Deck 2: Developing Marketing Strategies and a Marketing Plan

Question 1

A mission statement describes the specific actions a firm will take to achieve its goals.

Answer 1

False

Question 2

Isaac is looking for ways to offer new goods and services to his existing customers.He is pursuing a market development strategy.

Answer 2

False

Question 3

Taking steps to encourage customer loyalty is one way to:

A)test new products.
B)promote efficiency.
C)sustain an advantage over competitors.
D)develop new pricing strategies.
E)improve supply chain effectiveness.

Answer 3

C

Question 4

Geraldo manages the electrical turbine engine division of General Electric Corporation.He makes most decisions independently,without consulting headquarters.Geraldo manages a strategic business unit.

Question 5

The "Implement Marketing Mix" step of the strategic marketing planning process is part of the control phase.

Question 6

STP refers to segmentation,testing,and promotion.

Question 7

iTunes software is often credited for the success of the Apple iPod MP3 player,because it made the iPod easier to use than competing players.This is an example of a sustainable competitive advantage.

Question 8

Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantage?

A)Locational excellence
B)Customer excellence
C)Operational excellence
D)Product excellence
E)Planning excellence

Question 9

The marketing planning process always proceeds sequentially through the five steps.

Question 10

To build a sustainable competitive advantage,companies should focus on a single strategy.

Question 11

Price should be based on the value that the customer perceives.

Question 12

The components of a SWOT analysis are Strengths,Weaknesses,Opportunities and Tactics.

Question 13

Duke's is a surfer-themed restaurant chain in Hawaii.Most of its customers are tourists.In a SWOT analysis for Duke's,the possibility that the recession might cut back on tourism in Hawaii would be considered a Weakness.

Question 14

Firms are typically more successful when they focus on opportunities that build on their competitors' strengths.

Question 15

Walmart's strong supplier relations and efficient supply chain have helped the firm to achieve operational excellence.

Question 16

Sandisk's MP3 player product line (called the Sansa)has a low relative market share.The MP3 player market is expected to decline over the next few years.In BCG portfolio analysis,the Sansa would be considered a dog.

Question 17

When Ramona,the keynote speaker at a major business leaders' conference,arrived in the middle of the night at the Ritz-Carlton,she was exhausted and her suit was wrinkled from her ten-hour plane trip.The night clerk found someone to dry clean Ramona's suit and have it ready for her morning presentation.She has been a loyal Ritz-Carlton customer ever since.In this example,Ritz-Carlton demonstrated the macro strategy of:

A)customer excellence
B)operational excellence
C)product excellence
D)promotional excellence
E)global excellence

Question 18

If Starbucks decided to start selling organic meals to corporate eating facilities,it would be pursuing a diversification strategy.

Question 19

If a firm wants to develop a sustainable competitive advantage,it should:

A)begin an aggressive campaign to buy up competitors.
B)copy the innovative features of other firms that are attractive to customers.
C)examine its operations and customer relations to identify significant things competitors cannot easily copy.
D)increase its marketing budget so that it outspends its competitors.
E)arrange to meet with competitors to discuss how to avoid direct competition.

Question 20

It is not always necessary to go through all the steps in the marketing planning process.

Question 21

Narbonne's,an upscale department store,instructs sales personnel that whenever a customer asks where something is,they should drop what they are doing and offer to escort the customer to what they are looking for.The company's reputation for excellent customer service has probably resulted in:

A)product design excellence.
B)mission statement satisfaction.
C)sustainable price decreases.
D)a sustainable competitive advantage.
E)producer excellence.

Question 22

Lionel is asked to conduct an STP analysis for his firm.The first step he should perform in this analysis is to:

A)develop a business mission statement.
B)choose the best target markets.
C)reposition existing segments.
D)divide the marketplace into subgroups.
E)conduct a SWOT analysis.

Question 23

Carla has been directed by her regional marketing manager to cut prices on seasonal items,submit an ad in the local paper,and tell distributors to reduce deliveries for the next month.Which step of the strategic marketing planning process is Carla engaged in?

A)Evaluate performance.
B)Define the business mission.
C)Situation analysis.
D)Implement marketing mix and resources.
E)Identifying and evaluating opportunities.

Question 24

Even when large discount retailers enter a market,a few small,local retailers survive and prosper.These small retailers have probably developed a(n)________ that allows them to survive.

A)advertising campaign
B)plan to evaluate results
C)sustainable competitive advantage
D)set of performance metrics
E)SWOT analysis

Question 25

In 2006,Ford Motor Company announced it would severely cut back automobile production.For parts companies supplying Ford Motor,this represented a(n):

A)weakness.
B)opportunity.
C)strength.
D)threat.
E)strategic plan.

Question 26

For many years,Southwest Airlines distinguished itself as the low-cost airline.Now,many other low-cost competitors have entered the market.Similarly,Southwest was one of the first airlines to offer online ticketing.Now,all airlines have online ticketing.These examples suggest that:

A)no single strategy is likely to be sufficient to build a sustainable competitive advantage.
B)situation analysis is a continuous process.
C)customers rarely remain loyal to companies.
D)product excellence is the only true source of a sustainable competitive advantage.
E)innovation is pointless because competitors will develop copycat offerings.

Question 27

Firms achieve ___________ through efficient procedures and excellent supply chain management.

A)customer excellence
B)locational excellence
C)customer loyalty
D)value-based pricing
E)operational excellence

Question 28

When conducting a SWOT analysis,in what phase of the strategic marketing process is an organization presently engaged?

A)planning
B)implementation
C)control
D)segmentation
E)metrics

Question 29

Manufacturers who use just-in-time manufacturing systems coordinate closely with suppliers in order to ensure that materials and supplies arrive just before they are needed in the manufacturing process.While just-in-time systems can offer major advantages in terms of inventory costs,they must be carefully managed.If a firm found that its just-in-time system was badly managed,leading to frequent manufacturing delays due to missing parts,this would represent a __________ in a SWOT analysis.

A)weakness
B)opportunity
C)threat
D)strength
E)business mission

Question 30

Recently,Walmart announced it would begin selling organic food products.In doing so,Walmart is probably trying to:

A)gain government subsidies.
B)attract a different market segment.
C)reduce its costs.
D)save the environment.
E)offset cost-based pricing pressure.

Question 31

"Effective marketing doesn't just happen." It is:

A)promoted through STP analysis.
B)possible only for seasoned marketing executives to achieve.
C)planned.
D)introduced through control phase SBUs.
E)the result of competitor's failures.

Question 32

For U.S.businesses with strong export capabilities,expansion of U.S.trade agreements with other countries creates:

A)weaknesses.
B)opportunities.
C)strengths.
D)threats.
E)strategic plans.

Question 33

The automobile manufacturing industry closely watches annual consumer satisfaction surveys.For years,Japanese car companies consistently had the highest levels of customer satisfaction,creating a ______ for these companies.

A)strategic marketing plan
B)clear mission statement
C)cost advantage
D)sustainable competitive advantage
E)diversification strategy

Question 34

Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can:

A)persuade stores to refuse to carry competitors' products.
B)use their power within the supply chain to force weaker firms to accept less favorable pricing.
C)control prices and lock in margins.
D)create a sustainable competitive advantage.
E)justify charging higher prices than competitors do.

Question 35

After identifying various market segments that her company could pursue,Lisa evaluated each segment's attractiveness based on size,income,and accessibility.Lisa was involved in:

A)target marketing.
B)situation analysis.
C)diversification.
D)positioning.
E)market penetration estimation.

Question 36

As part of her company's SWOT analysis,Valerie is assessing the company's internal environment,including:

A)strengths.
B)opportunities.
C)strengths and weaknesses.
D)threats.
E)opportunities and threats.

Question 37

For years,when considering new products,marketers at Celestial Seasonings asked themselves,"What would Stacy think?" Stacy was a fictional character representing 25-50 year old,educated,upper-income women who rarely watched television but did a lot of reading."Stacy" represented Celestial's major:

A)demographic segment.
B)positioning.
C)SBU.
D)target market segment.
E)sustainable competitive advantage.

Question 38

Samantha is charged with assessing her company's external environment as part of a SWOT analysis.Samantha will study her company's:

A)strengths.
B)opportunities.
C)strengths and weaknesses.
D)weaknesses.
E)opportunities and threats.

Question 39

Some banks have begun offering special accounts designed to attract junior high school students.These kids save in such small amounts that the accounts cost banks more to maintain than they are worth.But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers.These banks recognize:

A)that operational excellence is an important macro strategy.
B)the lifetime value of customers.
C)that product excellence leads to loyal customers.
D)the importance of making decisions based on short-term results.
E)that as long as customers bring in some revenue,costs do not matter.

Question 40

Which of the following is LEAST likely to provide a sustainable competitive advantage?

A)Lowering prices.
B)Having a well-known brand name.
C)Achieving high levels of customer satisfaction.
D)Using patented technology.
E)Creating an efficient supply chain.

Question 41

Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products.These marketers are attempting to create value through _____.

A)product
B)price
C)promotion
D)place
E)cost-based

Question 42

Laura is reviewing sales data after a recent in-store promotion of her company's diet products.The data show success in some stores and limited response in others.Laura will probably next review the company's:

A)financial statements,to investigate current and past profits.
B)brand awareness study,to assess national levels of awareness.
C)implementation programs,to see if the promotion was handled consistently in the different stores.
D)results for other product lines,to see how important diet products are to the firm.
E)analysis of national diet trends,to predict future sales levels.

Question 43

In most companies,marketing resource allocation decisions are made at the SBU or ___________ level of the firm.

A)corporate.
B)product line
C)customer care
D)sales representative
E)accounting

Question 44

E-books,in addition to being an alternative product form,provide __________ value creation since they can be downloaded via the Internet immediately when they are needed.

A)product
B)place
C)promotion.
D)price
E)primary

Question 45

The first objective in the Evaluate Performance phase of the marketing planning process is to:

A)determine whether to raise or lower prices.
B)adjust advertising allocations.
C)find ways to cut costs.
D)review implementation programs and results using metrics.
E)consider changing the target market.

Question 46

When discussing the marketing planning process,STP stands for:

A)Strategies,tactics,and plans.
B)Strategize,target,and promote.
C)Segmentation,targeting,and positioning.
D)Situation analysis,trend spotting,and planning.
E)Sustaining,trending,and positioning.

Question 47

Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms':

A)business mission.
B)market segmentation strategy.
C)positioning strategy.
D)customer excellence strategy.
E)target market.

Question 48

In value-based marketing,promotion communicates the:

A)targeted solution.
B)operational excellence strategy.
C)value proposition.
D)relative market value.
E)target market definition.

Question 49

______ involves the process of defining the marketing mix variables so that target customers have a clear,distinctive understanding of what a product does or represents in comparison with competing products.

A)Targeting
B)Market segmentation
C)A sustainable competitive advantage
D)Positioning
E)A customer excellence strategy

Question 50

Imagine that you are in a gourmet food store choosing your favorite "comfort" food instead of being in a classroom taking this test.Notice the packaging,colors,labels,even the fonts used on labels.All of these efforts are part of the marketer's:

A)value-based promotions.
B)market segmentation.
C)positioning strategy.
D)customer excellence strategy.
E)target market.

Question 51

LeBron James,Alex Rodriguez,and other athletes are paid huge sums of money by companies for celebrity endorsements.If,endorsements by these athletes create a clear understanding among consumers of the companies' products,they can help with the firm's ________________ strategy.

A)product excellence
B)targeting
C)positioning
D)segmentation
E)customer excellence

Question 52

Understanding the causes of performance,regardless of whether that performance exceeded,met,or fell below the firm's goals:

A)enables firms to make appropriate adjustments.
B)allows managers to demonstrate their effectiveness.
C)offers insights into value-based pricing.
D)should be followed by eliminating underperforming SBUs.
E)allows firms to better assess customer loyalty.

Question 53

Kathy reviews her division's quarterly results and sees that some units exceeded goals while others did not.Next,she will attempt to determine why performance of the different units varied,and whether the variation:

A)created a net benefit or loss.
B)should be reported to senior executives or not.
C)was consistent with the company's mission statement.
D)offers opportunities for diversification.
E)was due to factors within or outside the firm's control.

Question 54

Braddock University allows recent graduates to come back and take additional courses for free.By offering additional educational services,the university is enhancing its _____________ in an attempt to create value for its customers.

A)segmentation strategy
B)place strategy
C)locational excellence strategy
D)diversification strategy
E)product strategy

Question 55

When positioning products relative to competitors' offerings,firms typically are most successful when they focus on opportunities:

A)that build on their strengths relative to those of their competitors.
B)for diversification.
C)in international markets.
D)where value-based pricing can be ignored.
E)where customer excellence can be substituted for product excellence.

Question 56

Craig sees that his company's quarterly sales and profits are significantly above projections and says,"That's great.Let's keep doing what we've been doing." Craig is ignoring the ______ step of the marketing planning process.

A)Evaluate Performance
B)Define the Business Mission
C)Situation Analysis
D)Implement Marketing Mix and Resources
E)Identifying and Evaluating Opportunities

Question 57

In order to effectively communicate value to target markets,marketers must first:

A)consider the cost of alternative media.
B)use the Internet.
C)redesign ads to meet media specifications.
D)understand their customers.
E)hire the right ad agency.

Question 58

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps,Monique now has to make _____________ decisions.

A)competitive response
B)resource allocation
C)product line
D)market growth
E)mission statement

Question 59

The idea of value-based marketing requires firms to charge a price that:

A)covers costs and generates a modest profit.
B)includes the value of the effort the firm put into the product or service.
C)captures the value customers perceive that they are receiving.
D)prioritizes customer excellence above operational excellence.
E)matches competitors' prices.

Question 60

Lamar owns four dry cleaning stores in the suburbs of Orlando.He recently updated his STP analysis,and has just finished adjusting his marketing mix based on the STP results.His next strategic marketing decision will likely involve:

A)how Disney World crowds will impact his business.
B)which employees to promote or fire.
C)how to allocate resources among his four stores.
D)what new government regulations might create opportunities or threats.
E)when to shift from a customer excellence to an operational excellence strategy.

Question 61

In BCG portfolio analysis,products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called:

A)stars.
B)cash cows.
C)question marks.
D)dogs.
E)anchors.

Question 62

To determine how attractive a particular market is in using the BCG portfolio analysis,__________________ is established as one axis.

A)competitive intensity
B)sales dollars
C)market size
D)market growth rate
E)market profit potential

Question 63

The strategic marketing planning process:

A)is a five-step process that should always be completed in order.
B)is frequently used in reverse.
C)begins with establishing specific,measurable outcomes.
D)is not always sequential.
E)forces marketing managers to think rationally.

Question 64

Quitman sells his business language dictionary to college students throughout the United States.He wants to start selling the book to international students abroad.Quitman wants to pursue a __________________ growth strategy.

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

Question 65

A ______ growth strategy employs the existing marketing offering to reach new market segments.

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

Question 66

Heather has been assessing a number of her firm's products using the Boston Consulting Group approach to portfolio analysis.She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors.Heather is trying to determine:

A)the product's relative market share.
B)the market growth rate.
C)a source of competitive advantage.
D)the impact of population shifts on future demand.
E)cash equivalent values for each product.

Question 67

Using the BCG portfolio analysis,a "dog" should be phased out unless:

A)its marketing manager is a champion of the product.
B)additional resources could increase its relative market share slightly.
C)it complements or boosts the sales of another product.
D)the market has a small chance of rebounding.
E)None of the above.Dogs should be phased out.

Question 68

H&R is a small,local heating and air conditioning business.The area military base is a potential source of growth,and H&R already installs and services the type of equipment the military would require,but it is difficult to get established as a certified government contractor.H&R is considering a ____________ growth strategy.

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

Question 69

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing.He knows that even with its recent high rate of growth and the fact that it dominates its market,he would need more money to establish it firmly.Using the BCG portfolio analysis,his product would be classified as a(n):

A)star.
B)cash cow.
C)question mark.
D)dog.
E)anchor.

Question 70

Sarah has decided to pursue a market penetration strategy for her French cookware product line.She will likely increase advertising and sales promotion.She may also consider:

A)getting the stores who carry her products to promote them more heavily.
B)investing in a travel agency.
C)shifting resources into a new line of European-styled footwear.
D)expand into new geographic regions.
E)offering French cooking classes.

Question 71

For many years,because of the size of the U.S.economy,domestic companies ignored international markets,preferring instead to develop new product offerings for existing customers.These companies were pursuing a ________________ strategy.

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

Question 72

A(n)___________ is a group of products that consumers may use together or perceive as similar in some way.

A)SBU
B)STP
C)product line
D)market segment
E)promotional service

Question 73

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants)designed to restrict entry into their market by professionals from other states.This strategy limits ____________ growth strategies.

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

Question 74

Introducing newly developed products or services to a market segment the company is not currently serving is called:

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

Question 75

When pursuing a market development strategy,expanding into international markets is generally:

A)more risky than expansion in domestic markets.
B)impossible due to negative attitudes about American products.
C)executed with the help of international trade subsidies.
D)simplified by creating new products for export markets.
E)the only option offering substantial opportunities for growth.

Question 76

Maryam called her auto insurance agent to renew her policy.The agent told her about new types of insurance that are now available--to cover her apartment,or even the engagement ring she just got from her fiancé.The agent was pursuing a ________________ growth strategy.

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

Question 77

Which of the following is NOT one of the four major growth strategies marketers typically utilize?

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

Question 78

Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems.Adrienne is pursuing a __________ growth strategy.

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

Question 79

Most banks now have customer relationship software which,when a customer contacts the bank,tells the service representative what types of accounts,loans,and credit cards the customer currently has.Service representatives use this information to sell some of the other services the bank currently offers to these customers.This is a ___________________ growth strategy.

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

Question 80

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy.

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