Chapter 2 Marketing

The degree of centralization falls under organizing the market unit—a major part of managing marketing implementation. a. True b. False

a. True

A marketing strategy is stating what is to be accomplished through marketing activities using clear language. It should be measurable. a. True b. False

b. False

It is a year later. Jessica's manager decided that the company would develop a salsa business. Jessica has been in a flurry of activity since then. Not only did the company have to invest in a building and equipment, but she has had to develop marketing strategies for the new salsa business. The marketing strategies are now complete and ready to be put into action. Jessica was placed in charge of marketing implementation. She has spent several months organizing the marketing unit, training employees, coordinating the marketing staff, and communicating the goals and objectives of the strategy. Refer to Scenario 2.4. What is next step Jessica should take to implement the marketing strategy? a. Undertake a SWOT analysis. b. Evaluate the marketing strategy. c. Create the marketing mix. d. Establish a timetable for implementation. e. Establish performance standards.

d. Establish a timetable for implementation.

How does a sustainable competitive advantage differ from a competitive advantage? a. A sustainable competitive advantage lasts forever. b. A sustainable competitive advantage is when a company matches a core competency to opportunities in the marketplace. c. A sustainable competitive advantage has an environmental focus. d. A sustainable competitive advantage occurs when the company takes advantage of temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market. e. A sustainable competitive advantage is one that competitors cannot copy in the immediate future

e. A sustainable competitive advantage is one that competitors cannot copy in the immediate future

Which of the following is the final step in establishing an implementation timetable? a. separating the activities to be performed in sequence from those to be performed simultaneously b. organizing the activities in the proper order c. determining the time required to complete each activity d. identifying the activities to be performed e. assigning responsibility for completing each activity to one or more employees, teams, or managers

e. assigning responsibility for completing each activity to one or more employees, teams, or managers

Which of the following is likely the most important decision a company makes during the strategic planning process? a. evaluating marketing performance b. creating the marketing mix c. developing a marketing strategy d. conducting a SWOT analysis e. choosing a target market

e. choosing a target market

Margie noticed that sales of her company's newest bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who ride long distance. Refer to Scenario 2.6. At what stage of the strategic planning process is Margie? a. evaluating marketing strategies b. developing a marketing plan c. managing marketing implementation d. developing marketing strategies e. assessing organizational resources and opportunities

a. evaluating marketing strategies

Jessica is working on a SWOT analysis of a local Mexican restaurant Tres Tortillas in Flagstaff. She writes down that the organization has high customer loyalty, resources for expansion, and strong management. She also writes that the market for salsa products is strong, and more people are eating out. On the other hand, one major complaint leveled against the restaurant is that its prices are high, and other casual-dining restaurants with less expensive menu offerings are opening in the city. Still, Jessica believes the restaurant's talented and well-known chef provides it with an advantage other restaurants do not have. Refer to Scenario 2.1. Which of the following characteristics of the Mexican restaurant represents an opportunity? a. greater demand for salsa products b. customer loyalty c. talented and well-known chef d. strong management e. strong organizational resources

a. greater demand for salsa products

Margie noticed that sales of her company's newest bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who ride long distance. Refer to Scenario 2.6. What method of analysis is Margie using? a. sales analysis b. strategic analysis c. performance comparison d. marketing cost analysis e. performance assessment

a. sales analysis

Why might a marketer want to engage in marketing cost analysis? a. to allocate the firm's marketing resources better in the future b. to evaluate the firm's strengths and weaknesses c. to reflect the market's reaction to the marketing mix d. to help outline how the company will achieve its objectives e. to determine how much the company will charge customers

a. to allocate the firm's marketing resources better in the future

Conducting a SWOT analysis comes immediately before the establishment of corporate and business-unit strategies. a. True b. False

b. False

The marketing implementation section of the marketing plan outlines how the company will achieve its objectives. a. True b. False

b. False

Procter & Gamble's Tide laundry detergent has a predominant share of the detergent market in the United States. It makes $4.5 billion in sales of this detergent brand. However, the detergent market has reached market saturation in the United States. With this information, what type of product is Tide based upon the Boston Consulting Group's market growth/market share matrix? a. star b. cash cow c. pig d. dog e. question mark

b. cash cow

Which of the following is a disadvantage of being a first-mover in the market? a. high switching costs consumers may experience b. large outlays associated with creating a new product c. costs of marketing plan implementation d. the chance that products will be protected by patents e. inability to accurately predict performance standards

b. large outlays associated with creating a new product

Jessica continues to work on the marketing strategy for Tres Tortillas. Tres Tortillas was successful in selling 16 ounce jars of salsa in its restaurant. In fact, demand for the jars of salsa is so high that Jessica believes Tres Tortillas should try to expand and start selling in stores. She believes Tres Tortillas salsa has the potential for enormous growth, perhaps even more so than the actual restaurant. Refer to Scenario 2.3. Jessica's manager is skeptical. Such an investment would require a manufacturing facility, a larger marketing budget, and salespeople who would be able to get the salsa onto store shelves. However, Jessica maintains that Tres Tortilla's secret salsa recipe is a core competency. The market for salsa is also strong. She believes this provides Tres Tortillas with a chance to match its core competency to market opportunities, otherwise known as a(n) ___________________. a. strategic window b. late-mover advantage c. competitive advantage

c. competitive advantage

Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing activities he needs to take to spread awareness of his company and attract consumers to his business. Refer to Scenario 2.5. Paul would like his sales for next month to reach $15,000. This is an example of a _______________. a. business-unit goal b. strategic plan c. performance standard d. marketing strategy e. sales analysis

c. performance standard

Jessica's manager believes that Tres Tortillas can gain an advantage over competing Mexican restaurants in the area by capitalizing on the growing demand for salsa. He believes the firm's top secret salsa recipe could be the key to expanding into another market niche. The manager has proposed developing a line of its salsas in 16-oz jars to sell at its restaurant. This way its loyal customers could buy its salsa outright and serve it at home. Jessica has been tasked with the determining the feasibility of this strategy. Refer to Scenario 2.2. What type of competitive growth strategy is Jessica's manager discussing? a. market penetration b. market development c. product development d. diversification e. product penetration

c. product development

Google has written down the following: "to organize the world's information and make it universally accessible and useful." This is most likely a part of Google's ___________________. a. marketing plan b. corporate strategy c. strengths d. mission statement e. marketing objective

d. mission statement

Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing activities he needs to take to spread awareness of his company and attract consumers to his business. Refer to Scenario 2.5. Paul is at the stage of his marketing plan where he needs to gather information about his firm's situation with respect to the market. A major part of this is his assessment of target markets. Which section is he about to write? a. SWOT analysis b. marketing strategies c. marketing objectives d. executive summary e. environmental analysis

e. environmental analysis

A ____________ states what is to be accomplished through marketing activities.

marketing objective

Marty works at an organization with a clear chain of command. The major decisions are relegated to top managers. Marty and his co-workers have strict performance standards. Managers at his organization monitor the work of employees to make sure they are staying on track. This is an example of a __________ organization

centralized

Margie noticed that sales of her company's newest bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who ride long distance. Refer to Scenario 2.6. Margie believes this is the optimal time to seize upon this opportunity. Through the bike's patented design, her company has capabilities that fit the unique demands of this growing market. Margie wants to capitalize on this opportunity before these market trends have a chance to change. This period for Margie's firm is known as a ______. a. core competency b. product opportunity c. competitive advantage d. strategic window e. sales boost

d. strategic window

A ________ corporate is a written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies.

marketing plan

Through the process of __________, a company establishes an organizational mission and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy.

strategic planning