Ch 2 smart book practice quiz BA 370 SDSU

Which of the following factors, listed in a situation analysis for a major U.S, auto manufacturer, is the best example of a threat?

A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded.

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

False

Sandbar is a beach-themed casual restaurant group in Southern California, Most of its customers are tourists. In a SWOT analysis for Sandbar, the possibility that the recession might cut back on tourism in Southern California would be considered a weakness.

False * threat

Esau wants to offer his existing design customers new goods and services. He is pursuing a market development strategy.

False *product development strategy

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

Market growth rate

Nike, the global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business?

Nike's athletic shoe business still requires some investment, but it is likely to produce excess resources that can be invested in other divisions of the company.

Over the last few months, Fredo and his colleagues have analyzed the current business situation and lidentified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution, and promotion that should appeal to each of those target markets. In doing so, Fredo has also identified what he believes is an advantage his competitors cannot match. Fredo and his colleagues have been developing

a marketing strategy.

Avery'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 will most likely result in

a sustainable competitive advantage.

Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through "slotting allowances," which are payments to retailers in return for shelf space. Combined, these four firms have

a sustainable competitive advantage.

When a pharmaceutical company develops a new medication, it typically applies for a patent in order to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish

a sustainable competitive advantage.

Target has announced that it would begin selling organic food products. In doing so, Target is most likely trying to

attract a different market segment.

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

cash cows.

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

create a sustainable competitive advantage.

Miner's Oil Change Service Center sets itself apart from competitors by the extra attention it pays to retaining loyal customers by providing fast, courteous service in a clean, professional-looking environment. Miner's has used this strategy for over 40 years, expanding to 15 outlets. Miner's Oil Change Service Center has created a ______ macro strategy to create and deliver value and to develop a sustainable competitive advantage.

customer excellence

Miner's Oil Change Service Center sets itself apart from competitors by the extra attention it pays to retaining loyal customers by providing fast, courteous service in a clean, professional-looking environment. Miner's has used this strategy for over 40 years, expanding to 15 outlets. Miner's Oll Change Service Center has created a _____ macro strategy to create and deliver value and to develop a sustainable competitive advantage.

customer excellence

When Maria, 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 Maria'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

customer excellence.

Sharon has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could, Other salons have opened closer to Sharon's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Sharon's attitude toward the salon is an example of

customer loyalty.

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

diversification.

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is not one of these factors?

ethical

Lamar owns four delis in the suburbs of Chicago, llinois. 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

how to allocate resources among his four stores.

Which of the following is the third step in the marketing planning process?

identify and evaluate opportunities

During which step of the marketing planning process does a firm engage in segmentation, targeting, and positioning?

identify and evaluate opportunities phase

A regional manager at Sally's Beauty Supply, a chain of retail stores selling hair and beauty products, 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

implementation programs, to see if the promotion was handled consistently in the different stores.

Rashid has been directed by his 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. Rashid is engaged in

implementing marketing mix and resources.

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in

increased long-term profits.

Hunter Corporation's mission statement

is a broad description of a firm's objectives and the scope of activities it plans to undertake.

The strategic marketing planning process

is not always sequential.

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

it complements or boosts the sales of another product.

A competitive advantage based on location is often sustainable because

it is not easily duplicated.

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

market development

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.

market development

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

market penetration

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

market penetration

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called

market segmentation.

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

no single strategy is likely to be sufficient to build a sustainable competitive advantage.

After defining the business mission, what should a firm do next to develop a marketing plan?

perform a situation analysis

Delta Airlines is among the companies experimenting with selling products and services on their Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta's website-users can book a trip in Delta's "Ticket Agent" application without ever leaving Facebook. Which element of the marketing mix does this represent?

place and value delivery

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

positioning

A former advertising campaign for GEICO Insurance used the slogan "So easy, even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website. This campaign was part of GEICO's

positioning strategy

Starbucks carefully crafts its offerings and advertising message, and it strategically sets prices and selects locations to appeal to its target market. These efforts represent Starbucks"

positioning strategy.

When Marvel launched several successful series on Netflix, including Jessica Jones, The Defenders, Iron Fist, and Luke Cage, it employed a ______ strategy.

product development

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines spursuing a(n) _____ macro strategy.

product excellence

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

product excellence.

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

product line

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

promotion

A product that is in a high-growth market but has a low market share would be classified as a _______ on the BCG matrix.

question mark

STP refers to

segmentation, targeting, and positioning

STP refers to

segmentation, targeting, and positioning.

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

strengths and weaknesses.

The components of a SWOT analysis are

strengths, weaknesses, opportunities, and threats.

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.

sustainable competitive advantage

After identifying various market segments that her company could pursue, Shannon evaluated each segment's attractiveness based on size, income, and accessibnity. Shannon was involved in

target marketing.

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

the lifetime value of customers.

Heidi 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 the product and the overall market as well as the sales of competitors. Heidi is trying to determine

the product's relative market share.

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 system mismanagement would represent a(n) ____ in a SWOT analysis.

weakness

Disney's My Magic system, which enables visitors to swipe their Magic Band wristbands to get on rides, make purchases, and open their hotel room door is an example of _______ excellence.

Customer

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a _________ growth strategy.

Diversification

Subway is a large chain of franchise sandwich shops. Elgin owns three Subway stores in a large city. At the end of the year, he notes that sales rose from 2 to 5 percent over last year's sales at Stores 1 and 2 but fell 2 percent at Store 3. Based on this information, which of the following is the best course of action as to how Elgin should reward (or punish) his store managers?

He should seek more information about why the stores had different results before making a decision.

In a SWOT analysis, increasing gasoline prices would represent a potential _______ for manufacturers of electric cars.

Opportunity

E-books, in addition to being an alternative product form, provide ______ value creation since they can be downloaded via the Internet immediately when and where they are needed.

Place

In recent years, cellular (mobile) service providers have worked hard to eliminate "dead zones," providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on _______ value creation.

Place

Michael Jordan and Oprah Winfrey are paid huge sums of money by companies for celebrity endorsements. If endorsements by these personalit create a clear understanding among consumers of the companies' products in comparison to competing products, they can help with the firm's ______ strategy.

Positioning

Grace phoned her auto insurance agent to renew her policy. The agent told her about new types of insurance now available-to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a _____ growth strategy.

Product development

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

Product line

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

True

Help Save & Exit Marlena manages the electrical turbine engine division of Dynamic Enterprises Corporation. Her unit has a somewhat different objective than other units, and Marlena makes most decisions independently, without consulting headquarters. It's likely that she manages a strategic business unit.

True

ITunes software is often credited with the success of Apple's iPod MP3 player, because it made 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

Mariena manages the electrical turbine engine division of Dynamic Enterprises Corporation. Her unit has a somewhat different objective than other units, and Marlena makes most decisions independently, without consulting headquarters. It's likely that she manages a strategic business unit.

True

Price should be based on the value that the customer perceives as a good "deal" for the product they receive.

True

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.

True

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

True