Chapter 02

Chapter 02 - Chapter 2Strategic Planning for Competitive...

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Chapter 2—Strategic Planning for Competitive Advantage TRUE/FALSE 1. The manufacturer of Macho brand martial arts products was implementing a strategic plan when it sponsored a local karate tournament for teenagers. ANS: F Such a short-range decision is typically a tactical plan or operating decision, not a strategic plan. PTS: 1 REF: 15 OBJ: 02-1 TYPE: App TOP: 2. The marketing plan is a written document that acts as a guidebook of marketing activities for a market- ing manager. ANS: T PTS: 1 REF: 16 OBJ: 02-1 TYPE: Def TOP: 3. A firm's mission statement should answer the question, "What products do we produce best?" ANS: F Mission statements should not focus on specific product offerings but on the market or markets served. PTS: 1 REF: 17 OBJ: 02-2 TYPE: Comp TOP: 4. A production costs analysis could be a part of a company’s SWOT analysis. ANS: T PTS: 1 REF: 18 OBJ: 02-3 TYPE: Comp TOP: 5. Environmental scanning entails the collection and analysis of information about factors that may affect the organization as well as the identification of market opportunities and threats. ANS: T PTS: 1 REF: 18 OBJ: 02-3 TYPE: Def TOP: 6. To be useful, marketing objectives should meet four criteria: realistic, measurable, time-specific, and based on sales. ANS: F The four criteria for useful marketing objectives are: realistic, measurable, time-specific, and com- pared to a benchmark. They do not have to be based on sales. PTS: 1 REF: 18-19 OBJ: 02-4 TYPE: Comp TOP: 7. The company's objective is to increase sales next year. This is an example of a well-stated objective. ANS: F This objective is not specific or compared to a benchmark.
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PTS: 1 REF: 19 OBJ: 02-4 TYPE: App TOP: 8. A competitive advantage is some unique aspect of a firm's offering, or of the firm itself, that causes target customers to patronize the firm rather than its competition. ANS: T PTS: 1 REF: 19 OBJ: 02-5 TYPE: Def TOP: 9. Developing a cost competitive advantage can enable a firm to deliver superior customer value. ANS: T PTS: 1 REF: 19 OBJ: 02-5 TYPE: Def TOP: 10. As marketers gain more experience in marketing a product, costs tend to decrease, which is an ex- ample of the maturity effect. ANS: F This is an example of the experience curve, which means costs decline at a predictable rate as experi- ence with a product increases.
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Chapter 02 - Chapter 2Strategic Planning for Competitive...

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