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Chapter 01
Imperatives for a Market-Driven Strategy
True / False Questions

1. (p. 4) For companies that are becoming market oriented the skills of top management only are
required.
FALSE

Difficulty: Moderate

2. (p. 5) All the major components of distinctive capabilities are organizational processes and
assets.
FALSE

Difficulty: Easy

3. (p. 7) Superior customer value results from a very favorable use experience of the customer
compared to expectations of the customer and the value offerings of competitors.
TRUE

Difficulty: Easy

4. (p. 10) Corporate strategy consists of the decisions made by top-management and the
resulting actions taken to achieve the objectives set for the corporation.
TRUE

Difficulty: Easy

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14) A product-market consists of a specific product or product line that can satisfy a set of needs and wants for the people willing and able to purchase it. incurs costs and. 14) Customer relationship management does not emphasize delivering superior customer value.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 5. 13) Strategic marketing links the company with the environment and marketing is the responsibility of the entire business. TRUE Difficulty: Moderate 8. (p. FALSE Difficulty: Moderate 6. TRUE Difficulty: Challenging 7.Full file at http://testbanksolution. (p. FALSE Difficulty: Challenging 1-2 . (p. TRUE Difficulty: Moderate 9. (p. 14) The objective of strategic market segmentation is to identify segments within the product-market of interest. (p. 12) A strategic business unit (SBU) is a cohesive organizational unit that is separately managed. does not generate sales.

Competitor intelligence C.Full file at http://testbanksolution.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 10. 4) _____ is more than a philosophy since it consists of a process for delivering customer value. Distinctive capabilities Difficulty: Moderate 12. (p. Distinctive capabilities Difficulty: Easy 1-3 . Competitor intelligence C. (p. 4) Answering the questions 'which competitors. 15) The purpose of market targeting strategy is to select people or organizations that management wishes to serve in the product-market. TRUE Difficulty: Easy Multiple Choice Questions 11. Cross-functional coordination D. A. Market orientation B. A. what technologies and how customers perceive being satisfied' comes from _____. (p. Cross-functional coordination D. Market orientation B.

Market orientation B. A. 4) Getting all business functions working together to provide superior customer value is _____.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 13. Distinctive capabilities Difficulty: Easy 1-4 .Full file at http://testbanksolution. Competitor intelligence C. Cross-functional coordination D. (p.

(p. Distinctive capabilities Difficulty: Moderate 15. Corporate strategy B. A. 5) _____ is/are a bundle(s) of knowledge that enables firms to make use of their assets. Corporate strategy B. A. Cross-functional coordination D. Customer linking D. Business and marketing strategy C. Market sensing D. Competitor intelligence C. A. (p. Business and marketing strategy C. Customer Relationships Difficulty: Easy 16.Full file at http://testbanksolution. (p. 11) What defines the corporation and what provides guidelines for managing the corporation is _____. Customer relationship management Difficulty: Easy 1-5 . (p. A. 9) _____ consist(s) of deciding the scope and purpose of the business.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 14. the objectives and the resources necessary to achieve the objectives. Customer relationship management Difficulty: Easy 17. Market orientation B. Corporate vision D. Customer Value B. 7) _____ consist(s) of the benefits and costs resulting from the purchase and use of products as perceived by the buyer. Distinctive capabilities C.

13) The focus of _____ is on organizational performance rather than a primary concern about increasing sales. Corporate vision D. Corporate strategy B.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 18. Strategic marketing C. A. 11) The _____ is/are set at several levels of the company and includes the time frame necessary for strategic change. (p. (p. Business and marketing strategy C. (p. A. 14) _____ offers a company the opportunity to focus its business on the requirements of one or more groups of buyers. Strategic marketing objective C. Corporate objectives Difficulty: Moderate 19. Corporate responsiveness Difficulty: Moderate 21. Market segmentation D. A. Corporate strategy B. Corporate strategy B. Corporate vision D. Corporate capability Difficulty: Moderate 1-6 . Strategic marketing C. 14) A _____ is described by characteristics of people including why they buy and their preferences for brands of products. Corporate objectives Difficulty: Moderate 20.Full file at http://testbanksolution. Market segment D. A. Customer relationship management system B. (p.

eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 1-7 .Full file at http://testbanksolution.

Full file at http://testbanksolution. A. (p. Strategic marketing objective C. Corporate positioning Difficulty: Moderate 24. Corporate positioning Difficulty: Moderate 25. Strategic marketing C. Customer relationship management B. Industrial market segment D. A. Strategic marketing C. (p.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 22. Customer relationship management B. A. (p. 15) A company that is deciding the _____ objectives is likely to include the level of sales they wish to achieve. 14) _____ emphasizes delivering superior customer value by personalizing the interaction between the customer and the company. A. Corporate positioning Difficulty: Challenging 1-8 . Strategic marketing C. 14) When a company decides what organizations it wishes to serve in the productmarket. Market segmentation D. Corporate capability Difficulty: Moderate 23. Market target D. the company is engaged in choosing the _____. Market target D. (p. Customer relationship management B. Customer relationship management system B. 14) A(n) _____ is formed according to the type of industry or the uses of the product.

A. (p. Customer relationship strategy B.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 26. Relationship strategy B. Strategic market C. Idea C. (p. 15) A _____ is the combination of the product. Market target D. 15) A _____ seeks to have the brand own a place in the eyes and mind of the buyer and the product be distinguished from the products of the competition. Market target D. Positioning strategy Difficulty: Moderate 28.Full file at http://testbanksolution. value chain. Customer relationship strategy B. Strategic market C. price and promotion strategies a firm uses to position itself against its competitors in meeting the needs of a market target. price and promotion strategy components are used to influence the buyers' _____ of the brand. (p. Positioning Difficulty: Challenging 1-9 . Positioning strategy Difficulty: Easy 27. A. 15) The product. distribution. Market target D. A.

distribution. Relationship B.Full file at http://testbanksolution. Target D. Idea C.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 29. price and promotion strategy components are the marketing _____. (p. A. Mix Difficulty: Easy 1-10 . 16) The product.

Value-chain strategy D. New idea strategy C. The organization's distinctive capabilities are used to deliver value by differentiating the product offer. Customer satisfaction indicates how well the product use experience compares to the buyer's value expectations. (p. Offering superior customer value is at the core of business design. Difficulty: Moderate 1-11 . offering lower prices relative to competing brands or a combination of lower cost and differentiation. Buyers form value expectations and decide to purchase goods and services based on their perceptions of products' benefits less the total costs incurred. Product strategy B.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 30.Full file at http://testbanksolution. Intense global competition and the increasing demands of ever-more sophisticated customers make the creation of customer value an important challenge for managers. 17) Companies will use a _____ to contact and deliver product to the market target buyers. Relationship strategy Difficulty: Challenging Essay Questions 31. Superior customer value results from a very favorable use experience compared to expectations and the value offerings of competitors. A. (p. Deciding which avenue to follow requires matching capabilities to the best value opportunities. 7) Discuss how customers perceive value and how companies deliver customer value.

The supporting logic for these actions is that they are expected to lead to superior customer value and organizational performance. Corporate strategy consists of deciding the scope and purpose of the business. (p. Becoming more market oriented. business and marketing strategy is as follows. (p. Difficulty: Moderate 33. Business and marketing strategy is guided by the decisions top management makes about how. 8) What is the relationship between the corporate strategy and the business and marketing strategies? The relationship between corporate.Full file at http://testbanksolution. Difficulty: Challenging 1-12 . Market orientation research and evolving business strategy paradigms point to the importance of market sensing and customer linking capabilities in achieving successful market-driven strategies. its objectives and the initiatives and resources necessary to achieve the objectives. when and where to compete. 7) Explain the logic of pursuing a market-driven strategy. leveraging the distinctive capabilities and finding a good match between customers' value requirements and the organization's capabilities is important for companies. Research evidence indicates that these characteristics are present in market-driven organizations. which display higher performance than their counterparts that are not market driven. A market-driven organization must identify which capabilities to develop and which investment commitments to make. executives responsible for marketing strategy have a responsibility to inform corporate strategists about external change in the market that identifies opportunities and threats.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 32. This should be a two-way relationship – while corporate strategy defines strategic direction. allocates resources and defines constraints on what cannot be done.

(p. The positioning strategy seeks to position the brand in the eyes and mind of the buyer and distinguish the product from the competition. given a firm's market and competitive environment. the targeting strategy is selected. Difficulty: Moderate 1-13 . when and where to compete. market share. When buyers' needs and wants vary. Once the segments are identified and their relative importance to the firm determined. the market target is usually one or more segments of the product-market. Examples of market target objectives are desired levels of sales. value chain. distribution. The strategies and tactics used to gain a favorable position are called the marketing mix or the marketing program. 15) Discuss the role of positioning strategy in the company's marketing strategy.Full file at http://testbanksolution. price and promotion strategy components make up a bundle of actions that are used to influence buyers' positioning of a brand. The purpose of market targeting strategy is to select the people (or organizations) that management wishes to serve in the product-market. A core issue is deciding how. Positioning strategy is the combination of product. The product. (p. The targeting decision is the focal point of marketing strategy since targeting guides the setting of objectives and developing a positioning strategy.eu/Test-Bank-Bank-for-Strategic-Marketing-9-E-by-Cravens 34. The objective is to find the best match between the value requirements of each segment and the organization's distinctive capabilities. customer retention. Difficulty: Moderate 35. 15) Discuss the role of market targeting in the company's marketing strategy. price and promotion strategies a firm uses to position itself against its key competitors in meeting the needs and wants of the market target. profit contribution and customer satisfaction.