MKTG 361 Chapter 2
The "T" in STP stands for
Targets, targeting, target S=Segmentation T=Targeting P=Positioning
Which of the following are examples of strengths that could be identified in a SWOT analysis? (Choose every correct answer.) Multiple select question. Strong brand recognition Heavy reliance on a single product line An increase in taxation A reliable network of spokespeople
Strong brand recognition A reliable network of spokespeople
What is the primary question a mission statement should answer? Multiple choice question. What specific tasks should we perform in the next year? What are our short-term goals? Who is our target market? What type of business are we?
What type of business are we?
What is a product development strategy?
Offers a new product or service to a firm's current target market.
Firms achieve operational excellence through which of the following? (Choose every correct answer.) Multiple select question. Strong relationships with suppliers Good supply chain management Efficient operations Reducing focus on human resources
Strong relationships with suppliers Good supply chain management Efficient operations
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 Blank______. Multiple choice question. operational excellence a competitive advantage product excellence superior service
a competitive advantage
In Step 1 of the planning phase, a firm_____. Multiple choice question. conducts a SWOT analysis evaluates its marketing performance defines the mission and/or vision of the business implements the marketing mix
defines the mission and/or vision of the business
A mission statement Blank______. Multiple choice question. defines the scope of activities a firm plans to undertake maximizes profits and dividends enhances the value of a firm's products details how a firm can avoid risks
defines the scope of activities a firm plans to undertake
What are the steps of the marketing plan?
1. mission statement: Defining mission and Objectives 2. Conduct a SWOT Anaysis 3.Identify and Evaluate Opportunities Using STP 4. Implement Marketing Mix and Allocate Resources: Implementing the 4 P's Product Price Place and Promotion for each produce and service on the basis o what they believe their target markes will value. At the same time, marketers make important decisions about how they will allocate their scarce resources to their various products and services 5. Evalute Performance using Marketing Metirics: Is a measuring system that quantifies a trend, dynamic, or characteristic. Metrics are used to explain why things happened and also project the future. They make it possible to compare results across regions, strategic business units (SBUs(, product lines, and time periods. The firm can determine why it achieved or did not achieve its performance goals.
A firm can begin to implement the marketing mix immediately after which step? Multiple choice question. After it has employed marketing metrics to evaluate performance After it has written its mission statement Reason: A mission statement is the first step in the process. After it has finished segmentation, targeting, and positioning After it has completed a SWOT analysis
After it has finished segmentation, targeting, and positioning
Which statement is true regarding SBUs? Multiple choice question. An SBU may have a different mission or objective from other divisions. The term refers to parent companies. The term SBU stands for "segmented business unit." SBUs develop as cash cows.
An SBU may have a different mission or objective from other divisions.
Which scenario is an example of loyalty to a company in a consumer's daily life? Multiple choice question. Buying a Pepsi product from the campus vending machine because Pepsi is the only vendor allowed on campus Ordering from Pizza Hut because there is a coupon in the mail offering a significant discount Getting a haircut from the one barber in town who has an appointment available this afternoon Continuing to shop at Dunkin' Donuts even if Starbucks opens more convenient locations and offers slightly lower prices
Continuing to shop at Dunkin' Donuts even if Starbucks opens more convenient locations and offers slightly lower prices
What is a market penetration strategy?
Employs the existing marketing mix and focuses the firm's efforts on existing customers. Might be Achieved by attracting new consumerst to the firm's current target market or encouraging current customers to patroize the firm more often or buy more merchandise on each visit. Requires greater marketing efforts, such as increased advertising and additional sales and promotions, or intensified distribution efforts in geographic areas in which the product or service already is sold.
What is a market development strategy?
Employs the existing marketing offering to reach new market segments, whether domestic or international.
True or false: Firms that use multiple strategies to build a sustainable competitive advantage have difficulty maintaining long-term success.
False
True or false: The purpose of a marketing strategy is to maximize short-term profits.
False
A market penetration strategy, as one of the possible growth options, may be achieved by which of the following? Multiple choice question. Implementing a standard marketing plan Encouraging current customers to patronize the firm and the brand more often Introducing additional products and services to the current buyers Finding new markets for the firm's current products
IT IS NOT: Implementing a standard marketing plan Reason: A market penetration strategy employs the existing marketing mix and focuses the firm's efforts on existing customers. Introducing additional products and services to the current buyers Reason: This is product development. A market penetration strategy employs the existing marketing mix and focuses the firm's efforts on existing customers. Finding new markets for the firm's current products Reason: A market penetration strategy employs the existing marketing mix and focuses the firm's efforts on existing customers. It is: Encouraging current customers to patronize the firm and the brand more often
During which step of the marketing plan do marketers make important decisions about how they will allocate their scarce resources to their various products and services? Multiple choice question. Evaluating performance Implementing the marketing mix Defining the business mission Identifying and evaluating opportunities
Implementing the marketing mix
What is a diversification strategy?
Introduces a new product or service to a market segment that currently is not served. Diversification opportunities may be related or unrelated. In a related diversification opportunity, the current target market and/or marketing mix shares something in common with the new opportunity. In other words the firm might be able to purcahse from exisiting vendors, use the same distribution and/or management information system, or advertise in the same newspapers to target markets that are similar to their current consumers. In contrast, in an unrelated diversification, the new business lacks any common elements with the present business. Unrelated diversifications do not capitalize on core strengthhs associated either with markets or with products. Thus, they would be viewed as very risky.
A portfolio analysis involves which of the following?
Management evaluates the firm's various products and businesses. Management allocates its resources to products with the greatest potential to be profitable.
A portfolio analysis involves which of the following? Multiple select question. Management evaluates the firm's various products and businesses. Management allocates its resources to products with the greatest potential to be profitable. Management identifies and evaluates opportunities using STP. Management develops the marketing mix for each SBU.
Management evaluates the firm's various products and businesses. Management allocates its resources to products with the greatest potential to be profitable.
A strategy that employs existing products or services to reach new market segments is called Blank______. Multiple choice question. market development diversification market penetration product development
Market Development
What are the four Major Growth Strategies?
Market Penetration: For Current Markets, Products and Services Product Development: For New Products and Services, Current Markets Market Development: For New Market and current Products and Services Diversification: For New products and services and markerts
What growth strategy is being used when a company that makes protein bars for long-distance runners starts selling the same bars to busy parents as a quick breakfast? Multiple choice question. Market development Market penetration Diversification Product development
Market development
The macro strategies for developing customer value include each of the following EXCEPT Blank______ excellence. Multiple choice question. operational product locational marketing
Marketing
Which of the following is NOT an example of customer loyalty? Multiple choice question. Only purchasing dresses at Anthropologie Only purchasing organic products Only purchasing holiday decorations from World Market Only purchasing light fixtures at Home Depot
Only purchasing organic products
Which type of excellence is achieved through efficient operations, excellent supply chain management, and strong relationships with suppliers? Multiple choice question. Operational excellence Locational excellence Product excellence Customer excellence
Operational excellence
Which are components of SWOT analysis? (Choose every correct answer.) Multiple select question. Opportunities Target markets Weaknesses Segmentation
Opportunities Weaknesses S=Strengths W=Weaknesses O=Opportunities T=Threats T=Trends
When developing a marketing plan, what will a firm do immediately after developing its mission? Multiple choice question. Evaluate its internal opportunities Create a yearly budget Evaluate its employees' performance Perform a situation analysis using SWOT
Perform a situation analysis using SWOT
What are the three major phases of the marketing plan? (Choose every correct answer.) Multiple select question. Planning Implementation Control Organization
Planning Implementation Control
A smartphone manufacturer makes a new smartwatch that pairs well with its existing phones. This is an example of which growth strategy? Multiple choice question. Product development Market penetration Market development Diversification
Product development
Which of the following is one of the macro strategies for developing customer value through effective branding and positioning? Multiple choice question. Product excellence Communication excellence Supply excellence Advertising excellence
Product excellence
Which statement about strategic planning is true? Multiple choice question. The steps of the process must always be followed in order. The process can move back and forth between steps, depending on the situation. Skipping a step of the process is fine, but the steps should not be performed out of order. A strategy created without following the steps in order usually ends up failing or doing poorly.
The process can move back and forth between steps, depending on the situation.
Why do firms use metrics in the last step of the marketing plan? To compare results across regions, product lines, and time periods To help stakeholders understand the firm's mission statement To make appropriate adjustments to performance To develop integrated marketing communications
To compare results across regions, product lines, and time periods To make appropriate adjustments to performance
In which type of diversification strategy does a firm enter into an entirely new business? Multiple choice question. Metric-driven Competitive Unrelated Related
Unrelated
Which of the following is LEAST effective when building a sustainable competitive advantage? Multiple choice question. Using six or more strategies Using only a single strategy Using four or five strategies Using two or three strategies
Using only a single strategy
What are reasons why strategic planning may NOT occur sequentially? (Choose every correct answer.) Multiple select question. When the implementation plan cannot move forward because there are too few resources When new logical alternatives arise When the economy has had six consecutive months of steady growth and projections indicate that the trend will continue When a situation analysis necessitates that the mission statement be revised
When the implementation plan cannot move forward because there are too few resources When new logical alternatives arise When a situation analysis necessitates that the mission statement be revised
A marketing plan includes all of the following EXCEPT Blank______. Multiple choice question. a plan on how to pitch investors marketing objectives and strategy an analysis of the current marketing situation
a plan on how to pitch investors This would be part of your business plan. projected income statements)
Step 5 of the marketing plan involves Blank______. Multiple choice question. evaluating the results of the strategy and implementation program performing the STP process implementing the marketing mix elements for customers defining the firm's mission and objectives
evaluating the results of the strategy and implementation program
A sustainable competitive advantage Blank______. Multiple choice question. should be avoided by firms that are not involved in environmental advocacy increases competition through price adjustments is something that can be maintained for a long time and is not easily copied is rarely, if ever, a firm's key goal or objective due to the expense involved
is something that can be maintained for a long time and is not easily copied
A sustainable competitive advantage______. is rarely, if ever, a firm's key goal or objective due to the expense involved is something that can be maintained for a long time and is not easily copied increases competition through price adjustments should be avoided by firms that are not involved in environmental advocacy
is something that can be maintained for a long time and is not easily copied
A competitive advantage based on location Blank______. Multiple choice question. is unsustainable because location is unimportant is sustainable when the retail location is close to similar stores is unsustainable because customer service is more important is sustainable when real estate is difficult or expensive to obtain
is sustainable when real estate is difficult or expensive to obtain
Firms consider pursuing various Blank______ as part of their overall growth strategies. Multiple choice question. metrics portfolio analyses mission statements market segments
market segments(Market Strategies)
A ______ is a written document that includes the current marketing situation, specified objectives and strategies, action programs, and projected income statements. Multiple choice question. financial plan strategic plan business plan marketing plan
marketing plan
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. Multiple choice question. marketing strategy marketing metric market statement mission statement
marketing strategy
Product excellence______. Multiple choice question. is not enough to achieve competitive advantage on its own occurs by having products with high perceived value and effective branding and positioning yields cost savings because it requires little to no additional investment by the firm is achieved through efficient operations and efficient production
occurs by having products with high perceived value and effective branding and positioning
A market Blank______ growth strategy focuses on increasing sales of the firm's current products to its current target markets. Multiple choice question. management penetration acquisition development
penetration
A market______ growth strategy focuses on increasing sales of the firm's current products to its current target markets. Multiple choice question. development penetration acquisition management
penetration
The three major phases of the marketing plan are______. Multiple choice question. marketing strategy, macro strategies, and sustainable competitive advantage planning, implementation, and control human resource management, vendor relations, and competitive advantage locational excellence, product excellence, and operational excellence
planning, implementation, and control
Firms that achieve a sustainable competitive advantage through their merchandise and service offerings, and through effective branding and positioning, are doing so using Blank______ excellence. Multiple choice question. product operational locational customer
product
In a(n) ____ market , Incorrect Unavailable diversification opportunity, the current target market and/or marketing mix shares something in common with the new opportunity.
related
A ______ is a division of the firm itself that can be managed and operated independently from other divisions. Multiple choice question. marketing department market segment target market strategic business unit (SBU)
strategic business unit (SBU)
