Question 1

Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered 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.
A) product
B) place
C) customer
D) operational
E) locational

Accepted Answer

Joe's Sports Shack's ability to deliver merchandise overnight, in required quantities, and at a lower delivered cost than competitors shows operational excellence, which refers to a company's ability to efficiently and effectively manage its internal processes and resources to achieve its business objectives.

Question 2

When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent?
A) market penetration
B) product penetration
C) market development
D) product development
E) diversification

Accepted Answer

Nike expanding its product line from only selling athletic shoes to also offering athletic clothing and gym bags represents product development, which involves creating new products or modifying existing ones to appeal to current customer needs or to enter new markets.

Question 3

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is NOT one of these factors?
A) ethical
B) cultural
C) political
D) technological
E) demographic

Accepted Answer

The CDSTEP factors that a company should assess during a SWOT analysis are Cultural, Demographic, Social, Technological, Economic, and Political. Ethical is not part of this acronym. However, ethical considerations can still be evaluated during a SWOT analysis as it is an important aspect of a company's overall strategy.

Question 4

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through slotting allowances, which are payments to retailers in return for shelf space. Combined, these four firms have
A) identical marketing mixes.
B) customer excellence.
C) a sustainable competitive advantage.
D) achieved product excellence.
E) violated laws governing competition.

Accepted Answer

These firms have a sustainable competitive advantage due to their large volume production, heavy promotion, and control over supermarket shelf space through slotting allowances. This combination of strategies makes it difficult for new competitors to enter the market.

Question 5

Coca-Cola sells two zero-calorie versions of Coke: Diet Coke and Coke Zero. 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
A) positioning.
B) targeting.
C) segmentation.
D) a market segment.
E) market penetration.

Accepted Answer

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

Question 6

During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning?
A) planning phase
B) implementation phase
C) evaluation phase
D) control phase
E) strategy phase

Accepted Answer

The answer of During which phase of the marketing planning...

Question 7

A marketing strategy identifies three things: ________, a related marketing mix, and the bases on which the firm plans to build a sustainable competitive advantage.
A) customer value
B) a mission statement
C) marketing metrics
D) a firm's target markets
E) a product plan

Accepted Answer

A marketing strategy identifies a firm's target markets, or the specific groups of customers towards which it directs its marketing efforts. Additionally, a marketing strategy includes a related marketing mix, or the set of tactics that the firm uses to reach and appeal to its target markets. Finally, a marketing strategy should also outline the bases on which the firm plans to build a sustainable competitive advantage, or what sets it apart from competitors and makes it uniquely able to meet the needs of its target markets. While customer value, a mission statement, marketing metrics, and a product plan may all be important components of a comprehensive marketing plan, they are not the three specific things that a marketing strategy must identify.

Question 8

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.
A) product
B) price
C) promotion
D) place
E) financial

Accepted Answer

By expanding their network coverage, cellular service providers are improving their distribution (place), which is one of the four P's of marketing. This is an example of creating value through improving accessibility and convenience for customers.

Question 9

A competitive advantage based on location is often sustainable because
A) mobile marketing has not yet proven its value for most customers.
B) real estate prices have been dropping.
C) few marketers are aware of its importance yet.
D) it is not easily duplicated.
E) the Internet has diminished the importance of brick and mortar stores.

Accepted Answer

A location-based competitive advantage is often sustainable because it is not easily duplicated. It is difficult and expensive for competitors to move to the same location or replicate the same physical environment, making it a durable advantage.

Question 10

Allen is in the marketing department of a mid-sized firm that develops and sells communications systems. He is proud of the Human Resources area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an operational advantage for the firm because of all of the following EXCEPT
A) customers appreciate the kind of service that knowledgeable employees provide.
B) employees play a major role in the success of the firm.
C) it is easier to communicate with and inspire the customer if the employees believe in what the firm is doing.
D) building customer loyalty depends on a committed workforce.
E) the company provides products with a high perceived value.

Accepted Answer

The statement does not indicate that HR helps create an operational advantage for the firm by providing products with a high perceived value. The other options listed are all ways in which HR can contribute to the success of the firm.

Question 11

In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) __________ strategy.
A) market development
B) market penetration
C) operational excellence
D) customer excellence
E) product development

Accepted Answer

Product development strategy involves introducing new products or modifying existing products to offer improved benefits to customers. Apple introducing the iPhone with added features such as a camera, cellular telephone and internet access is an example of product development strategy.

Question 12

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business?
A) Nike will probably have to invest heavily in the athletic shoe business, including extensive promotions and new production facilities.
B) Nike should consider exiting the athletic shoe market.
C) Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it is likely to receive.
D) Nike's athletic shoe business still requires some investment but is likely to produce excess resources that can be invested in other divisions of the company.
E) Nike should invest in the athletic shoe market only if it helps to boost the sales of other products in fast-growing markets.

Accepted Answer

Nike should continue to invest in its athletic shoe business but also focus on generating excess resources that can be invested in other divisions of the company. As the market leader, Nike can maintain its position by investing in new technologies and product designs, as well as expanding its distribution network. By doing this, Nike can continue to grow its athletic shoe business while also generating cash that can be invested in other areas of the company.

Question 13

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat?
A) The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity.
B) Recent consumer studies have indicated that Chinese consumers prefer American cars.
C) A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.
D) Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors.
E) The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

Accepted Answer

The $10 million class action suit filed against the company represents a potential threat to the company's financial stability and reputation. The other factors listed could be viewed as opportunities (A, B, and E) or weaknesses (D) but not necessarily as direct threats.

Question 14

In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbro be categorized?
A) Strength
B) Opportunity
C) Weakness
D) Segment
E) Threat

Accepted Answer

The answer of In its discussion of Nike and adidas,...

Question 15

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy?
A) Singapore Airlines, installing more comfortable seats in the economy-class cabins of its airplanes.
B) 3M Corporation, implementing new software to improve communication with its suppliers.
C) adidas, inviting customer suggestions to guide the design of the next generation of Air Jordan shoes.
D) Nike, opening hundreds of new company stores in high-traffic shopping areas.
E) McDonald's, lowering prices on its coffee drinks.

Accepted Answer

Implementing new software to improve communication with suppliers can streamline the supply chain and improve operational efficiency, which aligns with an operational excellence macro strategy. The other options focus more on improving customer experience or expanding market presence, which may not necessarily align with this particular strategy.

Question 16

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity?
A) The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity.
B) Recent consumer studies have indicated that Chinese consumers prefer American cars.
C) A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.
D) Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors.
E) The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

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 17

Value creation through place decisions for a consumer product involves
A) putting the product in the front of the store.
B) designing creative displays to capture consumers' attention.
C) pricing products differently at different stores.
D) making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to.
E) focusing exclusively on Internet sales to reduce supply chain costs.

Accepted Answer

Making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to, is the most effective way to create value through place decisions for a consumer product. This ensures that customers can purchase the product conveniently, which enhances their overall satisfaction and perception of the brand. While options A and B can be helpful in capturing attention, they do not guarantee that the product will be available to customers in the right place, at the right time. Option C may lead to confusion or frustration among customers who expect consistent pricing, regardless of location. Option E ignores the importance of physical placement and availability of the product.

Question 18

Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from two to five percent over last year's sales at Stores 1 and 2 but fell two percent at Store 3. Based on this information, how should Marcia reward (or punish) her store managers?
A) She should give bonuses to the managers of Stores 1 and 2 and put the Store 3 manager on probation.
B) She should ignore the sales data; this is not an appropriate marketing metric.
C) She should give each manager a raise, tied to the store results.
D) She should review at least ten years of sales data about her stores' performance before making a decision.
E) She should seek more information about why the stores had different results before making a decision.

Accepted Answer

Before making any decision, Marcia should seek more information about why Store 3 had a decrease in sales while Stores 1 and 2 had an increase in sales. There could be various factors, such as location, competition, staff performance, or marketing strategies, that could have affected the stores' performance differently. Evaluating the reasons for the different results would help Marcia understand which stores need improvement and what actions need to be taken to increase sales.

Question 19

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
A) generate cost-based performance ratios.
B) evaluate performance and make adjustments.
C) increase product excellence without reducing customer excellence.
D) develop segmentation strategies.
E) choose a business mission.

Accepted Answer

Evaluating performance and making adjustments is difficult when firms implement poor strategies or do a poor job of implementing good strategies because it can be challenging to determine what is causing their performance success or failure. Without this understanding, it is harder to make informed decisions about how to improve or change strategies going forward.

Question 20

Delta Airlines is among the companies experimenting with selling products and services on its 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?
A) product and value creation
B) price and value capture
C) place and value delivery
D) promotion and value communication
E) positioning and value promotion

Accepted Answer

Selling products and services on Facebook pages is related to the place and value delivery element of the marketing mix, as it focuses on making the purchase process more convenient and accessible for customers who are already present on the social media platform.

Quiz 2: Developing Marketing Strategies and a Marketing Plan

Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered 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.

When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent?

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is NOT one of these factors?

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through slotting allowances, which are payments to retailers in return for shelf space. Combined, these four firms have

During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning?

A marketing strategy identifies three things: ________, a related marketing mix, and the bases on which the firm plans to build a sustainable competitive advantage.

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.

A competitive advantage based on location is often sustainable because

In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) __________ strategy.

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business?

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

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy?

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

Value creation through place decisions for a consumer product involves

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