Deck 1: Overview of Marketing Strategy the Strategic Marketing Process

Question 1

A product that falls within the fair value zone of a value map is perceived by consumers as delivering benefits that are ________ the product's cost.

A) equal to
B) less than
C) greater than
D) unrelated to

Answer 1

A

Question 2

Targeting very large markets is best known as ________ marketing.

A) mass
B) target
C) niche
D) strategic

Answer 2

A

Question 3

A firm with a marketing strategy of differentiation most likely sells a product with qualities that ________.

A) competitors do not offer and that specific customers value
B) competitors offer and that numerous customers demand
C) a small segment of consumers demand at a low price
D) a wide range of consumers perceive as convenient

Answer 3

A

Question 4

The quality a customer receives adjusted for the price a customer pays for a product is known as ________.

A) perception
B) dividend
C) loyalty
D) value

Question 5

Research indicates that a firm with an effective marketing-oriented strategy is more likely to experience higher ________.

A) long-term profits
B) production costs
C) short-term profits
D) start-up costs

Question 6

Which of the following involves identifying small segments of customers and serving their specific needs?

A) customer advantage strategy
B) brand leadership strategy
C) customer intimacy strategy
D) cost leadership strategy

Question 7

According to Peter Drucker,which of the following is most essential to defining the purpose and strategy of a business?

A) customer needs
B) value added profits
C) cross-cultural sales
D) production efficiencies

Question 8

A firm that has determined which customers to serve,where to conduct business,and how to meet customer needs has most likely developed a ________.

A) profit analysis
B) business portfolio
C) marketing strategy
D) public relations plan

Question 9

A marketing strategy of competitive advantages is typically based on either ________ or ________.

A) mass global appeal; cost leadership
B) cost leadership; differentiation
C) segmentation; globalization
D) differentiation; reliability

Question 10

________ is the logic by which a company hopes to achieve profitable customer relationships.

A) Strategic HR management
B) Product differentiation
C) Corporate branding
D) Marketing strategy

Question 11

A ________ is a graphical representation of the ratio between a product's benefits and costs.

A) data mine
B) value map
C) fair value matrix
D) customer data graph

Question 12

A firm's marketing concept should primarily focus on ________.

A) educating potential buyers
B) establishing product trends
C) meeting specific customer needs
D) reducing labor and production costs

Question 13

What are the two generic frameworks of most marketing strategies?

A) niche scope, target segmentation
B) competitive advantage, globalization
C) customer intimacy, competitive scope
D) competitive advantage, competitive scope

Question 14

Which of the following is LEAST likely to be used by a firm pursuing a marketing strategy of differentiation?

A) reliability
B) convenience
C) performance
D) cost leadership

Question 15

What are the three basic elements of an effective marketing strategy?

A) singularity, target segments, competitive advantages
B) target segments, customer needs, geographic markets
C) singularity, product differentiation, corporate resources
D) competitive advantages, public relations, business models

Question 16

Which marketing strategy involves developing the lowest cost structure in order to earn higher margins?

A) competitive scope
B) cost leadership
C) segmentation
D) differentiation

Question 17

________ is how a firm differentiates itself from competitors in a way that customers value.

A) Segmentation
B) Diversification
C) Development
D) Singularity

Question 18

Which of the following marketing strategies is LEAST likely to generate long-term success for a firm?

A) differentiation in a mass market
B) cost leadership in a niche market
C) differentiation in a niche market
D) cost leadership in a mass market

Question 19

A firm could most likely increase the perceived benefits of a product by ________.

A) reducing the overall purchase price
B) reducing the operating costs associated with the product
C) adding maintenance costs associated with owning the product
D) adding a desirable new feature to the product without increasing the purchase price

Question 20

According to marketing strategy expert Michael Porter,"Competitive strategy is about being ________."

A) efficient
B) different
C) superior
D) satisfactory

Question 21

Singularity in a marketing strategy asserts that firms should strive to be better than their competitors in all areas.

Question 22

Strategic decisions primarily affect a firm's ________.

A) globalization
B) marketing
C) present
D) future

Question 23

What is a marketing strategy? What questions should a comprehensive marketing strategy answer?

Question 24

A firm selling new products to new markets is most likely using a growth strategy of ________.

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

Question 25

What is the first step in the strategic marketing and planning process?

A) market segmentation
B) product promotion
C) situation assessment
D) strategy formation

Question 26

For most firms,a niche cost-leadership strategy is difficult to implement and sustain because scale is so closely linked to cost advantage.

Question 27

Which growth strategy involves selling more of a firm's existing products to the firm's existing markets?

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

Question 28

What growth strategies are available to firms that want to expand their sales?

Question 29

Explain the purpose of a value map,providing details about how the map should be interpreted.

Question 30

A value frontier is based on customer perceptions of price and performance relative to other offerings in the marketplace.

Question 31

Which of the following is constantly pushing the value frontier towards higher quality and/or lower prices?

A) innovation
B) wage increases
C) market expansion
D) government spending

Question 32

A company can increase the perceived value of its product by increasing the perceived benefits,increasing the perceived costs,or a combination of the two.

Question 33

When Toys-R-Us opened Kids-R-Us and Babies-R-Us,the firm was using the method of ________.

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

Question 34

Which growth strategy is most likely being used by a firm selling new products to existing markets?

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

Question 35

The author of the text describes IBM's entry into the area of personal computers as an ________ strategic decision.

A) ad ho
B) insightful
C) incompetent
D) advantageous

Question 36

According to a value-frontier framework,which of the following is LEAST likely to be an effective long-term marketing strategy?

A) high price, high performance
B) high price, low performance
C) low price, low performance
D) low price, high performance

Question 37

According to the product-market growth framework,a firm's strategic growth can only occur through market penetration.

Question 38

Which of the following best describes a growth strategy of market development?

A) selling existing products to existing markets
B) selling existing products to new markets
C) selling new products to existing markets
D) selling new products to new markets