Chapter 2: Developing Marketing Strategies and A Market Plan

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

False

True or False: STP refers to segmentation, testing, and promotion.

False

True or False: The components of a SWOT analysis are strengths, weaknesses, opportunities, and tactics.

False

True or False: The strategic planning process always proceeds sequentially through the five steps.

False

True or False: To build a sustainable competitive advantage, companies should focus on a single strategy.

False

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

True

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

True

True or False: Jose manages the electrical turbine engine division of General Electric Corporation. He makes most decisions independently, without consulting headquarters. Jose manages a strategic business unit.

True

True or False: 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

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

True

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are most likely pursuing which macro strategy? a. Customer excellence b. Locational excellence c. Operational excellence d. Product excellence e. Purchase excellence

b. Locational excellence

H&R is a small, local heating and air conditioning business. The local military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ________ growth strategy. a. Product development b. Market development c. Market penetration d. Diversification e. Product proliferation

b. Market development

After defining the business mission, what should a firm do next to develop a marketing plan? a. Conduct an STP analysis b. Perform a situation analysis c. Develop a positioning strategy d. Select a target market e. Implement the four Ps

b. 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? a. Product and value creation b. Price and value capture c. Place and value delivery d. Promotion and value communication e. Positioning and value promotion

c. Place and value delivery

As part of her company's SWOT analysis, Cindy is assessing the company's internal environment, including a. Competition. b. The economy. c. Strengths and weaknesses. d. Demographics. e. Opportunities and threats.

c. Strengths and weaknesses.

All of the following statements regarding marketing metrics are true except a. They can be used at various levels in an organization. b. They assist in comparing results among SBUs. c. They cannot be used to project the future. d. They quantify a trend, dynamic, or characteristic. e. They help a firm make appropriate adjustments to its marketing plan.

c. They cannot be used to project the future.

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.

c. examine its operations and customer relations to identify significant things competitors cannot easily copy.

Angie 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 Angie's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Angie's attitude toward the salon is an example of a. A sustainable competitive advantage. b. A customer retention program. c. An opportunity, in SWOT analysis. d. Customer loyalty. e. The benefits of a locational excellence strategy.

d. Customer loyalty.

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. a. Product development b. Market development c. Market penetration d. Diversification e. Product proliferation

d. Diversification

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in a. A product development growth strategy. b. An operational advantage. c. Opportunities for diversification. d. Increased long-term profits. e. More clearly defined market segments.

d. Increased long-term profits.

To determine how attractive a particular market is using the BCG portfolio analysis, ________ is(are) established as the vertical axis. a. Competitive intensity b. Sales dollars c. Market size d. Market growth rate e. Market profit potential

d. Market growth rate

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. a. Product. b. Price. c. Promotion. d. Place. e. Financial.

d. Place.

Ford Motor Company may be thinking of announcing that it will severely cut back its automobile production. For parts companies supplying Ford its parts, this cut back in production represents a(n) a. Weakness. b. Opportunity. c. Strength. d. Threat. e. Strategic plan.

d. Threat.

Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through a. Promotional excellence b. Product excellence c. Operational excellence d. Global excellence e. Customer excellence

e. Customer excellence

Gerald's Tire Store 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. Gerald's has used this strategy for over 40 years, expanding to 15 outlets. Gerald's Tire Store has created a ________ macro strategy to create and deliver value and to develop a sustainable competitive advantage. a. Supply chain excellence b. Locational excellence c. Product excellence d. Diversification excellence e. Customer excellence

e. Customer excellence

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? a. Ethical b. Cultural c. Political d. Technological e. Demographic

a. Ethical

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. A situation analysis does not accurately predict a firm's strengths. c. Customer excellence cannot be achieved. d. Product excellence is the only true source of a sustainable competitive advantage. e. Innovation is pointless because competitors will develop copycat offerings.

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

When Marvel launched several successful series on Netflix, including Jessica Jones, The Defenders, Iron Fist, and Luke Cage, it employed a ________ strategy. a. Product development b. Customer development c. Market penetration d. Market development e. Diversification

a. Product development

After identifying various market segments that her company could pursue, Linda evaluated each segment's attractiveness based on size, income, and accessibility. Linda was involved in a. Target marketing. b. Situation analysis. c. Diversification. d. Positioning. e. Market penetration estimation.

a. Target marketing.

Which of the following is the third step in the marketing planning process? a. Define the business mission b. Identify and evaluate opportunities c. Evaluate using a matrix d. Implement marketing mix and allocate resources e. Perform situation analysis

b. Identify and evaluate opportunities