BUS 346 - Ch 2

Coca-Cola sells two zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a masculine looking can for Coke Zero, with bold red lettering on a black background. This specially designed can is an example of Select one: a. positioning. b. a market segment. c. market penetration. d. segmentation. e. targeting.

a. positioning.

3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a __________ growth strategy. Select one: a. product development b. diversification c. product penetration d. market penetration e. market development

a. product development

Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing aNo __________ macro strategy. Select one: a. product excellence b. operational excellence c. locational excellence d. global excellence e. customer excellence

a. product excellence

Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize Select one: a. the lifetime value of customers. b. the importance of making decisions based on short-term results. c. that as long as customers bring in some revenue, costs do not matter. d. that product excellence leads to loyal customers. e. that operational excellence is an important macro strategy.

a. the lifetime value of customers.

In value-based marketing, promotion communicates the ________ to customers through a variety of media. Select one: a. value proposition b. target market definition c. relative market value d. operational excellence strategy e. targeted solution

a. value proposition

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

b. increased long term profits.

Abercrombie & Fitch, a clothing retailer, includes a SHARE link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a __________ growth strategy. Select one: a. market development b. market penetration c. product development d. diversification e. product proliferation

b. market penetration

The process of dividing the market into groups of customers with different needs, wants, or characteristics is called Select one: a. allocation. b. market segmentation. c. value capture. d. positioning. e. target marketing.

b. market segmentation.

In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing aNo __________ strategy. Select one: a. market penetration b. product development c. customer excellence d. operational excellence e. market development

b. product development

Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy. Select one: a. diversification b. product development c. market penetration d. product proliferation e. market development

b. product development

ANo ___________ is a group of products that consumers may use together or perceive as similar in some way. Select one: a. STP b. product line c. SBU d. promotional service e. market segment

b. product line

A product that is in a high-growth market but has a low market share would be classified as ________ on the BCG matrix. Select one: a. dog b. question mark c. star d. latent e. cash cow

b. question mark

After conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions. Select one: a. market growth b. resource allocation c. competitive response d. product line e. mission statement

b. resource allocation

Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are pursuing which macro strategy? Select one: a. Customer excellence b. Operational excellence c. Product excellence d. Locational excellence e. Purchase excellence

d. Locational excellence

During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning? Select one: a. control phase b. planning phase c. evaluation phase d. implementation phase e. strategy phase

d. implementation phase

Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates ________ excellence. Select one: a. customer b. place c. product d. operational e. locational

d. operational

Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's Select one: a. product specifications. b. pension plan. c. strengths and weaknesses. d. opportunities and threats. e. sales history.

d. opportunities and threats.

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

d. opportunity

Maryam called her auto insurance agent to renew her policy. The agent told her about new types of insurance that are now available--to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________ growth strategy. Select one: a. diversification b. market penetration c. market development d. product development e. product proliferation

d. product development

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy? Select one: a. 3M Corporation, implementing new software to improve communication with its suppliers. b. McDonald's, lowering prices on its coffee drinks. c. Nike, opening hundreds of new company stores in high-traffic shopping areas. d. adidas, inviting customer suggestions to guide the design of the next generation of Air Jordan shoes. e. Singapore Airlines, installing more comfortable seats in the economy-class cabins of its airplanes.

a. 3M Corporation, implementing new software to improve communication with its suppliers.

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

a. diversification.

Firms achieve ___________ through efficient procedures and excellent supply chain management. Select one: a. operational excellence b. locational excellence c. customer excellence d. customer loyalty e. value-based pricing

a. operational excellence

Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity? Select one: a. A New York law firm has filed a $10 million class action suit against the company on behalf of car owners whose gas tanks exploded. b. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. c. Recent consumer studies have indicated that Chinese consumers prefer American cars. d. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. e. The company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices.

c. Recent consumer studies have indicated that Chinese consumers prefer American cars.

Sodexo is a corporation that manages school cafeterias, university dining halls, mess halls at military bases, concession stands at sports arenas, and other large-scale food service facilities. If Sodexo were to begin to sell individual frozen meals in supermarkets, it would be pursuing a __________ growth strategy. Select one: a. product development b. market development c. diversification d. product proliferation e. market penetration

c. diversification

For many years, Southwest Airlines distinguished itself as the low-cost airline. Now, many other low-cost competitors have entered the market. Similarly, Southwest was one of the first airlines to offer online ticketing. Now, all airlines have online ticketing. These examples suggest that Select one: a. innovation is pointless because competitors will develop copycat offerings. b. situation analysis is a continuous process. c. no single strategy is likely to be sufficient to build a sustainable competitive advantage. d. product excellence is the only true source of a sustainable competitive advantage. e. customers rarely remain loyal to companies.

c. no single strategy is likely to be sufficient to build a sustainable competitive advantage.

Imagine that you are in a convenience store choosing your favorite comfort food instead of being in a classroom taking this test. You might notice the packaging, colors, labels, even the fonts used on labels. All of these efforts are part of the marketer's Select one: a. value-based promotions. b. market segmentation. c. positioning strategy. d. customer excellence strategy. e. target market.

c. positioning strategy.

Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through Select one: a. cost-based measures. b. price. c. promotion. d. product. e. place.

c. promotion.

Allen is in the marketing department of a mid-sized firm that develops and sells communications systems. He is proud of the Human Resources area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an operational advantage for the firm because of all of the following EXCEPT Select one: a. it is easier to communicate with and inspire the customer if the employees believe in what the firm is doing. b. employees play a major role in the success of the firm. c. the company provides products with a high perceived value. d. building customer loyalty depends on a committed workforce. e. customers appreciate the kind of service that knowledgeable employees provide.

c. the company provides products with a high perceived value.

If a price is set too high, it will not generate much ________; if it is set too low, it may result in ________. Select one: a. interest; less value to the customer b. operational opportunity; less product value c. volume; lower margins and profits d. place value; more customer defections e. promotional value; less customer value

c. volume; lower margins and profits

The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business? Select one: a. Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it is likely to receive. b. Nike should consider exiting the athletic shoe market. c. Nike will probably have to invest heavily in the athletic shoe business, including extensive promotions and new production facilities. d. Nike should invest in the athletic shoe market only if it helps to boost the sales of other products in fast-growing markets. e. Nike's athletic shoe business still requires some investment but is likely to produce excess resources that can be invested in other divisions of the company.

e. Nike's athletic shoe business still requires some investment but is likely to produce excess resources that can be invested in other divisions of the company.

In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds available to support other products are called Select one: a. anchors. b. question marks. c. dogs. d. stars. e. cash cows.

e. cash cows.

Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can Select one: a. use their power within the supply chain to force weaker firms to accept less favorable pricing. b. persuade stores to refuse to carry competitors' products. c. justify charging higher prices than competitors do. d. control prices and lock in margins. e. create a sustainable competitive advantage.

e. create a sustainable competitive advantage.

Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through Select one: a. product excellence. b. global excellence. c. operational excellence. d. promotional excellence. e. customer excellence.

e. customer excellence.

Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to Select one: a. reposition existing segments. b. conduct a SWOT analysis. c. choose the best target markets. d. develop a business mission statement. e. divide the marketplace into subgroups.

e. divide the marketplace into subgroups.

During a SWOT analysis, a company should assess the opportunities and uncertainties of the marketplace due to changes in several factors, given the acronym CDSTEP. Which of the following is NOT one of these factors? Select one: a. demographic b. technological c. political d. cultural e. ethical

e. ethical

If a firm wants to develop a sustainable competitive advantage, it should Select one: a. copy the innovative features of other firms that are attractive to customers. b. arrange to meet with competitors to discuss how to avoid direct competition. c. begin an aggressive campaign to buy up competitors. d. increase its marketing budget so that it outspends its competitors. e. examine its operations and customer relations to identify significant things competitors cannot easily copy.

e. examine its operations and customer relations to identify significant things competitors cannot easily copy.

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

Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a __________________ growth strategy. Select one: a. product proliferation b. market penetration c. product development d. diversification e. market development

e. market development

Firms achieve ___________ through efficient procedures and excellent supply chain management. Select one: a. customer excellence b. customer loyalty c. value-based pricing d. locational excellence e. operational excellence

e. operational excellence

LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If endorsements by these athletes create a clear understanding among consumers of the companies' products in comparison to competing products, they can help with the firm's ________________ strategy. Select one: a. customer excellence b. product excellence c. segmentation d. targeting e. positioning

e. positioning

Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms' Select one: a. target market. b. market segmentation strategy. c. customer excellence strategy. d. business mission. e. positioning strategy.

e. positioning strategy.

Fernando was thrilled to find out that his company had just decided to invest a great deal of money in the product he was managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he would need more money to establish it firmly. Using the BCG portfolio analysis, his product would be classified as aNo Select one: a. cash cow. b. anchor. c. question mark. d. dog. e. star.

e. star.