Question 1

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 competitive advantage based on location is not easily duplicated because it often involves a physical presence that cannot be easily copied by competitors. For example, a restaurant located on a busy street corner or a retail store located in a popular shopping mall have a competitive advantage based on their location that cannot be duplicated by competitors in different locations.

Question 2

In a SWOT analysis,increasing gasoline prices would represent a potential __________ for manufacturers of electric cars.
A) weakness
B) threat
C) opportunity
D) operational advantage
E) locational advantage

Accepted Answer

Increasing gasoline prices would increase the demand for electric cars, providing an opportunity for electric car manufacturers to increase their market share and revenue. As more people switch from gasoline cars to electric cars due to rising fuel prices, electric car manufacturers could capitalize on this trend by expanding their production and increasing investment in research and development to improve their products.

Question 3

Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to retaining loyal customers by providing fast,courteous service in a clean,professional-looking environment.Gerald's has used this strategy for over 40 years,expanding to 15 outlets.Gerald's Tire Store has created a ___________ macro strategy to create and deliver value and to develop a sustainable competitive advantage.
A) supply chain excellence
B) locational excellence
C) product excellence
D) diversification excellence
E) customer excellence

Accepted Answer

Gerald's Tire Store's macro strategy is focused on customer excellence, which includes providing fast, courteous service and maintaining a professional-looking environment. This strategy is aimed at retaining loyal customers and creating a sustainable competitive advantage.

Question 4

When a pharmaceutical company develops a new medication,it typically applies for a patent in order to prevent competitors from developing copycat products for several years.Pharmaceutical companies apply for patents to establish
A) an operational excellence macro strategy.
B) a market penetration growth strategy.
C) a sustainable competitive advantage.
D) an efficient supply chain.
E) product efficiency.

Accepted Answer

Pharmaceutical companies apply for patents to establish a sustainable competitive advantage by preventing competitors from developing copycat products and gaining an edge in the market. This allows them to have a monopoly over the product for a specified period, which can be beneficial in terms of profitability and market share.

Question 5

Which of the following is the best way to build a sustainable competitive advantage using product excellence?
A) being the first to offer customers desired features, even if competitors can copy them easily
B) positioning the product using a clear, distinctive brand image
C) having the most features on each model
D) focusing on being cutting edge and continually eliminating older features that are still in use by customers
E) copying the market leader's features, but at a lower cost

Accepted Answer

Positioning the product using a clear, distinctive brand image helps in building a sustainable competitive advantage through product excellence because it differentiates the product in the minds of consumers, making it more memorable and preferred over competitors. This approach is less about the features that can be easily copied and more about creating a strong, lasting perception in the market.

Question 6

Most banks implement customer retention programs aimed at their best customers.They do this because they know that retaining customers usually results in
A) a product development growth strategy.
B) an operational advantage.
C) opportunities for diversification.
D) increased long-term profits.
E) more clearly defined market segments.

Accepted Answer

Retaining customers usually leads to increased long-term profits. By keeping their best customers satisfied, banks can reduce churn and ensure a steady stream of revenue over time. This is why they invest in customer retention programs that offer rewards and incentives for loyalty.

Question 7

Singapore Airlines seeks to differentiate itself from competing airlines,in part through innovative design of its airplane seats and in-flight entertainment systems.Through continuous innovation in these areas,Singapore Airlines is pursuing a(n)__________ macro strategy.
A) customer excellence
B) global excellence
C) locational excellence
D) operational excellence
E) product excellence

Accepted Answer

Singapore Airlines is pursuing a product excellence macro strategy through innovative design of airplane seats and in-flight entertainment systems.

Question 8

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 9

Sodexo is a corporation that manages school cafeterias,university dining halls,mess halls at military bases,concession stands at sports arenas,and other large-scale food service facilities.If Sodexo were to begin to sell individual frozen meals in supermarkets,it would be pursuing a __________ growth strategy.
A) product development
B) market development
C) market penetration
D) diversification
E) product proliferation

Accepted Answer

Sodexo selling individual frozen meals in supermarkets represents diversification, as it involves entering a new market with a new product line, different from their existing large-scale food service operations.

Question 10

Which of the following is the third step in the marketing planning process?
A) define the business mission
B) identify and evaluate opportunities
C) evaluate using a matrix
D) implement marketing mix and allocate resources
E) perform situation analysis

Accepted Answer

The third step in the marketing planning process is to identify and evaluate opportunities. This step involves looking for potential opportunities in the market, evaluating their feasibility and attractiveness, and selecting the most promising ones to pursue.

Question 11

3M involves its customers in the process of developing new products.In this way,it can benefit from current customers' insights and develop new products that will meet these customers' needs.3M is pursuing a __________ growth strategy.
A) diversification
B) market development
C) market penetration
D) product development
E) product penetration

Accepted Answer

3M is developing new products based on the insights of its current customers, which is an example of product development.

Question 12

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

"Place" refers to the distribution of a product or service, and in this case, the cellular service providers were working on making their service available in more locations, which is an example of creating value through place.

Question 13

Some universities offer online degree programs,competing with traditional colleges based on the convenience of taking online courses.These online programs are most likely pursuing which macro strategy?
A) customer excellence
B) locational excellence
C) operational excellence
D) product excellence
E) purchase excellence

Accepted Answer

The answer of Some universities offer online degree programs,competing with...

Question 14

Over the last few months,Juan and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products.Finally,they developed the products,prices,distribution,and promotion that should appeal to each of those target markets.In doing so,Juan has also identified what he believes is an advantage his competitors cannot match.Juan and his colleagues have been developing
A) a business mission statement.
B) a strategic vision.
C) team-building exercises.
D) a marketing strategy.
E) competitive assessments.

Accepted Answer

Juan and his colleagues have developed the products, prices, distribution, and promotion that should appeal to each of the identified target markets. This indicates that they have developed a marketing strategy, which includes considering the four Ps of marketing (product, price, place, and promotion).

Question 15

In mid-2010,Hewlett-Packard Company (HP)acquired Palm Computing Inc.,a manufacturer of personal devices and smartphones.Before deciding to acquire the company,strategic planners at HP spent time thinking about how Palm and HP would "fit" together,and how the acquisition might change HP's core goals and objectives.The strategic planners were engaged in the ____________ step of the marketing planning process.
A) perform situation analysis
B) implement marketing mix and allocate resources
C) identify and evaluate opportunities
D) evaluate performance
E) define the business mission

Accepted Answer

The strategic planners were defining the business mission by considering how the acquisition of Palm would align with HP's goals and objectives.

Question 16

After defining the business mission,what should a firm do next to develop a marketing plan?
A) conduct an STP analysis
B) perform a situation analysis
C) develop a positioning strategy
D) select a target market
E) implement the four Ps

Accepted Answer

After defining the business mission, the next step in developing a marketing plan is to perform a situation analysis. This involves analyzing the internal and external factors that may affect the business and its marketing efforts. Once the situation analysis is complete, the firm can then conduct an STP analysis, develop a positioning strategy, select a target market, and implement the four Ps. But without a thorough understanding of the current situation, it's difficult to make informed decisions about these other components of the marketing plan.

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

Value creation through place decisions involves making the product easily accessible and convenient for the customers to purchase. Placing the product in the right stores where customers are likely to buy it and ensuring that it is always available in stock are important factors that contribute to value creation for the customer. Options A and B can be helpful in attracting customers' attention, but they do not necessarily ensure accessibility or convenience. Option C, pricing differently at different stores, may create confusion for customers and does not necessarily add value. Option E focuses exclusively on one channel and may not cater to the diverse shopping preferences of customers.

Question 18

A former advertising campaign for GEICO Insurance used the slogan "So easy,even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website.This campaign was part of GEICO's
A) mission statement.
B) market segmentation plan.
C) product strategy.
D) customer excellence strategy.
E) positioning strategy.

Accepted Answer

The slogan "So easy, even a caveman could do it" was part of GEICO's positioning strategy. This slogan was used to position GEICO as an insurance company that makes buying insurance easy and accessible to everyone, even those who are not tech-savvy or familiar with insurance terminology. The campaign targeted a broad audience and aimed to differentiate GEICO from other insurance providers by emphasizing its ease of use.

Question 19

One example of a customer loyalty program is
A) a "frequent diner" card at a restaurant, offering a free appetizer for every $100 in food purchases.
B) a quantity discount offered for large purchases at an office supply store.
C) seasonal sales on top-selling items.
D) an "everyday low price" policy on all products at a grocery store.
E) an extensive customer service training program for new employees at a hair salon.

Accepted Answer

The "frequent diner" card rewards customers for their repeat business and encourages additional purchases to reach the reward threshold.

Question 20

Abercrombie & Fitch,a clothing retailer,includes a "SHARE" link on the product pages of its website.This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans)on Facebook or Twitter.Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers)will click the link,visit the page,and make purchases.This is an example of a __________ growth strategy.
A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development

Accepted Answer

This is an example of a market penetration strategy, where Abercrombie & Fitch aims to increase sales of its current products (e.g., a new style of jeans) in its existing markets through encouraging existing customers to share their products on social media. This strategy does not involve developing new products or entering new markets but rather focuses on increasing the market share of existing products.

Quiz 2: Developing Marketing Strategies and a Marketing Plan

A competitive advantage based on location is often sustainable because

In a SWOT analysis,increasing gasoline prices would represent a potential __________ for manufacturers of electric cars.

When a pharmaceutical company develops a new medication,it typically applies for a patent in order to prevent competitors from developing copycat products for several years.Pharmaceutical companies apply for patents to establish

Which of the following is the best way to build a sustainable competitive advantage using product excellence?

Most banks implement customer retention programs aimed at their best customers.They do this because they know that retaining customers usually results in

Singapore Airlines seeks to differentiate itself from competing airlines,in part through innovative design of its airplane seats and in-flight entertainment systems.Through continuous innovation in these areas,Singapore Airlines is pursuing a(n) __________ macro strategy.

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

Which of the following is the third step in the marketing planning process?

3M involves its customers in the process of developing new products.In this way,it can benefit from current customers' insights and develop new products that will meet these customers' needs.3M is pursuing a __________ growth strategy.

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.

Some universities offer online degree programs,competing with traditional colleges based on the convenience of taking online courses.These online programs are most likely pursuing which macro strategy?

After defining the business mission,what should a firm do next to develop a marketing plan?

Value creation through place decisions for a consumer product involves

A former advertising campaign for GEICO Insurance used the slogan "So easy,even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website.This campaign was part of GEICO's

One example of a customer loyalty program is