Question 1

A mission statement describes the specific actions a firm will take to achieve its goals.

Accepted Answer

A mission statement describes the overall purpose and values of a firm, not the specific actions it will take to achieve its goals.

Question 2

Isaac is looking for ways to offer new goods and services to his existing customers.He is pursuing a market development strategy.

Accepted Answer

Isaac is pursuing a product development strategy, as he is looking to offer new goods and services to his existing customers. Market development involves entering new markets with existing products.

Question 3

Taking steps to encourage customer loyalty is one way to:

Accepted Answer

Encouraging customer loyalty helps sustain an advantage over competitors by retaining customers and increasing their likelihood of returning to the business. It does not directly relate to testing new products, promoting efficiency, developing new pricing strategies, or improving supply chain effectiveness.

Question 4

Geraldo manages the electrical turbine engine division of General Electric Corporation.He makes most decisions independently,without consulting headquarters.Geraldo manages a strategic business unit.

Accepted Answer

Geraldo manages a strategic business unit, which typically operates as an independent entity with its own decision-making authority. Therefore, it is true that he makes most decisions independently without consulting headquarters.

Question 5

The "Implement Marketing Mix" step of the strategic marketing planning process is part of the control phase.

Accepted Answer

The answer of The "Implement Marketing Mix" step of the...

Question 6

STP refers to segmentation,testing,and promotion.

Accepted Answer

STP stands for segmentation, targeting, and positioning. Testing and promotion are not part of the acronym.

Question 7

iTunes software is often credited for the success of the Apple iPod MP3 player,because it made the iPod easier to use than competing players.This is an example of a sustainable competitive advantage.

Accepted Answer

A sustainable competitive advantage refers to a unique advantage that a company possesses, which is difficult for competitors to replicate. In this case, the iTunes software made the Apple iPod easier to use than competing MP3 players, which gave Apple an advantage and contributed to the success of the iPod. This advantage was sustained over time, making it a sustainable competitive advantage.

Question 8

Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantage?

Accepted Answer

Planning excellence is not one of the four overarching strategies typically cited in marketing literature. The four are locational excellence, customer excellence, operational excellence, and product excellence.

Question 9

The marketing planning process always proceeds sequentially through the five steps.

Accepted Answer

The marketing planning process is not always a linear process and may involve going back and forth between different steps in response to new information or changes in the business environment.

Question 10

To build a sustainable competitive advantage,companies should focus on a single strategy.

Accepted Answer

To build a sustainable competitive advantage, companies should focus on a combination of strategies that work together effectively, such as cost leadership, differentiation, and innovation. Relying on a single strategy may make a company vulnerable to changes in the market or competition.

Question 11

Price should be based on the value that the customer perceives.

Accepted Answer

Pricing based on customer value means that the price should reflect the benefits and value that the customer perceives they will receive from the product or service. This approach is more effective than simply setting prices based on production or marketing costs.

Question 12

The components of a SWOT analysis are Strengths,Weaknesses,Opportunities and Tactics.

Accepted Answer

The components of a SWOT analysis are Strengths, Weaknesses, Opportunities, and Threats, not Tactics.

Question 13

Duke's is a surfer-themed restaurant chain in Hawaii.Most of its customers are tourists.In a SWOT analysis for Duke's,the possibility that the recession might cut back on tourism in Hawaii would be considered a Weakness.

Accepted Answer

The answer of Duke's is a surfer-themed restaurant chain in...

Question 14

Firms are typically more successful when they focus on opportunities that build on their competitors' strengths.

Accepted Answer

Firms are typically more successful when they focus on opportunities that build on their own strengths, rather than their competitors' strengths. By leveraging their own unique capabilities and advantages, firms can differentiate themselves and create a competitive advantage in the marketplace. Focusing on the strengths of their competitors may lead to a "me too" strategy that does little to set the firm apart and may result in an uphill battle to gain market share.

Question 15

Walmart's strong supplier relations and efficient supply chain have helped the firm to achieve operational excellence.

Accepted Answer

Walmart's ability to maintain strong relationships with its suppliers and its efficient supply chain management have been key factors in the firm's ability to achieve operational excellence. This has allowed Walmart to keep prices low, maintain high levels of product availability, and operate with high levels of efficiency and profitability.

Question 16

Sandisk's MP3 player product line (called the Sansa)has a low relative market share.The MP3 player market is expected to decline over the next few years.In BCG portfolio analysis,the Sansa would be considered a dog.

Accepted Answer

According to BCG portfolio analysis, a product with a low relative market share and in a market that is expected to decline would be considered a dog. Therefore, Sandisk's Sansa MP3 player would be classified as a dog.

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 major...

Question 18

If Starbucks decided to start selling organic meals to corporate eating facilities,it would be pursuing a diversification strategy.

Accepted Answer

Diversification strategy involves entering a new market with new products or services that are different from the core business. In this scenario, Starbucks is entering the corporate meal segment with organic meals which is different from its core business of selling coffee and other beverages.

Question 19

If a firm wants to develop a sustainable competitive advantage,it should:

Accepted Answer

To develop a sustainable competitive advantage, a firm should examine its operations and customer relations to identify significant things competitors cannot easily copy. This can involve analyzing unique resources or capabilities, building strong brand loyalty, creating a strong distribution network or supply chain, or developing advanced technology. The goal is to create a distinct advantage that sets the firm apart from its competitors and is difficult for them to replicate. Aggressively buying up competitors or copying others' innovative features may provide short-term gains, but they do not guarantee sustainability in the long-term. Increasing marketing budgets or arranging meetings with competitors are also unlikely to create a sustainable competitive advantage.

Question 20

It is not always necessary to go through all the steps in the marketing planning process.

Accepted Answer

Depending on the circumstances or the complexity of the marketing campaign, some steps may be redundant or unnecessary. However, it is typically recommended to complete the full marketing planning process for optimal results.

Quiz 2: Developing Marketing Strategies and a Marketing Plan