Deck 16: Marketing Strategy

Question 1

It is a good idea to try new products and new customer bases at the same time.

Answer 1

False

Question 2

A company's brands or products are classified solely according to whether each has a strong or weak market
share.

Answer 2

False

Question 3

Low prices and low margins necessitate the hassle of having to deal in large volume.

Answer 3

True

Question 4

Cost leadership means producing goods and services more efficiently than the competition.

Question 5

Product development is the riskiest strategy in the Ansoff Product-Market Growth Matrix.

Question 6

A brand with a relatively large share in a growing market is called a "star."

Question 7

Customers usually believe that high prices are a cue to higher quality.

Question 8

To increase profitability, we have to increase sales volume or raise prices.

Question 9

Arlin owns a firm that specializes in producing and marketing cosmetics and hair care products. In thinking about a portfolio assessment for his company, and in considering his firm's strategy, Arlin needs to take a narrow view ­ one that looks at specific products, or possibly a single product line.

Question 10

A brand with small share in a market that is NOT growing is called a "dog."

Question 11

Cash cows don't need much marketing attention.

Question 12

In the "General Electric" model, judgments about the brand's performance are implicit, not explicit.

Question 13

In the General Electric Model, the dimensions that are measured are market strength and business attractiveness.

Question 14

Portfolio assessment for marketing strategy should include a broad view.

Question 15

Whereas the cost leadership and differentiation approaches are said to be broad, the focused strategy is narrower.

Question 16

The formula for profit is Profit = (Sales Volume x Price) + (Variable Coasts x Fixed Costs).

Question 17

In the spirit of a product's life cycle, withdrawing marketing support can nudge a brand into faster decline.

Question 18

Growing profit is the ultimately goal of any company.

Question 19

If brands referred to as "dogs" have residual value, they're candidates for divestment.

Question 20

The formula for sales revenue is Sales Revenue = Sales Volume + Price.

Question 21

Some companies revisit strategic assumptions from time-to-time just because they are thoughtful and reflective.

Question 22

Strategic planning involves a reflection of our corporate identity.

Question 23

It's completely possible for a company to be a leader for some of its brands and more of a follower for its other
brands.

Question 24

If a company's mantra is "We're unique," they are probably pursuing a cost leadership strategy.

Question 25

Strategic goals must integrate all 4Ps.

Question 26

Jacques is contemplating the possible moves his camping equipment firm can make to become more competitive in the marketplace. At the highest level of analysis, there are really three strategies available for Jacques's firm to achieve its goals: (1) do nothing, (2) do nothing different from the status quo, and (3) do something different.

Question 27

When the gauges on a company dashboard head to the center or to the left, it means it's time to panic.

Question 28

Typically, we have control over all the 5Cs.

Question 29

A company or industry might revisit strategic planning questions if they are experiencing changes in profitability.

Question 30

Many companies want to be considered followers because this is the safer route to success in the marketplace.

Question 31

When business drops or competitors step up, a status quo strategy will yield good results.

Question 32

All firms assume either a leader or follower status in the marketplace.

Question 33

Frank is the VP of Marketing, and his CEO has charged him with implementing a strategy that will grow the market. In order to grow the market Frank will likely have to break down the overall strategy of growing the market into smaller, simplified component strategies, such as increasing spending on advertising, and researching why his company's non­users do not purchase their product.

Question 34

A company's tendency toward offensive or defensive actions correlates with its size.

Question 35

Goals regarding better communications can include spending advertising dollars more wisely and figuring out which media make the most sense to customer segments.

Question 36

The Treacy and Wiersema strategies are operational leadership, product excellence, and customer intimacy.

Question 37

The first company to market a new product or idea is in a good position because truly new products always capture the attention of customers.

Question 38

Customer satisfaction is a major goal classification.

Question 39

Sales goals should be stated in terms of profits.

Question 40

Product leadership can be achieved by predictably providing excellent quality in products and services.

Question 41

What is a company's ultimate goal?

A) growing profit
B) expanding into as many segments as possible
C) being a leader
D) pleasing customers

Question 42

Looking for suppliers who are cheaper than our current ones but still high quality is an example of a way to .

A) increase sales volume
B) change our prices
C) decrease variable costs
D) decrease fixed costs

Question 43

Which of the following is the correct formula for Variable Costs?

A) Variable Unit Cost + Sales Volume (in units)
B) Variable Unit Costs x Sales Volume (in units)
C) Variable Unit Costs / Sales Volume (in units)
D) Variable Unit Costs - Sales Volume (in units)

Question 44

Which of the following measures the dimensions of market attractiveness and business strength?

A) Ansoff's Product­Market Growth Matrix
B) The BCG Matrix
C) The General Electric Model
D) Porter and Strategies

Question 45

A brand with small share in a market that is not growing is called a .

A) dog
B) star
C) cash cow
D) question mark

Question 46

All of the following may be considered part of the class known as "question marks" EXCEPT:

A) products in development
B) products in uncertain markets
C) new technologies
D) products with a small share in a non-growing market

Question 47

Karen is working on classifying all her company's products in terms of whether they have strong or weak market share and whether this share is in a slow or growing market. What type of strategic framework is she using?

A) Ansoff Product-Market Growth Matrix
B) BCG Matrix
C) The General Electric Model
D) Porter and Strategies

Question 48

Which strategy in the Ansoff Product-Market Growth Matrix combines new markets and new products?

A) market development
B) product development
C) market penetration
D) diversify

Question 49

Which strategy in the Ansoff Product-Market Growth Matrix is the riskiest?

A) market penetration
B) product development
C) market development
D) diversification

Question 50

The CEO of Winchester Inc. always says, "It's all about sales growth!" Which marketing strategy framework is he most likely to use?

A) Ansoff's Product­Market Growth Matrix
B) The BCG Matrix
C) The General Electric Model
D) Porter and Strategies

Question 51

Which of the following is the correct formula for sales revenue?

A) Sales Volume - Cost
B) Sales Volume x Price
C) Sales Volume + Price
D) Sales Volume / Cost

Question 52

Apple's iPod brand has a relatively large share in a growing market, and thus is best classified as a .

A) cash cow
B) star
C) question mark
D) dog

Question 53

If a company wants to increase its profitability, they need to sales volume, prices, or costs.

A) increase, change, decrease
B) decrease, change, increase
C) change, decrease, increase
D) decrease, increase, change

Question 54

Which strategy in the Ansoff Product-Market Growth Matrix combines current markets and new products?

A) market penetration
B) product development
C) diversify
D) market development

Question 55

Brand X is not performing well (i.e., low market share) in a high growth industry. Brand X is a .

A) question mark
B) star
C) cash cow
D) dog

Question 56

A company most wants to optimize the number of its .

A) stars
B) cash cows
C) dogs
D) question marks

Question 57

Which of the following is the correct formula for profit?

A) (Sales Volume + Price) / (Variable Costs x Fixed Costs)
B) (Sales Volume + Price) - (Variable Costs x Fixed Costs)
C) (Sales Volume x Price) / (Variable Costs + Fixed Costs)
D) (Sales Volume x Price) - (Variable Costs + Fixed Costs)

Question 58

Which strategy in the Ansoff Product-Market Growth Matrix combines new markets and current products?

A) market development
B) diversify
C) market penetration
D) product development

Question 59

Which strategy in the Ansoff Product-Market Growth Matrix combines current markets and current products?

A) market development
B) product development
C) market penetration
D) diversify

Question 60

When a brand has strong market share in an industry that is not experiencing a high rate of growth, it is best referred to as a .

A) star
B) dog
C) cash cow
D) question mark

Question 61

Which of the following is NOT one of the Treacy and Wiersema strategies?

A) cost leadership
B) operational excellence
C) product leadership
D) customer intimacy

Question 62

A package delivery company or a cell phone company wouldn't go far if they could not deliver products smoothly and reliably. This means that is necessary for these industries.

A) operational excellence
B) product leadership
C) customer intimacy
D) cost leadership

Question 63

What are the two dimensions measured in the General Electric Model?

A) market risk and business flexibility
B) market flexibility and business risk
C) market strength and business attractiveness
D) market attractiveness and business strength

Question 64

According to Porter, is an attempt to distinguish one's products as unique in the industry.

A) cost leadership
B) differentiation
C) focus
D) excellence

Question 65

The General Electric Model can be compared to SWOT analysis. Market attractiveness corresponds to the element is SWOT analysis, whereas business strength corresponds to the element.

A) external, internal
B) internal, external
C) positive, negative
D) negative, positive

Question 66

Company ABC has a mature brand in a stable market, so managers maintain business as usual--same price, same marketing support, etc. What strategy are they using?

A) doing nothing
B) doing nothing differently
C) doing something different
D) doing everything differently

Question 67

What does ROM stand for?

A) revenue or money
B) reflux of markets
C) return on marketing
D) respect of materials

Question 68

Which of the following is NOT true about a company dashboard?

A) They can take any shape.
B) If a gauge is in the center, the company is in trouble.
C) They can include financial information.
D) They can include HR information.

Question 69

A company whose mantra is, "We do one thing very well" is probably pursuing which of the following strategies?

A) cost leadership
B) differentiation
C) focus
D) price leadership

Question 70

Kenneth is convinced that many indicators of his company's success exist, but is unsure of how to critically evaluate and link these factors. Kenneth should consider establishing a to gauge his company's performance.

A) strategy
B) dashboard
C) scoreboard
D) metrics-based report

Question 71

Imagine your boss wants you to investigate ways your company might be able enhance customer satisfaction, create an attractive loyalty program, and reward your customers. Most likely, your company's immediate goal is to .

A) delight customers
B) make more money
C) enhance product offerings
D) redefine its position

Question 72

Bill advises Mary that there are essentially three strategies to achieving goals. Assuming Bill is correct, how would he describe these three strategies?

A) do nothing; do nothing different from status quo; do something different
B) segment, target, position
C) customer satisfaction, customer loyalty, customer retention
D) be the leader, be a quick follower, be a follower

Question 73

Which is NOT one of the four classes of goals?

A) focus on making money
B) pleasing customers
C) being a leader
D) repositioning ourselves in the market space

Question 74

It is not unusual for a company to be more in its youth and to age toward when it has market share, sales, and customers to protect.

A) stable, instability
B) of a follower, leadership
C) aggressive, conservatism
D) passive, liberalism

Question 75

The firm Patrick started nearly a decade ago is commonly referred to as a market leader. Upon reflecting on the leadership status of his company, Patrick considered the qualities that could eventually bring a firm to a leading position in the marketplace. Which of the following is likely NOT a reason in Patrick's mind for a company being classified as a "leader?"

A) Sometimes a company is said to be the leader because it has the largest market share.
B) Sometimes a company is said to be a leader because it was first to market.
C) Sometimes a company is said to be a leader because it is a consistent and profitable follower.
D) Sometimes a company is known for being innovative or quick to improve some other company's ideas.

Question 76

When high-tech and electronics companies churn out new products constantly, it demonstrates that they are competing for .

A) operational excellence
B) product leadership
C) customer intimacy
D) cost excellence

Question 77

Which of the following is an old, traditional management adage?

A) Leadership above management.
B) Measure twice, manage once.
C) You can only manage one thing at a time.
D) You can't manage what you don't measure.

Question 78

Think about the following questions: What channels do our target customers find most desirable? Do we need to continue offering and managing multi-channel touch points? Can we move some of our customer segments to self service or lower cost channel interactions? Would it make sense to off load and outsource some of our business functions to our current partners? Would they be capable of stepping in, or must we seek new partners? If a company is evaluating questions/topics such as these, with which of the goals listed below is the company most likely concerned?

A) delighting customers
B) making more money
C) enhancing product offerings
D) redefining its position

Question 79

A company whose mantra is "We are efficient" is probably pursuing which of the following strategies?

A) cost leadership
B) differentiation
C) focus
D) product excellence

Question 80

According to Porter, refers to producing goods and services for efficiently than the competition.

A) cost leadership
B) differentiation
C) focus
D) excellence