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Homework answers / question archive / Eastern Michigan University MKT 510A Chapter 2-Examining the Infrastructure for Marketing Management TRUE/FALSE Questions 1)Outsourcing means a company decides what is critical to their business and they then hire others to do the less critical, or core-mission oriented tasks
Eastern Michigan University
MKT 510A
Chapter 2-Examining the Infrastructure for Marketing Management
TRUE/FALSE Questions
1)Outsourcing means a company decides what is critical to their business and they then hire others to do the less critical, or core-mission oriented tasks.
2.
A core competency is fairly easy for competitors to replicate in a free marketplace.
3.
Good mission statements focus on a limited number of goals and define the company’s major competitive spheres.
4.
A strategic business unit (SBU) has its own set of competitors, distinct from other SBUs in the company.
5.
Acquiring a supplier is a growth strategy that is achieved through integration.
6.
Microsoft is a huge firm which nonetheless has not lost its ultracompetitive edge. The text attributes this to Microsoft’s corporate culture.
7.
Scenario analysis uses case studies of actual, historical company events and changes the assumptions related to the outcomes to improve future responses.
8.
A proper SWOT analysis will include a market opportunity analysis, or MOA.
9.
The SW portion of the SWOT analysis is where the external environments of the business are closely examined.
10.
Strategy guru Michael Porter’s three “generic” strategies are: cost leadership, diversification, and focus.
11.
Part of strategic program implementation is estimating the costs for the desired action.
12.
The first steps in managing implementation of a strategy are to break down every program into is component activities and identify the resources required and their associate costs.
13.
The late strategy guru Peter Drucker said that for businesses, “doing the things right” was more important than “doing the right thing.”
14.
A marketing information system consists of the people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
15.
Marketing information systems are developed from internal company records, marketing intelligence, and marketing research.
16.
The systematic collection, analysis, and reporting of data and findings relevant to specific marketing situation is called marketing research.
17.
Small companies can engage in marketing research in a number of creative and affordable ways, including using the Internet or taking advantage of local university students who need business projects.
18.
Typically, companies budget about 11–12 percent of company sales for marketing research.
19.
The last step in marketing research is developing the research plan.
20.
Data published by the government and data purchased from outside suppliers can improve the quality of a company's marketing intelligence efforts.
21.
Primary data is generally available more quickly and at a lower cost than secondary data.
22.
Primary data are data that were gathered for another purpose and already exist somewhere.
23.
Because it is hard to track and verify, behavioral data are less reliable in understanding customer behavior than are customer statements of their behavior.
24.
To obtain a representative sample, a probability sample of the population should be drawn.
25.
If speed is of the essence for a marketing research project, the best contact methods are either online or telephone interviewing.
26.
The disadvantages of using the personal interview method to conduct marketing research are that it is the most expensive method and it is subject to bias and distortion.
Multiple Choice Questions
27.
In the first half the 20th century, Ford Motor Company owned rubber plantations in Brazil to supply itself with raw materials for tire making. At some point, Ford began to buy all tires from outside vendors, and put more energy and focus on making the vehicles themselves. This is an example of .
28.
A university with growing budget concerns decided to lay off all groundskeepers and hire the work out to a large, local landscaping firm. That firm hired most of the laid off workers. Most campus visitors and students were never aware of the change. This is an example of .
29.
Bernardo Sampson has a restaurant in northeastern China that makes the best Chinese dumplings, according to his well-traveled customers. According to Bernardo, the key is controlling the dumpling filling preparation process and making his own dumpling
wrapper from an old family recipe. Other inputs to the business, such as
kitchen equipment, and in some ways, employees, are less important to creating the best dumplings. The dumpling filling preparation and homemade dumpling
wrapper could be considered Bernardo’s . a.
outsourcing genius b.
less critical resources c.
holistic marketing effort
d.
core competency
e.
outbound logistics
30.
Which of the following is NOT a characteristic of a core competency? a.
It has applications in a wide variety of markets. b.
It is a source of competitive advantage. c.
It makes a significant contribution to perceived customer benefits. d.
It is difficult for competitors to imitate.
e.
It can easily be outsourced.
31.
According to Figure 2.3
Company Marketing System in the text, “Factors Influencing Company Marketing Strategy,” the center of the all marketing activity should be .
32.
Strategic planning goes on at all of the following organizational levels, EXCEPT: a.
corporate level.
b.
retail level.
c.
division level. d.
business unit level. e.
product level.
33.
Blind Bill makes custom window treatments and sells exclusively to commercial homebuilders. CEO William Learned III often follows site finish managers around onsite to see how the customers view the products and to strengthen the partnership he feels he has with them.
Learned’s goal is to improve the company’s offerings. In the holistic marketing framework, this type of activity would be called .
a.
core competency strengthening b.
value exploration
c.
value creation
d.
value fulfillment e.
value delivery
34.
The late business guru Peter Drucker asked all of the following questions about defining an organization’s mission, EXCEPT:
a.
What should the business be? b.
What will the business be? c.
What is the business? d.
Who is the customer?
e.
What has the business been?
35.
A good mission statement can provide all of the following to employees, EXCEPT: a.
a shared sense of purpose.
b.
a shared sense of company profits.
c.
a shared sense of direction. d.
a guide that helps geographically distant employees work independently and collectively. e.
a shared sense of opportunity.
36.
Good mission statements can define the company’s major competitive spheres. The vertical sphere includes .
a.
the range of products and applications the company will supply b.
the type of market or customers the company will serve
c.
the number of channel levels from raw material to final product
d.
the range of regions or countries in which a company operates e.
the range of core competencies the company will master and leverage
37.
Which of the following is NOT normally a part of the Strategic Planning Process? a.
Corporate planning. b.
Business unit planning. c.
Division planning.
d.
Retail planning.
e.
Product planning.
38.
What is the proper order for the Strategic Control Process?
a.
measure results ? diagnose results ? take corrective action
b.
diagnose results ? measure results ? take corrective action c.
organize results ? implement results d.
corporate panning ? division planning ? business planning ? retail planning e.
planning ? implementing ? controlling
39.
Blind Bill makes custom window treatments and sells exclusively to commercial homebuilders. Which of the following is NOT of Blind Bill?
a.
Homebuilders are its customer group. b.
Its market segment is well defined. c.
Window coverage is its customer need.
d.
It limits its sales to metal or vinyl miniblinds.
e.
The various window treatment products are its technology.
40.
According to Levitt, market definitions that are business-oriented rather than product-oriented are superior. Such definitions include each of the following, EXCEPT:
a.
customer needs.
b.
geographical constraints.
c.
customer groups. d.
technology. e.
relevant target markets.
41.
Carmaker Toyota has the Scion division that is aimed at providing entry-priced vehicles to new members of the Toyota “family.” Scion has independent budgeting, management direction, and profit/loss responsibility within the larger company. Scion is .
a.
only sold on the west coast b.
only one market segment for Toyota, because the Camry is so popular
c.
a strategic business unit
d.
a competitor for Lexus vehicles e.
horizontally integrated with the parent company
42.
Perhaps the least intuitive part of assessing growth opportunities for the company is . a.
planning new businesses
b.
downsizing and/or terminating older businesses
c.
deciding whether to integrate by buying a supplier or a customer d.
choosing an intensive growth strategy e.
employing a market penetration approach 43.
Attempting to gain market share with current products in current markets is called .
a.
forward integration b.
horizontal integration c.
concentric diversification d.
market development
e.
market penetration
44.
Russ Clark, a NAPA auto parts dealer, bought out a competitor’s store. This is an example of
.
a.
market penetration b.
backward integration c.
horizontal diversification
d.
conglomerate diversification e.
horizontal integration
45.
Many years ago, French utilities management company Vivendi decided to buy a portfolio of entertainment businesses that included theme parks and rights to a music catalog. The purpose of the acquisition was to grow company revenues and profits. This was an example of . a.
integrative diversification b.
horizontal integrative growth
c.
conglomerate diversification
d.
market development e.
concentric diversification
46.
Tired of high prices and poor service, and convinced she can do better, funeral home owner Macy Mbacke-Abdullah decides to purchase the wholesaler that she has been buying caskets from. This is an example of .
a.
backward integration
b.
forward integration c.
diversified integration d.
horizontal integration e.
concentric integration
47.
A company’s consists of its structures, policies, and corporate culture. a.
headquarters
b.
organization
c.
sales position d.
industry e. scenario
48.
has been defined as the shared experiences, stories, beliefs, and norms that characterize an organization.
a.
Corporate structure b.
Corporate history c.
Corporate strategy
d.
Corporate culture
e.
Corporate organization
49.
Which of the following is NOT considered to be a part of an organization’s culture? a.
Experiences. b.
Stories. c.
Beliefs.
d.
Salaries.
e.
Norms.
50.
Which of the following is NOT one of Hamel’s recommendations for crafting corporate strategy? a.
Management should encourage fresh ideas. b.
Employees with youthful perspectives should participate. c.
Those who are new to the industry should be asked to contribute. d.
The company should not forget to include ideas from those who do not work close to headquarters.
e.
Senior management should make and hand down strategy.
51.
Which of the following would NOT be considered a part of scenario analysis for General Motors? a.
The company adopts the most probably scenario and watches for signs that confirm it. b.
The CEO asks for plausible representations of the company’s future to be considered.
c.
Company analysts present last quarter's earnings for the board.
d.
Managers consider how they will deal with a declaration of bankruptcy by a major supplier. e.
Unit chiefs map out strategies in case a strike disrupts production during upcoming contract negotiations with labor.
52.
Which of the following is in the correct order, as a part of the Business Unit Strategic-Planning Process?
a.
mission ? SWOT ? strategy formulation ? implementation
b.
external analysis ? internal analysis ? program formulation ? mission statement c.
program formulation ? strategy formulation ? goal formulation d.
program formulation ? strategy formulation ? feedback ? control e.
mission ? SWOT ? program formulation ? strategy formulation 53.
SWOT refers to .
a.
semper wit omnicus terapis
b.
internal and external environmental analysis
c.
strategy and goal formulation d.
the control and feedback loop in the strategic planning process e.
implementing strategy across the organization
54.
SWOT refers to .
a.
semper wit omnicus terapis
b.
strategy with operations talent c.
strategic watching of technology
d.
strengths, weaknesses, opportunities, threats
e.
strategy formulation, willingness to negotiate, operational excellence, temperament suitable to succeed
55.
Marketing opportunity analysis (MOA) involves asking each of the following questions,
EXCEPT:
a.
Does the company have access to the resources needed to deliver customer benefits? b.
Can the benefits involved in the opportunity be articulated to the target customer?
c.
Can the company deliver the benefits at least as well as competitors?
d.
Will the financial rate of return meet or exceed the company’s threshold for investment? e.
Can the target market(s) be located and reached with cost-effective media and trade channels?
56.
A(n) is a challenge posed by an unfavorable external trend or development that
would lead, in the absence of defensive marketing action, to lower sales or profit.
a.
environmental threat
b.
SWOT team c.
outside sales investment d.
marketing opportunity e.
organizational weakness
57.
Which of the following is NOT part of effective goals?
a.
Goals must be consistent. b.
Goals must be realistic. c.
Goals must be arranged hierarchically, from most to least important.
d.
Goals must be available to all organizational stakeholders.
e.
Goals must be stated quantitatively whenever possible.
58.
Apple Computer designs its computers and other technological products, such as the popular iPod so that they stand out in the marketplace from equally-effective, but more boring-looking competitors. This is an example of using the strategy, as proposed by Porter.
a.
cost leadership
b.
differentiation
c.
horizontal integration d.
focus e.
all-in-one
59.
Costco has higher sales per square foot than powerful rival Sam’s Club (a Wal-Mart company). Costco have achieved this through a deep understanding of its highly targeted customer group. This is an example of using Porter’s strategy.
a.
cost leadership b. differentiation c.
horizontal integration d.
focus
e.
price and performance
60.
According to McKinsey & Company, successful strategy involves seven “S” elements. Which of the following is included among the “hardware” needed to successfully implement strategy?
a. Style. b.
Staff.
c.
Systems.
d.
Shared values. e.
Skills.
61.
Which of the following statements is in line with Peter Drucker’s notion of effectiveness? a.
Do the important thing.
b.
Do the right thing.
c.
Do things right. d.
Do unto others as you would have them do unto you. e.
Do the best thing.
62.
A marketing information system (MIS) consists of .
a.
the set of procedures and sources used by managers to obtain everyday information and relevant developments in the marketing environment
b.
the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation
c.
an organized collection of comprehensive data about individual customers, prospects, or suspects that is currently accessible for marketing purposes
d.
the people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
e.
the coordination of the collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets information from the business environment
63.
When Molly’s parents retired, they decided they wanted to travel. They found an ideal job that allows them to travel for free, but the only catch is they have to stay at Holiday Inns. During each stay, they test all the amenities offered by the motel and evaluate each. The evaluation forms are sent to the motel headquarters where it becomes part of the motel’s system.
a.
sales reporting b.
marketing research c.
experiential research data d.
accountability information system (AIS)
e.
marketing intelligence
64.
Which of the following is NOT a step that might be used to improve the quality of a firm’s marketing intelligence?
a.
Setting up a consumer panel. b.
Collecting competitive intelligence by buying a competitor’s products.
c.
Watching how the stock market reacts to interest rate changes.
d.
Motivating distributors to pass along important intelligence from the marketplace. e.
Purchasing information from outside suppliers.
65.
The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company is termed .
a.
the sales reporting system
b.
marketing research
c.
marketing intelligence d.
the sales force e.
top management
66.
Small companies can engage in marketing research in a number of creative and inexpensive ways, including .
a.
setting up their own Web site b.
hiring an independent marketing research firm c.
buying information from database companies like A.C. Nielsen d.
using its own internal marketing research department
e.
using an online information service such as the Internet
67.
The second step in the marketing research process is the .
a.
development of the research plan
b.
definition of the problem and research objectives c.
survey of stakeholders to determine if problems exist d.
decision regarding the research tools and target group e.
collection of the available sources for needed information
68.
All of the following are steps in the marketing research process EXCEPT: a.
define the problem and research objectives. b.
develop the research plan. c.
collect the information.
d.
compare data to government sources.
e.
present the findings.
69.
The step in the marketing research process that includes determining who will be sampled is to
.
a.
define the problem and research objectives
b.
develop the research plan
c.
collect the information d.
make a decision based on the project outcomes e.
present the findings
70.
Which of the following is NOT a consideration when preparing a sampling plan? a.
Who is to be surveyed? b.
How many are to be surveyed?
c.
How will the sample respondents be paid?
d.
Should a probability sample be used or not? e.
How should respondents be chosen?
71.
Rita Jenkins, president of a local Chamber of Commerce, had difficulty getting members to assist in running the organization. She felt it was because of lack of commitment to the Chamber. Her vice-president felt it was due to having too many meetings. The organization’s secretary felt it was because there were several other professional organizations to which the members also belonged. If Rita wants to do research to determine the real reason why members do not want to run for office, she should begin by .
a.
determining the optimum number of meetings b.
evaluating the advantages the Chamber offers over other similar organizations
c.
defining the problem
d.
developing the marketing research plan that she would employ e.
holding focus groups of members of similar organizations to determine whether the problems the Chamber is facing are universal or local
72.
After working for a roofing contractor for ten years, Cameron Gomez finally established his own operation. Unfortunately, Cameron’s first six months have been disappointing. He decided to
conduct a marketing research study to gather preliminary data to shed light on the nature of the problem and suggest some new ideas. He needs to conduct research.
a.
exploratory
b. causal c.
secondary d. descriptive e.
observational
73.
Which of the following is a type of causal research project that would be used by a company that publishes custom memory books that are used as fundraisers for churches, colleges, and civic groups?
a.
A study to determine the types of fundraising most commonly used by church groups. b.
A survey of previous customers to see if they are interested in a new edition.
c.
A study to see if more people buy the custom memory book if the cover has a picture relating to the group selling it rather than just a generic cover.
d.
A study to determine the price range for an average-sized cookbook. e.
An industrial study of what similar publishing companies are doing to better serve their customers.
74.
data are data that were gathered for another purpose and already exist. a.
Primary b.
Descriptive c.
Causal
d.
Secondary
e.
Observational
75.
Which of the following is NOT typical of a focus group? a.
Approximately, 14-18 participants spend a few hours together.
b.
A skilled moderator guides the discussion. c.
The discussion centers on a product, service, or marketing entity. d.
They can gauge consumer reaction to product features or design. e.
They can give quick consumer feedback to new ideas.
76.
Which of the following is an example of how ACE Crafts, a manufacturer of acrylic paints used in arts and crafts, would use observational research to gather primary data?
a.
Survey current users to find out ways the paint could be improved.
b.
Watch how members of a class learning to paint unfinished crafts use the paint.
c.
Ask users of other brands of paint to list the most important attributes for acrylic paint. d.
Conduct a focus group of current users to determine how ACE is positioned in their minds when it is compared to similar products.
e.
Include a mail survey with each bottle of paint sold.
77.
A(n) is a gathering of 6 to 10 people who spend a few hours with a skilled moderator to discuss a product, service, or other marketing entity.
a.
focus group
b.
intermediary team c.
agent group d.
consolidated group e.
grouped dataset
78.
are best suited for descriptive research such as learning about people’s knowledge, beliefs, preferences, and satisfaction, and measuring these magnitudes in the general population. a.
Observational research methods b.
Focus groups
c.
Surveys
d.
In-depth interviews e.
Qualitative research methods
79.
A catalog retailer wants to know more about the buying habits of people who order more than once a month from its pages. The catalog retailer will use its database to examine data.
a. observation b.
survey c. primary d.
experimental
e.
behavioral
80.
The manufacturer of Babylok brand sewing sergers wants to know the effect rebates have on sales. It plans on dividing its retailers into three regions. One group will offer consumers who buy a Babylok serger a $25 cash rebate. One will offer buyers of the machine $50 worth of “free” machine accessory parts. A third region will offer buyers a $40 store credit. The results of this market research will provide Babylok with data.
a. observation b.
survey c. primary d.
experimental
e. descriptive
81.
A(n) consists of a set of questions presented to respondents for their answers.
a.
questionnaire
b.
focus group c.
data set d. database
e. observation
82.
pre-specify all of the possible answers, so they are easy to interpret and tabulate. a.
Open-end questions
b.
Closed-end questions
c. Galvanometers d.
Audiometers e.
Samplings
83.
allow respondents to answer in their own words.
a.
Open-end questions
b.
Closed-end questions c.
Galvanometers d.
Audiometers e.
Samplings
84.
Which of the following statements about probability sampling is ? a.
Probability sampling is the least expensive type of sampling to use. b.
Probability sampling is the simplest and least difficult type of sampling to generate. c.
Researchers who use probability sampling can choose from a judgment or quota sample. d.
Probability sampling does not allow researchers to measure sampling error.
e.
Researchers who use probability sampling can calculate confidence limits for sampling error.
85.
The contact method that minimizes interviewer bias is the .
a.
b. telephone c.
intercept interview d.
focus group e.
personal interview
86.
The best contact method to use to determine how many people saw the ad for a new Chery auto model that ran last night during the 6:00 p.m. news would be the .
a. mail a.
Internet
b.
telephone
c.
focus group d.
personal interview
87.
If reducing the cost of data gathering is the most important criterion for a marketing research project, the preferred contact method to avoid is the .
a.
intercept interview b.
telephone c.
focus group
d.
personal interview
e. mail
88.
Which is typically the most expensive step of marketing research process? a.
Problem definition. b.
Developing the research plan.
c.
Information collection.
d.
Information analysis. e.
Questionnaire design.
89.
Which step is typically the most prone to error in the marketing research process? a.
Problem definition. b.
Developing the research plan.
c.
Information collection.
d.
Information analysis. e.
Questionnaire design.
90.
The last step in the marketing research process is to . a.
create a database using the research results b.
determine the best solution to the problem
c.
present the findings pp.
d.
analyze the information e.
remove all jargon and technical language from the report
Essay Questions
91.
Harley-Davidson Motor Company’s mission statement reads:
“We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments.”
In a short essay, compare Harley’s mission statement against Drucker’s classic questions.
92.
Joe Leung is a machinist and owns a small factory in Changchun, Jilin Province. Leung makes parts for a Chinese auto manufacturer and does a little work for his friend’s auto repair shop. Leung hires you to help him explore ways in which he can grow his business. In a short essay, suggest at least four different strategic ways Leung could grow his business.
93. Perform a limited SWOT analysis for the Wal-Mart company.
94.
Walnut Hill is a company that sells everything you could possibly need to make your own candles. Before its owner expands into other craft areas, she wants to do some marketing research. She has heard of too many companies that have gone out of business as a result of inappropriate or ill-timed expansion. In a short essay, suggest ways that she can obtain market research to help her reduce uncertainty regarding an expansion.
95.
Suppose you are the brand manager for Wild Thing!, an unscented deodorant shampoo aimed at the so-called “Millennial Generation” consumer. Sales of your product have been declining.
Exploratory research suggests your brand is not price competitive. In a short essay, outline a research plan that would provide you with the information you need to decide what to do. Then, explain why you selected those specific methods instead of others.
Mini-Cases
Mini-Case 2-1
Scuba-Doobie-Doo is owned by Filamena Barbozo, who wishes to create a full service SCUBA website. She plans to include scuba chat rooms for visitors, and ever-changing photo and story gallery where visitors can post, read, and view the adventures of others and of professional SCUBA writers. She plans to have an online store with all possible SCUBA equipment available for purchase. She plans to sell advertising to SCUBA companies. All told, Filamena wants Scuba- Doobie-Doo to be a one-stop SCUBA source for enthusiasts.
96.
Refer to Mini-Case 2-1. Tired of high prices and poor service, and convinced she can do better, S- D-D’s owner Filamena Barbozo decides to purchase the company that provides and maintains the servers for the Web site. This is an example of .
97.
Ms. Barbozo, S-D-D’s owner, wants to concern herself and her employees with efficiency, above all other concerns. Which of the following statements is most closely associated with efficiency?
Mini-Case 2-2
Amy Wong owns Mothers’, a Chinese restaurant in Chinatown in San Francisco. So far business has been very good. The restaurant features very delicious soups that use recipes Amy bought from her extended family in Guangzhou. The kitchen crew and head chef are all talented Chinese immigrants. The Chinese residents in San Francisco
cannot get over how the food is to the hometown versions, and many comment that the food actually makes them homesick.
98.
Refer to Mini-Case 2-2. Amy Wong decides that her new inn selling porridge will also feature foods made with authentic old-world recipes and made with talented Chinese hands. These two business plan ingredients could be considered Amy’s .
99.
Refer to Mini-Case 2-2. Amy figures her main customers for the porridge inn will be the same customers that regularly eat at her Mothers’. This means Amy is using the strategy to grow his business.
Mini-Case 2-3
The owners of the 22,000 funeral homes in U.S are experiencing tremendous changes in their industry. Fewer families today are having bodies embalmed and displayed at a service. Of those who choose burial, many are shopping at retail and mail order casket dealers, not at the funeral home as, used to be the custom. Another change is the fact that many people want personal touches and quirky tributes in their funeral services. A growing number are choosing cremation rather than burial. Today almost a quarter of the nation’s 2.3 million annual deceased are cremated. Funeral homes typically charge only about one-third the amount for cremation that they do for a burial. It has become imperative that funeral directors invest time and money in learning about their potential consumers.
100.
Refer to Mini-Case 3-1. Which of the following is an example of a primary data source for research about consumer attitudes toward the funeral industry?
101.Refer to Mini-Case 3-1. A funeral director who watches and records data on how consumers select a casket would be engaged in research.
a. observational
b.experimental
