marketing chapter 2

false

A marketing strategy is stating what is to be accomplished through marketing activities using clear language. It should be measurable. a. True b. False

false

Conducting a SWOT analysis comes immediately before the establishment of corporate and business-unit strategies. a. True b. False

a

Google has written down the following: "to organize the world's information and make it universally accessible and useful." This is most likely a part of Google's ___________________. a. mission statement b. marketing objective c. marketing plan d. strengths e. corporate strategy

a

How does a sustainable competitive advantage differ from a competitive advantage? a. A sustainable competitive advantage is one that competitors cannot copy in the immediate future. b. A sustainable competitive advantage lasts forever. c. A sustainable competitive advantage occurs when the company takes advantage of temporary periods of optimal fit between the key requirements of a market and the particular capabilities of a company competing in that market. d. A sustainable competitive advantage has an environmental focus. e. A sustainable competitive advantage is when a company matches a core competency to opportunities in the marketplace.

centralized

Marty works at an organization with a clear chain of command. The major decisions are relegated to top managers. Marty and his co-workers have strict performance standards. Managers at his organization monitor the work of employees to make sure they are staying on track. This is an example of a ...................... organization.

b

Procter & Gamble's Tide laundry detergent has a predominant share of the detergent market in the United States. It makes $4.5 billion in sales of this detergent brand. However, the detergent market has reached market saturation in the United States. With this information, what type of product is Tide based upon the Boston Consulting Group's market growth/market share matrix? a. question mark b. cash cow c. dog d. star e. pig

a

Scenario 2.1. Jessica is working on a SWOT analysis of a local Mexican restaurant Tres Tortillas in Flagstaff. She writes down that the organization has high customer loyalty, resources for expansion, and strong management. She also writes that the market for salsa products is strong, and more people are eating out. On the other hand, one major complaint leveled against the restaurant is that its prices are high, and other casual-dining restaurants with less expensive menu offerings are opening in the city. Still, Jessica believes the restaurant's talented and well-known chef provides it with an advantage other restaurants do not have. Refer to Scenario 2.1. Which of the following characteristics of the Mexican restaurant represents an opportunity? a. greater demand for salsa products b. customer loyalty c. talented and well-known chef d. strong management e. strong organizational resources

a

Scenario 2.2. Jessica's manager believes that Tres Tortillas can gain an advantage over competing Mexican restaurants in the area by capitalizing on the growing demand for salsa. He believes the firm's top secret salsa recipe could be the key to expanding into another market niche. The manager has proposed developing a line of its salsas in 16-oz jars to sell at its restaurant. This way its loyal customers could buy its salsa outright and serve it at home. Jessica has been tasked with the determining the feasibility of this strategy. Refer to Scenario 2.2. What type of competitive growth strategy is Jessica's manager discussing? a. product development b. market penetration c. market development d. product penetration e. diversification

c

Scenario 2.3. Jessica continues to work on the marketing strategy for Tres Tortillas. Tres Tortillas was successful in selling 16 ounce jars of salsa in its restaurant. In fact, demand for the jars of salsa is so high that Jessica believes Tres Tortillas should try to expand and start selling in stores. She believes Tres Tortillas salsa has the potential for enormous growth, perhaps even more so than the actual restaurant. Refer to Scenario 2.3. Jessica's manager is skeptical. Such an investment would require a manufacturing facility, a larger marketing budget, and salespeople who would be able to get the salsa onto store shelves. However, Jessica maintains that Tres Tortilla's secret salsa recipe is a core competency. The market for salsa is also strong. She believes this provides Tres Tortillas with a chance to match its core competency to market opportunities, otherwise known as a(n) ___________________. a. first-mover advantage b. late-mover advantage c. competitive advantage d. optimal fit e. strategic window

e

Scenario 2.4. It is a year later. Jessica's manager decided that the company would develop a salsa business. Jessica has been in a flurry of activity since then. Not only did the company have to invest in a building and equipment, but she has had to develop marketing strategies for the new salsa business. The marketing strategies are now complete and ready to be put into action. Jessica was placed in charge of marketing implementation. She has spent several months organizing the marketing unit, training employees, coordinating the marketing staff, and communicating the goals and objectives of the strategy. Refer to Scenario 2.4. What is next step Jessica should take to implement the marketing strategy? a. Undertake a SWOT analysis. b. Evaluate the marketing strategy. c. Establish performance standards. d. Create the marketing mix. e. Establish a timetable for implementation

e

Scenario 2.5. Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing activities he needs to take to spread awareness of his company and attract consumers to his business. Refer to Scenario 2.5. Paul is at the stage of his marketing plan where he needs to gather information about his firm's situation with respect to the market. A major part of this is his assessment of target markets. Which section is he about to write? a. marketing strategies b. marketing objectives c. SWOT analysis d. executive summary e. environmental analysis

c

Scenario 2.5. Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses. He has a number of strategic partnerships with different players in the industry and believes his business has the ability to become highly successful. Those customers who have bought from him have become loyal and frequently visit the store. The problem is most people do not seem to realize the store exists. He decides to write a marketing plan that will outline the marketing activities he needs to take to spread awareness of his company and attract consumers to his business. Refer to Scenario 2.5. Paul would like his sales for next month to reach $15,000. This is an example of a _______________. a. marketing strategy b. sales analysis c. performance standard d. strategic plan e. business-unit goal

d

Scenario 2.6. Margie noticed that sales of her company's newest bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who ride long distance. Refer to Scenario 2.6. At what stage of the strategic planning process is Margie? a. assessing organizational resources and opportunities b. managing marketing implementation c. developing marketing strategies d. evaluating marketing strategies e. developing a marketing plan

d

Scenario 2.6. Margie noticed that sales of her company's newest bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who ride long distance. Refer to Scenario 2.6. Margie believes this is the optimal time to seize upon this opportunity. Through the bike's patented design, her company has capabilities that fit the unique demands of this growing market. Margie wants to capitalize on this opportunity before these market trends have a chance to change. This period for Margie's firm is known as a ______. a. competitive advantage b. sales boost c. product opportunity d. strategic window e. core competency

b

Scenario 2.6. Margie noticed that sales of her company's newest bicycle product are much higher than anticipated. She wants to investigate why this has occurred. Margie first compares the sales to performance standards the company has set for the new product. She examined the firms' efforts, the costs incurred from marketing activities, industry sales as a whole, and competitor sales. After looking at all this data, she determined that the reason for the higher sales was two-fold. Industry sales averages were high, and after some investigation Margie noticed that there has been a major influx in consumers wanting to bike to work or for recreational purposes—much more than anticipated. The bicycle they released also had a unique design, and she believes this design—which is patented so rivals cannot replicate it—makes the bicycle more comfortable for bicyclists who ride long distance. Refer to Scenario 2.6. What method of analysis is Margie using? a. performance assessment b. sales analysis c. performance comparison d. marketing cost analysis e. strategic analysis

true

The degree of centralization falls under organizing the market unit—a major part of managing marketing implementation. a. True b. False

false

The marketing implementation section of the marketing plan outlines how the company will achieve its objectives. a. True b. False

strategic planning

Through the process of...................................... , a company establishes an organizational mission and formulates goals, a corporate strategy, marketing objectives, and a marketing strategy.

d

Which of the following is a disadvantage of being a first-mover in the market? a. the chance that products will be protected by patents b. costs of marketing plan implementation c. inability to accurately predict performance standards d. large outlays associated with creating a new product e. high switching costs consumers may experience Hide Feedback

c

Which of the following is likely the most important decision a company makes during the strategic planning process? a. evaluating marketing performance b. conducting a SWOT analysis c. choosing a target market d. creating the marketing mix e. developing a marketing strategy

b

Which of the following is the final step in establishing an implementation timetable? a. separating the activities to be performed in sequence from those to be performed simultaneously b. assigning responsibility for completing each activity to one or more employees, teams, or managers c. identifying the activities to be performed d. organizing the activities in the proper order e. determining the time required to complete each activity

a

Why might a marketer want to engage in marketing cost analysis? a. to allocate the firm's marketing resources better in the future b. to help outline how the company will achieve its objectives c. to determine how much the company will charge customers d. to evaluate the firm's strengths and weaknesses e. to reflect the market's reaction to the marketing mix

a marketing plan

is a written document that specifies the marketing activities to be performed to implement and evaluate the organization's marketing strategies.

a marketing objective

states what is to be accomplished through marketing activities.