Question 1

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat?

Accepted Answer

The $10 million class action suit filed against the company is a threat to its reputation and financial stability. The other options may present challenges or opportunities, but they are not immediate threats to the company's success.

Question 2

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business?

Accepted Answer

The Boston Consulting Group portfolio analysis suggests that Nike's athletic shoe business is a cash cow, meaning it is a mature and established business that generates excess resources that can be invested in other divisions of the company. Therefore, while some investment is still required to maintain market leadership, Nike can expect to reap financial benefits from its athletic shoe business that can be used to invest in other areas. Option D best reflects this analysis.

Question 3

________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

Accepted Answer

Market positioning is the process of defining how a product or brand is perceived by target customers in relation to its competitors. This involves determining the unique value proposition, communicating it clearly to the target customer, and being consistent in delivering it through the marketing mix variables: product, price, place, and promotion. By positioning the product effectively, marketers can differentiate it from the competition and create a distinct impression that resonates with the needs and wants of the target market.

Question 4

A product that is in a high-growth market but has a low market share would be classified as a ________ on the BCG matrix.

Accepted Answer

A product that is in a high-growth market but has a low market share is classified as a "question mark" on the BCG matrix. This means that it has high potential for growth, but requires a lot of investment to reach its full potential.

Question 5

Creating value for a consumer product via place decisions involves

Accepted Answer

Creating value for a consumer product via place decisions involves making sure the product is available where and when customers will want it. This can be achieved through efficient distribution, wide availability, and timely stocking to meet consumer demand. The other options may also play a role in attracting customers, but they do not directly address the availability and convenience of the product.

Question 6

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several CDSTEP factors. The "E" in this acronym stands for which factor?

Accepted Answer

The "E" in CDSTEP stands for Economic, which refers to the economic factors that can influence a company's operations and opportunities in the marketplace.

Question 7

Which of the following statements regarding marketing metrics is true?

Accepted Answer

Metrics are used to quantify trends, dynamics, or characteristics, helping businesses measure and analyze performance effectively.

Question 8

Coca-Cola sells two different zero-calorie versions of Coke: Diet Coke and Coke Zero (now known as Coca-Cola Zero Sugar). It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a masculine-looking can for Coke Zero, with bold red lettering on a black background. This specially designed can is an example of

Accepted Answer

The answer of Coca-Cola sells two different zero-calorie versions of...

Question 9

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity?

Accepted Answer

Recent consumer studies indicating a preference for American cars among Chinese consumers represent an external market opportunity for the U.S. auto manufacturer to expand or increase its market share in China.

Question 10

During which phase of the marketing planning process does a firm evaluate performance using marketing metrics?

Accepted Answer

The control phase is focused on evaluating performance and making necessary adjustments based on marketing metrics. This phase is necessary to ensure that the implementation of the marketing plan is achieving the desired results and meeting the established goals.

Question 11

In which of the following situations can a firm's human resources department contribute to a firm's operational excellence?

Accepted Answer

Hiring and training exceptional employees can lead to improved customer service and operational efficiency, contributing to a firm's operational excellence.

Question 12

Delta Airlines is among the companies experimenting with selling products and services on their Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta's website-users can book a trip in Delta's "Ticket Agent" application without ever leaving Facebook. Which element of the marketing mix does this represent?

Accepted Answer

This represents the element of "place and value delivery" as Delta Airlines is delivering the convenience of purchasing their services on a platform (Facebook) where customers already spend a lot of their time, making it easier for them to access and book their services without leaving the platform.

Question 13

In 2007, Apple first introduced to its customers the iPhone, which combined a cellular telephone, a camera, and Internet access. By doing this, the company had pursued a(n) ________ growth strategy.

Accepted Answer

Apple pursued a product development growth strategy by introducing a new product, the iPhone, which combined multiple functionalities into one device, thereby expanding its product offerings.

Question 14

Of what use is a sustainable competitive advantage to a firm?

Accepted Answer

The answer of Of what use is a sustainable competitive...

Question 15

Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivery cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates ________ excellence.

Accepted Answer

Joe's Sports Shack demonstrates operational excellence by efficiently managing its supply chain to deliver merchandise overnight, in required quantities, and at a lower cost than competitors.

Question 16

Which of the following actions would be the most likely to support and enhance an operational excellence macro strategy?

Accepted Answer

Implementing new software to improve communication with suppliers would help streamline operations and increase efficiency, which aligns with the operational excellence macro strategy. The other options may be more aligned with other macro strategies (e.g. customer intimacy or product leadership).

Question 17

When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to

Accepted Answer

Evaluating performance and making adjustments is crucial for improving the firm's effectiveness and competitiveness. If a poor strategy is successfully implemented, it may be difficult to determine whether it was due to good luck or the strategy itself. Similarly, if a good strategy is poorly implemented, it may not show the expected results, making it hard to make adjustments and improve performance. Therefore, it is important to evaluate the firm's performance and make necessary adjustments to achieve success.

Question 18

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called

Accepted Answer

Market segmentation. Market segmentation involves dividing a larger market into smaller groups or segments based on factors such as demographics, psychographics, behavior or geography, etc. This helps marketers to tailor their marketing strategies to the specific needs and preferences of each segment, thus improving the effectiveness of their marketing efforts.

Question 19

The growth rate for the iMac desktop, which has a small relative market share in the desktop market, has slowed down in recent years. Although sales have dropped by approximately 3 percent, it remains popular among graphic designers. Given these conditions, in which quadrant of the BCG matrix would the iMac most likely fall?

Accepted Answer

The iMac, with its slowed growth rate and small market share, aligns with the characteristics of a product in the lower right quadrant of the BCG matrix, which represents products in low-growth markets with low market share, often referred to as "dogs."

Question 20

In recent years, cellular (mobile) service providers have worked hard to eliminate "dead zones," providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on ________ value creation.

Accepted Answer

Cellular service companies were striving to create value by increasing accessibility of their services, making them available in as many places as possible. This is an example of creating value through "place," which refers to the distribution channels used to make a product or service available to customers.

Quiz 2: Developing Marketing Strategies and a Marketing Plan