Marketing 370 SDSU Chp. 2

Which of the following actions, if it actually happened, would most likely support and enhance an operational excellence macro strategy?

Briggs & Stratton implementing new software to improve communications with its suppliers

T/F: Berkshire Hathaway Inc., a large property insurance company, owns a large chain of jewelry stores and has recently purchased Russell Corporation, a manufacturer of sporting goods. Berkshire Hathaway uses a diversification strategy.

True

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

True

T/F: Viewing customers with a lifetime value perspective, rather than on a transaction-by-transaction basis, is key to modern customer retention programs.

True

Many organizations use customer relationship software that allows the service representative to determine products that the customer is using. In doing so, the service representatives can offer promotions for said products. which kind of growth strategy is being used in this scenario?

market penetration

The ____ statement answers the question, "What business are we in, and where are we going?"

mission

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

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

Coca-Cola vending machines are found all over the world. The newest machines have an interactive screen that runs advertisements and allows users to obtain free photos of themselves and ringtones after they have brought a drink. The reason for the introduction of this new style of vending machines is to "allow the company to interact more directly with its customers." According to a SWOT analysis, the technology used by these machines is an example of a(n):

opportunity because it is part of Coca-Cola's external environment

Sandpiper Air seeks to differentiate itself from competing airlines, in part through innovative design and in-flight amenities available. Sandpiper Air is pursuing a(n) _________ macro strategy.

product excellence

After conducting STP analysis and developing strategies for each of the four P's, the organization now has to make ________ decisions

resource allocation

Proctor and Gamble (P&G) has hundreds of brands from razors to weight loss medication. Each has a distinct mission, control over its resources, and plans independently of the other brands of P&G. Each division would be an example of a(n):

strategic business unit

The advantage that cannot be copied by the competition is called a(n) _______ competitive advantage.

sustainable

iTunes has a(n) _______, as they have exclusive agreements with some of the most sought after music corporations that other digital music stores do not have.

sustainable competitive advantage

Lisa is using the Boston Consulting Group (BCG) approach to portfolio analysis 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. From his analysis, Lisa should be able to determine:

the product's relative market share

If Callahan Auto decides to shut down their brake pad division, this would be a _________ for Ford Motor Company, who uses these brake pads in their automobile production.

threat

T/F: The Hukilau Cafe is a popular restaurant for tourists in Hawaii. In a SWOT analysis for Hukilau, the possibility that a recession might cut back on tourism in Hawaii would be considered a weakness.

False

T/F: The company's objective is to increase sales next year. This is an example of a well-stated objective.

False

T/F: an example of market penetration occurs when a supermarket adds a new store.

False

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, which quadrant would define Nike's athletic footwear product line?

cash cow