BUS2 - 130 Intro to Marketing (Chapter 2)

A company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices. True False

True

An organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create. True False

True

Most firms begin the strategic planning process by developing detailed marketing and departmental plans that support a company-wide plan. True False

False

Marcos started his food truck business 10 years ago with one older model truck he built from the ground up. Through hard work, good food, and a positive attitude his business thrived. His food was not the cheapest around but it was the best. Marcos's company, Meals on Wheels, now ran eight food trucks in the metropolitan area and Marcos still wanted to expand. His plans include expansion into several other major cities but he wants to change his mission statement from the one he came up with years ago when he was starting out. The old mission statement, Fast food to your door, simply did not fit his vision for his company as a mobile restaurant serving great food of all types to clients with limited time for lunch. Marcos' business doesn't need a marketing-oriented mission statement since the business model is simplistic. (T or F?) True False

False

The four Ps model has been challenged because it omits or underemphasizes important activities such as services. It's also been criticized for taking a seller's, rather than a buyer's, viewpoint. The more recent four As framework complements the traditional model and includes ________. acceptability, affordability, accessibility, and awareness adaptability, affordability, accessibility, and awareness adaptability, affordability, availability, and awareness acceptability, affordability, accessibility, and aptitude adaptability, affordability, availability, and aptitude

acceptability, affordability, accessibility, and awareness

In a SWOT analysis, which of the following would most likely be considered a strength of a company? higher prices of the company's products resulting from inflation a favorable economic climate that encourages consumption an improvement in the company's production technology the exit of a competitor from the market an increase in consumer interest in the company's products

an improvement in the company's production technology

The marketing concept suggests that the company strategy should revolve around ________ and building profitable relationships with important consumer groups. generating efficiencies creating customer value identifying the firm's weaknesses cutting costs developing new products

creating customer value

________ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy. Diversification Market segmentation Downsizing Product line extension Vertical integration

Downsizing

Which of these might be a reason for a firm to downsize? The high profits will quickly attract competition. The product line should not be extended. The BCG matrix classified the SBU incorrectly. The products are selling too quickly. The firm has grown too fast.

The firm has grown too fast.

Marcos started his food truck business 10 years ago with one older model truck he built from the ground up. Through hard work, good food, and a positive attitude his business thrived. His food was not the cheapest around but it was the best. Marcos's company, Meals on Wheels, now ran eight food trucks in the metropolitan area and Marcos still wanted to expand. His plans include expansion into several other major cities but he wants to change his mission statement from the one he came up with years ago when he was starting out. The old mission statement, Fast food to your door, simply did not fit his vision for his company as a mobile restaurant serving great food of all types to clients with limited time for lunch. What is Marcos attempting to deliver that should be defined in his mission statement? low cost meals on wheels a great food experience low prices food convenience

a great food experience

Which of the following best describes positioning? differentiating a market offering to create superior customer value identifying consumer needs and creating a product to meet those needs evaluating each market segment's attractiveness and selecting one or more segments to enter dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products

arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products

Which of the following best describes market segmentation? differentiating a market offering to create superior customer value evaluating each market segment's attractiveness and selecting one or more segments to enter identifying consumer needs and creating a product to meet those needs dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors

In a SWOT analysis, which of the following would be considered a weakness of a company? inflation that leads to higher prices of the company's products an unfavorable economic climate that discourages consumption obsolete technologies used by the company the exit of a competitor from the market falling consumer interest in its products

obsolete technologies used by the company

In a SWOT analysis, ________ refer to favorable factors or trends in the external environment that a company may be able to exploit to its advantage. opportunities strengths strategies controls threats

opportunities

Ford Motor Company issuing a recall that requires customers to schedule appointments with car dealerships to repair faulty igniters would have the greatest impact on the ________ component of its marketing mix. place promotion price packaging product

place

Which component of the marketing mix refers to the goods-and-services combination a company offers to its target market? promotion place position price product

product

A company should target market segments in which it can ________. quickly harvest the profits and move on to the next segment sell the most products build the greatest brand awareness and survive until it becomes profitable profitably generate the greatest customer value and sustain it over time compete against the fewest number of firms

profitably generate the greatest customer value and sustain it over time

Traxx is a newly emerging shoe manufacturing company. After extensive market research, Traxx divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, Traxx has engaged in market ________. penetration segmentation development positioning diversification

segmentation

CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example, it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis? strength barrier to entry weakness threat resources

strength

In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance. strengths threats opportunities strategies weaknesses

threats

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company? to create the best possible products and sell them at the best possible prices to give customers the complexion they dream about by providing products suited to their needs to sell hypoallergenic cosmetics products made only from the finest organic ingredients to become a market leader in every cosmetics product category to increase our market share in the cosmetics segment and increase profit margins

to give customers the complexion they dream about by providing products suited to their needs

________ refers to the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. Market mixing Market diversification Market targeting Market positioning Market divesting

Market targeting

Marcos started his food truck business 10 years ago with one older model truck he built from the ground up. Through hard work, good food, and a positive attitude his business thrived. His food was not the cheapest around but it was the best. Marcos's company, Meals on Wheels, now ran eight food trucks in the metropolitan area and Marcos still wanted to expand. His plans include expansion into several other major cities but he wants to change his mission statement from the one he came up with years ago when he was starting out. The old mission statement, Fast food to your door, simply did not fit his vision for his company as a mobile restaurant serving great food of all types to clients with limited time for lunch. Which of these mission statements that Marcos is considering is more marketing oriented? Good food at a reasonable price. Good food at a cheap price. Mobile eats to save time. Food fast and hot. Food matters, that's why we bring the best to you.

Food matters, that's why we bring the best to you.

Ferrari sells only 2,200 of its very high-performance cars in North America each year at very high prices. The company is appealing to a specific ________. market segment value chain market position value delivery network business portfolio

market segment

A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment. strategic plan marketing strategy mission statement market portfolio marketing objective

mission statement