MKTG320: Chapter 2 Quiz McGrawHill

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

a.)it is not easily duplicated.

Suppose your university made a sizable investment in its career services—additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students find jobs. This investment would enhance the university's ________ in an attempt to create value for students and recent graduates. a.)product value b.)locational excellence strategy c.)segmentation strategy d.)place strategy e.)diversification strategy

a.)product value

Introducing newly developed products or services to a market segment the company is not currently serving is called a.)market penetration. b.)diversification. c.)product proliferation. d.)product development. e.)market development.

b.)diversification.

Manufacturers that use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this system mismanagement would represent a(n) ________ in a SWOT analysis. a.)strength b.)weakness c.)metric d.)threat e.)opportunity

b.)weakness

Which of the following statements about marketing metrics is true? a.)They can only be used at one level in an organization. b.)They are only useful for marketing promotions. c.)They never quantify trends or characteristics. d.)They assist in comparing results among SBUs. e.)They cannot help a firm adjust its marketing plan.

d.)They assist in comparing results among SBUs.

Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a "quick response" system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established a.)a diversification growth strategy. b.)a related diversification opportunity. c.)customer loyalty. d.)a sustainable competitive advantage e.)locational excellence.

d.)a sustainable competitive advantage

Starbucks carefully crafts its offerings and advertising message, and it strategically sets prices and selects locations to appeal to its target market. These efforts represent Starbucks' a.)market segmentation. b.)target marketing. c.)customer excellence strategy. d.)positioning strategy. e.)value-based promotions.

d.)positioning strategy.

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.)consider changing the target market. d.)review implementation programs and results using metrics. e.)determine whether to raise or lower prices.

d.)review implementation programs and results using metrics.

Value creation through place decisions for a consumer product involves a.)focusing exclusively on Internet sales to reduce supply chain costs. b.)pricing products differently at different stores. c.)designing creative displays to capture consumers' attention. d.)putting the product in the front of the store. e.)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.

e.)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.

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

e.)market growth rate

The four overarching strategies to create and deliver value and to develop sustainable competitive advantages include locational, customer, operational and _______ excellence. a.)planning b.)pricing c.)packaging d.)promotion e.)product

e.)product

For years, when considering new products, marketers at Bennett's Coffee and Tea asked themselves, "What would Kelsey think?" Kelsey was a fictional character representing 25- to 50-year-old educated, upper-income women who rarely watched television but did a lot of reading. "Kelsey" represented Bennett's primary a.)sustainable competitive advantage. b.)mission statement. c.)positioning. d.)SBU. e.)target market segment.

e.)target market segment.

________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what a product does or represents in comparison with competing products. a.)Positioning b.)A customer excellence strategy c.)Market segmentation d.)Targeting e.)A sustainable competitive advantage

a.)Positioning

Avery's, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in a.)a sustainable competitive advantage. b.)product design excellence. c.)mission statement satisfaction. d.)producer excellence. e.)sustainable price decreases.

a.)a sustainable competitive advantage.

Hunter Corporation's mission statement a.)identifies its various market segments and the advertising approaches to each. b.)explains how the company plans to change to a just-in-time manufacturing process. c.)is a broad description of a firm's objectives and the scope of activities it plans to undertake. d.)describes the specific actions Hunter Corporation will take to achieve its goal. e.)evaluates the performance of its Board of Directors.

c.)is a broad description of a firm's objectives and the scope of activities it plans to undertake.

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

e.)increased long-term profits.

Subway is a large chain of franchise sandwich shops. Elgin owns three Subway stores in a large city. At the end of the year, he notes that sales rose from 2 to 5 percent over last year's sales at Stores 1 and 2 but fell 2 percent at Store 3. Based on this information, which of the following is the best course of action as to how Elgin should reward (or punish) his store managers? a.)He should give bonuses to the managers of Stores 1 and 2 and put the Store 3 manager on probation. b.)He should give each manager a raise, tied to the store results. c.)He should seek more information about why the stores had different results before making a decision d.)He should review at least 10 years of sales data about her stores' performance before making a decision. e.)He should ignore the sales data; they are not an appropriate marketing metric.

c.)He should seek more information about why the stores had different results before making a decision

Woods, Inc. is a small, local heating and air conditioning business. The local military base is a potential source of growth, and Woods already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. Woods is considering a ________ growth strategy. a.)product proliferation b.)product development c.)market development d.)market penetration e.)diversification

c.)market development

In a SWOT analysis, increasing gasoline prices would represent a potential ________ for manufacturers of electric cars. a.)operational advantage b.)weakness c.)opportunity d.)locational advantage e.)threat

c.)opportunity

Marvel was among the first content providers to launch dedicated series on Netflix, such as Jessica Jones, The Defenders, Iron Fist, and Luke Cage. It then decided to create a new channel for getting new offerings to consumers. The company was pursuing a(n) ________ strategy. a.)operational excellence b.)market development c.)product development d.)market penetration e.)customer excellence

c.)product development