Question 1

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

Accepted Answer

Stacy represented Celestial's primary target market segment, as she was a fictional character embodying the demographic and psychographic characteristics of the company's ideal customer.

Question 2

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

Accepted Answer

Expansion of U.S. trade agreements with other countries creates opportunities for U.S. businesses with strong export capabilities to enter new markets and increase sales.

Question 3

Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink. This positioning reflects Pepsi's careful implementation of

Accepted Answer

The positioning of Pepsi as a primary "go-to" brand reflects its targeting strategy and the effective implementation of the marketing mix. Pepsi has managed to create a strong brand image that resonates with customers around the world. This has been achieved through a combination of effective segmentation, targeting, and positioning strategies, as well as a focus on developing a strong marketing mix that includes product, price, promotion, and place. Pepsi's success in positioning itself as a leading brand in the beverage industry is a result of its strategic approach to marketing.

Question 4

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(n) ________ for these companies.

Accepted Answer

The consistent high levels of customer satisfaction that Japanese car companies have achieved over the years creates a sustainable competitive advantage for them, as it gives them an edge over their competitors in the industry. This advantage is difficult for competitors to replicate in the short term, making it sustainable. Therefore, option D is the correct answer.

Question 5

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

Accepted Answer

Operational excellence refers to a company's ability to deliver products or services to customers with minimal waste and maximum efficiency. By having efficient procedures and supply chain management, firms can achieve this and gain a competitive advantage. Therefore, the best choice is E, operational excellence.

Question 6

Carla has been directed by her regional marketing manager to cut prices on seasonal items, place 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?

Accepted Answer

Carla is implementing the marketing mix and resources by cutting prices, placing an ad, and reducing deliveries. This step comes after the situation analysis and identifying and evaluating opportunities, and before evaluating performance. Defining the business mission is the first step in the strategic marketing planning process.

Question 7

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in

Accepted Answer

Nordstrom's reputation for excellent customer service will give the company a sustainable competitive advantage over other department stores. This is because customers are more likely to continue shopping at a store that treats them well and meets their needs. This advantage is sustainable because it is difficult for competitors to quickly replicate Nordstrom's reputation for customer service.

Question 8

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

Accepted Answer

Opportunities and threats are external factors in a SWOT analysis, which assess the external environment of a company.

Question 9

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

Accepted Answer

Conducting a SWOT analysis is part of the planning phase of the strategic marketing process.

Question 10

Some banks offer 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; however, bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize

Accepted Answer

The passage clearly states that banks offer these accounts because they recognize the "lifetime value of customers," meaning they hope to establish a relationship with these young customers that will continue into adulthood. This demonstrates an understanding of the importance of retaining customers over the long term.

Question 11

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

Accepted Answer

The severe cutback in production represented a threat for parts companies supplying Ford, as there would likely be a decrease in demand for their products.

Question 12

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

Accepted Answer

Developing excellent supply chain management and strong supplier relations can help firms to create a sustainable competitive advantage. By having better relationships with suppliers and a more efficient supply chain, a firm can offer better products at lower prices, which can attract more customers and lead to long-term success. This advantage is not necessarily related to controlling prices or forcing competitors out of the market.

Question 13

Manufacturers that use just-in-time manufacturing systems coordinate closely with suppliers 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(n) ________ in a SWOT analysis.

Accepted Answer

Frequent manufacturing delays due to missing parts would represent a weakness in the just-in-time system, which is a component of the manufacturing process. This weakness could hinder the firm's ability to compete effectively and efficiently.

Question 14

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

Accepted Answer

The examples given suggest that no single strategy, such as low-cost or online ticketing, can provide a sustainable competitive advantage in the long term. Competitors will quickly copy successful strategies, so companies need to have a variety of strategies and constantly innovate to stay ahead of the competition.

Question 15

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.

Accepted Answer

A sustainable competitive advantage is a unique strength or position that allows a company to maintain its market position and profitability despite competition. This could include superior customer service, niche products, or a loyal customer base.

Question 16

Amazon's latest attempt to shore up and enhance its competitive barriers by introducing a home service marketplace that may help it achieve a lasting, powerful advantage is an example of ________ excellence.

Accepted Answer

The answer of Amazon's latest attempt to shore up and...

Question 17

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

Accepted Answer

Lowering prices is unlikely to provide a sustainable competitive advantage because competitors can quickly copy the strategy and lower their prices as well, resulting in a price war and eroding profits for all involved.

Question 18

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

Accepted Answer

Strengths and weaknesses are internal factors in a SWOT analysis, while competition, economy, demographics, opportunities, and threats are external factors.

Question 19

The recent whole foods trend has led to the opening of a new organic foods market in town. In reaction, the long-standing neighborhood grocery decided to stock and sell a line of organic food products. In doing this, the grocery was most likely trying to

Accepted Answer

The grocery is likely trying to attract a different market segment interested in organic foods, responding to the trend and competition from the new organic foods market.

Question 20

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

Accepted Answer

The first step in STP analysis is to divide the marketplace into subgroups, or segments, based on factors such as demographics, psychographics, and behavior. Only after identifying and understanding these segments can firms target the most attractive ones and position their offerings effectively. Developing a business mission statement, choosing target markets, and repositioning segments are all secondary to the initial step of segmenting the market. Conducting a SWOT analysis is a separate analysis that can be done in conjunction with STP analysis but is not the first step.

Quiz 2: Developing Marketing Strategies and a Marketing Plan