Deck 2: Developing Marketing Strategies and a Marketing Plan

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

The strategic planning process always proceeds sequentially.

Answer 3

False

Question 4

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

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

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

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

Question 7

Firms are typically more successful when they focus on opportunities that build on their strengths relative to those of their competition.

Question 8

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

Question 9

Isaac is looking for ways to offer new goods and services to his existing customers. He is pursuing a market development strategy.

Question 10

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 11

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

Question 12

Which of the following is not one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages?

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

Question 13

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

Question 14

Relative market share is an example of a marketing metric.

Question 15

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

Question 16

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

Question 17

Product penetration is one of the four major growth strategies.

Question 18

Firms analyze internal strengths and weaknesses and external opportunities and threats during the implementation phase of the marketing plan.

Question 19

If a firm wants to develop a sustainable competitive advantage, it should

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.

Question 20

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.

Question 21

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

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

Question 22

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 23

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 24

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 25

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 26

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?

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

Question 27

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.

Question 28

Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha 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 29

When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged?

A) planning
B) implementation
C) control
D) segmentation
E) metrics

Question 30

Some banks offer 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; however, bankers know that consumers are creatures of habit and hope that the young people they serve now 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 as long as customers bring in some revenue, costs do not matter.

Question 31

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 32

Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can

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.

Question 33

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 34

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 35

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.

A) advertising campaign
B) pricing structure
C) sustainable competitive advantage
D) set of performance metrics
E) SWOT analysis

Question 36

Amazon's latest attempt to shore up and enhance its competitive barriers by introducing a home service marketplace that may help it achieve a lasting, powerful advantage is an example of ________ excellence.

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

Question 37

Which of the following is least likely to provide 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 38

As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including

A) its competition.
B) the economy.
C) its strengths and weaknesses.
D) demographics.
E) any opportunities and threats.

Question 39

The recent whole foods trend has led to the opening of a new organic foods market in town. In reaction, 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.

Question 40

Lionel 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 41

________ 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) Positioning
E) A SWOT analysis

Question 42

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

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

Question 43

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

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

Question 44

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 45

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 46

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 47

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 48

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 49

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make ________ decisions.

A) competitive response
B) resource allocation
C) market growth
D) product line
E) mission statement

Question 50

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 51

The first objective in the evaluate performance phase of the marketing planning process is to

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.

Question 52

Google and other search engines allow marketers to bid to have their ads shown when consumers search keywords related to the firm's products. These marketers are attempting to create value through

A) product.
B) price.
C) promotion.
D) place.
E) cost-based measures.

Question 53

As it pertains to the marketing plan, understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals

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.

Question 54

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. To understand the differences between stores, the manager will probably next review the company's

A) financial statements, to investigate current and past profits.
B) brand awareness study, to assess national levels of awareness.
C) implementation programs, to see if the promotion was handled consistently in the different stores.
D) mission statement, to see if it needs adjusting.
E) analysis of national trends in vitamins and herbal supplements, to help predict future sales.

Question 55

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities

A) that build on their strengths relative to those of their competition.
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.

Question 56

In most companies, portfolio management is typically done at the SBU or ________ level of the firm.

A) corporate
B) product line
C) customer care
D) sales representative
E) accounting

Question 57

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 58

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.

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

Question 59

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.

A) segmentation strategy
B) place strategy
C) locational excellence strategy
D) diversification strategy
E) product value

Question 60

Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis, and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will most likely involve determining

A) how Disney World crowds will impact his business.
B) which employees to promote or fire.
C) how to allocate resources among his four stores.
D) what new government regulations might create opportunities or threats.
E) when to shift from a customer excellence to an operational excellence strategy.

Question 61

Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through

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

Question 62

Which of the following is one of the four major growth strategies that marketers typically utilize?

A) market penetration
B) target development
C) segment analysis
D) market assimilation
E) product growth

Question 63

Heather has been assessing several of her firm's products using the Boston Consulting Group (BCG) approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of each of her products and the sales of the largest firm in the industry. Heather is trying to determine

A) the product's relative market share.
B) the market growth rate.
C) a source of competitive advantage.
D) the impact of population shifts on future demand.
E) cash equivalent values for each product.

Question 64

The strategic marketing planning process

A) is a five-step process that should always be completed in order.
B) is frequently used in reverse.
C) begins with establishing specific, measurable outcomes.
D) is not always sequential.
E) forces marketing managers to think rationally.

Question 65

Customer relationship software allows bank service representatives to determine quickly which types of accounts, loans, and credit cards a customer currently has. With this information, the service representative can determine what other bank services that same customer could potentially enroll in or purchase. This growth strategy is known as

A) product proliferation.
B) market development.
C) market penetration.
D) diversification.
E) product development.

Question 66

A ________ growth strategy employs the existing marketing offering to reach new market segments.

A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development

Question 67

Using the BCG portfolio analysis, a "dog" should be phased out unless

A) its marketing manager is a champion of the product.
B) additional resources could increase its relative market share slightly.
C) it complements or boosts the sales of another product.
D) the market has a small chance of rebounding.
E) None of the choices is correct. Dogs should be phased out.

Question 68

Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a ________ growth strategy.

A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development

Question 69

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

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

Question 70

To determine how attractive a particular market is using the BCG portfolio analysis, ________ is(are) established as the vertical axis.

A) competitive intensity
B) sales dollars
C) market size
D) market growth rate
E) market profit potential

Question 71

H&R is a small, local heating and air conditioning business. The local military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require. H&R is considering a ________ growth strategy.

A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development

Question 72

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called

A) stars.
B) cash cows.
C) question marks.
D) dogs.
E) anchors.

Question 73

Maryam phoned her insurance agent to renew her auto insurance policy. On that same call, the agent attempted to sell her one of the firm's new home or life insurance policies. The agent was pursuing a ________ growth strategy.

A) product development
B) market development
C) market penetration
D) diversification
E) product proliferation

Question 74

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as a(n)

A) star.
B) cash cow.
C) question mark.
D) dog.
E) anchor.

Question 75

Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ________ growth strategies.

A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development

Question 76

Adrienne decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Adrienne is pursuing a ________ growth strategy.

A) segment development
B) market development
C) market penetration
D) diversification
E) product development

Question 77

Marketers who design and offer new products and services to their existing customers are pursuing a ________ growth strategy.

A) product proliferation
B) market development
C) market penetration
D) diversification
E) product development

Question 78

A(n) ________ is a group of products that consumers may use together or perceive as similar in some way.

A) SBU
B) STP
C) product line
D) market segment
E) promotional service

Question 79

Introducing newly developed products or services to a market segment the company is not currently serving is called

A) product development.
B) market development.
C) market penetration.
D) diversification.
E) product proliferation.

Question 80

After success with its Netflix series Jessica Jones and Daredevil, Marvel launched two additional series, Iron Fist and Luke Cage. By doing this, Marvel employed a ________ strategy.

A) product development
B) customer development
C) market penetration
D) market development
E) diversification