Marketing Ch. 1 quiz, in-class, Ch. 1-5 textbook examples, Ch.5 quiz

Culture, demographics, social issues, technological advances, economic situations, and the political/regulatory environment are all factors that make up which of the following frameworks of analysis?

Macroenvironmental factors

In-class problem: When the PSOBA formed a partnership with Wieden+Kennedy to teach MBA classes to the company employees on their premises, this was what type of growth strategy? -product development -market development -market penetration -diversification

Market development (not diversification since its a new product and diversification is an existing product)

When Starbucks expands into a new country, what growth strategy is the company pursuing? -market development -product development -market penetration -related diversification -unrelated diversification

Market development Explanation: When Starbucks moves into a new country, it is selling its current products in a new market, which is market development. The company has used this growth strategy extensively, with stores in many countries and cities around the world.

____________ is (are) at the center of the marketing environment.

Consumers

Advertising guidelines stating that companies cannot link unhealthy foods with cartoon and celebrity figures is geared toward which social trend?

Health and Wellness Concerns

The case explains that Starbucks has far more retail outlets than does Dunkin' Donuts, and it is sometimes said that in many cities you can find a Starbucks on almost every corner. What type of macro strategy for Starbucks does this difference between the two companies represent? -product excellence -customer excellence -operational excellence -locational excellence -financial excellence

Locational excellence Explanation: By selling Starbucks coffee in so many locations, Starbucks makes it easy for customers to find a store. This is locational excellence, which refers to having good physical locations or a strong Internet presence. Locational excellence can create a sustainable competitive advantage because it can be difficult and expensive for a competitor to match; imagine the cost if Dunkin' Donuts tried to add almost 20,000 locations in order to match Starbucks!

In Maine, a McDonalds serves lobster rolls while no where else does. This is an example of the effects of

regional culture

Which of the following is not a demographic listed in your text that would typically be used to identify consumer markets?

religion

Ford Motor Company engages in partnerships with its suppliers, component part makers, unions, transport companies, and dealerships—collectively known as its

corporate partners

Broadly defined, _____ is (are) the shared meanings, beliefs, morals, values, and customs of a group of people.

culture

Market penetration

current products and services, current markets

Market development

current products and services, new markets

The case describes local initiatives used by Dunkin' Donuts to try to build customer loyalty. Which of the macro strategies to build sustainable competitive advantage is Dunkin' Donuts pursuing? -product excellence -locational excellence -customer excellence -loyalty excellence -operational excellence

Customer excellence Explanation: Dunkin' Donuts is trying to build loyalty by offering local partnerships with sports teams and through other measures intended to bring it closer to its customers. Customer excellence is the macro strategy that deals with loyalty and customer retention. ("Loyalty excellence" is not one of the four macro strategies.)

Product development

New products and services, current markets

Diversification

New products and services, new markets

In-class problem: When Tillamook introduced chipotle-flavored cheese in the market, what type of growth strategy was it? -market development -market penetration -product development -diversification

Product development

As the case explains, at one time customers were likely to buy their donuts at Dunkin' Donuts and their coffee at Starbucks. However, several years ago Dunkin' Donuts added espresso drinks to its menu. If Dunkin' Donuts adopted this strategy in order to get its donut customers to spend their coffee dollars at Dunkin' Donuts instead of at Starbucks, what type of growth strategy does this change represent? -product excellence -diversification -market penetration -market development -product development

Product development Explanation: The question proposes that Dunkin' Donuts wanted to sell its new espresso drinks to its current customer segment. Selling new products to current customers is a product development growth strategy. If instead Dunkin' Donuts had intended to attract an entirely different market segment to its stores by selling espresso drinks, you could argue that this strategy represented related diversification: a new (but related) product sold to a new market segment. (Product excellence is a macro strategy, not a growth strategy.)

Recently, a Domino's pizza franchise in southwest Ohio made the strategic decision to stay open for 24 hours a day. The manager, Steve Martin, made this decision about a month ago in response to increased demand for Domino's pizza. Other Domino's franchise owners are now considering adopting a similar strategy. In this activity, you will categorize a set of statements regarding activities in the internal and external environments as they relate to Domino's pizza and a potential initiative of staying open 24 hours a day. These statements will identify either a strength, weakness, opportunity, or threat. Strength: ___________________ ___________________ Weakness: ___________________ ___________________ Opportunity ___________________ ___________________ Threat: ___________________ ___________________ Staffing, Strong Brand Name, Late-Night Eating, Health, Inventory Management, Demand, Excellent Location, Competitors

Strength: Strong Brand Name Excellent Location Weakness: Staffing Inventory Management Opportunity: Demand Late-Night Eating Threat: Health Competitors

As noted in the case, the retail coffee market is crowded with large players (like Starbucks, Dunkin' Donuts, and McDonald's) and also smaller independent chains with a more "hip" image. Into which SWOT analysis category does this intensity of competition fit? -threat -strength -weakness -opportunity -situation

Threat Explanation: The existence of intense competition is a negative factor, and it is external to the company. An external negative factor is a threat in SWOT analysis.

The primary strength of Pepsi is the manufacture, distribution, and promotion of carbonated beverages. These describe which factor of a Pepsi consumer's immediate environment?

company capabilities

Which of the following frameworks for analysis is comprised of a company's capabilities, competitors, and corporate partners?

immediate environment

Growth Strategies:

market penetration, market development, product development, diversification

Strategic Business Unit (SBU)

or product level line of the firm

Netflix uses __________ analytics to suggest which movies we should watch as well as to develop new content that it is confident we will like.

predictive