Baines, Fill, & Rosengren: Marketing 4e Chapter 5: Multiple choice questions Instructions Answer the following questions and then press 'Submit' to get your score. 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) organizational 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, these 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) Harvesting objectives. b) Divest objectives. c) Hold objectives. d) Growth objectives. Question 13 Which of the following is not the conditions 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 Attack the market and defend the position are the prime strategies pursued by a firm with ___________ positioning. 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) budgeting. d) marketing metrics.