Question 1

The four substeps of strategy formation in the order that they should occur are identifying competitive advantages,segmenting the market,positioning the product,and targeting the customers.

Accepted Answer

The correct order is segmenting the market, targeting the customers, identifying competitive advantages, and positioning the product.

Question 2

Deploying the marketing mix to claim a unique,valued,and defensible position in the marketplace is known as .

Accepted Answer

Positioning involves deploying the marketing mix to establish a unique, valued, and defensible position in the marketplace.

Question 3

Core competencies and competitive advantages are the strengths possessed by a firm.

Accepted Answer

Core competencies and competitive advantages are both strengths that give a firm an edge over its competitors. Core competencies are the unique skills and abilities a firm possesses that set it apart from rivals, while competitive advantages are the factors that allow a firm to outperform its competitors in the market.

Question 4

The division of buyers into groups based on their product knowledge,usage rate,or loyalty is segmentation.

Accepted Answer

Behavioral segmentation divides buyers based on their behavior towards products, including product knowledge, usage rate, or loyalty.

Question 5

Marketing efforts to develop customer loyalty will be more successful if the marketer has a solid understanding of customer needs.

Accepted Answer

Understanding customer needs helps marketers tailor their loyalty programs and other marketing efforts to meet those needs, which is more likely to result in customer satisfaction and loyalty.

Question 6

Which of the following is LEAST likely to be considered a competitive advantage for a firm?

Accepted Answer

Substitutable products are least likely to be a competitive advantage because they can be easily replaced by alternatives, reducing a firm's uniqueness and market power.

Question 7

What is differentiated marketing? What are the advantages and disadvantages of this strategy?

Accepted Answer

The answer of What is differentiated marketing? What are the...

Question 8

Unlike business markets,consumer markets can be described by demographic and psychographic variables.

Accepted Answer

The answer of Unlike business markets,consumer markets can be described...

Question 9

Which of the following refers to the process of dividing a market into meaningful and distinct customer groups?

Accepted Answer

Segmentation is the process of dividing a market into meaningful and distinct customer groups based on various criteria such as demographics, needs, priorities, common interests, or other psychographic or behavioral criteria.

Question 10

What is the purpose of conducting a SWOT analysis?

Accepted Answer

The answer of What is the purpose of conducting a...

Question 11

A firm that selects and focuses on one or a few single segments is most likely using a strategy of .

Accepted Answer

The answer of A firm that selects and focuses on...

Question 12

How can a firm benefit from segmenting the market?

Accepted Answer

The answer of How can a firm benefit from segmenting...

Question 13

Which of the following is NOT an example of a demographic segmentation variable?

Accepted Answer

Lifestyle is considered a psychographic segmentation variable, not a demographic one. Demographic variables include income, gender, and education.

Question 14

A firm that targets very broad segments with relatively homogeneous offerings is most likely using a marketing strategy.

Accepted Answer

A global marketing strategy involves targeting very broad segments across multiple countries with relatively homogeneous offerings.

Question 15

Age,income,lifestyle,and location are examples of .

Accepted Answer

The answer of Age,income,lifestyle,and location are examples of .
...

Question 16

A strategy of differentiated marketing will most likely lead to superior value and lower unit costs.

Accepted Answer

Differentiated marketing focuses on targeting multiple market segments with specific strategies for each, often leading to higher costs due to the need for varied products, marketing campaigns, and distribution channels, rather than lower unit costs.

Quiz 4: Strategy Formation