Question 1

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

There are only four overarching strategies mentioned in the question and "Planning excellence" is not one of them. The four strategies are product excellence, operational excellence, customer excellence, and locational excellence.

Question 2

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

Accepted Answer

The marketing planning process does not necessarily proceed sequentially through the five steps. It may be an iterative process where steps are revisited, skipped, or completed out of order depending on the situation.

Question 3

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 is when a company has an advantage over its competitors that is difficult to replicate or surpass. In this case, iTunes software made the iPod easier to use and was difficult for competitors to duplicate, thus creating a sustainable competitive advantage for the Apple iPod.

Question 4

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 focus of a company, including its values and aspirations, but does not necessarily include specific actions. The specific actions are typically outlined in a company's strategic goals and objectives.

Question 5

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 allow Walmart to receive goods in a timely manner, reduce costs, and maintain consistent quality. This helps Walmart achieve operational excellence and better meet customer demand.

Question 6

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

The Sansa having a low relative market share in a declining market makes it a good candidate for being classified as a dog in BCG portfolio analysis.

Question 7

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 8

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

The most effective way for a firm to develop a sustainable competitive advantage is to identify significant things competitors cannot easily copy. This can range from unique production processes to exclusive partnerships with suppliers or distributors. By developing and leveraging these advantages, a firm can establish a stronger position in the market that is difficult for competitors to replicate. Aggressively buying up competitors or copying innovative features may yield short-term gains, but these strategies are not sustainable and can ultimately erode a firm's competitive position. Increasing marketing budgets or collaborating with competitors may also have limited impact on sustaining a competitive advantage.

Question 9

STP refers to segmentation,testing,and promotion.

Accepted Answer

STP stands for segmentation, targeting, and positioning, not testing and promotion.

Question 10

Relative market share is an example of a marketing metric.

Accepted Answer

Relative market share is a marketing metric that is used to measure a company's market share compared to that of its competitors in the same industry. This metric helps companies understand their market position and identify areas for growth or improvement.

Question 11

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

Accepted Answer

The "Implement Marketing Mix" step is part of the implementation phase, not the control phase. The control phase involves evaluating performance and making necessary adjustments.

Question 12

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

Accepted Answer

Price is not solely based on the cost of production or the competition, but also on the perceived value of the product or service by the customer. The more value the customer sees in the product or service, the more they are willing to pay for it. This is why companies often conduct market research to understand their customers' needs and preferences and adjust their pricing strategy accordingly.

Question 13

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

In a SWOT analysis, external factors like a recession affecting tourism would be considered a Threat, not a Weakness. Weaknesses are internal factors.

Question 14

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 15

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

Accepted Answer

Depending on the specific situation and goals, some steps in the marketing planning process may not be necessary or may be condensed. It is important to evaluate each step and determine its relevance and value to the overall marketing strategy.

Question 16

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's management style and the fact that he manages a specific division of the company indicate that he is managing a strategic business unit.

Question 17

Firms decide how to allocate resources to their various products and services during the STP step of the marketing planning process.

Accepted Answer

The answer of Firms decide how to allocate resources to...

Question 18

Product penetration is one of the four major growth strategies.

Accepted Answer

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

Question 19

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

Accepted Answer

Companies should not focus on a single strategy as markets and competition are constantly evolving. Instead, they should adopt a dynamic approach that allows them to adjust and optimize their strategies as needed to maintain a sustainable competitive advantage.

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 and capabilities, rather than solely on their competitors' strengths.

Quiz 2: Developing Marketing Strategies and a Marketing Plan

Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantage?