Chapter 3

Coca-Cola is a syrupy drink. It generally uses mass advertising, is sold through convenience stores and vending machines, and is usually sold at around $1.25 per can. What do these facts comprise? a. Coke's marketing mix b. Coke's product placement c. Coke's product mix d. Coke's internal environmental placement

a. Coke's marketing mix

What does the SWOT acronym refer to? a. a firm's analysis of its strengths, weaknesses, opportunities, and threats b. a firm's analysis of its sales, width of product mix, observations, and technology c. a firm's analysis of its service levels, willingness to spend, organizational culture, and total revenues d. a firm's analysis of its situations, wealth, organizational strengths, and target markets

a. a firm's analysis of its strengths, weaknesses, opportunities, and threats

Which of the following provides the tool for evaluating marketing results in light of the marketing plan's goals and for correcting actions that do not help the marketing organization reach these objectives within the budget guidelines? a. control b. budgeting c. implementation d. planning

a. control

Kenneth Orton has just finished implementing his marketing plan. He must now check the extent to which his objectives have been achieved. Which process is this part of? a. evaluation b. implementation c. control d. heuristic measurement

a. evaluation

American Express used to offer the Cobalt card, a preloaded credit card, to 13- to 22-year-olds looking to make online purchases. While American Express had previously supplied credit cards only to many adults, this was a market that was not being served. Which type of strategy is the Cobalt card program an example of? a. market development b. market penetration c. product penetration d. product development

a. market development

Railroads often offer their customers a trucking service for local delivery or trailers for piggybacking loads to their final destination. Which of the following statements justifies the addition of these services to their strategic plans? a. Diversification is needed to survive. b. Their mission statements reflect their belief that they are transportation companies, not just railroads. c. New business units are needed to continue growth. d. Local delivery has high market attractiveness.

b. Their mission statements reflect their belief that they are transportation companies, not just railroads.

What do patents on allergy relief medications such as Allegra and Claritin give the pharmaceutical companies that own the patents until the patent expires? a. a targeted market position b. a sustainable competitive advantage c. a situational advantage d. a strategic focus

b. a sustainable competitive advantage

CentralPulse is Europe's largest manufacturer of hip and knee replacement joints. Which of the following would best describe the surgeons and hospitals on which CentralPulse will focus its marketing efforts? a. CentralPulse's strategic business unit marketing b. CentralPulse's marketing sample c. CentralPulse's target market d. CentralPulse's sales unit marketing

c. CentralPulse's target market

There are many different kinds of cheese. According to its ads, only Jarlsberg Lite has 50 percent less fat, 60 percent less cholesterol, and 100 percent of the taste of other kinds of cheese. What does this advertising statement describe? a. Jarlsberg Lite's strategic edge b. Jarlsberg Lite's tactical strength c. Jarlsberg Lite's competitive advantage d. Jarlsberg Lite's marketing mix

c. Jarlsberg Lite's competitive advantage

Although the Virgin Group originally started off in the publishing industry, it has since moved in to various other markets including space, cellular, and cola. The Virgin Group regularly uses which strategy? a. product placement b. market penetration c. diversification d. market development

c. diversification

Scenario 3-1: Lincoln Corporation, the biggest maker of measurement instruments for medical laboratories, agreed to buy the radiation-monitoring products unit of Iris to gain European customers. Iris (of France) is Europe's number-one distributor of building materials, and its radiation-monitoring unit did not support the company's mission statement. Refer to the scenario. What sort of strategy did Lincoln engage in? a. penetration b. divesting c. market development d. diversification

c. market development

Beverly Morgan started her home-based business, Kitz 4-U Inc. in Hamilton, Ontario, by selling first aid kits to fundraising organizations. She has also developed three other affordable "Everything You Need in a Pinch" kits, the Bowling Kit, the Golf Kit, and the Travel Kit. She owns the only company in Canada that creates kits for fundraisers. What sort of advantage does Kitz 4-U Inc. have? a. cost competitive advantage b. brand name advantage c. niche competitive advantage d. market advantage

c. niche competitive advantage

Compaq Computer's decision to charge customers for phone technical support to cut the high cost of phone support and to encourage customers to read documentation was a failure because consumers like the human touch. As a result, Compaq decided to focus its resources on reaching the inexpensive home computer market segment through enhanced customer service. What did Compaq engage in? a. product enhancement evaluation b. alternative selection c. strategic planning d. tactical resource realignment

c. strategic planning

Baths from the Past is a small company that sells reproduction sinks, bathtubs, toilets, and faucets. Company management is currently conducting a formal study of its current strengths and weaknesses by looking at the company's profit and sales histories and searching for opportunities and threats by studying consumer trends. What is Baths from the Past conducting? a. an environmental scan b. a marketing audit c. a trend analysis d. a SWOT analysis

d. a SWOT analysis

Patricia Curtis has been running the Ferrets First Rescue and Shelter (FFRS) since 1996. FFRS is in the business of ferret pickup and rescue, as well as ferret boarding and training, and education for ferret owners. Curtis would like to expand her operations, and has been asked to write a marketing plan in order to apply for a bank loan. She knows she can better serve ferrets and ferret owners if she can expand her target audience to schools, animal control officers at city facilities, and pet stores. To do this, she must increase marketing communications. Refer to the scenario. What would "Serving ferrets and their owners in a five-county area" be an example of? a. a market strategy b. a business arena c. a situation analysis d. a mission statement

d. a mission statement

Yuengling, founded in 1827, is the oldest brewery in the United States. It has survived by severely limiting sales of the beer and creating a mystique about the brand. In areas where the beer is sold, its brand name is used to identify all beer (similarly to the way Kleenex is used by many to represent all types of tissues). Its competitors all wanted to expand their markets, but Yuengling chose to focus on this smaller market. What has this strategy given the brewery? a. a brand name strategy b. a price differentiation advantage c. a product competitive strategy d. a niche competitive advantage

d. a niche competitive advantage

What is an SBU? a. a strategic marketing unit b. a specific business unit c. a plan to work collaboratively with other parts of the company d. a subgroup of a single business

d. a subgroup of a single business

Giorgio Armani, the Italian fashion group, announced plans to launch a $1 billion international luxury hotel chain containing ten hotels and four resorts before the end of 2015. This will allow the company to both take advantage of an international trend toward luxury lifestyle consumerism and achieve its growth objectives. Refer to the scenario. Since this was Armani's first venture into the hotel industry, what would it be an example of? a. market development b. product customization c. product penetration d. diversification

d. diversification

Coca-Cola drink vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements. The reason for the introduction of this new-style vending machine is to "allow the company to interact more directly with its customers." According to a SWOT analysis, what is the technology used by these machines examples of? a. strengths because they are part of Coke's external opportunities b. weaknesses because Coke cannot control technology or consumer behaviour c. advantages because they are part of Coke's marketing environment d. opportunities because they are part of Coke's external environment

d. opportunities because they are part of Coke's external environment