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Part 1: Understanding Mar eting Management 63.

The formula, segmentation, targeting, and positioning (STP) is the essence o f strategic mar eting.Answer: TruePage: 37Level of difficulty: Medium64. The Jap anese have extended the value delivery process by adding the concept of zero promotions after five years . Answer: FalsePage: 38Level of difficulty: Medium65. The customer relationship ma nagement process is all the activities involved inreceiving and approving orders , shipping the goods on time, and collecting payment.Answer: FalsePage: 38Level of difficulty: Hard66. A principle of the value chain is that every firm is a sy nthesis of activities performedto design, produce, mar et, deliver, and support its product.Answer: TruePage: 38Level of difficulty: Easy67. Another name for a companys value delivery networ is the intermediary team.Answer: FalsePage: 39Level of difficulty: Medium68. A core competency is usually common among competitors in a given industry.Answer: FalsePage: 39Level of difficulty: Medium69. Holistic mar eting focuses on the integration of value exploration, value creation,and v alue delivery as a means to build long-term relationships with consumers.Answer: TruePage: 40Level of difficulty: Medium70. If a manager as s How can my company identify new value opportunities?, he or she is examining a management question i dentified as being value creation.Answer: FalsePage: 41Level of difficulty: Hard 71. According to McKinsey research, a recommendation to managers and CEOs who ar econcerned about mar eting performance was that mar eters must test and develop programs more quic ly as they enhance planning processes and research approaches .Answer: TruePage: 42Level of difficulty: Medium72. The mar eting plan is the ce ntral instrument for directing and coordinating themar eting effort.Answer: True Page: 43Level of difficulty: Easy73. A mission statement has as its primary focu s the product and how to ma e it.Answer: FalsePage: 44Level of difficulty: Mediu m74. One of the characteristics of a good mission statement is that it has an ex pansivenumber of goals for doing business.Answer: FalsePage: 44Level of difficul ty: Medium44 Chapter 2: Developing Mar eting Strategies and Plans 75. A good illustration of a mar et definition of the business a company is in w ould beWe sell gasoline.Answer: FalsePage: 46Level of difficulty: Medium76. If a c ompany sought to expand the number of existing products sold to its currentmar e ts, it would use an integrative growth strategy labeled as mar et-penetrationstra tegy.Answer: TruePage: 48Level of difficulty: Hard77. If a company sought to grow via a strategy that required the company to see new businesses that have no re lationship to its current technology, products, or mar ets,the company would be using a diversification strategy called a conglomerate strategy. Answer: TruePage: 49Level of difficulty: Medium78. Scenario analysis can be used to assist companies in appraising how well their corporate culture might match (or not match) potential business partners or acquisitions.Answer: TruePage: 51L evel of difficulty: Medium79. Once an organization has established a business mi ssion in its business unit strategic- planning process, it may proceed to the se cond step of the planning process called goal formulation. Answer: FalsePage: 51Level of difficulty: Medium80. Good illustrations of microenvironment actors in the strategic planning process would be demographics, technology, and the soc ial-cultural arena.Answer: FalsePage: 52Level of difficulty: Hard81. To evaluate opportunities, companies can use Mar et Opportunity Analysis (MOA)to determine the attractiveness and probability of success.Answer: TruePage: 53Level of diffi culty: Easy82. An environmental threat is a challenge posed by an unfavorable tr end or developmentthat would lead, in the absence of defensive mar eting action, to lower sales or profit.Answer: TruePage: 53Level of difficulty: Medium83. Onc

e a SWOT analysis has been completed, the strategic planner is ready to proceedt o the goal formulation stage of the strategic planning process model.Answer: Tru ePage: 54Level of difficulty: Medium84. In applying MBO (management by objective s) all objectives are treated as beingequally importantobjective discrimination i s not allowed.Answer: FalsePage: 54Level of difficulty: Medium45 Part 1: Understanding Mar eting Management 85. For an MBO (management by objectives) system to wor , one of the four criter ia thatthe units objectives must meet is that objectives must be stated quantitat ivelywhenever possible.Answer: TruePage: 55Level of difficulty: Medium86. A stra tegy is a game plan for achieving what the business unit wants to achieve.Answer : TruePage: 56Level of difficulty: Easy87. Firms choosing a generic strategy cen tering on focus must be good at engineering, purchasing, manufacturing, and physical distributio n.Answer: FalsePage: 56Level of difficulty: Hard88. One of the four major catego ries of strategic alliance involves sharing personnel (e.g.,human resource allia nce) to staff alliance member mar eting departments.Answer: FalsePage: 57Level o f difficulty: Medium89. Partner Relationship Management (PRM) can be thought of as a corporationsdevelopment of structures that support strategic alliances and t reats the formation andmanagement of partnerships as a core s ill.Answer: TruePa ge: 57Level of difficulty: Medium90. Companies normally measure their profit per formance using ROI; however, thisapproach suffers because profits are arbitraril y measured and subject to manipulation.Answer: TruePage: 58Level of difficulty: Medium91. A mar eting vision statement is a written document that summarizes what themar eter has learned about the mar etplace and indicates how the firm plans to reachits mar eting objectives.Answe r: FalsePage: 60Level of difficulty: Hard92. Mar eting plans are becoming more p roduction-oriented because of the high costs of doing business in todays economy. Answer: FalsePage: 60Level of difficulty: Medium93. The mar eting plan should op en with a situation analysis.Answer: FalsePage: 60Level of difficulty: Easy94. W hen a manager reaches the mar eting strategy section of a mar eting plan, he or shewill define the mission and mar eting and financial objectives.Answer: TruePa ge: 60Level of difficulty: Medium95. One of the ey questions to as in evaluati ng a mar eting plan is whether the plan issimple or not.Answer: True Page: 61Lev el of difficulty: Medium46 Chapter 2: Developing Mar eting Strategies and Plans 96. Such areas as sales forecasts, expense forecasts, and brea even analysis are usuallyfound in the financial projections section of the mar eting plan.Answer: TruePage: 61Level of difficulty: Easy97. Return on investment (ROI) shows how m any units must be sold monthly to offsetthe monthly fixed costs and average perunit variable costs.Answer: FalsePage: 61Level of difficulty: Medium98. Most mar eting plans conclude with a section that indicates how the plan will beimplemen ted.Answer: TruePage: 61Level of difficulty: Easy99. During the mar eting strate gy section of the mar eting plan, goals and budgets arespelled out for each mont h or quarter so management can review each periodsresults and ta e corrective act ion as needed.Answer: FalsePage: 61Level of difficulty: Medium100. A good illust ration of a mar eting objective would to decrease customer acquisition costs by 1 .5 percent per quarter.Answer: TruePage: 64Level of difficulty: Easy

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