homework 2

A company can offer greater customer value by either charging lower prices than competitors or offering more benefits to justify higher prices.

True

An organization's mission statement should emphasize its intentions toward customers and the customer experience the organization seeks to create.

True

Which of the following best describes positioning?

arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products

Most firms begin the strategic planning process by developing detailed marketing and departmental plans that support a company-wide plan.

False

Use the information below to answer the following questions. Marcos started his food truck business 10 years ago with one older model truck he built from the ground up. Through hard work, good food, and a positive attitude his business thrived. His food was not the cheapest around but it was the best. Marcos's company, Meals on Wheels, now ran eight food trucks in the metropolitan area and Marcos still wanted to expand. His plans include expansion into several other major cities but he wants to change his mission statement from the one he came up with years ago when he was starting out. The old mission statement, Fast food to your door, simply did not fit his vision for his company as a mobile restaurant serving great food of all types to clients with limited time for lunch. Marcos's business doesn't need a marketing-oriented mission statement since the business model is simplistic.

False

________ refers to the process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Market targeting

A ________ is purposeful, specifying what an organization wants to accomplish in the larger environment.

mission statement

In a SWOT analysis, which of the following would be considered a weakness of a company?

obsolete technologies used by the company

Traxx is a newly emerging shoe manufacturing company. After extensive market research, Traxx divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, Traxx has engaged in market ________.

segmentation

________ refers to reducing the business portfolio by abandoning products that no longer fit the company's overall strategy.

Downsizing

Use the information below to answer the following questions. Marcos started his food truck business 10 years ago with one older model truck he built from the ground up. Through hard work, good food, and a positive attitude his business thrived. His food was not the cheapest around but it was the best. Marcos's company, Meals on Wheels, now ran eight food trucks in the metropolitan area and Marcos still wanted to expand. His plans include expansion into several other major cities but he wants to change his mission statement from the one he came up with years ago when he was starting out. The old mission statement, Fast food to your door, simply did not fit his vision for his company as a mobile restaurant serving great food of all types to clients with limited time for lunch. Which of these mission statements that Marcos is considering is more marketing oriented?

Food matters, that's why we bring the best to you.

Which of these might be a reason for a firm to downsize?

The firm has grown too fast.

Use the information below to answer the following questions. Marcos started his food truck business 10 years ago with one older model truck he built from the ground up. Through hard work, good food, and a positive attitude his business thrived. His food was not the cheapest around but it was the best. Marcos's company, Meals on Wheels, now ran eight food trucks in the metropolitan area and Marcos still wanted to expand. His plans include expansion into several other major cities but he wants to change his mission statement from the one he came up with years ago when he was starting out. The old mission statement, Fast food to your door, simply did not fit his vision for his company as a mobile restaurant serving great food of all types to clients with limited time for lunch. What is Marcos attempting to deliver that should be defined in his mission statement?

a great food experience

The four Ps model has been challenged because it omits or underemphasizes important activities such as services. It's also been criticized for taking a seller's, rather than a buyer's, viewpoint. The more recent four As framework complements the traditional model and includes ________.

acceptability, affordability, accessibility, and awareness

In a SWOT analysis, which of the following would most likely be considered a strength of a company?

an improvement in the company's production technology

The marketing concept suggests that the company strategy should revolve around ________ and building profitable relationships with important consumer groups.

creating customer value

Which of the following best describes market segmentation?

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors

Ferrari sells only 2,200 of its very high-performance cars in North America each year at very high prices. The company is appealing to a specific ________.

market segment

In a SWOT analysis, ________ refer to favorable factors or trends in the external environment that a company may be able to exploit to its advantage.

opportunities

Ford Motor Company issuing a recall that requires customers to schedule appointments with car dealerships to repair faulty igniters would have the greatest impact on the ________ component of its marketing mix.

place

Which component of the marketing mix refers to the goods-and-services combination a company offers to its target market?

product

A company should target market segments in which it can ________. Correct!

profitably generate the greatest customer value and sustain it over time

CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example, it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis?

strength

In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance.

threats

Cosmetics firm SatinSilk is revamping its mission statement and advertising strategy. The CEO stresses that the new mission statement should be market-oriented rather than product-oriented. Which of the following mission statements will best suit the company?

to give customers the complexion they dream about by providing products suited to their needs