Deck 2: Developing Marketing Strategies and a Marketing Plan

Question 1

Establishing a sustainable competitive advantage is the key to long-term financial performance.

Answer 1

True

Question 2

The strategic planning process always proceeds sequentially.

Answer 2

False

Question 3

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in

A)product design excellence.
B)mission statement satisfaction.
C)sustainable price decreases.
D)a sustainable competitive advantage.
E)producer excellence.

Answer 3

D

Question 4

When Kennedy 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 Kennedy's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. Ritz-Carlton demonstrated the macro strategy of

A)customer excellence.
B)operational excellence.
C)product excellence.
D)promotional excellence.
E)global excellence.

Question 5

SanDisk's MP3 player product line (called the Sansa)has a low relative market share. The MP3 player market is expected to decline over the next few years. In Boston Consulting Group (BCG)portfolio analysis, the Sansa would be considered a dog.

Question 6

Product penetration is one of the four major growth strategies.

Question 7

Amazon is able to achieve operational excellence because it not only has the technology to coordinate personal buyers, it also has an effective HR hiring program that selects and trains the best employees.

Question 8

Within portfolio analysis, a star represents a high-growth market with high market share products.

Question 9

Niro Music Source Inc. is considered the best in the industry in terms of human resource management and its excellent supply chain that assures the company will deliver products on time. Which macro strategy does this company demonstrate to achieve a sustainable competitive advantage?

A)locational excellence
B)customer excellence
C)operational excellence
D)product excellence
E)planning excellence

Question 10

When Molly and her family visited Disney World last month, she was amazed that every staff member she talked to was able to answer her question regardless of whether it was about a hotel, restaurant, parade time, or fireworks display. She was very impressed. Which type of excellence does this represent?

A)operational
B)locational
C)customer
D)product
E)service

Question 11

Value-based marketing requires that firms charge a price that customers perceive as giving them a good value for the product they receive.

Question 12

Kaiko's Place is a surfer-themed restaurant chain in Hawaii. Most of its customers are tourists. In a SWOT analysis for Kaiko's Place, the possibility that the recession might cut back on tourism in Hawaii would be considered a weakness.

Question 13

Miles manages the electrical turbine engine division of General Electric Corporation. He makes most decisions independently, without consulting headquarters. Miles manages a strategic business unit.

Question 14

Some banks offer special accounts designed to attract junior high school students. Savings in these accounts are generally small amounts, which cost banks more to maintain than they are worth; however, bankers know that consumers are creatures of habit and hope that these young people will become adult customers. These banks recognize

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 if customers bring in some revenue, costs do not matter.

Question 15

The step during which marketers segment the market, target those market segments, and position products is known as the control phase.

Question 16

Corinne works for an online movie streaming company. Her task is to find ways to push out the company's current movie offerings to countries in Europe. She is pursuing a market development strategy.

Question 17

To build a sustainable competitive advantage, companies should focus on a single strategy.

Question 18

Firms use segmentation, targeting, and promotion to choose the consumer groups they wish to pursue with its marketing efforts.

Question 19

It is not always necessary to go through all the steps in the marketing planning process.

Question 20

A mission statement describes the specific actions a firm will take to achieve its goals.

Question 21

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. These combined factors have allowed these four firms to create ________ over the competition.

A)identical marketing mixes
B)customer excellence
C)a sustainable competitive advantage
D)product excellence
E)locational excellence

Question 22

A competitive advantage based on location is often sustainable because

A)mobile marketing has not yet proven its value for most customers.
B)real estate prices have been dropping.
C)few marketers are aware of its importance yet.
D)location cannot be easily duplicated.
E)the Internet has diminished the importance of brick-and-mortar stores.

Question 23

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in

A)a product development growth strategy.
B)an operational advantage.
C)opportunities for diversification.
D)increased long-term profits.
E)more clearly defined market segments.

Question 24

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n)________ macro strategy.

A)customer excellence
B)global excellence
C)locational excellence
D)operational excellence
E)product excellence

Question 25

Some universities, recognizing the convenience of distance learning, have begun to offer fully online, accredited degree programs. These universities are most likely pursuing which macro strategy?

A)customer excellence
B)locational excellence
C)operational excellence
D)product excellence
E)purchase excellence

Question 26

One example of a customer loyalty program is

A)a "frequent diner" restaurant card that offers a free appetizer for every $100 spent.
B)a quantity discount offered for large purchases at an office supply store.
C)access to seasonal sales on top-selling items.
D)an "everyday low price" policy on all products at a grocery store.
E)an extensive customer service training program.

Question 27

Miranda is analyzing opportunities for her company. What decision is least likely to provide the company with a sustainable competitive advantage?

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

Question 28

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

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.

Question 29

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.

A)strategic marketing plan
B)clear mission statement
C)operational advantage
D)sustainable competitive advantage
E)diversification strategy

Question 30

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

A)customer excellence
B)locational excellence
C)customer loyalty
D)value-based pricing
E)operational excellence

Question 31

Over the last few months, Carlos and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution, and promotion that should appeal to each of those target markets. In doing so, Carlos has also identified what he believes is an advantage his competitors cannot match. Carlos and his colleagues have been developing

A)a business mission statement.
B)a strategic vision.
C)team-building exercises.
D)a marketing strategy.
E)competitive assessments.

Question 32

Sasha's Sandwich Shop rewards customers with five points every time they purchase a lunch entrée. Once customers earn 25 points, they receive a free lunch entrée. What tactic is this business using to achieve customer excellence?

A)using a good physical location
B)relying on an effective price structure
C)creating customer loyalty
D)focusing on human resource management
E)developing an Internet presence

Question 33

What is considered the best way to build a sustainable competitive advantage using product excellence?

A)being the first to offer customers desired features, even if competitors can copy them easily
B)positioning the product using a clear, distinctive brand image
C)having the most features on each model
D)focusing on being cutting edge and continually eliminating older features that are still in use by customers
E)copying the market leader's features, but at a lower cost

Question 34

Which actions would be the most likely to support and enhance an operational excellence macro strategy?

A)Singapore Airlines installing more comfortable seats in the economy-class cabins of its airplanes
B)3M Corporation implementing new software to improve communication with its suppliers
C)Adidas inviting customer suggestions to guide the design of the next generation of shoes
D)Nike opening hundreds of new company stores in high-traffic shopping areas
E)McDonald's lowering prices on its coffee drinks

Question 35

Vivien has been a loyal customer of her hair salon for years-just like most of the other patrons. She believes that her stylist, the salon owner, is the best in the business. Not only does the salon provide excellent beauty services, it also features an exceptional, timely staff that always puts the customer first. Furthermore, the salon, which is right in the heart of town, is easily accessible. Vivien's salon has earned

A)a sustainable competitive advantage.
B)a customer retention program.
C)an opportunity to grow.
D)a loyal customer following.
E)the benefits of a locational excellence.

Question 36

Customer retention programs are based on what concept?

A)Customer excellence is the easiest macro strategy to follow.
B)Customer relationships should be viewed from a lifetime value perspective rather than on a transaction-by-transaction basis.
C)It is important to maximize profits in the first few months of a customer relationship.
D)Segmentation, targeting, and positioning analysis should not be rushed.
E)Firms must spend large amounts of money to retain customers.

Question 37

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

A)customer loyalty.
B)locational excellence.
C)a diversification growth strategy.
D)a sustainable competitive advantage.
E)a related diversification opportunity.

Question 38

Which macro strategy allows Amazon to guarantee free two-day shipping to its prime members?

A)manufacturing excellence
B)product excellence
C)branding excellence
D)operational excellence
E)locational excellence

Question 39

Ted's Tire Store sets itself apart from competitors by the extra attention it pays to its customers. To retain customer loyalty, it provides fast, courteous service in a clean, professional-looking environment. Ted's has used this strategy for over 40 years, expanding to 15 outlets. Ted's Tire Store uses a ________ macro strategy.

A)supply chain excellence
B)locational excellence
C)product excellence
D)diversification excellence
E)customer excellence

Question 40

Customers around the world know Pepsi and consider it a primary "go-to" brand if they want a refreshing drink. This positioning reflects Pepsi's careful implementation of

A)locational excellence strategy.
B)operational excellence strategy.
C)targeting strategy and the marketing mix.
D)strategic business unit control.
E)supply chain management.

Question 41

Mallory has been hired as the new marketing manager at Luscious Chocolate Company. Prior to taking the job, Mallory researched the company and founds its mission statement. What is one of the questions the mission statement should answer?

A)What does the company need to do to accomplish goals and objectives?
B)What is the company's policy on diversifying its portfolio?
C)What are the specific markets the company wants to reach?
D)How many competitors does the company have?
E)Where is the company located?

Question 42

It is Nathan's job to evaluate the performance of the marketing strategy his company used to promote its new line of tennis shoes and recommend any changes the company should make. Which step of the marketing plan is Nathan responsible for?

A)implementation phase
B)production phase
C)control phase
D)planning phase
E)objective phase

Question 43

Trista is charged with assessing her company's external environment as part of a SWOT analysis. Trista will study her company's

A)strengths and weaknesses.
B)sales history and profit margins.
C)pension and retirement plans.
D)product specifications.
E)opportunities and threats.

Question 44

In mid-2010, Hewlett-Packard Company (HP)acquired Palm Computing Inc., a manufacturer of personal devices and smartphones. 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 which step of the marketing planning process?

A)perform situation analysis
B)implement marketing mix and allocate resources
C)identify and evaluate opportunities
D)evaluate performance
E)define the business mission

Question 45

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several CDSTEP factors. The "E" in this acronym stands for which factor?

A)ethical
B)environmental
C)ecological
D)economic
E)elemental

Question 46

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.

A)weakness
B)opportunity
C)threat
D)strength
E)metric

Question 47

Matt pointed out to the board of directors that having the popular teen music group as the company's celebrity endorser has boosted sales by 22% in the 12-18 age bracket. When using a SWOT analysis, the teen music group would be classified as a(n)

A)strength.
B)option.
C)opportunity.
D)weakness.
E)threat.

Question 48

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

A)target marketing.
B)market segmentation.
C)positioning.
D)allocation.
E)value capture.

Question 49

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)

A)weakness.
B)opportunity.
C)strength.
D)threat.
E)strategic plan.

Question 50

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

A)product
B)place
C)customer
D)operational
E)locational

Question 51

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

A)weaknesses.
B)opportunities.
C)strengths.
D)threats.
E)strategic plans.

Question 52

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

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.

Question 53

Which factor, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity as identified by a SWOT analysis?

A)The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity.
B)Recent consumer studies have indicated that Chinese consumers prefer American cars.
C)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.
D)Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors.
E)The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

Question 54

Which factor, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat as identified by a SWOT analysis?

A)The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity.
B)Recent consumer studies have indicated that Chinese consumers prefer American cars.
C)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.
D)Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors.
E)The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

Question 55

________ 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.

A)Target marketing
B)Market segmentation
C)Market positioning
D)Allocation
E)Value capture

Question 56

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

A)internal weakness
B)external threat
C)external opportunity
D)operational advantage
E)marketing mix

Question 57

What is the third step in the marketing planning process?

A)define the business mission
B)identify and evaluate opportunities
C)evaluate using a matrix
D)implement marketing mix and allocate resources
E)perform situation analysis

Question 58

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-implying it was simpler than using a competitor site. This campaign was part of GEICO's

A)mission statement.
B)market segmentation plan.
C)product strategy.
D)customer excellence strategy.
E)positioning strategy.

Question 59

During which phase of the marketing planning process does a firm evaluate performance using marketing metrics?

A)planning phase
B)implementation phase
C)production phase
D)control phase
E)strategy phase

Question 60

After defining the business mission, what should a firm do next to develop a marketing plan?

A)conduct an STP analysis
B)perform a situation analysis
C)develop a positioning strategy
D)select a target market
E)implement the four Ps

Question 61

Among Internet users, some do research online, some shop, some look for entertainment, and many do all three. Each of these groups have different wants and needs and would be called a

A)strategic group.
B)strategic business unit.
C)market segment.
D)cash cow.
E)marketing metric.

Question 62

Candice 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 Candice engaged in?

A)evaluate performance
B)define the business mission
C)perform situation analysis
D)implement marketing mix and allocate resources
E)identify and evaluate opportunities

Question 63

John 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." John is ignoring the ________ step of the marketing planning process.

A)evaluate performance
B)define the business mission
C)perform situation analysis
D)implement marketing mix and resources
E)identify and evaluate opportunities

Question 64

Creating value for a consumer product via place decisions involves

A)putting the product in the front of the store.
B)designing creative displays to capture consumers' attention.
C)pricing products differently at different stores.
D)making sure the product is available where and when customers will want it.
E)focusing exclusively on Internet sales to reduce supply chain costs.

Question 65

In value-based marketing, the promotion element of the four Ps communicates the ________ to customers through a variety of media.

A)mission statement
B)operational excellence strategy
C)value proposition
D)relative market value
E)target market definition

Question 66

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. In terms of implementing the marketing mix, the university is enhancing the

A)segmentation strategy.
B)place strategy.
C)place delivery.
D)promotion communication.
E)product value

Question 67

Coca-Cola sells two different zero-calorie versions of Coke: Diet Coke and Coke Zero (now known as Coca-Cola Zero Sugar). 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

A)positioning.
B)targeting.
C)segmentation.
D)a market segment.
E)market penetration.

Question 68

Delta Airlines is among the companies experimenting with selling products and services on their 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?

A)product and value creation
B)price and value capture
C)place and value delivery
D)promotion and value communication
E)positioning and value promotion

Question 69

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

A)target marketing.
B)situation analysis.
C)diversification.
D)positioning.
E)market penetration estimation.

Question 70

When considering new products, marketers at Savory Seasonings ask themselves, "What would Kate think?" Kate is a fictional character representing 25- to 50-year-old educated, upper-income women who rarely watch television but read a lot. "Kate" represents Savory Seasoning's primary

A)internal strength.
B)positioning strategy.
C)strategic business unit.
D)target market segment.
E)sustainable competitive advantage.

Question 71

Businesses use metrics in order to

A)lower production costs.
B)eliminate inventory costs.
C)evaluate a strategy and quantify a trend.
D)recognize a market and develop a new product.
E)implement personal selling strategies.

Question 72

LeBron James, Stephen Curry, 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.

A)product excellence
B)targeting
C)positioning
D)segmentation
E)customer excellence

Question 73

When marketers use a variety of communication disciplines-advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media-in combination to communicate a value proposition to the customer, it is referred to as

A)integrated marketing communications.
B)multimedia marketing.
C)diverse marketing communications.
D)comprehensive promotion.
E)managed marketing communications.

Question 74

Amazon makes sure its customers can download their Kindle e-books easily from its website when and where they want them. In so doing, it is focusing on creating value through

A)product.
B)place.
C)promotion.
D)price.
E)process.

Question 75

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'

A)business mission.
B)market segmentation strategy.
C)positioning strategy.
D)customer excellence strategy.
E)target market.

Question 76

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

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.

Question 77

Starbucks is known for understanding its customers. As such, it has developed multiple varieties of products that match the needs and wants of its different market segments. By offering everything from espresso drinks to teas to pastries, Starbucks is engaging in a(n)________ strategy.

A)value-based promotions
B)market segmentation
C)positioning
D)operational excellence
E)target marketing

Question 78

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.

A)product
B)price
C)promotion
D)place
E)financial

Question 79

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

A)Targeting
B)Market segmentation
C)A situational analysis
D)Market positioning
E)A SWOT analysis

Question 80

The recent whole foods trend has led to the opening of a new organic foods market in town. In response, the long-standing neighborhood grocery decided to stock and sell a line of organic food products. In doing this, the grocery was most likely trying to

A)gain government subsidies.
B)attract a different market segment.
C)reduce its costs.
D)save the environment.
E)offset cost-based pricing pressure.