BUS 346 Ch. 2

When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged? a. Planning b. Segmentation c. Implementation d. Control e. Metrics

a. Planning

One example of a customer loyalty program is a. a frequent diner card at a restaurant, offering a free appetizer for every $100 in food purchases. b. a quantity discount offered for large purchases at an office supply store. c. an everyday low price policy on all products at a grocery store. d. an extensive customer service training program for new employees at a hair salon. e. seasonal sales on top selling items.

a. a frequent diner card at a restaurant, offering a free appetizer for every $100 in food purchases.

Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can a. use their power within the supply chain to force weaker firms to accept less favorable pricing. b. create a sustainable competitive advantage. c. control prices and lock in margins. d. persuade stores to refuse to carry competitors' products. e. justify charging higher prices than competitors do.

b. create a sustainable competitive advantage.

When Ramona, 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 ten-hour plane trip. The night clerk found someone to dry clean Ramona'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. Promotional excellence b. Product excellence c. Operational excellence d. Customer excellence e. Global excellence

d. Customer excellence

For many years, because of the size of the U.S. economy, domestic companies ignored international markets, preferring instead to develop new product offerings for existing customers. These companies were pursuing a ________________ strategy. a. Product development creation through place decisions for a consumer product involves b. Market development c. Segment development d. Diversification e. Market penetration

a. Product development

In 2006, Ford Motor Company announced it would severely cut back automobile production. For parts companies supplying Ford Motor, this represented a a. Threat b. Opportunity c. Weakness d. Strength e. Strategic plan

a. Threat

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. Market penetration estimate b. Target marketing c. Positioning d. Situation analysis e. Diversification

b. Target marketing

In its discussion of Nike and Adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with Adidas, which got its start designing soccer shoes. On a SWOT analysis for Adidas, how should Nike's acquisition of Umbro be categorized? a. Weakness b. Threat c. Opportunity d. Segment e. Strength

b. Threat

Value creation through place decisions for a consumer product involves a. putting the product in the front of the store. b. focusing exclusively on Internet sales to reduce supply chain costs. c. 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. d. pricing products differently at different stores. e. designing creative displays to capture consumers' attention.

c. 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.

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. customers rarely remain loyal to companies. b. no single strategy is likely to be sufficient to build a sustainable competitive advantage c. innovation is pointless because competitors will develop copycat offerings d. product excellence is the only true source of a sustainable competitive advantage e. situation analysis is a continuous process

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

Coca-Cola sells two zero-calorie versions of Coke: Diet Coke and Coke Zero. It has chosen to attempt to appeal to men with Coke Zero. In addition to launching an ad campaign featuring men enjoying Coke Zero, Coca-Cola also designed a masculine looking can for Coke Zero, with bold red lettering on a black background. This specially designed can is an example of a. Market segment b. Market penetration c. Positioning d. Segmentation e. Targeting

c. Positioning

__________ 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. Market segmentation b. A sustainable competitive advantage c. Positioning d. Targeting e. A customer excellence strategy

c. Positioning

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 company has lower manufacturing costs than its key competitors, allowing it to sell its cars at low prices. b. The factory that manufactures a new, popular car cannot build enough vehicles to meet the demand, while other factories have excess capacity. c. Due to outdated engine technology, the company's cars get lower gas mileage than those of major competitors. d. Recent consumer studies have indicated that Chinese consumers prefer American cars. e. 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.

e. 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.

Many of today's college graduates will make their living providing goods and services to baby boomers, the large group of Americans born in the period after World War II. Baby boomers are a _________________ market segment. a. Behavioral b. Product-based c. Social d. Psychological e. Demographic

e. Demographic

After defining the business mission, what should a firm do next to develop a marketing plan? a. Develop a positioning strategy b. Select a target market c. Implement the four Ps d. Conduct an STP analysis e. Perform a situation analysis

e. Perform a situation analysis

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 a. Question mark b. Dog c. Anchor d. Cash cow e. Star

e. Star

Which of the following is the best way to build a sustainable competitive advantage using product excellence? a. positioning the product using a clear, distinctive brand image b. focusing on being cutting edge and continually eliminating older features that are still inuse by customers c. copying the market leader's features, but at a lower cost d. being the first to offer customers desired features, even if competitors can copy them easily e. having the most features on each model

a. positioning the product using a clear, distinctive brand image

When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities a. where customer excellence can be substituted for product excellence. b. in international markets. c. that build on their strengths relative to those of their competitors. d. for diversification. e. where value-based pricing can

c. that build on their strengths relative to those of their competitors.

Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy? a. Singapore Airlines, installing more comfortable seats in the economy-class cabins of its airplanes. b. Nike, opening hundreds of new company stores in high-traffic shopping areas. c. Adidas, inviting customer suggestions to guide the design of the next generation of Air Jordan shoes. d. 3M Corporation, implementing new software to improve communication with its suppliers. e. McDonald's, lowering prices on its coffee drinks.

d. 3M Corporation, implementing new software to improve communication with its suppliers.