Question 1

In mid-2010,Hewlett-Packard Company (HP)acquired Palm Computing,Inc.,a manufacturer of personal devices and smart phones.Before deciding to acquire the company,strategic planners at HP spent time thinking about how Palm and HP would "fit" together,and how the acquisition might change HP's core goals and objectives.The strategic planners were engaged in the ____________ step of the strategic marketing planning process.

Accepted Answer

The answer of In mid-2010,Hewlett-Packard Company (HP)acquired Palm Computing,Inc.,a manufacturer...

Question 2

Zara is a women's clothing retailer headquartered in Spain,with stores located in many countries.Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences.Every aspect of Zara's operation is optimized for this system,making it difficult for competitors like The Gap to duplicate.Zara has established:

Accepted Answer

Zara's quick response system is a sustainable competitive advantage because it is difficult for competitors, like The Gap, to replicate. This system enables Zara to quickly adjust their merchandise to changing customer preferences, making their operations highly efficient and effective. This advantage helps Zara maintain its position in the market and attracts customers who appreciate their ability to quickly deliver fashionable products.

Question 3

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

Accepted Answer

The answer of Introducing newly developed products or services to...

Question 4

In a SWOT analysis,increasing gasoline prices would represent a potential ______ for manufacturers of electric cars.

Accepted Answer

Increasing gasoline prices would create an opportunity for manufacturers of electric cars, as consumers may become more interested in alternative fuel options. This could lead to increased demand for electric cars and potentially higher profits for manufacturers in this industry.

Question 5

Sodexho is a corporation that manages school cafeterias,university dining halls,mess halls at military bases,concession stands at sports arenas,and other large-scale food service facilities.If Sodexho were to begin to sell individual frozen meals in supermarkets,it would be pursuing a ______ growth strategy.

Accepted Answer

Sodexho entering the supermarket frozen meal market represents diversification, as it involves introducing a new product line (frozen meals) into a new market (supermarkets) that is different from its existing operations.

Question 6

Excellence in human resource management is an element of which of the macro strategies?

Accepted Answer

Operational excellence involves optimizing internal processes and resources, including human resource management, to improve efficiency and effectiveness.

Question 7

Some universities offer online degree programs,competing with traditional colleges based on the convenience of taking online courses.These online programs are pursuing which macro strategy?

Accepted Answer

The answer of Some universities offer online degree programs,competing with...

Question 8

After defining the business mission,what should a firm do next to develop a marketing plan?

Accepted Answer

After defining the business mission, the next step for a firm to develop a marketing plan is to perform a situation analysis. This helps the firm understand its internal and external environment and identify marketing opportunities and threats. Only after performing a situation analysis can the firm conduct an STP analysis, develop a positioning strategy, select a target market, and implement the four Ps effectively.

Question 9

Fourteenth National Bank prides itself on offering better service than any of its competitors.If this is accurate,and if customers recognize and value Fourteenth National's superior service,the bank creates and delivers value through:

Accepted Answer

Fourteenth National Bank creates and delivers value through customer excellence, as it prioritizes offering better service than any of its competitors, and customers recognize and value this superior service.

Question 10

Most banks implement customer retention programs aimed at their best customers.They do this because they know that retaining customers usually results in:

Accepted Answer

Retaining customers typically leads to increased long term profits. By retaining loyal customers, banks can generate more revenue from repeat business, cross-selling opportunities, and referrals. This is why banks often invest in customer retention programs aimed at their best customers.

Question 11

Abercrombie & Fitch,a hip clothing retailer,includes a "Share it!" button on its website.This button encourages an Abercrombie customer to post a link to a product page (perhaps showing a new style of jeans)on Facebook or Twitter.Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers)will click the link,visit the page,and make purchases.This is an example of a ______ growth strategy.

Accepted Answer

This is an example of a market penetration strategy, as it involves encouraging existing customers to share products with their network, aiming to increase sales among current market segments.

Question 12

Which of the following is the third step in the strategic marketing planning process?

Accepted Answer

The third step in the strategic marketing planning process is to identify and evaluate opportunities. This involves identifying possible target markets and evaluating the feasibility and potential of different marketing strategies. This step helps in determining which opportunities are best suited for the organization and which can be pursued with the available resources.

Question 13

When a pharmaceutical company develops a new medication,it typically applies for a patent in order to prevent competitors from developing copycat products for several years.Pharmaceutical companies apply for patents in order to establish:

Accepted Answer

Pharmaceutical companies apply for patents in order to establish a sustainable competitive advantage by preventing competitors from developing copycat products and having the exclusive rights to sell the medication for a certain period of time. This allows them to earn profits from the medication before competitors can enter the market with similar products. The other choices do not apply in this scenario.

Question 14

As discussed in the chapter opening,Dunkin' Donuts,Starbucks,and McDonald's have all found ways to succeed in the branded coffee market.How have they managed to do this?

Accepted Answer

Dunkin' Donuts, Starbucks, and McDonald's have each differentiated themselves through unique marketing strategies that capitalize on their individual strengths. For example, Dunkin' Donuts focuses on affordability and convenience, Starbucks prioritizes premium quality and a customer experience, and McDonald's promotes its coffee as a value-added menu item served alongside breakfast items. This allows each brand to appeal to a different segment of the market and avoid direct competition with each other.

Question 15

An advertising campaign for Geico Insurance uses the slogan,"So easy,even a caveman could do it" to emphasize the ease of buying insurance on Geico's website.This campaign is part of Geico's:

Accepted Answer

The advertising campaign using the slogan "So easy, even a caveman could do it" is part of Geico's positioning strategy. The slogan emphasizes the ease of buying insurance on Geico's website, positioning them as a company that offers a simple and hassle-free experience for customers.

Question 16

One example of a customer loyalty program is:

Accepted Answer

A "frequent diner" card at a restaurant, offering a free appetizer for every $100 in food purchases is an example of a customer loyalty program. This type of program rewards customers for their continued patronage and encourages them to return to the restaurant.

Question 17

Customer retention programs are based on what concept?

Accepted Answer

Customer retention programs are based on the concept that customer relationships should be viewed from a lifetime value perspective. The goal is to retain customers for the long-term and maximize their value to the company over time. This involves creating a positive customer experience, providing high-quality products and services, and building strong relationships with customers.

Question 18

Anita has gone to the same hair salon for the past ten years.She believes that her stylist,the salon owner,does a better job of cutting and styling her hair than anyone else could.Other salons have opened closer to Anita's home,some offering more plush facilities or lower prices,but she isn't tempted to switch.Anita's attitude toward the salon is an example of:

Accepted Answer

Anita's long-standing patronage of the same salon, despite the opening of new salons closer to her home or with more attractive pricing and facilities, is indicative of customer loyalty.

Question 19

Over the last few months,Juan and his colleagues have analyzed the current business situation,and then identified target markets for his firm's personal care products.Finally,they developed the products,prices,distribution and promotion that should appeal to each of those target markets.In doing so,Juan has also identified what he believes is an advantage his competitors cannot match.Juan and his colleagues have been developing:

Accepted Answer

Juan and his colleagues have analyzed the current business situation, identified target markets, and developed products, prices, distribution, and promotion that should appeal to each target market. All of these activities are part of developing a marketing strategy.

Question 20

The Apple iPad is the market leader in the new--and fast-growing--tablet computer market.Based on BCG portfolio analysis,how should Apple handle allocating resources to the iPad?

Accepted Answer

The answer of The Apple iPad is the market leader...

Quiz 2: Developing Marketing Strategies and a Marketing Plan