Deck 2: Strategic Planning for Competitive Advantage

Question 1

A market segment is a group of individuals or organizations who share one or more characteristics.

Answer 1

True

Question 2

A market development strategy may involve creating new uses for old products to stimulate additional sales among existing customers,while also bringing in new buyers.

Answer 2

True

Question 3

Marketing objectives must be consistent with and indicate the priorities of the organization.

Answer 3

True

Question 4

Market segments can be differentiated by ethnicity and multicultural aspects.

Question 5

Organizations use product development strategies to serve customers in their existing markets.

Question 6

Product development strategies require creation of new markets.

Question 7

Manufacturers use product development strategies to create new products for new markets.

Question 8

An organization is most likely to opt for a market development strategy to boost sales of a new product.

Question 9

Marketing managers rely on customer databases for effective implementation of the market penetration strategy.

Question 10

A company's assets include patents,copyrights,and technology that are superior to those of the competition.

Question 11

Market segments cannot be differentiated by demographic characteristics.

Question 12

A diversification strategy can be risky when a firm is entering unfamiliar markets.

Question 13

A company that sells paper stationery made of recycled materials,which no other paper manufacturing company in the market has the ability produce,has a competitive advantage.

Question 14

A firm using the market penetration strategy would try to attract new customers to existing products.

Question 15

Target markets can be selected by appealing to the entire market with one marketing mix.

Question 16

A product/service differentiation competitive advantage refers to defining a business in terms of goods and services rather than in terms of the benefits customers seek.

Question 17

Individuals in the age group of 12 to 18 years,who extensively use the internet is an example of a market segment.

Question 18

A company's skills are functions-such as customer service and promotions-that the firm performs better than its competitors.

Question 19

An ideal marketing penetration strategy would be to offer cash backs and discounts on products to customers.

Question 20

Diversification strategies involve increasing sales of existing products in existing markets.

Question 21

Gemini Inc.has prepared a market plan for its air conditioners.The managers at Gemini have outlined several activities for their subordinates based on a marketing plan.The employees are required to finish these activities within specific time frames.The managers have also allocated a budget for each activity.In the context of marketing planning,which of the following concepts is illustrated in the scenario?

A)Divestment
B)Implementation
C)Diversification
D)Vertical integration

Question 22

Which of the following is closely associated with the diversification strategy?

A)Entering new markets with little competition
B)Increasing overhead production costs
C)Decreasing the prices of existing products
D)Selling modified products to the same customers

Question 23

Relish is a bakery that has introduced a range of low-fat pizzas for its present customers.This is an example of product development strategy.

Question 24

NutriPro has many business divisions.One of its business divisions has a large customer base for its breakfast cereal in Oriel.NutriPro's other business division sells cookies in Lanslot.NutriPro has now introduced its cookies in Oriel.To ensure good sales,the company is also offering discounts.Which of the following strategies is illustrated in this scenario?

A)Restraint of trade
B)Self-dealing
C)Market penetration
D)Divestment

Question 25

Which of the following statements is true about strategic business units (SBUs)?

A)They do not have competitors of their own.
B)They do not plan collaboratively with other SBUs.
C)They do not have specific target markets.
D)They do not perform manufacturing and marketing functions.

Question 26

A marketing strategy involves the activities of selecting and describing one or more target markets.

Question 27

Imitating a rival's competitive advantage requires the company to first identify the rival's competitive advantage.

Question 28

A marketing strategy involves developing and maintaining a marketing mix.

Question 29

Which of the following statements is true about the niche strategy?

A)Only large companies can implement a niche strategy.
B)Companies that adopt a niche strategy have only a small number of customers.
C)Only the companies that do not have competitors can adopt a niche strategy.
D)Companies that adopt a niche strategy can only gain a price advantage over competitors.

Question 30

The growing emphasis on continuing education and executive development by colleges and universities is a market development strategy.

Question 31

Which of the following questions considered by marketers is best aligned with distribution strategies?

A)Which market segment should we target?
B)How do we convince customers to buy our products?
C)What products should we manufacture?
D)Where do customers like to shop?

Question 32

An effective marketing objective:

A)is qualitative rather than quantitative.
B)is compared to a benchmark.
C)is written independently of the mission statement.
D)is unattainable.

Question 33

A sustainable competitive advantage is a function of the speed with which competitors can imitate a leading company's strategy and plans.

Question 34

Which of the following questions considered by markets is closely associated with promotion?

A)How can we use social media to increase our products sales?
B)Should we increase the prices of our products?
C)What should the packaging of our products look like?
D)How can we improve our product quality?

Question 35

Marketing objectives serve as motivators by creating something for employees to strive for.

Question 36

In the context of SWOT analysis,marketers can identify strengths and weaknesses by focusing on:

A)employee capabilities.
B)government policies.
C)quality of products produced by competitors.
D)foreign competitors.

Question 37

In the context of marketing planning,implementation requires:

A)micromanagement strategies.
B)anti-competitive strategies.
C)centralization of the firm.
D)delegating authority to employees.

Question 38

The key to having a competitive advantage is the ability to imitate a competitor's strategy.

Question 39

The price component of a marketing mix is:

A)a competitive weapon for companies.
B)decided after the promotion strategies are finalized.
C)the starting point of the marketing mix.
D)the least flexible element of the marketing mix.

Question 40

In the context of marketing planning,implementation involves:

A)allocating resources.
B)identifying market segments.
C)defining the business mission.
D)assessing internal capabilities.

Question 41

Which of the following statements is true about stars in the portfolio matrix?

A)They have low growth potential and small market shares.
B)They require minimal funding.
C)They have low market shares in high-growth industries.
D)They are fast growing market leaders.

Question 42

Which of the following can be considered as a business opportunity in the context of SWOT analysis?

A)Qualified employees
B)Good production facilities
C)Low turnover rates
D)Favorable government regulations

Question 43

Which of the following can help companies make strategic planning effective?

A)Refraining from involving top management in the strategic planning process
B)Making strategic an ongoing process rather than an annual exercise
C)Eliminating managerial intuitions
D)Avoiding cross-functional teams

Question 44

The heart of the marketing mix is the:

A)product offering and product strategy.
B)place and distribution strategy.
C)sales promotion and personal selling strategy.
D)product packaging and pricing strategy.

Question 45

Strategic planning:

A)should be an annual exercise.
B)should not be influenced by managerial intuition.
C)should be done independently by company shareholders.
D)should be based on creativity.

Question 46

In the context of a marketing mix,the product strategy involves:

A)warranty.
B)point of purchase.
C)price of the product.
D)personal selling..

Question 47

Mitchell's is a popular brand of women's clothing.During market research,the company observed that a large number of its existing customers believes and promotes the use of sustainable goods.Based on findings of the research,the top management of the company decides to use eco-friendly raw materials in manufacturing their clothes.Which of the following strategies is Mitchell's using in this scenario?

A)Market development
B)Cost leadership
C)Product differentiation
D)Market penetration

Question 48

Turner Electronics is a ten-year-old company.In the past decade,the company hasn't created any innovative products that have helped set it apart from the rest of its competitors.However,when any of its products need to be repaired or fine-tuned,it offers its customers top-notch product checks.As a result,the company has managed to retain its wide customer base.Which of the following strategies is Turner Electronics using in this scenario?

A)Product development
B)Diversification
C)Market penetration
D)Service differentiation

Question 49

The promotion component of the marketing mix involves:

A)pricing strategies.
B)personal selling.
C)product packaging.
D)manufacturing strategies.

Question 50

Thompson Crayons Ltd.is a manufacturer of crayons and colored pencils in Rhodia.The company has started packaging their products in vibrant colored boxes,as opposed to brown boxes used in the past,in order to increase their sales.In this scenario,Thompson Crayons Ltd.is using a _____ strategy.

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

Question 51

Which of the following considered by marketers is most closely related to distribution strategies?

A)How can we make our product packaging attractive?
B)Which market segment should we target?
C)How can we effectively store raw materials?
D)What should be our medium for advertising?

Question 52

A marketing plan should:

A)be viewed as a series of sequential steps.
B)be developed independently of the external business environment.
C)define the business mission.
D)exclude budgets and pricing.

Question 53

When properly created,a strategic business unit (SBU):

A)has a specific target market.
B)plans collaboratively with other SBUs of the company.
C)has a maximum of hundred employees.
D)shares the mission of its parent company.

Question 54

Which of the following practices can help businesses gain a cost competitive advantage?

A)Innovating simplified production techniques
B)Using expensive raw materials
C)Customizing products with extra frills
D)Manufacturing products in smaller quantities

Question 55

Which of the following activities is carried out during implementation of a marketing plan?

A)Defining the business mission
B)Gathering information about customers
C)Setting up strategic business units
D)Creating and managing a task force

Question 56

Which of the following examples illustrates a niche strategy?

A)Libra,a motor company,uses new production techniques to achieve economies of scale.
B)Alpha Electronics has decided to dissolve one of its strategic business units.
C)Venus Inc.has decided to target customers in Asia.
D)Relish,a confectionery store,sells its products only in one city.

Question 57

A publisher of children's books defines its business as "printing books" instead of "meeting educational needs of students." This illustrates:

A)marketing synergy.
B)marketing myopia.
C)opportunism
D)self-dealing

Question 58

Which of the following statements is true of strategic business units (SBUs)of an organization?

A)They typically have strategies of their own.
B)Their functions are limited to manufacturing.
C)They typically serve the same target markets as the other SBUs of the organization.
D)They do not have missions of their own.

Question 59

The distribution strategy in the marketing mix is concerned with:

A)transporting raw materials or finished products.
B)educating customers about product benefits.
C)providing after-purchase services to customers.
D)public relations activities.

Question 60

Which of the following actions is closely associated with the niche strategy?

A)Choosing a target market that is not crucial for the success of major competitors
B)Manufacturing products in bulk and targeting the average customer
C)Selling products that do not have extra frills
D)Creating cross-departmental teams across all the strategic business units

Question 61

A company can gain a cost competitive advantage by:

A)reorganizing functional departments into cross-disciplinary teams.
B)manufacturing highly customized products.
C)providing extra options on products or services.
D)manufacturing products in small quantities.

Question 62

Which of the following actions can enable companies to gain a cost competitive advantage?

A)Removing frills from products
B)Increasing marginal customers
C)Eliminating reverse engineering efforts
D)Developing additional exclusive functional departments

Question 63

Which of the following is an example of a market segment?

A)A group of individuals who are diabetic
B)A group of retailers selling the same products
C)A group of companies manufacturing different products
D)A group of individuals with different product requirements

Question 64

A marketing plan can be made more effective by:

A)incorporating managerial intuition.
B)incorporating marketing myopia.
C)making it a series of sequential steps.
D)keeping it brief and broad.

Question 65

Which of the following statement is true about the price component of a marketing mix?

A)It is the quickest element to change.
B)It is the least important of the four Ps.
C)It is the starting point of the marketing mix.
D)It is decided independently of the external environment of the business.

Question 66

Which of the following is associated with the market development strategy?

A)Limiting the production of products
B)Increasing the prices of products
C)Adding new features to products
D)Limiting resources used for promotion

Question 67

A marketing plan is most likely to discuss:

A)first-line operational strategies.
B)distribution channels.
C)supplier details.
D)downsizing strategies.

Question 68

The product in the marketing mix:

A)includes point of purchase.
B)includes company image.
C)includes personal selling.
D)includes pricing..

Question 69

The notion of competitive advantage means that:

A)a successful firm will stake out a position unique in some manner from its rivals.
B)the advantage can be enjoyed only for a short period.
C)a company manufactures products which are similar to those of its competitors.
D)an established firm focuses solely on developing a low-price competitive advantage.

Question 70

Varion Air offers its customers a complementary air ticket on the purchase of three business class tickets.Varion Air's strategy best represents the ____ element of its marketing mix.

A)distribution
B)place
C)promotion
D)product

Question 71

Which of the following statements is true of a niche strategy?

A)A niche strategy is most suitable for firms that have achieved economies of scale.
B)A niche strategy requires business firms to reduce after-purchase service options.
C)A niche strategy involves removing extra frills from products.
D)A niche strategy is ideal for small companies with limited resources.

Question 72

In the context of marketing mix,promotion includes:

A)public relations activities.
B)pricing strategies.
C)after-purchase service.
D)storage and transportation of finished products.

Question 73

Jove is a chocolate manufacturing company in Harrington City.While most of its competitors produce not more than three basic varieties of chocolates,Jove sells over 50 different varieties of flavored chocolates.This gives them an edge over other chocolate makers in Harrington City.Which of the following concepts is illustrated in the scenario?

A)Divestment
B)Market penetration
C)Sustainable competitive advantage
D)Diversification

Question 74

The product component of a marketing mix involves:

A)point of purchase.
B)distribution.
C)advertising.
D)brand name.

Question 75

Synergy Corp.is large seller of energy-efficient bulbs that uses extensive promotional strategies to stimulate sales.Synergy has noticed that a competitor is doing well and is steadily gaining a large market share.The marketers at Synergy want to counter the competitor immediately by increasing the sales of its bulbs.What quick step can Synergy take to stimulate the sales of its products?

A)Change the pricing strategy
B)Adopt new production techniques
C)Enter into new supplier contracts
D)Adopt a divesting strategy

Question 76

Which of the following is true of a product/service differentiation competitive advantage?

A)It tends to be more attractive to top managers because of its durability.
B)It provides a shorter-lasting competitive advantage compared to cost competitive advantages.
C)It focuses primarily on offering a low priced product or service than that of the competitor.
D)It is subject to continual erosion,as opposed to cost competitive advantages.

Question 77

Cost competitive advantage can be achieved by:

A)avoiding reverse engineering efforts.
B)avoiding manufacturing products in bulk.
C)avoiding marginal customers.
D)avoiding government subsidies.

Question 78

Companies can make strategic planning more effective by:

A)ensuring the participation of top management.
B)ensuring that decision making is centralized.
C)making strategic planning an annual exercise.
D)avoiding cross-functional teams.

Question 79

Nile Inc.is one of the leading shoe manufacturing companies in Baltoni.It manufactures canvas shoes that are quite similar to those produced by other brands.The management of the company has decided to adopt a product/service differentiation competitive strategy.What is Nile Inc.likely to do in this scenario?

A)Offer their products at discounted rates and make the cost of their products lower than those of their competitors.
B)Produce aerobic,tennis,and baseball shoes that have specialized features.
C)Advertise their products through more media outlets than it previously did.
D)Start selling products to markets outside Baltonia.

Question 80

A marketing mix typically involves:

A)distribution strategies.
B)divestiture strategies.
C)restrictive covenants.
D)federal regulations.