Deck 6: Marketing Strategy

Question 1

A business strategy can exhibit different levels of detail and analysis and can focus on horizons 8 to 25 years out.

Answer 1

False

Question 2

Since SWOT analysis is built on actual performance of the firm and its environment,it is good to get the information from several individuals or groups.

Answer 2

False

Question 3

Defenders are inclined to define and disrupt the competitive arena to their advantage.

Answer 3

False

Question 4

If barriers are high,incumbent sellers face increased competitive pressures.

Question 5

Profits are the economic rewards to a business for providing value to customers better than the rest and running an efficient operation.

Question 6

A firm disadvantaged on the cost side should continue to pursue business from a powerful buyer.

Question 7

Under a marketing penetration strategy for growth,a firm seeks to serve customers in markets where it already has a presence with a new array of products.

Question 8

A firm that simply continues the products and procedures that first gave it a competitive advantage has implicitly assumed that its environment is static.

Question 9

The learning organization continually creates and refines its capabilities by connecting new information/skills to known requisites for future success.

Question 10

The learning organization develops systems to gauge internal matters.

Question 11

SWOT is a planning tool that emphasizes strategy,worth,organization and trust.

Question 12

A market orientation is usually not a distinctive skill because it is simple,tangible and imitable.

Question 13

A market-oriented firm is difficult for competitors to spot easily.

Question 14

Industries are typically defined by their channel position and their output.

Question 15

A true innovation practically destroys the previous business format.

Question 16

Essentially,a divestment strategy reflects a decision to dramatically downsize or exit,a business or market.

Question 17

A conceptual map tends to provide too many details,augmenting the complexity level of the real situation.

Question 18

Essentially,the mission statement justifies the organization's existence.

Question 19

Successful strategies must be based on a solid understanding of the organization's mission.

Question 20

A business strategy must develop the detailed aims and action plans for the functional areas.

Question 21

Under a _____ strategy,one may be trying to convert the business to cash by selling off assets or selling the whole operation.

A) Status quo
B) Investment
C) Milking
D) Market expansion
E) Divestment

Question 22

In terms of the strategy process model,profitability,sales,shareholder value,value analysis and customer satisfaction would fall under:

A) Performance analysis
B) Determinants of strategic options
C) Customer analysis
D) Competitive analysis
E) Market analysis

Question 23

Current products are introduced into new markets under a strategy of:

A) Market development
B) Market penetration
C) Diversification
D) Product development
E) Market saturation

Question 24

Company A,a large fast-food chain allows Company B,a hotel chain to offer some of its specialty burgers in the room service menu.This is an example of

A) Benchmarking
B) Product development
C) Market penetration
D) Diversification
E) Market development

Question 25

Opportunities are favorable conditions in the firm's task environment and can be recognized in:

A) Increasing input prices
B) A margin decrease from vigorous price competition
C) A market of escalating distribution service standards
D) The pockets of excellence within the firm
E) A lame channel of distribution overseas

Question 26

Under a strategy of _____,firms seek growth by introducing new products into markets in which it is already active.

A) Market penetration
B) Diversification
C) Market development
D) Product development
E) Benchmarking

Question 27

SWOT analysis is a major component of:

A) A firm's internal resources
B) Strategic spectroscopy
C) Situation analysis
D) Conceptual mapping
E) Perceptual mapping

Question 28

According to the strategy process model,competitive analysis includes all the following EXCEPT:

A) Identity
B) Strategic groups
C) Performance
D) Objectives
E) Distribution system

Question 29

Weaknesses are characteristics of the firm itself and may include:

A) A good supply relationship
B) Thinning talent in a key area
C) Access to growing markets
D) New laws or regulations that might foreclose competitors
E) A margin squeeze from vigorous price competition

Question 30

The strategy that aims to serve new markets with new products is:

A) Product development
B) Market development
C) Diversification
D) Market penetration
E) Benchmarking

Question 31

"Strong reputation among product design professionals" represents which distinguishing characteristic of a good SWOT analysis?

A) Quality
B) Broad in focus
C) Multiple time horizons
D) Perceptions
E) Honest

Question 32

Threats are potential adverse conditions in the firm's environment and are BEST exemplified by:

A) Increasing input prices
B) Products with poor market positions
C) A lame channel of distribution overseas
D) Aging assets
E) A locational disadvantage

Question 33

Synergy implies:

A) Detailed aims and action plans for the functional areas
B) The whole is greater than the sum of its parts
C) The level of investment in the product market
D) Formal expression of why the organization exists
E) Resource commitments

Question 34

The breadth of a product line is primarily motivated by:

A) Diversity of preferences in the market
B) Production and operational economies
C) Managerial complexities
D) Financial resources
E) Marketing complexities

Question 35

Which of the following MOST accurately defines SWOT analysis?

A) A method of comparing the benefit, function and cost of materials, components and work processes
B) A self-assessment framework
C) It is used to project the profit potential of new accounts
D) A tool that is used to explore mental structures of beliefs and assumptions
E) A set of tools for comparing performance outcomes or expectations on specific criteria

Question 36

Conimex is a corporate uniform leader and has added entrance mats and custom logo flooring as cross-selling products to its uniform business over the years.It recently launched a new business called "Xtraa" that delivers first aid kits,training and safety services to the same market.This example exemplifies:

A) Market development
B) Product development
C) Market penetration
D) Diversification
E) Market saturation

Question 37

Olympia moved from being just a camera-making company into producing an exclusive new range of office equipment in order to broaden its account base as well as deepen its relationship with each client.This illustrates:

A) Diversification
B) Product development
C) Market development
D) Market penetration
E) Market saturation

Question 38

In terms of SWOT analysis,strengths include:

A) Access to growing markets
B) Products with poor market positions
C) Yesterday's technology
D) The pockets of excellence in the firm
E) A market of deescalating distribution service standards

Question 39

The attempt by a firm to grow by gaining a larger share of markets in which it competes through improved exploitation of existing products is the core of the strategy of:

A) Product development
B) Market penetration
C) Market development
D) Diversification
E) Market saturation

Question 40

The firm's mission statement is derived from a thorough grasp of all of the following except it's:

A) Key capabilities/constraints
B) Aspirations
C) Resources
D) Constituencies
E) Strategies

Question 41

Competitive analysis fails to address all of the following EXCEPT:

A) Company culture
B) Leadership
C) Learning
D) Designing an organization control system
E) Changing the competitive structure of the industry

Question 42

Industries are typically defined by their:

A) Channel position
B) Input
C) Profits
D) Location
E) Customers

Question 43

All of the following are typically identified as forces of competition EXCEPT:

A) Rivalry among firms in the industry
B) Threat of substitutes
C) Powerful customers
D) Powerful suppliers
E) Threat of governmental regulation

Question 44

A competitive analysis helps the firm to do all the following EXCEPT:

A) Choose its competitive battlegrounds judiciously
B) Change the competitive structure of the industry
C) Anticipate change
D) Design an organization structure
E) Exploit change

Question 45

What makes large customers attractive to many business markets?

A) They press hard for price concessions
B) The expected payoffs in market access or new products
C) They eliminate all chances of delayed payments
D) Their abilities to contract for large purchases
E) They increase the productive capacity serving the market

Question 46

When do firms tend to find intense rivalry?

A) If demand is significantly more than overall capacity
B) If markets are expanding
C) If demand is significantly less than overall capacity
D) If industry rivals offer relatively differentiated products
E) If industry rivals offer absolutely differentiated products

Question 47

Which of the following barriers to entry is based on licensing requirements,regulated distribution and safety and pollution standards that can limit or foreclose entry?

A) Product differentiation
B) Government policy
C) Economies of scale
D) Capital requirements
E) Access to distribution channels

Question 48

A mission statement works well for all of the following EXCEPT:

A) Framing key strategies
B) Making day-to-day decisions
C) The enculturation process needed when new employees join the firm
D) Self-assessment
E) Two firms merging

Question 49

_____ is a picture of abstract ideas,options,persons or companies on two or three key variables.

A) SWOT analysis
B) Conceptual map
C) Gap analysis
D) Cognitive map
E) Mind map

Question 50

Patent protection is a barrier to entry derived from:

A) Product differentiation
B) Government policy
C) Cost disadvantages unrelated to size
D) Capital requirements
E) Economies of scale

Question 51

Which of the following barriers to entry is based on effective advertising,customer service or unique features?

A) Product differentiation
B) Economies of scale
C) Government policy
D) Capital requirements
E) Cost disadvantages unrelated to size

Question 52

Typically,the firm's purpose and the justification for its existence are contained in its:

A) Learning organization
B) SWOT analysis
C) Mission statement
D) Strategic goals
E) Conceptual map

Question 53

_____ are the economic rewards to a business for providing value to customers better than the rest and running an efficient operation.

A) Sales
B) Profits
C) Values
D) Incentives
E) Bonuses

Question 54

Flexibility and adaptability to preempt the moves of other players in a dynamic market is at the core of the strategy of:

A) Superior stakeholder satisfaction
B) Positioning for speed
C) Positioning for surprise
D) Signaling strategic intent
E) Shifting the rules of competition

Question 55

Which of the following stakeholders should receive the greatest emphasis?

A) Government
B) Employees and associates
C) Customers
D) Top management
E) Shareholders

Question 56

Situation analyses do all the following EXCEPT:

A) Provide an invaluable set of tools for analyzing the competitive environment of a firm at any point in its evolution
B) Recognize competitive advantage as a fluid and dynamic process
C) Provide important insights
D) Identify some of the key sources of advantage at a given point in time
E) Provide an invaluable set of tools for analyzing the position of a firm at any point in its evolution

Question 57

All the following are true of a conceptual map EXCEPT:

A) It is a diagram of cause-and-effect streams
B) It can be made from the subjective perceptions of customers
C) It is a picture of abstract ideas
D) It is a gross simplification of the real situation
E) It is a communication instrument

Question 58

One of the action plans implicated by competitive analysis is a firm will want to choose its competitive battlegrounds judiciously.If it is a low-cost producer:

A) It might enjoy profitable business from a large, powerful buyer
B) It should probably not pursue business from a powerful buyer
C) It should compete in another customer sector where quick response is critical
D) It should compete in another customer sector where specialized technical service is critical
E) It will enjoy profitable business only from a small buyer

Question 59

A new entrant to the business copier field will have to find and motivate dealers to add another model to their assortment or develop their own distribution and sales system.This is a barrier to entry derived from:

A) Economies of scale
B) Cost disadvantages unrelated to size
C) Government policy
D) Product differentiation
E) Access to distribution channels

Question 60

In terms of threat of potential entrants,which of the following statements is false?

A) Rapidly growing or profitable markets tend to attract new sellers
B) The existing demand from customers has to cover less fixed costs
C) New participants in the market increase the productive capacity serving the market
D) A new rival will fight to increase market share
E) New rivals can bring new or substantial resources to the fray

Question 61

A "reactor" type of organization:

A) Detects early signals of opportunity and moves on them
B) Competes in new markets or with new marketing methods
C) Likes being first mover
D) Lacks a well-defined strategy
E) Operates in a broad domain of products and markets

Question 62

What are the four distinguishing characteristics of a good SWOT analysis?

Question 63

"Disruption derives from the ability to move covertly and creatively in ways competitors do not anticipate." This pertains to which of the following organizational strengths?

A) Strategic soothsaying
B) Signaling strategic intent
C) Positioning for surprise
D) Shifting the rules of competition
E) Positioning for speed

Question 64

The systematic gathering of information on customers and competitors,both present and potential pertains to:

A) Market development
B) Market penetration
C) Product development
D) Customer satisfaction
E) Market orientation

Question 65

Connecting new information to what one already knows is:

A) Problem solving
B) Learning
C) Decision making
D) Innovation
E) Creativity

Question 66

In terms of organizational types,stability is MOST important to:

A) Reactors
B) Regulators
C) Prospectors
D) Analyzers
E) Defenders

Question 67

Something that consistently creates and refines its capabilities by connecting new information and skills to known and remembered requisites for future success is:

A) A learning organization
B) Diversification
C) A mission statement
D) Market orientation
E) Situation analysis

Question 68

Define SWOT analysis.Briefly describe its characteristics with examples?

Question 69

All the following are payoffs that point to a sustainable competitive advantage from a market orientation EXCEPT:

A) Realizes efficiencies from precision targeting
B) Should benefit from better marketing programs
C) Should be spotted easily by competitors
D) Is complex, intangible and inimitable
E) Is apt to be unique

Question 70

What is at the core of strategic soothsaying?

A) Flexibility and adaptability to compete in a changing environment, especially to preempt the moves of other players
B) Looking for advantages in the future, anticipating customer needs and building the strengths needed for future success
C) Disruption derives from the ability to move covertly and creatively in ways competitors do not anticipate
D) A true innovation practically destroys the previous business format, hence new distribution channels have the potential to shape new rules
E) Competitors should highly regard commitment to defend positions or penetrate markets

Question 71

Which of the following "types" of organizations is MOST likely to define and disrupt the competitive arena to their advantage?

A) Defenders
B) Regulators
C) Prospectors
D) Analyzers
E) Reactors

Question 72

Which of the following organizational type likes being the first mover?

A) Prospector
B) Defender
C) Analyzer
D) Reactor
E) Aggressor

Question 73

Which of the following organizational strengths comes closest to an overt attempt to intimidate competitors?

A) Signaling strategic intent
B) Positioning for surprise
C) Positioning for speed
D) Shifting the rules of competition
E) Superior stakeholder satisfaction

Question 74

Analyzers:

A) Have inconsistent product mix
B) Lack a well-defined strategy
C) Take action generally under environmental pressures
D) Are very selective in developing products and pursuing opportunities
E) Are not risk takers and not aggressive

Question 75

Define a conceptual map.What are its advantages?

Question 76

According to the strategy of _____,a true innovation can virtually destroy the previous business format.

A) Positioning for surprise
B) Signaling strategic intent
C) Positioning for speed
D) Shifting the rules of competition
E) Superior stakeholder satisfaction

Question 77

Which of the following organizational types is LEAST aggressive?

A) Defender
B) Reactor
C) Analyzer
D) Prospector
E) Regulator

Question 78

Briefly describe the basic types of product/market relationships that are available for a firm's growth strategies?

Question 79

Prospectors:

A) Operate in a broad domain of products and markets
B) Aim to find and secure stable product market positions
C) Are very selective in developing products and pursuing opportunities
D) Lack a well-defined strategy
E) Take action generally under environmental pressures

Question 80

Write a short note on synergy?