Question 1

Price should be based on the value that the customer perceives.

Accepted Answer

Price should be based on the value that the customer perceives, rather than just the cost of production or materials. Customers are often willing to pay more for a product or service that they perceive to have high value or solve a specific problem for them. Thus, pricing strategies should take into account the customer's perception of value in order to effectively price products or services.

Question 2

The "Implement Marketing Mix" step of the strategic marketing planning process is part of the control phase.

Accepted Answer

False

Question 3

Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantage?
A) Locational excellence
B) Customer excellence
C) Operational excellence
D) Product excellence
E) Planning excellence

Accepted Answer

Planning excellence is not one of the four overarching strategies mentioned in marketing literature. The four strategies are locational excellence, customer excellence, operational excellence, and product excellence.

Question 4

iTunes software is often credited for the success of the Apple iPod MP3 player,because it made the iPod easier to use than competing players,and was difficult for competitors to duplicate.This is an example of a sustainable competitive advantage.

Accepted Answer

A sustainable competitive advantage refers to a unique advantage that a company has over its competitors or a set of advantages that allow it to maintain its position in the market over a long period of time. In this case, the iTunes software provided a unique advantage to the iPod over its competitors, making it easier to use and difficult to duplicate, resulting in the success of the iPod.

Question 5

If a firm wants to develop a sustainable competitive advantage,it should:
A) begin an aggressive campaign to buy up competitors.
B) copy the innovative features of other firms that are attractive to customers.
C) examine its operations and customer relations to identify significant things competitors cannot easily copy.
D) increase its marketing budget so that it outspends its competitors.
E) arrange to meet with competitors to discuss how to avoid direct competition.

Accepted Answer

Developing a sustainable competitive advantage means having a unique position in the market that competitors cannot easily replicate. Examining operations and customer relations to identify what sets the company apart from competitors is a good way to achieve this. Options A, B, D, and E all focus on copying or outcompeting other firms, which does not create a sustainable advantage.

Question 6

The marketing planning process always proceeds sequentially through the five steps.

Accepted Answer

The marketing planning process is not always sequential and can involve going back and forth between the steps, as well as revising plans based on feedback and analysis.

Question 7

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

Accepted Answer

The answer of Duke's is a surfer-themed restaurant chain in...

Question 8

Taking steps to encourage customer loyalty is one way to:
A) test new products.
B) promote efficiency.
C) sustain an advantage over competitors.
D) develop new pricing strategies.
E) improve supply chain effectiveness.

Accepted Answer

Encouraging customer loyalty is a way to sustain an advantage over competitors. By creating loyal customers, businesses are more likely to retain those customers and have them choose their products or services over competitors. This can lead to increased sales and profitability.

Question 9

A mission statement describes the specific actions a firm will take to achieve its goals.

Accepted Answer

A mission statement is a brief description of an organization's purpose and the overall approach or direction it will take to achieve its goals, but it does not specifically detail the actions the firm will take.

Question 10

If Starbucks decided to start selling organic meals to corporate eating facilities,it would be pursuing a diversification strategy.

Accepted Answer

Diversification strategy involves expanding the business into new markets or industries. In this case, Starbucks would be expanding its business by entering the market for organic meals for corporate eating facilities, which is a new industry for the company.

Question 11

The components of a SWOT analysis are Strengths,Weaknesses,Opportunities and Tactics.

Accepted Answer

The components of a SWOT analysis are Strengths, Weaknesses, Opportunities and Threats, not Tactics.

Question 12

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

Accepted Answer

Geraldo manages a strategic business unit, which typically operates with some degree of autonomy and makes decisions independently.

Question 13

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 BCG portfolio analysis,the Sansa would be considered a dog.

Accepted Answer

According to BCG portfolio analysis, a product with low relative market share in a declining market would be considered a "dog". Therefore, Sandisk's Sansa MP3 player product line would be considered a dog in this scenario.

Question 14

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

Accepted Answer

Depending on the situation, some steps in the marketing planning process may not be relevant or necessary, and can be skipped or modified to fit the specific needs and goals of the organization. However, it is important to carefully evaluate which steps to skip or modify to avoid missing crucial information or opportunities.

Question 15

When Ramona,the keynote speaker at a major business leaders' conference,arrived in the middle of the night at the Ritz-Carlton,she was exhausted and her suit was wrinkled from her ten-hour plane trip.The night clerk found someone to dry clean Ramona's suit and have it ready for her morning presentation.She has been a loyal Ritz-Carlton customer ever since.In this example,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 answer of When Ramona,the keynote speaker at a major...

Question 16

Strong supplier relations and efficient supply chains help firms such as Walmart to achieve operational excellence.

Accepted Answer

Strong supplier relations and efficient supply chains help Walmart to obtain the right products at the right time at the right prices, which in turn helps it to reduce costs and increase efficiency. This is a key factor in Walmart's operational excellence.

Question 17

STP refers to segmentation,testing,and promotion.

Accepted Answer

STP refers to segmentation, targeting, and positioning, which are important steps in creating a marketing strategy. Promotion is an element of the marketing mix, which is used to communicate the value proposition of a product or service to potential customers.

Question 18

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

Accepted Answer

Building a sustainable competitive advantage often requires a combination of multiple strategies such as cost leadership, differentiation, and focus. A company may need to adopt different strategies for different products or market segments in order to effectively compete and maintain their advantage over time.

Question 19

Isaac is looking for ways to offer new goods and services to his existing customers.He is pursuing a market development strategy.

Accepted Answer

Isaac is pursuing a product development strategy, as he is looking to offer new goods and services to his existing customers. Market development involves entering new markets with existing products.

Question 20

Firms are typically more successful when they focus on opportunities that build on their competitors' strengths.

Accepted Answer

Firms are typically more successful when they focus on opportunities that build on their own strengths, rather than their competitors' strengths. By leveraging their own unique advantages, they can differentiate themselves and potentially gain a competitive advantage. Focusing too heavily on competing directly with a competitor's strengths can lead to a crowded market and may not result in sustainable success.

Quiz 2: Developing Marketing Strategies and a Marketing Plan