marketing chapter 2
90. A former advertising campaign for GEICO Insurance used the slogan "So easy, even a caveman could do it" to emphasize the ease of buying insurance on GEICO's website. This campaign was part of GEICO's A. mission statement. B. market segmentation plan. C. product strategy. D. customer excellence strategy. E. positioning strategy.
e
114. 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? A. ethical B. cultural C. political D. technological E. demographic
a
44. When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities A. that build on their strengths relative to those of their competitors. B. for diversification. C. in international markets. D. where value-based pricing can be ignored. E. where customer excellence can be substituted for product excellence.
a
76. Maryam phoned her auto insurance agent to renew her policy. The agent told her about new types of insurance now available—to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ___________ growth strategy. A. product development B. market development C. market penetration D. diversification E. product proliferation
a
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 a(n) A. star. B. cash cow. C. question mark. D. dog. E. anchor.
a
113. During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning? A. planning phase B. implementation phase C. evaluation phase D. control phase E. strategy phase
b
49. E-books, in addition to being an alternative product form, provide __________ value creation since they can be downloaded via the Internet immediately when and where they are needed. A. product B. place C. promotion D. price E. primary
b
59. In most companies, portfolio management is typically done at the SBU or ___________ level of the firm. A. corporate B. product line C. customer care D. sales representative E. accounting
b
63. 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 A. stars. B. cash cows. C. question marks. D. dogs. E. anchors.
b
86. Which of the following is the third step in the marketing planning process? A. define the business mission B. identify and evaluate opportunities C. evaluate using a matrix D. implement marketing mix and allocate resources E. perform situation analysis
b
88. After defining the business mission, what should a firm do next to develop a marketing plan? A. conduct an STP analysis B. perform a situation analysis C. develop a positioning strategy D. select a target market E. implement the four Ps
b
97. Which of the following is the best way to build a sustainable competitive advantage using product excellence? A. being the first to offer customers desired features, even if competitors can copy them easily B. positioning the product using a clear, distinctive brand image C. having the most features on each model D. focusing on being cutting edge and continually eliminating older features that are still in use by customers E. copying the market leader's features, but at a lower cost
b
A __________ growth strategy employs the existing marketing offering to reach new market segments. A. product proliferation B. market development C. market penetration D. diversification E. product development
b
H&R is a small, local heating and air conditioning business. The area military base is a potential source of growth, and H&R already installs and services the type of equipment the military would require, but it is difficult to get established as a certified government contractor. H&R is considering a ____________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development
b
Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are most likely pursuing which macro strategy? A. customer excellence B. locational excellence C. operational excellence D. product excellence E. purchase excellence
b
Which of the following actions, if it actually happened, would most likely support and enhance an operational excellence macro strategy? A. Singapore Airlines installing more comfortable seats in the economy-class cabins of its airplanes B. 3M Corporation implementing new software to improve communication with its suppliers C. adidas inviting customer suggestions to guide the design of the next generation of shoes D. Nike opening hundreds of new company stores in high-traffic shopping areas E. McDonald's lowering prices on its coffee drinks
b
106. Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. 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. 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
110. Delta Airlines is among the companies experimenting with selling products and services on their Facebook pages. The idea is to make purchasing even easier for customers who may spend large portions of the day with Facebook active on their computers or mobile devices. There is no need even to navigate to Delta's website—users can book a trip in Delta's "Ticket Agent" application without ever leaving Facebook. Which element of the marketing mix does this represent? A. product and value creation B. price and value capture C. place and value delivery D. promotion and value communication E. positioning and value promotion
c
116. ________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. A. Target marketing B. Market segmentation C. Market positioning D. Allocation E. Value capture
c
67. Which of the following is not one of the four major growth strategies marketers typically utilize? A. market penetration B. market development C. segment development D. diversification E. product development
c
75. Most banks now have customer relationship software that, when a customer contacts the bank, tells the service representative what types of accounts, loans, and credit cards the customer currently has. Service representatives use this information to sell some of the other services the bank currently offers to these customers. This is a ___________________ growth strategy. A. product proliferation B. market development C. market penetration D. diversification E. product development
c
Adrienne decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy. A. segment development B. market development C. market penetration D. diversification E. product development
c
100. Value creation through place decisions for a consumer product involves A. putting the product in the front of the store. B. designing creative displays to capture consumers' attention. C. pricing products differently at different stores. D. 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. focusing exclusively on Internet sales to reduce supply chain costs.
d
28. Carla has been directed by her regional marketing manager to cut prices on seasonal items, place an ad in the local paper, and tell distributors to reduce deliveries for the next month. Which step of the strategic marketing planning process is Carla engaged in? A. evaluate performance B. define the business mission C. perform situation analysis D. implement marketing mix and resources E. identify and evaluate opportunities
d
62. To determine how attractive a particular market is using the BCG portfolio analysis, __________ is(are) established as the vertical axis. A. competitive intensity B. sales dollars C. market size D. market growth rate E. market profit potential
d
77. Introducing newly developed products or services to a market segment the company is not currently serving is called A. product development. B. market development. C. market penetration. D. diversification. E. product proliferation.
d
92. 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. A. product development B. market development C. market penetration D. diversification E. product proliferation
d
95. Over the last few months, Juan and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Finally, they developed the products, prices, distribution, and promotion that should appeal to each of those target markets. In doing so, Juan has also identified what he believes is an advantage his competitors cannot match. Juan and his colleagues have been developing A. a business mission statement. B. a strategic vision. C. team-building exercises. D. a marketing strategy. E. competitive assessments.
d
For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25- to 50-year-old educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary A. mission statement. B. positioning. C. SBU. D. target market segment. E. sustainable competitive advantage.
d
__________ involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of what a product does or represents in comparison with competing products. A. Targeting B. Market segmentation C. A sustainable competitive advantage D. Positioning E. A customer excellence strategy
d
In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing Inc., a manufacturer of personal devices and smartphones. Before deciding to acquire the company, strategic planners at HP spent time thinking about how Palm and HP would "fit" together, and how the acquisition might change HP's core goals and objectives. The strategic planners were engaged in the ____________ step of the marketing planning process. A. perform situation analysis B. implement marketing mix and allocate resources C. identify and evaluate opportunities D. evaluate performance E. define the business mission
e
Which of the following is not one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages? A. locational excellence B. customer excellence C. operational excellence D. product excellence E. planning excellence
e
41. After identifying various market segments that her company could pursue, Lisa evaluated each segment's attractiveness based on size, income, and accessibility. Lisa was involved in A. target marketing. B. situation analysis. C. diversification. D. positioning. E. market penetration estimation.
a
Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of an opportunity? A. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. B. Recent consumer studies have indicated that Chinese consumers prefer American cars. C. 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. 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.
b