Chapter 02 - Developing Successful Marketing And Organizational Strategies
Chapter 02
Developing Successful Marketing And Organizational Strategies
Test Item Table by Major Section of the Chapter and Level of Learning
Major Sectionof the Chapter / Level of Learning (LL)
Level 1
Knowledge
(Knows Basic
Terms & Facts) / Level 2
Comprehension
(Understands Concepts & Principles) / Level 3
Application
(Applies Principles)
Can an “A” in an Ice Cream Making Course Really Become a Business?
(pp. 21) / 1 / 2, 3, 4, 5
Today’s Organizations
(pp. 22-27) / 8, 9, 10, 11, 12, 13, 16, 17, 18, 23, 24, 27, 29, 33, 34, 39, 40, 41, 52, 53, 64, 65, 66, 67, 69, 70
172, 173, 175, 176 / 6, 7, 15, 21, 30, 31, 35, 36, 38, 42, 54, 55, 56, 57, 58, 59, 60, 62, 68, 71, 72, 73
170 / 14, 19, 20, 22, 25, 26, 28, 32, 37, 43, 44, 45, 46, 47, 48, 49, 50, 51, 61, 63
171, 174, 177
Setting Strategic Directions
(pp. 28-32) / 74, 79, 83, 84, 85, 86, 87, 88, 109, 115, 121 / 82, 89, 93, 97, 98, 99, 100, 101, 102, 103, 104
178, 179, 180 / 75, 76, 77, 78, 80, 81, 90, 91, 92, 94, 95, 96, 105, 106, 107, 108, 110, 111, 112, 113, 114, 116, 117, 118, 119, 120
The Strategic Marketing Process
(pp.32-38) / 122, 123, 128, 129, 130, 136, 139, 140, 146, 154, 160, 164
184, 186, 189 / 124, 125, 126, 127, 141, 144, 145, 147, 148, 149, 150, 152, 157, 158, 159, 161, 163, 166, 167
181, 182, 187, 188 / 131, 132, 133, 134, 135, 137, 138, 142, 143, 151, 153, 156, 162, 165
183, 185
Video Case: BP
(pp. 41-43) / 168, 169
Appendix A: Building an Effective Marketing Plan
(pp.44-57) / A-1, A-3, A-7 / A-2, A-4, A-5, A-6,
A-8, A-9
A-11 / A-10
A-12
NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
Test Item Table by Learning Objective and Level of Learning
(LO) / Level of Learning (LL)
Level 1
Knowledge
(Knows Basic
Terms & Facts) / Level 2
Comprehension (Understands Concepts & Principles) / Level 3
Application
(Applies Principles)
LO1 Describe the core values, mission, organizational culture, business, and goals of an organization. / 1, 8, 9, 10, 11, 12, 13, 16, 17, 18, 23, 24, 27, 29, 33, 34, 39, 40, 41
172,173
A-1, A-3, A-7 / 2, 3, 4, 5, 6, 7, 15, 21, 30, 31, 33, 36, 38, 42
170
A-2, A-4, A-5, A-6, A-8, A-9 / 14, 19, 20, 22, 25, 26, 28, 32, 37, 43, 44, 45, 46, 47, 48, 49, 50, 51
171, 174
A-10
LO2 Explain why managers use marketing dashboards and marketing metrics to evaluate a marketing program. / 52, 53, 64, 65, 66, 67, 69, 70
175 / 54, 55, 56, 57, 58, 59, 60, 62, 68, 71, 72, 73, 169
176
A-11 / 61, 63
177
LO3 Discuss how an organization assesses where it is now and seeks to be in the future. / 74, 79, 83, 84, 85, 86, 87, 88, 109, 115, 121 / 82, 89, 93, 97, 98, 99, 100, 101, 102, 103, 104, 168
178, 179, 180 / 75, 76, 77, 78, 80, 81, 90, 91, 92, 94, 95, 96, 105, 106, 107, 108, 110, 111, 112, 113, 114, 116, 117, 118, 119, 120
A-12
LO4 Explain the three steps of the planning phase of the strategic marketing process. / 122, 123, 128, 129, 130, 136, 139, 140 / 124, 125, 126, 127, 141, 144, 145
181, 185 / 131, 132, 133, 134, 135, 137, 138, 142, 143
183
LO5 Describe the four components of the implementation phase of the strategic marketing process. / 146, 154, 155
184, 186 / 147, 148, 149, 150, 152, 157
187, 188 / 151, 153, 156
185
LO6 Discuss the two aspects of the evaluation phase of the strategic marketing process. / 160, 164
189 / 158, 159, 161, 163, 166, 167 / 162, 165
NOTE: Bold numbers indicate short essay questions. Underlined numbers indicate visually enhanced questions.
Multiple Choice Questions
1.Ben & Jerry's is primarily a marketer of
A.Woodstock memorabilia.
B.chocolate-chip cookie dough franchises.
C.all natural ice cream.
D.programs to save the Amazon rain forests.
E.ideas and activities to enhance corporate social responsibility.
2.Part of the social mission of Ben and Jerry's is
A.to recognize the central role that business plays in society.
B.to maximize economic development in Burlington, Vermont.
C.to make unusual flavors of ice cream.
D.to maximize return on investment for shareholders.
E.to achieve amicable relations with the U.S. government.
3.In its business, Ben & Jerry's has
A.created economic opportunities for those who have been denied them.
B.minimized its negative impact on the environment.
C.supported sustainable and safe methods of food production.
D.shown a deep respect for human beings.
E.done all of the above.
4.Ben and Jerry's mission statement declares its commitment to incorporating wholesome natural ingredients into its products. An example of action that reflects this commitment is
A.allowing customers to mail order ice cream from the website.
B.contributing 7.5 percent of its pretax profits to philanthropic efforts.
C.purchasing its supplies from socially responsible suppliers.
D.supporting sustainable and safe methods of food production.
E.all of the above.
5.Which of the following statements about Ben and Jerry's is most true?
A.Unilever owns it.
B.Many people but its products to support Ben & Jerry's social mission.
C.It buys all of its milk and cream from one dairy cooperative.
D.It works with nonprofit organizations to give jobs to and train at-risk youth.
E.All of the above are true about Ben and Jerry's.
6.In today's visionary organizations, it is important to recognize
A.the kinds of organizations that exist.
B.the goals of suppliers.
C.how strategy arises based on the company foundations.
D.the importance of lobbyists in all industries.
E.the value of employee education.
7.Today's organizations must be visionary—that is, they must
A.forecast sales accurately.
B.examine the past carefully so as to learn from mistakes.
C.anticipate future events and respond quickly and effectively.
D.frequently hire new employees to get the best new ideas.
E.develop future scenarios for their existing product line.
8.Organizations that develop similar offerings, when grouped together, create a(n)
A.conglomerate.
B.merger.
C.industry.
D.business.
E.acquisition.
9.______is the reward to a business firm for the risk it undertakes in marketing its offerings.
A.Shareholders' equity
B.Profit
C.Inventory turnover
D.Contribution margin
E.Asset leverage
10.Profit is
A.the point at which company assets equal company liabilities.
B.the money left over after a business firm's total expenses are subtracted from its total revenues.
C.the goodwill earned from implementing the societal marketing concept.
D.the money earned when the economic order quantity is maintained.
E.accurately described by all of the above.
11.______is the money left over after a business firm's total expenses are subtracted from its total revenues.
A.Shareholders' equity
B.Profit
C.Inventory turnover
D.Contribution margin
E.Asset leverage
12.A ______is a nongovernmental organization that serves its customers but does not have profit as an organizational goal.
A.business firm
B.community action program
C.nonprofit state agency
D.nonprofit organization
E.cooperative
13.A nongovernmental organization that serves its customers but does not have profit as an organizational goal is called a
A.business firm.
B.nonprofit organization.
C.community action program.
D.manufacturing agent.
E.cooperative.
14.The American Red Cross, a service firm whose goal is that its revenues will equal its costs is a
A.business firm.
B.nonprofit organization.
C.community action program.
D.government agency.
E.cooperative.
15.Which statement best describes the most significant difference between a business firm and a nonprofit organization?
A.Business firms operate with larger budgets than nonprofits.
B.Nonprofit organizations do not carry on economic activities, and business firms do.
C.Nonprofit organizations are concerned with social issues, and business firms are not.
D.Both serve customers, but business firms seek a profit while nonprofit organizations do not.
E.Nonprofit organizations are publicly owned, and business firms are not.
16.______is an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals.
A.Structure
B.A performance plan
C.Organizational conduct
D.Strategy
E.A long-term action plan
17.An organization's ______is its philosophical reason for being.
A.direction
B.strategy
C.goal
D.foundation
E.all of the above
18.An organization's ______are the fundamental, passionate, and enduring principles that guide its conduct over time.
A.core values
B.missions
C.culture
D.goals
E.strategies
19.The "HP Way" signifies to employees the fundamental, passionate, and enduring principles of the company and is an example of Hewlett-Packard's
A.core values.
B.mission.
C.culture.
D.goals.
E.strategy.
20.The Ben & Jerry's website states "Central to the mission of Ben & Jerry's is the belief that all three parts [product mission, economic mission, social mission] must thrive equally in a manner that commands deep respect for individuals in and outside the company and supports the communities of which they are a part." This statement is MOST likely the foundation of Ben & Jerry's
A.financial strategy.
B.financial statements.
C.core values.
D.human resource strategy.
E.global competitive strategy.
21.Which of the following statements about core values is true?
A.Core values are developed by cross-functional teams.
B.Core values motivate customers.
C.Core values change depending on the financial condition of the firm.
D.Core values capture the heart and soul of the firm.
E.Core values do all of the above.
22.Which of the following is a stakeholder in the CBS station that airs the TV sitcom Two and a Half Men?
A.the actors that star in Two and a Half Men
B.the people that provide the sets and the props used in Two and a Half Men
C.the television critics that review Two and a Half Men
D.its television audiences
E.All of the above are stakeholders in the CBS station.
23.Often used interchangeably with "vision" a(n) ______statement frequently has an inspirational theme.
A.point of difference
B.mission
C.business map
D.internal situation analysis
E.foundation
24.By understanding its core values, an organization can take steps to define its ______, a statement of the organization's functions in society, often identifying its customers, markets, products, and technologies.
A.benefit statement
B.business portfolio
C.functional philosophy
D.mission
E.corporate code
25.The ______for Lucent Technologies is "To use our unique capabilities to ensure that our customers thrive, our business grows, and we enrich the personal communications experience for people around the world."
A.benefit statement
B.business statement
C.functional philosophy
D.mission
E.organizational culture
26.The ______for American Red Cross is "The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental Principles of the International Red Cross Movement, will provide relief to victims of disasters and help people prevent, prepare for, and respond to emergencies."
A.benefit statement
B.business statement
C.functional philosophy
D.mission
E.corporate code
27.______refers to a set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization.
A.Corporate philosophy
B.Benefits statement
C.Organizational culture
D.Corporate profile
E.Business edge
28.George Zimmer the CEO of Men's Wearhouse is known to the public as the bearded company pitchman who sells suits and sport coats on TV declaring, "I Guarantee it!" He also says that to be successful, "You've got to have a company that starts with trust and fairness." He aims to keep his employees happy and loyal. His philosophy sets the
A.corporate confirmation.
B.benefits statement.
C.organizational culture.
D.corporate profile.
E.business edge.
29.A(n) ______describes the clear, broad, underlying industry category or market sector of an organization's offering.
A.business
B.culture
C.mission
D.goal
E.strategy
30.In terms of an organization's business, railroads may have lost market share in the 20th century because they most likely
A.were too slow and cumbersome.
B.defined their business too narrowly.
C.defined their business too broadly.
D.priced their services too high.
E.were simply an outmoded form of transportation.
31.In the 19th century, railroads may have let other forms of transportation take business away from them because their definition included only the railroad business, rather than the broader definition of
A.transportation.
B.mail delivery.
C.entertainment.
D.services.
E.wholesaling.
32.Procter and Gamble (P&G) manufactures consumer products, such as Crest toothpaste and the Swiffer mop. But P&G does not see itself as a toothpaste or a mop company. Instead, it sees itself as an innovative company with the goal of solving consumer problems. P&G most likely grew its market share in 70% of its businesses because
A.the Crest and Swiffer brand names carried over to its other products.
B.it invented new products to solve customer problems.
C.it increased advertising for tried and true products.
D.the international demand for Crest toothpaste.
E.it has little competition.
33.An accomplishment of a task to be achieved, often by a specific time is called a
A.plan.
B.procedure.
C.strategy.
D.goal.
E.vision.
34.A firm seeks to maximize its long-run ______, achieving as high a financial return on its investments as possible.
A.profit
B.sales revenue
C.market share
D.quality
E.employee welfare
35.A new company projects that its sales will be greater than its expenses within the first year of operation. This is an example of which type of goal?
A.profit
B.sales revenue
C.market share
D.unit sales
E.quality
36.If profits are acceptable, a firm may elect to ______even though profitability may not be maximized.
A.abandon green marketing
B.decrease employee loyalty
C.maintain or increase market share
D.decrease social responsibility
E.decrease customer satisfaction
37.A small businesswoman was explaining how she was planning for the upcoming holiday season. "We've got to maximize our sales by using increased advertising because profits are adequate at the moment." From this statement, she is most concerned with ______goals.
A.profit
B.sales revenue
C.green marketing
D.social responsibility
E.survival
38.When sales revenue is chosen as an organizational goal, a firm
A.increases sales levels and strives for a constant level of profits.
B.maintains sales levels and strives for maximum profitability.
C.maintains or increases sales levels even though profitability may not be maximized.
D.decreases sales levels but increases profit margins.
E.decreases sales levels and reduces the profit margin.