Strategic Marketing Final Exam

Which of these is NOT one of the recommended ways to recover customer goodwill?

be sure to resolve every situation to the customer's satisfaction, regardless of the cost

A(n) ________ marketer discovers solutions customers did not ask for but to which they enthusiastically respond.

creative

When the total market expands, the market ________ usually gains the most.

leader?

Which of the following is an example of a private carrier?

BEL Inc. manufactures parts for automobiles and transports its products to customers itself

________ may play a particularly important role in retailers' product decisions because they have the greatest impact on where households choose to shop and how they view a particular retailer.

Destination categories

Which of these products would potentially benefit the most from market testing?

*An all-new model of Chevrolet pickup truck*

When Varidesk responded to health concerns about the long-term effects of sitting by creating variable desks that allow people to change from sitting to standing throughout the day, it used which model of idea generation?

*Top-down*

With a product concept that has been deemed technologically feasible and desirable from the target customer's point of view, the ________ stage judges whether the concept has commercial viability.

*concept validation*

Which of the following products normally undergo alpha and beta testing?

*expensive industrial goods*

Rachel and Josh are on vacation in Hawaii. When they arrived at the hotel, they were offered chilled juice. Their check-in formalities were handled by the staff. When they entered their room, they saw that chocolates had been placed on the pillows and a flower arrangement on the table. These are examples of customer ________.

touch points

1) Today's holistic marketers view the entire supply chain as a ________.

value network

in addition to identifying the target market and describing the market offering, the business model design stage details the offering's ________.

value proposition

Intrapreneurs working on new product designs and plans are mostly to be found working in ________.

venture teams

In addition to creating offerings that are desirable to customers and technologically feasible, the stage-gate framework aims to create offerings that are ________.

viable (creating value for the company and its collaborators)

How was Kia able to successfully enter the highly competitive U.S. automobile market?

with low-cost, high-quality cars reliable enough to carry 10-year, 100,000-mile warranties

why does General Mills prefer to launch new products in 25 percent of the country?

It's an area too large for rivals to disrupt

Which of these is NOT one of the competitive challenges facing today's wholesalers?

Lack of transportation options

Which of these is NOT one of the quadrants in the Product-Market Growth framework?

Market retrenchment

Which product strategy move have retailers such as Gymboree and Hot Topic made in recent years to reach their target markets more successfully?

Sliced their markets into ever-finer segments, with specific product lines aimed at these narrow segments

Which of these could explain a situation where the percentage of recent users of a particular product is significantly lower than the percentage of shoppers who have tried the product?

Something might be wrong with the product that discourages repeat buying

Which one of these retailers carries the broadest range of products?

Supermarket?

________ includes strategically procuring the right inputs (raw materials, components, and capital equipment), converting them efficiently into finished products, and dispatching them to the final destinations.

Supply chain management

brokers, manufacturers' representatives, and sales agents search for customers and may negotiate on the producer's behalf but do not take title to the goods. This group of intermediaries are called collectively known as ________.

agents

Consumers who have "shortlisted" the most favorable-looking offerings currently under consideration have reached the ________ stage of the customer acquisition funnel

appeal

The ________ phase reflects the fact that although customers might become aware of multiple offerings, they do not actively consider all of them.

appeal

Today's consumers can choose whether and how they want to engage with company marketing, a phenomenon known as ________.

customer empowerment

Which of these is a true statement about the customer acquisition funnel?

customers do not necessarily go through all five stages

Some companies believe that interviewing customers does not always help to create better, or new, products. This belief rests on which of the following ideas?

customers often focus on their current needs, which can prevent breakthrough, forward thinking innovation

The maturity stage of the product life cycle can be divided into three phases: growth, stability, and ________.

decaying maturity

Which of these is a key to effectively employing activity-based costing?

defining and judging "activities" properly

which of these is NOT one of the risks that wholesalers take over from manufacturers by taking title to goods?

design flaws

Before a new-offering team transitions to the business-model design stage, it should successfully pass the ________ stages

idea generation and concept development

If a marketer of carpet cleaners advertised that the beginning of Daylight-Saving Time would be a great time to "spring ahead with fresher carpets," it would be using which strategy to grow sales?

identifying new occasions for usage

_______ involves entering new markets by tweaking products for new customers, using variations on a core product to stay one step ahead of the market, and creating interim solutions for industry-wide problems.

incremental innovation

Which of these is one of the steps manufacturers of national brands are taking to fight back against the rise of private labels?

investing in strong pull advertising

Which of these is true about the selective distribution strategy?

it might result in some retailers competing for the same customers

________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable.

position

If the shipper owns its own truck or air fleet, it becomes a ________ carrier.

private

Regarding innovation and imitation, Theodore Levitt argues that ________.

product imitation might be as profitable as product innovation

Which of the following activities is a reverse-flow channel?

product recycling

What is the common name for the Ansoff planning matrix?

product-market growth framework

Which of the following is an example of a zero-level channel?

A company takes online orders from customers and ships the products to them

________ testing of a prototype takes place within the firm to see how it performs in different applications

Alpha

Which of these would NOT be considered a brand community?

CVS customers in the northeast

What effect do recessions have on private-label sales?

They increase private-label sales, and some consumers never go back to national brands

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city.

According to the chapter, which of these techniques does Deere & Company use to maintain its superb record of customer loyalty?

Using retired employees to interview defectors and customers

Which of these is NOT one of the differences between wholesalers and retailers?

Wholesalers are less concerned with long-term customer relationships

Which of the following is true for retailing?

Wholesalers are only considered to be retailers if they are selling to final consumers.

What two intermediaries are typically found in a dual-level channel?

a wholesaler and a retailer

A wise response to channel conflict is to ________.

acknowledge that conflict will always exist and try to manage it better

Oliver, a company that produces different types of olive oil, launched a promotional campaign focusing on the alternative uses of olive oil. What strategy is the company implementing to expand its total market demand?

advertising new and different applications of the brand

Which of these is NOT generally noted as an advantage that pioneers in a market get?

broad protection against market followers

Which of the following is true of brokers?

brokers bring buyers and sellers together and assist in negotiation

A marketing manager has decided to leapfrog the competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as a(n) ________ attack.

bypass

Electronic shelf labeling allows retailers to ________.

change price levels instantaneously

as a market follower strategy, the ________ emulates the leader's products, name, and packaging, with slight variations

cloner

Which of these is NOT a step in the order-to-payment cycle?

closing

Designing and validating a prototype version of a potential offering occurs during the ________ stage of the stage-gate framework.

concept development

consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach to varying levels of a product's attributes

conjoint analysis

When a company is looking for growth opportunities, which of these steps should it take first?

consider whether it could gain more market share with its current products in their current markets using a market-penetration strategy?

Which of these is a way that negative reviews of their products can help a company?

consumers may learn a product is not right for them before ordering it, which lowers the cost of returns

What are "spinners" in the context of customer acquisition and retention?

consumers who switch suppliers frequently looking for the best deal

________ consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes

containerization

Firms can help establish the optimal brand positioning for a new product and the right points of parity and points of differences by ________ during the idea generation stage.

crowdsourcing

The ________ depicts the phases in the customer acquisition process, from merely being aware of an offering to becoming loyal advocates.

customer acquisition funnel

Sapphire Toys actually sells more than toys. It also sells branded clothing, music CDs, and books for children. This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.

enhancing the growth potential of each customer through cross-selling

In addition to ramping up the facilities involved in the offering's production and promoting the offering to all target customers, market expansion involves ________.

ensuring that the offering is available to the entire target market

Why did Apple conclude that existing retail channels were not meeting its distribution objectives when it decided to open its own retail stores?

existing channels were not creating a dynamic retail experience for consumers

Which of these is NOT one of the major sources that customers use to form expectations of the level of satisfaction they will receive by doing business with a company?

government guidelines

Dollar General and Family Dollar are retail chains that specialize in selling goods at very low prices. To achieve this, they stock a very narrow assortment of basic necessities and offer customers a no-frills shopping experience. They are examples of the ________ store format.

hard-discount

Automotive dealerships are examples of the ________ format

manufacturer-sponsored retailer franchise

In the business-to-business sector, ________ are third parties that link buyers and sellers

market makers

Describing how the company will create, communicate, and deliver value to its target customers, collaborators, and the company stakeholders is embodied in which component of business-model design?

market offering

The first company to sell a new product type is known as the ________.

market pioneer

As the marketing manager for a floor tile manufacturer, Evans Smith is given a target to achieve 500 new customers by the end of summer. He decides to search the market for probable customers who might use his firm's products but currently do not. Which of the following growth strategies is Evans pursuing?

market-development strategy

When a firm looks for ways to grow sales of its current offerings to its existing customers, it is using the ________ strategy.

market-penetration

________ typically buy directly from the manufacturer, take title to the merchandise they handle, store the product, and then sell it to the customer.

merchant wholesalers

Intermediaries that buy, take title to, and resell the merchandise are known as ________.

merchants

When Estée Lauder set up a website to sell its Clinique and Bobbi Brown brands, Dayton Hudson reduced space for Estée Lauder products in its department stores in response to the ________ conflict.

multichannel?

When Goodyear began selling its popular tire brands through Sears, Walmart, and Discount Tire, independent dealers that sold the same tires at higher prices were angry. This is an example of a(n) ________ conflict.

multichannel?

When a firm has a valid business model in hand for a new offering, what is its next step in the stage-gate framework?

offering development

Retailers that augment their physical locations with coordinated online stores are using ________.

omnichannel retailing

The alternative to growing through mergers and acquisitions is commonly referred to as ________.

organic growth

Which of the following channel functions constitute only a backward flow?

placing orders with manufacturers

Which of these is NOT a component of customer lifetime value?

research and development costs

The phenomenon of small manufacturers being crowded out of market sectors because they cannot deliver enough quantity to satisfy retailers' demands is a consequence of ________.

retailer consolidation

What does "turns + earns" mean for retailers?

sales volume and gross margins

#2 What does "turns + earns" mean for retailers?

sales volume gross margins

Order-processing costs for a manufacturer consist of ________ and running costs.

setup costs

Which of these is NOT an inventory carrying cost?

setup costs

The percentage of a customer's spending that a company's brand enjoys is known as its ________.

share wallet

Which of these is NOT one of the noted advantages online retailing has over in-store retailing?

social interaction

Which of these is NOT one of the five factors that have been identified as the foundations of long-term market leadership?

tactical agility