Exam 2: Planning, Implementing, and Evaluating Marketing Strategies

The Boston Consulting Group approach is based on a philosophy that a product's market growth rate and its market share relative to competition should be helpful in determining its marketing strategy.

Stars are profitable products that usually generate more cash than is required to maintain share.

Which of the following statements is incorrect?

A sustainable competitive advantage is one that cannot be copied by a firm's competitors.

Acme Corporation saw an opportunity in the electric car industry. The company had studied major electric car brands such as the Chevrolet Volt and the Nissan Leaf. It believed it could avoid many of the challenges these companies had encountered with a new technology that would reduce costs. Acme also knew from watching competitors that it would have to work hard to convince skeptics that the electric car was a viable and dependable method to get around. By avoiding these mistakes and using its technology, Acme quickly gained market share once it began launching its vehicles. What type of advantage did Acme have?

Buddy's Smokin' Bar-B-Que restaurant opened in 2014 and struggled to build a customer base for lunch, dinner, or event catering options. When the owners were planning the restaurant, they had projected they would sell 60 to 80 lunches daily with an average lunch price of $8.00. They believed that dinner business would be higher and that they would also benefit from their approved liquor license, which could generate between 100 and 120 plates per day at $12 per customer. However, the actual daily lunch and dinner totals were much less and the owners were barely breaking even. They wondered if they should close the business. However, Buddy's restaurant began an aggressive marketing effort, offered lunch and dinner specials, and promoted the restaurant as a family-friendly place where everyone could enjoy fresh, smoked bar-b-que meats. As a result of their marketing efforts, the restaurant is selling out of its product almost daily and has built a takeout business as well. They are selling 100 lunches daily with an average price of $10 and approximately 200 dinner plates at $15. The restaurant is pleased with the revenue stream they're generating from the restaurant and are considering opening a second location or adding space to accommodate more customers at the existing location. Using the data regarding number of plates sold and the average order amount generated, what kind of analysis can the owners of the restaurant perform to assist them in understanding their business opportunities?

A strategic window is

When the right combination of circumstances and timing permits an organization to take action to reach a particular target market, a core competency exists.

Cash cows are market leaders that are growing fast, with substantial reported profits.

The American Eagle chain of retail stores has a reputation as one of the "coolest" brands according to Teen Research Unlimited. Their stores feature quality merchandise, the latest trends, must-have styles, and the hottest deals for its shoppers. The retail stores are typically found in shopping malls across the country and are comfortable places to shop-featuring interesting displays, pop music, and bright lights. American Eagle's selection of denim is the most popular product appealing to both genders and has helped them achieve double-digit growth. Which of the following would most likely be the "best" target market for American Eagle?

Gucci Group, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both ____ and ____.

Old Spice used actor and former NFL wide receiver Isaiah Mustafa to act as its spokesman as the "Old Spice Man." It filmed humorous videos of the actor that went viral online. Old Spice saw sales of its deodorants increase substantially from the previous year. What type of competitive growth strategy did Old Spice use?