BUS 346 Ch 2 – Flashcards

Marketing strategy

Sustainable competitive advantage

Customer excellence

Operational excellence

Product excellence

Locational excellence

Marketing plan phases

Planning phase

SWOT analysis (situational)

Implementation Phase

Segmentation

Targeting

Positioning

Control Phase

Metric

Portfolio Analysis

Market Penetration Strategy

Market Development Strategy

Product Development Strategy

Diversification Strategy

related diversification

unrelated diversification

SBU

market share

relative market share

market growth rate

Stars

Cash Cows

Question marks

Dogs

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy. Select one: a. market penetration b. diversification c. product development d. market development e. product proliferation

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates Select one: a. weaknesses. b. threats. c. strengths. d. strategic plans. e. opportunities.

Internal strengths

Internal weaknesses

External Opportunities

External Threats

Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed aNo ________ that allows them to survive. Select one: a. advertising campaign b. plan to evaluate results c. sustainable competitive advantage d. SWOT analysis e. set of performance metrics

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. Select one: a. market penetration b. product development c. market development d. product proliferation e. diversification

Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the __________ step of the marketing planning process. Select one: a. situation analysis b. identify and evaluate opportunities c. implement marketing mix and resources d. define the business mission e. evaluate performance

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat? Select one: a. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. b. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. c. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices. d. Recent consumer studies have indicated that Chinese consumers prefer American cars. e. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.

Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms' Select one: a. target market. b. market segmentation strategy. c. business mission. d. customer excellence strategy. e. positioning strategy.

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. The manager will probably next review the company's Select one: a. brand awareness study, to assess national levels of awareness. b. results for other product lines, to see how important diet products are to the firm. c. implementation programs, to see if the promotion was handled consistently in the different stores. d. analysis of national trends in vitamins and herbal supplements, to help predict future sales. e. financial statements, to investigate current and past profits.

The first objective in the evaluate performance phase of the marketing planning process is to Select one: a. find ways to cut costs. b. adjust advertising allocations. c. determine whether to raise or lower prices. d. consider changing the target market. e. review implementation programs and results using metrics.

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business? Select one: a. Nike will probably have to invest heavily in the athletic shoe business, including extensive promotions and new production facilities. b. Nike should invest in the athletic shoe market only if it helps to boost the sales of other products in fast-growing markets. c. Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it is likely to receive. d. Nike's athletic shoe business still requires some investment but is likely to produce excess resources that can be invested in other divisions of the company. e. Nike should consider exiting the athletic shoe market.

AN ___________ is a group of products that consumers may use together or perceive as similar in some way. Select one: a. promotional service b. SBU c. market segment d. product line e. STP

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 Select one: a. positioning strategy. b. product strategy. c. mission statement. d. market segmentation plan. e. customer excellence strategy.

The idea of value-based marketing requires firms to charge a price that Select one: a. prioritizes customer excellence above operational excellence. b. captures the value customers perceive that they are receiving. c. matches competitors' prices. d. covers costs and generates a modest profit. e. includes the value of the effort the firm put into the product or service.

Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through Select one: a. promotion. b. place. c. product. d. price. e. cost-based measures.

Which of the following is LEAST likely to provide a sustainable competitive advantage? Select one: a. achieving high levels of customer satisfaction b. creating an efficient supply chain c. using patented technology d. having a well-known brand name e. lowering prices