BA 306 Chapter 2

What is one way to analyze costs when conducting marketing cost analysis?

Compare a company's costs with industry averages

Which of the following is NOT one of the steps of evaluating marketing strategies?

Identifying target markets

Herbal Organics used actor and former NFL player Sweet Dave Brown to act as its spokesperson as the "Herbal Organics Man." It filmed humorous videos of the actor that went viral online. Herbal Organics saw sales of its deodorants increase substantially from the previous year. What type of competitive growth strategy did Herbal Organics use?

Market penetration

The Forever 21 chain of retail stores has a reputation as one of the "coolest" brands according to Piper Jaffray. Their stores feature the latest trends, must-have styles, and the hottest deals for shoppers. The retail stores are typically found in shopping malls across the country and are comfortable places to shop-featuring interesting displays, pop music, and bright lights. Forever 21's selection of denim is the most popular product appealing to both genders and has helped them achieve double-digit growth. Which of the following would most likely be the "best" target market for Forever 21?

Men and women aged 18 to 24

The director of marketing for Duck Brand tells the rest of the management team, "When it comes to our duct tape unit, our strategy will be to use funds generated here to support our venture in the industrial bonding market." This strategy indicates that the duct tape unit falls into which one of the following classifications?

cash cow

EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company. Refer to Scenario 2.2. According to the BCG matrix, the hang-gliding and bungee jumping tours have been a ____ for EXperience Limited, while the skydiving and motocross tours represent a ____.

cash cow; question mark

Gucci, a marketer of high-fashion products, achieved a company turnaround by ensuring that its brand had the same image and proper display around the world. It also lowered prices on some items, like handbags, to be more competitive. This illustrates a company working to develop a marketing mix that is both ____ and ____.

consistent; flexible

Darryl Grimes is director of career services at a major Midwestern university and works with corporations that are seeking to recruit recent college graduates. Darryl is interested in attracting Marathon Orthotics, Inc. to recruit entry-level marketing and sales representatives. Darryl has received very favorable word-of-mouth communication from alumni about Marathon Orthotics, and employees are extremely satisfied with the company's culture and feel empowered to make decisions. In addition, they report that they are given a high degree of flexibility and autonomy, which enables them to quickly respond and adapt rapidly to changing customer needs. It's likely that Marathon Orthotics has implemented a ____________ organizational structure.

decentralized

The ____________ section of the marketing plan states what the company wants to accomplish through marketing activities, using a(n) ___________ of where the firm stands in the market.

marketing objectives; SWOT analysis

A first-mover advantage is

the ability of an innovative company to achieve long-term competitive advantages by being the first to offer a certain product in the marketplace. Correct