower than it offers them at home. This removes excess supply from home markets and keeps prices up there.
A.
A free trade zone
B.
The backward invention strategy
C.
A gray market good
D.
Dumping
E.
A strategic alliance
```
dumping
57
```
___________ is a pricing strategy where the company sets a specific price for a product and retains that price throughout the globe.
A.
Polycentric pricing
B.
Geocentric pricing
C.
Ethnocentric pricing
D.
Balance of payments
E.
Predatory pricing
```
ethnocentric pricing
58
```
The ________ approach describes the decision that does the best job of protecting the moral rights of all affected.
A.
fairness
B.
rights
C.
virtue
D.
justice
E.
common good
```
rights
59
```
What are the basic values and rules of conduct that guide the employees within an organization?
A.
Ethical relativism
B.
Justice
C.
Code of ethics
D.
Business ethics
E.
Virtue
```
business ethics
60
```
A marketer asking, "Which option best treats people equally?" is utilizing which philosophical approach?
A.
Virtue approach
B.
Common good approach
C.
Rights approach
D.
Justice approach
E.
Utilitarian approach
```
utilitarian approach
61
A marketer utilizing the rights approach to make an ethical marketing decision would ask which of the following questions to make a decision?
A.
Which option will produce the most good and do the least harm?
B.
Which option best respects the rights of all who have a stake?
C.
Which option leads me to act as the sort of person I want to be?
D.
Which option treats people equally?
E.
Which option best serves the community as whole, not just some members?
Which option best respects the rights of all who have a stake?
62
```
___________ occurs when someone in authority extracts payment under duress.
A.
Bribery
B.
Code of ethics
C.
Extortion
D.
Ethical relativism
E.
Business ethics
```
extortion
63
```
Which of the following is NOT one of the ethical values included in the Highlights of the American Marketing Association Statement of Ethics?
A.
Sustainability
B.
Honesty
C.
Respect
D.
Transparency
E.
Citizenship
```
sustainability
64
```
________ is the sustainability metric of pounds of material wasted per unit of organizational output.
A.
Toxic emissions
B.
Material intensity
C.
Pollutant emissions
D.
Energy intensity
E.
The triple-bottom-line orientation
```
material intensity
65
```
Which of the following encourages organizations to pay workers in developing countries an equitable wage instead of a minimum wage?
A.
Fair trade
B.
Social capital metrics
C.
Locavorism
D.
Green strategies
E.
Sustainability
```
fair trade
66
```
The ___________ sustainability metric measures the pounds of pollutants emitted in the process of creating organizational output.
A.
toxic emissions
B.
energy intensity
C.
material intensity
D.
water consumption
E.
pollutant (greenhouse gas) emissions
```
pollutant (greenhouse gas) emissions
67
```
The ___________ sustainability metric uses BTUs to measure net fuel energy consumed by an organization for heating and power requirements.
A.
water consumption
B.
toxic emissions
C.
energy intensity
D.
material intensity
E.
pollutant (greenhouse gas) emissions
```
energy intensity
68
```
___________ refers to consumers actively searching out products that come from farms within 50dash–100 miles of where consumers live.
A.
Sustainability metrics
B.
The triple-bottom-line orientation
C.
The virtue approach
D.
Fair trade
E.
Locavorism
```
Locavorism
69
```
Consumers can be an important part of ___________ when they become knowledgeable about environmental concerns and environmentally friendly products.
A.
locavorism
B.
fair trade
C.
sensible business decisions
D.
sustainable marketing practices
E.
the marketing mix
```
sustainable marketing practices
70
```
How do managers match resources and capabilities to make long-term growth decisions?
A.
Functional planning
B.
Integrated activity
C.
Environmental analysis
D.
Strategic planning
E.
Operational planning
```
strategic planning
71
```
Business planning is considered a(n) ________ as all plans related to the business should work to benefit the organization's mission and objectives.
A.
SWOT analysis
B.
strategic plan
C.
integrated activity
D.
marketing plan
E.
functional planning
```
integrated activity
72
```
________ refers to a managerial decision process that matches an organization's resources and capabilities to its market opportunities for long-term growth and survival.
A.
Strategic planning
B.
Operational planning
C.
Business planning
D.
Functional planning
E.
A strategic business unit (SBU)
```
strategic planning
73
```
________ is the second level of planning that involves developing detailed plans for strategies and tactics for the short term, supporting an organization's long-term strategic plan.
A.
Functional planning
B.
Business planning
C.
Operational planning
D.
Strategic planning
E.
A strategic business unit (SBU)
```
functional planning
74
```
According to the text, all ________ is an integrated activity.
A.
business planning
B.
operational planning
C.
strategic planning
D.
functional planning
E.
domestic trade
```
business planning
75
```
Which of the following is considered third-level planning in an organization?
A.
Operational planning
B.
Functional planning
C.
Strategic planning
D.
Business planning
E.
Market planning
```
operational planning
76
```
Which of the following enables an organization to develop strategies that make use of what the company does best in seizing opportunities while simultaneously avoiding threats?
A.
Review of human and intellectual capital
B.
Portfolio analysis
C.
Situation analysis
D.
Business review
E.
SWOT analysis
```
SWOT analysis
77
```
Employee skills and their knowledge, skills, and intellect are considered to be _____.
A.
specific and measurable traits
B.
controllable risks
C.
aspects of the external environment
D.
human and intellectual capital
E.
the basis for the mission statement
```
human and intellectual capital
78
```
In the first step of the strategic planning process, a firm creates a ________, which is a formal statement in an organization's strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources.
A.
return on marketing investment
B.
SWOT analysis
C.
situation analysis
D.
mission statement
E.
business plan
```
mission statement
79
```
McDonalds is working hard at keeping loyal customers even more loyal with a better value menu and great promotions. This would be considered a ________ strategy.
A.
product development
B.
control
C.
market development
D.
market penetration
E.
diversification
```
market penetration
80
```
According to the text, which of the following is NOT a market growth strategy?
A.
Market development
B.
Product development
C.
Market penetration
D.
Diversification
E.
Sustainable development
```
sustainable development
81
```
In step 2 of the strategic planning process, a firm conducts a ________, which enables the organization to develop strategies that make use of what the firm does best in seizing opportunities for growth, while at the same time avoiding external threats that might hurt the firm's sales and profits.
A.
situation analysis
B.
SWOT analysis
C.
portfolio analysis
D.
product development strategy
E.
BCG growthdash–market share matrix
```
SWOT analysis
82
```
Which of the following is used to determine how marketing contributes to the firm's financial success?
A.
Activity metrics
B.
Return on marketing investment
C.
Sustainability
D.
Control process planning
E.
Outcome metrics
```
return on marketing investment
83
```
Which of the following provides a framework that aims toward transparency, inspection, and adaptation while making it easier for team members to produce consistently strong products?
A.
Activity metrics
B.
SWOT analysis
C.
Action plans
D.
Agility
E.
Scrum
```
scrum
84
In step 1 of the market planning process, a firm ________ by analyzing the marketing environment.
A.
performs a situation analysis
B.
sets marketing objectives
C.
selects a target market and the best marketing mix strategy
D.
implements and controls the marketing plan
E.
develops marketing strategies
performs a situation analysis
85
```
A company on ________ of the market planning process is focused on implementing the marketing plan and setting the controls to monitor the progress of the plan compared to the marketing objectives.
A.
step 5
B.
step 4
C.
step 2
D.
step 3
E.
step 1
```
step 4
86
Agile marketing is best defined as ________.
A.
the marketing programs that support the various marketing objectives and strategies within the marketing plan
B.
detailed directions for the specific activities to be carried out, who will be responsible for them, and time lines for accomplishing the tasks
C.
what must be done in order to accomplish the intended purpose of an action plan
D.
having the original goal of embracing the uncertainty and creativity that already governs software development
E.
using data and analytics to continuously source promising opportunities or solution to problems in real time
using data and analytics to continuously source promising opportunities or solution to problems in real time
87
________ is step 4 of the market planning process. At this stage, a firm assesses the potential demand for its productslong dash—and decides whether it is able to create a sustainable competitive advantage in the marketplace.
A.
Performing a situation analysis
B.
Selecting a target market and the best marketing mix strategy
C.
Implementing and controlling the marketing plan
D.
Setting marketing objectives
E.
Developing marketing strategies
Selecting a target market and the best marketing mix strategy
