BA 370 CHAPTER 2 UNGRADED PRACTICE

Target has announced that it would begin selling organic food products. In doing so, Target is most likely trying to A. gain government subsidies. B. attract a different market segment. C. reduce its costs. D. save the environment. E. offset cost-based pricing pressure.

B. attract a different market segment.

Suppose your university made a sizable investment in its career services—additional counselors, increased efforts to bring in recruiters, and other services aimed at helping students find jobs. This investment would enhance the university's ________ in an attempt to create value for students and recent graduates. A. segmentation strategy B. place strategy C. locational excellence strategy D. diversification strategy E. product value

E. product value

T/F: Esau wants to offer his existing design customers new goods and services. He is pursuing a market development strategy.

FALSE

T/F: Sandbar is a beach-themed casual restaurant group in Southern California. Most of its customers are tourists. In a SWOT analysis for Sandbar, the possibility that the recession might cut back on tourism in Southern California would be considered a weakness.

FALSE

T/F: Marlena manages the electrical turbine engine division of Dynamic Enterprises Corporation. Her unit has a somewhat different objective than other units, and Marlena makes most decisions independently, without consulting headquarters. It's likely that she manages a strategic business unit.

TRUE

T/F: Price should be based on the value that the customer perceives as a good "deal" for the product they receive.

TRUE

T/F: SanDisk's MP3 player product line (called the Sansa) has a low relative market share. The MP3 player market is expected to decline over the next few years. In Boston Consulting Group (BCG) portfolio analysis, the Sansa would be considered a dog.

TRUE

When Maria, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted, and her suit was wrinkled from her 10-hour plane trip. The night clerk found someone to dry clean Maria's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of A. customer excellence. B. operational excellence. C. product excellence. D. promotional excellence. E. global excellence.

A. customer excellence.

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 A. no single strategy is likely to be sufficient to build a sustainable competitive advantage. B. a situation analysis does not accurately predict a firm's strengths. C. customer excellence cannot be achieved. D. product excellence is the only true source of a sustainable competitive advantage. E. innovation is pointless because competitors will develop copycat offerings.

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

What type of analysis does management use to evaluate the firm's various products and businesses and allocate resources according to which products are expected to be the most profitable for the firm in the future? A. portfolio analysis B. SWOT analysis C. situation analysis D. initial analysis E. positioning analysis

A. portfolio analysis

During which step of the marketing planning process does a firm engage in segmentation, targeting, and positioning? A. conduct a situation analysis B. implement marketing mix C. identify and evaluate opportunities phase D. evaluate performance using marketing metrics E. define business mission and objectives

C. identify and evaluate opportunities phase

Andy decides to add new sales representatives and increase advertising to increase sales in her existing market for her current line of security systems. Andy is pursuing a ________ growth strategy. A. segment development B. market development C. market penetration D. diversification E. product development

C. market penetration

STP refers to A. segmentation, tendency, and preference. B. strategy, tenacity, and place. C. segmentation, targeting, and positioning. D. substance, traffic, and pattern. E. sustainability, targeting, and product.

C. segmentation, targeting, and positioning.

As part of her company's SWOT analysis, Selima is assessing the company's internal environment, including A. competition. B. the economy. C. strengths and weaknesses. D. demographics. E. opportunities and threats.

C. strengths and weaknesses.

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

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

Over the last few months, Fredo 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, Fredo has also identified what he believes is an advantage his competitors cannot match. Fredo 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. a marketing strategy.

Sharon has gone to the same hair salon for the past ten years. She believes that her stylist, the salon owner, does a better job of cutting and styling her hair than anyone else could. Other salons have opened closer to Sharon's home, some offering more plush facilities or lower prices, but she isn't tempted to switch. Sharon's attitude toward the salon is an example of A. a sustainable competitive advantage. B. a customer retention program. C. an opportunity, in SWOT analysis. D. customer loyalty. E. the benefits of a locational excellence strategy.

D. customer loyalty

Cheng is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to A. develop a business mission statement. B. choose the best target markets. C. reposition existing segments. D. divide the marketplace into subgroups. E. conduct a SWOT analysis.

D. divide the marketplace into subgroups.

The first objective in the evaluate performance phase of the marketing planning process is to A. determine whether to raise or lower prices. B. adjust advertising allocations. C. find ways to cut costs. D. review implementation programs and results using metrics. E. consider changing the target market.

D. review implementation programs and results using metrics.

Marvel was among the first content providers to launch dedicated series on Netflix, such as Jessica Jones, The Defenders, Iron Fist, and Luke Cage. It then decided to create a new channel for getting new offerings to consumers. The company was pursuing a(n) ________ strategy. A. market development B. market penetration C. operational excellence D. customer excellence E. product development

E. product development