Bus 346 - Ch 2

________ 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. a. Market positioning b. Market segmentation c. Allocation d. Value capture e. Target marketing

a. Market positioning Market positioning 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.

Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates ________ excellence. a. customer b. product c. operational d. locational e. place

c. operational Getting customers the merchandise they want, when they want it, in the required quantities, and at a lower price are all elements of operational excellence.

The first objective in the evaluate performance phase of the marketing planning process is to a. adjust advertising allocations. b. find ways to cut costs. c. review implementation programs and results using metrics. d. consider changing the target market. e. determine whether to raise or lower prices.

c. review implementation programs and results using metrics.

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities a. where value-based pricing can be ignored. b. where customer excellence can be substituted for product excellence. c. that build on their strengths relative to those of their competitors. d. in international markets. e. for diversification.

c. that build on their strengths relative to those of their competitors.

If a price is set too high, it will not generate much ________; if it is set too low, it may result in ________. a. interest; less value to the customer b. place value; more customer defections c. volume; lower margins and profits d. promotional value; less customer value e. operational opportunity; less product value

c. volume; lower margins and profits

In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbro be categorized? a. Opportunity b. Strength c. Weakness d. Threat e. Segment

d. Threat

Which of the following is LEAST likely to provide a sustainable competitive advantage? a. using patented technology b. achieving high levels of customer satisfaction c. having a well-known brand name d. lowering prices e. creating an efficient supply chain

d. lowering prices

Taking steps to encourage customer loyalty is one way to a. develop new pricing strategies. b. improve supply chain effectiveness. c. test new products. d. sustain an advantage over competitors. e. promote efficiency.

d. sustain an advantage over competitors.

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. conduct a SWOT analysis. e. divide the marketplace into subgroups

e. divide the marketplace into subgroups The first stage of an STP analysis is segmentation, which involves dividing the market into subgroups. Business mission development and SWOT analysis take place before STP analysis starts, and targeting and positioning are later stages in STP analysis.

For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates a. strengths. b. strategic plans. c. weaknesses. d. threats. e. opportunities

e. opportunities

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity? a. Recent consumer studies have indicated that Chinese consumers prefer American cars. b. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. c. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. d. 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. e. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

a. Recent consumer studies have indicated that Chinese consumers prefer American cars.

A competitive advantage based on location is often sustainable because a. it is not easily duplicated. b. the Internet has diminished the importance of brick and mortar stores. c. few marketers are aware of its importance yet. d. real estate prices have been dropping. e. mobile marketing has not yet proven its value for most customers.

a. it is not easily duplicated. If you have a wide variety of locations in prime areas, that's difficult (and often expensive) for a competitor to duplicate. While some of the other answers are true statements, they don't explain why a locational excellence strategy tends to be sustainable.

Which of the following is NOT one of the four major growth strategies marketers typically use? a. segment development b. product development c. market penetration d. diversification e. market development

a. segment development

Value creation through place decisions for a consumer product involves a. putting the product in the front of the store. b. making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to. c. pricing products differently at different stores. d. focusing exclusively on Internet sales to reduce supply chain costs. e. designing creative displays to capture consumers' attention.

b. making sure the product is available in the stores where customers will want to find it, and that it is always in stock so they can buy it when they want to.

A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. The manager will probably next review the company's a. results for other product lines, to see how important diet products are to the firm. b. brand awareness study, to assess national levels of awareness. c. implementation programs, to see if the promotion was handled consistently in the different stores. d. analysis of national trends in vitamins and herbal supplements, to help predict future sales. e. financial statements, to investigate current and past profits.

c. implementation programs, to see if the promotion was handled consistently in the different stores. The manager should seek to understand the differences in implementation programs between the different stores. Perhaps she will find that the successful stores did things the other stores didn't. While studies of national trends might offer interesting and useful information for the overall planning process, to understand the difference between stores she needs to focus at a local level

Most banks now have customer relationship software which, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ___________________ growth strategy. a. market development b. product development c. market penetration d. diversification e. product proliferation

c. market penetration Selling more existing services to existing customers is a market penetration growth strategy. If these were newly developed services, this would be a product development example.

Delta Airlines is among the companies experimenting with selling products and services on its 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? a. product and value creation b. promotion and value communication c. price and value capture d. positioning and value promotion e. place and value delivery

e. place and value delivery Place is the element of the marketing mix that relates to making sure the firm's offerings are available to customers where and when they want them. By allowing customers to make flight reservations inside Facebook, Delta is increasing convenience for consumers by allowing them to make the reservations without leaving Facebook, thus delivering value through Place.

Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from two to five percent over last year's sales at Stores 1 and 2 but fell two percent at Store 3. Based on this information, how should Marcia reward (or punish) her store managers? a. She should ignore the sales data; this is not an appropriate marketing metric. b. She should review at least ten years of sales data about her stores' performance before making a decision. c. She should give bonuses to the managers of Stores 1 and 2 and put the Store 3 manager on probation. d. She should give each manager a raise, tied to the store results. e. She should seek more information about why the stores had different results before making a decision.

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