20 Aug Employees from different departments such as marketing, production, finance, and human resources are brought together to form a team responsible for creating a strategic plan to serve customers.

Employees from different departments such as marketing, production, finance, and human resources are brought together to form a team responsible for creating a strategic plan to serve customers. This is an example of a _____.
cross-cultural team
cross-functional team
traditional team
top-management team
QUESTION 2
Run for the Cure is an annual marathon that raises money for conducting research on breast cancer. Marketers advertise through local media to attract participants and volunteers for the event. Which of the following types of marketing is depicted in this scenario?
Place marketing
Product marketing
Organization marketing
Service marketing
QUESTION 3
The _____ for a soft drink manufacturer would include other manufacturers of soft drinks, fruit juices, bottled water, sports drinks, caffeine-free colas, and dairy beverages.
competitive environment
technological environment
cooperative environment
economic environment
QUESTION 4
It is important for a mission statement to be _____ because it provides a shared sense of purpose outside the various activities taking place within the organization.
internally focused
product oriented
motivational
generic
QUESTION 5
Which of the following organizational growth strategies aims to find new customers for its present products?
Customer retention strategy
Product differentiation strategy
Market development strategy
Market penetration strategy
QUESTION 6
The mission statement of an organization should primarily have a(n) _____.
product focus
external focus
internal focus
selling focus
QUESTION 7
While choosing an appropriate strategy to establish competitive advantage, management should choose an organizational strategy that:
allows the organization to practice the strategy of differentiation rather than cost leadership.
tries to succeed by following all strategies and trying to be all things to all people.
bears consistency with the organization’s mission and capitalizes on its distinctive competencies.
empowers the organization to grow without creating new products or entering new markets.
QUESTION 8
Which of the following statements best describes the role of marketing executives in the strategic planning process?
Marketing executives must always be aware of what the process of strategic planning involves as well as the results.
Marketing executives should make plans that are independent of the strategic plan.
Marketing executives receive suggestions from the strategic planning team and implement the suggestions relating to customers, products, and middlemen.
Marketing executives are not involved in the strategic planning process because this process is the sole responsibility of top management.
QUESTION 9
_____ includes all the activities that lead to the development of a clear organizational mission, organizational objectives, and appropriate strategies to achieve the objectives for an entire organization.
Marketing mix
Marketing planning
Strategic planning
Marketing concept
QUESTION 10
An organization’s mission statement must be _____ to be able to provide direction and guidelines to management when they are choosing between alternative courses of action.
challenging
broad
generic
specific
QUESTION 11
Which of the following is a difference between an organization with market orientation and an organization with production orientation in terms of interest in innovation?
An organization with market orientation sells what it can make and does not focus on innovation, whereas an organization with production orientation makes what it can sell and focuses on innovation.
An organization with market orientation keeps costs as low as possible, whereas an organization with production orientation eliminates costs that do not give value to the customer.
The focus of an organization with market orientation is on locating new opportunities, whereas the focus of an organization with production orientation is on technology and cost cutting.
The focus of an organization with market orientation is on determining customer reaction, whereas the focus of an organization with production orientation is determining customer needs.
QUESTION 12
Which of the following changes in an organization’s environment will most likely result in the organization becoming a drifting organization?
The organization hires new management executives who are expected to uphold and maintain its mission.
The organization has started manufacturing low-cost products as opposed to the luxury products that were a part of its original plan.
The organization has successful operations in ten different countries and has decided to open market in two additional countries.
The organization has decided to promote efficient employees who adhere to its mission statement instead of hiring managers.
QUESTION 13
Elite Inc. is as a brand of luxury clothing and accessories, and it targets affluent working women. However, it alters its offerings to include a large proportion of standard clothes at cheaper prices when the country faces severe recessionary pressures. In this scenario, which of the following environments does Elite primarily respond to by changing its offerings?
The legal environment
The competitive environment
The cooperative environment
The economic environment
QUESTION 14
PureFruit Inc. prices its products higher than most of its competing brands in the packaged fruit juice industry. However, it still enjoys higher returns than its competitors because it is the only brand that can rightfully claim the use of fresh fruits and no added sugar. What kind of organizational strategy based on competitive advantage does PureFruit most likely use?
A strategy based on market development
A strategy based on differentiation
A strategy based on cost leadership
A strategy based on diversification
QUESTION 15
Which of the following is a stage of the marketing planning process that involves the analysis of the past, present, and likely future in six major areas of concern?
Situation analysis
Target market selection
Marketing objectives
Marketing mix
QUESTION 16
The final step of marketing planning is _____.
selecting the target market
developing the marketing mix
establishing objectives based on the organizational mission
determining performance objectives for individual members of the marketing team
QUESTION 17
Since September 11, 2001, the number of people attending church and looking toward religion to provide solace has increased. As a result, Bible publishers have developed the Starting Point Study Bible, which explains what they are reading and includes a dictionary of biblical terms. In this scenario, the changes in the _____ have led to the publication of the Starting Point Study Bible.
social environment
competitive environment
cooperative environment
economic environment
QUESTION 18
The _____ involves a set of controllable variables that must be managed to satisfy the target market and achieve organizational objectives.
demographic profile
mission statement
organizational history
marketing mix
QUESTION 19
If a firm chooses to succeed by building long-term relationships with its customers by offering either best price, best product, or best service, it implies that the firm’s organizational strategy is:
based on competitive parity.
based on value.
based on products and markets.
based on selling.
QUESTION 20
Which of the following statements about an organization’s mission statement is true?
Even though no one denies the importance of the mission statement, it is the least used of all the management tools.
An effective mission statement takes an internal organizational focus.
It should focus on the physical product or service that the organization is offering at present.
It should focus on the broad class of needs that the organization is seeking to satisfy.
QUESTION 21
The first step in controlling an implemented marketing plan is:
comparing the results of the marketing plan with the objectives.
deciding whether the marketing plan is achieving the objectives.
formulating a new marketing plan.
measuring the results of the implemented marketing plan.
QUESTION 22
Which of the following is the principle task of an organization with a market orientation?
To manipulate customers to do what suits its interests
To focus on making products and then trying to sell them to customers
To find effective and efficient means to satisfy the interests of customers
To ensure that employees come first in organizational decision making
QUESTION 23
Which of the following is the first step in marketing planning?
Stating standards of performance or tasks to be achieved by given dates
Selecting the groups or segments of potential customers the firm is going to serve
Analyzing the different elements of the marketing mix
Identifying the market with the greatest potential
QUESTION 24
Which of the following is the greatest advantage of strategic planning with a cross-functional team?
It ensures that strategic planning remains exclusively a top-management responsibility.
It helps the organization arrive at a strategic plan directly from the functional area plans.
It allows the team members to consider a situation from a number of viewpoints.
It improves the cross-cultural relations between employees.
QUESTION 25
Essential Products Inc. manufactures a wide range of healthcare products for infants, toddlers, and adults. The company is not able to allocate large budgets for each of its product groups because of resource constraints, and it is making huge losses in most of its product groups. In the context of strategic planning, which of the following is the final phase that Essential Products Inc. should adopt to revive its business?
Creating an organizational mission
Formulating an organizational portfolio plan
Setting organizational objectives
Creating organizational strategies
QUESTION 26
Mealtimes was started as a fine-dining restaurant serving the most exotic European dishes in the city. The meals ran into several courses, and the restaurant was frequented by people looking for a fancy and leisurely meal. However, with changing times and needs of consumers, the restaurant altered its offerings to incorporate fast food like pizzas, burgers, and hot dogs. The company had to venture into new and different markets to maintain profitability. These new conditions and a redundant mission statement would most likely make the restaurant a _____.
matrix organization
static organization
drifting organization
multidomestic organization
QUESTION 27
Emergo International Company conducts market research to find out the interests and needs of its customers. Based on the research reports, the organization devises plans to meet the customers’ needs and wants and manufactures products that are useful to them. Identify the marketing concept that Emergo International Company has adopted.
Production orientation
Market orientation
The BCG model
The GE model
QUESTION 28
The removal of tariffs on the import of Canadian lumber will adversely affect the U.S. lumber industry because Canada is able to produce lumber much more inexpensively than the U.S. This tariff removal is an example of how the _____ environment can affect businesses.
cooperative
functional
social
legal
QUESTION 29
The final step in controlling an implemented marketing plan is:
performing marketing tasks.
comparing results of the marketing plan with objectives.
measuring the results of the marketing plan.
deciding whether the marketing plan is achieving objectives.
QUESTION 30
Which of the following is an organizational strategy based on competitive advantage?
Cost leadership strategy
Market differentiation strategy
Market diversification strategy
Product development strategy
QUESTION 31
The strategic plan at Steve Walden Inc. helps in the creation of functional area plans for its production, human resource, finance, and technology functions. This best demonstrates the process of:
market diversification.
product-related diversification.
cross-functional strategic planning.
marketing planning.
QUESTION 32
Identify the accurate statement regarding an effective mission statement.
It should focus on the physical product that the organization is offering at present, not on the external forces that the organization is seeking to satisfy.
It should focus on public relations as its primary purpose.
It should not consider the critical characteristics and events of the past.
It should provide guidance to employees and managers in geographically dispersed units.
QUESTION 33
The purpose of the marketing concept is to rivet the attention of organizations on serving _____.
supplier needs and wants
employee needs and wants
management needs and wants
customer needs and wants
QUESTION 34
Run with Scissors Inc., a hair salon, advertises its trendy and affordable offerings primarily through the use of social media. The type of strategy the hair salon uses can best be classified as marketing for a(n) _____.
product
service
cause
organization
QUESTION 35
A cross-functional team responsible for the creation of its company’s marketing plan had to make adjustments to the marketing plan since the plan failed to meet the determined objectives. This implies that the cross-functional team is:
controlling the marketing plan.
redefining the organizational mission.
implementing the marketing plan.
altering the organizational portfolio plan.
QUESTION 36
In the context of situational analysis, the _____ includes the attitudes and reactions of the general public, social and business critics, and other organizations, such as the Better Business Bureau.
competitive environment
political environment
social environment
legal environment
QUESTION 37
Which of the following is the first component of a strategic plan?
Organizational objectives
Organizational strategies
Organizational mission
Organizational portfolio plan
QUESTION 38
In determining its mission statement, an organization must:
look at the business from the inside, from the point of view of the employee and the management.
ensure that the name of the product or service it is producing is an essential part of its name.
reflect a market-driven approach by targeting a broad class of needs that it is seeking to satisfy.
state the mission in terms of serving a generic group of clients or customers and meeting generic, not specific, needs.
QUESTION 39
Zest Sports Inc. manufactures sports goods and recently introduced a new line of sportswear for children between the ages of seven and ten years. The marketing team envisions an entirely new marketing strategy to create exchange for its new line of sportswear. This best exemplifies _____.
service marketing
product marketing
cause marketing
place marketing
QUESTION 40
The things that an organization does so well that they give it an advantage over similar organizations represent that organization’s _____.
competitive parity
distinctive competencies
external opportunities
vendor analysis variables
QUESTION 41
Beryl Toys makes toys for children of ages three and above, while Lobster-Price makes toys for infants. In 1999, Beryl Toys acquired Lobster-Price for $1.1 billion. This acquisition gave Beryl Toys a new product line aimed at the younger siblings of its current target market. In this scenario, Beryl Toys has most likely implemented a _____ strategy.
diversification
product differentiation
market development
market penetration
QUESTION 42
Which of the following statements is true of strategic planning in well-managed institutions?
Strategic planning is clearly a top management responsibility and does not require the active participation of marketing managers.
Planning done in the functional areas of the organization should be independent of the strategic plan.
There is no direct relationship between strategic planning and the planning done by the marketing team.
Marketing executives are involved in the strategic planning process as they influence the process by providing important inputs.
QUESTION 43
Chello Inc., a large smartphone manufacturing company, has been selling the world’s cheapest smartphone, Zing. Recently, to increase its sales, Chello reduced the price of the phone even further. The marketing slogan for the Zing series is “The cheapest way to get smart.” Chello Inc. is most likely using a _____ in this scenario.
product diversification strategy
market penetration strategy
product development strategy
market integration strategy
QUESTION 44
When using a cost leadership strategy, a firm is most likely to offer:
a standard, no-frills product.
a highly differentiated product.
a prestige product.
an expensive product of superior design and quality.
QUESTION 45
An organization’s mission statement is described as not ruling out any opportunity management might wish to pursue. This mission statement is most likely to be _____.
too distinctive
incomplete
too broad
too specific
QUESTION 46
Which of the following statements is true according to the model developed by Michael Porter for formulating organizational strategy?
Firms should first analyze their industry and then develop a cost leadership strategy or a strategy based on differentiation.
Firms should first analyze their market and then develop a strategy based on association.
Firms should develop alternative portfolio models to incorporate information about market opportunities and competitive positions.
Firms must continually strive to be the cost follower in the industry or market segment they compete in.
QUESTION 47
When completed, an effective mission statement will be primarily focused on the:
markets rather than the products.
internal problems of the organization.
product that the organization is offering.
narrow class of employee needs.
QUESTION 48
Winter Head is a firm that manufactures woolen blankets. The manufacturer claims that its blankets are made from the softest wool and are so finely stitched that consumers want to include them in their inheritance. The company is proud of its product quality and formulates its mission statement based on it. What is potentially wrong with such a mission statement?
The firm had an external focus.
The firm focused on the market for its high-quality products.
The firm focused on the product rather than on its market.
The firm defined the company in terms of its marketing capabilities.
QUESTION 49
_____ are methods used to determine how resources should be allocated among the various strategic business units (SBUs) in an organization.
Portfolio models
Matrix models
Variable models
Vector models
QUESTION 50
Hilton Brews is a company producing instant mixes for all kinds of beverages. It notices that the market for tea has risen due to its potential health benefits. Therefore, Hilton Brews introduces a new line of organically grown and processed teas like green tea or tea with various herb extracts and additional antioxidants. Which of the following organizational growth strategies has been used by Hilton Brews?
Product development
Diversification
Market penetration
Market development