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Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies

Chapter 01 Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies Multiple Choice Questions 1. hich of the follo!ing is a co"ponent of strateg# that involves detailing the desired levels of acco"plish"ent on one or "ore perfor"ance di"ensions over specified ti"e periods for the organi$ation as a !hole% &. Scope of an organi$ation B. 'esource deplo#"ents C. (dentif#ing a sustaina)le co"petitive advantage *. +oals and o),ectives &ns!er- d .evel of *ifficult#- /as# Page- 0 1. *ecisions a)out the organi$ation2s scope and resource deplo#"ents across its divisions or )usinesses are the pri"ar# focus of 33333 strateg#. &. )usiness B. corporate C. "arketing *. functional &ns!er- ) .evel of *ifficult#- /as# Page- 4 5. (n !hich of the follo!ing levels of strateg# is sustaina)le co"petitive advantage a "a,or co"ponent% &. 6unctional strateg# B. Corporate strateg# C. Marketing strateg# *. Business strateg# &ns!er- d .evel of *ifficult#- /as# Page- 4 7. hich of the follo!ing falls !ithin the scope of corporate strateg#% &. 8arget "arket definition B. 9ertical integration C. Branding policies *. .ine e:tension &ns!er- ) .evel of *ifficult#- /as# Page- ;

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Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies

?. Business-level strategies allocate resources&. a"ong )usinesses in the corporate portfolio. B. across functions shared )# "ultiple )usinesses. C. a"ong product-"arket entries in the )usiness unit. *. across co"ponents of the "arketing plan for a specific product-"arket entr#. &ns!er- a .evel of *ifficult#- Mediu" Page- ; 0. 8he pri"ar# focus of "arketing strateg# is to&. "anage and coordinate the organi$ation@s scope and resource deplo#"ents across divisions. B. allocate and coordinate resources and activities to acco"plish the fir"2s o),ectives !ithin a specific product-"arket. C. decide a)out !hich co"petitive advantage )est "atches the needs and !ants of the custo"ers in the target seg"ent. *. develop and "aintain distinctive co"petencies at the corporate level. &ns!er- ) .evel of *ifficult#- Mediu" Page- 10 A. hich of the follo!ing state"ents a)out "arket-oriented fir"s is true% &. 8he# are characteri$ed )# a consistent focus on custo"ers@ needs )# personnel in all depart"ents. B. 8he# pa# attention to custo"er research onl# after the product has )een in the "arket for a fe! #ears. C. 8he# are slo!er and less !illing to adapt products and functional progra"s to fit environ"ental changes. *. 8he# refrain fro" using cross-functional tea"s during the develop"ent of ne! products. &ns!er- a .evel of *ifficult#- Mediu" Page- 11-11 4. 8he tendenc# for fir"s to auto"aticall# continue strategies that !ere successful in the past, even though current "arket conditions are changing, is referred to as&. "arketing "#opia. B. strategic inertia. C. adverse possession. *. product facelift. &ns!er- ) .evel of *ifficult#- /as# Page- 1? ;. hich of the follo!ing is the reason !h# earl# entrants into ne!l# e"erging industries, particularl# industries )ased on ne! technologies, are especiall# likel# to )e internall#
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Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies

focused and not ver# "arket-oriented% &. *ue to strong co"petition during the for"ative #ears B. *ue to rapid gro!th in de"and for the ne! product C. *ue to custo"er de"and )eing less than availa)le suppl# *. *ue to constraints in resources rarel# )eing an i""ediate threat to survival &ns!er- ) .evel of *ifficult#- Mediu" Page- 1? 10. Product-oriented fir"s differ fro" "arket-oriented fir"s in that product-oriented fir"s&. use pro"otion to e"phasi$e product )enefits and its a)ilit# to satisf# custo"ers2 needs. B. )ase their pricing on production and distri)ution costs. C. have )road product lines. *. consider credit as custo"er service and a tool to attract custo"ers. &ns!er- ) .evel of *ifficult#- Mediu" Page- 1? 11. hich of the follo!ing is a feature of a production-oriented organi$ation% &. (t )ases its pricing on perceived )enefits provided )# the product to its custo"er. B. (t uses pro"otional tactics that e"phasi$e on product )enefits and a)ilit# to solve custo"ers2 pro)le"s. C. (t centers its research on identif#ing ne! opportunities and appl#ing ne! technolog# to satisf# custo"er needs. *. (ts pri"ar# focus !hen offering a product is on the product2s functional perfor"ance and cost. &ns!er- d .evel of *ifficult#- Mediu" Page- 1? 11. Market-oriented organi$ations differ fro" product-oriented organi$ations in that "arketoriented organi$ations&. have narro!er product lines. B. "ake product packaging for the custo"er2s convenience. C. focus technical research on cost cutting in the production process. *. use pro"otional tactics to e"phasi$e product features, Bualit#, and price. &ns!er- ) .evel of *ifficult#- Mediu" Page- 1? 15. hich of the follo!ing state"ents is true of a "arket-oriented strateg#% &. Pricing is )ased on production and distri)ution costs. B. Pricing is )ased on perceived )enefits the product provides. C. Credit is considered a necessar# evil. *. Pro"otion pri"aril# e"phasi$es product features. &ns!er- )
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Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies

.evel of *ifficult#- Mediu" Page- 1? 17. & product-oriented organi$ation differs fro" a "arket-oriented organi$ation in that a product-oriented organi$ation&. focuses technical research on product i"prove"ent and cost-cutting in production. B. vie!s credit as a for" of custo"er service. C. does not vie! credit as a necessar# evil that can )e used to "ini"i$e "a,or de)t losses. *. e:tensivel# uses packaging as a pro"otional tool. &ns!er- a .evel of *ifficult#- Mediu" Page- 1? 1?. hich of the follo!ing state"ents a)out services is true% &. (n "ost developed econo"ies, the service sector has sho!n the slo!est gro!th. B. Services are al!a#s tied to a ph#sical product. C. +ood services are "ostl# tangi)le in nature. *. +ood services i"prove custo"er lo#alt# over the long ter". &ns!er- d .evel of *ifficult#- Mediu" Page- 14 10. /-tailers such as &"a$on and i8unes are e:a"ples of 33333 categor# of e-co""erce. &. )usiness-to-)usiness B. consu"er-to-)usiness C. )usiness-to-consu"er *. consu"er-to-consu"er &ns!er- c .evel of *ifficult#- /as# Page- 1; 1A. Price8ag.co" is a site that ena)les users to )id on unsold airline tickets and other goods and services. Price8ag.co" is an e:a"ple of 33333 t#pe of e-co""erce. &. )usiness-to-consu"er B. consu"er-to-)usiness C. consu"er-to-consu"er *. )usiness-to-)usiness &ns!er- ) .evel of *ifficult#- Mediu" Page- 1; 14. Out of the 7Cs of a "arket anal#sis, 33333 !ould )e considered under Ccharacteristics of custo"ers.D &. )ench"arking B. initial pu)lic offering
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Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies

C. "arket seg"entation *. eBuit# capital &ns!er- c .evel of *ifficult#- Mediu" Page- 11 1;. & distinct su)set of people !ith si"ilar needs, circu"stances, and characteristics that lead the" to respond in a si"ilar !a# to a particular product or service offering is kno!n as a 33333. &. "arket seg"ent B. set-aside C. penetrated "arket *. "arket "i: &ns!er- a .evel of *ifficult#- /as# Page- 15 10. hich of the follo!ing contents of a "arketing plan specificall# presents the e:pected financial pa#off fro" the plan % &. O),ectives B. Pro,ected profit-and-loss state"ent C. Current situation and trends *. /:ecutive su""ar# &ns!er- ) .evel of *ifficult#- /as# Page- 1? 11. hich of the follo!ing contents of a "arketing plan specifies the goals to )e acco"plished in ter"s of sales volu"e, "arket share, and profit% &. Ee# issues B. Marketing strateg# C. O),ectives *. &ction plans &ns!er- c .evel of *ifficult#- /as# Page- 1? ssa! Questions 11. hat is the pri"ar# focus of "arketing-level strategies% hat critical issues do the# focus on% &ns!er- 8he pri"ar# focus of "arketing strateg# is to effectivel# allocate and coordinate "arketing resources and activities to acco"plish the fir"@s o),ectives !ithin a specific product-"arket. 8hus, the critical issue concerning the scope of a "arketing strateg# is specif#ing the target "arketFsG for a particular product or product line. 6ir"s then seek
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Chapter 01 - Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies

co"petitive advantage and s#nerg# through a !ell-integrated progra" of "arketing "i: ele"ents Fpri"aril# the 7 Ps of product, price, place, pro"otionG tailored to the needs and !ants of potential custo"ers in that target "arket. .evel of *ifficult#- Mediu" Page- 10 15. h# are so"e fir"s not ver# focused on their consu"ers or co"petitors% &ns!er- Co"petitive factors affecting a fir"2s "arket orientation/arl# entrants into ne!l# e"erging industries have fe! strong co"petitors, rapidl# gro!ing custo"er de"and, and i""ediate threats of production pro)le"s and resource constraints. &s industries gro!, the# )eco"e "ore co"petitive. (ndustr# capacit# gro!s faster than de"and, and the environ"ent shifts fro" a seller2s "arket to a )u#er2s "arket. 6ir"s often respond to changes !ith aggressive pro"otional activities to "aintain "arket share and hold do!n unit costs. 8his sales-oriented response focuses on selling !hat the fir" !ants to "ake rather than on custo"er needs. Spending "ore on selling efforts doesn2t create a sustaina)le co"petitive advantage. &s industries "ature, sales volu"e levels off, and technological differences a"ong )rands disappear as "anufacturers cop# the )est features of each other2s products. Managers can "ost readil# appreciate )enefits of a "arket orientation at this stage. .evel of *ifficult#- =ard Page- 1?-10 17. hat is a "arketing plan% /:plain its i"portance. &ns!er- & "arketing plan is a !ritten docu"ent detailing current situation concerning custo"ers, co"petitors, and the e:ternal environ"entH providing guidelines for o),ectives, "arketing actions, and resource allocations over the planning period for either an e:isting or a proposed product or service. (t is i"portant )ecause it provides a concrete histor# of a product@s strategies and perfor"ance over ti"e, aiding institutional "e"or# and educating ne! "anagers. (t is an i"portant tool for co""unicating and coordinating e:pectations and responsi)ilities through the fir". (t is especiall# i"portant in larger fir"s )ecause F1G "arketing proposals are usuall# revie!ed and approved )# higher "anage"ent levelsH and F1G an approved plan provides a )ench"ark against !hich to ,udge perfor"ance. .evel of *ifficult#- Mediu" Page- 17

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