Deck 4: Strategy Formation

Question 1

Targeting more than one segment with a single marketing mix is known as .

A)straddling
B)segmenting
C)positioning
D)target drift

Answer 1

A

Question 2

In the market segmentation process,customer needs,wants,and demands are considered segment .

A)bases
B)specializations
C)psychographics
D)descriptors

Answer 2

A

Question 3

Firms can most likely identify competitive advantages with a framework based on their _.

A)supply curve
B)value chain
C)marketing mix
D)sales ratio

Answer 3

B

Question 4

Matching a firm's competitive advantages with attractive market opportunities is best known as .

A)segmenting
B)targeting
C)positioning
D)differentiating

Question 5

A product's position is based on important attributes as perceived by .

A)employees
B)global markets
C)competitors
D)consumers

Question 6

Which of the following best describes a differentiated marketing strategy of product specialization?

A)one product and one segment
B)many products and one segment
C)many products and many segments
D)one product and many segments

Question 7

A differentiated marketing strategy is typically linked to lower .

A)customer value
B)economies of scope
C)economies of scale
D)unit costs

Question 8

All of the following are examples of segmentation bases EXCEPT _ .

A)profitability
B)reliability
C)performance
D)economy

Question 9

Each year,Honeywell asks every department manager to rate his or her department's strengths and weaknesses as well as those of the other departments with which the department interacts. Then each department manager is asked what he or she sees as the greatest threats and opportunities for the company. Honeywell is asking its department managers to engage in a(n).

A)functional planning session
B)market analysis
C)SWOT analysis
D)compatibility assessment

Question 10

According to the text,which of the following best explains why the marketing mix receives different customer responses?

A)declining monetary values
B)varying customer needs
C)shifting political cultures
D)rising education levels

Question 11

What is the first step of strategy formulation?

A)targeting specific customers
B)creating a marketing mix
C)segmenting a particular market
D)identifying competitive advantages

Question 12

A marketer who has decided to use the GE/McKinsey Portfolio Planning Grid will most likely assess segments based on and .

A)segment attractiveness; strength of the firm
B)segment size; competitive advantages
C)strength of the firm; long- term market share
D)product category; segment attractiveness

Question 13

What is the most likely result of straddling?

A)short- term marketing failure
B)long- term marketing failure
C)strong brand equity
D)highly effective brand positioning

Question 14

The division of buyers into groups based on lifestyle or personality characteristics is segmentation.

A)behavioral
B)psychographic
C)geographic
D)demographic

Question 15

In market segmentation,are any underlying motivations that drive consumer consumption,such as security or shelter.

A)needs
B)benefits
C)values
D)demands

Question 16

A marketer decides to serve several different needs of one segment with multiple products and marketing programs. Which type of differentiated marketing is most likely being used by the marketer?

A)selected specialization
B)segment specialization
C)product specialization
D)full market coverage

Question 17

The text describes how Lexus was able to successfully enter the luxury sedan market despite the dominance of BMW. Which of the following best explains how Lexus accomplished this task?

A)Lexus focused on the market segment that valued reliability.
B)Lexus used advertising that attacked BMW's quality ratings.
C)Lexus targeted customers who were interested in high performance.
D)Lexus used full market coverage to lower BMW's market share.

Question 18

Which term refers to the outcome or consequence of purchasing a product?

A)benefit
B)respect
C)value
D)perception

Question 19

Which term refers to the loss of focus on the target segment in favor of other segments?

A)target drift
B)straddling
C)repositioning
D)segment shift

Question 20

Which type of market coverage strategy requires a firm to have the most detailed understanding of its target market?

A)niche marketing
B)undifferentiated marketing
C)mass marketing
D)behavioral target marketing

Question 21

The four substeps of strategy formation in the order that they should occur are identifying competitive advantages,segmenting the market,positioning the product,and targeting the customers.

Question 22

Deploying the marketing mix to claim a unique,valued,and defensible position in the marketplace is known as .

A)targeting
B)segmenting
C)differentiating
D)positioning

Question 23

Core competencies and competitive advantages are the strengths possessed by a firm.

Question 24

The division of buyers into groups based on their product knowledge,usage rate,or loyalty is segmentation.

A)geographic
B)demographic
C)behavioral
D)psychographic

Question 25

Marketing efforts to develop customer loyalty will be more successful if the marketer has a solid understanding of customer needs.

Question 26

Which of the following is LEAST likely to be considered a competitive advantage for a firm?

A)transferable technology
B)valuable resources
C)substitutable products
D)rare capabilities

Question 27

What is differentiated marketing? What are the advantages and disadvantages of this strategy?

Question 28

Unlike business markets,consumer markets can be described by demographic and psychographic variables.

Question 29

Which of the following refers to the process of dividing a market into meaningful and distinct customer groups?

A)segmentation
B)positioning
C)targeting
D)differentiation

Question 30

What is the purpose of conducting a SWOT analysis?

Question 31

A firm that selects and focuses on one or a few single segments is most likely using a strategy of .

A)segment specialization
B)selected specialization
C)full market coverage
D)product specialization

Question 32

How can a firm benefit from segmenting the market?

Question 33

Which of the following is NOT an example of a demographic segmentation variable?

A)income
B)gender
C)education
D)lifestyle

Question 34

A firm that targets very broad segments with relatively homogeneous offerings is most likely using a marketing strategy.

A)niche
B)multi- segment
C)target
D)global

Question 35

Age,income,lifestyle,and location are examples of .

A)perceptual needs
B)segment descriptors
C)segmentation bases
D)psychographic categories

Question 36

A strategy of differentiated marketing will most likely lead to superior value and lower unit costs.