Marketing Exam 1 Chapter 2 – Flashcards
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Which of the following is one of the major considerations involved when a company develops its marketing strategy? A. Analysis of human resource policies. B. Determination of sustainable business practices. C. Review of all corporate standards. D. Identification of target markets. E. Summary of executive compensation.
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D. Identification of target markets Developing a marketing strategy involves a thoughtful coordination of efforts centering on identifying target markets, developing an appropriate marketing mix, and determining the bases for building and maintaining a sustainable competitive advantage.
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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 A. competitive focus. B. consumer franchise. C. market leadership. D. marketing strategy. E. competitive direction.
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D. Marketing Strategy To the casual observer, all three of these companies might appear to be marketing the same products, but closer analysis reveals that each of them targets a different market—with a completely different marketing mix, in order to gain a competitive advantage, which corresponds to a unique marketing strategy.
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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. A. customer B. operational C. sustainable D. product E. locational
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A. Customer Customer excellence is one of the macro strategies available to companies to develop a sustainable competitive advantage in the marketplace. Marketers like Singapore Airlines position themselves as leaders in customer service by continually investing in innovations to enhance the levels of service to their customers.
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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. A. locational B. operational C. product D. customer E. strategic
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B. Operational Firms can achieve a sustainable competitive advantage through their efficient operations, excellent supply chain management, and strong relationships with their suppliers.
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Companies must deliver more value and satisfaction to target consumers than its competitors to gain a A. competitive advantage. B. competitor analysis. C. competitive benchmark. D. competitor-centered advantage. E. competitive franchise.
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A. Competitive Advantage Delivering greater value to consumers is central to developing a competitive advantage. This requires that companies sustain their advantage over time, minimize competitive pressure, and boost profits in the long term to remain viable in a highly competitive marketplace.
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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) A. operational plan. B. situation analysis. C. marketing plan. D. mission statement. E. business plan.
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C. marketing plan A written marketing plan provides a reference point for evaluating whether or not the firm has met its objectives.
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Which of the following represents the three major phrases of a marketing plan? A. Assessment, action, adjustment B. Planning, implementation, control C. Strategy, execution, regulation D. Design, apply, manage E. Forecasting, application, management
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B. Planning, Implementation, and Control
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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? A. Defining the mission. B. Conducting a situation analysis. C. Identifying and evaluating opportunities. D. Implementing the marketing mix. E. Evaluating performance.
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A. Defining the mission The mission statement of an organization addresses two major issues: the type of business a company is in, and the overall objectives it hopes to achieve. Defining the mission is the first step in the process of developing the marketing plan.
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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? A. Defining the mission. B. Conducting a situation analysis. C. Identifying and evaluating opportunities. D. Implementing the marketing mix. E. Evaluating performance.
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A. Defining the mission The mission statement of an organization addresses two major issues: the type of business a company is in, and the overall objectives it hopes to achieve. Defining the mission is the first step in the process of developing the marketing plan.
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The SWOT analysis is typically conducted during which of the following steps in the marketing planning process? A. Defining the mission. B. Conducting a situation analysis. C. Identifying and evaluating opportunities. D, Implementing the marketing mix. E. Evaluating performance.
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B. Conducting a situation analysis. The second step in the marketing planning process, conducting a situation analysis, often incorporates the use of a SWOT 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 _____. A. opportunities and threats; strengths and weaknesses B. strengths and weaknesses; opinions and thoughts C. substantial winnings; opportunities and threats D. strengths and weaknesses; opportunities and threats E. strategic worldview; options and tactics
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D. Strengths and weaknesses; opportunities and threats A SWOT analysis involves an objective assessment of a firm's internal factors (strengths and weaknesses) as well as those external to the firm (opportunities and threats) to provide a snapshot of the firm's current situation.
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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. A. weaknesses B. strengths C. threats D. opportunities E. advantages
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A. weaknesses Negative attributes of a firm, such as a poor customer service and an unclean environment, are considered weaknesses of a firm.
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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). A. defining the mission B. conducting a situation analysis. C. identifying and evaluating opportunities D. implementing the marketing mix E. evaluating performance
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C. Identifying and evaluating opportunities The third step in the marketing planning process, following the situation analysis, involves identifying opportunities by using STP, (Segmentation, Targeting, and Positioning).
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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 A. a situation analysis. B. market segmentation. C. product placement. D. market development. E. diversification.
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B. Market Segmentation. Market Segmentation is the process of dividing the market into groups of consumers with different needs, wants and characteristics for the purpose of developing products and services geared specifically for them.
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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 A. targeting. B. market mixing. C. market positioning. D. market segmentation. E. value grouping.
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D. Market Segmentation
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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? A. Mission statement B. Product placement C. Market positioning D. A situation analysis E. A strategic business unit
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C. Market positioning Honda has implemented this market positioning by defining the marketing mix for the CR-Z so that target customers have a clear, distinctive, desirable understanding of what the product uniquely represents in comparison to competing hybrid models.
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Through which of the following marketing mix variables do companies capture value from consumers, resulting in the generation of revenue? A. Product B. Price C. Promotion D. People E. Place
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B. Price Price is the only marketing mix variable that generates revenue, therefore capturing value from consumers.
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When marketers make their offering available when and where the customer wants it, which of the following elements of the marketing mix is involved? A. Product B. Price C. Promotion D. People E. Place
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E. Place After a firm has created value through a product and/or service, it uses the marketing mix variable—place—to make the product or service readily accessible to the customer when and where he or she wants it.
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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? A. Product B. Price C. Promotion D. People E. Place
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C. Promotion Marketers communicate the value of their market offering, or the value proposition, through the fourth P—promotion.
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To evaluate the effectiveness or performance of a marketing strategy, firms typically use A. a mission statement. B. customer surveys. C. marketing metrics. D. brainstorming. E. a SWOT analysis.
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C. Marketing Metrics The final step in the planning process involves evaluating performance using marketing metrics such as sales, profits, gross margin, and return on investment in order to compare a firm's performance over time to that of competing firms.
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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 also to predict the future. A. benchmark B. target C. metric D. segment E. scale
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C. metric Marketing metrics make it possible to compare results across regions, strategic business units (SBUs), product lines, and time periods. By using metrics, the firm can determine why it achieved or did not achieve its performance goals.
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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? A. Four Ps (price, product, promotion, place) B. SWOT analysis (strengths, weaknesses, threats, opportunities) C. STP (segmentation, targeting, positioning) D. GM (gross margin) E. SBU (strategic business unit)
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D. GM (gross margin) The final step in the planning process involves evaluating performance using marketing metrics, such as sales, gross margin, and return on investment in order to compare a firm's performance over time to that of competing firms.
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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 A. product development. B. demarketing. C. diversification. D. portfolio analysis. E. franchise reevaluation.
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D. Portfolio Analysis GM conducted a portfolio analysis of the various divisions of the company in order to identify small business units that it wanted to continue to invest in. as well as those it wanted to eliminate from its portfolio. Saturn and Pontiac were two divisions it decided to divest itself of.
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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 A. segments. B. strategic business units. C. metrics. D. portfolios. E. marketing mixes.
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B. strategic business units Each division of Goodyear, which is organized by region, comprises a strategic business unit of the company , or SBU.
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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. A. Stars B. Cash Cows C. Clunkers D. Question Marks E. Dogs
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E. Dogs By Definition, small-business unit in low-growth markets with relatively low market shares are called Dogs according to the BCG Product portfolio analysis.
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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? A. Cash Cows B. Stars C. Question Marks D. Dogs E. Leaders
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A. Cash Cows Cash cows have already received heavy investments to develop their high market share. Thus, they typically have excess resources that can be spun off to other products.
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Which of the following is one of the four major growth strategies marketers typically utilize? A. Portfolio analysis B. Demarketing C. Product development D. Market leadership E. Product proliferation
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C. Product Development Firms consider pursuing various market segments as part of their overall growth strategies, which, according to the market/product and services strategies matrix, are market penetration, product development, market development, and diversification.
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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? A. Product development B. Market development C. Market penetration D. Diversification E. Demarketing
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C. Market Penetration According to the market/product and services strategies matrix, by definition, firms that exploit growth opportunities for current products in current markets are engaged in market penetration. Market penetration typically involves increasing advertising expenditures and sales promotion efforts.
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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? A. Product development B. Market development C. Market penetration D. Diversification E. Demarketing
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A. Product Development According to the market/product and services strategies matrix, by definition, firms that exploit growth opportunities for new products in current markets are engaged in product development. Firms commonly offer new products to existing customers and markets in order to grow.
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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? A. Product development B. Market development C. Market penetration D. Diversification E. Demarketing
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D. Diversification In a diversification strategy, a firm introduces a new product or service to a market segment that currently is not served. Diversification opportunities may be either related or unrelated.
