Marketing Management South Asian 14e Kotler & Jha Chapter 2 Quiz – Flashcards
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What is a tool for identifying ways to create more customer value?
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Value Chain
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The primary activities that create value are?
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1. Inbound logistics 2. Operations 3. Outbound logistics 4. Marketing 5. Service
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The support activities that create value are?
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1. Procurement 2. Technology development 3. Human Resource Management 4. Firm Infrastructure
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Procurement is a primary activity of creating value. T/F
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False, it's support.
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Sercvice is a support activity of creating value. T/F
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False, it's primary.
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Success of a firm depends only on how well the departments work. T/F
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False, it also depends on how well departments are coordinated to conduct core business processes.
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A firm needs to own and control most of the resources for its business. T/F
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False, it needs to own and nurture that make up essence of the business.
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Characteristics of core competency
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1. Competitive advantage and increases perceived customer benefits 2. Applicable to a wider variety of market 3. Difffcult to imitate
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How to maximise core competencies?
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1. Re defining the 'big idea' or business concept 2. Re shaping the scope of business 3. Re positioning the company's brand identitiy
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Holistic marketers achieve profitable growth by expanding customer share, building customer loyalty and capturing customer lifetime value. T/F
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True.
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What are the key management questions holistic marketers address?
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1. Value exploration-identifying opp. 2. Value Creation-Efficiently creates new value 3. Value Delivery-Delivers value efficiently
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What are the four organizational levels most companys have?
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1. Coroporate 2. Division 3. Business Unit 4. Product
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What are the three key areas marketers must give priority to?
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1. Investment Portfolio 2. Assessing Business' strength using growth rate and position 3. Establishing strategy
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Who creates stretegic plan for entire enterprise?
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Corporate HQ
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Who develops strategic plan for business unit?
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Business unit Duh!
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Business unit takes decision to allocate resources to each business unit. T/F
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False, Divisions will do that.
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Divisions allocate reosurce to divisions. T/F
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False, Corporate HQ does that.
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What does product level do?
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Develop marketing plan for its assigned product
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What is the central instrument for directing and co ordninating marketing effort?
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Marketing Plan So hard right?
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Tactical marketing plan lays out the target markets and the firm's value propositions. T/F
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False, Tactical MP specifice marketing tactics. Strategic MP does that.
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Service is not a marketing tactic. T/F
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False.
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What are the marketing tactics?
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Product features, promotion, merchandising, pricing, sales channels, service.
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Organizations do not share mission statement with consumers. T/F
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False.
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What does a clear mission statement provide?
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Purpose, Direction and Opportunity
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What are mission statement best?
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When they represent a 'Vision'
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Which ones are not good mission statement? 1. long 2. Has limited goals 3. Has all the goals 4. Stress all the policies 5. Take a short term view 6. They are elaborate, artistic and have multiple meaning 7. They define major competitive spheres
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1. Short 3. Should have limited goals 4. Stress major policies and valuess 5. Take a long term view 6. They are short, memorable and as meaningful as possible
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Market definitions describe business as a profit making process. T/F
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False. As a customer - satisfying process
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Products are permanent. Basic needs and consumer groups may change.- These are views of market definition. T/F
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False, Products are transient, needs and consumer groups stay forever.
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Target market definition focuses on new markets. T/F
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False, on current market.
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Strategic market definition focuses on strategies and goals.
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False, on current and potential market
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3 dimensions a business can define itself?
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1. Customer groups 2. Customer needs 3. Technology
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3 characteristics of SBUs
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1. Single/collected businesses that can be planned separately from rest of company 2. Own set of competitors 3. Has own manager responsible of strategic planning and profit performance, controls factors affecting profit
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Portfolio planning models like BCG Growth Share matrix are widely accepted now. T/F
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False, they are seen as oversimplified and subjective
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New methods of portfolio rely on?
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1. Shareholder value analysis 2. Whether Market Value of company is greater with an SBU or without an SBU
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What are the steps to assess growth opportunities?
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1. Planning New Business 2. Downsizing 3. Terminating Old Businesses
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Organization culture is highly flexible. T/F
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False, it is very hard to change.
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What is identifying opportunities to build or acquire businesses related to current business called?
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Integrative Opportunities
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What is identifying opportunities for growth in current businesses called?
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Intesive opportunities
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What is identifying opportunities to add attractive unrelated businesses called?
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Diversification opportunities
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When new product in current market is considered, what is the strategy called?
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Product Development Strategy
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When existing product in current market is considered, what is the strategy called?
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Market Penetration Strategy
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When new product in new market is considered, what is the strategy called?
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Diversification Strategy
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When current product in new market is considered, what is the strategy called?
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Market Development Strategy
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What is acquiring supplier company called?
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Backward Integration
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What is acquiring wholesaler or retailer called?
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Forward Integration
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What is acquiring competitor called?
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Horizontal Integration
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What is concentric strategy?
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When company looks for new products that have technological or marketing synergies with exisiting product lines
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What is horizontal Strategy for diversification?
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Search for unrelated new products for current customers
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If a company that makes CDs start to making laser disks, what is the strategy?
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Concentric Strategy/Diversification Growth
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When does Diversification Growth applied?
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When good opportunities exist outside the present business, provided that company has right mix of business strength and industry is attractive
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When a CD manufacturing company starts making CD cases, what strategy is it?
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Horizontal Strategy ( Don't confuse with Horizontal Integration)
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Organizations are flexible. T/F
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False, they're subject to inertia.
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What does problem detection method do?
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Asks consumers for suggestions
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What does Ideal method do?
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Asks consumers to imagine an ideal version of product
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What does consumption chain method do?
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Asks them to show their acquiring, using and disposing of the product.
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What is environmental threat?
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An unfavorable trend or development that lead to lower sales or profit
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Cost leadership would focus on?
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Lowest production and distribution cost
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Problem of cost leadership?
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Other firm will attack with even lower cost
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What does Differentiation focus on?
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Superior performance
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What does Focus focus on?
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Niche or small, narrow market segments then pursues either cost leadership or differentaion
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Why is operational effectiveness not a good option?
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Competitors can copy it quickly, contrary to using strategy
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What alliance is the credit card company in?
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Product/service Alliance
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What is product/service alliance?
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One company allows another to make its product, or both make it together
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Promotional Alliance?
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One company promotes the other's product
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When Disney agrees to make TVCs for McDonalds, what alliance is it?
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Promotional Alliance
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Logistics Alliance?
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When one company gives logistical service, like providing supply chain service
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Pricing Collaborations?
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One or more companies join in special pricing collaboration, e.g. hotel and rental car companies giving mutual discounts
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Hardware of success?
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Strategy, structure, systems
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Software of success?
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Style, skills, staff and shared values
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What does marketing research help marketers lear about?
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Customer's requirements, expectations, perceptions, satisfaction, and loyalty
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What are business processes?
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1. Market-sensing 2. New-offering realization 3. Customer acquisition 4. Customer Relationship Management 5. Fulfillment Management
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Activities in gathering and acting upon information?
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Market sensing
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Activities in building deeper understanding, relationship and offerings to customers?
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Customer Relationship management
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Activities in defining target market and prospecting for new customers?
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Customer Acquisition
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Researching, developing, launching new offerings?
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New offerings realization
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Receiving and approving orders, shipping goods on time, collecting payment?
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Fulfillment management
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Offering to individual customers?
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Customer relationship management
