Question 1

STP refers to segmentation,testing,and promotion.

Accepted Answer

STP stands for segmentation, targeting, and positioning. Promotion is a part of the marketing mix, but is not specifically included in the STP process.

Question 2

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

Accepted Answer

A mission statement describes a company's purpose and overall approach to achieving its goals, but it does not outline specific actions. A company's strategies and action plans will be developed based on the mission statement.

Question 3

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 10-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 Ritz-Carlton demonstrated customer excellence by going above and beyond to meet Ramona's needs, ensuring her loyalty through exceptional service.

Question 4

Relative market share is an example of a marketing metric.

Accepted Answer

Relative market share is a marketing metric used to measure a company's market share in relation to its competitors. It is calculated by dividing the company's market share by the market share of the largest competitor.

Question 5

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 measuring and evaluating the results of the marketing strategies and plans and taking corrective action to ensure that objectives are achieved.

Question 6

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

Accepted Answer

Depending on the organization's goals, industry, resources, and external environment, the marketing planning process can be customized and certain steps can be skipped or emphasized more than others. However, it is important to review the process periodically and adjust as necessary to ensure the company is still on track to achieve its objectives.

Question 7

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

Accepted Answer

Building a sustainable competitive advantage often involves a combination of multiple strategies, such as cost leadership, differentiation, innovation, customer service, and brand recognition. Focusing on a single strategy may not be enough to provide a strong and lasting competitive position in the market.

Question 8

iTunes software is often credited with 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 an advantage that is difficult for competitors to duplicate, and in this case, iTunes software enabled the iPod to be easier to use than its competitors, which gave Apple a competitive edge that was sustained over time.

Question 9

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 10

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 has a level of autonomy and decision-making authority within the broader company.

Question 11

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

Accepted Answer

The strategic planning process does not always proceed sequentially through the five steps. The steps are often iterative and may require revisiting previous steps as new information is gathered or circumstances change. Additionally, some organizations may use alternative models or frameworks for strategic planning that do not adhere to a strict sequential process.

Question 12

Product penetration is one of the four major growth strategies.

Accepted Answer

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

Question 13

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

Accepted Answer

Price should not be based solely on the cost of production or the competition, but on the value that the customer perceives for the product or service. This means understanding the benefits and features that are important to the customer and pricing accordingly. Ultimately, the customer's willingness to pay determines the value of the product or service.

Question 14

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 the Boston Consulting Group (BCG)portfolio analysis,the Sansa would be considered a dog.

Accepted Answer

According to the BCG portfolio analysis, a product that has low market share in a declining market would be classified as a "dog". Therefore, SanDisk's Sansa MP3 player line with low relative market share in a declining market would be considered a dog.

Question 15

Which of the following is not one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages?
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 for creating and delivering value and developing sustainable competitive advantages. The four strategies are: product excellence (offering high-quality products), operational excellence (achieving efficient and reliable operations), customer excellence (ensuring outstanding customer service), and locational excellence (having a good physical location or online presence).

Question 16

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

To develop a sustainable competitive advantage, a firm should identify significant things competitors cannot easily copy or imitate. This could be achieved by examining the firm's operations, customer relations or unique resources and capabilities. Simply copying the innovative features of other firms will not allow a firm to gain a sustainable competitive advantage as competitors can easily replicate these features. Buying up competitors or increasing marketing budgets may provide a temporary advantage, but it is not sustainable in the long run. Meeting with competitors to avoid direct competition is against the principles of competition law and does not provide a competitive advantage.

Question 17

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

Accepted Answer

Strong supplier relations facilitate timely and cost-effective delivery of goods, resulting in reduced costs and improved customer satisfaction. Efficient supply chains allow firms to optimize inventory management, reduce stockouts, and enhance delivery times, all of which contribute to operational excellence. Walmart has been successful in leveraging its supplier relationships and supply chain management to achieve significant cost savings, which it passes on to its customers in the form of low prices.

Question 18

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 19

Firms are typically more successful when they focus on opportunities that build on their strengths relative to those of their competition.

Accepted Answer

Focusing on opportunities that build on a firm's strengths can give them a competitive advantage over their rivals in the market, leading to greater success.

Question 20

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, the possibility that a recession might cut back on tourism in Hawaii would be considered an external threat, not a weakness. Weaknesses are internal factors that detract from the company's ability to achieve its objectives.

Quiz 2: Developing Marketing Strategies and a Marketing Plan