Question 1

Establishing a sustainable competitive advantage is the key to long-term financial performance.

Accepted Answer

Establishing a sustainable competitive advantage allows a company to differentiate itself from its competitors and maintain its position in the market, which is essential for long-term financial success.

Question 2

The strategic planning process always proceeds sequentially.

Accepted Answer

The strategic planning process can involve a non-linear process and may require revision and iteration before a final plan is developed.

Question 3

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
A)product design excellence.
B)mission statement satisfaction.
C)sustainable price decreases.
D)a sustainable competitive advantage.
E)producer excellence.

Accepted Answer

Nordstrom's reputation for excellent customer service will result in a sustainable competitive advantage, as it differentiates them from their competitors and creates brand loyalty among customers.

Question 4

When Kennedy arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her 10-hour plane trip. The night clerk found someone to dry clean Kennedy's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. Ritz-Carlton demonstrated the macro strategy of
A)customer excellence.
B)operational excellence.
C)product excellence.
D)promotional excellence.
E)global excellence.

Accepted Answer

The Ritz-Carlton demonstrated customer excellence by going above and beyond to meet Kennedy's needs, ensuring her loyalty through exceptional service.

Question 5

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 Boston Consulting Group (BCG)portfolio analysis, the Sansa would be considered a dog.

Accepted Answer

According to BCG portfolio analysis, a product with low relative market share and in a declining market would be classified as a "dog."

Question 6

Product penetration is one of the four major growth strategies.

Accepted Answer

The answer of Product penetration is one of the four...

Question 7

Amazon is able to achieve operational excellence because it not only has the technology to coordinate personal buyers, it also has an effective HR hiring program that selects and trains the best employees.

Accepted Answer

Amazon's success in achieving operational excellence can be attributed to a combination of technology and effective HR hiring and training programs.

Question 8

Within portfolio analysis, a star represents a high-growth market with high market share products.

Accepted Answer

A star is a product or business unit that operates within a high-growth market and has high market share, meaning it has the potential to generate significant revenue and profits.

Question 9

Niro Music Source Inc. is considered the best in the industry in terms of human resource management and its excellent supply chain that assures the company will deliver products on time. Which macro strategy does this company demonstrate to achieve a sustainable competitive advantage?
A)locational excellence
B)customer excellence
C)operational excellence
D)product excellence
E)planning excellence

Accepted Answer

Niro Music Source Inc. demonstrates operational excellence by having efficient human resource management and a reliable supply chain, which allows them to deliver products on time. This strategy helps them to achieve a sustainable competitive advantage.

Question 10

When Molly and her family visited Disney World last month, she was amazed that every staff member she talked to was able to answer her question regardless of whether it was about a hotel, restaurant, parade time, or fireworks display. She was very impressed. Which type of excellence does this represent?
A)operational
B)locational
C)customer
D)product
E)service

Accepted Answer

Molly was impressed with the way the staff members were able to meet her needs and answer her questions, showing a high level of customer service and excellence.

Question 11

Value-based marketing requires that firms charge a price that customers perceive as giving them a good value for the product they receive.

Accepted Answer

Value-based marketing is focused on providing a good value proposition to the customer, which includes setting a price that matches the perceived value of the product or service. Therefore, it is true that firms should charge a price that customers perceive as giving them a good value.

Question 12

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

Accepted Answer

In a SWOT analysis, the possibility that a recession might cut back on tourism in Hawaii would be considered an external threat, not a weakness. Weaknesses are internal factors that detract from the company's ability to achieve its objectives.

Question 13

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

Accepted Answer

Miles manages a strategic business unit, which is designed to operate as an independent entity within the larger corporation, with its own strategy and decision-making authority. This means that Miles likely has a significant degree of autonomy in managing the electrical turbine engine division without having to consult with headquarters for every decision.

Question 14

Some banks offer special accounts designed to attract junior high school students. Savings in these accounts are generally small amounts, which cost banks more to maintain than they are worth; however, bankers know that consumers are creatures of habit and hope that these young people will become adult customers. These banks recognize
A)that operational excellence is an important macro strategy.
B)the lifetime value of customers.
C)that product excellence leads to loyal customers.
D)the importance of making decisions based on short-term results.
E)that if customers bring in some revenue, costs do not matter.

Accepted Answer

The banks offering special accounts for junior high school students understand the concept of the lifetime value of customers. They are willing to incur the cost of maintaining these small accounts in the hopes that these young customers will become loyal adult customers in the future, thus increasing their overall profits.

Question 15

The step during which marketers segment the market, target those market segments, and position products is known as the control phase.

Accepted Answer

The step during which marketers segment the market, target those market segments, and position products is known as the marketing mix phase, not the control phase. The control phase is typically the final step in the marketing process where marketers evaluate the success of their marketing strategies and make adjustments as necessary.

Question 16

Corinne works for an online movie streaming company. Her task is to find ways to push out the company's current movie offerings to countries in Europe. She is pursuing a market development strategy.

Accepted Answer

Corinne's objective of expanding the company's movie offerings in Europe through market development strategy aligns with the definition of market development.

Question 17

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

Accepted Answer

Building a sustainable competitive advantage involves developing multiple strategies and capabilities that work together harmoniously to create a unique position in the market that is difficult for competitors to imitate. Focusing on a single strategy may leave a company vulnerable to disruptions or shifts in the market, making it harder to maintain a competitive edge over time.

Question 18

Firms use segmentation, targeting, and promotion to choose the consumer groups they wish to pursue with its marketing efforts.

Accepted Answer

The answer of Firms use segmentation, targeting, and promotion to...

Question 19

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

Accepted Answer

Depending on the situation or context, some steps in the marketing planning process may not be necessary or may need to be modified or skipped. It is important to assess the needs and goals of the organization and adapt the planning process accordingly.

Question 20

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. The specific actions are typically outlined in a firm's strategic plan or business plan.

Quiz 2: Developing Marketing Strategies and a Marketing Plan