Chapter 16

Question 1

Who is typically responsible for the final creation and approval of a business unit’s marketing plan?
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A marketing specialist
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A team of marketing specialists
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The Chief Marketing Officer (CMO)
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A marketing analyst

Answer 1

The Chief Marketing Officer (CMO)

Question 2

Which of the following should a marketing plan do?
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Identify customers’ needs and wants
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Focus primarily on the company’s profits
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Only address advertising strategies
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Ignore market research to maintain innovation

Answer 2

Identify customers’ needs and wants

Question 3

For whom is the marketing plan primarily written?
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Customers
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Executives
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Sales force
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Advertising agency

Answer 3

Executives

Question 4

Which section of a marketing plan should provide all the information company executives need to make a decision without reading the rest of the plan?
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The Business Challenge
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The Market
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Executive Summary
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The Budget

Answer 4

Executive Summary

Question 5

Which of the following should be included in the “business challenge” section of a marketing plan?
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Detailed competitor analysis
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A brief description of the offering
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A complete budget breakdown
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Customer testimonials

Answer 5

A brief description of the offering

Question 6

What analysis includes strengths, weaknesses, opportunities, and threats?
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SWOT
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PEST
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RATER
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BCG

Answer 6

SWOT

Question 7

What does PEST analysis include?
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Product, Economy, Social, Technological
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Political, Ethical, Social, Technological
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Political, Economic, Social/Cultural, Technological
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Price, Economical, Social, Technological

Answer 7

Political, Economic, Social/Cultural, Technological

Question 8

.
In which section of the marketing plan would you create a compelling argument as to what you intend to do and why others should invest in the strategy?
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The Market
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The Offering
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The Value Proposition and Strategy
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The Budget

Answer 8

The Value Proposition and Strategy

Question 9

.
What should the communication plan specify?
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Only the advertising strategies
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Only the event strategies
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Only the sponsorship strategies
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How ongoing customer communications will be conducted

Answer 9

How ongoing customer communications will be conducted

Question 10

0.
Which element of the marketing mix is the easiest to change and copy?
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Place
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Product
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Promotion
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Price

Answer 10

Price

Question 11

What should a complete budget section cover?
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All the resources needed for a successful launch
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Only the money needed to launch the new offering
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Only the sales forecasts
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Only the costs for advertising

Answer 11

All the resources needed for a successful launch

Question 12

2.
What should the conclusion of a marketing plan do?
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Introduce new ideas.
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Focus solely on the budget.
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Repeat the highlights of the plan.
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Outline potential risks.

Answer 12

Repeat the highlights of the plan.

Question 13

What is an estimate of how much a company will actually sell?
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Market potential
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Sales forecast
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Budget projection
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Executive summary

Answer 13

Sales forecast

Question 14

What is the maximum total revenue a company hopes to generate from a product or the number of units of it the company can hope to sell?
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Market potential
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Sales potential
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Penetration pricing
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Skimming pricing

Answer 14

Sales potential

Question 15

What does the grocery chain HEB use Waco, Texas for?
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A distribution center.
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A test site for new products.
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A location for their corporate headquarters.
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A site for competitor analysis.

Answer 15

A test site for new products.

Question 16

What can improve the accuracy of forecasts?
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Using only one forecasting method
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Ignoring previous sales data
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Using multiple methods and considering various scenarios
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Relying solely on expert opinions

Answer 16

Using multiple methods and considering various scenarios

Question 17

What is the relationship between two variables where one variable is a direct consequence of the other?
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Correlation
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Causality
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Control
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Fidelity

Answer 17

Causality

Question 18

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What is the ability to manipulate variables, such as how a marketing plan is implemented?
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Statistical control
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Managerial control
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Causality
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Fidelity

Answer 18

Managerial control

Question 19

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What is mathematically removing the influence of a variable on an outcome so as to isolate the cause of a problem?
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Managerial control
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Causality
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Fidelity
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Statistical control

Answer 19

Statistical control

Question 20

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What is the degree to which a plan is implemented as intended?
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Control
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Causality
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Fidelity
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Validity

Answer 20

Fidelity

Question 21

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Which of the following is an examination or snapshot of the state of a company’s marketing strategies as they are actually implemented?
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Marketing Audit
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Fidelity
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Executive Summary
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Marketing Plan

Answer 21

Marketing Audit

Question 22

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According to the marketing consulting company Copernicus, what should a marketing audit assess?
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Only the performance of advertising programs
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Only customer satisfaction scores
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Whether the marketing plan achieved its stated financial goals
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Key factors that impacted the business for good or for bad during the past year, customer satisfaction scores, and whether the marketing program was marketed internally

Answer 22

Key factors that impacted the business for good or for bad during the past year, customer satisfaction scores, and whether the marketing program was marketed internally

Question 23

1.
A marketing team at Rockwell International is tasked with creating a marketing plan for its military avionics division. Which of the following statements best describes the team’s responsibilities?
a) The team should create a marketing plan that aligns with all of Rockwell International’s business areas.
b) The team should create a marketing plan specific to the military avionics division, separate from other divisions.
c) The team should focus on telecommunications, as it is a more profitable industry than military avionics.
d) The team should create a general marketing plan applicable to both military avionics and telecommunications divisions.

Answer 23

b) The team should create a marketing plan specific to the military avionics division, separate from other divisions

Question 24

2.
Progresso Soups is developing a marketing plan. They identify three potential customer segments: office workers, retired couples, and busy young families. According to the sources, which of the following steps should Progresso take next?
a) Develop a single marketing strategy that appeals to all three segments equally.
b) Prioritise the segments based on importance and tailor marketing strategies to each segment’s specific needs.
c) Discard the segments and focus on mass marketing to reach a broader audience.
d) Select only one segment to focus on to maximise marketing efficiency.

Answer 24

b) Prioritise the segments based on importance and tailor marketing strategies to each segment’s specific needs

Question 25

3. A company is launching a new product and needs to persuade executives and stakeholders to invest in the marketing plan. Which section of the marketing plan should primarily address this concern? a) The "Customers" section, detailing the target market. b) The "Business Climate" section, outlining the external environment. c) The "Business Challenge" section, explaining the value proposition and why the investment is needed. d) The "Budget" section, providing a detailed breakdown of costs.

Answer 25

c) The "Business Challenge" section, explaining the value proposition and why the investment is needed

Question 26

A marketing executive observes a drop in sales and suspects it is due to a competitor's lower pricing. However, they are unsure if this is the only factor. What should the executive do to determine the actual cause of the sales decline? a) Immediately lower their product's price to match the competitor. b) Disregard the competitor's pricing and focus on improving product quality. c) Research potential causes, such as seasonal factors or changes in customer preferences, and verify if lower prices led to the sales decline. d) Implement a new advertising campaign to boost sales regardless of the cause of the decline.

Answer 26

c) Research potential causes, such as seasonal factors or changes in customer preferences, and verify if lower prices led to the sales decline

Question 27

5. A company implements a marketing plan, but the results are not as expected. Which of the following factors should be evaluated to understand why the plan did not achieve its goals? a) Only the financial performance of the marketing plan. b) Only whether the plan was implemented as intended (fidelity). c) Whether the plan met customer needs, the defensibility of the competitive advantage, and the performance of marketing programs. d) Only the satisfaction levels of distributors and retailers.

Answer 27

c) Whether the plan met customer needs, the defensibility of the competitive advantage, and the performance of marketing programs.

Question 28

HEB, a grocery chain, uses Waco, Texas, as a test market and has a loyalty program to collect customer data. When HEB wants to test market a new product, they do it in Waco, where individual customer data can be combined with sales data. What does testing in Waco tell HEB? a) Testing in Waco shows HEB who is likely to buy competitor's products b) Testing in Waco shows HEB who is unlikely to buy the product and at what price c) Testing in Waco tells HEB who is likely to buy the product regardless of price d) Testing in Waco tells HEB who is likely to buy the product and at what price, information that makes extrapolating to their larger market more accurate

Answer 28

d) Testing in Waco tells HEB who is likely to buy the product and at what price, information that makes extrapolating to their larger market more accurate

Question 29

A marketing plan includes scenario planning. What is the purpose of scenario planning in a marketing plan? a) To create a single, definitive forecast of future sales b) To consider multiple possibilities if conditions change and detail what should happen under those scenarios c) To focus solely on the most likely outcome and ignore other possibilities d) To avoid making any predictions about the future

Answer 29

b) To consider multiple possibilities if conditions change and detail what should happen under those scenarios

Question 30

. What should a complete budget section cover in the marketing plan? a) Just the money needed to launch the new offering b) Only the costs associated with maintaining inventory c) Only the projections and allowances for products that will be returned d) All the resources, such as new personnel, new equipment, new locations, and so forth, for the launch to be a success

Answer 30

d) All the resources, such as new personnel, new equipment, new locations, and so forth, for the launch to be a success

Question 31

Konica Minolta places a heavy emphasis on improving the accuracy of its sales force composites. What is the primary reason for this emphasis? a) To encourage salespeople to be more optimistic in their sales estimates. b) To reduce the amount of time customers have to wait for product deliveries. c) To avoid the high costs associated with both underestimated and overestimated forecasts. d) To ensure that management is aware of new products and promotions before the general public.

Answer 31

c) To avoid the high costs associated with both underestimated and overestimated forecasts

Question 32

A small retail chain is creating a SWOT analysis. Which of the following approaches would contribute to a better SWOT analysis? a) Focusing only on the chain's regional operating area to identify strengths and weaknesses. b) Ignoring long-term trends to concentrate on immediate challenges and opportunities. c) Being dishonest about the company's weaknesses to present a more positive outlook. d) Looking beyond its regional operating area in order to understand larger trends that may impact the stores.

Answer 32

d) Looking beyond its regional operating area in order to understand larger trends that may impact the stores

Question 33

. A company is launching a new offering and wants to ensure that customers receive the support they need to fully utilize the product's value. What aspect of the offering should the company focus on? a) Minimising the total cost of ownership for the customer. b) Maximising the number of features included in the product. c) Providing comprehensive presales and postsales support, including training and communication channels. d) Focusing solely on the technical aspects of the product.

Answer 33

c) Providing comprehensive presales and postsales support, including training and communication channels

Question 34

Which of the following statements best describes the role of a marketing analyst in the creation and implementation of a marketing plan? a) Marketing analysts are temporary members of the marketing team who are only involved in specific projects. b) Marketing analysts are permanent members of the CMO’s staff, constantly updating marketing information. c) Marketing analysts are primarily responsible for approving the final marketing plan. d) Marketing analysts are only involved in the implementation phase of the marketing plan.

Answer 34

b) Marketing analysts are permanent members of the CMO’s staff, constantly updating marketing information

Question 35

Which of the following is the most important part of a marketing plan? a) budget b) distribution c) business climate d) understanding causality

Answer 35

d) understanding causality

Question 36

A marketing team at a small business has decided that the sampling method is to ask every tenth customer that walks through the door to participate in a survey regarding the business's customer service. What kind of sampling is being used? a) probability sampling b) non-probability sampling c) reliability sampling d) fidelity sampling

Answer 36

b) non-probability sampling

Question 37

A business introduces a new product, but demand is underestimated and some customers turn to a competitor because they are able to deliver faster. Which forecasting method is most likely to blame? a) channel surveys b) customer surveys c) time series data d) sales force composite

Answer 37

d) sales force composite