Marketing - Chapter 2 Review

A firm can begin to implement the marketing mix immediately after which step?

After it has finished segmentation, targeting, and positioning

Which statement is true regarding SBUs?

An SBU may have a different mission or objective from other divisions.

Which of the following are examples of strengths that could be identified in a SWOT analysis?

Community involvement & a reliable network of spokespeople

Which of the following is an example of loyalty to a company in a consumer's daily life?

Continuing to shop at Dunkin' Donuts even if Starbucks opens more convenient locations and offers slightly lower prices.

______ excellence, as a competitive advantage, focuses on retaining loyal buyers and offering excellent service.

Customer

Firms achieve operational excellence through which of the following?

Efficient operations, strong relationships with suppliers, & good supply chain management

True or false: A loyal customer of a firm is enthusiastic about buying from competitors of the firm from which it regularly purchases.

False

True or false: Firms that use multiple strategies to build a sustainable competitive advantage have difficulty maintaining long-term success.

False

True or false: The purpose of a marketing strategy is to maximize short-term profits.

False

During which step of the marketing plan do marketers make important decisions about how they will allocate their scarce resources to their various products and services?

Implement marketing mix

Which of the following are true regarding market share?

It is the percentage of a market accounted for by a specific entity & it defines a product's strength in a particular market.

Which of the following is NOT one of the four major growth strategies?

Market analysis

______ consist of consumers who respond similarly to a firm's marketing efforts.

Market segments

______ is the quantity of a market comprised by a specific entity.

Market share

What do "weaknesses" refer to in SWOT analysis?

Negative attributes internal to the firm

Disney parks offer excellent customer service by doing what?

Offering extremely friendly customer service, training all employees to be able to give customers information, finding and helping people who are lost

What is NOT an example of customer loyalty?

Only purchasing organic products

Which macro strategy is achieved in part through efficient supply chain management?

Operational excellence

______ is achieved through efficient operations, excellent supply chain, and human resource management.

Operational excellence

Match the macro strategies for developing customer value with the specific actions that organizations can take to achieve them.

Operational excellence - Excellent supply chain management, strong supplier relations, and human resource management Product excellence - Effective branding and positioning Locational excellence - High density of stores and closer proximity to customers

Which of the following are components of a SWOT analysis?

Opportunities, threats, & weaknesses

Step 2 of a marketing plan involves which of the following?

Performing a situation analysis using SWOT

What are the three major phases of the marketing plan?

Planning, control, & implementation

STP includes which of the following?

Positioning & segmentation

______ is the only marketing activity that actually brings in revenue.

Pricing

______, which includes services, constitutes the first of the four Ps.

Product

Which of the following is one of the macro strategies for developing customer value through effective branding and positioning?

Product excellence

Locational excellence is particularly important for which type of firm?

Retailers

With ______, the firm first divides the marketplace into subgroups, determines which of those subgroups it should pursue, and finally decides how it should best position its product or service.

STP

What factors that affect a sales manager's performance are outside the manager's control?

Successful competition & an economic downturn

What do "threats" represent in SWOT analysis?

The negative aspects of the company's external environment

What do "opportunities" represent in SWOT analysis?

The positive aspects of the external environment

What does "strengths" refer to in SWOT analysis?

The positive internal attributes of a firm

Which of the following statements about strategic planning is true?

The process can move back and forth between steps, depending on the situation.

What are the main purposes of metrics during Step 5?

To explain why things happened & to predict what will happen

What is the purpose of evaluating performance during Step 5?

To identify and explain performance above and below expectations

Why do firms use metrics in Step 5 of the marketing plan?

To make appropriate adjustments to performance & to make it possible to compare results across regions, product lines, and time periods

True or false: A firm has achieved sustainable competitive advantage over the competition when it combines parts of the marketing mix that are not easily copied and that can be maintained over a long period of time

True

True or false: Market segmentation is the process of dividing the market into groups of customers based on their needs, wants, and characteristics.

True

In which type of diversification does a firm enter into an entirely new business?

Unrelated

Which of the following is LEAST effective when building a sustainable competitive advantage?

Using only a single strategy

Which of the following is the primary question a mission statement should answer?

What type of business are we?

What are reasons why strategic planning may NOT occur sequentially?

When new strategic opportunities arise, when the implementation plan cannot move forward because there are too few resources, & when a situation analysis necessitates that the mission statement be revised

A marketing plan includes all of the following EXCEPT ______. -a plan on how to pitch investors -a SWOT analysis -marketing objectives and strategy -an analysis of the current marketing situation

a plan on how to pitch investors

General Electric sells a broad array of products for both businesses and consumers, from jet engines to light bulbs. GE's kitchen appliances would be considered ______.

a product line

In Step 2 of the five-step marketing planning process, a firm ______.

assesses how various players, both in and outside the organization, affect the firm's potential for success

A company that has successfully built a wall around its position in the market, making it hard for competitors outside the wall to enter the market and compete, is an example of a company that has established ______.

competitive advantage

In the marketing mix, product is the element that ______ value.

creates

A market segment consists of ______ who respond similarly to a firm's marketing efforts.

customers

In Step 1 of the planning phase, a firm ______.

defines the mission and/or vision of the business

A mission statement ______.

defines the scope of activities a firm plans to undertake

Step 5 in the marketing plan process is when a firm ______ the results of the strategy and implementation process.

evaluates

Step 5 of the marketing plan involves ______.

evaluating the results of the strategy and implementation program

Pricing is the only marketing activity that ______.

generates revenue

One firm's competitive advantage makes it ______ for other firms to compete for the same target customers.

harder

A market penetration strategy employs the existing marketing mix and focuses the firm's efforts on ______.

increasing sales to current customers

Step 3 of the five-step marketing planning process ______.

involves segmentation, targeting, and positioning (STP)

A competitive advantage based on location ______.

is sustainable when real estate is difficult or expensive to obtain

A sustainable competitive advantage ______.

is when a firm does consistently better than its competitors and it is not easily copied

Brand ______ means that customers are reluctant to patronize competing firms.

loyalty

In portfolio analysis, ______.

management evaluates the firm's various products and businesses & management allocates its resources to products with the greatest potential to be profitable

A strategy that employs existing products or services to reach new market segments is called ______.

market development

A strategy that employs the existing marketing mix and focuses the firm's efforts on increasing sales to current customers is called ______.

market penetration

Firms consider pursuing various ______ as part of their overall growth strategies.

market segments

The macro strategies for developing customer value include each of the following EXCEPT ______. -operational excellence -locational excellence -product excellence -marketing excellence

marketing excellence

A ______ is a written document that includes the current marketing situation, specified objectives and strategies, action programs, and projected income statements.

marketing plan

A ______ identifies a firm's target markets, a related marketing mix, and the bases upon which the firm plans to build a sustainable competitive advantage.

marketing strategy

A metric is a ______ that quantifies a trend, dynamic, or characteristic.

measuring system

Revenues, sales, and profits are commonly used ______ to assess performance.

metrics

The product development strategy incorporates a ______ product or service to a firm's ______ target market.

new; current

Product excellence ______.

occurs by having products with high perceived value and effective branding and positioning

In a SWOT analysis, ______ pertain to positive aspects of the external environment.

opportunities

Firms should emphasize the importance of consistently good customer service to its employees, so that good customer service becomes part of the ______.

organizational culture

A marketing strategy ______.

outlines what a firm plans to do to appeal to potential customers

In Stage 5, the purpose of a(n) _______ evaluation is to figure out problem areas.

performance

In Stage 5, the purpose of a(n) ________ evaluation is to figure out problem areas.

performance

n Stage 5, the purpose of a(n) _____evaluation is to figure out problem areas.

performance

TP works through each of the following steps EXCEPT ______.

planning a marketing strategy

The three major phases of the marketing plan are ______.

planning, implementation, and control

In ______ analysis, management evaluates the firm's various products and businesses, and then allocates resources according to potential profit outlook.

portfolio

Firms that achieve a sustainable competitive advantage through their merchandise and service offerings, and effective branding and positioning, are doing so using ______ excellence.

product

The ______ strategy offers a new product or service to a firm's current target market.

product development

A ______ ______ is a group of products that consumers perceive as similar in some way and that the firm regards as group.

product line

Some commonly used financial performance metrics include ______.

profits & sales revenue

A market development strategy uses an existing product offering to ______.

reach new market segments

In a(n) _____ diversification, the current target market and/or marketing mix shares something in common with the new opportunity.

related

Customer excellence is focused on ______.

retaining loyal customers and offering excellent customer service

Some commonly used financial performance metrics include ______.

sales revenue & profits

In the ______ step of the five-step marketing planning process, marketers evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.

second

Market ______ is the process of dividing the market into groups of customers according to their needs, wants, or characteristics.

segmentation

A marketing strategy identifies each of the following EXCEPT ______. -a firm's target market -a related marketing mix -staffing requirements for the marketing department -the bases upon which the firm plans to build a sustainable competitive advantage

staffing requirements for the marketing department

A ______ is a division of the firm itself that can be managed and operated independently from other divisions.

strategic business unit (SBU)

In a SWOT analysis, ______ refer to the positive internal attributes of the firm.

strengths

Licensing of the brand, a reputation for quality, and a large number of retail stores are examples of potential ______. These refer to a firm's internal attributes as identified during a SWOT analysis.

strengths

What are the four components of a SWOT analysis?

strengths, weaknesses, opportunities, threats

A(n) _______ competitive advantage is an advantage over the competition that is not easily copied and can be maintained over a long period.

sustainable

STP stands for segmentation, _______, & positioning.

targeting

Step 1 of the marketing plan is focused on ______.

the business mission and objectives

In the ______ step of the five-step marketing planning process, marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning.

third

In a SWOT analysis, ______ represent the negative aspects of the company's external environment and firms must constantly be on the defensive.

threats

A firm can build sustainable competitive advantage ______.

through unique business activities over a long period of time & when it outperforms competition

Aging equipment that slows down production is an example of a(n) ______ for the firm.

weakness