Question 1

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

Accepted Answer

The banks offering special accounts for junior high school students recognize the lifetime value of customers, understanding that these young customers may become loyal adult customers in the future. This reflects a focus on long-term results and relationship-building, making choice B the best answer.

Question 2

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

Accepted Answer

While lowering prices may provide a temporary advantage, it is not sustainable as competitors can easily follow suit and lower their prices as well, leading to a price war and decreased profitability. The other choices, such as having a well-known brand name, achieving high levels of customer satisfaction, using patented technology, and creating an efficient supply chain, can provide long-term sustainable advantages.

Question 3

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

The term "sustainable competitive advantage" refers to a unique advantage maintained by a business that allows it to survive and thrive in a competitive market. This advantage could be something like superior customer service or a unique product offering. It is likely that the small, local retailers have developed a sustainable competitive advantage that allows them to compete successfully against larger discount retailers. Advertising, performance metrics, and SWOT analysis are all important tools for businesses, but they do not necessarily lead to survival in a competitive market. A plan to evaluate results could be helpful in determining the success of a business strategy, but it is not the same as a sustainable competitive advantage. Therefore, the best choice is C.

Question 4

Taking steps to encourage customer loyalty is one way to

Accepted Answer

Encouraging customer loyalty can help sustain an advantage over competitors by keeping customers coming back and choosing your brand over others.

Question 5

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. This is because the process involves identifying and analyzing different segments of the market in order to select the most appropriate target segment(s) for the firm's marketing efforts. Without dividing the marketplace into subgroups, it is impossible to identify and analyze the different segments that exist.

Question 6

In 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was probably trying to

Accepted Answer

By selling organic food products, Walmart was likely trying to attract a different market segment - namely, consumers who prioritize organic and natural products. This allows them to expand their customer base and potentially increase profits.

Question 7

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

Accepted Answer

SWOT analysis is typically conducted during the planning phase of the strategic marketing process, as it is used to assess the organization's internal strengths and weaknesses and external opportunities and threats in order to inform marketing strategies and tactics.

Question 8

Nordstrom's, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service has probably resulted in

Accepted Answer

Nordstrom's reputation for excellent customer service has likely resulted in a sustainable competitive advantage by differentiating itself from competitors and creating customer loyalty.

Question 9

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

Accepted Answer

When conducting a SWOT analysis, one must assess both the internal and external environments of the company. The internal environment includes strengths and weaknesses which are factors within the company's control. Competition, the economy, demographics, and opportunities and threats are external factors that are not within the company's direct control.

Question 10

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 helps firms to create a sustainable competitive advantage. This advantage comes from having a more efficient and effective supply chain, which can lead to lower costs, faster delivery times, better quality products, and stronger relationships with customers. By achieving these benefits, a firm can differentiate itself from competitors and gain a competitive edge.

Question 11

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

Accepted Answer

Samantha is tasked with studying her company's external environment, which includes opportunities and threats. The other answer choices (strengths and weaknesses, sales history, pension plan, and product specifications) are all internal factors that would be studied in a different portion of a SWOT analysis.

Question 12

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 fact that Japanese car companies consistently had the highest levels of customer satisfaction creates a sustainable competitive advantage for these companies, as this is a key factor that influences consumer purchasing decisions.

Question 13

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

Accepted Answer

Efficient procedures and excellent supply chain management are key components of achieving operational excellence, which focuses on maximizing efficiency and reducing costs in all aspects of the business. This leads to higher profitability and a competitive advantage in the market.

Question 14

Effective marketing doesn't just happen. It is

Accepted Answer

Effective marketing requires a well-thought-out plan and strategy. It is not just something that can happen haphazardly. Proper planning includes researching the target market, identifying customer needs and preferences, developing a unique value proposition, and outlining specific tactics to reach and engage with customers.

Question 15

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 on seasonal items, placing an ad in the local paper, and telling distributors to reduce deliveries.

Question 16

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 suggest that no single strategy is likely to be sufficient to build a sustainable competitive advantage. The fact that Southwest's low-cost and online ticketing strategies are now being used by other airlines shows that simply having those strategies is not enough to maintain a competitive advantage.

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

Accepted Answer

The answer of When Ramona, the keynote speaker at a...

Question 18

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 businesses with strong export capabilities to expand their markets and increase their profits.

Question 19

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

Accepted Answer

Ford Motor Company's decision to cut back automobile production would represent a threat to parts companies supplying Ford Motor as it would most likely lead to a decrease in demand for their products, potentially impacting their revenue and profitability.

Question 20

Manufacturers who 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

Just-in-time systems pose a risk of dependency on suppliers and can lead to disruptions in the production chain if not properly managed. In this scenario, the frequent manufacturing delays due to missing parts would be considered a weakness in a SWOT analysis.

Quiz 2: Developing Marketing Strategies and a Marketing Plan