Question 1

In its introduction of the iPhone, Apple increased the number of applications available to users through its App Store which in turn allowed users to customize their smartphones. It also removed a physical (button) keyboard found on predecessor smartphones with a multi-touch interface allowing for easier use. These are examples of which two aspects of the blue ocean strategy?

Accepted Answer

The introduction of the App Store raised the factor of customization, while removing the physical keyboard eliminated a factor, both of which are key components of the blue ocean strategy.

Question 2

The more a marketing plan is based on ________, the less uncertainty and fewer risks are associated with executing it.

Accepted Answer

A marketing plan based on facts and valid assumptions is grounded in reality and evidence, reducing uncertainty and risks compared to plans based on opinions or intuition.

Question 3

A blue ocean strategy refers to

Accepted Answer

A blue ocean strategy involves creating new market spaces or "blue oceans" where competition is minimized by simultaneously pursuing differentiation and low cost.

Question 4

________ strategy formulation process for marketing planning will lead to more ideas, enhance engagement, and increase the chances for successful implementation.

Accepted Answer

An open strategy formulation process involves collaboration and input from various stakeholders, leading to more ideas, enhanced engagement, and increased chances for successful implementation.

Question 5

A ________ strategy focuses on increasing differentiation by creating and raising industry factors that are improved relative to the existing marketplace. At the same time, it focuses on decreasing cost by eliminating and reducing prevailing industry factors that are no longer necessary or can be provided below current standards.

Accepted Answer

A blue ocean strategy aims to create new market space by increasing differentiation and reducing costs, making competition irrelevant.

Question 6

A differentiation focus strategy refers to one of the generic business strategies that

Accepted Answer

A differentiation focus strategy targets a narrow market segment with products that have unique features or significant points of difference.

Question 7

Ideally, in effective marketing planning, goals should be ________ in terms of what is to be accomplished and by when.

Accepted Answer

In effective marketing planning, goals should be quantified and measurable to ensure clarity and the ability to track progress and success.

Question 8

Hyundai Motor America (HMA) became the first automaker to offer consumers an Internet parts ordering system. The system was targeted only to current Hyundai owners and gave Hyundai the ability to collect a vast amount of customer data about people who buy its cars. Which of the generic business strategies did Hyundai most likely use when it launched its Internet parts website?

Accepted Answer

The answer of Hyundai Motor America (HMA) became the first...

Question 9

Volkswagen achieved spectacular success in the late 1990s by targeting the "nostalgia" segment, 35- to 54-year-old baby boomers, with its technology-laden New Beetle. Which of the generic business strategies did Volkswagen most likely use to launch the New Beetle?

Accepted Answer

The answer of Volkswagen achieved spectacular success in the late...

Question 10

A cost focus strategy refers to one of the generic business strategies that

Accepted Answer

A cost focus strategy involves controlling expenses and lowering product prices targeted at a narrow range of market segments.

Question 11

In using a blue ocean strategy,companies are challenged to reimagine the marketplace in several ways: looking across traditional industry or market boundaries, creating new buyer and user experiences for the purpose of fashioning new industries and markets, and by

Accepted Answer

Blue ocean strategy involves creating new market spaces by combining complementary products or services to offer unique value propositions, rather than competing in existing markets.

Question 12

A blue ocean strategy emphasizes the simultaneous pursuit of

Accepted Answer

A blue ocean strategy focuses on creating new market space (differentiation) while also reducing costs, thus achieving both differentiation and lower cost simultaneously.

Question 13

Office Max provides low product prices for products typically classified as office supplies. In terms of the generic business strategy, Office Max is most likely using a ________ strategy.

Accepted Answer

Office Max is likely using a cost focus strategy, as it provides low prices for office supplies, targeting a specific market segment with cost leadership.

Question 14

One of the generic business strategies that involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments is referred to as a ________ strategy.

Accepted Answer

The cost focus strategy involves targeting a narrow market segment while controlling expenses to offer lower prices, distinguishing it from broader cost-leadership strategies.

Question 15

One of the four generic business strategies that requires products to have significant points of difference to target one or only a few market segments is referred to as a ________ strategy.

Accepted Answer

The differentiation focus strategy targets a specific market segment with products that have unique features or significant points of difference.

Question 16

A strategy that emphasizes the simultaneous pursuit of product or marketing program differentiation and lower cost in newly configured industries and markets is referred to as a ________ strategy.

Accepted Answer

A blue ocean strategy focuses on creating new market spaces (blue oceans) where competition is irrelevant by simultaneously pursuing differentiation and low cost, unlike traditional strategies that focus on competing in existing markets (red oceans).

Question 17

Which of these statements best reflects the guideline of using a base of facts and valid assumptions for marketing plans?

Accepted Answer

Good marketing research provides a factual basis and valid assumptions necessary for creating effective marketing plans.

Question 18

Hard Candy is a cosmetics company that markets the Palm Palette-all the makeup a "girl-on-the-go" needs without a cumbersome makeup bag. It comes in three shades-glam, funky, and girly. Hard Candy targets women who are 20-somethings. Which one of the generic business strategies is Hard Candy most likely using?

Accepted Answer

Hard Candy is using a differentiation focus strategy by targeting a specific market segment (20-something women) with a unique product (Palm Palette) that offers convenience and style.

Question 19

All of these are among the actions suggested by the Four Actions Grid used in forming a blue ocean strategy except which?

Accepted Answer

The Four Actions Grid in a blue ocean strategy includes raising, eliminating, reducing, and creating factors, but not concentrating factors.

Question 20

The Four Actions Grid used in forming a blue ocean strategy includes which of these?

Accepted Answer

The Four Actions Grid in a blue ocean strategy involves four key actions: eliminate, reduce, raise, and create. "Factors to raise" is part of this grid, focusing on increasing certain elements that the industry has never offered.

Quiz 22: Pulling It All Together: the Strategic Marketing Proces