Chapter 2: Principles of Marketing

A firm can begin to implement the marketing mix immediately after which step?

After it has finished segmentation, targeting, and positioning

What factors that affect a sales manager's performance are outside the manager's control? (Choose every correct answer.)

An economic downturn Successful competition

Which scenario is an example of loyalty to a company in a consumer's daily life?

Continuing to shop at Dunkin' Donuts even if Starbucks opens more convenient locations and offers slightly lower prices.

True or False: Firms that use multiple strategies to build a sustainable competitive advantage have difficulty maintaining long-term success.

False

True or False: The purpose of a marketing strategy is to maximize short-term profits.

False

During which step of the marketing plan do marketers make important decisions about how they will allocate their scarce resources to their various products and services?

Implement marketing mix

A portfolio analysis involves which of the following? (Choose every correct answer.)

Management allocates its resources to products with the greatest potential to be profitable. Management evaluates the firm's various products and businesses.

Which of the following are included in the four major growth strategies? (Check all that apply.)

Market penetration Market development Product development

Which of the following is NOT an example of customer loyalty?

Only purchasing organic products

Which macro strategy is achieved in part through efficient supply chain management?

Operational excellence

______ is achieved through efficient operations, excellent supply chain management, and strong relationships with suppliers.

Operational excellence

Step 2 of a marketing plan involves which of the following?

Performing a situation analysis using SWOT

Locational excellence is particularly important for which type of firm?

Retailers

Some commonly used financial performance metrics include which of the following? (Choose every correct answer.)

Sales revenue Profits

STP includes which of the following? (Choose every correct answer.)

Segmentation Positioning

Firms achieve operational excellence through which of the following? (Choose every correct answer.)

Strong relationships with suppliers Good supply chain management Efficient operations

What does the term strengths refer to in SWOT analysis?

The positive internal attributes of a firm

Which statement about strategic planning is true?

The process can move back and forth between steps, depending on the situation.

What are the four components of a SWOT analysis? (Choose every correct answer.)

Threats Strengths Opportunities Weaknesses

What are the main purposes of metrics during Step 5? (Choose every correct answer.)

To explain why things happened To predict what will happen

What is the purpose of evaluating performance during Step 5?

To identify and explain performance above and below expectations

Why do firms use metrics in Step 5 of the marketing plan? (Choose every correct answer.)

To make it possible to compare results across regions, product lines, and time periods To make appropriate adjustments to performance

Which of the following is LEAST effective when building a sustainable competitive advantage?

Using only a single strategy

Which of the following is the primary question a mission statement should answer?

What type of business are we?

What are reasons why strategic planning may NOT occur sequentially? (Choose every correct answer.)

When a situation analysis necessitates that the mission statement be revised When new logical alternatives arise When the implementation plan cannot move forward because there are too few resources

A marketing plan includes all of the following EXCEPT ______.

a plan on how to pitch investors

A company that has successfully built a wall around its position in the market, making it hard for competitors outside the wall to enter the market and compete, is an example of a company that has established ______.

competitive advantage

A mission statement ______.

defines the scope of activities a firm plans to undertake

Step 5 in the marketing plan process is when a firm ______ the outcome of the strategy and implementation process.

evaluates

Step 5 of the marketing plan involves ______.

evaluating the results of the strategy and implementation program

A competitive advantage based on location ______.

is sustainable when real estate is difficult or expensive to obtain

A sustainable competitive advantage ______.

is when a firm does consistently better than its competitors and it is not easily copied

A strategy that employs existing products or services to reach new market segments is called ______.

market development

Firms consider pursuing various ______ as part of their overall growth strategies.

market segments

The macro strategies for developing customer value include each of the following EXCEPT ______ excellence.

marketing

A ______ is a written document that includes the current marketing situation, specified objectives and strategies, action programs, and projected income statements.

marketing plan

A ______ identifies a firm's target markets, a related marketing mix, and the bases upon which the firm plans to build a sustainable competitive advantage.

marketing strategy

A metric is a ______ that quantifies a trend, dynamic, or characteristic.

measuring system

Revenues and profits are commonly used ______ to assess performance.

metrics

Product excellence ______.

occurs by having products with high perceived value and effective branding and positioning

Match each macro strategy for developing customer value with the specific actions that organizations can take to achieve it. Instructions

operational excellence: excellent supply chain and human resource management product excellence: effective branding and positioning locational excellence: high density of stores and successful internet presence

A market ______ growth strategy focuses on increasing sales of the firm's current products to its current target markets.

penetration

In Stage 5, the purpose of a(n)____________________evaluation is to figure out problem areas.

performance

In ______ analysis, management evaluates the firm's various products and businesses, then allocates resources according to potential profit outlook.

portfolio

Firms that achieve a sustainable competitive advantage through their merchandise and service offerings, and through effective branding and positioning, are doing so using ______ excellence.

product

The ______ strategy offers a new product or service to a firm's current target market.

product development

Which of the following is one of the macro strategies for developing customer value through effective branding and positioning?

product excellence

In a SWOT analysis, ______ refer to the positive internal attributes of the firm.

strengths

The "T" in STP stands for

targeting