mrkting 361chapter 2 review questions – Flashcards
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Strong supplier relations and efficient supply chains help firms such as Walmart achieve operational excellence.
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To build a sustainable competitive advantage, companies should focus on a single strategy
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It is not always necessary to go through all the steps in the marketing planning process.
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A mission statement describes the specific actions a firm will take to achieve its goals.
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iTunes software is often credited with the success of the Apple iPod MP3 player, because it made the iPod easier to use than competing players, and was difficult for competitors to duplicate. This is an example of a sustainable competitive advantage.
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STP refers to segmentation, testing, and promotion.
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The components of a SWOT analysis are strengths, weaknesses, opportunities, and tactics
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Firms are typically more successful when they focus on opportunities that build on their strengths relative to those of their competition.
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Duke's is a surfer themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Duke's, the possibility that the recession might cut back on tourism in Hawaii would be considered a weakness
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Price should be based on the value that the customer perceives
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Geraldo manages the electrical turbine engine division of GE. he makes most decisions independently, without consulting headquarters. Geraldo manages a strategic business unit
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The strategic planning process always proceeds sequentially through the 5 steps
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Issac is looking for ways to offer new goods and services to his existing customers. He is pursuing a market development strategy
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SanDisks MP3 player product line has a low relative market share. The MP3 player market is expected to decline over the next few years. In Boston Consulting Group portfolio analysis, the Sansa would be considered a dog
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The "implementation marketing mix" step of the strategic marketing planning process is part of the control phase
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Relative market share is an example of a marketing mix
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Product penetration is one of the 4 major growth strategies
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F (penetration, prod development, market development, diversification)
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If a firm wants to develop a sustainable competitive advantage, it should
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A. begin an aggressive campaign to buy up competitors. B. copy the innovative features of other firms that are attractive to customers. {C. examine its operations and customer relations to identify significant things competitors cannot easily copy.} D. increase its marketing budget so that it outspends its competitors. E. arrange to meet with competitors to discuss how to avoid direct competition.
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Which of the following is NOT one of the 4 overarching strategies to create and deliver value and to develop sustainable competitive advantage
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A. locational excellence B. customer excellence C. operational excellence D. product excellence {E. planning excellence}
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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 10-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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{A. customer excellence.} B. operational excellence. C. product excellence. D. promotional excellence. E. global excellence.
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Taking steps to encourage customer loyalty is the focus of developing the macro strategy of ___ excellence
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A. operational B. locational {C. customer} D. product E. service
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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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A. that operational excellence is an important macro strategy. {B. the lifetime value of customers.} C. that product excellence leads to loyal customers. D. the importance of making decisions based on short-term results. E. that as long as customers bring in some revenue, costs do not matter.
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Nordstrom, un upscale department store, has a well-known reputation for going the extra mile to service its customers. This reputation for excellent customer service will most likely result in
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A. product design excellence. B. mission statement satisfaction. C. sustainable price decreases. {D. a sustainable competitive advantage.} E. producer excellence.
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Firms achieve ___ through efficient procedures and excellent supply chain management
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A. customer excellence B. locational excellence C. customer loyalty D. value-based pricing {E. operational excellence}
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Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can
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A. persuade stores to refuse to carry competitors' products. B. use their power within the supply chain to force weaker firms to accept less favorable pricing. C. control prices and lock in margins. {D. create a sustainable competitive advantage.} E. justify charging higher prices than competitors do.
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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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{A. no single strategy is likely to be sufficient to build a sustainable competitive advantage.} B. a situation analysis does not accurately predict a firm's strengths. C. customer excellence cannot be achieved. D. product excellence is the only true source of a sustainable competitive advantage. E. innovation is pointless because competitors will develop copycat offerings.
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"Effective marketing doesn't just happen", it is
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A. promoted through STP analysis. B. possible only for seasoned marketing executives to achieve. {C. planned.} D. introduced through control phase SBUs. E. the result of competitor's failures.
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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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A. evaluate performance B. define the business mission C. perform situation analysis {D. implement marketing mix and resources} E. identify and evaluate opportunities
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When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged?
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{A. planning} B. implementation C. control D. segmentation E. metrics
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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(n) ________ for these companies.
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A. strategic marketing plan B. clear mission statement C. operational advantage {D. sustainable competitive advantage} E. diversification strategy
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Which of the following is least likely to provide a sustainable competitive advantage
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{A. lowering prices} B. having a well-known brand name C. achieving high levels of customer satisfaction D. using patented technology E. creating an efficient supply chain
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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(n) ________ that allows them to survive.
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A. advertising campaign B. plan to evaluate results {C. sustainable competitive advantage} D. set of performance metrics E. SWOT analysis
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As part of her company's SWOT analysis, Valerie is assessing the company's internal environment including
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A. competition. B. the economy. {C. strengths and weaknesses.} D. demographics. E. opportunities and threats.
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Sam is charged with assessing her company's external environment as part of a SWOT analysis. She is studying
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A. strengths and weaknesses. B. sales history. C. pension plan. D. product specifications. {E. opportunities and threats.}
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Manufacturers that 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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{A. weakness} B. opportunity C. threat D. strength E. metric
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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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A. weaknesses. {B. opportunities.} C. strengths. D. threats. E. strategic plans.
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In 2006, Ford Motor Company announced it would severely cut back its automobile production. For parts companies supplying Ford its parts, this represented a(n)
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A. weakness. B. opportunity. C. strength. {D. threat.} E. strategic plan.
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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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A. develop a business mission statement. B. choose the best target markets. C. reposition existing segments. {D. divide the marketplace into subgroups.} E. conduct a SWOT analysis.
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In 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was most likely trying to
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A. gain government subsidies. {B. attract a different market segment.} C. reduce its costs. D. save the environment. E. offset cost-based pricing pressure.
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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- to 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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A. mission statement. B. positioning. C. SBU. {D. target market segment.} E. 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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{A. target marketing.} B. situation analysis. C. diversification. D. positioning. E. market penetration estimation.
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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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A. product excellence B. targeting {C. positioning} D. segmentation E. customer excellence
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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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A. Targeting B. Market segmentation C. A sustainable competitive advantage {D. Positioning} E. A customer excellence strategy
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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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A. value-based promotions. B. market segmentation. {C. positioning strategy.} D. customer excellence strategy. E. target market.
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When positioning products relative to a competitors offerings, firms typically are most successful when they focus on opportunities
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{A. that build on their strengths relative to those of their competitors.} B. for diversification. C. in international markets. D. where value-based pricing can be ignored. E. where customer excellence can be substituted for product excellence.
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Many small businesses whose competitors are national franchise advertise, "we are locally owned" or "we have been here since 1951" this is a part of these firms
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A. business mission. B. market segmentation strategy. {C. positioning strategy.} D. customer excellence strategy. E. target market.
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When discussing the marketing planning process, STP stands for
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A. strategies, tactics, and plans. B. strategize, target, and promote. {C. segmentation, targeting, and positioning.} D. situation analysis, trend spotting, and planning. E. sustaining, trending, and positioning.
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Suppose your university made a sizable investment in its career services—additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students find jobs. This investment would enhance the university's _____________ in an attempt to create value for students and recent graduates.
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A. segmentation strategy B. place strategy C. locational excellence strategy D. diversification strategy {E. product value}
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The idea of value-based marketing requires firms to change a price that
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A. covers costs and generates a modest profit. B. includes the value of the effort the firm put into the product or service. {C. captures the value customers perceive that they are receiving.} D. prioritizes customer excellence above operational excellence. E. matches competitors' prices.
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E-books in addition to being an alternative product form, provide ___ value creation since they can be downloaded via the internet immediately when and where they are needed
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A. product {B. place} C. promotion D. price E. primary
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In value-based marketing, the promotion element of four P's communicate the ___ to customers through a variety of media
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A. mission statement B. operational excellence strategy {C. value proposition} D. relative market value E. target market definition
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When marketers use a variety of communication disciplines—advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing—in combination to communicate a value proposition to the customer, it is referred to as
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{A. integrated marketing communications.} B. multimedia marketing. C. diverse marketing communications. D. comprehensive promotion. E. managed marketing communications.
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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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A. product. B. price. {C. promotion.} D. place. E. cost-based measures.
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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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{A. evaluate performance} B. define the business mission C. perform situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities
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The first objective in the evaluate performance phase of the marketing planning process is to
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A. determine whether to raise or lower prices. B. adjust advertising allocations. C. find ways to cut costs. {D. review implementation programs and results using metrics.} E. consider changing the target market.
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As it pertains to the marketing plan, understanding
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{A. enables firms to make appropriate adjustments.} B. allows managers to demonstrate their effectiveness. C. offers insights into crafting an appropriate mission statement. D. should always be followed by eliminating underperforming SBUs. E. allows firms to better assess customer loyalty.
