Question 1

The _________________ process commences at corporate level. Here the organization sets out its overall mission, purpose, and values. a) researching b) strategic planning c) controlling d) managing

Question 2
A statement about what an organization wants to become, which sets out an organization's future, is referred to as: a) mission. b) values. c) organisational goals. d) vision.

Question 3
A statement that sets out what the organization wishes to achieve in the long term is referred to as: a) mission. b) vision. c) values. d) strategic context.

Question 4
Organizational values are important because they: a) help shape mission statements. b) help increase sales. c) help guide behaviour and the recruitment and selection decisions. d) help define market research.

Question 5

Large organizations create ______________, which assume the role of a separate company and create their own strategies and plans in order to achieve their corporate goals and contribution to the overall organization. a) marketing objectives b) strategic business units c) marketing activities d) business development units

Question 6
The Strategic Marketing Planning process consists of a series of logical steps and these steps can be aggregated into four phases. Which of the following is not included in the phases of the strategic marketing planning? a) Defining marketing strategy. b) Setting the right mission and corporate goals. c) Reviewing the current situation. d) Formulating strategy.

Question 7
Which of the following firms has often followed a market challenger (second-mover) strategy? a) Apple Computer. b) eBay. c) Sainsbury's. d) Amazon.com.

Question 8
SWOT is an acronym for: a) strategy, working, opinion, tactical. b) strengths, weaknesses, opportunities, threats. c) strategy, work, openness, toughness. d) strategy, weakness, opinions, tactics.

Question 9

In SWOT analysis, situations where organizations are able to convert weaknesses into strengths and threats into opportunities, are called: a) strategic windows. b) strategic leverage. c) conversion strategies. d) Vulnerability.

Question 10
This is something that at some time in the future may destabilize and/or reduce the potential performance of the organization. a) Threat. b) Strength. c) Weakness. d) Opportunities.

Question 11
________________ is the process that helps managers understand the nature of the industry, the way firms behave competitively within the industry, and how competition is generally undertaken. a) Market needs analysis b) Portfolio analysis c) Strategic market analysis d) Organizational analysis

Question 12
These objectives are often employed in mature markets as firms/products enter a decline phase. The goal is to maximize short-term profits and stimulate a positive cash flow. a) Harvest objectives. b) Divest objectives. c) Hold objectives. d) Growth objectives.

Question 13

Which of the following is not the condition necessary for the achievement of sustainable competitive advantage (SCA)? a) The perceived difference results from cheaper price. b) The customer consistently perceives a positive difference between the products and services offered by a company and its competitors. c) The perceived difference results from the company's relatively greater capability. d) The perceived difference persists for a reasonable period of time.

Question 14
These objectives are often the most suitable when firms operate in a market dominated by a major competitor and where their financial resources are limited. a) Niche objectives. b) Hold objectives. c) Harvest objectives. d) Divest objectives.

Question 15
This type of growth refers to concentrating activities on markets and/or products that are familiar. a) Diversification. b) Condensive. c) Integrative. d) Intensive.

Question 16
An organization can offer standard products at acceptable levels of quality, yet still generate above-average profit margin by adopting _____________ a) differentiation. b) focus strategy. c) cost leadership. d) market follower strategy.

Question 17

___________ are about organizations seeking gaps in broad market segments or finding gaps in competitors' product ranges. a) Market niche strategies b) Differentiation c) Cost leadership d) Focus strategies

Question 18
These products and brands can shape the nature of competition in the market, set out standards relating to price, quality, speed of innovation, communications, as well as influencing the key distribution channels. This market positioning is called:. a) market challenger b) market leader c) market follower d) market nicher

Question 19
Diversification is best described as which of the following? a) Existing products in new markets. b) Existing products in existing markets. c) New products for new markets. d) New products for existing markets.

Question 20
Key performance indicators, which companies set and measure their progress towards in order to determine whether or not they have improved or maintained their performance over a given period of time, are referred to as: a) marketing implementation. b) marketing programmes. c) budgetting. d) marketing metrics. The _________________ process commences at corporate level. Here the organization sets out its overall mission, purpose, and values.

You did not answer the question. Correct answer: b) strategic planning Feedback: The strategic planning process commences at corporate level. Here the organization sets out its overall mission, purpose, and values. These are then converted into measurable goals that apply to the whole organization. Then, depending upon the size of the organization, the range of businesses (SBUs) and/or products, the resources allocated to help and support each one are determined. Each business and/or product develops detailed functional and competitive strategies and plans, such as a marketing strategy and plan. Page reference: 159

Question 2
A statement about what an organization wants to become, which sets out an organization's future, is referred to as: You did not answer the question. Correct answer: d) vision. Feedback: The vision sets out an organization's future. A vision is a statement about what an organization wants to become. It should give shape and direction to an organization's future. A vision should stretch an organization in terms of its current position and performance yet at the same time it should help employees feel involved and motivated to be part of the organization's future. Page reference: 129

Question 3
A statement that sets out what the organization wishes to achieve in the long term is referred to as: You did not answer the question. Correct answer: a) mission. Feedback:

The mission represents what the organization wishes to achieve in the long term. It should be a broad statement of intention as it sets out an organization's purpose and direction. It should be oriented to particular markets and customers served. A mission applies to all parts of an organization and in that sense serves to bind the many parts of an organization together. Page reference: 130

Question 4
Organizational values are important because they: You did not answer the question. Correct answer: c) help guide behaviour and the recruitment and selection decisions. Feedback: Organizational values are important because they can help to guide and constrain not only behaviour but also the recruitment and selection decisions. Without them individuals tend to pursue behaviours that are in line with their own individual value systems, which may lead to inappropriate behaviours and a failure to achieve the overall goals. Page reference: 131

Question 5
Large organizations create ______________, which assume the role of a separate company and create their own strategies and plans in order to achieve their corporate goals and contribution to the overall organization. You did not answer the question. Correct answer: b) strategic business units Feedback: In some very large organizations the planning process is made complicated and difficult because the organization operates in a number of significantly different markets. In these cases the organization creates strategic business units or SBUs. Each SBU assumes the role of a separate company and creates its own strategies and plans in order to achieve its corporate goals and contribution to the overall organization. Page reference: 133

Question 6

The Strategic Marketing Planning process consists of a series of logical steps and these steps can be aggregated into four phases. Which of the following is not included in the phases of the strategic marketing planning? You did not answer the question. Correct answer: a) Defining marketing strategy. Feedback: The Strategic Marketing Planning process consists of a series of logical steps that have to be worked through in order to arrive at a marketing plan. These steps can be aggregated into four phases. The first phase is concerned with setting the right mission and corporate goals. The second involves reviewing the current situation or context in which the organisation is operating. The third phase is used to formulate strategy and the final phase considers the allocation of resources necessary to implement and monitor the plan. Page reference: 133

Question 7
Which of the following firms has often followed a market challenger (second-mover) strategy? You did not answer the question. Correct answer: c) Sainsbury's. Feedback: Products that aspire to the leadership position are referred to as market challengers. These may be positioned as number two, three, or even four in the market. They actively seek market share and use aggressive strategies to take share from all of their rivals. For example, Sainsbury's and ASDA are the two main market challengers in the UK supermarket sector. Page reference: 149

Question 8
SWOT is an acronym for: You did not answer the question. Correct answer: b) strengths, weaknesses, opportunities, threats. Feedback:

The most common analytical tool is SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Essentially it is a series of checklists derived from the marketing audit and the PESTLE analysis, and is presented as internal strengths and weaknesses, and external opportunities or threats. Page reference: 139

Question 9
In SWOT analysis, situations where organizations are able to convert weaknesses into strengths and threats into opportunities, are called: You did not answer the question. Correct answer: c) conversion strategies. Feedback: SWOT analysis is a tool used to determine an overall view of an organization's strategic position. It highlights the need for a strategy to produce a strong fit between the internal capability (strengths and weaknesses) and the external situation (opportunities and threats). SWOT helps to sort through the information generated in the audit, it serves to identify the key issues, and then prompts thought about converting weaknesses into strengths and threats into opportunities, in other words generating conversion strategies. Page reference: 140

Question 10
This is something that at some time in the future may destabilize and/or reduce the potential performance of the organization. You did not answer the question. Correct answer: a) Threat. Feedback: A threat is something that at some time in the future may destabilize and/or reduce the potential performance of the organization. Page reference: 140

Question 11
________________ is the process that helps managers understand the nature of the industry, the way firms behave competitively within the industry, and how competition is generally undertaken.

You did not answer the question. Correct answer: c) Strategic market analysis Feedback: The purpose of strategic market analysis is to help managers understand the nature of the industry, the way firms behave competitively within the industry, and how competition is generally undertaken. From this information it becomes easier to determine exactly what the marketing strategy should actually achieve; in other words, what the strategic marketing goals should be. Page reference: 141

Question 12
These objectives are often employed in mature markets as firms/products enter a decline phase. The goal is to maximize short-term profits and stimulate a positive cash flow. You did not answer the question. Correct answer: a) Harvest objectives. Feedback: Harvesting objectives are often employed in mature markets as firms/products enter a decline phase. The goal is to maximize short-term profits and stimulate a positive cash flow. Page reference: 143

Question 13
Which of the following is not the condition necessary for the achievement of sustainable competitive advantage (SCA)? You did not answer the question. Correct answer: a) The perceived difference results from cheaper price. Feedback: The conditions necessary for the achievement of sustainable competitive advantage (SCA) are, according to Porter, as follows: 1. The customer consistently perceives a positive difference between the products and services offered by a company and its competitors. 2. The perceived difference results from the company's relatively greater capability.

3. The perceived difference persists for a reasonable period of time. SCA is only durable as long as it is not easily imitated. Page reference: 146-147

Question 14
These objectives are often the most suitable when firms operate in a market dominated by a major competitor and where their financial resources are limited. You did not answer the question. Correct answer: a) Niche objectives. Feedback: Niche objectives are often the most suitable when firms operate in a market dominated by a major competitor and where their financial resources are limited. A niche can either be a small segment or even a small part of a segment. Niche markets often arise because it is not economic for the leading competitors to enter this segment simply because these customers have special needs and the leading firm does not want to devote resources in this way. Page reference: 141

Question 15
This type of growth refers to concentrating activities on markets and/or products that are familiar. You did not answer the question. Correct answer: d) Intensive. Feedback: Growth can be intensive, by concentrating activities on markets and/or products that are familiar. Page reference: 143

Question 16
An organization can offer standard products at acceptable levels of quality, yet still generate above-average profit margin by adopting _____________ You did not answer the question. Correct answer:

c) cost leadership. Feedback: By having the lowest cost structure, an organization can offer standard products at acceptable levels of quality, yet still generate above-average profit margins. If attacked by a competitor using lower prices, the low-cost leader has a far bigger cushion than its competitors. It should be appreciated that charging a lower price than its rivals is not the critical point. The competitive advantage is derived from how the organization exploits its cost/price ratio. Page reference: 147

Question 17
___________ are about organizations seeking gaps in broad market segments or finding gaps in competitors' product ranges. You did not answer the question. Correct answer: d) Focus strategies Feedback: Focus strategies are about organizations seeking gaps in broad market segments or finding gaps in competitors' product ranges. In other words, focus strategies are about seeking out unfulfilled market needs. The focused operator then concentrates all value chain activities on a narrow range of products and services in order that they are generated in an effective way. Page reference: 147

Question 18
These products and brands can shape the nature of competition in the market, set out standards relating to price, quality, speed of innovation, communications, as well as influencing the key distribution channels. This market positioning is called:. You did not answer the question. Correct answer: b) market leader Feedback: The market leader has the single largest share of the market. Market leadership is important as it is these products and brands that can shape the nature of competition in the market, set out standards relating to price, quality, speed of innovation, communications, as well as influencing the key distribution channels. For example, Tesco was an ordinary mid-ranking supermarket in the 1980s but has since grown to become the leading UK supermarket. Page reference: 149

Question 19
Diversification is best described as which of the following? You did not answer the question. Correct answer: c) New products for new markets. Feedback: Growth by diversification refers to developments outside the current chain of value-adding activities. This type of growth brings new value chain activities because the firm is operating with new products and in new markets. Page reference: 143

Question 20
Key performance indicators, which companies set and measure their progress towards in order to determine whether or not they have improved or maintained their performance over a given period of time, are referred to as: You did not answer the question. Correct answer: d) marketing metrics. Feedback: There is increasing recognition of the importance of using marketing metrics in the control mechanism of the implementation phase of a marketing programme. Many companies now use some variant of the balanced scorecard (Kaplan and Norton, 1992). Recent research has highlighted widespread use of marketing metrics in firms including metrics in the following areas: profit/profitability; sales, value, and volume; gross margin; awareness; market share; number of new products; relative price; number of customer complaints; consumer satisfaction; distribution/availability; total number of customers; marketing spend; perceived quality/esteem; loyalty/retention; and relative perceived quality (Ambler, et al. 2004). Page reference: 160