353 chapter 7

The _____ for an organization assembles all the pertinent facts about the organization, the markets it
serves, and its products, services, customers, and competition. A. vision
B. marketing plan
C. advertising plan
D. marketing mix
E. competitive strategy
B. marketing plan
The written marketing plan must reflect the goals of top management and:

A. align with the company’s mission and capabilities.
B. be approved by all stakeholders of the company.
C. be benchmarked against others in competing industries.
D. must emphasize the development of transactional relationships.
E. begin with a situation analysis that identifies the product’s strengths.

A. align with the company’s mission and capabilities.
What is the first step in the traditional top-down marketing plan?

A. Developing marketing tactics
B. Forming a marketing strategy
C. Conducting a situation analysis
D. Evaluating potential marketing objectives
E. Establishing beneficial advertising objectives

C. Conducting a situation analysis
The most common format used to develop a marketing plan is the _____ plan.
A. hierarchical
B. IMC
C. bottom-up
D. top-down
E. functional
D. top-down
Desert Knight Golf Resort has just completed a detailed, factual study of the resort’s strengths and
weaknesses as well as external threats and opportunities. The resort’s next step in the development of a marketing plan is to:

A. decide which advertising media will best reach its target markets.
B. determine specific marketing objectives.
C. evaluate potential marketing objectives.
D. establish advertising strategy.
E. design marketing tactics.

B. determine specific marketing objectives.
Baxter International is the world’s largest manufacturer of IV solutions in flexible containers. Which of the following would most likely reveal relevant facts about the firm’s history, growth, and market share?
A. Situation analysis
B. BCBG matrix
C. Market survey
D. Product audit
E. SWOT analysis
A. Situation analysis
After decades of fabulous growth, the trade show industry is experiencing business decline. A report
by the National Trade Show Industry stated, “The trade show industry will face more competition for marketing dollars in the next five years than it has in the last 25 years.” This statement is best described as a(n) _____.
A. situation analysis
B. external market analysis
C. market survey
D. product audit
E. stakeholder audit
A. situation analysis
Which of the following states how a firm is going to accomplish its marketing objectives?
A. SWOT analysis
B. Situation analysis
C. Stakeholder analysis
D. Marketing strategy
E. Marketing mix
D. Marketing strategy
Pyramid Breweries Co. has stated that partnering with committed wholesalers capable of delivering first class customer service is an important _____ objective for the company if the microbrewery is to maintain its reputation for customer satisfaction.
A. corporate
B. entrepreneurial
C. advertising
D. logistical
E. stakeholder
A. corporate
_____ objectives can be stated in terms of profit, return on investment, net worth, growth, or corporate
reputation.
A. Environmental
B. Functional
C. Corporate
D. Operational
E. Entrepreneurial
C. Corporate
Within a timeframe of five to seven years Orco Construction Supply, a regional distributor of tools
and hardware to framing and foundation contractor markets, plans to hit a revenue mark of $500 million which will more than double its 2010 gross sales. This would be an example of a(n) _____ objective.
A. sales-target
B. target market
C. need-satisfying
D. market tracking
E. environmental
A. sales-target
_____ objectives can be categorized as either general need-satisfying objectives or specific sales- target objectives.
A. Environmental
B. Functional
C. Corporate
D. Marketing
E. Entrepreneurial
D. Marketing
Why would a company set need-satisfying objectives?
A. To modify the hierarchical structure from transformational to transactional
B. To shift the organization’s focus from production to the target market
C. To take advantage of a consumer-oriented economic trend
D. To provide equity to every stakeholder of the firm
E. To stir demand in a static environment
B. To shift the organization’s focus from production to the target market
Harry & David is a catalog retailer that specializes in fruit gifts, but it does not see itself as just a merchant of fruit. By setting _____ objectives, the retailer views itself as a gift provider and acts
accordingly.
A. need-satisfying
B. sales-driven
C. sales-target
D. production-oriented
E. environmental
A. need-satisfying
Assume a bakery that wholesales gourmet pies and cakes to upscale restaurant chains has developed marketing objectives. Which of the following is the BEST sales-target objective for the bakery to use?

A. To increase cheesecake sales to the point where demand exceeds supply every week
B. To increase sales of pecan pies by 3 percent during the next six months
C. To raise net profit by 50 percent during the next three weeks
D. To have most of the staff attend a marketing seminar
E. To build a Web site that attracts new customers

B. To increase sales of pecan pies by 3 percent during the next six months
In February 2012, Light Full Foods Inc. in San Francisco developed Light Full Satiety Smoothies,
which are shelf-stable, all-natural, dairy-based smoothies for adult women. Adult women are the smoothie manufacturer’s:
A. marketing mix.
B. advertising mix.
C. product concept.
D. segmentation variable.
E. target market.
E. target market.
Which of the following best describes the target market of Mountain Dew?
A. Young, health-conscious women
B. Mature, professional males
C. Young, active adult males
D. Pre-teen children
E. Latino women
C. Young, active adult males
Silly Putty has been around for years as a gag gift sold in specialty stores. It has always avoided direct confrontation with other toy companies by finding a market that was small enough to defend and never really acting like a market leader. Which of the following strategies has Silly Putty most likely followed?
A. Aggressive
B. Flanking
C. Defensive
D. Circumventing
E. Guerrilla
E. Guerrilla
As the leading manufacturer of bleach in the nation, Clorox must guard itself against challenges from
detergent manufacturers who are using bleach as a detergent additive. According to Jack Trout and Al Reis’s Marketing Warfare, which type of strategy should Clorox use?
A. Protective
B. Aggressive
C. Defensive
D. Offensive
E. Guerrilla
C. Defensive
Hops Grillhouse & Brewery, formerly known as Hops Restaurant/Bar/Brewery, unveiled a multimillion dollar brand strategy featuring a new menu intended to “capture consumer preferences for high quality, freshness, and grilled tastes as well as an array of aromas, textures, and price points.” Its product mix of handcrafted beer and superior food is unlike that offered by other similar restaurant chain and describes its _____ strategy.
A. segmentation design
B. positioning
C. market segmentation
D. marketing mix
E. diversification
B. positioning
_____ refers to the place a brand occupies competitively in the minds of consumers.
A. Product segmentation
B. Product placement
C. Positioning
D. The perceptual pyramid
E. The strategic map
C. Positioning
Clos du Bois wine pursues an advertising campaign targeting the gay and lesbian community that
has been remarkably successful. Its ad in gay publications features a wine cork emblazoned with the Gay Pride rainbow—an instantly recognizable symbol in the gay community. What approach to positioning is the winery using?
A. Cultural symbol
B. Product class
C. Product user
D. Marketing mix
E. Price/quality
C. Product user
Starbucks expanded from bottled Frappuccino to two canned products—Doubleshot and Starbucks Iced Coffee. While all are coffee-based products, each has a slightly different consumer base. Doubleshot is advertised as a morning beverage, Frappuccino, an afternoon treat, and Starbucks Iced Coffee as an all-day product. What approach to positioning is Starbucks most likely using?

A. Cultural symbol
B. Product class
C. Use/application
D. Product competitor
E. Price/quality

C. Use/application
besides its signature product, the My-Tee T-shirt Company makes a line of skirts, shoes, tank tops,
and accessories that retail from $32 to $78. Publicists and buyers browse My-Tee’s online and storefront showrooms for the latest trends and clothing lines. The company’s promotional strategy relies on publicity. Celebrities have been photographed in My-Tee clothing, which helped the company earn $1 million in sales last year. This is a brief description of My-Tee’s:
A. advertising mix.
B. marketing mix.
C. marketing objectives.
D. organizational strategy.
E. product differentiation.
B. marketing mix.
_____ determine the specific short-term actions to be taken, internally and externally, by whom and when.
A. Corporate objectives
B. Tactics
C. Organizational structures
D. Environmental objectives
E. Strategic postures
B. Tactics
Randall Grahm, the owner of Bonny Doon Vineyards, made a name for his wines by injecting an
irreverent sense of humor into everything associated with the winery. One of the _____ he used was to host a black mask dinner this fall to celebrate “the death of wine corks” when his company decided to use screw tops.
A. marketing objectives
B. control mechanisms
C. action programs
D. strategic postures
E. organizational structures
C. action programs
When the owner of the Baskin-Robbins brand name decided to re-invigorate the brand, the firm
used several different _____ including creating a launch kit for its brokers and distributors. The kit contained sell sheets, samples, a media kit, and gift items, such as a branded memory stick and an ice cream scoop to help “Scoop Up Sales!”
A. marketing objectives
B. creative mechanisms
C. tactics
D. strategic postures
E. organizational positions
C. tactics
Smaller companies typically use a bottom-up marketing format plan because:
A. handling daily problems leaves little time for formal planning.
B. they don’t need to create a competitive advantage in the market.
C. long-term strategies are needed to keep a business focused on the future.
D. failure to have a mission is one of the major reasons for small-business failure.
E. bottom-up planning allows more time for development of a customer relationship strategy.
A. handling daily problems leaves little time for formal planning.
The development of _____ marketing requires marketers to focus on ingenious tactics first and then
develop tactics into a strategies.
A. relationship
B. transformational
C. bottom-up
D. transactional
E. top-down
C. bottom-up
_____ involves creating, maintaining, and enhancing long-term relationships with customers that
result in exchanges of information.

A. Market exchange
B. Strategic collaboration
C. Relationship marketing
D. Creative partnering
E. Transactional marketing

C. Relationship marketing
_____ is the ratio of perceived benefits to the price of the product.

A. Net worth
B. Contribution margin C. ROI
D. Retained earning
E. Value

E. Value
Clos du Bois wine pursues an advertising campaign that targets the gay and lesbian community. Its ad
in gay publications features a wine cork emblazoned with the Gay Pride rainbow. Gay publications are examples of _____ for Clos du Bois wine.
A. reference groups
B. target audiences
C. target markets
D. stakeholders
E. environmental curators
D. stakeholders
When the owner of the Baskin-Robbins brand name decided to re-invigorate the brand, the firm
created a launch kit for its brokers and distributors. Its brokers and distributors are examples of: A. reference groups.
B. target audiences.
C. target markets.
D. stakeholders.
E. environmental curators.
D. stakeholders.
Roy Harold purchased a new washer/dryer for his apartment. Shortly after the appliances had been installed, a store representative called Harold and asked if he was satisfied with the washer/dryer and the installation. The store representative also asked Harold to call if he had any further needs. This is most likely an example of which relationship level?
A. Reactive relationship
B. Basic transactional relationship
C. Accountable relationship
D. Proactive relationship
E. Partnership
C. Accountable relationship
Kotler and Armstrong have identified five levels of relationships that can be formed between a
company and its various stakeholders. Charlotte purchased a book on how to crochet from a Web site. After purchasing the book, she was pleased to receive regular e-mails from the site offering her other products that she might be interested in. The e-mails also tell her about current trends in yarn and offer troubleshooting advice as well as free patterns. The relationship between Charlotte and the Web site is at what level?

A. Reactive relationship
B. Basic transactional relationship
C. Accountable relationship
D. Proactive relationship
E. Partnership

D. Proactive relationship
Eby-Brown, a large distributor of candies and snacks to convenience stores in the eastern U.S., describes itself as “a service-oriented company.” Its corporate guidelines state, “Without our customers, we don’t exist as an organization. So our priority in life is to make sure that our customers are happy, that we’re taking good care of them, and addressing their needs.” What type of relationship does Eby-Brown most likely strive to maintain with its customers?
A. Reactive relationship
B. Basic transactional relationship
C. Accountable relationship
D. Proactive relationship
E. Partnership
E. Partnership
A full-page ad that Dell ran in Fortune magazine about the firm’s latest laptop is an example of which
type of company/brand-related message being sent to company stakeholders?

A. Planned
B. Inadvertent
C. Unplanned
D. Product E. Service

A. Planned
The price of a bottle of Chivas Regal Scotch, the use of UPS by Lands’ End, and the workmanship
found in a well-crafted wicker rocking chair are all examples of which type of company/brand-related messages that are sent to company stakeholders?

A. Planned
B. Functional
C. Unplanned
D. Product
E. Service

D. Product
Because drugstore chains realize that nearly three-fourths of the visitors to a drugstore are there just to pick up a prescription, drugstores have found it profitable to stock a variety of products that have typically been found in supermarkets and convenience stores. Stakeholders receive a(n) _____ message when they go to a drugstore to pick up a prescription and are able to buy milk and bread without having to go to another store.

A. planned
B. functional
C. unplanned
D. product
E. service

D. product
Jerome stopped at Brewster’s and purchased a chocolate ice cream cone. As he was exiting the store,
the cone developed a leak and dripped ice cream all over his expensive suit. At that point, he swore to never buy Brewster’s ice cream ever again. In terms of the messages that stakeholders receive, Jerome received a(n) _____ message.

A. planned
B. functional
C. unplanned
D. product
E. service

C. unplanned
Which type of brand message is exemplified by negative posts on a company’s Facebook page?

A. Planned
B. Functional
C. Unplanned
D. Product
E. Service

C. Unplanned
What should be the advertising manager’s first step when asked to develop an advertising plan?

A. Selecting the target audience
B. Developing marketing objectives
C. Determining the most cost-effective media
D. Establishing an advertising budget
E. Reviewing the company’s marketing plan

E. Reviewing the company’s marketing plan
Mood-lites are colored light bulbs that were developed according to research on how colors affect
moods. According to the advertising pyramid, the first task of the initial advertising for Mood-lites was to create:

A. awareness.
B. action.
C. conviction.
D. brand loyalty.
E. intent to buy.

A. awareness.
According to the advertising pyramid, the second task of advertising is to:

A. communicate enough product information to persuade a certain number of people to believe in its
value.
B. measure the quantitative objectives in the marketing plan.
C. acquaint a portion of the market with a product’s existence.
D. persuade customers to buy larger sizes or multiple units.
E. accelerate sales by implementing a variety of sales promotions.

A. communicate enough product information to persuade a certain number of people to believe in its
Mycogen Seeds has announced details of its Over-the-Top program for 2014. This unique program offers cash rebates to customers who purchase both Mycogen brand products and any of 16 selected crop protection products from Dow AgroSciences. According to the advertising pyramid, the purpose of this rebate is to encourage:

A. conviction.
B. comprehension.
C. brand loyalty.
D. action.
E. awareness.

D. action.
71. The two sub-strategies of the advertising strategy are the:
A. stakeholder strategy and the creative strategy.
B. message strategy and the media strategy.
C. creative strategy and media strategy.
D. planning strategy and the implementation strategy. E. customer-satisfaction strategy and the profit strategy.
C. creative strategy and media strategy.
Which of the following statements about the relationship of advertising to sales and profits is most
likely true?

A. Market share increases are more directly related to marketing budget increases than to price
reductions.
B. In most cases, sales will remain constant even if there are additional advertising investments.
C. There will be no sales for an organization without online advertising.
D. The durability of advertising is long-term rather than short-term.
E. There is no saturation level for advertising.

A. Market share increases are more directly related to marketing budget increases than to price
reductions.
The percentage-of-sales method is:

A. expensive and complicated to implement.
B. the simplest to use of all budgeting methods.
C. based on the average of the previous five years sales.
D. generally linked to future tax audits and investigations.
E. a bold attempt to link advertising dollars with sales objectives.

B. the simplest to use of all budgeting methods.
Mood-lites are colored light bulbs that were developed according to research on how colors
affect moods. In allocating funds for advertising the new light bulbs, the manufacturer decided to budget 5 percent of last year’s sales for advertising expenditures. Which allocation method was the manufacturer using?

A. Percentage-of-sales
B. Self-defense
C. Objective/task
D. Share-of-market/share-of-voice
E. Budget buildup

A. Percentage-of-sales
In the summer of 2002, Kelly Flatley and Brendan Synnott joined forces to launch a homemade granola business out of Flatley’s parents’ home. They had no advertising budget, so they had to find other ways to let consumers know about Bear Naked Granola. The entrepreneurs went door-to-door to small specialty and natural food stores. They also set up tables and tents at community events and 5K charity runs where they gave away samples of their granola. From this information, you can infer that Flatley and Synnott used the _____ method for promoting their product.

A. percentage-of-sales
B. all available funds
C. objective/task
D. share-of-market
E. budget buildup

B. all available funds
The FoldzFlat Pen, which folds in half to the size of a business card, makes a perfect “billboard” on
which to print advertising and company logos. The pen can be shaped into a bookmark, a business card, a race car, or a skateboard. Its manufacturer wants to advertise this new product to people in the specialty products industry. Which method of setting an advertising budget should the firm typically use for this new product?

A. Percentage-of-sales
B. Self-defense
C. Objective/task
D. Share-of-market/share-of-voice
E. Budget buildup

D. Share-of-market/share-of-voice
What is the greatest shortcoming for the percentage-of-sales method of setting the advertising budget?

A. The percentage-of-sales method is too expensive to be used by small business owners.
B.The percentage-of-sales method violates the principle that marketing activities should stimulate
sales rather than occur as a result of sales.
C. The percentage-of-sales method assumes that a certain number of dollars are needed to sell a
certain number of units.
D. The percentage-of-sales method encourages top management to think of growth in terms of
percentages.
E. The percentage-of-sales method assumes the marketplace will be dynamic.

B.The percentage-of-sales method violates the principle that marketing activities should stimulate
A firm that has used the share-of-market/share-of-voice method for allocating advertising funds for a
number of years will most likely have a tendency to:

A. become overly competitive in all marketing activities.
B. rely too heavily on the budget-buildup method.
C. maintain a lower percentage of media exposure than its competitors.
D. be bold in its attempt to link advertising dollars with sales objectives.
E. overreact if competitors increase their advertising budgets.

D. be bold in its attempt to link advertising dollars with sales objectives.
When used to determine how to allocate funds for advertising, the _____ method has three steps—
defining objectives, determining strategy, and estimating cost.

A. unit-of-sales
B. share-of-market/share-of-voice
C. percentage-of-sales
D. percentage-of-profit
E. objective/task

E. objective/task
Which of the following statements about the objective/task method is most likely true?

A. It requires determining in advance the amount of money needed to reach a specific goal.
B. It permits the quick and ready measurement of the success of an ad campaign.
C. It assumes that marketing activities result from demand.
D. It assumes a static external environment.
E. It is rarely used by major advertisers.

A. It requires determining in advance the amount of money needed to reach a specific goal.