CH. 2 final multi choice/ short answer
Product development While some of the new products may attract new markets (which would represent diversification), the initiative described is aimed primarily at developing new products to serve current customers, and so represents a product development strategy.
3M involves its customers in the process of developing new products. In this way, it can benefit from current customers' insights and develop new products that will meet these customers' needs. 3M is pursuing a __________ growth strategy.
B. market development
A __________ growth strategy employs the existing marketing offering to reach new market segments.
E. positioning strategy. GEICO is seeking to define itself in customers' minds as a very easy way to save money on insurance, to distinguish it from its competitors. This is the nature of positioning.
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
D. a firm's target markets A marketing strategy identifies three things: a firm's target market, a related marketing mix (its 4 Ps), and the bases on which the firm plans to build a sustainable competitive advantage.
A marketing strategy identifies three things: ________, a related marketing mix, and the bases on which the firm plans to build a sustainable competitive advantage.
Evaluate performance Craig should still evaluate performance, even if results were good. There's always a chance that he was successful due to luck, not due to the quality of his plan. There's also a chance that he did well, but that he could have done even better with a stronger plan.
Craig sees that his company's quarterly sales and profits are significantly above projections and says, "That's great. Let's keep doing what we've been doing." Craig is ignoring the __________ step of the marketing planning process.
A. star. A product with high relative market share in a high-growth market, in BCG analysis, is called a star. Stars typically require investment to continue to grow and to maintain or improve their market positions.
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)
E. operational excellence An operational excellence strategy depends on efficiency throughout the supply chain to keep costs low.
Firms achieve ___________ through efficient procedures and excellent supply chain management.
B. opportunities. Expansion of trade agreements is an external factor that could be favorable for firms that can take advantage. An external positive factor is an opportunity.
For U.S. businesses with strong export capabilities, expansion of U.S. trade agreements with other countries creates
Positioning strategy Packaging, colors, labels, and fonts all contribute to the consumer's impressions of a product and to their understanding of what it offers. This is therefore part of the product's positioning.
Imagine that you are in a convenience store choosing your favorite comfort food instead of being in a classroom taking this test. You might notice the packaging, colors, labels, even the fonts used on labels. All of these efforts are part of the marketer's
D. threat. For parts companies, Ford's actions represent external factors. A possible cutback in orders is a negative factor. An external negative factor is a threat.
In 2006, Ford Motor Company announced it would severely cut back automobile production. For parts companies supplying Ford Motor, this represented a(n)
E. product development Apple was creating a new product for its existing customers, which is a product development strategy. Some people might believe that the iPhone wasn't for Apple's existing customers, but was for new customers, which would make diversification the best answer. But since that answer isn't offered, product development is the best of the remaining examples.
In 2007, Apple Computer introduced its new iPhone, adding a cellular telephone, a camera, and Internet access to its iPod. The company was pursuing a(n) __________ strategy.
B. cash cows. Cash cows are product lines with high relative market share as the result of past investment, but in low-growth markets. They typically generate excess cash that can be used to support other product lines.
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 threat
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?
E. define the business mission By considering questions of fit and changing objectives, the planners are considering HP's business mission and how the acquisition might change it.
In mid-2010, Hewlett-Packard Company (HP) acquired Palm Computing, Inc., a manufacturer of personal devices and smart phones. 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.
B. product line In general, marketing resources are allocated to SBUs or product lines. The corporate level is too high unless it is a very small company with just a single product line, and the sales representative level is generally too low.
In most companies, portfolio management is typically done at the SBU or ___________ level of the firm.
Place
In recent years, cellular (mobile) service providers have worked hard to eliminate dead zones, providing customers with service wherever they traveled. By working to make the network available in more locations, cellular service companies were focusing on __________ value creation.
C. value proposition The value proposition is the value of the firm's offering, as explained to the target market. Promotion is responsible for communicating this value proposition via a variety of media.
In value-based marketing, promotion communicates the ________ to customers through a variety of media.
Diversification
Introducing newly developed products or services to a market segment the company is not currently serving is called
E. was due to factors within or outside the firm's control. Although the variations may point to opportunities for improvement in some units of the division, it may also be that some units faced challenges outside their control that were not faced by other units.
Kathy reviews her division's quarterly results and sees that some units exceeded goals while others did not. Next, she will attempt to determine why performance of the different units varied, and whether the variation
D. create a sustainable competitive advantage. Some of the potential answers here represent unethical (and potentially illegal) behavior. The best answer is far simpler--this type of operational excellence helps to create a sustainable competitive advantage by keeping costs low.
Marketers want their firms to develop excellent supply chain management and strong supplier relations so they can
E. product development
Marketers who design and offer new products and services to their existing customers are pursuing a ____________________ growth strategy.
D. operational Getting customers the merchandise they want, when they want it, in the required quantities, and at a lower price are all elements of operational excellence.
Because it was able to deliver merchandise overnight, in the required quantities and at a lower delivered cost than its competitors, Joe's Sports Shack was given exclusive rights to sell clothing with school logos for the school district. Joe's demonstrates ________ excellence.
Product development
Maryam called her auto insurance agent to renew her policy. The agent told her about new types of insurance that are now available--to cover her apartment, or even the engagement ring she just got from her fiancé. The agent was pursuing a ________________ growth strategy.
D. increased long term profits. Customer retention programs recognize that it is often worth spending something in the short term to keep a customer in the long term. This approach looks at the value of the customer relationship on a lifetime basis instead of considering only the current transaction.
Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in
C. market penetration Selling more existing services to existing customers is a market penetration growth strategy. If these were newly developed services, this would be a product development example.
Most banks now have customer relationship software which, 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.
D. a sustainable competitive advantage. (service)
Nordstrom's, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service has probably resulted in
D. implement marketing mix and resources Carla is dealing with implementation of the marketing mix--price cuts (Price), advertising (Promotion), and distribution changes (Place).
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. positioning. Segmentation and targeting decisions have already taken place at this point, with the decision to target men with the Coke Zero introduction. The can design is one element of the marketing mix, attempting to give men an understanding that this drink is designed for them.
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
D. a marketing strategy. The question describes the situation analysis, STP, and positioning steps of developing a marketing strategy, as well as a potential sustainable competitive advantage.
Over the past 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
B. market development Since Quitman wants to sell an existing product to new customers, this is a market development strategy.
Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the owner, wants to start selling the book to international students abroad. Quitman wants to pursue a __________________ growth strategy.
E. opportunities and threats. The external components of a SWOT analysis are opportunities and threats.
Samantha is charged with assessing her company's external environment as part of a SWOT analysis. Samantha will study her company's
D. review implementation programs and results using metrics. The starting point for evaluating performance is to compare goals to actual performance and, for any goals not met, to review implementation programs looking for explanations.
The first objective in the evaluate performance phase of the marketing planning process is to
A. enables firms to make appropriate adjustments. Once the causes of above- or below-goal performance are understood, firms can decide how the marketing plan should be adjusted. Some of the other answers might be true in some cases, but not in every case.
Understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals
C. it complements or boosts the sales of another product. Dogs can be worth keeping if they assist with the sales of another more successful product.
Using the BCG portfolio analysis, a dog should be phased out unless
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. Value creation through place has to do with making sure the product is available when and where the customer wants it. Some of the other options (like the creative displays, or putting the product in the front of the store) may cause more consumers to notice the product, but the correct answer is the one that best describes ensuring that the product is available to the customer.
Value creation through place decisions for a consumer product involves
D. product development It is reasonable to suppose that athletic clothing and gym bags would appeal to the same customers who already purchased Nike shoes. Thus, this is an example of offering new products to the same customers, which is a product development strategy.
When Nike, the prominent athletic shoe manufacturer, branched out from selling only athletic shoes to also offering athletic clothing and gym bags, what type of growth strategy did this represent?
E. product excellence The innovations described are in the area of the product offering, and so represent product excellence. The description of Singapore Airlines in the text also mentions a focus on customer excellence through specialized training to flight attendants, resulting in outstanding service, but those features are not included in the question.
Singapore Airlines seeks to differentiate itself from competing airlines, in part through innovative design of its airplane seats and in-flight entertainment systems. Through continuous innovation in these areas, Singapore Airlines is pursuing a(n) __________ macro strategy.
D. sustainable competitive advantage Satisfied customers, if this satisfaction leads to loyalty, is a source of sustainable competitive advantage.
The automobile manufacturing industry closely watches annual consumer satisfaction surveys. For years, Japanese car companies consistently had the highest levels of customer satisfaction, creating a(n) __________ for these companies.
E. question mark This is the definition of a question mark. If the product is infused with resources, it has the potential to become a star.
a product that is in a high-growth market but has a low market share would be classified as ________ on the BCG matrix
B. resource allocation Monique has chosen a target market, determined positioning strategies, and developed marketing mixes. She now has to consider available resources and determine how they will be allocated across the different options available for implementation.
after conducting STP analysis for her custom auto parts store and developing strategies for each of the four Ps, Monique now has to make _____________ decisions.
B. attract a different market segment. Walmart was probably trying to attract customers who didn't shop there because they wanted to buy organic products. These customers represented a different market segment for Walmart.
in 2006, Walmart announced that it would begin selling organic food products. In doing so, Walmart was probably trying to
A. customer excellence. The Ritz-Carlton clerk went to extra trouble to offer excellent customer service, which is one way to pursue a customer excellence strategy.
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
C. a sustainable competitive advantage
When a pharmaceutical company develops a new medication, it typically applies for a patent to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish
Planning
When conducting a SWOT analysis, in what phase of the strategic marketing process is an organization presently engaged?
C. segmentation, targeting, and positioning.
When discussing the marketing planning process, STP stands for
B. evaluate performance and make adjustments.
When firms successfully implement poor strategies (perhaps due to good luck) or do a poor job of implementing good strategies, it can be difficult to
A. that build on their strengths relative to those of their competitors. When firms take advantage of their strengths to develop positioning, they stand a good chance of success as long as these strengths translate into greater value for consumers.
When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportunities
more risky than expansion in domestic markets. International expansion is usually riskier because there are many differences--cultural differences, economic considerations, and political and legal differences, for example--to consider.
When pursuing a market development strategy, expanding into international markets is generally
B. 3M Corporation, implementing new software to improve communication with its suppliers. By improving communication with its suppliers, 3M would probably improve efficiency of the supply chain, which is how firms achieve operational excellence. The ability to offer lower prices, as in the McDonald's example, is a potential benefit enjoyed by firms that achieve operational excellence, but lower prices do not help to create operational excellence.
Which of the following actions, if it actually happened, would be the most likely to support and enhance an operational excellence macro strategy?
C. implementation programs, to see if the promotion was handled consistently in the different stores. The manager should seek to understand the differences in implementation programs between the different stores. Perhaps she will find that the successful stores did things the other stores didn't. While studies of national trends might offer interesting and useful information for the overall planning process, to understand the difference between stores she needs to focus at a local level.
A regional manager at GNC, a chain of retail stores selling nutritional supplements, is reviewing sales data after a recent in-store promotion. The data show success in some stores and limited response in others. The manager will probably next review the company's
C. market penetration In this situation, A&F is trying to sell more of its existing products to its current target market, which is a market penetration strategy. Market development would involve attracting new market segments, but the company is assuming that the friends of current customers will be similar to those customers (and thus part of the same market segment).
Abercrombie & Fitch, a clothing retailer, includes a SHARE link on the product pages of its website. This link encourages an Abercrombie customer to post a link (perhaps showing a new style of jeans) on Facebook or Twitter. Abercrombie & Fitch hopes that the customer's friends (who are probably very much like current customers) will click the link, visit the page, and make purchases. This is an example of a __________ growth strategy.
C. market penetration Adrienne is trying to sell more of her current products to current customers, which is a market penetration strategy.
Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy.
B. Perform a situation analysis. (step 2)
After defining the business mission, what should a firm do next to develop a marketing plan?
E. the company provides products with a high perceived value. Excellence in human resources management is one aspect of operational excellence, for all of the reasons listed except the company provides products with a high perceived value. This relates to product excellence, not operational excellence.
Allen is in the marketing department of a mid-sized firm that develops and sells communications systems. He is proud of the Human Resources area in the company that provides the firm with excellent employees. Allen himself really enjoys his work, but he knows the work of HR helps create an operational advantage for the firm because of all of the following EXCEPT
Students might reflect on their own personal circumstances, but three plausible responses include the choice and process they used to select the college or university, a potential marriage, and pursuing a job.
Although most people do not have a personal marketing plan, when would one be appropriate?
C. strengths and weaknesses.
As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including
B. Customer relationships should be viewed from a lifetime value perspective. Taking a lifetime value view of customer relationships demonstrates that profits through the entire relationship matter more than short-term profitability. While it is true that STP should not be rushed, this is not the focus of customer retention programs. Maximizing profits at the expense of relationships is almost the opposite of customer retention programs, since it focuses on quick profits at the possible expense of larger profits in the long run. The other two incorrect choices may be true in a few instances but they are often not true; customer excellence can be extremely difficult to achieve, and customer retention does not necessarily demand high levels of spending.
Customer retention programs are based on what concept?
C. place and value delivery Place is the element of the marketing mix that relates to making sure the firm's offerings are available to customers where and when they want them. By allowing customers to make flight reservations inside Facebook, Delta is increasing convenience for consumers by allowing them to make the reservations without leaving Facebook, thus delivering value through Place.
Delta Airlines is among the companies experimenting with selling products and services on its 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. ethical CDSTEP stands for Cultural, Demographic, Social, Technological, Economic, and Political forces.
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?
B. implementation phase In the implementation phase, marketing managers identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning (STP) (Step 3).
During which phase of the marketing planning process does a firm identify and evaluate different opportunities by engaging in segmentation, targeting, and positioning?
Place Place refers to getting products to customers when and where they need/want them. This is what electronic downloading of e-books offers.
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
C. sustainable competitive advantage The other items listed could help the retailers to develop or evaluate a plan to achieve a sustainable competitive advantage, but on their own they will not be enough. Small retailers usually cannot compete with larger competitors on price. But they might survive by offering services their customers value (and are willing to pay extra to get), by offering specialty products not carried by larger retailers, or by locating in places where the larger stores don't want to (or can't) locate.
Even when large discount retailers enter a market, a few small, local retailers survive and prosper. These small retailers have probably developed a(n) ________ that allows them to survive.
A. no single strategy is likely to be sufficient to build a sustainable competitive advantage. The example shows that competitors strive to copy good ideas. But that doesn't mean innovation is pointless--being the first to do something can still give you an advantage if you do it best, or if you innovate in ways that are difficult to imitate. What this example shows is that you cannot come up with a single idea, stay with it long term, and expect to sustain a competitive advantage. You must always look for new sources of advantage.
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
E. product development The product development strategy is one in which firms develop new products for their existing customers.
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.
D. target market segment. Stacy was created to help Celestial's marketers to understand its major target market segment. The segment is more than just demographic. It includes elements of Stacy's behavior (reading instead of TV). Stacy isn't Celestial's positioning--rather, the company needs to position its products to help women like Stacy to understand the value Celestial products can offer them.
For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25-50-year-old, educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary
E. customer excellence. Superior service is a key facet of a customer excellence strategy.
Fourteenth National Bank prides itself on offering better service than any of its competitors. If this is accurate, and if customers recognize and value Fourteenth National's superior service, the bank creates and delivers value through
E. macro, or overarching, strategy Gerald's Tire Store has a macro strategy focusing primarily on customer excellence, based on the quality of customer service mentioned in the question.
Gerald's Tire Store sets itself apart from competitors by the extra attention it pays to providing fast, courteous service in a clean, professional-looking environment. Gerald's has used this strategy for over 40 years, expanding to 15 outlets. Gerald's Tire Store has created a ___________________ to create and deliver value and to develop a sustainable competitive advantage.
Promotion
Google and other search engines allow marketers to bid to have their ads shown when consumers search on keywords related to the firm's products. These marketers are attempting to create value through
Market development This is a market development strategy because the military is a new type of customer, but H&R's current offerings would be used.
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. the product's relative market share. A company's relative share of a market is determined by comparing its market share to market shares of competitors.
Heather has been assessing a number of her firm's products using, the Boston Consulting Group approach to portfolio analysis. She has been trying to assess the strength in a particular market and is looking at the sales of the product and the overall market as well as the sales of competitors. Heather is trying to determine:
C. examine its operations and customer relations to identify significant things competitors cannot easily copy.
If a firm wants to develop a sustainable competitive advantage, it should
B. volume; lower margins and profits If a price is set too high, it will not generate much volume; if it is set too low, it may result in lower margins and profits.
If a price is set too high, it will not generate much ________; if it is set too low, it may result in ________.
C. how to allocate resources among his four stores. Lamar should already have considered a strategy shift in an earlier step of the planning process, and should have evaluated the impact of Disney World and of possible government regulation in a situation analysis. After STP analysis, he should be considering his implementation plan for the four Ps and deciding how to allocate resources. In this case, he could invest equally in all four stores, or he could adjust his allocations according to the situation at each store.
Lamar owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis and has just finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will likely involve determining
Positioning Positioning is the creation of a clear, distinct understanding of what the product does or represents compared to competitors. Celebrity endorsers are often used to convey this message.
LeBron James, Alex Rodriguez, and other athletes are paid huge sums of money by companies for celebrity endorsements. If endorsements by these athletes create a clear understanding among consumers of the companies' products in comparison to competing products, they can help with the firm's ________________ strategy.
D. divide the marketplace into subgroups. The first stage of an STP analysis is segmentation, which involves dividing the market into subgroups. Business mission development and SWOT analysis take place before STP analysis starts, and targeting and positioning are later stages in STP analysis.
Lionel is asked to conduct an STP analysis for his firm. The first step he should perform in this analysis is to
weakness The management of the just-in-time system is an internal issue; if it is being done badly, that makes it a weakness.
Manufacturers who use just-in-time manufacturing systems coordinate closely with suppliers to ensure that materials and supplies arrive just before they are needed in the manufacturing process. While just-in-time systems can offer major advantages in terms of inventory costs, they must be carefully managed. If a firm found that its just-in-time system was badly managed, leading to frequent manufacturing delays due to missing parts, this would represent a(n) __________ in a SWOT analysis.
E. demographic This segment is being formed using age, a demographic factor.
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.
C. positioning strategy. These firms are positioning themselves against the competition, emphasizing their local presence to suggest that this local experience helps them to do a better job of serving consumers.
Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms'
B. market development By restricting the ability of lawyers and other professionals to easily expand their businesses across state lines, states are preventing these professionals from selling existing services to new customers. These would be market development opportunities.
Many states create licensing requirements for a variety of professionals (such as lawyers and accountants) designed to restrict entry into their market by professionals from other states. This strategy limits ____________ growth strategies.
Diversification Individually packaged frozen meals would be a new product area for Sodexo. (Even though it is still a food, the manufacturing process would be quite different from the bulk food service required by cafeterias and dining halls.) Consumers in grocery stores would also be a new market, since Sodexo currently serves universities, the military, and the like. Thus, with a new market and a new product, this would be an example of diversification.
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.
B. the lifetime value of customers. By spending money now in the hope of receiving revenues later, banks are recognizing that the lifetime value of a customer relationship must be considered when choosing target markets. This does not mean that costs don't matter at all, but it means that a relationship that is initially unprofitable may become profitable as it continues.
Some banks have begun offering special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth. But bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize
B. Locational excellence Online courses are available anywhere, as long as the student has Internet access and a computer or mobile device. Online delivery may create efficiencies (related to operational excellence) and may produce better service (customer excellence) or a better educational product (product excellence), but we cannot be sure from the question that these forms of excellence are being pursued.
Some universities offer online degree programs, competing with traditional colleges based on the convenience of taking online courses. These online programs are pursuing which macro strategy?
E. She should seek more information about why the stores had different results before making a decision. There could be a reason one store performed more poorly than the others that is outside the store manager's control. For example, perhaps it is located in a shopping center that has lost tenants and has several empty storefronts. The shopping center would probably experience reduced traffic, which would likely hurt sales at the Subway shop.
Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from two to five percent over last year's sales at Stores 1 and 2 but fell two percent at Store 3. Based on this information, how should Marcia reward (or punish) her store managers?
Product value The product the students buy--a degree--is enhanced by the ability to find a good job after graduation. Thus, this additional investment is related to the product value.
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 to find jobs. This investment would enhance the university's _____________ in an attempt to create value for students and recent graduates.
C. sustain an advantage over competitors.
Taking steps to encourage customer loyalty is one way to
D. Nike's athletic shoe business still requires some investment but is likely to produce excess resources that can be invested in other divisions of the company. A market leader in a low-growth market is, in BCG terms, a cash cow. This means that, although Nike certainly wants to maintain its market leadership position, the athletic shoe business can be expected to generate excess resources that can be invested in other areas of the company. This question deals with the athletic shoe market as a whole--note that there could be niches that are growing rapidly and where heavier investment might be warranted.
The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business?
C. captures the value customers perceive that they are receiving.
The idea of value-based marketing requires firms to charge a price that
C. the resources the manager controls. The metrics used to evaluate a firm vary depending on the level of the organization at which the decision is made, and the resources the manager controls.
The metrics used to evaluate a firm vary depending on the level of the organization at which the decision is made, and
B. market segmentation. The process of dividing the market into groups of customers with different needs, wants, or characteristics--who therefore might appreciate products or services geared especially for them--is called market segmentation.
The process of dividing the market into groups of customers with different needs, wants, or characteristics is called
Answers to the first part will vary but should demonstrate how much business a customer brings in over a lifetime. For example, a customer spending $4.00 at Starbucks, five days per week, for 20 years equals $20,800. Customer retention is profitable because it costs more to get new customers than to retain existing ones.
The text states, "Viewing customers with a lifetime value perspective, rather than on a transaction-by-transaction basis, is the key to modern customer retention programs." Create an example demonstrating a lifetime value perspective. Why is customer retention almost always a profitable marketing strategy?
D. market growth rate The BGC matrix uses market growth rate on one axis and relative market share on the other. The other factors are not unimportant--they are simply not part of BGC portfolio analysis.
To determine how attractive a particular market is, using the BCG portfolio analysis, __________________ is established as one axis.
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. A threat is an external negative event. Being the target of a lawsuit is certainly a negative event, and the law firm is external to the company. Problems in balancing manufacturing capacity are internal to the firm and so are weaknesses. Potential demand in China is a positive external factor--an opportunity. A lower cost structure is a positive internal factor--a strength. The gas mileage issue might sound like a threat in that competitive offerings are superior, and competitors are external to the firm; however, the example states that gas mileage is inferior due to outdated technology, which is an issue internal to the firm.
Which of the following factors, listed in a situation analysis for a major U.S. auto manufacturer, is the best example of a threat?
B. Recent consumer studies have indicated that Chinese consumers prefer American cars. An opportunity is an external positive event. Potential demand in China could be a positive thing for the company, and since it deals with Chinese consumers, it is an external factor. A lower cost structure is a positive internal factor--a strength. The remaining factors are negative, and so cannot be opportunities.
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. *********** lowering prices B. having a well-known brand name C. achieving high levels of customer satisfaction D. using patented technology E. creating an efficient supply chain Simply cutting prices is probably the easiest strategic move for a competitor to copy. In contrast, creating an efficient supply chain that lowers your costs, allowing you to pass those savings on to customers in the form of price cuts, can create a sustainable competitive advantage.
Which of the following is LEAST likely to provide a sustainable competitive advantage?
A. market penetration B. market development C. ************* segment development D. diversification E. product development The four growth strategies are market penetration, market development, product development, and diversification.
Which of the following is NOT one of the four major growth strategies marketers typically use?
E. planning excellence The four overarching strategies are locational excellence, customer excellence, operational excellence, and product excellence.
Which of the following is NOT one of the four overarching strategies to create and deliver value and to develop sustainable competitive advantages?
B. positioning the product using a clear, distinctive brand image The incorrect options all describe ways to create new product models that are probably easy for competitors to copy (or that, in one case, copies competitors' offerings). A clear, distinct positioning, though, offers a more sustainable advantage through product excellence.
Which of the following is the best way to build a sustainable competitive advantage using product excellence?
B. identify opportunities The steps, in order, are: (1) define the business mission, (2) situation analysis, (3) identify opportunities, (4) implement marketing mix and allocate resources, and (5) evaluate performance.
Which of the following is the third step in the marketing planning process?
D. a sustainable competitive advantage. Zara has established an advantage that is difficult to copy--this is a sustainable competitive advantage.
Zara is a women's clothing retailer headquartered in Spain, with stores located in many countries. Zara has developed a quick-response system that allows store merchandise to be adjusted rapidly to fit changing customer preferences. Every aspect of Zara's operation is optimized for this system, making it difficult for competitors like The Gap to duplicate. Zara has established
C. Market positioning Market positioning 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.
________ 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.