MKT Chpt 2
The macro strategies for developing customer value include each of the following except:
marketing excellence
A _____ identifies a firm's target markets, a related marketing mix, and the bases upon which the firm plans to build a sustainable competitive advantage?
marketing strategy
A _____ is a measuring system that quantifies a trend, dynamic, or characteristic.
metric
The product development strategy incorporates a _____ product or service to a firm's _____ target market.
new; current
A firm, particularly a small privately owned business, may set a variety of goals-- for example, achieveing positive social change, being the most innovative among the competitors, and avoiding high risk levels-- because _____.
not all objectives are profit-driven
A written marketing plan provides a reference point for evaluating whether or not the firm met its _____.
objectives
Match the macro strategies for developing customer value with the specific action that organizations can take to achieve them.
operational excellence - excellent supply chain management, strong supplier relations, and human resource management product excellence - effective branding and positioning locational excellence - high density of stores and closer proximity to customers
Green marketing efforts and expansion outside the United States are potential _____ for a firm.
opportunities
Firms must instill good service over the long term to consumers so it becomes part of _____ and helps retain loyal customers.
organizational culture
A market _____ growth strategy focuses on increasing sales of the firm's current products to its current target markets.
penetration
_____ holds the primary responsibility of enhancing the value of the company's products for its customers and other constitutes.
Marketing
_____ is the only marketing activity that actually brings in money.
Pricing
Which of the following is true regarding SBUs?
An SBU may have a different mission or objective from other divisions
Which of the following are examples of how firms use information from loyalty programs?
Analyzing buying habits of customers; Tailor their offering to meet the needs of customers
Which of the following strategies are frequently used to achieve locational excellence?
Closer proximity to customers; High density of stores
A market penetration strategy, as one of the possible growth option, may be achieved by which of the following?
Encouraging current customers to patronize the firm and the brand more often
Which of the following is an example of loyalty to a company in a consumer's daily life?
Continuing to shop at Dunkin' Donuts even if Starbucks opens more convenient locations and offers slightly lower prices.
Step 5 of the marketing plan, which entails evaluating the performance of the marketing strategy using marketing metrics and taking any necessary corrective action, is part of which phase?
Control phase
Firms achieve operational excellence through which of the following?
Excellent supply chain management; Efficient operations; Strong relationships with suppliers
T/F: A loyal customer of a firm is enthusiastic about buying from its competitors.
False
T/F: Locational excellence is not very important to retailers and service providers.
False
T/F: Marketing strategy is a tool that allows marketers to understand how forces in the environment will impact the organization in the future.
False
T/F: Using multiple strategies to build a sustainable competitive advantage is rarely employed for enduring success.
False
Which of the following are true regarding market share?
It defines a product's strengths in a particular market; It is the percentage of a market accounted for by a specific entity
Which of the following are true regarding price?
It should be based on the value that the customer perceives; It will not generate much volume if it is too high
Which of the following is not one of the four major growth strategies?
Market analysis
_____ consist of consumers who respond similarly to a firm's marketing efforts.
Market segments
What does "weaknesses" refer to in SWOT analysis?
Negative attributes internal to the firm
_____ is achieved through efficient operations, excellent supply chain, and human resource management.
Operational excellence
Step 2 of a marketing plan involves which of the following?
Perform a situation analysis using SWOT
_____ is the component of the four Ps responsible for value delivery; the firm must make the product or service available when and where the customer wants it.
Place
_____ excellence is when a firm focuses on having high perceived value and effective branding.
Product
STP includes which of the following?
Segmentation; Positioning
Of the following, who would require access to a company's marketing plan?
Stakeholders
Firms can achieve operational efficiencies by developing which of the following?
Strong relationships with vendors
Which of the following are strategies for achieving operational excellence?
Supply chain management; Efficient operations
What do "opportunities" represent in SWOT analysis?
The positive aspects of the external environment
Which of the following statements about strategic planning is true?
The process can move back and forth between steps, depending on the situation.
Why do firms use metrics?
To make it possible to compare results across regions, product lines, and time periods; To explain why things happen; To make appropriate adjustments to performance
T/F: Operational efficiency generates good value for customers and improves profitability for the firm by keeping costs down.
True
T/F: Possible opportunities for manufacturers include an untapped market, international expansion and growing interest in "green" products.
True
_____ marketing requires a firm to charge a price that customers perceive to be a good value for the product.
Value-based
Which of the following is the primary question a mission statement should answer?
What type of business are we?
In a SWOT analysis, possible weaknesses might include any of the following except _____.
a new competitor with innovative products
A marketing plan includes all of the following except _____.
a plan on how to pitch to your investors
General Electric sells a broad array of products for both businesses and consumers, from jet engines to light bulbs. GE's kitchen appliances would be considered _____.
a product line
Loyalty programs _____.
give the firm opportunity to learn more about their customers
Vendor relations help firms maintain or gain a competitive advantage by all of the following except:
hiring a vendor's employees
At each level of an organization, the _____ should be held accountable only for the revenues, expenses, and profits they can control.
business unit managers
Which of the following processes is most associated with market positioning?
clarifying marketing mix variables to provide a basis for customers' evaluation of a product
Promotion is the element of the 4Ps used by marketers to _____ the value proposition or the value of their offering through a variety of media.
communicate
A company that has successfully built a wall around its position in the market, making it hard for competitors outside the wall to enter the market and compete, is an example of a company that has established _____.
competitive advantage
In the marketing mix, Product is the element that _____ value.
creates
Step 5 in the marketing plan process is when a firm _____ the results of the strategy and implementation process.
evaluates
A mission statement _____.
defines the scope of activities a firm plans to undertake
A _____ strategy introduces a new product or service to a new market segment, one that currently the firm has not targeted
diversification
Step 3 of the five-step marketing planning process _____.
involves segmentation, targeting, and positioning
A competitive advantage based on location _____.
is sustainable when real estate is difficult or expensive to obtain
Step 4 of the five-step marketing planning process _____.
is the point at which a firm implements the four Ps
A firm can begin to implement the marketing mix immediately after which of the following steps?
it has finished segmentation, targeting, and positioning
Marketers strive for efficient operations to provide their customers with all of the following except _____.
low-quality products
Customers who continue to buy their coffee at Dunkin' Donuts even after Starbucks opens more convenient locations and offers lower prices are probably _____ customers.
loyal
In portfolio analysis, the _____ measures how attractive a particular market is.
market growth rate
A strategy that employs existing marketing mix and focuses the firm's efforts on increasing sales to current customers is called _____.
market penetration
STP works through each of the following steps except _____.
planning a marketing strategy
The three major phases of the marketing plan are _____.
planning, implementation, and control
In _____ analysis, management evaluates the firm's various products and businesses, and then allocates resources according to potential profit outlook.
portfolio
When a firm decides which segments to pursue, it must determine how it wants to be _____ within those segments.
positioned
Firms that achieve a sustainable competitive advantage through their merchandise and service offerings, and effective branding and positioning, are doing so using _____ excellence.
product
Firms that maintain their sustainable competitive advantage through _____ excellence have often done so by investing in their brand and constantly reinforcing their image through their merchandise.
product
After a firm has identified a group of market segments, it does all of the following except _____.
re-assigning the segments
A market development strategy employs the existing product offering to _____.
reach new market segments
Relative market share is used to provide managers with a product's _____.
relative strength
Customer excellence is focused on _____.
retaining loyal customers and offering excellent customer service
Some commonly used financial performance metric include _____.
sales revenue; profits
In the _____ step of the five-step marketing planning process, marketers evaluate the situation by assessing how various players, both in and outside the organization, affect the firm's potential for success.
second
Market _____ is the process of dividing the market into groups of customers according to their needs, wants, or characteristics.
segmentation
The components of SWOT analysis include the following except which two?
segmentation, target markets
A _____ is a division of the firm itself that can be managed and operated independently from other divisions.
strategic business unit (SBU)
Firms are starting to report corporate social responsibility metrics in an effort to:
strengthen their relationship with both local and global suppliers; help customers feel better about their buying experience
In a SWOT analysis, _____ refers to the positive internal attributes of the firm.
strengths
Licensing of the brand, a reputation for quality, and a large number of retail store are examples of potential _____. These refer to internal attributes identified during a SWOT analysis.
strengths
A(n) _____ competitive advantage is an advantage over the competition that is not easily copied and can be maintained over a long period of time.
sustainable
Excellent customer service helps build _____.
sustainable competitive advantage
One key to long-term financial performance is to establish a _____.
sustainable competitive advantage
Step 1 of the marketing plan is focused on _____.
the business mission and objectives
In a SWOT analysis, _____ represent the negative aspects of the company's external environment and firms must constantly be on the defensive.
threats
When conducting a SWOT analysis, adverse economic conditions and intense competition are examples of potential _____ for firms.
threats
A firm can build sustainable competitive advantage _____.
through some business activities over a long period of time; when it outperforms competition
Assessing relative levels of sales and profits can be used for all of the following reasons except _____.
to determine exactly what competitors will do next
A firm needs a marketing plan _____.
to explain how overall objectives will be met; to clearly state its overall objectives; to implement the marketing mix
What is the purpose of a performance evaluation?
to identify and explain performance above or below what anticipated levels
Value creation means that firms attempt to develop products or services that customers perceive as _____ enough to buy.
valuable
