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Chapter 02

Developing Marketing Strategies and a Marketing Plan

True / False Questions

1. Strong supplier relations and efficient supply chains help firms such as Walmart to achieve
operational excellence.
True False

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

True False

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

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

5. iTunes software is often credited for the success of the Apple iPod MP3 player, because it made

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 the iPod easier to use than competing players and was difficult for competitors to duplicate. This is
an example of a sustainable competitive advantage.
True False

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6. STP refers to segmentation, testing, and promotion.

True False

7. The components of a SWOT analysis are strengths, weaknesses, opportunities, and tactics.

True False

8. Firms are typically more successful when they focus on opportunities that build on their
competitors' strengths.

True False

9. 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.

True False

10. Price should be based on the value that the customer perceives.

True False

11. 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.

True False

12. The strategic planning process always proceeds sequentially through the five steps.

True False

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

True False

14. 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 BCG portfolio analysis, the Sansa
would be considered a dog.

True False

15. The implement marketing mix step of the strategic marketing planning process is part of the
control phase.

True False

16. Relative market share is an example of a marketing metric.

True False

17. Product penetration is one of the four major growth strategies.

True False

18. Firms decide how to allocate resources to their various products and services during the STP step
of the marketing planning process.

True False

Multiple Choice Questions

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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.

20. 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

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21. 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 ten-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.

22. Taking steps to encourage customer loyalty is one way to

A. test new products.

B. promote efficiency.

C. sustain an advantage over competitors.

D. develop new pricing strategies.

E. improve supply chain effectiveness.

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23. Some banks have begun offering 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. But 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.

24. Nordstrom's, an upscale department store, has a well-known reputation for going the extra mile to
serve its customers. This reputation for excellent customer service has probably resulted in

A. product design excellence.

B. mission statement satisfaction.

C. sustainable price decreases.

D. a sustainable competitive advantage.

E. producer excellence.

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

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26. 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.

27. 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. situation analysis is a continuous process.

C. customers rarely remain loyal to companies.

D. product excellence is the only true source of a sustainable competitive advantage.

E. innovation is pointless because competitors will develop copycat offerings.

28. Effective marketing doesn't just happen. It is

A. promoted through STP analysis.

B. possible only for seasoned marketing executives to achieve.

C. planned.

D. introduced through control phase SBUs.

E. the result of competitors' failures.

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29. 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. situation analysis

D. implement marketing mix and resources

E. identify and evaluate opportunities

30. 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

31. 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

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32. 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

33. 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. plan to evaluate results

C. sustainable competitive advantage

D. set of performance metrics

E. SWOT analysis

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

A. competition.

B. the economy.

C. strengths and weaknesses.

D. demographics.

E. opportunities and threats.

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35. 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.

C. pension plan.

D. product specifications.

E. opportunities and threats.

36. Manufacturers who 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. business mission

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37. 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.

38. In 2006, Ford Motor Company announced it would severely cut back automobile production. For
parts companies supplying Ford Motor, this represented a(n)

A. weakness.

B. opportunity.

C. strength.

D. threat.

E. strategic plan.

39. 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.

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40. In 2006, Walmart announced that it would begin selling organic food products. In doing so,
Walmart was probably 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.

41. For years, when considering new products, marketers at Celestial Seasonings asked themselves,
"What would Stacy think?" Stacy was a fictional character representing 25-50-year-old, educated,
upper-income women who rarely watched television but did a lot of reading. "Stacy" represented
Celestial's primary

A. demographic segment.

B. positioning.

C. SBU.

D. target market segment.

E. sustainable competitive advantage.

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42. Many of today's college graduates will make their living providing goods and services to baby
boomers, the large group of Americans born in the period after World War II. Baby boomers are a

market segment.

A. psychological
B. behavioral

C. social

D. product-based

E. demographic

43. 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.

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44. LeBron James, Alex Rodriguez, 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

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

A. Targeting

B. Market segmentation

C. A sustainable competitive advantage

D. Positioning

E. A customer excellence strategy

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Another random document with
no related content on Scribd:
love a woman—so much, that I am happy to sacrifice the dearest
wish of my heart, because I think I will serve you better by leaving
you.”
He took her hand and held it between his two strong hands.
“Don’t you think,” she whispered, so that he had to bend closer to
hear what she said, “don’t you think I—I ought to be consulted?”
“You—you,” he cried in wonderment, “would you——”
She looked at him with a smile, and her eyes were radiant with
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“I want you, Jimmy,” she said. It was the first time she had called him
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His arms were about her, and her lips met his.
They did not hear the tinkle of the bell, but they heard the knock at
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“Awfully sorry to intrude again,” he said, “but I got a wire at the little
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“I am not going,” said Jimmy, recovering his calm.
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“Ah, so I see!” said Angel, stooping to pick up two hairpins that lay
on the hearthrug.
THE END
 A New and Deadly Force is Introduced
In A Plot to Destroy
London.

The Three Days’

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By J. S. FLETCHER
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 TRANSCRIBER’S NOTES:
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Archaic or variant spelling has been retained.
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