Test Bank for Marketing Planning and Strategy 1st Edition by Jain

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Jain

1. The first and most widely used approach to marketing decision making is the
marketing systems approach.

ANS: F PTS: DIF: TOP: Introduction to chapter 1 RAT: It is the

marketing concept approach.

2. The guiding force behind decision making should be the strategic planning process.

ANS: T PTS: DIF: TOP: Introduction to chapter 1

3. Decentralised planning was characteristic of the 1960s.

ANS: T PTS: DIF: TOP: Introduction to chapter 1

4. Contemporary environments are characterised by dynamism.

ANS: T PTS: DIF: TOP: Introduction to chapter 1

5. Planning is essentially a process directed toward making today’s decision with

tomorrow in mind and a means of preparing for future decisions so that they may be
made more rapidly, economically and with as little disruption to the business as
possible.

ANS: T PTS: DIF: TOP: Concept of planning

6. The emphasis has shifted from planning as a basis of all an organisation’s efforts
and decisions to planning as an aspect of the organisation.

ANS: F PTS: DIF: TOP: Concept of planning RAT: The emphasis

has shifted from planning as an aspect of the organisation to planning as a basis of all its
efforts and decisions.

7. A definition of planning should be based on what planning is supposed to be in an

organisation.

ANS: T PTS: DIF: TOP: Concept of planning

8. Planning and forecasting are different.

ANS: T PTS: DIF: TOP: Concept of planning

9. The planning process is difficult, while its actual implementation is relatively simple.

ANS: F PTS: DIF: TOP: Concept of planning

1
 10. The beginning of the financial year is the best time for initiating planning
activities.

ANS: F PTS: DIF: TOP: Concept of planning

11.The three types of strategic decisions are satisfying, optimising, and adaptivising.

ANS: F PTS: DIF: TOP: Concept of planning RAT: These are the
three philosophies of planning.

12. Any organisation needs strategy when resources are infinite.

ANS: F PTS: DIF: TOP: Concept of strategy

13. The key to profitable operations is to achieve a sustainable competitive

advantage based on stockholders’ expectations.

ANS: F PTS: DIF: TOP: Managing for competitive advantage

14. The systems approach, instructs the marketer to view the marketing process
holistically and view product not as an individual entity but as just one aspect of the
customer’s total need-satisfaction system.

ANS: T PTS: DIF: TOP: Introduction to chapter 1

15. Business strategy seeks to unify all business lines of a company and point
them at an overall goal.

ANS: T PTS: DIF: TOP: Concept of strategy

16. A firm has the most control over its external environment.

ANS: F PTS: DIF: TOP: Concept of strategy Rat: It has the least
control over the external environment.

17. Organisations that follow an internal and historical perspective have a much
better chance of success than those that take an externally focused view.

ANS: F PTS: DIF: TOP: Concept of strategy

18. Generally, organisations have identifiable existing strategic perspectives;

however, not many organisations have explicit strategy for the intended future.

ANS: T PTS: DIF: TOP: Concept of strategy

19. Companies that do well in strategic planning clearly define their goals and
develop rational plans to implement them.
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ANS: T PTS: DIF: TOP: Concept of strategic planning

20. A portfolio of business should be designed and managed to achieve each

individual business’s strategy, rather than overall corporate strategy.

ANS: F PTS: DIF: TOP: Strategic business units (SBUs)

21. An SBU cannot overlap divisions, and a division cannot include more than
one unit.

ANS: F PTS: DIF: TOP: Strategic business units (SBUs)

22. The value of effective strategic planning is virtually unchallenged in today’s

business world.

ANS: T PTS: DIF: TOP: Introduction to chapter 1

23. The SBU concept is essentially the same as the brand management system
except that the SBU manager has more clout.

ANS: F PTS: DIF: TOP: Strategic business units (SBUs)

24. P&G reorganised along the category lines with the purpose of devising
marketing strategies and fitting brands together, then formulating competing brand
strategies and allocating resources among them.

ANS: T PTS: DIF: TOP: Strategic business units (SBUs)

25. Today, markets are closed. Barriers are easy to install and maintain. Thus, it
is difficult for competitors to enter.

ANS: F PTS: DIF: TOP: Concept of strategic planning

26. Different functions or activities need to reinforce each other for developing a
successful strategy.

ANS: T PTS: DIF: TOP: Managing fit across all functions

27. Strategic planning is a paper-and-pencil activity which does not require

CEO’s involvement.

ANS: F PTS: DIF: TOP: Concept of strategic planning

MULTIPLE CHOICE

1. The marketing decision-making approach that directs us to develop our product

offering - and our entire marketing program - to meet the needs of our customer base is
the _________ approach.
a. environmental
 b. systems
c. societal marketing
d. marketing concept

ANS:D PTS: DIF: TOP: Introduction to chapter 1

2. Planning perspectives develop in response to needs that arise:

a. internally
b. externally
c. both internally and externally
d. none of the options given

ANS: C PTS: DIF: TOP: Introduction to chapter 1

3. Companies find planning useful in all of the following ways, except:

a. for choosing growth opportunities from among competing alternatives
b. for evaluating risk associated with different projects
c. in maintaining organisational flexibility
d. for globalisation of business

ANS: D PTS: DIF: TOP: Concept of planning

4. Many firms pursue growth internally through the _________ effort.

a. marketing system
b. research and development
c. financial
d. capital

ANS: B PTS: DIF: TOP: Concept of planning

5. The trend of technological changes will _________ in the future.

a. fall
b. rise
c. remain stable
d. improve

ANS: B PTS: DIF: TOP: Concept of planning

6. Future planning is also known as _________ planning.

a. long-range
b. corporate
c. comprehensive
d. formal
e. all of the options given

ANS: E PTS: DIF: TOP: Concept of planning

7. Which of the following is not a reason for doing strategic planning?

a. to earn a desired level of profit
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b. because of a complex business environment

c. because of technological developments
d. to make a choice between many equally attractive investments
e. none of the choices given

ANS: E PTS: DIF: TOP: Concept of planning

8. Which of the following is not a prerequisite to do well in strategic planning?

a. matching short-term goals to long-term perspectives
b. organising the company into strategic business units
c. demonstrating interest in new product development
d. developing a framework for evaluating and balancing competing requests from
business units

ANS: C PTS: DIF: TOP: Concept of planning

9. _________ considers future changes in areas of importance to a company and tries

to assess the impact of these changes on company operations.
a. Planning
b. Forecasting
c. Strategy
d. none of the choices given

ANS: B PTS: DIF: TOP: Concept of planning

10. Strategy in a firm is:

a. the pattern of major objectives, purposes or goals
b. essential policies and plans for achieving goals
c. definition of what business the company is in
d. definition of the kind of company is or is to be
e. all of the choices given

ANS: E PTS: DIF: TOP: Concept of strategy

11.Strategic planning should not:

a. become an exercise in forecasting
b. be restored to the care of line management responsibilities
c. change the role of planner from being a purveyor of incrementalism to that of a
crusader
d. require top management to assume a more explicit role

ANS: A PTS: DIF: TOP: Concept of strategic planning

12. Responsibility for planning lies with the:

a. marketing researcher
b. staff assistants
c. consultants
d. line managers
ANS: D PTS: DIF: TOP: Concept of strategic planning

13. Planning should:

a. be flexible
b. evolve gradually
c. be simple
d. all of the choices given

ANS: D PTS: DIF: TOP: Concept of planning

14. While planning is admittedly complex, successful planning systems do have

some fundamental characteristics. Which of the following is not one of these?
a. wholehearted support of the chief executive officer
b. actual planning process is kept as simple as possible
c. all planning is done by the corporate planner and his or her staff
d. encouragement of decisions with long-term implications

ANS: C PTS: DIF: TOP: Concept of planning

15. The philosophy of _________ planning has its foundation in operations

research.
a. satisfying
b. optimising
c. adaptivising
d. none of the choices given

ANS: B PTS: DIF: TOP: Concept of planning

16. McKinsey & Company, an international consulting firm, identify five global
forces and trends that have forced strategic marketers to question their current
assumptions as they change the opportunities and the challenges that confront both
Australian and global companies. Which one of the below is not one of these?
a. emerging markets as the centres for consumerism and innovativeness
b. the necessity to improve developed market productivity
c. decreasing global networks
d. the tension between rapidly rising resource consumption and sustainability

ANS: C PTS: DIF: TOP: Introduction to chapter 1

17. Any organisation needs strategy when:

a. resources are finite when there is uncertainty about competitive strengths and
behaviour
b. when commitment of resources is irreversible
c. when there is uncertainty about control of the initiative.
d. all of the choices given

ANS: E PTS: DIF: TOP: Concept of strategy

a. In 2010, IBM focuses on which three things?

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b. basic goals, objectives of the business and human resources

c. product-market matches, research and development and marketing
d. vision, strategic planning and execution strategies
e. goals, objectives and research and development

ANS: C PTS: DIF: TOP: Concept of planning

18. In an analysis of three different philosophies of planning, Ackoff established

the following three labels.
a. marketing, human resources and finance
b. satisfying, optimising and adaptivising
c. demanding, objectifying, solutions
d. goals, objectives, outcomes

ANS: B PTS: DIF: TOP: Concept of planning

19. Planning should cause:

a. a lot of disruption as major changes will be occurring
b. as little disruption as possible
c. a restructure of the company, so that it can remain competitive
d. all of the choices given

ANS: B PTS: DIF: TOP: Concept of planning

a. In a great many firms, the __________ function represents the greatest degree of
contact with the external environment.
b. legal
c. financial
d. marketing
e. none of the choices given

ANS: C PTS: DIF: TOP: Concept of strategy

20. In its strategic role, marketing consists of establishing a match between the
_________ and its _________.
a. customer/needs
b. firm/environment
c. management/employees
d. none of the choices given

ANS: B PTS: DIF: TOP: Concept of strategy

21. Strategy:
a. specifies direction
b. influences competitors’ behaviour
c. influences the evolution of the market
d. all of the choices given
e. none of the choices given
ANS: D PTS: DIF: TOP: Concept of strategy

22. Successful planning requires:

a. complex networking arrangements between the CEO and internal and external
stakeholders
b. the CEO mirco manages each department
c. the CEO remains at arm’s length of the plan
d. that the CEO be completely supportive of planned perspective

ANS: D PTS: DIF: TOP: Concept of planning

23. A unit that is comprised of one or more products having a common market
base whose manager has complete responsibility for integrating all functions into a
strategy against an identifiable competitor is called:
a. a strategic business unit
b. a strategy centre
c. a strategic planning unit
d. an independent business unit
e. all of the choices given

ANS: E PTS: DIF: TOP: Strategic business units (SBUs)

24. Optimising some functions instead of the whole company is _________ for
exhibiting superior corporate performance.
a. less than adequate
b. adequate
c. more than adequate
d. socially desirable

ANS: A PTS: DIF: TOP: Strategic business units (SBUs)

25. All SBUs must have:

a. a distinct business mission
b. an explicit management philosophy
c. an interdivisional overlap
d. all of the choices given

ANS: A PTS: DIF: TOP: Strategic business units (SBUs)

26. _________ levels of aggregation make SBUs identical to product/market

segments that may lack ‘strategic autonomy’.
a. Higher
b. Lower
c. Complex
d. Separate
e. none of the choices given

ANS: B PTS: DIF: TOP: Strategic business units (SBUs)

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27. In the 1990s, Procter & Gamble reorganised along the category lines
because:
a. the brand management system created conflicts and inefficiencies
b. businesses have been growing fast and retail trade has been losing clout
c. the consumer market is becoming concentrated
d. all of the choices given

ANS: A PTS: DIF: TOP: Strategic business units (SBUs)

28. Procter & Gamble divided its business into 39 categories under which:
a. brand managers for various detergents can demand new packages at the same time
b. brand managers in the same line of business can compete for a share of P&G’s ad
budget
c. the category manager decides the positioning of different brands
d. minor brands such as Dreft detergent has the same claim on manufacturing as Tide

ANS: C PTS: DIF: TOP: Budgeting

29. The guiding force behind decision making should be:

a. profits
b. the strategic planning process
c. forecasts
d. past trends
e. none of the choices given

ANS: B PTS: DIF: TOP: Introduction to chapter 1

30. The planning process:

a. is the same thing as forecasting
b. is usually a detailed five-year operational plan
c. should be custom-made for each particular company
d. usually takes approximately two years to complete
e. none of the choices given

ANS: C PTS: DIF: TOP:

31. As the global financial crisis (GFC) hit in 2008, executives shifted their focus
to:
a. short term cost-cutting goals
b. growth/survival
c. constraint
d. differentiation

ANS: A PTS: DIF: TOP: Concept of planning

32. In its strategic role, marketing establishes a:

a. position for each brand
b. match between the firm and its environment
c. promotional budget for each line of business
 d. none of the choices given

ANS: B PTS: DIF: TOP:

33. Managing strategic planning for focus and flexibility requires:

a. building on what the company does best
b. developing core skills
c. sketching future scenarios and responding to opportunities
d. all of the choices given

ANS: D PTS: DIF: TOP: Concept of strategic planning

34. Telstra started a self-renewal process in 2010 which included:

a. investing heavily in the latest technologies
b. developing SBU’s
c. implementing the use of Twitter accounts, Facebook sites, a flickr account, YouTube
channels
d. None of the choices given

ANS: C PTS: DIF: TOP: Shaping the strategically managed organisation

35. According to Hewlett-Packard’s former CEO Carly Fiorina, the role of CEO in
strategy is to:
a. encourage discussion of the white spaces
b. examine overlaps and gaps among business strategies
c. stress areas not addressed by individual businesses
d. all of the choices given

ANS: D PTS: DIF: TOP: Managing for competitive advantage

36. Business ecosystem refers to:

a. a framework for managers to explore and analyse
b. a technique for measuring performance
c. a framework for gaining a broad perspective of the business
d. both a and c

ANS: D PTS: DIF: TOP: Managing for competitive advantage

37. Strategic planning emerging perspectives include:

a. harnessing information
b. managing through people
c. managing for competitive advantage
d. all of the choices given

ANS: D PTS: DIF: TOP: Concept of strategic planning

FILL-INS
1. The guiding force behind decision making should be the _________ _________
_________.
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ANS: the strategic planning process

PTS: DIF: TOP: Concept of planning

2. The planning process should be _________ for each particular company.

ANS: custom-made

PTS: DIF: TOP: Concept of planning

3. Growth is a type of _________.

ANS: objective

PTS: DIF: TOP: Concept of planning

4. Planning for future action has been called by many different names: _________
planning, _________ planning, comprehensive planning and formal planning.

ANS: long-range, corporate

PTS: DIF: TOP: Concept of planning

5. Any organisation needs strategy when commitment of resources is _________.

ANS: irreversible

PTS: DIF: TOP: Concept of strategy

6. Various philosophies of planning include _________, _________ and _________.

ANS: satisfying, optimising, adaptivising

PTS: DIF: TOP: Concept of planning

7. _________ considers future changes in areas of importance to a company and tries to

assess the impact of these changes on company operations.

ANS: Forecasting

PTS: DIF: TOP: Concept of planning

8. Strategic planning is the responsibility of the __________________.

ANS: chief executive officer

PTS: DIF: TOP: Concept of planning