Appendix A: Developing an Effective Marketing Plan
TRUE/FALSE
1. A marketing plan is a detailed description of the resources and actions needed to achieve
stated marketing objectives.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Overview
KEY: Bloom's: Knowledge
2. Strategic planning is the process of anticipating events and market conditions and
deciding how a firm can best achieve its organizational objectives.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Overview KEY: Bloom's: Knowledge
3. The facilities plan estimates the firm’s employment needs and the skills necessary to
achieve organizational goals.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan
TOP: A-Head: Components of a Business Plan
KEY: Bloom's: Knowledge
4. The need for a business plan is more acutely felt in a small company than in a large
multinational company.
ANS: F PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Components of a Business Plan
KEY: Bloom's: Comprehension
5. A marketing plan is not reevaluated once it is completely implemented.
ANS: F PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Comprehension
6. A firm’s marketers must write a marketing plan before formulating an overall marketing
strategy.
, ANS: F PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Comprehension
7. The mission statement puts into words an organization’s overall purpose and reason for
being.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
8. A firm’s goals should be specific and measurable.
ANS: T PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
9. Every marketing plan requires a budget, a time schedule for implementation, and a
system for monitoring the plan’s success or failure.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
10. An exit strategy is a plan for a firm to leave the market.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
MULTIPLE CHOICE
1. Which of the following focuses on the environment in which the marketing plan is to be
implemented?
a. Production plan
b. Competitive analysis
c. Mission statement
d. Executive summary
ANS: B PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
, STA: DISC: Marketing Plan
TOP: A-Head: Components of a Business Plan
KEY: Bloom's: Knowledge
2. Which of the following components of a business plan describes strategies for informing
potential customers about the goods and services offered by the firm as well as strategies
for developing long-term relationships?
a. The marketing plan
b. The financing plan
c. The production plan
d. The facilities plan
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan
TOP: A-Head: Components of a Business Plan
KEY: Bloom's: Knowledge
3. Which of the following components of the marketing mix focuses on deciding the goods
and services a firm should offer in order to meet the needs of its customers?
a. Product strategy
b. Distribution strategy
c. Promotional strategy
d. Pricing strategy
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
4. Which of the following is used to identify the firm’s strengths, weaknesses, opportunities,
and threats within the marketing environment?
a. Business portfolio analysis
b. Breakeven analysis
c. SWOT analysis
d. Marginal analysis
ANS: C PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
5. Why do marketers in most industries have difficulty making estimates and predictions
beyond five years?
a. The elected members hold the office for five years which stabilizes political and
legal environment only for five years.
b. There are many uncertainties in the marketplace.
c. The margin for error in long-term forecasting is very small.
, d. The cost involved limits predictions beyond five years.
ANS: B PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Comprehension
6. A large company sells some of its business units to help cut costs, bolster its share price
and diversify its business interest. This is an example of a firm employing a(n):
a. exit strategy.
b. pricing strategy.
c. distribution strategy.
d. promotion strategy.
ANS: A PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy
TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Application
ESSAY
1. Describe the different components of a business plan.
ANS:
The different components of a business plan are as mentioned below:
1. An executive summary briefly answers the who, what, when, where, how, and why
questions for the plan.
2. A competitive analysis section focuses on the environment in which the marketing plan
is to be implemented.
3. The mission statement summarizes the organization’s purpose, vision, and overall
goals.
The overall business plan includes a series of component plans that present goals and
strategies for each functional area of the enterprise. They typically include the following:
a. The marketing plan, which describes strategies for informing potential customers about
the goods and services offered by the firm as well as strategies for developing long-term
relationships.
b. The financing plan, which presents a realistic approach for securing needed funds and
managing debt and cash flows.
c. The production plan, which describes how the organization will develop its products in
the most efficient, cost-effective manner possible.
d. The facilities plan, which describes the physical environment and equipment required
to implement the production plan.
e. The human resources plan, which estimates the firm’s employment needs and the skills
necessary to achieve organizational goals, including a comparison of current employees
with the needs of the firm, and which establishes processes for securing adequately
trained personnel if a gap exists between current employee skills and future needs.
TRUE/FALSE
1. A marketing plan is a detailed description of the resources and actions needed to achieve
stated marketing objectives.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Overview
KEY: Bloom's: Knowledge
2. Strategic planning is the process of anticipating events and market conditions and
deciding how a firm can best achieve its organizational objectives.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Overview KEY: Bloom's: Knowledge
3. The facilities plan estimates the firm’s employment needs and the skills necessary to
achieve organizational goals.
ANS: F PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan
TOP: A-Head: Components of a Business Plan
KEY: Bloom's: Knowledge
4. The need for a business plan is more acutely felt in a small company than in a large
multinational company.
ANS: F PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Components of a Business Plan
KEY: Bloom's: Comprehension
5. A marketing plan is not reevaluated once it is completely implemented.
ANS: F PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Comprehension
6. A firm’s marketers must write a marketing plan before formulating an overall marketing
strategy.
, ANS: F PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Comprehension
7. The mission statement puts into words an organization’s overall purpose and reason for
being.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
8. A firm’s goals should be specific and measurable.
ANS: T PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
9. Every marketing plan requires a budget, a time schedule for implementation, and a
system for monitoring the plan’s success or failure.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
10. An exit strategy is a plan for a firm to leave the market.
ANS: T PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic STA: DISC: Strategy
TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
MULTIPLE CHOICE
1. Which of the following focuses on the environment in which the marketing plan is to be
implemented?
a. Production plan
b. Competitive analysis
c. Mission statement
d. Executive summary
ANS: B PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
, STA: DISC: Marketing Plan
TOP: A-Head: Components of a Business Plan
KEY: Bloom's: Knowledge
2. Which of the following components of a business plan describes strategies for informing
potential customers about the goods and services offered by the firm as well as strategies
for developing long-term relationships?
a. The marketing plan
b. The financing plan
c. The production plan
d. The facilities plan
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan
TOP: A-Head: Components of a Business Plan
KEY: Bloom's: Knowledge
3. Which of the following components of the marketing mix focuses on deciding the goods
and services a firm should offer in order to meet the needs of its customers?
a. Product strategy
b. Distribution strategy
c. Promotional strategy
d. Pricing strategy
ANS: A PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
4. Which of the following is used to identify the firm’s strengths, weaknesses, opportunities,
and threats within the marketing environment?
a. Business portfolio analysis
b. Breakeven analysis
c. SWOT analysis
d. Marginal analysis
ANS: C PTS: 1 DIF: Difficulty: Easy
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Knowledge
5. Why do marketers in most industries have difficulty making estimates and predictions
beyond five years?
a. The elected members hold the office for five years which stabilizes political and
legal environment only for five years.
b. There are many uncertainties in the marketplace.
c. The margin for error in long-term forecasting is very small.
, d. The cost involved limits predictions beyond five years.
ANS: B PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Analytic
STA: DISC: Marketing Plan TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Comprehension
6. A large company sells some of its business units to help cut costs, bolster its share price
and diversify its business interest. This is an example of a firm employing a(n):
a. exit strategy.
b. pricing strategy.
c. distribution strategy.
d. promotion strategy.
ANS: A PTS: 1 DIF: Difficulty: Moderate
OBJ: Appendix A NAT: BUSPROG: Reflective Thinking STA: DISC: Strategy
TOP: A-Head: Creating a Marketing Plan
KEY: Bloom's: Application
ESSAY
1. Describe the different components of a business plan.
ANS:
The different components of a business plan are as mentioned below:
1. An executive summary briefly answers the who, what, when, where, how, and why
questions for the plan.
2. A competitive analysis section focuses on the environment in which the marketing plan
is to be implemented.
3. The mission statement summarizes the organization’s purpose, vision, and overall
goals.
The overall business plan includes a series of component plans that present goals and
strategies for each functional area of the enterprise. They typically include the following:
a. The marketing plan, which describes strategies for informing potential customers about
the goods and services offered by the firm as well as strategies for developing long-term
relationships.
b. The financing plan, which presents a realistic approach for securing needed funds and
managing debt and cash flows.
c. The production plan, which describes how the organization will develop its products in
the most efficient, cost-effective manner possible.
d. The facilities plan, which describes the physical environment and equipment required
to implement the production plan.
e. The human resources plan, which estimates the firm’s employment needs and the skills
necessary to achieve organizational goals, including a comparison of current employees
with the needs of the firm, and which establishes processes for securing adequately
trained personnel if a gap exists between current employee skills and future needs.
