Chapter 2 Concept Quiz, Practice, Video Quiz- Tesla Model 3

Procter & Gamble's Tide laundry detergent has a predominant share of the detergent market in the United States. 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. Cash cow b. Question mark c. Dog d. Star e. Pig

a. Cash cow

Which of the following is a disadvantage of being a first-mover in the market? a. Large outlays associated with creating a new product b. High switching costs consumers may experience c. Inability to accurately predict performance standards d. The chances that products will be protected by patents e. Costs of marketing plan implementation

a. Large outlays associated with creating a new product

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

a. True

Marketing cost analysis _______. a. breaks down and classifies costs to determine which are associated with specific marketing efforts b. uses sales figures to evaluate a firm's current performance c. is the firm's sale of a stated product as a percentage of industry sales of competing products d. is an expected level of performance against which actual performance can be compared e. assesses an organization's strengths, weaknesses, opportunities, and threats

a. breaks down and classifies costs to determine which are associated with specific marketing efforts

The unique symbols, personalities, and philosophies that support all corporate activities including strategic planning and marketing are best described as _______. a. corporate identity b. market share c. corporate strategy d. mission statement e. SWOT analysis

a. corporate identity

A _______ states what is to be accomplished through marketing activities. a. marketing objective b. marketing strategy c. market opportunity d. performance standard e. mission statement

a. marketing objective

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, developing a social media plan, 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. Evaluate the marketing strategy b. Establish a timetable for implementation c. Undertake a SWOT analysis d. Establish performance standards e. Create the marketing mix

b. Establish a timetable for implementation

Which of the following is NOT one of the steps in strategic performance evaluation? a. Modifying the marketing strategy, if necessary b. Establishing a timetable for implementation c. Comparing actual performance with established standards d. Measuring actual performance e. Establishing performance standards

b. Establishing a timetable for implementation

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

b. False

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

b. False

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, a large social media following, and strong management. She also writes that the market for salsa products is high and more people are eating out. On the other hand, one major complaint levied against the restaurant is that it is high priced and other casual-dining restaurants with less expensive menu offerings are locating to the city. Still, Jessica believes the restaurant's talented and well-known chef provides it with an advantage that other restaurants do not have. Refer to Scenario 2.1. Which of the following characteristics of the Mexican restaurant represents an opportunity? a. Strong management b. Greater demand for salsa products c. Talented and well-known chef d. Customer loyalty e. Strong organizational resources

b. Greater demand for salsa products

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 and online. 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 provides it with 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. optimal fit b. competitive advantage c. strategic window d. late-mover advantage e. first-mover advantage

b. competitive advantage

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

b. false

Performance standards are derived from _______. a. marketing strategy b. marketing objectives c. the mission statement d. sales analysis e. market opportunity

b. marketing objectives

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. strengths b. mission statement c. marketing objective d. corporate strategy e. marketing plan

b. mission statement

Scenario 2.6. Margie noticed that sales of her company's newest electric 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 electric 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 bike 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. product opportunity b. strategic window c. competitive advantage d. sales boost e. core competency

b. strategic window

Tesla's investment in state-of-the-art vehicle battery manufacturing on a massive scale has allowed it to reduce car-making costs and have more control over its supply chain. These strengths give Tesla a _______. a.core competency b.competitive advantage c.first-mover advantage d.market opportunity e.strategic window

b.competitive advantage

Which of the following is likely the most important decision a company makes during the strategic planning process? a. Conducting a SWOT analysis b. Creating the marketing mix c. Choosing a target market d. Developing a marketing strategy e. Evaluating marketing performance

c. Choosing a target market

Southwest is known for its culture of "luv" and its fun-loving approach. This is an example of which of the following? a. Marketing objective b. Corporate strategy c. Corporate identity d. Business-unit strategy e. Corporate mission

c. Corporate identity

Which of the following provides a uniform marketing vision for the firm and is the basis for internal communications? a. Mission statement b. Performance standard c. Marketing plan d. Marketing strategy e. Target market

c. Marketing plan

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 higher 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-ounce 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. Market penetration b. Market development c. Product development d. Product penetration e. Diversification

c. Product development

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

c. To allocate the firm's marketing resources better in the future

For Tesla, the Model X SUV represents a _______ on the Boston Consulting Group (BCG) market growth/market share matrix. a.cash cow b.question mark c.dog d.bomb e.star

c. dog

The strategic planning process begins with _______. a. finance objectives b. marketing objectives c. organizational mission and goals d. business-unit strategies e. SWOT analysis

c. organizational mission and goals

How does a sustainable competitive advantage differ from a competitive advantage? a. A sustainable competitive advantage lasts forever. b. A sustainable competitive advantage is when a company matches a core competency to opportunities in the marketplace. c. A sustainable competitive advantage has an environmental focus. d. A sustainable competitive advantage is one that competitors cannot copy in the immediate future. e. 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 is one that competitors cannot copy in the immediate future.

Which of the following provides an overview of the entire marketing plan so that readers can quickly identify the key issues and their roles in the planning and implementation process? a. Environmental analysis b. Marketing implementation c. SWOT analysis d. Executive summary e. Performance evaluation

d. Executive summary

Which of the following is based on the philosophy that a product's market growth rate and its market share are important considerations in determining marketing strategy? a. SWOT analysis b. Product-market matrix c. Sales analysis d. Market growth/market share matrix e. Mission-goal matrix

d. Market growth/market share matrix

When conducting a SWOT analysis, which of the following are barriers that could prevent an organization from reaching its objective? a. Opportunities b. Strengths c. Weaknesses d. Threats e. Market opportunity

d. Threats

Decision-making authority is delegated as far down the chain of command as possible in a(n) _______. a. centralized organization b. strategic-business unit c. nonprofit organization d. decentralized organization e. marketing-oriented organization

d. decentralized organization

Scenario 2.5 Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. 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 customers 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 $30,000. This is an example of a _______. a. strategic plan b. marketing strategy c. sales analysis d. performance standard e. business-unit goal

d. performance standard

For Tesla, the Model 3 represents a _______ on the Boston Consulting Group (BCG) market growth/market share matrix. a.cat b.cash cow c.dog d.question mark e.star

d. question mark

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. Determining the time required to complete each activity c. Organizing the activities in the proper order d. Identifying the activities to be performed e. Assigning responsibility for completing each activity to one or more employees, teams, or managers

e. Assigning responsibility for completing each activity to one or more employees, teams, or managers

Which of the following is the last step of establishing a marketing implementation timetable? a. Determining the time required to complete each activity b. Organizing activities in the proper order c. Separating the activities to be performed in sequence from those to be performed simultaneously d. Identifying the activities to be performed e. Assigning responsibility for completing each activity to one or more employees, teams, or managers

e. Assigning responsibility for completing each activity to one or more employees, teams, or managers

Scenario 2.6 Margie noticed that sales of her company's newest electric 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 electric 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 bike long distance. Refer to Scenario 2.6. At what stage of the strategic planning process is Margie? a. Developing a marketing plan b. Managing marketing implementation c. Developing marketing strategies d. Assessing organizational resources and opportunities e. Evaluating marketing strategies

e. Evaluating marketing strategies

When the right combination of circumstances and timing permits an organization to take action to reach a particular target market, there exists a(n) _______. a. weakness b. core competencies c. strategic window d. competitive advantage e. market opportunity

e. market opportunity

A ________ states what is to be accomplished through marketing activities.

marketing objective

Scenario 2.5 Paul owns a small retail store. His store sells local products from farmers and small food and beverage businesses in his store. 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 customers 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. Environmental analysis b. Executive summary c. SWOT analysis d. Marketing objectives e. Marketing strategies

a. Environmental analysis

The ability of competitors to achieve long-term competitive advantages by entering the market later and not being the first to offer a certain product in the marketplace is called _______. a. early-mover advantage b. first-mover advantage c. late-mover advantage d. core competency e. competitive advantage

c. late-mover advantage

`A marketing strategy is the selection of a(n) _______ and the creation of a(n) _______ that will satisfy the needs of target-market members. a. marketing mix; target market b. marketing objective; marketing mix c. target market; marketing mix d. marketing objective; marketing plan e. target market; marketing plan

c. target market; marketing mix

An essential element of communicating with marketing employees is _______. a. strategy b. the target market c. training d. objectives e. the marketing mix

c. training

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.

centralized

Tesla's plan to develop and introduce pickup trucks and big rigs are examples of _______. a.market penetration b.market development c.product modification d.product development e.diversification

e. diversification

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

marketing plan

For Tesla, the Model S represents a _______ on the Boston Consulting Group (BCG) market growth/market share matrix. a.cash cow b.problem child c.dog d.star e.question mark

star

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

strategic planning

Which of the following is NOT a component of the marketing plan? a. Executive summary b. Marketing strategies c. SWOT analysis d. Marketing implementation e. Business analysis

e. Business analysis

Which of the following competitive growth strategies strives to increase sales of current products in new markets? a. Market development b. Diversification c. Market penetration d. Market share e. Product development

a. Market development

Scenario 2.6 Margie noticed that sales of her company's newest electric 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 electric 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 bike long distance. Refer to Scenario 2.6. What method of analysis is Margie using? a. Performance assessment b. Strategic analysis c. Sales analysis d. Performance comparison e. Marketing cost analysis

c. Sales analysis