Question 1

Canadian discount retail giant Giant Tiger hopes to strengthen its position as one of the country's leading sellers of infant products with a 60-page catalogue that offers buyers the ability to purchase products via the phone or Internet. This new strategy reflects a change in which element of its marketing mix?

Accepted Answer

The new strategy of offering buyers the ability to purchase products via phone or internet reflects a change in the distribution element of Giant Tiger's marketing mix.

Question 2

CentralPulse is Europe's largest manufacturer of hip and knee replacement joints. Which of the following would best describe the surgeons and hospitals on which CentralPulse will focus its marketing efforts?

Accepted Answer

CentralPulse's target market refers to the group of individuals or organizations that the company is aiming to sell its products or services to. In this case, CentralPulse is targeting surgeons and hospitals who are likely to use or recommend their hip and knee replacement joints to their patients. Therefore, option A, "CentralPulse's target market" would be the most appropriate choice.

Question 3

There is an overabundance of apartments in a major city. Post Properties, the owner of many of the metropolitan area's largest apartment complexes, has reduced its rent so it can fill vacant apartments. Which of the following types of strategies did Post Properties use to create more demand for its apartments?

Accepted Answer

Post Properties used a pricing strategy by reducing its rent to attract more demand for its apartments. This is a common approach when there is an oversupply of a particular product or service.

Question 4

CFM Corporation of Canada learned that many of its Sequoia brand wood-burning stoves had insufficient insulation and posed fire threats. Which one of the marketing mix strategies should the stove manufacturer use to alert buyers to this problem?

Accepted Answer

Promotion is the best marketing mix strategy for CFM Corporation to alert buyers to the problem of insufficient insulation in their Sequoia brand wood-burning stoves. The company can use various forms of promotion, such as advertising, sales promotion, public relations, and personal selling, to inform buyers about the safety concerns and the steps they can take to address the issue. For example, the company can run ads in print and digital media that highlight the benefits of proper insulation and the risks of using a stove with inadequate insulation. The company can also offer discounts, rebates, or free upgrades to customers who purchased the faulty stoves, and send out press releases and statements to reassure customers that they are taking corrective action. Overall, a targeted and informative promotion campaign can help CFM Corporation address the safety issue proactively and maintain its reputation and customer loyalty.

Question 5

C-Ice, an iced-tea drink can be purchased only at health food stores. The product's competitive advantage is supported by this limitation on which element of its marketing mix strategy?

Accepted Answer

The limitation that C-Ice can only be purchased at health food stores is related to distribution, as it determines where and how the product is made available to customers. The other elements of the marketing mix (product, promotion, and planning) are not directly impacted by this limitation.

Question 6

Solitude Nurseries is a retailer that helps homeowners create backyards of nature and beauty. Its owner believes he maintains the loyalty of the store's customers by stocking only the highest-quality merchandise and offering a customer satisfaction guarantee. With which element of the marketing mix is the manager most concerned?

Accepted Answer

The manager of Solitude Nurseries is most concerned with the product element of the marketing mix because they focus on stocking only the highest-quality merchandise.

Question 7

Which of the following describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments?

Accepted Answer

Market opportunity analysis involves identifying and evaluating potential market segments, as well as assessing competition in those segments. The other options listed are not specifically focused on analyzing market segments and competition.

Question 8

Making sure products are available when and where customers want them is the job of which element of the marketing mix?

Accepted Answer

Distribution strategies are responsible for getting the product to the customer in the most efficient and effective way possible. This involves decisions about channels of distribution, transportation, inventory management, and order processing.

Question 9

SoBe nutritional beverages use twin lizards on every bottle and in all promotion efforts. SoBe even sponsors its own Team Lizard made up of skateboarders, mountain bike riders, and inline skaters. The lizard is used to remind consumers of the product and its benefits. To which of the four Ps does this strategy relate?

Accepted Answer

The use of twin lizards on every bottle, in all promotion efforts, and even sponsoring its own Team Lizard relates to the promotion aspect of the four Ps of marketing. The lizard is used as a visual cue to remind consumers of the product and its benefits, which is a promotional strategy to increase brand awareness and sales.

Question 10

Coca-Cola is a syrupy drink. It generally uses mass advertising, is sold through convenience stores and vending machines, and is usually sold at around $1.25 per can. What do these facts comprise?

Accepted Answer

The given facts describe the components of Coke's marketing mix. The mass advertising and the selling through convenience stores and vending machines indicate its promotion and distribution strategies, while the price of $1.25 per can is a part of its pricing strategy.

Question 11

The determination of the Australian wine industry to exercise control over the winemaking process was perceived as revolutionary. The Australian wine industry's continuing relentless quest for quality improvement established Australian wine as a market leader. What does this unique two-decade quest's superior quality give Australian wine?

Accepted Answer

The two-decade quest for quality improvement has given the Australian wine industry a sustainable competitive advantage, which means they are able to maintain their superiority in the market for a prolonged period of time.

Question 12

Chapman's introduction of frozen yogurt for a health-conscious market has most directly affected which element of the company's marketing mix?

Accepted Answer

The introduction of frozen yogurt directly affects the product element of the marketing mix, as it is a new product being offered to the market.

Question 13

What does the promotion strategy of the marketing mix deal exclusively with?

Accepted Answer

The promotion strategy of the marketing mix deals with personal selling, advertising, sales promotion, and public relations. This means that it involves a combination of communication and promotional tools used to inform, persuade, and remind the target audience about the product or service being offered.

Question 14

Which of the marketing mix strategies is the most flexible?

Accepted Answer

Pricing is the most flexible element of the marketing mix because it can be adjusted quickly in response to changes in the market or competitive actions, unlike product features, distribution channels, or promotional campaigns which typically require more time and resources to change.

Question 15

C-Ice is a canned beverage made from tea and cannabis that is marketed in Europe as a nutritional drink that can boost a user's immune system. For C-Ice, which of the following would best describe the people who want to improve or maintain their health?

Accepted Answer

C-Ice's target market refers to the group of people that the product is specifically designed and marketed for, in this case, those who want to improve or maintain their health. This term is commonly used in marketing to identify the specific group of consumers a product is intended for.

Question 16

ConAgra Foods Inc. has decided to sell all of its meat-processing plants and get out of its meat-processing business in order to raise the company's net profits. How will the sale of the processing plants affect ConAgra's marketing mix?

Accepted Answer

The sale of all its meat-processing plants will affect all of ConAgra's marketing mix elements, either directly or indirectly. Indirectly, it may affect the product element, as ConAgra will no longer be producing meat-related products. It will also affect the price element, as the cost of production will change due to the sale of the plants. Furthermore, it may affect the promotion element, as ConAgra may need to rebrand and advertise its remaining products in a new way. Finally, it may also affect the distribution element, as ConAgra may need to find new ways to distribute its products without the support of its meat-processing plants.

Question 17

Golden Valley Microwave Foods Inc. is the manufacturer of ACT II popcorn. In its early years, the company had trouble financing the development and marketing of products for the microwave. It chose to participate in a financial arrangement in which it agreed that it would not sell ACT II popcorn in supermarkets or grocery stores. Which element of the marketing mix was most influenced by this arrangement?

Accepted Answer

The financial arrangement made by Golden Valley Microwave Foods Inc. to not sell ACT II popcorn in supermarkets or grocery stores directly influenced the "place" element of the marketing mix. Place refers to the channels, locations, and methods used to distribute and make a product available to customers. By restricting the distribution channels, the company limited the availability of its product to consumers.

Question 18

What is the starting point of any firm's marketing mix?

Accepted Answer

The first element of the marketing mix is the development of the good or service to be sold. This being said, before any positioning, pricing, or promotion decisions can be made, the product needs to be designed and developed.

Question 19

Oakley Sunglasses describes its customers as male and female, 18 to 25 years of age, single, high school graduates, and earners of above-average incomes. How would the company have identified this market segment?

Accepted Answer

The company would have identified this market segment through a target market strategy, which involves analyzing the market and selecting a specific group of consumers to target with marketing efforts based on their demographics, psychographics, and behavior patterns.

Question 20

Flexcar is a car rental agency that is geared for people who take mass transit or carpool to work but occasionally need to run errands, visit the doctor, or check on a sick child during the workday. What does this example describe?

Accepted Answer

The example describes Flexcar's target market, which consists of people who primarily use mass transit or carpool to work but occasionally need to use a car for personal errands or emergencies.

Quiz 3: Strategic Planning for Competitive Advantage