Deck 4: Strategy Formation

Question 1

Which of the following best describes a differentiated marketing strategy of product specialization?

A) one product and one segment
B) many products and one segment
C) one product and many segments
D) many products and many segments

Answer 1

C

Question 2

A differentiated marketing strategy is typically linked to lower ________.

A) economies of scope
B) economies of scale
C) customer value
D) unit costs

Answer 2

B

Question 3

Which type of market coverage strategy requires a firm to have the most detailed understanding of its target market?

A) behavioral target marketing
B) undifferentiated marketing
C) niche marketing
D) mass marketing

Answer 3

C

Question 4

Which of the following is LEAST likely to be considered a competitive advantage for a firm?

A) rare capabilities
B) valuable resources
C) substitutable products
D) transferable technology

Question 5

Firms can most likely identify competitive advantages with a framework based on their ________.

A) sales ratio
B) value chain
C) supply curve
D) marketing mix

Question 6

According to the text,which of the following best explains why the marketing mix receives different customer responses?

A) rising education levels
B) shifting political cultures
C) varying customer needs
D) declining monetary values

Question 7

The division of buyers into groups based on their product knowledge,usage rate,or loyalty is ________ segmentation.

A) psychographic
B) demographic
C) geographic
D) behavioral

Question 8

Which of the following is NOT an example of a demographic segmentation variable?

A) lifestyle
B) income
C) gender
D) education

Question 9

All of the following are examples of segmentation bases EXCEPT ________.

A) performance
B) profitability
C) economy
D) reliability

Question 10

Age,income,lifestyle,and location are examples of ________.

A) perceptual needs
B) segmentation bases
C) segment descriptors
D) psychographic categories

Question 11

In market segmentation,________ are any underlying motivations that drive consumer consumption,such as security or shelter.

A) demands
B) benefits
C) values
D) needs

Question 12

A marketer decides to serve several different needs of one segment with multiple products and marketing programs.Which type of differentiated marketing is most likely being used by the marketer?

A) segment specialization
B) product specialization
C) selected specialization
D) full market coverage

Question 13

What is the first step of strategy formulation?

A) creating a marketing mix
B) targeting specific customers
C) segmenting a particular market
D) identifying competitive advantages

Question 14

The text describes how Lexus was able to successfully enter the luxury sedan market despite the dominance of BMW.Which of the following best explains how Lexus accomplished this task?

A) Lexus targeted customers who were interested in high performance.
B) Lexus used full market coverage to lower BMW's market share.
C) Lexus focused on the market segment that valued reliability.
D) Lexus used advertising that attacked BMW's quality ratings.

Question 15

A firm that targets very broad segments with relatively homogeneous offerings is most likely using a ________ marketing strategy.

A) target
B) global
C) niche
D) multi-segment

Question 16

In the market segmentation process,customer needs,wants,and demands are considered segment ________.

A) bases
B) descriptors
C) specializations
D) psychographics

Question 17

When New Port Shipping uses segmented marketing,the firm targets several segments and offers a unique product tailored to each one.This approach is called ________ marketing.

A) undifferentiated
B) differentiated
C) concentrated
D) niche

Question 18

Which term refers to the outcome or consequence of purchasing a product?

A) perception
B) benefit
C) respect
D) value

Question 19

The division of buyers into groups based on lifestyle or personality characteristics is ________ segmentation.

A) psychographic
B) demographic
C) geographic
D) behavioral

Question 20

Which of the following refers to the process of dividing a market into meaningful and distinct customer groups?

A) targeting
B) positioning
C) segmentation
D) differentiation

Question 21

A marketer who has decided to use the GE/McKinsey Portfolio Planning Grid will most likely assess segments based on ________ and ________.

A) strength of the firm; long-term market share
B) segment attractiveness; strength of the firm
C) product category; segment attractiveness
D) segment size; competitive advantages

Question 22

The four substeps of strategy formation in the order that they should occur are identifying competitive advantages,segmenting the market,positioning the product,and targeting the customers.

Question 23

Deploying the marketing mix to claim a unique,valued,and defensible position in the marketplace is known as ________.

A) targeting
B) segmenting
C) positioning
D) differentiating

Question 24

Marketing efforts to develop customer loyalty will be more successful if the marketer has a solid understanding of customer needs.

Question 25

A strategy of differentiated marketing will most likely lead to superior value and lower unit costs.

Question 26

Each year,Honeywell asks every department manager to rate his or her department's strengths and weaknesses as well as those of the other departments with which the department interacts.Then each department manager is asked what he or she sees as the greatest threats and opportunities for the company.Honeywell is asking its department managers to engage in a(n)________.

A) SWOT analysis
B) market analysis
C) compatibility assessment
D) functional planning session

Question 27

Core competencies and competitive advantages are the strengths possessed by a firm.

Question 28

What is the purpose of conducting a SWOT analysis?

Question 29

What is the most likely result of straddling?

A) strong brand equity
B) long-term marketing failure
C) short-term marketing failure
D) highly effective brand positioning

Question 30

Which term refers to the loss of focus on the target segment in favor of other segments?

A) repositioning
B) segment shift
C) target drift
D) straddling

Question 31

Matching a firm's competitive advantages with attractive market opportunities is best known as ________.

A) targeting
B) positioning
C) segmenting
D) differentiating

Question 32

Most marketers use either a SWOT analysis or a(n)________ when they need to identify the best markets to target with a specific product.

A) decision model
B) perceptual map
C) demographic survey
D) strength/attractiveness matrix

Question 33

What is differentiated marketing? What are the advantages and disadvantages of this strategy?

Question 34

How can a firm benefit from segmenting the market?

Question 35

Unlike business markets,consumer markets can be described by demographic and psychographic variables.

Question 36

A firm that selects and focuses on one or a few single segments is most likely using a strategy of ________.

A) product specialization
B) segment specialization
C) selected specialization
D) full market coverage

Question 37

Targeting more than one segment with a single marketing mix is known as ________.

A) straddling
B) target drift
C) positioning
D) segmenting

Question 38

A product's position is based on important attributes as perceived by ________.

A) global markets
B) competitors
C) consumers
D) employees