Marketing Defined, Explained, Applied, 2e (Levens)
Chapter 11 The Marketing Plan
1) A(n) ________ is a written document that defines the operational and financial
objectives of a business over a particular time, and defines how the business plans to
accomplish those objectives.
A) marketing plan
B) business plan
C) investment plan
D) executive summary
E) business overview
Answer: B
2) After a title page, the next part of a typical business plan is the ________.
A) product overview
B) market overview
C) competitive overview
D) management overview
E) executive summary
Answer: E
3) Which of the following is NOT one of the main elements of a typical business
plan?
A) product overview
B) market overview
C) business overview
D) promotions overview
E) financial overview
Answer: D
4) In addition to the elements that are usually included in a business plan, a start-up
business would also need to include information on ________.
A) competition
B) operations
C) capitalization
D) customer benefits
E) management
Answer: C
5) In which of the following sections of a business plan would a not-for-profit
business most likely discuss its capacity to benefit its customer target?
A) executive summary
B) service overview
C) competitive overview
D) management overview
E) financial overview
Answer: B
6) It is most accurate to say that a business plan is used to communicate the
performance and direction of a business to ________.
A) targeted markets
B) consumers
C) government regulators
D) potential investors and stakeholders
E) marketers
Answer: D
7) A(n) ________ identifies business revenues, expenses, and profits.
A) business statement
B) income statement
C) capitalization statement
D) cash-flow statement
E) market sheet
Answer: B
8) A(n) ________ identifies how much cash is needed to meet financial obligations
and the source of that cash.
A) business statement
B) income statement
C) capitalization statement
D) cash-flow statement
E) balance sheet
Answer: D
9) A(n) ________ is used to determine the net worth of a business.
A) business statement
B) income statement
C) capitalization statement
D) cash-flow statement
E) balance sheet
Answer: E
10) Which of the following best describes how a company should use a business plan?
A) A company should create its business plan by the end of its first year in business.
B) A company should have a business plan in place from the start.
C) Once in place, the business plan should be revised every month.
D) Consistent internal conditions should lead management to keep the same business
plan.
E) Changing external conditions should not lead management to create a new business
plan.
Answer: B
11) The ________ is a document that includes an assessment of the marketing
situation, marketing objectives, and marketing initiatives.
A) marketing mix
B) marketing plan
C) value proposition
D) value chain
E) management plan
Answer: B
12) Which of the following is NOT a basic section in a typical marketing plan?
A) marketing situation
B) forecasting
C) measurement and controls
D) financial overview
E) executive summary
Answer: D
13) A(n) ________ is a consolidated plan of all of a company's individual marketing
plans.
A) executive summary
B) marketing summary
C) business plan
D) marketing program
E) promotions program
Answer: D
14) A marketing program is intended to allot and optimize resources across different
________.
A) departments in a company
B) marketing functions
C) brands, products, or services in a portfolio
D) target markets
E) product positions
Answer: C
15) Creating and updating the marketing plan is the responsibility of ________.
A) the portfolio manager
B) top management
C) the marketing department
D) the finance department
E) the public relations agency
Answer: C
16) For a marketing plan to be successful, ________ should participate in its
implementation.
A) only the marketing department
B) only the marketing department and management
C) only the marketing and customer service departments
D) only the marketing and human resources departments
E) the entire business
Answer: E
17) In a marketing plan, the ________ section provides a brief overview of the
primary goals, recommendations, and planned actions included in the marketing plan.
A) executive summary
B) company description, purpose, and goals
C) forecasting
D) marketing situation
E) marketing strategy
Answer: A
18) It is most accurate to say that the executive summary of a marketing plan is
designed to communicate ________ to senior leadership and business stakeholders.
A) specific controls and measurement
B) essential information
C) detailed market analysis
D) an overview of competitors' actions
E) an overview of marketing needs
Answer: B
19) In a marketing plan, the ________ section identifies the history of the business
and its core competencies.
A) executive summary
B) company description, purpose, and goals
C) forecasting
D) marketing situation
E) marketing strategy
Answer: B
20) It is most accurate to say that a company's core competencies create which of the
following?
A) the company's marketing situation
B) the company's marketing strategy
C) the company's competitive advantage
D) the company's SWOT findings
E) the company's objectives
Answer: C
21) A company's mission statement would most logically be included in which
section of the marketing plan?
A) forecasting
B) marketing strategy
C) company description, purpose, and goals
D) measurement and controls
E) marketing situation
Answer: C
22) Which of the following would most likely be discussed in the company
description, purpose, and goals section of a marketing plan?
A) a situation analysis
B) the sales forecast
C) the proposed implementation schedule
D) the company's competitive advantage
E) the company's market needs
Answer: D
23) A marketer would detail the company's positioning and value proposition in the
________ section of a marketing plan
A) marketing situation
B) forecasting
C) company description, purpose, and goals
D) marketing strategy
E) executive summary
Answer: C
24) In a marketing plan, the ________ section includes an assessment of customers,
competitors, the product portfolio, and distribution channels.
A) measurement and controls
B) company description, purpose, and goals
C) forecasting
D) marketing situation
E) marketing strategy
Answer: D
25) An assessment of which of the following would be MOST likely to appear in the
marketing situation of a marketing plan?
A) the marketing mix
B) the break-even point
C) the cultural environment
D) an implementation schedule
E) the company's mission
Answer: C
26) A marketer would be most likely to use information from a SWOT analysis in
which section of a marketing plan?
A) measurement and controls
B) company description, purpose, and goals
C) forecasting
D) marketing situation
E) executive summary
Answer: D
27) A marketer would be most likely to use information from a BCG growth-market
matrix in which section of a marketing plan?
A) measurement and controls
B) company description, purpose, and goals
C) forecasting
D) marketing situation
E) executive summary
Answer: D
28) Marketers use demographics and psychographics to ________.
A) better understand their competitors
B) better understand their customers
C) better predict company strengths
D) conduct a break-even analysis
E) evaluate pricing strategies
Answer: B
29) The national economy and design trends are two examples of factors in a
company's ________.
A) microenvironment
B) competitive environment
C) technological environment
D) legal environment
E) macroenvironment
Answer: E
30) The SWOT in SWOT analysis stands for ________.
A) strengths, weaknesses, observations, trends
B) strengths, weaknesses, opportunities, threats
C) sales, waste, objectives, threats
D) sales, work, objectives, trends
E) services, work, opportunities, technologies
Answer: B
31) In a marketing plan, the ________ section includes the anticipated outcomes
based on achieving predefined market goals.
A) measurement and controls
B) company description, purpose, and goals
C) forecasting
D) marketing situation
E) marketing strategy
Answer: C
32) Which of the following would most likely be included in the forecasting section
of a marketing plan?
A) demographic predictions
B) predictions of market trends
C) an analysis of psychographic trends
D) an analysis of the company's past performance
E) an analysis of shifts in industry styles and standards
Answer: D
33) The outcome of the forecasting process is most essential to which of the
following?
A) aligning the marketing mix with the company's mission
B) predicting competitors' strategies
C) analyzing customer behaviors
D) identifying target audiences
E) exploring alternative marketing strategies
Answer: E
34) Which section of a marketing plan would most likely contain a break-even
analysis?
A) measurement and controls
B) marketing situation
C) forecasting
D) marketing strategy
E) executive summary
Answer: C
35) Average cost per transaction is needed to determine ________.
A) future sales growth rates
B) current sales rates
C) payroll rates
D) the monthly fixed costs
E) the break-even point
Answer: E
36) Which of the following is NOT an example of a fixed cost?
A) materials
B) utilities
C) payroll
D) rent
E) Web site hosting
Answer: A
37) Direct sales and Web sales are both examples of ________.
A) revenue streams
B) sales forecasts
C) public relations expenses
D) promotional events
E) marketing strategies
Answer: A
38) A sales forecast is most likely to be based on which of the following?
A) the company's variable costs
B) the company's growth rate
C) the company's break-even point
D) the company's marketing expenses
E) the company's fixed costs
Answer: B
39) Data concerning which of the following would be LEAST likely included in the
forecasting section of a marketing plan?
A) variable costs
B) fixed costs
C) direct cost of sales
D) sales projections
E) demographic trends
Answer: E
40) Television ads, public relations, and promotional events are all examples of
________.
A) marketing controls
B) marketing expenses
C) marketing forecasts
D) distribution strategies
E) market trends
Answer: B
41) In a marketing plan, the ________ section identifies the specific procedures that a
business intends to follow to meet its marketing objectives.
A) measurement and controls
B) executive summary
C) forecasting
D) marketing situation
E) marketing strategy
Answer: E
42) The target market and investment requirements are typically identified in the
________ section of a marketing plan.
A) measurement and controls
B) financial overview
C) forecasting
D) marketing situation
E) marketing strategy
Answer: E
43) Information about which of the following would most likely be included in the
marketing mix component of the marketing strategy?
A) worst case risks
B) market research
C) pricing
D) financial forecasts
E) target market descriptions
Answer: C
44) Advertising, promotion, customer service, and distribution strategies are typically
part of the ________ section in a marketing plan.
A) sales forecast
B) strategic controls
C) operational controls
D) marketing mix
E) BCG growth-market matrix
Answer: D
45) You would most likely find an implementation schedule in which section of a
marketing plan?
A) marketing strategy
B) forecasting
C) executive summary
D) marketing situation
E) company description, purpose, and goals
Answer: A
46) Based on the sample in your text, which of the following is LEAST likely to be
included in an implementation schedule?
A) start date
B) budget
C) target market strategy
D) manager
E) end date
Answer: C
47) In a marketing plan, the ________ section identifies the process to monitor
achievement toward attaining the marketing objectives.
A) measurement and controls
B) executive summary
C) forecasting
D) marketing situation
E) marketing strategy
Answer: A
48) Which type of control considers results with respect to the stated marketing plan
or program?
A) observational
B) operational
C) managerial
D) strategic
E) implementation
Answer: B
49) Which type of control considers the appropriateness of overall strategies based on
internal and external conditions?
A) observational
B) operational
C) managerial
D) strategic
E) implementation
Answer: D
50) Based on the sample marketing plan in your text, contingency planning is most
likely to be included in which section of a marketing plan?
A) company description, purpose, and goals
B) marketing situation
C) measurement and controls
D) forecasting
E) executive summary
Answer: C
51) Members of the management team at the Art Attic would most likely refer to the
company's ________ to identify their responsibilities to marketing, operations,
customer service, and other departments.
A) marketing plan
B) marketing program
C) business plan
D) business program
E) tactical plan
Answer: C
52) Adam is a potential investor in Athletix, a manufacturer of sporting goods. To
determine whether or not he wants to invest in the company, Adam is examining a
document that lays out the financial goals for the entire company for the next three
years, as well as goals in production efficiencies and shipping efficiencies. Adam is
most likely reading the ________ for Athletix.
A) marketing plan
B) marketing program
C) business plan
D) business program
E) financial plan
Answer: C
53) Which of the following is the best advice about business plans for Paul, who has a
great idea for a start-up business but will need substantial external financing to get
started?
A) Have a business plan in place by the first day your business is open.
B) Have a business plan in place before seeking out investors.
C) Focus on the product overview and fill in details about the competitive
environment after the business has launched.
D) Focus on the operations overview and fill in financial details after the business has
launched.
E) Make operational and financial objectives as general as possible.
Answer: B
54) Jonas is working on his company's marketing plan for a new product line called
Nature & Nurture. He is writing an overview that includes a brief description of the
positioning for the new product line as well as a brief overview of the financial goals
for the product and the strategy that will be used to achieve those goals. Jonas is
working on the ________ section of the marketing plan.
A) company description, purpose, and goals
B) marketing situation
C) executive summary
D) measurement and controls
E) forecasting
Answer: C
55) While preparing the marketing plan for a new product line called Nature &
Nurture, Jonas wrote the following: "Nature & Nurture toys provide learning
experiences that stimulate young children's senses and open up a world of discovery
for the youngest of learners." This statement belongs in the ________ section of the
marketing plan.
A) company description, purpose, and goals
B) marketing situation
C) competitive overview
D) measurement and controls
E) forecasting
Answer: A
56) In your text's sample marketing plan, two of the company goals are "Achieve
growth rate in sales of 12% for the year 2008" and "Maintain a gross margin of 45%
each month." As indicated by these two examples, a marketing goal should be
________.
A) measurable
B) general
C) creative
D) company-wide
E) set by management
Answer: A
57) Marketers would be most likely to use which of the following types of
information to predict market growth?
A) positioning
B) company weaknesses
C) company strengths
D) demographics
E) marketing mix
Answer: D
58) While preparing the marketing plan for a new product line called Nature &
Nurture, Jonas wrote the following: "The target Nature & Nurture customer is female,
married, between the ages of 30 and 45, and has one or two children under the age of
five. She has completed college and some graduate work, and has a combined
household income over $70,000 per year." This statement belongs in the ________
section of the marketing plan.
A) company description, purpose, and goals
B) marketing situation
C) executive summary
D) measurement and controls
E) forecasting
Answer: B
59) While preparing the marketing plan for a new product line called Nature &
Nurture, Jonas wrote the following: "Recent news about toxic materials in children's
toys and repeated recalls of children's products due to safety concerns creates a
substantial market opportunity for Nature & Nurture products. As parents become
more and more alarmed about the safety of their children's toys, they can be expected
to place a greater premium on the nontoxic, environmentally friendly materials used
for all Nature & Nurture products." This statement belongs in the ________ section of
the marketing plan.
A) company description, purpose, and goals
B) marketing situation
C) executive summary
D) measurement and controls
E) forecasting
Answer: B
60) Which of the following would be listed under a company's strengths in a SWOT
analysis?
A) Creating a presence on social networks could broaden product awareness and
interest.
B) Changing economic factors favor the company's position in the market.
C) The company maintains efficient and cost-effective relationships with channel
partners.
D) Changing technological factors will force the company and its competitors to alter
many products.
E) Changes in media consumption among target consumers will make advertising less
expensive.
Answer: C
61) Which of the following would be listed under a company's threats in a SWOT
analysis?
A) Revenues have declined for three consecutive quarters.
B) A new entry in the market is priced very competitively.
C) Staff reductions have created anxiety about job security among employees.
D) The new management team is still unfamiliar with some aspects of the business.
E) The company's access to capital to fund growth is uncertain.
Answer: B
62) Young Music Lovers and Fashionable Fifty-Somethings are examples of possible
________.
A) target markets
B) geographic groups
C) demographic segments
D) social classes
E) market trends
Answer: A
Refer to the scenario below to answer the following questions.
Suzanne and Shandra, longtime friends, share a love of animals. For months,
they talked about starting their own pet services business, listing ideas for services
they might provide and how they might market those services. They were most
interested in providing dog and cat grooming and dog walking services.
Suzanne and Shandra looked for information on established pet service
businesses in their suburban area, using information from the local chamber of
commerce and online research. They discovered that none of the local pet services
companies provided on-site pet grooming. Suzanne and Shandra saw this as a great
opportunity to distinguish their business from potential competitors.
The two women wrote a basic business plan and applied for and received a
business loan to start up On-the-Go Groomers. They proposed to purchase an RV
motorhome and outfit it with two comfortable dog and cat grooming stations. On-the-
Go Groomers would come to clients' homes to provide pet services instead of
requiring pet owners to come to them!
Six months after launching the business, Suzanne and Shandra are pleased
with their success, but both feel that they are not reaching enough potential customers.
So far, they have relied on local newspaper advertisements and positive word-of-
mouth to generate business. Suzanne said, "We have come so far and really have a
great little business going. But I think we could become much bigger with the right
plans in place."
63) Details that Suzanne and Shandra discovered about competitors in their market
would most likely be analyzed in which section of a marketing plan?
A) executive summary
B) measurement and controls
C) marketing situation
D) forecasting
E) company description, purpose, and goals
Answer: C
64) As a part of the company's marketing plan, Suzanne wrote, "On-the-Go Grooming
provides convenient and excellent pet grooming services to customers with busy lives
who want the best for their pets." This statement identifies which of the following
about Suzanne and Shandra's business?
A) positioning
B) marketing situation
C) marketing mix
D) strategic controls
E) operational controls
Answer: A
65) Shandra used revenue and cost data the company had gathered over the past six
month to make projections about how much the company's revenue could be expected
to grow if the partners decided to add a second RV motorhome equipped with
grooming stations to the business. Shandra would most likely provide an analysis of
this data in which section of a marketing plan?
A) executive summary
B) measurement and controls
C) marketing situation
D) forecasting
E) company description, purpose, and goals
Answer: D
66) A variety of plans, including a marketing plan, exist within a business plan.
Answer: TRUE
67) Not-for-profit businesses can expect to gain only minimal benefits from
developing business plans.
Answer: FALSE
68) Most business plans include three types of financial statements.
Answer: TRUE
69) A company's net worth is determined by subtracting its liabilities from its assets.
Answer: TRUE
70) A collaborative team is needed to create a business plan.
Answer: FALSE
71) A marketing plan, by definition, is contained within a business plan.
Answer: FALSE
72) A company may have multiple business plans for its product portfolio.
Answer: TRUE
73) Both financial and nonfinancial goals are included in the company description,
purpose, and goals section of a marketing plan.
Answer: TRUE
74) In a SWOT analysis, a marketer considers factors that are internal and external to
the company.
Answer: TRUE
75) The forecasting section of a marketing plan includes predictions for both revenues
and expenses.
Answer: TRUE
76) Future opportunities and threats are considered in the forecasting section of a
marketing plan.
Answer: TRUE
77) The forecasting section of a marketing plan draws on data analysis rather than
subjective judgment.
Answer: FALSE
78) A sales forecast projects a company's future revenues.
Answer: TRUE
79) A marketer would be unlikely to include a public relations plan in the marketing
strategy section of a marketing plan.
Answer: FALSE
80) The measurement and controls section of the marketing plan typically considers
financial, but not non-financial, factors.
Answer: FALSE
81) Elisandra works in her company's finance department and is preparing a statement
that details all of the company's revenues and expenses from various departments and
product lines. Elisandra is preparing a cash-flow statement.
Answer: FALSE
82) Larissa is working on her company's marketing plan and wants to include
information about difficulties her company may face from a strong competitor.
Larissa should include this information under "Weaknesses" in a SWOT analysis.
Answer: FALSE
83) The sales forecast given in the sample marketing plan in your text is based on a
slower growth than last year's growth rate. This implies that sales forecasts should be
realistic.
Answer: TRUE
