Class Notes Pulling It All T

Chapter 19 Pulling it All Together: The Strategic Marketing
Process
Student: ___________________________________________________________________________
1. WestJet was founded by four Calgary entrepreneurs in which year?
A. 1967
B. 1975
C. 1988
D. 1996
2. The WestJet founders studied what to determine that their airline could be successful in Western
Canada?
A. their old Marketing textbooks

B. how many travelers there are in Canada
C. how many travelers there are in North America
D. the success of Southwest Airlines
3. Each of the following is a basic business practice that is fundamental to business success
EXCEPT:
A. flexibility.
B. strategy.
C. execution.
D. culture.
4. Having an exclusive contract with a supplier or customer, or having patented useful technology
are considered a(n):
A. distinctive parity
B. sustainable dominance
C. synergistic edge
D. competitive advantage
5. Biopure Corporation has developed an artificial hemoglobin that can be used in place of blood
transfusions and holds the patent on this product. Therefore, Biopure has a(n):
A. distinctive parity.
B. sustainable dominance.
C. synergistic edge.
D. competitive advantage.
6. Last year, General Mills spent $3 million on advertising and observed a 5 percent increase in
market share. This year, they spent $4 million and observed a 7 percent increase. These
measures are considered the:
A. sales ratio function

B. marginal analysis
C. sales response function
D. market-product ratio
7. Sales response functions relate the:
A. expense of marketing effort to primary competitors' spending.

B. expense of marketing effort to marketing results obtained.
C. market share of firm to market share of primary or nearest competitor.
D. incremental costs to market share.
8. Economists would most likely recommend that marketing managers allocate the firm's marketing
resources to the markets and products in which:
A. the firm has had the most experience with a product.

B. an SBU is considered a cash cow.
C. there is the greatest current market share and the fastest growing industry rate.
D. the excess of incremental revenues over incremental costs is greatest.
9. The relationship of annual marketing effort to annual sales revenue is assumed to be an S-

shaped curve because the sales response function shows:
A. that when demand diminishes, production costs rise.

B. an additional $1 million of marketing effort results in a far greater increases of sales revenue in
the midrange of the curve than at either end.
C. the point at which total revenue and total cost are equal.
D. decreasing costs as a result of marketing economies of scale.
10. The S-shaped curve of a sales response function is due to:
A. rising production costs and diminishing demand.

B. reduced cost and increasing marginal returns.
C. initially increasing and then diminishing marginal returns of additional marketing expenditures.
11. You have been told that a company increased its marketing effort from $2 million to $5 million,
and that the same company increased its sales revenue from $12 million to $21 million.
Calculate the company's ratio of incremental sales revenue to incremental marketing effort.
A. 3:1
B. 1:3
C. 9:1
D. 7:19
12. In the Canadian telecom market, Bell Canada, Telus, and Rogers Communications have almost
97 percent of the _____________ in the market.
A. market points
B. ownership points
C. share points
D. customer points
13. New Balance has no celebrity endorsers and does minimal advertising, yet the athletic shoe
brand has 11 percent of the market. This 11 percent can be referred to as New Balance's:
A. product line breadth.

B. product line depth.
C. share points.
D. sales response function.
14. When using share points to make marketing resource allocation decisions, marketing managers
must estimate all of the following EXCEPT:
A. corporate return on investment.

B. market share for the product.
C. revenues associated with each point of market share.
D. the contribution to overhead and profit (or gross margin) of each share point.
15. The marketing manager for Ocean Spray cranberry products is the team leader for each phase of
the company's strategic marketing process. During the previous year, sales of cranberries in
Canada did not meet expectations. Which of the following actions during the planning phase of
the strategic marketing process would generate the required information for his team to develop
the plans that define the goals and marketing mix strategies to be achieved for next year?
A. Generate a memo that clarifies each team member's responsibilities in the strategic marketing
process.
B. Conduct a situation (SWOT) analysis that identifies industry trends, analyzes competitors,
assesses his own company, and researches customers.
C. Develop a new organizational chart that reflects the reorganization of the team if corrective
actions are not successful in the upcoming year.
D. Write action memos to try to correct problems and exploit opportunities.
16. At which stage in the strategic marketing process would a marketing manager set a 10 percent
market share growth goal compared to last year?
A. Research
B. Planning
C. Goal Setting
D. Implementation
17. Which aspect is the foundation of Canada Goose's differentiation strategy?
A. high-quality products
B. made in Canada
C. off-shore production
D. premium pricing
Figure 19-1
18. According to Figure 19-1, an additional annual marketing effort of $1 million is best spent after
having already spent how much in marketing effort to date?
A. $1 million
B. $2 million
C. $3 million
D. $5 million
19. According to Figure 19-1, the result of spending an additional $1 million, from $3 million to $4
million, resulted in increased revenues of __________.
A. $20 million
B. $40 million
C. $50 million
D. $70 million
20. Canada Goose's social media success has been all organic. One of the fundamental social
media marketing strategies of Canada Goose is:
A. content creation through story telling

B. ad-based growth
C. allowing customers to complain online
D. offering discounts through social media purchases
21. All of the following are aspects of beneficial synergies that are expected to be generated through
the purchase of Shoppers Drug Mart by Loblaw, except:
A. additional scale
B. more staff than needed
C. market coverage
D. operating cost savings
22. Which of the following pieces of information is used in a SWOT analysis, the first step of the
planning phase of the strategic marketing process?
A. Corporate return on investment

B. Market share for the product
C. Revenues associated with each point of market share
D. Projection of future sales, expenses, and profits

D. Trends in past and current revenues for industry and competitors
24. Which of the following pieces of information is used in the second step of the planning phase of
the strategic marketing process?

B. Market potential studies
D. Trends in past and current revenues for industry and competitors in total and by segment
25. Which of the following pieces of information is used in the second step of the planning phase of

B. Market-product grids with ranked targets
26. All of the following are correct statements about the evolving role of the Chief Marketing Officer
(CMO), except?
A. increased focus on "voice of the customer"

B. increased turnover of CMOs
C. reduced turnover of CMOs
D. how the Internet is impacting purchasing behaviors
27. Which of the following pieces of information is used in the third step of the planning phase of the
strategic marketing process?

B. Characteristics and timing of marketing mix actions
28. All of the following are goals of the marketing ROI concept except:
A. understand marketing spending

B. quantify marketing spending
C. optimize marketing spending
D. reduce marketing spending
29. At which stage in the strategic marketing process would improving marketing ROI be assessed?
A. Planning
B. Assessment
C. Evaluation
D. Measurement
30. Which of the following pieces of information is used in the implementation phase of the strategic
marketing process?

B. Gantt charts
marketing process?

B. Organizational charts and job descriptions
marketing process?

B. Marketing research reports
33. Which of the following pieces of information is used in the evaluation phase of the strategic
marketing process?

B. Tracking reports measuring results of marketing actions
marketing process?
A. Marketing metrics and marketing dashboards

B. Memos assigning responsibilities for actions and deadlines
35. Which of the following output reports is used in the planning phase of the strategic marketing
process?
A. Marketing plans that define goals

B. Action memos that tell who is to do what
C. Action memos that tell who is to do what by when
D. Corrective action memos
36. Which of the following output reports is used in the implementation phase of the strategic
marketing process?

B. Projections of sales and expenses
37. Which of the following output reports is used in the evaluation phase of the strategic marketing
process?

38. As described in the textbook example, all of the following are examples of metrics used by
General Mills' Channel Marketing Dashboard, except:
A. Monthly Unit Sales by Channel

B. Percentage of Total Sales Revenues by Channel
C. Average Number of Flavours Carried by Channel
D. Average Number of Sales per Channel
39. The actions taken in situation (SWOT) analysis, or Step 1 of the planning phase, include: 1)
identify industry trends, 2) __________, 3) assess own company, and 4) research customers.
A. set market and product goals

B. select target markets
C. find points of difference
D. analyze competitors
40. All of the following would be suitable reasons to engage in a merger to create synergies for the
larger company, except:
A. observe IT savings
B. employ double the employees than needed
C. expand market reach
D. secure patented technologies
41. The information needed in situation (SWOT) analysis, Step 1 of the planning phase, includes: 1)
trends for industry and competitors and 2) __________
A. projections of future sales, expenses, and profits.

B. market potential studies.
C. positioning studies.
D. market-product grids with targets.
42. The actions taken during market product focus and goal setting, Step 2 of the planning phase,
include: 1) __________, 2) select target markets, 3) find points of difference, and 4) position the
product.
A. identify industry trends

B. set market and product goals
C. research customers
D. develop the program's marketing mix
include: 1) set market and product goals, 2) __________, 3) find points of difference, and 4)
position the product.

include: 1) set market and product goals, 2) select target markets, 3) __________, and 4) position
the product.

B. find points of difference
45. The actions taken during market product focus and goal setting, step two of the planning phase,
include: 1) set market and product goals, 2) select target markets, 3) find points of difference, and
4) __________.

B. position the product
46. The information needed in market product focus and goal setting, Step 2 of the planning phase,
includes: 1) __________, 2) market-product grids with targets, and 3) positioning studies.
A. market potential studies

B. trends for industry and competitors
C. marketing mix actions
D. detailed plans to execute the marketing program
47. The information needed in market product focus and goal setting, Step 2 of the planning phase,
includes: 1) market potential studies, 2) market-product grids with targets, and 3) __________.
A. trends for industry and competitors

B. marketing mix actions
C. detailed plans to execute the marketing program
D. positioning studies
48. The actions taken in the marketing program, Step 3 of the planning phase, include: 1) develop the
program's marketing mix and 2) __________.
A. select target markets

B. identify industry trends
C. position the product
D. develop the budget by estimating revenues, expenses, and profits
49. The information needed for the marketing program, Step 3 of the planning phase, includes: 1)
__________ and 2) detailed plans to execute the marketing program.
A. positioning studies
C. market-product grids with targets
D. projections for future sales, expenses, and profits
marketing mix actions and 2) __________.
B. market-product grids with targets
51. The actions taken during the implementation phase of the strategic marketing process include: 1)
__________, 2) design marketing organization, 3) develop schedules, 4) and execute the
marketing program.
A. obtain resources
D. find points of difference
obtain resources, 2) __________, 3) develop schedules, 4) and execute the marketing program.

B. design marketing organization
obtain resources, 2) design marketing organization, 3) __________, 4) and execute the
marketing program.
A. develop schedules
C. select target markets
obtain resources, 2) design marketing organization, 3) develop schedules, 4) __________.
A. position the product

D. execute the marketing program
55. All of the following are pieces of information used during the implementation phase of the
strategic marketing process, except:
A. organizational charts
B. action memos with deadlines
C. marketing research
D. market potential studies
56. A breakdown of the hierarchy of roles, who reports to who, who manages who, and the overall
chain of command is referred to as a(n):
A. positioning chart
B. organizational charts
C. people chart
D. arrangement chart
57. Setting up an organizational chart would most likely to occur during which phase of the strategic
marketing process?
A. planning
B. resourcing
C. implementation
D. assessment
58. The actions taken during the evaluation phase of the strategic marketing process include: 1)
__________ and 2) correct negative deviations; exploit positive ones.
A. find points of difference

B. execute the marketing program
C. compare results with plans to identify deviations
D. track sales and revenues and compare with competitors
compare results with plans to identify deviations and 2) __________.

C. correct negative deviations; exploit positive ones
60. The information used during the evaluation phase of the strategic marketing process includes: 1)
__________ and 2) action memos to correct problems, exploit opportunities.
C. tracking reports to measure results
TB Figure 1
61. Each phase of the strategic marketing process creates its own unique type of output report.
Which of the following would be associated with the planning phase?
A. Marketing plans (or programs) that define goals (with pertinent marketing metrics) and the
marketing mix strategies to achieve them.
B. Performance reviews for key personnel.
C. Action memos that tell (1) who is (2) to do what (3) by when.
D. Corrective action memos, triggered by comparing results with plans often using the firm's
marketing metrics and dashboards.
62. Referring to TB Figure 1, each phase of the strategic marketing process creates its own unique
type of output report. Which of the following would be associated with the implementation phase?
A. Performance reviews for key personnel.

B. Corrective action memos, triggered by comparing results with plans often using the firm's
C. Sales reports using the firm's marketing metrics and dashboards.
D. Action memos that tell (1) who is (2) to do what (3) by when.
63. Referring to TB Figure 1, each phase of the strategic marketing process creates its own unique
type of output report. Which of the following would be associated with the evaluation phase?

C. Sales reports using the firm's product metrics and dashboards.
64. Typically, the _____ marketing plan covers marketing activities over a period of two to five years
in the future. The _____ marketing plan, which is highly structured and detailed, is usually
developed by a product manager and begins with marketing research and ends after 48 weeks
with the approval of the general manager.
A. annual; new product,

B. new product; long-range
C. long-range; new product
D. long-range; annual
65. Long-range marketing plans:
A. sequence the details of day-to-day activities dealing with the implementation of a product
strategy in the strategic marketing process.
B. deal with marketing goals and strategies for a product, product line, or entire firm for a single
year.
C. predict anticipated revenue for each year during a two to five year period.
D. cover marketing activities from two to five years into the future.
66. The new Chief Marketing Officer at Pepsi outlines her marketing strategy and plan for the next
four years. This plan is called a:
A. generic marketing strategy

B. long-range strategic plan
C. marketing strategy
D. long-range marketing plan
67. With the exception of such industries as autos, steel, or forest products, most long-range plans
cover a period of:
A. 6 to 8 months.
B. 1 year.
C. 2 to 5 years.
D. 5 to 10 years.
68. A new manager at Whirlpool creates a plan for each major product line (large appliance and small
appliance) to execute in the following year. This plan is likely a(n):
A. short term plan

B. annual marketing plan
C. product line plan
D. recurring marketing plan
69. Farah, who works for Coca-Cola, set next year's sales goal for Diet Coke to increase 3 percent
from last year. She then built a plan around this. Farah as created an annual:
A. production estimate
B. sales forecast
C. marketing plan
D. budget projection
70. A simple strategy: "to be the low-cost provider in our niche market" is an example of a:
A. generic business strategy

B. niche-market strategy
C. low-cost strategy
D. focused business strategy
71. All of the following would be considered examples of Porter's generic business strategies,
except:
A. cost leadership
B. cost focus
C. differentiation
D. specificity
72. Based on relative competitive scope (broad target to narrow target) and source of competitive
advantage (lower cost to differentiation), Porter's four generic business strategies are
differentiation, cost focus, differentiation focus, and:
A. exclusivity.
B. electronic-focus.
C. quality focus.
D. cost leadership.
advantage (lower cost to differentiation), Porter's four generic business strategies are cost
leadership, cost focus, differentiation focus, and:
A. service leadership.
B. diversification.
C. reactive.
D. differentiation.
74. IKEA is likely to have which generic business strategy?
A. diversification
B. service leadership
C. quality leadership
D. cost focus
75. Volkswagen is likely to have which generic business strategy?
A. price leadership
B. diversification
C. quality focus
D. differentiation focus
76. Which type of firm can use a generic business strategy?
A. low-cost producers
B. reseller
C. discount firm
D. any firm regardless of the product or industry
77. Walmart uses which type of generic business strategy?
A. differentiation focus
B. cost focus
C. differentiation
D. cost leadership
78. All of the following statements about cost leadership strategy are true, except:
A. Cost focus strategy requires reducing expenses to lower the price of the items sold in a
relatively broad array of market segments.
B. Significant investments in capital equipment may be necessary to improve the production or
distribution process to give low unit costs.
C. The cost leader still must have adequate quality levels.
D. Walmart's sophisticated systems of regional warehouses and electronic data interchange with
suppliers have led to huge cost savings.
Figure 19-4
79. In Porter's generic business strategy shown in Figure 19-4, quadrant "C" refers to a __________
strategy.
A. quality focus
B. cost leadership
C. differentiation
D. cost focus
80. In Porter's generic business strategy shown in Figure 19-4, quadrant "D" is called __________.
A. quality focus
B. cost leadership
C. differentiation focus
D. cost focus
81. In Porter's generic business strategy shown in Figure 19-4, Campbell Soup is likely to be found in
which square?
A. A
B. B
C. C
D. D
82. A firm following a cost leadership strategy would be found in __________ in Figure 19-4.
A. quadrant A
B. quadrant B
C. quadrant C
D. quadrant D
83. Office Depot would be found in which quadrant in Figure 19-4?
A. quadrant A
B. quadrant B
C. quadrant C
D. quadrant D
84. A firm following a differentiation strategy would be found in __________ in Figure 19-4.
A. quadrant A
B. quadrant B
C. quadrant C
D. quadrant D
85. A firm following a differentiation focus strategy would be found in which quadrant in Figure 19-4?
A. quadrant A
B. quadrant B
C. quadrant C
D. quadrant D
86. In Porter's generic business strategy shown in Figure 19-4, quadrant "B" refers to a __________
strategy.
A. quality focus
B. cost leadership
C. differentiation
D. cost focus
87. In the early 1900s, Henry Ford revolutionized the automobile industry by developing production
lines and mass producing the Ford Model T automobile. By reducing production costs, Henry
Ford, Ford made the Model T quite affordable for the average American family. What business
strategy did Henry Ford use to gain a competitive advantage in the automobile market?
A. Ford used a differentiation strategy.

B. Ford used a cost focus strategy.
C. Ford used a differentiation focus strategy.
D. Ford used a cost leadership strategy.
88. In the 1920s, the Ford Motor Company dominated the automotive industry. Henry Ford's low
priced, mass produced Model T, available in only one colour and with few options, was selling like
hot cakes to car buyers. In order to combat Ford's success, General Motors offered automobiles
in a variety of colours and with special features that were designed to fit the specific needs and
wants of individual car buyers in many different segments of the market. By employing a _____
business strategy, General Motors developed a position that was very distinct from that of the
Ford Motor Company.
A. cost leadership strategy

B. cost focus strategy
C. differentiation strategy
D. differentiation focus strategy
89. Many people are concerned about eating healthy, yet many of these same people still grab lunch
at fast-food restaurants because the restaurants are convenient, and they like beef. Burger King
has created a veggie burger that "tastes like the real thing without all the fat." Burger King is using
a _____ strategy to attract this large market that encompasses many different segments.

90. According to Porter's four generic business strategies model, Apple would be considered using
which strategy?
B. cost focus
C. differentiation
D. cost leadership
91. Reality television shows are televised nearly every night of the week. Most show how individuals
live and compete in unfamiliar groups and surroundings. One has pairs of contestants competing
against each other. UPN network developed a novel approach to reality programming by creating
a show that pitted stereotypical North American families (father, mother, and two children) against
other families. By focusing on family dynamics instead of individuals, UPN hoped to have an
across-the-board appeal to all segments. UPN was using a(n) _____ strategy to attract viewers.
B. cost focus
C. differentiation
D. cost leadership
92. EasyJet and Ryanair, two European airlines have been successful in offering low fares between
certain cities in Europe. These two airlines likely use which strategy?
B. cost focus
C. differentiation
D. revenue leadership
93. Aldi is a no-frills grocery chain. It sells grocery staples right out of the crates and boxes with
emphasis on low-priced, private-label brands. Aldi stores are typically about one-third the size of
the traditional supermarket. By controlling expenses, Aldi customers can expect to save 30 to 50
percent on their grocery bills compared to Kroger customers. The chain targets bargain hunters
who are willing to rent a cart and bag their own groceries. In terms of Porter's generic business
strategy, Aldi uses a _____ strategy.
B. cost focus
C. differentiation
94. According to Porter's four generic business strategies model, a maker of super-premium Ontario
Icewine would likely follow which strategy?
B. cost focus
C. differentiation
D. cost leadership
95. Hard Candy is a cosmetics company that markets the Palm Palette—all the make-up a "girl-on-
the-go" needs without a cumbersome make-up bag. It comes in three shades: glam, funky, and
girlies. Hard Candy targets women who are twenty-something (and to those who are pretending
they still are). Which one of Porter's generic business strategies does Hard Candy use?
B. cost focus
C. differentiation
D. cost leadership
96. Hyundai Motor America (HMA) became the first automaker to offer consumers an Internet parts
ordering system. The system was targeted only to current Hyundai owners and gave Hyundai the
ability to collect a vast amount of customer data about people who buy its cars. Which of Porter's
generic business strategies did Hyundai use when it launched its website?
A. cost leadership
B. differentiation
D. cost focus
97. Many people enjoy cereal at breakfast. In terms of "profit enhancement options" alternatives,
cereal manufacturers who promote cereal as a great late-night snack to this group would be using
a _____ strategy.
A. market penetration
B. product development
C. differentiation
D. diversification
98. When Home Depot opens new stores in Mexico, it is using a ______ strategy, one of the profit
enhancement options.
B. market development
C. differentiation
D. diversification
99. The Molson-Coors merger created the fifth largest brewing company in the world. It also created:
A. value-based marketing.
B. a high sales response function.
C. synergies.
D. new retail outlets.
100.When John's Auto Shop merged with Mike's Glass Repair, customers received discounts at both
businesses, while at the corporate level, the new company saw an overall increase in sales.
These benefits are referred to as:
A. Value-based marketing
B. Value-adds
C. Synergies
D. Points of difference
101.The market-product grid:
A. shows the fastest areas of industry growth.

B. enumerates all possible competitive firms.
C. helps identify important marketing and production efficiencies.
D. pinpoints alternatives and uncertainties.
102.Which of the following is an advantage inherent in the use of market-product grids?
A. A market-product grid identifies potential supply-chain opportunities.

B. A market-product grid highlights potential synergies.
C. A market-product grid shows potential revenue losses caused by cannibalism.
D. A market-product grid identifies potential advertising appeals.
103.Loving Care Pets manufactures dog food specifically created for puppies under three months of
age. In terms of the market-product grid framework, Loving Care Pets is a small firm without
sustainable comparative advantages in marketing or production resources and its strategy would
be described as:
A. market-product concentration.
B. market specialization.
C. product specialization.
D. selective specialization.
104.Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils, specifically created for
pets under three months of age. Assuming it is marketing to a single segment of "pet owners," in
terms of the market-product grid framework, Loving Care Pets is using a _____ strategy.
A. market-product concentration
B. market specialization
C. product specialization
D. selective specialization
105.Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils, specifically created for
pets under three months of age. In terms of the market-product grid framework, adding a line of
pet food for mature dogs, cats, rabbits, and gerbils will give a _____ strategy that will provide
Loving Care Pets with relatively high economies of scale in marketing.
106.Demeter fragrances are unlike perfumes because perfume manufacturers combine several
scents to create a perfume. The founder of the company realized these fragrances smell
wonderful on their own. More than 150 different individual scents such as Woodsmoke, Rust,
Vanilla, Mildew, Lobster, Lilies, and Chocolate are bottled under the Demeter brand. Each
Demeter fragrance appeals to a unique market segment that prefers only that fragrance.
According to the market-product grid framework, Demeter uses a _____ strategy.
107.A new company announces the following at a press release: "We are in the business of making
luxury 150 foot yachts, and only luxury 150 foot yachts." The competition would assume this
company's strategy is:
108.After making luxury 150 foot yachts for five years, this company decides to offer 50 foot and 200
foot versions. The competition would view this strategy as:
A. full coverage
109.Which marketing strategy would most likely offer the greatest economies of scale in marketing
costs?
110.Which marketing strategy involves retaining focus on a single product line but marketing it to new
markets?
A. full coverage
111.Which marketing strategy would most likely offer the greatest economies of scale in research and
development and production expenses?
112.A yacht manufacturer releases a press release that states: "We make luxury 50, 100, 150, and
200 foot yachts, as well as, hobby fishing boats, and jet skis." The competition would view this as
which strategy?
A. full coverage
113.What is the primary disadvantage of employing a selective specialization strategy?
A. The organization may not have any experience in the selected markets it chooses to target.
B. The organization may get involved with SBUs it cannot run efficiently.
C. The organization cannot achieve either marketing or production economies of scale.
D. The organization may suffer from product cannibalism.
114.Which marketing strategy is at risk of having R&D resources too spread out?
A. full coverage
115.Which two aspects of the following statement make it an effective goal?
"Increase market share from 18 to 22 percent by December 31, 2015."
A. loose and vague

B. as general as possible
C. flexible or elastic
D. quantified and measurable
116.The more a marketing plan is based on _____, rather than guesses, the less uncertainty and
fewer risks are associated with executing it.
A. industry forecasts and sales predictions

B. intuitions and forecasts
C. past historical data
D. facts and valid assumptions
117.A town hall-style meeting is held at Whirlpool to discuss the launch of their 2015 annual
marketing plan. The purpose of this meeting is to ensure that all levels of the organization
understand the what, when, and how components of their job descriptions as they pertain to this
annual plan. This meeting will lead to _____ of their marketing plan.
A. effective adoption
B. effective acculturation
C. effective execution
D. effective feasibility projections
118.At the end of the first six months of the year, a marketing manager realizes that they are tracking
2-3 percentage points lower than expected. As a result, the marketing manager will engage in
____________ to update the original plan.
A. replanning
B. contingency planning
C. downsizing
D. dynamic planning
119.Which of the following is a guideline for developing effective marketing plans?
A. Rely on intuition and experience.

B. Create complex plans that leave nothing to chance.
C. Set qualitative goals only.
D. Incorporate all the key marketing mix factors.
120.All of the following are a potential problems that could occur in the planning phase of a firm's
A. Plans are based on great assumptions.

B. Planners and their plans may have lost sight of their customers' needs.
C. Too much time and effort may have been spent on analysis of data.
D. Responsibility for planning and strategy development may be assigned to planners so that line
operating managers feel no sense of ownership in implementing plans.
121.A marketing manager combines marketing planning ideas and financial planning techniques to
assess how their division is contributing to the price of the company's stock. The marketing
manager is engaging in:
A. Value-driven strategy
B. Value-based planning
C. Value analysis
D. Market audit
122.Value-based planning combines marketing planning ideas and financial planning techniques to
assess how much a division or a strategic business unit (SBU) contributes to:
A. benchmarking efforts.
B. realizing important societal needs.
C. the elimination of cannibalization.
D. the price of a company's stock (or shareholder wealth).
123.All of the following are typical objectives for value-based planning, except:
A. return of investment (ROI)

B. division market share
C. profit
D. shareholder wealth
124.Recently, Kellogg's introduced Mickey's Magix cereal. It was designed to get children who
currently don't eat cereal to eat cereal for breakfast. When milk is added to the cereal, it turns a
pastel blue. The cereal itself is very similar to General Mills' Lucky Charms but with the addition
of food colouring. Kellogg's new (for it) product targeted at a new segment (children who don't eat
cereal) is an example of:
B. diversification
C. product penetration
D. market development
125.Quaker took its Instant Oatmeal and added Dinosaur Eggs, which have colourful creatures that
appear when boiling water is added. Research shows that children who would not eat plain
oatmeal (defined as a new segment) are extremely attracted to the product, which Quaker views
as basically the same as its standard Instant Oatmeal. From Quaker's viewpoint, this is a _____
strategy.
B. diversification
126.When concerns for ethics, integrity, employee health and safety, and environmental safeguards
are incorporated with more common corporate values, such as growth, profitability, and quality,
the company is engaging in a:
B. Value-based plan
C. Value analysis
D. Market audit
127.Ben & Jerry's Homemade Inc. is a profitable company that has a reputation for quality. The
company is committed to treating its employees fairly and acting ethically in all transactions. It
seeks to purchase all of its supplies from socially responsible suppliers. It is a leader in protecting
the environment and corporate philanthropy. Ben & Jerry's uses _____ to allow it to operate in
this manner.
A. value-driven strategies
B. service-based planning
C. value analyses
D. situational audits
128.The BCG or Boston Consulting Group is probably best known for its:
A. growth-share portfolio matrix.

B. focus on Hugo's Ski Shack which rents water skis to vacationers.
C. website which offers planning guidelines and interactive strategy case.
D. stands on ethical issues.
129.In considering both the effectiveness of (1) a marketing plan, and (2) its implementation, the
"disaster" combination is:
A. good planning, good implementation.

B. good planning, bad implementation.
C. bad planning, good implementation.
D. bad planning, bad implementation.
130.The reformulation of the original Coca-Cola to new Coca-Cola (Coca-Cola Classic) was one of
the biggest decisions in the firm's history. Let's call Coke's decision to respond to Pepsi's market
gains: Coke's "strategy and planning" and its initial withdrawal of original Coca-Cola and
substitution of new Coca-Cola and Coke's "implementation" of this strategy. The spread of ill will
among loyal original Coca-Cola customers after Coke announced the change in its formula is an
example of:
A. appropriate strategy and effective implementation.

B. appropriate strategy and ineffective implementation.
C. inappropriate strategy and effective implementation.
D. inappropriate strategy and ineffective implementation.
131.As the marketing manager for gizmos at Acme Products Inc., you notice sales have been below
expectations. Based on the results of a customer satisfaction survey recently conducted, you
discover consumers want Acme gizmos to have more features, which will make them a better
value relative to comparable offerings by competitors. However, on the positive side, customers
stated Acme gizmos were (1) widely available in sufficient quantities, (2) made with high quality
materials, (3) sold by knowledgeable salespeople at the appropriate retail outlets where they
would shop for gizmos, and (4) the average response time for the toll-free telephone hotline for
customer questions and complaints was significantly less than expected. Based on this
information, you should conclude Acme used:
A. an appropriate marketing strategy and effective implementation.

B. an inappropriate marketing strategy but effective implementation.
C. an appropriate marketing strategy but ineffective implementation.
D. an inappropriate marketing strategy and ineffective implementation.
132.As the marketing manager for Acme Products Inc., you just became the new program leader for
Baubles, a product Acme introduced last year. Initial sales far exceeded expectations. In
response, the previous program leader decided to reduce the profit margins for channel
members to more quickly recover the high costs incurred in the development of the Baubles
product and its marketing program. Unfortunately, sales of Acme Baubles declined by 2 percent
while its market share declined by 7 percent as new competitors entered the market. After
conducting a customer survey, you conclude customers were generally satisfied with Acme's
Baubles. However, Baubles were not as readily accessible as they were the previous year.
Furthermore, after conducting a survey among the leading wholesalers and retailers of Acme
Baubles, you discover they were not pleased with the reduced margins. Moreover, because
Acme's principal competitors offered them greater margins, they gave the competitors' products
competing with Baubles better service and shelf space than Acme's. This is an example of:

133.When Jack Welch took over at General Electric, he adopted a plan in which he:
A. increased the number of hierarchical levels in the company.

B. downsized and delayered.
C. created more middle-level marketing manager positions.
D. focused on market diversification strategies.
134.Which of the following statements about what happened at General Electric (GE) during the last
decade is true?
A. GE added 15,000 employees and added several marketing manager positions.

B. GE adopted a market niche strategy, which allowed it to accept the fact that it was not #1 or
#2 in each industry in which it was involved.
C. GE vowed to be loyal to its employees and do whatever it could to maintain job security.
D. Jack Welch was focused on delayering the company, as it had too many managers.
135.Which of the following is NOT a managerial practice designed to improve the implementation of
marketing programs?
A. Schedule precise tasks, responsibilities, and deadlines so each employee knows what is
expected.
B. Analyze, design, test, and retest the marketing program solutions to get it right the first time to
avoid costly "fix-its" during the implementation.
C. Communicate marketing goals to each team member so each knows the standards by which
performance will be evaluated.
D. Reward successful marketing program implementation by giving team members bonuses,
recognition awards, promotions, etc.
136.Mike works at GE Canada and is responsible for innovation. His major task is to ensure that high-
potential ideas are not slowed down by bureaucracy. Mike would be considered a(n):
A. channel captain
B. marketing mediator
C. program director
D. product champion
137.Which statement best reflects the advice given by management experts regarding the tendency
to excessively analyze a problem?
A. Don't put a product on the market until it's perfect.

B. Try a "do it, fix it, try it," approach.
C. If a problem arises, assemble a committee of the appropriate people to solve it.
D. Better to ask forgiveness than permission.
138.Management experts warn against the tendency to excessively analyze a problem instead of
taking action. This problem is called:
A. dumb and dumber.

B. paralysis by analysis.
C. fits and starts.
D. letting sleeping dogs lie.
139.An aid that helps to implementing a marketing plan and consists of three columns (task, name,
and date) is often referred to as a(n):
A. marketing action memo

B. job analysis
C. action item list
D. program schedule
140.The following note was sent out after a meeting: "Stephen, complete question review and
update—To be finished by December 2013." This is likely part of a(n):

B. job analysis
C. action item list
D. program schedule
141.The three columns of an action item list contain information about the:
A. procedure, its deadline, and its budget.

B. task, the procedure, and the budget.
C. budget, the person responsible, and the evaluation process.
D. task, the person responsible, and the deadline.
142.Program schedules are described by all of the following statements, except:
A. are similar to program item lists.

B. show the relationships through time of the various tasks to be accomplished.
C. can be done using Gantt charts.
D. require that sequential and concurrent tasks be identified.
143.As a new employee, your manager asked you to complete an action item list for an upcoming
marketing project. Confused, you hesitated a moment before realizing that an action item list is
pretty much the same as a:
A. product-market strategic assignments.

B. job analyses.
C. program schedules.
D. value analyses.
144.Which of the following is NOT a step in developing program schedules such as Gantt charts?
A. Identify the main tasks.

B. Assign responsibilities to complete each task.
C. Determine how long it will take to complete each task.
D. Determine how much it will cost to finish the task on time.
145.The key to all scheduling techniques is to:
A. avoid scheduling tasks that can be done concurrently.

B. avoid tasks that must be done sequentially.
C. make sure to allow a 20 percent delay factor to account for contingencies.
D. distinguish tasks that must be done sequentially from those which can be done concurrently.
146.Employees who have the authority and responsibility to issue orders to people who report to
them are known to be in which position?
A. staff
B. line
C. clerical
D. stakeholder
147.Employees who have the responsibility to advise people in line positions but cannot issue them
direct orders are usually in which position?
A. staff
B. line
C. stakeholder
D. management
148.Which of the following is an example of a staff position for Bush Refrigeration Company, a
company that sells refrigeration units on a lease-to-buy plan to small flower shops, delis, and
restaurants?
A. the CEO of the company

B. the company's Vice President of finance
C. the men who deliver and install the refrigeration units
D. the company's legal advisor
149.Those in staff positions have the authority and responsibility to advise people in line positions:
A. and can recommend salary and benefit adjustments for them.

B. but cannot issue direct orders to them.
C. but must clear all such communication with their superiors.
D. and must clear all such communication with the corporate human resources department.
150.Which of the following is NOT a divisional grouping used by marketing managers to implement
plans and achieve their organizational objectives?
A. geographical grouping
B. marketing channel grouping
C. product line grouping
D. market-based grouping
151.Whirlpool uses an organizational structure with the following headings: Small Appliance, Large
Appliance, Outdoor Equipment, and Electronics. What format of organizational structure is
Whirlpool based on?
A. product offerings
B. areas such as marketing, finance, and R&D
C. areas of geographic location
D. method of distribution
152.GE organizes their structure by marketing, finance, and R&D. GE's structure is referred to as:
A. product line grouping

B. functional grouping
C. geographical grouping
153.General Mills has three divisions in Canada: Eastern, Central, and Western Canada. General
Mills organizes their structure using:
A. product type
C. areas or location
154.The IBM maintains a "one-product-fits-all" mentality, but each sales representative sold the
company's entire line of products to different customers in a single industry, such as
manufacturers or banks. This structure is known as:

B. geographical grouping
C. functional grouping
D. market-based groupings
155.An organizational structure that is based on specific customer segments, such as the banking,
health care, or manufacturing segments, is using:
A. product line grouping.

B. geographical grouping.
C. functional grouping.
D. market-based grouping.
156.Deloitte Consulting categorizes their customers by banking, healthcare, private, and

entrepreneurs. Deloitte is basing its organizational structure on:
A. geographic areas
B. lines of products
C. or particular products only
D. customer segments
157.Within DuPont's textile fibre department, there is a separate product manager for rayon, acetate,
Orlon, nylon, and Dacron. Each product manager is responsible for selling to the various markets
in which the textile could be used such as clothing, furniture, or floor coverings. Its other product
divisions have similar structures. DuPont uses _____ to organize the company.

D. matrix organization
158.Ingram Micro is the biggest computer wholesaler in the world. It has two divisions. One provides
supplies for companies that manufacture computer products, such as IBM and Microsoft. To
them it sells motherboards, monitors, etc. The other has been developed to serve the needs of
the resellers and retailers who sell computers to businesses and individual customers. To them, it
sells user-ready computers. Ingram Micro uses a simplistic version of what kind of organizational
structure for marketing?

159.A matrix organization:
A. combines a product line structure with a geographical structure.

B. combines a geographical structure with a market-based structure.
C. combines a market-based structure with product groupings.
D. turns a horizontal organizational structure into a vertical one.
160.A category manager:
A. is a position that is only found in industrial products firms.

B. has profit-and-loss responsibility for an entire product line.
C. does not have any profit responsibility.
D. attempts to maximize each individual brand's successes, even at the expense of another, to
maximize the overall profitability of the product line.
161.Colgate moved from brand management (Colgate toothpaste) to category management

(toothpaste product line). Under Colgate's new system, a category manager would have:
A. completely different duties from the brand manager.

B. profit-and-loss responsibility for all toothpaste products.
C. to use persuasion as opposed to direct authority to get any goals achieved.
D. no authority over functions that affects toothpaste products except marketing.
162.Within DuPont's textile fibre department, there is a separate product manager for rayon, acetate,
Orlon, nylon, and Dacron. The product manager for DuPont nylon would be responsible for:
A. making long-range plans for nylon.

B. maintaining the divisional mission statement.
C. modifying DuPont's organizational structure.
D. creating static marketing objectives.
163.General Mills uses a marketing structure in which one person is ultimately responsible for the
marketing of a specific product. For instance, one person is responsible for setting marketing
goals and developing and implementing related marketing strategies for the well-known breakfast
cereal, Cheerios. This person, who takes responsibility for the success or failure of the marketing
of Cheerios, is called a(n):
A. marketing advisor.
B. product advisor.
C. account executive.
D. product manager.
164.Which of the following is NOT traditionally a responsibility of a product or brand manager?
A. preparing annual marketing plans, sales forecasts, and budgets

B. working with advertising agencies to develop advertising campaigns
C. finding ways to improve existing products and create new ones
D. selecting and training the sales force
165.Many large, packaged goods marketers like Procter & Gamble, Kraft, and Pillsbury have used
the product manager (or brand manager) system of marketing organization and implementation.
Which of the following is the key advantage of this system?
A. Product managers have major responsibilities and relatively little authority.

B. Product managers are short-term in their orientation.
C. Product managers can assume profit-and-loss responsibility for the performance of the
product line.
D. Product managers have direct responsibility for research and development of new products.
166.Which of the following statements describes a disadvantage of the product manager system?
A. Product managers are strong advocates for their assigned product.

B. Product managers tend to remain in the same position for an extended period of time.
C. Even though product managers have major responsibilities, they have relatively little direct
authority.
D. Product managers are considered line personnel and therefore have little control over decision
making.
167.All of Samsung's products where selling above forecasted numbers in 2014, except for their
microwaves, which were not following their annual marketing plan. Executives focused on
microwaves and implemented a new strategy to attempt to reverse the trend. Samsung was
employing:
A. a sales analysis.
B. a deviation analysis.
C. management by exception.
D. a situation analysis.
168.A marketing manager uses management by exception to:
A. take over responsibilities no one else can handle.

B. schedule concurrent and sequential activities using the NIH model.
C. identify results that deviate from plans to diagnose their causes and take new actions.
D. delete from the line any product that fails to have both marketing and production economies of
scale with the existing line.
169.All of the following are steps in the strategic marketing process, except:
A. planning.
B. implementation.
C. evaluation.
D. analysis.
170.The evaluation phase of the strategic marketing process includes all of the following activities
EXCEPT:
A. establishing quantified goals to be measured.

B. measuring the results against the quantified goals.
C. comparing goals and results to identify deviations.
D. identifying the causes of deviations.
171.The evaluation phase of the strategic marketing process includes all of the following, except:
A. taking actions to solve problems and exploit opportunities.

B. measuring results against quantified goals.
C. creating goals and results to identify deviations.
D. identifying the cause of deviations.
172.Amy Smith has just completed measuring the results of her firm's marketing plan. Her next step
will be to:
A. compare the results to the goals set for that marketing plan.
B. do a profitability analysis.
C. take necessary corrective action.
D. bring these to the marketing auditor.
173.The application of modern measurement technologies to understand, quantify, and optimize

marketing spending is known as:
A. Profitability analysis
B. Sales analysis
C. Marketing component analysis
D. Marketing ROI
174.WestJet has quite the presence on social media, for example, their YouTube videos have
________ views.
A. 500,000
B. 1 million
C. 2 million
D. 3 million
175.Which of the following is NOT an example of an emerging marketing challenge for Betty Crocker
Dessert Bowls?
A. the comparison problem

B. the communication problem
C. friendly passengers
D. the gluten-free problem
176.If WestJet used the line "Our Employees are also Shareholders" they would be emphasizing the
________________ of the four basic business practices.
A. strategy
B. execution
C. culture
D. structure
177.WestJet flies to over 80 North American destinations. The introduction of the WestJet Vacations
with service to U.S., Mexico, and the Caribbean is a ____________ strategy.
B. market enhancement
C. diversification
178.What was the decline in purchases of baking mix in US households between 2000 and 2004?
A. 3 percent
B. 5 percent
C. 8 percent
D. 10 percent
179.Each of the following is a hallmark of cake mixes being a mature category EXCEPT:
A. little differentiation
B. gradually falling sales
C. low uniform prices
D. increased advertising
180.When Potash Corp. of Saskatchewan demands it suppliers adhere to strict human rights
standards, it is practicing ___________________________.
A. ethical and profitable business practices

B. green marketing
C. sustainable development
D. ISO 9000 standards
181.Vancity is Canada's largest credit union. It has a clear statement of _________________ which
includes the concepts of integrity, innovation, and responsibility.
A. strategies
B. objectives
C. values
D. goals
182.Which of the following roles would not be classified as part of the functional groups at Pillsbury?
A. Senior Marketing Manager

B. Product Manager
C. Director of Sales
D. Desserts
Figure 19-6
183.In Figure 19-6, the box labeled "A" illustrates which of the following market-product strategies?
A. Market-product concentration
B. Market specialization
C. Product specialization
D. Selective specialization
184.In Figure 19-6, the box labeled "B" illustrates which of the following market-product strategies?
A. Full coverage
185.In Figure 19-6, the box labeled "E" illustrates which of the following market-product strategies?
A. Full coverage
186.In Figure 19-6, the box labeled "D" illustrates which of the following market-product strategies?
A. Full coverage
187.In Figure 19-6, the box labeled "C" illustrates which of the following market-product strategies?
A. Full coverage
188.List the three phases of the strategic marketing process and the output report for each.
189.List the three steps of the planning phase of the strategic marketing process. Briefly describe
what goes on during each of the three steps.
190.If a firm wants to increase profits, it can attempt to (a) increase revenues, (b) decrease expenses
or (c) do both. What profit enhancement option strategies could be used by a local bank to
increase revenues?
191.What profit enhancement option strategies might an automobile manufacturer use to decrease
expenses?
192.List five guidelines for developing effective plans and planning.
193.A difficulty when a marketing plan fails is determining whether it is primarily due to a poor plan or
poor implementation. Describe the grid which results from considering (1) good and bad
marketing planning and (2) good and bad marketing implementation. What are the outcomes of
each combination?
194.A common theme among managers who succeed repeatedly in program implementation is
communication. Why is this so important?
195.Management experts call for a "bias for action." How can this attitude be important in marketing
program implementation?
196.What is the difference between line and staff positions in a marketing organization?
197.What are the advantages and disadvantages of the product manager system?
198.How is management by exception used in the control phase of the strategic marketing process?
199.Discuss different measures by which marketing activity performance can be measured.
200.What is marketing ROI? Why is it used?
201.Define synergy and describe how Loblaw's purchasing Shoppers Drug Mart will create synergies
for Loblaw.
202.Describe Canada Goose's differentiation strategy.
203.With advancing mobile and social technologies, describe the job description for a Chief Marketing
Officer in 2020.
204.With advancing mobile and social technologies, describe how marketing ROI, marketing metrics,
and marketing dashboards will look like in 2020.
Process Key
1. WestJet was founded by four Calgary entrepreneurs in which year?
A. 1967
B. 1975
C. 1988
D. 1996
(Chapter Opening Example) WestJet was founded by four Calgary entrepreneurs, led by Clive
Beddoe, in 1996.
Accessibility: Keyboard Navigation

Blooms: Remember
Crane - Chapter 19 #1
Difficulty: Easy
Learning Objective: 19-01 Explain how marketing managers allocate their limited resources.
2. The WestJet founders studied what to determine that their airline could be successful in
Western Canada?
A. their old Marketing textbooks

B. how many travelers there are in Canada
C. how many travelers there are in North America
D. the success of Southwest Airlines
(Chapter Opening Example) The WestJet founders studied the success of Southwest Airlines
and determined that a similar concept could be successful in Western Canada.

Blooms: Remember
Difficulty: Easy
3. Each of the following is a basic business practice that is fundamental to business success
EXCEPT:
A. flexibility.
B. strategy.
C. execution.
D. culture.
(Chapter Opening Example) So, what are the ingredients to WestJet's success? Well, as you
will discover in this chapter, four basic business practices are fundamental to business
success: strategy, execution, culture, and structure.

Blooms: Remember
Difficulty: Easy
4. Having an exclusive contract with a supplier or customer, or having patented useful

technology are considered a(n):
A. distinctive parity
B. sustainable dominance
C. synergistic edge
D. competitive advantage
Competitive advantage is a unique strength relative to competitors, often based on quality,

time, cost, innovation, customer intimacy, or customer experience management.

Blooms: Apply
Difficulty: Medium
Learning Objective: 19-02 Describe three marketing planning frameworks: Porters generic strategies; profit enhancement options; and market-product
synergies.
5. Biopure Corporation has developed an artificial hemoglobin that can be used in place of blood
transfusions and holds the patent on this product. Therefore, Biopure has a(n):
A. distinctive parity.
B. sustainable dominance.
C. synergistic edge.
D. competitive advantage.
A competitive advantage is a unique strength relative to competitors, often based on quality,

time, cost, or innovation—such as Biopure's new, patented artificial hemoglobin.

Blooms: Apply
Difficulty: Medium
synergies.
6. Last year, General Mills spent $3 million on advertising and observed a 5 percent increase in
market share. This year, they spent $4 million and observed a 7 percent increase. These
measures are considered the:
A. sales ratio function

B. marginal analysis
C. sales response function
D. market-product ratio
A sales response function relates the expense of the marketing effort to the marketing results
obtained.

Blooms: Apply
Difficulty: Medium
7. Sales response functions relate the:
A. expense of marketing effort to primary competitors' spending.

B. expense of marketing effort to marketing results obtained.
C. market share of firm to market share of primary or nearest competitor.
D. incremental costs to market share.
A sales response function relates the expense of marketing effort to the marketing results
obtained, such as sales revenue, profit, units sold, or level of awareness.

Blooms: Remember
Difficulty: Easy
8. Economists would most likely recommend that marketing managers allocate the firm's
marketing resources to the markets and products in which:
A. the firm has had the most experience with a product.

B. an SBU is considered a cash cow.
C. there is the greatest current market share and the fastest growing industry rate.
D. the excess of incremental revenues over incremental costs is greatest.
When the excess of incremental revenues over incremental costs is greatest for one product
or market compared to others, it will provide the greatest addition to profit.

Blooms: Understand
Difficulty: Medium
9. The relationship of annual marketing effort to annual sales revenue is assumed to be an S-
shaped curve because the sales response function shows:
A. that when demand diminishes, production costs rise.

B. an additional $1 million of marketing effort results in a far greater increases of sales
revenue in the midrange of the curve than at either end.
C. the point at which total revenue and total cost are equal.
The sales response function is the relationship between the dollars of marketing effort and the
market results of interest, such as sales revenue, profit, or units sold. At first, additional dollars
of marketing effort give increasingly greater returns, then there comes a point where additional
dollars of effort result in smaller marginal returns. In the midrange, the results from each
additional $1 million of marketing effort are greatest.

Blooms: Understand
Difficulty: Medium
10. The S-shaped curve of a sales response function is due to:
A. rising production costs and diminishing demand.

B. reduced cost and increasing marginal returns.
C. initially increasing and then diminishing marginal returns of additional marketing
expenditures.
Sales response function is the relationship between the dollars of marketing effort and the
market results of interest, such as sales revenue, profit, or units sold. At first, additional dollars
of marketing effort give increasingly greater returns, then there comes a point where additional
dollars of effort result in smaller marginal returns.

Blooms: Understand
Difficulty: Medium
11. You have been told that a company increased its marketing effort from $2 million to $5 million,
and that the same company increased its sales revenue from $12 million to $21 million.
Calculate the company's ratio of incremental sales revenue to incremental marketing effort.
A. 3:1
B. 1:3
C. 9:1
D. 7:19
(21-12):(5-2) = 9:3 or 3:1

Blooms: Apply
Difficulty: Medium
12. In the Canadian telecom market, Bell Canada, Telus, and Rogers Communications have
almost 97 percent of the _____________ in the market.
A. market points
B. ownership points
C. share points
D. customer points
Share points are the percentage points of market share; often used as the common basis of
comparison to allocate marketing resources effectively.

Blooms: Apply
Difficulty: Medium
13. New Balance has no celebrity endorsers and does minimal advertising, yet the athletic shoe
brand has 11 percent of the market. This 11 percent can be referred to as New Balance's:
A. product line breadth.

B. product line depth.
C. share points.
D. sales response function.
Share points are the percentage points of market share; often used as the common basis of
comparison to allocate marketing resources effectively; this is a numerical example of the
definition.

Blooms: Apply
Difficulty: Medium
14. When using share points to make marketing resource allocation decisions, marketing
managers must estimate all of the following EXCEPT:
A. corporate return on investment.

B. market share for the product.
C. revenues associated with each point of market share.
D. the contribution to overhead and profit (or gross margin) of each share point.
Corporate return on investment is not necessary to use to allocate marketing resources. It is a

longer range consequence of a marketing manager's resource allocation decision—but not
something involved in these decisions.

Blooms: Understand
Difficulty: Medium
15. The marketing manager for Ocean Spray cranberry products is the team leader for each
phase of the company's strategic marketing process. During the previous year, sales of
cranberries in Canada did not meet expectations. Which of the following actions during the
planning phase of the strategic marketing process would generate the required information for
his team to develop the plans that define the goals and marketing mix strategies to be
achieved for next year?
A. Generate a memo that clarifies each team member's responsibilities in the strategic
marketing process.
B. Conduct a situation (SWOT) analysis that identifies industry trends, analyzes competitors,
assesses his own company, and researches customers.
C. Develop a new organizational chart that reflects the reorganization of the team if corrective
actions are not successful in the upcoming year.
D. Write action memos to try to correct problems and exploit opportunities.
SWOT analysis is undertaken during the planning phase when the marketing program is being
developed. Generating a memo and developing a new organizational chart are actions that
are taken prior to and during the implementation phase. Writing action memos and defining
the tracking reports are conducted during the control phase.

Blooms: Apply
Difficulty: Medium
16. At which stage in the strategic marketing process would a marketing manager set a 10 percent
market share growth goal compared to last year?
A. Research
B. Planning
C. Goal Setting
D. Implementation
Goal setting is part of the planning phase.

Blooms: Apply
Difficulty: Medium
17. Which aspect is the foundation of Canada Goose's differentiation strategy?
A. high-quality products
B. made in Canada
C. off-shore production
D. premium pricing
See Marketing Matters Box -Canada Goose's Differentiation Strategy is Working

Blooms: Apply
Difficulty: Medium
synergies.
Figure 19-1
Crane - Chapter 19
18. According to Figure 19-1, an additional annual marketing effort of $1 million is best spent after
having already spent how much in marketing effort to date?
A. $1 million
B. $2 million
C. $3 million
D. $5 million
Figure 19-1 shows that an additional $1 million of marketing effort, from $3 million to $4
million, results in far greater increases of sales revenue in the midrange ($20 million) of the
curve than at either end (an increase from $2 million to $3 million in spending yields an
increase of $10 million in sales; an increase from $6 million to $7 million in spending leads to
an increase of $3 million in sales).
Blooms: Apply
Difficulty: Medium
19. According to Figure 19-1, the result of spending an additional $1 million, from $3 million to $4
million, resulted in increased revenues of __________.
A. $20 million
B. $40 million
C. $50 million
D. $70 million
Figure 19-1 shows that an additional $1 million of marketing effort, from $3 million to $4
million, results in an increase in sales revenue of approximately $20 million.
Blooms: Apply
Difficulty: Medium
20. Canada Goose's social media success has been all organic. One of the fundamental social
media marketing strategies of Canada Goose is:
A. content creation through story telling

B. ad-based growth
C. allowing customers to complain online
D. offering discounts through social media purchases
See Marketing Matters (Canada Goose's Differentiation Strategy Is Working). "We tell our
stories a lot more than we push our products."

Blooms: Remember
Difficulty: Easy
synergies.
21. All of the following are aspects of beneficial synergies that are expected to be generated
through the purchase of Shoppers Drug Mart by Loblaw, except:
A. additional scale
B. more staff than needed
C. market coverage
D. operating cost savings
See Marketing Matters (A Key Strategy Issue: Finding Synergies).

Blooms: Understand
Difficulty: Medium
synergies.

D. Projection of future sales, expenses, and profits
The SWOT analysis may require the following information: (1) trends in past and current
revenues for industry and competitors in total and by segment, (2) future projections of
revenues, expenses, and profits for own product in total and by segment.

Blooms: Understand
Difficulty: Medium

D. Trends in past and current revenues for industry and competitors
The SWOT analysis may require the following information: (1) trends in past and current
revenues for industry and competitors in total and by segment, (2) future projections of
revenues, expenses, and profits for own product in total and by segment.

Blooms: Understand
Difficulty: Medium
24. Which of the following pieces of information is used in the second step of the planning phase
of the strategic marketing process?

B. Market potential studies
Step 2 of planning phase may require (1) market potential studies, (2) market-product grids
with ranked targets, (3) positioning studies.

Blooms: Understand
Difficulty: Medium
25. Which of the following pieces of information is used in the second step of the planning phase
of the strategic marketing process?

B. Market-product grids with ranked targets
Step 2 of planning phase may require (1) market potential studies, (2) market-product grids
with ranked targets, (3) positioning studies.

Blooms: Understand
Difficulty: Medium
26. All of the following are correct statements about the evolving role of the Chief Marketing
Officer (CMO), except?
A. increased focus on "voice of the customer"

B. increased turnover of CMOs
C. reduced turnover of CMOs
D. how the Internet is impacting purchasing behaviors
All of the following are correct except for C. See section on: "The Evolving Role of the Chief
Marketing Officer"

Blooms: Understand
Difficulty: Medium
Learning Objective: 19-04 Describe the alternatives for organizing a marketing department and the role of a product manager.
27. Which of the following pieces of information is used in the third step of the planning phase of

B. Characteristics and timing of marketing mix actions
Step 3 may require (1) characteristics and timing of marketing mix actions, and (2) detailed
plans to execute the marketing program.

Blooms: Understand
Difficulty: Medium
28. All of the following are goals of the marketing ROI concept except:
A. understand marketing spending

B. quantify marketing spending
C. optimize marketing spending
D. reduce marketing spending
The concept has been extended to measure the effectiveness of marketing expenditures with
marketing ROI, the application of modern measurement technologies to understand, quantify,
and optimize marketing spending.

Blooms: Remember
Difficulty: Easy
Learning Objective: 19-05 Explain how marketing ROI; metrics; and dashboards relate to evaluating programs.
29. At which stage in the strategic marketing process would improving marketing ROI be
assessed?
A. Planning
B. Assessment
C. Evaluation
D. Measurement
The evaluation phase of the strategic marketing process tries to improve marketing ROI
through the effective use of marketing metrics and dashboards.

Blooms: Remember
Difficulty: Easy
30. Which of the following pieces of information is used in the implementation phase of the

B. Gantt charts
The implementation phase may require (1) memos assigning responsibilities for actions and
deadlines, Gantt charts, (2) organizational charts and job descriptions, (3) marketing research
reports on sales, awareness, and effectiveness.

Blooms: Remember
Difficulty: Easy

B. Organizational charts and job descriptions

Blooms: Remember
Difficulty: Easy

B. Marketing research reports

Blooms: Remember
Difficulty: Easy
marketing process?

B. Tracking reports measuring results of marketing actions
The evaluation phase may require (1) tracking reports measuring results of the marketing
actions, (2) action memos to correct problems and exploit opportunities.

Blooms: Remember
Difficulty: Easy
marketing process?
A. Marketing metrics and marketing dashboards

B. Memos assigning responsibilities for actions and deadlines
The evaluation phase may require (1) tracking reports measuring results of the marketing
actions, (2) action memos to correct problems and exploit opportunities.

Blooms: Remember
Difficulty: Easy
35. Which of the following output reports is used in the planning phase of the strategic marketing
process?

The planning phase produces an output report of marketing plans that define goals and the

Blooms: Remember
Difficulty: Easy
36. Which of the following output reports is used in the implementation phase of the strategic
marketing process?

B. Projections of sales and expenses
The implementation phase provides output reports including action memos that tell who is to
do what by when.

Blooms: Remember
Difficulty: Easy
37. Which of the following output reports is used in the evaluation phase of the strategic marketing
process?

The evaluation phase provides corrective action memos, triggered by comparing results with
plans, often from the firm's marketing dashboards and metrics.

Blooms: Remember
Difficulty: Easy
38. As described in the textbook example, all of the following are examples of metrics used by
General Mills' Channel Marketing Dashboard, except:
A. Monthly Unit Sales by Channel

B. Percentage of Total Sales Revenues by Channel
C. Average Number of Flavours Carried by Channel
D. Average Number of Sales per Channel
See Figure 19-12.

Blooms: Remember
Difficulty: Medium
39. The actions taken in situation (SWOT) analysis, or Step 1 of the planning phase, include: 1)
identify industry trends, 2) __________, 3) assess own company, and 4) research customers.
A. set market and product goals

D. analyze competitors
The actions taken in situation (SWOT) analysis, or Step 1 of the planning phase include: 1)
identify industry trends, 2) analyze competitors, 3) assess own company, and 4) research
customers. The alternate choices are all steps that would be taken in Step 2.

Blooms: Remember
Difficulty: Easy
40. All of the following would be suitable reasons to engage in a merger to create synergies for the
larger company, except:
A. observe IT savings
B. employ double the employees than needed
C. expand market reach
D. secure patented technologies
See Marketing Matters (A Key Strategy Issue: Finding Synergies).

Blooms: Understand
Difficulty: Medium
synergies.
41. The information needed in situation (SWOT) analysis, Step 1 of the planning phase, includes:
1) trends for industry and competitors and 2) __________
A. projections of future sales, expenses, and profits.

B. market potential studies.
C. positioning studies.
D. market-product grids with targets.
The information needed in situation (SWOT) analysis, Step one of the planning phase,
includes: 1) trends for industry and competitors and 2) projections of future sales, expenses
and profits.

Blooms: Remember
Difficulty: Easy
include: 1) __________, 2) select target markets, 3) find points of difference, and 4) position
the product.

B. set market and product goals
The actions taken during market product focus and goal setting, Step 2 of the planning phase,
include: 1) set market and product goals, 2) select target markets, 3) find points of difference,
and 4) position the product.

Blooms: Remember
Difficulty: Easy
include: 1) set market and product goals, 2) __________, 3) find points of difference, and 4)


Blooms: Remember
Difficulty: Easy
include: 1) set market and product goals, 2) select target markets, 3) __________, and 4)

B. find points of difference

Blooms: Remember
Difficulty: Easy
45. The actions taken during market product focus and goal setting, step two of the planning
phase, include: 1) set market and product goals, 2) select target markets, 3) find points of
difference, and 4) __________.


Blooms: Remember
Difficulty: Easy
46. The information needed in market product focus and goal setting, Step 2 of the planning
phase, includes: 1) __________, 2) market-product grids with targets, and 3) positioning
studies.
A. market potential studies

B. trends for industry and competitors
C. marketing mix actions
The information needed in market product focus and goal setting, Step 2 of the planning
phase, includes: 1) market potential studies, 2) market - product grids with targets, and 3)
positioning studies.

Blooms: Remember
Difficulty: Easy
47. The information needed in market product focus and goal setting, Step 2 of the planning
phase, includes: 1) market potential studies, 2) market-product grids with targets, and 3)
__________.
A. trends for industry and competitors

D. positioning studies
The information needed in market product focus and goal setting, Step 2 of the planning
phase, includes: 1) market potential studies, 2) market - product grids with targets, and 3)
positioning studies.

Blooms: Remember
Difficulty: Easy
48. The actions taken in the marketing program, Step 3 of the planning phase, include: 1) develop
the program's marketing mix and 2) __________.

B. identify industry trends
D. develop the budget by estimating revenues, expenses, and profits
The actions taken in the marketing program, Step 3 of the planning phase, include: 1) develop
the program's marketing mix and 2) develop the budget by estimating revenues, expenses,
and profits.

Blooms: Remember
Difficulty: Easy
__________ and 2) detailed plans to execute the marketing program.
C. market-product grids with targets
The information needed for the marketing program, Step 3 of the planning phase, includes: 1)
marketing mix (4Ps) actions and 2) detailed plans to execute the marketing program.

Blooms: Remember
Difficulty: Easy
marketing mix actions and 2) __________.
The information needed for the marketing program, Step three of the planning phase includes:
1) marketing mix (4 Ps) actions and 2) detailed plans to execute the marketing program.

Blooms: Remember
Difficulty: Easy
51. The actions taken during the implementation phase of the strategic marketing process include:
1) __________, 2) design marketing organization, 3) develop schedules, 4) and execute the
marketing program.
A. obtain resources
The actions taken during the implementation phase of the strategic marketing process include:
1) obtain resources, 2) design marketing organization, 3) develop schedules, 4) and execute
the marketing program.

Blooms: Remember
Difficulty: Easy
1) obtain resources, 2) __________, 3) develop schedules, 4) and execute the marketing
program.

B. design marketing organization

Blooms: Remember
Difficulty: Easy
1) obtain resources, 2) design marketing organization, 3) __________, 4) and execute the
marketing program.
A. develop schedules
C. select target markets

Blooms: Remember
Difficulty: Easy
1) obtain resources, 2) design marketing organization, 3) develop schedules, 4) __________.
A. position the product

D. execute the marketing program

Blooms: Remember
Difficulty: Easy
55. All of the following are pieces of information used during the implementation phase of the
A. organizational charts
B. action memos with deadlines
C. marketing research
D. market potential studies
The information used during the implementation phase of the strategic marketing process
includes: 1) action memos with deadlines, 2) organizational charts, and 3) marketing research.

Blooms: Remember
Difficulty: Easy
56. A breakdown of the hierarchy of roles, who reports to who, who manages who, and the overall
chain of command is referred to as a(n):
A. positioning chart
B. organizational charts
C. people chart
D. arrangement chart

Blooms: Understand
Difficulty: Medium
57. Setting up an organizational chart would most likely to occur during which phase of the
A. planning
B. resourcing
C. implementation
D. assessment

Blooms: Remember
Difficulty: Easy
__________ and 2) correct negative deviations; exploit positive ones.

C. compare results with plans to identify deviations
The actions taken during the evaluation phase of the strategic marketing process include: 1)
compare results with plans to identify deviations and 2) correct negative deviations; exploit
positive ones.

Blooms: Remember
Difficulty: Easy
compare results with plans to identify deviations and 2) __________.

C. correct negative deviations; exploit positive ones
The actions taken during the evaluation phase of the strategic marketing process include: 1)
compare results with plans to identify deviations and 2) correct negative deviations; exploit
positive ones.

Blooms: Understand
Difficulty: Medium
60. The information used during the evaluation phase of the strategic marketing process includes:
1) __________ and 2) action memos to correct problems, exploit opportunities.
C. tracking reports to measure results
The information used during the evaluation phase of the strategic marketing process includes:
1) tracking reports to measure results and 2) action memos to correct problems, exploit
opportunities.

Blooms: Understand
Difficulty: Medium
TB Figure 1
Crane - Chapter 19
61. Each phase of the strategic marketing process creates its own unique type of output report.
Which of the following would be associated with the planning phase?
A. Marketing plans (or programs) that define goals (with pertinent marketing metrics) and the
B. Performance reviews for key personnel.
C. Action memos that tell (1) who is (2) to do what (3) by when.
D. Corrective action memos, triggered by comparing results with plans often using the firm's
Output reports for the planning phase include marketing plans (or programs) that define goals
(with pertinent marketing metrics) and the marketing mix strategies to achieve them.
Blooms: Understand
Difficulty: Medium
62. Referring to TB Figure 1, each phase of the strategic marketing process creates its own
unique type of output report. Which of the following would be associated with the
implementation phase?

C. Sales reports using the firm's marketing metrics and dashboards.
Output reports for the implementation phase include action memos that tell (1) who is (2) to do
what (3) by when.
Blooms: Understand
Difficulty: Medium
63. Referring to TB Figure 1, each phase of the strategic marketing process creates its own
unique type of output report. Which of the following would be associated with the evaluation
phase?

C. Sales reports using the firm's product metrics and dashboards.
Output reports for the evaluation phase include corrective action memos, triggered by
comparing results with plans often using the firm's marketing metrics and dashboards.
Blooms: Understand
Difficulty: Medium
64. Typically, the _____ marketing plan covers marketing activities over a period of two to five
years in the future. The _____ marketing plan, which is highly structured and detailed, is
usually developed by a product manager and begins with marketing research and ends after
48 weeks with the approval of the general manager.
A. annual; new product,

B. new product; long-range
C. long-range; new product
D. long-range; annual
Usually developed by a marketing or product manager in a consumer products firm annual

marketing plans deal with marketing goals and strategies for a product, product line, or entire
firm for a single year. Typically, long-range marketing plans cover marketing activities from two
to five years into the future.

Blooms: Remember
Difficulty: Easy
synergies.
65. Long-range marketing plans:
A. sequence the details of day-to-day activities dealing with the implementation of a product
strategy in the strategic marketing process.
B. deal with marketing goals and strategies for a product, product line, or entire firm for a
single year.
C. predict anticipated revenue for each year during a two to five year period.
D. cover marketing activities from two to five years into the future.
Typically, long-range marketing plans cover marketing activities from two to five years into the
future.

Blooms: Remember
Difficulty: Easy
synergies.
66. The new Chief Marketing Officer at Pepsi outlines her marketing strategy and plan for the next
four years. This plan is called a:
A. generic marketing strategy

B. long-range strategic plan
C. marketing strategy
D. long-range marketing plan
future.

Blooms: Apply
Difficulty: Medium
synergies.
67. With the exception of such industries as autos, steel, or forest products, most long-range plans
cover a period of:
A. 6 to 8 months.
B. 1 year.
C. 2 to 5 years.
D. 5 to 10 years.
future.

Blooms: Remember
Difficulty: Easy
synergies.
68. A new manager at Whirlpool creates a plan for each major product line (large appliance and
small appliance) to execute in the following year. This plan is likely a(n):
A. short term plan

B. annual marketing plan
C. product line plan
D. recurring marketing plan

firm for a single year.

Blooms: Apply
Difficulty: Medium
synergies.
69. Farah, who works for Coca-Cola, set next year's sales goal for Diet Coke to increase 3 percent
from last year. She then built a plan around this. Farah as created an annual:
A. production estimate
B. sales forecast
C. marketing plan
D. budget projection

firm for a single year.

Blooms: Apply
Difficulty: Medium
synergies.
70. A simple strategy: "to be the low-cost provider in our niche market" is an example of a:
A. generic business strategy

B. niche-market strategy
C. low-cost strategy
D. focused business strategy
A generic business strategy is one that can be adopted by any firm, regardless of the product
or industry involved, to achieve a competitive advantage.

Blooms: Apply
Difficulty: Medium
synergies.
71. All of the following would be considered examples of Porter's generic business strategies,
except:
A. cost leadership
B. cost focus
C. differentiation
D. specificity
or industry involved, to achieve a competitive advantage. See Figure 19-4.

Blooms: Remember
Difficulty: Easy
synergies.
advantage (lower cost to differentiation), Porter's four generic business strategies are
differentiation, cost focus, differentiation focus, and:
A. exclusivity.
B. electronic-focus.
C. quality focus.
D. cost leadership.
A cost leadership strategy focuses on reducing expenses and lowering product prices while
targeting a broad array of market segments.

Blooms: Remember
Difficulty: Easy
synergies.
advantage (lower cost to differentiation), Porter's four generic business strategies are cost
leadership, cost focus, differentiation focus, and:
A. service leadership.
B. diversification.
C. reactive.
D. differentiation.
A differentiation strategy requires products to have significant points of difference in product

offerings, brand image, higher quality, advanced technology, or superior service to charge a
higher price while targeting a broad array of market segments.

Blooms: Remember
Difficulty: Easy
synergies.
74. IKEA is likely to have which generic business strategy?
A. diversification
B. service leadership
C. quality leadership
D. cost focus
A cost focus strategy involves controlling expenses and, in turn, lowering product prices,
targeting a narrow range of market segments.

Blooms: Remember
Difficulty: Medium
synergies.
75. Volkswagen is likely to have which generic business strategy?
A. price leadership
B. diversification
C. quality focus
D. differentiation focus
A differentiation focus strategy requires products to have significant points of difference to

target one or only a few market segments.

Blooms: Remember
Difficulty: Medium
synergies.
76. Which type of firm can use a generic business strategy?
A. low-cost producers
B. reseller
C. discount firm
D. any firm regardless of the product or industry
or industry involved, to achieve a competitive advantage.

Blooms: Remember
Difficulty: Easy
synergies.
77. Walmart uses which type of generic business strategy?
B. cost focus
C. differentiation
D. cost leadership
A cost leadership strategy focuses on reducing expenses and lowering product prices while
targeting a broad array of market segments.

Blooms: Remember
Difficulty: Medium
synergies.
78. All of the following statements about cost leadership strategy are true, except:
A. Cost focus strategy requires reducing expenses to lower the price of the items sold in a
relatively broad array of market segments.
B. Significant investments in capital equipment may be necessary to improve the production or
distribution process to give low unit costs.
C. The cost leader still must have adequate quality levels.
D. Walmart's sophisticated systems of regional warehouses and electronic data interchange
with suppliers have led to huge cost savings.
All of the previous are correct, except for A. The answer should state "Cost leadership," not
"Cost focus."

Blooms: Understand
Difficulty: Medium
synergies.
Figure 19-4
Crane - Chapter 19
79. In Porter's generic business strategy shown in Figure 19-4, quadrant "C" refers to a
__________ strategy.
A. quality focus
B. cost leadership
C. differentiation
D. cost focus
A cost focus strategy involves controlling expenses and, in turn, lowering product prices
targeted at a narrow range of market segments; on the grid it would appear in the lower left
quadrant.
Blooms: Remember
Difficulty: Easy
synergies.
80. In Porter's generic business strategy shown in Figure 19-4, quadrant "D" is called
__________.
A. quality focus
B. cost leadership
D. cost focus

target one or only a few market segments; on the grid it would appear in the lower right
quadrant D.
Blooms: Remember
Difficulty: Easy
synergies.
81. In Porter's generic business strategy shown in Figure 19-4, Campbell Soup is likely to be
found in which square?
A. A
B. B
C. C
D. D
A cost leadership strategy focuses on reducing expenses and, in turn, lowers product prices
while targeting a broad array of market segments; on the grid it would appear in the upper left
quadrant A.
Blooms: Remember
Difficulty: Easy
synergies.
82. A firm following a cost leadership strategy would be found in __________ in Figure 19-4.
A. quadrant A
B. quadrant B
C. quadrant C
D. quadrant D
A cost leadership strategy focuses on reducing expenses and, in turn, lowers product prices
while targeting a broad array of market segments; on the grid it would appear in the upper left
quadrant A.
Blooms: Remember
Difficulty: Easy
synergies.
83. Office Depot would be found in which quadrant in Figure 19-4?
A. quadrant A
B. quadrant B
C. quadrant C
D. quadrant D
A cost focus strategy involves controlling expenses and, in turn, lowering product prices
targeted at a narrow range of market segments; on the grid it would appear in the lower left
quadrant C.
Blooms: Remember
Difficulty: Easy
synergies.
84. A firm following a differentiation strategy would be found in __________ in Figure 19-4.
A. quadrant A
B. quadrant B
C. quadrant C
D. quadrant D
A differentiation strategy requires product to have significant points of difference to charge a

higher price while targeting a broad array of market segments. On the grid it would appear in
the upper right quadrant.
Blooms: Remember
Difficulty: Easy
synergies.
85. A firm following a differentiation focus strategy would be found in which quadrant in Figure 19-
4?
A. quadrant A
B. quadrant B
C. quadrant C
D. quadrant D

target one or only a few market segments controlling expenses and targeted at a narrow range
of market segments; on the grid it would appear in the lower right quadrant D.
Blooms: Remember
Difficulty: Easy
synergies.
86. In Porter's generic business strategy shown in Figure 19-4, quadrant "B" refers to a
__________ strategy.
A. quality focus
B. cost leadership
C. differentiation
D. cost focus
A differentiation strategy requires product to have significant points of difference to charge a

higher price while targeting a broad array of market segments. On the grid it would appear in
the upper right quadrant.
Blooms: Remember
Difficulty: Easy
synergies.
87. In the early 1900s, Henry Ford revolutionized the automobile industry by developing
production lines and mass producing the Ford Model T automobile. By reducing production
costs, Henry Ford, Ford made the Model T quite affordable for the average American family.
What business strategy did Henry Ford use to gain a competitive advantage in the automobile
market?
A. Ford used a differentiation strategy.

B. Ford used a cost focus strategy.
C. Ford used a differentiation focus strategy.
D. Ford used a cost leadership strategy.
A cost leadership strategy requires marketers to devote serious attention to the reduction of
production and marketing costs that subsequently result in lower product prices at the
consumer level. Cost leadership strategies are typically most effective when the products
involved have wide appeal.

Blooms: Apply
Difficulty: Easy
synergies.
88. In the 1920s, the Ford Motor Company dominated the automotive industry. Henry Ford's low
priced, mass produced Model T, available in only one colour and with few options, was selling
like hot cakes to car buyers. In order to combat Ford's success, General Motors offered
automobiles in a variety of colours and with special features that were designed to fit the
specific needs and wants of individual car buyers in many different segments of the market. By
employing a _____ business strategy, General Motors developed a position that was very
distinct from that of the Ford Motor Company.

A differentiation strategy is characterized by innovation, significant points of difference in

product offerings, and appeal to a variety of segments—General Motors' strategy in the 1920s.

Blooms: Apply
Difficulty: Difficult
synergies.
89. Many people are concerned about eating healthy, yet many of these same people still grab
lunch at fast-food restaurants because the restaurants are convenient, and they like beef.
Burger King has created a veggie burger that "tastes like the real thing without all the fat."
Burger King is using a _____ strategy to attract this large market that encompasses many
different segments.

A differentiation strategy is characterized by innovation, significant points of difference in

product offerings, and appeal to a variety of segments.

Blooms: Apply
synergies.
90. According to Porter's four generic business strategies model, Apple would be considered
using which strategy?
B. cost focus
C. differentiation
D. cost leadership
A differentiation strategy requires products to have significant points of difference in product

offerings, brand image, higher quality, advanced technology, or superior service to charge a
higher price while targeting a broad array of market segments.

Blooms: Apply
Difficulty: Medium
synergies.
91. Reality television shows are televised nearly every night of the week. Most show how
individuals live and compete in unfamiliar groups and surroundings. One has pairs of
contestants competing against each other. UPN network developed a novel approach to
reality programming by creating a show that pitted stereotypical North American families
(father, mother, and two children) against other families. By focusing on family dynamics
instead of individuals, UPN hoped to have an across-the-board appeal to all segments. UPN
was using a(n) _____ strategy to attract viewers.
B. cost focus
C. differentiation
D. cost leadership
According to Porter's four generic business strategies model, a differentiation strategy requires
innovation and significant points of difference in product offerings, higher quality, advanced
technology, or superior service in a relatively broad array of market segments. This is the
strategy UPN is pursuing. In contrast, a differentiation focus strategy utilizes significant points
of difference to one or only a few market segments.

Blooms: Apply
synergies.
92. EasyJet and Ryanair, two European airlines have been successful in offering low fares
between certain cities in Europe. These two airlines likely use which strategy?
B. cost focus
C. differentiation
A cost focus strategy involves controlling expenses and, in turn, lowering product prices,
targeting a narrow range of market segments.

Blooms: Apply
Difficulty: Medium
synergies.
93. Aldi is a no-frills grocery chain. It sells grocery staples right out of the crates and boxes with
emphasis on low-priced, private-label brands. Aldi stores are typically about one-third the size
of the traditional supermarket. By controlling expenses, Aldi customers can expect to save 30
to 50 percent on their grocery bills compared to Kroger customers. The chain targets bargain
hunters who are willing to rent a cart and bag their own groceries. In terms of Porter's generic
business strategy, Aldi uses a _____ strategy.
B. cost focus
C. differentiation
According to Porter's four generic business strategies model, a cost focus strategy involves
controlling expenses and, in turn, lowering prices in a narrow range of markets—the situation
with Aldi.

Blooms: Apply
Difficulty: Medium
synergies.
94. According to Porter's four generic business strategies model, a maker of super-premium
Ontario Icewine would likely follow which strategy?
B. cost focus
C. differentiation
D. cost leadership

target one or only a few market segments.

Blooms: Apply
Difficulty: Medium
synergies.
95. Hard Candy is a cosmetics company that markets the Palm Palette—all the make-up a "girl-
on-the-go" needs without a cumbersome make-up bag. It comes in three shades: glam, funky,
and girlies. Hard Candy targets women who are twenty-something (and to those who are
pretending they still are). Which one of Porter's generic business strategies does Hard Candy
use?
B. cost focus
C. differentiation
D. cost leadership
According to Porter's four generic business strategies model, a differentiation focus strategy
utilizes significant points of difference to one or only a few market segments—the situation
with Hard Candy.

Blooms: Apply
Difficulty: Medium
synergies.
96. Hyundai Motor America (HMA) became the first automaker to offer consumers an Internet
parts ordering system. The system was targeted only to current Hyundai owners and gave
Hyundai the ability to collect a vast amount of customer data about people who buy its cars.
Which of Porter's generic business strategies did Hyundai use when it launched its website?
A. cost leadership
B. differentiation
D. cost focus
A differentiation focus strategy utilizes significant points of difference to one or only a few
market segments.

Blooms: Apply
Difficulty: Medium
synergies.
97. Many people enjoy cereal at breakfast. In terms of "profit enhancement options" alternatives,
cereal manufacturers who promote cereal as a great late-night snack to this group would be
using a _____ strategy.
B. product development
C. differentiation
D. diversification
Cereal manufacturers would be targeting current markets with current products, a market
penetration strategy.

Blooms: Apply
synergies.
98. When Home Depot opens new stores in Mexico, it is using a ______ strategy, one of the profit
enhancement options.
B. market development
C. differentiation
D. diversification
Home Depot is developing a new market for its current retail stores, a market development
strategy.

Blooms: Apply
Difficulty: Medium
synergies.
99. The Molson-Coors merger created the fifth largest brewing company in the world. It also
created:
A. value-based marketing.
B. a high sales response function.
C. synergies.
D. new retail outlets.
Synergy is the increased customer value achieved through performing organizational functions
more efficiently.

Blooms: Understand
Difficulty: Medium
synergies.
100. When John's Auto Shop merged with Mike's Glass Repair, customers received discounts at
both businesses, while at the corporate level, the new company saw an overall increase in
sales. These benefits are referred to as:
A. Value-based marketing
B. Value-adds
C. Synergies
D. Points of difference
Synergy is the increased customer value achieved through performing organizational functions
more efficiently.

Blooms: Apply
Difficulty: Medium
synergies.
101. The market-product grid:
A. shows the fastest areas of industry growth.

B. enumerates all possible competitive firms.
C. helps identify important marketing and production efficiencies.
D. pinpoints alternatives and uncertainties.
A market-product grid shows marketing synergies horizontally across the rows and R&D-
production synergies vertically down the columns.

Blooms: Understand
Difficulty: Medium
synergies.
102. Which of the following is an advantage inherent in the use of market-product grids?
A. A market-product grid identifies potential supply-chain opportunities.

B. A market-product grid highlights potential synergies.
C. A market-product grid shows potential revenue losses caused by cannibalism.
D. A market-product grid identifies potential advertising appeals.
A market-product grid shows marketing synergies horizontally across the rows and R&D-
production synergies vertically down the columns.

Blooms: Understand
Difficulty: Medium
synergies.
103. Loving Care Pets manufactures dog food specifically created for puppies under three months
of age. In terms of the market-product grid framework, Loving Care Pets is a small firm without
sustainable comparative advantages in marketing or production resources and its strategy
would be described as:
A. market-product concentration.
B. market specialization.
C. product specialization.
D. selective specialization.
Loving Care Pets is marketing a single product to a single market segment, or market-product
concentration.

Blooms: Apply
Difficulty: Medium
synergies.
104. Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils, specifically created
for pets under three months of age. Assuming it is marketing to a single segment of "pet
owners," in terms of the market-product grid framework, Loving Care Pets is using a _____
strategy.
A market specialization strategy is selling multiple products (different pet foods) to the same
segment, the situation here with Loving Care Pets.

Blooms: Apply
Difficulty: Medium
synergies.
105. Loving Care Pets manufactures food for dogs, cats, rabbits, and gerbils, specifically created
for pets under three months of age. In terms of the market-product grid framework, adding a
line of pet food for mature dogs, cats, rabbits, and gerbils will give a _____ strategy that will
provide Loving Care Pets with relatively high economies of scale in marketing.
Multiple products marketed to the same market segment will result in marketing synergies
horizontally across rows in a market-product grid, in this case, market specialization for Loving
Care Pets.

Blooms: Apply
Difficulty: Medium
synergies.
106. Demeter fragrances are unlike perfumes because perfume manufacturers combine several
scents to create a perfume. The founder of the company realized these fragrances smell
wonderful on their own. More than 150 different individual scents such as Woodsmoke, Rust,
Vanilla, Mildew, Lobster, Lilies, and Chocolate are bottled under the Demeter brand. Each
Demeter fragrance appeals to a unique market segment that prefers only that fragrance.
According to the market-product grid framework, Demeter uses a _____ strategy.
Demeter markets multiple products, each targeted to a unique market segment, a case of
selective specialization.

Blooms: Apply
Difficulty: Medium
synergies.
107. A new company announces the following at a press release: "We are in the business of
making luxury 150 foot yachts, and only luxury 150 foot yachts." The competition would
assume this company's strategy is:
Market-product concentration occurs when the firm benefits from "focus" on a single product
line and market segment, but it loses opportunities for significant synergies in both marketing
and R&D-manufacturing.

Blooms: Apply
Difficulty: Medium
synergies.
108. After making luxury 150 foot yachts for five years, this company decides to offer 50 foot and
200 foot versions. The competition would view this strategy as:
A. full coverage
Market specialization occurs when the firm gains marketing synergy through providing a
complete product line, but R&D-manufacturing have the difficulty of developing and producing
two new products.

Blooms: Apply
Difficulty: Medium
synergies.
109. Which marketing strategy would most likely offer the greatest economies of scale in marketing
costs?
Marketing synergies or economies of scale run horizontally across the rows of a market-
product grid; adding new products for a given market segment represents few new marketing
expenses but sizable new R&D and production expenses.

Blooms: Understand
Difficulty: Medium
synergies.
110. Which marketing strategy involves retaining focus on a single product line but marketing it to
new markets?
A. full coverage
Product specialization occurs when the firm gains R&D-manufacturing synergy through
production economies of scale, but gaining market distribution in the three different geographic
areas will be costly.

Blooms: Remember
Difficulty: Medium
synergies.
111. Which marketing strategy would most likely offer the greatest economies of scale in research
and development and production expenses?
Research and development and production synergies and economies of scale run vertically
down a column of a market-product grid.

Blooms: Understand
Difficulty: Medium
synergies.
112. A yacht manufacturer releases a press release that states: "We make luxury 50, 100, 150, and
200 foot yachts, as well as, hobby fishing boats, and jet skis." The competition would view this
as which strategy?
A. full coverage
Selective specialization occurs when the firm does not get either marketing or R&D-
manufacturing synergies because of the uniqueness of the market-product combinations.

Blooms: Apply
Difficulty: Medium
synergies.
113. What is the primary disadvantage of employing a selective specialization strategy?
A. The organization may not have any experience in the selected markets it chooses to target.
B. The organization may get involved with SBUs it cannot run efficiently.
C. The organization cannot achieve either marketing or production economies of scale.
D. The organization may suffer from product cannibalism.
"The organization may not have any experience in the selected markets it chooses to target" is
a disadvantage of product specialization. "The organization may get involved with SBUs it
cannot run efficiently" is a disadvantage of diversification. "The organization may suffer from
product cannibalism" is a disadvantage of market specialization.

Blooms: Understand
Difficulty: Medium
synergies.
114. Which marketing strategy is at risk of having R&D resources too spread out?
A. full coverage
Full coverage occurs when the firm has the maximum potential synergies in both marketing
and R&D-manufacturing. The question is whether it is spread too thin due to the resource
requirements needed to reach all market-product combinations.

Blooms: Understand
Difficulty: Medium
synergies.
115. Which two aspects of the following statement make it an effective goal?
"Increase market share from 18 to 22 percent by December 31, 2015."
A. loose and vague

B. as general as possible
C. flexible or elastic
D. quantified and measurable
Goals should be quantified and measurable. For example, "Increase market share from 18 to
22 percent by December 31, 2015."

Blooms: Understand
Difficulty: Medium
Learning Objective: 19-03 Explain what makes an effective marketing plan and some problems that often exist with it.
116. The more a marketing plan is based on _____, rather than guesses, the less uncertainty and
fewer risks are associated with executing it.
A. industry forecasts and sales predictions

B. intuitions and forecasts
C. past historical data
D. facts and valid assumptions
To develop effective marketing plans, use a base of facts and valid assumptions.

Blooms: Understand
Difficulty: Medium
117. A town hall-style meeting is held at Whirlpool to discuss the launch of their 2015 annual
marketing plan. The purpose of this meeting is to ensure that all levels of the organization
understand the what, when, and how components of their job descriptions as they pertain to
this annual plan. This meeting will lead to _____ of their marketing plan.
A. effective adoption
B. effective acculturation
C. effective execution
D. effective feasibility projections
Everyone involved with carrying out the marketing plans must know what they have to do and
by when they should complete the activity.

Blooms: Apply
Difficulty: Medium
118. At the end of the first six months of the year, a marketing manager realizes that they are
tracking 2-3 percentage points lower than expected. As a result, the marketing manager will
engage in ____________ to update the original plan.
A. replanning
B. contingency planning
C. downsizing
D. dynamic planning
Events change, so replanning—changing the original plans—is necessary.

Blooms: Apply
119. Which of the following is a guideline for developing effective marketing plans?
A. Rely on intuition and experience.

B. Create complex plans that leave nothing to chance.
C. Set qualitative goals only.
D. Incorporate all the key marketing mix factors.
Use facts and valid assumptions rather than intuition. Marketing plans should be simple so
they can be understood by those who have to implement them. Marketing plans should be
flexible. Set measurable goals—it is difficult to measure whether qualitative goals have been
achieved.

Blooms: Understand
Difficulty: Medium
120. All of the following are a potential problems that could occur in the planning phase of a firm's
A. Plans are based on great assumptions.

B. Planners and their plans may have lost sight of their customers' needs.
C. Too much time and effort may have been spent on analysis of data.
D. Responsibility for planning and strategy development may be assigned to planners so that
line operating managers feel no sense of ownership in implementing plans.
All of these answer choices, except for A, can cause planning phase problems.

Blooms: Understand
Difficulty: Medium
121. A marketing manager combines marketing planning ideas and financial planning techniques to
assess how their division is contributing to the price of the company's stock. The marketing
manager is engaging in:
B. Value-based planning
C. Value analysis
D. Market audit
Value-based planning combines marketing planning ideas and financial planning techniques to
assess how much a division or strategic business unit (SBU) contributes to the price of a
company's shares (or shareholder wealth).

Blooms: Apply
Difficulty: Medium
122. Value-based planning combines marketing planning ideas and financial planning techniques to
assess how much a division or a strategic business unit (SBU) contributes to:
A. benchmarking efforts.
B. realizing important societal needs.
C. the elimination of cannibalization.
D. the price of a company's stock (or shareholder wealth).
Value-based planning combines marketing planning ideas and financial planning techniques to
assess how much a division or strategic business unit (SBU) contributes to the price of a
company's shares (or shareholder wealth).

Blooms: Remember
Difficulty: Easy
123. All of the following are typical objectives for value-based planning, except:
A. return of investment (ROI)

B. division market share
C. profit
D. shareholder wealth
Value-based planning focuses on value created when financial return exceeds the cost of the
resources.

Blooms: Understand
124. Recently, Kellogg's introduced Mickey's Magix cereal. It was designed to get children who
currently don't eat cereal to eat cereal for breakfast. When milk is added to the cereal, it turns
a pastel blue. The cereal itself is very similar to General Mills' Lucky Charms but with the
addition of food colouring. Kellogg's new (for it) product targeted at a new segment (children
who don't eat cereal) is an example of:
B. diversification
Kellogg's was trying to get new customers (children who don't eat cereal) with a new product
(for it)—a diversification strategy.

Blooms: Apply
Difficulty: Medium
synergies.
125. Quaker took its Instant Oatmeal and added Dinosaur Eggs, which have colourful creatures
that appear when boiling water is added. Research shows that children who would not eat
plain oatmeal (defined as a new segment) are extremely attracted to the product, which
Quaker views as basically the same as its standard Instant Oatmeal. From Quaker's
viewpoint, this is a _____ strategy.
B. diversification
Quaker was trying to get new customers (children who would not eat plain oatmeal) with
basically a current product—a market development strategy.

Blooms: Apply
Difficulty: Medium
synergies.
126. When concerns for ethics, integrity, employee health and safety, and environmental
safeguards are incorporated with more common corporate values, such as growth, profitability,
and quality, the company is engaging in a:
B. Value-based plan
C. Value analysis
D. Market audit
Value-driven strategies incorporate concerns for ethics, integrity, employee health and safety,
and environmental safeguards with more common corporate values, such as growth,
profitability, customer service, and quality.

Blooms: Remember
Difficulty: Easy
127. Ben & Jerry's Homemade Inc. is a profitable company that has a reputation for quality. The
company is committed to treating its employees fairly and acting ethically in all transactions. It
seeks to purchase all of its supplies from socially responsible suppliers. It is a leader in
protecting the environment and corporate philanthropy. Ben & Jerry's uses _____ to allow it to
operate in this manner.
A. value-driven strategies
B. service-based planning
C. value analyses
D. situational audits
Value-driven strategies—what Ben & Jerry's Homemade is using—incorporate concerns for

ethics, integrity, employee health and safety, and environmental safeguards with more
common corporate values such as growth, profitability, and quality.

Blooms: Apply
128. The BCG or Boston Consulting Group is probably best known for its:
A. growth-share portfolio matrix.

B. focus on Hugo's Ski Shack which rents water skis to vacationers.
C. website which offers planning guidelines and interactive strategy case.
D. stands on ethical issues.
The Boston Consulting Group (BCG) is probably best known for its growth-share portfolio
matrix. See Going Online "Want to Be a BCG Consultant? Solve the Trevor's Toys Online
Case."

Blooms: Understand
Difficulty: Medium
129. In considering both the effectiveness of (1) a marketing plan, and (2) its implementation, the
"disaster" combination is:
A. good planning, good implementation.

B. good planning, bad implementation.
C. bad planning, good implementation.
D. bad planning, bad implementation.
The "disaster" combination involves both bad planning and bad implementation because two
problems have to be fixed—compared to only one problem with "good planning, bad
implementation" and "bad planning, good implementation."

Blooms: Understand
Difficulty: Medium
130. The reformulation of the original Coca-Cola to new Coca-Cola (Coca-Cola Classic) was one of
the biggest decisions in the firm's history. Let's call Coke's decision to respond to Pepsi's
market gains: Coke's "strategy and planning" and its initial withdrawal of original Coca-Cola
and substitution of new Coca-Cola and Coke's "implementation" of this strategy. The spread of
ill will among loyal original Coca-Cola customers after Coke announced the change in its
formula is an example of:
A. appropriate strategy and effective implementation.

B. appropriate strategy and ineffective implementation.
C. inappropriate strategy and effective implementation.
D. inappropriate strategy and ineffective implementation.
The strategy was good. Coke needed to respond to Pepsi's gains. The "surprise" withdrawal
and perceived deception were faulty implementation and alienated loyal Coke customers.

Blooms: Apply
131. As the marketing manager for gizmos at Acme Products Inc., you notice sales have been
below expectations. Based on the results of a customer satisfaction survey recently
conducted, you discover consumers want Acme gizmos to have more features, which will
make them a better value relative to comparable offerings by competitors. However, on the
positive side, customers stated Acme gizmos were (1) widely available in sufficient quantities,
(2) made with high quality materials, (3) sold by knowledgeable salespeople at the appropriate
retail outlets where they would shop for gizmos, and (4) the average response time for the toll-
free telephone hotline for customer questions and complaints was significantly less than
expected. Based on this information, you should conclude Acme used:

Acme used an inappropriate marketing strategy but effective implementation. The product's
features, which are decided upon during the planning phase, were the only aspect of the
marketing program that needs corrective action. All other elements of the marketing mix as
well as the execution of the marketing program seemed to be satisfactory according to the
results of the customer survey.

Blooms: Apply
132. As the marketing manager for Acme Products Inc., you just became the new program leader
for Baubles, a product Acme introduced last year. Initial sales far exceeded expectations. In
response, the previous program leader decided to reduce the profit margins for channel
members to more quickly recover the high costs incurred in the development of the Baubles
product and its marketing program. Unfortunately, sales of Acme Baubles declined by 2
percent while its market share declined by 7 percent as new competitors entered the market.
After conducting a customer survey, you conclude customers were generally satisfied with
Acme's Baubles. However, Baubles were not as readily accessible as they were the previous
year. Furthermore, after conducting a survey among the leading wholesalers and retailers of
Acme Baubles, you discover they were not pleased with the reduced margins. Moreover,
because Acme's principal competitors offered them greater margins, they gave the
competitors' products competing with Baubles better service and shelf space than Acme's.
This is an example of:

All elements of the marketing mix were satisfactory to customers; however, during the
execution of the marketing program, Acme reduced the profit margins to its channel members.
This implementation decision by Acme caused its channel members to support the product
much less vigorously as they had the previous year by providing less service and less
favourable shelf space. These actions reduced Acme Bauble sales and market share.

Blooms: Apply
133. When Jack Welch took over at General Electric, he adopted a plan in which he:
A. increased the number of hierarchical levels in the company.

B. downsized and delayered.
C. created more middle-level marketing manager positions.
D. focused on market diversification strategies.
Welch sold or closed more than 100 of GE's businesses. He wanted the company to focus on
what it did best and use fewer resources to do so and he closed GE businesses (downsized)
and did away with several layers in GE (delayered) to empower employees.

Blooms: Understand
Difficulty: Medium
134. Which of the following statements about what happened at General Electric (GE) during the
last decade is true?
A. GE added 15,000 employees and added several marketing manager positions.

B. GE adopted a market niche strategy, which allowed it to accept the fact that it was not #1 or
#2 in each industry in which it was involved.
C. GE vowed to be loyal to its employees and do whatever it could to maintain job security.
D. Jack Welch was focused on delayering the company, as it had too many managers.
Welch saw GE bogged down with 25,000 managers and close to a dozen layers between him
and the factory floor. In his "delayering," he sought to cut GE's levels in half and to speed up
decision making and implementation by building an atmosphere of trust and autonomy among
his managers and employees.

Blooms: Understand
Difficulty: Medium
135. Which of the following is NOT a managerial practice designed to improve the implementation
of marketing programs?
A. Schedule precise tasks, responsibilities, and deadlines so each employee knows what is
expected.
B. Analyze, design, test, and retest the marketing program solutions to get it right the first time
to avoid costly "fix-its" during the implementation.
C. Communicate marketing goals to each team member so each knows the standards by
which performance will be evaluated.
D. Reward successful marketing program implementation by giving team members bonuses,
recognition awards, promotions, etc.
Organizations should take action and avoid the "paralysis by analysis" approach that
excessively analyzes problems. Instead, a "do it, fix it, try it" approach that lets customers help
refine the marketing program during the implementation phase may be a more cost-effective
method.

Blooms: Understand
Difficulty: Medium
136. Mike works at GE Canada and is responsible for innovation. His major task is to ensure that
high-potential ideas are not slowed down by bureaucracy. Mike would be considered a(n):
A. channel captain
B. marketing mediator
C. program director
D. product champion
Product (or program) champion is able and willing to cut red tape and move the program
forward.

Blooms: Apply
Difficulty: Medium
137. Which statement best reflects the advice given by management experts regarding the
tendency to excessively analyze a problem?
A. Don't put a product on the market until it's perfect.

B. Try a "do it, fix it, try it," approach.
C. If a problem arises, assemble a committee of the appropriate people to solve it.
D. Better to ask forgiveness than permission.
Management experts warn against paralysis by analysis, the tendency to excessively analyze
a problem instead of taking action. To overcome this pitfall they call for a "bias for action" and
recommend a "do it, fix it, try it" approach.

Blooms: Understand
Difficulty: Medium
138. Management experts warn against the tendency to excessively analyze a problem instead of
taking action. This problem is called:
A. dumb and dumber.

B. paralysis by analysis.
C. fits and starts.
D. letting sleeping dogs lie.
Paralysis by analysis is the tendency to excessively analyze a problem instead of taking

action.

Blooms: Remember
Difficulty: Easy
139. An aid that helps to implementing a marketing plan and consists of three columns (task, name,
and date) is often referred to as a(n):

B. job analysis
C. action item list
D. program schedule
Action item list is an aid to implementing a market plan, consisting of three columns: (1) the
task, (2) the name of the person responsible for completing that task, and (3) the date by
which the task is to be finished.

Blooms: Remember
Difficulty: Medium
140. The following note was sent out after a meeting: "Stephen, complete question review and
update—To be finished by December 2013." This is likely part of a(n):

B. job analysis
C. action item list
D. program schedule

Blooms: Apply
Difficulty: Medium
141. The three columns of an action item list contain information about the:
A. procedure, its deadline, and its budget.

B. task, the procedure, and the budget.
C. budget, the person responsible, and the evaluation process.
D. task, the person responsible, and the deadline.

Blooms: Remember
Difficulty: Medium
142. Program schedules are described by all of the following statements, except:
A. are similar to program item lists.

B. show the relationships through time of the various tasks to be accomplished.
C. can be done using Gantt charts.
D. require that sequential and concurrent tasks be identified.
Related to the action item lists are formal program schedules, which show the relationships
through time of the various program tasks.

Blooms: Remember
Difficulty: Easy
143. As a new employee, your manager asked you to complete an action item list for an upcoming
marketing project. Confused, you hesitated a moment before realizing that an action item list is
pretty much the same as a:
A. product-market strategic assignments.

B. job analyses.
C. program schedules.
D. value analyses.
Related to the action item lists are formal program schedules, which show the relationships
through time of the various program tasks.

Blooms: Understand
Difficulty: Medium
144. Which of the following is NOT a step in developing program schedules such as Gantt charts?
A. Identify the main tasks.

B. Assign responsibilities to complete each task.
C. Determine how long it will take to complete each task.
D. Determine how much it will cost to finish the task on time.
Program schedules show the relationships through time of the various program tasks.

Blooms: Understand
Difficulty: Medium
145. The key to all scheduling techniques is to:
A. avoid scheduling tasks that can be done concurrently.

B. avoid tasks that must be done sequentially.
C. make sure to allow a 20 percent delay factor to account for contingencies.
D. distinguish tasks that must be done sequentially from those which can be done
concurrently.
Effective scheduling requires that sequential tasks be distinguished from concurrent tasks, the
latter permitting tasks to "overlap" in the schedule.

Blooms: Understand
146. Employees who have the authority and responsibility to issue orders to people who report to
them are known to be in which position?
A. staff
B. line
C. clerical
D. stakeholder
People in line positions, such as senior marketing managers, have the authority and
responsibility to issue orders to the people who report to them, such as product managers.

Blooms: Remember
Difficulty: Easy
147. Employees who have the responsibility to advise people in line positions but cannot issue
them direct orders are usually in which position?
A. staff
B. line
C. stakeholder
D. management
People in staff positions who have the authority and responsibility to advise people in the line
positions but cannot issue direct orders to them.

Blooms: Remember
Difficulty: Easy
148. Which of the following is an example of a staff position for Bush Refrigeration Company, a
company that sells refrigeration units on a lease-to-buy plan to small flower shops, delis, and
restaurants?
A. the CEO of the company

B. the company's Vice President of finance
C. the men who deliver and install the refrigeration units
D. the company's legal advisor
People in staff positions have the responsibility to advise people in line positions but cannot
issue them direct orders—the case here with the company's legal advisor.

Blooms: Apply
Difficulty: Medium
149. Those in staff positions have the authority and responsibility to advise people in line positions:
A. and can recommend salary and benefit adjustments for them.

B. but cannot issue direct orders to them.
C. but must clear all such communication with their superiors.
D. and must clear all such communication with the corporate human resources department.
People in staff positions who have the authority and responsibility to advise people in the line
positions but cannot issue direct orders to them.

Blooms: Remember
Difficulty: Easy
150. Which of the following is NOT a divisional grouping used by marketing managers to implement
plans and achieve their organizational objectives?
A. geographical grouping
B. marketing channel grouping
C. product line grouping
Marketing channel groupings are not a common way to organize a division.

Blooms: Remember
Difficulty: Easy
151. Whirlpool uses an organizational structure with the following headings: Small Appliance, Large
Appliance, Outdoor Equipment, and Electronics. What format of organizational structure is
Whirlpool based on?
A. product offerings
C. areas of geographic location
Product line groupings are organizational groupings in which a unit is responsible for specific
product offerings.

Blooms: Apply
Difficulty: Medium
152. GE organizes their structure by marketing, finance, and R&D. GE's structure is referred to as:

B. functional grouping
C. geographical grouping
Functional groupings are organizational groupings, such as manufacturing, marketing, and

finance, which are the different business activities within a firm.

Blooms: Apply
Difficulty: Medium
153. General Mills has three divisions in Canada: Eastern, Central, and Western Canada. General
Mills organizes their structure using:
A. product type
C. areas or location
Geographical groupings organizational groupings in which a unit is subdivided according to

geographical location.

Blooms: Apply
Difficulty: Medium
154. The IBM maintains a "one-product-fits-all" mentality, but each sales representative sold the
company's entire line of products to different customers in a single industry, such as
manufacturers or banks. This structure is known as:

D. market-based groupings
IBM used an organizational structure based on industry sectors, or market-based groupings.

Blooms: Apply
155. An organizational structure that is based on specific customer segments, such as the banking,
health care, or manufacturing segments, is using:
A. product line grouping.

B. geographical grouping.
C. functional grouping.
D. market-based grouping.
Market-based groupings organizational groupings that utilize specific customer segments.

Blooms: Remember
Difficulty: Easy
156. Deloitte Consulting categorizes their customers by banking, healthcare, private, and
entrepreneurs. Deloitte is basing its organizational structure on:
A. geographic areas
B. lines of products
C. or particular products only
D. customer segments
Market-based groupings organizational groupings that utilize specific customer segments.

Blooms: Apply
Difficulty: Medium
157. Within DuPont's textile fibre department, there is a separate product manager for rayon,
acetate, Orlon, nylon, and Dacron. Each product manager is responsible for selling to the
various markets in which the textile could be used such as clothing, furniture, or floor
coverings. Its other product divisions have similar structures. DuPont uses _____ to organize
the company.

Matrix organization combines market-based groupings with product line groupings, the
situation at DuPont.

Blooms: Apply
158. Ingram Micro is the biggest computer wholesaler in the world. It has two divisions. One
provides supplies for companies that manufacture computer products, such as IBM and
Microsoft. To them it sells motherboards, monitors, etc. The other has been developed to
serve the needs of the resellers and retailers who sell computers to businesses and individual
customers. To them, it sells user-ready computers. Ingram Micro uses a simplistic version of
what kind of organizational structure for marketing?

Matrix organization combines market-based groupings (computer manufacturers and

computer resellers) with product line groupings (finished computers and computer parts), the
situation at Ingram Micro.

Blooms: Apply
159. A matrix organization:
A. combines a product line structure with a geographical structure.

B. combines a geographical structure with a market-based structure.
C. combines a market-based structure with product groupings.
D. turns a horizontal organizational structure into a vertical one.
When market-based grouping of organizing is combined with product groupings, the result is a
matrix organization.

Blooms: Remember
Difficulty: Easy
160. A category manager:
A. is a position that is only found in industrial products firms.

B. has profit-and-loss responsibility for an entire product line.
C. does not have any profit responsibility.
D. attempts to maximize each individual brand's successes, even at the expense of another, to
maximize the overall profitability of the product line.
A category manager is typically found in consumer product firms and has profit-and-loss
responsibility for an entire product line to reduce the possibility of one brand's actions hurting
another's in the same category.

Blooms: Remember
Difficulty: Easy
161. Colgate moved from brand management (Colgate toothpaste) to category management
(toothpaste product line). Under Colgate's new system, a category manager would have:
A. completely different duties from the brand manager.

B. profit-and-loss responsibility for all toothpaste products.
C. to use persuasion as opposed to direct authority to get any goals achieved.
D. no authority over functions that affects toothpaste products except marketing.
Category managers and brand managers have similar responsibilities—category managers

deal with more product lines. Also category managers have direct authority where brand
managers must rely more on persuasion. Category managers have authority over all
functional and international decisions relating to their products.

Blooms: Apply
Difficulty: Medium
162. Within DuPont's textile fibre department, there is a separate product manager for rayon,
acetate, Orlon, nylon, and Dacron. The product manager for DuPont nylon would be
responsible for:
A. making long-range plans for nylon.

B. maintaining the divisional mission statement.
C. modifying DuPont's organizational structure.
D. creating static marketing objectives.
A product manager is responsible for planning, implementing, and controlling long-range and
annual plans for the product for which he or she is responsible.

Blooms: Apply
163. General Mills uses a marketing structure in which one person is ultimately responsible for the
marketing of a specific product. For instance, one person is responsible for setting marketing
goals and developing and implementing related marketing strategies for the well-known
breakfast cereal, Cheerios. This person, who takes responsibility for the success or failure of
the marketing of Cheerios, is called a(n):
A. marketing advisor.
B. product advisor.
C. account executive.
D. product manager.
General Mills is one of many marketing organizations that use product managers to plan,
implement, and control the annual and long-range marketing plans for specific products. The
product manager is ultimately responsible for the success or failure of the marketing efforts
related to a product.

Blooms: Apply
Difficulty: Medium
164. Which of the following is NOT traditionally a responsibility of a product or brand manager?
A. preparing annual marketing plans, sales forecasts, and budgets

B. working with advertising agencies to develop advertising campaigns
C. finding ways to improve existing products and create new ones
D. selecting and training the sales force
Selecting and training sales personnel is not a traditional function of a product manager. Other
product manager responsibilities include developing product support from the organization's
sales force and distributors.

Blooms: Understand
Difficulty: Medium
165. Many large, packaged goods marketers like Procter & Gamble, Kraft, and Pillsbury have used
the product manager (or brand manager) system of marketing organization and
implementation. Which of the following is the key advantage of this system?
A. Product managers have major responsibilities and relatively little authority.

B. Product managers are short-term in their orientation.
C. Product managers can assume profit-and-loss responsibility for the performance of the
product line.
D. Product managers have direct responsibility for research and development of new
products.
"Product managers have major responsibilities and relatively little authority" and "product
managers are short-term in their orientation" are true but are disadvantages, not advantages.
The profit-and-loss responsibility of product managers give them "ownership" of their products
and motivate them to become strong advocates. They do not have R&D responsibility.

Blooms: Understand
Difficulty: Medium
166. Which of the following statements describes a disadvantage of the product manager system?
A. Product managers are strong advocates for their assigned product.

B. Product managers tend to remain in the same position for an extended period of time.
C. Even though product managers have major responsibilities, they have relatively little direct
authority.
D. Product managers are considered line personnel and therefore have little control over
decision making.
On the negative side, even though product managers have major responsibilities, they have
relatively little direct authority, and so most groups and functions must be coordinated to meet
the product's goals.

Blooms: Understand
Difficulty: Medium
167. All of Samsung's products where selling above forecasted numbers in 2014, except for their
microwaves, which were not following their annual marketing plan. Executives focused on
microwaves and implemented a new strategy to attempt to reverse the trend. Samsung was
employing:
A. a sales analysis.
B. a deviation analysis.
C. management by exception.
D. a situation analysis.
Management by exception means identifying results that deviate from plans to diagnose their
causes and take new actions.

Blooms: Apply
Difficulty: Medium
168. A marketing manager uses management by exception to:
A. take over responsibilities no one else can handle.

B. schedule concurrent and sequential activities using the NIH model.
C. identify results that deviate from plans to diagnose their causes and take new actions.
D. delete from the line any product that fails to have both marketing and production economies
of scale with the existing line.
Management by exception is a tool used by marketing managers that involves identifying

results that deviate from plans, diagnosing their causes, and taking new actions.

Blooms: Understand
Difficulty: Medium
169. All of the following are steps in the strategic marketing process, except:
A. planning.
B. implementation.
C. evaluation.
D. analysis.
Strategic marketing process is the process whereby an organization allocates its marketing
mix resources to reach its target markets. The three phases are planning, implementation, and
evaluation.

Blooms: Understand
Difficulty: Medium
170. The evaluation phase of the strategic marketing process includes all of the following activities
EXCEPT:
A. establishing quantified goals to be measured.

B. measuring the results against the quantified goals.
C. comparing goals and results to identify deviations.
D. identifying the causes of deviations.
Establishing quantified goals to be measured occurs during the planning phase of the strategic
marketing process.

Blooms: Understand
Difficulty: Medium
171. The evaluation phase of the strategic marketing process includes all of the following, except:
A. taking actions to solve problems and exploit opportunities.

B. measuring results against quantified goals.
C. creating goals and results to identify deviations.
D. identifying the cause of deviations.
All of the choices, except for C, describe the essence of the evaluation phase.

Blooms: Understand
Difficulty: Medium
172. Amy Smith has just completed measuring the results of her firm's marketing plan. Her next
step will be to:
A. compare the results to the goals set for that marketing plan.
B. do a profitability analysis.
C. take necessary corrective action.
D. bring these to the marketing auditor.
Nothing is known until there is a comparison of what has happened with what was desired
(results with goals). The other alternatives describe actions that could take place after this first
step.

Blooms: Apply
Difficulty: Medium
173. The application of modern measurement technologies to understand, quantify, and optimize
marketing spending is known as:
A. Profitability analysis
B. Sales analysis
C. Marketing component analysis
D. Marketing ROI
Marketing ROI is the application of modern measurement technologies to understand,

quantify, and optimize marketing spending.

Blooms: Remember
Difficulty: Easy
174. WestJet has quite the presence on social media, for example, their YouTube videos have
________ views.
A. 500,000
B. 1 million
C. 2 million
D. 3 million
(Chapter Opening Example) WestJet guests appear to like WestJet given its 100,000
Facebook friends and Twitter followers as well as 1 million YouTube views.

Blooms: Remember
Difficulty: Medium
175. Which of the following is NOT an example of an emerging marketing challenge for Betty
Crocker Dessert Bowls?
A. the comparison problem

B. the communication problem
C. friendly passengers
D. the gluten-free problem
(Video Case) The video case discusses 5 marketing challenges of which all of the preceding
are explained except for option "C".

Blooms: Apply
Difficulty: Medium
176. If WestJet used the line "Our Employees are also Shareholders" they would be emphasizing
the ________________ of the four basic business practices.
A. strategy
B. execution
C. culture
D. structure
(Chapter Opening Example) Four basic business practices are fundamental to business
success: strategy, execution, culture, and structure. From the beginning, WestJet had a clear
and focused strategy, and it executed it well. The company also developed a strong
organizational and entrepreneurial culture with its employees (who are shareholders) as key
architects to its success.

Blooms: Understand
Difficulty: Medium
177. WestJet flies to over 80 North American destinations. The introduction of the WestJet
Vacations with service to U.S., Mexico, and the Caribbean is a ____________ strategy.
B. market enhancement
C. diversification
(Chapter Opening Example) Because WestJet has venture into a new product (WestJet
Vacations) into new markets (Mexico and Caribbean) this can be said to be a diversification
strategy. WestJet also continuously adapts to the fast-paced airline industry looking for new
opportunities as well as responding to changing guests' needs. By 2016, WestJet intends to
be one of the five most successful international airlines in the world.

Blooms: Apply
Difficulty: Medium
synergies.
178. What was the decline in purchases of baking mix in US households between 2000 and 2004?
A. 3 percent
B. 5 percent
C. 8 percent
D. 10 percent
(Video Case) Cake continues to be a tradition for birthdays and social occasions. But
consumer demand declines. The percentage of U.S. households that bought at least one
baking mix in 2000 was 80 percent. Four years later, the percentage of households was 77
percent, a very significant decline.

Blooms: Understand
Difficulty: Medium
179. Each of the following is a hallmark of cake mixes being a mature category EXCEPT:
A. little differentiation
B. gradually falling sales
C. low uniform prices
D. increased advertising
(Video Case) Many choices, but little differentiation, gradually falling sales, and low uniform
prices are the hallmarks of a mature category.

Blooms: Understand
Difficulty: Medium
180. When Potash Corp. of Saskatchewan demands it suppliers adhere to strict human rights
standards, it is practicing ___________________________.
A. ethical and profitable business practices

B. green marketing
C. sustainable development
D. ISO 9000 standards
Many companies have integrated corporate social responsibility and sustainable development
business practices into both their short-term and long-term strategic plans.

Blooms: Understand
Difficulty: Medium
181. Vancity is Canada's largest credit union. It has a clear statement of _________________
which includes the concepts of integrity, innovation, and responsibility.
A. strategies
B. objectives
C. values
D. goals
Vancity is Canada's largest credit union. It is guided by its commitment to corporate social
responsibility and to improve the quality of life in the communities in which it operates. It has a
clear "statement of values" that includes the concepts of integrity, innovation, and
responsibility.

Blooms: Remember
Difficulty: Easy
182. Which of the following roles would not be classified as part of the functional groups at
Pillsbury?
A. Senior Marketing Manager

B. Product Manager
C. Director of Sales
D. Desserts
See Figure 19-9.

Blooms: Understand
Difficulty: Medium
Figure 19-6
Crane - Chapter 19
183. In Figure 19-6, the box labeled "A" illustrates which of the following market-product
strategies?
A. Market-product concentration
Market-product concentration is a strategy where one product is offered to one market.
Blooms: Apply
Difficulty: Medium
synergies.
184. In Figure 19-6, the box labeled "B" illustrates which of the following market-product
strategies?
A. Full coverage
Market specialization is a strategy where several products are offered to one market.
Blooms: Apply
Difficulty: Medium
synergies.
185. In Figure 19-6, the box labeled "E" illustrates which of the following market-product
strategies?
A. Full coverage
A full coverage strategy offers multiple products to multiple markets.
Blooms: Apply
Difficulty: Medium
synergies.
186. In Figure 19-6, the box labeled "D" illustrates which of the following market-product
strategies?
A. Full coverage
Selective specialization is a strategy that offers a unique product to a unique market.
Blooms: Apply
Difficulty: Medium
synergies.
187. In Figure 19-6, the box labeled "C" illustrates which of the following market-product
strategies?
A. Full coverage
Product specialization is a strategy where one product is offered to several markets.
Blooms: Apply
Difficulty: Medium
synergies.
188. List the three phases of the strategic marketing process and the output report for each.
Answers will vary
Feedback: Planning is the first phase. The output report is marketing plans or programs that
define goals and the marketing mix strategies to achieve them.
The next phase is implementation. Implementation output reports are results (memos or
computer printouts) that describe the outcomes of implementing the plans.
Control is the final phase. Control output reports include corrective action memos triggered by
comparing results with goals. The memos suggest solutions to problems and take advantage
of opportunities.
Blooms: Understand
Difficulty: Medium
189. List the three steps of the planning phase of the strategic marketing process. Briefly describe
what goes on during each of the three steps.
Answers will vary
Feedback: The planning phase of the strategic marketing process includes three steps:
Step 1 is the Situation (SWOT) analysis. During the SWOT analysis, a company will identify
industry trends, analyze competitors, assess own company, and research customers.
Step 2 is market product focus and goal setting. During Step 2, the company will set market
and product goals, select target markets, find points of difference, and position the product.
Step 3 is the marketing program. During this step, the company will develop the program's
marketing mix and develop the budget, by estimating revenues, expenses, and profits.
Blooms: Understand
Difficulty: Medium
190. If a firm wants to increase profits, it can attempt to (a) increase revenues, (b) decrease
expenses or (c) do both. What profit enhancement option strategies could be used by a local
bank to increase revenues?
Answers will vary
Feedback: The profit enhancement option strategy of increasing revenues can be achieved by
using only one or a combination of four ways to address present or new markets and products:
market penetration, product development, market development, and diversification. A bank
might try one of the following strategies:
(1) Market penetration (present markets, present products) concentrates marketing efforts on
the local market; attempt to increase market share and sales of loans and deposits.
(2) Product development (present markets, new products) develops and introduces new
products such as a financial planning service, a discount brokerage, or electronic bill paying to
the local market.
(3) Market development (new markets, present products) enters new markets by adding
branch offices or ATMs in nearby cities.
(4) Diversification (new markets, new products) introduces a new product, such as life and
property insurance, in a new state through a new branch or acquisition.
Blooms: Apply
synergies.
191. What profit enhancement option strategies might an automobile manufacturer use to decrease
expenses?
Answers will vary
Feedback: Generic strategies for decreasing expenses fall into two broad categories: scale or
experience curve economies, and nonscale economies. With scale economies, it could
consolidate production facilities and reduce the number of automobile designs to increase the
volume of automobiles at one plant and reduce the unit costs of marketing, R&D, and
production. With nonscale economies, it could decrease expenses by:
(1) reducing the number of managers in the company
(2) increasing the effectiveness of the production workers by providing more training and
support services
(3) reducing the number of defects in new automobiles.
Blooms: Apply
synergies.
192. List five guidelines for developing effective plans and planning.
er: Answers will vary
Feedback: Effective plans and planning are characterized by identifiable objectives, specific
strategies or courses of action, and the means to execute them. Some guidelines in
developing effective marketing plans:
(1) Set measurable, achievable goals

(2) Use a base of facts and valid assumptions
(3) Utilize simple but clear and specific plans
(4) Have complete and feasible plans
(5) Make controllable and flexible plans
Blooms: Understand
Difficulty: Medium
193. A difficulty when a marketing plan fails is determining whether it is primarily due to a poor plan
or poor implementation. Describe the grid which results from considering (1) good and bad
marketing planning and (2) good and bad marketing implementation. What are the outcomes
of each combination?
Answers will vary
Feedback: See Figure 19-8.
Blooms: Understand
Difficulty: Medium
194. A common theme among managers who succeed repeatedly in program implementation is
communication. Why is this so important?
Answers will vary
Feedback: One method of improving implementation of marketing programs is to

communicate goals and the means of achieving them to the doers. The personnel called on to
implement plans need to understand both the goals sought and how they are to be
accomplished. Communication insures everyone is clear about the firm's goals and allows
personnel to focus their activities to achieve that goal. In addition, another key to
implementation is open communication. Success often lies in fostering a work environment
that is open enough so doers are willing to speak out when they see problems (without fear of
recrimination). This allows problems to surface and allows the group to focus on solving those
problems.
Blooms: Understand
Difficulty: Medium
195. Management experts call for a "bias for action." How can this attitude be important in
marketing program implementation?
Answers will vary
Feedback: Management experts have concluded perfectionists finish last. They argue getting
90 percent perfection and letting the marketplace help in the fine-tuning helps the
implementation process. Another argument for the approach comes from Kelly Johnson, head
of Lockheed Martin's Skunk Works. He recommends:
(1) decisions should be made promptly

(2) avoid paralysis by analysis.
Thus, the preference for doing something—anything—rather than sending an idea through
endless cycles of analyses helps marketing programs work.
Blooms: Understand
196. What is the difference between line and staff positions in a marketing organization?
Answers will vary
Feedback: People in line positions, such as senior marketing managers, have the authority
and responsibility to issue orders to the people who report to them, such as product
managers. People in staff positions have the authority and responsibility to advise people in
line positions but cannot issue direct orders to them.
Blooms: Remember
Difficulty: Easy
197. What are the advantages and disadvantages of the product manager system?
Answers will vary
Feedback: There are both benefits and dangers to the product manager system. On the
positive side, product managers become strong advocates for the assigned products, cut red
tape to work with people in various functions both inside and outside the organization, and
assume profit-and-loss responsibility for the performance of the product line. On the negative
side, even though product managers have major responsibilities, they have relatively little
direct authority, and so most groups and functions must be coordinated to meet the product's
goals. To coordinate the many units, product managers must use persuasion rather than
orders.
Blooms: Understand
Difficulty: Medium
198. How is management by exception used in the control phase of the strategic marketing
process?
Answers will vary
Feedback: Goals are specified in the planning phase of the strategic marketing control
process. If these goals are not achieved, a marketing manager can use management by
exception to exploit new opportunities or correct problems—both reasons why the objectives
were not attained. This requires identifying results that deviate from plans, diagnosing their
causes, and taking new actions.
Blooms: Understand
199. Discuss different measures by which marketing activity performance can be measured.
Answers will vary
Feedback: No single measure exists. In finance, the return on investment (ROI) measure
relates the total investment made to the total return generated from the investment.
The concept has been extended to trying to measure the effectiveness of marketing
expenditures with marketing ROI, the application of modern measurement technologies to
understand, quantify, and optimize marketing spending. The evaluation phase of the strategic
marketing process tries to improve marketing ROI through the effective use of marketing
metrics and dashboards:
• Marketing metrics. Depending on the specific objective sought, one or a few key marketing
metrics are chosen, such as market share, cost per lead, retention rate, cost per click, sales
per square foot, and so on. This is the "quantified goals" step in Figure 19-11.
• Marketing dashboards. If the financial resources and technology are available, the marketing
metrics are displayed—often hourly or daily on the manager's computer.
With today's syndicated scanner data, Internet clicks, and TV viewership tracking, the typical
manager faces information overload. So an effective marketing dashboard displays
highlights—often in colour—where actual results vary significantly from plans. This alerts the
manager to potential problems.
Blooms: Understand
Difficulty: Medium
200. What is marketing ROI? Why is it used?
Answers will vary
Feedback: Marketing ROI is the application of modern measurement technologies to

understand, quantify, and optimize marketing spending. Marketing ROI is used to bridge the
gaps after obtaining the detailed data to do a profitability analysis as analyzing this data is
difficult.
Blooms: Understand
Difficulty: Medium
201. Define synergy and describe how Loblaw's purchasing Shoppers Drug Mart will create
synergies for Loblaw.
Answers will vary
Feedback: Synergy is the increased customer value achieved through performing

organizational functions more efficiently. Review Marketing Matters (A Key Strategy Issue:
Finding Synergies).
Blooms: Understand
Difficulty: Medium
synergies.
202. Describe Canada Goose's differentiation strategy.
Answers will vary
Feedback: See Marketing Matters (Canada Goose's Differentiation Strategy Is Working).
Blooms: Remember
Difficulty: Medium
synergies.
203. With advancing mobile and social technologies, describe the job description for a Chief
Marketing Officer in 2020.
Answers will vary
Feedback: Answers will vary, but will focus on how the CMO role is evolving with broadened
responsibilities.
Blooms: Understand
Difficulty: Medium
204. With advancing mobile and social technologies, describe how marketing ROI, marketing
metrics, and marketing dashboards will look like in 2020.
Answers will vary
Feedback: Answers will vary, but will focus on increased interactivity, data availability,
importance of location-based data, personalization, and social media activity.
Blooms: Understand
Difficulty: Medium
Process Summary
Category # of Questions
Accessibility: Keyboard Navigation 169
Blooms: Apply 68
Blooms: Remember 71
Blooms: Understand 65
Crane - Chapter 19 208
Difficulty: Difficult 19
Difficulty: Easy 63
Difficulty: Medium 122
Learning Objective: 19-01 Explain how marketing managers allocate their limited resources. 60
Learning Objective: 19- 69
02 Describe three marketing planning frameworks: Porters generic strategies; profit enhancement options; and market-
product synergies.
Learning Objective: 19-03 Explain what makes an effective marketing plan and some problems that often exist with it. 35
Learning Objective: 19- 28
04 Describe the alternatives for organizing a marketing department and the role of a product manager.
Learning Objective: 19-05 Explain how marketing ROI; metrics; and dashboards relate to evaluating programs. 14

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Chapter 19 Pulling it All Together: The Strategic Marketing

1. WestJet was founded by four Calgary entrepreneurs in which year?

A. their old Marketing textbooks

A. sales ratio function

7. Sales response functions relate the:

A. expense of marketing effort to primary competitors' spending.

A. the firm has had the most experience with a product.

9. The relationship of annual marketing effort to annual sales revenue is assumed to be an S-

A. that when demand diminishes, production costs rise.

A. rising production costs and diminishing demand.

A. product line breadth.

A. corporate return on investment.

17. Which aspect is the foundation of Canada Goose's differentiation strategy?

A. content creation through story telling

A. Corporate return on investment

A. Corporate return on investment

A. Corporate return on investment

A. Corporate return on investment

A. increased focus on "voice of the customer"

A. Corporate return on investment

A. understand marketing spending

A. Corporate return on investment

A. Corporate return on investment

A. Corporate return on investment

A. Corporate return on investment

A. Marketing metrics and marketing dashboards

A. Marketing plans that define goals

A. Marketing plans that define goals

A. Marketing plans that define goals

A. Monthly Unit Sales by Channel

A. set market and product goals

A. projections of future sales, expenses, and profits.

A. identify industry trends

A. identify industry trends

A. identify industry trends

A. identify industry trends

A. market potential studies

A. trends for industry and competitors

A. select target markets

A. select target markets

A. position the product

A. find points of difference

A. find points of difference

A. Performance reviews for key personnel.

A. Performance reviews for key personnel.

A. annual; new product,

65. Long-range marketing plans:

A. generic marketing strategy

A. short term plan

A. generic business strategy

74. IKEA is likely to have which generic business strategy?

75. Volkswagen is likely to have which generic business strategy?

76. Which type of firm can use a generic business strategy?

83. Office Depot would be found in which quadrant in Figure 19-4?

A. Ford used a differentiation strategy.

A. cost leadership strategy

A. cost leadership strategy

101.The market-product grid: