Chapter 2 - Practice Questions - Flashcards

question

Although Starbucks, Dunkin' Donuts, and McDonald's all strive to provide a good cup of coffee and pastries to their respective target markets, the difference in who they target, how they design their marketing mix, and what they choose as the basis of building their competitive advantage is directly related to their own

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marketing strategy.

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For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25-50-year-old, educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary

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target market segment.

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

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opportunity

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Most banks now have customer relationship software which, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ___________________ growth strategy.

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market penetration

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To determine how attractive a particular market is, using the BCG portfolio analysis, __________________ is established as one axis

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market growth rate

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If a price is set too high, it will not generate much ________; if it is set too low, it may result in ________.

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volume; lower margins and profits

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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

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implementation programs, to see if the promotion was handled consistently in the different stores.

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Taking steps to encourage customer loyalty is one way to

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sustain an advantage over competitors.

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Value creation through place decisions for a consumer product involves

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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.

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In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbro be categorized?

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Threat

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Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates ________ excellence.

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operational

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Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from two to five percent over last year's sales at Stores 1 and 2 but fell two percent at Store 3. Based on this information, how should Marcia reward (or punish) her store managers?

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She should seek more information about why the stores had different results before making a decision.

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The first objective in the evaluate performance phase of the marketing planning process is to

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review implementation programs and results using metrics.

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When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities

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that build on their strengths relative to those of their competitors.

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A competitive advantage based on location is often sustainable because

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it is not easily duplicated.

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For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates

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opportunities

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Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to

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divide the marketplace into subgroups

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Which of the following is LEAST likely to provide a sustainable competitive advantage?

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lowering prices

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Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity?

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Recent consumer studies have indicated that Chinese consumers prefer American cars.

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________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

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Market positioning

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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

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Positioning Strategy

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In 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was probably trying to

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attract a different market segment

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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'

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positioning strategy

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Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in?

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implement marketing mix and resources

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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

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Customer Excellence

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Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed a ________ that allows them to survive.

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sustainable competitive advantage

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Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to 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 ___________________ to create and deliver value and to develop a sustainable competitive advantage.

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macro, or overarching, strategy

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Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat?

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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.

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In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a __________ strategy.

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product development

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__________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of what a product does or represents in comparison with competing products.

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Positioning

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LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If endorsements by these athletes create a clear understanding among consumers of the companies' products in comparison to competing products, they can help with the firm's ________________ strategy.

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Segmentation

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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.

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Placed

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Imagine that you are in a convenience store choosing your favorite comfort food instead of being in a classroom taking this test. You might notice the packaging, colors, labels, even the fonts used on labels. All of these efforts are part of the marketer's

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Positioning Strategy

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Firms achieve ___________ through efficient procedures and excellent supply chain management.

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Operational Excellence

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

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Positioning the Product

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Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a quick-response system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established

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a sustainable competitive advantage

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After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in

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target marketing

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In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called

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cash cows

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During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning?

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implementation phase

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The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a __________ for these companies.

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sustainable competitive advantage

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A product that is in a high-growth market but has a low market share would be classified as ________ on the BCG matrix.

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question mark

question

When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent?

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Product development

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Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy?

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3M Corporation, implementing new software to improve communication with its suppliers.

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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.

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diversification

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Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will likely involve determining

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how to allocate resources among his four stores.

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If a firm wants to develop a sustainable competitive advantage, it should

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examine its operations and customer relations to identify significant things competitors cannot easily copy.

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Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals

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enables firms to make appropriate adjustments.

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Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a __________________ growth strategy.

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market development

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Maryam called her auto insurance agent to renew her policy. The agent told her about new types of insurance that are now available--to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________ growth strategy.

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product development

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When discussing the marketing planning process, STP stands for

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segmentation, targeting, and positioning.

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In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing, Inc., a manufacturer of personal devices and smart phones. 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.

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define the business mission

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Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize

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the lifetime value of customers.

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Coca-Cola sells two zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a masculine looking can for Coke Zero, with bold red lettering on a black background. This specially designed can is an example of

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positioning

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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

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a sustainable competitive advantage

question

Which of the following is NOT one of the four major growth strategies marketers typically use?

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segment development

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The idea of value-based marketing requires firms to charge a price that

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captures the value customers perceive that they are receiving

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Allen is in the marketing department of a mid-sized firm that develops and sells communications systems. He is proud of the Human Resources area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an operational advantage for the firm because of all of the following EXCEPT

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the company provides products with a high perceived value

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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.

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evaluate performance

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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

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promotion.

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Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a

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star

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One example of a customer loyalty program is

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a frequent diner card at a restaurant, offering a free appetizer for every $100 in food purchases.

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A ___________ is a group of products that consumers may use together or perceive as similar in some way.

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product line

question

Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates ________ excellence

answer

operational

question

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is NOT one of these factors?

answer

ethical

question

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.

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market penetration

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

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Locational excellence

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The process of dividing the market into groups of customers with different needs, wants, or characteristics is called

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market segmentation

question

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?

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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.

question

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

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opportunity

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When pursuing a market development strategy, expanding into international markets is generally

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more risky than expansion in domestic markets.

question

Anita has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Anita's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Anita's attitude toward the salon is an example of

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customer loyalty.

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For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that

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no single strategy is likely to be sufficient to build a sustainable competitive advantage.

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Many of today's college graduates will make their living providing goods and services to baby boomers, the large group of Americans born in the period after World War II. Baby boomers are a _________________ market segment.

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demographic

question

Heather has been assessing a number of her firm's products using, the Boston Consulting Group approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine:

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the product's relative market share.

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Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through

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customer excellence.

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

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identify opportunities

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Manufacturers who use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a(n) __________ in a SWOT analysis.

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weakness

question

In most companies, portfolio management is typically done at the SBU or ___________ level of the firm.

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Product Line

question

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

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Sustainable Competitive Advantage

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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

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Evaluate Performance

question

Delta Airlines is among the companies experimenting with selling products and services on its Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta's website--users can book a trip in Delta's Ticket Agent application without ever leaving Facebook. Which element of the marketing mix does this represent?

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Place and Value Delivery

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Sustainable Competitive Advantage

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an advantage over the competition that is not easily copied and can be maintained over a long period of time.

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A competitive advantage acts like a wall that the firm has built around its position in a market. This wall makes it hard for outside competitors to contact customers inside—otherwise known as .........

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the marketer's target market

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Establishing a sustainable competitive advantage is key to

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long-term financial performance.

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Firms that offer good customer service must instill its importance in their employees over a long period of time so that it becomes part of the _____

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organizational culture

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Loyalty is more than simply preferring to purchase from one firm instead of another. It means that....

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customers are reluctant to patronize competitive firms

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Viewing customers with a _____ perspective, rather than on a __________ basis, is key to modern customer retention programs

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lifetime value; transaction-by-transaction

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One way to build customer loyalty is to ___

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provide your target market something unique

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Another method of achieving customer loyalty creates an emotional attachment through _____

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loyalty programs; firms can identify members through the loyalty card/membership information when he/she makes a purchase.

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The firm first ......... then, determines which of those segments it should _____, and finally decides how it should .......

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1. divides the marketplace into subgroups or SEGMENTS 2. TARGET 3. POSITION its products and services to best meet the needs of those chosen targets

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Market segment

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consisting of consumers who respond similarly to a firm's marketing efforts (gender, age, income, interests)

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Target marketing

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evaluates each segment's attractiveness and decides which to pursue

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BCG matrix

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- Boston Consulting Group; what markets you should get into ( measures market share and industry growth) - Avoid the dog, put money from the cash cow into the question mark to hopefully be a star in the future

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The metrics used to evaluate a firm vary depending on

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(1) the level of the organization at which the decision is made (2) the resources the manager controls

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Portfolio analysis is typically performed at the _____ or product line level of the firm

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strategic business unit (SBU)

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Instead of assigning allocation decisions to the top levels of the organization, many firms start at lower management levels and employ ....

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checks and balances to force managers at each level of the organizational hierarchy to negotiate with those above and below them to reach their final decisions.

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Strategic Planning Is NOT..

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sequential

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Which growth strategy is being used when a firm introduces a new product or service to a market segment that is currently not served by the firm?

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Diversification

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In the marketing plan, which of the following is a step in the implementation phase?

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Identify opportunities

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Firms achieve operational excellence through ___

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Their efficient supply chain management system

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Three phases of a strategic plan

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planning, implementing, controlling

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What does STP stand for when evaluating opportunities?

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Segmentation Targeting Positioning

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A ______ is a written document that includes the current marketing situation, specified objectives and strategies, action programs, and projected income statements.

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Marketing Plan

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In Step 1 of the planning phase, a firm:

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Defines the mission and vision of the business

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A _______ employs the existing marketing mix and focuses the firm's efforts on existing customer.

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Market penetration strategy

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What excellence is having a good physical location and internet presence?

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Locational excellence

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A ______________ is an advantage of the competition that is not easily copied and can be maintained over a long period of time.

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Sustainable competitive advantages

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Promotion and Value Communication have five words that describe it EXECPT Which one of these?

answer

Music

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Identifying opportunities includes ____________ in the ____________ phase.

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defining the mission and objectives of the business; planning

question

14) Efficiency, excellent supply chain management and a strong relationship with suppliers are strong attributes that make up what Macro Strategy?

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Operational Excellence

question

What does a marketing strategy identify?

answer

- A related marketing mix - A firm's target markets - The bases on which the firm plans to build a sustainable competitive advantage

question

Which of the following is NOT one of the four macro strategies that help develop a sustainable competitive advantage?

answer

Employee Excellence

question

Mary always goes to the same nail salon, Jenny's Nail Salon. She knows all the people that work there and has built a connection with them. There's nail places closer to her house, but she choses to go to Jenny's. Jenny's Nail Salon has achieved

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Customer Excellence

question

Which of the following questions is not in SWOT analysis?

answer

Technological

question

How does a company sustain a competitive advantage?

answer

Customer Excellence Locational Excellence Operational Excellence All of the above

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21. Which is NOT a way a firm tries to achieve operational excellence for a sustainable competitive advantage?

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Having a strong brand Unique Merchandise

question

Which of the following is one of the major considerations involved when a company develops its marketing strategy?

answer

Identification of target markets

question

Singapore Airlines is recognized as an industry leader for exemplary customer service and has continued to add new ways to serve customers better than competitors. In doing so, it has focused on sustaining its competitive advantage through _____ excellence.

answer

customer

question

Companies must deliver more value and satisfaction to target consumers than their competitors to gain a

answer

competitive advantage.

question

Which of the following represents the three major phases of a marketing plan?

answer

Planning, implementation, and control

question

After a firm has conducted a SWOT analysis, it would typically progress to the next step of marketing planning, which is _______ and involves using STP (segmentation, targeting, and positioning).

answer

identifying and evaluating opportunities

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When companies like Toyota develop different models of vehicles to meet the unique wants and needs of different groups of consumers, it is involved in

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market segmentation.

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Marriott Hotels recognizes that there are different groups of travelers with different needs, wants, and characteristics in their choice of lodging. The process of dividing Marriott's market into these various groups is

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market segmentation.

question

Honda developed its new CR-Z hybrid model for a distinct segment of consumers as a fun, green, sporty hybrid that stands out as being uniquely different from other hybrid models. This is an example of which of the following?

answer

market positioning

question

Through which of the following marketing mix variables do companies capture value from consumers, resulting in the generation of revenue?

answer

Price

question

When marketers make their offering available when and where the customer wants it, which of the following elements of the marketing mix is involved?

answer

Place

question

Marketers communicate the value proposition to their customers through a variety of media, such as television and the Internet. Which of the 4 Ps does this represent?

answer

promotional strategy

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To evaluate the effectiveness or performance of a marketing strategy, firms typically use

answer

Marketing metrics

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A _______ is a measuring system that quantifies a trend, dynamic, or characteristic and is used by marketers to help explain why things happened and to predict the future.

answer

metric

question

Which of the following is a marketing metric that might be used to evaluate the performance of a company's implementation of its marketing plan?

answer

GM (gross margin)

question

When managers at General Motors evaluated all the firms' various divisions and then chose to close both the Saturn and Pontiac divisions, it was involved in

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portfolio analysis.

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The Goodyear Tire Company is organized by regions: North America, Europe, Middle East and Africa, Latin America, and Asia Pacific. These divisions of Goodyear are called

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strategic business units.

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What two metrics are used in the BCG portfolio analysis to evaluate the various products of a firm?

answer

Relative market share and market growth rate

question

General Motors determined that it would close down divisions that were in low-growth markets that had relatively low market shares. According to the BCG Product Portfolio Analysis, GM was identifying divisions in the _____ category for closure.

answer

Dogs

question

According to the BCG matrix, which type of product typically has excess resources, which can be used to support other products that need additional resources?

answer

Cash cows

question

Which of the following is one of the four major growth strategies marketers typically use?

answer

product development

question

In an attempt to increase sales during a lagging economy, Macy's has increased its advertising and sales promotions for its current products to stimulate sales in its current markets. Which of the following growth strategies is Macy's employing?

answer

Market penetration

question

Starbucks introduced Via, its brand of instant coffee, to exploit the growth opportunities for new products in current markets. Chief Executive Howard Schultz called Starbucks' Via Ready Brew "perhaps the biggest opportunity" in company history as he prepared for the instant coffee product's North American rollout. This is an example of:

answer

product development

question

A growth strategy that offers a new product or service to a firm's current target market.

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Diversification

question

Which of the following is one of the major considerations involved when a company develops its marketing strategy? -Analysis of human resource policies. -Determination of sustainable business practices. -Review of all corporate standards. -Identification of target markets. -Summary of executive compensation.

answer

identification of target markets

question

Although Starbucks, Dunkin' Donuts, and McDonald's all strive to provide a good cup of coffee and pastries to their respective target markets, the difference in who they target, how they design their marketing mix, and what they choose as the basis of building their competitive advantage is directly related to their own _______.

answer

market strategy

question

Singapore Airlines is recognized as an industry leader for exemplary customer service, and has continued to add new ways to serve customers better than competitors. In doing so, it has focused on sustaining its competitive advantage through _____ excellence.

answer

customer

question

When marketers strive to get their customers the merchandise they want, when they want it, in the required quantities, and at a lower delivered cost than that of their competitors, they are hoping to achieve a sustainable competitive advantage through _______ excellence.

answer

operational

question

Companies must deliver more value and satisfaction to target consumers than its competitors to gain a

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competitive advantage

question

A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected income statements is referred to as a(n)

answer

marketing plan

question

When a firm considers its overall objectives and considers the type of business it is in, it is engaged in which of the following steps of the marketing planning process?

answer

defining the mission

question

The SWOT analysis is typically conducted during which of the following steps in the marketing planning process?

answer

conducting a situation analysis

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A SWOT analysis involves an analysis of factors internal to the company, which include _____ as well as factors outside the company, which include _____.

answer

strengths and weaknesses; opportunities and threats

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A local coffee shop is known for poor customer service and an unclean, dirty environment. These factors would be classified as _____ in a SWOT analysis.

answer

weaknesses

question

After a firm has conducted a SWOT analysis, it would typically progress to the next step of marketing planning which is _______ and involves using STP (segmentation, targeting, and positioning).

answer

identifying and evaluating opportunities

question

Toothpaste manufacturers understand that consumers have different needs when it comes to toothpaste (i.e., teeth whitening, sensitive teeth, breath freshening, and tartar control). Knowing that, they have divided the market based on these various needs and developed toothpaste to accommodate each group. By doing so, these toothpaste manufacturers are involved in

answer

market segmentation

question

Honda developed its new CR-Z hybrid model to a distinct segment of consumers as a fun, green, sporty hybrid that stands out as being uniquely different from other hybrid models. This is an example of which of the following?

answer

market positioning

question

A _______ is a measuring system that quantifies a trend, dynamic, or characteristic and is used by marketers to help explain why things happened and also to predict the future.

answer

metric

question

General Motors determined that it would close down divisions that were in low-growth markets that had relatively low market shares. According to the BCG product portfolio analysis, GM was identifying divisions in the _____ category for closure.

answer

dogs

question

According to the BCG matrix, which type of product typically has excess resources which can be used to support other products that need additional resources?

answer

cash cows

question

Which of the following is one of the four major growth strategies marketers typically utilize?

answer

product development

question

In an attempt to increase sales during a lagging economy, Macy's has increased its advertising and sales promotions for its current products to stimulate sales in its current markets. Which growth strategy is Macy's employing?

answer

market penetration

question

Starbucks recently introduced Via, its brand of instant coffee, to exploit the growth opportunities for new products in current markets. As he prepared for the instant coffee product's North American rollout, Chief Executive Howard Schultz called Starbucks Corporation's Via Ready Brew "perhaps the biggest opportunity" in company history. This is an example of which growth strategy?

answer

product development

question

A firm's marketing strategy identifies a firm's target market(s), its four Ps, and _______.

answer

a method of obtaining a sustainable competitive advantage

question

All of the following are macro strategies to develop customer value and build sustainable competitive advantages EXCEPT ________

answer

Market position excellence

question

Which of the following is NOT true of a sustainable competitive advantage?

answer

It should be easy for competitors to match.

question

Which of the following would be a factor in providing operational excellence?

answer

Strong Supply chain management

question

Many firms are developing websites and entering into e-commerce. This is to improve their _______ .excellence.

answer

Location

question

The three major phases of a marketing plan are _______.

answer

Planning, implementation, and control

question

Starbucks aims to inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time." This reflects Starbuck's _______.

answer

Mission statement

question

Performing a situation analysis (SWOT) occurs at which phase of a marketing plan?

answer

Planning

question

Which of the following would NOT occur during the implementation phase of a marketing plan?

answer

Identify the business mission

question

A firm's reputation for high-quality products is a (n) ______ for the firm.

answer

Strength

question

Strengths and weaknesses are _______ factors to a firm while opportunities and threats are _______

answer

Internal External

question

Your company markets baby products, but the birthrate has been steadily dropping for the past 10 years. This represents a(n) _________ in a SWOT analysis

answer

Threat.

question

One key _________ for many firms is the economic development occurring in many nations which allows for global expansion into new markets

answer

Opportunity

question

Marriott Hotels recognizes that there are different groups of travelers with different needs, wants and characteristics in their choice of lodging. The process of dividing Marriott's market into these groups is ______.

answer

Market Segmentation

question

Most firms cannot cater to the needs of everyone. This is why it is important that marketers engage in ________ to find groups of consumers with different needs and wants they might serve

answer

Market Segmentation

question

Marriott developed Courtyard Inns specifically for the needs of business travelers. By pursuing this segment with a market offering, Marriott was engaged in _______.

answer

Target Marketing

question

Many consumers understand and perceive that Lexus automobiles are of high quality and offer superior service. This is Lexus' market ______.

answer

Position

question

In identifying marketing opportunities, which is the correct order of the steps a firm undertakes?

answer

Segment, target, position

question

In the expanding e-reader market, consumers can access books online using products like Amazon's Kindle and Apple's iPad. This easy access to books represents _______ value

answer

Place

question

In setting a product's price, marketers must be careful not to set it too high, or too low. Ultimately, price is directly related to the ________; a customer has to feel he is getting a good deal if a company wants to win him over.

answer

Customer perceived value

question

Which element of the marketing mix relates to how companies tell consumers about their products and define their image in the marketplace?

answer

Promotion

question

In delivering value to customers, which of the four Ps is the most important?

answer

All of the 4 Ps are of equal importance.

question

A firm wanting to measure sales growth compares monthly sales for a given month over the past several years. This type of comparison is referred to as a _______ metric

answer

Relative.

question

Goodyear is organized by regions: North America, Europe, Middle East and Africa, Latin America and Asia Pacific. These divisions of Goodyear are called _______.

answer

Strategic business unit

question

The BCG matrix uses two axes to classify product lines and SBUs. One axis is market growth rate and the other axis is _______.

answer

Relative Market Share

question

In the BCG matrix, which types of products typically require heavy resource investment to fuel their rapid growth?

answer

Stars

question

Which type of product in the BCG matrix typically has excess resources which can be used to support other products that need additional resources?

answer

Cash cows

question

Market penetration and product development strategies are both focused on a firm's _______ markets.

answer

Current

question

A retail chain is increasing its advertising and offering discounts to increase sales among its current customers. This represents a _____

answer

Market penatration

question

McDonald's has found that when it enters new foreign markets, the company can still sell some of the same menu items it offers in the United States. So, to some extent, McDonald's is able to use a ______ strategy.

answer

Market Development

question

MTV is constantly adding new shows and programming to increase the amount of time its current viewers spend watching the channel. In doing this, MTV is using a _______ strategy.

answer

Product developement

question

In 1999 Coca-Cola developed Dasani bottled water to reach a new market for the company—bottled water drinkers. In doing this Coca-Cola pursued a _______ strategy

answer

diversification

question

Staples offers quality customer service and its own brand of products to establish a ___________.

answer

Competitive advantaget

question

Ethnographic research takes place ________.

answer

By Human observation

question

The Staples Mailmate is an example of how Staples offers value by providing consumers with _________.

answer

Innovative products

question

A bundle pricing strategy means that the cost is lower when you buy _________.

answer

More items at once

question

Which is not one of Staples's promotional efforts?

answer

The lowest price of any competitor

question

When Staples plans its store layout and designs its website, it wants to offer its customers __________.

answer

An easy experience

question

Marketers communicate the value proposition to their customers through a variety of media, such as television and the Internet. Which of the four Ps does this represent?

answer

Promotion

question

According to the BCG matrix, which type of product typically has excess resources that can be used to support other products that need additional resources?

answer

Cash cows

question

To evaluate the effectiveness or performance of a marketing strategy, firms typically use metric

answer

marketing metrics.

question

Starbucks recently introduced Via, its brand of instant coffee, to exploit the growth opportunities for new products in current markets. As he prepared for the instant-coffee product's North American rollout, Chief Executive Howard Schultz called Starbucks Corporation's Via Ready Brew "perhaps the biggest opportunity" in company history. This is an example of which growth strategy?

answer

Product development

question

A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected income statements is referred to as a(n

answer

Marketing plan

question

Which of the following represents the three major phrases of a marketing plan?m

answer

Planning, Implementation, and Control

question

To evaluate the effectiveness or performance of a marketing strategy, firms typically us

answer

Marketing Metrics

question

integrative conflict resolution

answer

an approach to dealing with conflict in both parties to find an alternative that meets the needs of both

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